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2011-12-07 Packet
CITY OF UKIAH CITY COUNCIL AGENDA Regular Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 December 7, 2011 6:00 p.m. 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS 4. PETITIONS AND COMMUNICATIONS 5. APPROVAL OF MINUTES a. Regular Meeting Of 11/16/11 6. RIGHT TO APPEAL DECISION Persons who are dissatisfied with a decision of the City Council may have the right to a review of that decision by a court. The City has adopted Section 1094.6 of the California Code of Civil Procedure, which generally limits to ninety days (90) the time within which the decision of the City Boards and Agencies may be judicially challenged. 7. CONSENT CALENDAR The following items listed are considered routine and will be enacted by a single motion and roll call vote by the City Council. Items may be removed from the Consent Calendar upon request of a Councilmember or a citizen in which event the item will be considered at the completion of all other items on the agenda. The motion by the City Council on the Consent Calendar will approve and make findings in accordance with Administrative Staff and/or Planning Commission recommendations. a. Approval Of Amendment #1 To The Contract With Winzler & Kelly For A Full Scale Water Effects Ratio Study As Part Of The Copper Implementation Plan And Discharge Permit Requirements For The Waste Water Treatment Plant In The Amount Of $37,000 b. Report Of Acquisition Of Professional Consulting Services From EBA Engineering For Preparation Of The Mandated Reports For The Ukiah Landfill C. Notification To City Council Of The Purchase Of Four Bray Series S6A Pneumatic Valve Positioners With 92-1605 Spring Return For The Wastewater Treatment Plant To T And T Valve Company For A Total Not To Exceed $8,305.37 Plus Shipping Cost. d Adoption Of Resolution Increasing Dollar Limits For Open Market Procurements e. Adopt Ordinance Amending Division 5, Chapter 5 Of The Ukiah City Code By Amending Sections 4421, 4425, 4441, 4444, 4446, 4460, 4461 And 4463, And Repealing Sections 4422, 4423 And 4444. f. Approve A Resolution Waiving The 60-Day Notification Requirement For Establishing A County Facility Within The City Limits To Allow The County Of Mendocino To Lease Property At 524 Low Gap Road, Ukiah, CA, For Use By Health & Human Services Agency, New Beginnings Program g. Authorize Agreement For The Sun House Guild To Conduct Construction Activities At The Grace Hudson Museum. 8. AUDIENCE COMMENTS ON NON-AGENDA ITEMS The City Council welcomes input from the audience. If there is a matter of business on the agenda that you are interested in, you may address the Council when this matter is considered. If you wish to speak on a matter that is not on this agenda, you may do so at this time. In order for everyone to be heard, please limit your comments to three (3) minutes per person and not more than ten (10) minutes per subject. The Brown Act regulations do not allow action to be taken on audience comments in which the subject is not listed on the agenda. 9. COUNCIL REPORTS 10. CITY MANAGER/CITY CLERK REPORTS 11. PUBLIC HEARINGS (6:15 PM) a. Conduct A Hearing On Proposed Curbside Waste Collection Fee Increases Pursuant To Proposition 218 And Division 4, Chapter 6, Article 1 Of The Ukiah City Code, Commencing With Section 3950 12. UNFINISHED BUSINESS a. Discussion And Possible Action To Approve And Authorize City Manager To Sign Transfer Station And Waste Collection Agreements With Solid Waste Systems, Inc. And Ukiah Waste Solutions, Inc., Respectively. b. Presentation And Update On Progress Of Recycled Water Master Plan And Discussion Of Alternatives. C. Sign Enforcement Discussion (no written report) d. Receive Status Report, Review Preliminary Single-Use Carryout Bag Ordinance, And Direct Staff To Proceed With The Process Of Preparing A Formal Draft Ordinance e. Award Of Contract For The East Clay And South Main Re-Conductoring Project, Specification No. 11-12, To Herman Weissker, Inc For The Lump Sum Amount Of $292,237.00. (EUD) f. Award Of Bid For The Purchase Of Material To Complete The East Clay And South Main Re-Conductoring Project In The Amount Of $32,651.98. (EUD) g. Study Of Options For The Delivery Of Future Fire Services. 13. NEW BUSINESS a. Authorize The Establishment Of A Police Canine Protection Program, And The Purchase Of Two Police Canines From Master K-9 Inc., In The Amount Of $30,000 From Fund 204.2001.800.000. b. Approval Of Senate Bill 1x 2 Renewable Energy Resource Procurement Plan And Enforcement Program And Adopt Resolution Approving City Of Ukiah's Renewable Energy Resources Procurement Plan Per Senate Bill 1x 2. Additionally, By Separate Resolution, Approve City Of Ukiah's Enforcement Program Of The Renewable Energy Resources Procurement Plan. (EUD) C. Appointment Of New Mayor And Vice Mayor 14. CLOSED SESSION - Closed Session may be held at any time during the meeting a. Conference with Legal Counsel -Existing Litigation (Subdivision (a) of Gov't Code Section 54956.9) Name of case: (Ukiah Valley Sanitation District v. City of Ukiah, dispute resolution under Participation Agreement) b. Conference with Labor Negotiator 54957.6) Agency Representative: Jane Chambers, City Manager Employee Organizations: Miscellaneous Unit 15. ADJOURNMENT Please be advised that the City needs to be notified 72 hours in advance of a meeting if any specific accommodations or interpreter services are needed in order for you to attend. The City complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection at the front counter at the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business hours, Monday through Friday, 8:00 am to 5:00 pm. I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California, not less than 72 hours prior to the meeting set forth on this agenda. Dated this 1st day of December, 2011. JoAnne Currie, City Clerk CITY OF UKIAH 5a CITY COUNCIL MINUTES Regular Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 11/16/2011 1. ROLL CALL Ukiah City Council met at a Regular Meeting on November 16, 2011, the notice for which being legally noticed on November 10, 2011. Mayor Rodin called the meeting to order at 6:03 pm. Roll was taken with the following Councilmembers present: Landis, Thomas, Crane, Baldwin, and Mayor Rodin. Councilmembers absent: None. Staff Present: City Manager Chambers, Assistant City Manager Sangiacomo, City Attorney Rapport, City Clerk Currie, Purchasing Supervisor Horger, Assistant Finance Director Roth, Public Works Director and City Engineer Eriksen, Director of Public Safety Dewey, Director of Electric Utility Grandi, and Project/Grant Administrator Mills. 2. PLEDGE OF ALLEGIANCE 3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS 4. PETITIONS AND COMMUNICATIONS 5. APPROVAL OF MINUTES a. Regular Meeting Of 11/02/11 b. Special Meeting Of 10/11/11 MIS Landis/Baldwin to approve minutes of Regular Council Meeting of 11/02/11 and Special Meeting Of 10/11 /11 as submitted. Motion carried by all AYE voice vote of the members present. 6. RIGHT TO APPEAL DECISION 7. CONSENT CALENDAR a. Report Of Disbursements For Month Of October 2011 b. Approve Budget Amendment For Skate Park Project To Provide For Expenditures In Fiscal Year 2011-2012. C. Notification To City Council Of Acquisition Of Services From California Department Of Forestry For Creek And Drain Maintenance In The Amount Of $7,500. d. Notification Of Purchase Of Training In The Amount Of $7,500.00 From Anthony Kastros. e. Approve Extension Contracts For Renovation Of Ukiah Municipal Swimming Pool And Anton Stadium Facilities And Authorize The City Manager To Execute The Contract Extensions And Record The Deed Restrictions. Page 1 of 6 11/16/2011 MIS Landis/Thomas to Approve Items 7a-e. Motion carried by the following roll call votes: AYES: Landis, Thomas, Crane, Baldwin, and Mayor Rodin. NOES: None. ABSENT: None. ABSTAIN: None 8. AUDIENCE COMMENTS ON NON-AGENDA ITEMS None 9. COUNCIL REPORTS Councilmember Landis reported the Solid Waste Ad Hoc committee met twice since the last Council meeting and will meet tomorrow. Landis reported she attended the November 13, 2011 Women's Suffrage Centennial event. Councilmember Thomas reported the library advisory board met today and reported the library measure passed. Increased library hours are expected around the first of the year and funds should be officially available in July 2012. 10. CITY MANAGER/CITY CLERK REPORTS none 12. UNFINISHED BUSINESS a. Continuation Of Discussion And Consideration Regarding Updating Procurement Policy And Limits, And Corresponding Resolutions Purchasing Supervisor Horger and Assistant City Manager Sangiacomo presented the item. Recommended Action(s): 1. Approve a resolution increasing the dollar limits for open market procurements pursuant to Ukiah City Code Section 1522 and authorize staff to complete the resolution process. 2. Approve a resolution delegating authority to City Officials to issue change orders on supply and equipment purchases, maintenance contracts, and personal services contracts. Public Comment Opened 6:40 pm Not in support of item: Peter Good Public Comment Closed 6:42 pm MIS Landis/Thomas to approve staff bringing a resolution forward on the Consent Calendar increasing the dollar limits for open market procurements pursuant to Ukiah City Code Section 1522. The amounts for personal services and maintenance contracts are changed from $10,000 to $20,000 and from $5,000 to $10,000 respectively. Motion carried by the following roll call votes: AYES: Landis, Thomas, Crane, and Mayor Rodin. NOES: Baldwin. ABSENT: None. ABSTAIN: None MIS Crane/Landis to approve a resolution delegating authority to City Officials tc issue change orders on supply and equipment purchases, maintenance contracts, and personal services contracts. Motion carried by the following roll call votes: AYES: Landis, Thomas, Crane, Baldwin, and Mayor Rodin. NOES: None. ABSENT: None. ABSTAIN: None 11. PUBLIC HEARINGS (6:15 PM) a. Conduct A Public Hearing To Review And Approve The City Of Ukiah's Page 2 of 6 11/16/2011 Program Income Reuse Plan For The Community Development Block Grant (CDBG) Program Assistant City Manager Sangiacomo presented the item. Craig Schlatter, Community Development Manager for Community Development Commission of Mendocino County was available to answer questions. Recommended Action(s): Conduct a public hearing, receive public input and approve the proposed City of Ukiah program reuse plan for the CDBG program. Public Hearing opened 6:51 pm Public Hearing closed 6:52 pm M/S Landis/Thomas to approve The City Of Ukiah's Program Income Reuse Plan For the CDBG Program. Motion carried by the following roll call votes: AYES: Landis, Thomas, Crane, Baldwin, and Mayor Rodin. NOES: None. ABSENT: None. ABSTAIN: None b. Conduct A Public Hearing For The Review And Approval Of The Community Development Block Grant (CDBG) Business Assistance Program Guidelines Assistant City Manager Sangiacomo presented the item. Craig Schlatter, Community Development Manager for Community Development Commission of Mendocino County was available to answer questions. Recommended Action(s): conduct a public hearing, receive public input, and approve the revised CDBG Business Assistance Program Guidelines. Public Hearing opened 6:52 pm Public Hearing closed 6:53 pm M/S Crane/Landis to approve the CDBG Business Assistance Program Guidelines. Motion carried by the following roll call votes: AYES: Landis, Thomas, Crane, Baldwin, and Mayor Rodin. NOES: None. ABSENT: None. ABSTAIN: None 12. UNFINISHED BUSINESS b. Approve Change Order #2 For The Continued Development Of The Anton Stadium Restoration Engineered Steel Building Specification Number 11-02 Amending Total Contract Amount To Ferranti Construction To $664,387 And Receive A Status Update On Construction Progress Project & Grant Administrator Mills and Assistant City Manager Sangiacomo presented the item. Recommended Action(s): Approve change order #2 for the continued development of the Anton Stadium construction project and authorize staff to approve additional change orders in the amount of 10% of the new contract amount if necessary, without further Council approval. M/S Landis/Baldwin to approve Change Order #2 For The Continued Development Of The Anton Stadium Restoration Engineered Steel Building Specification Number 11-02 Amending Total Contract Amount To Ferranti Construction To $664,387. Staff to work with Councilmember Crane to find any additional savings. Public Comment Opened 7:36 pm Public speaking to the item: Ernie Wiipf, Wiipf Construction and Rick Cupples, Page 3 of 6 11/16/2011 Cupples Construction. Public Comment Closed 7:38 pm Motion carried by the following roll call votes: AYES: Landis, Thomas, Baldwin, and Mayor Rodin. NOES: Crane. ABSENT: None. ABSTAIN: None. C. Second Solid Waste Discussion: Waste Collection And Transfer Station Agreements Councilmember Crane recused himself due to a potential conflict of interest, which is Crane of Ukiah is building a transfer station near Lakeport for Yulupa, a company related to the City's franchise solid collection service. City Manager Chambers introduced the item. Councilmembers Landis and Thomas, Assistant Finance Director Roth, Public Works Director/City Engineer Eriksen presented the item. Consultant Emmett Jones was available to answer questions. Recommended Action(s): 1. Receive the oral report on further work of the Solid Waste Ad/Hoc committee and city staff to answer questions raised about the proposed new agreements, 2. Receive any further information provided by the City Attorney or other staff members regarding answers to questions raised regarding the agreements, and 3. Provide city staff with any further directions regarding the agreements in order to consider approval and adoption of the agreements at the December 7 meeting in conjunction with the public hearing regarding proposed rates. Councilmembers Landis and Thomas provided a summary of the 11-16-11 ad hoc meeting. Discussion ensued regarding key unresolved issues listed on handout as 4a, b,d, and e. Public comment regarding length of the contract (4b) opened at 8:42 pm Public speaking to the item: Mike Sweeny, Mendocino Solid Waste Management Authority, Richard Johnson, C&S Waste; Ross Liberty, Ukiah; Leif Farr; Estelle Clifton, Cold Creek Compost; John McCowen; and Julie Price, C&S Waste. Public Comment closed 8:48 pm Public comment on flow control (4d) opened 8:58 pm Public speaking to the item: Mike Sweeny; Steve Scalmanini; Estelle Clifton; Richard Johnson, C&S Waste; Mike Sweeny; and Jerry Wand, Solid Waste of Willits. Public Comment closed 9:26 pm Continued. Recessed 9:48 pm Back 9:56 pm 13. NEW BUSINESS a. Adopt Ordinance Amending Division 5, Chapter 5 Of The Ukiah City Code To Remove Outmoded Provisions In Order To Be Consistent With Current Practice Of Solid Waste Handling And To Allow For Future Changes Page 4 of 6 11/16/2011 City Attorney Rapport presented the item. Recommended Action(s): 1. adopt motion to introduce ordinance by title only; 2. instruct city clerk to read title of ordinance; and 3. after title is read, adopt motion to introduce ordinance. Public speaking to the item: Mike Sweeny M/S Landis/Baldwin to approve introduction of ordinance by title only Motion carried by the following roll call votes: AYES: Landis, Thomas, Crane, Baldwin, and Mayor Rodin. NOES: None. ABSENT: None. ABSTAIN: None City Clerk Currie read the tile of the ordinance. M/S Landis/Baldwin to approve introduction of the ordinance. Motion carried by the following roll call votes: AYES: Landis, Thomas, Crane, Baldwin, and Mayor Rodin. NOES: None. ABSENT: None. ABSTAIN: None b. Fire Services Alternatives City Manager Chambers introduced the item. Director of Public Safety Dewey presented the item and pointed out Option 5 in the staff report would not have an Amador agreement. City Attorney Rapport provided a brief history of the relationship between Ukiah Valley Fire District and Ukiah Fire Department (UFD). Recommended Action(s): No action required, provide staff with further direction or follow-up as needed. Public Comment Opened 10:44 pm Public speaking to the item: Dan Grebil, Ukiah Valley Fire District Chief; Leif Farr, Mendocino County Chapter President of Service Employees International Union (SEIU); Jim Wattenburger; Pete Bushby, UFD; Kevin Jennings, UFD operations division chief; Mike Stewart, UFD, OSHA rules-2 in and 2 out; Kirt Thomsen, Ukiah Fire Department, Ed Buttles, Ukiah Fire Department, and John Corippo budget savings and saving lives, property, and environment; Continued. C. Authorization For City Manager To Negotiate And Execute A Contract In An Amount Not To Exceed $30,000 For Acquisition Of Professional Services From Laminar Energy Services, Inc. For Evaluation And Inspection Services For The Hydro Electric Facility And Report Of Expenditure In The Amount Of $9500 For Consulting And Inspection Services Associated With Initial Investigation (EUD) Electric Utility Director Grandi presented the item. Recommended Action(s): Authorization For City Manager To Negotiate And Execute A Contract In An Amount Not To Exceed $30,000 For Acquisition Of Professional Services From Laminar Energy Services, Inc. For Evaluation And Inspection Services For The Hydro Electric Facility And Report Of Expenditure In The Amount Of $9500 For Consulting And Inspection Services Associated With Initial Investigation Page 5 of 6 11/16/2011 M/S Crane/Landis to approve Recommended Actions. Motion carried by the following roll call votes: AYES: Landis, Thomas, Crane, Baldwin, and Mayor Rodin. NOES: None. ABSENT: None. ABSTAIN: None 14. CLOSED SESSION - Closed Session may be held at anv time durina the meetin a. Conference with Labor Negotiator 54957.6) Agency Representative: Jane Chambers, City Manager Employee Organizations: Electric Unit b. Conference with Legal Counsel -Existing Litigation (Subdivision (a) of Gov't Code Section 54956.9) Name of case: (Ukiah Valley Sanitation District v. City of Ukiah, dispute resolution under Participation Agreement) Closed Session Not Heard. 15. ADJOURNMENT There being no further business, the meeting adjourned at 11:34 pm JoAnne M. Currie, City Clerk Page 6 of 6 11/16/2011 PT City 0j, IZ-1kjah ITEM NO.: 7a MEETING DATE: AGENDA SUMMARY REPORT December 7, 2011 SUBJECT: APPROVAL OF AMENDMENT #1 TO THE CONTRACT WITH WINZLER & KELLY FOR A FULL SCALE WATER EFFECTS RATIO STUDY AS PART OF THE COPPER IMPLEMENTATION PLAN AND DISCHARGE PERMIT REQUIREMENTS FOR THE WASTE WATER TREATMENT PLANT IN THE AMOUNT OF $37,000 Background: On August 17, 2011 City Council approved a $10,000 contract with Winzler and Kelly for the preparation of a copper implementation plan to assist the Waste Water Treatment Plant (WWTP) with compliance on final effluent limitations for copper. Discussion: The City has filed an application for renewal of its NPDES permit. As part of the existing permit, copper monitoring has been performed regularly and some exceedances have occurred. As a result, the North Coast Regional Water Quality Contol Board has requested a copper implementation plan to outline the City's efforts in meeting the discharge requirements for copper. The final Copper Implementation Plan was submitted to the State Water Resources Control Board (SWRCB) on September 29, 2011 and has been accepted. As part of the plan, the next step is to conduct a Full Scale Water Effect Ratio Study. The study includes two, twenty-four composite sampling events which will occur at least one month apart and will be conducted in accordance with the EPA's manual for Streamlined Water-Effect Ratio Procedure for Discharges of Copper. The $37,000 amendment includes technical engineering from Winzler & Kelly as well as laboratory fees from Pacific EcoRisk which is lab certified by the EPA for tests of this nature. It is possible that a full scale test of this nature will support increased copper limits in the new NDPES permit which the City has applied for. In addition, this test can provide long term cost savings to the City by minimizing the amount of fines for copper exceedance violations as well as fewer testing services on a regular basis. Fiscal Impact: Not Applicable Budget Amendment Required a Budgeted FY 11/12F] New Appropriation F] F Amount Budgeted Source of Funds (title and Account Number Addit. Appropriation Requested $37,000 WWTP Contractual Svcs 612.3580.250.016 Recommended Action(s): Approval of amendment #1 to the contract with Winzler & Kelly for a full scale Water Effects Ratio Study as part of the copper implementation plan and discharge permit requirements for the Waste Water Treatment Plant in the amount of $37,000 Alternative Council Option(s): Do not approve amendment #1 and provide direction to staff. Citizens advised: Requested by: Tim Eriksen, Director of Public Works/City Engineer Prepared by: Jarod Thiele, Public Works Administration Coordinated with: Jane Chambers, City Manager; Andrew Luke, WWTP Supervisor Attachments: 1) Amendment #1 2) Scope of Services Approved: J~ e`Ohambers, City Manager ATTACHMENT 1 CITY OF U1K1AH AMENDMENT NO. 1 TO AGREEMENT FOR PROFESSIONAL CONSULTING SERVICES AUGUST 31, 2011 TERMS AND CONDITIONS All terms and conditions of the Agreement for Professional Consulting Services dated August 31, 2011 shall remain in force and effect except as modified by this first amendment. AUTHORIZATION Upon execution of this amendment, service provider is authorized to provide the service described under the Scope of Services-Copper Implementation Plan- Amendment #1 dated June 28, 2010. SCOPE OF ADDITIONAL WORK Work authorized by this amendment shall include that work described in the original scope of work and the Scope of Services-Copper Implementation Plan- Amendment #1 dated June 28, 2010. COMPENSATION Compensation for the performance of the additional work shall be made on a lump sum basis. Expenses shall not exceed a maximum total cost of $37,000. WINZLER & KELLY CITY OF UKIAH BY: BY: Jane Chambers, City Manager Print Name/Title Date ATTEST: Date JoAnne Currie, City Clerk ATTACHMENT Exhibit A Scope of Services Copper Implementation Plan - Amendment f Full Scale Water Effects Ratio Study Understanding The City of Ukiah (City) has filed an application for renewal of its NPDES permit. As part of the application process the North Coast Regional Water Quality Control Board (Regional Board) requested a Copper Implementation Plan to outline the City's strategy for complying with its final effluent limits for copper. To date, the City has been unable to comply with these limits, a situation which is not uncommon amongst dischargers in California. Winzler & Kelly has worked with the City to submit a Copper Implementation Plan which outlined strategies for compliance. Integral to the Copper Implementation Plan is the use of a Water Effects Ratio (WER) Study, which is outlined in California's State Implementation Plan (SIP) as an approved compliance pathway for metals. A WER Study following the methodology set forth in the EPA's "Streamlined Wlater--Effect Ratio Procedure for Discharges of Copper" outlines a streamlined procedure for determining site-specific values for a WER to be used as a criteria adjustment factor accounting for the effects of site-specific water characteristics on pollutant bioavailability and toxicity to aquatic organisms. The streamlined procedure is specific to copper and will result in a WER that is multiplied by California's hardness-normalized dissolved criterion to obtain the site value of the dissolved copper criterion that would be used to update the City's NPDES permit. Because the full- scale WER is a relatively expensive test, the Copper Implementation Plan included an initial WER "litmus" test, which was intended to provide a guide as to what level of improvement can be expected from the full scale copper WER. The results of the "litmus" test proved successful and indicate that the City's effluent has a significant binding capacity for copper. For example, the City has failed to meet both its Average Monthly Effluent Limitations and Maximum Daily Effluent Limitations for copper, since January 2010. Had the anticipated WER produced from the "litmus" been in place over this same time period, it would have resulted in full compliance with the average limit and only four exceedances of the maximum limit, a significant improvement over existing conditions with respect to copper compliance. The City has received formal approval by the Regional Board on its Copper Implementation Plan and its Copper WER Workplan and has all regulatory approvals necessary to move through the full scale WER. Again, the full scale WER should support increased copper limit in the new NPDES permit. The total cost of the recommended copper compliance strategy is $47,000 including $10,000 for the Copper Implementation Plan, $31,000 for full scale WER, and $6,000 for final reporting and negotiations with the Regional Board. The mandatory minimum penalty for copper exceedance is $3,000 per exceedance. The City is required to sample twice per month during the discharge season which means the recommended copper compliance strategy will pay for itself in eight months ($3,000 x 2/month x 8 months $48,000). In addition to the long-term cost savings, copper compliance is critical to assisting the City in achieving an increase in its discharge rate to the Russian River. The Regional Board has indicated that it is willing to entertain an increased discharge rate for the City's benefit provided full compliance with all discharge requirements can be assured. Task Based Scope of Work Task 1 Conduct Copper WER Analyses Given the promise the copper "litmus" test appears to have in terms of compliance with copper limits, we propose to conduct the full-scale copper WER analyses necessary to request permit limit modifications. The testing will be conducted by Pacific EcoRisk, a certified laboratory, following the methodology set forth in the EPA's "Sttramlined Wlater-Effect Ratio Procedure for Discharges of Copper. " Winzler & Kelly will: • Coordinate all necessary sampling with the City • Coordinate all necessary analyses with Pacific EcoRisk • Coordinate preparation of the WER summary report The City will: • Collect the sample(s) consistent with the Copper WER Workplan approved by the Regional Board and transport to Pacific EcoRisk Task 2 Prepare Letter Request for Modification of Copper Limits in City's Permit Following completion of the WER testing in Task 1, Winzler & Kelly will submit the final WER -report and a letter requesting that the City's existing permit be revised to reflect the new effluent limits for copper taking into consideration the new dissolved copper criterion established by the WER. The letter will also compare the City's WER with WERs obtained in the North Coast Region, consistent with the Regional Board's response to the Copper WER Workplan. Winzler & Kelly will also provide continued correspondence with the Regional Board to ensure the WER is accepted by the Regional Board, appropriately applied within the upcoming permit, and final effluent limitations appropriately applied. Winzler & Kelly will respond to comments from the Regional Board and attend coordination meetings as necessary to receive approval of the Copper Implementation Plan. Proposed Fee Schedule Task 1 will be completed for not to exceed $31,000, which includes Pacific EcoRisk's fee for laboratory services. Task 2 will be completed for not to exceed $6,000. Schedule Winzler & Kelly will begin work immediately upon authorization by the City and will complete this activity within 90 days. mem PYR 4city ITEM NO.: 7b MEETING DATE: AGENDA SUMMARY REPORT December 7, 2011 SUBJECT: REPORT OF ACQUISITION OF PROFESSIONAL CONSULTING SERVICES FROM EBA ENGINEERING FOR PREPARATION OF THE MANDATED REPORTS FOR THE UKIAH LANDFILL Background & Discussion: In compliance with Section 1522 of the City Code, this report is submitted to the City Council for the purpose of reporting the acquisition of professional consulting services costing more than $5,000 but less than $10,000. The Public Works Department obtained a proposal from EBA Engineering for preparation of the third quarter detection monitoring report, the fourth quarter landfill gas monitoring report and filing respective data with State Geotracker Services for the Ukiah landfill. Staff reviewed the proposal and found the proposed fee of $5,462 to be commensurate with the scope of work. These reports are mandated requirements of the Regional Water Quality Control Board. Staff is in the process of developing a request for proposals for an extended contract for environmental compliance monitoring and reporting for the Ukiah landfill. Fiscal Impact: Budgeted FY 11/12 1-1 New Appropriation Not Applicable Budget Amendment Required Amount Budgeted ted Source of Funds (title and Account Number Additional Appropriation Requested $105,000 Landfill fund 660 660.3401.250.005 Recommended Action(s): Receive and file report of the acquisition of professional services from EBA Engineering in the amount of $5,462 for preparation of the mandated reports for the Ukiah landfill. Report is submitted pursuant to City Code. Alternative Council Option(s): N/A Citizens advised: None. Requested by: Tim Eriksen, Director of Public Works / City Engineer Prepared by: Rick Seanor, Deputy Director of Public Works - Engineering & Streets R Coordinated with: Jane Chambers, City Manager Attachments: None. Approved: Jf e Chambers, City Manager i, ITEM NO.: 7c MEETING DATE: AGENDA SUMMARY REPORT December 7, 2011 SUBJECT: NOTIFICATION TO CITY COUNCIL OF THE PURCHASE OF FOUR BRAY SERIES S6A PNEUMATIC VALVE POSITIONERS WITH 92-1605 SPRING RETURN FOR THE WASTEWATER TREATMENT PLANT TO T AND T VALVE COMPANY FOR A TOTAL NOT TO EXCEED $8,305.37 PLUS SHIPPING COST. Background: Section 1522 of the Municipal Code requires a report to the City Council of purchases from $5,000.00 to $10,000.00. In accordance with the above-mentioned section, this report is submitted to the City Council. The Bray pneumatic valve actuators installed as original equipment on the Advanced Waste Treatment (AWT) units at the Wastewater Treatment Plant (WWTP) are reaching the end of their service life, and critical parts for their repair are no longer available. The original model has been discontinued, and superseded by the Series S6A as a direct replacement. Discussion: Funds for this purchase have been budgeted in the WWTP Operation and Maintenance Fund under Account Number 612.3580.302.000 and adequate funds are available for the purchase. Fiscal Impact: Budgeted FY 11/12 1-1 New Appropriation F] Not Applicable F~ Budget Amendment Required Amount Budgeted Source of Funds (title and Account Number Addit. Appropriation Requested $75,000 Treatment Process Equip. 612.3580.302.000 none Recommended Action(s): Receive and file notification of the purchase of four Bray Series S6A pneumatic valve positioners with 92-1605 spring return for the Wastewater Treatment Plant from T and T Valve Company for a total of $8,305.37 plus shipping cost. Alternative Council Option(s): N/A Citizens advised: N/A Requested by: Tim Eriks , irector of Public Works / City Engineer Prepared by: Andrew T. Luke, WWTP Supervisor Coordinated with: Jane Chambers, City Manager Attachments: N/A Approved: ,Ja=e Chambers, City Manager e7i t.y t?f -7-1.k ah ITEM NO.: 7d MEETING DATE: AGENDA SUMMARY REPORT December 7, 2011 SUBJECT: ADOPTION OF RESOLUTION INCREASING DOLLAR LIMITS FOR OPEN MARKET PROCUREMENTS Background: At the November 16t", 2011 City Council Meeting, Council reviewed a draft resolution increasing the dollar limits for Open Market Procurements pursuant to Ukiah City Code Section 1522. Council's direction was to have staff revise the draft resolution, changing the amounts for personal services and maintenance contracts from $10,000 to $20,000, and from $5,000 to $10,000 respectively, and to bring it forward on this meeting's Consent Calendar for final approval. Attached is the finalized resolution based on Council's recommended changes. Summary: Resolution of the City Council of the City of Ukiah increasing the dollar limits for open market procurements pursuant to Ukiah City Code Section 1522 (Attachment #1) • Current Council Reporting Limit: >$5,000 to $10,000 Proposed Change: >$10,000 to $20,000 for personal services & maintenance contracts >$20,000 to $30,000 for materials and equipment • Current Required Council Award: >$10,000 Proposed Change: >$20,000 for personal services & maintenance contracts >$30,000 for materials and equipment • Remove limits for the following purchases of consumables: a. Electric Utility purchases of: i. Conductor cable ii. Power poles iii. Transformers iv. Vaults V. Switchgear vi. Miscellaneous routine inventory replacement items. b. Water and sewer utility purchases of: i. Chemicals for water and wastewater treatment; and ii. Miscellaneous routine inventory replacement items. C. Fuel d. Software Maintenance Contracts Recommended Action(s): Adopt Resolution approving Increasing the Dollar Limits for Open Market Procurements to Ukiah City Code Section 1522. Alternative Council Option(s): Do not approve resolution, and provide alternate direction to staff. Citizens advised: N/A Requested by: City Management Team Prepared by: Mary Horger, Purchasing Supervisor Coordinated with: Jane Chambers, City Manager, Sage Sangiacomo, Assistant City Manager, and David Rapport, City Attorney Attachments: Attachment 1 - Draft resolution regarding Increased Dollar Limits Approved: Aw J `ne Chambers, City Manager ATTACHMENT RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH INCREASING THE DOLLAR LIMITS FOR OPEN MARKET PROCUREMENTS PURSUANT TO UKIAH CITY CODE SECTION 1522. WHEREAS, 1. Ukiah City Code ("UCC") Section 1522 specifies when contracts for supplies and equipment, maintenance, and personal services may be awarded without additional notice to the City Council, when the contract may be awarded without prior City Council approval, but must be reported to the City Council at its next regular meeting after the purchase has been made, and when the award of the contract requires prior City Council approval; and 2. The above-described treatment of these purchases depends on the dollar amount of the purchase; and 3. Subsection DA in UCC Section 1522 authorizes the City Council to revise the dollar limits specified for contracts for supplies and equipment, maintenance, and personal services by resolution without amending the City Code; and 4. The City Council has determined that: a. dollar limits in Section 1522 have not been revised since the ordinance was originally adopted in 1991; b. The effects of inflation over the past 20 years make the current limits unrealistically low; c. A review of dollar limits in other comparable jurisdictions shows that the current dollar limits in Section 1522 are substantially below the dollar limits in these other jurisdictions; and d. Substantial staff time is unnecessarily consumed in preparing agenda summary reports and other documentation, to report purchases that are permitted without prior City Council approval and to obtain prior City Council approval for purchases in excess of $10,000; and 5. Open market purchases authorized by Section 1522 may be used only if the purchase is included within an approved fund account and an unencumbered appropriation exists in the fund against which the purchase may be charged; Resolution No. Page 1 of 3 NOW, THEREFORE, BE IT RESOLVED as follows: 1. The dollar limits in UCC Section 1522.13.1, governing Supply and Equipment Contracts, except as provided in paragraph 5, below, are changed from $10,000 to $30,000 and from $5,000 to $20,000, respectively. 2. The dollar limits in UCC Section 1522.C.2.a, governing Maintenance Contracts, and C.3.a, governing Personal Service Contracts, are changed from $10,000 to $20,000 and from $5,000 to $10,000, respectively. 3. The dollar limit in UCC Section 1522.13.2, governing Supply and Equipment Contracts, except as provided in paragraph 5, below, are changed from $10,000 to $30,000. 4. The dollar limit in UCC Section 1522.C.2.b, governing Maintenance Contracts and C.3.b, governing Personal Service Contracts, are increased from $10,000 to $20,000. 5. The dollar limits in UCC Section 1522.13.1, governing Supply and Equipment Contracts, are eliminated for the following purchases of consumables: a. Electric utility purchases of: i. Conductor cable; ii. Power poles; iii. Transformers; iv. Vaults; v. Switchgear vi. Miscellaneous routine inventory replacement items. b. Water and sewer utility purchases of: i. Chemicals for water and wastewater treatment; and ii. Miscellaneous routine inventory replacement items. 6. The effect of this resolution on UCC Section 1522 is illustrated in the attached Exhibit A. 7. This resolution shall become effective on December 8, 2011, and shall apply to purchases initiated or pending on the effective date. Solicitations or requests for bids which have been issued and bids that have been received but not awarded prior to the effective date shall be further processed using the higher dollar thresholds in this resolution. PASSED AND ADOPTED this day of 2011, by the following roll call vote: AYES: NOES: ABSTAIN: Resolution No. Page 2of 3 ABSENT: Mari Rodin, Mayor ATTEST: JoAnne Currie, City Clerk Resolution No. _ Page 3of 3 EXHIBIT A [Subsection A - definitions- omitted] B. Purchases of Supplies and Equipment: 1. Supply and Equipment Contracts Under T- njhirtvThousand Dollars: Open market purchases may be used for contracts for the purchase of supplies and equipment costing ten thousand dollars ($34-0,000.00) or less, if the purchase is included within an approved fund account and an unencumbered appropriation exists in the fund against which the purchase may be charged. Purchases costing more than fiv-e-twenty dollars ($520,000.00) shall be reported to the city council at its next regular meeting following the purchase. The report shall include the information described in the definition of "open market purchase". 2. Supply and Equipment Contracts Over Ten-Thirty-Thousand Dollars: Contracts for the purchase of supplies and equipment costing more than te-R-jtWgnty_thousand dollars ($4.30,000.00) shall be procured using the following procedures: [Subsections a-d omitted] 3. The followin consumable Su lies and E ui ment can be rocured throw h o en market urchase and without Cit Council a rp v l nd~ without a se arate re ort to the Cit Council after the purchase is made: C. Other Contracts: [Subsection 1 omitted] 1 2= Maintenance Contracts: a. Open market purchases may be used for maintenance contracts costing ten-twent thousand dollars ($24-0,000.00) or less, if the purchase is included within an approved fund account and an unencumbered appropriation exists in the fund against which the purchase may be charged. Maintenance contracts costing more than 4ve ten thousand dollars ($10,000.00) shall be reported to the city council at its next regular meeting following the purchase. The report shall include the information described in the definition of "open market purchase". b. Maintenance contracts costing more than ten-ItWgnty.thousand dollars ($240,000.00) shall be procured using the following procedures: [Subsections (1)-(4) omitted] 3. Personal Services Contracts: a. Open market purchases may be used for personal services contracts costing Iyentyte-R thousand dollars ($24-0,000.00) or less, if the purchase is included within an approved fund account and an unencumbered appropriation exists in the fund against which the purchase may be charged. Personal services contracts costing more than five-ten thousand dollars ($105,000.00) shall be reported to the city council at its next regular meeting following the purchase. The report shall include the information described in the definition of "open market purchase". b. Personal services contracts costing more than ten-!Wpnt thousand dollars ($240,000.00) shall be awarded using the following procedures: [Subsections (1)-(4) omitted] 2 ITEM NO.: MEETING DATE: C t y q ;Z-1kj"fz UKIAH CITY COUNCIL AGENDA SUMMARY REPORT 7e December 7, 2011 SUBJECT: ADOPT ORDINANCE AMENDING DIVISION 5, CHAPTER 5 OF THE UKIAH CITY CODE BY AMENDING SECTIONS 4421, 4425, 4441, 4444, 4446, 4460, 4461 AND 4463. AND REPEALING SECTIONS 4422. 4423 AND 4444. SUMMARY: At its meeting on November 16, 2011, the City Council introduced an ordinance to amend and repeal various sections in the Ukiah City Code regulating the collection and disposal of solid waste in the City and governing franchise agreements between the City and private waste collection companies. The ordinance as introduced is attached as Attachment 1. The ASR that accompanied the ordinance on the November 16 agenda is Attachment 2. The ordinance was introduced by title only on the unanimous vote of the City Council and is now on consent calendar for adoption. If adopted, it will become effective on January 6, 2012. Fiscal Impact: Budget Amendment Required Budgeted FY 10/11 1-1 New Appropriation -XI Not Applicable F Recommended Action(s): Adopt ordinance. Alternative Council Option(s): Revise ordinance or decline to adopt it. If the ordinance is revised, it will come back to the City Council for adoption at its next meeting. Citizens advised: Requested by: Prepared by: Coordinated with Attachments: Approved: City Council David J. Rapport, City Attorney Jane Chambers, City Manager 1. Ordinance, 2. Aqenda Summa Jane,Ohambers, City Manager ATTACHMENT ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING SECTIONS 4421, 4425, 4441, 4444, 4446, 4460, 4461 AND 4463, AND REPEALING SECTIONS 4422, 4423 AND 4444 OF THE UKIAH CITY CODE The City Council of the City of Ukiah hereby ordains as follows: SECTION ONE 1. Sections 4421, 4425, 4441, 4446, 4460, 4461, and 4463 of the Ukiah City Code are amended to read as follows 4421: GARBAGE AND RUBBISH; APPROVED RECEPTACLES: Any and all garbage, refuse or rubbish deposited, kept or accumulated or permitted to be deposited, kept or accumulated within the City shall be in receptacles approved for said use by the City Manager or in a collection contract approved by the City Council. Containers for Recyclable materials, as defined in Section 4480.K, shall be kept in receptacles in accordance with Section 4487. Each such receptacle for garbage, including its cover, shall, upon the outside, be kept clean from accumulating grease or decomposing material. 4425: LOCATION OF REFUSE RECEPTACLE OF USER TO CONTRACTOR'S SERVICE: All receptacles for the accumulation of garbage, refuse or rubbish in the City maintained on property of customers subscribing to contractor's service, shall be kept or placed in the following manner during the time for collection, and shall be accessible to the contractor at all times without the use of key or entering the above named buildings unless special arrangements are made with the contractor. Any such accumulation shall be placed on the street frontage of the property in the case of single family residences, including duplexes or other residences, as directed by the City Manager or a collection contract approved by the City Council, and in the case of all other premises in a location easily accessible to the contractor and its collection vehicles, as approved by the City Manager or by a collection contract approved by the City Council. 4441: DUTY OF CONTRACTOR TO REMOVE USER'S REFUSE: All garbage, rubbish and refuse of any kind shall be removed by the contractor from all premises and establishments within the corporate City on a schedule as established by a collection contract approved by the City Council. The owner or person in charge of any premises that does not subscribe to the contractor's collection service shall remove solid waste from the premises at least once each seven (7) days unless sooner directed by the City Manager or City Health Officer of the City. 4446: IRREGULAR COLLECTION; DUTY OF CONTRACTOR: It shall be the duty of the contractor to make such irregular collections within such time period at such rates as are established by resolution of the City Council or a collection contract approved by the City Council. 4460: AUTHORITY TO CONTRACT: The City may enter into a contract for the disposal of collection of refuse, garbage and for rubbish for a period not to exceed fifteen (15) years, subject to the terms and conditions of this Chapter. If in the determination of the City Council said contractor or contractors shall have satisfactorily performed such contract or contracts, the City Council, without inviting bids or proposals therefor and without giving notice of its intention to do so, may, either prior to or after the expiration of any such contract, extend or renew the same for such a period and on such terms and conditions as the City Council shall or if the collection contract shall so provide deem necessary and appropriate, and shall permit such an extension by the contractor on such terms and conditions as the collection agreement shall provide. 4461: CONTRACT PROVISIONS: A contract for the collection of garbage, refuse and rubbish within the City may contain provisions setting forth the collection services the contractor will provide, the charges for performing the services, an exclusive franchise for the collection of all refuse, garbage or rubbish and the right to transport same on City streets, requirements for the use of a local office, insurance and performance and payment bond requirements, and any other provisions related to waste collection services deemed by the City Council necessary or useful to assure the safe and efficient collection and disposition of solid waste within the City. 4463: COLLECTION FOR HIRE BY UNAUTHORIZED PERSON PROHIBITED; EXCEPTION: No person not the contractor or the City shall for hire or other remuneration collect or dispose of or engage in the business of collecting or disposing of any refuse, rubbish or garbage from or within the corporate limits of the City, except as may be allowed in a collection contract approved by the City Council. II. THE FOLLOWING SECTIONS OF THE UKIAH CITY CODE ARE HEREBY REPEALED: 4422, 4423 AND 4444. SECTION TWO 1. COMPLIANCE WITH CEQA. The City Council finds that this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment), 15061(b)(3) (there is no possibility the activity in question may have a significant effect on the environment.) 2. SEVERABILITY. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. The City Council hereby declares that it would have adopted this Ordinance and any section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional or otherwise invalid. 3. EFFECTIVE DATE. This Ordinance shall be published as required by law in a newspaper of general circulation in the City of Ukiah, and shall become effective thirty (30) days after its adoption. Introduced by title only on , 2011, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: 2 Adopted on , 2011, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Mari Rodin, Mayor ATTEST: JoAnne Currie, City Clerk ITEM NO.: MEETING DATE: z ¢y - s - c~ -a.t~c-. ~z ' AGENDA SUMMARY REPORT ATTACHMENT 13a November 16, 2011 SUBJECT: ADOPT ORDINANCE AMENDING DIVISION 5, CHAPTER 5 OF THE UKIAH CITY CODE TO REMOVE OUTMODED PROVISIONS IN ORDER TO BE CONSISTENT WITH CURRENT PRACTICE OF SOLID WASTE HANDLING AND TO ALLOW FOR FUTURE CHANGES Discussion: After receiving public comments on the draft collection contracts, the City Attorney reviewed the draft contracts and the City Code to identify any potential conflicts. The City Code sections addressing waste collection (Division 5, Chapter 5, commencing with Section 4400) were originally adopted in 1955 and have been amended several times, most recently in 1989. Those 1989 amendments enacted Chapter 6, governing recycling. Much has changed in the way solid waste is collected in the City since the ordinance was adopted and most recently amended. For example, Section 4421 currently provides that all garbage must be kept in a metal receptacle provided with handles or other receptacles approved for said use by the City Manager. Section 4422 requires rubbish to be kept in a suitable box or boxes, barrels or other suitable receptacles or binding and shall not weigh more than 70 lbs. or exceed a length of four feet or a diameter of two feet. Some of these provisions conflict with the existing waste collection contract and waste collection practices in the City. The provisions governing waste collection franchise agreements do not parallel the provisions governing recycling. Section 4460 currently limits the waste collection contract to a term of 15 years. Section 4483, governing recycling contracts, on the other hand, does not impose a term limit and allows for extension by the City Council, if the contractor is satisfactorily performing. Staff is recommending the introduction by title only of the attached amendments to Division 5, Chapter 5 of the City Code, Attachment 1, to remove outmoded provisions, to update provisions to be consistent with current practice and to allow future changes without the necessity of further amendments to the City Code. A comparison of the proposed amendments with the existing sections of the City Code is attached as Attachment 2. Fiscal Impact: Budgeted FY 10/11 New Appropriation Fx-l Not Applicable Budget Amendment Required F Recommended Action(s): (1) adopt motion to introduce ordinance by title only; (2) instruct City Clerk to read title of ordinance and (3) after title is read, adopt motion to introduce ordinance. Alternative Council Option(s): Citizens advised: Requested by: Prepared by: David Rapport, City Attorney Coordinated with: Jane Chambers, City Manager Attachments: 1. Ordinance 2. Comparison of Proposed Amendments Approved: Jane Chambers, City Manager c : r t l ~Y- -z1,iah ITEM NO.: 7f MEETING DATE: AGENDA SUMMARY REPORT December 7, 2011 SUBJECT: APPROVE A RESOLUTION WAIVING THE 60-DAY NOTIFICATION REQUIREMENT FOR ESTABLISHING A COUNTY FACILITY WITHIN THE CITY LIMITS TO ALLOW THE COUNTY OF MENDOCINO TO LEASE PROPERTY AT 524 LOW GAP ROAD, UKIAH, CA FOR USE BY HEALTH & HUMAN SERVICES AGENCY, NEW BEGINNINGS PROGRAM Discussion: The City has received a request from the County of Mendocino to waive the 60-day notice requirement to lease a property within City Limits. Government Code §25351 requires that a County notify a City in advance of its intent to locate a County facility in the incorporated area. Government Code §25351 further requires that said advance notification occur at least 60 days prior to use and occupancy of the County facility, unless the City Council waives the notification requirement by Resolution. The General Services Department of Mendocino County has requested a waiver of the 60-day notification requirement to lease property at 524 Low Gap Rd. for the purpose of the Health and Human Services Agency, New Beginnings Program. The Program is a collaborative with Mendocino County Office of Education, Probation, Mental Health, and AODP. Services to be provided include probation alternatives, counseling and education to support high-risk youth. The granting of the waiver will enable the New Beginnings Program to start up without delay and provide services in a setting that meets confidentiality requirements and is adequately sized for the number of clients served. Fiscal Impact: Budget Amendment Required Budgeted FY 10/11 F1 New Appropriation I-XI Not Applicable F Recommended Action(s): Approve Resolution waiving the 60-day notification requirement. Alternative Council Option(s): Remand to staff with alternate direction. Citizens advised: Requested by: Kristin McMenomey, General Services Director, County of Mendocino Prepared by: Sage Sangiacomo, Assistant City Manager Coordinated with: Attachments: 1) Letter from County 2) Resolution Waivina Notice " "L4 Approved: Q-14 l'-c.._- Jae hambers, City Manager ATTACHMENT I Kristin McMenomey, Director Risk Manager/Purchasing Agent Telephone: (707) 463-4291 FAX: (707) 463-4673 Facilities & Fleet Printing/Duplicating Risk Management Purchasing/Stores Telecommunications Information Services COUNTY OF MENDOCINO GENERAL SERVICES AGENCY 841 Low GAP ROAD UKIAH, CALIFORNIA 95482 November 23, 2011 City Council City of Ukiah 300 Seminary Avenue Ukiah, CA 95482 Re: County Lease of 524 Low Gap Road, Ukiah Agenda Item for Next City Council Meeting Honorable Council Members: NOV 3 0 2011 t i. The County of Mendocino wishes to lease the property at 524 Low Gap Road, Ukiah for use by the Health &r Human Services Agency, New Beginnings Program. By way of this letter, we hereby request that the City Council adopt a resolution (sample enclosed) waiving the 60-day notification requirement (reference Government Code Section 25351). Your cooperation in granting this request will enable the New Beginnings Program to provide collaborative services with Mendocino County Office of Education, Probation, Mental Health, and AODP. Services to be provided include probation alternatives, counseling and education to support high-risk youth. In the absence of such waiver, the County will not have adequate space to confidentially provide services to the increasing number of clients. Thank you for your cooperation in this matter. If you have any questions, please feel free to contact me. S' erely, dKristin McMenomey General Services Agency Director dr Enclosure "The General Services Agency assists in providing the foundation upon which County Government is built" ATTACHMENT ~ RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH WAIVING THE 60-DAY NOTIFICATION REQUIREMENT FOR ESTABLISHING A COUNTY FACILITY WITHIN THE CITY LIMITS, AS REQUIRED BY GOVERNMENT CODE §25351 WHEREAS, 1. Government Code §25351 requires that a County notify a City in advance of its intent to locate a County facility in the incorporated area; and 2. Government Code §25351 further requires that said advance notification occur at least 60 days prior to use and occupancy of the County facility, unless the City Council waives the notification requirement by Resolution; and 3. The General Services Department of Mendocino County has requested a waiver of the 60-day notification requirement to lease property at 524 Low Gap Rd., Ukiah for the purpose of the Health and Human Services Agency, New Beginnings Program to provide collaborative services with Mendocino County Office of Education, Probation, Mental Health, and AODP. Services to be provided include probation alternatives, counseling and education to support high-risk youth. 4. The granting of the waiver will enable the New Beginnings Program to provide services in a setting that meets confidentiality requirements and is adequately sized for the number of clients served. NOW, THEREFORE, BE IT RESOLVED that the City of Ukiah grants the County of Mendocino a waiver of the 60-day notification requirement so as to lease the property at 524 Low Gap Rd, Ukiah in a timely manner in order to meet confidentiality requirements of the program. PASSED AND ADOPTED on by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: Mari Rodin, Mayor ATTEST: JoAnne Currie, City Clerk city aj',z_ikjah ITEM NO.: 7g MEETING DATE: AGENDA SUMMARY REPORT December 7, 2011 SUBJECT: AUTHORIZE AGREEMENT FOR THE SUN HOUSE GUILD TO CONDUCT CONSTRUCTION ACTIVITIES AT THE GRACE HUDSON MUSEUM. Discussion: The City has a successful partnership with the Sun House Guild for the operation of the Grace Hudson Museum. During the past year, staff has been concerned about the need for repairs and improvement to the security system. The system includes a number of measures to provide protection to the collections, fire suppression, basic alarm services and so forth. The system was installed in 1984 and the equipment has aged. In preparation for this capital improvement, staff contacted the Guild board who was supportive of the needed improvements. The improvements are estimated to cost between $40,000 and $65,000 and the Guild has made a commitment to manage the construction and pay for the cost of the improvements. The City has previously collaborated with the Guild for repairs and construction at the Museum. In 1984 the Grace Hudson Museum was constructed by the Guild. The Guild collected $1,000,000 in private donations and then volunteered their services to manage the construction. Again in 2000 the Guild collected over $1,000,000 in donations to conduct the Museum expansion which constructed additional gallery space. In each of these scenarios the Guild worked closely with City staff on the preparation and oversight of the construction. The outcomes have been tremendously successful. In planning for the improvement to the security system, the City Attorney has prepared Attachment #1 the Revocable License and Agreement for Construction of Improvements. The agreement grants a license to the Guild to occupy and use the property necessary for the construction and places insurance requirements upon the Guild during the construction period. Upon inspection and approval, the City will take full possession of the improvements. The City Attorney has also provided confirmation that the prevailing wage law does not apply to the Guild as they are not utilizing government funds in the construction. The agreement allows the Guild to proceed with the work and provides the proper protection and frame work for the City to interface with the Guild during the construction. Fiscal Impact: H Budgeted FY 10/11 ❑ New Appropriation ❑X Not Applicable Budget Amendment Required Recommended Action(s): Authorize agreement with the Sun House Guild to conduct construction activities at the Grace Hudson Museum. Alternative Council Option(s): Remand to staff with direction. Citizens advised: Sun House Guild Board Requested by: N/A Prepared by: Katie Marsolan, Community Services Administrator, Sherrie Smith-Ferri, Museum Director Coordinated with: Jane Chambers, City Manager, Sage Sangiacomo, Assistant City Manager Attachments: 1. Aareement Approved: f~ J n Chambers, City Manager Attachment #1 REVOCABLE LICENSE AND AGREEMENT FOR CONSTRUCTION OF IMPROVEMENTS. WHEREAS, the City of Ukiah ("Ukiah") is a general law municipal corporation located in the County of Mendocino, State of California; and WHEREAS, the Sun House Guild ("Guild") is a non-profit, public benefit corporation with its principal place of business in Ukiah; and WHEREAS, the Sun House is an historic structure in Ukiah built by the Hudson Carpenter family, which houses paintings by Grace Carpenter Hudson, Pomo Indian baskets collected by the family, and other objects of historic, artistic, and cultural value; and WHEREAS, in 1975, the Sun House property, on which the Sun House is located along with other personal property, was purchased by Ukiah from a member of the Hudson Carpenter family; and WHEREAS, the Guild constructed the Grace Hudson Museum ("Museum") using private donations on the Sun House property for the benefit of the entire Ukiah community; and WHEREAS, the security system ("Security System") originally installed within the Museum has become inadequate to protect the Museum and its irreplaceable collections from fire and other hazards; and WHEREAS, Ukiah wishes to facilitate the Guild's upgrading and replacement of the Security System; NOW, THEREFORE, in consideration of these facts, that parties agree as follows: 1. Ukiah grants a revocable license to Guild to occupy and use a portion of the Grace Hudson Museum and surrounding property, for the purpose of upgrading and replacing the Security System. Ukiah can revoke said license at any time within seven days' prior notice to Guild; 2. As an express condition precedent to the license, Guild agrees as follows: a. To take and keep in force during the life of the license, at the Guild's sole expense, public liability insurance provided by companies licensed to furnish such insurance in the State of California, to protect against any liability to the public incident to the use of or resulting from any accident occurring in or about said Premises, the liability under such insurance to be not less than One Million Dollars ($1,000,000) for any one person injured, or One Million Dollars ($1,000,000) for any one accident, or Fifty Thousand Dollars ($50,000) for property damage with up to a Two Hundred Fifty Dollar ($250) deductible provision, provided the Guild posts a Two Hundred Fifty Dollar ($250) cash bond to cover the deductible. A policy endorsement to said insurance naming Ukiah as an additional insured and a certificate of insurance providing for a thirty-day notification of cancellation to Ukiah shall be provided to Ukiah and be made a part of this Agreement. The Guild shall use a form for the certification of insurance approved by Ukiah. b. Ukiah shall not be liable for and is free from the cost of any damages for personal injury or property damage, or any other claim or demand whatsoever, resulting from the use made by Guild of the Premises, any defective condition or faulty construction of the Premises existing at the time of granting the license or arising thereafter, and Guild covenants and agrees to indemnify and save harmless Ukiah from all liability, loss, cost, or other obligation arising out of its use of the Premises or its construction of the Museum, including, but not limited to, claims by contractors or subcontractors arising out of the construction of the upgraded Security System. C. The Guild shall include :n any and all contracts it executes or authorizes in connection with the Security System replacement project a requirement that all contractors procure builders all risk insurance. Each contract shall contain written notice that the property upon which the improvements are constructed is owned by Ukiah and that contractors, subcontractors, or other materialmen cannot perfect mechanic's liens on the property or the improvements under the private construction contracts provisions of Civil Code § 3100, et seq. 3. All construction shall comply with all applicable City Code requirements. Upon completion of the improvements, Guild shall obtain a building inspection. Upon receipt of a satisfactory inspection as provided herein, Guild shall deliver full possession and control of the improvements to Ukiah free from any and all claims of any kind whatsoever by Guild or any third parties. 4. Upon delivery of possession to Ukiah, Guild shall have no further obligations to maintain or operate the Security System. DATED: By: ATTEST: Secretary, Sun House Guild DATED: By: SUN HOUSE GUILD CITY OF UKIAH Mayor ATTEST: City Clerk ITEM NO. 11a DATE: December 7, 2011 City <'J-'z'kiah AGENDA SUMMARY REPORT SUBJECT: CONDUCT A HEARING ON PROPOSED CURBSIDE WASTE COLLECTION FEE INCREASES PURSUANT TO PROPOSITION 218 AND DIVISION 4, CHAPTER 6, ARTICLE 1 OF THE UKIAH CITY CODE, COMMENCING WITH SECTION 3950 Overview: At the October 11, 2011 Council meeting, staff was directed to distribute a notice of proposed garbage rates pursuant to the requirements of Proposition 218. The Council set Wednesday, December 7, 2011 as the date for the garbage rate public hearing. The notice to customers and property owners was mailed by October 21St which was more than the 45 days required by Proposition 218. Additionally Division 4, Chapter 6, Article 1, Sections 3950-3957 of the Ukiah City Code (°UCC") requires a notice to be published in the newspaper 10 days prior to a scheduled hearing before the City Council. Those City Code sections also require a City Manager's Report containing information about the proposed rate change to be available to the public for 10 days before the hearing. The City Manager's report was prepared and the City Clerk published the required notice in the Ukiah Daily Journal on November 23ra A major feature of Proposition 218 is the opportunity for property owners and other customers paying for garbage services to object to or protest the proposed fee increase. As of Thursday morning, December 1, 2011, eleven written protests were received by the City Clerk. Continued on page 2 RECOMMENDED ACTION: 1) Conduct the Public Hearing to receive public input related to the proposed Garbage rate increases 2) Adopt the proposed schedule of garbage rates ALTERNATIVE COUNCIL POLICY OPTION: Identify and adopt an alternate schedule of garbage rates Requested by: Ukiah Waste Solutions Inc. Prepared by: Gordon Elton, Finance Director, Ian Roth, Assistant Finance Director Coordinated with: Council Solid Waste Committee; Jane Chambers, City Manager; Emmett Jones, Consultant, Ukiah Waste Solutions Inc. staff Attachments: 1) Prop 218 Notice; 2) Proposed Rate Schedule, 3) Rate comparison with surrounding areas; 4) Response to Sweeney Questions 1-5; 5) October 11, 2011 Agenda Summary Report 2b, (without attachments) Approved: e"01 Chambers, City Manager ITEM NO. 11a DATE: December 7, 2011 During the period after the October 11th Council action, additional meetings and discussions occurred. Most of those activities were related to the proposed contract amendments and extensions which are a separate agenda item. A few questions were more specific to the rate calculations. Five specific questions were investigated by staff and responses were presented to the Solid Waste Ad Hoc Committee on Monday, November 28th. The detailed staff response is included as Attachment #4. Generally speaking the staff review identified additional considerations which resulted in no change to the rates previously proposed. The more detailed discussion of the rate calculation process is contained in the Agenda Summary Report from October 11, 2001 which is attachment #5. Summary: Sample of proposed monthly Curbside Service rates * Current Proposed Increase % Minimum fee 4.41 4.72 0.31 7.03 10 gallon week) service 4.41 4.72 0.31 7.03 20 gallon week) service 9.26 9.92 0.66 7.13 32 gallon week) service 16.64 17.82 1.18 7.09 One and bin week) service 110.07 117.91 7.84 7.12 One and a half and bin week) service 130.08 139.34 9.26 7.12 Per and rate for larger bins 86.72 92.89 6.17 7.11 * Pack-out and Remote area service have higher rates (see attached schedule for details Approximately 88.5% of the residential garbage customers utilize a 32 gallon or smaller container. Therefore, the majority of customers will experience an increase of $1.18 per month or less. This equates to less than four cents (44) per day. The increase for a customer with the 10 gallon weekly service is a penny per day. Recommendation: Staff recommends the Council approve the proposed rate schedule after holding the public hearing and receiving and considering public input. Page 2 of 2 ATTACHMENT I City of Ukiah NOTICE OF PROPOSED INCREASE IN RATES FOR SOLID WASTE COLLECTION AND DISPOSAL SERVICE NOTICE IS HEREBY GIVEN that the City of Ukiah ("City") proposes to increase solid waste collection and disposal (garbage) rates applicable to all parcels in the City of Ukiah, including the parcel for which you are shown as the property owner of record based on the County of Mendocino 2010/2011 Secured Tax Roll, and/or at which you are shown as the customer billed for garbage service. If adopted, the rate increases will be reflected on utility bills dated on or after January I, 2012. NOTICE IS FURTHER GIVEN that on December 7, 2011, at 6:15 p.m. or as soon thereafter as the matter may be heard, at 300 Seminary Avenue, Ukiah, California 95482, in the City Council Chambers, the City Council will conduct a public hearing on the proposed rate increase. At the public hearing, the City Council will consider all written protests against the proposed fee or charge, and all other comments submitted in writing prior to the hearing or expressed during the hearing. If written protests against the proposed fee or charge are presented by a majority of owners, including renters, of the identified parcels, the City will not impose the fee or charge. The City will consider only one protest per parcel, even if it receives protests from more than one owner or tenant of that parcel. If you want to file a written protest, prior to the hearing, you must submit the protest to the City Clerk at the Ukiah Civic Center, 300 Seminary Ave. Ukiah CA 95482. You may also submit a written protest at the hearing. To be considered, the written protest must include your name, the address or Mendocino County Assessor's parcel number of the parcel you own or rent, a representation that you are the legal owner of the parcel or that you are a lawful renter of the property who pays the garbage bill, a statement that you protest the proposed rate increase, and your signature. The City reserves the right to verify whether any person filing a protest is an owner or a renter legally obligated to pay the fee. To assist with this verification, the City requests inclusion of the applicable utility account number on the protest. The Amount of the Fee Imposed on Each Parcel: The proposed rate increase as of January 2012 is 7.12%. During the next four years, including January 2013, January 2014, January 2015, and January 2016, the rates will increase or decrease based on the following changes to indexes and pass- through costs: (1) the percentage change in the Consumer Price Index, All Urban Consumers, U.S. City Average ("CPI") over the previous year, (2) the percentage change, June over June of the previous year, in the Energy Information Administration Petroleum & Other Liquids index over the base year ending June 30, 2010, (3) any changes to the gate fee at the Ukiah Transfer Station, (4) any changes to costs paid by the franchisee to process recyclables, and (5) changes in regulatory fees, all in accordance with the Contract for Collection, Transportation and Disposal of Garbage, Refuse and Rubbish and Recycling of Recyclable Materials from within the City of Ukiah ("Waste Collection Contract") between the City and Ukiah Waste Solutions, Inc., a private company. After the January 2012 rate increase, the rates will automatically increase or decrease each year in accordance with the Waste Collection Contract, which will be available for inspection at the Civic Center and on the City's website, beginning October 28, 2011. The following table indicates the existing and proposed monthly solid waste service rates for residential and commercial service to each parcel in the City of Ukiah, beginning January 1, 2012: Residential Service Current January 2012 Current January 2012 Current January 2012 Service Level Curbside service Pack-out service Remote Service No service $ 4.41 $ 4.72 $ 6.80 $ 7.28 $ 13.60 $ 14.56 1-10 gallon service 4.41 4.72 6.80 7.28 13.60 14.56 11-20 gallon service 9.26 9.92 11.62 12.45 18.42 19.73 21-32 gallon service 16.64 17.82 20.38 21.83 27.18 29.11 33-68 gallon service 39.30 42.10 47.87 51.28 54.67 58.56 69-95 gallon service 55.39 59.33 69.16 74.08 75.96 81.36 96 + gallon service $.644/aal $.690/gal $.728/gal $.780/ al $.728/ al * $.780/ al * Overstuffed can/extra stop 5.91 6.33 6.80 7.28 13.60 14.56 1 and bin $ 110.07 $ 117.91 N/A N/A N/A N/A 1.5 and bin 130.08 139.34 N/A N/A N/A N/A Larger bins at per and rate 86.72 92.89 N/A N/A N/A N/A - plus remote service fee of $6.80 which is changing to $7.28 Miscellaneous and Special Services will also increase b 7.12% The Reason for and Basis Upon Which the Fee Increase was Calculated: The proposed rates are calculated based on the Waste Collection Contract. The 7.12% proposed rate increase was calculated by carefully evaluating the changes in fuel costs and costs at the Taylor Drive Transfer Station for the period ending December 31, 2010. The proposed increase represents the cost of the increased gate fee, the increased cost of fuel, and a CPI adjustment for other waste collection operating costs. If the rates for the period commencing January 2012 were adjusted only by the CPI, the rates would increase by 3.56%. In accordance with current City Code Section 3951(D), and unless that code section is amended, before the rate may increase on January 1, 2016, based on the changes in indexes and pass-through fees, as described above, the City must conduct a rate review under City Code procedures to confirm that those increases are not excessive. Under the Waste Collection Contract, beginning on January 1, 2017, and every five years thereafter, the rates are subject to a full rate review by the City Council conducted pursuant to Proposition 218 procedures to determine whether they should be increased or decreased. At these hearings, the City Council may consider any financial information considered relevant by the City Council, to determine whether the rates are fair to the rate payers and should be increased or decreased to appropriately compensate the franchised waste hauler for the cost of providing the service. City of Ukiah.mdd 1 10/14111 11:11 MA - Ciudad de Ukiah AVISO DEL AUMENTO PROPUESTO DE TARIFAS PARA LA RECOLECCION DE BASURA Y SERVICIO DEL BASURERO El AVISO SE DA POR ESTE MEDIO que la Ciudad de Ukiah (`Ciudad propone aumentar las tarifas de la recoleccion de basura (basura) aplicables a todos los locales en la Ciudad de Ukiah, CA 95482 incluyendo el local Para el cual usted aparece como el propietario en el expediente encontrado en el condado de Mendocino 2010/2011 de impuesto establecidos, y/o en el cu6I aparece como el cliente a quien se le envia la cuenta Para el servicio de la basura. Si se aprueba esta propuesta, Ins aumentos de la tarifa seran reflejados en las facturas despuds del 1 de enero de 2012. SE RECALCA AVISO DADO que el 7 de diciembre de 2011, a las 6:15 P.M. o a no mas tardar el caso se da a escuchar para el p6blico, en el 300 de la avenida Seminary en Ukiah, California 95482, en las salas del Ayuntamiento, el Ayuntamiento conducird tan pronto despuds de eso una audiencia p6blica del aumento propuesto de la tarifa. En la audiencia publica, el Ayuntamiento tomada en consideration todas las protestas por escrito contra el honorario o cobro propuesto, y el resto de los conrentarios entregados pox escrito antes de la audiencia o expresados durante la audiencia. Si las protestas escritas contra el honorario o cobro propuesto son presentadas por una mayoria de duenos, incluyendo arrendatarios, de los locales identifrcados, In Ciudad no impondra el honorario ni cobro. La Ciudad considerarA solamente una protesta por local, aunque reciba protestas de mas de un dueno o arrendatario de ese local. Si quiere entregar la protesta por escrito antes de la audiencia, debe Ilevarla al secretario/a de la Ciudad en el Centro civico de la Ciudad en el 300 de la avenida Seminary en Ukiah, CA 95482. Aunque tambidn puede entregar una protesta por escrito en el dia de la audiencia. Para que In protesta se tomada en cuenta, esta debera Ilevar los siguientes detalles, so nombre, domicilio del local o numero del local del que usted sea propietario a inquilino, comprobante de que usted es el dueno o inquilino quien esta pagando por la basura, y on escrito de que usted esta protestando el aumento de las tarifas y su firma. La Ciudad puede y tiene el derecho de verificar que usted es el dueno o inquilino legal con la obligation de pagar las cuotas. Para poder verificar, la Ciudad requiere que usted & el numero de cuenta en la factura de ]as utilidades. La cantidad de la cunta frjada a cada local: El aumento de la tarifa propuesta desde enero del 2012 es del 7.12%. Durante los siguientes cuatro anos, que son enero 2013, enero 2014, enero 2015, y enero 2016, las tarifas aumentaran o disminuiran segOn Ins cambios como indices y costos pasaderos: (1) el cambio de porcentaje en el indice de precios al consumo, todos los consumidores urbanos, los Promedio de Ciudad ("CPI de E.E.U.U durante el ano pasado, (2) el cambio de porcentaje, dejunio ajunio del ano pasado, del petr6leo de la administration de la information de energia; el indice de liquidos basados al concluirse el 30 de junio de 2010, (3) cualquier cambio de honorario de la compuerta en la estaci6n de transferencia de la basura en Ukiah, (4) cualquier cambio de los costos pagados Para que una franquicia procese reciclables, y (5) y cambios en honorarios regulatorios, todos de acuerdo con el contrato Para la coleccion, transporte y disposition de la basura, basura y los desperdicios y reciclaje de materiales reciclables dentro de la Ciudad de Ukiah ("contrato de In coleccion de basura entre la City y Ukiah Waste Solutions, Inc., empresa privada. Despuds del aumento de la tarifa en enero del 2012, las tarifas aumentaran o disminuiran automaticamente cada ano de acuerdo con el contrato de la coleccion de la basura, que estara disponible Para revisarlo en el Centro municipal y en el sitio Web de la Ciudad, despuds del 28 de octubre de 2011. La siguiente tabla indica los servicios y tarifas mensuales propuestas y vigentes Para la basura de residencia y comercial de cada local en la ciudad de Ukiah, empezando en enero del 2012: Servicio de residencia Vi ente Para enero del 2012 Vi ente Para enero del 2012 Vi ente Para enero del 2012 Nivel del servicio Del borde Por sacar la basura Servicio del I Bares remotos Sin servicio $ 4.41 $ 4.72 $ 6.80 $ 7.28 $ 13.60 $ 14.56 Servicio de 1-10 alones 4.41 4.72 6.80 7.28 13.60 14.56 Servicio de 11-20 alones 9.26 9.92 11.62 12.45 18.42 19.73 Servicio de 21-32 alones 16.64 17.82 20.38 21.83 27.18 29.11 Servicio de 33-68 alones 39.30 42.10 47.87 51.28 54.67 58.56 Servicio de 69-95 alones 55.39 59.33 69.16 74.08 75.96 81.36 Servicio de 96 + galones $.644/ al $.690/gal $.728/ al $.780/ al $.728/ al $.780/ al Botes muy llenos/pasar de nuevo 5.91 6.33 6.80 7.28 13.60 14.56 Ca as de una 1 arda $ 110.07 $ 117.91 N/A N/A N/A N/A Cajas de 1.5 ardas 130.08 139.34 N/A N/A N/A N/A Cajas grandes de tarifa por arda 86.72 92.89 N/A N/A N/A N/A * mas tarifa or servicio remoto de $6.80 el cual va a cambiar a $7.28 MiscelAneos servicios es eciales tambidn aumentaran un 7.12% La razon de y la base sobre la cual el aumento del honorario foe calculado: Se calculan las tarifas propuestas basados en el contrato de la coleccion de basura. El 7.12% aumento propuesto de la tarifa fue calculada cuidadosamente evaluando Ins cambios en costos del combustible y los costos en la estaci6n de transferencia Taylor en el periodo que terming el 31 de diciembre de 2010. El aumento propuesto representa el costo de honorario creciente de la entrada el basurero, el costo creciente de combustible, y un ajuste del CPI por otros gastos de la coleccion de basura. Si las tarifas Para el periodo que comienza en enero de 2012 fueran ajustadas solamente por el CPI, las tarifas aumentarian en un 3.56%. De acuerdo con la section actual 3951 del codigo de ciudad (D), y a menus que se enmiende esa section del codigo, antes de que la tarifa pueda aumentar el I de enero de 2016, basado en los cambios en indices y honorarios de pasaderos, como se describe anteriormente, la ciudad debe conducir una revision de la tarifa conforme a procedimientos de c6digo de la Ciudad para confirmar que esos aumentos no son excesivos. Bajo el contrato de la coleccion de basura, comenzando el I de enero de 2017, y cada cinco anos despuds de esto, las tarifas estan sujetas a una revision de exploration completa del Ayuntamiento conducido conforme a procedimientos de la propuesta 218 para determinar si deben ser aumentadas o ser disminuidas. En estas audiencias, el Ayuntamiento puede considerar cualquier information financiera considerada relevante por el Ayuntamiento, para determinar si las tarifas son justas al consumidor que paga la tarifa y si deben ser aumentadas o ser disminuidas Para compensar apropiadamente el concesionario Para el costo de proporcionar el servicio de transporte de basura. City of Ukiah.indd 2 10/14/11 11'11 AM ATTACHMENT ' Ukiah Waste Solutions, Inc. 2012 Rate Schedule RESIDENTIAL / COMMERCIAL Residential Carts No Service 1-10 11-20 21-32 33-68 69-95 Gallons 2012 Rates Fee ix/WK 1x/WK ix/WK 1x/WK 1x/WK Roadside 4.72 4.72 9.92 17.82 42.10 59.33 Pack Out* 7.28 7.28 12.45 21.83 51.28 74.08 Remote** 14.56 14.56 19.73 29.11 58.56 81.36 * Pack Out service is limited to the elderly and disabled who apply dire ctly through Ukiah Waste Solutions @ 707-234-6400. The additional charges of Remote se rvice may be req uired for certain areas with difficult access. Commercial Carts 2012 Rates 1-10 11-20 21-32 33-68 69-95 Gallon 1 Can - 1x/WK 4.91 10.28 18.50 43.72 61.62 1 Can-2x/WK 41.12 97.33 136.96 S Can-3x/WK 68.70 149.24 208.48 2 Cans - 1x/WK 41.12 97.33 136.96 Commercial / Residential Bins Yards Number of pick- ups perweek Extra 2012 Rates 1x/WK 2x/WK 3x/WK 4x/WK 5x/WK 6x/WK Pick-up 1.0 117.91 n/a n/a n/a n/a n/a 27.23 1.5 139.34 278.68 418.02 557.36 696.70 836.04 32.18 2.0 185.79 371.58 557.37 743.16 928.95 1,114.74 42.91 3.0 278.68 557.36 836.04 1,114.72 1,393.40 1,672.08 64.36 4.0 371.58 743.16 1,114.74 1,486.32 1,857.90 2,229.48 85.82 6.0 557.37 1,114.74 1,672.11 2,229.48 2,786.85 3,344.22 128.72 Extra p/u calculated at 1/wk divided by 4.33 Clean-Up Bins and Boxes New Rate 2012 3.0 Yd 3 day rental 96.41 includes tip fee 15.0 Yd 7 day rental 218.46 Plus $78.70 per ton tip fee 20.0 Yd 7 day rental 218.46 Plus $78.70 per ton tip fee 30.0 Yd 7 day rental 218.46 Plus $78.70 per ton tip fee Compactors 218.46 Plus $78.70 per ton tip fee Misc Charges New Rate 2012 Bulky Items (appliances, Lg Tires, Furniture etc..) 24.25 Plus tip fee Tires - each - (Automotive or motorcycle) 5.11 Damage Cart Replacement 66.00 Additional Green Waste or R/C Cart 6.50 Extra Residential Pick-up 6.33 Extra Commercial Pick-up 11.82 Compactor Cleaning 284.46 Container Cleaning 102.41 Locking bin, one-time setup fee 32.43 Plus Materials Replacement Key 11.38 Contamination Fee 32.48 Returned Check Fee 35.00 Roll Off or Bin Extra Day Charge 11.82 Exchange Cart Size 24.36 Rate to collect and dispose of sludge will be equal to or less than the current rate. Customers billed by Ukiah Waste Solutions are billed as commercial customers. Customers billed by the City of Ukiah are billed as residential customers. Ukiah Waste Solutions, Inc. NEW 2012 GARBAGE COLLECTION RATE ADJUSTMENTS SUMMARY OF RATE ADJUSTMENT FOR STANDARD SERVICES YEAR 2012 Effective Percentage Total Monthly Rate Per Service Level Current Adjusted 2012 Adjustment Adjustment Gallon / Yard Curbside Service No Service $ 4.41 $ 4.72 7.03% $ 0.31 $ 0.472 10 gallon can rate $ 4.41 $ 4.72 7.03% $ 0.31 $ 0.472 20 gallon can rate $ 9.26 $ 9.92 7.13% $ 0.66 $ 0.496 32 gallon can rate $ 16.64 $ 17.82 7.09% $ 1.18 $ 0.557 68 gallon can rate $ 39.30 $ 42.10 7.12% $ 2.80 $ 0.619 95 gallon can rate $ 55.39 $ 59.33 7.11% $ 3.94 $ 0.625 Other combinations - rate per gallon $ 0.64 $ 0.69 7.14% $ 0.05 $ 0.690 Overstuffed can charge/Extra Stop $ 5.91 $ 6.33 7.12% $ 0.42 n/a 1 yard bin rate $ 110.07 $ 117.91 7.12% $ 7.84 $ 117.91 1.5 yard bin rate $ 130.08 $ 139.34 7.12% $ 9.26 $ 92.89 2 yard bin rate $ 173.44 $ 185.79 7.12% $ 12.35 $ 92.90 3 yard bin $ 260.16 $ 278.68 7.12% $ 18.52 $ 92.89 4 yard bin $ 346.88 $ 371.58 7.12% $ 24.70 $ 92.90 6 yard bin $ 520.32 $ 557.37 7.12% $ 37.05 $ 92.90 Packout Service No Service $ 6.80 $ 7.28 7.06% $ 0.48 $ 0.728 10 gallon can rate $ 6.80 $ 7.28 7.06% $ 0.48 $ 0.728 20 gallon can rate $ 11.62 $ 12.45 7.14% $ 0.83 $ 0.623 32 gallon can rate $ 20.38 $ 21.83 7.11% $ 1.45 $ 0.682 68 gallon can rate $ 47.87 $ 51.28 7.12% $ 3.41 $ 0.754 95 gallon can rate $ 69.16 $ 74.08 7.11% $ 4.92 $ 0.780 Other combinations - rate per gallon $ 0.73 $ 0.78 7.14% $ 0.05 $ 0.780 Overstuffed can charge/Extra Stop $ 6.80 $ 7.28 7.06% $ 0.48 n/a Pack out service is limited to the elderly and disabl ed who apply directly through Ukiah Waste Solutions a t 707-234-6400 Remote Area Service Add to the Packout Service rate. $ 6.80 $ 7.28 7.06% $ 0.48 N/A In areas with limited access, an additional fee is charged to fund the costs of special equipment and special handling necessary to provide garbage pickup services. This fee is in addition to the "Packout Service" fee listed in this schedule. ATTACHMENT Area Monthly Rate Comparison September 2011 Hauler Rates 20 gal / 1x 32 gal / 1x 2yd/1x UWs UWs WM Lakeport sWOW Fort Braes sWOW Current Proposed Inland Disposal North City of City of Mendocino City of City of City of Mendocino Ukiah Ukiah County Lakeport Willits Fort Bragg County $9.26 $9.92 N/A N/A $11.75 N/A $31.24 $16.64 $17.82 $20.37 $19.68 $20.78 $28.22 $38.17 $173.44 $185.79 $246.81 $253.24 $242.23 $297.90 $324.02 $40.00 $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 Comparison of 20 Gallon and 32 Gallon - Services in the Region { . . i mom f~ Rim= 20 gal / 1x 32 gal / 1x Current City of Ukiah e Proposed City of Ukiah Inland Mendocino County City of Lakeport City of Willits City of Fort Bragg North Mendocino County UWS = Ukiah Waste Solutions, Inc. WM = Waste Management SWOW = Solid Waste of Willits ATTACHMENT RESPONSE TO SWEENEY COMMENTS 1-5 November 28, 2011 The Staff has considered the comments made by Mr. Sweeney in Questions 1-5 regarding certain matters related to rate calculations. During the Staff's consideration of those five questions, the assumptions and calculations used to support the proposed rate structure for both the Transfer Station Gate Fee, and the Curbside rates were again verified. It is the Staff's conclusions that the assumptions and calculations used by Staff fully support the Gate Fee and Curbside Rates that have been presented to the Council. Mr. Sweeney used a traditional per truck hour approach, at a rate of $90 per truck hour, to calculate the different transportation cost of taking MSW to East Lake landfill as compared to taking it to Potrero Hills. As is more fully explained below, staff has used actual costs rather than a simple $90/hour rate to calculate the cost differential. After revisiting the calculations, staff remains satisfied the proposed rates adequately accounts for the cost differential. Response to Questions 1-5 of November 1, 2011 regarding Rates. 1. The transfer station gate fee calculation underestimates savings from redirection from Potrero Hills Landfill to Eastlake Landfill. The City Staff recalculated the estimated cost-savings effect of redirecting solid waste to the Eastlake Land fill from Potrero Hills Landfill using the per truck hour approach suggested by Mr. Sweeney. The truck hour approach suggested by Mr. Sweeney verifies that the estimates related to redirecting solid waste to Eastlake used by Staff are correct, when using complete information, and correct assumptions. The Staff calculation is attached. Both Staff and Mr. Sweeney's calculations used the base year fuel cost which is lower than current cost. It should be noted that the proposed agreement automatically adjusts the gate fee at the Transfer Station each 1 RESPONSE TO SWEENEY COMMENTS 1-5 year based on changes to the fuel index. The contractor will use less fuel each year, because the distance to and from the Transfer Station to East Lake is 122 miles less than the distance to Potrero Hills. The reduced mileage represents a saving to the contractor's operating cost, and an equal savings to the ratepayer. Mr. Sweeney's calculation did not disclose or consider that fuel cost increases over the base year would be passed through to the ratepayer in higher gate fees based on the fuel cost index. Avoiding those automatic increases in the gate fee, by driving 122 fewer miles, represents both a savings to the ratepayer and lower operating cost to the contractor. In addition, in any future year where the actual fuel costs are less than the base rate, those lower fuel cost savings will be passed through to the ratepayer The redirection to Eastlake provides the ratepayer insurance against higher fuel costs in the future by eliminating 122 miles of transport on every round trip. Also, the Eastlake option avoids any cost of living increases for the years 2012, 2013, 2014; a charge that would have been included in the Potrero Gate Fee in those years. Mr. Sweeney's comments did not include that by redirecting to Eastlake, the impact of reduced miles and three years without cost of living increases, is likely to reduce costs to the ratepayer in the range of $130,000 to $220,000 over the first five years of the agreement. The Staff believes that high fuel costs in the future are likely, and that the choosing of a landfill that is 122 miles closer, is in the best interest of the ratepayer, and will avoid, to the extent possible, the higher over the road costs that would be incurred by directing to the Potrero Landfill, or any other distant landfill. 2. Additional reductions in the transfer station fee may be appropriate. The transfer station gate fee calculation did not include, and was not affected by, non-disposal activities that take place at the transfer station, and, therefore, the correct methodology was employed. 2 RESPONSE TO SWEENEY COMMENTS 1-5 3. The collection contract overlooks the 2.56% rate increase that is supposed to be reversed in 2013. The curbside rate setting process did not overlook this item. History: 2004 In the Curbside Rate Setting for 2004, the then ad hoc committee members considered the CARB regulation fleet retrofit issue. It was determined that the fleet was old, and it made no sense to retrofit old trucks, Further, it was unclear at the time which of the available CARB compliance equipment was best. Since action was not yet required by regulation, it was determined to wait until the scheduled 2007 Curb Side Rate Settling process, and at that time deal with CARB regulations, through acquisition of a compliant fleet of used trucks. 2007 During the 2007 Curbside Rate Setting process, the then ad hoc committee recommended that a fleet of CARB compliant used trucks be acquired by the former franchise holder. That recommendation was made and the Council adopted a Resolution to include 2.56% in the rate structure to fund a CARB compliant fleet replacement. This replacement was carried out by the new Franchise holder, soon after they took over the business. The amount allowed the Contractor was modest, and included no funds for standby trucks. Other than the Resolution amount, no depreciation charge, or sinking fund amount was included in the rates to deal with future truck replacement costs beyond what was purchased as a result of the Resolution. The existing contract has no provision for truck replacement other than for the Contractor to ask for such amounts during rate review, as was done in 2007. In considering the new Agreement, Staff believed that retention of the amount dedicated to truck replacement in the resolution would be an appropriate way to fund future truck replacement during the term of the new Agreement. 3 RESPONSE TO SWEENEY COMMENTS 1-5 The Staff believed that this was in the interest of the ratepayer because: 1. The City has always believed that the acquisition of used trucks saves the ratepayer money by avoiding excessive new vehicle first year depreciation. 2. Trucks do not last forever, and must be replaced to insure an appropriate level of service. 3. Most complaints about the now former Franchise operator were related to old, leaking, and noisy trucks. 4. The existing agreement had no provision for truck replacement. 5. No other expense had been allowed to the Contractor to provide funds for truck replacement. 6. The amount that was negotiated in 2007 for truck replacement is a modest amount, and if the Contractor would take on the responsibility to replace rolling stock over the life of the Agreement, the ratepayer would not be exposed to higher replacement costs in the future. 7. The amount provided for in the resolution gives the Contractor zero for the cost of backup equipment. So, the ratepayer is not charged for backup equipment provided by the contractor to timely complete service. 8. If an identified amount were not in the Agreement, and the Contractor had not accepted responsibility for truck replacement, then a provision would be needed in the Agreement to charge the ratepayer the cost of truck acquisition, what ever that amount might be in future. 9. By including the modest, fixed amount of the resolution for truck replacement in the Agreement, the Contractor is motivated by its own economic interest to seek out and find the best equipment available, for the best price. I O.The Contractor is still governed by performance standards. Should the Council choose to approve the new Agreement with this suggested approach, then the City Attorney will provide the legal form necessary to deal with the existing resolution, and the incorporation of the related amount in the new Agreement in the normal course of business. 4 RESPONSE TO SWEENEY COMMENTS 1-5 4. The"Recycling Credit" applied against collection contract operating costs appears to be underestimated. It appears that Mr. Sweeney simply misread the terms of the recycling credit. The ratepayer will .always get a credit for the market value of the single stream material collected at the curb, but never less than $5 a ton. In other words, the ratepayer will get a credit for market value when that value is higher than $5 a ton, but never less than $5, even when market value is lower than that amount. Use of the number Mr. Sweeney suggests, instead of the base number, would not change the rate of any service by even one cent, so the rate schedule presented would be exactly the same. The Staff did that calculation, and decided as a result, that the use of the base rate in the base year was appropriate. 5. The curbside collection increase should be reduced at least from 7.12%to5.95% Because our responses to questions 1-4 verify the assumptions and calculations supporting both the transfer station Gate Fee, and the curbside rate schedule as presented, no action is required, or appropriate related to these five questions. 5 ATTACHMENT ITEM NO. 2b DATE: October 11, 2011 City of'zlkiafx AGENDA SUMMARY REPORT SUBJECT: DISCUSSION AND POSSIBLE ACTION TO PROVIDE NOTICE AND CONDUCT A HEARING ON PROPOSED CURBSIDE WASTE COLLECTION FEE INCREASES PURSUANT TO PROPOSITION 218 AND DIVISION 4, CHAPTER 6, ARTICLE 1 OF THE UKIAH CITY CODE, COMMENCING WITH SECTION 3950 Overview: The City's franchised waste hauler, Ukiah Waste Solutions, Inc. ('UWS"), collects garbage and curbside recyclables within the City. The City is negotiating a new contract with UWS. There was a need for a new contract due to a number of factors affecting the business model and services being provided by UWS. The proposed contract requires a base line be set for services which will result in slightly higher rates for waste collection which reflect the actual costs of providing that service. Under the proposed contract, the service rates specified in the Contract must be adopted in accordance with the notice and public hearing requirements in Sections 3950-3957 of the Ukiah City Code (°UCC") and Article XIII.D of the California Constitution and Government Code Sections 53750 et seq. (collectively, "Proposition 218'). As a result, the City Council is required to conduct a rate hearing to determine whether the rate increase in the proposed contract will fairly compensate UWS for the cost of collecting garbage and recyclables from within the City. The term of the existing contract with UWS expires on December 31, 2016. The proposed contract will have a new fifteen (15) year term, commencing on January 1, 2012, and continuing until December 31, 2026. The proposed contract will establish a base rate for collection services, commencing on January 1, 2012, that is intended to reflect the actual Continued on page 2 RECOMMENDED ACTION: 1) Set Wednesday, December 7, 2012 as the date for the Public Hearing to consider adoption of the curbside garbage and recycling collection rates 2) Direct staff to mail the Prop 218 notice, based on the proposed rate schedule, to the appropriate customers ALTERNATIVE COUNCIL POLICY OPTION: Identify and adopt alternate rate adjustments or alternate public hearing dates Requested by: Ukiah Waste Solutions Inc. Prepared by: Gordon Elton, Finance Director, Ian Roth, Assistant Finance Director Coordinated with: Council Solid Waste Committee; Jane Chambers, City Manager; Emmett Jones, Consultant, Ukiah Waste Solutions Inc. staff Attachments: 1) Prop 218 Notice; 2) Proposed Rate Schedule; 3) Rate comparison with surrounding areas Approved: Jane Chambers, City Manager ITEM NO: 2b Meeting Date: October 11, 2011 costs incurred. That base rate will increase automatically each year thereafter based on increases in the Consumer Price Index and a Fuel Cost Index. Transfer Station Gate Fees charged by Solid Waste Systems, Inc. ("SWS"), a company under common ownership with UWS; fees paid to facilities that process green waste and food waste, including Pacific Recycling; and governmental fees, become pass-through costs. Any increase in those costs will automatically result in an increase in the collection rates charged in the City. The combined rates will be reviewed every five years under the Proposition 218 procedures. The City conducts the rate review pursuant to Ukiah City Code (°UCC") Sections 3950- 3957, which requires a notice to be published in the newspaper 10 days prior to a scheduled hearing before the City Council. Those City Code sections also require a City Manager's Report containing information about the proposed rate change to be available to the public for 10 days before the hearing. Additionally, the charges for garbage service in the City may be a "property-related fee," subject to the notice and hearing requirements in Proposition 218. To avoid any question about the procedures used to increase garbage rates in the City, it has elected to follow these procedures, in addition to the procedures in the Ukiah City Code, when considering a rate increase for garbage collection. Proposition 218 requires mailing a notice to customers at least 45 days prior to the date of the public hearing. This notice must identify the proposed rate changes and describe the process customers must follow if they wish to object to the rate change. One of the purposes of the notice is to establish the maximum rates the City Council may consider adopting at the public hearing. The Council may establish rates lower than the rates identified in the notice. The notice proposed by City staff is included as Attachment 1. The notice will be translated into Spanish and both the English and Spanish version will be mailed to the property owners and customers. Background: The provisions of the City's franchise agreement with UWS, for the collection, transportation and disposal of garbage and the recycling of recyclable materials within the City limits of Ukiah requires that in the event that a new contract is negotiated, the City Council shall conduct a rate hearing pursuant to UCC Sections 3950-3957 to determine the garbage collection and recycling rates, taking into consideration the annual audits of the contractor's operations and all other factors deemed relevant by the City Council. The fee schedule, previously adopted, utilized the gallons per week approach to determine the fee, which provides a simple method for computing a customer's cost. The size of the container(s) times the number of containers times the number of pickups per week equals the number of gallons per week. The total gallons per week times the rate per gallon for the calculated quantity equals the monthly fee. Container sizes are: 10 gallons, 20 gallons, 32 gallons, 68 gallons, and 95 gallons. Multiple containers are allowed for commercial customers needing more than 95 gallons per pickup. Under special circumstances, customers requiring multiple smaller containers are allowed. The basic concept of promoting recycling efforts by reducing the cost for customers who dispose of less garbage is retained in the proposed fee schedule. Page 2 of 4 ITEM NO: 2b Meeting Date: October 11, 2011 Discussion: To evaluate the fee increase requested by UWS for calendar year 2012, the City Finance Director, the City Manager, the Assistant Finance Director, and Emmett Jones, a CPA and consultant with experience in waste collection accounting, met with UWS staff, reviewed the request and submitted a recommendation to the Solid Waste Ad Hoc Committee, consisting of Councilmembers Thomas and Landis. Initially, UWS requested a 9.05% increase in the curbside collection rates to offset the requested cost adjustment at the transfer station which is primarily needed due to the increase in fuel costs and disposal fees (the cost to transport and dispose of waste at a solid waste landfill), CPI, and to set an accurate base rate for future rate reviews and adjustments. Staff requested additional information from UWS representatives to understand the operating costs of the collection company. Staff performed an analysis of the request and prepared a revised calculation based on the revised proposal for transfer station costs and revisions to the cost assumptions. The revised increase of 7.12% was presented to the Solid Waste Ad Hoc Committee at the meeting on October 6th. The proposed 2012 adjusted rate schedule is included as Attachment 2. After the proposed rate increase, the rates for garbage service in Ukiah remain significantly lower (at least 10%) than in Willits, Lakeport, Fort Bragg, and the surrounding unincorporated area of Mendocino County (Attachment 3). The calculation for the currently proposed rate increase was developed for the period beginning January 2012. The Consumer Price Index (CPI) and Cost of Fuel Index (COFI) based increases included in the franchise agreement will apply for January 2013, January 2014, January 2015, and January 2016. These CPI/COFI based increases are also identified in the Proposition 218 notifications. Any rate adjustment in 2017 will be considered at a rate hearing in 2016. Rate increases based on pass-through costs, as defined in the proposed contract, may also occur in 2013, 2014, 2015 and 2016. "Pass Through Costs" means Disposal Costs, Processing Costs and Regulatory Costs. The Disposal Cost is the gate fee at the Ukiah Transfer Station currently $74.50 per ton and projected to increase to $78.70 per ton, effective January 1, 2012. Processing Costs are currently $30/ton charged by Pacific Recycling Solutions, a company under common ownership with UWS and Cold Creek Compost. Regulatory Costs are the 15% Franchise Fee, the City's 3% billing fee, the City's $10,000 per year commercial oversight fee and the City's $60,000 per year landfill closure fee. Any future increase in those fees before the five year rate review in 2017 would be automatically passed through to the curbside collection rate, effective when UWS is first required to pay the higher fee. Page 3 of 4 ITEM NO: 2b Meeting Date: October 11, 2011 Sample of proposed monthly Curbside Service rates * Current Proposed Increase % Minimum fee 4.41 4.72 0.31 7.03 10 gallon week) service 4.41 4.72 0.31 7.03 20 gallon week) service 9.26 9.92 0.66 7.13 32 gallon week) service 16.64 17.82 1.18 7.09 One and bin week) service 110.07 117.91 7.84 7.12 One and a half and bin week) service 130.08 139.34 9.26 7.12 Per and rate for larger bins 86.72 92.89 6.17 7.11 * Pack-out and Remote area service have higher rates (see attached schedule for details Approximately 88.5% of the residential garbage customers utilize a 32 gallon or smaller container. Therefore, the majority of customers will experience an increase of $1.18 per month or less. This equates to less than four cents (44) per day. The increase for a customer with the 10 gallon weekly service is a penny per day. Staff recommends the Council approve the proposed rate schedule and distribution of the Proposition 218 notice, and schedule the public hearing on the proposed garbage collection rates and fees for Wednesday, December 7, 2011. Page 4 of 4 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING RATES FOR WASTE COLLECTION IN THE CITY WHEREAS, 1. Under a new Waste Collection Agreement between the City of Ukiah and Ukiah Waste Solutions, Inc. ("UWS"), the City Council is required to approve a base rate for waste collection services; and 2. The base rates must be set in accordance with the procedures prescribed by Ukiah City Code Sections 3950-3957 ("UCC Utility Rate Procedures") and section 6 of Article XIII.D of the California Constitution and Government Code Sections 53750 et seq. (collectively, "Proposition 218"); and 3. On March 5, 2008, the City Council adopted a resolution approving rates for fiscal years 2007-2010, which included a 2.56% increase to pay for the cost to finance the purchase of garbage collection trucks that complied with new California Air Resource Board ("CARB") requirements for diesel engine emissions; and 4. Under the March 5, 2008, resolution, the 2.56% increase was to be eliminated in 2013, when the loan to purchase the CARB compliant trucks is to be fully repaid; and 5. The proposed base rate does not include an allowance for depreciation and instead proposes to continue the 2.56% increase approved in 2008 beyond 2013 to cover the cost of future equipment replacements as equipment wears out or becomes obsolete; and 6. On October 11, 2011, the City Council directed staff to provide notice pursuant to Proposition 218 and UCC Utility Rate Procedures of the proposed rates for waste collection services in the City, which will become the base rate under the Waste Collection Contract; and 7. The City Council approved notice to property owners and waste collection customers was mailed on October 21, 2011; and 8. Notice of the proposed rates was published in the Ukiah Daily Journal on November 23, 2011; and 9. The City Council did not receive written protests from a majority of the property owners to the proposed rate increase; and 10. The City Council conducted a public hearing on the proposed rates on December 7, 2011; and Resolution No. _ Page 1 of 1 11. The City Council has determined after conducting the public hearing that the proposed base rates are fair and reasonable and do not exceed the cost of providing waste collection services in the City; NOW, THEREFORE, BE IT RESOLVED as follows: 1. The rates set forth in the rate schedule attached to the Waste Collection Contract and hereto as Exhibit E are hereby approved. 2. Sections 6.2-6.5 of the Waste Collection Contract, prescribing automatic rate adjustments based on increases or decreases in the Consumer Price Index and the Diesel Fuel Cost Index and pass-through costs, including the gate fee at the Ukiah Transfer Station, Processing costs and regulatory costs, and full rate reviews, conducted in accordance with UCC Utility Rate Procedures and Proposition 218, every five years, commencing in 2017, are hereby approved. PASSED AND ADOPTED this call vote: day of , 2011, by the following roll AYES: NOES: ABSTAIN: ABSENT: Mari Rodin, Mayor ATTEST: JoAnne Currie, City Clerk Resolution No. _ Page 2of 1 ITEM NO. 12a DATE: December 7, 2011 city O -z-1k afi AGENDA SUMMARY REPORT SUBJECT: DISCUSSION AND POSSIBLE ACTION TO APPROVE AND AUTHORIZE CITY MANAGER TO SIGN TRANSFER STATION AND WASTE COLLECTION AGREEMENTS WITH SOLID WASTE SYSTEMS, INC. AND UKIAH WASTE SOLUTIONS, INC., RESPECTIVELY. Overview: This is the third City Council meeting which has considered an amended and restated Transfer Station Agreement between the City and Solid Waste Systems, Inc. ("SWS") and a new Waste Collection Agreement between the City and Ukiah Waste Solutions, Inc. ("UWS"). In addition to consideration by the whole Council at its November 2 and 16 meetings, the ad hoc committee, consisting of Vice Mayor Mary Ann Landis and Council member Benj Thomas has met three times to review concerns raised by Mike Sweeney, in his capacity as General Manager of the Mendocino Solid Waste Management Authority ("MSWMA"). These meetings have included City staff and consultant, representatives of SWS and UWS, Mike Sweeney, and former City Council member and current member of the Mendocino County Board of Supervisors, John McCowen. As a result of these meetings a number of changes have been proposed by staff to both agreements, including to certain exhibits to those agreements. The ad hoc committee agreed to many, but not all, of the changes advocated by Sweeney and McCowen. Sweeney and McCowen have accepted some, but not all, of the reasons given at the meetings for not changing some provisions of the agreements in response to the Sweeney comments. Attached as Attachments 1 and 2, respectively, are redlined versions of the Transfer Station Agreement and the Waste Collection Agreement, showing the changes Continued on page 2 RECOMMENDED ACTION: Approve the revised contracts, including the revised exhibits to the contracts ALTERNATIVE COUNCIL POLICY OPTION: Reject the contracts or direct staff as to seek further changes. Requested by: Ukiah Waste Solutions Inc. and Solid Waste Solutions, Inc. Prepared by: David J. Rapport, City Attorney Coordinated with: Council Solid Waste ad hoc committee; Jane Chambers, City Manager; Emmett Jones, Consultant, Ukiah Waste Solutions Inc., Solid Waste Solutions, Inc., Mike Sweeney, John McCowen and staff Attachments: 1) Transfer Station Agreement, including Exhibits A-F 2) Waste Collection Agreement, including Exhibits A-E r Approved: e~~-' e Chambers, City Manager ITEM NO: Meeting Date: October 11, 2011 proposed by staff to the agreements as they were presented to the City Council at its November 2 meeting. The following summarizes the significant changes: I. Transfer Station Agreement Section 1.1 - The revisions to this section add: (1) that SWS must operate the transfer station in compliance with all applicable legal requirements; and (2) that SWS must collect any Surcharges imposed by the City. A definition of "Surcharges" has been added to the agreement as Section 2.27 which includes a per ton fee imposed by the City on the receipt of municipal solid waste at the transfer station, including the $5/ton MSWMA fee and the $2.00/ton Landfill closure fee. Section 2.20 - The revision to this section adds a requirement in the definition of Recyclables that SWS must report changes in materials that SWS will accept as Recyclables at the transfer station to the City Manager who must approve those changes. Section 2.23 - The revision to this section includes Surcharges in the definition of Regulatory Costs, which are costs which SWS may pass-through to the gate fee, specifically mentioning as examples the MSWMA fee and the Landfill fee. Section 4.1.1 - The revision to this section requires approval from the City Council rather than the City Manager for any change in Disposal Facility proposed by SWS. The currently approved Disposal Facility is Portrero Hills Landfill in Contra Costa County and beginning January 1, 2012, East Lake Landfill in Lake County. Section 4.1.2 - The revision to this section requires City Council rather than City Manager approval for a change in Processing Facility. The currently approved facilities are the Pacific Recycling Solutions, Inc. ("PRS") facility on North State Street, Cold Creek Compost in Potter Valley and the biomass facility in Scotia, Humboldt County. The revised section allows the City Council to consider any . . factor reasonably related to a legitimate City interest in its management of waste collection and disposal in deciding whether to approve the use of a different processing facility for recyclables, green waste and wood waste. This same provision would apply to a processing facility for food waste, if a change is proposed after the City Council approves a permanent food waste recycling program pursuant to Section 5.4 of the Waste Collection Agreement. Section 4.3 - This section has been revised to clarify that the City's right to designate an entity other than SWS to perform hazardous waste load-check and refrigerant removal at the transfer station includes MSWMA. Section 4.11 - This section has been revised to change the transfer station hours of operation from 8 am to 4 pm to 7 am to 4 pm Monday through Friday for Franchised Waste Haulers and from 7:30 am to 4 pm Monday through Saturday for self-haulers and allowing Page 2 of 5 ITEM NO: Meeting Date: October 11, 2011 Franchised Waste Haulers to deliver solid waste between 6 am and 4 pm on the day after a holiday, when the transfer station is closed. The section has been revised to require any changes in these hours to be reported to the City 80 days in advance and for changes to be revised at the direction of the City Council. Section 5 - The revised section includes all Surcharges, including the MSWMA $5/ton fee. The section specifies when the fees that SWS has collected must be paid to the appropriate entity by SWS and the late payment fee that applies, if SWS fails to make the payment within the required time period. Section 6.1 - This section has been revised by adding a requirement that SWS cannot charge a lower fee to Franchised Waste Haulers or Self-Haulers serving or from areas outside the City than it charges to City's franchised waste hauler or self-haulers taking waste from the City to the transfer station. Section 6.2(f)(iii) - The section has been revised to allow the City Council to review the annual fee adjustments based on changes in the cost of living and fuel indexes and pass-through costs to confirm that changes have been properly calculated. Section 12.1 -After the City acquires title to the Transfer Station in 2016, SWS must lease the site from the City in accordance with the lease attached to the agreement as Exhibit F. This section has been revised to delete an option of Yulupa, Inc., the current owner of the site, to lease the site and sublease it to SWS. As revised, SWS must lease the site from the City. II. Waste Collection Contract Section 2.25 - The section has been revised to add a requirement that UWS report changes in recyclables it will collect at the curbside to the City Manager who must approve the change. Sections 5.2 and 5.3 - These sections have been revised to require that solid waste, recyclables and green waste are collected from each location on the same day. Section 5.4 - The section currently requires UWS to commence a pilot program for collecting food waste from commercial and institutional properties by June 1, 2013. Within 6 months after commencing that program, UWS is required to propose a permanent food waste collection program that includes residential properties. The section has been revised to specify that in developing the permanent program, UWS must provide the City with a list of options, including, but not limited to, open air composting, in vessel composting and anaerobic digestion, alternative Processing Facilities and a comparative analysis of the alternatives, including feasibility, cost, impact on rates, and environmental benefits. The City may request additional information. Section 5.11 - This section requires City Council approval of any proposed change in Page 3 of 5 ITEM NO: Meeting Date: October 11, 2011 a Processing Facility to process recyclables, green waste, wood waste or food waste. It has been revised to add that in deciding whether to approve a change in facility, the City Council may consider any factor reasonably related to a legitimate City interest in its management of waste collection and disposal, including alternative technologies and alternative facilities. Section 5.12 - A revision to this section adds a requirement that the local office which UWS is required to maintain be in or in close proximity to the City as approved by the City Manager. Section 5.13 - This section has been revised to delete the right of UWS to remove and dispose of sewer sludge from the Wastewater Treatment Plant, when the current sludge removal contract expires. Section 5.16 - The section has been revised to state expressly that the spring clean- up is without charge to customers. Section 5.19 - Currently, the section provides that Company may propose additional waste diversion programs. The section is revised to add that City may require UWS to adopt and implement additional diversion programs. Section 6.2(d)(iii) - This section has been revised to allow the City Council to review the annual fee adjustments based on changes in the cost of living and fuel indexes and pass-through costs to confirm that changes have been properly calculated. Section 6.4 - This section requires a review of waste collection rates every 5 years in accordance with Proposition 218 procedures. The section has been revised to expressly state that in conducting that review the City is entitled to UWS financial records showing not only operating costs, but also revenues. The revised section adds that the City may conduct such investigation as it deems appropriate in conducting the review to include City's inspection and copying of Company records and review and/or audit by a City retained CPA; review or audit costs to be paid from rates charged for curbside service. Section 6.6 - This section has been revised to clarify that City determines which multi-family residential customers are billed by UWS and which are billed by City and requires a regular exchange of billing lists to ensure that UWS is following City's directions. Section 7.1 - This section requires UWS to use modern motor dump trucks to collect solid waste in the City. It has been revised to add a requirement that the trucks must comply with all applicable legal requirements and that UWS must not only maintain and repair trucks to meet these standards, but must replace trucks, when necessary. III. Agreement for Receipt of Wood and Green Waste (Ex. D to Waste Collection Agreement and Ex. A to Transfer Station Agreement) Page 4 of 5 ITEM NO: Meeting Date: October 11, 2011 Section C - This recital currently recites that UWS and PRS contemplate PRS accepting approximately 10,000 tons per year of green and wood waste. The section has been revised to include any greater amount allowed by the permits under which the facility is operated. Section 4.a - This section currently entitles PRS to annual cost of living increases in the $30/ton gate fee. The section has been revised to specify that if PRS foregoes an annual CPI increase, as it has done in the past, it may not recoup that foregone amount in a future increase. Section 4.b - The section has been revised to expressly authorize the City to participate in the 5 year rate review required by this section. Section 13 - In addition to naming the City as a third party beneficiary of the contract, the section has been revised to expressly state that the City has the same rights as a parry to the contract to enforce its provisions. Section 14- This section has been added to require City Council approval of an assignment of the contract, incorporating the City's rights under Section 11 of the Waste Collection and Transfer Station Agreements. IV. Recyclable Materials Agreement (Ex. B to Waste Collection Contract) Section 2. The section has been revised so that PRS must accept all recyclables delivered from the curbside in Ukiah, regardless of whether the materials are suitable for recycling and must pay the per ton cost for every ton delivered. Section 3. The per ton charge for recyclables delivered to PRS is specified in Exhibit B to this contract. Exhibit B has been revised to include a Pricing Schedule which includes Tiers for computing the cost per ton in excess of $5, when the market price for recyclables goes up and a formula for calculating the market value of recyclables. Page 5 of 5 AMENDED AND RESTATED TRANSFER STATION AGREEMENT TABLE OF CONTENTS Page Amended and Restated Transfer Station Agreement 1 1. Operating Rights 1 2. Definitions 2 3. Term 5 4. Operations 5 4.1 Receipt, Transfer and Disposal of Solid Waste 5 4.2 Buy-Back Recycling 6 4.3 Drop-Off Recycling 6 4.4 Household Hazardous Waste Recycling 6 4.5 Green Waste and Wood Waste 7 4.6 Food Waste 7 4.7 Reuse Facility 7 4.8 Unacceptable Waste Prohibited 7 4.9 Refusal of Waste 7 4.10 Title to Waste 7 4.11 Hours of Operation 8 4.12 Additional Services 8 4.13 Permits and Licenses 8 4.14 Applicable Law 8 5. Landfill Fee 8 i 6. Gate Rate and Other Service Fees 6.1 Establishment 6.2 Modification Based on Consumer Price Index, Fuel Index and Certain Pass Through Costs 6.3 Modification Based on Changes in Pass Through Costs 6.4 Five Year Review 6.5 Modification Based on Extraordinary Items 6.6 Billing 7. Provisions Applicable to Equipment and Personnel 7.1 Equipment 7.2 Facility Maintenance 7.3 Transport of Materials 7.4 Staffing 7.5 Subcontractors 8. Records and Reports 9. Hold Harmless and Insurance 10. Remedies Upon Default 11. Assignment 12. City's Options to Purchase Site, Improvements and Equipment 12.1 City's Options to Purchase Site and Improvements 12.2 Prior Termination 13. Purchase or Lease of Site and Purchase of Improvements 8 8 8 10 11 11 11 11 12 12 12 12 12 12 12 14 16 15 16 16 17 Formatted: Wrap Around 13.1 Purchase of Site 13.2 Lease of Site 13.3 Purchase of Improvements 14. Waiver 15. Administration 16. Independent Contractor 17. Notices 18. Amendments 19. Successors and Assigns 20. Integration; Severability Exhibit A - Agreement for the Receipt of Green and Wood Waste Exhibit B - Strategic Waste Management Plan Exhibit C - Legal Description of Transfer Station Site Exhibit D - Rate Schedule Exhibit E - Transfer Station Rate Calculation Exhibit F - Transfer Station Lease Exhibit G - Current Geographic Area Served By Transfer Station iii 16 16 17 17 17 18 18 18 18 19 20 21 22 23 24 25 26 Formatted: Wrap Around a' AMENDED AND RESTATED TRANSFER STATION AGREEMENT This Amended and Restated Transfer Station Agreement (the "Agreement") is made as of November . 2011 ("Effective Date") by and between the City of Ukiah, a municipal corporation (hereinafter "City"), Solid Wastes Systems, Inc., a California corporation (hereinafter "Contractor"), and Yulupa Investments, LLC, a California limited liability company ("Owner"), with reference to the following: WHEREAS, Owner currently owns and Contractor currently operates the Ukiah Valley Transfer Station located in Mendocino County pursuant to that certain Agreement dated November 20, 2001, as amended April 17, 2002 and the Consent to Sale [Transfer Station Contract], dated October 2007, collectively, the "Prior Agreement"; and WHEREAS, Ukiah Waste Solutions, Inc. ("UWS"), a California corporation and an affiliate of Contractor, collects all Solid Waste generated in City pursuant to that certain Waste Collection Agreement with City of even date herewith (the "Collection Agreement"); and WHEREAS, Contractor has proposed a capital-intensive, long-term Strategic Waste Management Plan (the "Strategic Plan"), including, but not limited to, Contractor financed capital projects, for City and the other customers Contractor and its affiliates serve that is designed to increase diversion of Solid Waste from landfills, reduce greenhouse gasses, convert waste into energy, and create new jobs; and WHEREAS, undertaking the Strategic Plan will require a long-term commitment of Contractor's staff, time and capital; and WHEREAS, the parties wish to continue to assure the health, safety and public welfare of City's residents and businesses by providing efficient services for recycling and the disposal of all Solid Waste generated in the City resulting in increased diversion pursuant to the terms of a long-term agreement that amends and restates the Prior Agreement; NOW, THEREFORE, in and for the mutual covenants herein and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows: 1. Operating Rights. 1.1 Contractor shall have the exclusive right to operate, and shall operate, the Transfer Station (as defined in Section 2 below) in accordance with the terms of this Agreement and all applicable federal, state and local statutes, regulations, ordinances and other laws and enforceable policies. Subject to any limits imposed by applicable law, all Solid Waste generated in City shall be delivered to the Transfer Station and Contractor shall be entitled to accept at the Transfer Station Solid Waste generated anywhere within Mendocino County. Contractor shall also have the right to accept at the Transfer Station Solid Waste generated outside of Mendocino County with City's prior written consent (which consent shall not be unreasonably withheld and may be granted by City's City Manager), provided that Contractor shall identify and keep records satisfactory to both California Department of Resources Recycling and Recover ("CalRecyle") and City, including the quantity and the jurisdiction of origin of such Solid Waste. Receipt and disposal of such solid waste shall be subject to all of the applicable provisions of this Agreement, including Contractor's obligation to indemnify and hold City harmless in any action related to the acceptance of out of County Solid Waste, and the payment, if levied, of City imposed pet' ton f~es, seeh _ ' Landfill c and h N4SWM Fee shown o. _ Etch: -.Surcharges. During the term of this Agreement, City shall not own, operate or authorize any facility that would compete with the Transfer 1 Station or Contractor's operation thereof, nor shall City issue any request for proposal for the operation of the Transfer Station by any person other than Contractor except for any period after the expiration or termination of this Agreement in accordance with its terms. Correspondingly, Owner, Contractor and any Related Entity (as defined below) shall not accept at any facility owned or operated by them Solid Waste originating from any source generated in the areas of Mendocino County described at Exhibit G, which represents the Solid Waste, as of the November 1, 2011, that is received at the Transfer Station, unless such Solid Waste has first passed through and paid Gate fees at the Transfer Station. "Related Entity" means an entity in which Contractor or Owner, any of its shareholders, partners or members, or their spouses, are owners, members, partners, or over which Owner, Contractor, their shareholders, members or partners, or their spouses, otherwise exercise any ownership or control. 1.2 To the extent permitted by applicable law, City shall take such steps as may be reasonably necessary to protect Contractor's rights under this Agreement; provided, however, that City's obligation under this Section 1.2 is subject to Contractor's agreement, upon request of City, to reimburse City's reasonable expenses, including attorneys' fees and litigation expenses, incurred in taking steps as agreed upon herein; and, provided, further, that nothing herein shall prevent Company Contractor from taking any lawful action to protect its rights hereunder. 1.3 Except as expressly provided herein, this Agreement shall supersede the Prior Agreement as of the Effective Date set forth in Section 3 below, when the Prior Agreement shall cease to have any effect (except for periods prior to such Effective Date). 2. Definitions. 2.1 "Acceptable Waste" means all Solid Waste, except Recyclables, Food Waste, Green Waste, Wood Waste, Hazardous Waste, Household Hazardous Waste and Unacceptable Waste. 2.2 "CCC" means Cold Creek Compost, Inc. 2.3 "Change in Law" means the enactment, adoption, promulgation, issuance, modification, or written adoption or change in administrative or judicial interpretation on or after the Effective Date of, any law, regulation, rule, order, judgment, decree, permit, approval or other requirement of any governmental agency (including City) having jurisdiction over this Agreement or Contractor's performance hereunder. 2.4 "Construction Debris" means used or discarded construction materials generated during the construction or renovation of a building, structure or other man-made improvement. 2.5 "Demolition Debris" means used construction materials generated during the razing or renovation of a building, structure or other man-made improvement. 2.6 "Disposal" means the permanent placing of Solid Waste in a facility legally permitted to receive it. 2.7 "Disposal Costs" means Contractor's costs to Dispose of Solid Waste at a Disposal Facility, including all tipping fees and service fees paid by Contractor to any Disposal Facility for such Disposal. Formatted: Wrap Around 2.8 "Disposal Facility" means any fully-permitted Subtitle D approved Solid Waste landfill, approved by City pursuant to Section 4.1 below, to which Contractor transports Acceptable Waste for Disposal (including, without limitation, any authorized transfer station for ultimate Disposal at such a landfill). 2.9 "Food Waste" means food that is discarded (as from a Commercial or Residential Property kitchen). 244. 2.10 "Franchised Waste Hauler" means any person that possesses a franchise, permit, license or contract from a public agency authorizing such person to collect and transport Solid Waste from generators of such Solid Waste in or subject to such agency's jurisdiction. 2.4-211 "Green Waste" means tree trimmings, grass cuttings, plants, leaves, branches and trees (not more than six (6) inches in diameter or more than four (4) feet in length) and similar materials. 2.4312 "Hazardous Waste" means all substances defined as hazardous waste, acutely hazardous waste or extremely hazardous waste by the State of California, or identified as hazardous waste by the U.S. Environmental Protection Agency, under applicable laws or regulations. 2.4-413 "Household Hazardous Waste" means Hazardous Waste that is generated at Residential Properties. 2.4-514 "Pass Through Costs" means Disposal Costs, Processing Costs and Regulatory Costs, as well as any increase above $10.00 per ton in the lease rate payable under the lease between City and Contractor (or Owner) for the Transfer Station Site and the Improvements attached hereto as Exhibit F. F -----Formatted: Normal 2.4-615 "Processing" means the act of salvaging, reprocessing, marketing and selling or reusing Recyclables, Food Waste, Green Waste and Wood Waste for the purpose of Recycling, whether directly or through one or more third parties, and shall include other means of diverting Solid Waste from landfills pursuant to the Strategic Plan. 2.4-716 "Processing Costs" means fees, if any, paid by Contractor to a Processing Facility for Processing Recyclables, Food Waste, Green Waste, Wood Waste and Solid Waste received at the Transfer Station. The amount paid by Contractor to PRS for Green Waste or Wood Waste delivered to the PRS Facility shall be as determined under that certain Agreement for the Receipt of Green and Wood Waste among PRS, UWS and SWS of even date herewith and attached hereto as Exhibit A. 2.4-817 "Processing Facility" means, with respect to Recyclables, the PRS Facility and/or any other authorized facility selected by Gon*'e° and approved 5 pursuant to Section 4.1 below, and, Formatted: Wrap Around 2 F with respect to Food Waste, Green Waste and Wood Waste and subject to Section 4.5 below, the CCC facility (as defined in Section 4.5 below), the PRS Facility, any licensed biomass conversion facility, and/or any other authorized facility selected Viand approved by City pursuant to Section 4. 1.2 and 4.5 below. 2.4-918 "PRS" means Pacific Recycling Solutions, Inc. 2.2-019 "PRS Facility" means the materials recovery and green waste facility operated by PRS, currently located at 4260 North State Street, Ukiah, California and/or 3501 Taylor Drive, Ukiah, California. 2.2420 "Recyclables" means Solid Waste which may be Recycled, including, without limitation, paper, newsprint, printed matter, pasteboard, paper containers, cardboard, glass, aluminum, PET, HDPE, and other plastics, beverage containers, compostable materials (including Food Waste, Green Waste and Wood Waste), electronic waste, wood, brick and stone in reusable size and condition, those items of Construction Debris and Demolition Debris which are described in Sections 2.4 and 2.5, appliances and automobile and light truck tires. Contractor shall report changes in Recyclables accepted at the Transfer Station to the City Manager who must approve those changes. 2.2221 "Recycle" means the process of reusing or processing Solid Waste into a form suitable for reuse consistent with the requirements of the California Integrated Waste Management Act of 1989, as amended ("AB 939"). 2.2322 "Regulatory Costs" means all regulatory and governmental fees and charges incurred by Contractor in connection with providing services under this Agreement, including, without limitation, Franchise Fees,Surcharaes which may be adopted from time to time, such as but not limited to, the City Landfill Fee and MSWMA fee, as shown on Exhibit E; payable to City-er, MSWMA or such other jurisdiction whose fee is acceptable to and approved by the City, and remains in force, pursuant to Section 1.1 above. 21423 "Segregated" means: 21423.1 As to Recyclables other than Food Waste, Green Waste and Wood Waste, Recyclables that have been separated from Solid Waste that is not Recyclables and from Food Waste, Green Waste and Wood Waste prior to delivery to the Transfer Station, and that are saleable or acceptable for Processing without further sorting. (For example, cardboard and glass that have been separated by a Self Hauler from wet garbage is Segregated.) 2.2423.2 As to any of Food Waste, Green Waste or Wood Waste, each of those types of waste that has been separated from Solid Waste that is not Recyclables and from each of Food Waste, Green Waste and Wood Waste, as applicable, prior to delivery to the Transfer Station, and that in each case are saleable or acceptable for Processing without further sorting. (For example, Food Waste that has been separated from all Solid Waste by whatever means, and Recyclables, including Green Waste and Wood Waste, is Segregated.) 2.2324 "Self Haulers" means persons delivering Acceptable Waste; or Recyclables to the Transfer Station who are not Franchised, ather Waste Haulers. Formatted: Wrap Around A a 2.2-625 "Solid Waste" means all putrescible and nonputrescible residential refuse, commercial solid waste, institutional solid waste, garbage, Food Waste, Green Waste, Wood Waste and rubbish as defined in Public Resources Code Section 40191, including, without limitation, for the purposes of this Agreement Construction Debris, Demolition Debris and Recyclables, but excluding Hazardous Waste and Household Hazardous Waste. Authority ("MSWMA") (currently $5.00 per ton), and thatremains in force, pursuant to Section 1.1 above, or any, similar.fee of any, other jurisdiction that is4cceptable to and approved by City. including_in each case, any fees or charges adopted to replace or supplement any such Surcharge or fee. 2.28 "Transfer Station" means the facility located on the Transfer Station Site. 2.29- "Transfer Station Site" means the real property commonly known as 3151 Taylor Drive, Ukiah, California, Mendocino County Assessor's Parcel No. 14-140-13, and which is depicted and described on Exhibit C attached hereto and hereby incorporated herein. 2.30 "Unacceptable Waste" means the types of Solid Waste that may not be received at the Transfer Station unless authorized by the permits issued for the operation of the Transfer Station. 2.31 "Wood Waste" means unpainted and untreated lumber and boards separated from Solid Waste, including other Recyclables. 3. Term. Subject to earlier termination in accordance with the terms of this Agreement, the term of this Agreement shall commence on January 1, 2012 (the "Effective Date") and continue for a period of fifteen (15) years through December 31, 2026, provided that Contractor shall have one (1) option to extend this Agreement and the rights granted hereunder on the terms and conditions herein for a period of five (5) years commencing January 1, 2027 and ending December 31, 2031. Notice of Contractor's exercise of such option must be given at least six (6) months prior to December 31, 2026. The option to extend hereunder may not be exercised unless Contractor is in material compliance with the terms of this Agreement at the time of exercise and on December 31, 2026. It is the parties' intention that, subject to prior termination hereunder or thereunder, the term of this Agreement be coextensive with the term of the Collection Agreement. Operations. Contractor shall provide the following operations at the Transfer Station: Formatted: Font: 11 pt Formatted: Font: 11 pt Formatted: Font: 11 pt Formatted: Font: 11 pt Formatted: Font: 11 pt Formatted: Font: 11 pt Formatted: Font: 11 pt Formatted: Font: 11 pt Formatted: Font: 11 pt Formatted: Font: 11 pt Formatted: Font: 11 pt Formatted: Font: 11 pt Formatted: Font: 11 pt Formatted: Font: 11 pt 4.1 Receipt, Transfer and Disposal of Solid Waste. Contractor shall accept, for the per ton or per yard Rate for Municipal Solid Waste ("MSW"), set forth in Exhibit D attached hereto as adjusted under Section 6 below, Acceptable Waste delivered to the Transfer Station by Franchised Waste Haulers and Self Haulers, and shall transfer or transport such Acceptable Waste to a Disposal Facility or a Formatted: Wrap Around G 2.2-726 "Strategic Waste Management Plan" means the plan attached hereto as Exhibit B which is incorporated herein by this reference or any revisions thereof approved by Company Contractor and City. Processing Facility, in accordance with the terms of this Agreement. The initial Disposal Facility shall be the Eastlake landfill, the initial Recyclables Processing Facility shall be the PRS Facility, and the initial Green and Wood Waste Processing Facility is described in Section 4.5 below. Any alternate or successor Disposal or Processing Facility to the initial Facilities approved or described in this Agreement shall be subject to City's approval as provided hereafter. 4.1.1 At least one year and three months before the expiration of the term of the disposal contract between Contractor and the existing Disposal Facility, Contractor shall begin the process of selecting a successor Disposal Facility (which may be the existing Disposal Facility), and at least seven months before such expiration, Contractor shall give City written notice identifying the proposed Disposal Facility, including its name and location, and the particulars of the disposal costs it recommends for the period of the new disposal agreement. Such notice shall include: (1) the anticipated tipping fee and other charges for Disposal at that Facility (2) a comparison of the disposal costs of the expiring disposal agreement to the new recommended disposal costs; (3) any impact the new recommended disposal costs will have on the Gate Fee (4) a justification statement, if the recommended disposal costs will increase by more than an annual CPI adjustment; (5) a list of Contractor explored disposal options not recommended, and (6) why the Contractor believes the recommended Disposal Option is best. Before giving such notice to City, Contractor has a duty under this Agreement to have vigorously explored all Disposal options reasonably available. The notice shall be accompanied by a copy of the proposed contract between Contractor and such Facility. Contractor shall also provide City with any additional information about such Disposal Facility reasonably requested by City. Contractor's use of the proposed Facility shall be subject to C4yLsthe City Council's approval, which shall not be unreasonably withheld and may be given by City' City Manager. In acting on a request for approval, the City shall consider, among other things, whether the useeest of that Facility is reasonably consistent with the Strategic Plan and available at a reasonable cost to the ratepayers considering the environmental benefits and the available alternatives; provided, however, that if the City Manage-rCouncil determines that another Disposal Facility reasonably available to Contractor will provide the same service at a lower cost, Contractor shall use that Facility. 4.1.2 Contractor shall provide City with written notice as soon as Contractor knows that it will use a Processing Facility instead of or in addition to PRS, the Scotia Facility (as defined below) or CCC. The notice shall provide the name and location of the proposed Facility, the anticipated gate fee and other charges for Processing at that Facility, and a copy of the proposed contract between Contractor and such Facility. Contractor shall also provide City with any additional information about such Processing Facility reasonably requested by City. Contractor's use of the proposed Processing Facility shall be subject to C+Pf-~-sthe City Council's approval, which shall not be unreasonably withheld and may be given b 0454 C:., nn.,.,age In acting on a request for approval, the City shall consider, among other things, whether the useeast of trsi+rg-that Facility is reasonably consistent with the Strategic Plan, available at a reasonable cost to the ratepayers considering the environmental benefits and the available alternatives, and otherwise qualifies as an Authorized Facility., The City Council may consider any other factor reasonably related to a legitimate City interest in its management of waste collection and disposal, including, but not limited to, alternative technologies and facilities, the impact on rates, past performance and regulatory history of the processing facilities under consideration, factors affecting the facilities' future performance, and the public interest. 4.1.3 In the event that any Facility described above cannot accept Solid Waste, Recyclables, Green Waste, or Food Waste Generated in City on a temporary basis due to no fault of Formatted: Not Highlight Formatted: Wrap Around Contractor, or due to events beyond the control of Contractor, such as acts of God, public emergency, strike or lockout by employees of another entity unrelated to Contractor, Contractor shall locate and use an alternate Facility for the duration of such circumstance; provided, however, that City approval in accordance with this Section 4.1 shall be required if the Facility cannot accept the applicable materials for a period of time exceeding three (3) months. 4.2 Buy-Back Recycling. Contractor shall operate a certified Beverage Container Recycling Center at the Transfer Station that will provide redemption buy-back from the public in accordance with the rules of CalRecycle, and which is open to the public during regular business hours at least six days per week. 4.3 Drop-Off Recycling. Contractor shall accept at a designated area of the Transfer Station, at no charge, Segregated Recyclables (other than Food Waste, Green Waste, Wood Waste and the types of Recyclables listed on Exhibit D as bearing a charge), from Self Haulers, and shall transfer or transport such Recyclables for Processing to a Processing Facility, in accordance with the terms of this Agreement. Contractor shall accept at a designated area of the Transfer Station, at the designated Recycling Rate set forth on Exhibit D as adjusted under Section 6 below, Segregated Recyclables of the types listed on Exhibit D as bearing a charge, from Self Haulers, and shall transfer or transport such Recyclables for Processing to a Processing Facility, in accordance with the terms of this Agreement. Contractor shall be entitled to retain all revenue it receives from the sale of such Recyclables. Any residue from the Recyclables received at the Transfer Station that cannot be processed shall be disposed of at a Disposal Facility. City may designate anaM entity other than Gantf e+ef. including MSWMA, to rve rp ovide hazardous waste load-check and refrigerant removal at no cost to Contractor or the general public. 4.4 Household Hazardous Waste Recycling. Contractor shall, at the applicable Rate set forth on Exhibit D as adjusted under Section 6 below, accept from Self Haulers who are residents of City, oil filters, used motor oil (up to five gallons per customer), antifreeze and automobile and boat batteries, and shall transfer or transport such items for Processing to a Processing Facility, in accordance with the terms of this Agreement. Contractor shall be entitled to retain all revenue it receives from the sale of such items. Any residue from such items that cannot be Processed shall be disposed in accordance with all legal requirements at a City approved facility fully licensed to accept such materials. 4.5 Green Waste and Wood Waste. Contractor shall accept at a designated area of the Transfer Station, at the applicable Green Waste Rates specified in Exhibit D as adjusted under Section 6 below, Segregated Green Waste and Segregated Wood Waste from Self Haulers, and shall transfer or transport all such Green Waste and Wood Waste to the Scotia biomass conversion facility (the "Scotia Facility") or a Processing Facility for Processing, in accordance with the terms of this Agreement; provided, however, that, notwithstanding any other provision in this Agreement, Contractor shall arrange for delivery of an average of 400 tons per calendar month, subject to seasonal adjustments affecting the amount of Green Waste available, of Green Waste (including Green Waste generated in City), un-ground but presorted, to the CCC facility so long as (a) CCC is licensed to accept Green Waste from City, (b) CCC is in full compliance with its license, (c) CCC is the only licensed composing facility in Mendocino County that is licensed to accept and is capable of accepting the full range of inputs accepted by CCC as of April 1, 2008, (d) CCC charges not more than $32.00 per ton for the first 200 tons of such Green Waste in the aggregate delivered per calendar month (which repFesents *themay represent more than the actual Green Waste collected curbside in City by UWS) and correspondingly CCC will accept at no charge for any tons in excess of 200 delivered in such month (which represents Green Waste from sources Formatted: Wrap Around other than City), and (e) CCC continues to accept sheet rock from Contractor, UWS and PRS at no charge; and, provided, further, that Contractor's obligation shall be deemed satisfied by Green Waste arranged to be delivered by UWS to the CCC facility pursuant to Section 5.11(c) of the Collection Agreement. Any residue from the Green Waste or Wood Waste received at the Transfer Station that cannot be Processed shall be disposed of at a Disposal Facility. 4.6 Food Waste. Upon commencement of a food waste program under the Collection Agreement, Contractor shall accept at a designated area of the Transfer Station, at the applicable Food Waste Rates submitted to and approved by City, Segregated Food Waste, and shall transfer or transport all such Food Waste to a Processing Facility for Processing, in accordance with the terms of this Agreement. 4.7 Reuse Facility. Contractor shall provide a reuse area at the Transfer Station where Contractor shall make available for give-away or sale salvageable items such as doors, windows, furniture, appliances, toys and tools brought to the Transfer Station by Self Haulers. Contractor shall be entitled to retain all revenues from the sale of such items. 4.8 Unacceptable Waste Prohibited. Contractor shall not knowingly accept Unacceptable Waste at the Transfer Station, except for those recyclable Household Hazardous Wastes described in Section 4.4 above. Contractor shall continuously inspect customer vehicles and the tipping floor for Unacceptable Waste. Unacceptable Waste shall be refused and returned to the customer, unless the Unacceptable Waste is already dumped on the tipping floor and the vehicle of origin is unknown. Contractor shall accept title to any Unacceptable Waste received at the Transfer Station and not so returned, and shall safely segregate, contain, store and dispose of it in accordance with applicable law. 4.9 Refusal of Waste. When Contractor refuses Unacceptable Waste that is brought to the Transfer Station by a customer, Contractor will inform the customer of the most convenient and economical legal option available for disposal of that Waste. Written information on such disposal options will be kept available at all times in the scale house, and a log shall be maintained to detail such refusal of Waste acceptance. 4.10 Title to Waste. Contractor shall accept ownership and title to all Acceptable Waste, Recyclables, Food Waste, Green Waste and Wood Waste at the time of unloading of such materials at the Transfer Station. 4.11 Hours of Operation. Contractor will receive Acceptable Waste, Recyclables, Food Waste, Green Waste and Wood Waste at the Transfer Station only between the hours of 87 a_m_ and_4_ - Formatted: Not Highlight p.m. en eael;ylonday through Friday for Franchised Waste Haulers and from 7:30 a.m. to 4 p.m. Monday Formatted: Not Highlight through Saturday for Self Haulers throughout the year, except for the following holidays: New Year's Day, Memorial Day, July 4 h, Labor Day, Thanksgiving Day and Christmas Day; provided, however, that if New Year's Day, July 4`h or Christmas Day falls on a Sunday, Contractor may with the consent of City's City Manager's observe the holiday on the Saturday before the holidayt and, provided, further, Formatted: Not Highlight - - that Franchised Waste Haulers may deliver to the Transfer Station between 6 a.m. and 4 p.m. on the day after any such holiday, Within this schedule, Contractor may specify different hours for Franchised Waste Haulers and Self Haulers. Any such changes shall be reported to the City no later than thirty (30) days before the effective date of the change and shall be revised at the direction of the City Council. Such Formatted: Wrap Around R F hours are subject to change in accordance with changes to Contractor's permits for the Transfer Station. 4.12 Additional Services. Contractor shall provide additional services upon request of City or upon the proposal of Contractor as approved by City subject, if the costs incurred by Contractor to provide such services increase, to the establishment by mutual written agreement of a reasonable service fee therefor. 4.13. Permits and Licenses. Contractor shall obtain and maintain throughout the term of this Agreement all permits, licenses and approvals required for Contractor to perform the services described herein, including, without limitation, an operating permit from the County of Mendocino. City shall cooperate with Contractor in connection with such permits, licenses and approvals, and shall renew all such permits, licenses and approvals issued by City, provided that Contractor is not in material breach of this Agreement and provided Contractor shall have fulfilled all requirements for the renewal of such permits, licenses and approvals. Contractor shall provide City's City Manager or his or her designee with copies of all permits or amendments or renewals thereof which are not issued by City. 4.14 Applicable Law. Contractor shall perform all its obligations under this Agreement in accordance with all applicable laws, including, without limitation, the permits, licenses and approvals described in Section 4.12 above, and shall be solely liable for all fines and penalties that may be imposed on Contractor for violations thereof. 5. Landfill Fee: and Other Surcharges. Within forty-five (45) days after the end of each calendar month during the term of this Agreement, Contractor shall remit to City as a landfill fee a sum of money equal to Two Dollars ($2.00) per ton (or the equivalent amount for a cubic yard), or such other amount approved by City, of Acceptable Waste received by Contractor at the Transfer Station:, and an.. othe Surchargeapproved by and acceptable to the City still in force shall be remitted to an entity, as directed by the City, within ninety (90) days after the end of each calendar month. If tha ~e isthese fees are not paid on or before such `aft aydue date, a late payment fee in an amount equal to eighty-three one- hundredths of a percent (0.83%) of the amount owing per month will be charged for each thirty (30) day period the =1°anehise fee remains unpaid. Each monthly remittance to City shall be accompanied by a statement detailing the Acceptable Waste received at the Transfer Station for the period covered. Gate Rate and Other Service Fees. 6.1 Establishment. Exhibit D sets forth the gate rate and other service fees for services provided by Contractor under this Agreement (collectively, the "Rates") effective as of the Effective Date. Contractor shall not charge lower Rates to any Franchised Waste Hauler or Self Hauler serving of from areas outside the City. Such Rates shall be subject to review and revision as set forth in Sections 6.2, 6.3-, 6.4 and 6.5 below. Contractor shall not charge any amount in excess of the approved Rates for services required by or permitted under this Agreement. 6.2 Modification Based on Consumer Price Index, Fuel Index and Certain Pass Through Costs. (a) Per Ton MSW Rate.. The per ton Municipal Solid Waste ("MSW") Rate shall be adjusted January 1st every year, beginning January 1, 2013 ("Rate Adjustment Date") to reflect changes in the CPI, the Fuel Index and certain Pass Through Costs by an amount determined in accordance with the Transfer Station Rate Calculation attached hereto as Exhibit E (the "Calculation"). Formatted: Font: 11 pt, No underline Formatted: Font: 11 pt, No underline Formatted: Font: 11 pt, No underline Formatted: Font: 11 pt, No underline Formatted: Font: 11 pt, No underline Formatted: Font: 11 pt, No underline Formatted: Font: 11 pt, No underline Formatted: No underline Formatted: Wrap Around (b) Definitions. For purposes of Rate adjustments pursuant to this Section 6.2 and the Calculation, the following terms shall have the following meanings. (i) "Base Fuel Cost" means Contractor's actual costs for diesel and other fuels used in performing services under this Agreement for the year ended December 31, 2010 or $152,533.47. (ii) "Base Revenue" means Contractor's total revenue received from Franchised Haulers and Self Haulers during the Comparison Year, excluding revenue from the sale of scrap metal, Recyclables purchased under the buy-back program, and compost. (iii) "Base Year" means the year ended June 30°i one year prior to June 30`h of the Comparison Year. (iv) "Comparison Year" means the year ended June 30`x' immediately prior to the relevant Rate Adjustment Date. (v) "Contractor Rate" means the per ton MS W Rate minus the per ton Franchise Fees. (vi) "CPI" means the Consumer Price Index, All Urban Consumers, U.S. City Average, All Items (1982-1984=100), published by the United States Department of Labor, Bureau of Labor Statistics. - Formatted: Font: (Default) Times New Roman _ (vii) "Disposal Fees - Garbage" means the actual Disposal Costs paid by - Formatted: Font: (Default) Times New Roman Contractor for Solid Waste delivered by Contractor to the Disposal Facility during the Comparison Year. (viii) "Disposal Fees - Processing" means the actual Processing Costs paid by Contractor to CCC, PRS or any other Authorized Facility for Recyclables, Green Waste and Food waste delivered by Contractor to the CCC facility, the PRS Facility or such Authorized Facility, respectively, during the Comparison Year. (ix) "Fuel Costs" means Contractor's actual costs for diesel and other fuels used in performing services under this Agreement during the Comparison Year. (x) "Fuel Index" means the California No.2 Diesel Retail Sales by all Sellers A _ Formatted: Font. (Default) Times New Roman - (Dollars Per Gallon) published by the U. S. Energy Information Administration. (xi) "Operating Costs" means all of Contractor's costs to operate the Transfer Station under this Agreement, including, without limitation, labor costs, vehicle and vehicle-related costs, maintenance, insurance and transportation costs, but excluding Fuel Costs, Pass Through Costs and the costs of purchasing scrap metal, Recyclables purchased under the buy-back program, and compost (including sales taxes). (c) Rules. For purposes of Rate adjustments pursuant to this Section 6.2 and the Calculation, the following rules shall apply. (i) "CPI Change" shall be calculated as one hundred percent (100%) of the percentage increase or decrease, if any, in the CPI during the Comparison Year, using the CPI published for June of such Year as compared with the CPI published for June of the Base Year. (ii) "Fuel Index Change" shall be calculated as one hundred percent (1009/6) of the percentage increase or decrease, if any, in the Fuel Index from June of the Base Year through June of the Comparison Year; provided, however, that, notwithstanding Section 6.2(b)(iii) above, "Base Year" for purposes of the Fuel Index Change shall mean the year ended June 30, 2010; and, provided, further, that the Fuel Index Change adjustment (i.e., Fuel Index Change multiplied by Base Fuel Cost) for any Rate Adjustment Date shall be calculated after removal of such adjustment for the prior Rate Adjustment Date. (iii) The Adjustments for destination charges and Disposal Fees with respect to the use of the Eastlake landfill that appear in the Calculation are not recurring. (iv) Rate adjustments for changes in Franchise Fees that take effect on a date 10 Formatted: Wrap Around other than January I", as well as changes in other Pass Through Costs, will be determined under Section 6.3 below and not under this Section 6.2. (v) If City elects to purchase the Transfer Station Site and the Improvements on December 31, 2016 pursuant to Section 12 below, the cost entitled "Construction/Lease $2.36/ton" in the Calculation will be increased annually commencing January 1, 2018 by one hundred percent (100%) of the percentage increase or decrease, if any, in the CPI during the Comparison Year, using the CPI published for June of such Year as compared with the CPI published for June of the Base Year. (vii) As set forth in the Calculation, each adjustment in the per ton MSW Rate pursuant to this Section 6.2 shall equal the percentage adjustment in the Contractor Rate plus the per ton Franchise Fees. (d) Per Yard MSW and Minimum MSW Rates. Each of the per yard MSW Rate, minimum MSW Rate and per can MSW Rate shall be adjusted January Ist every year (beginning January 1, 2013), as follows: the per yard MSW Rate shall equal 24.05% of the Contractor Rate, plus the per ton Franchise Fees divided by 5.54; the minimum MSW Rate shall equal the per yard MSW Rate divided by two (2); and the per can MSW Rate shall equal the minimum MSW Rate divided by three (3). All rates in this Section 6.2(d) shall be rounded to the nearest five cents. (e) All Other Rates. Each of the Rates set forth on Exhibit D other than the MS W Rates shall be adjusted January I st every year (beginning January I, 2013) by an amount equal to the percentage increase or decrease, if any, in the Contractor Rate (i.e., determined before adjusting for Franchise Fees) . All rates in this Section 6.2(e) shall be rounded to the nearest five cents. (f) Procedure. The procedure for Rate adjustments under this Section 6.2 shall be as follows: (i) Not later than August 15th of each year, Contractor shall file with the City Manager a written notice of intention to adjust each of the then current Rates effective as of January 1 st of the next year in accordance with Section 6.2(a) through (e) above. (ii) Within sixty (60) days of the filing of the notice of intention, the City Manager shall review the notice and either confirm that the proposed Rates are within the limit of Section 6.2 above or establish by mutual agreement with Contractor any necessary changes to the proposed Rates to make such confirmation. (iii) Upen Not later than October 20th, the City Manager shall prempfly-inform the City Council in writing of the newhis or her determination re arding the proposed new Rates and the City Council shall be entitled to review and confirm that the proposed Rates are within the limit of Section 6.2 above or establish by mutual agreement with Contractor any necessary changes to the proposed Rates to make such confirmation, not later than November 20thdete ed in aeoerdanee with this Section 6.2 with. A-any new Rates teshall become effective on the following January provided that Contractor shall post notice of the revised Rates at the Transfer - Station not later than December ls`. (iv) In the event that the CPI or the Fuel Index described in Section 6.2 above shall be discontinued or materially modified during the term of this Agreement, the parties shall together select a replacement index and/or otherwise change Section 6.2 above so as to replicate, as nearly as possible, the mutual intention of the parties to rely on the results of either index described in Section 6.2 as in effect on the date hereof. 6.3 Modification Based on Changes in Pass Through Costs. In addition to adjustments under Section 6.2 above, each Rate shall be adjusted to reflect changes in Pass Through Costs that are not the subject of Rate adjustments pursuant to Section 6.2 above, as follows. Using the section of the Calculation entitled "Revenue Base," each Rate shall be increased by an amount equal to the increase in Formatted: Superscript Formatted: Superscript Formatted: Wrap Around applicable Pass Through Costs, and decreased by an amount equal to the decrease in applicable Pass Through Costs, in each case so as to cause such Rate to compensate for such change in Pass Through Costs as of the date such change becomes effective and either payable by or a benefit to Contractor, and taking into account the increase or decrease in Franchise Fees payable in respect of such change. Changes in Pass Through Costs resulting from a change in Disposal Facilities or Processing Facilities shall cause an increase in Rates as provided herein only if Contractor has complied with Sections 4. 1.1 and 4.1.2 and City has approved the successor or alternate Facilities in accordance with such Sections. 6.4 Five Year Review. Once every five (5) years (beginning no later than April 2, 2016 for purposes of adjusting the Rates effective January 1, 2017), City shall conduct a review for the purpose of determining whether or not the automatic adjustments provided in Sections 6.2, 6.3 and 6.5 have adequately adjusted the Rates to cover the actual increase or decrease in the Contractor's reasonable operating costs or have exceeded those costs and whether the Rates remains fair to the ratepayer and the Contractor. Depending on the results of that review the City may approve an increase or decrease in the Rates. City shall complete each such review and adjustment, if any, at least three months (3) prior to the beginning of such year (by September 30, 2016 in the case of the first such review), and Contractor shall cooperate with such review. In conducting each such review, City shall consider the following information: financial records of C-orapanyContractor (including operating expenses and revenues and Disposal, Processing, Regulatory and other costs of Contractor, and Contractor revenues), the factors described in Section 6.5 below, and rates charged for comparable services at similar facilities. Increases or decreases in the Rates pursuant to this Section 6.4 shall be subject to the notice and public hearing requirements in the Ukiah City Code, Division 4, Chapter 6, Article 1, commencing with Section 3950. The City may conduct such investigation as it deems necessary to perform this review and ,"mpanyContractor shall cooperate with such investigation, which may include the City's inspection and copying of EempanyContractor records and review and/or audit of Gonipany'sContractor's financial records by a City retained CPA, the costs of which shall be reimbursed to City from Base Revenue but treated as a pPass .tThrough eCost for rate setting purposes. _ 6. 5 Modification Based on Extraordinary Items. In addition to adjustments under Sections 6.2, 6.3, and 6.4 above, Contractor may request an increase in the Rates if Contractor's costs increase or its revenues decrease solely as the result of extraordinary circumstances beyond its control that could not have been reasonably anticipated by Contractor (such as a Change in Law) and if the increase in costs or decrease in revenues unavoidably adversely affects Contractor's opportunity to operate at a reasonable profit. Contractor shall have the burden of producing evidence satisfactory to City demonstrating its need for a rate increase prior to the regular Five Year Review pursuant to Section 6.4 above, including, but not limited to, reviewedReviewed or auditedAudited financial statements of CempanyContractor, if requested by City. The City Council shall consider the request pursuant to the notice and public hearing procedures in Ukiah City Code, Division 4, Chapter 6, Article 1, commencing with Section 3950. 6.6 Billing. Contractor shall charge and collect from all customers at the Transfer Station upon receipt of materials, or bill such customers, for all services hereunder. Interest of one percent (1%) per month or the highest rate permitted under applicable law, whichever is less, shall be applied to any past due amounts until paid in full. Amounts shall be past due if not paid within thirty (30) days of billing. Contractor shall have the right to refuse service to any customer that is more than sixty (60) days delinquent on his, her or its account. Provisions Applicable to Equipment and Personnel. 12 Formatted: Font: 11 pt Formatted: Font: 11 pt Formatted: Font: 11 pt Formatted: Font: 11 pt Formatted: Font: 11 pt Formatted: Wrap Around 7.1 Equipment. Contractor shall provide all equipment necessary to perform the services described in the Agreement, sufficient in number and capacity to efficiently perform the work required by this Agreement. All equipment used at the Transfer Station shall be maintained in good working condition and be suitable for use at the facility without causing unreasonable wear and tear or damage to the improvements constructed on the Site. The equipment shall comply with all applicable legal requirements. Contractor shall keep the outside of the truck bodies free from dirt and filth, and shall clean the inside of the trucks in a sanitary manner on a regular basis. Suitable measures shall be taken to prevent refuse from falling into public streets or places. Contractor shall keep all trucks freshly painted in a uniform manner, and the firm name or logo, telephone number, and truck number of each truck shall appear in a conspicuous manner. Contractor shall keep all equipment in good maintenance and repair, regularly inspect same, and keep accurate records of all maintenance. 7.2 Facility Maintenance. Contractor shall maintain the Site and the tipping floor in an orderly condition with proper signage to direct users to the appropriate locations on the Site to conduct their business. All refuse deposited on the tipping floor shall be removed within 24 hours of its deposit. Contractor shall employ reasonable measures to control noise, odors, litter and other nuisance conditions. Contractor will be responsible for all repair, maintenance and replacement of the Transfer Station in order to keep it in sound working order, including, without limitation, the tipping floor surface, driveways, gates, fences, electrical distribution systems, ventilation and heating, fire sprinklers, floor drains, walls, doors, roof, restrooms, fixed equipment and landscaping. Contractor will keep the tipping floor free of major cracks, holes and breaks, and will keep any tractor not equipped with rubber tires or tracks from coming in contact with the tipping floor or driveways. All repairs made by Contractor will be with an identical article or material or an equal approved by City. 7.3 Transport of Materials. Contractor shall not allow Solid Waste, Recyclables, Green Waste or Wood Waste to blow or fall from any vehicle used for transportation. Contractor shall clean up any and all spills, including oil and debris on the streets, resulting from its operations. Should Contractor fail to promptly clean up such spills resulting from its operations after notice from City, Contractor shall be liable to City for all reasonable costs incurred by City in doing so. 7.4 Staffing. Contractor shall employ sufficient staff to provide service in a safe manner at the Transfer Station, and to meet its obligations under this Agreement, including, without limitation, a Transfer Station Manager. All personnel shall be qualified to perform their assigned tasks and will possess the required licenses, permits or training for the tasks they perform. Contractor shall provide suitable operational and safety training for all of its employees who utilize or operate vehicles or equipment at or in connection with the operation of the Transfer Station. Contractor shall use its best efforts to assure that all employees present a neat appearance, conduct themselves in a courteous manner, and perform the work as quietly as possible. 7.5 Subcontractors. Contractor shall not subcontract any of the services under this Agreement without the prior written consent of City. 8. Records and Reports. 8.1 Contractor shall keep and maintain accurate books and records clearly showing its revenues and expenses in connection with the operations provided for in this Agreement. Contractor will Formatted: Wrap Around 13 ~ also keep and preserve records of all loads of Acceptable Waste, Recyclables, Food Waste, Green Waste, Wood Waste and Household Hazardous Waste received at the Transfer Station, and will report to City every three (3) months during the term hereof the total quantities and payments received. Contractor shall provide written notice to City of the location of its records and any change in the location. 8.2 City's designated representative shall be allowed access to the Transfer Station Site at all times when the Transfer Station is open, and upon prior written notice to Contractor shall be allowed to inspect and copy any and all records of Contractor containing information about the operation of the Transfer Station for purposes of audit or to verify the recordkeeping procedures of Contractor. City's designated representative shall also be allowed access to the Site during non-operating hours upon prior written notice to the Transfer Station Manager. Contractor shall fully cooperate with City in reviewing or investigating information in Contractor's records or pertaining to Transfer Station operations. 9. Hold Harmless and Insurance. 9.1 Contractor shall indemnify and hold harmless City, its City Council, boards, commissions, officers, agents, representatives and employees from any and all actions, claims or damages brought for or on account of injuries to or death of any person or damage to property of all kinds resulting from or arising out of the operations of Contractor, its officers, agents, employees or servants pursuant to this Agreement. The duty of Contractor to indemnify and hold harmless shall include the duty to defend as set forth in California Civil Code Section 2778. 9.2 Contractor shall have in effect during the term of this Agreement, workers' compensation and employer liability insurance providing full statutory coverage. 9.3 Contractor shall take out and maintain during the term of this Agreement, liability insurance for the following types and minimum amounts: (a) General liability, including comprehensive form, premises operations, products/completed operations, hazard, contractual insurance, broad form property damage, independent contractors and personal liability, with limits for bodily and property damage combined of $500,000 each occurrence and $500,000 aggregate. (b) Automobile liability, including comprehensive form, owned, hired and non-owned, with a limit of $1,000,000 for bodily injury and property damage combined. (c) Excess liability, umbrella form, with a limit for bodily injury and property damage combined of $5,000,000 each occurrence and $5,000,000 aggregate. (d) Pollution and remediation liability with limits in an amount of not less than one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) annual aggregate insuring against loss, the cost of remediation and legal defense as a result of pollution conditions arising out of the collision, upset or overturn of CompanyContractor vehicles in conjunction with this Agreement. (e) Broad form fire insurance approved by City, jointly in the names of Contractor and City, covering not less than the full replacement cost of all improvements on the Transfer Station Site. In the event of damage to any portion of the Transfer Station, Contractor shall rebuild, repair or otherwise reinstate the damaged improvements in good and substantial manner, with such reconstruction to commence within ninety (90) days after the damage occurs. Insurance is to be placed with admitted California insurers with an A.M. Best's rating of no less 14 Formatted: Wrap Around than A- for financial strength, AA for long-term credit rating and AMB-1 for short-term credit rating. Insurance certificates evidencing the required coverage shall be filed with City and shall be subject to approval by the City Attorney. City, its City Council, boards, commissions, officers, agents and employees shall be named as additional insureds on any such policies of insurance which shall also contain a provision that the insurance afforded thereby shall be primary. No such policy shall be cancelled or modified except upon thirty (30) days' prior written notice to City. 9.4 Contractor shall post a $250,000 performance bond or financial instrument reasonably acceptable to the City Manager as security for Contractor's faithful performance of each and every term, covenant and condition of this Agreement to be performed by Contractor, provided that the cost of such bond or other instrument shall be included in the Operating Cost Component. 10. Remedies upon Default. 10.1 Contractor shall be deemed in default of this Agreement in the event Contractor defaults in the performance of any of the duties to be performed by it under the terms of this Agreement and fails to cure the breach as further provided in this Section 10.1. City shall give Contractor written notice, either by mail or by personal service, setting forth the default. Contractor shall correct such default within thirty (30) days after service of such notice (within seven (7) days if City determines that the public health or safety is at risk) unless the default cannot, by its nature, be cured within said period, in which case the cure period shall be extended for such additional time as is reasonably necessary to effect a cure, provided that Contractor shall commence efforts to effect a cure as soon as practicable and shall diligently pursue the cure.. If CompanyContractor commits three or more breaches of material provisions of this Agreement within an eighteen (18) month period, whether cured or not, the CempanyContractor shall be deemed to have committed "Multiple Breaches." 10.2 In the event Contractor's default described in Section 10.1 is of a material provision of this Agreement and is not cured as set forth in Section 10. 1, or if Contractor has committed Multiple Breaches (defined to mean three or more defaults of material provisions of this Agreement within an eighteen (18) month period, whether cured or not) ("Material Default"), City shall have the following remedies: 10.2.1 Liquidated Damages. The parties acknowledge that City will incur damages as a result of a Material Default, and that such Material Default may not warrant termination of this Agreement. The parties agree that as of the time of the execution of this Agreement, it is impractical, if not impossible, to reasonably ascertain the extent of damages which shall be incurred by City as a result of a Material Default. The factors relating to the impracticability of ascertaining damages include, but are not limited to, the fact that: (i) substantial damage results to members of the public who are denied services or denied quality or reliable service; (ii) such breaches cause inconvenience, anxiety, frustration, and deprivation of the benefits of the Agreement to individual members of the general public for whose benefit this Agreement exists, in subjective ways and in varying degrees of intensity which are incapable of measurement in precise monetary terms; (iii) that exclusive services might be available at substantially lower costs than alternative services and the monetary loss resulting from denial of services or denial of quality or reliable services is impossible to calculate in precise monetary terms; and (iv) the termination of this Agreement for such breaches, and other remedies are, at best, a means of future correction and not remedies which make the public whole for past breaches. Liquidated damages shall be City's exclusive damages remedy for any individual Material Default which does not result in termination of this 15 __(Formatted: Wrap Around t ' Agreement by City. The amount of liquidated damages is $1,000 for each day the Material Default continues after Contractor fails to cure until it is either cured or City terminates this Agreement. 10.2.2 Franchise Termination. Without further notice and without suit or other proceedings, City may cancel and annul the rights and privileges of this Agreement upon a Material Default. Nothing in this Section shall prohibit the parties from meeting to discuss ways to resolve the issue. In the event of termination of this Agreement for Material Default, City shall have the right forthwith to grant a franchise to another person or to take possession of the trucks and other equipment of Contractor used to perform work under this Agreement. City shall have the right to retain possession of the trucks and other equipment for up to one (1) years after such termination and City shall pay Contractor the reasonable rental value of such trucks and other equipment, and keep them in good maintenance and repair, during the time the same are used by City. City shall also have access to Contractor's records for the purpose of billing customers during the period City is providing the services described in this Agreement, and shall retain all fees collected for such services. Upon termination of this Agreement for any reason, Contractor shall have the obligation to sell to City and City shall have the option to purchase the equipment used by Contractor to perform its obligations under this Agreement in operating the Transfer Station and transporting Solid Waste to Disposal and Processing Facilities and other markets (the "equipment"). Such option shall be exercised by written notice to Contractor at least six (6) months prior to the termination date, unless the Agreement is terminated based on a Material Breach, in which event notice of the election must be given within sixty (60) days after the termination date. The purchase price that City shall pay Contractor for the equipment shall be its cost less depreciation to the date of purchase calculated on a straight-line basis over its estimated useful life as shown on the books of Contractor. 10.2.3 Other Remedies. Upon termination of this Agreement based on a Material Default, City shall have all other remedies in law or equity for such Material Default. 10.3 If a dispute arises between City and Contractor regarding fees or any other term or provision of this Agreement, the parties agree to meet and confer in good faith to resolve the dispute. Either party may request to meet and confer by written notice to the other party. Alternatively, the parties may agree to participate in non-binding mediation. If the dispute is not resolved within thirty (30) days after the written request to meet and confer has been given or after the parties have agreed to non-binding mediation, the matter, other than an action seeking specific performance or other equitable relief, damages of Twenty Five Thousand Dollars ($25,000) or less, or indemnification or insurance coverage pursuant to Section 9, shall be submitted to non-binding arbitration in accordance with Title 9 of the California Code of Civil Procedure, commencing with Section 1280, before a single neutral arbitrator ("Arbitrator") in the Mendocino County. The Arbitrator shall be an attorney with at least ten (10) years experience or a retired judge (or a person having comparable qualifications) and shall be mutually agreed upon by the parties. If the parties are unable to agree on an Arbitrator, the Arbitrator shall be appointed by the superior court in accordance with Cal. Code Civ. Proc. § 1281.6. The fees and expenses of the Arbitrator shall be borne equally by the parties. In the event such non-binding arbitration does not resolve the matter and in any other dispute that results in any court action, the parties waive any right to a jury trial and agree that any such action shall be 16 Formatted: Wrap Around filed in the federal or state courts in and for Mendocino County, each party hereby consenting to the jurisdiction of and venue in such courts, the matter shall be governed by the internal laws of the State of California (irrespective of choice of law principles), and the prevailing party shall be entitled to recover its reasonable attorneys' fees, costs and disbursements incurred in such action from the non-prevailing party. 10.4 If Contractor shall at any time during the term of this Agreement or any extension thereof, become insolvent, or if proceedings in bankruptcy shall be instituted by or against Contractor, or if Contractor shall be adjudged bankrupt or insolvent by any Court, or if a receiver or trustee in bankruptcy or a receiver of any property by Contractor shall be appointed in any suit or proceeding brought by or against Contractor, or if Contractor shall make an assignment for the benefit of creditors, then and in each and every such case, and provided that such proceedings, adjudication, appointment or assignment, as the case may be, continue in effect for ninety (90) days without being vacated, removed or withdrawn, this Agreement shall immediately cease and come to an end, and the rights and privileges granted shall immediately be cancelled and annulled without notice or action required on behalf of City. 10.5 Notwithstanding any other provision herein, no default, delay or failure to perform on the part of either party shall be considered a breach hereunder if such default, delay or failure to perform is due to causes beyond such party's control, including, but not limited to, riots, civil disturbances, actions or inactions of governmental authorities, epidemic, war, embargoes, severe weather, fire, earthquake, acts of God, defaults by the other party or defaults by carriers. In the event of any such default, delay or failure to perform, any dates or times by which the affected party otherwise is scheduled to perform shall be extended for a period of time equal in duration to the additional time required because of the excused default, delay or failure to perform. 11. Assignment. Contractor shall not directly or indirectly, voluntarily or involuntarily assign, mortgage, pledge or encumber any interest in all or a part of this Agreement without the prior written consent of City. The City Council shall have the right to determine in its sole discretion whether to approve, conditionally approve or deny any request by Contractor for approval under this Section. Any action requiring City Council approval under this Section that occurs without such approval shall give City the right to terminate this Agreement without prior notice to Contractor or its successors or assigns. For purposes of this Section, any transaction involving the transfer, sale or exchange of stock which results in a change in majority control of Contractor from its owners as of the date hereof (excluding transfers between such owners and transfers by any such owners to revocable living trusts for the benefit of their families) shall be an assignment subject to City review and approval. 12. City's Options to Purchase Site, Improvements and Equipment. 12.1 City's Options to Purchase Site and Improvements. On December 31, 2016, Owner and Contractor shall have the obligation to sell and the City shall have the option to purchase from Owner both the Transfer Station Site and all the improvements on the Transfer Station Site (the "Improvements") for an aggregate purchase price of One Dollar ($1.00). City shall be deemed to have exercised its option to purchase the Transfer Station Site and the Improvements, unless it has given Contractor written notice prior to December 31, 2016 that it has elected not to exercise the option. Title shall transfer to City within thirty (30) days after December 31, 2016. The purchase shall be on a then "as-is" basis, and otherwise on commercially reasonable terms then applicable to the purchase and sale of real property, except that Owner shall indemnify City against any cost or liability arising from hazardous or toxic waste Formatted: Wrap Around 17 < contamination on the Transfer Station Site which occurred before escrow closes on City's purchase of the Transfer Station Site. At closing, Owner shall convey to City clear, unencumbered fee title to the Transfer Station Site and City shall enter into a lease for the Transfer Station Site and the Improvements with either O;er or Contractor (as they shall decide)-in the form attached hereto as Exhibit F. Owner or Contractor's failure to co-operate in City's purchase of the Transfer Station Site and Improvements shall be a Material Default. 12.2 Prior Termination. If this Agreement is terminated before December 31, 2016 for any reason, City shall have the option to do all, but not part, of the following: (a) purchase or lease from Owner the Transfer Station Site pursuant to Sections 13.1 or 13.2, (b) purchase from Owner the Improvements pursuant to Section 13.3, and (c) purchase from Contractor all the Equipment pursuant to Section 10.2.2. City's option under this Section 12.2 shall be exercised by written notice to Owner and Contractor given within sixty (60) days before the termination date, unless the Agreement is terminated based on a Material Breach, in which event notice of the election must be given within sixty (60) days after the termination date. 13. Purchase or Lease of Site and Purchase of Improvements. 13.1 Purchase of Site. If City elects to purchase the Transfer Station Site in accordance with Section 12.2 above, Owner shall sell City the Transfer Station Site for a purchase price equal to the lesser of (a) $487,000 increased by the percentage increase in the CPI between November 7, 2001 and the date of termination of this Agreement, or (b) the then actual fair market value of the Transfer Station Site; provided, however, that the purchase price shall be One Dollar ($1.00) if the closing of the purchase occurs after September 30, 2016. The purchase shall be on a then "as-is" basis, and otherwise on commercially reasonable terms then applicable to the purchase and sale of real property, except that Owner shall indemnify City against any cost or liability arising from hazardous or toxic waste contamination on the Transfer Station Site which occurred before escrow closes on City's purchase of the Transfer Station Site. At closing, Owner shall convey to City clear, unencumbered fee title to the Transfer Station Site. 13.2 Lease of Site. If City elects to lease the Transfer Station Site in accordance with Section 12.2 above, City's lease shall commence on January 1, 2017 or thirty (30) days after the notice of exercise in the case of termination for Material Default, and expire ten (10) years thereafter. Rent under the lease shall equal the then fair market lease value of the Transfer Station Site (excluding any value attributable to the Improvements) and the lease shall otherwise be on commercially reasonable terms then applicable to the ground lease of real property. If City and Owner are unable to agree on the fair market lease value, they shall select and share the cost of an appraiser to determine such value. If they cannot agree on a single appraiser, each may obtain an appraisal of such value from a qualified appraiser of its choice. If the separate appraisals are within ten percent (10%) of each other, fair market lease value shall be the average of the two appraisals. If the appraisals differ by more than ten percent (10%), the two appraisers shall select a third appraiser to review the appraisal reports and determine which report represents the fairest appraisal. The appraisal selected by the third appraiser shall constitute the fair market lease value of the Transfer Station Site. The parties shall each bear the expense of their separately selected appraisers and share equally the cost of the third appraiser. 13.3 Purchase of Improvements. If City elects to purchase the Improvements in accordance with Section 12.2 above, the purchase price that City shall pay Owner for the Improvements shall be One 18 Formatted: Wrap Around Dollar ($1.00) 14. Waiver. The waiver by any party of any breach or violation of any term or condition of this Agreement or of any provision of law by the other party must be in writing signed by the party to be charged, and shall not be deemed to be a waiver of the term, condition or provision of law, or of any subsequent breach or violation of the same or any other term, condition or provision of law. The acceptance by City of any 4anehise eeSurcharae or other fee or other monies which may become due hereunder to City shall not be deemed to be a waiver of any preceding breach or violation by Contractor. 15. Administration. The administration and enforcement of this Agreement shall be the responsibility of the City Manager or a designated representative of that office. This section is not intended to indicate or suggest the City Manager has the authority to grant, amend, or revoke the rights referenced herein or to prevent the City Manager from seeking approval from the City Council for any decision the City Manager is required or authorized to make hereunder. 16. Independent Contractor. Contractor, its employees and agents are independent contractors and not employees or agents of City. 17. Notices. Whenever notice or a document is required or permitted to be served or given hereunder, it shall be deemed given or served, when received if delivered by fax or email (with acknowledgment of receipt), certified U.S. Mail, overnight courier, such as UPS or Federal Express, or 48 hours after deposit in the U.S. Mail with first class postage affixed. Any such document or notice shall be addressed as follows: City: City Manager Ukiah Civic Center 300 Seminary Avenue Ukiah, California 95482 FAX: Email: Contractor: Solid Wastes Systems, Inc. Attn: David M. Carroll, President P. O. Box 60 Ukiah, California 95482 FAX: Email: Owner: Yulupa Investments, LLC Attn: David M. Carroll, President P. O. Box 60 Ukiah, California 95482 FAX: Email: Formatted: Wrap Around 19 or to such other person or address as may be specified from time to time in writing by any party in accordance with this Section. 18. Amendments. This Agreement may be amended from time to time only by written agreement between the parties signed by an authorized representative of each party. Any party may at any time request that the service or other provisions in this Agreement be modified by delivering written notice of its requested modifications to the other parties. Within thirty (30) days after receipt of any such request, the parties shall meet and negotiate in good faith on adopting such requested modifications, including, without limitation, any change to the Rates necessitated by such modifications, provided that nothing herein shall obligate any party to agree on any such requested modifications. 19. Successors and Assigns. This Agreement shall be binding upon, and shall inure to the benefit of, the permitted successors and assigns of the parties. 20. Integration, Severability. This Agreement, including the Exhibits hereto, constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous agreements between the parties, whether written or oral, relating to such subject matter, including the Prior Agreement. If a court finds any provision of this Agreement invalid or unenforceable as applied to any circumstance, the remainder of this Agreement and the application of such provision to other persons or circumstances shall remain in effect. The parties further agree to replace such void or unenforceable provision with a valid and enforceable provision which will achieve, to the extent possible, the economic, business and other purposes of the void or unenforceable provision. above. ATTEST: IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth Solid Wastes Systems, Inc. By: President Yulupa Investments, LLC By: President City of Ukiah By: City Manager 20 Formatted: Wrap Around City Clerk APPROVED AS TO FORM: City Attorney 21 Formatted: Wrap Around EXHIBIT A AGREEMENT FOR THE RECEIPT OF GREEN AND WOOD WASTE 22 -j Formatted: Wrap Around EXHIBIT B STRATEGIC WASTE MANAGEMENT PLAN 23 Formatted: Wrap Around EXHIBIT C LEGAL DESCRIPTION OF TRANSFER STATION SITE Formatted: Wrap Around 24 EXHIBIT D RATESCHEDULE Formatted: Wrap Around 25 a EXHIBIT E TRANSFER STATION RATE CALCULATION Formatted: Wrap Around 26 o- EXHIBIT F TRANSFER STATION LEASE 27 Formatted: Wrap Around r EXHIBIT G CURRENT GEOGRAPHIC AREA SERVED BY TRANSFER STATION The areas marked as Franchise Areas 3 and 2 (Inland) on the attached map, including the incorporated City limits. 28 Formatted: Wrap Around a EXHIBIT DA AGREEMENT FOR RECEIPT OF WOOD AND GREEN WASTE THIS AGREEMENT FOR RECEIPT OF WOOD AND GREEN WASTE (the "Agreement") is entered into as of , 2011 ("Effective Date") by and between Pacific Recycling Solutions, Inc., a California corporation ("PRS"), Ukiah Waste Solutions, Inc., a California corporation ("UWS"), and Solid Waste Systems, Inc., a California corporation ("SWS"), with reference to the following: A. PRS owns and operates a green waste and wood waste processing facility located at 4260 North State Street, Ukiah, California (the "Facility"). B. The Facility is fully permitted to accept and process Green Waste and Wood Waste, as defined below ("Materials"). C. SWS is party with the City of Ukiah to that certain Amended and Restated Transfer Station Agreement of even date herewith for the operation of the Ukiah Valley Transfer Station for the receipt, collection, transportation and disposal of municipal, commercial and industrial solid waste (the "TS Agreement"), and UWS is party with the City of Ukiah to that certain Waste Collection Agreement of even date herewith for the collection and disposal of solid waste (the "Collection Agreement"). SWS and UWS desire to enter into an agreement with PRS which will provide for disposal of approximately 10,000 tons, but without limit subject to the Facility's permitted capacity, -annually of Materials at the Facility. In consideration of the aforementioned recitals and upon the terms and conditions herein set forth, the parties hereto agree as follows: Definitions: The following terms shall have the respective meanings set forth below: "Green Waste" shall mean green trimmings, grass, weeds, leaves, prunings, branches, dead plants, brush, tree trimmings, dead trees, small wood pieces and other types of organic yard waste, provided that dead trees and branches may not exceed six (6) inches in diameter and four (4) feet in length. "Wood Waste" shall mean clean pieces of unpainted and untreated wood. "Process" shall mean handle, grind or chip and recycle Materials. 2. Agreement to Accept Materials: PRS agrees to accept and Process all Materials collected at SWS's transfer station or collected by UWS, as provided for under the TS Agreement and the Collection Agreement, and delivered by SWS or UWS to the Facility, on the terms herein. 3. Processing Rate: As consideration for the receipt and proper Processing by PRS of the Materials delivered by SWS and UWS, SWS and UWS shall each pay PRS a fee of Thirty Dollars ($30.00) per ton for Materials received by PRS at the Facility from SWS and UWS, respectively, as adjusted pursuant to Paragraph 4 herein (the "Processing Rate"). Fees shall be paid by SWS and UWS within thirty (30) days of receipt from PRS of a written invoice detailing the amount of Materials received by PRS for each month. Adjustment of Processing Rate: a. Adjustment based on CPI: PRS shall have the right, commencing on July 1, 2012 and annually thereafter, to increase the Processing Rate by a percentage equal to the percentage increase, if any, in the Consumer Price Index, All Urban Consumers, U.S. City Average, All Items (1982-1984=100), published by the United States Department of Labor, Bureau of Labor Statistics ("Index"), for the preceding year, using the Index published for the month nearest the beginning and the month nearest the end of such year. Notwithstanding any other provision herein, to the extent any government having jurisdiction over the Facility should impose any fee or tax ("Government Tax") on the Facility associated with the Processing of Materials, the Processing Rate shall be increased by the amount of such Government Tax, either at the per ton rate of such Tax or if such Tax is not assessed on a per ton basis, in the proportion that the total tonnage of Materials PRS reasonably projects to accept from SWS an UWS during the period for which the Government Tax will pertain compared with other users of the Facility. On each adjustment of the Processing Rate, PRS shall deliver to SWS and UWS written notice stating the adjusted Processing Rate. If PRS forgoes the application of a CPI adjustment in anyyear, that adjustment will be treated as a zero increase (decrease) in subsequent years and shall not be retroactively rcouped. b. Five year review: Every five years the parties and the City of Ukiah ("City") shall review the gate fee to determine whether changes in the market for green and wood waste warrant an adjustment in the gate fee to account for changes in the cost of processing and the income produced from processed green and wood waste. If processing costs have become substantially more or less and/or the income produced from processed material has substantially increased or decreased over the five year period, the rates shall be adjusted to account for these changes. 5. Term of Agreement: This Agreement shall expire as to each of SWS and UWS on the expiration of the TS Agreement or the Collection Agreement, respectively, including extensions, subject to earlier termination, as follows. PRS, on the one hand, and either of SWS or UWS, on the other, shall be entitled to terminate this Agreement in the event of the other party's material breach hereof unless such breach is cured within thirty (30) days after written notice thereof. This Agreement shall terminate automatically as to any party in the event of such party's insolvency, bankruptcy, assignment for the benefit of creditors or other debt reorganization unless, in the case of bankruptcy, the petition is removed or withdrawn within thirty (30) days. 6. Type of Waste: PRS shall only accept, and SWS and UWS shall only be entitled to provide, Materials not containing any prohibited substances or hazardous waste. PRS shall be entitled to inspect the Materials and reject and/or return to SWS or UWS any Materials that are not in conformance with the standards set forth herein. Notice of rejection of non-conforming Materials shall be given in writing prior to the close of business on the day PRS receives such non-conforming Materials at the Facility. Failure to provide written notice in accordance with the terms of the preceding sentence shall forfeit PRS's right to reject such non-conforming Materials. SWS or UWS shall bear all costs associated with inspecting, testing and rejecting any non-conforming Materials. Each party agrees to comply with all laws applicable to such party in the performance of its duties hereunder. 7. Amount of Waste to be Delivered: SWS and UWS shall deliver an aggregate minimum of 30 tons per day and an aggregate maximum of 75 tons per day of Materials to the Facility. 8. Time of Delivery: SWS and UWS shall be entitled to deliver Materials to the Facility six (6) days a week, Monday thru Saturday during normal operating hours. 9. Attorney's Fees: If any litigation is commenced between PRS and SWS or PRS and UWS to collect any sums due under this Agreement, or concerning any provisions of this Agreement, the prevailing party in such litigation shall be entitled, in addition to such other relief deemed appropriate by the court, to reasonable attorney's fees and expenses incurred in connection with such litigation. 10. Binding Effect: This Agreement shall be binding upon and inure to the benefit of the successors and assigns of SWS, UWS and PRS. 11. Confidentiality: Neither party shall disclose the Processing Rate to any person except with the express written permission of the other, which permission shall not be unreasonably withheld. Without limiting the generality of the foregoing, PRS shall agree to allow SWS or UWS to disclose the Processing Rate as may be reasonably requested or required by the City of Ukiah under the TS Agreement or the Collection Agreement. 12. Counterparts: This Agreement may be executed in counterparts, and shall be effective when fully executed by all of the parties. The parties agree to accept signatures transmitted by facsimile. 13. Third Party Beneficiaries: The City of Ukiah shall be deemed a third party beneficiary of this Agreement.- with all of the rights of a party to enforce the terms of this Agreement. No as Transfer Station Agreements with UWS and SWS, respectively. IN WITNESS WHEREOF, this Agreement is entered into as of the date first set forth above. PACIFIC RECYCLING SOLUTIONS, INC. By: SOLID WASTES SYSTEMS, INC. By: UKIAH WASTE SOLUTIONS, INC. 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LL 3 V 4-J V c~ O O - O 4J ~ V O _ M 0 a~ 4mi a--+ O E 4-J X C) 0 O CL ~ ~ u O O Q ~ O ~ s O W O L O O O ~ c~ O O O ~ O O = M O O O ~O ra ~ N r"Q O > O ~ O-j O ~a~ Q O 4-J E as x O O O C- s Q o o M N E O ~ rS4 L rn ~a Cie sti L sf K ~ ~ r ~u ~ V) t A 1 Y'_.. O O O O C) 0 O O O O 00 ~ 01 r%~- 00 M w w w M M ~ sued a a ~ s ea r SS,~' IV O-NN ,X= 5 O O O O O O O O r- r- ~ r- 9 Y• 4 ~c~"~m ~ rf"',fH O fi~i.~ ~y}tt O O O O O N O O (.0 O O 0606 N d' a-J v~ ^ U Q L L i O E \ 'a.=+ U O N 4 u 4-J O L - O O O _0 O v^ + i L.L L oC J Q m r r- r- N L.L M i O u O O O O O) o N N M ~ r r O N 61 M L w O f~ 4 L 00 00 OO M qt w -Fd O N EXHIBIT A DESCRIPTION: ALL THAT CERTAIN PROPERTY SITUATED IN THE COUNTY OF MENDOCINO, AND STATE OF CALIFORNIA, BEING DESCRIBED AS FOLLOWS: BEGINNING AT A 1/2 INCH IRON PIPE PLUGGED LS 4043, LOCATED AT THE SOUTHWEST CORNER OF PARCEL 3 AS SHOWN ON A PARCEL MAP OF MD 23-74 FILED IN MAP CASE 2, DRAWER 23, PAGE 89, MENDOCINO COUNTY RECORDS; THENCE NORTH 7 DEGREES 23'30" WEST, 379.92 FEET TO A 1/2" IRON PIPE PLUGGED LS 4043; THENCE CONTINUING NORTH 7 DEGREES 23'30" WEST, 44.11 FEET; THENCE NORTH 83 DEGREES 04'41 " EAST, 366.03 FEET; THENCE SOUTH 20 DEGREES 51' 04" EAST, 60.30 FEET TO A 1/2 INCH IRON PIPE PLUGGED LS 4043; THENCE CONTINUING SOUTH 20 DEGREES 51' 04" EAST, 365.46 FEET TO A 1/2 INCH IRON PIPE PLUGGED LS 4043; THENCE SOUTH 81 DEGREES 45'00" WEST, 465.17 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM ANY PORTION DESCRIBED IN THE DEED TO MENDOCINO TRANSIT AUTHORITY, A JOINT POWERS AGENCY, RECORDED MARCH 30, 1982 IN BOOK 1346 OFFICIAL RECORDS, PAGE 255, MENDOCINO COUNTY RECORDS. APN: 184-140-13 3151 Taylor Drive Ukiah, CA 95482 1:-~ - ~ , b TS J~.;~c Solid Wastes Systems, Inc. Transfer Station Rate Schedule Effective Date January, 2012 Calculated NEW 2012 2012 2011 FA Rate Item Rate Rate Rounded* MSW - Ton $74.50 $78.70 $78.70 MSW - Yard $17.50 $18.50 $18.50 Minimum Gate Fee - MSW Upto3cans $9.00 $9.25 $9.25 Per Can Rate - 32 gallon After3 cans $3.00 $3.08 $3.10 Green Waste - Ton $38.40 $40.79 $40.80 Green Waste - Yard $5.60 $5.95 $5.95 Minimum Gate Fee - Green Waste $5.50 $5.84 $5.85 Mixed Load - Additional Charge $17.20 $18.27 $18.25 Appliances $15.30 $16.25 $10.00 Oil Filters -Small $0.35 $0.37 $0.35 Oil Filters - Medium $0.60 $0.64 $0.65 Oil Filters - Large $0.85 $0.90 $0.90 Concrete - Ton $60.22 $63.97 $63.95 Dirt - Ton $60.22 $63.97 $63.95 Sheetrock - Clean $38.40 $40.79 $40.80 Sheetrock - Dirty $60.22 $63.97 $63.95 Tires - Bicycle $1.10 $1.17 $1.15 Tires - Motorcycle $2.10 $2.23 $2.25 Tires - Passenger Car $3.10 $3.29 $3.30 Tires - Passenger Car with Rim $4.90 $5.20 $5.20 Tires - Truck $6.70 $7.12 $7.10 Tires - Truck with Rim $9.00 $9.56 $9.55 Tires - Tractor 40.00 - 300.00 42.49 - 318.66 42.50 - 318.65 E-Waste - Computers No Charge No Charge No Charge E-Waste - Monitors No Charge No Charge No Charge Scrap Metal No Charge No Charge No Charge SrLi' * Rates are rounded to the nearest five cents EXHIBIT E Solid Wastes Systems Transfer Station Components Annual Adjustment Calculations Effective Date January, 2012 Increase COSTS Subiect to adjustment Cost Index Allowed Operating Costs subject to CPI $1,309,108.96 CPI $ 46,604.28 Fuel $212,736.94 Fuel $ 76,202.37 Disposal - Garbage $698,641.65 Contract rate Pass Through $ - Disposal - Processing $289,414.82 Negotiated Pass Through $ - Construction/Lease $2.36/ton $73,638.68 Contract rate Pass Through $ - Construction/Lease $10/ton $312,028.30 Contract rate Pass Through $ - City Landfill Fee $2/ton $11,700.27 Set by City Pass Through $ - MSWMA Fee $5/ton $157,563.05 Set by City Pass Through $ - Total COSTS Subject to adjustment $3,064,832.67 $122,806.65 Adjustments Reclass fuel for destination change -$60,203.47 $ (21,564.88) Reclass Disposal for destination change $99,556.44 Included in adjustment Adjustment to base year for destination changes, before Indicies $ 39,352.97 Total Adjustments 39,352.97 17,788.09 Adjusted Cost $3,104,185.64 $140,594.74 Revenue base 2010 Revenue Fuel Landfill Destination Change Disposal - garbage Disposal - processing CPI adjustment Construction/Lease $2.36/ton Revenue change Adjusted revenue Revenue Increase Projected $2,259,178.07 $54,637.49 ($60,203.47) $99,556.44 $0.00 $46,604.28 $0.00 $140,594.74 $2,399,772.81 $140,594.74 Current Increase New Contractor Rate increase as a percent 6.22% $67.50 $4.20 $71.70 MSWMA Rate increase as a percent 0.00% $5.00 $0.00 $5.00 City Rate increase as a percent 0.00% $2.00 $0.00 $2.00 $74.50 Total Rate $78.70 IEFFECTIVE RATE INCREASE PERCENT 5.64% 1 Page 1 of 5 EXHIBIT E Solid Wastes Systems Transfer Station Components Annual Adjustment Calculations Effective Date January, 2012 Worksheet for computing the change in various indexes and factors which comprise the components on which rates are adjusted Fuel - June to June (EIA Petroluem & Other Liquids) See Fuel cost adjustment worksheet CPI - June to June (CPI-U All US Cities) June 2010 June 2011 Index Increase (Decrease) 217.965 225.722 7.757 CPI % Change 3.56% Landfill Fee Jan to Jan (Eastlake compared to Potrero Hills) January 2011 January 2012 Increase (Decrease) $ 33.48 $ 38.25 4.770 Disposal - Garbage Cost % Change 14.25% Disposal Processing Fee Jan to Jan January 2011 January 2012 Increase (Decrease) $ 30.00 $ 30.00 $ 0.00 Disposal - Green Waste Cost % Change 0.00% Transfer Station Tonnage at gate. Year to Year January 2011 January 2012 Increase (Decrease) 31,202.83 31,202.83 0.00 Tonnage % Change 0.00% City Landfill Fee June to June January 2011 January 2012 Increase (Decrease) $ 2.00 $ 2.00 $ 0.00 City Landfill Fee % Change 0.00% MSWMA Fee June to June January 2011 January 2012 Increase (Decrease) $ 5.00 $ 5.00 $ 0.00 MSWMA Fee % Change 0.00% Page 2 of 5 W H CD X W c al al QJ Q C V1 ar C m F N 3 w u CS X -C '6 v C ~ Y N C 3 Q Y C d G a H 'C 7 4! a Q N Q U _0 _0 _0 Y Y Y 7 L 7 L L 3 L L < CA < Ca Oa < da bA Q 3 O Q 7 O :3 O Q 7 O 7 O H H F ~ y N ~ Y N N ~ Y H N F- N (Q CC N m (a N m N fD (a N (6 N f6 O N a v N a a N n. a m co a3 co O co L N T) < o l < Q a V Z v z Z V Z Z In N U cn o U N U U m v v no 00 Y a) v a) to C C E C L L a) v L Q V V La. 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J Q Z Q Ln O ai ao m a C E v W ~ a m ~ O _ X M W a1 N C f6 H N Y _ x W LL 0) (1) w - QJ OA y aA y(1),r 00 {(1).. w yQ),i 40 y C ry C as C N C ~a C ry C (a m m M M ra m u o u o v o U o U o U o x -0 x v x a x a x -o x -o v a) a) v a, v v v v a) a) a) - rl '6 - N - M -0 - CF -0 - Ln O - LO C CL CL C IZ L - CL C CL - CL C D C D i CL C Q L CL X m y X m y X M a) X m d X co d X m d Y Y } N N Y Y } N Y Y } N N Y Y } N N Y Y } N Y Y } N 0 o a o 0 o a o o a o o a o 0 o a o 0 o a v u ar v u d v u ar u v v u u v v u ar m 7 4J (U D m 7 `a I `a 7 m 7 a) r- to (U " LL r" ; - m a c a > a a a a O N Q y M 'D H 0 N lu 8 N ` N N y co a u v co a v CO a V co a v v m a m a u in Q Vf Vf _7 V1 v J X Vf N J V1 VI J VI N J Vf VI J N N J LL a Cl- LL a LL a LL a LL LL a 1l Dl O lD Ql Dl lD Ql Ql lD O Dl I- O O n 00 O Lr) V O C1 _ 01 'I: V N D1 I- O N V D1 O M O a, Ln en r, O O GJ r, r, -1 am r~ N 00 am -q t Oo 00 V at 1, M M 1/} r~ w -I = M M N 1 W m M M -1 1 00 rn N 1 00 00 .--1 M V 00 r, 3 Ln ry" r I, 4- W 7 Ln' c1' r- n r 7 Ln M rn M 7 N' O v M' O LD 0) a v L6 m C71 In Ln O I, In N V I, 41 W V ci H l0 LD 00 ci M O e 1 V} N Q V} V} N V? V} -1 V} V} N -1 VT N V} -4 N 4+ in• V} . t/? V? V} V? V} N V} = M 7 X y z G1 -tt V1 O ,0 Ln O ^ N O Ol N 00 = m} o N 1l M v . LD O O o .--I 00 o 01 00 00 o O w M 00 O O 00 N O to a O N U U m M qr (Q Vim' O N M M o, r, M Lr) v> 44 N 44 Gl 4) c L. 3 N O O O O LL O > O ry) r, = a-i N LD D, M V 00 O M V T M V Ln V 'a C Q) f6 V C x 41 C C C C C O VI T V O N O Vl O Vl O VI O 1n `i a N > m > a L/1 a) N ) a ) ) (1 ) O O Y O- O y O O L a) m LL a) m a) M a) m - v M - a) O N C C C C C C O -3i N .-1 = m H H -Di N i 1 U m o N O o N m o N o N o N O N _ C i 4J C i C i O i C i O i ~ a ~ a) (6 H a) a7 a) a3 a) (a a1 a7 a3 7 7 7 3 7 7 X N (a N fa N (a N (a N D (a D In ~ 7 ~ 7 7 7 7 7 -0 O C O : O 1 O F O : O :a M- G) o co m w m a Q x Y a) C £ X Y a) C X Y N C X Y a) C X Y a) C X Y a) C -0 0) N 'O a) 'O a, -0 -0 a) -0 a) C E E Y E E E LL _ N - N _ N _ N _ Vl _ N L 7 a) 7 7 Q) 7 Q) 7 a) 7 (C Li _0 (a LL -6 Li -6 Li -6 Li U i -O ~ 7 7 O 7 7 7 . N C co C M C co C fa C M C y N E v C E a) E v E Q) E v E v > > > > > > LL CO W d' Q W Oc w a' W 0_ W or W d' .-1 N M V Lf) O Lf1 O Lr) v OA M TRANSFER STATION LEASE THIS TRANSFER STATION LEASE (the "Lease") is made between the City of Ukiah, a municipal corporation ("Lessor"), and Solid Wastes Systems, Inc., a California corporation ("Lessee"), as of the later of 1 st day of January, 2017 or the date of the closing of Lessor's Purchase of the Premises from Lessee, with reference to the following: A. Pursuant to that certain Amended and Restated Transfer Station Agreement between Lessor, Lessee and Yulupa Investments, LLC dated November 2011 (the "Agreement"), Lessor has agreed to lease to Lessee, and Lessee has agreed to lease from Lessor, that certain improved real property situated in the City of Ukiah, County of Mendocino, State of California, commonly known as 3151 Taylor Drive (the "Premises"). B. Capitalized terms used herein have the meaning stated in the Agreement, unless otherwise expressly stated herein. NOW, THEREFORE, in and for the mutual covenants herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Lessor and Lessee agree as follows: Lease. Lease. Lessor hereby leases the Premises to Lessee on the terms and conditions of this 2. Term. The term hereof shall commence on the later of January 1, 2017 or the date of the closing of Lessor's purchase of the Premises from Lessee ("Commencement Date") and continue until the expiration or termination of the term of the Agreement (including extensions thereof). 3. Rent. The monthly rent shall equal the product of $10.00 times the number of tons of Acceptable Waste accepted by Lessee at the Premises during such month for which Lessee charges a per ton or per yard MSW Rate (as of the Effective Date approximately 31,000 tons per year). Such rent shall be paid to Lessor in arrears, within thirty (30) days after the end of the month, at City Hall, 300 Seminary Drive, Ukiah, California 95482, or at such other place as may be designated by Lessor from time to time. Each monthly rent payment shall be accompanied by a statement showing the tons of Acceptable Waste received by Lessee through the gate at the Premises during the relevant month. Cubic yards received through the gate for the purpose of rent due will be converted to tons at 5.54 cubic yards equals one ton. The per ton monthly rent may be increased annually on January I't (beginning January 1, 2018), at Lessor's election exercisable by written notice given to Lessee at least ninety (90) days prior to the date of increase, by the percentage increase, if any, in the Consumer Price Index, All Urban Consumers, U.S. City Average, All Items (1982-1984=100), published by the United States Department of Labor, Bureau of Labor Statistics (the "Index") for the twelve-month period ended on the June 30"' immediately prior to the notice, using the Index published for such June as compared with the Index published for June of the prior year. On January 1, 2022 and every five years thereafter, Lessor may increase the per ton monthly the rent on one hundred twenty (120) days' prior written notice to Lessee, provided that such increase, when passed through to the Transfer Station Rates causes those Rates to exceed the average rates of the facilities in competition with the Transfer Station. 4. Acceptance of Premises in "AS IS" Condition. Lessee acknowledges that Lessee constructed and has owned, operated and maintained the Premises until they were conveyed to Lessor just prior to the Commencement Date. As of the Commencement Date, Lessee accepts the building, improvements and any equipment on or in the Premises in their existing condition. No representation, statement or warranty, express or implied, has been made by or on behalf of Lessor as to such condition or as to the use that may be made of such property. In no event shall Lessor be liable for any defect in such property or for any limitation on its use. 5. Use. The Premises are to be used for the operation of a solid waste transfer station in accordance with the Agreement, and any related activities lawfully conducted by Lessee. 6. Uses Prohibited. Lessee shall not use any portion of the Premises for purposes other than those specified hereinabove, and no use shall be made or permitted to be made upon the Premises, nor acts done, which will increase the existing rate of insurance upon the property, or cause cancellation of insurance policies covering said property. 7. Assignment and Subletting. Lessee shall not assign this Lease or sublet any portion of the Premises without the prior written consent of Lessor, which shall be in Lessor's sole and absolute discretion to give. Any such assignment or subletting without such consent shall be void and, at the option of the Lessor, may terminate this Lease. 8. Ordinances and Statutes. Lessee shall comply with all statutes, ordinances and requirements of all municipal, state and federal authorities now in force, or which may hereafter be in force, pertaining to the Premises, occasioned by or affecting the continuing use thereof by Lessee. 9. Maintenance, Repairs, Alterations. Lessee acknowledges that the Premises are in good order and repair. Lessee shall, at its own expense and at all times, maintain the Premises (including all improvements) in good order and repair, keep the Premises clean and in good and safe condition, do no damage to the Premises, and shall surrender the Premises, at termination or expiration of this Lease, in as good condition as received, normal wear and tear excepted. Lessee's obligation includes any reconstruction or replacement of the Improvements necessary to maintain the Premises in good condition for the uses allowed under this Lease. No improvement or alteration of the Premises shall be made by Lessee without the prior written consent of Lessor. Prior to the commencement of any substantial repair, improvement or alteration to which Lessor shall so consent, Lessee shall give Lessor at least two (2) days advance written notice in order that Lessor may post appropriate notices to avoid any liability for liens. 10. Entry and Inspection. Lessee shall permit Lessor or Lessor's agents to enter upon the Premises without prior notice during hours when the Premises are open to the public and at other reasonable times upon reasonable notice for the purpose of inspecting the same, and will permit Lessor to place upon the Premises any usual "To Let" or "For Lease" signs, and permit persons desiring to Lease the same to inspect the Premises thereafter, within six (6) months prior to expiration of this Lease. 11. Indemnification of Lessor. Lessor shall not be liable for any damage or injury to Lessee, or any other person, or to any property, occurring on the Premises or any part thereof, and Lessee agrees to fully indemnify, defend and hold Lessor harmless from and against any claims for damages arising out of Lessee's use of the Premises, no matter how caused, and from any expense, cost, or liability associated with such claim or the defense of any such claim. 12. Insurance. Lessee, at its expense, shall maintain public liability insurance, including bodily injury and property damage, in accordance with the terms of Section 9 of the Agreement. 13. Utilities. Lessee shall be responsible for the payment of all utilities, including water, gas, electricity, heat and other services delivered to the Premises during the term hereof. 2 14. Abandonment of Premises. Lessee shall not vacate or abandon the Premises at any time during the term hereof, and if Lessee shall abandon or vacate the Premises, or be dispossessed by process of law, or otherwise, any personal property belonging to Lessee left upon the Premises shall be deemed to be abandoned, at the option of Lessor. 15. Condemnation. If any part of the Premises shall be taken or condemned for public use, and a part thereof remains which is susceptible of occupation hereunder, this Lease shall, as to the part taken, terminate as of the date the condemnor acquires possession, and thereafter Lessee shall be required to pay such proportion of the rent for the remaining term as the value of the Premises remaining bears to the total value of the Premises at the date of condemnation; provided, however, that Lessee may at its option, terminate this Lease as of the date the condemnor acquires possession. In the event that the Premises are condemned in whole, or that such portion is condemned that the remainder is not susceptible for use hereunder, this Lease shall terminate upon the date upon which the condemnor acquires possession. All sums which may be payable on account of any condemnation shall belong to the Lessor, and Lessee shall not be entitled to any part thereof, provided, however, that Lessee shall be entitled to retain any amount awarded to Lessee for its trade fixtures or moving expenses. 16. Trade Fixtures. Any and all fixed improvements made to the Premises during the term hereof shall belong to Lessor, except trade fixtures of the Lessee. Lessee may, upon termination hereof, remove all its trade fixtures, subject to Lessor's rights under Section 10.2.2 of the Agreement, but shall repair or pay for all repairs necessary for damages to the Premises occasioned by such removal. 17. Destruction of Premises. In the event of a whole or partial destruction of the Premises during the term hereof from any cause, Lessor shall forthwith repair the same provided that the insurance proceeds are sufficient for such purpose and provided that such repairs can be made within one hundred twenty (120) days under existing governmental laws and regulations, but such partial destruction shall not terminate this Lease, except that Lessee shall be entitled to a proportionate reduction of rent while such repairs are being made, based upon the extent to which the making of such repairs shall interfere with the business of Lessee on the Premises. If such repairs cannot be made with the available insurance proceeds or within said one hundred twenty (120) days, Lessor or Lessee, at its option, may make the same within a reasonable time, this Lease continuing in effect with the rent proportionately abated as aforesaid, and in the event that Lessor shall not elect to make such repairs which cannot be made with the available insurance proceeds or within one hundred twenty (120) days, this Lease may be terminated at the option of either party. 18. Insolvency. In the event a receiver is appointed to take over the business of Lessee, or in the event Lessee makes a general assignment for the benefit of creditors or Lessee takes or suffers any action under any insolvency or bankruptcy act, the same shall constitute breach of this Lease by Lessee. 19. Remedies of Lessor on Default. In the event of any breach of this Lease by Lessee, Lessor may, at its option, terminate the Lease and recover from Lessee: (a) the worth at the time of award of the unpaid rent which was earned at the time of termination; (b) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of the award exceeds the amount of such rental loss that Lessee proves could have been reasonably avoided; (c) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that Lessee proves could be reasonably avoided; and (d) any other amount necessary to compensate Lessor for all detriment proximately caused by Lessee's failure to perform its obligations under the Lease or which in the ordinary course of things would be likely to result therefrom. Lessor may, in the alternative, continue this Lease in effect, as long as Lessor does not terminate Lessee's right to possession, and Lessor may enforce all its rights and remedies under the Lease, including the right to recover the rent as it becomes due under the Lease. If said breach of Lease continues, Lessor may, at any time thereafter, elect to terminate the Lease. have. Nothing contained herein shall be deemed to limit any other rights or remedies which Lessor may 20. Attorney's Fees. In case suit should be brought for recovery of the Premises, or for any sum due hereunder, or because of any act which may arise out of the possession of the Premises, by either party, the prevailing party shall be entitled to all costs incurred in connection with such action, including reasonable attorney's fees. 21. Waiver. No failure of Lessor to enforce any term hereof shall be deemed to be a waiver of such term. 22. Notices. Any notice which either party may or is required to give, shall be given by mailing the same, postage prepaid, to Lessee at the Premises, or Lessor at the address set forth in Section 3 above, or at such other places as may be designated by the parties hereunder from time to time. 23. Time. Time is of the essence of this Lease. 24. Heirs, Assigns, Successors. This Lease is binding upon and shall inure to the benefit of the respective heirs, assigns and successors in interest to each of the parties. 25. Prope . Taxes. Lessee shall pay all Property Taxes upon the Premises, including any improvements thereon (such as the Improvements). For purposes of this Lease, "Property Taxes" shall mean: (a) all real estate taxes and other assessments on the Premises and/or any improvements, including assessments for special improvement districts and building improvement districts, taxes and assessments levied in substitution or supplementation in whole or in part of any such taxes and assessments; (b) all personal property taxes for property that is owned by Lessor and used in connection with the operation, maintenance and repair of the Premises and/or improvements; (c) all governmental charges attributable to the Premises (such as business license taxes and fees); and (d) all costs and fees incurred in connection with seeking reductions in any tax liabilities described in (a) or (b) above, including, without limitation, any costs incurred by Lessor for compliance, review and appeal of Property Tax liabilities. The parties shall use their best efforts to maintain or decrease the assessed value of the Premises upon conveyance of the Premises to Lessor. 26. Lessor's Liability. The term "Lessor," as used in this paragraph, shall mean only the owner of the real property or Lessee's interest in a ground lease of the Premises. In the event of any transfer of such title or interest, the Lessor named herein (or the grantor in case of any subsequent transfers) shall be relieved of all liability related to Lessor's obligations to be performed after such transfer; provided, however, that any funds in the hands of Lessor or grantor at the time of such transfer shall be delivered to grantee. Lessor's aforesaid obligations shall be binding upon Lessor's successors and assigns only during their respective periods of ownership. 27. Estoppel Certificate. (a) Lessee shall at any time upon not less than ten (10) days' prior written notice from Lessor execute, acknowledge and deliver to Lessor a statement in writing (i) certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease, as so modified, is in full force and effect), the amount of any security deposit, and the date to which the rent and other charges are paid in advance, if any, and (ii) acknowledging that there are not, to Lessee's knowledge, any uncured defaults on the part of Lessor 4 hereunder, or specifying such defaults if any are claimed. Any such statement may be conclusively relied upon by any prospective purchaser or encumbrancer to the Premises. (b) At Lessor's option, Lessee's failure to deliver such statement within such time shall be a material breach of this Lease or shall be conclusive upon Lessee (i) that this Lease is in full force and effect, without modification except as may be represented by Lessor, (ii) that there are no uncured defaults in Lessor's performance, and (iii) that not more than one month's rent has been paid in advance or such failure may be considered by Lessor as a default by Lessee under this Lease. (c) If Lessor desires to finance, refinance or sell the Premises, or any part thereof, Lessee hereby agrees to deliver to any lender or purchaser designated by Lessor such financial statements of Lessee as may be reasonably required by such lender or purchaser. Such statements shall include the past three years' financial statements of Lessee. All such financial statements shall be received by Lessor and such lender or purchaser in confidence and shall be used only for the purposes herein set forth. 28. Hazardous Materials. Lessee shall indemnify and hold harmless Lessor with respect to the discharge by Lessee or its agents of any toxic or hazardous materials on or in the Premises during the term hereof. 29. Entire Agreement. The foregoing (including, where applicable, the Agreement) constitutes the entire agreement between the parties with respect to the Premises and may be modified only by a writing signed by both parties. Capitalized terms used, but not defined, herein shall have the respective meanings given them in the Agreement. 30. Governing Law; Forum. This Lease shall be construed in accordance with the internal laws of the State of California (irrespective of choice of law principles). Any dispute hereunder shall be resolved in the state courts in Mendocino County and state appellate courts. The parties waive any right to a jury trial. IN WITNESS WHEREOF, the parties have executed this Lease as of the date first above written. CITY OF UKIAH (LESSOR) SOLID WASTES SYSTEMS, INC. (LESSEE) By: By: Title: Title: EXHIBIT G MAP OF SOLID WASTE REFUSE COLLECTION AREA SOLID WASTE REFUSE COLLECTION AREAS A Mendocino County Formatted: Font: 12 pt Formatted: Heading 1 WASTE COLLECTION AGREEMENT TABLE OF CONTENTS Page Was te Collection Agreement 1 1. Franchise Grant 1 2. Definitions 2 3. Term 5 4. Franchise Fee; Other Fees 6 5. Services 6 5.1 Solid Waste 6 5.2 Recyclables 7 5.3 Green Waste 7 5.4 Food Waste 7 5.5 Contaminated Materials 7 5.6 Changes; Missed Pick-Ups 7 5.7 Containers - Single Family Residential 8 5.8 Containers - Multi-Family Residential, Commercial and Institutional 8 5.9 Replacement or Addition of Containers 8 5.10 Personnel and Equipment 8 5.11 Disposal and Processing Facilities 8 5.12 Local Office 10 5.13 Pick-Ups at City Facilities 10 5.14 Outreach and Public Education 10 5.15 Fall Leaf Collection 11 5.16 Spring Clean-Up Week 5.17 Additional Services 5.18 Permits and Licenses 5.19 Diversion Requirements 6. Rates 6.1 Establishment of Rates 6.2 Modification Based on Consumer Price Index, Fuel Index. Recycling Reduction and Certain Pass Through Costs 6.3 Modification Based on Changes in Pass Through Costs 6.4 Five Year Review 6.5 Modification Based on Extraordinary Items 6.6 Billing 6.7 Proposition 218 7. Provisions Applicable to Equipment and Personnel 8. Records and Reports 9. Hold Harmless and Insurance 10. Remedies upon Default 11. Assignment 12. Waiver 13. Administration 14. Independent Contractor 15. Notices 16. Amendments 11 11 11 11 11 11 11 13 14 14 14 15 15 16 16 17 19 20 20 20 20 21 I 17. Successors and Assigns 21 18. Integration; Severability 21 Exhibit A - Waste Management Strategic Plan Exhibit B -Recyclable Materials Agreement Exhibit C - Curbside Rate Calculation 23 24 25 Exhibit D - Agreement for Receipt of Wood and Green Waste 26 Exhibit E - Initial Service Rates 27 iii WASTE COLLECTION AGREEMENT This Waste Collection Agreement (the "Agreement") is made as of November , 2011 by and between the City of Ukiah, a municipal corporation (hereinafter "City"), and Ukiah Waste Solutions, Inc., a California corporation (hereinafter "Company"), with reference to the following: WHEREAS, Company currently collects and disposes of Solid Waste generated in City pursuant to that certain Contract for Collection, Transportation and Disposal of Garbage, Refuse, and Rubbish, and Recycling of Recyclables from within the City of Ukiah dated March 23, 1992, as amended May 9, 1997, August 21, 1998, November 7, 2001 and April 16, 2008 (the "Prior Agreement"); and WHEREAS, Company has proposed a capital-intensive, long-term Strategic Waste Management Plan (the "Strategic Plan"), including, but not limited to, Contractor financed capital projects, for City and the other customers served by Company and its affiliates that is designed to increase diversion, mandated by law, of Solid Waste from landfills, reduce greenhouse gasses, convert waste into energy, and create new jobs, a true and correct copy of which is attached hereto as Exhibit A; and WHEREAS, undertaking the Strategic Plan will require a long-term commitment of Company's staff, time and capital; and WHEREAS, the parties wish to continue to assure the health, safety and public welfare of City's residents and businesses by providing efficient services for recycling and the collection and disposal of all Solid Waste generated in the City resulting in increased diversion pursuant to the terms of a new, long-term agreement that replaces the Prior Agreement; NOW, THEREFORE, in and for the mutual covenants herein and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the pal-ties agree as follows: Franchise Grant. 1.1 City hereby grants to Company, and Company hereby accepts from City, the exclusive franchise right and privilege, subject only to Section 1.3 below, to Collect, remove, transport, Recycle, Process, compost and Dispose of all Solid Waste generated in City in accordance with the provisions of City's laws and regulations pertaining to the accumulation, collection and removal thereof and any other applicable law, including applicable State and Federal statutes or administrative rules. 1.2 All Solid Waste Collected by Company pursuant to this Agreement shall become the property of Company upon its possession thereof, provided that nothing in this section shall be deemed a waiver by City of its rights and duties under this Agreement. 1.3 The franchise granted to Company hereunder shall in all respects be exclusive, 1 except as otherwise provided by applicable law and as follows: (a) Recyclables generated at any Residential, Commercial or Institutional Property that are Source Separated may be (i) transported personally by the Generating person for sale or donation to a Processing facility that has been duly approved and authorized as such by a governmental or other appropriate authority, including beverage containers Recycled at authorized facilities under the California Beverage Container Recycling Litter Reduction Act, (ii) may be sold or donated by the Generating person to any Charitable Entity, or (iii) sold by the Generating person to any licensed Recycler (provided the Generating person is not charged any amount by such Recycler, directly or indirectly); (b) Solid Waste Generated at any Residential, Commercial or Institutional Property may be personally transported by the person Generating same to any licensed landfill, transfer station or materials recovery facility; (c) Green Waste removed from a Residential, Commercial or Institutional Property by a gardening, landscaping or tree trimming contractor as an incidental part of a comprehensive service offered by such contractor, rather than as a hauling service, may be disposed of by such contractor at any licensed transfer station or materials recovery facility, provided that such contractor does not store the box, bin or container used for such purpose at the location where the service is provided or remove such box, bin or container from such contractor's truck; (d) Construction Debris and Demolition Debris removed from a Residential, Commercial or Institutional Property by a licensed construction or demolition contractor using its own employees and equipment as an incidental part of a comprehensive service offered by such contractor, rather than as a hauling service, may be disposed of by such contractor at any licensed transfer station or materials recovery facility, provided that such contractor does not store the box, bin or container used for such purpose at the location where the service is provided or remove such box, bin or container from such contractor's truck; and (e) Hazardous Waste and Household Hazardous Waste may be disposed of in any lawful manner. 1.4 To the extent permitted by applicable law, City agrees to take such steps as may be reasonably necessary to protect (a) Company's ownership of Solid Waste, including Recyclables and Green Waste, placed at the curbside or designated collection location for Collection by Company under the terms of this Agreement, and (b) Company's exclusive rights to collect all Solid Waste, including Recyclables and Green Waste, in accordance with the terms hereof. City's obligation under this Section 1.4 is subject to Company's agreement, upon request of City, to reimburse City's reasonable expenses, including attorneys' fees and litigation expenses, incurred in taking steps as agreed upon herein; provided, however, that nothing herein shall prevent Company from taking any lawful action to protect its rights hereunder. 1.5 Except as expressly provided herein, this Agreement shall supersede the Prior Agreement as of the Effective Date set forth in Section 3 below, when the Prior Agreement shall cease to have any effect (except for periods prior to such Effective Date). Definitions. 2.1 "Authorized Facility" means a Disposal or Processing facility that has received and is maintaining in good standing all regulatory or other approvals required by law to perform the task for which Company is using the facility and which has been approved by the City pursuant to Section 5.11 below. 2.2 "Billing Fees" means the billing fees payable to City pursuant to Section 6.6 below, including any fees or charges adopted to replace or supplement such billing fees. 2.3 "CCC" means Cold Creek Compost, Inc. 2.4 "Change in Law" means the enactment, adoption, promulgation, issuance, modification, or written adoption or change in administrative or judicial interpretation on or after the Effective Date of, any law, regulation, rule, order, judgment, decree, permit, approval or other requirement of any governmental agency (including City) having jurisdiction over this Agreement or Company's performance hereunder. 2.5 "Charitable Entity" means any not-for-profit organization or entity maintained for community service, education or the public good, including service clubs, scouting organizations, religious and educational organizations and recognized charities. 2.6 "Collect" or "Collection" means the collection, transportation and removal of Solid Waste within and from City. 2.7 "Commercial Property" means property upon which business activity is conducted, including but not limited to retail sales, services, wholesale operations, manufacturing and industrial operations, but excluding businesses conducted upon Residential Property that are permitted under applicable zoning regulations and are not the primary use of the property. 2.8 "Construction Debris" means used or discarded construction materials generated during the construction or renovation of a building, structure or other man-made improvement on a Residential, Commercial or Institutional Property. 2.9 "Containers" means any and all types of Solid Waste receptacles supplied by Company, including but not limited to rectangular bins, cylindrical containers, and any and all other kinds of receptacles or bags, irrespective of size or shape. 2.10 "Customer" means the owner or occupant of Residential, Commercial or Institutional Property. 2.11 "Demolition Debris" means used construction materials generated during the razing or renovation of a building, structure or other man-made improvement on a Residential, Commercial or Institutional Property. 2.12 "Disposal" means the permanent placing of Solid Waste in a facility legally permitted to receive it. 2.13 "Disposal Costs" means Company's costs to deposit Solid Waste collected under this Agreement at the Transfer Station (as defined in Section 5.11 below) or any other Authorized Facility. 2.14 "Food Waste" means food that is discarded (as fi•om a Commercial or Residential Property kitchen). 2.15 "Franchise Fees" means the franchise fees payable to City pursuant to Section 4 below, including any fees or charges adopted to replace or supplement such franchise fees. 2.16 "Generate" means to create or render. A Customer is not considered to be the Generator of Solid Waste if the material has merely been transported or moved to the Customer's site. 2.17 "Green Waste" means tree trimmings, grass cuttings, plants, leaves, branches and trees (not more than six (6) inches in diameter or more than four (4) feet in length) and similar materials generated at a Residential, Commercial or Institutional Property. 2.18 "Hazardous Waste" means all substances defined as Hazardous Waste, acutely Hazardous Waste or extremely Hazardous Waste by the State of California, or identified as Hazardous Waste by the U.S. Environmental Protection Agency, under applicable laws or regulations. 2.19 "Household Hazardous Waste" means Hazardous Waste that is generated at Residential Properties. 2.20 "Institutional Property" means the premises or site of any governmental entity, including city, county, state and/or federal buildings, public schools, colleges, and public recreational sites. 2.21 "Multi-Family Residential Property" means any building or structure, connected structure or series of structures used for residential purposes, and consisting of three (3) or more distinct dwelling units, irrespective of whether the dwelling units are rental units or are owner-occupied. 2.22 "Pass Through Costs" means Disposal Costs, Processing Costs and Regulatory Costs. 2.23 "Processing" means the act of salvaging, reprocessing, marketing and selling or reusing Recyclables (including Food Waste and Green Waste) for the purpose of Recycling, whether directly or through one or more third parties, and shall include other means of diverting Solid Waste from landfills pursuant to the Strategic Plan. 2.24 "Processing Costs" means the costs of Processing. 2.25 "Recyclables" means Solid Waste which may be reused or processed into a form suitable for reuse through reprocessing or remanufacture consistent with the requirements of the California Integrated Waste Management Act of 1989, as amended ("AB 939"), including, without limitation, paper, newsprint, printed matter, pasteboard, paper containers, cardboard, glass, aluminum, PET, HDPE, and other plastics, beverage containers, compostable materials (including Green Waste and Food Waste), and wood, brick and stone in reusable size and condition. Recyclables shall include those items of Construction Debris and Demolition Debris which are described in this Sections 2.8 and 2.11. Company shall report changes in Recyclables collected at the curbside to the City Manager who must approve those changes. 2.26 "Recycle" means the process of reusing or processing Solid Waste into a form suitable for reuse consistent with the requirements of AB 939. 2.27 "Regulatory Costs" means all regulatory and governmental fees and charges incurred by Company in connection with providing services under this Agreement, including, without limitation, Franchise Fees, Billing Fees, commercial oversight fees and landfill closure costs payable to City. 2.28 "Residential Property" means Single Family Residential Property and Multi- Family Residential Property. 2.29 "Single Family Residential Property" means any building or structure, connected structure or series of structures used for residential purposes, and consisting of less than three (3) distinct dwelling units, irrespective of whether the dwelling units are rental units or are owner-occupied. 2.30 "Solid Waste" means all putrescible and nonputrescible residential refuse, commercial solid waste, institutional solid waste, garbage, Green Waste, Food Waste and rubbish as defined in Public Resources Code Section 40191, including, without limitation, for the purposes of this Agreement Construction Debris, Demolition Debris, Recyclables, but excluding Hazardous Waste and Household Hazardous Waste. 2.31 "Source Separated" means Recyclables that are separated at the Residential, Commercial or Institutional Property where they are generated from Solid Waste and other Recyclables that are Collected separately, and which are saleable or acceptable for Processing without further sorting, including, but not limited to, Recyclables consisting of glass, paper, plastic, cardboard, tin cans and aluminum cans which are separated from all other Recyclables and Solid Waste, Green Waste which is separated from all other Recyclables and Solid Waste, and Food Waste which is separated from all other Recyclables and Solid Waste. 3. Term. Subject to earlier termination in accordance with the terms of this Agreement, the term of this Agreement shall commence on January 1, 2012 (the "Effective Date") and continue for a period of fifteen (15) years through December 31, 2026, provided that Company shall have one (1) option to extend this Agreement and the franchise granted hereunder on the terms and conditions herein for a period of five (5) years commencing January 1, 2027 and ending December 31, 2031. Notice of Company's exercise of such option must be given at least six (6) months prior to December 31, 2026. The option to extend hereunder may not be exercised unless Company is in material compliance with the terms of this Agreement at the time of exercise and on December 31, 2026. It is the parties' intention that, subject to prior termination hereunder or thereunder, the term of this Agreement be coextensive with the term of the Transfer Station Agreement between City and Solid Wastes Systems, Inc. ("SWS") of even date herewith (the "Transfer Station Agreement"). 4. Franchise Fee; Other Fees. Company shall be liable to City for a franchise fee equal to fifteen percent (15%) of the gross revenues collected by Company from Customers within the City limits during the term of this Agreement or such other percentage of such gross revenues as the City Council may establish from time to time. Within thirty (30) days after the end of each calendar month, Company shall send City a statement detailing gross revenue received by Company from Commercial and Institutional Customers, and from the Multi-Family Residential Customers that Company bills, for the prior calendar month, and City shall send Company a statement showing how City calculated the amounts withheld in accordance with this Section 4 and Section 6.6 below from its payment to Company for the prior calendar month. As soon as City's billing system permits it to generate the following statement, City will provide Company within thirty (30) days after the end of each calendar month with a statement detailing the amounts billed by City to the Residential Customers billed by City, the amounts collected by City from such Customers, the amounts paid to Company and all amounts withheld from such payments in accordance with this Section 4 and Section 6.6 below for the prior calendar month. In addition, each party shall maintain copies of all its billing and collection records for three (3) years following the date of billing for inspection and verification by the other party. Company shall also owe City a Billing Fee pursuant to Section 6.6 below, a commercial oversight fee of $10,000 per calendar year and a landfill closure cost of $60,000 per calendar year. The Franchise Fee, the Billing Fee, the oversight fee and the landfill closure fee shall all be paid by means of City's withholding such amounts from the payments City makes to Company in respect of the revenues City bills to Residential Customers in accordance with Section 6.6 below. The annual oversight and landfill closure fees will each be withheld at the rate of one-twelfth per month. Services. 5.1 Solid Waste. Company shall Collect and Dispose of all Solid Waste (other than Source Separated Recyclables, which are subject to Section 5.2 below, and Source Separated Green Waste and Food Waste, which are subject to Section 5.3 below) generated at every Single Family Residential Property within City once each week on a regularly scheduled day, and at every Multi-Family Residential, Commercial and Institutional Property within City upon a schedule established between Company and each Generating person (or the owner, landlord or property manager, in the case of Multi-Family Residential Properties), but at least once each week on a regularly scheduled day, in accordance with this Agreement. Solid Waste shall not be put out for Collection with Hazardous Waste or Household Hazardous Waste in the same Container. Company will not collect Solid Waste, including Recyclables, on New Year's Day, Memorial Day, July 4`h, Labor Day, Thanksgiving Day or Christmas Day, and will make appropriate adjustments to its collection schedule in order to avoid an excessive accumulation of Solid Waste on such days. 5.2 Recyclables. On the same day as specified by Company under Section 5.1, Company shall collect all Source Separated Recyclables (other than Green Waste and Food Waste) Generated at every Residential Property within City once each week on a regularly scheduled day in accordance with this Agreement. Company shall collect all Source Separated Recyclables (other than Green Waste and Food Waste) Generated at every Commercial and Institutional Property within City upon a schedule established between Company and each Generating person (or the owner, landlord or property manager, in the case of Multi-Family Residential Properties), but not less frequently than weekly. 5.3 Green Waste. On the same day as specified by Company under Section 5.1, Company shall collect all Source Separated Green Waste Generated at every Residential Property within City once each week on a regularly scheduled day in accordance with this Agreement. Company shall collect all Source Separated Green Waste Generated at each electing Commercial and Institutional Property within City upon a schedule and at rates established between Company and each Generating person, but not less frequently than weekly. 5.4 Food Waste. Subject to Company's obtaining all necessary permits, and Company and City agreeing upon the specific terms of the program, including applicable Rates and methods of collection, Company shall commence a pilot Food Waste Collection program for Commercial and Institutional Properties as soon as possible but by no later than June 1, 2013. No later than six months after commencement of such pilot program, Company and City will develop the specific terms, including applicable Rates and methods of collection, for an ongoing Food Waste Collection programs for all Residential, Commercial and Institutional Properties, subject to Company's obtaining all necessary permits. In developing such a program Company shall provide City with a list of any proven options, including, but not limited to, open air composting, in vessel composting and anaerobic digestion, information about potential Processing Facilities. and a comparative analysis of the methods of collection. feasibility cost, impact on rates, and environmental benefits of each alternative. City may request additional information before approving a program. 5.5 Contaminated Materials. Company may refuse to collect Solid Waste, Recyclables, Green Waste or Food Waste Generated by, and shall not be obligated to continue to provide any Solid Waste, Recyclables, Green Waste or Food Waste Container to, any person who after reasonable warning, fails to sort Solid Waste, Recyclables, Green Waste or Food Waste properly, or fails or refuses to allow Company to Collect, on an exclusive basis, said person's Solid Waste, Recyclables, Green Waste or Food Waste. Company shall make available to City any warning notices issued by Company for this purpose, and City shall investigate same to determine whether the person receiving the notice has violated the applicable ordinance. Company may alternatively assess a contamination charge in accordance with Exhibit E in such instances. 5.6 Changes; Missed Pick-Ups. Company shall not alter or adjust Collection services without providing prior notice to all service addresses, and any schedule modifications shall not result in reduced service frequency to any Customer. Company shall collect and remove Solid Waste and Recyclables from any premises "missed" or "skipped" during the regularly scheduled time, within one (1) working day after demand for collection is made by the Customer or City. 5.7 Containers-Single Family Residential. Company shall collect Solid Waste, Recyclables, Green Waste and Food Waste from Single Family Residential Properties in City in the following types of Containers: Solid Waste - 10, 20, 32, 64 or 96 gallons, Recyclables -32 (Billy Goat Run), 64 or 96 gallons, Green Waste - 32 (Billy Goat Run), 64 or 96 gallons, Food Waste - sizes proposed by Company and approved by the City Manager. Company has provided and distributed one set of Solid Waste, Recyclables and Green Waste Containers, at no cost in addition to the monthly rates, to each Single Family Residential Property in City, and will provide such a set to each new Single Family Residential Property in City after the Effective Date, and will provide a Food Waste Container of the approved size to each Single Family Residential Property upon commencement of the relevant Food Waste Collection program. Nothing in this section shall be deemed to preclude the use of bins or other Containers of a size and shape, which are compatible with approved rates, acceptable to and supplied by Company and, in the event City and Company shall institute new programs hereunder which require bins or other Containers of a particular size and shape, Customers on single unit Residential Properties shall use bins or other Containers supplied by Company meeting such requirements. 5.8 Containers- Multi-Family Residential, Commercial and Institutional. Company shall collect Solid Waste, Recyclables, Green Waste and Food Waste from Multi-Family Residential Properties, Commercial Properties and Institutional Properties in City in a size and shape suitable for each such location from the following capacities: 10, 20, 32, 64 or 96 gallon carts, two-yard, three-yard, four-yard and six-yard bins, and 15-yard, 20-yard and 30-yard boxes. 5.9 Replacement or Addition of Containers. Company shall replace, at no charge to a Single Family Residential Generator but not more than once a calendar year, a Solid Waste, Recyclables, Green Waste or Food Waste Container that is stolen from the curb. If from time to time a Single Family Residential Generator may wish to have additional Containers, Company shall make additional Containers available for free and adjust the Generator's service rate. A replacement Container will be provided free to any Single Family Residential Generator returning the original Container for a Container of a different size, but not more than twice a calendar year. Company will maintain and repair Containers at its cost, and shall repair or replace damaged Containers, at Company's option, upon request of a Customer or City. The ownership of all Containers purchased by Company under this Agreement shall be and remain with Company. 5.10 Personnel and Equipment. Company shall furnish sufficient personnel, labor and equipment required for the Collection, removal, handling, Processing and Disposal of all Solid Waste Generated within the corporate limits of the City in compliance with this Agreement and the City's applicable law or City policy. 5.11 Disposal and Processing Facilities. (a) Solid Waste. Company shall transport all Solid Waste collected by it in City to the transfer station operated by SWS and located at 3151 Taylor Drive, Ukiah, California (the "Transfer Station"). All of such Solid Waste that is not Recycled shall be hauled to a licensed disposal facility in accordance with the terms of the Transfer Station Agreement. The gate fee paid by Company to SWS for Solid Waste delivered to the Transfer Station shall be as determined under the Transfer Station Agreement. (b) Recyclables. Company shall transport all Source Separated Recyclables (other than Green Waste and Food Waste) Collected by it curbside from Residential Customers in City to the materials recovery and green waste facility operated by Pacific Recycling Solutions, Inc. ("PRS") and located at 4260 North State Street, Ukiah, California (the "PRS Facility") for Processing. Company shall transport all other Recyclables collected in City to the Transfer Station. Any residue from such Recyclables that cannot be Recycled shall be Disposed of in accordance with the Transfer Station Agreement if delivered to the Transfer Station, or at any Authorized Facility selected by PRS, if delivered to the PRS Facility. PRS shall pay Company the amounts determined under that certain Recyclable Materials Agreement between PRS and Company of even date with this Agreement attached hereto as Exhibit B for Recyclables delivered to PRS by Company (the "Recycling Agreement"). The amount, if any, paid by Company to SWS for Recyclables delivered to the Transfer Station shall be as determined under the Transfer Station Agreement. (c) Green and Food Waste. Company shall transport all Source Separated Green Waste and Food Waste collected by it in City to any or all of the following facilities: the Transfer Station, the PRS Facility or the Scotia biomass conversion facility (the "Scotia Facility") for Processing; provided, however, that, notwithstanding any other provision in this Agreement, Company shall arrange for delivery of an average of 400 tons per calendar month, subject to seasonal adjustments affecting the amount of Green Waste available, of Green Waste (including Green Waste generated in City), un-ground but presorted, to the CCC facility so long as (1) CCC is licensed to accept Green Waste from City, (2) CCC is in full compliance with its license, (3) CCC is the only licensed composting facility in Mendocino County that is licensed to accept and is capable of accepting the full range of inputs accepted by CCC as of April 1, 2008, (4) CCC charges not more than $32.00 per ton for the first 200 tons of such Green Waste in the aggregate delivered per calendar month ((which representsmay represent more than the actual Green Waste collected curbside in City by Company)). and correspondingly CCC will accept. at no charge for any tons in excess of 200 delivered in such month (which represents Green Waste from sources other than City), and (5) CCC continues to accept sheet rock from Company, SWS and PRS at no charge; and, provided, further, that Company's obligation shall be deemed satisfied by Green Waste arranged to be delivered by SWS to the CCC facility pursuant to Section 4.5 of the Transfer Station Agreement. Any residue from the Green Waste generated in City that cannot be Processed shall be disposed of in accordance with the Transfer Station Agreement if delivered to the Transfer Station, or at any Authorized Facility selected by PRS, if delivered to the PRS Facility. The amount paid by Company to SWS for Green Waste delivered to the Transfer Station shall be as determined under the Transfer Station Agreement, and the amount paid by Company to PRS for Green Waste delivered to the PRS Facility shall be as determined under that certain Agreement for the Receipt of Green and Wood Waste between PRS, Company and SWS of even date with this Agreement and attached hereto as Exhibit C. (d) Alternate, Successor and Other Authorized Facilities. Company shall provide City with written notice as soon as Company knows that it will use a Processing Facility instead of or in addition to the PRS Facility, the Scotia Facility or CCC. The notice shall provide the name and location of the proposed Facility, the anticipated gate fee and other charges for Processing at that Facility, and a copy of the proposed contract between Company and such Facility. Company shall also provide City with any additional information about such Processing Facility reasonably requested by City. Company's use of the proposed Processing Facility shall be subject to Gity2-_approval by the City Council, which shall not be unreasonably withheld and F flay be given by Cityy s G45, Manage " In acting on a request for approval, the City shall consider, among other things, whether the useeest of using-that Facility is reasonably consistent with the Strategic Plan, as attached, or revised with approval of the City Council, available at a reasonable cost to the ratepayers considering the environmental benefits and the available alternatives, and otherwise qualifies as an Authorized Facility. The City Council may consider any other factor reasonably related to a legitimate City interest in its management of waste collection and disposal, including, but not limited to, alternative technologies and facilities, the impact on rates, past performance and regulatory compliance history of the Processing Facilities under consideration, factors affecting the facilities' future performance, and the public interest. In the event that the Transfer Station, the PRS Facility, the CCC facility, the Scotia Facility or any other Authorized Facility described above cannot accept Solid Waste, Recyclables, Green Waste, or Food Waste Generated in City on a temporary basis due to no fault of Company, or due to events beyond the control of Company, such as acts of God, public emergency, strike or lockout by employees of another entity unrelated to Company, Company shall locate and use an alternate licensed facility for the duration of such circumstance; provided, however, that City approval in accordance with this Section 5.11(d) shall be required if the Authorized Facility cannot accept Solid Waste for a period of time exceeding three (3) months. 5.12 Local Office. Company shall maintain an office in or in close proximity to o the City. as approved by the City Manager, where service may be applied for and complaints made. The address and telephone number of such office shall regularly be included in Customer billings and service information distributed to the public. Company's office shall have a responsible individual available daily between the hours of seven-thirty o'clock a.m. and four o'clock p.m., excepting Saturday, Sunday and holidays. Calls for missed collections shall be received 24 hours per day, by answering machine after four o'clock p.m. and on Saturdays, Sundays and holidays. 10 5.13 Pick-Ups at City Facilities. Company shall provide Containers and remove, without charge, all Solid Waste, Source Separated Recyclables and Source Separated Green and Food Waste Generated at all City facilities, including from City street cans, (of the nature and in the amounts currently collected) at least once per week, but Company may charge all other public agencies for services rendered at the same rates and on the same basis as Commercial Customers are charged for similar services. Company shall also remove, without charge, all grit and screenings from City's wastewater plant as scheduled by Company and City. rO~ ffieneing the expii-ation of Gity~s current sludge hauling agreement with T-Otal Waste Systems, Company shall remove and dispose of-, for the charged eontained in Exhibit E, all sludge 4-wn G454 Nvaste,~A,atei, plant as seheduled by Company and Gipft 5.14 Outreach and Public Education. Company shall execute a public awareness campaign for recycling by Residential and Commercial Customers, which campaign will include an up to date Web Site that includes educational information, a business waste reduction program, a school Recycling program and a flyer in Company's billing statements (or posted on Company's website) not less than every six months. City shall provide Company with free space at all City-sponsored events to promote the campaign. Additional activities shall be available at additional cost by mutual agreement of the parties. Company shall also provide each new Customer with a packet of information regarding the curbside Recycling and Green Waste programs, and, if in effect, a Food Waste program, as well as information cards to be used in the event that a Customer places materials out for Recyclables, Green Waste or Food Waste collection that are not acceptable as set forth in this Agreement. Such card shall be left with the Customer's container or bin and shall inform the Customer why the materials were not picked up. 5.15 Fall Leaf Collection. Company shall provide all Customers with reasonable leaf collection without charge during the week after Thanksgiving each year in Containers and/or bags approved or provided by Company. City shall prepare and pay for an insert in all Customer billing advertising this service. 5.16 Spring Clean-up Week. Company shall provide all Customers with reasonable Green Waste collection without charge during the third week of April each year, including the collection of tree branches not to exceed six (6) inches in diameter or four (4) feet in length. 5.17 Additional Services. Company shall provide additional services upon request of City, or upon the proposal of Company as approved by City pursuant to Section 5.19 below, subject, if the costs incurred by Company to provide such services increase, to the establishment by mutual written agreement of a reasonable service Rate therefor. 5.18 Permits and Licenses. Company shall obtain and maintain throughout the term of this Agreement all permits, licenses and approvals necessary or required for Company to perform the work and services described herein. City shall reasonably cooperate with Company in connection with obtaining or renewing such permits, licenses and approvals. 11 5.19 Diversion Requirements. In an effort to assure City's continuing compliance with the current and any future diversion requirements set forth in the California Integrated Waste Management Act of 1989, as amended ("AB 939"), Company shall propose and City may require Company to adopt and implement various recycling, Solid Waste reduction, public education and reporting programs for City and its residents, subject to City taking all actions necessary to implement such programs and approving reasonable service rate increases needed, if any, in connection therewith. 6. Rates. 6.1 Establishment of Rates. The service rates specified in Exhibit E to this Agreement (the "Rates") shall take effect on the Effective Date, subject to approval by the City Council and compliance with the notice and hearing requirements in Article XIII.D of the California Constitution and Government Code Sections 53750 et seq. (collectively, "Proposition 218"). Such Rates shall be adjusted pursuant to Sections 6.2, 6.3, 6.4 and 6.5 below, subject to compliance with the notice and public hearing requirements of Proposition 218 as provided in such Sections. The parties' agreement to subject the Rates and certain adjustments thereto to the notice and public hearing requirements of Proposition 218 is precautionary only and shall not be deemed an admission that Proposition 218 applies to the Rates or such adjustments. Company shall not charge any amount in excess of the approved Rates for services required by or permitted under this Agreement. 6.2 Modification Based on Consumer Price Index, Fuel Index, Recycling Reduction and Certain Pass Through Costs. (a) Adjustment Calculation. Each Rate shall be adjusted January 1st every year, beginning January 1, 2013 ("Rate Adjustment Date") to reflect changes in the CPI, the Fuel Index, the amount paid to Company by PRS for Recyclables and certain Pass Through Costs by a percentage determined in accordance with the Curbside Rate Calculation attached hereto as Exhibit C (the "Calculation"). (b) Definitions. For purposes of Rate adjustments pursuant to this Section 6.2 and the Calculation, the following terms shall have the following meanings. (i) "Base Fuel Costs" means Company's actual costs for diesel and other fuels used in performing services under this Agreement for the year ended December 31, 2010 or $200,641.15. (ii) "Base Revenue" means Company's total revenue received from Customers during the Comparison Year. (iii) "Base Year" means the year ended June 30`' one year prior to June 30`h of the Comparison Year. (iv) "Comparison Year" means the year ended June 30`h immediately prior to the relevant Rate Adjustment Date. (v) "Commercial Oversight Fees" means the total amount of commercial oversight fees, including any fees or charges adopted to replace or supplement such fees, paid by Company to City in accordance with Section 4 and 6.6 during the Comparison Year. 12 (vi) "CPI" means the Consumer Price Index, All Urban Consumers, U.S. City Average, All Items (1982-1984=100), published by the United States Department of Labor, Bureau of Labor Statistics. (vii) "Disposal Fees - Garbage" means the actual Disposal Costs paid by Company to SWS for Solid Waste delivered by Company to the Transfer Station during the Comparison Year. (viii) "Disposal Fees -Green Waste" means the actual Processing Costs paid by Company to CCC, PRS or any other Authorized Facility for Green Waste delivered by Company to the CCC facility, the PRS Facility or such Authorized Facility, respectively, during the Comparison Year. (ix) "Fuel Costs" means Company's actual costs for diesel and other fuels used in performing services under this Agreement during the Comparison Year. (x) "Fuel Index" means the California No.2 Diesel Retail Sales by all Sellers (Dollars Per Gallon) published by the U. S. Energy Information Administration. (xi) "Landfill Closure Costs" means the total amount of landfill closure fees, including any fees or charges adopted to replace or supplement such fees, paid by Company to City in accordance with Section 4 and 6.6 during the Comparison Year. (xii) "Recycle Credit" means the product of (A) the average monthly weighted average price (AMWAP) per ton PRS is required to pay to Company under the Recycling Agreement for Source Separated Recyclables collected by Company curbside from Residential Customers during the Comparison Year, but not less than $5.00, times (B) the total tons of such Recyclables so delivered by Company to PRS and accepted by PRS during the Comparison Year; provided, however, that if the amount of Recyclables rejected by PRS under Section 2 of the Recycling Agreement averages over any consecutive six month period more than 5% of the total Recyclables delivered to PRS ("the Acceptable Rejection Rate"), the credit shall include AMWAP, but not less than $5.00, times the tons of Recyclables rejected by PRS for that same six month period in excess of the Acceptable Rejection Rate . (xiii) "Total Costs" means all of Company's costs to provide Collection services under this Agreement, including, without limitation, labor costs, vehicle and vehicle- related costs, maintenance, insurance, and transportation costs, Fuel Costs and Pass Through Costs. (c) Rules. For purposes of Rate adjustments pursuant to this Section 6.2 and the Calculation, the following rules shall apply. (i) "CPI Change" shall be calculated as one hundred percent (100%) of the percentage increase or decrease, if any, in the CPI during the Comparison Year, using the CPI published for June of such Year as compared with the CPI published for June of the Base Year. (ii) "Fuel Index Change" shall be calculated as one hundred percent (100%) of the percentage increase or decrease, if any, in the Fuel Index from June of the Base Year through June of the Comparison Year; provided, however, that, notwithstanding Section 6.2(b)(iii) above, "Base Year" for purposes of the Fuel Index Change shall mean the year ended June 30, 2010; and, provided, further, that the Fuel Index Change adjustment (i.e., Fuel Index Change multiplied by Base Fuel Cost) for any Rate Adjustment Date shall be calculated after removal of such adjustment for the prior Rate Adjustment Date. 13 (iii) Each adjustment element in the first part of the Calculation will be grossed up for the corresponding increase or decrease in Franchise Fees and Billing Fees (where applicable) resulting from such adjustment, other than the CPI adjustment. (iv) Rate adjustments for changes in Commercial Oversight Fees or Landfill Closure Costs that take effect on a date other than January I", as well as changes in other Pass Through Costs, will be determined under Section 6.3 below and not under this Section 6.2. (d) Procedure. The procedure for Rate adjustments under this Section 6.2 shall be as follows: (i) Not later than August 15th of each year, Company shall file with the City Manager a written notice of intention to adjust each of the then current Rates effective as of January 1 st of the next year in accordance with Section 6.2(a) through (c) above. (ii) Within sixty (60) days of the filing of the notice of intention, the City Manager shall review the notice and either confirm that the proposed Rates are within the limit of Section 6.2(a) though (c) above or establish by mutual agreement with Company any necessary changes to the proposed Rates to make such confirmation. (iii) Not later than October 20`x', Tthe_City Manager _shalI_p< Formatted: Superscript inform the City Council in writing of his or her determination regarding-the proposedt-4e new Formatted: Font: 12 pt, Not Highlight Rates and the City Council shall be entitled to review and confirm that the proposed Rates are Formatted: Font: 12 pt, Not Highlight within the limit of Section 6.2 above or establish by mutual agreement with Company any necessary changes to the proposed Rates to make such confirmation, not later than November 20` .u in aeeordanee with this Seetion 6.2, with _aAny new Rates shallte become Formatted: Font: 12 pt, Superscript, Not effective on the following January 15`., provided that the Company_and the Cit sy hall ivg e the notice of the new Rates not later than December 1st. respective Customers that each bills written ' Formatted: Not Highlight - - - rv In the event that the CPI or the Fuel Index described in Section Formatted: Not Highlight 6.2(b) above shall be discontinued or materially modified during the term of this Agreement, the • Formatted: Not Highlight parties shall together select a replacement index and/or otherwise change Section 6.2(b) above so as to replicate, as nearly as possible, the mutual intention of the parties to rely on the results of the relevant index described in Section 6.2(b) as in effect on the date hereof. 6.3 Modification Based on Changes in Pass Through . In addition to adjustments under Section 6.2 above, each Rate shall be adjusted to reflect changes in Pass Through Costs that are not the subject of Rate adjustments pursuant to Section 6.2 above, as follows. Using the section of the Calculation entitled "Revenue Base," each Rate shall be increased by an amount equal to the increase in applicable Pass Through Costs, and decreased by an amount equal to the decrease in applicable Pass Through Costs, in each case so as to cause all the Rates to compensate for such change in Pass Through Costs as of the date such change becomes effective and either payable by or a benefit to Company, and taking into account the increase or decrease in Franchise Fees and/or Billing Fees payable in respect of such change. 6.4 Five Year Review. Once every five (5) years (beginning no later than April 2, 2016 for purposes of adjusting the Rates effective January 1, 2017), City shall conduct a review for the purpose of determining whether or not the automatic adjustments provided in Sections 6.2 and 6.5 have adequately adjusted the rates to cover the actual increase or decrease in the 14 Company's reasonable operating costs or have exceeded those costs and whether the Rates remain fair to the ratepayer and the Company. Depending on the results of that review the City may increase or decrease the rates. City shall complete each such review and adjustment, if any, at least three months (3) prior to the beginning of such year (by September 30, 2016 in the case of the first such review), and Company shall cooperate with such review. In conducting each such review, City shall consider the following information: financial records of Company (including operating expenses and revenues and Disposal, Processing, Regulatory and other costs of Company, and Company revenues), the factors described in Section 6.5 below, and rates charged for comparable services in similar communities. Increases or decreases in the Rates Formatted: Font: (Default) Times New pursuant to this Section 6.4 shall be subject to the notice and public hearing requirements of Roman Proposition 218. The City may conduct such investigation as it deems necessary to perform this Formatted: Font: (Default) Times New review and Company shall cooperate with such investigation, which may include the City's Wight inspection and copying of Company records and te~vReview and/or auEl-itAudit of Company ii Formatted: Font: (Default) Times New financial records by a City retained CPA, the costs of which shall be reimbursed to City from Roman Base Revenue but treated as a pass-through cost for rate setting purposes. Formatted: Font: (Default) Times New R 6.5 Modification Based on Extraordinary Items. In addition to adjustments under oman, UgLhjqhi~q~. Formatted: Font: (Default) Times New Sections 6.2, 6.3 and 6.4 above, Company may request an increase in the Rates if Company's Formatted: Font: (Default) Times New costs increase or its revenues decrease solely as the result of extraordinary circumstances beyond J Roman NOLH~oht its control that could not have been reasonably anticipated by Company (such as a Change in : , Formatted: Font: (Default) Times New Law) and if the increase in costs or decrease in revenues unavoidably adversely affects Roman Company's opportunity to operate at a reasonable profit. Company shall have the burden of Formatted: Font: (Default) Times New producing evidence reasonably- satisfactory to City demonstrating its need for a rate increase man Not Hia t prior to the regular Five Year Review pursuant to Section 6.4 above, including, but not limited Formatted: Font: (Default) Times New to, reviewed or audited financial statements of Company. if requested by City. The City Council i shall consider the request in good faith. Any such increase shall only be approved through the Formatted: Font: (Default) Times New notice and hearing requirements in Proposition 218. Formatted: Font: (Default) Times New 6.6 Billin Company shall bill - : Roman , Forma , tted: Font: (Default) Times New as these Residential Customers that it eun-enfly h_i]1s-hP_,f,-_."_d_P_.4 _ listed in Exhibit G ) directly -Mo; h+ for all Solid Waste, Rec clables and Green and Food Waste Collection services hereuridei y Formatted: Font: (Default) Times New provided herein to all Commercial and Institutional Customers. and to those Multi family oman Residential~Customers assigned by City to Company for billing Company and City sha11 , j Formatted: Font: (Default) Times New regularly exchange billing lists to avoid double billing and to insure that Company is following Roman. Not Highliaht the City's direction regarding its direct billing of .Multi. -Famil residential Customers. City shall . , - Formatted: Font: (Default) Times New 4 an bill all Residential Customers (except those currently billed by Company as approved by City) _ for all Solid Waste, Recyclables and Green and Food Waste Collection services hereunder. Each [ Formatted: Font: (Default) Times New . Commercial or Institutional Customer will be billed for one (1) month of service in advance Roman. Not H. nbliclht Formatted: Font: (Default) Times New upon commencement of service, and thereafter for one (1) month of service in arrears. Interest Rnm2n of one percent (1%) per month or the highest rate permitted under applicable law, whichever is Formatted: Font: (Default) Times New less, shall be applied to any past due amounts from all Customers until paid in full. Amounts ight shall be past due if not paid within thirty (30) days of billing. Company shall have the right to Formatted: Font: (Default) Times New refuse service to any Customer that is more than sixty (60) days delinquent on his, her or its Roman account; provided, however, that if the City is forced to take enforcement action against a Formatted: Font: (Default) Times New 15 Roman Customer who has been refused service, Company shall pay the City's costs to take such enforcement action as is necessary to protect public health and safety. Company shall pay City three percent (3%) of the amount billed by City to Residential Customers as a billing fee. City shall pay to Company all amounts billed to Residential Customers, less Billing Fees, Franchise Fees, commercial oversight fees and landfill closure costs (in accordance with Section 4 above), and a delinquency allowance equal to one-half percent (0.5%) of such billings, monthly within thirty (30) days of the end of the calendar month for which the Residential Customers are billed. When permitted by the City's accounting software, the City will reconcile the amount held by City as a delinquency allowance at the end of each calendar quarter and shall pay Company, within thirty (30) days after the end of such quarter, the portion of such amount that exceeds the actual delinquent billings for such quarter. 6.7 Proposition 218. Notwithstanding any other provision in this Agreement, in the event that the Rates or any modifications thereof are invalidated by a final non-appealable judgment in a court action challenging them as in violation of Proposition 218, and Company's operating costs exceed its revenue for a continuous period of six months since the date of the last Rate adjustment, Company shall have the right, exercisable by written notice to City within ninety (90) days after the entry of such judgment, to terminate this Agreement effective One Hundred Twenty (120) days after City's receipt of such notice. Provisions Applicable to Equipment and Personnel. 7.1 Company shall use in connection with transportation of Solid Waste modern motor dump trucks with water tight bodies, sufficient in number and capacity to efficiently perform the work required by this Agreement: and to comply with all applicable legal requirements. Company shall keep the outside of the truck bodies free from dirt and filth, and shall clean the inside of the trucks in a sanitary manner on a regular basis. Suitable measures shall be taken to prevent refuse from falling into public streets or places. Company shall keep all trucks freshly painted in a uniform manner, and the firm name or logo, telephone number, and truck number of each truck shall appear in a conspicuous manner. Company shall keep all trucks in good maintenance and repair, regularly inspect same, and-keep accurate records of all vehicle maintenance. and replace as needed. 7.2 Company shall not litter premises in the process of making collections nor allow refuse to blow or fall from any vehicle used for collections. Company shall clean up any and all spills, including oil and debris on the streets, resulting from its operations. Should Company fail to promptly clean up such spills resulting from its operations after notice from City, Company shall be liable to City for all reasonable costs incurred by City in doing so. 7.3 Company shall provide suitable operational and safety training for all of its employees who utilize or operate vehicles or equipment for Collection of Solid Waste or who are otherwise directly involved in such Collection. Company shall use its best efforts to assure that all employees present a neat appearance, conduct themselves in a courteous manner, and perform the work as quietly as possible. Company shall also designate one or more qualified employees 16 as supervisors of field operations, who will devote a substantial portion of their time in field checking Collection operations, including responding to complaints. 7.4 City officials shall at all times have access on 24 hours' prior written notice to inspect Company's work during operations and Company's facilities for purposes of ascertaining full knowledge respecting the conduct of Company's operations. 8. Records and Reports. 8.1 Company shall keep and maintain accurate books and records in accordance with the most recently adopted Accounting Standards Codification of generally accepted accounting principles by the Financial Accounting Standards Board clearly showing its revenues and expenses in connection with the operations provided for in this Agreement. Company shall maintain records accounting by category for the tonnage of Solid Waste, Green Waste, Food Waste and Source Separated Recyclables Collected pursuant to this Agreement on a monthly, quarterly and annual basis. 8.2 Every three (3) months after the Effective Date through the date which applies for purposes of measuring compliance with the diversion requirements of AB 939, Company shall supply City with a written report setting forth Company's best estimate of the diversion rate as of the end of the most recent month. Company shall also supply City with such related information as City may reasonably request and as Company possesses or is required by this Agreement to possess concerning such estimate. 8.3 Every three (3) months after the Effective Date, Company shall provide City with a written financial report on the amounts billed by Company to each Multi-Family Residential, Commercial and Institutional Customer and the amounts paid by such Customer. 8.4 Not later than March 31 each year, or when otherwise requested by City, Company shall provide City with a complete customer list for all Customers with the service type, billing rate, and name and address of each Customer. 9. Hold Harmless and Insurance. 9.1 Company shall indemnify and hold harmless City, its City Council, boards, commissions, officers, agents, representatives and employees from any and all actions, claims or damages brought for or on account of injuries to or death of any person or damage to property of all kinds resulting from or arising out of the operations of Company, its officers, agents, employees or servants pursuant to this Agreement. The duty of Company to indemnify and hold harmless shall include the duty to defend as set forth in California Civil Code Section 2778. 9.2 Company shall have in effect during the term of this Agreement, workers' compensation and employer liability insurance providing full statutory coverage. 17 9.3 Company shall take out and maintain during the term of this Agreement liability insurance for the following types and minimum amounts: (a) General liability, including comprehensive form, premises operations, products/completed operations, hazard, contractual insurance, broad form property damage, independent contractors and personal liability, with limits for bodily and property damage combined of $500,000 each occurrence and $500,000 aggregate. (b) Automobile liability, including comprehensive form, owned, hired and non- owned, with a limit of $1,000,000 for bodily injury and property damage combined. (c) Excess liability, umbrella form with the same scope of coverage and exclusions as the underlying policies, with a limit for bodily injury and property damage combined of $5,000,000 each occurrence and $5,000,000 aggregate. (d) Pollution and remediation liability with limits in an amount of not less than one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) annual aggregate insuring against loss, the cost of remediation and legal defense as a result of pollution conditions arising out of the collision, upset or overturn of Company vehicles in conjunction with this Agreement. Insurance certificates and policy endorsements evidencing the required coverage shall be filed with City and shall be subject to approval by the City Attorney. City, its City Council, boards, commissions, officers, agents and employees shall be named as additional insureds on any such policies of insurance which shall also contain a provision that the insurance afforded thereby shall be primary. No such policy shall be cancelled or modified except upon thirty (30) days' prior written notice to City. Insurance is to be placed with admitted California insurers with an A.M. Best's rating of no less than A- for financial strength, AA for long-term credit rating and AMB-1 for short-term credit rating. 9.4 Company shall post a $300,000 performance bond or financial instrument reasonably acceptable to the City Manager as security for Company's faithful performance of each and every term, covenant and condition of this Agreement to be performed by Company, provided that the cost of such bond or other instrument shall be included in Company's Collection Costs for rate making purposes. 10. Remedies upon Default. 10.1 Company shall be deemed in default in the event Company defaults in the performance of any of the duties to be performed by it under the terms of this Agreement and fails to cure the default as further provided in this Section 10.1. City shall give Company written notice, either by mail or by personal service, setting forth the default. Company shall correct such default within thirty (30) days after receipt of such notice (within seven (7) days if City determines that the public health or safety is at risk) unless the default cannot, by its nature, be cured within said period, in which case the cure period shall be extended for such additional time as is reasonably necessary to effect a cure, provided that Company shall commence efforts to effect a cure as soon as practicable and shall diligently pursue the cure to completion. 18 10.2 In the event Company's default described in Section 10.1 is of a material provision of this Agreement and is not cured as set forth in Section 10.1 or if Company has committed Multiple Breaches (defined to mean three or more defaults of material provisions of this Agreement within an eighteen (18) month period, whether cured or not) ("Material Default") City shall have the following remedies: 10.2.1 Liquidated Damages. The parties acknowledge that City will incur damages as a result of a Material Default, and that such Material Default may not warrant termination of this Agreement. The parties agree that as of the time of the execution of this Agreement, it is impractical, if not impossible, to reasonably ascertain the extent of damages which shall be incurred by City as a result of a Material Default. The factors relating to the impracticability of ascertaining damages include, but are not limited to, the fact that: (i) substantial damage results to members of the public who are denied services or denied quality or reliable service; (ii) such breaches cause inconvenience, anxiety, frustration, and deprivation of the benefits of the Agreement to individual members of the general public for whose benefit this Agreement exists, in subjective ways and in varying degrees of intensity which are incapable of measurement in precise monetary terms; (iii) that exclusive services might be available at substantially lower costs than alternative services and the monetary loss resulting from denial of services or denial of quality or reliable services is impossible to calculate in precise monetary terms; and (iv) the termination of this Agreement for such breaches, and other remedies are, at best, a means of future correction and not remedies which make the public whole for past breaches. Liquidated damages shall be the City's exclusive damages remedy for any individual Material Default which does not result in termination of this Agreement by City. The amount of liquidated damages is $1,000 for each day the Material Default continues after Company fails to cure until it is either cured or the City terminates this Agreement. 10.2.2 Franchise Termination. Without further notice and without suit or other proceedings, City may cancel and annul the rights and privileges of this Agreement upon a Material Default. In the event of termination of this Agreement for Material Default, City shall have the right forthwith to grant a franchise to another scavenger service or to take possession of trucks and other equipment of Company used to perform work under this Agreement. City shall have the right to retain possession of the trucks and equipment until other suitable trucks and equipment can be purchased or otherwise acquired by City for the purpose and City shall pay Company the reasonable rental value of such trucks and equipment, and keep them in good maintenance and repair, during the time the same are used by City. City shall also have access to Company's records for the purpose of billing service accounts during the period City is providing the services described in this Agreement, and shall retain all fees collected for such services. 10.2.3 Other Remedies. Upon termination of this Agreement based on a Material Default, City shall have all other remedies in law or equity for such Material Default. 10.3 If a dispute arises between City and Company regarding fees or any other term or provision of this Agreement, the parties agree to meet and confer in good faith to resolve the dispute. Either party may request to meet and confer by written notice to the other party. 19 Alternatively, the parties may agree to participate in non-binding mediation. If the dispute is not resolved within thirty (30) days after the written request to meet and confer has been given or after the parties have agreed to non-binding mediation, the matter, other than an action seeking specific performance or other equitable relief, damages of Twenty Five Thousand Dollars ($25,000) or less, or indemnification or insurance coverage pursuant to Section 9, shall be submitted to non-binding arbitration in accordance with Title 9 of the California Code of Civil Procedure, commencing with Section 1280, before a single neutral arbitrator ("Arbitrator") in Mendocino County. The Arbitrator shall be an attorney with at least ten (10) years' experience or a retired judge (or a person having comparable qualifications) and shall be mutually agreed upon by the parties. If the parties are unable to agree on an Arbitrator, the Arbitrator shall be appointed by the superior court in accordance with Cal. Code Civ. Proc. § 1281.6. The fees and expenses of the Arbitrator shall be borne equally by the parties. In the event such non-binding arbitration does not resolve the matter and in any other dispute that results in any court action, the parties waive any right to a jury trial and agree that any such action shall be filed in the federal or state courts in or for Mendocino County, each party hereby consents to the jurisdiction of and venue in such courts, the matter shall be governed by the internal laws of the State of California (irrespective of choice of law principles), and the prevailing party shall be entitled to recover its reasonable attorneys' fees, costs and disbursements incurred in such action from the non-prevailing party. 10.4 If Company shall at any time during the term of this Agreement or any extension thereof, become insolvent, or if proceedings in bankruptcy shall be instituted by or against Company, or if Company shall be adjudged bankrupt or insolvent by any Court, or if a receiver or trustee in bankruptcy or a receiver of any property by Company shall be appointed in any suit or proceeding brought by or against Company, or if Company shall make an assignment for the benefit of creditors, then and in each and every such case, and provided that such proceedings, adjudication, appointment or assignment, as the case may be, continue in effect for ninety (90) days without being vacated, removed or withdrawn, this Agreement shall immediately cease and come to an end, and the rights and privileges granted shall immediately be cancelled and annulled without notice or action required on behalf of City. 10.5 Notwithstanding any other provision herein, no default, delay or failure to perform on the part of either party shall be considered a breach hereunder if such default, delay or failure to perform is due to causes beyond such party's control, including, but not limited to, riots, civil disturbances, actions or inactions of governmental authorities, epidemic, war, embargoes, severe weather, fire, earthquake, acts of God, defaults by the other party or defaults by carriers. In the event of any such default, delay or failure to perform, any dates or times by which the affected party otherwise is scheduled to perform shall be extended for a period of time equal in duration to the additional time required because of the excused default, delay or failure to perform. 11. Assi ng ment. Company shall not directly or indirectly, voluntarily or involuntarily assign, mortgage, pledge or encumber any interest in all or a part of this Agreement without the prior 20 written consent of City. The City Council shall have the right to determine in its sole discretion whether to approve, conditionally approve or deny any request by Company for approval under this Section. Any action requiring City Council approval under this Section that occurs without such approval shall give City the right to terminate this Agreement without prior notice to Company or its successors or assigns. For purposes of this Section, any transaction involving the transfer, sale or exchange of stock which results in a change in majority control of Company from its owners as of the date hereof (excluding transfers between such owners and transfers by any such owners to revocable living trusts for the benefit of their families) shall be an assignment subject to City review and approval. 12. Waiver. The waiver by either party of any breach or violation of any term or condition of this Agreement or of any provision of law by the other party must be in writing signed by the party to be charged, and shall not be deemed to be a waiver of the term, condition or provision of law, or of any subsequent breach or violation of the same or any other term, condition or provision of law. The acceptance by City of any franchise fee or other fee or other monies which may become due hereunder to City shall not be deemed to be a waiver of any preceding breach or violation by Company. 13. Administration. The administration and enforcement of this Agreement shall be the responsibility of the City Manager or a designated representative of that office. This section is not intended to indicate or suggest the City Manager has the authority to grant, amend, or revoke the franchise referenced herein. Nothing contained in this Agreement shall prohibit the City Manager from seeking approval from the City Council for any decision the City Manager is authorized to make under the terms of this Agreement. 14. Independent Contractor. Company, its employees and agents, are independent contractors and not employees or agents of City. 15. Notices. Whenever a notice or document is required or permitted to be served or given hereunder, it shall be deemed given or served when received if delivered by fax or email (with acknowledgment of receipt), certified U.S. Mail, overnight courier (such as UPS or Federal Express), or 48 hours after deposit in the U.S. Mail with first class postage affixed. Any such document or notice shall be addressed as follows: City: City Manager Ukiah Civic Center 300 Seminary Avenue Ukiah, California 95482 FAX: Email: Company: Ukiah Waste Solutions, Inc. Attn: David M. Carroll, President P. O. Box 60 21 Ukiah, California 95482 FAX: Email: or to such other person or address as may be specified from time to time in writing by either party in accordance with this Section. 16. Amendments. This Agreement may be amended from time to time only by written agreement between the parties signed by an authorized representative of each party. Either party may at any time request that the service or other provisions in this Agreement be modified by delivering written notice of its requested modifications to the other party. Within thirty (30) days after receipt of any such request, the parties shall meet and negotiate in good faith on adopting such requested modifications, including, without limitation, any change to the Rates necessitated by such modifications, provided that nothing herein shall obligate either party to agree on any such requested modifications. 17. Successors and Assigns. This Agreement shall be binding upon, and shall inure to the benefit of, the permitted successors and assigns of the parties. 18. Integration; Severability. This Agreement, including the Exhibits hereto, constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous agreements between the parties, whether written or oral, relating to such subject matter, including the Prior Agreement. If a court finds any provision of this Agreement invalid or unenforceable as applied to any circumstance, the remainder of this Agreement and the application of such provision to other persons or circumstances shall remain in effect. The parties further agree to replace such void or unenforceable provision with a valid and enforceable provision which will achieve, to the extent possible, the economic, business and other purposes of the void or unenforceable provision. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above. Ukiah Waste Solutions, Inc. By: President City of Ukiah By: City Manager 22 ATTEST: City Clerk APPROVED AS TO FORM: City Attorney 23 EXHIBIT A WASTE MANAGEMENT STRATEGIC PLAN 24 EXHIBIT B RECYCLABLE MATERIALS AGREEMENT 25 EXHIBIT C CURBSIDE RATE CALCULATION 26 EXHIBIT D AGREEMENT FOR RECEIPT OF WOOD AND GREEN WASTE 27 EXHIBIT E INITIAL SERVICE RATES The current rate chart is attached. Commercial Green Waste collection is charged at the same rates as Commercial Solid Waste. The chart will need to be expanded to clarify that for Single Family Residences, the Solid Waste rate includes Recyclables and Green Waste, and that for Multi-Family Residences and Commercial Solid Waste, Recyclables and Green Waste collection are all billed at the cart rates listed. Rates to collect and dispose of sludge will be competitive with current rates. Insert replacement/additional cart/container fees. 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U ~ i O O ~ C) ~ U Q j N ~ 0 4 v a~ 4-1 V) ce 0 W V J 00 N 0 0 0 O F- 0 ~ LL LL C) rd ce Q m N m N N N 4-J .-J •-J V c~ O O 0L O W ~ V O _ M 0 4md aJ O E 0 ~ X O > rz to V IV -0 C O W O Q C O -0 s O W O `v O O O O O O = M L ~ O O cn CD -.0 L N O 4O rz ~O 4-1 E In . - X O O O s ~ 0 O m N 17 M% t4wa tA O i LA W CL 1.11 a--a E i Cie N Pn Q 00 O O 00 O O I" 00 M I~ 00 O O 00 O O QO N O N O O O O O O O O N O N O O O O O 00 00 N d" M a--+ V) ^ U Q I\ i O E U N O V, 'n 0 w M v J O _ 4-, ~ 4-j 0 0 O 4-J V) LL LL (V Q C0 r r- r- N LL M L L O M 0 C) 00 00 a) M M r r N L 0 u 4-0 O 0 C) C) 0) 0 r NT r r- 0 0 a--0 4.1 O 0 00 1- I;i ern (D CD co 4-0 d N EXHIBIT B RECYCLABLE MATERIALS AGREEMENT THIS RECYCLABLE MATERIALS AGREEMENT (the "Agreement") is entered into as of , 2011 by and between Pacific Recycling Solutions, Inc. ("Buyer") and Ukiah Waste Solutions, Inc. ("Seller"). Seller and Buyer shall collectively be referred to herein as the "Parties." WHEREAS, Seller is in the business of collecting and transporting solid waste and recyclable materials; and Seller WHEREAS, Buyer wishes to purchase and Seller wishes to sell recyclable materials collected by NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, Seller and Buyer hereby agree as follows: 1. Recyclable Materials. During the term of this Agreement, Buyer agrees to purchase and Seller agrees to sell all of the type(s) of recyclable materials identified in Exhibit A attached hereto and incorporated herein collected by Seller curbside from single-family residences within the California City of Ukiah ("Recyclable Materials"). The Recyclable Materials shall meet the standards and specifications set forth in Exhibit A or such other standards and specifications as shall be agreed upon in writing by Seller and Buyer. 2. Delivery::=T, Delivery of the Recyclable Materials shall be made from Seller to Buyer's facility located at 4260 North State Street, Ukiah, California and/or 3501 Taylor Drive, Ukiah, California, commonly known as the Materials Recycling Facility (the "MR]"'), in accordance with a schedule as agreed upon in advance by Buyer and Seller. Bu er shall be entitled inspeet the Reeyelable Materials and. in aeeerdanee 3,N,kh this Seetion, shall have !he Fight to rejeet and return to Seller any Reeyelable Matefials that afe nat in eanformanee with the standards and speeifleations set forth Seller in wfiting prior- to the elose of business on the day Buyer receives stieh non eenfefffling Reeyelable fbffei! Buyef's right to fejeet non eonferffling Reeyelable Materials. Buyer shall fie! be ebligated to pay Seetk)n but shall bear all eests asseeiffted with inspeeting, testing and rejeeting any non eenfeffning Reeyelable Maierials. Buyer shall provide month!y reports to Seller set4ifig fei4h the affieuHt by weight and the pereentage ofReeyelable Materials rejeeted by Buyer. 3. Pricing; Payment. Buyer shall pay Seller the price per ton. as calculated each year. determined in Exhibit B attached hereto and incorporated herein, but not less than $5.00, for each ton of Recyclable Materials that is received al ea by Buyer in accordance with Section 2. The Recyclable Materials shall be weighed at Seller's or Buyer's facility, as agreed by the parties, and proof of weight shall be provided to Seller. Seller shall, on a monthly basis, transmit an invoice to Buyer showing the types and number of tons of Recyclable Materials received by Buyer hereunder during the preceding month and the total amount due therefor. Buyer shall remit to Seller the full amount due no later than the fifteenth (15th) day of the month following the month in which Recyclable Materials were received by Buyer. Within thirty (30) days after the end of each year of the term of this Agreement, the Parties shall conduct a true-up of the amounts paid and the amounts owed hereunder, with UWS returning any overpayment to PRS and PRS paying any underpayment to UWS. Each late payment shall be subject to a late fee of one and one-half percent (1-1/2%) and shall bear interest at the higher of 10% per annum or the highest rate permitted by applicable law until paid in full. Page 1 4. Term; Default; Termination. 4.1 Subject to Section 9 below, the term of this Agreement shall be for a period commencing on January 1, 2012 (the "Effective Date") and ending upon the expiration or termination of Seller's Waste Collection Agreement with the City of Ukiah of even date herewith, including extensions, subject to earlier termination on the terms herein. 4.2 If at any time either Party determines or becomes aware that the other Party is in default under or has breached any of the terms of this Agreement, the non-defaulting Party shall provide written notice to the other Party as to the nature of such default. If the defaulting Party fails to make any payment due hereunder within five (5) days, and/or fails to cure any default in the performance of any other obligation under this Agreement within thirty (30) days, after receipt of such written notice, the non- defaulting Party shall have the right to terminate this Agreement upon giving written notice; provided, however, that, other than for failure to make any payment hereunder, in the event the defaulting party shows cause why it should be entitled to reasonable additional time to cure a default, the non-defaulting Party shall allow such reasonable additional time to cure. 5. Representations and Warranties. In performing this Agreement, each of the Parties shall fully comply with all applicable federal, state and local laws, ordinances, decisions, orders, rules or regulations. Each of the Parties shall, and shall cause any carrier with which it contracts to, handle and transport the Recyclable Materials in a safe and workmanlike manner and all of the Parties' driver personnel and any carrier with which the Parties contract are, and shall at all times relevant to the performance of this Agreement remain, properly licensed and otherwise fully qualified to perform the services required hereunder. By the commencement date of this Agreement and throughout the term of this Agreement and any extension thereof, each Party shall be duly licensed, permitted and authorized pursuant to all applicable federal, state and local laws to handle and transport the Recyclable Materials and each Party's facility or facilities will have been issued all licenses, permits and authorizations required by all applicable federal, state and local laws to handle Recyclable Materials. 6. Indemnification. Each Party hereto (the "Indemnitor") hereby agrees to indemnify, hold harmless and defend the other Party, and its owners, officers, directors, employees and agents (collectively, the "Indemnitees"), from and against any and all liabilities, penalties, fines, forfeitures, demands, claims, causes of action, suits, judgments and costs and expenses incidental thereto, including reasonable attorneys' fees (collectively, "Damages"), which any or all of the Indemnitees may hereafter suffer, incur, be responsible for or pay out as a result of personal injuries, property damage, or contamination of or adverse effects on the environment, to the extent directly or indirectly caused by, or arising from or in connection with the breach of any representations and warranties set forth in this Agreement of, the Indemnitor, or any negligent or intentional actions or omissions or willful misconduct of the Indemnitor, its employees, officers, owners, directors or agents in the performance of this Agreement or the transportation, handling or disposition of the Recyclable Materials by the Indemnitor, its employees or subcontractors. Such indemnity shall be limited to exclude Damages to the extent they arise as a result of any negligent or intentional actions or omissions or willful misconduct of the Indemnitees or their employees, officers, owners, directors or agents. If any claims indemnified against under this paragraph have the potential for coverage under any insurance, then the indemnities set forth in this Agreement shall apply only to the extent the amount of any indemnified claim exceeds all amounts collected under any insurance covering such claim. Before pursuing recovery under this indemnity, the Indemnitees shall exhaust all recovery available for such claim from insurance. 7. Insurance. Each of the Parties shall obtain and maintain during the term of this Agreement commercial general liability insurance which conforms to the industry standard for the services being performed by each hereunder and workers' compensation insurance that complies with applicable state statutory requirements. Page 2 8. Assi anent. This Agreement shall be binding upon the successors and assigns of the Parties hereto; provided, that no assignment of this Agreement shall be binding upon the other Party without the other Party's consent, which consent shall not be unreasonably withheld or delayed; and provided further, that no assignment shall be valid and binding which endeavors to relieve the assigning Party of any obligations to make payments hereunder which accrued prior to the date of assignment or in which the assignee does not affirmatively agree, in writing, to assume all obligations of the assignor under this Agreement._ No assignment can be made without the prior written approval of the City of Ukiah, exercising its rights in accordance with Section 11 of the Waste Collection Agreement between UWS and the City of Ukiah. 9. Force Majeure. Except for the obligation to pay for Recyclable Materials received by Buyer, the performance of this Agreement may be suspended to the extent that and for so long as either Party's obligations hereunder are delayed or hindered by a cause or causes beyond the reasonable control of such Party. Such causes shall include, but not be limited to, acts of God, landslides, lightning, forest fires, storms, floods, freezing, earthquakes, civil disturbances, strikes, lockouts or other industrial disturbances, acts of the public enemy, wars, blockades, public riots, breakage, explosions, or other similar causes. 10. General Provisions. (a) No waiver by either Party of any one or more defaults or breaches by the other in the performance of this Agreement shall operate or be construed as a waiver of any future defaults or breaches, whether of a like or different character. If any provision of this Agreement is declared invalid or unenforceable, then such portion shall be deemed to be severable from this Agreement and shall not affect the remainder hereof. (b) This Agreement and all Exhibits hereto represent the entire understanding between the Parties and no representations, statements or agreements, unless agreed to by the parties in writing, shall modify, change, amend or otherwise affect the obligations undertaken in this Agreement. This Agreement supersedes, as of the Effective Date, the prior Recyclable Materials Agreement between the Parties and Solid Wastes Systems, Inc. dated November 1, 2007, and may only be amended by a written agreement executed by Seller and Buyer. (c) All notices under this Agreement shall be in writing and shall be effective if delivered personally or sent by certified mail, postage prepaid, or by overnight carrier or confinned facsimile to the addresses set forth on the signature page hereto or to such other address as either Party shall specify by written notice so given. Any notice sent by mail shall be deemed given and received three (3) business days after the date deposited in the mail. Any notice given by personal delivery or sent by overnight carrier or confirmed facsimile shall be deemed given upon receipt. (d) The validity, interpretation and performance of this Agreement shall be governed and construed in accordance with the internal laws of the state of California, irrespective of choice of law principles, and applicable federal laws and regulations. (e) The City of Ukiah shall be considered a third party beneficiary of this Agreement.- with all of the rights of a party to enforce the provisions of this Agreement. Page 3 EXECUTED and effective as of the Effective Date. Pacific Recycling Solutions, Inc. By: Its: Ukiah Waste Solutions, Inc. By: Its: Address for receipt of notices: Address for receipt of notices: Page 4 EXHIBIT A TYPES, STANDARDS & SPECIFICATIONS OF RECYCLABLE MATERIALS Material Specifications During the course of operations, any changes to the material specifications for any inbound commodity will be agreed to by both Parties prior to introduction of the new commodity. Residential Materials Materials collected through curbside recycling include: glass bottles and jars, tin and aluminum cans, aluminum foil, plastic food and beverage containers (41-47) and milk and juice cartons, newspaper, OCC, magazines, junk mail, chipboard, white and office paper, and telephone books. Inbound materials may not contain more than 5% reject material. Commercial Materials Clean Corrugated Containers Consists of baled or loose corrugated containers having liners of either test liner, jute or kraft. Prohibitive materials ..............................................1% Total Outthrows may not exceed ................................5% Mixed Office Paper Consists of office fiber waste including envelopes, files, file folders, white ledger, color ledger, CPO, copy paper (coated or uncoated), brochures, forms and associated staples, clips, bindings and bands. • Prohibitives include glass, food, shredded paper, restroom waste and hospital waste. Total outthrows may not exceed 5%. Page 5 EXHIBIT B Pricing Schedule (a) Annual Calculation of Tonnage Payment. The price per ton of Recyclables delivered by Seller to Buyer during any calendar year shall be calculated in accordance with Table 1 below. Table I Tier• CMV* Tier 1• $167.69 and below Tier 3_ Above $167.69 to $200 Tier 3 Above $_2.00 to $280•- Tier 4• Above $280 Tier CMV Cap Base Fee and % of Tier Differences $ 167.69 $5.00` - $ 200, Plus of CMV above $167.69 up to $200 5.00°/ fl- $ 280 Plus of CMV above $200 up to $280 10.00% Plus ofCMV above--- 15.00°/q-------------------------------------------,, *CMV means weighted average "Composite Market Value" computed according to (b) below By way of example, using the tiers forth in Table 1, Buyer shall pay for each ton of Recyclables delivered as follows: If the CMV is $167.69 or below, Buyer shall pay $5.00 per ton delivered; If the CMV is above $167.69 but not above $200, Buyer shall pay $5.00 plus 5% of the excess of the CMV over $167.69 per ton delivered; If the CMV is above $200 but not above $280, Buyer shall pay $5.00 plus $1.62 ($200 minus $167.69 times .05) plus 10% of the excess of the CMV over $200 per ton delivered; and If the CMV is greater than $280, Buyer shall pay $5.00 plus $1.62 ($200 minus $167.69 times .05) plus $8.00 ($280 minus $200 times. 1), plus 15% of the excess of the CMV over $280 per ton delivered. 1.1 (b) Annual Commodity Material Value (CMV). The CMV for each calendar year during the term of the Agreement (commencing with 2012) shall equal the CMV calculated by the following per ton weighted profile, with each category of Commodity being multiplied by the monthly annual average actual market price. using June to June values preceding that year, for such Commodity, including any California Redemption Value, for such year, FOB at the PRS Facility. The Composition percentages and/or the commodity categories in the first eetwo columns below shall be reviewed every five (5) years after the Effective Date (beginning January 1, 2017)-.) and may be revised by the mutual agreement of the parties to reflect actual curbside collections. 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Weighted.,,,,,----- - Formatted ComPositior Commodity Value/To CRV/To Value/To 11 l - y = Formatted 12 I. - - Formatted [13] 16.750/q OCC_#11------------------- $_140.50 $23.53`----------------------------c---Formatted [141 23.07°/q ONP #7 - $155.00 $35.76 - - - - - - 21.01°/q Mixed Paper, $155.09, $32.57 Formatted (isl ` . Formatted 161 0.53°/q HDPE Color $477.50 $120.00 $3.17 _ _ - ° ' • ' Formatted =.1 0.51°/q HDPENatura.__ __$587.50 $120.00 $3.61 S Formatted 1.94°/g PETS $626.50 $1,160.00 $34.66` - ~t;,„',,,,, [181 1.25°/ #3 #7 MRP $11.50 _ $0.14 Formatted 19] 9- • ~l 1.820/. ..Tig $1-50.00, $2.73 Formatted f2o] 24.41°/ Glass 3 Mix $40.00 $72.00 $7,81 lliP:Formatted [211 0.71°/g Alum Cant $1,479.50 $2,700.00 $29.67 Formatted [22] 8.00°/ Residual ($74.50) ($5.96) Formatted [231 - Formatt ed Total Composite Market Value Per To $167.69 241 - Formatted =.2 , L dnl; Formatted [261 Formatted 271 J Formatted Formatted Formatted 1.2%s%';',,;° 30 Formatted 31 Formatted %'i•I 32 %p ,111 Formatted [331 Formatted ✓ ppg Formatted . 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Garbage Less Disposal Fees - Green Waste Less City Landfill Closure Costs Less City Commercial Oversight fee Collection Costs before Recycle Credit Recycle Credit Collection COSTS Subject to CPI adj. increase/ Decrease Index Allowed $2,819,380.47 $200,641.15 Fuel $ 71,869.66 $693,250.45 SWS TS Gate $ 39,099.33 $72,000.00 Negotiated $ - $60,000.00 Set by City $ - $9,999.96 Set by City $ - $1,783,488.91 -$16,056.55 $1,767,432.36 CPI $ 62,920.59 $ 173,889.58 TOTAL Revenue base Residential Commercial Roll Off Total Revenue 29.44% 67.79% 2.77% 100.00% 2010 Revenue $806,433.60 $1,856,695.20 $75,811.40 $2,738,940.20 Fuel Cost Disposal Fees - Greenwaste Landfill closure cost Commercial Oversight fee Other Regulatory & Governmental Costs Disposal Fees - Garbage CPI adjustment Total before franchise and billing fees Franchise Fee Billing Fee Adjusted revenue Revenue Increase $21,160.78 $48,719.59 $1,989.29 $71,869.66 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $11,512.12 $26,504.97 $1,082.23 $39,099.32 $18,525.88 $42,653.12 $1,741.59 $62,920.59 $857,632.38 $1,974,572.88 $80,624.51 $2,912,829.77 $5,976.75 $13,274.92 $542.03 $19,793.70 $1,195.35 $0.00 $0.00 $1,195.35 $864,804.48 $1,987,847.80 $81,166.54 $2,933,818.82 $58,370.88 $131,152.60 $5,355.14 $194,878.62 Rate increase as a percent 7 Page 1 of 4 Ukiah Waste Solutions Curbside Rate Components Annual Adjustment Calculations Effective Date January, 2012 Fuel - June to June (Fuel Index) June 2010 June 2011 Index Increase (Decrease) $3.102 $4.213 $1.111 Fuel % Change 35.82% CPI - June to June (Index) June 2010 June 2011 Index Increase (Decrease) 217.965 225.722 7.757 CPI % Change 3.56% Transfer Station Fee (Disposal Fees - Garbage) Jan to Jan January 2011 January 2012 Increase (Decrease) $74.50 $78.70 4.200 Transfer Station Fee % Change 5.64% Green Waste Disposal Fee (Disposal - Green Waste) Jan to Jan January 2011 January 2012 Increase (Decrease) $30.00 $30.00 $ - Disposal Fee - Green Waste % Change 0.00% Landfill Closure Costs Jan to Jan January 2011 January 2012 Increase (Decrease) $60,000.00 $60,000.00 $ - Landfill Closure Costs % Change 0.00% Commercial Oversight Fee Jan to Jan January 2011 January 2012 Increase (Decrease) $10,000.00 $10,000.00 $ - Commercial Oversight Fee % Change 0.00% Recycle Credit June to June Tons Value/Ton Credit June 2011 3,211.31 $5.00 $ 16,056.55 Recycle Credit $ 16,056.55 City Franchise Fee 15% City Billing Fee - 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PRS owns and operates a green waste and wood waste processing facility located at 4260 North State Street, Ukiah, California (the "Facility"). B. The Facility is fully permitted to accept and process Green Waste and Wood Waste, as defined below ("Materials"). C. SWS is party with the City of Ukiah to that certain Amended and Restated Transfer Station Agreement of even date herewith for the operation of the Ukiah Valley Transfer Station for the receipt, collection, transportation and disposal of municipal, commercial and industrial solid waste (the "TS Agreement"), and UWS is party with the City of Ukiah to that certain Waste Collection Agreement of even date herewith for the collection and disposal of solid waste (the "Collection Agreement"). SWS and UWS desire to enter into an agreement with PRS which will provide for disposal of approximately 10,000 tons, but without limit subject to the Facility's permitted capacity, -annually of Materials at the Facility. In consideration of the aforementioned recitals and upon the terms and conditions herein set forth, the parties hereto agree as follows: Definitions: The following terms shall have the respective meanings set forth below: "Green Waste" shall mean green trimmings, grass, weeds, leaves, prunings, branches, dead plants, brush, tree trimmings, dead trees, small wood pieces and other types of organic yard waste, provided that dead trees and branches may not exceed six (6) inches in diameter and four (4) feet in length. "Wood Waste" shall mean clean pieces of unpainted and untreated wood. "Process" shall mean handle, grind or chip and recycle Materials. 2. Agreement to Accept Materials: PRS agrees to accept and Process all Materials collected at SWS's transfer station or collected by UWS, as provided for under the TS Agreement and the Collection Agreement, and delivered by SWS or UWS to the Facility, on the terms herein. 3. Processing Rate: As consideration for the receipt and proper Processing by PRS of the Materials delivered by SWS and UWS, SWS and UWS shall each pay PRS a fee of Thirty Dollars ($30.00) per ton for Materials received by PRS at the Facility from SWS and UWS, respectively, as adjusted pursuant to Paragraph 4 herein (the "Processing Rate"). Fees shall be paid by SWS and UWS within thirty (30) days of receipt from PRS of a written invoice detailing the amount of Materials received by PRS for each month. 4. Adjustment of Processing Rate: Adjustment based on CPI: PRS shall have the right, commencing on July 1, 2012 and annually thereafter, to increase the Processing Rate by a percentage equal to the percentage increase, if any, in the Consumer Price Index, All Urban Consumers, U.S. City Average, All Items (1982-1984=100), published by the United States Department of Labor, Bureau of Labor Statistics ("Index"), for the preceding year, using the Index published for the month nearest the beginning and the month nearest the end of such year. Notwithstanding any other provision herein, to the extent any government having jurisdiction over the Facility should impose any fee or tax ("Government Tax") on the Facility associated with the Processing of Materials, the Processing Rate shall be increased by the amount of such Government Tax, either at the per ton rate of such Tax or if such Tax is not assessed on a per ton basis, in the proportion that the total tonnage of Materials PRS reasonably projects to accept from SWS an UWS during the period for which the Government Tax will pertain compared with other users of the Facility. On each adjustment of the Processing Rate, PRS shall deliver to SWS and UWS written notice stating the adjusted Processing Rate. If PRS forgoes the application of a CPI adjustment in any year, that adjustment will be treated as a zero increase (decrease) in subsequent years, and shall not be retroactively. romped. b. Five year review: Every five years the parties and the City of Ukiah ("CAYD shall review the gate fee to determine whether changes in the market for green and wood waste warrant an adjustment in the gate fee to account for changes in the cost of processing and the income produced from processed green and wood waste. If processing costs have become substantially more or less and/or the income produced from processed material has substantially increased or decreased over the five year period, the rates shall be adjusted to account for these changes. 5. Term of Agreement: This Agreement shall expire as to each of SWS and UWS on the expiration of the TS Agreement or the Collection Agreement, respectively, including extensions, subject to earlier termination, as follows. PRS, on the one hand, and either of SWS or UWS, on the other, shall be entitled to terminate this Agreement in the event of the other party's material breach hereof unless such breach is cured within thirty (30) days after written notice thereof. This Agreement shall terminate automatically as to any party in the event of such party's insolvency, bankruptcy, assignment for the benefit of creditors or other debt reorganization unless, in the case of bankruptcy, the petition is removed or withdrawn within thirty (30) days. 6. Type of Waste: PRS shall only accept, and SWS and UWS shall only be entitled to provide, Materials not containing any prohibited substances or hazardous waste. PRS shall be entitled to inspect the Materials and reject and/or return to SWS or UWS any Materials that are not in conformance with the standards set forth herein. Notice of rejection of non-conforming Materials shall be given in writing prior to the close of business on the day PRS receives such non-conforming Materials at the Facility. Failure to provide written notice in accordance with the terms of the preceding sentence shall forfeit PRS's right to reject such non-conforming Materials. SWS or UWS shall bear all costs associated with inspecting, testing and rejecting any non-conforming Materials. Each party agrees to comply with all laws applicable to such party in the performance of its duties hereunder. 7. Amount of Waste to be Delivered: SWS and UWS shall deliver an aggregate minimum of 30 tons per day and an aggregate maximum of 75 tons per day of Materials to the Facility. 2 8. Time of Delivery: SWS and UWS shall be entitled to deliver Materials to the Facility six (6) days a week, Monday thru Saturday during normal operating hours. 9. Attorney's Fees: If any litigation is commenced between PRS and SWS or PRS and UWS to collect any sums due under this Agreement, or concerning any provisions of this Agreement, the prevailing party in such litigation shall be entitled, in addition to such other relief deemed appropriate by the court, to reasonable attorney's fees and expenses incurred in connection with such litigation. 10. Binding Effect: This Agreement shall be binding upon and inure to the benefit of the successors and assigns of SWS, UWS and PRS. 11. Confidentiality: Neither party shall disclose the Processing Rate to any person except with the express written permission of the other, which permission shall not be unreasonably withheld. Without limiting the generality of the foregoing, PRS shall agree to allow SWS or UWS to disclose the Processing Rate as may be reasonably requested or required by the City of Ukiah under the TS Agreement or the Collection Agreement. 12. Counterparts: This Agreement may be executed in counterparts, and shall be effective when fully executed by all of the parties. The parties agree to accept signatures transmitted by facsimile. 13. Third Party Beneficiaries: The City of Ukiah shall be deemed a third party beneficiary of this Agreement.. with all of the rights of a party to enforce the terms of this Agreement. 14. Assignment: No assignment of this Agreement can be made without the prior written approval of the City of Ukiah, exercising its rights under Section 1 I of each of the Waste Collection and Transfer Station Agreements with UWS and SWS, respectively. IN WITNESS WHEREOF, this Agreement is entered into as of the date first set forth above. PACIFIC RECYCLING SOLUTIONS, INC. By: SOLID WASTES SYSTEMS, INC. By: UKIAH WASTE SOLUTIONS, INC. By: Ukiah Waste Solutions, Inc. NEW 2012 GARBAGE COLLECTION RATE ADJUSTMENTS SUMMARY OF RATE ADJUSTMENT FOR STANDARD SERVICES YEAR 2012 Effective Percentage Total Monthly Rate Per Service Level Current Adjusted 2012 Adjustment Adjustment Gallon / Yard Curbside Service No Service $ 4.41 $ 4.72 7.03% $ 0.31 $ 0.472 10 gallon can rate $ 4.41 $ 4.72 7.03% $ 0.31 $ 0.472 20 gallon can rate $ 9.26 $ 9.92 7.13% $ 0.66 $ 0.496 32 gallon can rate $ 16.64 $ 17.82 7.09% $ 1.18 $ 0.557 68 gallon can rate $ 39.30 $ 42.10 7.12% $ 2.80 $ 0.619 95 gallon can rate $ 55.39 $ 59.33 7.11% $ 3.94 $ 0.625 Other combinations - rate per gallon $ 0.64 $ 0.69 7.14% $ 0.05 $ 0.690 Overstuffed can charge/Extra Stop $ 5.91 $ 6.33 7.12% $ 0.42 n/a 1 yard bin rate $ 110.07 $ 117.91 7.12% $ 7.84 $ 117.91 1.5 yard bin rate $ 130.08 $ 139.34 7.12% $ 9.26 $ 92.89 2 yard bin rate $ 173.44 $ 185.79 7.12% $ 12.35 $ 92.90 3 yard bin $ 260.16 $ 278.68 7.12% $ 18.52 $ 92.89 4 yard bin $ 346.88 $ 371.58 7.12% $ 24.70 $ 92.90 6 yard bin $ 520.32 $ 557.37 7.12% $ 37.05 $ 92.90 No Service $ 6.80 $ 7.28 7.06% $ 0.48 $ 0.728 10 gallon can rate $ 6.80 $ 7.28 7.06% $ 0.48 $ 0.728 20 gallon can rate $ 11.62 $ 12.45 7.14% $ 0.83 $ 0.623 32 gallon can rate $ 20.38 $ 21.83 7.11% $ 1.45 $ 0.682 68 gallon can rate $ 47.87 $ 51.28 7.12% $ 3.41 $ 0.754 95 gallon can rate $ 69.16 $ 74.08 7.11% $ 4.92 $ 0.780 Other combinations - rate per gallon $ 0.73 $ 0.78 7.14% $ 0.05 $ 0.780 Overstuffed can charge/Extra Stop $ 6.80 $ 7.28 7.06% $ 0.48 n/a Pack out service is limited to the elderly and disabl ed who apply directly through Ukiah Waste Solutions at 707-234-6400 Remote Area Service Add to the Packout Service rate. $ 6.80 $ 7.28 7.06% $ 0.48 N/A In areas with limited access, an additional fee is charged to fund the costs of special equipment and special handling necessary to provide garbage pickup services. This fee is in addition to the "Packout Service" fee listed in this schedule. Ukiah Waste Solutions, Inc. 2012 Rate Schedule RESIDENTIAL/ COMMERCIAL Residential Carts No Service 1-10 11-20 21-32 33-68 69-95 Gallons 2012 Rates Fee Ix/WK 1x/WK lx/WK lx/WK lx/WK Roadside 4.72 4.72 9.92 17.82 42.10 59.33 Pack Out* 7.28 7.28 12.45 21.83 51.28 74.08 Remote** 14.56 14.56 19.73 29.11 58.56 81.36 Pack Out service is limited to the elderly and disabled who apply dire ctly through Ukiah Waste Solutions @ 707-234-6400. The additional charges of Remote se rvice may be required for certa in areas with difficult access. Commercial Carts 2012 Rates 1-10 11-20 21-32 33-68 69-95 Gallon 1 Can - 1x/WK 4.91 10.28 18.50 43.72 61.62 1 Can-2x/WK 41.12 97.33 136.96 1 Can-3x/WK 68.70 149.24 208.48 2 Cans - 1x/WK 41.12 97.33 136.96 Commercial / Residential Bins Yards Number of pick-ups perweek Extra 2012 Rates 1x/WK 2x/WK 3x/WK 4x/WK 5x/WK 6x/WK Pick-up 1.0 117.91 n/a n/a n/a n/a n/a 27.23 1.5 139.34 278.68 418.02 557.36 696.70 836.04 32.18 2.0 185.79 371.58 557.37 743.16 928.95 1,114.74 42.91 3.0 278.68 557.36 836.04 1,114.72 1,393.40 1,672.08 64.36 4.0 371.58 743.16 1,114.74 1,486.32 1,857.90 2,229.48 85.82 6.0 557.37 1,114.74 1,672.11 2,229.48 2,786.85 3,344.22 128.72 Extra p/u calculated at 1/wk divi ded by 4.33 Clean-Up Bins and Boxes New Rate 2012 3.0 Yd 3 day rental 96.41 includes tip fee 15.0 Yd 7 day rental 218.46 Plus $78.70 per ton tip fee 20.0 Yd 7 day rental 218.46 Plus $78.70 per ton tip fee 30.0 Yd 7 day rental 218.46 Plus $78.70 per ton tip fee Compactors 218.46 Plus $78.70 per ton tip fee Misc Charges New Rate 2012 Bulky Items (appliances, Lg Tires, Furniture etc..) 24.25 Plus tip fee Tires - each - (Automotive or motorcycle) 5.11 Damage Cart Replacement 66.00 Additional Green Waste or R/C Cart 6.50 Extra Residential Pick-up 6.33 Extra Commercial Pick-up 11.82 Compactor Cleaning 284.46 Container Cleaning 102.41 Locking bin, one-time setup fee 32.43 Plus Materials Replacement Key 11.38 Contamination Fee 32.48 Returned Check Fee 35.00 Roll Off or Bin Extra Day Charge 11.82 Exchange Cart Size 24.36 Rate to collect and dispose of sludge will be equal to or less than the current rate. Customers billed by Ukiah Waste Solutions are billed as commercial customers. Customers billed by the City of Ukiah are billed as residential customers. RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING RATES FOR WASTE COLLECTION IN THE CITY WHEREAS, 1. Under a new Waste Collection Agreement between the City of Ukiah and Ukiah Waste Solutions, Inc. ("UWS"), the City Council is required to approe_ base rate for waste collection S~.U services; and 2. The base rates must be set in accordance wite p 03bdures prescribed by Ukiah City Code Sections 3950-3957 ("UCC Utility Rate Procedures") and` on 6 of Article XIII.D of the California Constitution and Government Codf e"dons 53750 et se1(collectively, "Proposition 218"); and 3. On March 5, 2008, the City Council adopte . esau: approving s for fiscal years 2007-2010, which included a 2.5-,'ease to pay a cost to finance the purchase of Proposition €8 and UCC Rate"lEcedures of the proposed rates for waste collection services in the y. which will m ome the base rate under the Waste Collection Contract; and 7. The City Cou . 91. pprov otice to property owners and waste collection customers was mailed on October 21, Z 8. Notice of the propos rates was published in the Ukiah Daily Journal on November 23, 2011; and 9. The City Council did not receive written protests from a majority of the property owners to the proposed rate increase; and 10. The City Council conducted a public hearing on the proposed rates on December 7, 2011; and Resolution No. _ Page 1of 1 I~-7__II 1r~c` A review of Flow Control under both the current and proposed contracts The City directs waste stream flows as follows: 1. Solid waste (garbage) that is collected at the curb is taken to the Transfer Station. The new Agreements do not change this arrangement. 2. Solid waste (garbage) received at the Transfer Station is taken to the Eastlake Landfill. 3. Recyclables are collected at the curb and taken to the Material Recovery Facility on N. State Street. The Agreements do not change this arrangement. 4. Greenwaste is collected at the curb and received at the Transfer Station: It then goes to the facility on N. State St, or to the Scotia facility, or to Cold Creek Compost. In 2008, the Consent to Sale Agreement required the hauler to deliver an average of 400 tons of greenwaste per month to Cold Creek Compost, including an amount equivalent to approximately 200 tons collected at the curb. The new Agreements do not change this arrangement. If alternate arrangements become available, the Agreements provide an opportunity for the hauler to request the City to consider them. At that point, the City will have the chance to evaluate what facilities, end uses, and flow of materials make the best sense for the ratepayers of Ukiah. The City Council will be required to approve any alternate arrangements. 5. Foodwaste: the hauler must have in place a pilot program for food waste management no later than June of 2013 per the new Agreements. Before the program is implemented, the hauler will be required to bring to the City the various options under consideration, including potential processing facilities, costs, and benefits. The City Council will evaluate and decide which options best serve the community. The sections regarding Alternate, Successor and Other Authorized Facilities give the City the discretion to direct flow to other processing facilities. The bottom line is that the City retains the authority to direct these materials. I ~L-7- k I Q,c _ December 51h, 2011 Mayor Rodin and Members of the Council, This letter is a proposal to enter into a contractual agreement to accept all of the City's green waste (curbside and self haul and stumps of any size), all of the food waste (commercial and residential including meat, fish, and dairy), soiled paper (such as used pizza boxes and milk cartons, source separated construction and demolition waste, sheetrock, liquid wastes (wine lees, fats, oils and grease) along with the many other materials that we recycle. Our facility is fully permitted to receive these materials and we have the capacity to take all that are produced in Ukiah and the surrounding area. For ease of collection, accumulation and transportation, we would suggest combining the solid materials into a single stream. The liquids would have to be hauled separately. Cold Creek Compost is willing to accept these materials for $16/ton, tied to the consumer price index. The contract we envision would include the entire stream of materials that Cold Creek is able to recycle. We would be agreeable to a contract of any length of time convenient to the City. Our goal is to maximize diversion while at the same time keeping the bill as low as possible for the ratepayers in Ukiah. Please let us know if we can help. Martin Mileck Cold Creek Compost Mendocino Board of Supervisors John McCowen John Pinches Douglas Crane Victor Hansen Meg Courtney THE STYROFOAM MYTH Dear Supervisors, Feb 15, 2010 As a vendor for over 28 years of all food packaging including Styrofoam, recyclable plastic, biodegradable paper and biodegradable plastics from starch, I would like to share some information not widely known. 1. Styrofoam IS recyclable, just not in Mendocino County. In the bay area I have seen it being washed & reformed into industrial packaging. 2. CFC (chlorofluorocarbon - a blowing agent used in styro production) has not been used to produce styro since 1987. This is one of the agents which were responsible for the depletion of the ozone layer. This is OLD information which gave styro its bad reputation. 3. Styrofoam is made from a waste product created as part of the oil refining process and was previously sent to landfill, so in essence is reducing landfill of this by-product. 4. Paper, on the other hand is made from trees, a natural resource we are supposed to be conserving, creates both air and land pollution with the use of bleaching agents (like dioxin, one of the most potent chemicals know to man) and chlorine and pollutes water (ever been to Samoa?) 5. Styro does not breakdown quickly, however neither does paper in a landfill. In fact, modern landfills are poly lined, covered with dirt purposely so as NOT allow biodegrading to protect the ground water and earth from toxic inks, and other toxins in landfills. The Casper landfill crisis is an example of what can happen in our time if biodegrading IS allowed to happen. 6. Although paper in theory is biodegradable, 50% of our landfills are now paper and 10% plastics'. 100 year old newspapers have been dug up and are still readable, so unless paper is sorted and composted, it doesn't biodegrade in landfill just like styro and most else BY DESIGN in modern landfills! 7. Styrofoam packaging uses far less energy to produce than paper, is made from reclaimed waste, insulates better, doesn't absorb liquid and is 20-50% CHEAPER than paper or other biodegradable or currently recyclable items. 8. Paper cup production, for example, uses 20 times as much electricity, 10 times as much steam, 300 times the waste water, and waste water that contains 40 times more contaminants. 9. Paper, recyclable items and compostable items have been our focus for over 10 years. Due to the higher cost of these items, we have a higher cash flow and therefore make more money on them. HOWEVER we also recognize that many small delis, Senior Centers, Food banks, and others, either dependent on diminishing funds and due to economic hard times, mandating them to use items 20-50% higher in cost could be the death sentence for many. This information has been taken from reports and independent studies by: The University of Victoria, Conservatree Information Services, The Audubon Society, The Sierra Club, The Environmental Defense Fund and others, all on file at our office. Ultimately our best course of action would be to carry around our own dishes and wash them ourselves but in the meantime, we can recycle, and buy recycled products and the Waste companies of Ukiah could provide recycling services for Styrofoam. There is a compact machine available that compacts styro into about a 12" cube and can be then sold to styyo manufactures if only the recyclers took the initiative to do so. Also commercial composting by the waste companies could make full use of the compostable items now available in replacement of styrofoam. Sincerely, Marlene Shupe Pres/CFO Ukiah Paper Supply, Inc. cc to: Mendocino Solid waste, Empire Waste, Mendocino County Solid Waste, Ukiah Solid Waste, C&S Waste Solutions, Ukiah Daily Journal city r'J-'ZJ'kj0fi ITEM NO.: 12b MEETING DATE: AGENDA SUMMARY REPORT December 7, 2011 SUBJECT: PRESENTATION AND UPDATE ON PROGRESS OF RECYCLED WATER MASTER PLAN AND DISCUSSION OF ALTERNATIVES. Background: On December 15, 2010 Council awarded a contract to Carollo Engineers for the preparation of a Recycled Water Master Plan. On February 28, 2011 the City hosted a Visioning Workshop at the Waste Water Treatment Plant to get input from the major project stakeholders. Discussion involved explaining the main motives for.this project; defining a successful outcome; discussing values and challenges of the project; and a discussion regarding the potential recycled water supply and demand. Ultimately, all of those discussions resulted in the draft screening criteria which will be used to assist in the selection of the most preferred alternative. Once the screening criteria was developed, City staff spent several months collecting data with Carollo Engineers and further discussed the needs, supply, and demand. Questionnaires were sent to local agencies who assisted in collecting data to determine how much demand there is for recycled water in the Ukiah Valley. Other agencies invlolved include Mendocino County Farm Bureau, Russian River Flood Control District, Ukiah Unified School District as well as the assessment of all City facilities for the possibility of landscape irrigation. On June 8, 2011 a Public Workshop was hosted by Mendocino County Farm Bureau in order for City staff and Carollo Engineers to present the efforts to date as well as receive input from the community. A second public workshop was held on October 6, 2011 to present the alternatives that were drafted for a recycled water system including areas for frost, agricultural and landscape irrigation. At that time, discussion was held and it was decided to expand one of the alternatives to include an ag and urban mixed system development. Discussion: Tracy Clinton, Project Manager with Carollo Engineers will present the alternatives, that have been identified. The rankings for the for the alternatives are only based on the screening criteria created by the stakeholder meeting. The pros and cons of all options can be discussed at any length as part of the presentation. Recommended Action(s): Update Council on the Status of Reclaimed Water Master Plan and Provide Comment on the Options Alternative Council Option(s): Citizens advised: Devon Jones, Mendocino County Farm Bureau; Sean White, RRFC/MCCID Requested by: Tim Eriksen, Director of Public Works/City Engineer Prepared by: Jarod Thiele, Public Works Administration Coordinated with: Jane Chambers, City Manager; Sage Sangiacomo, Assistant City Manager Attachments: 1) Recycled Water Master Plan Update Approved: J Chambers, City Manager w 0 w U UL L 4) L (1) 400 m V V ~ C C C ~ • U V =3 o O U L > a 4-0 U L V- f ~ ® 3 N ~ E2 41.11 ^E W vi U ~ a~ w xidd ane/NJaje/Najejdwalopojeo N L V ~ ~ v L L O ~ 7Z5 L O L L O L L W O C6 O c~ O 0- .U) a) C6 a) C6 c~ a) O • O E O a~ 4-1 a~ 0 O • U Q O CCS O cn O U c~ Q U O O N a~ a~ _Q O • O ~ U C6 O o _ O O N ~ U) U O o U) c~ o 4-0 o O O O ~ cn O C6 4-1 C6 X L C6 0 0 0 X Co O O N W U o~ p.. • • • xidd aneMjaae/Najejdwalopojeo e J~ht\} a I~~jl y 11-9F,L- i l Ii 1 e 1 1 - ~p r ► t - 0 L ~ o U U U c U 'L L A C U -1~ fl 1~~1 9 4 U L) 4 U) L ~ p o a) cu co C) a) rod L to v ) > ~ N o ~ U E- 0 v 0) O ca 0 0 - 0 Q S, ...1 " M I ' wl 1 A41 4-+ L U > j a) Lr- 0 a) c6 C O L a) cn a) E a) o E O O U o o U O coca C: U L 0 0 0 ~ o c ~ a) O O a) xgdd aneMiaaeMajejdwalojjo.ieo CF) ■E ■ E O L L E E ~p Y F+ ~ C I- . f w u o 0 tl Cl) Q- U) L % a) I- cu N - Q U U) 0 ca - C a) s= O U) - E Q 0 a) CU vi Q m ~ 0 ~ ,:3 a) a) • -2 cu -0 L .L U (n I_ - I I ~ O1 O I a) p U U I n ® j I 00 L I I cu CL o n) U) -a CL (a 0. 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U ~ a) O O ~ N m N 4-a Cn v Q O Co _0 O 0- N ca ~ V N 4-0 ~ v I • xidd aneMjaleMajejdwalopoaeo N N CL 4) AMP x 4) Z _0 l^' W 0 W E E O U O O N O 0 0 > O i U ca . O v0^J n c co C O U E C N cc: E 0 •L m O c C: C: c: C: O C: O ~ > CD 0 L O . I O Z QL O O (D 0 O 0 -se co -F-j U) U O U W cn m C6 O O O 0 0 C6 Q U Q xgdd ane/ J9jeAAajejdwalopoaeo ITEM NO.: 12d MEETING DATE: AGENDA SUMMARY REPORT December 7, 2011 SUBJECT: RECEIVE STATUS REPORT, REVIEW PRELIMINARY SINGLE-USE CARRYOUT BAG ORDINANCE, AND DIRECT STAFF TO PROCEED WITH THE PROCESS OF PREPARING A FORMAL DRAFT ORDINANCE SUMMARY: On April 20, 2011, the City Council conducted a discussion regarding single-use carryout bags, and reviewed the preliminary ordinances being considered by the City of Fort Bragg and Mendocino County. The purpose of the discussion was to hear from Council members Landis and Thomas who had been working with the Mendocino Solid Waste Management Authority (MSWMA) and Ukiah High School Environmental Club (UHEC) to potentially develop a City of Ukiah ordinance regulating single-use carry out bags. At the conclusion of the discussion, the City Council unanimously directed staff and the City Attorney to work with other jurisdictions to draft an ordinance and work with the MSWMA to prepare a draft environmental impact report for the project. This agenda item is intended to provide a status report of the efforts to fulfill the Council's previous direction; to review the November business outreach program, to review a preliminary draft ordinance for the City of Ukiah, and to direct staff to proceed with preparing a formal draft ordinance and to work with the MSWMA to prepare the environmental impact report. Preliminary Draft Ordinance: A preliminary draft ordinance was prepared with the assistance of the MSWMA (Attachment No. 1). It has been modeled after the Fort Bragg draft ordinance, but includes edits from City Staff and the City Attorney. One important addition to the ordinance is a finding to Section one indicating that on September 17, 2011, the Ukiah Friends of Gibson Creek conducted a four-hour clean-up of a stretch of Gibson Creek and found 241 single-use carryout plastic bags. Additionally, the City Attorney added a section allowing a customer, public interest organization, or the City to seek enforcement of the ordinance. Staff is seeking the Council's review of the Preliminary Draft Ordinance and direction to proceed with preparing a formal draft document. Continued on Page 2 Recommended Action(s): 1) Receive status report; review preliminary draft ordinance; and direct staff to prepare a formal draft ordinance and begin the environmental review process. Alternative Council Oation(s): Provide direction to Staff. Citizens Courtesy notice published in the Ukiah Daily Journal advised: Requested by: Council members Landis and Thomas Prepared by: Charley Stump, Director of Planning and Community Development Coordinated with: Jane Chambers, City Manager, and David Rapport, City Attorney Attachments: 1) Preliminary Draft Ordinance 2) Q&A document shared with local businesses Approved: a4 Chambers, City Manager Outreach to Businesses: Council members Landis and Thomas, along with City Staff have prepared a Questions and Answers document for distribution to local businesses (Attachment No. 2). During the month of November, the Ukiah High School Environmental Club coordinated personal visits and hand-delivered the Q&A document to 76 businesses in the City that would be affected by the ordinance. Additionally, the Q&A document was sent by mail to an additional 299 businesses that currently provide single-use carry out bags to its customers. The responses from businesses included the following: Some store managers were unaware of the ordinance and unaware that other communities had adopted similar ordinances. 2. Some store managers were knowledgeable about the ordinance and resigned to the idea. 3. Of those that were knowledgeable about the ordinance, many were concerned about and objected to the requirement to charge 10-cents for a large paper bag. 4. Some of the stores were already offering or had ordered re-useable bags. 5. One restaurant owner objected to the ordinance and complained about the City interfering with his business. 6. Some store managers were receptive to the ordinance, but unsure about how they would provide paper bags, because their corporations only provided plastic bags. 7. Some store managers indicated that they would pass the information "up-the-ladder" to their supervisors, business owners, or corporate headquarters. 8. Some store managers had heard of the ordinance, but thought the regulations would be voluntary rather than mandatory. Comments Received By Staff: Staff received the following comments from the business community: The Home Depot corporate offices in Atlanta, Georgia inquired about the status of the ordinance to make sure that their Ukiah store was prepared for any potential changes to their business operations. They also provided a notice from the State Board of Equalization indicating that the 10-cent charge for large paper bags is a charge imposed by the local jurisdiction rather than the retailer and therefore is not subject to a sales or use tax. Staff provided a copy of the preliminary draft ordinance and Q&A document, as well as a projected timeline for when the ordinance would go in effect if it were adopted early in 2012. California Environmental Quality Act (CEQA): At its April 20, 2011 meeting, the City Council accepted the offer of the Mendocino Solid Waste Management Authority (MSWMA) to produce a draft environmental impact report for the ordinance project, and directed City Staff to work with MSWMA to complete the CEQA process. If the City Council directs Staff to proceed with preparing a formal draft ordinance as recommended, Staff will immediately issue the Notice of Preparation of the EIR, which kicks-off the EIR process. Timing: It is anticipated that a public hearing on the draft EIR could be conducted in February, 2012, and the Council could be asked to consider certifying the EIR and introducing the ordinance in March of 2012. RECOMMENDED ACTION: Receive status report; review preliminary draft ordinance; and direct staff to prepare a formal draft ordinance and begin the environmental review process. Fiscal Impact: Budgeted FY New Budget Amendment 10/11 Appropriation I-X Not Applicable ❑ Required ATTACHMENT NO. 1 ORDINANCE NO. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING DIVISION 5 BY ADDING CHAPTER 9 ENTITLED DISPOSABLE BAG REDUCTION The City Council finds and declares as follows: SECTION ONE 1. Scientific evidence has shown that the use of all single-use shopping bags (plastic, paper, biodegradable) has severe environmental impacts, including greenhouse gas (GHG) emissions, litter, harm to wildlife, water consumption and solid waste generation; and 2. There are retail and restaurant establishments in the City of Ukiah ("City") which provide single-use, disposable carryout bags to their Customers; and 3. Many of these single-use carryout bags are made from plastic or other material that does not readily decompose; and 4. Billions of single-use plastic bags are used annually in California but only a small percentage are recycled; and 5. On September 17, 2011, the Ukiah Friends of Gibson Creek, a local creek advocacy group, conducted a four-hour clean-up of a one-mile stretch of Gibson Creek and found 241 plastic bags; and 6. Studies have documented the prevalence of single-use plastic carryout bags littering the environment, blocking storm drains and fouling beaches; and 7. Typically, the City's taxpayers must incur clean-up costs of this; and 8. Scientific evidence has shown that plastic bags are a significant source of marine debris and are hazardous to marine animals and birds which confuse single-use plastic fragments for a source of food resulting in injury and death to birds and marine animals; and 9. Of all single-use bags, single-use plastic bags have the greatest impacts on litter and marine life; and 10. Single-use paper bags result in greenhouse gas emissions, atmospheric acidification, water consumption, and ozone production; and 11. From an overall environmental and economic perspective, the best alternative to single- use plastic and paper carryout bags is a shift to reusable bags; and 12. There are environmentally superior and economically feasible alternatives to single-use carryout bags readily available; and 13. It is the desire of City to conserve resources, reduce the amount of waste, litter and marine pollution that are attributable to the use of single use bags, and to protect the general health and welfare of the public as well as to protect wildlife, all of which activities increase the quality of life for the Ukiah residents and visitors; and 14. Studies document that banning plastic bags and placing fees on paper bags will dramatically reduce the use of both types of single use bags. 15. While the City Council recognizes carryout bag regulation is a matter of statewide interest and concern that is best applied uniformly throughout the state, in the absence of statewide regulation, it is in the best interests of the City and its residents for the City to regulate carryout bags as described herein. 16. The regulation of single use shopping bags as proposed herein promotes the general health and welfare of the public by: A. Eliminating a significant contributor to local litter and the associated aesthetic impact to the community. B. Reducing impacts to animals locally and regionally by eliminating a man- made item that studies show wildlife mistake for a food source, eat, and become injured and even die. C. Reducing greenhouse gas emissions, atmospheric acidification, water consumption, and ozone production. 17. (CEQA FINDINGS TO BE ADDED HERE) SECTION TWO Chapter 9 entitled DISPOSABLE BAG REDUCTION is hereby added to Division 5 (Health and Sanitation) of the Ukiah Municipal Code as follows: "CHAPTER 9: DISPOSABLE BAG REDUCTION Article 1 Definitions Article 2 Carryout Bag Regulations Article 3 Effective Date Article 4 Violations and Penalties Article 5 Severability Article 6 Publication Article 1: DEFINITIONS - For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. §4514. Definitions CUSTOMER: Any person obtaining goods from a store. PREPARED FOOD: Foods or beverages which are prepared on the premises by cooking, chopping, slicing, mixing, freezing, or squeezing, and which require no further preparation to be consumed. PREPARED FOOD does not include any raw, uncooked meat product or fruits or vegetables which are chopped, squeezed, or mixed. PUBLIC EATING ESTABLISHMENT: A restaurant, take-out food establishment, or any other business that receives 90% or more of its revenue from the sale of PREPARED FOOD to be eaten on or off its premises. POSTCONSUMER RECYCLED CONTENT: A material that would otherwise be destined for solid waste disposal, having completed its intended end use and product life cycle. POSTCONSUMER RECYCLED CONTENT does not include materials and byproducts generated from, and commonly reused within, an original manufacturing and fabrication process. RECYCLED-CONTENT PAPER BAG: A paper carryout bag provided by a store to a Customer at the point of purchase that meets all of the following requirements: A. Contains a minimum of 40 percent postconsumer recycled content, except a 350 cubic inch or smaller recycled-content paper bag shall contain a minimum of 20 percent postconsumer recycled content. B. Is accepted for recycling in the curbside program of the City. C. Has printed on the bag the name of the manufacturer and the minimum percentage of postconsumer content. REUSABLE GROCERY BAG: A bag with handles that is specifically designed and manufactured for multiple reuse, does not contain lead, cadmium, or any other heavy metal in toxic amounts, and is either: A. Made of cloth or other machine washable fabric, or B. Made of durable plastic that is at least 2.25 mils thick and is specifically designed for multiple reuse, meaning manufactured to carry a minimum of 22 pounds for at least 125 times over a distance of at least 175 feet. SINGLE-USE CARRYOUT BAG: A bag made of plastic, paper, or other material that is provided by a store to a Customer at the point of purchase and that is not a Reusable Carryout Bag. A Single-Use Carryout Bag does not include (1) a bag provided by a pharmacy licensed pursuant to Chapter 9 (commencing with Section 4000) of Division 2 of the Cal. Business and Professions Code to a Customer purchasing a prescription medication; (2) a bag used by Customers before the point of purchase to (a) package bulk items, such as fruit, vegetables, nuts, grains, candy or small hardware items; (b) contain or wrap frozen foods, meat, or fish, whether prepackaged or not; (c) contain or wrap flowers, potted plants, or other items where dampness may be a problem; (d) contain unwrapped prepared foods or bakery goods; or (e) separate or protect individual items prior to placing them in a carryout bag; or (3) a newspaper bag, door-hanger bag, laundry-cleaning bag, or bag sold in a multiple package of bags intended for use as garbage, pet waste, or yard waste bags. STORE: A retail establishment that sells perishable or nonperishable goods, licensed to do business in the City. Article 2: CARRYOUT BAG REGULATIONS. §4515. Carryout Bag Regulations A. A Store shall not provide a Single-Use Carryout Bag to a Customer at the point of purchase, except as provided in this section. B. Plastic Single-Use Carryout Bags are prohibited C. A Store, except a Public Eating Establishment, shall make Reusable Grocery Bags available for purchase by a Customer. D. A Store may provide Reusable Grocery Bags to Customers at no cost, until 18 months after the effective date of this ordinance, only when combined with a time-limited store promotional program to promote the use of Reusable Grocery Bags. E. A Store may provide to a Customer a Recycled-Content Paper Bag or a Reusable Grocery Bag upon request but shall charge the Customer, except as provided in subdivision (F), an amount sufficient to recover the store's full cost of providing the bag. There shall be a rebuttable presumption that this amount shall not be less than 10 cents per bag. A store may charge a lesser amount if it submits a full accounting to City, signed by a responsible manager under penalty of perjury, that identifies all costs including bag purchase, shipping, handling and storage, showing a lesser actual cost to the store for each bag. Any such accounting shall expire one year from the date of original submission and must be resubmitted. F. A Store will not be required to charge a customer for a Recycled-Content Paper Bag of less than 250 cubic inches capacity, and a Public Eating Establishment will not be required to charge for Recycled-Content Paper Bags of less than 440 cubic inches capacity which are used for Prepared Food. G. For any Recycled-Content Paper Bag or a Reusable Grocery Bag sold to a Customer, the amount of the sale of the bag shall be separately itemized on the sales receipt. No store shall rebate or otherwise reimburse a Customer any portion of the charge required for a Recycled-Content Paper Bag. Article 3: EFFECTIVE DATE. §4516 - Effective Date This Ordinance shall be and the same is hereby declared to be in full force and effect for different classes of Stores as follows: A. From and after one hundred and eighty (180) days from the effective date of this ordinance for (1) A full-line, self-service retail Store with gross annual sales of three million dollars ($3,000,000) or more and which sells a line of dry grocery, canned goods, nonfood items and some perishable items; and (2) A Store with over 10,000 square feet of retail space that generates sales or use tax pursuant to the Bradley-Burns Uniform Local Sales and use Tax Law (Part 1.5 commencing with Section 7200 of Division 2 of the Revenue and Tax Code) and has a pharmacy licensed pursuant to Chapter 9 (commending with Section 4000) of Division 2 of the Business and Professions Code. (3) A Public Eating Establishment that has a drive-up take-out window enabling Customers to make purchases without leaving their vehicles. B. From and after five hundred and forty-five (545) days from the effective date of this ordinance for all other Stores. Article 4: VIOLATIONS AND PENALTIES. §4517 - Violations and Penalties A. Any action to enforce this Ordinance shall be preceded by delivery of a written warning to the Store where a violation has occurred. B. Any person who violates this Ordinance shall be guilty of an infraction. If charged as an infraction, upon conviction thereof, said person shall be punished by (1) a fine not exceeding $100.00 for a first violation, (2) a fine not exceeding $200.00 for a second violation within the same year, and (3) a fine not exceeding $500.00 for each additional violation within the same year. C. Any violation of this Chapter 9 may be enforced through the administrative enforcement procedures contained in the Ukiah City Code. The City Manager, or his or her designee is authorized to take any and all other actions reasonable and necessary to enforce this Chapter, including, but not limited to, investigating violations, imposing administrative fines in amounts as may be established from time to time by ordinance or resolution of the City Council. D. In addition to the administrative enforcement procedures described above, the City Council may authorize the City Attorney to pursue judicial enforcement of this Chapter through a civil action. E. A violation of any provision of this Ordinance by any person, firm or corporation shall be subject to a civil action in any court of competent jurisdiction, including the small claims court, by a customer, public interest organization, or the City to recover any damages caused by the violation and a civil penalty of $1,000 or 10% of actual damages, whichever is higher, for every such violation. For any willful violation, the customer, public interest organization or City may recover treble damages. Nothing in this subsection shall prohibit the filing of an action as authorized herein as a class action. The prevailing party in any action filed pursuant to this subsection shall be entitled to recover its reasonable attorneys' fees to be determined by the court. Article 5: SEVERABILITY. §4518 - Severability If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of the Ordinance. The City Council of the City of Ukiah hereby declares that it would have passed this Ordinance and each section, subsection, sentence, clause and phrase thereof irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases may be held invalid or unconstitutional. Article 6: PUBLICATION §4519 - Publication Within fifteen days after its adoption, this Ordinance shall be published once in a newspaper of general circulation in the City of Ukiah. In lieu of publishing the full text of the Ordinance, the City may publish a summary of the Ordinance once 5 days prior to its adoption and again within 15 days after its adoption. Introduced by title only on , by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Adopted on , 2011 by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Mari Rodin, Mayor ATTEST: JoAnne Currie, City Clerk ATTACHMENT ~7_ October, 2011 Dear City Business Owner, The City of Ukiah intends to bring forward an ordinance that will ban single use carry-out plastic bags. Why Ban the Bag? The single use plastic bag is one of the main sources of pollution world wide. Plastic never goes away, but only breaks down into smaller and smaller pieces attracting toxic chemicals, being ingested by wildlife on land and in the ocean, endangering sea creatures, and working its way into the food chain causing harm to human health. What's Wrong with Recycling the Bags? Recycling plastic bags is not a sustainable solution. Less than 5% of plastic bags actually get recycled. Plastic is a petroleum product, a non-renewable resource, and bags which do not escape into the environment are landfilled or exported to other countries where they are burned, creating polluted air. Ultimately there is great cost to the public - world wide. Why Charge For Paper Bags? The proposed ordinance is intended to encourage a changeover to reusable shopping bags. In addition to banning plastic bags, it requires stores to recover the cost of any paper bags they give out in the form of a charge to the customer. The minimum charge is 10 cents per bag. (Small bags are exempted.) The 10 cent charge to be imposed on paper bags goes directly back to the shopkeeper. This is not a tax. This charge applies only to paper bags at point of purchase, of 250 cubic inches or greater and of 440 cubic inches or greater for public eating establishments. I Still Don't Get It. Why the Charge? The goal is to encourage a switch to re-useable bags. Otherwise stores will just switch~to paper bags, which consume substantial resources to manufacture and distribute. So the ordinance requires charging., a minimum of 10 cents for a paper bag, which is approximately what it costs the store to provide the paper bag. So What Other Cities and Counties in California Have Banned the Bag? Other cities and counties in California that have successfully banned the bag are: San Francisco, Oakland, Manhattan Beach, Los Angeles County, Palo Alto, Santa Monica, San Jose, Fairfax and Santa Clara County. AND, In Europe and many other countries one simply does not go shopping without their own reusable bag! How can I Provide Input? To find out more information, discuss the proposed ordinance or to submit written comments, contact: Mike Sweeney, Manager - Mendocino County Solid Waste Management Authority, 468-4863 / sweeney@pacific.net Charley Stump, Director of Planning & Community Development - City of Ukiah, 463-6219 / cstump@cityofukiah.com When Will This Ordinance Go Into Effect? We understand that our business owners and the public need to adjust to this new process so we are allowing ample time - between 6 to 18 months (6 months for larger, higher volume stores and drive through restaurants and 18 months for everyone else) between the time the ordinance is passed and when it goes into effect. The City of Ukiah and County of Mendocino are both in the process of creating their own bag ordinances. We are attempting to have the same ordinance county-wide for the sake of uniformity. We hope you will join with us in eliminating the scourge of the plastic bag from our precious environment! Please contact one of us, if you have any questions. Mary Anne Landis and Benj Thomas 300 SEMINARY AVENUE UKIAH CA 95482-5400 Phone# 707/463-6200 Fax# 707/463-6204 Web Address: www.cityofuklah.com idea VTK -ity q1-;zikiah ITEM NO.: 12e MEETING DATE: AGENDA SUMMARY REPORT December 7, 2011 SUBJECT: AWARD OF CONTRACT FOR THE EAST CLAY AND SOUTH MAIN RE- CONDUCTORING PROJECT, SPECIFICATION NO. 11-12, TO HERMAN WEISSKER, INC FOR THE LUMP SUM AMOUNT OF $292,237.00. (EUD) Summary: Staff is requesting the award of contract for the East Clay and South Main Re-conductoring Project, Specification No. 11-12, to Herman Weissker Inc., for the lump sum amount of $292,237.00. Background: This project will replace the existing overhead power lines, poles and conductor, which run from the railroad tracks west on Clay St. to Main St. and north on Main St. to Perkins St. This work is part of an overall construction plan to increase needed capacity and capability to the north and west areas of Ukiah. In addition, the project will provide the necessary infrastructure to eliminate one circuit on Orchard, decreasing vault congestion to improve reliability and improves the ability to restore power during an outage. Discussion: Council approved the plans and specifications for the East Clay and South Main Re- conductoring Project, Specification No. 11-12 on October 5, 2011. Following the approval, the City distributed the plans and specifications to the required builders' exchanges, publicly advertised this project in the Ukiah Daily Journal, sent copies of the Notice to Bidders to all licensed class C-10 contractors on the City's 2011 Qualified Contractors List, and posted them to the City's website. Staff conducted a mandatory pre-bid meeting with potential contractors to outline the specifics of the project and answer any questions. Sealed proposals were received and opened by the City Clerk on November 14, 2011. Bids were received from 3 contractors (see Attachment 1 for a copy of the bid tabulation). After reviewing the bid responses, it is Staff's recommendation to award the bid to Herman Weissiker, Inc. for the lump sum amount of $292,237.00. If the contract is awarded, construction is scheduled to start in January in order to give the City time to procure and receive the material for this project. The project will be charged to, and funds are available in, account 800.3729.930.000. Fiscal Impact: Budgeted FY 11/12 ❑ New Appropriation Not Applicable Budget Amendment Required Amount Budgeted Source of Funds (title and From Acct. Number Addtl. Appropriation Req'd $450,000 Underground Maintenance 800.3729.930.000 N/A Recommended Action(s): Award contract for the East Clay and South Main Re-conductoring Project, Specification No. 11-12, to Herman Weissker, Inc. for the lump sum amount of $292,237.00. (EUD) Alternative Council Option(s): (1) Reject Bids; (2) Provide Staff with other direction. Citizens advised: n/a Requested by: Mel Grandi, Electric Utility Director Prepared by: Cindy Sauers, Electrical Engineer Coordinated with: Mary Horger, Purchasing Supervisor Attachments: Bid Tabulation Approved: i 7 AAU1C_ 4 J rte Chambers, City Manager 1_/ 'L` ATTACHMENT O O O O O q q O i ~ 0 0 c; c; 0 0 0 0 N 0 Loo NN 00 co O C O O O a) M Cl N N 06, CY) O m N O O tD m m m CO m m d O m {h v} in v)- th Ln Ln -a U to to v~ rn a Q ` O O O 0 0 U M O CL U a 0 0 0 N N 0 p M Y v 0) w Q w + C O t? v). O 0- 0 W t3 (7) ' , 00 ' O Lf v a Ql a N N e-i e-i V ~ _ V Ln t~ a L n a 00 a) 0 0 0 • O N N L • w a) m d' -t d t0 ri rl 0 Lf) FD r4 C4 C) V-1 (n 0) u cc Ln O N tl O O Ln In Cfl N rn O m m L 00 00 M Gh r-Z 00 1 06, 00 r- ( 4 00 00 V 0 Ln t!S t1r to in 00 y i Q v v u 00 m 0 r- 0 ~ 0 vi v o 3 r i o 0 LLn < V O C y i U m u J O 00 6 L n V)- tn. 0 m L ip F- om t ti O a ro ` ` n . r i > a u a V) t - a O 0 O 0 O O O O ~ 0 O 0 ~ 0 M M - O a) 06 00 Lr~ 00 N a) f N O N N L-n N N ct It a) a) ri i/~ t/} i/1• i/)• t/} N N ~ N ~ i/} '{n• ih H Q v ° ° ° ° ° 3 3 o o o L n Ln o O 0) 4 O O N o) O -0 n 0 0 ~ . r, f0 ca V N O O) 't r 1 2 to ~ oC t/} w w w ~ LL w j u m m O m O M d Q (J W J Z z tko d3: W N z m w O J (7 Q J O J Q Z Q m Y J w a: v z ~ Q (n O M U f - Q Z - z = 0) w= U O • Q w CC J O o: Z 0- N C w U w 3r a! Z w cr M Y O c N G :3. N O ? 0 n. < LLi Q V) U 0 j Lu J co VO v- rI a w ti Z (7 Z Z N y u w J Z Z OU Z co p Z O E cs v G O O = Q Q O w Qw w Q U c CL v aC Q z w D 0_' ? = Q m 'A 44 3 `-i N M d In lfl V)0 f O _ d C H W co m 7k m F- J ciiy 4 Tlkiafi ITEM NO.: 12f MEETING DATE: December 7, 2011 AGENDA SUMMARY REPORT SUBJECT: AWARD OF BID FOR THE PURCHASE OF MATERIAL TO COMPLETE THE EAST CLAY AND SOUTH MAIN RE-CONDUCTORING PROJECT IN THE AMOUNT OF $32.651.98. (EUD) Staff is requesting authorization to purchase material to complete the East Clay and South Main Re-conductoring Project. The extensive material list of 67 overhead material items was sent to 18 vendors and included cross arms, insulators, conductor, connectors and all hardware to complete the project. Due to the diversity of the material list, no one bidder could quote the entire list; however, partial quotes were received from 5 vendors. After reviewing the bids, Staff compiled a list of materials based on the lowest price for each item. A bid tabulation sheet is attached for Council's review. Staff is recommending the purchase of material based on lowest bidder per item: One Source General Pacific HD Benicia HD Portland $6,686.78 $9,764.55 $10,069.45 $6,131.20 The total material purchase will be $32,651.98 and was budgeted in account 800.3729.930.000. Fiscal Impact: a Budgeted FY 11/12 New Appropriation Not Applicable Budget Amendment Required Amount Budgeted Source of Funds (title) Account Number Additional Funds Requested $450,000 Underground Maintenance 800.3729.930.000 N/A Recommended Action(s): Approve award of bid for the purchase of utility distribution hardware for the East Clay and South Main Re-conductoring Project in the amount of $32,651.98. (EUD) Alternative Council Option(s): (1) Reject Bids; (2) Provide Staff with other direction. Citizens advised: n/a Requested by: Mel Grandi, Electric Utility Director Prepared by: Cindy Sauers, Electrical Engineer Coordinated with: Mary Horger, Purchasing Supervisor Attachments: Approved Chambers, City Manager ITEM NO.: 12g MEETING DATE: December 7th, 2011 Cir.y a1_ ,Z_1k afz AGENDA SUMMARY REPORT SUBJECT: STUDY OF OPTIONS FOR THE DELIVERY OF FUTURE FIRE SERVICES. Background: At the November 16th, 2011 City Council meeting, staff presented the "Ukiah Fire Department Overview and Service Delivery Options Report". The purpose of the report was to provide the City Council with a series of options to study and discuss over the course of the next few months, as the both City Council and City staff work together to address the continuing structural imbalance between revenues and expenditures in the City's General Fund, from which Fire and Ambulance services are now supported. The options presented to the City Council were based on two key principals. The first was to continue to provide an equivalent level of service to the public as is currently provided, and the second was for the City Council to determine how much of the City's General Fund resources would be devoted to Fire and Ambulance services as a matter of public policy. This type of difficult discussion is necessary because of the on-going fiscal crisis facing the City's General Fund resources. The City Council is engaged in making difficult policy decisions in order to assure financial solvency for City operations now and into the future. Discussion: Options presented included continuing the services as they are currently configured. Other options were designed to provide equivalent, or in some cases, enhanced services, but through other service models than what is currently in place. Inherent in the discussion of Fire Services is the question of what the City can afford to spend for these services, and how affordability of any service model selected, can be assured for the long term. Also integral to the overall discussion is the question of what role the City should play in providing ambulance services. Based on the discussion at the November 16th, 2011 meeting, many questions arose about the options presented and others not included in the presentation, including; • Regional Fire Service Models • Future role of the Public Safety Ad Hoc Committee • Ambulance and Fire Prevention Billing Rates • And, a need for a greater understanding of the current delivery of fire service model and options for the future. Recommended Action(s): To assist staff in exploring possible models for Fire services in the future, and provide staff with further direction and areas of research. Alternative Council Option(s): N/A Citizens advised: Requested by: Chris Dewey, Director of Public Safety Prepared by: Chris Dewey, Director of Public Safety Coordinated with: Jane Chambers, City Manager Attachments: Approved- JVhambers, City Manager Continued: STUDY OF OPTIONS FOR THE DELIVERY OF FUTURE FIRE SERVICES Based on these additional discussed items by Council, staff has worked to develop an action strategy for moving forward the discussion of the delivery of future fire services to the community. Recommendations: These recommendations for Council consideration include: 1. Ambulance Billing and Fire Prevention Fees: Staff desires to bring forward for Council consideration, updated Ambulance Billing and Fire Prevention Fees as soon as possible. Ambulance Billing Fees will be scheduled for the December 21St 2011 City Council Meeting for consideration, and Fire Prevention Fees will be researched and returned for Council consideration in the first quarter of 2012. 2. Continued Exploration of Short Term Budgetary Savings: Staff desires to reschedule meetings with the Public Safety Ad Hoc Committee to continue exploring and examining short-term budgetary saving ideas. And, develop a greater understanding of the services currently provided by the Fire Department, and study in depth the options presented and service delivery models being used by other communities in our region, including Willits, Fort Bragg, Cloverdale, Lakeport, Healdsburg, and Santa Rosa. 3. Regional Fire Services Fiscal Impact Study: Over the last 20 years, many attempts have been made to regionalize fire services in the Ukiah area. None of these attempts undertook an extensive study of the long-term fiscal impacts to the City of Ukiah of a regional fire service. Staff recommends that the City conduct a study of the fiscal (property tax, parcel tax, sales tax, Measure S, and/or fee for service) impacts to City residents that could be involved in combining City Fire Services with another provider. Such a study is particularly important to fully understand the long-term, sustainability, of any proposed new service model in order to avoid future disruption of services and/or stranding of tax payer funded assets, and should provide a foundation of factual information for the City Council's consideration of alternatives. Fiscal Impact: F1 Budgeted FY 11/12 F-1 New Appropriation ~ Not Applicable Budget Amendment Required ITEM NO.: 13a MEETING DATE: December 7t", 2011 AGENDA SUMMARY REPORT SUBJECT: AUTHORIZE THE ESTABLISHMENT OF A POLICE CANINE PROTECTION PROGRAM, AND THE PURCHASE OF TWO POLICE CANINES FROM MASTER K-9 INC., IN THE AMOUNT OF $30,000 FROM FUND 204.2001.800.000. Background: In January of 2010, the City Council authorized the Police Department to establish a Police Canine Narcotic Detection Program, and the purchase of two Narcotic Detection Canines. By the summer of 2010, the Department deployed "Daisy" and "Bugsy". Both dogs were purchased from Master K-9 Inc., which works with many law enforcement agencies in our area. Daisy was assigned to the department's school resource officer, and Bugsy was assigned to a patrol officer. Over the last year, both Canines have had a positive impact in the reduction of drugs. The Department's Narcotic Canines are used daily to search for and alert Officers to the likely location of drugs. At Ukiah High School, the use of Daisy has reduced drug violations on campus by over 50% during the first year assigned to the campus. Both canines have located over 200 pounds of Marijuana and almost '/z pound of Methamphetamine in searches. During the same time period, the department has seen a reduction of 20% of the department's sworn officer staff. The department has been reduced from 32 sworn officers to 26 sworn officers, and the department has been forced to reduce each patrol shift from 4 officers to 3 officers a shift. The department has also continued to experience an increase in calls for police services, which during the summer of 2011 averaged more than 90 calls for police services each day. Along with a reduced work force and increased demand for service, the department is beginning to see an increase in misdemeanor and felony offenders being placed on to probation, rather than being sentenced to prison because of the State's realignment plan. With Ukiah being the County Seat where probation and day supervision programs are located, the City is realizing a disproportionate number of offenders within our community. Along with a reduction of patrol officers, an increase in calls for service, and problems created with the State's realignment program, budget reductions in Mental Health Services and Jail Staff have also reduced the availability of patrol officers. Continued on Page 2 Recommended Action(s): 1. Authorize the establishment of a Canine Protection Program and, 2. Authorize the purchase of a Dual Purpose Police Canine from Master K-9 in an amount not to exceed $15,000.00 and appropriate sales tax. Alternative Council Option(s): Provide Staff with alternative direction. Citizens advised: Requested by: Chris Dewey, Director of Public Safety Prepared by: Chris Dewey, Director of Public Safety Coordinated with: Jane Chambers, City Manager Attachments: Ukiah PD "Canine Program" Policy s / f Approved: L, _r - - " J Chambers, City Manager Subject: Authorize Police Canine Protection Program and Purchase. Meeting Date: December 7t", 2011 Page 2 of 3 Mental health services have been reduced drastically, and an officer cannot leave a person identified to possibly be a danger to themself or others, until a mental health worker can arrive. Because of limited Mental Health workers, wait times with a patient has increased significantly. And, the same situation is occurring in the Jail, because of reductions in personnel, wait times to book a prisoner have also increased. These wait times significantly impact the 3 patrol officer's availability, if one or two of our officers are tied up with a mental health patient, or a prisoner booking at the jail, the department's remaining officer now routinely has no back up resources when responding to calls for police services. Discussion: Because of the increasing demand on officers, and limited officer resources, staff is becoming increasingly concerned for the safety of the department's patrol officer staff. The department has enjoyed success implementing and managing the drug detection canine program, and desires to now implement a Dual Purpose Drug Detection and Protection Canine program for the department to assist with officer safety. Along with single purpose drug detection canines, a canine can be trained as dual purpose drug detection and officer protection canines. These dual purpose canines can search for and detect drugs, and are also trained to protect officers, conduct building and area searches, and utilize tracking skills to search for missing persons or evidence. Most importantly, these dual purpose canines act as "partner officers" providing protection and back up to patrol officers and are invaluable in defusing fights and finding dangerous suspects. To assist officers, the department desires to purchase and deploy two dual purpose canines, so that a Canine will be available 7 days a week assisting patrol activities. Use Policy: A dual purpose drug detection and protection canine can offer increased risk to an agency if improperly used, and the department was initially reluctant to begin a department canine program with dual purpose canines. The development of the department's drug detection canine program has allowed the department to gain valuable knowledge in the management, training and supervision of the canine program. The department has adopted and trained staff in a canine use policy approved by REMIF and used by over 400 other police agencies in California. This Canine Policy has been tested in the courts, and clearly defines how and when canines can be utilized. And, the department has developed a strong working connection with the Sonoma County Canine Association and now trains regularly with canine trainers and certified experts following our strict policy, to ensure our staff is well trained and following the latest case law and deployment procedures. Officer Training: The department's two previous canines, Daisy and Bugsy were trained in Southern California. Our officers were required to travel to Riverside California, to complete their training with the drug detection dogs. Protection dog training for Officers is a five week class, which is POST certified, and Officers must pass a comprehensive examination process to complete the class. This coming February, the Sonoma County Sheriff's Office will be hosting training in Santa Rosa, and has offered to allow Ukiah PD to participate. This local training significantly reduces travel and per diem costs for the department for the officer to attend. Subject: Authorize Police Canine Protection Program and Purchase Meeting Date: December 7th, 2011 Page 3 of 3 Sole Source Purchase: Law enforcement agencies within our region have partnered together to provide the on-going detection dog training at significantly reduced costs through their cost sharing partnership, and contract with Master K-9 Inc., to provide these training and certification services. Staff desires to continue this extremely reduced cost sharing partnership with local law enforcement agencies, and desires to purchase a Dual Protection Canine and utilize Master K-9 Inc., to provide these training and certification services. Availability of Funding: The purchase of Dual-Purpose Canines was not included within the FY 2011/12 budget. Staff recommends utilizing the Department's Asset Forfeiture funds for this purchase. Asset Forfeiture funds may be used to supplement the department's budget, but cannot by law supplant the budget. The purchase of two Dual Purpose Narcotic Protection Canines is an approved use of these funds. Recommendations: Staff recommends that the City Council: 1. Authorize the establishment of a Canine Protection Program and, 2. Authorize the purchase of two Dual Purpose Police Canines from Master K-9 in an amount not to exceed $30,000.00 and appropriate sales tax. Fiscal Impact: Budgeted FY 11/12 ~ New Appropriation Not Applicable Budget Amendment Required F-1 F ❑ Amount Budgeted Source of Funds (title and Account Number Addtl. Appropriation Requested -0- Federal Asset Forfeiture 204.2001.800.000 $15,000 -0- State Asset Forfeiture 200.2001.800.000 $15,000 ATTACHMENT Ukiah Police Department Policy Manual Canine Program 318.1 PURPOSE AND SCOPE The Canine Program was established to augment police services to the community. Highly skilled and trained teams of handlers and canines have evolved from the program and are used to supplement police operations to locate individuals, contraband and to apprehend criminal offenders. 318.2 GUIDELINES FOR THE USE OF CANINES A canine may be used to locate and apprehend a suspect if the canine handler reasonably believes that the individual has either committed or threatened to commit any serious offense and if any of the following conditions exist: (a) There is a reasonable belief that the individual poses an imminent threat of violence or serious harm to the public, any officer, or the handler. (b) The individual is physically resisting or threatening to resist arrest and the use of a canine reasonably appears to be. necessary to overcome such resistance. (c) The individual(s) is/are believed to be concealed in an area where entry by other than the canine would pose a threat to the safety of officers or the public. It is recognized that situations may arise that do not fall within the provisions set forth in this policy. In any such case, a standard of objective reasonableness shall be used to review the decision to use a canine in view of the totality of the circumstances. Absent reasonable belief that an individual has committed or threatened to commit a serious offense, mere flight from pursuing officer(s) shall not serve as good cause for the use of a canine to apprehend the individual. Once the individual has been located and no longer reasonably appears to represent a threat or risk of escape, the canine should be placed in a down-stay or otherwise secured as soon as it becomes reasonably practical. 318.2.1 PREPARATION FOR UTILIZING A CANINE Prior to the use of a canine to search for or apprehend any individual, the canine handier and/or the supervisor on scene shall carefully consider all pertinent information that is reasonably available at the time. The information should include, but is not limited to the following: (a) The individual's age or estimate thereof. (b) The nature of the suspected offense. (c) Any potential danger to the public and/or other officers at the scene if the canine is released. (d) The degree of resistance or threatened resistance, if any, the subject has shown. (e) The potential for escape or flight if the police dog is not utilized. (f} The potential for injury to officers or the public caused by the suspect if the canine is not utilized. Canine Program - 87 Adopted: 2011106130 0 1995-2011 LeApok, LLC Ukiah Police Department Policy Manual Canine Program As circumstances permit, the canine handier should make every reasonable effort to communicate and coordinate with other involved personnel to minimize the risk of unintended injury. A canine handler shall have the ultimate authority not to deploy the dog. The handier will evaluate each situation and determine if the use of a canine is technically feasible. Generally, the decision whether to deploy the dog shall remain with the handier. However, a supervisor sufficiently apprised of the situation may decide not to deploy the dog. 318.2.2 WARNINGS GIVEN TO ANNOUNCE THE USE OF A CANINE Unless it would otherwise increase the risk of injury or escape, a clearly audible warning to announce that a canine will be released if the person does not come forth, shall be made prior to releasing a canine. The canine handier, when practical, shall first advise the supervisor of his/her decision if a verbal warning is not given prior to releasing the canine. In the event of an apprehension, the handier shall document in any related report whether or not a verbal warning was given and, if none was given, the reasons why. 318.2.3 USE OF NARCOTIC-DETECTION CANINES A narcotic-detection-trained canine may be used in accordance with current law under the following circumstances: (a) To assist in the search for narcotics during a search warrant service. (b) To obtain a search warrant by using the detection canine in support of probable cause. (c) To search vehicles, buildings, bags and any other articles deemed necessary. A narcotic-detection canine will not be used to search a person for narcotics. 318.2.4 GUIDELINES FOR NON-APPREHENSION USE Because canines have senses far superior to those of humans, they may often be effectively utilized to track or search for non-criminals (e.g. lost children, individuals who may be disoriented or in need of medical attention) or even suspects wanted for minor criminal.offenses. In such circumstances, it will be necessary for the handler to evaluate the conditions and ability of the canine to determine the feasibility of such an application. (a) Absent a change in circumstances that present an immediate threat to officers, the canine or the public, such applications should be conducted on leash or under such conditions that will minimize the likelihood that the canine will bite or otherwise injure the individual. (b) Throughout the deployment of the canine in such circumstances, the handler should consider issuing periodic verbal assurances that the canine will not bite or hurt the person. (c) Unless otherwise directed by a supervisor, assisting personnel should take direction from the handler in order to minimize interference with the canine. 318.2.5 REPORTING CANINE USE, BITES AND INJURIES Whenever the police service dog is deployed, a Canine Use Report shall be completed by the handler and turned in to the Unit Coordinator before going off-duty. Whenever the use of the canine results in a bite or any injury a Canine Use Report Form shall be completed and included with any related incident report. Canine Program - 88 Adopted: 2011106130 ©1995-2011 Lexipol, LLC Ukiah Police Department Policy Manual Canine Program The injured party should be transported to an appropriate medical facility if the injury requires medical attention beyond first aid. If the injured party is in custody an officer should remain with the suspect until treatment has been rendered. Photographs shall be taken of the bite or injury as soon as practicable after tending to the immediate needs of the injured party. Photographs shall be retained as evidence in accordance with current department evidence procedures. It shall be the responsibility of the Unit Coordinator to ensure that such photographs are retained until the potential need for use in any related civil proceeding has expired. If a subject alleges an injury that is not visible, a supervisor shall be notified and the location of the alleged injury should be photographed as described above. The Unit Coordinator will maintain liaison with the Animal Control Department to ensure that information regarding canine bites is not retained by its office. Canines used by law enforcement agencies are exempt from impoundment and reporting requirements to the Animal Control Department (Food and Agriculture Code § 31609(b)). 318.2.6 REPORTING CANINE INJURIES In the event that a canine is injured, the injury will be immediately reported to the Watch Commander. Medical care for any injured canine shall follow the protocol established in § 318.6 et seq. The injury will be documented on a Canine Use Report Form. 318.2.7 ASSIGNMENT OF CANINES The canine teams shall be assigned to the Field Operations Division to supplement and assist the Patrol Bureau. Canine teams should function primarily as cover units however; they may be assigned by the Watch Commander to other functions based on the needs of the watch at the time. Canine teams should not be assigned to handle matters that will take them out of service for extended periods of time unless absolutely necessary and only with the approval of the Watch Commander. 318.3 REQUEST FOR USE OF CANINE TEAMS Personnel within the Department are encouraged to freely solicit the use of the canines. Requests for a canine team from outside of the Patrol Bureau shall go through the Unit Coordinator or the Watch Commander. 318.3.1 REQUEST FOR ASSISTANCE FROM OTHER AGENCIES The Watch Commander or the Unit Coordinator must approve all requests for canine assistance from outside agencies, subject to the following provisions: (a) Canine teams shall not be used for any assignment that is not consistent with this policy. (b) The handier has the ultimate authority to decide whether the canine should be used for any specific assignment. (c) Canine teams shall not be called out while off-duty or used outside the boundaries of the City of Ukiah unless authorized by the Watch Commander or the Unit Coordinator. Canine Program - 89 Adopted: 2011108130 0 1995-2011 Lexipol, LLC Ukiah Police Department Policy Manual Canine Program (d) It shall be the responsibility of the canine handier to coordinate with outside agency personnel in order to minimize the risk of unintended injury. 318.3.2 REQUEST FOR PUBLIC DEMONSTRATIONS All public requests for a canine team shall be approved by the Unit Coordinator prior to making any commitment. Handlers shall not demonstrate any apprehension work to the public unless authorized to do so by the Unit Coordinator. 318.4 SELECTION OF CANINE HANDLERS The following are the minimum qualifications for the assignment of canine handler: (a) Ukiah Police Department officer (currently off probation) (b) Reside in an adequately fenced, single-family, residence (minimum five-foot high fence with locking gates) (c) Have a garage which can be secured and accommodate a canine unit (d) Live within 30 minutes travel time from the Ukiah City limits (e) Agree to be assigned to the position for a minimum of three years 318.5 CANINE HANDLER RESPONSIBILITIES 318.5.1 AVAILABILITY The handler shall be available for call-out under conditions specified by the Unit Coordinator. 318.5.2 CARE FOR THE CANINE AND EQUIPMENT The handier shall ultimately be responsible for the health and welfare of the canine and shall ensure that the canine receives proper nutrition, grooming, training, medical care, affection, and living conditions. The handier will be responsible for the following: (a) Unless required by a particular application, the handler shall not expose the canine to any foreseeable and unreasonable risk of harm. (b) The handler shall maintain all department equipment under his/her control in a clean and serviceable condition and when not on duty shall maintain the canine unit in a garage, secured from public view. (c) When a handier takes a vacation or extended number of days off, the assigned canine vehicle shall be maintained at the Police Department facility. (d) Handlers shall permit the Unit Coordinatorto conduct spontaneous on-site inspections of affected areas of their residence as well as the canine unit, to verify that conditions and equipment conform to this policy. (e) Any changes in the living status of the handler which may affect the lodging or environment of the canine shall be reported to the Unit Coordinator as soon as possible. (f) When off-duty, canines shall be maintained in kennels, provided by the City, at the homes of their handlers. When a canine is kenneled at the handler's home, the gate shall be secured with a lock. When off-duty, canines may be let out of their kennels while under the direct control of their handlers. Canine Program - 90 Adopted; 2011!46130 ©1995-2011 LeApol, LLC Ukiah Police Department Policy Manual Canine Program (g) The canine should be permitted to socialize in the home with the handler's family for short periods of time and under the direct supervision of the handler. (h) Under no circumstances will the canine be lodged at another location unless approved by the Unit Coordinator or Watch Commander. (i) When off-duty, handlers shall not involve their canines in any activity or conduct unless approved in advance by the Unit Coordinator or Watch Commander. Q) Whenever a canine handler anticipates taking a vacation or an extended number of days off, it may be necessary to temporarily relocate the canine. In those situations, the handler shall give reasonable notice to the Unit Coordinator so that appropriate arrangements can be made. 318.5.3 CANINE IN PUBLIC AREAS All canines shall be kept on a leash when in areas that allow access to the public. Exceptions would include specific police operations for which the canines are trained. (a) Canines shall not be left unattended in any area to which the public may have access. (b) When the canine unit is left unattended all windows and doors shall be secured in such a manner as to prevent unauthorized access to the dog. The handler shall also insure that the unattended unit remains inhabitable for the canine. 318.5.4 HANDLER COMPENSATION The canine handler shall be compensated for time spent in the care, feeding, grooming and other needs of the dog as provided in the Fair Labor Standards Act. The compensation shall be prescribed in the employee's Memorandum of Understanding. 318.6 MEDICAL CARE OF THE CANINE All medical attention shall be rendered by the designated canine veterinarian, except during an emergency as provided in Policy Manual § 318.6.2. 318.6.1 NON-EMERGENCY MEDICAL CARE Non-emergency medical care will be coordinated through the Unit Coordinator. Any indication that a canine is not in good physical condition shall be reported to the Unit Coordinator or the Watch Commander as soon as practical. All records of medical treatment shall be maintained in the canine handler's personnel file. 318.6.2 EMERGENCY MEDICAL CARE The handler shall notify the Unit Coordinator as soon as practicable when emergency medical care for the canine is required. Depending on the severity of the injury or illness, the canine shall either be treated by the designated veterinarian or transported to a designated emergency medical facility for treatment. If the handler and dog are out of the area, the handler may use the nearest available veterinarian. 318.7 TRAINING Before assignment in the field, each canine team shall be trained and certified to meet current POST standards. Cross-trained dog teams or those dog teams trained exclusively for the detection of narcotics and/or explosives shall be trained and certified to meet the Canine Program - 91 Adopted: 2011/06/30 ©1995-2011 LeApol, LLC Ukiah Police Department Policy Manual Canine Program standards established for such detection dogs by the California Narcotic Canine Association or other recognized and approved certification standards. The Unit Coordinator shall be responsible for scheduling periodic training for all department personnel in order to familiarize them with how to conduct themselves in the presence of department canines. 318.7.1 CONTINUED TRAINING Each canine team shall thereafter be recertified to current POST standards and the California Narcotic Canine Association or other recognized and approved certification standards on an annual basis. Additional training considerations are as follows: (a) Canine teams shall receive training as defined in the current contract with the department's canine training provider. (b) Canine handlers are encouraged to engage in additional training with approval of the Unit Coordinator. (c) To ensure that all training is consistent, no handier, trainer, or outside vendor is authorized to train to a standard that is contrary to the policies of the Ukiah Police Department. (d) All canine training shall be conducted while on-duty unless otherwise approved by the Unit Coordinator or Watch Commander. 318.7.2 FAILURE TO SUCCESSFULLY COMPLETE POST TRAINING Any dog team failing POST canine certification and, if cross-trained, the California Narcotic Canine Association or other recognized and approved certification standards shall not be deployed in the field until certification is achieved. When practical, pending successful certification, the canine handler shall be temporarily reassigned to regular patrol duties. 318.7.3 TRAINING RECORDS All canine training records shall be maintained in the canine handier's training file. 318.8 CANINE UNIT COORDINATOR RESPONSIBILITIES The Unit Coordinator shall be appointed by staff and shall supervise the Canine Program. The Unit Coordinator is directly responsible to the Field Operations Division Commander. The Unit Coordinator shall be responsible for, but not limited to, the following: (a) Review all Canine Use Reports to insure compliance with policy and to identify training issues and other needs of the program. (b) Maintain liaison with the vendor kennel. (c) Maintain liaison with administrative staff and functional supervisors. (d) Maintain liaison with other agency canine coordinators. (e) Maintain accurate records to document canine activities. (f) Recommend and oversee the procurement of needed equipment and services for the unit. (g) Be responsible for scheduling all canine related activities. (h) Ensure the canine teams are scheduled for continuous training to maximize the capabilities of the teams. Canine Program - 92 Adopted: 2011/06130 OO 1995-2011 Lexipol, LLC Ukiah Police Department Policy Manual Canine Program 318.9 CONTROLLED SUBSTANCE TRAINING AIDS Controlled substance training aids are required to effectively train and maintain drug detecting dogs. Further, controlled substances can also be an effective training aid during training sessions for law enforcement personnel and the public. Health & Safety Code § 11367.5 provides that any Sheriff, Chief Of Police, the Chief of the Bureau of Controlled Substance Enforcement, or the Commissioner of the California Highway Patrol, or a designee thereof may, in his or her discretion, provide controlled substances in his or her possession, for training purposes: (a) To any duly authorized peace officer or civilian drug detection canine trainer working under the direction of a law enforcement agency (b) Provided the controlled substances are no longer needed as criminal evidence (c) Provided the person receiving the controlled substances, if required by the Drug Enforcement Administration, possesses a current and valid Drug Enforcement Administration registration that specifically authorizes the recipient to possess controlled substances while providing substance abuse training to law enforcement or the community or while providing canine drug detection training 318.9.1 PROCEDURES Due to the responsibilities and liabilities involved with possessing readily usable amounts of controlled substances and the ever-present danger of accidental ingestion of these controlled substances by the canine, the following procedure shall be strictly followed: (a) All necessary controlled substance training samples shall be acquired from the Ukiah Police Department's evidence personnel or from allied agencies authorized by Health & Safety Code § 11367.5 to provide controlled substance training samples. All controlled substance training samples shall be weighed and tested prior to dispensing to the individual canine handler (b) The weight and test results shall be recorded and maintained by this department; (c) Any person receiving controlled substance training samples pursuant to Health & Safety Code § 11367.5 shall maintain custody and control of the controlled substances and shall keep records regarding any loss of, or damage to, those controlled substances (d) All controlled substance training samples will be inspected, weighed, and tested quarterly. The results of the quarterly testing shall be recorded and maintained by the canine coordinator with a copy forwarded to the dispensing agency (e) All controlled substance training samples will be stored in locked metal boxes at all times, except during training. The locked metal boxes shall be secured in the trunk of the canine handler's assigned patrol unit, or stored in a locked evidence locker. There are no exceptions to this procedure (f) The Canine Unit Coordinator shall periodically inspect every controlled substance training sample for damage or tampering and take any appropriate action; (g) Any unusable controlled substance training samples shall be returned to the Property and Evidence Office or to the dispensing agency (h) All controlled substance training samples shall be returned to the dispensing agency upon the conclusion of the training or upon demand by the dispensing agency Canine Program - 93 Adopted: 209110613001995-2011 LeApol, LLC Ukiah Police Department Policy Manual Canine Program 318.9.2 IMMUNITY All duly authorized peace officers acting in the performance of their official duties and any person working under their immediate direction, supervision or instruction are immune from prosecution under the Uniform Controlled Substance Act while providing substance abuse training or canine drug detection training (Health & Safety Code § 11367.5(b)). 318.10 EXPLOSIVE TRAINING AIDS Explosive training aids are required to effectively train and maintain the skills of explosives detection dogs and can also provide effective training for law enforcement personnel and the public. Peace officers are permitted by law to possess, transport, store or use explosives or destructive devices while acting within the scope and course of employment (Penal Code § 12302). Explosive training aids designed specifically for K-9 teams should be used whenever feasible. Due to the safety concerns in the handling and transportation of explosives, inert or non-hazardous training aids should be employed whenever feasible. The use of explosives or destructive devices for training aids is subject to the following requirements: (a) All explosive training aids, when not in use, shall be properly stored in a secure facility appropriate for the type of materials they contain. (b) An inventory ledger shall be maintained to document the type and quantity of explosives training aids held by the Canine Unit. (c) The Canine Coordinator shall be responsible to verify the explosives training aids on hand against the inventory ledger once each quarter. (d) Only members of the Canine Unit shall have access to the explosives training aid storage facility. (e) A primary and secondary custodian will be designated to minimize the possibility of loss of explosive training aids during and after the training. Generally, the handler will be designated as the primary custodian while the trainer or second person on scene will be designated as the secondary custodian. (f) Any lost or damaged explosives training aid shall be promptly reported to the Unit Supervisor in writing who will determine if any further action will be necessary. Any loss of explosives will be reported to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Canine Program - 94 Adopted: 2411/06130 01995-2011 LeApol, LLC JIM ITEM NO.: WTW MEETING DATE: AGENDA SUMMARY REPORT 13b December 7, 2011 APPROVAL OF SENATE BILL 1X 2 RENEWABLE ENERGY RESOURCE PROCUREMENT PLAN AND ENFORCEMENT PROGRAM AND ADOPT RESOLUTION APPROVING CITY OF UKIAH'S RENEWABLE ENERGY RESOURCES PROCUREMENT PLAN PER SENATE BILL 1X 2. ADDITIONALLY, BY SEPARATE RESOLUTION, APPROVE CITY OF UKIAH'S ENFORCEMENT PROGRAM OF THE RENEWABLE ENERGY RESOURCES PROCUREMENT PLAN. (EUD) Background: On April 12, 2011 Governor Brown signed into law SB 1X 2, establishing a new Renewable Portfolio Standard (RPS) of 33% by 2020 for all load serving entities in California. City of Ukiah Electric, as a publicly owned utility, is covered under the new law. SB 1X 2 establishes minimum quantities of renewable that load serving entities must procure through 2020 ranging from 20% of retail sales by 2013 to 33% by 2020. In addition, the new law specifies the types of electric generator resources that qualify as renewable resources and sets forth limits on the types of resources and power transactions that a load serving entity can claim for purposes of demonstrating compliance with the new RPS policy. Each load serving entity covered under the new law, including AMP, is required to adopt and implement a renewable energy procurement plan (referred to herein as the "RIPS Procurement Plan"). Additionally, the law requires each local governing board of a publicly owned utility to adopt a program for the enforcement (Enforcement Program) of the RPS Procurement Plan by January 1, 2012. Discussion: Exhibit A presents the City of Ukiah's RPS Procurement Plan. This plan is based on a model plan developed by the Northern California Power Agency (NCPA) for use by its members. The RPS Procurement Plan, which is comprised of 13 sections, requires the City of Ukiah to procure minimum quantities of electricity products sourced from eligible renewable resources, expressed as a percentage of total kilowatt hours sold to retail end-use customers during each of three compliance periods. In addition to Recommended Action(s): By resolution, approve City of Ukiah's Renewable Energy Resources Procurement Plan per Senate Bill (S13) 1X 2. Additionally, by separate resolution, approve City of Ukiah's Enforcement Program of the Renewable Energy Resources Procurement Plan. (EUD) Alternative Council Option(s): Citizens advised: Requested by: Mel Grandi, Electric Utility Director Prepared by: Mel Grandi, Electric Utility Director Coordinated with: Jane Chambers, City Manager and Scott Tomashefsky, Regulatory Affairs Manager, NCPA Attachments: A. City of Ukiah's Renewable Energy Resources Procurement Plan per Senate Bill 1X 2 B. Resolution Approving City of Ukiah's Renewable Energy Resources Procurement Plan Per Senate Bill 1X 2 C. City of Ukiah's Enforcement Program of the Renewable Energy Resources Procurement Plan per Senate Bill 1X 2 D. Resolution Approving City of Ukiah's Enforcement Program of the Renewable Enerav Resources Procurement Plan per Senate Bill 1X 2 Approved:- 2~.-- J de/Chambers, City Manager establishing minimum procurement targets for each compliance period, the plan includes the following key components: 1) Defines the procurement content categories for resources used to demonstrate compliance with the targets; 2) Establishes limits on the use of the procurement content categories; 3) Outlines procedures for applying excess renewables from one compliance period to a subsequent compliance period; 4) Describes procedures allowing for a waiver of timely compliance due to mitigating circumstances; 5) Allows for the adoption of cost limitations for procurement expenditures by the Council; 6) Summarizes external reporting requirements; and 7) Provides for annual review of the plan. Exhibit C presents City of Ukiah's Enforcement Program of the RIPS Procurement Plan. The Enforcement Program commits the Utility Director to cause the RIPS Procurement Plan to be reviewed annually. For each review, conducted at the end of a compliance period, City of Ukiah shall verify that it has met the minimum procurement target applicable to the compliance period. For each review, conducted at the end of an intervening year within a compliance period, City of Ukiah shall ensure that the utility is making reasonable progress toward meeting the end of compliance period target. The Enforcement Plan further provides that in the event that a target is not/will not be met, City of Ukiah will assess the applicability of: (1) applying excess procurement, if any, from a prior compliance period to a subsequent compliance period; (2) securing a waiver of timely compliance due to the existence of a qualifying mitigating circumstance; and (3) excusing performance based on cost limitations on procurement expenditures. In the event that it is determined that the City of Ukiah has failed to comply with the provisions of the RPS Procurement Plan, the Enforcement Plan commits the Council to take steps to correct any untimely compliance, including: a. Reviewing the RIPS Procurement Plan to determine what changes, if any, are necessary to ensure compliance in the next compliance period; b. Requiring quarterly reports from the Electric staff regarding the progress being made toward meeting the compliance obligation for the next compliance period; C. Requiring the Electric staff to report on the status of meeting subsequent compliance targets and all steps being taken to ensure that the obligation is timely met. Both the RPS Procurement Plan and Enforcement Program shall have an effective date of January 1, 2012. SB1X 2 requires a minimum of 30 days' advance notice to the public and the California Energy Commission of any meeting held for purposes of adopting the Enforcement Program. This noticing requirement was satisfied by faxing to the media and posting notice on the City of Ukiah website, and emailing a link to the section of the City of Ukiah's website containing the public notice to the California Energy Commission. SIB 1X 2 also requires that meeting materials related to the RPS Procurement Plan be shared with the public and the California Energy Commission contemporaneous with the distribution of such material to the Council. This requirement was satisfied by posting all meetings on the City of Ukiah website and providing a link to the California Energy Commission. Fiscal Impact: There is no direct financial impact associated with the development and approval of the RPS Procurement Plan and Enforcement Program, as required by SIB 1X 2. F] Budgeted FY 11/12 F-1 New Appropriation Fx-] Not Applicable F-1 Budget Amendment Required Amount Budgeted Source of Funds (title and Account Number Addit. Appropriation Requested ATTACHMENT Ukiah Electric Utility Renewable Energy Resources Procurement Plan Per Senate Bill 1x 2 Approved by the Ukiah City Council. December 7, 2011 INTRODUCTION This document presents the Renewable Energy Resources Procurement Plan of the Ukiah Electric Utility (Ukiah), as required for compliance with Senate Bill (SB) 1X 2. This legislation, which was enacted in the 2011-2012 First Extraordinary Session of the Legislature, modifies the state's renewable portfolio standard (RPS) program and sets forth new RPS requirements applicable to publicly owned utilities (POUs). Ukiah, as a POU, is covered under the new legislation. Pursuant to Public Utilities Code § 399.30(a), each POU must adopt and implement a renewable energy resources procurement plan (referred to herein as the "RPS Procurement Plan"). In addition to the development of an RPS Procurement Plan, SB 1X 2 requires POUs to adopt and implement a separate program for the enforcement of the RPS Procurement Plan by January 1, 2012.1 Ukiah's enforcement program is not addressed in this document, but rather, in a separate report. Ukiah's RPS Procurement Plan, as reflected in Sections 1-13 below consists of. (1) plan elements that are directly mandated by the legislation; (2) measures that address each of the optional provisions set forth in §399.30(d); and (3) RPS reporting provisions. Where appropriate, this RPS Procurement Plan includes section citations to the legislation. 1. Purpose 399.30(a)) In order to fulfill unmet long-term generation resource needs, Ukiah adopts and implements this RPS Procurement Plan that requires the utility to procure a minimum quantity of electricity products from eligible renewable energy resources, including renewable energy credits, as a specified percentage of Ukiah's total kilowatt hours sold to its retail end-use customers, each compliance period, to achieve the targets specified in SB 1X 2. 2. Compliance Periods 399.30(b)) A. Compliance Period 1: January 1, 2011, to December 31, 2013, inclusive. B. Compliance Period 2: January 1, 2014, to December 31, 2016, inclusive. 1 Pursuant to § 399.30(e), POUs must adopt a "program for enforcement" of the RPS Procurement Plan on or before January 1, 2012, at a publicly noticed meeting with not less than 30 days prior notice given to the public. Effective: January 1, 2012 - 1- C. Compliance Period 3: January 1, 2017, to December 31, 2020, inclusive. D. Annual Compliance Periods: Annually after 2020. 3. Procurement Targets of Renewable Energy Resources for Each Compliance Period 399.30(c) (1) and (2)) A. During Compliance Period 1, January 1, 2011 to December 31, 2013, Ukiah shall procure renewable energy resources equivalent to an average of at least twenty percent (20%) of retail sales. B. By the end of Compliance Period 2, December 31, 2016, Ukiah shall procure renewable energy resources equivalent to at least twenty-five percent (25%) of retail sales. C. By the end of Compliance Period 3, December 31, 2020, Ukiah shall procure renewable energy resources equivalent to at least thirty-three percent (33%) of retail sales. D. Commencing on December 31, 2021, and annually thereafter, Ukiah shall procure renewable energy resources equivalent to at least thirty-three percent (33%) of retail sales. The procurement targets listed above are minimum requirements. The City Council may determine that a higher percentage of renewable energy resources is appropriate in any given compliance period. The method used to determine the actual renewable energy resource percentage achieved for a given calendar year shall be to: (i) sum the total metered generation from each of Ukiah's eligible renewable resources and qualifying purchases in Megawatt hours (MWh) during the preceding calendar year, (ii) subtract sales, if any, of eligible renewable resources during the same time period, and (iii) divide the result by the total energy sold to Ukiah's retail end-use customers (in MWh) in the same time period. 4. Reasonable Progress Towards Meeting Compliance Period Targets During Intervening Years 399.30(c) (1) and (2)) A. By December 31, 2014, Ukiah shall demonstrate that it is making reasonable progress towards ensuring that it shall meet the twenty-five percent (25%) RPS target by 2016. B. By December 31, 2015, Ukiah shall demonstrate that it is making reasonable progress towards ensuring that it shall meet the twenty-five percent (25%) RPS target by 2016. Effective: January 1, 2012 -2- C. By December 31, 2017, Ukiah shall demonstrate that it is making reasonable progress towards ensuring that it shall meet the thirty-three percent (33%) RPS target by 2020. D. By December 31, 2018, Ukiah shall demonstrate that it is making reasonable progress towards ensuring that it shall meet the thirty-three percent (33%) RPS target by 2020. E. By December 31, 2019, Ukiah shall demonstrate that it is making reasonable progress towards ensuring that it shall meet the thirty-three percent (33%) RPS target by 2020. 5. Procurement Requirements - Definitions for Content Categories (§399.30(c) (3)) Ukiah's RPS Procurement Plan shall consist of procurement Content Categories that meet the criteria for the following eligible renewable energy resource electricity products: A. Content Category I (consistent with § 399.16(b) (1): Resources in this category shall either: (A) Have a first point of interconnection with a California balancing authority, have a first point of interconnection with distribution facilities used to serve end users within a California balancing authority area, or are scheduled from the eligible renewable energy resource into a California balancing authority without substituting electricity from another source. The use of another source to provide real-time ancillary services required to maintain an hourly or sub-hourly import schedule into a California balancing authority shall be permitted, but only the fraction of the schedule actually generated by the eligible renewable energy resource shall count toward this portfolio content category. (B) Have an agreement to dynamically transfer electricity to a California balancing authority. B. Content Category 2 (consistent with _ 399.16(b) (2)): Resources in this category shall include firmed and shaped eligible renewable energy resource electricity products providing incremental electricity and scheduled into a California balancing authority. C. Content Category3consistent with § 399.16(b)(3)): Resources in this category shall include eligible renewable energy resource electricity products, or any fraction of the electricity generated, including unbundled renewable energy credits, that do not qualify under the criteria of Content Category 1 or Content Category 2. D. Grandfathered Resources 399.16(d)): Any contract or ownership agreement originally executed prior to June 1, 2010, shall count in full towards the procurement requirements, if all of the following conditions are met: Effective: January 1, 2012 -3- (1) The renewable energy resource was eligible under the rules in place as of the date when the contract was executed. (2) Any contract amendments or modifications occurring after June 1, 2010, do not increase the nameplate capacity or expected quantities of annual generation, or substitute a different renewable energy resource. (3) The duration of the contract may be extended if the original contract specified a procurement commitment of fifteen (15) or more years. (4) "Eligible renewable energy resource" means an electrical generating facility that meets the definition of a "renewable electrical generation facility" in Section 25741 of the Public Resources Code, subject to the following: (C) A facility approved by the governing board of a local publicly owned electric utility prior to June 1, 2010, for procurement to satisfy renewable energy procurement obligations adopted pursuant to former Section 387, shall be certified as an eligible renewable energy resource by the Energy Commission pursuant to this article, if the facility is a "renewable electrical generation facility" as defined in Section 25741 of the Public Resources Code. 399.12(e) (1) (C). Resources procured prior to June 1, 2010 shall be counted for RPS compliance without regard to the limitations on the use of each portfolio Content Category as described in Section 6. 6. Procurement Requirements - Quantity for Content Categories 399.30(c) (3), § 399.16(c) (1) and (2)) A. Compliance Period 1 Procurement Requirements: For Compliance Period 1, Ukiah shall procure not less than fifty percent (50%) of the eligible renewable energy resource electricity products associated with contracts executed after June 1, 2010 from Content Category 1, and not more than twenty-five percent (25%) from Content Category 3. B. Compliance Period 2 Procurement Requirements: For Compliance Period 2, Ukiah shall procure not less than sixty-five percent (65%) of the eligible renewable energy resource electricity products associated with contracts executed after June 1, 2010 from Content Category 1, and not more than fifteen percent (15%) from Content Category 3. C. Compliance Period 3 Procurement Requirements: For Compliance Period 3, Ukiah shall procure not less than seventy-five percent (75%) of the eligible renewable energy resource electricity products associated with contracts executed after June 1, 2010 from Content Category 1, and not more than ten percent (10%) from Content Category 3. Effective: January 1, 2012 -4- D. Annual Procurement Requirements After 2020: Beginning in calendar year 2021 and annually thereafter, Ukiah shall procure not less than seventy-five percent (75%) of the eligible renewable energy resource electricity products associated with contracts executed after June 1, 2010 from Content Category 1, and not more than ten percent (10%) from Content Category 3. 7. Excess Procurement 399.30(d) (1), §399.13(a) (4) (B)) Ukiah shall be allowed to apply excess procurement (Excess Procurement) from one compliance period to subsequent compliance periods as long as the following conditions are met: A. Ukiah may accumulate, beginning on January 1, 2011, Excess Procurement from one Compliance Period to be applied in any subsequent Compliance Period. B. In calculating the quantity of Excess Procurement, Ukiah shall deduct from actual procurement quantities, the total amount of procurement associated with contracts of less than ten (10) years in duration. C. Eligible resources must be from Content Category 1 or Content Category 2 or Grandfathered Resources to be Excess Procurement. D. Resources from Content Category 3 shall not be counted as excess procurement. 8. Waiver of Timely Compliance 399.30(d) (2), § 399.15(b) (5)) A. Waiver of Timely Compliance: Enforcement of timely compliance shall be waived if Ukiah demonstrates that any of the following conditions are beyond Ukiah's control, and will prevent timely compliance: Inadequate Transmission 399.15(b)(5)(A)): There is inadequate transmission capacity to allow for sufficient electricity to be delivered from Ukiah's proposed eligible renewable energy resource projects using the current operational protocols of Ukiah's Balancing Authority, the California Independent System Operator (CAISO). In making its findings relative to the existence of this condition, Ukiah's deliberations shall include, but not be limited to the following: (i) Whether Ukiah has undertaken, in a timely fashion, reasonable measures under its control and consistent with its obligations under local, state, and federal laws and regulations, to develop and construct new transmission lines or upgrades to existing lines intended to transmit electricity generated by eligible renewable energy resources. In Effective: January 1, 2012 -5- determining the reasonableness of Ukiah's actions, Ukiah shall consider its expectations for full-cost recovery for these transmission lines and upgrades, and (ii) Whether Ukiah has taken all reasonable operational measures to maximize cost-effective deliveries of electricity from eligible renewable energy resources in advance of transmission availability. 2. Permitting, interconnection, or other factors that delayed procurement or insufficient supply (399.15(b) (5) (B)). In making its findings relative to the existence of this condition, Ukiah's deliberations shall include, but not be limited to the following: (i) Whether Ukiah prudently managed portfolio risks, including relying on a sufficient number of viable projects; (ii) Whether Ukiah sought to develop one of the following: its own eligible renewable energy resources, transmission to interconnect to eligible renewable energy resources, or energy storage used to integrate eligible renewable energy resources. (iii) Whether Ukiah procured an appropriate minimum margin of procurement above the minimum procurement level necessary to comply with the renewables portfolio standard to compensate for foreseeable delays or insufficient supply; (iv) Whether Ukiah has taken reasonable measures, under its control to procure cost-effective distributed generation and allowable unbundled renewable energy credits; (v) Whether actions or events beyond the control of Ukiah have adversely impacted timely deliveries of renewable energy resources including, but not limited to, acts of nature, terrorism, war, labor difficulty, civil disturbance, or market manipulation. Unanticipated curtailment to address needs of the balancing authority 399.15(b) (5) (C)). B. Procedures Upon Approving Waiver: In the event of a Waiver of Timely Compliance due to any of the factors set forth above, Ukiah shall implement the following procedures: Establish additional reporting for intervening years to demonstrate that reasonable actions under the Ukiah's control are being taken (§399.15(b) (6))• Effective: January 1, 2012 -6- 2. Require a demonstration that all reasonable actions within Ukiah's control have been taken to ensure compliance in order to grant the waiver 399.15(b) (7)). C. Prior Deficits: In no event shall deficits from prior compliance periods be added to future compliance periods 399.15(b) (9)). 9. Cost Limitations for Expenditures 399.30(d) (3), § 399.15(c)) A. Cost Limitations for Expenditures: Ukiah, at its sole discretion, may elect to establish cost limitations for all eligible renewable energy resources used to comply with the renewables portfolio standard. Any such cost limitations will be developed consistent with §399.15(c). Ukiah shall review the need for cost limitations as part of the annual review process described in Section 12. 10. Exclusive Control (§399.30(m)): In all matters regarding compliance with the RPS Procurement Plan, Ukiah shall retain exclusive control and discretion over the following: A. The mix of eligible renewable energy resources procured by Ukiah and those additional generation resources procured by Ukiah for purposes of ensuring resource adequacy and reliability. B. The reasonable costs incurred by Ukiah for eligible renewable energy resources owned by it. 11. Reporting 399.30(f), § 399.30(8), § 399.30(l)) A. Deliberations on Procurement Plan (§399.30(f)): Public Notice: Annually, Ukiah shall post notice of meetings if the Council will deliberate in public regarding this RPS Procurement Plan. 2. Notice to the California Energy Commission (CEC): Contemporaneous with the posting of a notice for such a meeting, Ukiah shall notify the CEC of the date, time and location of the meeting in order to enable the CEC to post the information on its Internet website. 3. Documents and Materials Related to Procurement Status and Plans: When Ukiah provides information to the Council related to its renewable energy resources procurement status and future plans, for the Board's consideration at a noticed public meeting, Ukiah shall make that information available to the public and shall provide the CEC with an electronic copy of the documents for posting on the CEC's Internet website. B. Annual Report to CEC regarding Contract Execution (§399.30(g)) Effective: January 1, 2012 -7- Annually, Ukiah shall submit a report to the CEC regarding procurement contracts executed during the prior year. 2. Ukiah's annual report to the CEC regarding contract execution shall include all of the following: a. A description of the eligible renewable energy resource, including the duration of the contract or electricity purchase agreement. b. A description and identification of the electrical generating facility providing the eligible renewable energy resource under the contract. C. An estimate of the percentage increase in Ukiah's total retail sales of electricity from eligible renewable energy resources that will result from the contract. C. Report to CEC and Customers (§399.30(1)) Annually, Ukiah shall provide a report to the CEC and customers regarding renewable resources. 2. Ukiah's annual report to the CEC regarding renewable resources shall include all of the following: a. Expenditures of public goods funds collected pursuant to Section 385 for eligible renewable energy resource development, including programs descriptions, expenditures, and expected/actual results. b. The resource mix used to serve its customers by energy source. C. Ukiah's status in implementing the renewables portfolio standard pursuant to § 399.30(a) and Ukiah's progress toward attaining the standard following implementation of the RPS Procurement Plan. 12. Program Review Ukiah's RPS Procurement Plan shall be reviewed by the Council in accordance with Ukiah's "Renewable Portfolio Standard Enforcement Program." 13. Plan Modifications/Amendments This RPS Procurement Plan may be modified or amended by an affirmative vote of the Council during a public meeting. Any Board action to modify or amend the plan must be publicly noticed in accordance with Section 11. Effective: January 1, 2012 -8- ATTACHMENT CITY OF UKIAH RESOLUTION NO. 2011- APPROVAL OF THE CITY OF UKIAH'S RENEWABLE ENERGY RESOURCE PROCUREMENT PLAN WHEREAS, on April 12, 2011, the Governor of the State of California signed Senate Bill 2 of the First Extraordinary Session (SB 1X 2) into law; and WHEREAS, SB 1X 2 states the intent of the Legislature is that the amount of electricity generated per year from eligible renewable energy resources be increased to an amount that equals at least 20% of total electricity sold to retail customers in California per year by December 31, 2013 and at least 33% by December 31, 2020; and WHEREAS, in compliance with Public Utilities Code Section 399.30(a), each publicly owned utility, including City of Ukiah Electric Utility, must adopt and implement a renewable energy resources procurement plan (RPS Procurement Plan) that requires the utility to procure minimum quantities of electricity products sourced from eligible renewable resources, expressed as a percentage of total kilowatt-hours sold to the utility's retail end- use customers during each of three compliance periods; WHEREAS, in compliance with SB 1X 2, City of Ukiah Electric Utility staff developed an RPS Procurement Plan based on a model plan drafted by the Northern California Power Agency; and WHEREAS, the RPS Procurement Plan, among other things: defines compliance periods, includes minimum renewable procurement targets for each compliance period, defines renewable procurement content categories, establishes certain exemptions from timely compliance due to qualifying mitigating circumstances consistent with SB 1X 2, and requires annual review for purposes of assessing compliance; and WHEREAS, City of Ukiah Electric Utility has provided not less than 30 days' public notice of the proposed adoption of the RPS Procurement Plan. NOW, THERFORE, BE IT RESOLVED that the Ukiah City Council hereby approves City of Ukiah Electric's Renewable Energy Resource Procurement Plan. BE IT FURTHER RESOLVED, that the Renewable Energy Resources Procurement Plan shall be effective January 1, 2012. PASSED AND ADOPTED by the City of Ukiah Council on December 7, 2011 by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: Attest Mari Rodin, Mayor JoAnne Currie, City Clerk ATTACHMCNT City of Ukiah Electric Utility Department Renewable Energy Resources - Enforcement Program Per Senate Bill IX 2 The City of Ukiah shall have a program for the enforcement of RPS program, which shall include all of the provisions, set forth herein and shall be known as the City's "RPS Enforcement Program"; 2. The RPS Enforcement Program shall be effective January 1, 2012; 3. Not less than ten (10) days' advance notice shall be given to the public before any meeting is held to make a substantive change to the RPS Enforcement Program; 4. Annually, the Director of the City of Ukiah's Electric Utility shall cause to be reviewed, the City of Ukiah's RPS Procurement Plan to determine compliance the RPS program; 5. Annual review of the RPS Procurement Plan shall include consideration of each of the following elements: A. By December 31, 2013 (end of Compliance Period 1): • Verify that City of Ukiah has met an average of twenty percent (20%) of retail sales with eligible renewable resources from the specified Content Categories for the period January 1, 2011 to December 31, 2013. • If targets are not met, the City of Ukiah must: o Ensure than any Waiver of Timely Compliance was compliant with the provisions in the RPS Procurement Plan, o Review the applicability and appropriateness of excusing performance based on the Cost Limitations on Expenditures provisions of the RPS Procurement Plan. B. By December 31, 2014: • Ensure that the City of Ukiah is making reasonable progress toward meeting the December 31, 2016 compliance obligation of twenty-five percent (25%) of retail sales with eligible renewable resources, consistent with the RPS Procurement Plan. C. By December 31, 2015: • Ensure that the City of Ukiah is making reasonable progress toward meeting the December 31, 2016 compliance obligation of twenty-five percent (25%) of retail sales with eligible renewable resources, consistent with the RPS Procurement Plan. Electric Utility Approved: December 7, 2011 Revision: 0 Renewable Enemy Resources - Enforcement Program (Continued) D. December 31, 2016 (end of Compliance Period 2): • Verify that the City of Ukiah has met twenty-five percent (25%) of retail sales with eligible renewable resources from the specified Content Categories for the period ending December 31, 2016; If targets are not met, the City of Ukiah must: o Review the applicability of applying Excess Procurement from Compliance Period 1 consistent with the provisions of the RPS Procurement Plan, o Ensure than any Waiver of Timely Compliance was compliant with the provisions in the RPS Procurement Plan, o Review applicability and appropriateness of excusing performance based on the Cost Limitations on Expenditures provisions of the RPS Procurement Plan. E. By December 31, 2017: • Ensure that the City of Ukiah is making reasonable progress toward meeting the December 31, 2020 compliance obligation of thirty-three percent (33%) renewable resources electricity, consistent with the RPS Procurement Plan. F. By December 31, 2018: • Ensure that the City of Ukiah is making reasonable progress toward meeting the December 31, 2020 compliance obligation of thirty-three percent (33%) renewable resources electricity, consistent with the RPS Procurement Plan. G. By December 31, 2019: • Ensure that the City of Ukiah is making reasonable progress toward meeting the December 31, 2020 compliance obligation of thirty three percent (33%) renewable resources electricity, consistent with the RPS Procurement Plan. H. December 31, 2020 (end of Compliance Period 3), and annually thereafter, • Verify that that the City of Ukiah met thirty-three percent (33%) of retail sales with eligible renewable resources from the specified Content Categories, consistent with the RPS Procurement Plan; • If targets are not met, the City of Ukiah must: o Review the applicability of applying Excess Procurement from a previous Compliance Period consistent with the provisions of the RPS Procurement Plan, Electric Utility Approved: December 7, 2011 Revision: 0 Renewable Energy Resources - Enforcement Program (Continued) o Ensure than any Waiver of Timely Compliance was compliant with the provisions in the RPS Procurement Plan, o Review applicability and appropriateness of excusing performance based on the Cost Limitations on Expenditures provisions of the RPS Procurement Plan. 6. If it is determined that the City of Ukiah Electric Utility has failed to comply with the provisions of its RPS Procurement Plan, the City Manager shall take steps to correct any untimely compliance, including: a. review the City of Ukiah's RPS Procurement Plan to determine what changes, if any, are necessary to ensure compliance in the next Compliance Period; b. report quarterly to the City Council regarding the progress being made toward meeting the compliance obligation for the next Compliance Period; C. report to the City Council regarding the status of meeting subsequent compliance targets, and all steps being taken to ensure that the obligation is timely met. 7. Effective Date: This Resolution shall be effective on January 1, 2012. Electric Utility Approved: December 7, 2011 Revision: 0 ATTAC!- IN C:NT RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVAL OF A PROGRAM FOR ENFORCEMENT OF THE RENEWABLE PORTFOLIO STANDARDS PROGRAM BE IT RESOLVED BY THE CITY OF UKIAH AS FOLLOWS: WHEREAS, the State of California has an existing California Renewables Portfolio Standard Program (RPS program) that is intended to increase the amount of electricity generated each year from eligible renewable energy resources; WHEREAS, on April 12, 2011, the Governor of the State of California signed California Senate Bill 2 of the First Extraordinary Session (SBX1-2, Chapter 1, Statutes of 2011, First Extraordinary Session), known as the California Renewable Energy Resources Act; WHEREAS, on September 9, 2011, the California Legislature ended the First Extraordinary Session; WHEREAS, SBX1-2 becomes effective on December 10, 2011, ninety-one days after the end of the First Extraordinary Session; WHEREAS, SBX1-2 states the intent of the Legislature that the amount of electricity generated per year from eligible renewable energy resources be increased to an amount that equals at least 20% of the total electricity sold to retail customers in California per year by December 31, 2013, and 33% by December 31, 2020; WHEREAS, pursuant to the provisions of Public Utilities Code section 399.30(a), the City of Ukiah must adopt and implement a renewable energy resources procurement plan (hereinafter referred to as the "RPS Procurement Plan") to fulfill unmet long-term generation resource needs, that requires the City of Ukiah to procure a minimum quantity of electricity products from eligible renewable energy resources, including renewable energy credits, as a specified percentage of the total kilowatt-hours sold to the City of Ukiah's retail end-use customers each compliance period, to achieve specified procurement targets; WHEREAS, the City has adopted and implemented, or will adopt and implement, an RPS Procurement Plan that includes compliance periods (Compliance Periods) pursuant to Public Utilities Code section 399.30(b). Such Compliance Periods shall be January 1, 2011 to December 31, 2013, inclusive (Compliance Period 1), January 1, 2014 to December 31, 2016, inclusive (Compliance Period 2), January 1, 2017 to December 31, 2020, inclusive (Compliance Period 3), and each calendar year after 2020; WHEREAS, the City of Ukiah has adopted and implemented, or will adopt and implement, an RPS Procurement Plan that includes specified procurement targets (Procurement Targets) of renewable energy resources for each Compliance Period pursuant to Public Utilities Code section 399.30(c) (1) and (2). Procurement Targets must average twenty percent (20%) of retail sales for the period January 1, 2011 to December 31, 2013, must meet twenty-five percent (25%) of retail sales by December 31, 2016, Resolution of the City of Ukiah Adopting a Program for the Enforcement of the Renewable Portfolio Standard Program Page I of 7 must meet thirty-three percent (33%) of retail sales by December 31, 2020, and must meet thirty-three percent (33%) of retail sales for all years thereafter; WHEREAS, the City of Ukiah has adopted and implemented, or will adopt and implement, an RPS Procurement Plan that includes provisions that address a demonstration of reasonable progress in 2014 and 2015 to ensure the twenty five percent (25%) RPS procurement requirement by 2016 and reasonable progress in each of 2017, 2018, and 2019 to ensure the thirty three percent (33%) RPS procurement requirement by 2020, pursuant to Public Utilities Code section 399.30(c) (2); WHEREAS, the City of Ukiah has adopted and implemented, or will adopt and implement an RPS Procurement Plan that includes definitions for three renewable product content categories (Content Categories) pursuant to Public Utilities Code section 399.30(c)(3) and consistent with Public Utilities Code section 399.16; WHEREAS, the City of Ukiah's RPS Procurement Plan shall include "Content Category 1"; consistent with Public Utilities Code section § 399.16(b)(1) (A) and (B), Content Category 1, shall include renewable energy resource electricity products that either (a) have a first point of interconnection with a California balancing authority, have a first point of interconnection with distribution facilities used to serve end users within a California balancing authority area, or are scheduled from the eligible renewable energy resource into a California balancing authority without substituting electricity from another source, and which may include the use of another source to provide real-time ancillary services required to maintain an hourly or subhourly import schedule into a California balancing authority, but only the fraction of the schedule actually generated by the eligible renewable energy resource shall count toward this portfolio content category, or (B) have an agreement to dynamically transfer electricity to a California balancing authority; WHEREAS, the City of Ukiah's RPS Procurement Plan shall include "Content Category 2"; consistent with Public Utilities Code section 399.16(b)(2), Content Category 2 shall include firmed and shaped eligible renewable energy resource electricity products providing incremental electricity and scheduled into a California balancing authority; WHEREAS, the City of Ukiah's RPS Procurement Plan shall include "Content Category 3"; consistent with Public Utilities Code § 399.16(b)(3), Content Category 3 shall include eligible renewable energy resource electricity products, or any fraction of the electricity generated, including unbundled renewable energy credits, that do not qualify under the criteria for Content Category 1 or Content Category 2; WHEREAS, the City of Ukiah has adopted and implemented, or will adopt and implement, an RPS Procurement Plan that includes the minimum procurement requirements (Procurement Requirements) of eligible renewable energy resource electricity products associated with contracts executed after June 1, 2010 for each Compliance Period, consistent with Public Utilities Code section 399.30(c)(3) and section 399.16; WHEREAS, the City of Ukiah's RPS Procurement Plan shall include Content Category 1 Procurement Requirements of not less than fifty percent (50%) of the eligible renewable energy resource electricity for Compliance Period 1, not less than sixty-five percent (65%) of the eligible renewable energy resource electricity for Compliance Period 2, and not less than seventy-five percent (75%) of the Resolution of the City of Ukiah Adopting a Program for the Enforcement of the Renewable Portfolio Standard Program Page 2 of 7 eligible renewable energy resource electricity for Compliance Period 3 and every year thereafter, consistent with Public Utilities Code section 399.16(c)(1); WHEREAS, the City of Ukiah's RPS Procurement Plan shall include Content Category 3 Procurement Requirements of not more than twenty-five percent (25%) of the eligible renewable energy resource electricity for Compliance Period 1, not more than fifteen percent (15%) of the eligible renewable energy resource electricity for Compliance Period 2, and not more than ten percent (10%) of the eligible renewable energy resource electricity for Compliance Period 3, consistent with Public Utilities Code section 399.16(c)(2); WHEREAS, the City of Ukiah's RPS Procurement Plan shall include Content Category 2 resources to meet the remaining RSP obligation for any given Compliance Period; WHEREAS, the City of Ukiah has adopted and implemented, or will adopt and implement, an RPS Procurement Plan that provides a definition for contract or ownership agreements originally executed prior to June 1, 2010 (Grandfathered Resources) consistent with Public Utilities Code section 399.16(d). Grandfathered Resources shall include any contract or ownership agreement originally executed prior to June 1, 2010 for resources that were RPS eligible under the rules in place when the contract was executed, and for which any subsequent contract amendments or modifications occurring after June 1, 2010 do not increase the nameplate capacity for the facility or expected quantities of annual generation, or substitute a different renewable energy resource; the duration of the contract may be extended if the original contract specified a procurement commitment of fifteen (15) or more years; WHEREAS, the City of Ukiah has adopted and implemented, or will adopt and implement, an RPS Procurement Plan that includes rules for application of excess procurement (Excess Procurement) of eligible renewable energy resource electricity from one Compliance Period to a subsequent Compliance Period consistent with Public Utilities Code section 399.30(d) (1) and in the same manner as section 399.13(a) (4) (B). Beginning January 1, 2011, Excess Procurement from one Compliance Period may be applied to a subsequent Compliance Period; to determine the quantity of Excess Procurement for the applicable Compliance Period, the City of Ukiah shall deduct from actual procurement quantities, the total amount of procurement associated with contracts of less than ten (10) years in duration, and shall not include any resources designated as Content Category 3; WHEREAS, the City of Ukiah has adopted and implemented, or will adopt and implement, an RPS Procurement Plan that includes conditions for delaying timely compliance consistent with Public Utilities Code section 399.30(d)(2) and section 399.15(b). The City of Ukiah may approve a waiver of timely compliance (Waiver of Timely Compliance) in the event that there is inadequate transmission capacity 399.15(b) (5) (A)), permitting, interconnection, or other factors that delay procurement, or insufficient supply 399.15(b) (5) (B)), unanticipated curtailment are mandated to address needs of the balancing authority 399.15(b) (5) (C)), or related factors existed; WHEREAS, the City of Ukiah has adopted and implemented, or will adopt and implement, an RPS Procurement Plan that establishes procedures to employ in the event of an approval of a Waiver of Timely Compliance, which provisions require the City of Ukiah to establish additional reporting for intervening years to demonstrate that reasonable actions under the City of Ukiah's control are being taken 399.15(b)(6)) and to demonstrate that all reasonable actions within the City of Ukiah's control have been taken to ensure compliance in the future 399.15(b)(7)); in no event shall the deficit from prior Resolution of the City of Ukiah Adopting a Program for the Enforcement of the Renewable Portfolio Standard Program Page 3 of 7 compliance periods be added to subsequent compliance periods in the event of a Waiver of Timely Compliance 399.15(b)(9)); WHEREAS, the City of Ukiah has adopted and implemented, or will adopt and implement, an RPS Procurement Plan that establishes procedures that address cost limitations for expenditures on renewable resources (Cost Limitations for Expenditures) consistent with Public Utilities Code section 399.30(d)(3) and section 399.15(c). Cost Limitations for Expenditures shall be applicable to procurement expenditures for all eligible renewable energy resources used to comply with the renewables portfolio standard, and shall be based on factors that include, but are not limited to, the most recent renewable energy procurement plan, procurement expenditures that approximate the expected cost of building, owning, and operating eligible renewable energy resources, and the potential that some planned resource additions may be delayed or canceled; WHEREAS, pursuant to the provisions of Public Utilities Code section 399.30(m), the City of Ukiah shall retain discretion over the mix of eligible renewable energy resources procured by the City of Ukiah and those additional generation resources procured by the City of Ukiah for purposes of ensuring resource adequacy and reliability, and the reasonable costs incurred by the City of Ukiah for eligible renewable energy resources owned by it; WHEREAS, pursuant to the provisions of Public Utilities Code section 399.30(e), the City is required to adopt a program for the enforcement of the RPS program; WHEREAS, pursuant to the provisions of Public Utilities Code section 399.30(e), the City must adopt a program for enforcement of the RPS program on or before January 1, 2012; WHEREAS, the City Council, in compliance with Public Utilities Code section 399.30(e), desires to adopt a program for the enforcement of RPS program (RPS Enforcement Program); and, WHEREAS, the City Council, in compliance with Public Utilities Code section 399.30(e), has provided not less than thirty days' notice of the proposed adoption of the RPS Enforcement Program. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF UKIAH, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: The City of Ukiah shall have a program for the enforcement of RPS program, which shall include all of the provisions, set forth herein and shall be known as the City's "RPS Enforcement Program"; 2. The RPS Enforcement Program shall be effective January 1, 2012; Not less than ten (10) days' advance notice shall be given to the public before any meeting is held to make a substantive change to the RPS Enforcement Program; 4. Annually, the Director of the City of Ukiah's Electric Utility shall cause to be reviewed, the City of Ukiah's RPS Procurement Plan to determine compliance the RPS program; Resolution of the City of Ukiah Adopting a Program for the Enforcement of the Renewable Portfolio Standard Program Page 4 of 7 Annual review of the RPS Procurement Plan shall include consideration of each of the following elements: A. By December 31, 2013 (end of Compliance Period 1): • Verify that City of Ukiah has met an average of twenty percent (20%) of retail sales with eligible renewable resources from the specified Content Categories for the period January 1, 2011 to December 31, 2013. If targets are not met, the City of Ukiah must: o Ensure than any Waiver of Timely Compliance was compliant with the provisions in the RPS Procurement Plan, o Review the applicability and appropriateness of excusing performance based on the Cost Limitations on Expenditures provisions of the RPS Procurement Plan. B. By December 31, 2014: • Ensure that the City of Ukiah is making reasonable progress toward meeting the December 31, 2016 compliance obligation of twenty-five percent (25%) of retail sales with eligible renewable resources, consistent with the RPS Procurement Plan. C. By December 31, 2015: • Ensure that the City of Ukiah is making reasonable progress toward meeting the December 31, 2016 compliance obligation of twenty-five percent (25%) of retail sales with eligible renewable resources, consistent with the RPS Procurement Plan. D. December 31, 2016 (end of Compliance Period 2): • Verify that the City of Ukiah has met twenty-five percent (25%) of retail sales with eligible renewable resources from the specified Content Categories for the period ending December 31, 2016; If targets are not met, the City of Ukiah must: o Review the applicability of applying Excess Procurement from Compliance Period 1 consistent with the provisions of the RPS Procurement Plan, o Ensure than any Waiver of Timely Compliance was compliant with the provisions in the RPS Procurement Plan, o Review applicability and appropriateness of excusing performance based on the Cost Limitations on Expenditures provisions of the RPS Procurement Plan. E. By December 31, 2017: • Ensure that the City of Ukiah is making reasonable progress toward meeting the December 31, 2020 compliance obligation of thirty-three percent (33%) renewable resources electricity, consistent with the RPS Procurement Plan. F. By December 31, 2018: Resolution of the City of Ukiah Adopting a Program for the Enforcement of the Renewable Portfolio Standard Program Page 5 of 7 • Ensure that the City of Ukiah is making reasonable progress toward meeting the December 31, 2020 compliance obligation of thirty-three percent (33%) renewable resources electricity, consistent with the RPS Procurement Plan. G. By December 31, 2019: • Ensure that the City of Ukiah is making reasonable progress toward meeting the December 31, 2020 compliance obligation of thirty three percent (33%) renewable resources electricity, consistent with the RPS Procurement Plan. H. December 31, 2020 (end of Compliance Period 3), and annually thereafter, • Verify that that the City of Ukiah met thirty-three percent (33%) of retail sales with eligible renewable resources from the specified Content Categories, consistent with the RPS Procurement Plan; If targets are not met, the City of Ukiah must: o Review the applicability of applying Excess Procurement from a previous Compliance Period consistent with the provisions of the RPS Procurement Plan, o Ensure than any Waiver of Timely Compliance was compliant with the provisions in the RPS Procurement Plan, o Review applicability and appropriateness of excusing performance based on the Cost Limitations on Expenditures provisions of the RPS Procurement Plan. 6. If it is determined that the City of Ukiah has failed to comply with the provisions of its RPS Procurement Plan, the City Council shall take steps to correct any untimely compliance, including: a. review the City of Ukiah's RPS Procurement Plan to determine what changes, if any, are necessary to ensure compliance in the next Compliance Period; b. report quarterly to the City Council regarding the progress being made toward meeting the compliance obligation for the next Compliance Period; C. report to the City Council regarding the status of meeting subsequent compliance targets, and all steps being taken to ensure that the obligation is timely met. Effective Date: This Resolution shall be effective on January 1, 2012. Resolution of the City of Ukiah Adopting a Program for the Enforcement of the Renewable Portfolio Standard Program Page 6 of 7 PASSED AND ADOPTED by the City of Ukiah Council on December 7, 2011 by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: Mari Rodin, Mayor JoAnne Currie, City Clerk Resolution of the City of Ukiah Adopting a Program for the Enforcement of the Renewable Portfolio Standard Program Page 7 of 7 "y CJ _ ~:tzi~fF ITEM NO.: 13c MEETING DATE: AGENDA SUMMARY REPORT December 7, 2011 SUBJECT: APPOINTMENT OF NEW MAYOR AND VICE MAYOR Background: Mayor and Vice Mayor Appointment. The City Council in December 2006 established a seniority-based rotation appointment of the Mayor and Vice Mayor. September 2011 the Mayoral Rotation and Seating Arrangement for Council was updated. The naming of the Mayor and Vice Mayor traditionally takes place annually at the first regular December meeting, with installation and changing of the guard at the second regular December meeting. Councilmember Rodin was appointed in December 2010 as Mayor and Councilmember Landis was appointed Vice Mayor. CITY COUNCIL First Term Elected Elected Expires Mayor Mari Rodin 12/2002* 11/2004 11/2012 2011 Benj Thomas 11/2006 11/2006 11/2014 2010 Phil Baldwin 11/1998 11/2006 11/2014 2009 Douglas Crane 11/2004 11/2004 11/2012 2008 Mary Anne Landis 01/2009* 11/2010 11/2014 N/A *appointed to fill an unexpired term Discussion: Choose one Councilmember as Mayor and one Councilmember as Vice Mayor. Fiscal Impact: Budgeted FY 11/12 1-1 New Appropriation X❑ Not Applicable Budget Amendment Required Amount Budgeted Source of Funds (title and Account Number Addit. Appropriation Requested Recommended Action(s): 1. Nominate and establish the positions of Mayor and Vice Mayor for 2012. Alternative Council Option(s): Provide direction to staff. Citizens advised: Requested by: Prepared by: JoAnne Currie, City Clerk Coordinated with: Jane Chambers, City Manager Attachments: Resolution 2011-44 Approved: J nd Chambers, City Manager RESOLUTION NO.20-111 -44 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING RULES GOVERNING COUNCIL MEETINGS WHEREAS, 1. The City Council has adopted by resolution Procedures of Conduct for City Council Meetings, last revised on July 20, 2005 ("Procedures"); and 2. The City Council has determined to revise the rules governing the Mayoral Rotation and Seating Arrangement for Council. NOW, THEREFORE, BE IT RESOLVED that the title and Section 7 of the Procedures are amended as follows: TITLE: City of Ukiah City Council Meeting Procedures SECTION 7. VOTING PROCEDURE I. Mayoral Rotation and Seating Arrangement for Council It is the policy of the City Council that the office of Mayor be rotated insofar as possible among the members of the City Council and that the Mayor shall serve a term of one year or until a successor is appointed. The rotation is based on seniority. The Vice Mayor shall replace the outgoing Mayor. It is the intent and desire of the City Council to allow every member the opportunity to serve as Mayor, and consideration is given to those members of the Council who have not previously served as Mayor unless all members have so served. The City Council shall, at its first regular meeting in the month of December, meet and choose one of its members as Mayor, and one of its members as Vice Mayor. The Mayor's seat shall be filled by the most senior member in length of uninterrupted service who has not previously served as Mayor. The Councilmember selected as Mayor, however, shall have served at least one year as a member of the City Council. Where all Councilmembers have served a term as Mayor, the person to be selected as Mayor shall be the person who has not served as Mayor for the longest period of time. If the person who has not served as Mayor for the longest period of time declines the position, then the person who has not served as Mayor for the longest period of time other than the declining Councilmember or Councilmembers shall be selected. When a selection of Mayor is to be made from a Councilmember who has not yet served as Mayor, the person who is otherwise qualified and has served on the Council the longest without being Mayor shall be selected as Mayor. In the case where two or more persons At the time of selection of the Mayor in any given year, the individual who would qualify to. be selected as Mayor in the next following year, using the criteria above, shall be named Vice Mayor for the current year. If a Councilmember declines to serve as Vice Mayor, the Council will decide by formal action where the member will fit into the rotation at the December meeting. The Council has the ultimate discretion to elect or not elect any Councilmember for any office at the December meeting. The Mayor and Councilmembers shall be seated as follows, seating assignments given from the perspective facing the audience: A. The Mayor and Councilmembers shall sit in the five of seven furthest rightward positions on the dais. B. The Mayor's position shall be the fourth from the right or center of the dais. C. The Vice Mayor shall be seated immediately to the Mayor's left or left hand side. D. Following the installation of new Councilmembers into office, Councilmembers leaving office shall immediately step down from the dais. Incumbent Councilmembers shall then-assum"ny-positions-vac-ated-to-their-left.-Newly-elected-or-appointed Councilmembers shall be seated at the far right of the dais. If more than one Councilmember is newly elected, they shall be seated in order of votes cast, with the lowest vote getter being seated furthest right and the highest vote getter being seated ! to the left. i E. Except as described in subsection F below, following the annual rotation of the Vice Mayor, the exiting Vice Mayor shall move right to the Mayor's position in the center of the dais, the newly selected Vice Mayor shall move to the Mayor's left hand side, and the remaining Councilmembers shall move one seat to their left. F. Following the annual rotation of the Vice Mayor during general election years, the newly elected Councilmembers shall remain in the furthest right seats and only incumbent Councilmembers shall rotate positions as described in subsection E above. G. To the extent that the foregoing rules do not address Councilmember seating changes or rotations, the City Council shall determine the seating location by formal action of j the same at a regular, special, or adjourned meeting. City Least Senior Manager CCM City Attorney CCM Vice Most Mayor Mayor Senior CCM I I Resolution No. 2006-04 i Page 2of 1 BE IT FUR T iHER RESOLVED that the amended version of Section 7 as contained in this Resolution shall replace Section 7 in the City Council Meeting Procedures as it read prior to the adoption of this Resolution. PASSED AND ADOPTED this 2nd day of November, 2011, by the following roll call vote: AYES: Councilmember Landis, Thomas, Crane, Baldwin, and Mayor Rodin NOES: None ABSTAIN: None ABSENT: None i Mari Rodin, Mayor ATTEST: r Ins Resolution No. 2006-04 Page 3of 1