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AGR-5444.B - CR&R INC - INTEGRATED SOLID WASTE MANAGEMENT AND STREET SWEEPING SERVICESUocuSlgn Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 DS AGR-5444.B q...Uk c;- RPORA '• + l I 4(7 ifi II yy T yy 1 I J O0 -- I?'16.A' ' : CpU GPti e NT t, RESTATED AND AMENDED AGREEMENT BETWEEN CITY OF ORANGE AND CR&R INCORPORATED FOR INTEGRATED SOLID WASTE MANAGEMENT AND STREET SWEEPING SERVICES DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 Table of Contents 1. DEFINITIONS 4 1.1 AB 341 4 1.2 AB 939 4 1.3 AB 1826 4 1.4 AB 1594 4 1.5 AB 2176 4 1.6 Affiliate 5 1.7 Agreement 5 1.8 Applicable Law 5 1.9 Back-haul 5 1.10 BASIC Score 6 1.11 Billings 6 1.12 Bin 6 1.13 Bin Service 6 1.14 Black Container 6 1.15 Black Container Waste 6 1.16 Blue Container 6 1.17 Bulky Items 7 1.18 C&D 7 1.19 C&D Processing Facility 7 1.20 CalRecycle 7 1.21 California Code of Regulations or CCR 7 1.22 Cart 8 1.23 Cart Collection Service 8 1.24 City 8 1.25 City Manager 8 1.26 Collect/Collection 8 1.27 Commercial or Commercial Business 8 1.28 Commercial Premises 9 1.29 Commercial Edible Food Generators 9 1.30 Compactor 9 i of xii DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.31 Complaint 9 1.32 Compliance Reviews 9 1.33 Compost 9 1.34 Compostable Plastics 10 1.35 Construction and Demolition Debris 10 1.36 Containers 10 1.37 Container Contamination 10 1.38 Contamination Fee 10 1.39 Contractor 10 1.40 Contractor Compensation 10 1.41 CPI 11 1.42 Curb Mile 11 1.43 Customer 11 1.44 Disaster 11 1.45 Disposal 11 1.46 Disposal Site(s) 11 1.47 Diversion 11 1.48 Drainage Area Management Plan 12 1.49 Edible Food 12 1.50 Effective Date 12 1.51 Electronic Waste 12 1.52 Environmental Laws 12 1.53 Excluded Waste 13 1.54 Facility 13 1.55 Food Recovery 13 1.56 Food Recovery Organization 13 1.57 Food Recovery Service 14 1.58 Food Scraps 14 1.59 Food Service Provider 14 1.60 Food-Soiled Paper 14 1.61 Food Waste 14 ii of xii DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.62 Franchise 14 1.63 Green Container 15 1.64 Green Waste 15 1.65 Green Waste Processing Facility 15 1.66 Grocery Store 15 1.67 Gross Receipts 15 1.68 Hauler Route 15 1.69 Hazardous Substance 16 1.70 Hazardous Waste 16 1.71 Household Hazardous Waste ("HHW") 16 1.72 Household Sharps Waste 16 1.73 Hot Spot Route 17 1.74 Inclement Weather 17 1.75 Landfill 17 1.76 Large Event 17 1.77 Large Venue 17 1.78 Materials Recovery Facility("MRF") 17 1.79 Mulch 18 1.80 Multi- Family Residential Dwelling, Multi-Family Residential, or Multi-Family 18 1.81 Non-Collection Notice 18 1.82 Non-Compostable Paper 18 1.83 Non-Organic Recyclables 19 1.84 Notice of Violation 19 1.85 Organic Recycling 19 1.86 Organic Waste 19 1.87 Organic Waste Generator 19 1.88 Owner 19 1.89 Parking Lot 19 1.90 Person 20 1.91 Premises 20 1.92 Process, Processed, or Processing 20 iii of xii DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.93 Prohibited Container Contaminants 20 1.94 Rate Year 20 1.95 Recovery 20 1.96 Recycling 21 1.97 Recyclable Materials or Recyclables 21 1.98 Recycled Content Paper 21 1.99 Refuse 21 1.100 Renewable Natural Gas 21 1.101 Residential 21 1.102 Residential Premises 21 1.103 Re-Sweeps 22 1.104 Roll-off Box 22 1.105 Roll-off Collection Service 22 1.106 Roll-off Compactor 22 1.107 Route Review 22 1.108 SB 1383 22 1.109 SB 1383 Regulations 23 1.110 Self-hauler(or Self-haul)23 1.111 Service Level 23 1.112 "Single-Family Residential Dwelling", "Single-Family Residential"or"Single-Family" 23 1.113 Solid Waste 23 1.114 Solid Waste Handling Services 24 1.115 Source Separated 24 1.116 Source Separated Blue Container Organic Waste (SSBCOW) 24 1.117 Source Separated Green Container Organic Waste (SSGCOW) 24 1.118 Source Separated Recyclable Materials 24 1.119 Special Sweeps 24 1.120 State 25 1.121 Streets 25 1.122 Street Sweeping 25 1.123 Street Sweeping Debris 25 iv of xii DocuSign Envelope ID: 12E08732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.124 Street Sweeping Routes 25 1.125 Term 25 1.126 Tier One Commercial Edible Food Generators 25 1.127 Tier Two Commercial Edible Food Generators 26 1.128 Temporary Bin Collection Service 26 1.129 Temporary Roll-off Box Collection Service 26 1.130 Transfer 27 1.131 Transfer Station 27 1.132 Transformation 27 1.133 Transformation Facility 27 1.134 Travel Speed 27 1.135 Universal Waste 27 1.136 Waste Evaluation 28 1.137 Waste Generator 28 1.138 White Goods 28 1.139 Work Day 28 2. GRANT AND ACCEPTANCE OF FRANCHISE 29 2.1 Grant and Acceptance of Franchise, Indemnity of Award 29 2.2 Enforcement of Exclusivity 29 2.3 Effective Date 30 2.4 Term of Agreement-Solid Waste 30 2.5 Option to Extend Term 30 2.6 Representations and Warranties of Contractor 30 2.7 Conditions to Effectiveness of Agreement 33 2.8 Delegation of Authority 33 2.9 Limitations to Scope 33 2.10 City's Right to Direct Changes 35 2.10.1 General 35 2.10.2 New Diversion Programs 35 2.11 Ownership of Solid Waste 36 2.12 Contractor Authorization 36 v of xii DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 2.13 Permits and Licenses 36 3. AMOUNTS PAID TO THE CITY 38 3.1 Payments to City 38 3.1.1 Retroactive Road Mitigation Reimbursement 38 3.1.2 Annual Road Mitigation Reimbursement 38 3.1.3 Annual Public Education Payment 38 3.1.4 Annual Administrative Payment 38 3.1.5 Annual Adjustment of City Payments 38 3.1.6 Timing of Payments 39 3.2 Facility Host Payment 39 4. DIRECT SERVICES— WASTE MANAGEMENT 40 4.1 Refuse 40 4.1.1 General 40 4.1.2 Residential Cart Refuse Collection 40 4.1.3 Alley Collection 40 4.1.4 Refuse Cart Overage 41 4.1.5 Backyard Service for the Disabled 41 4.1.6 Bin Refuse Collection 41 4.1.7 Commercial Premises Cart Service 42 4.1.8 Overflowing Commercial Containers 42 4.1.9 Roll-off Box Service 43 4.1.10 Roll-off Compactor Service to Plaza Customers 44 4.1.11 Temporary Bin Service 44 4.1.12 Scout Vehicles 44 4.1.13 Bin Pushout Service 44 4.1.14 Smaller Collection Vehicles 44 4.1.15 Locking Bins 45 4.1.16 Redelivery/Return Trip Fee 45 4.1.17 On-Call Bulky Item Pickup 45 4.1.18 Bulky Item Diversion 46 4.1.19 Diversion of Electronic and Other Special Wastes 46 4.2 Recycling 46 4.2.1 Single-family Recycling Collection 46 vi of xii DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 4.2.2 Multi-family and Commercial Recyclables Collection 47 4.2.3 Warning Notice 47 4.2.4 Marketing and Sale of Recyclable Materials 48 4.2.5 Minimum Diversion Requirement 48 4.2.6 Construction and Demolition Debris Diversion 48 4.2.7 Edible Food Recovery Program 49 4.2.8 Optional Sharps Collection 49 4.2.9 Non-Profit Group Assistance 49 4.2.10 Horse Stable Bedding 49 4.3 Organics Collection Program 49 4.3.1 Single-family Organics Waste Collection 49 4.3.2 Multi-family Green Waste Collection 52 4.3.3 Commercial Green Waste and Wood Waste Collection 52 4.3.4 Commercial Roll-off Green Waste Collection 53 4.3.5 Commercial Food Waste Collection 53 4.3.6 Holiday Tree Collection Program 54 4.4 Cart Selection, Distribution and Exchanges 55 4.5 City Services 55 4.5.1 City Premises Collection 55 4.5.2 City-Sponsored Events 56 4.5.3 Street Litter Container Collection 56 4.5.4 Emergency Collection and Disposal Service 57 4.5.5 Street Sweepings Disposal 57 4.5.6 Abandoned Item Collection by City 57 4.5.7 Community Development Review Services 57 4.5.8 Large Venue Event Assistance, Event Recycling 57 4.5.9 Door-to-Door Household Hazardous Waste(HHW)Collection—Option 58 4.5.10 Storage Vans 58 4.5.11 Free Compost and Wood Chips 58 4.5.12 Organic Waste Product Procurement 58 4.5.13 Renewable Natural Gas 59 4.5.14 In-Office Recycling Containers for City Administrative Offices 59 4.5.15 In-Unit Recycling Containers 59 vii of xii DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 4.5.16 Capacity Guarantee 60 4.5.17 Compliance Coordinators 61 4.5.18 Edible Food Recovery Program 61 4.6 Operations 63 4.6.1 Schedules 63 4.6.2 Vehicles 64 4.6.3 Containers 68 4.6.4 Litter Abatement 71 4.6.5 Personnel 71 4.6.6 Identification Required 73 4.6.7 Fees and Gratuities 73 4.6.8 Non-Discrimination 73 4.6.9 Routing and Coordination with Street Sweeping Services 73 4.6.10 Report of Accumulation of Solid Waste; Unauthorized Dumping 74 4.7 Transportation of Solid Waste 74 4.8 Approved Facilities 75 4.9 Status of Disposal Site 75 4.10 Dedicated Routes 75 4.11 Route Audit 75 4.12 Service Exceptions; Hazardous Waste Notifications 77 5. DIRECT SERVICES—STREET SWEEPING 79 5.1 General — Standards of Work and Contractor Responsibilities 79 5.2 Street Sweeping Areas 82 5.3 Inspection Rating System 82 5.4 Inspections, Meetings, and Documentation 83 5.5 Special Sweeps 83 5.6 Customer Service—Street Sweeping 84 5.7 Communication and Emergency Response 85 5.8 Safety—Street Sweeping 85 5.9 Street Sweeping Services 86 5.10 Sweeping Schedules 86 5.11 Training—Street Sweeper Operators 87 viii of xii DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 5.12 Noise—Street Sweeping 88 5.13 Street Sweeping Equipment 88 5.14 Street Sweeping Equipment Location and Repair 90 5.15 GPS Equipment and Software 91 5.16 Customer Refunds for Missed Sweeps 92 6. OTHER SERVICES 93 6.1 Customer Billing and Contractor Compensation 93 6.1.1 Cart Billing 93 6.1.2 Bin, Roll-off and Temporary Services Billing 93 6.1.3 Start and Stop Service—Vacant Residential Units 93 6.1.4 Contractor's Invoices 94 6.1.5 Non-Payment;Collections;Suspension of Service 94 6.1.6 Exemption from Service 95 6.2 Customer Service 95 6.2.1 Local Office 95 6.2.2 Complaint Documentation 96 6.2.3 Resolution of Customer Complaints 96 6.2.4 Contract Liaison 96 6.2.5 Service Liaison 97 6.3 Education and Public Awareness 97 6.3.1 General 97 6.3.2 Implementation and On-going Education Requirements 97 6.3.3 Contractor Representative 98 6.3.4 Community Events 99 6.4 Contamination Monitoring 99 6.4.1 Route Reviews 99 6.4.2 Waste Evaluations 99 6.4.3 Recordkeeping and Reporting 100 6.5 Waste Generation/Characterization Studies 101 7. CONTRACTOR COMPENSATION AND RATES 102 7.1 General 102 7.2 Initial Rates 102 ix of xii DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 7.3 Schedule of Future Adjustments 102 7.4 Method of Adjustments 103 7.4.1 Annual Rate Adjustment Percentage 103 7.4.2 Rate Adjustment Steps 104 7.5 Competitive Rate Guarantee 105 7.6 Extraordinary Adjustments 105 8. REVIEW OF SERVICES AND PERFORMANCE 108 8.1 Performance Review Meeting 108 8.2 Performance Satisfaction Survey 109 9. RECORDS, REPORTS AND INFORMATION REQUIREMENTS 110 9.1 General 110 9.2 Records 110 9.2.1 General 110 9.2.2 Financial Records 110 9.2.3 Solid Waste Records 111 9.2.4 CERCLA Defense Records 112 9.2.5 Disposal Records 112 9.2.6 Other Programs' Records 112 9.2.7 Audit 113 9.2.8 Payments and Refunds 113 9.3 Reports 113 9.3.1 Report Formats and Schedule 113 9.3.2 Monthly Reports 114 9.3.3 Annual Report 115 9.3.4 CalRecycle Electronic Annual Report 115 9.3.5 Financial Report 116 9.4 Reporting Adverse Information 116 9.5 Right to Inspect Records 116 9.6 Failure to Report 117 10. INDEMNIFICATION, INSURANCE, BOND AND LETTER OF CREDIT 118 10.1 Indemnification 118 10.2 Hazardous Substances Indemnification 119 xofxii DocuSign Envelope ID:12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 10.3 Indemnification and Guarantee 120 10.4 Insurance 120 10.5 Faithful Performance Bond 124 10.6 Faithful Performance Letter of Credit 125 10.7 Forfeiture of Performance Bond 125 10.8 Forfeiture of Letter of Credit 125 10.9 Performance Security Beyond Service Term 126 11. CITV'S RIGHT TO PERFORM SERVICE 127 11.1 General 127 11.2 Billing and Compensation to City During City's Possession 128 11.3 City's Right to Relinquish Possession 128 11.4 City's Possession Not A Taking 128 11.5 Duration of City's Possession 129 12. DEFAULT, REMEDIES AND LIQUIDATED DAMAGES 130 12.1 Events of Default 130 12.2 Right to Terminate Upon Default and Right to Specific Performance 132 12.3 Liquidated Damages 133 12.4 Excuse from Performance 137 12.5 Notice, Hearing and Appeal of City Breach 138 12.6 Assurance of Performance 139 13. OTHER AGREEMENTS OF THE PARTIES 140 13.1 Relationship of Parties 140 13.2 Governing Law 140 13.3 Jurisdiction and Venue 140 13.4 Assignment 140 13.5 Contracting or Subcontracting 142 13.6 Binding on Assigns 143 13.7 Cooperation in Preparation for Termination or Expiration of Agreement 143 13.8 Parties in Interest 143 13.9 Waiver 143 13.10 Contractor's Investigation 144 xi of xii DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 13.11 Condemnation 144 13.12 Notice 144 13.13 Representatives of the Parties 145 13.14 City Free to Negotiate with Third Parties 146 13.15 Compliance with Municipal Code, Local, State and Federal Law 146 13.16 Privacy 146 13.17 Proprietary Information, Public Records 146 14. MISCELLANEOUS PROVISIONS 147 14.1 Entire Agreement 147 14.2 Section Headings 147 14.3 References to Laws 147 14.4 Interpretation 147 14.5 Agreement 147 14.6 Severability 147 14.7 Exhibits 148 14.8 Attorneys' Fees 148 14.9 Signatures 149 Table of Exhibits Exhibit A— Initial Maximum Rates—Single-family Residential Exhibit B— Initial Maximum Rates—Commercial and Multi-family Exhibit C— Initial Maximum Rates— Roll-off Exhibit D— Initial Maximum Rates—Special Sweeps Exhibit E— Example Rate Adjustment Calculation - Residential Exhibit F— Example Rate Adjustment Calculation —Commercial and Roll-off xii of xii DocuSign Envelope IL): 12E06732-9FGE-4EE7-AF91-38E8740AE882 RESTATED AND AMENDED AGREEMENT This Restated and Amended Agreement for Integrated Solid Waste Management and Street Sweeping Services (hereinafter the "Agreement") is entered into this 9tth day of January 2024, by and between the City of Orange, California, a municipal corporation City") and CR&R Incorporated, a California corporation ("Contractor"), for the collection, transportation, recycling, processing, and disposal of solid waste and other services related to meeting the goals and requirements of the California Integrated Waste Management Act. RECITALS WHEREAS,the California Legislature, by enactment of the California Integrated Waste Management Act of 1989 ("AB 939") (California Public Resources Code Section 40000 et seq.), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for solid waste handling within their jurisdictions; and WHEREAS, pursuant to the provisions of Public Resources Code Section 40059(a)(1), the City of Orange ("City") is authorized to determine all aspects of solid waste handling which are of local concern; and WHEREAS, City is obligated to protect the public health and safety of the residents and businesses of City, and collection of solid waste should be undertaken in a manner consistent with the exercise of City's obligations for the protection of public health and safety; and WHEREAS, Public Resources Code Section 40059(a)(2) authorizes City to determine whether solid waste handling services are to be provided by exclusive or non-exclusive contract, whether the contract will be awarded with or without competitive bidding, and the terms and conditions of any such contract; and WHEREAS, pursuant to California Public Resources Code Section 49300 and 49500 et seq., City has determined that the public health, safety, and well-being require that an exclusive franchise be awarded to a qualified company for the collection, transfer and transportation, recycling, processing, and disposal of solid waste and other services related to meeting the diversion goals required by AB 939, and other requirements of the California Integrated Waste Management Act; and WHEREAS, City and CR&R ("Parties") entered into Agreement No. 5444, dated July 14, 2009, in which CR&R was granted an exclusive franchise for the collection, transfer and transportation, recycling, processing and disposal of solid waste and other related services in the City effective February 1, 2010, for an initial term of eight years. On September 12, 2017, Agreement No. 5444 was extended for two (2) additional years, through January 31, 2020; and 1 of 147 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement WHEREAS, based on new laws adopted by the State of California, the Parties entered into Agreement No. 5444A dated December 10, 2019, for both integrated solid waste management and street sweeping services, for an initial term of five and a half (5 %) years, beginning January 1, 2020 and expiring June 30, 2025, and subject to extensions Agreement"); and WHEREAS, the Parties now desire to make certain amendments to the Agreement to provide for a new term, rate adjustments, payment of retroactive road mitigation repairs, additional collection events, and other changes; and WHEREAS, City declares its intention of maintaining reasonable rates and quality service related to the collection, transfer and transportation, recycling, processing, and disposal of solid waste and other services; and WHEREAS, Parties continue to be mindful of the provisions of the laws governing the safe collection,transport, recycling, processing and disposal of solid waste, including AB 939, the Resource Conservation and Recovery Act ("RCRA"), and the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"). Parties desire to leave no doubts as to their respective roles and to memorialize that by entering into this Agreement, City is not hereby becoming an "arranger" or a "generator" as those terms are used in CERCLA, and it is CR&R, not City, who is "arranging for" the collection from premises in City, transport for disposal, composting or other processing, and recycling of municipal solid waste which may contain hazardous substances; and further to confirm that as a material inducement to City entering into this Agreement,CR&R has agreed to fully indemnify City in connection with any claims, losses, liabilities, lawsuits or actions relating to the inadvertent or intentional collection, transportation and/or disposal of hazardous materials that may occur in connection with CR&R's performance under this Agreement; and WHEREAS, Parties continue to be mindful of new laws adopted by the State of California intended to divert recyclables and organic materials from being landfilled. AB 341 mandates that commercial waste generators arrange for recycling services. AB 1826 mandates that commercial waste generators recycle their organic waste. AB 1594 will exclude organic material used as Alternative Daily Cover ("ADC") from the calculation of a jurisdiction's total per capita amount of waste disposed. SB 1383 allows the Department of Resources Recycling and Recovery ("CalRecycle") to implement new solid waste and recycling regulations on local jurisdictions if significant progress has not been made in certain waste reduction goals by 2020; and WHEREAS, CR&R represents and warrants to City that it continues to possess the experience, responsibility and qualifications to conduct recycling programs, to provide City with information sufficient to meet City's reporting requirements under AB 939,to assist City 2 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement in meeting City's other requirements under AB 939, to collect, transport and dispose of solid waste in a safe manner which will minimize the adverse effects of collection vehicles on air quality and traffic and has the ability to indemnify City against liability under CERCLA; and WHEREAS, CR&R has the ability to provide such personnel, equipment and supplies as are necessary to ensure City complies with the requirements of AB 939 and the Public Resources Code; and WHEREAS, City's primary goals in amending and restating the Agreement are ensuring that solid waste collection and street sweeping services are of the highest caliber, that customer satisfaction remains at the highest level, that the environment is protected, that maximum diversion levels are achieved, and that materials collected are put to the highest and best use. THEREFORE, in consideration of the premises above stated and the terms,conditions, covenants and agreements contained in this Agreement, the Parties do hereby agree as follows: 3 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1. DEFINITIONS The terms used in this Agreement shall have the meaning set forth in this Section 1. In the event a term is not defined in this Section 1, then it shall have the meaning set forth in the Orange Municipal Code or in Division 30, Part 1, Chapter 2 of the California Public Resources Code (with precedence given to definitions in the Orange Municipal Code over conflicting definitions contained in the Public Resources Code). Except as provided in this Section 1, words beginning with lower case letters are being used with their common ordinary meanings, not as defined terms. Otherwise, the following capitalized words and terms shall have the following meanings: 1.1 AB 341 AB 341" means Assembly Bill 341 (Chapter 476, Statutes of 2011), as amended from time to time and which places requirements on commercial businesses and Multi-Family property owners that generate a specified threshold amount of solid waste to arrange for recycling services and requires cities to implement a mandatory commercial and Multi-Family recycling program. 1.2 AB 939 AB 939" means the California Integrated Waste Management Act of 1989 (California Public Resources Code Section 40000 et seq.), as it may be amended from time to time. 1.3 AB 1826 AB 1826" means Assembly Bill 1826 (Chapter 727, Statutes of 2014) as amended from time to time and which requires commercial businesses and Multi-Family property owners that generate a specified threshold amount of solid waste, recyclable materials, and organic materials per week to arrange for recycling services, and requires cities to implement a mandatory commercial and Multi-Family organic waste recycling program. 1.4 AB 1594 AB 1594" means that state law adopted in 2015 that provides that the use of green material as alternative daily cover is disposal and does not constitute Diversion through recycling. 1.5 AB 2176 AB 2176" means that state law adopted in 2004 regarding waste reduction at large venues and events. 4 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.6 Affiliate Affiliate" means all businesses (including corporations, limited and general partnerships and sole proprietorships) which are directly or indirectly related to Contractor by virtue of direct or indirect ownership interest or common management shall be deemed to be "Affiliated with" Contractor and included within the term "Affiliates" as used in this Agreement. An Affiliate shall include a business in which Contractor owns a direct or indirect ownership interest, a business which has a direct or indirect ownership interest in Contractor and/or a business which is also owned, controlled or managed by any business or individual which has a direct or indirect ownership interest in Contractor. For purposes of determining whether an indirect ownership interest exists,the constructive ownership provisions of Section 318(a) of the Internal Revenue Code of 1986, as in effect on the date of this Agreement, shall apply; provided, however, that (i) "ten percent (10%)" shall be substituted for "fifty percent (50%)" in Section 318(a)(2)(C) and in Section 318(a)(3)(C) thereof; and (ii) Section 318(a)(5)(C) shall be disregarded. For purposes of determining ownership under this paragraph and constructive or indirect ownership under Section 318(a), ownership interest of less than ten percent(10%) shall be disregarded and percentage interests shall be determined on the basis of the percentage of voting interest or value which the ownership interest represents, which is greater. 1.7 Agreement Agreement means this Amended and Restated Franchise Agreement between the City of Orange and CR&R Incorporated for Integrated Solid Waste Managements and Street Sweeping Services including all exhibits and attachments. 1.8 Applicable Law Applicable Law" means all Federal, State, and local laws, regulations, rules, orders, judgments, decrees, permits, approvals, or other requirement of any governmental agency having jurisdiction over the Collection, Transportation, Processing, and Disposal of discarded materials that are in force on the Effective Date and as may be enacted, issued, or amended during the Term of this Agreement. Applicable Law includes, but is not limited to, AB 939, AB 341, AB 1594, AB 1826, and SB 1383, and their corresponding regulations. 1.9 Back-haul Back-haul" means Transporting Recyclable Materials or Organic Waste to a destination owned and operated by the Waste Generator using the Waste Generator's own employees and equipment. 5 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.10 BASIC Score BASIC Score" means the Behavior Analysis and Safety Improvement Category percentile score assigned to motor carriers and determined by the Federal Motor Carrier Safety Administration's Safety Measurement System to assess a carrier's safety risk. BASIC Scores are also known as"CSA Scores." BASIC Scores are calculated on a zero to 100 percentile scale, with 100 indicating the worst performance and zero indicating the best performance. 1.11 Billings Billings" or "Billing" or "Bill" means the statements of charges provided to Customers for services rendered by Contractor. 1.12 Bin Bin" means a metal Container with hinged lids and wheels with a capacity of less than ten 10) cubic yards. 1.13 Bin Service Bin Service" means Solid Waste Handling Services in which a Bin is used for the Collection of Solid Waste. 1.14 Black Container Black Container" has the same meaning as in 14 CCR Section 18982.2(a)(28) and shall be used for the purpose of storage and Collection of Black Container Waste. Black Container shall have the same meaning as "Refuse Cart," "Refuse Bin," or "Refuse Container." 1.15 Black Container Waste Black Container Waste" means Solid Waste that is collected in a Black Container that is part of a three-container organic waste Collection service that prohibits the placement of Organic Waste and Recyclable Materials in the Black Container as specified in 14 CCR Sections 18984.1(a) and (b). Black Container Waste shall have the same meaning as "Refuse". 1.16 Blue Container Blue Container" has the same meaning as in 14 CCR Section 18982.2(a)(5) and shall be used for the purpose of storage and collection of Source Separated Recyclable Materials or Source 6 of 149 DocuSign Envelope ID: 12E0B732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement Separated Blue Container Organic Waste. Blue Container shall have the same meaning as Recycling Cart," "Recycling Bin," or "Recycling Container." 1.17 Bulky Items Bulky Item" means Solid Waste that cannot and/or would not typically be accommodated within a Cart including specifically: furniture (including chairs, sofas, mattresses, and rugs); appliances (including refrigerators, ranges, washers, dryers, water heaters, dishwashers, plumbing, small household appliances and other similar items, commonly known as "white goods"); yard debris, Green Waste and small pieces of wood limited to one cubic yard of contained material; electronic equipment (including stereos, televisions, computers and monitors,VCRs, microwaves and other similar items commonly known as "brown goods" and e-waste"); fluorescent bulbs; household batteries; and clothing. Bulky Items do not include car bodies, tires, C&D or items requiring more than two persons to remove. Other items not specifically included or excluded above will be Collected provided that they are not more than eight feet in length,four feet in width, or more than 150 pounds. In the event a question ever arises as to whether a specific item or category of items meets the definition of Bulky Items, City shall be responsible to determine whether said definition shall apply, which determination shall be final and binding on the Parties. 1.18 C&D C&D" means Construction and Demolition Debris. 1.19 C&D Processing Facility C&D Processing Facility" means any Facility that is designed, operated, and legally permitted for the purpose of receiving and Processing C&D. 1.20 CalRecycle CalRecycle" means the California Department of Resources Recycling and Recovery. 1.21 California Code of Regulations or CCR CCR" means the State of California Code of Regulations. CCR references in this Agreement are preceded with a number that refers to the relevant Title of the CCR (e.g., "14 CCR" refers to Title 14 of CCR). 7 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.22 Cart Cart" means a plastic Container with a hinged lid and wheels serviced by an automated or semi-automated truck with a capacity of no less than 32- and no greater than 101-gallons. 1.23 Cart Collection Service Cart Collection Service" means Solid Waste Collection Service using Carts. This includes service provided to Single-Family Premises (excluding those Single-Family Customers that elect to use Bin Collection Service), Commercial Customers that generate small quantities of Solid Waste and elect to use Cart Collection Service, and Multi-Family Customers with individual storage capacity to store Carts with access to curbside service from side-loading Collection vehicles. 1.24 City City" means City of Orange, California, a municipal corporation, and all the territory lying within the municipal boundaries of City as presently existing or as such boundaries may be modified during the term of this Agreement. 1.25 City Manager City Manager" means a Person having that title in the employ of the City or his or her designee. 1.26 Collect/Collection Collect" or "Collection" means to take physical possession, transport, and remove Solid Waste within and from City. 1.27 Commercial or Commercial Business Commercial" or "Commercial Business" means a firm, partnership, proprietorship, joint- stock company, corporation, or association, whether for-profit or nonprofit, strip mall, industrial facility, a Multi-Family Residential Dwelling, or as otherwise defined in 14 CCR section 18982(a)(6). A Multi-Family Residential Dwelling that consists of fewer than five (5) units is not a Commercial Business. 8 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.28 Commercial Premises Commercial Premises" means Premises upon which business activity is conducted, including but not limited to retail sales, services, wholesale operations, manufacturing and industrial operations, commercial and industrial construction and demolition activities, but excluding Residential Premises upon which business activities are conducted when such activities are permitted under applicable zoning regulations and are not the primary use of the property. Notwithstanding any provision to the contrary in this Agreement, in the Orange Municipal Code, or otherwise, for purposes of this Agreement, Premises upon which the following uses as defined in the Orange Municipal Code) are occurring shall be deemed to be Commercial Premises: Assisted Living Facilities, Convalescent Homes, Dormitories, Extended Stay Motels, Group Residential Facilities, Group Care Facilities, Hotels, and Motels. 1.29 Commercial Edible Food Generators Commercial Edible Food Generator" includes a Tier One Commercial Edible Food Generator or a Tier Two Commercial Edible Food Generator as defined in 14 CCR section 18982(a)(73) and (a)(74). 1.30 Compactor Compactor" means any Bin or Roll-off Box that has a compaction mechanism, whether stationary or mobile. 1.31 Complaint Complaint" means a communication received by Contractor from a Customer or the City indicating services have not been performed in accordance with this Agreement,or otherwise expressing dissatisfaction with service. 1.32 Compliance Reviews Compliance Reviews" means reviews of records by the City to determine compliance with this Agreement or the City Code. 1.33 Compost Compost" means the product resulting from the controlled biological decomposition of Organic Waste that is Source Separated from the municipal Solid Waste stream, or which are separated at a centralized Facility, or as otherwise defined in 14 CCR section 17896.2(a)(4). 9 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.34 Compostable Plastics Compostable Plastics"or"Compostable Plastic" means plastic materials that meet the ASTM D6400 standard for compostability, or as otherwise described in 14 CCR Section 18984.1(a)(1)(A) or 18984.2(a)(1)(C). 1.35 Construction and Demolition Debris Construction and Demolition Debris" means used or discarded materials removed from Premises during construction, renovation, remodeling, repair, or demolition operations on any pavement, Residential building, Commercial or industrial building, or other structure and shall include, but is not limited to concrete, asphalt paving, asphalt roofing, lumber, gypsum board, rock, soil and metal. 1.36 Containers Containers" means any and all types of Solid Waste receptacles, including Carts, Bins and Roll-off Boxes. 1.37 Container Contamination Container Contamination" or "Contaminated Container" means a Container that contains Prohibited Container Contaminants. 1.38 Contamination Fee Contamination Fee" shall mean an amount charged by Contractor to Customers to offset Contractor's additional costs or diminished revenue due to Container Contamination. 1.39 Contractor Contractor" means CR&R Incorporated, a corporation organized and operating under the laws of the State of California and its officers, directors, employees, agents, companies and subcontractors. 1.40 Contractor Compensation Contractor Compensation" means the revenue received by Contractor from Customers and City in return for providing services in accordance with this Agreement. 10 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.41 CPI CPI" means the Consumer Price Index, Series ID: CUURS49ASAO, All items in Los Angeles- Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted (U.S. Department of Labor, Bureau of Labor Statistics. 1.42 Curb Mile Curb Mile" means a distance equal to 5,280 feet and is the measurement used to designate those miles predetermined by City to be swept by Contractor. 1.43 Customer Customer" means a Person receiving Solid Waste Handling Services or Street Sweeping Services from Contractor pursuant to the terms of this Agreement. 1.44 Disaster Disaster" means a sudden regional, statewide, nationwide, or worldwide event, such as an accident or a natural catastrophe, that causes great damage or loss of life, and that significantly stops, or impacts the normal ongoing operations of Solid Waste Collection in the City. Disaster does not include labor unrest as described in Section 12.4. 1.45 Disposal Disposal" means the ultimate disposition of Solid Waste Collected by Contractor at a landfill or otherwise in full regulatory compliance. 1.46 Disposal Site(s) Disposal Site(s)" means the Solid Waste handling Facility or Facilities utilized for the ultimate Disposal of Solid Waste Collected by Contractor. 1.47 Diversion Diversion" means any combination of waste prevention (source reduction), recycling, reuse and composting activities that reduces waste disposed at landfills, provided such activities are recognized by the California Department of Resources Recycling and Recovery CalRecycle) as Diversion in its determination of City's Diversion rate and compliance with AB 939. 11 of 149 DocuSign Envelope ID: 12E0B732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.48 Drainage Area Management Plan Drainage Area Management Plan" (DAMP) means the Orange County Drainage Area Management Plan, as the same may be amended from time to time to include City's Local Implementation Plan (LIP). 1.49 Edible Food Edible Food" means all food intended and usable for human consumption, or as otherwise defined in 14 CCR section 18982(a)(18). For Edible Food to be recovered, it must meet applicable public health and food safety standards in 14 CCR, Chapter 12, Division 7, and must be able to meet Food Recovery Organizations' standards and requirements for acceptance related to nutrition or quality. Edible food is not Solid Waste. 1.50 Effective Date Effective Date" means the date on which the Agreement becomes binding upon the Parties. 1.51 Electronic Waste Electronic Waste" means discarded electronic goods that are conditionally exempt from classification as Hazardous Waste pursuant to 22 CCR) Section 66261.9, including but not limited to computers and peripherals, printer, cathode ray tube monitors, televisions, electronic equipment, and cathode ray tubes. 1.52 Environmental Laws Environmental Laws" means all Federal and State statutes, county, local and City ordinances concerning public health, safety and the environment including, by way of example and not limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 USC §9601 et seq.; the Resource Conservation and Recovery Act, 42 USC §6901 et seq.; the Federal Clean Water Act, 33 USC§1251 et seq.; the Toxic Substances Control Act, 15 USC§2601 et seq.;the Occupational Safety and Health Act, 29 USC§651 et seq.;the California Hazardous Waste Control Act,California Health and Safety Code §25100 et seq.;the California Hazardous Substance Account Act, California Health and Safety Code §25300 et seq.; the Porter-Cologne Water Quality Control Act, California Water Code §13000 et seq.; the Safe Drinking Water and Toxic Enforcement Act, California Health and Safety Code §25249.5 et seq.; as currently in force or as hereafter amended, and all rules and regulations promulgated thereunder. 12 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.53 Excluded Waste Excluded Waste" means Hazardous Substance, Hazardous Waste, infectious waste, designated waste, volatile, corrosive, medical waste, infectious, regulated radioactive waste, and toxic substances or material that approved/designated Facility operator(s) reasonably believe(s) would, as a result of or upon acceptance, Transfer, Processing, or Disposal, be a violation of local, State, or Federal law, including: land use restrictions or conditions, waste that cannot be disposed of in Class Ill Landfills or accepted at the Facility by permit conditions, waste that in Contractor's reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose Contractor or City to potential liability; but not including de minimis volumes or concentrations of waste of a type and amount normally found in Single-Family or Multi-Family Solid Waste after implementation of programs for the safe Collection, Processing, Recycling, treatment, and Disposal of batteries and paint in compliance with Sections 41500 and 41802 of the California Public Resources Code. Excluded Waste does not include used motor oil and filters, household batteries, Universal Waste, and/or latex paint when such materials are defined as allowable materials for Collection through this Agreement and the Waste Generator or Customer has properly placed the materials for Collection pursuant to instructions provided by the City or Contractor as set forth in this Agreement. 1.54 Facility Facility" means any plant or site used by Contractor for purposes of performing under this Agreement. 1.55 Food Recovery Food Recovery" means actions to Collect and distribute food for human consumption which otherwise would be disposed of. 1.56 Food Recovery Organization Food Recovery Organization" (FRO) means an entity that primarily engages in the Collection or receipt of Edible Food from Commercial Edible Food Generators and distributes that Edible Food to the public for Food Recovery either directly or through other entities, including, but not limited to: 1) A food bank as defined in Section 113783 of the Health and Safety Code; 2) A nonprofit charitable organization as defined in Section 113841 of the Health and Safety Code; and, 13 of 149 DocuSign Envelope ID:12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 3) A nonprofit charitable temporary food facility as defined in Section 113842 of the Health and Safety Code. If the definition in 14 CCR Section 18982(a)(25) for Food Recovery Organization differs from this definition, the definition in 14 CCR Section 18982(a)(25) shall apply to this Agreement. 1.57 Food Recovery Service Food Recovery Service" (FRS) means a person or entity that collects and transports Edible Food from a Commercial Edible Food Generator to a Food Recovery Organization or other entities for Food Recovery, or as otherwise defined in 14 CCR section 18982(a)(26). 1.58 Food Scraps Food Scraps" means all food such as, but not limited to, fruits, vegetables, meat, poultry, seafood, shellfish, bones, rice, beans, pasta, bread, cheese, and eggshells. Food Scraps exclude fats, oils, and grease when such materials are Source Separated from other Food Scraps. 1.59 Food Service Provider Food Service Provider" (FSP) means an entity primarily engaged in providing food services to institutional, governmental, Commercial, or industrial locations of others based on contractual arrangements with these types of organizations. 1.60 Food-Soiled Paper Food-Soiled Paper" means compostable paper material that has come in contact with food or liquid, such as, but not limited to, compostable paper plates, paper coffee cups, napkins, pizza boxes, and milk cartons. 1.61 Food Waste Food Waste" means Food Scraps, Food-Soiled Paper, and Compostable Plastics. 1.62 Franchise Franchise" means the exclusive right and privilege to provide Solid Waste Collection Services within the City granted by City to Contractor pursuant to the City's authority under Article XI, Section 7 of the State of California Constitution, and Section 40059 of the Public Resources Code. 14 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.63 Green Container Green Container" has the same meaning as in 14 CCR Section 18982.2(a)(29) and shall be used for the purpose of storage and Collection of Source Separated Green Container Organic Waste. 1.64 Green Waste Green Waste" means tree trimmings, brush, wood stumps, small pieces of wood, grass cuttings, dead plants, leaves, branches, flowers, plant stocks, and dead trees (not more than six (6) inches in diameter or 48 inches in length) and similar materials. 1.65 Green Waste Processing Facility Green Waste Processing Facility" means a permitted Facility where Green Waste is sorted, mulched or separated for the purposes of Recycling, reuse or composting. 1.66 Grocery Store Grocery Store" means a store primarily engaged in the retail sale of canned food; dry goods; fresh fruits and vegetables; fresh meats,fish, and poultry; and any area that is not separately owned within the store where the food is prepared and served, including a bakery, deli, and meat and seafood departments. 1.67 Gross Receipts Gross Receipts" means any and all revenue received from Billings by Contractor, and compensation in any form, of Contractor or subsidiaries, parent companies or other Affiliates of Contractor,for the Collection and transportation of Solid Waste,and the provision of Street Sweeping Services, pursuant to this Agreement, in accordance with Generally Accepted Accounting Principles, including, but not limited to, Customer fees for Collection of Solid Waste, without subtracting Disposal fees, City fees or other fees or any other cost of doing business. Revenue from the sale of Recyclable Materials is excluded from Gross Receipts for the purposes of calculating Road Mitigation Reimbursement. 1.68 Hauler Route Hauler Route" means the designated itinerary or sequence of stops for each segment of the City's Collection service area. 15 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.69 Hazardous Substance Hazardous Substance"shall mean any of the following: (a)any substances defined, regulated or listed (directly or by reference) as "Hazardous Substances", "hazardous materials", Hazardous Waste", "toxic waste", "pollutants" or "toxic substances" or similarly identified as hazardous to human health or the environment, in or pursuant to (i) CERCLA; (ii) the Hazardous Materials Transportation Act, 49 CFR; (iii) the Resource Conservation and Recovery Act; (iv) the Clean Water Act; (v) California Health and Safety Code §§25115-25117, 25249.8, 25281, 25316, 25501 and 25501.1; (vi) the Clean Air Act, 42 USC §7401 et seq.; and vii) California Water Code §13050; (b) any amendments, rules or regulations promulgated thereunder to such enumerated statutes or acts currently existing or hereafter enacted; and c) any other hazardous or toxic substance, material, chemical, waste or pollutant identified as hazardous or toxic or regulated under any other applicable Federal, State or local Environmental Laws currently existing or hereinafter enacted, including, without limitation, friable asbestos, polychlorinated biphenyls ("PCBs"), petroleum, natural gas and synthetic fuel products, and by-products. 1.70 Hazardous Waste Hazardous Waste" means all substances defined as Hazardous Waste, acutely Hazardous Waste, or extremely Hazardous Waste by the State of California in Health and Safety Code 25110.02, §25115, and §25117 or in the future amendments to or recodifications of such statutes or identified and listed as Hazardous Waste by the US Environmental Protection Agency (EPA), pursuant to the Resource Conservation and Recovery Act, all future amendments thereto, and all rules and regulations promulgated thereunder. 1.71 Household Hazardous Waste ("HHW") Household Hazardous Waste" means Hazardous Waste generated at Residential Premises. 1.72 Household Sharps Waste Household Sharps Waste" means home-generated sharps, as defined in Section 117671 of the California Health &Safety Code, including hypodermic needles, pen needles, intravenous needles, lancets, and other devices that are used to penetrate the skin for the delivery of medications, which are generated by a Single-Family residence. Household Sharps Waste does not include any business generated waste or Medical Waste. 16 of 149 DocuSign Envelope ID: 12E0B732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.73 Hot Spot Route Hot Spot Route" means the designated itinerary of stops along the City's right-of-way, such as sidewalks, alleys, streets, and parkways with a high intensity or frequency of abandoned Bulky Items. 1.74 Inclement Weather Inclement Weather" means weather conditions that prohibit the effective operation of Street Sweeping operations, such as heavy rain or winds. 1.75 Landfill Landfill" means a "solid waste landfill" as defined by Public Resources Code Section 40195.1. 1.76 Large Event Large Event" means an event, including, but not limited to, a sporting event or a flea market, that charges an admission price, or is operated by a local agency, and serves an average of more than 2,000 individuals per day of operation of the event, at a location that includes, but is not limited to, a public, nonprofit, or privately owned park, parking lot, golf course, street system, or other open space when being used for an event. 1.77 Large Venue Large Venue" means a permanent venue facility that annually seats or serves an average of more than 2,000 individuals within the grounds of the facility per day of operation of the venue facility. For purposes of 14 CCR, Division 7, Chapter 12 and this Agreement, a venue facility includes, but is not limited to, a public, nonprofit, or privately owned or operated stadium, amphitheater, arena, hall, amusement park, conference or civic center, zoo, aquarium, airport, racetrack, horse track, performing arts center, fairground, museum, theater, or other public attraction facility. A site under common ownership or control that includes more than one Large Venue that is contiguous with other Large Venues in the site, is a single Large Venue. 1.78 Materials Recovery Facility ("MRF") Materials Recovery Facility" means a permitted Solid Waste Facility where Solid Waste or Recyclable Materials are sorted or separated for the purposes of Recycling, processing, or composting. 17 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.79 Mulch Mulch" means a layer of material applied on top of soil, and, for the purposes of the Agreement, Mulch shall conform with the following conditions, or conditions as otherwise specified in 14 CCR Section 18993.1(f)(4): 1) Meets or exceeds the physical contamination, maximum metal concentration, and pathogen density standards for land application specified in 14 CCR Section 17852(a)(24.5)(A)(1) through (3). 2) Was produced at one or more of the following types of Facilities: a. A compostable material handling operation or Facility as defined in 14 CCR Section 17852(a)(12), that is permitted or authorized under 14 CCR, Division 7, other than a chipping and grinding operation or Facility as defined in 14 CCR Section 17852(a)(10); b. A Transfer/Processing Facility or Transfer/Processing operation as defined in 14 CCR Section 17402(a)(30) and (31), respectively, that is permitted or authorized under 14 CCR, Division 7; or, c. A Solid Waste Landfill as defined in Public Resources Code Section 40195.1 that is permitted under 27 CCR, Division 2. 1.80 Multi- Family Residential Dwelling, Multi-Family Residential, or Multi-Family Multi-Family Residential Dwelling" "Multi-Family Residential" or "Multi-Family" means of, from, or pertaining to Residential Premises with five (5) or more dwelling units. Multi-Family Residential Dwellings do not include hotels, motels, or other transient occupancy facilities. 1.81 Non-Collection Notice Non-Collection Notice" means a form developed by Contractor, and approved by City, to notify customers of the reason for non-collection of materials set out by the Customer for Collection. 1.82 Non-Compostable Paper Non-Compostable Paper" includes, but is not limited to, paper that is coated in a plastic material that will not breakdown in the Composting process. 18 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.83 Non-Organic Recyclables Non-Organic Recyclables" means non-putrescible and non-hazardous recyclable wastes, including but not limited to bottles, cans, metals, plastics, and glass. 1.84 Notice of Violation Notice of Violation" (NOV) means a notice that a violation of the Solid Waste provisions of the City Code or SB 1383 Regulations has occurred. 1.85 Organic Recycling Organic Recycling" means the processing of Organic Waste or Organics for the purpose of returning them to the economy in the form of raw materials for new, reused,or reconstituted products, or for conversion to energy. 1.86 Organic Waste Organic Waste" means Solid Waste containing material originated from living organisms and their metabolic waste products, including but not limited to Food Scraps, Green Waste, organic textiles and carpets, lumber, wood, Paper Products, Printing and Writing Papers, manure, biosolids, digestate, and sludges. Biosolids and digestate are defined in 14 CCR Section 18982(a). 1.87 Organic Waste Generator Organic Waste Generator" means a person or entity that is responsible for the initial creation of Organic Waste. 1.88 Owner Owner" means the person holding the legal title to the real property constituting the Premises to which Solid Waste Collection Services are to be provided under this Agreement or the person holding legal title to the disposal site, depending upon the context used in this Agreement. 1.89 Parking Lot Parking Lot" means an asphalt, concrete or other hard surfaced area primarily used for the parking of automobiles. 19 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.90 Person Person" means any individual, firm, association, organization, partnership, corporation, business trust,joint venture, the United States, the State of California, the County of Orange, cities, and special purpose districts. 1.91 Premises Premises" means any land, or building in City where Solid Waste is generated or accumulated. 1.92 Process, Processed, or Processing Process", "Processed", or "Processing" means the controlled separation, Recovery, volume reduction, conversion, or Recycling of Solid Waste including, but not limited to, organized, manual, automated, or mechanical sorting, the use of vehicles for spreading of waste for the purpose of Recovery, and/or includes the use of conveyor belts, sorting lines, or volume reduction equipment. 1.93 Prohibited Container Contaminants Prohibited Container Contaminants" means the following: (i) discarded materials placed in the Blue Container that are not identified as acceptable Source Separated Recyclable Materials for the Blue Container; (ii) discarded materials placed in the Green Container that are not identified as acceptable Source Separated Green Container Organic Waste for the Green Container; (iii) discarded materials placed in the Black Container that are identified as acceptable Source Separated Recyclable Materials and/or Source Separated Green Container Organic Wastes to be placed in the Green Container and/or Blue Container; and, (iv) Excluded Waste placed in any Container. 1.94 Rate Year Rate Year" means the period July 1 to June 30, for each year during the Term of this Agreement. 1.95 Recovery Recovery" means any activity or process described in 14 CCR Section 18983.1(b). 20 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.96 Recycling Recycling" means the processing of Recyclable Materials for the purpose of returning them to the economy in the form of raw materials for new, reused, or reconstituted products. The Collection, transportation or Disposal of Solid Waste not intended for, or capable of, reuse is not Recycling. Recycling does not include use of Solid Waste for conversion to energy. 1.97 Recyclable Materials or Recyclables Recyclable Materials" means Solid Waste that is Source Separated, has some potential economic value, and is set aside, handled, packaged, or offered for Collection in a manner different from Refuse in order to allow it to be processed for Recycling. 1.98 Recycled Content Paper Recycled-Content Paper" means paper products and printing and writing papers that consists of at least 30 percent, by fiber weight, postconsumer fiber. 1.99 Refuse Refuse" means putrescible and non-putrescible Solid Waste. 1.100 Renewable Natural Gas Renewable Natural Gas" or "RNG" means gas derived from Organic Waste that has been diverted from a Landfill and processed at an in-vessel digestion facility that is permitted or otherwise authorized by 14 CCR to recover Organic Waste. 1.101 Residential Residential" refers to services performed at and for Residential Premises, which include both Single-Family and Multi-family. 1.102 Residential Premises Residential Premises" means Premises upon which dwelling units exist, including, without limitation, Single-family and Multi-family Premises, apartments, condominiums, mobile homes, efficiency apartments, and second units. Notwithstanding any provision to the contrary in this Agreement, in the Orange Municipal Code, or otherwise, for purposes of this Agreement, Premises upon which the following uses are occurring shall not be deemed to be 21 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement Residential Premises, and rather shall be deemed to be Commercial Premises: Assisted Living Facilities, Convalescent Homes, Dormitories, Extended Stay Motels, Group Residential Facilities,Group Care Facilities, Hotels, Motels,and any other businesses not specifically listed at which residency is transient in nature and hence should be classified as Commercial Premises as determined by City on a case by case bases. 1.103 Re-Sweeps Re-Sweeps" mean those sweeps required of Contractor when previous sweeps have been deemed by City to be of poor quality, or when a Street or sections of a Street have been missed by Contractor during regularly scheduled Street Sweeping. Re-sweeps are completed at the expense of Contractor, and shall be completed within 24-hours of notice, weather permitting. 1.104 Roll-off Box Roll-off Box" means a Solid Waste Collection Containers of 10-yards or larger capable of being loaded via winch onto a Roll-off vehicle equipped with rails. 1.105 Roll-off Collection Service Roll-off Collection Service" means providing Solid Waste Collection Services using Roll-off Boxes or Roll-off Compactors. 1.106 Roll-off Compactor Roll-off Compactor" means an enclosed container equipped with a hydraulic packing ram with a capacity from 15 to 35 yards, which is designed to be pulled onto a Roll-off vehicle. 1.107 Route Review Route Review" means a visual inspection of Containers along a Hauler Route for the purpose of determining whether Prohibited Container Contaminants were placed in a Container and may include mechanical inspection methods such as the use of cameras. 1.108 SB 1383 SB 1383" means Senate Bill 1383 (Chapter 395, Statutes of 2016) , establishing methane emissions reduction targets in a statewide effort to reduce emissions of short-lived climate pollutants as amended from time to time. 22 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.109 SB 1383 Regulations SB 1383 Regulations" or refers to the Short-Lived Climate Pollutants (SLCP): Organic Waste Reductions regulations developed by CalRecycle and adopted in 2020 that created Chapter 12 of 14 CCR, Division 7 and amended portions of regulations of 14 CCR and 27 CCR. 1.110 Self-hauler (or Self-haul) Self-hauler" or "Self-haul" means a Person who hauls Solid Waste, Organic Waste, or recovered material he or she has generated to another Person. Self-hauler also includes a Person who Back-hauls waste, or as otherwise defined in 14 CCR section 18982(a)(66). 1.111 Service Level Service Level" refers to the number and size of a Customer's Container(s) and the frequency of Solid Waste Collection Services, as well as ancillary services such as lock/unlock service, Container push/pull service, etc. 1.112 "Single-Family Residential Dwelling", "Single-Family Residential" or "Single- Family" Single-Family Residential Dwelling," "Single-Family Residential," or "Single-Family" means a dwelling unit in a building containing four(4)or fewer Residential dwelling units. Single-family Dwelling units generally receive individual Cart Refuse Collection service, but service type is not dependent upon unit count unless specifically stated. 1.113 Solid Waste Solid Waste" has the same meaning as defined in Public Resources Code Section 40191, and means all putrescible and non-putrescible solid,semisolid, and liquid wastes, including trash, Refuse, rubbish, Recyclable Materials, Organic Waste, ashes, industrial wastes, C&D, abandoned vehicles and parts thereof, discarded home and industrial appliances, dewatered, treated, or chemically fixed sewage sludge which is not Hazardous Waste, manure, vegetable or animal solid and semisolid wastes, and other discarded solid and semisolid wastes, with the exception that Solid Waste does not include any of the following wastes: 1) Hazardous Waste, as defined in the Public Resources Code Section 40141. Radioactive waste regulated pursuant to the Radiation Control Law (Chapter 8 (commencing with Section 114960) of Part 9 of Division 104 of the Health &Safety Code). 23 of 149 DocuSIgn Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement Medical waste regulated pursuant to the Medical Waste Management Act (Part 14 commencing with Section 117600) of Division 104 of the State Health & Safety Code). Untreated medical waste shall not be disposed of in a Solid Waste Landfill, as defined in Public Resources Code Section 40195.1. Medical waste that has been treated and deemed to be Solid Waste shall be regulated pursuant to Division 30 of the Public Resources Code. 1.114 Solid Waste Handling Services Solid Waste Handling Services" means the Collection, Transfer, Transport, storage, Recycling, Processing, and Disposal of Solid Waste. 1.115 Source Separated Source Separated" means the segregation by the Waste Generator of individual components of Solid Waste, which otherwise would become Refuse or garbage (such as glass bottles, metal cans, newspapers, plastic containers, etc.) into separate Container(s) for the purpose of allowing the Recycling of such materials. 1.116 Source Separated Blue Container Organic Waste (SSBCOW) Source Separated Blue Container Organic Waste" or "SSBCOW" means Source Separated Organic Waste that can be placed in a Blue Container. 1.117 Source Separated Green Container Organic Waste (SSGCOW) Source Separated Green Container Organic Waste" or "SSGCOW" means Source Separated Organic Waste that can be placed in a Green Container, excluding SSBCOW, carpets, Non- Compostable Paper, and textiles. 1.118 Source Separated Recyclable Materials Source Separated Recyclable Materials" means Source Separated Non-Organic Recyclables and SSBCOW. 1.119 Special Sweeps Special Sweeps" means those required by City other than regularly scheduled Street Sweeping and involving unusual conditions such as traffic hazards, sewer overflow/spills, special City events, etc. Billing for special sweeps is based on an hourly rate with travel time excluded, as approved by City. 24 of 149 DocuSign Envelope ID: 12E08732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.120 State State" means the State of California. 1.121 Streets Streets" means all dedicated public rights-of-way within the existing or future corporate limits of City that are paved, whether curbed with or without gutters or uncurbed. 1.122 Street Sweeping Street Sweeping" means the removal by mechanical street sweepers of all debris from all portions of the Street, including, but not limited to both sides of residential streets, adjacent to residential raised medians, Street intersections, the areas adjacent to arterial Street curbs and raised medians(such as left turn pockets),the center striped areas of arterial streets,and City owned alley ways. 1.123 Street Sweeping Debris Street Sweeping Debris" means all litter, rubbish, leaves, sand, dirt, garbage, and other foreign material removable from a paved Street with a mechanical street sweeper. 1.124 Street Sweeping Routes Street Sweeping Routes" means the designated street sweeping routes per the maps in Appendix A. 1.125 Term Term" means the term of this Agreement, including any agreed upon extension periods. 1.126 Tier One Commercial Edible Food Generators Tier One Commercial Edible Food Generator" means a Commercial Edible Food Generator that is one of the following, each as defined in 14 CCR Section 18982: 1) Supermarket. 2) Grocery Store with a total facility size equal to or greater than 10,000 square feet. 3) Food Service Provider. 4) Food Distributor. 25 of 149 DocuSign Envelope ID. 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 5) Wholesale Food Vendor. 1.127 Tier Two Commercial Edible Food Generators Tier Two Commercial Edible Food Generator" means a Commercial Edible Food Generator that is one of the following, each as defined in 14 CCR Section 18982: 1) Restaurant with 250 or more seats, or a total facility size equal to or greater than 5,000 square feet. 2) Hotel with an on-site food facility and 200 or more rooms. 3) Health facility with an on-site food facility and 100 or more beds. 4) Large Venue. 5) Large Event. 6) A State agency with a cafeteria with 250 or more seats or total cafeteria facility size equal to or greater than 5,000 square feet. 7) A Local Education Agency with an on-site food facility. 1.128 Temporary Bin Collection Service Temporary Bin Collection Service" means Collection of occasional accumulations of Solid Waste from Bins that is not generated from ongoing activities or operations, but which is either (a) Solid Waste resulting from construction, remodeling, repair, demolition, site preparation, or grading; or(b) other temporary Solid Waste Collection where a Bin is provided for no more than 30 consecutive days, or no more than 60 days in any 90-day period. 1.129 Temporary Roll-off Box Collection Service Temporary Roll-off Collection Service" means Collection of occasional accumulations of Solid Waste from Roll-off Boxes that is not generated from ongoing activities or operations, but which is either (a) Solid Waste resulting from construction, remodeling, repair, demolition, site preparation, or grading; or (b) other temporary Solid Waste Collection where a Roll-off Box is provided for no more than 30 consecutive days, or no more than 60 days in any 90-day period. 26 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.130 Transfer Transfer" means the act of transferring Solid Waste Collected by Contractor from Contractor's Collection vehicles into larger vehicles at a Transfer Facility for Transport to other Facilities for Processing or Disposal of such materials. 1.131 Transfer Station Transfer Station" means a Facility that received Solid Waste from Collection vehicles and transfers the material to larger vehicles for transport to landfills and other destinations. Transfer Stations may or may not also include MRFs, transferring residual Refuse (Refuse left after the sorting of Recyclable Materials) to landfills and Recyclable Materials, including Green Waste and/or Construction and Demolition debris, to processors, brokers or end- users. 1.132 Transformation Transformation" means incineration, pyrolysis, distillation, gasification, or biological conversion other than composting. 1.133 Transformation Facility Transformation Facility" means a facility whose principal function is to convert, combust, or otherwise Process Solid Waste by incineration, pyrolysis, distillation, or biological conversion other than Composting. A Transformation Facility does not include a Composting Facility or a biomass conversion Facility. 1.134 Travel Speed Travel Speed" means the sweeper operator speed in miles per hour while the sweeping head is lowered in the operating position. 1.135 Universal Waste Universal Waste" shall mean those Hazardous Wastes identified as universal wastes in 22 CCR Section 66261.9, including, but not limited to, fluorescent bulbs and tubes; household batteries (e.g., D, AA, button-type, etc.); non-empty aerosol cans; electronic devices (e.g., televisions, computer monitors, cell phones, radios, video cassette recorders, etc.); and mercury containing devices (e.g., thermometers, thermostats, gauges, etc.), and generated by a Single-Family or Multi-Family residence. Universal Waste does not include any business generated waste. 27 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1.136 Waste Evaluation Waste Evaluation" means a procedure in which representative samples of Refuse, Recyclable Materials, and Organic Waste are taken from vehicle loads and sorted at a permitted Facility to determine the degree to which the materials are contaminated. 1.137 Waste Generator Waste Generator" means any Person as defined by the Public Resources Code, whose act or process produces Solid Waste as defined in the Public Resources Code, or whose act first causes Solid Waste to become subject to regulation. 1.138 White Goods White Goods" means discarded enameled household appliances, such as refrigerators, freezers, stoves, washer/dryers, water heaters, dishwashers, trash compactors and similar items. 1.139 Work Day Work Day" means any day Monday through Friday, which is not a holiday designated in Section 4.6.1.1 of this Agreement. 28 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 2. GRANT AND ACCEPTANCE OF FRANCHISE 2.1 Grant and Acceptance of Franchise, Indemnity of Award Subject to the terms and conditions of this Agreement and applicable State laws, and to the rights of State, county and school district facilities to use a Solid Waste enterprise other than Contractor, City hereby grants to Contractor and Contractor hereby accepts from City,for the Term in this Agreement, the exclusive franchise, right and privilege to provide Solid Waste Handling Services at all Residential and Commercial Premises within City(the "Franchise"). Contractor agrees to and shall timely take all actions that are reasonably necessary to defend the validity and enforceability of this Agreement and shall pay all costs related to such defense. Contractor shall defend, indemnify, protect and hold harmless, City, its officers, agents and employees from any and all claims, actions or proceedings to attack, set aside, void, annul or seek monetary damages resulting from an approval by City of this Agreement. City shall promptly notify Contractor of any such claim, action, or proceeding. City and Contractor shall meet in good faith in an effort to come to a mutual agreement for a joint defense; provided that City shall be entitled to select legal counsel of its choice to conduct the defense if an agreement cannot be reached. Contractor's obligations to pay all costs, defend, indemnify, protect and hold harmless under this section shall not be altered in the event City retains separate counsel and shall also include reimbursement to City for time spent by its in-house City attorneys responding to the litigation. 2.2 Enforcement of Exclusivity Contractor shall be responsible for enforcing the exclusivity of this Agreement. City shall have the right to enforce the exclusivity provisions in this Agreement if, in its absolute and sole discretion, it chooses to do so, but shall have no obligation to do so for the benefit of Contractor or otherwise. City additionally shall have the right, but not the obligation, to request that Contractor enforce the exclusivity provisions in this Agreement. Contractor shall have an affirmative obligation to enforce such exclusivity provisions when requested to do so by City. If Contractor requests that City take administrative, law enforcement, or other legal action to protect Contractor's exclusive rights, or otherwise enforce the exclusivity of this Agreement (including the adoption of any resolution or ordinance intended to facilitate the enforcement of the exclusive rights granted in this Agreement), Contractor shall reimburse City for all administrative, law enforcement, or other legal costs and fees related to any such action. Contractor's obligation to reimburse City shall not apply to any criminal enforcement by City. 29 of 149 DocuSign Envelope ID: 12E06732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 2.3 Effective Date The "Effective Date" of this Agreement shall be the date that City Council approves this Agreement. 2.4 Term of Agreement -Solid Waste The initial term of this Agreement(the "Term") shall be ten (10)years,commencing on March 1, 2024, and expiring February 28, 2034, subject to extension as provided in this Agreement. Notwithstanding the foregoing, the unexcused failure or refusal of Collector to perform any material term, covenant, obligation or condition contained in this Agreement shall give rise to the right, in favor of City,for earlier termination of this Agreement for cause in accordance with the procedures elsewhere contained in this Agreement. 2.5 Option to Extend Term The Term of this Agreement may be extended by mutual agreement of the Parties for an additional five-year period. Either Party intending to extend the Term for an additional five- year period shall notify the other Party of its desire to do so no later than twenty-four (24) months prior to the end of the then existing Term. 2.6 Representations and Warranties of Contractor Contractor hereby covenants, represents, and warrants the following to City for the purpose of inducing City to enter into this Agreement and to consummate the transaction contemplated hereby, all of which shall be true as of the date of this Agreement and as of the Effective Date: a) Contractor is validly existing as a corporation under the laws of the State of California. b) Neither the execution of this Agreement nor the delivery by Contractor of services nor the performance by Contractor of its obligations hereunder: (1) conflicts with,violates or results in a breach of any Applicable Law; (2) conflicts with, violates or results in a breach of any term or condition of any judgment, decree, agreement (including, without limitation, the certificate of incorporation of Contractor) or instrument to which Contractor is a party or by which Contractor or any of its properties or assets are bound,or constitutes a default under any such judgment, decree, agreement or instrument; or (3) will result in the creation or imposition of any encumbrance of any nature whatsoever upon any of the properties or assets of Contractor. 30 of 149 Docusign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement c)There is no action, suit or other proceeding as of the date of this Agreement, at law or in equity, or to the best of Contractor's knowledge, any investigation, before or by any court or governmental authority, pending or threatened against Contractor which is likely to result in an unfavorable decision, ruling or finding which would materially and adversely affect the validity or enforceability of this Agreement or any such agreement or instrument entered into by Contractor in connection with the transactions contemplated hereby, or which could materially and adversely affect the ability of Contractor to perform its obligations hereunder or which would have a material adverse effect on the financial condition of Contractor. This provision may be waived by the City acting through its City Manager or designee. d) Contractor has no knowledge of any Applicable Law in effect as of the date of this Agreement that would prohibit the performance by Contractor of this Agreement and the transactions contemplated hereby. e) Contractor has made an independent investigation, satisfactory to it, of the conditions and circumstances surrounding this Agreement and the work to be performed by it, and is satisfied that those conditions and circumstances will not impair its ability to perform the work and provide the Solid Waste Handling and Street Sweeping services required by this Agreement. f)The information supplied by Contractor in all submittals made in connection with negotiation and execution of this Agreement, including all materials in exhibits of this Agreement, and all representations and warranties made by Contractor throughout this Agreement are true, accurate, correct and complete in all material respects on and as of the Effective Date of this Agreement. Note that inaccuracies in Contractor's submittals, are grounds for termination of this Agreement. g)Contractor's representative, designated in Section 6.2.4, shall have authority in all daily operational matters related to this Agreement. City may rely upon action taken by such designated representative as action of Contractor unless the actions taken are not within the scope of this Agreement. h) Contractor has complied and shall at all times during the term of this Agreement comply, in all respects, with all immigration laws, regulations, statutes, rules, codes, and orders, including, without limitation, the Immigration Reform and Control Act of 1986 (IRCA). Contractor further represents and warrants that it has not and will not knowingly employ any 31 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement individual to perform services under this Agreement who is ineligible to work in the United States or under the terms of this Agreement. Contractor has properly maintained and shall at all times during the term of this Agreement properly maintain, all related employment documentation records including, without limitation, the completion and maintenance of the Form 1-9 for each of Contractor's employees. Contractor has responded, and shall at all times during the Term of this Agreement respond, in a timely fashion to any government inspection requires relating to immigration law compliance and/or Form 1-9 compliance and/or worksite enforcement by the Department of Homeland Security, the Department of Labor, or the Social Security Administration. Contractor agrees to verify the legal status of all of its employees and provide documentation of such verification whenever requested by the City. If Contractor discovers that any employee it has retained is not in compliance with Immigration Laws, Contractor agrees to terminate such employee. Contractor shall require all subcontractors and/or sub-consultants to make these same representations and warranties when hired to perform services under this Agreement. i)The Santa Ana Regional Water Quality Control Board ("RWQCB") has issued National Pollutant Discharge Elimination System ("NPDES") Permit No. R8- 2009-0030 (the "Permit"), which governs storm water and non-storm water discharges resulting from municipal activities performed by the City or its contractors. In order to comply with the Permit requirements, the County of Orange has prepared a Drainage Area Management Plan ("DAMP"), containing Model Maintenance Procedures with Best Management Practices ("BMPs") that the City and its contractors must adhere to. The Model Maintenance Procedures contain pollution prevention and source control techniques to minimize the impact of those activities upon dry-weather urban runoff, storm water runoff, and receiving water quality. Examples include: wash water from cleaning of sidewalks or Parking Lots must be collected and disposed of in the sewer or landscaped areas. The Permit, the DAMP, and the Model Maintenance Procedures are on file in the office of the City's Director of Public Works, which is located at 300 E. Chapman Avenue in the City of Orange. The Contractor hereby acknowledges that it has read, reviewed and understands the Permit, the DAMP, and the Model Maintenance Procedures, as they relate to the Street Sweeping services and hereby agrees to perform the Street Sweeping services in conformance therewith. 32 of 149 DocuSign Envelope ID: 12E0B732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 2.7 Conditions to Effectiveness of Agreement The satisfaction of each and all of the conditions set out below, each of which may be waived in whole or in part by City in writing, is a condition precedent to the effectiveness of this Agreement, and a condition of Contractor's continued right to the benefits conveyed in this Agreement: a) Accuracy of Representations. All representations and warranties made by Contractor and set forth in this Agreement shall be accurate, true and correct on and as of the Effective Date and shall remain so during the Term of this Agreement. b) Absence of Litigation. There shall not be any litigation pending in any court challenging the award of this Franchise to Contractor or the execution of this Agreement or seeking to restrain or enjoin its performance.This provision may be waived by the City, acting through its City Manager or designee. c)Furnishing of Insurance, Bond, and Letter of Credit. Contractor shall have furnished evidence of the insurance, bonds and letter of credit required by Section 10 and shall comply with all ongoing requirements relating thereto. 2.8 Delegation of Authority The administration of this Agreement by City shall be under the supervision and direction of the Public Works Department and the actions specified in this Agreement, unless otherwise stated, shall be taken by the City Manager or designee. This section shall in no way be interpreted to obviate required City Council action if so provided in the Orange Municipal Code. 2.9 Limitations to Scope Notwithstanding any provision to the contrary contained in this Agreement, the exclusive franchise, right and privilege to provide Solid Waste Handling Services at Premises within City granted to Contractor by this Agreement specifically excludes the following services, which services may be provided by Persons other than Contractor and which may be the subject of other permits, licenses, franchises, or agreements issued or entered by City: a) The sale or donation of Source Separated Recyclable Material by the Waste Generator to any Person or entity other than Contractor; provided, however, to the extent permitted by law, if the Waste Generator is required to pay monetary or non-monetary consideration for the Collection, transportation, 33 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement transfer, or processing of Recyclable Material, the fact that the Waste Generator receives a reduction or discount in price (or in other terms of the consideration the Waste Generator is required to pay) shall not be considered a sale or donation; b) Solid Waste, including Recyclable Materials and Green Waste, which is removed from any Premises by the Waste Generator,and which is transported personally by such Waste Generator (or by his or her full-time employees) to a processing or Disposal Facility in a manner consistent with all Applicable Laws and regulations; c)Green Waste removed from a Premises by a gardening, landscaping, or tree trimming Contractor, utilizing its own equipment, as an incidental part of a total service offered by that Contractor rather than as a hauling service; d) The Collection, transfer, transport, Recycling, processing, and Disposal of animal remains from slaughterhouse or butcher shops for use as tallow; e) The Collection, transfer, transport, Recycling, processing, and Disposal of by- products of sewage treatment, including sludge, sludge ash, grit, and screenings; f)The Collection, transfer, transport, Recycling, processing, and Disposal of Hazardous Substances, Hazardous Waste, Household Hazardous Waste, and radioactive waste regardless of its source; g) Construction and Demolition Debris which is removed by a duly licensed construction or demolition company or as part of a total service offered by said licensed company or by the City, where the licensed company utilizes its own equipment; h) The Collection,transfer,transport, Recycling, processing, and Disposal of Solid Waste by City through City officers or employees in the normal course of their City employment; and, i)Solid Waste Handling Services for governmental agencies other than City, which may have facilities in City, but over which City has no jurisdiction in connection with the regulation of Solid Waste. The exclusive franchise, right and privilege to provide Solid Waste Handling Services within City granted to Contractor by this Agreement shall be interpreted to be consistent with all 34 of 149 DocuSign Envelope ID: 12E0B732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement applicable State and Federal laws, now in effect and adopted during the term of this Agreement, and the scope of this Agreement shall be limited by all applicable current and developing laws and regulations. In the event that future interpretations of current law, future enactments or developing legal trends limit the ability of City to lawfully grant Contractor the scope of services as specifically set forth in this Agreement, Contractor agrees that the scope of this Agreement will be limited to those services and materials which may be lawfully provided, and that City shall not be responsible for any resulting lost profits claimed by Contractor. 2.10 City's Right to Direct Changes 2.10.1 General City may direct Contractor to perform additional services (including new Diversion programs, additional Solid Waste processing, etc.) or modify the manner in which it performs existing services or Bills for services. Pilot programs and innovative services which may entail new Collection methods, and different kinds of services and/or new requirements for Waste Generators are included among the kinds of changes which City may direct. Contractor acknowledges that State law may increase the Diversion requirement during the term of this Agreement and Contractor agrees to propose services to meet such Diversion requirements. Contractor shall be entitled to an adjustment in its Compensation for providing such additional or modified services, including a profit factor equal to ten percent (10%) of the incremental cost of such additional or modified services. If City and Contractor cannot agree on compensation for new or additional services,then City may contract with other parties for such services, which shall be considered exempt from the exclusivity provisions of Section 2.1. 2.10.2 New Diversion Programs Contractor shall present, within thirty (30) days of a request to do so by City, a proposal to provide additional or expanded Diversion services. The proposal shall contain a complete description of the following: a) Collection methodology to be employed (equipment, manpower, etc.). b) Equipment to be utilized (vehicle number, types, capacity, age, etc.). c)Labor requirements (number of employees by classification). d) Type(s) of Containers to be utilized. 35 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement e) Type(s) of material to be Collected. f)Provision for program publicity/education/marketing. g) Three-year projection of the financial results of the program's operations in an operating statement format including documentation of the key assumptions underlying the projections and the support for those assumptions. 2.11 Ownership of Solid Waste City and Contractor understand and agree that it is Contractor, and not City,who will arrange to Collect Solid Waste,that City has not, and, by this Agreement does not, instruct Contractor on its Collection methods, nor supervise the Collection process; nor do the Parties intend to place title to Solid Waste Collected by Contractor in City. Rather, the Parties intend that whatever, if any, title in and to the Solid Waste that is Collected by Contractor which otherwise might exist in or with City in the absence of this Agreement is hereby transferred to Contractor; and further that if Contractor gains title to such Solid Waste it is by operation of law and agreement with its Customers and is not the result of this Agreement. Subject to the provisions of this Agreement, and unless City exercises its rights to direct the location for Disposal and processing of Solid Waste, Contractor shall have the right to retain, Recycle, process, dispose of, and otherwise use Solid Waste Collected pursuant to the terms in this Agreement in any lawful fashion or for any lawful purpose; and, further, shall have the right to retain any benefit resulting from its right to retain, Recycle, process, dispose of, or reuse the Solid Waste which it Collects. Ownership of Solid Waste shall transfer to Contractor when Customer places it at point of Collection. 2.12 Contractor Authorization Contractor represents and warrants that it has the authority to enter into and perform its obligations under this Agreement. The Board of Directors or partners of Contractor (or the shareholders, if necessary) have taken all actions required by law, its articles of incorporation, its bylaws or otherwise to authorize the execution of this Agreement.The Persons signing this Agreement on behalf of Contractor have authority to do so. Contractor shall authorize one employee to serve as a single point of contact for the City for issues arising under this Agreement, and Contractor acknowledges and agrees that City may expect and assume that this employee's actions are taken on behalf of and with the full approval of the Contractor. 2.13 Permits and Licenses Contractor shall acquire and maintain all necessary permits and licenses for the Collecting, transporting, processing, and storing of Solid Waste and Recyclables, disposing of Solid 36 of 149 DocuSign Envelope ID: 12E013732-9F-CE-4tt/-A1 y1-iatu(4UAtua[ City of Orange Integrated Solid Waste Management and Street Sweeping Agreement Waste, the Recycling of Recyclables, and the disposition of any waste product as a result of sweeping the streets, as required under this Agreement. Failure to maintain all required permits shall be deemed a material breach of contract for which City may terminate this Agreement as provided in Section 12.2. Contractor must follow requirements of the Orange Municipal Code, including, but not limited to, obtaining a City of Orange business license. 37 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 3. AMOUNTS PAID TO THE CITY In addition to any other consideration set forth in this Agreement, as part of its consideration for entering into this Agreement, and for the exclusive franchise, right and privilege to provide Solid Waste Handling and Street Sweeping Services as specified in this Agreement, Contractor shall provide the following: 3.1 Payments to City 3.1.1 Retroactive Road Mitigation Reimbursement Contractor shall pay to the City a Retroactive Road Mitigation Payment in two one-time lump sum payments equal to three million dollars ($3,000,000) within thirty (30) days of March 1, 2024, and July 1, 2025. The total amount to be paid is six million dollars ($6,000,000). 3.1.2 Annual Road Mitigation Reimbursement To support City's maintenance costs for impacts of refuse vehicles on City streets and roads, Contractor shall pay to City an annual Road Mitigation Payment. The initial Road Mitigation Payment effective March 1, 2024, shall be equal to one million dollars ($1,000,000). Effective July 1, 2025, the payment amount shall be adjusted to two million dollars ($2,000,000). 3.1.3 Annual Public Education Payment To support City's outreach and administration of various Solid Waste programs, public education efforts and awards, Contractor shall pay to City an annual Public Education Payment. The Public Education Payment effective March 1, 2024, shall be equal to fifty-six thousand dollars ($56,000). 3.1.4 Annual Administrative Payment To support City's contract enforcement costs, Contractor shall pay to City an annual Administrative Payment. The Administrative Payment effective March 1, 2024, shall be equal to ninety-eight thousand dollars ($98,000). 3.1.5 Annual Adjustment of City Payments The annual payments outlined in this Section 3.1 shall be adjusted annually on each July 1st during the Term. The annual payments shall be adjusted based on the percent change in CPI, as defined in Section 1.41, for the 12-month period ended the prior December. The new 38 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement payment amount will go into effect each July 15t payment (first adjustment applies to payments effective July 1, 2025). 3.1.6 Timing of Payments The Road Mitigation Payment, Public Education Payment, and Administrative Payment shall each be paid in four equal quarterly installments, by January 1st,April 15t,July 1st, and October 1st of each year during the Term of the Agreement. The first payment shall be due on March 1, 2024. If a payment is not paid on or before the due date, Contractor shall pay to City a penalty in an amount equal to ten percent (10%) of the amount owing for that quarter, plus interest at a rate of one and one-half (1.5%) per month. 3.2 Facility Host Payment In the event Contractor, or any of its Affiliates, develops, acquires, or otherwise takes control of any Facility in the City used to Accept, Process, or Transfer Solid Waste, Contractor agrees to pay the City a mutually agreeable host payment prior starting operations. The Host Payment shall be calculated on all Solid Waste tons (including Refuse, Recyclables, and Organics) delivered to the Facility by Contractor, third party waste haulers, Commercial Customers or the general public. 39 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 4. DIRECT SERVICES—WASTE MANAGEMENT 4.1 Refuse 4.1.1 General The work to be done by Contractor pursuant to this Agreement shall include, but not be limited to, the furnishing of all labor, supervision, equipment, materials, supplies, and all other items necessary to perform the services required. The enumeration of, and specification of requirements for, particular items of labor or equipment shall not relieve Contractor of the duty to furnish all others, as may be required, whether enumerated elsewhere in the Agreement or not, and shall be in full compliance with the Safety Orders Regulations of the Division of Industrial Safety of the State of California, Title 8, California Code of Regulations (CAL/OSHA), and all applicable OSHA regulations as well as all other applicable California regulations. The work to be done by Contractor pursuant to this Agreement shall be accomplished in a thorough and professional manner so that all Customers are provided reliable, courteous, and high-quality Solid Waste Collection Services at all times. The enumeration of, and specification of requirements for, particular aspects of service quality shall not relieve Contractor of the duty of accomplishing all other aspects in the manner provided in this section, whether such other aspects are enumerated elsewhere in the Agreement or not. 4.1.2 Residential Cart Refuse Collection Contractor shall provide all Customers at Single-family and Multi-family Premises without Bin Service, with one Cart ("Refuse Cart(s)") and shall Collect all Refuse placed in the Cart for Collection not less than once per week. If there is a dispute between a Customer and Contractor as to whether Cart or Bin service shall be provided, City will make the final determination. Contractor may charge the Customer based on each Customer's size and number of Refuse Carts according to the monthly rate schedule in Exhibit A. Customers that regularly require more than one Refuse Cart may request additional Carts for an additional charge per Cart per month in accordance with the rate in Exhibit A. 4.1.3 Alley Collection The alley shall remain the point of Collection for Residential Customers that have historically had Containers Collected in the alley. Such Customers shall receive the same services as Customers with curbside Collection. Containers shall not be stored in public right-of-way. 40 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 4.1.4 Refuse Cart Overage Residential Cart Customers may periodically generate more Refuse than will fit in the Refuse Cart(s). Residential Customers are therefore entitled to two (2) pickups per calendar year of material that does not fit in the Refuse Cart(s) at no additional cost. One pickup shall consist of up to the equivalent of three (3) large bags, boxes, or barrels of Refuse. Contractor shall Collect all Refuse put out for Collection in addition to the foregoing two (2) pickups to be provided at no charge. Residential Customers may be charged per pickup in accordance with the approved rate schedule for overage pickups above two (2) per year. In addition to the two (2)free pickups, Contractor shall Collect all additional Refuse placed out for Collection in the Residential Customer's own Containers (bags, barrels, etc.) at no additional charge for two weeks beginning each December 26.This service is limited to Refuse that could otherwise be placed in the Refuse Cart, and not Bulky Items which are Collected in accordance with Section 1.17 and 4.1.17. Commercial Customers may request Cart overage Collections in accordance with the approved rate but are not entitled to free overage Collections. 4.1.5 Backyard Service for the Disabled Contractor shall provide disabled Customers with backyard service at no additional charge. Contractor shall remove Refuse, Recyclable, and Green Waste Containers and Green Waste bundles from Customer's storage area, place them out for Collection, and return Containers to Customer's storage area after Collection, ensuring that all doors or gates are closed securely. To qualify as a disabled Customer under this section, Customers must have been issued a handicap placard from the California Department of Motor Vehicles or otherwise obtain approval to receive such service from the City. Additionally, backyard service need not be provided if an able-bodied person resides with the disabled Customer. 4.1.6 Bin Refuse Collection Contractor shall provide Bin Service to Single-family Customers that request this service, Multi-family Customers not receiving Cart service, and Commercial Customers. Contractor shall Collect and remove all Refuse that is placed in Bins from the property of Customers receiving Bin Service, at least once per week and more frequently if required to handle the waste generated at the Premises where the Bins are located. City shall make final determination as to the number and size of Containers, and frequency of Collection to be provided to Customers. Special consideration shall be given when determining the pickup areas to ensure that the flow of traffic is not impeded. 41 of 149 DocuSign Envelope ID: 12E0B732-9FGE-4Et/-A1-91-36tt5/4UHtuts2 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement Contractor shall provide 2, 3, 4, and 6 cubic yard Bins upon request. Contractor will service Bins equipped with compaction devices or "compactors" that attach to the Bins. The provision of the compaction device itself is outside this Agreement. Contractor may charge the Customer based on each Customer's size and number of Refuse Bins according to the monthly rate schedule in Exhibit B. 4.1.7 Commercial Premises Cart Service As an alternative to the requirements of Section 4.1.6, Contractor shall offer Collection in Refuse and Recycling Carts (two Carts; one of each) to Customers at Commercial Premises that do not have space for, or do not generate enough waste to require the use of Bins for Collection. If Contractor and Customer have a disagreement as to whether a Cart is appropriate, or if City determines the Collection in Carts causes health and safety or other concerns, City shall make the final determination as to whether Collection in Carts may occur. Bulky Item pickups shall be provided to Commercial Cart Customers as allowed for Commercial Bin, and not Residential Customers. Each set of Commercial Refuse and Recycling Carts will be charged at the Commercial Cart rate in Exhibit B. 4.1.8 Overflowing Commercial Containers Customers that regularly produce more Refuse than their current level of service can accommodate may have their service level increased in accordance with the following procedure: a)First Incident in Three-Month Period - If more material is placed for Collection than fits in a Bin or Cart (unless Collection of the overage has been properly arranged under Section 4.1.4), Contractor shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer (at both the service and Billing addresses) the picture and a letter instructing that the next instance of an overflowing Container may result in a charge, and possibly in an increase in the level of service. b) Second Incident in Three-Month Period - Upon the second event of an overfilled Bin or Cart (unless Collection of the overage has been properly arranged under Section 4.1.4) in a three-month period, Contractor shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer the picture and a letter instructing that a third incident in that same three-month period may result in an increase in the level of service. If the Bin overflowed sufficiently to require the driver to leave the Collection vehicle to clean around the Bin, Contractor may charge the Bin Overage 42 of 149 DocuSign Envelope ID: 12E013732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement Cleanup fee in the approved rate schedule. If Refuse was left beside the Cart for Collection other than as permitted under Section 4.1.4, Contractor may charge the Cart Overage Fee in Exhibit B. c) Third Incident in Three-Month Period - Upon the third event of an overfilled Bin or Cart(unless Collection of the overage has been properly arranged under Section 4.1.4) in a three-month period, Contractor shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer the picture and a letter requesting that Customer increase its service level. If the Customer declines, Contractor may petition City to permit Contractor to increase the service level to accommodate the higher demand for service. If the Bin overflowed sufficiently to require the driver to leave the Collection vehicle to clean around the Bin, Contractor may charge the Bin Overage Cleanup fee in the approved rate schedule. If Refuse was left beside the Cart for Collection other than as permitted under Section 4.1.4, Contractor may charge the Cart Overage Fee in Exhibit B. This procedure shall also apply to Bins that exceed a total weight of seven hundred fifty(750) pounds per Bin. In the event the Contractor identifies Customer Bins that exceed this weight limit, Contractor may weigh the Bin and document the weight of the Bin. Contractor may notify Customer of the overweight Bin and weight requirements. Upon the third incident occurring in a month, Contractor may assess Customer the Overage Clean up Bin service per lift as shown in Exhibit B. 4.1.9 Roll-off Box Service Contractor shall provide exclusive (as limited by Section 2.9) permanent and temporary Roll- off Box and Compactor Collection service upon request. Contractor must deliver a temporary Roll-off Box to a Customer within twenty-four (24) hours of request (excluding Saturdays, Sundays, and holidays identified in Section 4.6.1.1). Contractor may not charge for any services not listed in the rate schedule without prior approval of the City. Contractor shall provide standard 10, 30 and 40-cubic-yard standard Roll-off Boxes, or Compactors. The furnishing of Compactor Roll-off Boxes, which are enclosed Containers attached to a compaction device, is not included in this Agreement. Providing service to such compactor Roll-off Boxes is included. Contractor may charge the Customers for Roll-off Box Service based on each Customer's number of loads and amount and type of tons according to the rates shown in Exhibit C. The first four(4)tons Collected in any Roll-off load shall be Collected at no charge pursuant to the tonnage limit shown in Exhibit C. 43 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 4.1.10 Roll-off Compactor Service to Plaza Customers Contractor shall provide Roll-off Compactor service for the current and any future Plaza Customers in the current or any future shared trash enclosures. Contractor shall manage, maintain, and invoice for the Roll-off Compactor services provided. 4.1.11 Temporary Bin Service Contractor shall provide exclusive (as limited by Section 2.9) temporary Bin Service to Customers upon request. Contractor must deliver a temporary Bin to a Customer within twenty-four (24) hours of request (excluding Saturdays, Sundays, and holidays identified in Section 4.6.1.1). Rates for temporary Bin Service are listed in Exhibit B. 4.1.12 Scout Vehicles Scout vehicles are defined as vehicles that transport a Solid Waste Container to and from the point of Collection by a Collection vehicle. Scout vehicle service may be charged for in accordance with the approved rate schedule under the following circumstances: 1) by request of City or Customer; 2) when Contractor's smallest Collection vehicles can not physically service the Containers; or 3) use of even the smaller Collection vehicles would cause damage to private access roads. Disputes between the Contractor and the Customer as to whether scout service will be used will be decided and settled by the City Manager or designee. Contractor may charge the Customers for Scout Service according to the rates shown in Exhibit B. 4.1.13 Bin Pushout Service Contractor may not charge a fee for pushing or rolling Bins to point of Collection. 4.1.14 Smaller Collection Vehicles Some areas of the City are located on alleys, streets, and hills that are difficult to service using standard size Collection vehicle, but can be serviced using a smaller Collection vehicle. These areas shall be serviced using a smaller Collection vehicle. Customers may not be charged an extra fee for receiving service with small Collection vehicles. 44 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 4.1.15 Locking Bins Contractor shall provide locking Bin Service (providing the hasp and lock and servicing the lock) to Customers that request such service in accordance with the rates shown in Exhibit B. 4.1.16 Redelivery/Return Trip Fee Contractor may charge a Redelivery/Return Trip Fee according to Exhibit B or Exhibit C in the event that Contractor arrives on time for a scheduled Collection of Bins or Roll-off Boxes, is impeded from Collection due to Container being blocked or otherwise unable to be Collected due to issues within the Customer's control, and Contractor must return a second time for Collection.The Redelivery/Return Trip charge may be assessed for the trip, but not per Bin or Roll-off Box, in the event of a Customer with multiple Bins or Roll-off Boxes. 4.1.17 On-Call Bulky Item Pickup Contractor shall provide Bulky Item pickup service to all Single-family, Multi-family and Commercial Customers. Each Residential Cart Customer, and Single-family Customers with Bin service, shall be entitled to six (6) Bulky Item pickups per calendar year at no additional charge. Each dwelling unit of each Residential Bin Customer with more than four (4) units shall be entitled to six (6) Bulky Item pickups per calendar year for each dwelling unit at no additional charge. Each Commercial customer shall be entitled to four (4) Bulky Item pickups per calendar year at no additional charge. Customers may put out up to four (4) Bulky Items at each pickup. Contractor may instruct Customers to provide Contractor with a minimum of one (1) business day's notice for the items which shall be Collected on the Customer's regular Collection day. Contractor shall Collect all Bulky Items as defined in Section 1.17 including items referred to as electronic waste or "e-waste". The following provisions shall apply to this program: a)No single item that cannot be handled by two (2) workers will be accepted. b) The following items will not be picked up: Hazardous Substances, Hazardous Waste, including waste oil or anti-freeze. (For the purposes of this section, universal wastes such as fluorescent bulbs, household batteries, and televisions, monitors and other items referred to as "e-waste" are not considered hazardous and shall be Collected by and disposed of in accordance with this section as well as Sections 4.1.18 and 4.1.19 by Contractor. c)Contractor shall record by class and weight (in tons)the Solid Waste Collected from Bulky Item pickups. Contractor shall record the kinds and weights (in 45 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement tons) of this Solid Waste that is diverted from the landfill through Recycling, reuse, Transformation, or other means of Diversion. Residential Customers that exceed the number of free pickups and Commercial Customers may receive Bulky Item Collection under the same terms for a fee, in accordance with the approved rate schedule in Exhibit A and Exhibit B. 4.1.18 Bulky Item Diversion Bulky Items Collected by Contractor in accordance with Section 4.1.17,or otherwise Collected under this Agreement, may not be landfilled or disposed of until the following hierarchy of Diversion efforts have been followed by Contractor: a)Reuse as is b) Disassemble for reuse or Recycling c)Recycle d) Disposal To accomplish this hierarchy, Contractor shall Collect Bulky Items in a separate vehicle designated for that purpose. Contractor shall not Collect Bulky Items into front or rear loading packer vehicles directly from the Customer's Collection location. 4.1.19 Diversion of Electronic and Other Special Wastes Contractor shall divert waste requiring special handling, such as electronic waste, or "e- waste", Collected in accordance with Sections 4.1.17, 4.1.18 or 4.5.6, or by other means under this Agreement, by taking these goods to a properly permitted Facility, and not by landfilling. 4.2 Recycling 4.2.1 Single-family Recycling Collection Contractor shall provide all Customers receiving Cart Refuse Collection, and Single-family Premises with Bin service, with a Cart for Collection of Recyclable Materials and shall Collect all Recyclable Materials placed in Carts for Collection not less than once per week. Contractor shall Collect Recyclable Materials from each Customer on the same day as Customers' Refuse Cart is Collected. Contractor shall Collect Recyclables in a separate Collection vehicle that 46 of 149 DocuSign Envelope ID: 12E0B732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement collects only Source Separated Recyclables. Contractor shall have a Recycling program whereby it, at a minimum, collects all materials that can be recovered at the local processing Facility used by Contractor. Contractor shall update public education materials accordingly as new items are added to those recovered by the Facility. Upon Customer request, Contractor shall provide Customers with one (1) additional Recycling Cart at no additional charge. Residents with Recycling Carts beyond two (2) per dwelling unit may be charged in accordance with Exhibit A. 4.2.2 Multi-family and Commercial Recyclables Collection Upon Customer request or City direction, Contractor shall provide Recycling Collection service to Multi-family and Commercial Customers requesting it from the Contractor. Contractor may purchase Recyclable Materials from its Customers as well. The Contractor agrees to provide Recycling Bins or Carts to such Customers in sufficient quantities to meet the Recycling needs of each Customer. Contractor shall Collect Recyclables in a separate Collection vehicle that collects only Source Separated Recyclables. Recycling Collection programs shall be made available at a minimum for the same materials as included above in Section 4.2.1 for the Single-family Recycling program. Contractor also agrees to make programs available for all other Recyclable Materials for which it has established markets. For the provision of Multi-family Green Waste Collection Service, Contractor shall charge Customers rates that are eighty-five percent (85%) of the rate for Refuse Collection Service for an equivalent level of service (i.e., the same size and number of Containers, and number of pickups per week). 4.2.3 Warning Notice Contractor shall place a red tag or other warning notice approved by the City on all Residential and Commercial Recyclable Material or Green Waste loads that are contaminated, indicating to the Customer why the load was not Collected and diverted, and providing Contractor's phone number. For Bin Customers,or Cart Customers with off-site management such as small apartment buildings,Contractor shall also mail a copy of the warning to the Customer's Billing address. Contractor shall notify City on a monthly basis of any warning notices issued pursuant to this section and shall provide copies of such warnings to City upon request. With prior written City authorization, Contractor may remove Recycling and Green Waste Containers from habitual contaminators that have received a total of three (3) warnings on either or both Containers in any six-month period. Residential Recycling and Green Waste Containers will be returned only after six (6) months, or upon direction of the City, or if there is a change of occupancy. Commercial Containers will be returned upon direction of the City, or if there is a change of occupancy. 47 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement Contractor shall visually inspect the contents of Residential Refuse Carts and, if significant Recyclable Materials are found, leave a notice educating Customer to better separate Recyclable Materials from Refuse. 4.2.4 Marketing and Sale of Recyclable Materials Contractor shall be responsible for marketing and sale of all Recyclable Materials Collected pursuant to this Agreement. Contractor may retain revenue from the sale of Recyclable Materials and shall report the amount of such revenues to City upon request. 4.2.5 Minimum Diversion Requirement Contractor agrees to implement measures to meet the requirements of AB 939 with respect to the waste stream covered by this Agreement. Contractor shall recycle or divert from landfill sufficient waste to ensure that the City meets current requirements under AB 939. Currently, all jurisdictions in California are required to divert sufficient waste from landfills such that they do not exceed their targeted per capita disposal as measured in pounds per person per day. Contractor shall be considered to have met this requirement if the City's actual per capita disposal is less than its targeted per capita disposal as shown in its Electronic Annual Report to the California Department of Resources Recycling and Recovery CalRecycle). In any year that the City's actual per capita disposal exceeds its targeted per capita disposal, the City may assess liquidated damages pursuant to Section 12.3 for failure to meet this goal. In the event that the State increases Diversion requirements for local jurisdictions, the City and Contractor will discuss applicable solutions and programs to meet the new Diversion requirements. City and Contractor agree to negotiate with respect to any additional services related to AB 939, which Contractor and City agree to implement. Further indemnification and guarantee with respect to AB 939 is described in Section 10.3. 4.2.6 Construction and Demolition Debris Diversion Contractor shall bring all loads of mixed Construction and Demolition Debris to a C&D processing Facility designated under this Agreement for separation and recovery of this material. Designated facilities include facilities approved by the City for use by self-haulers, facilities identified in Section 4.8 of this Agreement that process Construction and Demolition Debris, and any Facility for which Contractor requests City's approval. City's approval will be based upon the Facility's ability to divert material from landfilling and the effect of the Facility's tipping fee on Customer rates. Contractor shall divert a minimum of sixty-five percent (65%) of all Construction and Demolition Debris Collected. 48 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement Contractor may deliver separated loads of Construction and Demolition Debris, such as clean dirt, concrete or rebar, to facilities specializing in the reuse of such materials, provided this material is diverted from landfilling. Contractor may charge the Customers for Construction and Demolition Roll-off Box Service based on each Customer's number of loads and amount and type of tons according to the rates shown in Exhibit C. The first four(4)tons Collected in any Roll-off load shall be Collected at no charge pursuant to the tonnage limit shown in Exhibit C. 4.2.7 Edible Food Recovery Program Contractor shall support and promote the recovery of Edible Food. Contractor shall identify sources of recoverable Edible Food and share that information with City. Contractor shall include a list of all Commercial Customers that generate recoverable Edible Food in its monthly report to City pursuant to Section 9.3.2. 4.2.8 Optional Sharps Collection City reserves the right to require Contractor to administer a Sharps Collection program. Contractor would be entitled to a reasonable rate increase for program costs. 4.2.9 Non-Profit Group Assistance Contractor shall provide Roll-off Box Containers or steel storage containers at a fifteen percent (15%) discount to non-profit organizations for the Collection of Recyclable Materials. 4.2.10 Horse Stable Bedding Contractor shall provide Collection of sources separated stable bedding (for example, wood shavings and horse manure). Manure bin rates shall be adjusted per the Residential Formula in Section 7.4. Contractor shall visit all properties that produce stable bedding to offer this Collection program using one to three-cubic-yard Bins. Source separated, Collected horse stable bedding shall be sent to a bio-solids composting Facility, or other Facility as approved by City, for maximum Diversion. 4.3 Organics Collection Program 4.3.1 Single-family Organics Waste Collection 49 of 149 DocuSign Envelope ID: 12EOB732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement Contractor shall implement a Single-family Residential Organics Collection Program. The Single-family Organics Collection Program shall supplant the Single-family Green Waste Collection from the previous agreement. The Single-family Residential Organics Collection Program shall consist of Contractor collecting Organics from all Single-family Residential Premises in the City using Cart Collection Service. Contractor shall Collect Organics on the same day as Customer's Refuse Cart is collected. Contractor shall Collect Green Waste/Organics in a separate Collection vehicle that collects only Source Separated Green Waste/Organics. Contractor shall provide each Customer at all Single-family Residential Premises in the City with one (1) ninety-five (95) gallon Green Waste/Organics Cart per Dwelling Unit. Contractor shall Collect all Organics properly placed out for Collection by Single-family Customers not less than once per week using automated Collection vehicles. Contractor shall be obligated to Collect Green Waste set out for Collection in bundles if it is a maximum of four (4) feet long and eighteen (18) inches in diameter. Upon Customer request, Contractor shall provide one additional Green/Organics Waste Cart at no additional charge. Residents with Green/Organics Waste Carts beyond two (2) per dwelling unit may be charged in accordance with Exhibit A. Contractor shall transport all Organics collected in the City to the Perris Regional Organics Anaerobic Digestion Facility (ROAR) for processing, or another Facility approved by City. Contractor shall not deliver any Organics collected from Single-family Premises to any Facility to be landfilled or used as Alternative Daily Cover. City reserves the option to direct Green Waste to any alternative processing Facility. If City enacts said option, rates are to be adjusted accordingly. Contractor shall continuously monitor the Single-family Organics Collection Program for both participation and contamination such that each year, Contractor has opened the Cart lid and checked the contents of a minimum of two percent (2%) of all Single-Family Premises in the City to note contamination levels in the Carts. (Contractor shall develop a plan to randomly sample areas of City, which shall be submitted to City for approval annually.) When Contractor finds a household that is not participating, Contractor shall leave or direct mail the household education materials describing the programs and how to participate. When Contractor finds contamination Contractor shall alert the Customer by leaving a hang-tag and by leaving public education materials concerning the acceptable materials for the program. Contractor shall recheck the residences that were tagged within sixty (60) days to see if the contamination has been reduced or eliminated. 50 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement Contractor's compensation for the Single-family Organics Collection Program shall be included in the rate for Single-family Refuse Collection Service. 51 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 4.3.2 Multi-family Green Waste Collection Contractor shall implement and offer a Green Waste Collection Program for all Multi-family Residential Premises in City. Contractor shall provide for the appropriate number of appropriately-sized Containers for each Multi-family Premises. Upon Customer request or City direction, Contractor shall Collect Green Waste from Multi- family Premises at least once per week, and more frequently as required to prevent odor, or overflow of material. Contractor shall Collect Green Waste in a separate Collection vehicle that collects only Source Separated Green Waste. Contractor shall transport all Green Waste collected in the City to the Perris Regional Organics Anaerobic Digestion Facility (ROAR) for processing, or another Facility approved by City. Contractor shall not deliver any Green Waste Collected from Multi-family Premises to any Facility to be landfilled or used as Alternative Daily Cover. City reserves the option to direct Green Waste to any alternative processing Facility. If City enacts said option, rates are to be adjusted accordingly. Contractor shall continuously monitor the Multi-family Green Waste Collection Program for both participation and contamination such that each year, Contractor shall randomly observe a minimum of five (5) Multi-family Premises in the City to note contamination levels in the Green Waste in the Bins and Carts. When Contractor finds contamination, Contractor shall photo-document the contamination and shall alert the manager of the Multi-family Premises. Contractor shall provide or re-provide training and public education materials concerning the acceptable materials for each program,to residents of the Multi-family Premises in a minimum of one (1) in-person on-site training session. For the provision of Multi-family Green Waste Collection Service, Contractor shall charge Customers rates that are eighty-five percent (85%) of the rate for Refuse Collection Service for an equivalent level of service (i.e., the same size and number of Containers, and number of pickups per week). 4.3.3 Commercial Green Waste and Wood Waste Collection Contractor shall implement a Green Waste and non-hazardous wood waste Collection Program for all Commercial Premises in the City. Contractor shall provide for the appropriate number of appropriately-sized Containers for each Commercial Premises. Upon Customer request or City direction, Contractor shall Collect Green Waste and non- hazardous wood from Commercial Premises at least once per week, and more frequently as 52 of 149 DocuSign Envelope ID: 12E06732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement required to prevent odor, or overflow of material. Contractor shall Collect Green Waste in a separate Collection vehicle that collects only Source Separated Green Waste. Contractor shall transport all Green Waste collected in the City to the Perris Regional Organics Anaerobic Digestion Facility (ROAR) for processing. Contractor shall not deliver any Green Waste Collected from Commercial Premises to any Facility to be landfilled or used as Alternative Daily Cover. City reserves the option to direct Green Waste to any alternative processing Facility. If City enacts said option, rates are to be adjusted accordingly. Contractor shall continuously monitor the Commercial Green Waste and non-hazardous wood waste Collection Program for both participation and contamination such that each year, Contractor shall randomly observe a minimum of five (5) Commercial Premises in the City to note contamination levels in the Green Waste in the Bins and Carts. When Contractor finds contamination, Contractor shall photo-document the contamination and shall alert the Customer. Contractor shall provide or re-provide training and public education materials concerning the acceptable materials for each program, to Customers in a minimum of one (1) in-person on-site training session. For the provision of Commercial Green Waste and non-hazardous wood waste Collection Service, Contractor shall charge Customers rates that are eighty-five percent (85%) of the rate for Refuse Collection Service for an equivalent level of service (i.e., the same size and number of Containers, and number of pickups per week). 4.3.4 Commercial Roll-off Green Waste Collection Upon Customer request, Contractor shall provide Green Waste and non-hazardous wood waste Collection service to Commercial Premises using Roll-off Boxes. Contractor shall charge Customers rates shown in Exhibit C. 4.3.5 Commercial Food Waste Collection Contractor shall implement a Food Waste Collection Program for all Commercial Premises in the City. Contractor shall provide for the appropriate number of appropriately-sized Containers for each Commercial Premises. Upon Customer request or City direction, Contractor shall Collect Source Separated Food Waste from restaurants, cafeterias, assisted living facilities, hospitals, supermarkets, and all other Commercial Premises where food is prepared, sold and/or consumed. Contractor shall Collect Food Waste in a separate Collection vehicle that collects only Source Separated Green Waste/Organics or Food Waste. At the direction of the City, Contractor shall include Food- Soiled Paper in the Food Waste program. If the processing Facility Contractor is using does 53 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement not allow Food-Soiled Paper, Contractor shall work with City to provide a method and/or a Facility capable of handling Food-Soiled Paper. Contractor shall provide wheeled Carts or other Containers and/or Bins, roll-offs or compactors as necessary for the segregation and storage of Food Waste to be recycled. Contractor shall prepare a Food Waste Recycling plan in consultation with each business to determine the appropriate number and sizes of Containers, Collection frequency,and provide and distribute appropriate Containers, Bins, or roll-offs to Customers. Contractor shall provide Customers with information and contact person(s) who are approved by City to establish, coordinate, and provide Edible Food donation and collection services. Contractor shall fully cooperate with all Persons working with Customers to establish, coordinate, and provide Edible Food donation services, including Customer's employees and agents and the City. Contractor shall factor any successful Edible Food donation program projections and/or actual results into the Food Waste Recycling plan including the estimated requirements for Container sizes and frequencies of Collection, training, interior Container locations, and sizes. Collected Food Waste shall be processed at the Perris Regional Anaerobic Digestion (ROAR) Facility or the Orange Organics Facility or other Facility as approved by the City. City reserves the option to direct Food Waste to any other processing Facility. If City enacts said option, rates are to be adjusted accordingly. Contractor shall continuously monitor the Commercial Food Waste Collection Program for both participation and contamination such that each year, Contractor shall randomly observe a minimum of five (5) Commercial Premises in the City to note contamination levels in the Food Waste in the Bins and Carts. When Contractor finds contamination, Contractor shall photo-document the contamination and shall alert the Customer. Contractor shall provide or re-provide training and public education materials concerning the acceptable materials for each program, to Customers in a minimum of one (1) in-person on-site training session. For the provision of Commercial Food Waste Collection Service, Contractor shall charge Customers rates that are eighty-five percent (85%) of the rate for Refuse Collection Service for an equivalent level of service (i.e., the same size and number of Containers, and number of pickups per week). 4.3.6 Holiday Tree Collection Program Contractor shall operate an annual holiday tree Collection program from December 26 through January 31. During this period, all holiday trees placed out for Collection by Single- family and Multi-family Customers shall be Collected by Contractor. After this period, trees 54 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement will be Collected as Bulky Items under Section 1.17. Trees up to seven (7) feet in length will be Collected and diverted without Customers needing to cut them. Contractor may request that Customers with larger trees cut the trees to pieces no longer than seven (7) feet. Contractor will divert all holiday trees from landfilling. The City has the option to request the Contractor provide a Christmas tree takeback event. 4.4 Cart Selection, Distribution and Exchanges Contractor shall provide Residential Cart Customers with the option of three Cart sizes for Refuse, Recycling and Green Waste Collection. Sizes offered will include 35, 64 and 96- gallons. Commercial Cart Customers may be limited to 96-gallon Carts. Customers may each request one (1) free exchange in Cart sizes within six (6) months of starting new service. One exchange includes all Cart size changes included in the same Customer request and may include changes being made to one, two or three of the Customer's Carts. If a second request is made, or if a request is made following the initial six- month period, Contractor may charge for each request, regardless of the number of Carts exchanged, in accordance with the rate shown in Exhibit A. 4.5 City Services 4.5.1 City Premises Collection Contractor shall Collect and dispose of all Refuse, Recyclable Material, and Green Waste put in Containers for Collection at all current and future Premises owned and or operated by City at no charge to City (except as provided below). Such Premises include, but are not limited to, City Hall, City offices, parks, City yard and street maintenance operations. Collections shall be scheduled at a time mutually agreed upon by Contractor and City. Contractor shall provide Roll-off pulls per calendar year from City Premises at no charge to City. For all Roll-off pulls from City Premises that exceed 4.2% of the annual revenue of the Agreement in a calendar year, the excess amount will be captured as a pass-through in the following year rate adjustment. Street litter collection and abandoned item collection are not included in these figures. There shall be no charge for Collection from City Premises using Carts or Bins. Except for minor tenant improvements (i.e.,fewer than 1,000 square feet), or minor sidewalk repairs (i.e., fewer than 100 linear feet), performed by City crews (and not third-party contractors), Contractor shall not be required to Collect Construction and Demolition Waste from City Premises. 55 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement The Collection of Street Sweeping Debris is outside the scope of providing service to City Premises. See Section 4.5.5 regarding the Collection of Street Sweeping debris. 4.5.2 City-Sponsored Events Contractor shall provide Solid Waste Collection, Recyclables Collection, Organics Collection, and Disposal/processing service for City-sponsored events. This shall include providing Containers (Bins, Roll-off Boxes, clearly labeled Recycling Containers and cardboard waste boxes with liners) to Collect and dispose of, or process, all Solid Waste and Recyclable Materials. The Contractor shall provide these services at City-sponsored events, at no cost to City or ratepayers. Note that the International Street Fair is not considered a City-sponsored event for purposes of this section. Current City-sponsored events include, but are not limited to: a)May Parade b) Concerts in the Park c)3rd of July Celebration d) Treats in the Streets Autumn Festival e) Veterans Day Tribute f)Tree Lighting Ceremony g)Children's Holiday Breakfast h) Clean-up Files Day i)Health Fair/Rideshare Events j)National Night Out (Police) k)New park and City Facility openings I)City Department Open House Events m) Chapman Graduation Cleanup Week n) Spring Cleaning Event (Community wide cleanup for all districts) o) Shredding Event p) E-Waste Take Back City may replace events that are discontinued with events requiring comparable Solid Waste and Recycling Collection service demands. 4.5.3 Street Litter Container Collection Contractor shall service all public litter Containers twice a day Monday through Saturday. Public litter Containers are provided by the Contractor with City approval. Any liners or other items needed to continue service shall be provided by Contractor. If service levels are not sufficient to ensure Containers do not become full, service levels shall be increased at no additional cost to the City. If additional litter Containers are added, Contractor shall service 56 of 149 uocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement such Containers at no additional cost to the City. Side load capable containers are an acceptable use with City approval. Public litter containers include but is not limited to Plaza area and bus stops. 4.5.4 Emergency Collection and Disposal Service Contractor shall assist City at the City's request with emergency Collection and Disposal service (in the event of major disaster, such as an earthquake, storm, riot, or civil disturbance), or as otherwise determined necessary by the City, by providing Collection equipment and drivers normally assigned to City. Contractor may charge City for actual Disposal costs plus service rates per the approved rate schedule. 4.5.5 Street Sweepings Disposal Contractor shall Collect and Dispose of City's Street Sweeping Debris at Waste Management's Facility at 2050 N. Glassell, or any other Facility selected by Contractor and approved by the City. Contractor shall not deliver, store, or transfer Street Sweeping Debris at any City facility without the City's advance written approval. 4.5.6 Abandoned Item Collection by City Contractor shall Collect and dispose of, at no additional charge, within one (1) business day of notification from City, all items left in the City's right-of-way, such as sidewalks, alleys, streets, and parkways. Contractor shall monitor, Collect, and dispose of all items along a Hot Spot Route identified by Contractor and City staff. Hot Spot Route Collection shall occur weekly, at no additional charge to City. Contractor shall properly divert from landfilling or Dispose of such items in accordance with Sections 4.1.18 and 4.1.19. 4.5.7 Community Development Review Services Upon City request and at no additional charge, Contractor shall review development projects submitted to the City's Community Development Department or Public Works Department and advise regarding adequacy of Container storage space, service, and access, particularly to accommodate Recycling, Organics Recycling, and Edible Food Recovery programs. 4.5.8 Large Venue Event Assistance, Event Recycling Contractor shall assist planners of large venue events with reporting and planning needs as may be useful in meeting the requirements of AB 2176 at no additional charge. Contractor shall provide Recycling services upon request to special event planners. 57 of 149 uocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 4.5.9 Door-to-Door Household Hazardous Waste (HHW) Collection — Option Contractor may instruct Customers to utilize a door-to-door HHW collection program provided by the City, provided the City has such a contract in force and that such services are within the scope of the contract terms. Contractor may direct Customer inquiries regarding the Collection of HHWs that are within the scope of such a contract to City's HHW contractor. The Contractor should also advertise the availability of HHW drop-off facilities provided by the County of Orange. However, proper disposal of all HHW collected by Contractor in the City shall be the responsibility of Contractor. City reserves the right at any time during the Term of this Agreement to require Contractor to administer a door-to-door call-in HHW Collection program. City may negotiate an alternative scope of services under which Contractor shall be compensated for actual costs incurred. 4.5.10 Storage Vans Upon request by City, Contactor shall supply six (6) each 21' x 8' x 8' steel storage containers for City needs at no additional charge. 4.5.11 Free Compost Events Contractor shall provide Residents with free bagged compost at two (2) give-a-way events per year. Contractor shall provide at least two (2) 40-yard Roll-off boxes of bagged compost per event at no additional charge. 4.5.12 Organic Waste Product Procurement Each year during the Term, Contractor shall procure an amount of Recovered Organic Waste Product to ensure that the City meets its annual target under 14 CCR Section 18993.1. Contractor (or its Affiliates as allowed by Applicable Law) shall procure and provide on the City's behalf Recovered Organic Waste Product in an amount that satisfies the City's annual Recovered Organic Waste Procurement target pursuant to 14 CCR Section 18993.1. Recovered Organic Waste Procurement may include RNG, Compost or Mulch produced by Contractor. At City's request, Contractor shall timely obtain and provide City with a written certification verifying that the in-vessel digestion Facility producing the RNG is consistent with the requirements of 14 CCR Section 18993.1(h). Contractor shall maintain records of the amount of RNG produced and shall provide City the same amount of RNG as would be used by all Contractor's Collection Vehicles assigned to City's Collection Routes. Contractor agrees to City's right to report this RNG usage toward the City's fulfilment of its annual target under 58 of 149 DocuSign Envelope ID: 12E0B732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 14 CCR Section 18993.1. Contractor shall deliver Mulch or Compost in Roll-off Boxes or via dump truck within thirty (30) calendar days of request to any accessible location within the City limits. Delivery of Mulch or Compost to City facilities, properties, and right-of-way is limited to 1,000 cubic yards annually at no charge. Upon request, Contractor shall provide the City with Mulch or Compost lab results and specifications. All Mulch or Compost provided by Contractor must meet or exceed State requirements for Mulch quality, including those standards regarding Mulch or Compost maturity, reduction of pathogens, elimination of weed seeds, and concentrations of physical contaminants such as glass, plastic, metal, and other Non-Organic Recyclables. All Mulch or Compost provided by Contractor must be suitable for use in landscaping, parks, sports fields, and community gardens, and must be suitable for distribution to the general public. Contractor shall also maintain records related to its procurement of Recovered Organic Waste Product on the City's behalf in accordance with 14 CCR Section 18993.2 and provide such records to City upon request. 4.5.13 Renewable Natural Gas If requested by City, Contractor shall provide the name, location, and contact information of each entity, operation, or Facility from whom Contractor procured Renewable Natural Gas RNG) on the City's behalf. If requested by City, Contractor shall provide the total amount of RNG procured for the City by the Contractor for use by Contractor or its Affiliates, in diesel gallon equivalents (DGE), including copies of any receipts, invoices, or other similar documentation. 4.5.14 In-Office Recycling Containers for City Administrative Offices Contractor shall provide, at no additional charge, in-office Recycling Containers to all City administrative offices for the purpose of accumulating Recyclable Materials in offices prior to transfer to the Recycling Container emptied by Contractor. 4.5.15 In-Unit Recycling Containers Contractor shall offer for sale in-unit Recycling Containers to Commercial and Residential Bin Customers for the purpose of accumulating Recyclables inside the building or dwelling unit. Contractor shall offer in-unit Recycling Containers for a price equal to Contractor's direct cost, without markup. Upon City request, Contractor shall submit documentation to the City supporting its direct costs, which costs shall be subject to the approval of the City Manager or designee. 59 of 149 L)ocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 4.5.16 Capacity Guarantee Contractor guarantees capacity at Contractor-owned and operated facilities for the transfer of all Refuse and processing of all Recyclables, Green Waste, and Organics Collected under this Agreement throughout the Term. With City approval, Contractor may send Recyclables, Green Waste, and or Organics to be diverted, not Disposed, to facilities outside of the County of Orange. 60 of 149 DocuSign Envelope ID: 12E013 7 3 2-9 1-CE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 4.5.17 Compliance Coordinators During the Term of this Agreement, Contractor shall provide two (2) full time (40 hours per week) employees (Compliance Coordinators) devoted to education, outreach, and monthly reporting such that Contractor will ensure that the City is always in compliance with the education, outreach, and reporting requirements of AB 341, AB 1826, and SB 1383. Should a vacancy in this position occur, the Contractor shall notify the City and the vacancy shall be filled within forty-five (45) days. A Compliance Coordinator may also serve as Contract Liaison pursuant to Section 6.2.4. Upon the Effective Date, Contractor shall provide one (1) additional full time Compliance Coordinator (for a total of three) dedicated to the City for the first year, or until each and every Customer is provided a three-container system (or a waiver approved by City) in compliance with SB 1383. 4.5.18 Edible Food Recovery Program To support the City's efforts to fight food insecurity, reduce the amount of Edible Food sent to landfills, and to comply with SB 1383, Contractor shall arrange to implement an Edible Food Recovery Program in the City, either using Contractor's own resources, or through a subcontractor. City and Contractor agree that the initial cost of the program will be based on an annual cost of approximately seventeen cents ($0.17) per resident, or approximately twenty-four thousand dollars ($24,000.00) per year. City and Contractor agree that the Edible Food Recovery Program will consist of Contractor, or its subcontractor, performing the following tasks: a)Maintain list of Tier I, Tier II food waste generators and Food Recovery Organizations and Services (FROs/FRSs) operating within the City. b) Conduct targeted and recorded Outreach pertaining to the recovery of excess edible food to all permitted food waste generators in cooperation with or conjunction with City and Contractor. Outreach touchpoints will be prioritized as follows: 1. Tier I and Tier II food waste generators as defined by SB 1383 (4-6 touchpoints in year 1) 2. Top permitted food waste generators in the city (6 touchpoints in year 1) 3. All permitted food waste generators (minimum 2 touchpoints in year 1) c)Provide Outreach campaigns through an online customer relationship management platform. 61 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement d) Conduct annual inspections of Tier I, Tier II, and Food Recovery Organizations and Services (FROs/FRSs) operating within the City. Inspections shall include: 1. Confirmation of a written agreement between FROs/FRSs and Tier I, and Tier II food waste generators, and that, 2. Food donation logs are actively being utilized. e)Record and provide to City, documentation of all shared touchpoint efforts made to Edible Food generators using one or more technology platforms in compliance with municipal requirements mandated in SB 1383. f)Through use of approved food recovery technology platforms, record all recovered excess Edible Food donated within the City and collected from all non-profit food agencies located within the City in compliance with SB 1383. g) As directed by the City, work with all applicable City departments and public agencies to inform potential permitted Edible Food generators about food recovery and the City's Edible Food Recovery program. This includes the City's Community Development, Parks and Recreation, and Public Works departments, the Orange Public Library, and schools, colleges, and universities. h) Provide safe food handling training which may include third party inspection services to non-profit food pantries operating within the City. i)As directed by the City or Contractor, assist in the development of assets and resources needed to reduce Edible food waste at non-profit food pantries operating within the City. These efforts may include, but are not limited to food repurposing kitchens, educational partnerships, food insecurity screening by medical care providers, and joint grant opportunities. j)Provide updated mapping of non-profit pantries serving the food insecure population within the City. k)Provide monthly reports to City such that Contractor will ensure that the City is always in compliance with the Edible Food Recovery education, outreach, and reporting requirements of SB 1383. 62 of 149 DocuSign Envelope ID: 12EOB732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 4.6 Operations 4.6.1 Schedules 4.6.1.1 Collection Days and Hours To preserve peace and quiet, Solid Waste shall only be Collected from Residential areas and Commercial areas adjacent to Residential areas between 7:00 A.M. and 7:00 P.M. Solid Waste shall only be Collected from other Commercial areas between 6:30 A.M. and 8:00 P.M. Collection is only permitted Monday through Saturday for Residential and Monday through Sunday for Commercial. City reserves the right to restrict or change days and hours of Collection by advanced written notice. Contractor may not make exceptions to these Collection days and times without advanced written approval from the City. If the regularly scheduled Collection day falls on New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, or Christmas Day, Collection days for the remainder of that week shall all be postponed one (1) Collection day. 4.6.1.2 Review of Schedules and Routing Contractor shall review its operations plan outlining the Collection routes, intervals of Collection, and Collection times for all materials Collected under this Agreement with City upon thirty (30) days written notice requesting said review. Contractor shall submit a copy of its Commercial and Residential schedule and route map within seven (7) days if requested by City. If the plan is determined to be inadequate by City, Contractor shall revise it incorporating any changes necessary to make it satisfactory to City within thirty (30) days. No change in schedules and routing shall be implemented for fifteen (15) days after Contractor receives approval from City and notifies Customers. 4.6.1.3 Missed Pickups When notified of a missed pickup prior to 12:00 noon, Contractor shall Collect the Refuse, Recyclable Materials, and/or Green Waste that was not Collected the same day. If notified after 12:00 noon, Collection must take place no later than noon of the next calendar day. If a missed pickup is not made up before noon of the next calendar day, City may perform service and Contractor shall be liable for City's expenses plus thirty percent (30%) overhead costs, in addition to any liquidated damages assessed for missed pickups per Section 12.3. In addition to the above, if a missed pickup called in prior to 12:00 noon is not made up on the same day, or if a missed pickup called in after 12:00 noon is not made up before noon of the next calendar day, Contractor shall issue a credit for the missed pickup to Customer upon 63 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement request by City or Customer. If a Customer is missed and its Solid Waste is not Collected until the following week, Contractor shall issue a credit equal to one month of service. 4.6.2 Vehicles a) General. Contractor is responsible for providing all vehicles that may be required for the Collection of Solid Waste that are sufficient in number and capacity to efficiently perform the work required by this Agreement in strict accordance with its terms. Contractor is expressly obligated to provide such Collection Vehicles and routes as are required to meet the service standards set forth in this Agreement. Contractor shall have available on Collection days sufficient back-up vehicles for each type of Collection Vehicle used to respond to complaints and emergencies. b) Specifications. No Collection vehicle used in the City shall be more than ten 10) years old at any time during the Agreement Term. All route vehicles shall be powered by natural gas. Such vehicles must be registered with the California Department of Motor Vehicles and shall have water-tight bodies designed to prevent leakage, spillage, or overflow. Such vehicles shall be equipped to provide live video display to dispatch, two (2) to three (3) angle time-stamped video service records and GPS. At all times during the term of this Agreement,Contractor's Collection vehicles shall comply with South Coast Air Quality Management District Requirements and the California Air Resource Board requirements as they are currently in force and as they may be approved for Refuse removal vehicles, as well as other Federal,State and local laws and regulations that may be enacted during the term of this Agreement. 1. Contractor shall be responsible for ensuring that all vehicles Contractor uses in the performance of this Agreement shall allow the City to be in compliance with South Coast Air Quality Management District, Air Resource Board, and other applicable requirements. c)Vehicle Identification and Labeling. Each Collection vehicle shall be marked with Contractor's name, toll free phone number, and a vehicle identification number designated by Contractor for each Collection Vehicle which shall be prominently displayed on all such Vehicles, in lettering at least six inches (6") in height. City must approve truck labeling, and may place billboards with public notices on vehicles at no additional charge. All equipment of Contractor used to provide the services set forth in this Agreement shall be subject to inspection by City on a semi-annual basis. 64 of 149 DocuSign Envelope ID: 12E0B732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement d) Cleaning and Maintenance: 1. Contractor shall maintain all properties, vehicles, facilities, and equipment used in providing service under this Agreement in a good,safe, neat,clean, and operable condition at all times. 2. Collection Vehicles shall be painted, thoroughly washed, and thoroughly steam cleaned on a regular basis so as to present a clean appearance. City may inspect vehicles at any time to determine compliance with this Agreement. Contractor shall also make all Collection Vehicles available to the County of Orange for inspection regarding health concerns and requirements, at any frequency it requests. Contractor agrees to replace or repair to the City's satisfaction, any Collection Vehicle which City determines to be of unsightly appearance, leaking, or in unsatisfactory operating condition 3. Contractor shall repaint any or all Collection Vehicles within thirty (30) days' notice from City, if City determines that their appearance warrants painting. City may not require a vehicle to be repainted if it has been repainted within the previous thirty-six (36) months. 4. Contractor shall inspect each Collection Vehicle daily to ensure that all equipment is operating properly. Collection Vehicles which are not operating properly shall be removed from service until repaired and operating properly. Contractor shall perform all scheduled maintenance functions upon Collection Vehicles in accordance with the manufacturer's specifications and schedule. Contractor shall keep accurate records of all Collection Vehicle maintenance, recorded according to date and shall make such records available to City upon request. 5. Contractor shall repair, or arrange for the repair of, all of its vehicles and equipment for which repairs are needed because of accident, breakdown or any other cause so as to maintain all equipment in a safe and operable condition. Contractor shall maintain accurate records of repair,which shall include the date, nature of repair and the verification by signature of a maintenance supervisor that the repair has been properly performed. 6. Contractor shall use all available industry best practices to prevent spills of fuel and fluids (such as oil, hydraulic fluid, brake fluid, etc.) on streets. A liquid spill kit shall be carried at all times on each Collection vehicle for this purpose. If such a spill occurs, Contractor shall immediately notify the City 65 of 149 DocuSign Envelope ID: 12E0B732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement including the Director of Public works or his/her designee and the City's NPDES Coordinator) and all proper regulatory authorities of said spill and release of fluids. City shall be notified no later than one (1) hour after the spill. Contractor shall clean, at Contractor's expense, the spilled fluids in coordination with, and to the satisfaction of,City and applicable regulatory agencies. Upon a release of such fluids, the driver shall immediately park the vehicle and it shall remain parked until the leak is repaired. In the event of a spill of fuel and/or fluid, Contractor shall not park the leaking vehicle within two hundred (200) feet of a storm drain and shall utilize absorbent material, sand bags, or other appropriate means to prevent leaking fluids from entering storm drains. Contractor shall notify City upon completion of the cleanup to ensure the satisfaction of the City. All vehicles shall be equipped with a monitoring system of all fluid systems which will immediately alert the driver and operations manager should a fluid leak occur. 7. Upon request, Contractor shall furnish City a written inventory of all equipment, including Collection Vehicles, used in providing service pursuant to this Agreement. This inventory shall list all equipment by manufacturer, year of production, ID number, date of acquisition, type, capacity, and whether the vehicle is a spare. e) Operation.Vehicles shall be operated in compliance with the California Vehicle Code, and all applicable safety and local ordinances. Contractor shall not load vehicles in excess of the manufacturer's recommendations or limitations imposed by State or local weight restrictions on vehicles. Contractor's equipment shall comply with US EPA noise emission regulations, currently codified at 40 CFR Part 205 and other applicable noise control regulations, and such noise control features shall be incorporated throughout the entirety of all Collection Vehicle. Noise levels of equipment used for Collection shall comply with City ordinance and in no event shall the noise level exceed seventy-five (75) dba when measured at a distance of twenty-five (25) feet from the vehicle, five (5) feet from the ground. Contractor shall store all equipment in safe and secure locations in accordance with City's applicable zoning regulations. Contractor shall be responsible for any damage resulting from or directly attributable to any of its operations, and which it causes to: City's driving surfaces, whether or not paved, public or private; associated curbs, gutters and traffic control devices; and all other public and private improvements. If 66 of 149 DocuSign Envelope ID: 12E0B732-9FUt-4tt T-AF91-3Stt3/4UAttst3L City of Orange Integrated Solid Waste Management and Street Sweeping Agreement requested by City, Contractor shall bring any street surfaces that have been damaged back to their original condition, including slurry sealing any surfaces that have been damaged or stained due to spills. f)City Inspection Per Code. City may cause any vehicle used in performance of this Agreement to be inspected and tested at any commercially reasonable time and in such manner as may be appropriate to determine that the vehicle is being maintained in compliance with the provisions of the State Vehicle Code, including, but not limited to, California Vehicle Code Sections 27000(b), 23114, 23115, 42030, 42032, and all Vehicle Code Sections regarding smog equipment requirements. City may direct the removal of any vehicle from service if that vehicle is found to be in nonconformance with applicable codes. No vehicle directed to be removed from service shall be returned to service until it conforms to applicable codes, and its return in service has been approved by City. City or a third party designated by City shall perform quarterly inspections of Contractor's vehicles. If the inspections are satisfactory, the City may decrease the frequency of inspections to semi- annual. Contractor shall reimburse the City for all costs and expenses City incurs for the performance of the tasks outlined in this section (including inspections conducted by City or any third party designated by City). g) Vehicle Inspections. Each year with its Annual Report, Contractor shall submit to City a copy of: 1. Its most recent BASIC Score determined by the Federal Motor Carrier Safety Administration, and, 2. Any terminal inspection reports resulting from the California Highway Patrol's ("CHP's") Basic Inspection of Terminals ("BIT") program. If Contractor receives a terminal rating below satisfactory, Contractor shall notify the City, and Contractor is in violation of the Agreement. Contractor has the time allowed by the CHP to cure violations and bring the terminal rating up to satisfactory. If the CHP does not adjust the rating to satisfactory or better within six (6) months, then the Contractor shall be considered in default of this Agreement and the City may terminate the Agreement. h) Correction of Defects. Following any inspection, the City Manager or designee shall have the right to cause Contractor, at its sole cost and expense, to recondition or replace any vehicle or equipment found to be unsafe, 67 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement unsanitary or unsightly. The City Manager or designee's determination may be appealed to the City Council, whose decision shall be final. 4.6.3 Containers Contractor shall provide Containers to be used under this Agreement. A Container shall be considered properly placed out for Collection if it is feasibly accessible by Contractor's Collection vehicles. If Customer and Contractor cannot agree upon the proper placement of Containers, City shall have the right to make the final determination. 4.6.3.1 Carts a) Cart Design Requirements - Contractor shall provide Customers with Carts at the start of service under this Agreement. Carts and Cart lids must meet color, size, uniformity and quality requirements of the City. The City will not permit Carts and Cart lids with inconsistent colors or in poor condition to be used in the City at any time during the term of this Agreement and may require Contractor to replace such Carts. 1. All Carts provided by Contractor utilized in the performance of this Agreement shall be manufactured by injection or rotational molding and meet the Cart design and performance requirements as specified below. All Carts selected shall be subject to City's approval. b) Capacity - The references in Section 4.4 to Cart sizes of 96, 64 and 35-gallons may be approximate. The Cart size, excluding lid capacity, may fall within the following range: 1. 30 - 35 gallons 2. 60 - 70 gallons 3. 90 - 101 gallons The selected sizes must be consistent throughout the City for a uniform appearance. c)Cart Age, Color, and Appearance - All Carts shall be the same, uniform color and each Cart type shall carry a different color lid. Cart bodies shall have Toter's "granite" look. 68 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1. The colors shall be colorfast and resistant to fading as a result of weathering or ultraviolet degradation. Color must be approved in advance by the City. Cart and Cart lid colors shall be consistent throughout the City. d) Cart Labeling and Hot Stamping - Labels used on Carts shall be placed on the inside of the Cart lid, and hot stamps shall be on the top of the lid and/or on the body of the Cart. Design for both the labels and the hot stamps must be approved by City prior to ordering labels or Carts. City shall approve what information is included on the label and in the hot stamp, as well as approve design and quality. Labels shall be replaced when worn, and when information on the label is in need of updating. Cart labels and hot stamps shall include bilingual (English and Spanish) and graphic instruction on what materials should and should not be placed in each Cart Information on the Carts shall include the telephone number to call for Contractor, Bulky Item pickups, and HHW disposal information. 4.6.3.2 Cart Maintenance and Replacement Responsibilities Contractor shall be responsible for Cart repair and maintenance, and replacing lost, stolen, or damaged Carts within two (2) business days, and for graffiti removal within one (1) day, at no additional charge to the Customer or to City, unless Contractor can demonstrate to the City Manager or designee beyond a reasonable doubt that the damage or loss was due exclusively the Customer's intentional or negligent behavior. City Manager or designee shall make the final determination. If City permits a repair or replacement charge to be assessed against a Customer, charge shall be no more than the actual cost of repair or the Contractor's purchase price for a new Cart, whichever is lower. All repairs must restore the Cart to its full functionality. Unsightly/worn-out Carts shall be replaced by Contractor upon Customer request. 4.6.3.3 Cart Colors—SB 1383 Contractor shall be responsible to furnish Carts with colors, lids, and/or labels that comply with the requirements of SB 1383. Contractor shall place and maintain SB 1383-compliant labels on all Carts starting March 1, 2024. Contractor shall furnish and replace Carts such that all Carts are color-compliant with SB 1383 no later than January 1, 2036. 4.6.3.4 Bins a) Cleaning. Contractor shall provide Customers with Bins required during the term of this Agreement The size of Contractor-provided Bins shall be determined by mutual agreement of Customer and Contractor and shall be 69 of 149 DocuSign Envelope ID: 12E0B732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement subject to City approval. Contractor shall maintain Bins in a clean, sound condition free from putrescible residue. All Bins in use shall be constructed of heavy metal, or other suitable, durable material, and shall be watertight and well painted. Wheels, forklift slots, and other apparatuses, which were designed for movement, loading, or unloading of the Bin shall be maintained in good repair. Upon Customer or City request, or if required to maintain the Containers in a clean condition, Contractor shall clean all Bins once per year at no additional charge. Contractor shall perform cleaning or replacement of Bins more frequently, if necessary, to prevent a nuisance caused by odors or vector harborage, or if requested by Customer or City, for an additional fee in accordance with the approved rate schedule. When a Bin is removed for cleaning, Contractor shall replace the Bin, either temporarily or as a change- out, with another Container. Contractor shall remove graffiti from any Container within one (1) business day of request by City or Customer. Contractor shall proactively look for graffiti when Collecting Bins, with all graffiti removed from Containers in no later than one (1) business day after any Collection without notification. b) Bin Identification and Color - Each Bin placed in City by Contractor shall have the name of Contractor and phone number in letters not less than three (3) inches high on the exterior of the Bin so as to be visible when the Bin is placed for use. Bins shall be labeled to include bilingual (English and Spanish) and graphic instruction on what materials should and should not be placed in each Bin. Contractor shall repaint Bins upon City's request if the City deems it necessary to maintain a neat appearance. 4.6.3.5 Bin Colors—SB 1383 Contractor shall be responsible to furnish Bins with colors, lids, and/or labels that comply with the requirements of SB 1383. Contractor shall place and maintain SB 1383-compliant labels on all Bins starting March 1, 2024. Contractor shall furnish and replace Bins such that all Bins are color-compliant with SB 1383 by January 1, 2036. 4.6.3.6 Roll-off Boxes Contractor shall provide sufficient Roll-off Boxes to meet Customer demand throughout the Term of the Agreement, and shall keep all Roll-off Boxes clean, free from graffiti, equipped with reflectors, and with the name and phone number of Contractor in letters not less than three (3) inches high on the exterior of the Roll-off Box so as to be visible when the Roll-off 70 of 149 DocuSign Envelope ID:12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement Box is placed for use. Contractor shall properly cover all open Roll-off Boxes during transport as required by the State Vehicle Code. 4.6.4 Litter Abatement a)Minimization of Spills - Contractor shall use due care to prevent Solid Waste or fluids from leaking, being spilled, and/or scattered during the Collection or transportation process. If any Solid Waste or fluids leak or spill during Collection, Contractor shall promptly clean up all such materials. Each Collection Vehicle shall carry a broom, shovel, absorbent, and containment materials at all times for this purpose. Contractor shall not transfer loads from one vehicle to another on any public Street, unless it is necessary to do so because of mechanical failure, accidental damage to a vehicle, or a pre-approved method of Solid Waste transfer between vehicles, without prior written approval by City. b) Clean Up - During the Collection or transportation process, Contractor shall clean up all litter spilled during Collection or otherwise caused by Contractor. Contractor shall leave a "red tag" notice for Customer if litter not caused by Contractor is found in Container enclosure or around Containers. Contractor may charge Customers in accordance with the approved rate schedule for the cleaning of Container enclosures or around the Container if it is littered due to overflowing Containers. Contractor may address habitual offenders in accordance with Section 4.2.3. In the event of a spill of materials(vehicle fluids, Organic Waste leachate,etc.), Contractor shall provide a clean up of the spill to the satisfaction of City and other governing agencies. Clean up methods may include pressure washing Contractor must capture and reclaim water) or other similar clean-up methods. c)Covering of Loads - Contractor shall properly cover all open debris boxes during transport to the Disposal Site. 4.6.5 Personnel a) Qualified Drivers. Contractor shall furnish such qualified drivers, mechanical, supervisory, clerical, management, and other personnel as may be necessary to provide the services required by this Agreement in a satisfactory, safe, economical, and efficient manner. All drivers shall be trained and qualified in 71 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement the operation of vehicles they operate and must possess a valid license, of the appropriate class, issued by the California Department of Motor Vehicles. b) Hazardous Waste Employee Training. Contractor shall establish and vigorously enforce an educational program which will train Contractor's employees in the identification of Hazardous Waste. Contractor's employees shall not knowingly place such Hazardous Waste in the Collection Vehicles, nor knowingly dispose of such Hazardous Waste at the processing Facility or Disposal Site. c)Customer Courtesy. Contractor shall train its employees in Customer courtesy, shall prohibit the use of loud or profane language, and shall instruct Collection crews to perform the work quietly. Contractor shall use its best efforts to assure that all employees present a neat appearance and conduct themselves in a courteous manner. If any employee is found to be discourteous or not to be performing services in the manner required by this Agreement, Contractor shall take all necessary corrective measures including, but not limited to, transfer, discipline, or termination. If City has notified Contractor of a complaint related to discourteous or improper behavior, Contractor will consider reassigning the employee to duties not entailing contact with the public while Contractor is pursuing its investigation and corrective action process. d) Unauthorized Material Removal. Contractor shall dismiss or discipline employees who remove documents or any other material from Containers, other than specifically for the purposes of Disposal and Diversion as described in this Agreement. e) Training. Contractor shall provide suitable operations, health and safety training for all of its employees who use or operate equipment or who are otherwise directly involved in Collection or other related operations. f)Compliance with Laws. Contractor shall be knowledgeable of and comply with all local, State and Federal laws which may apply to the performance of this Agreement. Consultant warrants and represents that all of its employees, including any and all prospective employees hired to perform services for the City under this Agreement and the employees of any subcontractor retained by the Consultant to perform a portion of the services under this Agreement, are and will be authorized to perform the services contemplated by this Agreement in full compliance with all applicable State and Federal laws, rules, and regulations. 72 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 4.6.6 Identification Required Contractor shall provide its employees, companies, and subcontractors with identification for all individuals who may make personal contact with residents or businesses in City. City may require Contractor to notify Customers yearly of the form of said identification. Contractor shall provide a list of current employees, companies, and subcontractors to City upon request. City reserves the right to perform a security and identification check through the City's Police Department on the Contractor and all their present and future employees employed by Contractor to work in the City, in accordance with accepted procedures established by City, or for probable cause. 4.6.7 Fees and Gratuities Contractor shall not, nor shall it permit any agent, employee, or subcontractors employed by it to request, solicit, demand, or accept, either directly or indirectly, any compensation or gratuity for services authorized to be performed under this Agreement. 4.6.8 Non-Discrimination Contractor shall not discriminate in the provision of service or the employment of Persons engaged in performance of this Agreement on account of race, color, religion, sex, age, physical handicap, medical condition, or any other grounds in violation of any applicable Federal, State, or local law. Contractor shall, in all solicitations and advertisements for employees placed by, or on behalf of Contractor, state that all qualified applicants will receive consideration for employment without regard for race, color, religion, sex, national origin, mental or physical disability, or any other prohibited reason. Contractor shall cause the above paragraphs to be inserted in all subcontracts for any work covered by this Agreement, provided that the foregoing provisions shall not apply to subcontracts for standard commercial supplies or raw materials. 4.6.9 Routing and Coordination with Street Sweeping Services Contractor shall coordinate Solid Waste Collection and Street Sweeping routes such that smooth traffic flow on City streets is maximized. In the event that a circumstance arises in which a conflict between Solid Waste Collection and Street Sweeping routes negatively 73 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement impacts the smooth flow of traffic on City streets, Contractor shall promptly develop and submit to the City a plan to resolve the issue. Whether or not a circumstance negatively impacts the smooth flow of traffic on City streets shall be determined solely by City. City shall have the sole discretion to approve, modify, or replace Contractor's plan to resolve the issue. Contractor shall promptly implement the planned resolution at City's direction. Upon request by City, Contractor shall provide the City with maps of Contractor's Solid Waste Collection and Street Sweeping routes in a format acceptable to the City. Contractor shall submit to the City, in a format acceptable to City, maps of any proposed route changes at least sixty (60) calendar days prior to the proposed date of implementation. Contractor shall not implement any route changes without the prior review and approval of the City. Contractor shall provide Customers with at least thirty (30) days advance notice of any changes in their Collection day. 4.6.10 Report of Accumulation of Solid Waste; Unauthorized Dumping Contractor shall direct its drivers to note (1) the addresses of any Premises at which they observe that Solid Waste is accumulating and is not being delivered for Collection; and (2)the address, or other location description, at which Solid Waste has been dumped in an apparently unauthorized manner. Contractor shall deliver the address or description to City within one (1) working day of such observation. 4.7 Transportation of Solid Waste Contractor shall transport all Refuse Collected to a City-approved Facility (e.g. Transfer Station, Waste-to-Energy Facility, Organic Waste Processing Facility, MRF, Disposal Site). Contractor agrees to make all reasonable efforts to separate Recyclable Materials from Refuse for Diversion from landfill Disposal. Contractor shall maintain accurate records of the quantities of Solid Waste transported to all Facilities utilized and shall cooperate with City in any audits or investigations of such quantities. Contractor shall cooperate with the operator of any Facility it uses with regard to the operator's operations, including, for example, complying with directions from the operator to unload Collection vehicles in designated areas, accommodating maintenance operations and construction of new facilities, cooperating with its Hazardous Waste exclusion program, and so forth. 74 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 4.8 Approved Facilities The Contractor shall dispose of Refuse Collected that is not required to be processed, at a Disposal Site approved by City. Contractor must receive written advance approval from City to use each Transfer Station,Transformation Facility, processing Facility,or other Facility used by Contractor in the fulfillment of this Agreement. Contractor is responsible for ensuring that each Facility it uses is properly permitted prior to requesting City approval to use such Facility. Unless and until the City instructs otherwise,the designated Disposal Site and other Facilities are: The Orange County Landfill System, CR Transfer, CR&R Recycling, South Orange County MRF and Transfer Station, Perris Regional Organics Anaerobic Digestion Facility, Orange Organics Facility, Inland Empire Regional Composting Facility, CR&R's Rancho Mission Viejo CDI/Green Waste Recovery Facility, South Yuma County Landfill/Compost Facility. 4.9 Status of Disposal Site Any Disposal Site utilized by Contractor,shall be designed and constructed in accordance with 23 CCR Section 2510 et seq. ("Chapter 15"). Any such landfill shall have all permits from Federal, State, regional, county and City agencies necessary for it to operate as a Class III Sanitary Landfill and shall be in full regulatory compliance with all such permits. 4.10 Dedicated Routes Solid Waste Collected in the City may not be commingled in Collection vehicles with Solid Waste from other jurisdictions. All routes shall be dedicated exclusively to City of Orange Solid Waste. 4.11 Route Audit Once during the first year, and every three (3) years thereafter or at City request (but not more than once per year), Contractor shall conduct an audit of its Collection routes in the City. City may use information from the audit to develop a request for proposals for a new service provider. City may instruct Contractor when to conduct the audit in order for the results to be available for use in preparation of a request for proposals or for other City uses. City may also instruct Contractor to conduct an audit at a time that would produce the most accurate Customer service information for a new service provider to use in establishing service with Customers. In setting these audit dates, City will establish due dates for Contractor providing routing and account information, and later, the report, to City. The route audit, at minimum, shall consist of an independent physical observation by person(s) other than the route driver of each Customer in City. This person(s) is to be 75 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement approved in advance by City. The route audit information shall include, at a minimum, the following information for each account: a)For Residential Customers: 1) Route Number; 2) Truck Number; 3) Number and size of Carts by waste stream (Refuse, Recycling, Organic Waste); 4) Service Address; and, 5) Cart condition. b) For Commercial Customers: 1) Route Number; 2) Truck Number; 3) Account Name; 4) Account Number; 5) Account Service Address; 6) Account Type (Residential, Commercial, Roll-off); 7) Service Level per Contractor Billing system (Quantity, Size, Frequency); 8) Observed Containers (Quantity and Size); 9) Container condition; 10) Proper signage; and, 11) Graffiti. 76 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement Within thirty(30)days after the completion of the route audit, Contractor shall submit to City a report summarizing the results of the audit.This summary shall include: a)Identification of the routes; b) Route map; c) Truck numbers; d) Number of accounts, by route and in total (Residential, Commercial, and Roll- off); e) Confirmation that all routes are dedicated exclusively to City Customers; f)Number and type of exceptions observed; g) Total monthly service charge (Residential, Commercial, and Roll-off Box), pre- audit; and, h) Total monthly service charge (Residential, Commercial, and Roll-off), post- audit (subsequent to corrections of identified exceptions). The report shall include a description of the procedures followed to complete the route audit. This description shall include the names and titles of those supervising the route audits and the name and titles of those performing the observations. The report shall also include a description of the changes and Contractor's plans to resolve the exceptions. The results of the audit, and supporting back-up data, shall be available for review by City or its representative and shall be made available in an electronic format. 4.12 Service Exceptions; Hazardous Waste Notifications a) Failure to Collect. When Solid Waste is not Collected from any Solid Waste service recipient, Contractor shall notify its service recipient in writing, at the time Collection is not made, through the use of a "red tag" or otherwise, of the reasons why the Collection was not made b) Hazardous Waste Inspection and Reporting. Contractor reserves the right to inspect Solid Waste put out for Collection and to reject Solid Waste observed to be contaminated with Hazardous Waste and the right not to Collect Hazardous Waste put out with Solid Waste. Contractor shall notify all agencies 77 of 149 DocuSign Envelope ID: 12E08732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement with jurisdiction, if appropriate, including the California Department of Toxic Substances Control and Local Emergency Response Providers and the National Response Center of reportable quantities of Hazardous Waste, found or observed in Solid Waste anywhere within City. In addition to other required notifications, if Contractor observes any substances which it or its employees reasonably believe or suspect to contain Hazardous Waste unlawfully disposed of or released on any City property, including storm drains, streets or other public rights of way, Contractor shall immediately notify City Manager or designee. Contractor shall implement and maintain a training program that will assist its employees in identifying and properly disposing of any Hazardous Waste that may come into their possession. c)Hazardous Waste Diversion Records. Contractor shall maintain records showing the types and quantities, if any, of Hazardous Waste found in Solid Waste and which was inadvertently Collected from service recipients within City but diverted from landfilling. 78 of 149 DocuSign Envelope ID: 12E08732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 5. DIRECT SERVICES—STREET SWEEPING 5.1 General — Standards of Work and Contractor Responsibilities The Contractor shall furnish all material, labor, equipment, and supervision to perform the maintenance as described in this Agreement including, but not limited to, the following: 1. Using the designated equipment, thoroughly sweep each improved Street, alley way, public Parking Lot, and designated City Facility yard (Water Yard and Corporation Yard) in the City on a frequency as specified in this scope of work and dispose of collected debris in a legal manner. Work, equipment, and operating methods shall be in compliance with all applicable Air Quality Management District (AQMD) and National Pollutant Discharge Elimination System (NPDES) regulations and requirements. See Appendix A for Street Sweeping route maps, routes, locations, and frequencies: Appendix Al — Designated Routes Appendix A2 — Arterial --Commercial/Industrial Appendix A3 — Corporation Yard and Water Yard Appendix A4 — City Parking Lots Appendix A5 — Alley Ways Appendix A6 — Class II Bike Lanes 2. The Contractor shall perform the work described in this Agreement in a thorough and professional manner so that the residents and businesses within the City are provided with courteous, reliable, and high-quality Street Sweeping services at all times. Sweeping speed shall not exceed ten (10) miles per hour. If, at any time, the City determines that sweeping speed has exceeded ten (10) miles per hour, the City may require the Contractor to Re-sweep any part of, or the entire sweeping route in question at no additional cost to the City. 3. The Contractor's Street Sweeper shall leave designated areas free of all dirt, litter, debris, and visual dust within the control of a fully operational machine. Due to various Street widths and configurations throughout the City, Street Sweeping may require slower Travel Speed and/or multiple passes by the sweeper in many cases, to ensure curb-to-curb coverage of the Street. Streets with raised medians (Commercial and Residential) shall have the curb-gutter perimeters of each raised median swept, including turnouts. Street-grade striped medians shall be swept in their entirety. All deposits within intersections shall be removed as part of the sweeping operations, resulting in minimal debris residual or tailings left on the swept surface following the 79 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement completion of a pass(es) of the Street Sweeping machine. No sweeper shall blow debris onto private property. All dust suppression systems shall be as mandated by AQMD. 4. Due to various Street configurations and densities of the urban forest throughout the City, when necessary for proper cleaning, the Contractor shall make more than one pass on a Street, without additional compensation. S. The Contractor shall immediately respond when notified by the City to Re-sweep unsatisfactory areas at no additional charge. In areas with offset angles, extruded curbs, parking blocks or any areas where Street Sweeping equipment has difficulty in maneuvering, the Contractor shall use whatever legal means necessary to maintain the cleanliness of these areas. These areas are subject to all the terms and conditions listed in this Agreement. Sweeping of alley ways shall include two passes to ensure complete coverage of the alley. 6. Upon City approval, Contractor may use the City's Corporation Yard (637 W. Struck Ave.)to store its Street Sweepers. City's approval may be withdrawn at any time with reasonable notice to Contractor. Prior to the use of the City facility, an access agreement between the Contractor and the City will be required. 7. Debris shall be disposed of in a legal manner per all applicable regulations. The Contractor shall obtain all permits and/or make all notifications to the County of Orange, or other local enforcement agencies, as necessary for debris handling transfer, hauling, etc.). 8. The Contractor shall furnish copies of valid commercial driver licenses for all operators assigned to City, whether permanently or temporarily assigned to City. 9. The Contractor shall assign to the City, at all times, the necessary amount of fully operational Street Sweeping vehicles and qualified operators to perform the Scope of Work as outlined in this Agreement unless written approval from the City has been obtained. Contractor shall have on-call reserve sweeping vehicle(s) and operator(s) in case of equipment failure or personnel illness/absents. 10. The Contractor's equipment operators shall maintain a log, listing the locations of roadways that cannot be adequately swept because of obstructions such as low hanging limbs or vehicles parked on City streets. The Contractor shall report these locations, by address, to the City within forty-eight (48) hours. 80 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 11. The Contractor's equipment operators shall maintain a log and report to the City, items such as tree limbs or other obstructions blocking the normal path of the sweeper. Operators shall also report items such as graffiti, significant roadway potholes, damaged curb and gutter, areas of the sidewalk with significant lifting, and other similar liability items. The Contractor shall report these items to the City daily Monday-Friday) and submit the written log(s) weekly. The City shall provide the Contractor's operators with annual training to help with identifying these types of items. 12. The Contractor shall, during the Term of this Agreement, respond to all non- emergency callbacks to the satisfaction of the City, within twenty-four (24) hours of notification. Failure to comply with this requirement will result in a reduction in compensation to the Contractor as determined appropriate by the City. Notifications of deficiencies, poor workmanship, or missed sweeping received from Customers within forty-eight (48) hours of the original designated sweeping time shall be responded to by the Contractor at no additional charge to the City. The City will notify the Contractor of such instances. 13. The regularly scheduled Street Sweeping times shall be adhered to by the Contractor unless deviation from the approved schedule is authorized by the City. A significant number of City streets are posted no parking for Street Sweeping or have alternate side postings during designated hours on various days of the week. The Contractor shall coordinate sweeping operations with Parking Control Officers from the City of Orange Police Department. 14. In the event that Inclement Weather precludes adhering to the regular sweeping schedule, the affected areas may be omitted from the schedule for that cycle only, as directed by the City. During Inclement Weather, a two-hour standby period, prior to the designated start time, shall be observed before a scheduled Residential or Commercial sweep will be canceled. All cancellations will be at the discretion of the City. 15. The City shall have the right to establish holiday schedules. When a City holiday occurs on a regularly scheduled sweeping day, said sweeping area shall not be swept. No makeup for the sweeping area is required unless directed by the City. 16. Contractor shall notify the City should the Contractor have an emergency, and the City shall determine whether the Contractor is released from completing a daily route based on the nature of the emergency. The City has the authority to interrupt scheduled service should the City have an emergency. 81 of 149 DocuSign Envelope ID: 12EOB732-9FGE-4ttr-AF91-35t6(4UAttsuz City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 17. The Contractor shall legally dispose of all debris collected under the performance of this Agreement by hauling it to a Disposal site subject to the approval of the City. 18. The Contractor shall make all necessary arrangements through the City's Water Division, (714) 288-2475, to obtain water meters and shall pay for water necessary to the Contractor's operations. Water costs are the responsibility of the Contractor and shall be included in the Bid Item costs for associated work. No additional compensation for water will be allowed. 19. In the event that Contractor is found to have obtained water for its sweepers from the City's Water Division without using a water meter, Contractor shall pay to City a liquidated damage pursuant to Section 12.3 equal to five hundred dollars ($500.00) per instance for each instance Contractor obtained water without using a water meter. 20. When notified of an area or street was not swept, Contractor shall issue a proportionate credit to the customer upon request by the City or the Customer. 5.2 Street Sweeping Areas The service areas, hours of operation, and estimated frequencies of service under the provisions of this Agreement are detailed in Appendix A. The Contractor acknowledges personal inspection of the sites and the surrounding areas and has evaluated the extent to which the physical condition thereof will affect the services to be provided.The Contractor accepts the premises in their present physical condition, and agrees to make no demands upon the City for any improvements or alterations to those premises. Some sweeping routes may be adjacent to public or private schools. The Contractor shall coordinate these sweeping routes to ensure no conflicts are created. Sweeping adjacent to schools shall be completed no less than thirty (30) minutes prior to the start time of school or commenced thirty (30) minutes after the start time. 5.3 Inspection Rating System The City shall prepare and implement an Inspection Rating System to be used to periodically evaluate Street Sweeping performance, and potentially assess liquidated damages for substandard Street Sweeping performance (see sample rating system in Appendix B). This form and system may be modified at the discretion of the City. Contractor agrees to be so evaluated by this system and bound by the ratings and/or resulting liquidated damages indicated in the monthly Inspection Rating System report. The Inspection Rating System will 82 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement be conducted periodically at the sole discretion of City. If Contractor receives a rating of ninety(90) or lower pursuant to the scoring system shown in Appendix B, Contractor shall be subject to liquidated damages pursuant to Section 12.3 5. 5.4 Inspections, Meetings, and Documentation The City reserves the right to perform inspections, including inspection of Contractor's equipment, at any time for the purpose of verifying the Contractor's performance under this Agreement, and identifying any deficiencies. City or a third party designated by City shall perform quarterly inspections of Contractor's vehicles. If the inspections are satisfactory, the City may decrease the frequency of inspections to bi-annually. The Contractor or its authorized representative shall meet with the City representative on each site at the discretion and convenience of the City, for walk-through inspections. All routine maintenance functions shall be completed prior to this meeting. At the request of the City, the Contractor, or its representative, shall attend meetings and/or training sessions, as determined by the City,for purposes of orientation, information sharing, Agreement revision, description of the City policies, procedures, standards, and the like. The Contractor shall provide to the City such written documentation and/or regular reports as the City deems necessary to verify and review Contractor's performance under this Agreement and to provide to the City pertinent information relative to the maintenance, operation, and safety of the sites. Contractor shall reimburse the City for all costs and expenses City incurs for the performance of the tasks outlined in this section (including inspections conducted by City or any third party designated by City). 5.5 Special Sweeps The Contractor shall, during the Term of this Agreement, respond to requests for Special Sweeps required during emergencies, twenty-four (24) hours per day, seven (7) days per week, by dispatching required sweeping equipment to the site,within one (1) hour of contact by the City. The Contractor shall maintain an accurate emergency contact list throughout the Term of this Agreement and provide that list to the City annually.There shall be no minimum compensation for emergency Special Sweeps. City shall compensate Contractor for emergency Special Sweeps pursuant to the hourly rates shown in Exhibit D. In addition to the daily Street Sweeping services required in this Agreement, the City may request additional non-emergency Special Sweeps.The City shall request Special Sweeps with at least a forty-eight (48) hour notice. The Contractor shall be compensated for Special Sweeps at the established rate in. There shall be no minimum compensation for non- 83 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement emergency Special Sweeps. City shall compensate Contractor for non-emergency Special Sweeps pursuant to the hourly rates shown in Exhibit D. 5.6 Customer Service—Street Sweeping The Contractor shall maintain a customer service program. Said program shall be operational, at a minimum, from 8:00 A.M. to 5:00 P.M., Monday through Friday, exclusive of holidays Office Hours"). A responsible and qualified bilingual (English and Spanish speaking) representative of the Contractor shall be available during Office Hours for personal communication with the public. The Contractor's telephone system shall be adequate to handle the volume of calls typically experienced on the busiest days. If City receives more than five (5) complaints in thirty (30) days that Customers are unable to contact the Contractor by phone, City may require Contractor to increase capacity. Contractor shall have a representative, a message machine, or an answering service available outside of Office Hours. Calls received outside of Office Hours shall be responded to on the next business day. Contractor shall provide City with a twenty-four (24) hour emergency number to a live person, not voice-mail. Contractor shall also provide an online platform to accept customer requests and complaints. Customers shall be able to submit requests through an online portal and receive automated status updates of their service requests. Requests shall be able to be received on the online platform 24 hours a day. Contractor shall have online platform operational by October 1, 2024. Service complaints received by the City shall be directed to the Contractor. The Contractor shall keep daily logs of complaints forwarded to it for a minimum of three (3) years. In addition to forwarded complaints, Contractor shall log all other complaints received and said log shall include the date and time the complaint was received, the name, address and telephone number of the Customer, a description of the complaint, the name of the employee recording the complaint, and the action taken by the Contractor to respond to and remedy the complaint. All written Customer complaints and inquiries shall be date-stamped when received. All complaints shall be initially responded to within one (1) business day of receipt. Contractor shall resolve complaints within two (2) business days. Contractor shall log action taken by Contractor to respond to and remedy the complaint. All Customer service records and logs kept by the Contractor shall be available to the City upon request. The City shall, at any time during regular Office Hours, have access to the 84 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE88Z City of Orange Integrated Solid Waste Management and Street Sweeping Agreement Contractor's Customer service department for purposes that may include monitoring the quality of Customer service or researching Customer complaints. Disputes between the Contractor and Customer regarding the services provided in accordance with this Agreement may be resolved by the City.The City's decision shall be final and binding. Intervention by the City is not a condition precedent to any rights or remedies third parties might otherwise have in any dispute with the Contractor. Nothing in this section is intended to affect the remedies of third parties against the Contractor. 5.7 Communication and Emergency Response The Contractor shall, during the Term of this Agreement, maintain a twenty-four (24) hour emergency telephone number with a 714 area code. This number is for the City to contact the Contractor. For hours beyond a normal 8:00 A.M.to 5:00 P.M. business day,an answering service shall be considered an acceptable substitute. Answering machines are not acceptable. All requests for emergency services shall require equipment and operator to be dispatched to the required location as soon as possible after notification; but in all cases within one (1) hour, to the satisfaction of the City. If any emergency service request is not responded to in one (1) hour,the City shall be notified immediately of the reason for not meeting the required response time followed by a written report to the City within two (2) working days. Whenever immediate action is required to prevent possible injury, death, or property damage (including Sanitary Sewer Overflows), City may, after reasonable attempt to notify the Contractor, cause such action to be taken by alternate work forces and as determined by the City, charge the cost thereof to the Contractor, or deduct such cost from any amount due to the Contractor. This deduction shall include a markup for administrative costs equal to fifteen percent (15%) of the actual costs incurred. Contractor's supervisors shall carry mobile telephones with a 714 area code. Supervisors shall respond to any call from the City within thirty (30) minutes at any time. 5.8 Safety—Street Sweeping The Contractor agrees to perform all work outlined in this Agreement in such a manner as to meet all accepted standards for safe practices during the performance of its duties and to safely maintain stored equipment, machines, and materials or other hazards consequential or related to the work; and agrees additionally to accept the sole responsibility for complying 85 of 149 DocuSign Envelope ID: 12E06732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement with all City, county, State or Federal requirements at all times so as to protect all persons, including Contractor's employees, agents of the City, vendors, members of the public, or others from foreseeable injury, or damage to their property. Contractor shall make weekly inspections for any potential hazards at said sites and keep a log indicating date inspected and action taken. The Contractor shall notify the City immediately of any occurrence of accident, injury, or persons requiring emergency services and, if so requested, shall prepare a written report of the incident to the City within three(3)calendar days following the occurrence, unless a lesser time period is required by law. Contractor shall cooperate fully with the City in the investigation of any such occurrence. 5.9 Street Sweeping Services The acceptable daily hours of sweeping services shall be in accordance with Appendix A or as designated by the existing Street Sweeping signs throughout the City, which shall be considered normal work hours as may pertain to any other provision of this Agreement. The Contractor shall be sweeping the route within thirty (30) minutes of the time posted on the Street Sweeping "no parking" signs or time designated in Appendix A. The Contractor shall provide staffing to perform the required sweeping services during the prescribed hours as specified in these Agreement documents. Any changes in the days and hours of operation heretofore prescribed shall be subject to approval by the City. 5.10 Sweeping Schedules The Contractor shall, within thirty (30) days after the execution of this Agreement, submit current Street Sweeping schedules to the City for review and approval. Said schedules shall identify required Street Sweeping operations and delineate the time frames for performance. A routine Street Sweeping operations schedule shall include all tasks required at the intervals required. The Contractor shall submit revised schedules when actual performance differs substantially from planned performance, and from time to time as requested by the City. Said revisions shall be submitted to the City for review and approval, within five (5) working days prior to the original or revised scheduled time for the work, whichever is earlier. 86 of 149 Docusign Envelope ID: 12EOB732-9FCE-4EE7-A1-91-38E874UAE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 5.11 Training—Street Sweeper Operators The Contractor shall provide sufficient personnel to perform all work in accordance with the specifications set forth in this Agreement. In cooperation with the Orange Police Department, the Contractor agrees to conduct, and to pay for, background checks if required by the City on all personnel providing sweeping services for this Agreement. In the event such background check reveals an item, which Orange Police deems a security problem, City may request that such individual be removed from the list of personnel authorized to provide services to the City. The Contractor's personnel shall possess the minimum qualifications for the position in which each is working. The Contractor shall have a local representative with authority to contractually bind the Contractor in matters which may arise during the Term of this Agreement. The Contractor shall provide, prior to commencement of work under this Agreement, in writing to the City, a statement indicating by name the specific authority vested in the local representative. The Contractor's local representative shall be responsible for instructing and training of the Contractor's personnel in the proper and specified work method and procedures; directing, scheduling, and coordinating all sweeping services and functions to completely accomplish the work as required by this Agreement. The local representative shall be available for consultation regarding problems on a daily basis at some time during regular working hours 6:00 A.M. to 4:00 P.M., Monday through Friday). Each crew of the Contractor's employees shall include at least one individual who speaks English proficiently. For the purposes of this section, a crew is understood to be any individual worker or group of workers who might service any site without other Contractor's supervisory personnel present. The City may at any time give the Contractor written notice to the effect that the conduct or action of a designated employee of the Contractor is, in the reasonable belief of the City, detrimental to the interest of the public patronizing City premises. The Contractor shall meet with representatives of the City to consider the appropriate course of action with respect to such matter and the Contractor shall take reasonable measures under the circumstances to assure the City that the conduct and activities of the Contractor's employees will not be detrimental to the interest of the public patronizing City premises. The City may at any time order any of the Contractor's personnel removed from City premises when, in the reasonable belief of the City, said Contractor's personnel is objectionable, unruly, unsafe, or otherwise detrimental to the interest of the City or the public patronizing City premises. 87 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement The Contractor shall require each of its personnel to adhere to basic public works standards of working attire including uniform shirts and/or vests clearly marked with the Contractor's company name and employee name badges as approved by the City. Sufficient changes shall be provided to present a neat and clean appearance of the Contractor's personnel at all times. Shirts shall be worn and buttoned at all times. The Contractor's personnel shall be equipped with proper shoes and other gear required by State safety regulations. Brightly colored traffic vests or reflectors, meeting Caltrans' standards, shall be worn when personnel are working near vehicular traffic. 5.12 Noise—Street Sweeping The Contractor shall not interfere with the public use of City premises and shall conduct its operations as to offer the least possible obstruction and inconvenience to the public or disruption to the peace and quiet of the area within which the services are performed. In the event that the Contractor's operations must be performed when persons of the public are present, Contractor shall courteously inform said persons of any operations that might affect them and, if appropriate, request persons to move out of the work area. Contractor shall be subject to local ordinances regarding noise levels with regard to equipment operations. Contractor shall not use any power equipment except as allowed under local ordinances. The Contractor is hereby notified that specific hours of service are required. Further, any schedule of such operations may be modified by the City to ensure that the public is not unduly impacted by the noise created by such equipment. The Contractor is responsible to know and follow all noise related requirements listed in the Orange Municipal Code. 5.13 Street Sweeping Equipment The quality and quantity of the equipment used by the Contractor for the sweeping of streets shall be sufficient to perform the work required in this Agreement. A minimum of five (5) primary sweepers and two (2) back-up sweepers shall be provided. Three (3) primary sweepers shall be broom type and two (2) primary sweepers shall be vacuum type or regenerative air vacuum type. One (1) back-up sweeper shall be broom type and one (1) backup sweeper shall be vacuum type or regenerative air vacuum type. The City reserves the right to adjust the type of sweepers, with regard to mechanical or vacuum operations, based upon actual performance and cleanliness of the streets being swept. Any allowable change in the equipment type shall be accompanied by a change in cost, subject to negotiation and final approval by the City. 88 of 149 Docusign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E874UAE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement At no time shall any primary sweeper exceed nine(9)years old or any backup sweeper exceed ten (10) years old. All sweepers shall meet regulatory standards applicable in the year of operation. All sweepers shall be subject to a visual inspection by the City at any time during the Agreement Term or subsequent extensions. Upon completion of such inspection,the City may direct the Contractor to refurbish the exterior of the sweeper to include metal fabrication and painting. The intent is to ensure sweepers used by the Contractor are not rusty, degraded,or visually unpleasant.Sweepers not passing the visual inspection by the City shall be replaced with acceptable sweepers at no cost to the City. The need to repair or replace a sweeper is at the sole discretion of the City. Upon request, Contractor shall provide to City the manufacturer's specifications for equipment used in the City. All equipment shall be equipped in accordance with State law.The flashing beacon light shall be visible for a minimum of one mile, flash 60-90 times per minute, mounted for 360 degree visibility, and equipped with an amber lens. An arrow board, approved by the City, shall be mounted on the back of all equipment. All sweeping equipment provided by the Contractor shall comply with PM 10, AQMD Rule 1186, and Rule 1186.1 air quality requirements; specifically, sweepers must be powered by alternative-fuels (e.g. CNG, RNG, propane, LNG). Each sweeper shall be equipped with a portable blower. The Contractor shall utilize the portable blower to move debris to a location where it can be removed by the sweeper unit any time obstructions, temporary or permanent, limit the sweeper unit's access to areas included in sweeping services. Blowers shall not be used directly adjacent to parked vehicles. Any Street Sweeping vehicle fluid leak shall be cleaned immediately using all appropriate cleaning methods, and properly disposed. Each sweeper provided by the Contractor shall carry a spill kit and the operator shall be properly trained on how to clean spills. Costs incurred by the City to respond to, clean up, and/or contain fluid spills from any Contractor's vehicle shall be paid by the Contractor. All sweepers shall have in large markings the name of the Contractor, and the phrase "Under Contract with the City of Orange" either painted or permanently affixed to both sides of the sweepers. Each sweeper shall be equipped with an automatic vehicle location device (e.g. GPS). The vehicle location and management system shall be approved by the City. All Street Sweepers shall be adequately equipped with a water system for dust control and shall comply with AQMD fugitive dust regulations (i.e. Rule 403). All Street Sweepers shall be equipped with a monitoring system of all fluid systems which will immediately alert the driver and operations manager should a fluid leak occur. 89 of 149 DocuSign Envelope ID: 12EUB732-9FGt-4Et7-AF91-3StS14UAhS82 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement All Street Sweepers shall have two-way radio communication with the City during sweeping operations. The City maintains an 800 MHz radio system, operated by the County of Orange. The Contractor may elect to operate on the City's 800 MHz frequency or may elect to provide a separate means of two-way communication with the City. Any proposed two-way communication shall be operational throughout the entire City limits and approved by the City. Vehicle Inspections. Each year with its Annual Report, Contractor shall submit to City a copy of: a)Its most recent BASIC Score determined by the Federal Motor Carrier Safety Administration, and, b) Any terminal inspection reports resulting from the California Highway Patrol's CHP's") Basic Inspection of Terminals ("BIT") program. If Contractor receives a terminal rating below satisfactory, Contractor shall notify the City, and Contractor is in violation of the Agreement. Contractor has the time allowed by the CHP to cure violations and bring the terminal rating up to satisfactory. If the CHP does not adjust the rating to satisfactory or better within six (6) months, then the Contractor shall be considered in default of this Agreement and the City may terminate the Agreement. c)Correction of Defects. Following any inspection, the City Manager or designee shall have the right to cause Contractor, at its sole cost and expense, to recondition or replace any vehicle or equipment found to be unsafe, unsanitary or unsightly. The City Manager or designee's determination may be appealed to the City Council, whose decision shall be final. 5.14 Street Sweeping Equipment Location and Repair The City requires that all equipment (both primary and backup sweepers) to be used for performing services under this Agreement be kept within twenty (20) miles of the City limits. The Contractor shall maintain a facility for repair and care of sweepers used in the City. Brushes and brooms shall be maintained in proper condition and shall be replaced as recommended by the manufacturer, or when pick-up ability becomes impaired. Contractor is responsible for all costs associated with the installation, operation and maintenance of all devices/equipment utilized as part of the Street Sweeping services. The Contractor shall demonstrate that adequate support equipment shall be available, including debris transfer vehicles, pickup trucks, service trucks,tire trucks, and any other item 90 of 149 DocuSign Envelope ID: 12EOB732-9FGE-4EE7-AF91-38E5(4UAttiti2 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement of equipment necessary to provide sweeping services as described within this Agreement. All equipment, including support equipment, to be used by Contractor shall be listed as a part of the detailed inventory to support the Contractor's qualifications. The Contractor's equipment and equipment service records, including warranty repair, shall be subject to periodic inspection by City. All work, to include warranty and non-warranty work, shall be documented for City review. Scheduled or unscheduled equipment maintenance and/or repairs shall be noticed to City immediately, with anticipated date and time of equipment return. The City shall have the option of performing a complete inspection of all vehicles at any time throughout the Term of this Agreement. If any vehicle is inspected and it is determined to not meet standards the City deems necessary to fulfill the terms of this Agreement, or to operate safely, the City may require such vehicle(s) be brought to standard before being placed back in service. Any vehicle accidents involving sweepers assigned to the City must be reported in writing within twenty-four (24) hours of said accident to the City. 5.15 GPS Equipment and Software The Contractor shall provide an automatic vehicle location device (e.g. GPS) on primary and backup sweeper units. This device shall be placed on all sweeping equipment at the Contractor's cost. The Contractor shall provide associated software programs, which will report all Street Sweeping activity. The associated software shall be provided at no cost to the City including monthly monitoring charges. The Contractor shall provide software and licensing for two work stations (at the City's Corporation Yard) and all associated IT services required to install, maintain, and update this software for the duration of the Agreement. Software shall be capable of being operated on computers utilizing Microsoft Windows XP. Software shall be capable of demonstrating real-time location, speed and path of travel of equipment equipped with GPS systems. Software shall be capable of recording and printing daily activity logs indicating actual miles traveled, ground speed of equipment, the location of equipment at any given time, and any other information that is suitable for documenting actual work performed by the Contractor under this Agreement. Data collected may be used by the City for the Inspection Rating System. The Contractor shall have a backup system to the GPS in the event of a system failure. The backup system shall be subject to City approval. The Contractor shall provide adequate training on an annual basis for City staff in the operation and use of this system. 91 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-A1-91-38E8(40AEtisZ City of Orange Integrated Solid Waste Management and Street Sweeping Agreement The Contractor shall respond to a GPS data request by the City within one (1) business day. Should any location device fail, or need repair, the Contractor shall immediately report that the system is inoperative to the City. If the Contractor's software or monitoring website fails, the City shall immediately notify the Contractor. The Contractor shall repair any non- operation portion of the system within two (2) business days or Contractor shall pay to City one hundred dollars ($100.00) dollars for each twenty-four (24) hour period, or portions thereof,that the system is unavailable to the City. 5.16 Customer Refunds for Missed Sweeps Upon request by City or any Customer, Contractor shall credit a Customer's (or several Customers' if applicable) account(s) in the event that the Customer's (or Customers') streets were not swept according to the schedule in this Agreement. The amount of the credit shall be that portion of the Customer's monthly rate related to street sweeping service and based on the number of days the street was not swept. The amount of the credit shall be reasonable and determined by the City at its sole discretion. The credit shall appear as soon as practicable on the Customer's next invoice after Contractor is notified. Contractor shall not be required to issue any such refunds by check. 92 of 149 DocuSign Envelope ID: 12E05732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 6. OTHER SERVICES 6.1 Customer Billing and Contractor Compensation 6.1.1 Cart Billing Contractor shall Bill Single-Family Residential Customers for Cart Collection Service as shown in Exhibit A. Contractor shall invoice Single-family Customers with Cart Collection service quarterly in advance on or about the first day of the quarter during which service will be provided. Contractor shall prorate invoices for Customers that start or stop service during the month. Contractor shall invoice any Single-family Customers with Bin or Roll-off Collection service according to the billing method for Commercial or Multi-family Customers with Bins, or according to the method for billing Roll-off Customers. 6.1.2 Bin, Roll-off and Temporary Services Billing Contractor shall bill Commercial and Multi-family Customers for Bin, Roll-off Box and temporary services and other special charges as shown in Exhibit A, Exhibit B, and Exhibit C. Contractor shall prorate invoices for Customers that start or stop service during the month. Commercial Customers may share Bins and Contractor shall separately bill such Customers their proportionate share. Contractor shall bill monthly, no sooner than the first day of service and require payment no sooner than thirty (30) days from the start of the service period. For individually serviced Customers who request temporary Roll-off Box or temporary Bin service, Contractor shall accept major credit cards for payment. Individually serviced Customers who do not use credit cards may be required by the Contractor to post a security deposit or to pay on a "Cash on Delivery" (C.O.D.) basis. Any unused portion of a security deposit shall be refunded to the Customer within five (5) business days of the termination of service. In the event Contractor charges a fee without advance approval, Contractor shall pay back each Customer that has been assessed the fee,the amount of the fee plus a one-time interest charge of 10%. Contractor may, with City approval, apply the amount as a credit on an account. 6.1.3 Start and Stop Service—Vacant Residential Units Upon notification by a Single-family or Multi-family Customer with Cart Collection Service that one or more Dwelling Units are or will be vacant, Contractor shall prorate and/or credit the Customer's invoice to reflect the period of time during which the Dwelling Units are 93 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement vacant. Contractor shall rely on Customer's written representation of the period of time during which the Dwelling Units are vacant. Contractor shall not require any other documentation from Customer. Contractor may retrieve Customer's Carts for any vacant Dwelling Unit at no charge to Customer. Contractor may charge the Re-start Fee in Exhibit A to re-deliver a set of three (3) Carts that have been retrieved due to vacancy. In the event of a dispute, the City Manager or designee shall have final authority to make the determination on whether and when a Dwelling Unit is vacant. 6.1.4 Contractor's Invoices Bills must be itemized by Container size and frequency of service and service period. City must approve Contractor Billings as to content and format of invoices. All bills must carry a due date, not "due upon receipt". 6.1.5 Non-Payment; Collections; Suspension of Service In the event of non-payment by a Customer Billed by Contractor, Contractor must follow these steps before suspending service: a)First Notice - If payment is not received by fifteen (15) days after due date, Contractor shall notify Customer in writing of the non-receipt of payment and that non-payment can result in suspension of service. b) Second Notice - If payment is not received within fifteen (15) days of the mailing of the first notice of non-receipt of payment, Contractor shall mail a second notice of non-receipt of payment, warning of service shall be suspended in fifteen (15) days if payment is not received and that City may undertake code enforcement against the delinquent Customer. Contractor shall not suspend service without prior approval from City and may be required to continue Residential service despite lack of payment due to health and safety concerns. Contractor may request a security deposit of up to two months' service from Customers that have had service suspended for non-payment. Contractor shall not suspend service to any public or private preschool, elementary school, middle school, high school, alternative education facility, college, university, or education related facility. Contractor shall not suspend service to any hospital or medical related facility. 94 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement Notwithstanding the above, in the event of a Billing dispute or to avoid a negative impact on public health or safety, Contractor shall continue to provide service to all Customers unless permitted otherwise by City, without regard to the status of said Customer account. City may consider Customers who have their service suspended for non-payment to be in violation of Section 8.28.170 of the Orange Municipal Code. City agrees to make reasonable efforts to enforce Sections 8.28.020 and 8.28.030 of the Orange Municipal Code. 6.1.6 Exemption from Service City may, but is not required to, establish guidelines to exempt properties from receiving and paying for Solid Waste Collection service. Refer to Section 8.29.040 and 8.29.050 of the Orange Municipal Code for requirements and regulations on self-hauling. 6.2 Customer Service 6.2.1 Local Office Contractor shall maintain a local office within the County of Orange or within fifteen (15) miles of the City of Orange city limits.Said office shall be open ("Office Hours"), at a minimum, from 8:00 A.M. to 5:00 P.M., Monday through Friday, exclusive of holidays. A responsible and qualified bilingual (English and Spanish speaking) representative of Contractor shall be available during Office Hours for personal communication with the public at the local office. Contractor's telephone system shall be adequate to handle the volume of calls typically experienced on the busiest days. If City receives more than five (5) complaints in thirty (30) days that Customers are unable to contact Contractor by phone, City may require Contractor to increase capacity. Contractor shall have either a representative, a message machine, or an answering service available outside of Office Hours. Calls received outside of Office Hours shall be responded to on the next business day. Contractor shall provide City with a twenty- four (24) hour emergency number to a live person, not voicemail. Contractor shall also accept Customer complaints and inquiries via email. Contractor shall record Customer complaints and inquiries in accordance with Section 6.2.2. Customer service representatives receiving multiple complaints are to be transferred from Customer service duties or, with City approval, disciplined and appropriately trained. Contractor shall also provide an online platform to accept customer requests and complaints. Customers shall be able to submit requests through an online portal and receive automated status updates of their service requests. Requests shall be able to be received on the online 95 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement platform twenty-four (24) hours a day. Contractor shall have online platform operational by October 1, 2024. 6.2.2 Complaint Documentation Service complaints received by City shall be directed to Contractor.Contractor shall keep daily logs of complaints forwarded to it for a minimum of three (3) years. Contractor shall record all calls and emails, including any inquiries, service requests and complaints into a customer service log. This log shall include the date and time the complaint was received,the name, address, and telephone number (and email address, if applicable) of the caller/complainant, a description of the complaint, the name of the employee recording the complaint, and the action taken by Contractor to respond to and remedy the complaint. Log shall also include each instance that Solid Waste and/or Recyclables are not Collected, and the form of notification used to inform the participants of the reasons of non-Collection and the end result or means of resolution of the incident. All written Customer complaints and inquiries shall be date-stamped when received. All complaints shall be initially responded to within one (1) business day of receipt. Contractor shall use best efforts to resolve complaints within two (2) business days. Contractor shall log action taken by Contractor to respond to and remedy the complaint. All Customer service records and logs kept by Contractor shall be available to City upon request. City shall, at any time during regular Office Hours, have access to Contractor's Customer service department for purposes that may include monitoring the quality of Customer service or researching Customer complaints. 6.2.3 Resolution of Customer Complaints Disputes between Contractor and Customers regarding the services provided in accordance with this Agreement may be resolved by City. City's decision shall be final and binding. Intervention by City is not a condition precedent to any rights or remedies third parties might otherwise have in any dispute with Contractor. Nothing in this section is intended to affect the remedies of third parties against Contractor. 6.2.4 Contract Liaison Contractor shall designate in writing a "Contract Liaison"who shall be responsible for working with City and/or City's designated representative(s)to resolve Agreement-related issues. City 96 of 149 uocuSign Envelope IL): 12E0B732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement shall have the right to approve the Contractor's choice for a Contract Liaison. City shall be notified in advance of any change in Contract Liaison. 6.2.5 Service Liaison Contractor shall designate in writing a field supervisor as "Service Liaison" who shall be responsible for working with City and/or City's designated representative(s) to resolve Customer service-related complaints. City shall have the right to approve the Contractor's choice for a Service Liaison. City shall be notified in advance of any change in Service Liaison. 6.3 Education and Public Awareness 6.3.1 General Contractor acknowledges and agrees that education and public awareness are critical, key, and essential elements of any efforts to achieve the requirements of AB 939,AB 341, AB 1826, and SB 1383 and their implementing regulations. Accordingly, Contractor agrees to take direction from City to maximize opportunities to expand public and Customer knowledge concerning needs and methods to reduce, reuse, Recycle, and Compost Solid Waste and to cooperate fully with City in this regard. Contractor shall maintain its own program of providing information relevant to needs and methods to reduce, reuse, and recycle Solid Waste with its Bills.All public education materials shall be approved in advance by City and shall be printed in English, Spanish, or other languages that the City may designate. 6.3.2 Implementation and On-going Education Requirements To promote public education, in addition to any other materials it develops, Contractor shall create the following public education materials and programs at its expense, which will be distributed as indicated below. All of these materials and programs shall be produced and/or available in English and Spanish languages, including pictures wherever applicable. All brochures, mailings, and other educational materials are to be approved by City in advance of distribution. A Public Education Plan shall be submitted to City for review within sixty (60) days after the execution of this Agreement. The plan shall address the items described in this section. The Public Education Plan shall be updated as needed by mutual agreement of the Parties. Annual Brochures/Mailings- Not less than four(4)times per year during the Term, Contractor shall prepare and distribute to each Customer a mailing or billing insert to update Customers regarding program basics, program changes, holiday schedules, and other service-related 97 of 149 Docuslgn Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement information. Separate brochures shall be developed for Residential and Commercial Customers, reflecting the different services provided to each group. Mailings should promote and explain: all Solid Waste programs offered by City and Contractor (such as Recycling, Organics, Holiday Tree, and Bulky Item Collections) described in detail; the environmental, regulatory, and other benefits of participating in Recycling; how to properly dispose of Household Hazardous Waste such as syringes, paint, etc. through the County's program, the City's door-to-door program, or other means; Collection schedules, including holiday schedules; Customer service numbers; and the procedures to begin and terminate services. This brochure shall be at least four(4) pages and printed in full color. City may provide mailing labels from its Billing system. Contractor is responsible for all associated costs. Corrective Action Notice - Contractor shall develop a corrective action notification form for use in instances where a Customer sets out inappropriate materials for Collection that explains the appropriate manner for Disposal of such items. Website - Contractor shall develop and maintain a website to enable Customers to contact Contractor, submit service requests, monitor the status of complaints, and to display holiday schedules, proper HHW disposal procedures,which materials are to be placed in Recyclables Containers and other useful information. Contractor shall also provide outreach through other technologies that many be developed. Recycle and Organic Waste Curriculum — Contractor shall provide a Recycling and Organic Waste education curriculum for use in classroom visits and workshops, and shall develop materials for use with such curriculum such as posters, coloring books, puzzles, and quizzes. Contractor shall prepare and coordinate classroom education curriculum with the Orange Unified School District, if requested by the District. The curriculum shall also be utilized by Contractor for recycle presentations and physical interactive exhibits at City public libraries, churches, and other youth groups identified by the City. Customer Education — Organics - Contractor shall conduct applicable public outreach as approved by the City to encourage Customers to include all types of Organics within the Green Waste/Organics Carts. Public outreach shall include, but not be limited to, educational stickers applied to the lids of Green Waste/Organics Carts, Cart tags, and educational fliers. All new or replaced Green Waste/Organics Carts shall describe the Organic materials allowed to be placed in the Green Waste/Organics Carts. 6.3.3 Contractor Representative Contractor shall retain on its staff an individual who shall, as part of his or her job function, routinely visit civic groups, school assemblies, homeowners' associations, Multi-family 98 of 149 DocuSign Envelope ID: 12E0B732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement Premises, and businesses, to promote and explain the Recycling programs Contractor offers, and participate in demonstrations, and civic events. 6.3.4 Community Events At the direction of City, Contractor shall participate in and promote Recycling and other Diversion techniques at City-sponsored Special Events,community events,and local activities designated by City. Such participation shall include providing, without cost, Collection and educational and publicity information promoting the goals of City's Solid Waste program. 6.4 Contamination Monitoring Contractor shall implement a contamination monitoring program to minimize Prohibited Container Contaminants in a manner that complies with 14 CCR Section 18984.5. Contractor may conduct its contamination monitoring requirements through either Route Reviews or Waste Evaluations, or a combination of the two methods. Contractor's contamination monitoring program shall include, but not be limited to, the following: 6.4.1 Route Reviews For routes on which Contractor conducts Route Reviews (i.e., on-route observations of individual Containers), the routes must be reviewed at least once per year. Upon finding Prohibited Container Contaminates in a Container, Contractor shall notify the Customer of the violation. The notification shall include information in English and Spanish regarding the Customer's obligation to properly Source Separate materials in the appropriate Containers and should include photographic evidence of the violation. Contractor shall either leave a Notice of Violation in English and Spanish at the Customer's location, or mail, e-mail, or electronically message the Waste Generator. 6.4.2 Waste Evaluations For routes on which Contractor performs Waste Evaluations (i.e., conducting waste characterizations of Collected material at the Processing Facility), Waste Evaluations shall be conducted at least twice per year for the Green Containers and Brown or Blue Containers, and at least once per quarter for the Black Containers. Waste Evaluations shall include samples of each Container type, and samples from different areas of the City, and from different seasons in the year. The Waste Evaluations shall include at least the number of samples required by 14 CCR Section 18984.5 (C)(1)(e). 99 of 149 Docuslgn Envelope ID: 12E06732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement If the sampled weight of Prohibited Container Contaminants in the Waste Evaluations exceeds twenty percent (25%) of the measured sample for any Container type, Contractor shall perform one of the following: a)Notify all Waste Generators on the sampled routes of their requirement to properly separate materials into the appropriate Containers. Contractor may provide this information by placing a notice in English and Spanish on the Waste Generator's Container, gate, or door, and/or by mail, e-mail, or electronic message to the Waste Generator. b) Perform a targeted Route Review of Containers on the routes sampled for Waste Evaluations to determine the sources of contamination and notify those Waste Generators of their obligation to properly separate materials. Contractor may provide this information to these Waste Generators by placing a notice in English and Spanish on the Waste Generator's Container gate, or door, and/or by mail, e-mail, or electronic message to the applicable generators. 6.4.3 Recordkeeping and Reporting Contractor shall collect and maintain following information and documents related to its contamination minimization program and provide it to City: a) A description of Contractor's process for determining the level of Container Contamination. b) Documentation of any of the Route Reviews it conducts. c)Documentation of any Waste Evaluations performed including information about any targeted Route Reviews conducted as a result of the Waste Evaluations. The documentation shall at a minimum include dates of the studies, the location of the Solid Waste Facility where the study was performed, routes, source sector (e.g., Commercial or Residential), number of samples, weights and ratio of Prohibited Container Contaminants and total sample size, and of all notices issued to Waste Generators with Prohibited Container Contaminants. d) Documentation of the number of Containers where the contents were disposed due to observation of Prohibited Container Contaminants. Contractor shall continuously monitor the Single-Family Organic Waste Collection program for both participation and contamination such that each year, Contractor has opened the Cart 100 of 149 Docusign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement lid and checked the contents of a minimum of five percent(5%) of all Single-Family and Multi- Family Cart Customers in the City to note contamination levels in the Carts. (Contractor shall develop a plan to randomly sample areas of City,which shall be submitted to City for approval annually.) When Contractor finds a household that is not participating, Contractor shall leave or direct mail the Customer education materials in English and Spanish describing the program, and how to participate. When Contractor finds contamination, Contractor shall alert the Customer by leaving hang-tag public education materials in English and Spanish concerning the acceptable materials for the program.Contractor shall recheck the Residences that were tagged within sixty (60) days to see if the contamination has been reduced or eliminated. 6.5 Waste Generation/Characterization Studies Contractor acknowledges that City must perform Solid Waste generation and Disposal characterization studies periodically to comply with the requirements of AB 939. Contractor agrees to participate and cooperate with City and its agents and to accomplish studies and data collection and prepare reports, as needed and directed by City, to determine weights and volumes of Solid Waste Collected and characterize Solid Waste generated, disposed, transformed, diverted, or otherwise handled/processed, by Customer type (Single-family, Multi-family, Commercial), to satisfy the requirements of AB 939. Contractor shall at its sole expense conduct such a waste generation and characterization study upon request of City. 101 of 149 DocuSign Envelope ID: 12EUB732-9FUE-4EE7-AF91-38E874OAEtstl2 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 7. CONTRACTOR COMPENSATION AND RATES 7.1 General The maximum rates set forth in Exhibit A, Exhibit B, Exhibit C, and Exhibit D, and as those maximum rates may be adjusted during the Term, shall be the maximum amount Contractor may charge Customers as full, entire, and complete compensation due pursuant to this Agreement for all labor, equipment, materials and supplies, taxes, insurance, bonds, letters of credit, overhead, Disposal,transfer, profit,and all other things necessary to perform all the Solid Waste Handling and Street Sweeping services required by this Agreement in the manner and at the times prescribed. Contractor shall impose no other charges for services provided to Customers unless approved by the City Manager or designee. 7.2 Initial Rates The maximum rates that Contractor may charge Customers from March 1, 2024 through June 30, 2025, shall not exceed the maximum rates set forth in Exhibit A, Exhibit B, Exhibit C and Exhibit D. 7.3 Schedule of Future Adjustments Beginning with the Rate Year starting July 1, 2025 and ending on June 30, 2026, and for all subsequent Rate Years, Contractor may request an annual adjustment to the maximum rates shown in Exhibit A, Exhibit B, Exhibit C and Exhibit D. Contractor shall submit its annual rate adjustment request in writing, to be received by City in person or via certified mail, prior to the preceding March 30th, or at least ninety (90) days prior to the effective date of the rate adjustment. If Contractor does not submit a rate adjustment request prior to March 30th, City may delay the effective date of the rate adjustment by one month for each 30-day period (or any portion thereof) after March 30th that Contractor does not submit a rate adjustment request. Any delayed rate adjustment shall become effective on the first day of the month (i.e., not become effective mid-month). Contractor shall forego lost revenue due to any delayed rate adjustment. Contractor's annual rate adjustment request shall be based on the method of adjustment described in Section 7.4. Adjustments to the maximum rates are subject to the approval of the City Council. The Commercial initial rate adjustment from July 1, 2023, to March 1, 2024, shall be implemented at 50% of the total adjustment. The remaining 50% shall be delayed and implemented on July 1, 2025. 102 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 7.4 Method of Adjustments 7.4.1 Annual Rate Adjustment Percentage The Annual Rate Adjustment Percentage shall be calculated based on the cost component categories shown in Table 1. Each cost component shall be adjusted by the change in the corresponding index in Table 1. See Section 7.4.2 for detailed rate adjustment procedures. Table 1—Cost Components of Inflation Adjustment Percentage Initial Weightings for July Cost 1, 2025 Adjustment Index Category Residential Commercial Change in the highest level rate for the"Driver A/B" Classification to be in effect as of the date the new Labor 23.7% 20.0% rates go into effect (July 1st) under the Agreement between local haulers and Package and General Utility Drivers Local Union 396, International Brotherhood of Teamsters (1) Producer Price Index, WPU 0531 not seasonally Fuel 4.7% 4.9% adjusted, Fuels and related products and power, natural gas Equipment 19.3% 8 3% Producer Price Index, PCU336120336120, Heavy duty truck manufacturing Insurance 0.9% 0.9% Producer Price Index, PCU524---524---, Insurance carriers and related activities Landfill 18.8% 21 5% Actual change in landfill gate fee per ton at the Disposal Orange County Landfill System Consumer Price Index, Series ID: CUURS49ASAO, All Other 32.6% 44.4% All items in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted (U.S. Department of Labor, Bureau of Labor Statistics. Total 100.0% 100.0% 103 of 149 DocuSign Envelope ID:12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement Table 2—Example Calculation to Labor Components Contract Date 10/01/23 10/01/24 Hourly Rate 23.40 24.15 Rate Adjustment Date n/a 7/01/25 Change to Labor Component n/ a 3.2% Table 2 shows an example calculation of the labor component. Comparable rates from subsequent labor agreements will similarly apply. If a subsequent labor contract has not been executed prior to a rate adjustment calculation, the percentage change in the labor cost component used in the prior year's adjustment calculation will be used. In the event that the estimated labor component change is higher or lower than the actual change after a new labor contract is executed, no compensation adjustment shall be provided for prior periods. 7.4.2 Rate Adjustment Steps All rates will be adjusted using the same methodology described below. Residential and Commercial rates shall be adjusted using the corresponding cost component weightings from Section 7.4.1. a) Step One - Calculate the percentage increase or decrease in each index listed in Section 7.4.1. The increase or decrease in the published indices for fuel, equipment insurance and all other (CPI) will be for the change in the average annual published index between the calendar year ended the December prior to the Rate Year anniversary date and prior calendar year. b) Step Two - The first set of rate adjustment cost components as a percentage of total costs are provided in Section 7.4.1 above, to be used for the rate adjustment effective July 1, 2025, with subsequent components calculated in Step Five of the rate adjustment. For Step Two of each subsequent rate adjustment, use the cost components recalculated in Step Five during the previous rate adjustment. Multiply the percentage changes for each rate adjustment component by that component's weighting and add these resulting percentages together to derive the Inflation Adjustment Percentage. c)Step Three - Multiply the Total Rate Adjustment Percentage from Step Three by the existing Customer rates to calculate the increase or decrease to the maximum rates. Add the rate increase or decrease to the existing rates to derive the newly adjusted rates. 104 of 149 DocuSign Envelope ID: 12E0B732-9FGE-4EE7-AF91-3SES740AES82 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement d) Step Four - Recalculate Residential and Commercial cost component weightings for the following year based upon these changes. 7.5 Competitive Rate Guarantee Contractor has agreed to a competitive rate guarantee for Residential and Commercial rates. All Residential and Commercial rates shall be equal to or less than the 50th percentile of comparable rates for Solid Waste Service, as of July 1 each year, charged by the following ten 10) jurisdictions in north Orange County: Anaheim, Fullerton, Garden Grove, Irvine, Placentia, Santa Ana, Tustin, Villa Park, Brea, and Yorba Linda. Comparable rates shall be the rates charged to ratepayers less any amount attributable to fees paid to or collected by the jurisdiction, and less any amount for non-Solid Waste related services. The 50th percentile of the comparable rates shall be the midpoint between the comparable rates of the 4th and 5th ranked jurisdictions. Notwithstanding any rate adjustment resulting from the annual CPI adjustment in Section 7.4, City shall apply the competitive rate guarantee so that the Solid Waste Service rates shall not exceed the median of the rates for similar services among the ten (10) north Orange County cities. In other words, the maximum Solid Waste rates would be adjusted by the annual CPI adjustment, with specific rates reduced if the 50th percentile of comparable rates among the 10 jurisdictions in north Orange County listed above are less than the CPI-adjusted rate under the Competitive Rate Guarantee. The rates would be adjusted each July 1 to account for both the CPI adjustment and the Competitive Rate Guarantee. 7.6 Extraordinary Adjustments Contractor may request an adjustment to maximum rates at reasonable times other than that allowed under Section 7.4 in the event of extraordinary changes in the cost of providing service under this Agreement. Such changes shall not include: a)Changes in tipping fees for Recyclable Material processing costs; b) Cyclical changes in Roll-off volume; c)Inaccurate estimates by the Contractor of its proposed cost of operations; d) Unionization of Contractor's work force; or, e) Changes in wage rates or employee benefits. 105 of 149 L)ocuSign Envelope IL): 12E0B732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement Unusual increased costs may include: a)Extraordinary changes in the market value of Recyclables; b) Extraordinary increases in the tipping fees charged at the Orange County Landfill System; c)Changes in direct per ton fees assessed at a Disposal Site by Federal, State or local regulatory agencies; d) Changes in service mandated by the City; e) Changes to the Orange Municipal Code affecting Contractor's operations; f)Increases in fees imposed by the City; g)Changes in State or local government solid waste fees and charges; or, h) Changes in the law. For each request for an adjustment to the maximum rates that Contractor may charge Customers brought pursuant to this section, Contractor shall prepare a schedule documenting the extraordinary costs. Any request for an extraordinary adjustment shall be submitted at least one hundred twenty (120) days prior to the effective date of the adjustment. Such a request shall be prepared in a form acceptable to City Manager or designee with support for assumptions made by Contractor in preparing the estimate. Contractor shall also submit a schedule showing how its total costs and total revenues have changed over the past three years for the services provided under this Agreement. The City Manager or designee may request a copy of the Contractor's annual financial statements in connection with the City Manager or designee's review of Contractor's rate adjustment request. The City Manager or designee shall review the Contractor's request and, in City Manager or designee's sole judgment and absolute, unfettered discretion, make the final determination as to whether an adjustment to the maximum rates will be recommended to the City Council, and the appropriate amount of the adjustment. The City Manager or designee may consider increases or decreases in the Contractor's total revenues and total cost of services when reviewing an extraordinary rate adjustment request. Only a recommendation that an adjustment be allowed shall be presented to the City Council. Should the City Council approve the request, the extraordinary rate adjustment shall become effective at the start of the next billing cycle, i.e.,the next month for commercial and the next quarter for residential and may not be applied retroactively. 106 of 149 DocuSign Envelope ID: 12E0B732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement No increase in rates may occur unless and until any notice and hearing which may be required by Proposition 218 (California Constitution Article XIII D, section 6), and related California Government Code sections have been given and held. The City shall initiate and undertake the notice and hearing process with respect to any increases in fees and charges occurring from time to time during the Term arising from the operation of this section, in accordance with the requirements of Proposition 218 (California Constitution Article XIII D, section 6), and related California Government Code sections. If the proposed increase in rates is not approved at the hearing pursuant to the requirements of the Proposition 218 process, there will be no increase in the rates under this Agreement. 107 of 149 DocuSign Envelope ID: 12EUB732-9FGE-4EE7-A1-91-38E874UAtt3d? City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 8. REVIEW OF SERVICES AND PERFORMANCE 8.1 Performance Review Meeting City may hold a meeting or a public hearing annually to review Contractor's Solid Waste Handling efforts, source reduction, processing and other Diversion services, and overall performance under this Agreement (the "Solid Waste Services and Performance Review Meeting"). The purpose of the Solid Waste Services and Performance Review Meeting is to provide for a discussion and review of technological, economic, and regulatory changes in Collection, source reduction, Recycling, processing, and Disposal to achieve a continuing, advanced Solid Waste Handling, source reduction, and Recycling and Disposal system; and to ensure services are being provided by Contractor with adequate quality, effectiveness, and economy, and in full compliance with the terms of this Agreement. Topics for discussion and review at the Solid Waste Services and Performance Review Meeting shall include, but shall not be limited to, services provided, feasibility of providing new services, application of new technologies, Customer complaints, amendments to this Agreement, developments in the law, new initiatives for meeting or exceeding AB 939 goals, regulatory constraints, results of route audits, and Contractor performance. City and Contractor may each select additional topics for discussion at any Solid Waste Services and Performance Review Meeting. City shall notify Contractor of its intent to hold a Solid Waste Services and Performance Review Meeting at least sixty(60) days in advance.Thirty(30) days after receiving notice from City of a Solid Waste Services and Performance Review Meeting, Contractor shall submit a report to City which may contain such information as it wishes to have considered, and shall contain the following: a)Current Diversion rates and a report on Contractor's outreach activities for the past year. b)Recommended changes and/or new services to improve City's ability to meet the goals of AB 939 and to contain costs and minimize impacts on rates. A specific plan for AB 939 compliance shall be included. c)Any specific plans for provision for new or changed services by Contractor. The reports required by this Agreement regarding Customer complaints shall be used as one basis for review of Contractor's performance, and Contractor may submit other relevant performance information and reports for consideration at the Solid Waste Services and Performance Review Meeting. In addition to the above, City may request Contractor to submit any other specific information relating to its performance for consideration at the Solid Waste Services and Performance Review Meeting, and any Customer may submit 108 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement comments or complaints during or before the meeting, either orally or in writing. Contractor shall be present at and participate in the Solid Waste Services and Performance Review Meeting. As a result of its findings following any Solid Waste Services and Performance Review Meeting, City may require Contractor to provide expanded or new services within a reasonable time and City may direct or take corrective actions for any performance inadequacies (although nothing contained in this provision should be construed as requiring City to hold a Solid Waste Services and Performance Review Meeting in order to enforce any rights or remedies it has pursuant to the terms in this Agreement.) Should City require expanded or new services as a remedy for Contractor's failure to perform its obligations hereunder, no additional compensation shall be due for such services. Otherwise, any new or expanded services required of Contractor shall be subject to the provisions of Section 2.10. 8.2 Performance Satisfaction Survey If requested by the City,Contractor shall create and conduct a survey at Contractor's expense in preparation for any Solid Waste Services and Performance Review Meeting held pursuant to Section 8.1. City shall notify Contractor of its desire for such a survey at least ninety (90) days in advance of the Solid Waste Services and Performance Review Meeting. The purpose of the survey is to determine Customer satisfaction with current Collection services and Customer service provided by Contractor.The Survey will be distributed to a minimum of ten percent (10%) of the Residential Customers and ten percent (10%) of the Commercial Customers, selected at random. City may instruct Contractor to send out separate Single- family and Multi-family/Commercial surveys. Contractor shall obtain City's approval of each survey's content, format, and mailing list prior to its distribution. City may require that Contractor have Customer responses to the survey returned directly to City. The survey results shall be made available to the City thirty (30) days prior to the Solid Waste Services and Performance Review Meeting. 109 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 9. RECORDS, REPORTS AND INFORMATION REQUIREMENTS 9.1 General Contractor shall maintain such accounting, statistical, and other records related to its performance under this Agreement as shall be necessary to develop the financial statements and other reports required by this Agreement. Also, Contractor agrees to conduct data collection, information and record keeping, and reporting activities needed to comply with Applicable Laws and regulations and to meet the reporting and Solid Waste program management needs of City. To this extent, such requirements set out in this and other sections of this Agreement shall not be considered limiting or necessarily complete. In particular,this section is intended to only highlight the general nature of records and reports and is not meant to define exactly what the records and reports are to be and their content. Further, with the written direction or approval of City, the records and reports to be maintained and provided by Contractor in accordance with this and other sections of the Agreement shall be adjusted in number, format, or frequency. 9.2 Records 9.2.1 General Contractor shall maintain records required to conduct its operations, to support requests it may make to City, and to respond to requests from City in the conduct of City business. Adequate record security shall be maintained to preserve records from events that can be reasonably anticipated such as a fire, theft, and earthquake. Electronically maintained data/records shall be protected and backed up. All records shall be maintained for five (5) years and shall continue to be available for five (5) years after the expiration of this Agreement. After minimum holding periods are met, Contractor shall notify City ninety (90) days before destroying records. Contractor agrees that the records of any and all companies conducting operations addressed in the Agreement shall be provided or made available to City and its official representatives during normal business hours. Account histories shall be accessible to the City by computer for a minimum of five (5)years. City may review or utilize any of the records described in this section. Such records include, but are not limited to, financial, Solid Waste, CERCLA, and Disposal records. 9.2.2 Financial Records Contractor shall maintain financial records in accordance with generally accepted accounting principles (GAAP) relating to its operations pursuant to this Agreement separate and 110 of 149 DocuSign Envelope ID: 12E0B732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement segregated from such records relating to its other operations. Contractor shall maintain at least the following records: a) Audited financial statements for Contractor or, if a guarantee was provided, for the parent company guarantor as a whole; b) Financial statements (compiled, reviewed, or audited) of revenue and expenses for this Agreement segregated from the other operations of Contractor (including without limitation those operations of Contractor in City and surrounding jurisdictions which are not covered by this Agreement), including a description of segregation methodology; and, c)Complete descriptions of related party transactions (corporate and/or regional management fees, inter-company profits from transfer, processing, or Disposal operations). 9.2.3 Solid Waste Records Contractor shall maintain and make available to the City upon request the following records relating to its operations pursuant to this Agreement: a) Customer services and Billing/City payment records; upon request, Contractor shall provide customer service and billing data in electronic format that is acceptable to City. b) Records of tons Collected, processed, diverted, and disposed by waste stream Refuse, Recycling, Organic Waste), by Customer type (Cart, Residential Bin, Commercial, and Roll-off Box), and the Facilities (Transfer Station, MRF, or landfill)where such material was taken (Residential Bin versus Commercial Bin tonnage may be estimated based upon Container distribution or other method approved by City); c)Quantity of Recyclable Materials recovered by material type, as well as quantity of material diverted from landfills in compliance with AB 939; d) Bulky Item results and Special Event tonnages, including tons disposed and diverted; e)Routes; f)Facilities, equipment and personnel used; 111 of 149 DocuSign Envelope ID: 12E0B732-9FGE-4EE7-AF91-36E6/4UAEtft52 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement g)Facilities and equipment operations, maintenance, and repair; h) Number and type of Refuse, Recycling, and Green Waste Containers in service; i)Complaints; and, j)Missed pickups. 9.2.4 CERCLA Defense Records City views the ability to defend against the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and related litigation as a matter of great importance. For this reason, City regards the ability to prove where Solid Waste Collected in the City was taken for Disposal, as well as where it was not taken, to be matters of concern. Contractor shall maintain data retention and preservation systems which can establish where Solid Waste Collected in the City was landfilled (and therefore establish where it was not landfilled) for not less than five (5) years following the termination of this Agreement, and agrees to notify City's Risk Manager and City Attorney before destroying such records thereafter. At any time, including after the expiration of the Term of this Agreement, Contractor shall provide copies of such records to City. The requirements of this section shall survive the expiration of the Term of this Agreement. 9.2.5 Disposal Records Contractor shall maintain, and make available to the City upon request, records of Disposal of all Solid Waste Collected in City for the period of this Agreement and all extensions to this Agreement or successor Agreements. In the event Contractor discontinues providing Solid Waste Collection Services to City, Contractor shall provide all records of Disposal or processing of all Solid Waste Collected in City within thirty (30) days of discontinuing service. Records shall be in chronological and organized form and readily and easily interpreted. 9.2.6 Other Programs' Records Records for other programs shall be tailored to specific needs. In general, they shall include: a)Plans, tasks, and milestones; and, b) Accomplishments in terms such as dates, activities conducted, quantities of products used, produced or distributed, and numbers of participants and responses. 112 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 9.2.7 Audit City may conduct an audit of Contractor at any time. The scope of the audit, and auditing party,shall be determined by City and the scope may include, but is not limited to,compliance with terms of this Agreement, Customer service levels and Billing, fee payments, Gross Receipts,tonnage,verification of weightings of cost components used in the rate adjustment formula described in Section 7.4, and verification of Diversion rate. The first audit, to be performed during 2025, will be based on the Contractor's reports and records for calendar year 2024. Audits will be performed every other year thereafter (the biennial audit). Contractor will reimburse to the City the cost of such audits (including audits conducted by City staff) up to$90,000 for the first audit, and $60,000 for each subsequent biennial audit in 2020 dollars. The $60,000 amount in subsequent years shall be increased annually by the change in CPI using the formula for the change in the service component of the rates in Section 7.4. Should an audit conducted or authorized by the City disclose that fees payable by Contractor were underpaid by two percent (2%) or more,that tonnage was misreported by 2%or more, or that more than two percent (2%) of the Customers were inaccurately billed based on the auditor's sampling, for the period under review, City may expand the scope of the audit and recover additional audit costs from the Contractor. 9.2.8 Payments and Refunds Should an audit disclose that fees payable by the Contractor were underpaid or that Customers were overcharged for the period under review, Contractor shall pay to City any underpayment of fees and/or refund to Contractor's Customers or to City, as directed by City, any overcharges within thirty (30) days following the date of the audit. Contractor shall pay interest to the City for any underpayment or overcharges at an annual rate of twelve percent(12%). Undercharges shall not be billed in arrears for more than ninety 90) days of service, with any remaining undercharges absorbed by Contractor. Should an audit disclose that fees were overpaid, City shall credit such amounts against future fees payable by Contractor. 9.3 Reports 9.3.1 Report Formats and Schedule Records shall be maintained in forms and by methods that facilitate flexible use of data contained in them to structure reports, as needed. Contractor may propose report formats 113 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement that are responsive to the objectives and audiences for each report.The format of each report shall be approved by City. In addition to submitting all reports on paper, Contractor agrees to submit all reports in an electronic format approved by City, compatible with City's software/computers at no additional charge. Reports shall be submitted within thirty (30) calendar days after the end of the reporting period. Annual reports for which a date is not otherwise specified in this Agreement shall be submitted within thirty (30) calendar days after the end of the calendar year. If requested, Contractor's complaint summary,described in Section 6.2.2,shall be sent to the Public Works Director within five (5) business days of request. All reports shall be submitted to: Public Works Director (or designated representative) City of Orange 300 E. Chapman Ave. Orange, CA 92866 9.3.2 Monthly Reports The information listed below shall be the minimum reported: a) Solid Waste Collected by Contractor, sorted by type of Solid Waste Collected and diverted (Refuse, Recycling, Organic Waste) in tons (including contamination and Diversion rates for each waste stream and Customer type), Customer type (Cart, Residential Bin, Commercial Bin, and Roll-off Box) and the Facilities where the tons were processed or disposed. b) Warning notices issued for contaminated Recyclable Materials and Organic Waste Containers. c)Narrative summary of problems encountered and actions taken with recommendations for City, as appropriate. d) Quantity of Recyclable Materials recovered by material type, as well as quantity of material diverted from landfills in compliance with AB 939. e) Description of Contractor outreach activities and copies of promotional and public education materials sent during the month. f)A list of all Customers that generate recoverable edible Food Waste. g) Other information or reports that City may reasonably request or require. 114 of 149 DocuSign Envelope ID: 12E0B732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 9.3.3 Annual Report The Annual Report is to be essentially in the form and content of the monthly report, but shall also include: a) A summary of the number of Containers in service as of December 31 by size number of gallons, number of yards), sector (Residential Cart, Commercial Cart, Residential Bin, Commercial Bin and Roll-off Box), service frequency, and type of service (Refuse, Recycling, Organic Waste). b) Records of tons Collected, processed, diverted, and disposed by waste stream Refuse, Recycling, Organic Waste), by Customer type (Cart, Residential Bin, Commercial Bin and Roll-off Box), and the Facilities (Transfer Station, MRF, or landfill) where such material was taken. c)Gross Receipts by sector (Cart, Residential Bin, Commercial Bin, and Roll-off Box). d) A complete inventory of vehicles used to provide all services, including make, year, type, fuel used, use, California license number, and whether or not it is used as a spare. e)Number of routes and route hours per day by type of service as of December 31. f)General information about the Contractor and its most recent annual report. g) Other information or reports that City may reasonably request or require. 9.3.4 CalRecycle Electronic Annual Report Contractor shall prepare the CalRecycle Electronic Annual Report (EAR), including but not limited to supplying required data for preparation of the reports, and completing all required data input in the Local Government Information Center(LoGIC). Contractor shall prepare and submit the EAR each year by the August 15t deadline or deadline date established by CalRecycle. 115 of 149 Docusign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 9.3.5 Financial Report The City may, at City's option, request and be provided with Contractor's financial reports/statements for the most recently completed fiscal year in connection with any audit, extraordinary rate adjustment request, or verification of other information required under this Agreement. Financial statements shall include a supplemental combining schedule showing Contractor's results of operations, including the specific revenues and expenses in connection with the operations provided for in this Agreement, separated from others included in such financial statements. The financial statements and footnotes shall be prepared in accordance with GAAP and audited, in accordance with Generally Accepted Auditing Standards (GAAS) by a certified public accountant (CPA) licensed (in good standing) to practice public accounting in the State of California as determined by the State of California Department of Consumer Affairs Board of Accountancy. The cost for preparation of the financial statements and audit shall be borne by Contractor as a direct cost of service. In addition, Contractor shall provide to City the supplemental schedule on a compiled basis. 9.4 Reporting Adverse Information Contractor shall provide City two copies(one to the City Manager or designee,one to the City Attorney) of all reports, pleadings, applications, notifications, Notices of Violation, communications, or other material relating in any way to Contractor's performance of services pursuant to this Agreement, submitted by Contractor to, or received by Contractor from, the United States or California Environmental Protection Agency, the California Department of Resources Recycling and Recovery, the Securities and Exchange Commission or any other Federal, State or local agency, including any Federal or State court. Copies shall be submitted to City within thirty (30) days of receipt by Contractor, or sooner if reasonably apparent that to do so is materially relevant, and any responses by Contractor shall be submitted to City simultaneously with Contractor's filing or submission of such matters with said agencies. Contractor's routine correspondence to said agencies need not be routinely submitted to City but shall be made available to City promptly upon City's written request. 9.5 Right to Inspect Records City shall have the right to inspect or review the specific documents or records required expressly or by inference pursuant to this Agreement, or any other similar records or reports of Contractor or its Affiliates that City shall deem, in its sole discretion, necessary to evaluate annual reports, and Contractor's performance provided for in this Agreement. Contractor shall make all records and documents to be reviewed and inspected by City as a part of any 116 of 149 DocuSign Envelope II): 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement audit or other record review conducted by City, available for City's review, inspection, and copying within five (5) days of receiving written notice from City requesting the same. 9.6 Failure to Report The refusal or failure of Contractor to file any required reports, or to provide required information to City, or the inclusion of any materially false or misleading statement or representation by Contractor in such report shall be deemed a material breach of the Agreement as described in Section 12.1 and shall subject Contractor to all remedies which are available to the City under Agreement or otherwise. 117 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 10. INDEMNIFICATION, INSURANCE, BOND AND LETTER OF CREDIT 10.1 Indemnification Contractor hereby agrees to and shall indemnify and hold harmless City, its elected and appointed boards, commissions, officers, employees, consultants, and agents (collectively, Indemnitees")from and against any and all loss, liability, penalty,forfeiture, claim, demand, action, proceeding or suit in law or equity of any and every kind and description (including, but not limited to, injury to and death of any Person and damage to property, or for contribution or indemnity claimed by third parties) arising or resulting from and in any way connected with (1)the negligence or willful misconduct of Contractor, its officers,employees, agents, contractors and/or subcontractors in performing services under this Agreement; (2) the failure of Contractor, its officers, employees, agents, contractors and/or subcontractors to comply in all respects with the provisions of this Agreement, Applicable Laws (including, without limitation, the Environmental Laws), ordinances and regulations, and/or applicable permits and licenses; (3) the acts of Contractor, its officers, employees, agents, contractors and/or subcontractors in performing services under this Agreement for which strict liability is imposed by law (including, without limitation, the Environmental Laws). The foregoing indemnity shall apply regardless of whether such loss, liability, penalty, forfeiture, claim, demand, action, proceeding, suit, injury, death, or damage is also caused in part by any of the Indemnitees' negligence but shall not extend to matters resulting from the Indemnitees' sole negligence, or willful misconduct. Contractor further agrees to and shall, upon demand of City, at Contractor's sole cost and expense, defend (with attorneys acceptable to City) the Indemnitees against any claims, actions, suits in law or equity or other proceedings, whether judicial, quasi-judicial or administrative in nature, arising or resulting from any of the aforementioned events, and to reimburse City for any and all costs and expenses City incurs in providing any such defense, either before, during or after the time Contractor elects to provide such defense, including any and all costs incurred in overseeing any defense to be provided in this Agreement by Contractor. Contractor, upon demand of City, made by and through the City Attorney, shall protect City and appear in and defend the Indemnitees in any claims or actions by third parties, whether judicial, administrative or otherwise, including, but not limited to disputes and litigation over the definitions of "Solid Waste" or "Recyclable Material", the scope of the rights granted in this Agreement, conflicts between the rights granted in this Agreement and rights asserted by other Persons, or the limits of City's authority with respect to the grant of licenses, or agreements, exclusive or otherwise, or asserting rights under the United States or California Constitutions or any federal or State law to provide Solid Waste Collection Services in the City. 118 of 149 DocuSign Envelope ID:12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement THE PROVISIONS OF THIS SECTION SHALL NOT TERMINATE OR EXPIRE, SHALL BE GIVEN THE BROADEST POSSIBLE INTERPRETATION AND SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT. 10.2 Hazardous Substances Indemnification Without regard to any insurance coverage or requirements, and without limiting the above general indemnification obligation in any way, Contractor specifically agrees to and shall, to the maximum extent permitted by law, defend (with counsel acceptable to City), reimburse, indemnify, and hold harmless Indemnitees from and against any and all claims, actions, liabilities, damages, demands, judgments, losses, costs, liens, expenses, suits, actions, attorneys' fees, consultant fees, penalties, and any and all other losses, damages, fees and expenses of whatever kind or nature ("Claims") (including but not limited to response costs, investigative costs, assessment costs, monitoring costs, treatment costs, cleanup costs, removal costs, remediation costs, and similar costs, damages, and expenses)that arise out of or are alleged to arise out of or in any way relate to any action, inaction, or omission of Contractor that; a)results in any demand, claim, notice, order, or lawsuit, asserting that any Indemnitee is liable, responsible,or in any way obligated to investigate,assess, monitor, study, test, treat, remove, remediate, or otherwise cleanup, any Hazardous Contaminant (as defined in this Agreement); or b) relates to material Collected, transported, recycled, processed, treated, or disposed of by Contractor. Contractor's obligations pursuant to this section shall apply, without limitation, to: a) any Claims brought pursuant to or based on the provisions of any Environmental Law; b) any Claims based on or arising out of or alleged to be arising out of the ownership, use, lease, sale, design, construction, maintenance, or operation of Contractor of any Facility; c)any Claims based on or arising out of or alleged to be arising out of the marketing, sale, distribution, storage, transportation, Disposal, processing, or use of any materials recovered by Contractor; and 119 of 149 DocuSlgn Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement d) any Claims based on or arising out of or alleged to be arising out of any breach of any express or implied warranty, representation, or covenant arising out of or in connection with this Agreement. The foregoing indemnity and defense obligations shall apply irrespective of the negligence or willful misconduct of Contractor or any Affiliate of Contractor. For purposes of this section, the term "Hazardous Contaminant" shall mean any Hazardous Substance, any Hazardous Waste, any crude oil or refined or unrefined petroleum product, or any fraction or derivative thereof; and any asbestos or asbestos-containing material. The term "Hazardous Contaminant" shall also include any and all amendments to any referenced statutory or regulatory provisions made before or after the date of execution of this Agreement. THE PROVISIONS OF THIS SECTION SHALL NOT TERMINATE OR EXPIRE, SHALL BE GIVEN THE BROADEST POSSIBLE INTERPRETATION AND SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT. 10.3 Indemnification and Guarantee To the extent authorized by law, Contractor agrees to indemnify and hold harmless City from and against all fines and/or penalties imposed by CalRecycle in the event the source reduction and Recycling goals or any other requirement of AB 939, AB 341, AB 1826, AB 1594, or SB 1383 are not met by City with respect to the waste stream Collected under this Agreement. Contractor warrants and represents that it is familiar with City's waste characterization study as set forth in City's Source Recovery and Recycling Element (SRRE), and that it has the ability to and shall provide sufficient programs and services to ensure City will meet or exceed the Diversion requirements (including,without limitation, amounts of Solid Waste to be diverted, time frames for Diversion, and any other requirements) set forth in AB 939, AB 341, AB 1826, AB 1594, or SB 1383, with respect to that portion of the Solid Waste generated in City that is the subject of this Agreement. 10.4 Insurance Contractor shall procure and maintain during the entire Term of this Agreement the following types of insurance, and shall maintain the following minimum levels of coverage, which shall apply to any claims which may arise from or in connection with Contractor's performance hereunder or the actions or inactions of any of Contractor's officers, agents, representatives, employees, or subcontractors in connection with Contractor's performance. The insurance 120 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E874OAE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement requirements hereunder in no way limit Contractor's various defense and indemnification obligations, or any other obligations as set forth in this Agreement. a)Minimum Scope of Insurance. Coverage shall be at least as broad as: 1) The most recent editions of Insurance Services Office Commercial General Liability coverage ("occurrence" form CG 00 01). 2) The most recent editions of Insurance Services Office form number CA 00 01 covering Automobile Liability, code 1 "any auto" and endorsement CA 00 25. 3) Workers' Compensation insurance as required by the Labor Code of the State of California and Employers Liability insurance. b)Minimum Limits of Insurance. Contractor shall maintain in force for the term of this Agreement limits no less than the greater of the following, or all the insurance coverage and/or limits carried by or available to Contractor: 1. Comprehensive General Liability: Ten Million Dollars ($10,000,000) limit aggregate and Ten Million Dollars ($10,000,000) limit per occurrence for bodily injury, death and property damage. 2. Automobile Liability: Ten Million Dollars ($10,000,000) combined single limit per accident for bodily injury, death, and property damage. 3. Workers' Compensation and Employers Liability: Workers' compensation limits as required by the Labor Code of the State of California or provide evidence of State approval to be self-insured. 4. Employer's Liability: $2,000,000 per accident for bodily injury or disease. c)Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions with respect to City, its officials, employees, and agents; or Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses. d) Other Insurance Provisions. The policies are to contain, or be endorsed to contain, the following provisions: 121 of 149 DocuSign Envelope ID: 12E0B732-91-GE-4EE7-AF91-38E8/4UAttid2 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 1. General Liability and Automobile Liability Coverages i) City, its elected and appointed boards, commissions, officers, employees, agents,and volunteers(collectively, "Insureds") are to be named as additional insureds with respect to: liability arising out of activities performed by or on behalf of Contractor; products and completed operations of Contractor; Premises owned, leased, or used by Contractor; or vehicles owned, leased, hired, or borrowed by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to Insureds. ii) Contractor's insurance coverage shall be primary insurance with respect to Insureds. Any insurance or self-insurance maintained by Insureds shall be excess of Contractor's insurance and shall not contribute with it. iii) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to Insureds. iv) Coverage shall state that Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 2. Workers' Compensation and Employers Liability Coverage - The insurer shall agree to waive all rights of subrogation against Insureds for losses arising from work performed by Contractor for City. e) Acceptability of Insurers. The insurance policies required by this section shall be issued by an insurance company or companies authorized to do business in the State of California and with a rating in the most recent edition of Best Insurance Reports of size category VII or larger and a rating classification of A or better. f)Verification of Coverage. Contractor shall furnish City with certificates of insurance and with original endorsements affecting coverage required by this clause. The certificates and endorsements for each insurance policy are to be signed by a Person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be on forms provided by or acceptable to City and are to be received and approved by City before work commences. City reserves the right to require complete, certified copies of all 122 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement required insurance policies, at any time. Renewal certificates shall be furnished periodically to City to demonstrate maintenance of the required coverage throughout the Term. g)Companies and Subcontractors. Contractor shall include all Companies and subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each Contractor and subcontractor. All coverages for Companies and subcontractors shall be subject to all of the requirements stated in this Agreement. h) Required Endorsements 1. The Workers' Compensation policy shall contain an endorsement in substantially the following form: i) Thirty (30) days' prior written notice by certified mail, return receipt requested, shall be given to City in the event of cancellation, reduction in coverage, or non-renewal of this policy. Such notice shall be sent to: City Manager City of Orange 300 E. Chapman Ave. Orange, CA 92866 2. The General Liability policy shall contain endorsements in substantially the following form: i) Thirty (30) days' prior written notice shall be given to City in the event of cancellation, reduction in coverage, or non-renewal of this policy. Such notice shall be sent to: City Manager City of Orange 300 E. Chapman Ave. Orange, CA 92866 ii) "This policy shall be considered primary insurance with respect to any other valid and collectible insurance maintained by City, including any self-insured retention or program of self-insurance, and any other such insurance shall be considered excess insurance only." 123 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement iii) "Inclusion of City as an insured shall not affect City's rights with respect to any claim, demand, suit or judgment brought or recovered against Contractor. This policy shall protect Contractor and City in the same manner as though a separate policy had been issued to each, but this shall not operate to increase Contractor's liability as set forth in the policy beyond the amount shown or to which Contractor would have been liable if only one party had been named as an insured." i)Other Insurance Requirements 1. In the event any services are delegated to another company or subcontractor, Contractor shall require such Contractor or subcontractor to provide statutory workers' compensation insurance and employer's liability insurance for all of the Contractor or subcontractor's employees engaged in the work in accordance with this Section 10.4. The liability insurance required by this Section 10.4 shall cover all Contractor or subcontractors or the Contractor or subcontractor must furnish evidence of insurance provided by it meeting all of the requirements of this Section 10.4. 2. Contractor shall comply with all requirements of the insurers issuing policies. The carrying of insurance shall not relieve Contractor from any obligation under this Agreement. If any claim exceeding the amount of any deductibles or self-insured reserves is made by any third Person against Contractor or any Contractor or subcontractor on account of any occurrence related to this Agreement, Contractor shall promptly report the facts in writing to the insurance carrier and to City. If Contractor fails to procure and maintain any insurance required by this Agreement, City may take out and maintain, at Contractor's expense, such insurance as it may deem proper and deduct the cost thereof from any moneys due Contractor. 10.5 Faithful Performance Bond Concurrently with execution of this Agreement, Contractor shall deliver to City a performance bond in the sum of the amount of Seven Hundred Fifty Thousand Dollars ($750,000), from a surety and in a form acceptable to City Attorney, which secures the faithful performance of this Agreement, including, without limitation, payment of any penalty and the funding of any work to cure a breach of this Agreement, unless such requirement is waived by the City 124 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement Manager or designee.The bond shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his/her power of attorney. The bond shall be unconditional and remain in force during the entire term of the Agreement and shall be null and void at the conclusion of the term of this Agreement only if the Contractor promptly and faithfully performs all terms and conditions of this Agreement. 10.6 Faithful Performance Letter of Credit In addition to the bond as noted in Section 10.5, Contractor shall furnish an irrevocable letter of credit in the amount of Seven Hundred Fifty Thousand Dollars ($750,000), from a financial institution acceptable to the City and in a form acceptable to the City Attorney as security for the performance of this Agreement (the "LOC"). The LOC shall be the sole responsibility of Contractor and shall be released within thirty (30) days after both (i) the expiration of the term of this Agreement, or upon the earlier termination of this Agreement; and (ii) Contractor's satisfactory performance of all obligations hereunder. 10.7 Forfeiture of Performance Bond In the event Contractor shall for any reason become unable to, or fail in any way to, perform as required by this Agreement, City may declare a portion or all of the performance bond which is necessary to recompense and make whole the City forfeited to the City. Upon partial or full forfeiture of the performance bond, Contractor shall restore the performance bond to its face amount, or provide a new bond, within thirty (30) days of the City's declaration. Failure to restore the performance bond to its full amount, or provide a new bond in the full amount, within thirty (30) days shall be a material breach of the Agreement. 10.8 Forfeiture of Letter of Credit Thirty (30) days following City providing Contractor with written notice of its failure to pay City any amount owing under this Agreement, the LOC may be drawn upon by City for purposes including, but not limited to: a)Payment of sums due under the terms of this Agreement which Contractor has failed to timely pay to City. b) Reimbursement of costs borne by City to correct violations of this Agreement not corrected by Contractor, including but not limited to the liquidated damages described in Section 12.3. 125 of 149 UocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement City may draw upon the entire LOC and convert it to a cash deposit if Contractor fails to cause the LOC to be extended or replaced with another satisfactory letter of credit no later than sixty (60) days prior to its expiration during the term of this Agreement. 10.9 Performance Security Beyond Service Term Some Agreement requirements extend beyond the Term of this Agreement and other requirements, such as minimum Diversion rates per Section 4.2.5, will not be substantiated until after the final service date. Therefore, the Contractor shall not terminate the performance bond or letter of credit and will renew them to ensure continuous availability to the City, until receiving a written release from the City. Permission from the City to discontinue holding these performance securities does not relieve Contractor of payments to the City that may be due or may become due. 126 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-3SES(4UAESS2 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 11. CITY'S RIGHT TO PERFORM SERVICE 11.1 General In the event that Contractor,for any reason whatsoever,fails, refuses, or is unable to Collect, Recycle, process, transport, or dispose of any or all Solid Waste as required by this Agreement, at the time and in the manner provided in this Agreement, for a period of more than forty-eight (48) hours, and if, as a result thereof, Solid Waste should accumulate in City to such an extent, in such a manner, or for such a time that such accumulation endangers or menaces the public health, safety, or welfare, then City shall have the right, but not the obligation, (1)to perform, or cause to be performed, such services itself with its own or other personnel without liability to Contractor; and/or (2) to take possession of any or all of Contractor's land, equipment and other property used or useful in the Collection and transportation of Solid Waste, and to use such property to Collect and transport any Solid Waste generated within City which Contractor would otherwise be obligated to Collect, transport and properly dispose of or process pursuant to this Agreement. Notice of City's determination to effect its rights under this section may be given orally by telephone to Contractor at its principal office and shall be effective immediately. Written confirmation of such oral notification shall be sent to Contractor within twenty-four (24) hours of the oral notification. Contractor further agrees that in such event: a)It will take direction from City to effect the transfer of possession of equipment and property to City for City's use,or for use by any Person or entity designated by the City. b) It will, if City so requests, keep in good repair and condition all such equipment and property, provide all motor vehicles with fuel, oil and other service, and provide such other service as may be necessary to maintain said property in operational condition. c)City may immediately engage all or any personnel necessary or useful for the Collection and transportation of Solid Waste, including, if City so desires, employees previously or then employed by Contractor. Contractor further agrees, if City so requests,to furnish City the services of any or all management or office Personnel employed by Contractor whose services are necessary or useful for Solid Waste Collection, transportation, processing and Disposal operations and for the Billing and Collection of fees for these services. City agrees that it assumes complete responsibility for the proper and normal use of such equipment and facilities while in its possession. 127 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement If the interruption or discontinuance in service is caused by any of the reasons listed in Section 12.4, City shall pay to Contractor the reasonable rental value of the equipment and facilities, possession of which is taken by City, for the period of City's possession, if any, which extends beyond the period of time for which Contractor has rendered Bills in advance of service, for the class of service involved. If the interruption or discontinuance in service is caused by any other reason, regardless of City's implementation of options under this Agreement, City may consider this a default. 11.2 Billing and Compensation to City During City's Possession Contractor agrees that it shall reimburse City for any and all costs and expenses incurred by City beyond that billed and received by City in taking over possession of the above-mentioned equipment and property for Solid Waste service in such manner and to an extent as would otherwise be required of Contractor under the terms of this Agreement.Such reimbursement shall be made from time to time after submission by City to Contractor of each statement listing such costs and expenses, but in no event later than five(5)working days from and after each such submission. 11.3 City's Right to Relinquish Possession It is further mutually agreed that City may at any time at its discretion relinquish possession of any or all of the above-mentioned property to Contractor and thereupon demand that Contractor resume the Solid Waste Collection Services as provided in this Agreement, whereupon Contractor shall be bound to resume the same. 11.4 City's Possession Not A Taking It is expressly agreed between the Parties that City's exercise of its rights under this section 1) does not constitute a taking of private property for which compensation must be paid, (2) shall not create any liability on the part of City to Contractor, and (3) does not exempt Contractor from any of the indemnity and insurance provisions of this Agreement, which are meant to extend to circumstances arising under this section provided that Contractor is not required to indemnify City against claims and damages arising from the sole negligence of City, its elective and appointive boards, commissions, officers, employees, and agents in the operation of Collection Vehicles during the time City has taken possession of such vehicles. 128 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 11.5 Duration of City's Possession City's right pursuant to this section to retain temporary possession of Contractor's facilities and equipment, and to render Collection services, shall terminate when City determines that such services can be resumed by Contractor, or when City no longer reasonably requires such property or equipment. In any case, City has no obligation to maintain possession of Contractor's property or equipment and/or continue its use for any period of time and may at any time, in its sole discretion, relinquish possession to Contractor. 129 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 12. DEFAULT, REMEDIES AND LIQUIDATED DAMAGES 12.1 Events of Default All provisions of the Franchise and this Agreement to be performed by Contractor are considered material. Each of the following shall constitute an event of default by the Contractor. a)Fraud or Deceit or Misrepresentation. If the Contractor engages in, or attempts to practice, any fraud or deceit upon City or makes a misrepresentation regarding material information to City. b) Insolvency or Bankruptcy. If Contractor becomes insolvent, unable, or unwilling to pay its debts,files a bankruptcy petition,or takes steps to liquidate its assets. c)Failure to Maintain Coverage. If Contractor fails to provide or maintain in full force and effect the Workers' Compensation, liability, or indemnification coverage as required by this Agreement. d) Violations of Regulation. If Contractor violates any orders or filings of any regulatory body having jurisdiction over Contractor relative to this Agreement, provided that Contractor may contest any such orders or filings by appropriate proceedings conducted in good faith, in which case no breach of the Franchise and this Agreement shall be deemed to have occurred until a final decision adverse to the Contractor is entered. e)Failure to Perform. If Contractor ceases to provide all or a portion of the Collection, processing or Recycling services, or any other Solid Waste Handling Services as required under this Agreement for a period of two (2) consecutive days or more,for any reason within the control of Contractor. f)Failure to Pay. If Contractor fails to make any payments required under this Agreement and/or refuses to provide City,within ten (10) days of the demand, with required information, reports, and/or records in a timely manner as provided for in the Agreement. g)Failure to Cooperate with Audits. Failure to complete, perform, or cooperate with any audit as described by this Agreement. 130 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement h) Failure to Submit Reports or Documentation. Failure to complete or to provide required reports or documents to City as required by this Agreement i)Acts or Omissions. 1. Any act or omission by Contractor relative to the services provided under this Agreement which violates the terms, conditions, or requirements of this Agreement, or AB 939, or any law, statute, ordinance, order, directive, rule, or regulation issued pursuant to AB 939 shall constitute a default by the Contractor. Any failure to correct or remedy any such violation within the time set in the written notice of the violation or, if Contractor cannot reasonably correct or remedy the breach within the time set forth in such notice, if Contractor should fail to commence to correct or remedy such violation within the time set forth in such notice and diligently effect such correction or remedy thereafter shall constitute a default by Contractor. 2. Any situation in which Contractor or any of its officers, directors or employees are found guilty of any crime related to the performance of this Agreement, or of any crime related to anti-trust activities, illegal transport or Disposal of hazardous or toxic materials, or bribery of public officials shall constitute a default by Contractor. The term "found guilty" shall be deemed to include any judicial determination that Contractor or any of Contractor's officers, directors, or employees is guilty as well as any admission of guilt by Contractor or any of Contractor's officers, directors, or employees including, but not limited to, the plea of "guilty", "nolo contendere", "no contest", and "guilty to a lesser charge." j)False or Misleading Statements.Any representation or disclosure made to City by Contractor in connection with or as an inducement to entering into this Agreement, or any future amendment to this Agreement, which proves to be false or misleading in any material respect as of the time such representation or disclosure is made, whether or not any such representation or disclosure appears as part of this Agreement k) Attachment. The seizure of, attachment of, or levy on, the operating equipment of Contractor, including, without limits, its equipment, maintenance or office facilities, or any part of its equipment or facilities. I)Suspension or Termination of Service. Any termination or suspension of the transaction of business by Contractor, including, without limitation, due to 131 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E874UAE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement labor unrest including strike, work stoppage or slowdown, sick-out, picketing, or other concerted job action lasting more than two (2) consecutive days. m) Failure to Provide Assurance of Performance. If Contractor fails to provide reasonable assurances of performance as required under Section 12.6. n) Commingling of Recyclables with Refuse/Landfilling of Recyclables. If Contractor empties Containers of properly set out Recyclable Materials or Organic Waste into a Refuse load or transports Recyclable Materials or Organic Waste to a landfill or other location at which the material will not be diverted from landfilling. o) Failure to Meet Section 4.2.5 Diversion Goal. Failure to meet the minimum Diversion requirements identified in Section 4.2.5 for two consecutive calendar years. p) CalRecycle Compliance Issues. CalRecycle issues a compliance order or assesses a penalty against City in regard to compliance with AB 939. Contractor shall have forty-eight (48) hours from the time it is given notification by City to cure any default arising under subsections e, f, g, h, k, I, m and n provided, however,that City shall not be obligated to provide Contractor with a notice and cure opportunity if Contractor has committed the same or similar breach within a twenty-four (24) month period. It is expressly understood that Contractor is not entitled to receive notice of default, or to cure such default,with respect to those matters listed in subsections a, b, c, d, i,j, I, o and p above. 12.2 Right to Terminate Upon Default and Right to Specific Performance If Contractor commits a material breach, including specifically any of the matters listed in subsections a through p of Section 12.1 above (and, if permitted to cure, does not cure it within forty-eight (48) hours), City shall be entitled to unilaterally terminate this Agreement or impose other such sanctions (which may include financial sanctions, temporary suspensions, or any other conditions it deems appropriate short of termination) as it shall deem proper. Should City decide to terminate this Agreement upon a default by Contractor, City shall have the right to do so upon giving ten (10) days' notice to Contractor, and shall not be required to take any further action (such as holding any hearing, bringing any suit,or taking any other action). City's rights to terminate this Agreement and to take possession of Contractor's Facility and/or equipment are not exclusive, and City's termination of this Agreement shall not 132 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement constitute an election of remedies. Instead, such remedies shall be in addition to any and all other legal and equitable rights and remedies which City may have. City, acting through its City Manager or designee, reserves the right to terminate this Agreement for any reason giving ninety (90) days written notice of intent to terminate to Contractor. Contractor shall cease work on the 90th day after receiving notice, unless the notice provides otherwise. Should City terminate this Agreement, City shall pay Contractor for services satisfactorily provided and all allowable reimbursements insured to the date of termination in compliance with this Agreement, unless such termination shall be for cause, in which event the City may withhold any disputed compensations. City shall not be liable for any claim of lost profits. By virtue of the nature of this Agreement, the urgency of timely continuous and high-quality service, the time required to effect alternative service, and the rights granted by City to Contractor, the remedy of damages for a breach of this Agreement by Contractor is inadequate and City shall be entitled to seek injunctive relief and/or specific performance of any breach of this Agreement. 12.3 Liquidated Damages General. City finds, and Contractor agrees, 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 breach by Contractor of certain specific obligations under this Agreement. 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 the services that are the subject of this Agreement 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 specific breaches, and other remedies are, at best, a means of future correction and not remedies which make the public whole for past breaches. Service Performance Standards; Liquidated Damages for Failure to Meet Standards. The parties further acknowledge that consistent, reliable Solid Waste Handling Service is of utmost importance to City and that City has considered and relied on Contractor's representations as to its quality of service commitment in entering this Agreement with it. The Parties further recognize that some quantified standards of performance are necessary 133 of 149 DocuSign Envelope ID: 12E0B732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement and appropriate to ensure consistent and reliable service and performance. The Parties further recognize that if Contractor fails to achieve the performance standards, or fails to submit required documents in a timely manner, City and its residents will suffer damages and that it is and will be impractical and extremely difficult to ascertain and determine the exact amount of damages which City will suffer.Therefore, without prejudice to City's right to treat such breaches as an event of default under this Section 12, the Parties agree that the following liquidated damage amounts represent a reasonable estimate of the amount of such damages for such specific breaches, considering all of the circumstances existing on the date of this Agreement, including the relationship of the sums to the range of harm to City that reasonably could be anticipated and the anticipation that proof of actual damages would be costly or impractical. In placing their initials at the places provided, each party specifically confirms the accuracy of the statements made above and the fact that each party has had ample opportunity to consult with legal counsel and obtain an explanation of the liquidated damage provisions at the time that the Agreement was made. DS DS Contractor 4 City Initial Here Initial Here L Contractor agrees to pay or credit by the City's choice (as liquidated damages and not as a penalty) the amounts set forth below: a) Service Reliability 1. For each failure to commence service to a new Customer account within seven (7) days after order: $200.00. 2. For each failure to Collect Solid Waste from any established Customer account on the scheduled Collection day and not make up the Collection within the time allotted per Section 4.6.1.3: $200.00. 3. For each failure to Collect Solid Waste, that has been properly set out for Collection, from the same Customer on two (2) consecutive scheduled pickup days: $200.00. 4. For each calendar day a sweeping route is not completed due to equipment failure or insufficient qualified personnel: $500.00. 5. For each instance in which Contractor receives a rating of ninety (90) or lower pursuant to the Inspection Rating System described in Section 5.3: 500.00. 134 of 149 DocuSign Envelope ID: 12E0B732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 6. For each calendar day a sweeping route does not follow the on-street parking schedule: $500.00. 7. For each calendar day a sweeping route does not start its route on time: 500.00. 8. For each instance when a sweeper is observed to complete its route at a high rate of speed that diminishes the sweeper's effectiveness at vacuuming debris from the street: $500.00. b) Service Quality 1. For each failure to properly return empty Containers to avoid pedestrian or vehicular traffic impediments or to place Containers upright: $200.00. 2. For each occurrence of excessive noise or discourteous behavior: $500.00. 3. For each occurrence of Collecting Solid Waste during unauthorized hours: 500.00. 4. For each failure to clean up Solid Waste spilled from Solid Waste Containers within ninety(90) minutes: $300.00. 5. For each twenty-four(24) hour period after two days that Contractor's GPS system is not operational: $100.00. 6. For each instance Contractor obtains water from the City's water system without using a water meter: $500.00. c)Customer Responsiveness 1. For each failure to initially respond to a Customer complaint within one (1) business day, and for each additional day in which the complaint is not addressed: $300.00. 2. For each failure to process Customer complaints as required by Section 6.2.3: $300.00. 3. For each failure to remove graffiti from Containers, or to replace with Containers bearing no graffiti,within two(2) business days of request from City or Customer: $100.00 per day. 135 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 4. For each failure to repair or replace a damaged or missing Container within two (2) business days of request from City or Customer: $100.00 per day. 5. For each failure to process a claim for damages within thirty(30) days from the date submitted to Contractor: $200.00. 6. For each additional thirty (30) day increment of time in which Contractor has failed to resolve a claim for damages within thirty (30) days from the claim date: $200.00. 7. For each day the Contractor fails to have the customer online platform operational and available to the public: $1,000 per day. d) Diversion Efforts 1. For every Organic Waste Cart Collected as Refuse without issuing a red tag per Section 4.2.3: $100.00 per Cart. e) Timeliness of Submissions to City. Any report shall be considered late until such time as a correct and complete report is received by City. For each calendar day a report is late, the daily liquidated damage amount shall be: 1. Monthly Reports: $200.00. 2. Annual Reports: $400.00. f)Accuracy of Billing. For each Customer invoice that is not prepared in accordance with the City's approved rate schedule: $50.00. g)Cooperation with Service Provider Transition 1. For each day routing information requested by City in accordance with Section 13.7 (or Section 4.11or Section 4.6.9) is received after City- established due dates, both for preparation of a request for proposals and for new service provider's implementation of service: $2,000.00 per day. 2. For each day delivery of keys, access codes, remote controls, or other means of access to Solid Waste Containers is delayed beyond one (1) day prior to new service provider servicing Customers with access issues, as described in Section 13.7: $2,000.00 per day. 136 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 3. For delay in not meeting the requirements contained in Section 13.7 (or Section 4.11or Section 4.6.9) in a timely manner, in addition to the daily liquidated damages for breach under g)1 and g)2 above, liquidated damages of: $100,000.00. h) General Agreement Adherence. For each day that Contractor fails to provide services required under the Agreement, or comply with terms of the Agreement, within five (5) business days after receipt of written notification from City that such services are not being provided or terms are not being met: 300.00. 1. City may determine the occurrence of events giving rise to liquidated damages through the observation of its own employees or representative or investigation of Customer complaints. Prior to assessing liquidated damages, City shall give Contractor notice of its intention to do so. The notice will include a brief description of the incident(s)/non-performance. Contractor may review (and make copies at its own expense) all information in the possession of City relating to incident(s)/non- performance. Contractor may, within ten (10) days after receiving the notice, request a meeting with City. Contractor may present evidence in writing and through testimony of its employees and others relevant to the incident(s)/non-performance. City will provide Contractor with a written explanation of its determination on each incident(s)/non-performance prior to authorizing the assessment of liquidated damages.The decision of City shall be final. i)Amount. City may assess liquidated damages for each calendar day or event, as appropriate, that Contractor is determined to be liable in accordance with this Agreement. j)Timing of Payment. Contractor shall pay any liquidated damages assessed by City within ten (10) business days after they are assessed. If they are not paid within the ten (10) business day period, City may proceed against the performance bond required by the Agreement or find Contractor in default and terminate this Agreement pursuant to Section 12.2, or both. 12.4 Excuse from Performance The Parties shall be excused from performing their respective obligations hereunder in the event they are prevented from so performing by reason of floods, earthquakes, other natural 137 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement disasters, war, civil insurrection, riots, acts of any government (including judicial action), and other similar catastrophic events which are beyond the control of and not the fault of the party claiming excuse from performance hereunder. Labor unrest, including, but not limited to, strike, work stoppage or slowdown, sick-out, picketing, or other concerted job action conducted by Contractor's employees or directed at Contractor is not an excuse from performance and Contractor shall be obligated to continue to provide service notwithstanding the occurrence of any or all of such events. The party claiming excuse from performance shall, within two (2) days after such party has notice of such cause, give the other party notice of the facts constituting such cause and asserting its claim to excuse under this section. The interruption or discontinuance of Contractor's services caused by one or more of the events excused shall not constitute a default by Contractor under this Agreement. Notwithstanding the foregoing, however, if Contractor is excused from performing its obligations hereunder for any of the causes listed in this section for a period of seven (7) days or more, City shall nevertheless have the right, in its sole discretion, to terminate this Agreement by giving ten (10) days' notice, in which case the provisions relative to taking possession of Contractor's land, equipment and other property and engaging Contractor's Personnel in Section 11 and this Section 12 will apply. 12.5 Notice, Hearing and Appeal of City Breach Administrative Hearing. Should Contractor contend that City is in breach of any aspect of this Agreement, it shall give notice to the City Manager or designee requesting an administrative hearing on the allegation. A hearing officer shall be appointed by the City Manager or designee, and the hearing shall occur as soon as reasonably possible, or on such date as mutually agreed by the City Manager or designee and Contractor. The hearing officer shall make an advisory ruling on Contractor's allegations and suggest a remedy if a breach by City is determined to exist. The hearing officer's ruling shall be advisory only. Each Party shall accept or reject the hearing officer's ruling within thirty (30) days. Other Remedies; Claims. Contractor shall be entitled to all available remedies in law or equity for City's breach of this Agreement; provided, however, Contractor shall not file or otherwise commence any action against City, in law or equity, in any court, until after an administrative hearing as set forth above has been completed, and the above noted thirty (30) day period to accept the hearing officer's decision has passed, or either City or Contractor has given timely written notice to the other that it will not accept the hearing officer's decision. Actions for Damages. As a prerequisite to the filing and maintenance of any action for damages by Contractor against City arising out of this Agreement, Contractor shall present a 138 of 149 DocuSign Envelope ID: 12E0B732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement claim to City, as required by Government Code section 910 et seq, within thirty (30) days of the date of the occurrence giving rise to the claim for damages. 12.6 Assurance of Performance City may, at its option and in addition all other remedies it may have, demand from Contractor reasonable assurances of timely and proper performance of this Agreement, in such form and substance as City may require. If Contractor fails or refuses to provide satisfactory assurances of timely and proper performance in the form and by the date required by City, such failure or refusal shall be an event of default. 139 of 149 DocuSign Envelope ID: 12E0B732-9FGE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 13. OTHER AGREEMENTS OF THE PARTIES 13.1 Relationship of Parties The Parties intend that Contractor shall perform the services required by this Agreement as an independent contractor engaged by City and not as an officer or employee of City nor as a partner of or joint venture with City. No employee or agent or Contractor shall be or shall be deemed to be an employee or agent of City. Except as expressly provided in this Agreement, Contractor shall have the exclusive control over the manner and means of conducting the Solid Waste Handling Services performed under this Agreement, and all Persons performing such services. Contractor shall be solely responsible for the acts and omissions of its officers, employees, Affiliates, contractors, subcontractors, and agents. Neither Contractor nor its officers, employees, Affiliates, contractors, subcontractors, and agents shall obtain any rights to retirement benefits, workers' compensation benefits, or any other benefits which accrue to City employees by virtue of their employment with City. 13.2 Governing Law This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California. 13.3 Jurisdiction and Venue Except for those matters where Federal Courts have exclusive jurisdiction, any lawsuits between the Parties arising out of this Agreement shall be brought and concluded in the courts of the State of California, which shall have exclusive jurisdiction over such lawsuits. Venue for any dispute shall be in Orange County, California. 13.4 Assignment Except as may be provided for in Section 11, Contractor shall not assign its rights, nor delegate, subcontract or otherwise transfer its obligations under this Agreement(collectively referred to as an "assignment")to any other Person without the prior written consent of City. Any such assignment made without the consent of City shall be void and the attempted assignment shall constitute a material breach of this Agreement. For purposes of this section the term "assignment" shall be given the broadest possible interpretation, and shall include, but not be limited to (i) a sale, exchange, or other transfer of substantially all of Contractor's assets dedicated to service under this Agreement to a third party; (ii) a sale, exchange, or other transfer of outstanding common stock of Contractor to a third party provided said sale, exchange, or transfer may result in a change of control of 140 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement Contractor; (iii) any dissolution, reorganization, consolidation, merger, re-capitalization, stock issuance or re-issuance, voting trust, pooling agreement, escrow arrangement, liquidation, or other transaction which results in a change of ownership or control of Contractor; (iv) any assignment by operation of law, including those resulting from mergers or acquisitions by or of Contractor or any of its Affiliates, insolvency or bankruptcy, making assignment for the benefit of creditors, writ of attachment for an execution being levied against this Agreement,appointment of a receiver taking possession of Contractor's property, or transfer occurring in the event of a probate proceeding; and (v) any combination of the foregoing (whether or not in related or contemporaneous transactions) which has the effect of any such transfer or change of ownership, or change of control of Contractor. Contractor acknowledges that this Agreement involves rendering a vital service to City's residents and businesses, and that City has selected Contractor to perform the services specified in this Agreement based on (1) Contractor's experience, skill, and reputation for conducting its Solid Waste Handling Services in a safe, effective, and responsible fashion, at all times in keeping with applicable Environmental Laws, regulations, and best Solid Waste management practices, and (2) Contractor's financial resources to maintain the required equipment and to support its indemnity obligations to City under this Agreement. City has relied on each of these factors, among others, in choosing Contractor to perform the services to be rendered by Contractor under this Agreement. If Contractor requests City's consideration of and consent to an assignment, City may deny or approve such request in its sole and absolute discretion. Any request for an assignment must be approved by the City Manager or designee, and no request by Contractor for consent to an assignment need be considered by City unless and until Contractor has met (or with respect to matters that would only occur upon completion of the assignment if approved, made reasonable assurances that it will meet) the following requirements: a) Contractor shall pay City its reasonable expenses for attorney's fees and investigation costs necessary to investigate the suitability of any proposed assignee, and to review and finalize any documentation required as a condition for approving any such assignment. An advance payment towards expenses may be requested by City prior to City consideration of any assignment request and Contractor shall be responsible to pay all costs incurred by City in considering a request for assignment, including those in excess of the aforesaid deposit amount, regardless of whether City consents to the assignment. b) Contractor shall pay the City a transfer fee equal to one percent (1%) of the Gross Receipts it, or its assignee, will receive during the remaining term of the Agreement, as estimated by City. 141 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement c)Contractor shall furnish City with audited financial statements for itself, and the proposed assignee's operations for the immediately preceding three (3) operating years. d) A proforma financial statement (income statement and balance sheet)for the proposed assignee with the projected results of operations assuming that the assignment is completed. Such proforma financial statement shall reflect any debt to be incurred by the assignee as part of the acquisition of Contractor's operations. e) Contractor shall furnish City with satisfactory proof: (i) that the proposed assignee has at least ten (10)years of Solid Waste management experience on a scale equal to or exceeding the scale of operations conducted by Contractor under this Agreement; (ii) that in the last five (5)years, the proposed assignee has not suffered any significant citations or other censure from any Federal, State, or local agency having jurisdiction over its Solid Waste management operations due to any significant failure to comply with State, Federal, or local Environmental Laws and that the assignee has provided City with a complete list of any such citations and censures; (iii) that the proposed assignee has at all times conducted its operations in an environmentally safe and conscientious fashion; (iv)that the proposed assignee conducts its Solid Waste management practices in accordance with sound Solid Waste management practices in full compliance with all Federal, State, and local laws regulating the Collection and Disposal of Solid Waste including Hazardous Substances; and, (v) of any other information required by City to ensure the proposed assignee can fulfill the terms of this Agreement in a timely, safe, and effective manner. Under no circumstances shall City be obliged to consider any proposed assignment by City if Contractor is in default at any time during the period of consideration. Should City consent to any assignment request, such assignment shall not take effect until all conditions relating to City's approval have been met. 13.5 Contracting or Subcontracting Contractor shall not engage any contractors or subcontractors for the Collection of Solid Waste. 142 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 13.6 Binding on Assigns The provisions of this Agreement shall inure to the benefit to and be binding on the permitted assigns (if any) of the Parties. 13.7 Cooperation in Preparation for Termination or Expiration of Agreement Prior to, and at the end of the Term or in the event this Agreement is terminated for cause prior to the end of the Term, Contractor shall cooperate fully with City and any subsequent Solid Waste enterprise City designates to assure a smooth transition of Solid Waste Handling Services. Contractor's cooperation shall include, but not be limited to, providing route lists, Billing information, and other operating records needed to service all Premises covered by this Agreement.The failure to cooperate with City following termination shall be conclusively presumed to be grounds for specific performance of this covenant and/or other equitable relief necessary to enforce this covenant. Contractor shall provide a new service provider with all keys, security codes, and remote controls used to access garages and Bin enclosures. Contractor shall be responsible for coordinating transfer immediately after Contractor's final pickups, so as not to disrupt service. Contractor shall provide City with detailed route sheets containing service names and addresses, Billing names and addresses, monthly rate and service levels (number and size of Containers and pickup days) at least ninety (90) days prior to the transition date, and provide an updated list two weeks before the transition and a final list of changes the day before the transition. Contractor shall provide means of access to the new service provider at least one 1) full business day prior to the first day of Collection by another party, and always within sufficient time so as not to impede in any way the new service provider from easily servicing all Containers. 13.8 Parties in Interest Nothing in this Agreement, whether express or implied, is intended to confer any rights on any Persons other than the Parties to it and their representatives, successors, and permitted assigns. 13.9 Waiver The waiver by either party of any breach or violation of any provisions of this Agreement shall not be deemed to be a waiver of any breach or violation of any other provision nor of any subsequent breach of violation of the same or any other provision. The subsequent acceptance by either Party of any moneys which become due hereunder shall not be deemed 143 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement to be a waiver of any pre-existing or concurrent breach or violation by the other Party of any provision of this Agreement. 13.10 Contractor's Investigation Contractor has made an independent investigation (satisfactory to Contractor) of the conditions and circumstances surrounding the Agreement and the work to be performed by it. 13.11 Condemnation City fully reserves the rights to acquire Contractor's property utilized in the performance of this Agreement, by purchase or through the exercise of the right of eminent domain. This provision is additive, and not intended to alter the rights of the Parties set forth in Section 11. 13.12 Notice All notices, demands, requests, proposals, approvals, consents, and other communications which this Agreement requires, authorizes or contemplates shall be in writing and shall either be personally delivered to a representative of the Parties at the address below, be deposited in the U. S. mail, first class postage prepaid, or sent by email. Either party may change their notice address by notifying the other party in writing. Notices shall be deemed received upon receipt of same or within three (3) days of deposit in the U.S. Mail, whichever is earlier. Notices sent by email shall be sent on letterhead as a portable document (PDF) attachment and followed up with a hard copy via U. S. Mail. Emails shall be sent to an agreed upon and regularly monitored general email address for each Party, and not to an individual. Emails sent at or before 4:00 P.M. on a business day shall be deemed received on the date of the email transmission. Emails sent on a non-business day, or after 4:00 P.M. on a business day, shall be deemed received on the following business day. As it relates to Solid Waste: If to City: Public Works Director City of Orange 300 E. Chapman Ave. Orange, CA 92866 144 of 149 DocuSign Envelope ID: 12EOB732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement If to Contractor: CR&R Incorporated Senior Regional Vice President 11292 Western Avenue Stanton, California 90680 As it relates to Street Sweeping: If to City: Director of Public Works City of Orange 300 E. Chapman Ave. Orange, CA 92866 If to Contractor: CR&R Incorporated Senior Regional Vice President 11292 Western Avenue Stanton, California 90680 13.13 Representatives of the Parties References in this Agreement to the "City" shall mean the City Council and all actions to be taken by City shall be taken by the City Council except as expressly provided in this Agreement. The City Council may delegate, in writing, authority to the City Manager or designee, and/or to other City employees and may permit such employees, in turn, to delegate in writing some or all of such authority to subordinate employees. Contractor may rely upon actions taken by such delegates if they are within the scope of the authority so delegated to them. Contractor shall, by the Effective Date, designate in writing a responsible officer who shall serve as the representative of Contractor in all matters related to the Agreement and shall inform City in writing of such designation and of any limitations upon his or her authority to bind Contractor. City may rely upon action taken by such designated representative as actions of Contractor unless they are outside the scope of the authority expressly delegated to him/her by Contractor as communicated to City. 145 of 149 vocusign Envelope IL): 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 13.14 City Free to Negotiate with Third Parties City may investigate all options for the Collection, transporting, Recycling, processing, and Disposal of Solid Waste for periods during which this Agreement has expired or been terminated. Without limiting the generality of the foregoing, City may solicit proposals from Contractor and from third parties for the provision of Solid Waste Handling Services which are the subject of this Agreement, including without limitation Collection services, Disposal services, Recycling services, Organic Waste services and processing, and any combination thereof, and may negotiate and execute agreements for such services which will take effect upon the expiration or earlier termination of this Agreement pursuant to Section 12.1 or otherwise. 13.15 Compliance with Municipal Code, Local, State and Federal Law Contractor shall be knowledgeable of and comply with the City's municipal code and all local, State, and Federal laws pertaining to the subject matter in this Agreement or in any way regulating the activities undertaken by Contractor or any subcontractor. 13.16 Privacy Contractor shall strictly observe and protect the rights of privacy of Customers. Information identifying individual Customers or the composition or contents of a Customer's waste stream shall not be revealed to any Person, governmental unit, private agency, or company, unless upon the authority of a court of law, by statute, or upon valid authorization of the Customer. This provision shall not be construed to preclude Contractor from preparing, participating in, or assisting in the preparation of waste characterization studies or waste stream analyses which may be required by AB 939. This provision shall not apply to reports or records provided to City pursuant to this Agreement. 13.17 Proprietary Information, Public Records The City acknowledges that a number of the records and reports of Contractor are proprietary and confidential. Contractor is obligated to permit City inspection of its records on demand and to provide copies to City where requested. City will endeavor to maintain the confidentiality of all proprietary information provided by Contractor. Notwithstanding the foregoing, any documents provided by Contractor to City that are public records may be disclosed pursuant to a proper public records request. 146 of 149 uocuSign Envelope ID: 12E08732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 14. MISCELLANEOUS PROVISIONS 14.1 Entire Agreement This Agreement contains the entire integrated agreement and understanding concerning the subject matter in this Agreement and supersedes and replaces any prior negotiations, promises, proposals, and agreements between the Parties, whether written or oral. The Parties acknowledge this document has been executed with the consent and upon the advice of counsel. Each of the Parties acknowledges that no Party or agent or attorney of any other party has made any promise, representation, or warranty, expressed or implied, not contained in this Agreement, to induce the other Party to execute this instrument. 14.2 Section Headings The section headings in this Agreement are for convenience of reference only and are not intended to be used in the construction of this Agreement nor to alter or affect any of its provisions. 14.3 References to Laws All references in this Agreement to laws shall be understood to include such laws as they may be subsequently amended or remodified, unless otherwise specifically provided. 14.4 Interpretation This Agreement, including the exhibits attached hereto, shall be interpreted and construed reasonably and neither for nor against either Party, regardless of the degree to which either Party participated in its drafting. 14.5 Agreement This Agreement may not be modified or amended in any respect except by a writing signed by the authorized Parties. 14.6 Severability If any non-material provision of this Agreement is for any reason deemed to be invalid and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this Agreement which shall be enforced as if such invalid or unenforceable provision had not been contained in this Agreement. 147 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 14.7 Exhibits Each of the Exhibits (Exhibit A through Exhibit F), Appendix Al through A6, and Appendix B, referred to in this Agreement, are an integral part of this Agreement. 14.8 Attorneys' Fees If either Party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to recover its reasonable attorneys'fees and costs.Attorneys'fees shall include attorneys' fees on any appeal, and in addition a Party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. 148 of 149 UocuSign Envelope IL): 12E0B732-9FCE-4EE7-AF91-38E8740AE882 City of Orange Integrated Solid Waste Management and Street Sweeping Agreement 14.9 Signatures IN WITNESS WHEREOF, City and Contractor have executed this Agreement as of the day and year first written above. CITY OF ORANGE ("City") Dated: 2/21/2024 Dated: 2/13/2024 CITY OF ORANGE CR&R INCORPORATED DocuSigned by: DocuSigned by: Oar,uc L r. Stakt v By: '-02088B777A20417. By:SnAr521 Fsa2rda7 Name: Daniel R. Slater Name: David Ronnenberg Title: Mayor Title: President Approved as to form by: p—DocuSigned by: DocuSigned by: kik l totieffa ajbrd, raiitm,tAkv By: '-06DB01F3676E496 By: `—B423A4BA0043462 Name: MiKe Vigliotta Name: Clifford R. Ronnenberg Title: City Attorney Title: Chairman/Chief Executive Officer ATTEST: DocuSigned by: By: DR2RFf)['RARFF43A Name: Pamela Coleman, CMC Title: City Clerk 149 of 149 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 Exhibit A—Initial Maximum Rates—Single-family Residential Residential Service Rate Cart Service-one each refuse,recycling,and green waste cart 95 Gal $ 24.93 per month Cart Service-one each refuse,recycling,and green waste cart 65 Gal $ 23.68.per month Cart Service-one each refuse,recycling,and green waste cart 35 Gal $ 22.44 per month Additional Refuse Cart 4.96_per month Additional Recycling Cart(3 or more) 4.96 per month Additional Green Waste Cart(3 or more) 4.96_per month Additional Special Overage pickup for Automated Cart Customers 9.97 per month Additional Bulky item pickups(in excess of four per year) 30.20_per month Cart Exchange 29.89_ Cart Re-delivery 49.81 Delivery Fee(per set) 31.62 Residential Manure Bin Rates Container Size Monthly Rate(Based on pickups per week) Rats per Sunday 1 2 3 4 5 6 Extra P/U Service 2 yd manure 69.64 102.96 154.43 197.91 235.48 275.33 77.75 n/a 3 yd manure 96.51 139.02 191.44 259.29 314.62 370.25 97.61 n/a DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 Exhibit B-Initial Maximum Rates-Commercial and Multi-family Commercial&Multi-family Rates Container Size Monthly Rate(Based on pickups per week) Rate per Sunday 1 2 3 4 5 6 Extra P/U Service 1.5yd or 3yd Split Bin 117.86 $ 181.58 $ 255.19 $ 330.88 $ 399.62 $ 467.18 $ 131.58 $ 164.47 2yd or 4yd Split Bin 124 79 $ 192.26 $ 270.20 $ 350 34 $ 423 13 $ 494 66 $ 139.33 $ 174 16 2 cubic yd/Compactor 198.42 $ 305.69 $ 429.62 $ 557.04 $ 672.78 $ 786.51 $ 221.54 $ 276.92 3 cubic yard 138 66 $ 213.62 $ 300.22 $ 389 27 $ 470 15 $ 549.62 $ 140 24 $ 232.24 3 cubic yd/Compactor 220 47 $ 339 66 $ 477 36 $ 618 94 $ 747 53 $ 873 90 $ 222 99 $ 278 74 4 cubic yard 152 53 $ 234 99 $ 330 25 $ 428.20 $ 517 16 $ 604 58 $ 114 64 $ 143 30 4 cubic yd/Compactor 242.52 $ 373.63 $ 525 09 $ 680.83 $ 822.29 $ 961.29 $ 182.28 $ 227.85 2 yd Organics 106 07 $ 163 42 $ 229 67 $ 297 79 $ 359 66 $ 420 46 $ 118 43 n/a 3 yd Organics 117.86 $ 181.58 $ 255.19 $ 330 88 $ 399.62 $ 467.18 $ 119.21 n/a 6 Yard 180 26 $ 277 71 $ 390.29 $ 506 05 S 611.19 $ 714.51 $ 135 49 $ 169 36 35G set(1 Trash,1 Recy) $ 24.13 n/a n/a n/a n/a n/a n/a n/a 65G set(1 Trash.1 Recy) $ 25 47 n/a n/a n/a n/a n/a n/a n/a 95G set(1 Trash,1 Recy) $ 26.81 n/a n/a n/a n/a n/a n/a n/a Extra trash cart 15 27 n/a n/a n/a n/a n/a n/a n/a Extra recycle cart 12.98 n/a n/a n/a n/a n/a n/a rVa 35g Foodwaste/Greenwaste cart $ 28 72 $ 57 45 $ 86 17 $ 114.90 $ 143 63 $ 172.35 $ 28 72 n/a 35g Foodwaste/Greenwaste cart $ 37.60 $ 75 22 $ 112.82 $ 150 46 $ 188.06 $ 225.68 $ 37.60 n/a 95g Foodwaste/Greenwaste cart $ 41 80 $ 83 56 $ 125.35 $ 167 13 $ 208.91 $ 250 70 $ 41 80 n/a Commercial&Multi-family Rates Container Size Monthly Rate(Based on pickups per week)Rate per 1 2 3 4 5 6 Extra P/U Locking Bin Svc 5 08 10 14 15 24 20 37 25 44 30 52 nia Scout Truck 28.85 58.44 87.62 116 88 146.13 175.33 n/a Scout-Carts(90%of bin rate) $ 25.96 $ 52 60 $ 78.86 $ 105 19 $ 131 52 $ 157.80 n a Rates for Recycling,Foodwaste and Greenwaste bins will be charged at 85%of the Commercial MSW bin rate Rate Per Service Category Service 3 cubic yard bin-temporary service 185.72 Bin Return Trip Charge 56.52 Bin Re-delivery fee (if bins are pulled for non-pmt) 56.52 Commercial Bulky Item Pickup 43.14 Initial Installation of Hasp for Locking Bin Service 143.86 Emergency Service Rates-one crew and one collection truck 192.13 Bin Cleanings (over one per year) 57.52 Bin Overage Cleanup (following one written warning) 67.82 Commercial Bin Delivery Fee 92.14 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 Exhibit C— Initial Maximum Rates — Roll-off Roll-Off Box Charges Rate Standard Roll-Off Box - Rate per pull, plus disposal 10-yard (up to 4 tons) 677.44 30-yard (up to 4 tons) 564.45 40-yard (up to 4 tons) 594.92 Compactor Roll-Off Box - Rate per pull (excluding rental): 30-yard (up to 4 tons) 671.15 40-yard (up to 4 tons) 686.61 Use in excess of 7 days 43.22 Overweight charge (per ton over 4 tons) 90 32 Roll-Off Box Cleaning (above one per year) 298.29 Roll-Off Box Charges (Continued) Rate Re-delivery/Return Trip Fee 120.01 Special Overweight Collection Charge 949.61 Cost per Ton Processing Above Limit (over 4 tons) 133.06 Delivery Fee 146.77 DocuSign Envelope ID: 12E0B732-9FCE-4EE7-AF91-38E8740AE882 Exhibit D—Initial Maximum Rates —Special Sweeps Street Sweeping-Special Sweeps I Hourly Rate Special Sweep-Emergency Response 198.45 r Special Sweep-Non-emergency Response 132.29 DocuSign Envelope ID:12E0B732-9FCE-4EE7-AF91-38E8740AE882 Exhibit E - Example Rate Adjustment Calculation - Residential Step One:Calculate percentage change in indices A B C Adjustment Factor Index Old Index Value New Index Value Percent Change In Lne Index 1 Labor 1) 28.75 29.50 2.6°'. Fuel 2) 245.45 250.00 1.9'. 3 Equipment 3) 156.78 160.00 21'. Insurance 4) , 146.32 150.00 2.5'. 5 _ Disposal 5) 41.31 42.00 1.7'4 6 All Other 6) , 310.78 320.00 3.0'. Step Two:Determine Components D E F Cost Factor initial Cost TotalCategoryWeightedPercentChangein , , eihied Adjustment Factor Index as%of index from Column 9 Component i61 Component Total ICI Change Line 7( 7 Labor 1) 24.7% 2.6°: 0.64% 8 Fuel 2) 5.7% 1.9% 0.11% 9 Equipment 3) 18.1% 2.1% 0.37% 10 Insurance 4) 0.8% 2.5% 0.02% 11 Disposal 5) 18.6% 1.7% 0.31% 12 All Other 6) 32.1% 3.0%, 0.95% 13 Total 3 100.0': 2.41% Step Three:Apply Percentage Change to Rates G H I J Total Weighted Rate Increase or Adjusted Monthly Line Rate Category Existing Customer Percentage Decrease Rate(Column G Rate Change(Row 13 (Column G x Column F)Column H) Column I) 14 Standard Service-95 Gal 3 24.93 2.41% 5 0.60 S 25.53 15 Standard Service-65 Gal 3 _ 23.68 2.41% S 0.57 $24.25 16 Standard Service-35 Gal 3 22.44 2.41% $ 0.54 S 22.98 17 Extra Refuse 3 4.96 2.41% S 0.12 5 5.08 18 Overage Pickup S 9.97 2.41% S 0.24 5 10.21 19 Additional Bulky 3 30.20 2.41% 3 0.73 5 30.93 20 Cart Exchange 3 29.89 2.41% $ 0.72 5 30.61 21 Cart Re-delivery S 49.81 2.41% 5 1.20 5 51.01 22 Delivery Fee(per sell 5 31.62 2.41% 3 0.76 5 32.38 Step Four.Re-weight Cost Components K L M N 0 Percentage Increase In Cost Cost Component Cost Components Adjustment Factor Index. Cost Component Change as Applied Components Increased Reweighed to Column D 1 to Rate Adjustment (Column K x (Column K+ Equal 100%for Lino Column Ei Column Li Column M( Future Adjustments 23 Labor 1 24.7% 2.6% 0.64% 25.4% 24.8'. 24 Fuel r2, 5.7% 1.9% 0.11'. 5.8': 5.7% 25 Equipment 3, 18.1% 2.1% 0.37% 18.4% 18.0% 26 Insurance r,4, 0.8% 2.55. 0.02'. 0.8% 0.8'. 27 Disposal c 5 18.6% 1.7% 0.31% 18.9% 18.5% 28 All Other ra. 32.1% 3.0% 0.95% 33.1% 32.3% 29 Total 100.0% 102.4% 100.0% 1)Employment Cost Index Agreement btw local haulers and Packaging General Utility Drivers Local Union 396 2)Producer Price Index.WPU0531 not seasonally adjusted,Fuels and related products and power,natural gas'annual!, 3)Producer Price Index,PCU336120336120.Heavy duty truck mfg lannual) 4)Producer Price Index,PCU524-524-.Insurance carriers and related activities(annual) 5)Gate rate at Disposal site 6)Consumer Price Index for All Urban Consumers charged to CUURS49ASA0(annual),All Items In Los Angeles-Long Beach-Anaheim.CA 7)After the first rate adjustment this column comes from Column 0 of the previous year's rate adjustment worksheet DocuSign Envelope ID:12E0B732-9FCE-4EE7-AF91-38E8740AE882 Exhibit F- Example Rate Adjustment Calculation -Commercial and Roll-off Step One:Calculate percentage change in indices A B C Adjustment Factor Index Old Index Value New Index Value Percent Change InLineIndex 1 Labor 1) 28.75 29.50 2.8% Fuel 2) 245.45 250.00 1.9% 3 Equipment 3) 158.78 180 00 2.1% 4 insurance 14) 148.32 150 00 2.5% 5 Disposal 5) 41.31 42.00 1.7% 8 AllOt^er 8) 310.78 320.00 3.0% Step Two:Determine Components D E F Cost Factor Percent Change in Adjustment Factor Index Initial Cost Category WeightedIndex from Column Total Weighted Component(8) as'.of Component ( C) Change Line Total 1.7) Labor 1) 20.7% 2.8'4 0.54% 8 Fuel 2) 8.0% 1.9'; 0.11% 9 Equipment 31 7.7% 2.1'. 0.18% 12 Insurance 4) 0.8% 2.5'. 0.02% I Disposal 5) 21.3% 1.71. 0.38% 12 Al Other 8) 43.4% 3.0'%. 1.29% 13 Total S 100.0% 2.48% Step Three:Apply Percentage Change to Rates G H I J Total Weighted Rate Increase or adjusted Mfonthty Line Rate Category Existing Customer Percentage Decease Rate(Column G+ Rate Change(Row 13 (Column G x Column I(Column F)Column 1141 14 3 yard bin. 1 pickuprwk 5 183.89 2.48% S 4.58 3 188.25 15 3 yard bin,2 pickupu`ek 3 292.38 2.48'. S 7.25 5 299.83 16 3 yard bin,3 pickup/wit 5 414.70 2.48'. S 10.28 3 424.98 17 Std Roll-off,10 yd(up to 4 tons)S 677.44 2.48% 5 16.80 3 694.24 18 Std Roll-off,30 yd(up to 4 tons)5 584.45 2.48% 5 14.00 3 578.45 19 Std Roll-of,40 yd(ttp to 4 tons)5 594.92 2.48'. S 14.75 5 609.87 20 Compactor R'O,30 yd(up to 4 tons} 5 671.15 2.48% 5 16.64 3 687.79 21 Compactor R'O.40 yd pup to 4 tons) S 688.61 2.48'. S 17.03 3 703.84 22 3 yd temp bon 5 185.72 2.48%1 S 4 81 3 190.33 Step Four Re-weight Cost Components K L M H 0 Percentage Increase In Cost Cost Component Cost Components Adjustment Factor ndex Cost Component Change as Appied Components Increased Reweighed to I Column D) to Rate Adjustment (Column K x (Column K+ Equal 100';for Line Column El Cokum L) Column M) Future Adjustments 23 Labor 11) 20.7% 28% 0.5% 21.3% 20.80% 24 Fuel 12) 8.0% 1.9% 0.1'4 8.1% 8.00'. 25 Equipment 13) 7.7% 2.1% 0.2`; 7.9% 7.70% 26 Insurance 14) 0.8% 2.5% 0.0% 0.9". 0.80% 27 Disposal 15) 21.3% 1.7% 0.4''. 21.6% 21.10% 28 Al Other 8) 43.4''. 3.0% 1.3'. 44.7% 43.80% 29 Total 100.0% 102.5% 100.00% 1)Employment Cost Index Agreement btw local haulers and Packaging General Utility Drivers Local Union 396 2)Producer Price Index,WPU0531 not seasonally adjusted,Fuels and related products and power,natural gas(annual) 3)Producer Price Index.PCU336120338120,Heavy duty truck mfg(annual) 4)Producer Price Index.PCU524-524-,Insurance carriers and related activities(annual) 5)Gate rate at Disposal site. 8)Consumer Price Index for Al Urban Consumers changed to CUURS49ASA0 l annual) Al Items in Los Angeles-Long Beach-Anaheim.CA 7)After the first rate adjustment,this cdiumn comes from Column 0 of the previous year's rate adjustment worksheet.