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Agenda Packet - CC - 2009.11.02
CITY G BURUNGAME ,� ,' -D BURLINGAME JUN[6• BURLINGAME CITY HALL 501 PRIMROSE ROAD BURLINGAME, CA 94010 CITY COUNCIL MEETING AGENDA Monday, November 2, 2009 CLOSED SESSION: 6:30 p.m. - Conference Room A a. Conference with Labor negotiator pursuant to Government Code §54957.6(a): City Negotiators: Deirdre Dolan, Jim Nantell, Glenn Berkheimer(IEDA) Employee Organizations: Police Administrators, Police Officers Association 1. CALL TO ORDER— 7:00 p.m.—Council Chambers 2. PLEDGE OF ALLEGIANCE TO THE FLAG 3. ROLL CALL 4. APPROVAL OF MINUTES —Regular Council Meeting of October 19, 2009 5. PUBLIC HEARINGS a. Adoption of Ordinance repealing Chapter 3.48, Civil Service Commission, and Section 3.52.04, Appeal Hearings, and amending Section 3.52.030 of Title 3 of the Burlingame Municipal Code to eliminate the Civil Service Commission b. Appeal of the Planning Commission's denial with prejudice of an application for a conditional use permit for an accessory structure to be used for recreational purposes on property located at 349 Lexington Way 6. PUBLIC COMMENTS—At this time,persons in the audience may speak on any item on the ager 1a or any other matter within the jurisdiction of the Council. The Ralph M.Brown Act(the State local agency open meeting law)prohibits Council from acting on any matter that is not on the agenda. Speakers are requested to fill out a"request to speak"card located on the table by the door and hand it to staff. The Mayor may limit speakers to three minutes each. 1 Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at the Water Office Counter at City Hall located at 501 Primrose Road during norma/business hours. 7. STAFF REPORTS AND COMMUNICATIONS a. Introduce Ordinance for amendments to Title 25 of the Municipal Code, the Zoning Code, to increase the time limit for exercise of variances, conditional use permit, special permit or condominium permit and to amend the time limit for extensions and to amend Chapter 25.57.030 clarify the appeal period for design review applications b. Storm Drainage Capital Improvement Program Implementation update c. Resolution authorizing the formation of the Storm Drainage Program Citizens Oversight Committee d. Appointments to Parks & Recreation Commission e. Appointments to Beautification Commission 8. APPROVAL OF CONSENT CALENDAR a. Resolution of the City Council Approving a Ten-Year Agreement with South Bay Recycling, LLC for the operation of the Shoreway Recycling and Disposal Center b. Resolution accepting 2009 Federal ARRA Grant Street Resurfacing Project-City Project No. 82360 c. Approval of a Resolution approving and authorizing the City Manager to execute a franchise agreement with Recology San Mateo County for recyclable materials, organic materials and solid waste collection services d. Resolution to permanently adopt residential parking permit program e. Request for Young Adult Services Librarian to attend out-of-state conference f. Request from Broadway Merchants to have a Children's Snow Garden on Capuchino Ave. December 5, 2009 g. Resolution to approve 2009 Tourism Business Improvement District annual report and to give notice of intent to levy assessments for the 2010 year h. Securitization of Proposition IA loan to the State of California in the amount of$1.1 million 9. COUNCIL COMMITTEE AND ACTIVITIES REPORTS/AND ANNOUNCEMENTS Council Members report on committees and activities and make announcements. 10. PUBLIC COMMENTS—At this time,persons in the audience may speak on any item on the agenda or any other matter within the jurisdiction of the Council. The Ralph M.Brown Act(the State local agency open meeting law)prohibits Council from 2 Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at the Water Office Counter at City Hall located at 501 Primrose Road during normal business hours. acting on any matter that is not on the agenda. Speakers are requested to fill out a"request to speak"card located on the table by the door and hand it to staff. The Mayor may limit speakers to three minutes each. 11. OLD BUSINESS 12. NEW BUSINESS 13. ACKNOWLEDGMENTS a. Department Reports: Police, September 2009 b. Commission Minutes: Planning, October 13, 2009; Parks and Recreation, October 15, 2009 c. Letter from Comcast regarding account billing d. Letter from AT&T regards programming change 14. ADJOURNMENT Notice: Any attendees wishing accommodations for disabilities please contact the City Clerk at 650 558-7203 at least 24 hours before the meeting. A copy of the Agenda Packet is available for public review at the City Clerk's office,City Hall,501 Primrose Road,from 8:00 a.m.to 5:00 p.m.before the meeting and at the meeting. Visit the City's website at w-wtiv.burl in ag_me_org. Agendas and minutes are available at this site. NEXT REGULAR CITY COUNCIL MEETING—MONDAY, NOVEMBER 16, 2009 3 Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at the Water Office Counter at City Hall located at 501 Primrose Road during normal business hours. CITY 0 BURUNGAME 45-11 YJ. ?. BURLINGAME CITY COUNCIL Unapproved Minutes Regular Meeting of October 19, 2009 1. CALL TO ORDER A duly noticed regular meeting of the Burlingame City Council was held on the above date in the City Hall Council Chambers. Mayor Ann Keighran called the meeting to order at 7:00 p.m. CLOSED SESSION: CA Guinan advised that Council met in closed session with Labor negotiators, gave direction to the Labor negotiators, and were updated on the status of labor negotiations on the following: City Negotiators: Deirdre Dolan, Jim Nantell, Glenn Berkheimer Employee Organizations: AFSCME 829, AFSCME 2190, BAMM, Fire Administration, IAFF 2400, Police Administrators, Police Officers Association, Teamsters Local 856, and Department Head/Unrepresented There was no further reportable action. 2. PLEDGE OF ALLEGIANCE TO THE FLAG Led by Charles Voltz. 3. ROLL CALL COUNCILMEMBERS PRESENT: Baylock, Deal, Keighran, Nagel, O'Mahony COUNCILMEMBERS ABSENT: None 4. MINUTES Councilwoman Nagel made a motion to approve the minutes of the October 5, 2009 regular Council meeting; seconded by Councilman Deal. The motion was approved unanimously by voice vote, 5-0. 5. PRESENTATIONS b. FIRE SAFETY POSTER CONTEST WINNERS FC Dorrell introduced Fire Inspector Julie Parenti, the program leader of the 2009 Fire Prevention Poster Contest. Inspector Parenti, along with Fire Marshal Rocque Yballa, presented the poster awards to the 18 winners representing Roosevelt, St. Catherine of Siena and Our Lady of Angels Schools. 1 Burlingame City Council October 19, 2009 Unapproved Minutes 6. PUBLIC HEARINGS a. PUBLIC HEARING AND APPEAL OF THE PLANNING COMMISSION'S DENIAL WITHOUT PREJUDICE OF AN APPLICATION FOR CONDITIONAL USE PERMIT FOR AN ACCESSORY STRUCTURE TO BE USED FOR RECREATIONAL PURPOSES, ON PROPERTY AT 349 LEXINGTON WAY, LOCATED IN A SINGLE-FAMILY RESIDENTIAL ZONE At the applicant's request, the hearing was postponed until the November 2, 2009 City Council meeting. 7. PUBLIC COMMENTS Mayor Keighran opened the public comments. Burlingame resident, Sarah Groves Hobart, spoke about the historic resource evaluation of her home; Kim Rothschild of Caltrain gave an update on the train horns. There were no further comments from the floor. 8. STAFF REPORTS AND COMMUNICATIONS a. INFORMATION PERTAINING TO CREATING QUIET ZONES (QZ) ALONG THE RAILROAD CORRIDOR IN THE CITY OF BURLINGAME DPW Murtuza reported that due to the large number of complaints concerning the train horn noise the City explored the feasibility of establishing a quiet zone. He stated that the cost to secure a consulting firm to perform a quiet zone feasibility study would be $75,000 to $100.00. DPW Murtuza gave a presentation on the federal laws concerning the sound level of train horns; the criteria for establishing a quiet zone; the costs involved and the liability issue. He concluded that the major issues in establishing quiet zone are funding and liability. There is no funding currently available for this project in the adopted budget and the liability for an incident in a quiet zone could possibly be the responsibility of the City. Council discussion followed concerning the liability issue; perhaps conducting a survey of residents living along or near the rail corridor; the train engineer's degree of sounding the horn; an automatic timer to determine the length of time a horn blows. Mayor Keighran opened the item for public comment and Burlingame resident Tom Feeney spoke about the possibility of establishing a quiet zone. b. RESOLUTION APPROVING A STORM DRAIN FEE DEFERRAL PROGRAM FOR QUALIFYING SENIORS, BLIND AND DISABLED CITIZENS DPW Murtuza reviewed the staff report and provided the criteria required by a homeowner to qualify for the program. Councilwoman O'Mahony made a motion to approve the Resolution No. 92-2009 establishing storm drainage fee deferral program for qualifying seniors, blind and disabled citizens; seconded by Vice Mayor Baylock. The motion was approved unanimously by voice vote, 5-0. 2 Burlingame City Council October 19, 2009 Unapproved Minutes C. INTRODUCTION OF AN ORDINANCE REPEALING CHAPTER 3.48, CIVIL SERVICE COMMISSION, AND SECTION 3.052.04, APPEAL HEARINGS,AND AMENDING SECTION 3.52.030 OF TITLE 3 OF THE BURLINGAME MUNI CIPAL CODE; ADOPTION OF A RESOLUTION AMENDING THE CIVIL SERVICE RULES; AND ADOPTION OF A RESOLUTION DELEGATING THE CITY MANAGER THE AUTHORITY TO DETERMINE INDUSTRIAL DISABILITY OF SAFETY MEM BERS HRD Dolan reviewed the staff report and requested Council introduce an Ordinance to eliminate the Civil Service Commission based the decision of the City Council at the September 8, 2009 Council meeting. Councilwoman Nagel asked who comprises the Ad Hoc Committee Review Board and HRD Dolan said it is comprised of three members, one being from the labor group representing the employee, one from the City, and one is selected by mutual agreement of the two. HRD Dolan requested Council adopt Resolution No. 95-2009 amending the Civil Service rules of the City of Burlingame and adopt Resolution No. 94 -2009 delegating to the City Manager authority to determine industrial disability of safety members. Mayor Keighran requested CC Kearney read the title of the proposed ordinance repealing Chapter 3.48, Civil Service Commission, and section 3.052.04, Appeal Hearings, and amending Section 3.52.030 of title 3 of the Burlingame Municipal Code. Councilwoman O'Mahony made a motion to waive further reading of the proposed ordinance; seconded by Vice Mayor Baylock. The motion was approved unanimously by voice vote, 5-0. Vice Mayor Baylock made a motion to introduce the proposed ordinance; seconded by Councilman Deal. The motion was approved unanimously by voice vote, 5-0. Mayor Keighran requested CC Kearney publish a summary of the proposed ordinance at least five days before proposed adoption. Councilwoman O'Mahony made a motion to approve the Resolution No. 95-2009 amending the civil service rules of the City of Burlingame; seconded by Vice Mayor Baylock. The motion was app--oved unanimously by voice vote, 5-0. Vice Mayor Baylock made a motion to approve Resolution No. 94-2009 delegating the City Manager to determine industrial disability of safety managers; seconded by Councilman Deal. The motion was approved unanimously by voice vote, 5-0. CA Guinan advised that the two Resolutions would not be effective until the Ordinance is adopted by the Council. d. 2009 CITY ACCOMPLISHMENTS CM Nantell reviewed the staff report outlining the City's key accomplishments. Vice Mayor Baylock made a correction to the spelling of Walk of Fame recipient Carl Reyna and corrected the name of the Burlingame Youth Baseball Association. Councilwoman Nagel requested that adoption of the City's Climate Action Plan; eliminating solar permit fees; beginning the green point check lists in the preferential purchasing policy. Councilwoman O'Mahony noted the Trousdale pump station final design as a huge accomplishment and was completed under the initial design estimate. 3 Burlingame City Council October 19,2009 Unapproved Minutes Council directed that distribution of the City Accomplishments be via the water bills, have copies available in all City buildings, and be posted on the website. 9. CONSENT CALENDAR Councilwoman O'Mahony made a motion to approve the Consent Calendar; seconded by Councilwoman Nagel. The motion was approved unanimously by voice vote, 5-0. a. ADOPT A RESOLUTION AWARDING A CONSTRUCTION CONTRACT TO CON- QUEST CONTRACTORS FOR THE BURLINGAME GATE GROVE VILLAGE SUBDIVISION WATER MAIN REPLACEMENT PROJECT DPW Murtuza requested Council adopt Resolution No. 93-2009 granting approval to enter into a construction contract with Con-Quest Contractors for the Burlingame Gate Grove Village subdivisions water main replacement project. Vice Mayor Baylock made a motion to approve item 9a; seconded by Councilman Deal. The motion was approved unanimously by voice vote, 5-0. b. CONSIDER CANCELING DECEMBER 21, 2009 MEETING CC Kearney requested Council consider canceling December 21, 2009 Council meeting. C. APPROVE OUT-OF-STATE TRAVEL FOR FIRE INSPECTOR FC Dorrell requested Council approve out-of-state travel by Christine Reed to Baltimore, MD g. WARRANTS & PAYROLL FinDir Nava requested approval for payment of Warrants #42008-42600 and Visa payments C1078-C1116 duly audited, in the amount of$3,581,503.54; Payroll checks #175133-175298 in the amount of $2,578,326.99 for the month of September 2009. 9. COUNCIL COMMITTEE AND ACTIVITIES REPORTS AND ANNOUNCEMENTS Council reported on various events and committee meetings each of them attended on behalf of the City. 10. PUBLIC COMMENTS There were no comments. 11. OLD BUSINESS Councilwoman Nagel requested that the issue of recycling at major events be an agenda item for a future meeting 12. NEW BUSINESS 4 Burlingame City Council October 19,2009 Unapproved Minutes a. SET APPEAL HEARING FOR TREE REMOVAL AT 1568 ALTURAS DRIVE CA Guinan reported that the appeal had been withdrawn. b. REMOVAL OF PARKED VEHICLES FOR STREET SWEEPING Mayor Keighran requested that this issue be added as an agenda item for a future meeting. 13. ACKNOWLEDGMENTS a. Commission Minutes: Parks &Recreation, September 17, 2009; Beautification, October 1, 2009 b. Department Reports: Building, September 2009; Finance, September 2009 C. Two letters from Comcast concerning programming adjustments 14. ADJOURNMENT Mayor Keighran adjourned the meeting at 8:44 p.m. Respectfully submitted, Mary Ellen Kearney City Clerk 5 Burlingame City Council October 19,2009 Unapproved Minutes AGENDA CITY 0 ITEM# 5a BURLINGAME STAFF REPORT MTG. g, a DATE November 2,2009 b0p" ' 90 "NnTm JwB 6• To: HONORABLE MAYOR AND CITY COUNCIL SUBAUTTED BY DATE: November 2, 2009 APPROVED FRoM: Deirdre Dolan, Human Resources Director BYy SUBJECT: Adoption of Ordinance Repealing Chapter 3.48, Civil 44ice Commission, and Section 3.52.04,Appeal Hearings, and Amending Section 3.52.030 of Title 3 of the Burlingame Municipal Code to Eliminate the Civil Service Commission RECOMMENDATION: Adoption of an Ordinance repealing Chapter 3.48, "Civil Service Commission", and Chapter 3.52.040, "Appeal Hearings", and amending Section 3.52.030, "Rules and Regulations", of the Burlingame Municipal Code, to eliminate the City of Burlingame's Civil Service Commission. BACKGROUND: Over the past four months at several Council meetings, the City Council has considered and discussed the value and the role of the City's Civil Service Commission. From these discussions, the Council determined that there are more effective ways to efficiently perform the limited functions of the Commission at the staff level. Since the time the Commission was established more than forty years ago, the State has enacted the Meyers-Milias Brown Act regulating most aspects of employer-employee relations in the public sector and the Human Resources field has developed into a comprehensive and competent profession, more than capable of managing all aspects of the City's personnel matters. These two developments have eroded the value of the role which the City's Civil Service Commission was originally charged to perform. Accordingly, on October 19, 2009, the City Council introduced the proposed ordinance repealing Chapter 3.48, "Civil Service Commission", and Section 3.52.040, "Appeal Hearings", of the Burlingame Municipal Code and amending Section 3.52.030, "Rules and Regulations", of the Burlingame Municipal Code to effectively eliminate the City's Civil Service Commission. Tonight, the Council will conduct a public hearing and vote to adopt the ordinance eliminating the Civil Service Commission. If the proposed ordinance is adopted, it will become effective 30 days following the date of adoption, which would be December 2, 2009, commensurate with the expiration of the terms of two of the Civil Service Commissioners. ADOPTION OF ORDINANCE Staff recommends that the Council take the following actions: 1. Call for the staff report. 2. Conduct a public hearing. 3. Ask the City Clerk to read the title of the ordinance. 4. Move to waive formal reading of the ordinance. 5. Adopt the proposed ordinance repealing Chapter 3.48, "Civil Service Commission", and Section 3.52.040, "Appeal Hearings", and amending Section 3.52.030, "Rules and Regulations", of the Burlingame Municipal Code; and 6. Direct the City Clerk to publish a summary of the ordinance within 15 days of adoption. ATTACHMENTS: A. Proposed Ordinance Repealing Chapter 3.48, Repealing Chapter 3.52.040, and Amending Section 3.52.030 of Title 3 of the Burlingame Municipal Code B. Edited Copy of Chapter 3.48, Chapter 3.52.040, and Chapter 3.52.0 ORDINANCE NO.T AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BURLINGAME REPEALING CHAPTER 3.48, REPEALING SECTION 3.52.040 AND AMENDING SEC'T'ION 3.52.030 OF TITLE 3 OF THE BURLINGAME MUNICIPAL, CODE TO ELIMINATE THE CIVIL SERVICE COMMISSION The City Council of the City of Burlingame does ordain as follows: Section 1. Factual background In the past year, the Civil Service Commission members have reviewed the purpose and duties of the Commission in light of modern Human Resources professional theory and development. The Commission asked the Council to consider whether or not the Commission provided enough value to the City and the Community to continue its existence. After an ad hoc committee of the Council met with the Commission and after discussing this matter at two City Council meetings, the City Council, at its meeting on September 8, 2009, voted to eliminate the Civil Service Commission. Based upon that direction, staff has prepared this ordinance repealing and amending certain sections of the Burlingame Municipal Code to eliminate the Civil Service Commission and to transfer its duties and responsibilities to other officials and departments of the City government. Section 2. Repeal of Chapter 3.48, Civil Service Commission Chapter 3.48 of the Burlingame Municipal Code, "The Civil Service Commission", is hereby repealed in its entirety. Section 3. Repeal of Section 3.52.040, Appeal Hearings Section 3.52.040 of the Burlingame Municipal Code, "Appeal Hearings", is hereby repealed in its entirety. Section 4. Amendment to Section 3.52.030,Rules and Regulations Section 3.52.030 of the Burlingame Municipal Code, "Rules and Regulations", is hereby amended to delete the words "civil service commission" at the end of the second sentence and replace said words with the following language: "the city manager". Section 5. This ordinance shall be published as required by law. Ann Keighran,Mayor I, Mary Ellen Kearney, City Clerk of the City of Burlingame, do hereby certify that the foregoing ordinance was introduced at a regular meeting of the City Council held on the 19P day of October, 2009, and adopted thereafter at a regular meeting of the City Council held on the 2nd day of November, 2009, by the following vote: AYES: Councilmembers: NOES: Councilmembers: ABSENT: Councilmembers: Mary Ellen Kearney, City Clerk ATTACHMENT - B Chapter 3.48 GIVIL-SERV C E'L 4 1, N ysliall —E�ti-a�°.*r-c-ai:c-��—.�^rc-e#��tH�£�-c3��i�c`k�3p��z���£�3�—f$}--t -e-f3�f3 }�si�3i§ s3.�lti� the 4,aU-tie f egg%stm-4 -gthilf 4ed c s 4-i-e but 9"ee • -. be poid by eit j f p Ofd-.44499�-2; `- t t�rrziccisr'rs i�clzi �3LI ?t c s ccrii-�r t { ;t{ f rcii-c -=c513t3 i -rscit s7f-iic—crrr =F13F3i't' f3 ef.not-..less- hall-f4ur--f€tfis-vote fi.:1leA..1 O 1.48.0. g g 1i 1 i I t- , f°+ 4 s t. 1 Y t n 1 l l t •f�sii�r'i-y n��rc rz i-c-vri�-v-r-crs-z'a-r�c-m�cr- �r�^.;..., _.. c1 �� ttisi� �:- t�j �i � tleti���tt�tt i �ri=:t'w-rc-s'sci--a:xvi:r.s:�ir.1 11 .�-, t-... ..y+v.`lc�--�cs�r .�i=rcrsuz-Ytt :{m{." t• ¢ .{' t 1 + s1 9-i =lie-t tt fs e tl 3 ssi ; prey-ide y4hi-s-fl•aptent-imd-G,Imptef-3=wand--1 he }TL"'""7�-^-;4-•P"'^yP 'f ff 'YSiI[[TC)TL-T G4° fal +1 •t t' t tl, ��n nl,.,� t � t .�����, nl cf,r,r��11�t'��� mei-it-prineiples-by-fifevidi -Pah-c-y-aJie- -tht; -it-y man age--i-and..eit."oune-fl -anal L 3.52.030 Rules and regulations. The city council shall formulate and adopt rules and regulations for the administration of the civil service system under the city manager.Any subsequent amendments to said rules and regulations may be adopted by the council after review and recommendation by ........ __. .............__.... the civil s €site eirriiiot All rulesand regulations adopted shall be considered with =Inserted. city manager _ the provisions of this chapter. Such rules shall provide for the following matters in addition to such other matters as may be necessary and proper in carrying out the intent and purposes of this chapter: (a) The classification of all persons in the classified service; (b) The selection,employment,advancement,suspension,demotion,discharge and retirement of all persons in the classified service; (c) The formulating of minimum standards and qualifications for each of the positions in the classified service.(1941 Code§ 503;Ord. 1221 §2,(1982)) - ppea4s ifw-A ifl_T1s sapli iar aEticr��s ui ��i ilea¢�tic�� sl ag;c -€�€ t#� �-��u��=-�t��€1-€i�rte�-E�i�-��-c�a+rneit--i��-tl��•>.��Fle��nt1-�-��t�Eicn�-=1-i�=i Service eonify-iis ion...and,..tnay..allu�--or di4�tllF3�� }�}y-appal�g�a,1�tFs E1}e e i���a3ai�cil-1�� det2iii€:iY -a -i i -i E3tii 4-iupol AGENDA ITEM NO: 5b BURLINGAME STAFF REPORT MEETING DATE: November 2,2009 n TO: HONORABLE MAYOR AND CITY COUNCIL SUBMITTED BY: ' DATE: October 28, 2009 APPROVED BY: FROM: William Meeker, Community Development Director—(650) !, "-7255 SUBJECT: APPEAL OF THE PLANNING COMMISSION'S DENIAL WITH PREJUDICE OF AN APPLICATION FOR CONDITIONAL USE PERMIT FOR AN ACCESSORY STRUCTURE TO BE USED FOR RECREATIONAL PURPOSES, ON PROPERTY AT 349 LEXINGTON WAY, LOCATED WITHIN A SINGLE-FAMILY RESIDENTIAL (R-1) ZONE. RECOMMENDATION: The City Council should conduct a public hearing on the appeal of the application for Conditional Use Permit for an accessory structure to be used for recreational purposes at 349 Lexington Way, and consider public testimony and the analysis contained within the staff report. Action regarding the appeal should include specific findings supporting the Council's decision, and should be affirmed by resolution of the City Council. The reasons for any action should be stated clearly for the record. The City Council may consider the following alternatives: 1. deny the appeal and uphold the Planning Commission's action denying the application for Conditional Use Permit for a recreational area in an accessory structure; or 2. grant the appeal, and approve the project subject to conditions. BACKGROUND: Project Description: In the fall of 2008, the Building Division received a complaint about a second unit at 349 Lexington Way. Although San Mateo County records indicate that a 9' x 15' workshop (with 4' x 15' porch) existed at the location in 1951, a Building Division inspector determined that work had been performed to the structure that was extensive enough to classify it as new. No permit had been issued to expand the footprint of the structure. The Building Division inspector further determined that the bathroom and sewer line were most likely new but that there was no evidence of a second kitchen. In January of 2009, the applicant submitted an application for Conditional Use Permits for an accessory structure that will be used for recreational purposes, contains a toilet and that has windows within 10' of an adjacent property line for the 14' x 24' as-built accessory structure at 349 Lexington Way. On May 26, 2009 the Planning Commission denied the request for the three Conditional Use Permits. After denial of the application, Planning Staff worked with the applicant to substantially revise the project. The applicant is now proposing to remove the existing toilet and to remove the two windows on the structure that are within 10' of an adjacent property line, which removes the need for two of the previous three Conditional Use Permits. On June 18, 2009, the applicant submitted a substantially revised application for a Conditional Use Permit to use the non-permitted 14' x 24' as-built accessory structure for recreational purposes only. In addition to the accessory structure, the site contains a single-story, two-bedroom house with an attached nonconforming one-car garage. No work is proposed to the main structure as part of this application. The as-built accessory structure increased the lot coverage from approximately 1,689 SF to 1,830 SF where CITY COUNCIL MEETING — November 2, 2009 Public Hearing —Appeal RE: 349 Lexington Way 2,400 SF is the maximum allowed, and the floor area from approximately 1,689 to 1,830 where 3,020 is the maximum allowed. Two parking spaces, one of which must be covered, are required for the existing two (2) bedroom house. The accessory structure is not considered a bedroom. The existing attached garage (10' x 14'-6" interior dimensions) is considered existing nonconforming and does not need to be brought up to code because no changes have been made to the main structure and there has been no increase in the number of bedrooms onsite. The applicant is requesting the following application: ■ Conditional Use Permit for an accessory structure that will be used for recreation purposes (CS 25.60.010, m). The latest Planning Commission staff report (dated September 14, 2009) is attached to this report and contains a detailed analysis of the proposal. Environmental Review Status: The project is Categorically Exempt from review pursuant to the California Environmental Quality Act (CEQA), per Section 15303 (e), which states that construction and location of limited numbers of new, small facilities or structures including accessory (appurtenant) structures including garages, carports, patios, swimming pools and fences is exempt from environmental review. Prior Planning Commission Action: Planning Commission Denial: The project was reviewed by the Planning Commission on September 14, 2009 as a Regular Action Item. At its meeting of September 14, 2009, the Planning Commission denied with prejudice the property owner's request for a Conditional Use Permit for a recreational area in an accessory structure at 349 Lexington Way, Zoned R-1 (see attached September 14, 2009 Planning Commission minutes). The Commission denied the applications on a vote of 6-0-1 (Commissioner Cauchi absent). Appeal of Planning Commission's Action: On September 22, 2009, Bill and Marie Nasser, the property owners, appealed the Planning Commission's action (see attached letter). The reason for the appeal was not given. Additional Submittal since October 19, 2009: On October 28, 2009, the appellant's attorney submitted a letter indicating that the appellant has reached out to her neighbors requesting support for the appeal. Attached to this report is a copy of the attorney's submittal, which includes letters from several neighbors supporting the appeal. Attachments: Letter from Leigh F. Prince Esq., project attorney, dated October 28, 2009; with attachments Letter from Leigh F. Prince Esq., project attorney, dated October 13, 2009 Letter from Leigh F. Prince, Esq., project attorney, dated October 2, 2009 Appeal Letter from Bill and Marie Nasser, dated September 22, 2009 Letter from neighbors of 349 Lexington Way, dated September 14, 2009 Photographs from neighbors of 349 Lexington Way, dated September 14, 2009 September 14, 2009 Planning Commission Meeting Minutes September 14, 2009 Planning Commission Staff Report Notice of Appeal Hearing — Mailed October 9, 2009 City Council Resolution (proposed) 2 JORGENSON, SIEGEL, MCCLURE & FLEGEL, LLP ATTORNEYS AT LAW WILLIAM L. MCCLURE 1100 ALMA STREET, SUITE 210 JOHN L. FLEGEL MENLO PARK, CALIFORNIA 94025-3392 OF COUNSEL MARGARET A. SLOAN (650) 324-9300 AN W. S. SIEGEL C DAN K. SIEGEL FACSIMILE (650) 324-0227 DAN W. OOPERIDER DIANE S. GREENBERG WWW]SMf.CCRI RETIRED JENNIFER H. FRIEDMAN JOHN D. JORGENSON MINDIE S. ROMANOWSKY JOHN R. COSGROVE NICOLAS A. FLEGEL LEIGH F. PRINCE KRISTINA B. ANDERSON October 28, 2009 RECEIVED OCT 3 0 1009 Sent via Email and U.S. Mail CITY CLERKS OFFICE Honorable Mayor and Members of the City Council CITY OF BURLINGAME City of Burlingame 501 Primrose Road Burlingame, CA 94010 Re: 349 Lexington Way, Burlingame Appeal from Planning Commission Outreach to Neighbors Dear Honorable Mayor and Members of the City Council: As you know, the City Council continued the appeal hearing regarding the property located at 349 Lexington Way ("Property") from October 19, 2009, to November 2, 2009. Since returning from hertrip on October 18, 2009, Marie Nasser,the ownerof the Property, has reached out to the Property's neighbors. Mrs. Nasser sent a letter to those neighbors who submitted a letter to the Planning Commission in opposition to the approval of a Conditional Use Permit ("CUP") for the accessory structure on the Property. Attached is a copy of the letter sent to those four families. In addition, Mrs. Nasser sent a copy of my letter to the City Council dated October 13, 2009, to Steve Dwyer who spoke in opposition to the approval of a CUP at the Planning Commission level. Unfortunately, Mrs. Nasser Mas not had any response from these neighbors. In addition, Mrs. Nasser went door-to-door in the neighborhood with a letter explaining her situation and requesting support for the approval of a CUP. Where she was not able to make personal contact, she left the letter and a return envelope. To date, Mrs. Nasser has received four signed letters from neighbors supporting the City's grant of a CUP for the accessory structure for recreation purposes. Three of those letters are attached and Mrs. Nasser will bring copies of the fourth to the meeting on November 2, 2009. Honorable Mayor and Members of the City Council October 28, 2009 -- Page 2 of 2 If you have any questions or wish to discuss this matter further, please do not hesitate to contact me. Sinely, �: Leigai . Prince cc: Marie Nasser Maureen Brooks N:\DATA\Clients\N\Nasser,M\Corres\Counci1-3.Irt.wpd October 21 , 2009 Nancy and Fred Sturm Jennifer and Daniel Cray 342 Lexington Way 355 Lexington Way Burlingame, CA 94010 Burlingame, CA 94010 Dolores and Bud Harrison Elizabeth and Robert Wolf 355 Lexington Way 337 Lexington Way Burlingame, CA 94010 Burlingame, CA 94010 Dear Neighbors, I wanted to specially reach out to you because you signed a letter opposing the City of Burlingame issuing permits for my accessory structure at 349 Lexington Way. I recognize I made a mistake in not getting permits and I am trying to correct that mistake and show respect for the City's laws and codes. The accessory structure, although built without permits, is setback from the neighbors more than the distance required by the City. I have agreed to remove the windows that are nearest to the property line, which will help alleviate the concern you expressed in your letter about lights being on in the evening. The accessory structure will used for recreation purposes by the one family living in the main house and will not be a noisy use late into the night. I have agreed to make changes to the accessory structure and am trying to do the right thing. I hope the changes and my efforts address your concerns. I have enclosed a letter from an attorney helping me to correct my mistake and get permits from the City. Her letter will hopefully address any additional concerns or answers any questions you may have. If after reading the letter you have any more questions, please feel free to call me at (650) 759-2202 or the attorney, Leigh Prince, at (650) 325-9300. Thanks for your time. Sincerely, Marie Nasser October 21, 2009 Dear Neighbors, I own the property at 349 Lexington Way. I recently re-built the old accessory structure on my property as an art studio. I didn't realize I needed permits to make the changes that I did. I made the accessory structure 141 square feet larger and added some windows and a sink (I also added a toilet, but I have agreed to remove it). I am now seeking permits from the City of Burlingame to use that accessory structure for recreation purposes by the one family living in the main home. I am hoping you will support me in my efforts to do the right thing and get permits. Sincerely, Marie Nasser I support the City's issuing Mrs. Nasser permits to use the accessory structure at 349 Lexington Way for recreation purposes. le Z LC-C�I Name: Address: 9 Ta C/+ October 21, 2009 Dear Neighbors, I own the property at 349 Lexington Way. I recently re-built the old accessory structure on my property as an art studio. I didn't realize I needed permits to make the changes that I did. I made the accessory structure 141 square feet larger and added some windows and a sink (I also added a toilet, but I have agreed to remove it). I am now seeking permits from the City of Burlingame to use that accessory structure for recreation purposes by the one family living in the main home. I am hoping you will support me in my efforts to do the right thing and get permits. Sincerely, Marie Nasser I support the City's issuing Mrs. Nasser permits to use the accessory structure at 349 Lexington Way for recreation purposes. Name: Address: October 21, 2009 Dear Neighbors, I own the property at 349 Lexington Way. I recently re-built the old accessory structure on my property as an art studio. I didn't realize I needed permits to make the changes that I did. I made the accessory structure 141 square feet larger and added some windows and a sink (I also added a toilet, but I have agreed to remove it). I am now seeking permits from the City of Burlingame to use that accessory structure for recreation purposes by the one family living in the main home. I am hoping you will support me in my efforts to do the right thing and get permits. Sincerely, M� k7, XjC ajj,, Marie Nasser I support the City's issuing Mrs. Nasser permits to use the accessory structure at 349 Lexington Way for recreation purposes. Ad ress: Wa JORGENSON, SIEGEL, McCLURE & FLEGEL, LLP ATTORNEYS AT LAW WILLIAM L McCLURE 1100 ALMA STREET, SUITE 210 JOHN L FLEGEL MENLO PARK, CALIFORNIA 94425-3392 OF COUNSEL MARGARET A SLOAN (5SO) 324-9300 MARVIN S, SIEGEL DAN K. SIEGEL FACSIMILE (650) 324-0227 DAN W. COOPERIOER DIANE 3. GREENBERG WWW.JSf11LCOm RETIRED JENNIFER R FRIEDMAN JOHN D. JORGENSpN MINDIE S. ROMANOWSKY JOHN R. COSGROVE NICOLAS A FLEGEL LEIGH F. PRINCE KRISTINA B. ANDERSON October 13, 2009 0 C T 1 3 2009 CITY OF BURLINGAME Sent via Email and US Mail PLANNING DEFT, Honorable Mayor and Members of the City Council City of Burlingame 501 Primrose Road Burlingame, CA 94010 Re: 349 Lexington Way, Burlingame Appeal from Planning Commission Dear Mayor and Members of the City Council: This letter is written on behalf of our client, Marie Nasser ("Mrs. Nasser") who applied for a Conditional Use Permit ("CUP") to bring an unpermitted accessory structure built as an art studio on the property located at 349 Lexington Way ("Property") into compliance. Because Mrs. Nasser is traveling beginning October 8, 2009, and returning home late on the night of October 18, 2009, she does not have the time she desires to work with City staff and to reach out to her neighbors prior to the October 19, 2009 appeal hearing; therefore, she respectfully requests that her appeal be continued until the next Council meeting on November 2, 2009. - As background, Mrs. Nasser purchased the Property with the intent of having her daughter live there. There was an existing accessory structure on the Property that was in poor shape. Her daughter enjoys art as a hobby and Mrs. Nasser, having seen a newer charming accessory structure on a neighbor's property, re-built the accessory structure as an art studio with her daughter in mind, As we are all keenly aware, current economic conditions have changed many of our best laid plans. Due to Mrs. Nasser's and her daughter's financial situation, it was not possible for her daughter to immediately occupy the Property and Mrs. Nasser currently rents the Property to one family. Regardless of the Property's status as a rental, the accessory structure, designed as an art studio, is an appropriate use on the Property with a CUP and Mrs. Nasser respectfully requests that the City approve her application for a CUP, despite her initial failure to seek permits. RECEIVED OCT 1 3 2009 Honorable Mayor and Members of the City Council ME October 13, 2009 -- Page 2 of 4 kTY Di-AN ING DEPT. When Mrs. Nasser got the idea to re-build the existing accessory structure as an art studio, she received some advice from a Burlingame neighbor that she did not need a permit. She now realizes that the neighbor's advice was incorrect and she should have investigated further before replacing the accessory structure on the Property. Mrs. Nasser accepts responsibility for and understands the weight of her failure to obtain permits and desires to work with the City to bring the accessory structure into compliance and alleviate any concerns that the art studio will be used as a secondary dwelling. The Property is located in the R-1 zoning district. An accessory structure located in the R-1 zoning district that will be used for "accessory living quarters, recreation purposes or for use in a home occupation" requires a CUP. (Burlingame Municipal Code ("BMC") §25.60.010(m)). Mrs. Nasser is not seeking a CUP to use the accessory structure as accessory living quarters.' She is also not seeking a CUP to use the accessory structure for a home occupation.2 Mrs. Nasser is seeking a CUP for the use of the accessory structure as a hobby art studio by the occupant of the main home. BMC does not define "recreation purposes", but as "recreation" is defined in the dictionary as an activity affording relaxation and enjoyment, it appears that an art studio would fit within that general definition. Therefore, although not entirely clear that a CUP is necessary for a hobby art studio under the BMC, Mrs. Nasser has applied for a CUP to use the accessory structure for recreation purposes. BMC §25.52.020 sets forth the findings necessary to grant a CUP: (1) the proposed use at the proposed location, will not be detrimental or injurious to property or improvements in the vicinity and will not be detrimental to the public health, safety, general welfare or convenience; (2) the proposed use will be located and conducted in a manner in accord with the Burlingame General Plan and the purposes of this title; and 'BMC §25.08.030 defines accessory living quarters as `living quarters within an accessory building located on the same premises with the main building, for the sole use of persons employed on the premises or members of the same family, such quarters having no kitchen facilities and not rented or otherwise used as a separate dwelling." The intent is not to use the accessory structure, which does not contain a kitchen, for additional living quarters for the one family living on the Property, but to use it as an art studio. 2BMC Section 25.08.350 defines a home occupation as "any gainful occupation or profession engaged in by an occupant of a dwelling unit in an R zone...." The accessory structure was designed as an art studio. Mrs. Nasser's long term plan includes having her daughter, who enjoys art as a hobby; live in the main dwelling and use the accessory structure as an art studio. A restriction could be included in the CUP that any rental agreement for the Property include a restriction that the accessory structure not be used for a home occupation. WIDATANCbenisi"assef.tAlCorres!Counal-2 M LIM Honorable Mayor and Members of the City Council OCT 1 3 Z00S October 13, 2009 -- Page 3 of 4 �;l T!OF BURLINC<AMr at F.NNIN. GBP`:. (3) the City may impose such reasonable conditions or restrictions as it deems necessary to secure the purposes of this title and to assure operation of the use in a manner compatible with the aesthetics, mass, bulk and character of existing and potential uses on adjoining properties in the general vicinity. This proposal is for an accessory structure in a residential neighborhood to be used as a hobby art studio by the occupant of the main home on the Property. There are other accessory structures in the neighborhood. The hobby art studio is a quiet use. There will be no additional traffic as the accessory structure will be used by the occupants of the main home on the Property. For the same reason, there will also be no additional parking needed. In light of this, Mrs. Nasser believes there will be no detrimental or injury to the surrounding neighborhood. The application for this use is also in accordance with the City's laws that allow accessory structures to be used for recreation purposes in the R-1 zoning district. Lastly, the City can put conditions in the CUP that it deems necessary to secure the appropriate use of the accessory structure, such as requiring that it not be used as a secondary dwelling unit or even as accessory living quarters. Mrs. Nasser believes that the City can make the findings necessary to approve her CUP application. As discussed above, the City and neighborhood concerns about the use of the accessory structure as a secondary dwelling unit can be addressed though placing conditions in the CUP. Nevertheless, because the Planning Commission indicated that the project was potentially approvable, but denied the application because of the concern that the accessory structure could be converted into a secondary dwelling unit, this letter will specifically address why the accessory structure on the Property is not a secondary dwelling unit. A secondary dwelling unit is defined in the BMC as "an additional dwelling unit on a single-family residential lot or parcel which contains one or more rooms and one kitchen designed for occupancy by not more than two (2) persons for living and sleeping purposes." (BMC §25.59.030) Although the accessory structure on the Property contains one or more rooms, it does not include a kitchen and it was designed as an art studio, not for occupancy and sleeping purposes. As a result, the accessory structure does not meet the City's definition of a secondary dwelling unit. Nevertheless, because the City and surrounding neighbors expressed concerns that the accessory structure could be used as a secondary dwelling unit, Mrs. Nasser made changes to the accessory structure to address those concerns. The accessory structure had a window within ten feet of the property line. Mrs. Nasser agreed to remove the rear window, The accessory structure was originally designed with a bathroom. Mrs. Nasser has agreed to reduce the number of fixtures and have only a Sink; Vvhich is important for an art studio. At no time did the accessory structure include N:DATA%CbentsM4asser.P.IICDrresCounob2 in.= Honorable Mayor and Members of the City Council 'IT t �aaa October 13, 2009 — Page 4 of 4 t OF BURLINGAME 'h Ar.ENING DEPT. a kitchen or plans for a kitchen. Mrs. Nasser has made changes to the accessory structure that even further removes it from the City's definition of a secondary dwelling unit and eliminates the possibility that it could be used as a secondary dwelling unit. In addition, Mrs. Nasser is willing to make further modifications to the accessory structure to eliminate any remaining City and neighborhood concerns, such as reducing the waste line so that a toilet could not be added at a later time or eliminating interior walls that create the appearance of more than one room. These types of changes to the accessory structure can be added as conditions to the CUP to prevent any future changes to the structure and ensure that this accessory structure will continue to be used in a legal manner. Mrs. Nasser respectfully requests that the City grant the CUP for the accessory structure on the Property. Recognizing that she made a mistake in not seeking permits from the outset or hiring people who would adequately inform her of that need, she is willing to pay not only permit fees, but the fines necessary to rectify the wrong. Thank you for your time and consideration. If you have any questions or wish to discuss this matter further, please do not hesitate to contact me. Sincerely, 1 t --� Leigh Fi/brince cc: Maureen Brooks Marie Nasser N.ADATAThunts%kNasser,1TCorres.Counc&2 in.Qoc OCT. 2. 2009 10:PAM N0. 49'j; P. 1 JORGENSON, SIEGEL, McCLURE & FLEGEL, LLP ATTORNEYS AT LAW W ILLIAA4 L,AdcCLURE 1100 ALMA STREET,SUI i E210 OF COU14SEL JOHN L,FLEGEL MENLO PARK.CALIFORNIA 94025.3392 MARVIN S.SIEGEL MARGARET A.SLOAN (650)324-2300 DAN K SIEGEL FACSIMILE(ESO)324.0227 DIANES.GREENBERG wv.w.fsmf.ce,� RETIRED JENNIFER H.FRIEDMAN JOHN D.JORGENSON MINDIE S.ROMANOWSKY JOHN R.COSGROVE NICOLAS A.FLEGEL LEIGH F.PRINCE KRISTINA B.ANDERSON TELECOPIER COVER SHEET TELECOPIER NO.: (650) 324-0227 To: Honorable Mayor and Members of the City Council 650 696-3790 City of Burlingame From: Rebecca Etz-Cameron for Leigh F. Prince Esq. � Date: October_2. 2009 Time: Reference: 349 Lexington Way, Burlingame Appeal from-Planning Commission Document(s)Transmitted: Letterof today's date regarding setting a date on which-to hear Ms Nasser's appeal from the Planning Commission's denial of her appilcation. Message: Please do not hesitate to contact me should you have any questions. Number of pages transmitted including cover sheet: TWO If you do not receive all the pages or have any questions, please Cali us at(650)324-9300. Thank you. ORIGINAL WILL BE SENT BY FIRST CLASS MAIL: YES X NO THIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY TO WHICH IT IS ADDRESSEIDAND MAY CONTAIN INFORMATION THAT IS PRIVILEGED,GOI`.EIDENTIALA";1)EXEMPT FROM DISCLOSURE UNDER APPLICABLE LAW. IF THE READER OF THIS MESSAGE Is NOT THE INTENDED RECIPIENT, OR THE EMPLOYEE OR AGENT RESPONSIBLE FOR DE=LIVERING THE MESSAGE TO THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY REVIEW, USE, COMMUNICATION, DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNiCAT[ON IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY TELEPHONE AND RETURN, AT OUR EXPENSE, THE ORIGINAL MESSAGE TO THE ABOVE ADDRESS VIA THE U.S. POSTAL SERVICE. THANK YOU. N:IDATA\.CflanteWVJassyr,Iv11Ca7e3L�A�Councif-1.`x.wpd 0CT. 2. 2009 10: 30AM NO. 4938 P. 2 JORGENSON, SIEGEL, MCCLURE & FLEGEL, LLP ATTORNEYS AT LAW WILLIAM L MCCLURE 1100 ALMA STREET,SUITE 210 MENLO PARK, CALIFORNIA 940263392 OF EI N S. JOHN L FLEGEL MgRVIN S.SIEGEL MARGARET A&LOAN (1530) 324.9300 DAN W.COOPERIOER DAN K SIEGEL rACSIMILE(660) 324-0227 DIANE H.OREENBERG wwwjsmfcom RETIRED JENNIFER K FRIEDMAN JOHN O. JORGENSON MINDIE 5.ROMANOWSKY JOHN K C050ROVE NICOLAS A.FLEGEL LEIGH F. PRINCE KRISTINA B.ANDERSON October 2, 2009 Sent via Facsimile: 650-696-3790 Honorable Mayor and Members of the City Council City of Burlingame 501 Primrose Road Burlingame, CA 94010 Re: 349 Lexington Way, Burlingame Appeal from Planning Commission Dear Mayor and Members of the City Council: This letter is written on behalf of our client, Marie Nasser. On October 5, 2009, the City Council will set a date on which to hear Ms. Nassees appeal from the Planning Commission's denial of her application. As Ms. Nasser will be traveling beginning October 8,2009, and returning home late on the night of October 18,2009, she respectfully requests that her appeal not be heard at the October 19, 2009, Council meeting, but the following Council meeting on November 2, 2009. To provide brief background, Ms.Nasser applied for a Conditional Use Permit("CUP") to bring an unpermitted accessory structure built as an art studio on the property located at 349 Lexington Way into compliance. On September 14, 2009, the Planning Commission indicated that the project was potentially approvable, but denied the application because there was some concern that the accessory structure could be converted into a secondary dwelling unit. The applicant understands the weight of her failure to obtain permits and desires to work with the City of Burlingame to bring the accessory structure into compliance and alleviate any concerns that the art studio will be used as a secondary dwelling. Thank you for your time and consideration. If you have any questions or wish to discuss this matter further, please do not hesitate to contact me. Sincerely,.. Leigh F. Prince cc: Marie Nasser "�. . ,c Honorable Mayor and City Council: Please schedule an appeal hearing for To: Burlingame City Council 349 Lexington Way to be heard at the October 19, 2009 City Council meeting. From: Bill and Marie Nasser 715 Seabury Road Hillsborough, CA 94010 650 344 2074 Re: Appeal of Planning Commission Decision on Project at 349 Lexington, Burlingame We request an appeal before the City Council to reconsider the Planning Commission's recent rejection on September 14, 2009 of plans for a hobby area in an accessory structure. We would respectfully request if the hearing could not be between October 8t'-18". If the council feels the delay is not appropriate, we will organize our presentation at your convenience. Thank you, Bill and Marie Nasser RH CITY CLERK'S CITY Y R!R11 CITY OF BURLINGAME PLANNING COMMISSION—Unapproved Minutes September 14,2009 3. 349 LEXINGTON WAY, ZONED R-1 — APPLICATION FOR CONDITIONAL USE PERMIT FOR A RECREATIONAL AREA IN AN ACCESSORY STRUCTURE(BARRY CHANDLER,APPLICANT;MARIE NASSER,PROPERTY OWNER;AND MAURICE GONZALEZ,DESIGNER) STAFF CONTACT: ERICA STROHMEIER Reference staff report dated September 14,2009,with attachments. Senior Planner Hurin presented the report,reviewed criteria and staff comments. Nine(9)conditions were suggested for consideration. Chair Terrones opened the public hearing. Commission comments: • How is a bedroom defined? Wouldn't an additional bedroom require another parking space? (Hurin —provided definition for a bedroom and confirmed that additional parking would be required for another bedroom on the property.) • Where there permits issued for this accessory structure? (Hurin—no permits were issued.) Maurice Gonzalez,818 Crestview Drive,Millbrae;and Marie Nasser,715 Seabury Road, Hillsborough; represented the applicant. Additional Commission comments: • Was he (Gonzalez) commissioned to prepare drawings for the building? Did he check the applicable planning regulations priorto designing the building? (Gonzalez—yes,but prepared after the fact.) • Is the property still a rental property? (Nasser—yes,it is still rented.) Public comments: Steve Dwyer,328 Dwight Road;Pat Giomi,1445 Balboa Avenue;Barry Chandler,166 Gramercy Drive,San Mateo;spoke: • Could see the building when it was being built about a year ago;became aware that no permits had been issued. • Have noticed lights on in the structure;believe that someone is living in the structure. • Feels the structure is too close to a utility pole and property line. ■ Structure has been plumbed for water and gas;a new sub-electrical panel has been installed. • Believe it was built to be a second rental unit. • Feel there are likely code violations present. • Provided photos of new structure,and of aerial photo that shows the original structure. • There is nothing to prevent the structure from being converted to a rental unit;the Conditional Use Permit should be denied. • Think they should have been allowed to replace the existing structure with the same size,fixtures and use. • Property owner should have been able to make upgrades to the previous structure;but should not be allowed to convert it to another non-permitted use. • Probably should have gone through proper protocol with respect to construction the building. Neighbors have a very similar unit that was done without permits;moved forward based upon this discussion with the neighbor. There were no further comments and the public hearing was closed. 5 CITY OF BURLINGAME PLANNING COMMISSION — Unapproved Minutes September 14, 2009 Commissioner Auran moved to deny the application with prejudice. The motion was seconded by Commissioner Brownrigg. Discussion of motion: ■ The project is potentially approvable; but utilities still remain in place that could service the building and allow illegal conversion of the structure. ■ If the City approved this, would also like to have the parking requirement increased due to the potential for an additional vehicle to be present on the property. ■ This is a large accessory structure, containing separate rooms; lends itself to use as a dwelling unit. ■ There have been a number of people associated with the project that understood the process, but- did not follow it. Had the project come through the proper process, may have been approvable. ■ Could be converted to an income producing unit at the detriment of the neighbors. Chair Terrones called for a voice vote on the motion to deny with prejudice. The motion passed 6-0-1. (Commissioner Cauchi absent). Appeal procedures were advised. This item concluded at 8:03 p.m. -ep.14.2009 04:13 PM HCC SAN MATEO 16505778060 PAGE. 1/ 3 �•}•eilrn COMMUNICATION RECEIY� t AFTER PREPARATION OF STAFF REPORT pk �'- �J� vhe� k fl VL-� `- y L A G eV-0-4 ,AA 6(y -�- 1�uVee ve a V� e. e CA J �-- c h c,r e-a- t J Y\ G{- l S G vA t � c? v Received After 09.14.09 PC Meeting Agenda Item 3 - 349 Lexington Way Pagel of 3 9ep.14.2'009 04:13 PM HCC SAN MATEO 16505778060 PAGE. 2/ 3 +V,4e_4, e- c o vv k 0. u o 42 VIA av" �: t ojell �vU1Y\ 11 1�7 �- �f e-ctc c------ C9 V` Gt a I Pte' t .Y% vy-\L� V-,C---:: V-0 Received /After I!mm 09.14.09 PC Meeting Agenda Item 3 - 349 Lexington Way Paae 2 of 3 C-ep.14.2009 04:13 PM HCC SAN MATEO 16505778060 PAGE. 3/ 3 civ VVN �C- �s1� v✓� 1. � Z � (�Whev- e� eA z We- t V-\ ll� Lf 4P-e_Vy%e. 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These non-resident owners have chosen to ignore all Burlingame rules regarding plans/permits and inspections for this construction. 2. This area is zoned R1 . They devalue all the properties in the area by adding this illegal 2nd living unit. They also add cars to a street that is already narrow and congested. 3. These property owners claimed to be ignorant of the rules, but in fact, they hired their own private inspector to approve their construction and submitted no plans to the city. 4. Their stated first plans were to replace a potting shed. Then they sought to redefine it to be an artist studio. Now they are calling it a recreational center. It remains what it was built to be- a house. It is fully wired and plumbed. 5.. Be1Fore they were reported to the city for having no permits, the unit was in use for living quarters, with lights shining every night. 6. It is terribly unjust for the commission to approve this, when other neighborhood homeowners have been denied permits to expand their hornes, due to parking limitations on this street. 7'. The city has a legal process for obtaining the permits necessary for home additions., we followed it in 2002. il E C'E_ V E D S P 1 4 2009 CITY OF SURLINGAMC PLANNING i-�•AT, i :, ,, r, ,,. . ,. ., .. :. d . "•: .n , .W, •:. , n', 4'�,tw7J•. ,':. .� s. 7? _ v, r ch;;•k ,a'",�!r''d' + a{^w, a i r _.: .. „ ...:. , ;. ,.rt;n.l. N .; ,.. �..�,,,.. 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Applicant and Designer: Barry Chandler APN: 029-192-050 Property Owner: Marie Nasser Lot Area: 6,000 SF General Plan: Low Density Residential Zoning: R-1 Environmental Review Status: The project is Categorically Exempt from review pursuant to the California Environmental Quality Act(CEQA), per Section 15303 of the CEQA Guidelines-Construction or Conversion of Small Structures Class 3 (e),Accessory(appurtenant)structures including garages, carports, patios,swimming pools and fences. History: In the fall of 2008, the Building Division received a complaint about a second unit at 349 Lexington Way. Although county records indicate that a 9' x 15' workshop (with 4' x 15' porch) existed at the location in 1951, a Building Division inspector determined that work had been performed to the structure that was extensive enough to classify it as new. No permit had been issued to expand the footprint of the structure. The Building Division inspector further determined that the bathroom and sewer line were most likely new but that there was no evidence of a second kitchen. In January of 2009, the applicant submitted an application for Conditional Use Permits for an accessory structure that will be used for recreational purposes, contains a toilet and that has windows within 10' of an adjacent property line for the 14'x 24'as-built accessory structure at 349 Lexington Way. On May 26,2009 the Planning ,ommission denied the request for the three Conditional Use Permits. After denial of the application, Planning Staff worked with the applicant to substantially revise the project. The applicant is now proposing to remove the existing toilet and to remove the two windows on the structure that are within 10' of an adjacent property line, which removes the need for two of the previous three Conditional Use Permits. Project Description: On June 18, 2009, the applicant submitted a substantially revised application for a Conditional Use Permit to use the non-permitted 14'x 24'as-built accessory structure for recreational purposes only. In addition to the accessory structure,the site contains a single-story,two-bedroom house with an attached nonconforming one-car garage. No work is proposed to the main structure as part of this application. The as- built accessory structure increased the lot coverage from approximately 1,689 SF to 1,830 SF where 2,400 SF is the maximum allowed, and the floor area from approximately 1,689 to 1,830 where 3,020 is the maximum allowed. Two parking spaces, one of which must be covered, are required for the existing two (2) bedroom house. The accessory structure is not considered a bedroom. The existing attached garage(i 0'x 14'-6"interior dimensions) is considered existing nonconforming and does not need to be brought up to code because no changes have been made to the main structure and there has been no increase in the number of bedrooms onsite. The applicant is requesting the following application: Conditional Use Permit for an accessory structure that will be used for recreation purposes (CS 25.60.010, m). " This area was intentionally left blank Conditional Use Permit 349 Lexington Way Lot Area: 6,000 SF Plans date stamped: September 1, 2009 AS-BUILT/PROPOSED EXISTING ALLOWED/READ to accessory structure) Left Setback: unknown 22'-0" Right Setback: i unknown j 4'-0" Rear Setback: i unknown 3'-6" Setback To Main Structure: unknown j 48'-6" 4'-0" Lot Coverage: i --1,689 SF --1,830 SF I 2,400 SF 28% 30.5% 40% Floor Area Ratio: i 1,689 SF —1,830 SF i 3,020 SF 0.28 FAR j 0.31 FAR 0.50 FAR # of bedrooms: 2 no change i --- Building Height: 13'-2" (from grade) 1 13'-2" (from grade) 14'-0"2 (0.32 x 6,000 SF)+ 1100 SF = 3,020 SF (0.50 FAR) 2 Per Code Section 25.60.010, h,2: The portion of the structure at the rear property line may have a maximum height of 14'-0" if the structure has a pitched roof on both sides and the rear plate line does not exceed 9'-0"above the natural grade. Staff Comments: See attached new memos from the Chief Building Official and previous project memos from the City Engineer, Fire Marshal and NPDES Coordinator. Because a similar application on this site has already been reviewed by the Planning Commission twice before, staff determined that the revised application could be brought straight to Regular Action for review. If the Commission feels there is a need for more study or information, this item may be continued with direction to the applicant. Findings for a Conditional Use Permit: In order to grant a Conditional Use Permit for an accessory structure that will be used for recreation purposes, the Planning Commission must find that the following conditions exist on the property (Code Section 25.52.020, a-c): (a) The proposed use, at the proposed location, will not be detrimental or injurious to property or improvements in the vicinity and will not be detrimental to the public health, safety, general welfare or convenience: (b) The proposed use will be located and conducted in a manner in accord with the Burlingame general plan and the purposes of this title; (c) The Planning Commission may impose such reasonable conditions or restrictions as it deems necessary to secure the purposes of this title and to assure operation of the use in a manner compatible with the aesthetics, mass, bulk and character of existing and potential uses on adjoining properties in the general vicinity. Planning Commission Action: The Planning Commission should conduct a public hearing on the application, and consider public testimony and the analysis contained within the staff report. Action should include specific findings supporting the Planning Commission's decision, and should be affirmed by resolution of the Planning Commission. The reasons for any action should be stated clearly for the record. At the public hearing the following conditions should be considered: 1. that the project shall be built as shown on the plans submitted to the Planning Department date stamped September 1, 2009, sheets Al through A3, and that any changes to footprint or floor area of the accessory structure shall require an amendment to this permit; -2- Conditional Use Permit 349 Lexington Way 2. that if the structure is demolished or the envelope changed at a later date the Conditional Use Permit,as well as any other exceptions to the code granted here, will become void; 3. that the accessory structure shall never include a kitchen, toilet, bathtub, or interior shower, shall never be used for sleeping purposes, and shall never be used for living purposes as a second dwelling unit; 4. that the conditions of the Chief Building Official's August 21, 2009 and June 19, 2009 memos, the City Engineer's February 2, 2009 memo, the Fire Marshal's January 14, 2009 memo, and the NPDES Coordinator's January 14, 2009 memo shall be met; 5. that demolition or removal of the existing structures and any grading or earth moving on the site shall not occur until a building permit has been issued and such site work shall be required to comply with all the regulations of the Bay Area Air Quality Management District; 6. that prior to issuance of a building permit for construction of the project, the project construction plans shall be modified to include a cover sheet listing all conditions of approval adopted by the Planning Commission, or City Council on appeal; which shall remain a part of all sets of approved plans throughout the construction process. Compliance with all conditions of approval is required; the conditions of approval shall not be modified or changed without the approval of the Planning Commission, or City Council on appeal; 7. that all air ducts, plumbing vents, and flues shall be combined, where possible, to a single termination and installed on the portions of the roof not visible from the street; and that these venting details shall be included and approved in the construction plans before a Building permit is issued; 8. that the project shall comply with the Construction and Demolition Debris Recycling Ordinance which requires affected demolition, new construction and alteration projects to submit a Waste Reduction plan and meet recycling requirements; any partial or full demolition of a structure, interior or exterior, shall require a demolition permit; and 9. that the project shall meet all the requirements of the California Building and Uniform Fire Codes, 2007 Edition, as amended by the City of Burlingame. Erica Strohmeier Associate Planner C. Marie Nasser, 715 Seabury Road, Hillsborough, CA 94010, property owner. Maurice Gonzales, 818 Crestview Drive, Millbrae, CA Q_TO30, designer. Attachments: Application to the Planning Commission Conditional Use Permit form Letter from Lisa Whitman, Associate Planner, to Maurice Gonzalez, project designer, dated June 1, 2009 Minutes from the May 26, 2009, Planning Commission Regular Action Meeting Letter from Maurice Gonzalez, date stamped May 20, 2009 Photo of as-built structure San Mateo County Appraisal Report from 1952 New Staff Comments from the Chief Building Official Staff Comments (for previous application) Planning Commission Resolution (Proposed) Notice of Public Hearing — Mailed September 4, 2009 Aerial Photo -3- 06/02/2009 11:06 6506963790 PAGE 04/08 o rturpnnc COMMUNITY DEVELOPMENT DEPARTMENT a 501 PRIMROSE ROAD" BURLINGAME,CA 94010 p: 650.558.7250 •f: 650.696.3790 • www.burlingame.org APPLICATION TO THE PLANNING COMMISSION MISSiON Type of application: D Design Review 0 Variance d Parcel #: '7(, Conditional Use Permit O Special Permit U Other: PROJECT ADDRESS: 0 Blease Indicate the conMd person for this project_— APPLiCANT project contact person Oa PROPERTY OWNER project contact person) OK to send electronic copies of documents f Off to send electronic copies of documents Name: _ C/� ��� f� Name: ✓ �,� ti7 Address: t,�,1f v�l 10/' Address: ZfJr �• >���i�i'� /1 U lm City/State/Zip: 1141V ATO -OZ City/State/Zip: Phone: _:�Z�Z -7--36 r Phone: 670� JZ� 0 TZI Fax: al- ��', i> jr'� 27 2-01 E-mail: r_-mail- D ARCHITECT/DESIGNER project contact parson `J OK to send ele=ctronic copies of docurnents Name: ofi 1r E l=T oly_rA -L�z Address: ��?E5 T C�/ tiff �✓� City/State/Zip: Phone: 663N 430 " 416 Z9 Fax: 52.` 176 E-mall: * Burlingame Business License#: PROJECT DESCRIPTION: . AFFAD"rr/SIGNATURE: I hereby certify under penalty of perjury that the information given herein is true and correct to the best of my knowledge an t? �f.� Applicant's signature: " 4' Date: 1 L i am aware of she proposed ap ,iiG-: n an' hr;,�Gy au`Ll"ori:i;the ebove Qppli:.t;nt to subrnit:' !s a plicat;�^;o t,�;e PEg1j trl� Commission. J 1 -1 n t 1 V 'r�petty . :mr'S ` � / Date Submitted: * Verification that the project archttQct/designer has a valid Burlingame business license will be rewired by the Finance Department at the time application fees are paid. 0 Plaose mark one box above with an X to lndleate the contact person for this project, S.,%Handouts\PC Application 20Q8-13.handou! 06/02/2009 11:06 6506963790 PAGE 06/08 CRy of Suriingsme•community Developmont Dapartment•501 Primrose Road•P(650)558.7250•F(850)B96.379D•ymNr.burlinoamP'Rcg BlJRL[NGAME , '- ,u. L,;: .':..,.f'A, F' ';ii c a•`�'n �� {�p�{- - -_ {cam �y + � 1:a:.rlYll'>I_i-, 9.,.' .tX., The Planning Coirmission is required by law tb make findings as defined by the City's Ordinance (Code rection 25.52:020)., Your an."ers to the following questions can assist the Planning Commission in making the decision as to whether the findings can be made far your request. Please t*pe or write heatly In Irk. Refer-tb the back of this farm for assistance with these questions. 9. Explain why the proposed use at the proposed location will not-be detrimental or injurious U) property or improvements in the vicinity or to public health, safety, genbral wolfare or convenience. 2, How Will the proposed use be located and"conducted in accordance with the Burlingamb General Plan and Zoning Ordinance? Z)1 0-n OL Cu't7 3. How will tho-proposed project be compatible with the aesthetics, mass, bulk and ch*Metbr cif the dkisting and potential uses an adjoining.-properties in the general vielnityP . ��� Com_?' U ccL Yr'�a � -40-T17 o UUU Rev 06.2007 CUP2007.FRM sfr OF IJV?�ihi�An��it< a COMMUNITY DEVELOPMENT DEPARTMENT CITY OF BURLIIVC3AItilE BURLINGAME Planning Division City Hall—501 Primrose Road PH: (650) 558-7250 Burlingame, California 94010-3997 FAX: (650)696-3790 June 1, 2009 Maurice C. Gonzalez 818 Crestview Drive Millbrae, CA 94030 Dear Mr. Gonzalez, On May 26, 2009, the Planning Commission denied your request for three Conditional Use Permits for the accessory structure built without permits at 349 Lexington Way. You asked me to put your options in writing to assist you in discussions with your client regarding next steps. Your options are: 1. Demolish the structure. This will require a demolition permit from the Building Division. 2. Appeal the Planning Commission's action to the City Council. Appeals cost $485 and must be filed with the City Clerk within 10 days of the Planning Commission's decision. In this case, the appeal would need to be filed by 5pm on Thursday, June 4th. I cannot predict what the City Council's action would be in this case. Over the past few years, in most cases, the City Council has upheld the Planning Commission's decisions. 3. Revise the as-built structure to eliminate the need for any Planning Commission approval. This would require removing the toilet from the structure (and any plumbing greater than 2" in diameter), removing any windows within 10' -of a property line, decreasing the size Of the structure to comply with code, removing the gas line to the structure, and not using the structure as an art studio. This work would require a permit from the Building Division. 4. Submit a new application that would substantially revise the project as it was reviewed by the Planning Commission. When a project is denied, the same application cannot be submitted for review by the Planning Commission within one year. The revised project would require that revised plans be prepared to address the Planning Commission's concerns that were expressed at the May 26th hearing. The revised project should eliminate the need for two of the conditional uses permits (for the plumbing facilities and window within 10 feet of properK, line). This !Mould be considered a substantial revision to the project which was denied. The revised application would be for a Conditional Use Permit to use the accessory structure for recreational purposes. The revised plans would need to show that the toilet (and any plumbing greater than 2"), the gas line, and the rear window would be removed. This Register online for the City of Burlingame list serve at wvvw.burlingame.org M2 would be considered a new project and application fees would apply. If approved by the Planning Commission, a permit would be required from the Building Division. With the exception of Option #2 above, an application must be submitted to either the Planning or Building Division no later than June 26, 2009, or the City will continue with the code enforcement process. Once you decide on a course of action, please contact me to have a more detailed discussion regarding next steps. If I can be of any assistance, please call or email me anytime. Sincerely, Lisa Whitman Associate Planner c. Marie Nasser, property owner Chief Building Official, City of Burlingame Register online for the City of Burlingame list serve at www.burlingame.org 55 CITY OF BURLINGAME PLANNING COMMISSION–Approved Minutes May 26, 2009 SECOND STORY ADDITION TO A SINGLE FAMILY DWELLING (JENNIFER AND ANTHONY LEE, APPLICANTS AND PROPERTY OWNERS; AND STEWART ASSOCIATES, ARCHITECT) STAFF CONTACT: RUBEN HURIN Commissioner Auran moved approval of the Consent Calendar based on the facts in the staff reports, Commissioner's comments and the findings in the staff reports, with recommended conditions in the staff reports and by resolution. The motion was seconded by Commissioner Brownrigg. Chair Terrones called for a voice vote on the motion and it passed 4-0-3 (Commissioners Yie, Vistica, and Cauchi absent). Appeal procedures were advised. This item concluded at 7:07 p.m. VIII. REGULAR ACTION ITEMS 2. 349 LEXINGTON WAY, ZONED R-1 – APPLICATION FOR CONDITIONAL USE PERMITS FOR A WORKSHOP/ART STUDIO IN AN ACCESSORY STRUCTURE (BARRY CHANDLER,APPLICANT AND DESIGNER; AND MARIE NASSER PROPERTY OWNER) STAFF CONTACT: LISA WHITMAN Reference staff report dated May 26, 2009, with attachments. Associate Planner Whitman presented the report, reviewed criteria and staff comments. Nine (9) conditions were suggested for consideration. Chair Terrones opened the public hearing. Maurice Gonzalez, 818 Crestview Drive, Millbrae; and Marie Nasser, 715 Seabury Road, Hillsborough; represented the applicant. Commission comments: ■ Clarified that the drawings represent what has been built on the plans submitted with the application. ■ Requested clarification regarding who inspected the structure. (Gonzalez – he inspected the property; he is a licensed building inspector.) The structure appears to be a living unit, not an art studio; how can the community be ensured that the structure will not be converted to a living unit? (M. Nasser–intention is to have daughter live in the house and use the structure as an extra room. Will not be rented out.) ■ Is the structure plumbed for a shower? (Gonzalez–is plumbed for a water closet.) Public comments: Steve Dwyer, 324 Dwight Road, spoke; ■ Have observed activities that indicate that the structure is being lived-in (provided photos). ■ Concerned about the utility pole on the property; it is about 3-feet from the property line; is there a prohibition on locating a structure within a distance of the utility pole? ■ No permits were issued for the project; seems an odd way to add a unit to the property;would have been more economical to build an addition onto the residence. Requested denial, based upon evidence that it is intended to be a habitable unit. Additional Commission comments: ■ Asked if aas service is available to the building? (Gonzalez–believes there is gas service. Noted that the building was inspected by Brooks MacNeil, Senior Building Inspector. Gonzalez only inspected during the framing stage.) __ — 2 _—ITY OF BURLINGAME PLANNING COMMISSION—Approved Minutes May 26, 2003 Additional applicant comments: ■ Refuted neighbor's contention that the unit is being rented out; the current tenants will move out and eventually her daughter will move into the residence. The structure is used purely for storage. Further Commission comments: ■ Asked for clarification regarding occupancy of the dwelling. ■ Asked if applicant would agree to eliminating window on the rear? (Nasser—yes.) ■ Why was no permit received? (Nasser—wasn't aware of need for permit.) There were no further comments and the public hearing was closed. More Commission comments: ® Must remove the rear window, remove plumbing and gas connections and revert it back to a storage building. ® Would it be acceptable to allow only a sink, but no toilet or other fixtures? ® Looks like a second unit. ■ Not knowing who completed the structure, it is possible that the structure hasn't been completed in a safe manner. ■ Likely would not have approved a toilet with a sink, but would have likely allowed a sink in association with an art studio. ® Needs to be fully reviewed by the Building Division, and a permit issued. ® Wanted clarification on the location of the utility pole. Commissioner Auran moved to deny the application, with prejudice. The motion was seconded by Commissioner Cauchi. Discussion of motion: ■ None. Chair Terrones called for a voice vote on the motion to deny. The motion passed 5-0-2 (Commissioners Yie and Vistica absent). Appeal procedures were advised. This item concluded at 7:31 p.m. IX. DESIGN REVIEW STUDY ITEMS Chair Terrones noted that he will recuse himself from participating in the discussion regarding Agenda item 3 (1311 Paloma Avenue), sincef his firm prepared the project plans. He left the Council Chambers. Commissioner Cauchi assumed the role of Acting Chair. 3. 1311 PALOMA AVENUE, ZONED R-1 — APPLICATION FOR DESIGN REVIEW AND PARKING VARIANCE FOR A NEW ONE AND ONE-HALF STORY SINGLE FAMILY DWELLING (CAROLE VALENTINE, APPLICANT AND PROPERTY OWNER; AND DREILING/TERRONES ARCHITECTURE, ARCHITECT) TnFF r� n� TnCT. CTA CT�Gltl�ACICF? T 3 1cf %IL-.i`li,I�!`!.. NR �� �f, a,:. t5'. �- v�`�r ,�:1� � ✓•t�i�>F't;.e n_ -� +�' �'t,�Y"y'�.T#� ..1N.d [, .: r AHi , � M'y'>~��.I v ', k ,jI -� F k' :Y = ''. � ,sa9`t, ,•.?ltr* f^?ba wd'"n: i 1<'i� '� ^., *t+ �K..,1ro ( � t 3-: y .� -� ' �••� .�q" ���ar �' ,�¢:'t�,st-n�.� _:..R:� �•4-ri:. t�� ; •z`.+�rf �,a•��+ r'_ � i, �.... x:Ti4'•'*.:, �i ..�� ::,t £r�dd ,�, %� .�+. 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D ` . 1T sk* �r �t, i<t• `�A � *'` try• �•t• r ° �. a. wa-«rte; 4 � k45'• � ) 4 Project Comments Date: Revised Plans Submitted August 17, 2009 To: ❑ City Engineer ❑ Recycling Specialist (650) 558-7230 (650) 558-7273 X Chief Building Official ❑ Fire Marshal (650) 558-7260 (650) 558-7600 ❑ City Arborist ❑ NPDES Coordinator (650) 558-7254 (650) 342-3727 ❑ City Attorney From: Planning Staff Subject: Request for Conditional Use Permit for an accessory structure to be used for recreational purposes a`: 349 Lexington Way, zoned R-1, APN: 029-192-050 Staff Review: N/A Comments 1, 11, and 12 have been addressed. Comment #2: Provide a completed GreenPoints Checklist with the building permit application for this project. Comment #3: The owner has been notified that one surface of each wall must be removed for inspection purposes. After the permit is issued the owner must schedule an inspection with the Building Division to determine which walls should be opened. All other conditions of approval as stated in the review dated 6/19/09 apply to this project. Reviews by: /� Dater i/1-o /f Project Comments Date: June 18, 2009 To: ❑ City Engineer ❑ Recycling Specialist (650) 558-7230 (650) 558-7273 X Chief Building Official ❑ Fire Marshal (650) 558-7260 (650) 558-7600 ❑ City Arborist ❑ NPDES Coordinator (650) 558-7254 (650) 342-3727 ❑ City Attorney From: Planning Staff Subject: Request for Conditional Use Permit for accessory structure to be used for recreational purposes at 349 Lexington Way, zoned R-1, APN: 029-192-050 Staff Review: June 22, 2009 1)._jOn the plans specify that this project will comply with the 2007 California Building Codes (CBC). YPer the City of Burlingame's adopted Resolution, applications received after January 1, 2009 must complete a "GreenPoint Rated Checklist". The GreenPoint Rated Checklist, and other information regarding the City's Green Building requirements, can be found on the City website at the following URL: http://www.burlingame.org/index.aspx?page=:1219 or Contact Joe McCluskey at �50-558-7273. �ecause this building was constructed withoL't permits no inspections have been performed. One surface of each wail must be removed for inspection purposes. Indicate on the plans how this will be achieved. 4) Anyone who is doing business in the City must have a current City of Burlingame business license. 5) Provide fully dimensioned plans. 6) This project will be considered a New Building because, according to the City of Burlingame Municipal code, "when additions, alterations or repairs within any twelve-month period exceed fifty percent of the current replacement value of an existing building or structure, as determined by the building official, such building or structure shall be made in its entirety to coiform with the requirements for new buildings or structures." This building must comply with the 2007 California Building Code for new structures. 7) All projects for which a building permit application is received on or after August 1, 2009 must comply with the 2008 California Energy Efficiency Standards. Go to http://www.energy.ca.gov/title24 for publications and details. 8) Show the distances from all exterior walls to property lines or to assumed property lines 9) Show the dimensions to adjacent structures. 1 obtain a survey of the property lines. 1 n the plans specify that the roof eaves will not project within two feet of the perty line. 1 dirate on the plans that exterior bearing walls less than five feet from the property line will be built of one-hour fire-rated construction.(Table 602) 13)Provide guardrails at all landings.NOTE:All landings more than 30"in height at any point are considered in calculating the allowable lot coverage.Consult the Planning Department for details if your project entails landings more than 30"in height. 14)Provide handrails at all stairs where there are four or more risers. 15)Provide lighting at all exterior landings. NOTE:A written response to the items noted here and plans that specifically address items 1,2,3,11,&12 must be re-submitted before this project can move forward for Planning.Commission action. Reviewed by: Date: e / Project Comments Date: January 12, 2009 To: Y City Engineer I❑ Recycling Specialist (650) 558-7230 (650) 558-7271 ❑ Chief Building Official ❑ Fire Marshal (650) 558-7260 (650) 558-7600 ❑ City Arborist ❑ NPDES Coordinator (650) 558-7254 (650) 342-3727 ❑ City Attorney From : Planning Staff Subject: Request for Conditional Use Permit for a workshop/art studio in an existing accessory structure at 349 Lexington Way, zoned R-1 , APN: 029-192-050 Staff Review: January 12, 2009 No comment. Reviewed by: V V Date: 2/02/2009 Project Comments Date: January 12, 2009 To: 0 City Engineer 0 Recycling Specialist (650) 558-7230 (650) 558-7271 0 Chief Building Official Y Fire Marshal (650) 558-7260 (650) 558-7600 ® City Arborist 0 NPDES Coordinator (650) 558-7254 (650) 342-3727 0 City Attorney From: Planning Staff Subject: Request for Conditional Use Permit for a workshop/art studio in an existing accessory structure at 1349 Lexington Way, zoned R-1, APN: 029-192-050 Staff Review: January 12, 2009 No comment at this time. Reviewed by: ` ;�7 Date: � a�' Project Comments Date: January 12, 2009 To: 0 City Engineer 0 Recycling Specialist (650) 558-7230 (650) 558-7271 0 Chief Building Official 0 Fire Marshal (650) 558-7260 (650) 558-7600 0 City Arborist J NPDES Coordinator (650) 558-7254 (650) 342-3727 0 City Attorney From: Planning Staff Subject: Request for Conditional Use Permit for a workshop/art studio in an existing accessory structure at 349 Lexington Way, zoned R-1, APN: 029-192-050 Staff Review: January 12, 2009 Any construction project in the City, regardless of size, shall comply with the City NPDES permit requirement to prevent stormwater pollution from construction activities. Project proponent shall ensure all contractors implement Best Management Practices (BMPs) during construction. Include a list of BMPs and an erosion and sediment control measures pian, as project notes, when submitting plans for a building permit. Please see attached brochures for guidance. For additional assistance, contact Kiley Kinnon at (650) 342-3727. Reviewed by: Date: O 1 i ' C� RESOLUTION APPROVING CATEGORICAL EXEMPTION AND CONDITIONAL USE PERMIT RESOLVED, by the Planning Commission of the City of Burlingame that: WHEREAS, a categorical exemption has been proposEA and application has been made for Conditional Use Permit for an accessory structure to be used for recreational purposes at 349 Lexington Way, zoned R-1, Marie Nasser, 715 Seabury Rd, Hillsborough, CA 94010, property owner, APN: 029-192-050; WHEREAS, said matters were heard by the Planning Commission of the City of Burlingame on September 14, 2009, at which time it reviewed and considered the staff report and all other written materials and testimony presented at said hearing; NOW, THEREFORE, it is RESOLVED and DETERMINED by this Planning Commission that: 1. On the basis of the Initial Study and the documents submitted and reviewed, and comments received and addressed by this commission, it is hereby found that there is no substantial evidence that the project set forth above will have a significant effect on the environment, and categorical exemption, per CEQA Article 19, Section 15303 - Construction or Conversion of Small Structures Class 3 (e), Accessory (appurtenant) structures including garages, carports, patios, swimming pools and fences. 2. Said Conditional Use Permit is approved subject to the conditions set forth in Exhibit "A" attached hereto. Findings for such Conditional Use Permit are set forth in the staff report, minutes, and recording of said meeting. 3. It is further directed that a certified copy of this resolution be recorded in the official records of the County of San Mateo. Chairman I, Secretary of the Planning Commission of the City of Burlingame, do hereby certify that the foregoing resoluJon was introduced and adopted at a regular meeting of the Planning Commission held on tl "th day of September,� 2009 by `-" �e A JepLCm VCI, V V LI IC following vote: Secretary EXHIBIT"X' Conditions of approval for Categorical Exemption and Conditional Use Permit. 349 Lexington Way Effective September 24,2009 1. that the project shall be built as shown on the plans submitted to the Planning Department date stamped September 1, 2009, sheets Al through A3, and that any changes to footprint or floor area of the accessory structure shall require an amendment to this permit; 2. that if the structure is demolished or the envelope changed at a later date the Conditional Use Permit, as well as any other exceptions to the code granted here,will become void; 3. that the accessory structure shall never include a kitchen, toilet, bathtub, or interior shower, shall never be used for sleeping purposes, and shall never be used for living purposes as a second dwelling unit; 4. that the conditions of the Chief Building Official's August 21, 2009 and June 19, 2009 memos, the City Engineer's February 2, 2009 memo, the Fire Marshal's January 14, 2009 memo,and the NPDES Coordinator's January 14,2009 memo shall be met; 5. that demolition or removal of the existing structures and any grading or earth moving on the site shall not occur until a building permit has been issued and such site work shall be required to comply with all the regulations of the Bay Area Air Quality Management District; 6. that prior to issuance of a building permit for construction of the project, the project construction plans shall be modified to include a cover sheet listing all conditions of approval adopted by the Planning Commission, or City Council on appeal;which shall remain a part of all sets of approved plans throughout the construction process. Compliance with all conditions of approval is required; the conditions of approval shall not be modified or changed without the approval of the Planning Commission, or City Council on appeal; 7. that all air ducts, plumbing vents, and flues shall be combined, where possible, to a single termination and installed on the portions of the roof not visible from the street;and that these venting details shall be included and approved in the construction plans before a Building permit is issued; 8. that the project shall comply with the Construction and Demolition Debris Recycling Ordinance which requires affected demolition, new construction and alteration projects to submit a Waste Reduction plan and meet recycling requirements; any partial or full demolition of a structure,interior or exterior,shall require a demolition permit;and 9. that the project shall meet all the requirements of the California Building and Uniform Fire Codes,2007 Edition,as amended by the City of Burlingame. `.:.'ro., .,...-`w.. a.v7r>v.. -u ;. ....,,q,-sr...n..F..:, ,°Yy: .s &.. : �svJ? 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' PH: (650)558-7250 • FAX: (650) 5 , $00-980 www.burlingame.org Orr 16 �� 7' � � 3:9ai1--',Frcn 94010 Site: 349 LEXINGTON WAY US POSTAGE The City of Burlingame City Council announces the PUBLIC HEARING following public hearing on MONDAY, October 19, NOTICE 2009 at 7:00 P.M. in the City Hall Council (hambers, 501 Primrose Road, Burlingame, CA: Appeal of the Planning Commission's denial with prejudice of a Conditional Use Permit for a recreational area in an accessory structure at 349 , LEXINGTON WAY zoned R-1. APN 029-192-050 Mailed: October 9, 2009 (Please refer to other side) - City, of Burlin ame A copy of the application and'plansfor this, project maybe reviewed prior to the meeting at the Community Development Department at 501 Primrose Road, Burlingame, California: if you challenge the subject applicatlon(s) in court, you maybe limited to raising only those issues you or someone else raised at the public hearing, described in the notice or in written correspondence dQllvered-to the city at or prior to the public hearing. Property owners who.receive this notice are responsible f6' informing their tenants about this`notice. For additional information, please call (650) 558-7250:Thank you. .m 5 William Meekerqt.A` — � Community Development Director , Y f 3;= ` I�11BLIC HEARING NOTICE (Please refer to other side) RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME, DENYING THE APPEAL OF BILL AND MARIE NASSER AND UPHOLDING THE PLANNING COMMISSION'S SEPTEMBER 14, 2009, DENIAL WITH PREJUDICE OF THE APPLICATION FOR CONDITIONAL USE PERMIT FOR AN ACCESSORY STRUCTURE TO BE USED FOR RECREATIONAL PURPOSES AT 349 LEXINGTON WAY, ON PROPERTY SITUATED WITHIN A SINGLE-FAMILY RESIDENTIAL (R-1) ZONE RESOLVED, BY THE CITY COUNCIL OF THE CITY OF BURLINGAME THAT: WHEREAS, on September 14, 2009, the Planning Commission denied with prejudice a Conditional Use Permit, related to an accessory structure to be used for recreational purposes located at 349 Lexington Way (APN: 029-192-050), and owned by Bill and Marie Nasser, 715 Seabury Road, Hillsborough, California, 94010; and WHEREAS, the Planning Commission's September 14, 2009 denial with prejudice was appealed by Bill and Marie Nasser, and the City Council conducted a public hearing on the appeal on October 19, 2009; denying the appeal and upholding the Planning Commission's denial with prejudice. NOW, THEREFORE, IT IS RESOLVED AND DETERMINED BY THE CITY COUNCIL THAT: 1. The City Council hereby denies the appeal and upholds the Planning Commission's September 19, 2009 denial of the application for Conditional Use Permit, based upon the Council's finding that the accessory structure and its elements are detrimental to the neighborhood and that there were inadequate justification presented by the property owner for the Conditional Use Permit. Additional findings for the City Council's action are as set forth in the minutes and recording of the City Council meeting of October 19, 2009. 2. It is further directed that a certified copy of this resolution be recorded in the official records of the County of San Mateo. Mayor I, Mary Ellen Kearney, City Clerk of the City of Burlingame, do hereby certify that the foregoing resolution was introduced and adopted at a regular meeting of the City Council held on the 19t day of October, 2009 by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: City Clerk 1 AGENDA ITEM: 7. BURLINGAME STAFF REPORT MEETING DATE: November 2.2009 n TO: HONORABLE MAYOR AND CITY COUNCIL SUBMITTED BY: DATE: October 27,2009 APPROVED BY: ? FROM: William Meeker,Community Development Director—(650)558-7255 SUBJECT: INTRODUCTION OF AN ORDINANCE OF THE CITY OF BURLINGAME AMENDING CHAPTER 25.16.130 OF TITLE 25 OF THE 13URLINGAME MUNICIPAL CODE TO INCREASE THE TIME LIMIT FOR EXERCISE OF VARIANCE,CONDITIONAL USE PERMIT,SPECIAL PERMIT,OR CONDOM1141UM PERMIT AND TO AMEND THE TIME LIMIT FOR EXTENSIONS,AND TO AMEND CHAPTER 25.57.030 TO CLARIFY THE APPEAL PERIOD FOR DESIGN REVIEW APPLICATIONS RECOMMENDATION The City Council should review the proposed ordinance amending certain provisions of the Zoning Code,suggest any changes,if desired,and introduce the ordinance. The following actions should be taken to introduce the ordinance; A. Request City Clerk to read title of the proposed ordinance. B. Waive further reading of the ordinance. C. Introduce the proposed ordinance. D. Direct the City Clerk to publish a summary :)f the ordinance at least five days before proposed adoption. If the proposal for the amendments to the Zoning Code is clear, this item should be set for a public hearing,and consideration for adoption at the Council meeting of November 16,2009. BACKGROUND On September 14, 2009, the Planning Commission recommended that the City Council adopt the following amendments to Title 25 of the Municipal Code(toning Ordinance): • Increase the initial time limit for exercising approvals granted by the Planning Commission and City Council from one year to three years(Burlingame Municipal Code Section 25.16.130(a); Amend the number and time limit for extensions fmm one year extensions(applicant may now apply for more than one extension)to a one-time, two-year extension(Burlingame Municipal Code Section 25.16.130(a); 1 INTRODUCE ORDINANCE AMENDING TITLE 25 (ZONING CODE) November 2, 2009 ■ Provide for the application of the proposed time limit amendments to approvals that have not yet expired, or are still within an approved one-year extension; and ■ Clarify and amend the appeal period for design review applications from 7 days to 10 days to be consistent with appeal periods for other applications (Burlingame Municipal Code Section 25.57.030 (h). The City Council previously considered the amendments at its meeting of October 5, 2009 (see attached City Council Staff Report from that date which provides full analysis of the amendments, as well as the minutes from the meeting). At that time, the Council generally concurred with the Planning Commission's September 14, 2009 recommendations, but expressed a desire to include a "sunset clause" which would limit the life of the amendment related to approvals granted by the Planning Commission and/or City Council to a period of two years; after which time the time limits for permit approvals and extensions would revert back to the current one year initial term, with the opportunity for additional one year extensions beyond that initial teen. The addition of the sunset clause was deemed a material change to the proposed amendments, causing the Council to remand the package of amendments back to the Planning Commission for consideration of the addition of the sunset clause. Latest Planning Commission Action: At its meeting of October 26, 2009; the Planning Commission conducted a public hearing to consider the proposed amendments extending time limits for approvals granted by the Planning Commission and/or City Council; extending the term for extensions of such approvals; and clarifying the appeal period for design review applications. The primary focus of the hearing was the addition of a sunset clause, as suggested by the City Council on October 5, 2009. Following conclusion of the public hearing, the Planning Commission moved to recommend approval of the amendments as contained in the draft resolution attached to this report, including the addition of a two year sunset clause, as follows: The term for this amendment extending time limits- applicable to permits granted by the Planning Commission and/or City Council as referenced herein, shall "sunset" (expire) two (2) years following the effective date of the amendment; after which time, the initial term for permits granted following the "sunset" date shall be one (1) year, with the opportunity provided for one (1) year extensions; as stated within Section 25. 16. 130 of Title 25 of the Burlingame Municipal Code ' prior to adoption of the amendments contained herein. Impact of the Sunset Clause: Projects approved, or permits for which times limits have been extended, during the two year period that the extended time limits remain in place would continue to benefit from the extended time limits granted during the period of applicability of the amendments. Upon "sunset" of the amendment to the time limits, the remaining time limit for any existing approvals would be allowed to lapse in accordance with the latest approval; whether an initial approval, or extension. Beyond the "sunset" date, new project approvals would be subject to a one-year initial time limit, with the opportunity for one year extensions beyond that initial period. Environmental Review Status: The proposed changes to the Zoning Code are Categorically Exempt from review pursuant to the California Environmental Quality Act (CEQA), per Section 15061 (b) (3) of the California Guidelines for Implementation of the California Environmental Quality Act (CEQA) which states that where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment that the activity is not subject to CEQA. No significant environmental impacts would occur as a result of this amendment. 2 INTRODUCE ORDINANCE AMENDING TITLE 25(ZONING CODE) November 2,2009 Attachments: • Draft Ordinance Amending Chapter 25.16.130 of--itle 25 of the Burlingame Municipal Code • October 5,2009 City Council Staff Report • October 5,2009 City Council Minutes • August 24, 2009; September 14, 2009; and October 26, 2009 Planning Commission Minutes 3 1 ORDINANCE NO. 2 ORDINANCE OF THE CITY OF BURLINGAME AMENDING CHAPTER 25.16.130 OF TITLE 25 OF 3 THE BURLINGAME MUNICIPAL CODE TO INCREASE THE TIME LIMIT FOR EXERCISE OF VARIANCE, CONDITIONAL USE PERMIT,SPECIAL PERMIT,OR CONDOMINIUM PERMIT AND TO 4 AMEND THE TIME LIMIT FOR EXTENSIONS, AND TO AMEND CHAPTER 25.57.030 TO CLARIFY THE APPEAL PERIOD FOR DESIGN REVIEW APPLICATIONS 5 6 The CITY COUNCIL OF THE CITY OF BURLINGAME does hereby ordain as follows: 7 Section 1. Section 25.16.130 is amended to read as follows: 8 25.16.130 Time limit for exercise of variance, conditional use permit, special permit, or 9 condominium permit. 10 (a) Where a use is conditional upon the granting of a variance or the issuance of a 11 conditional use permit or special permit, such use shall be commenced within a period of three years 12 from the date of the granting of the variance or the issuance of the conditional use permit or special 13 permit, and in the event that such use shall not have been so commenced within such period, such 14 variance or permit shall become null and void. The commission is authorized to grant one extension for a 15 period not exceeding two years upon application. 16 (b) In those instances where an initial approval referenced in 25.16.130 (a) remains valid as 17 of (effective date of this ordinance), the initial approval shall be automatically extended for a period of 18 two additional years from the initial expiration date. For those approvals granted a one-year extension 19 that remains effective as of (effective date of this ordinance), the term of the extension shall be 20 increased by one-year from the date of expiration. 21 (c) However, where a variance, conditional use permit, special permit, or condominium 22 permit has been granted or issued for conversion or development and construction of a condominium 23 pursuant to Title 26, the variance or permit shall become null and void when the tentative map for the 24 condominium expires because no final map has been filed pursuant to State law and this code, rather 25 than the time limits specified in subsection (a) above. 26 (d) Notwithstanding the amount of applicable development impact fees and/or permitting 27 fees in place at the time of the initial approvals; such fees collected shall be in the amount adopted by 28 resolution of the Burlingame City Council as of the date of Building Permit issuance. 29 (e) The term for this amendment extending time limits applicable to permits granted by the 30 Planning Commission and/or City Council as referenced herein, shall "sunset" (expire) two (2) years 31 following the effective date of the amendment; after which time, the initial term for permits granted 32 following the "sunset' date shall be one (1) year, with the opportunity provided for one (1) year -1 1 extensions, as stated within Section 25.16.130 of Title 25 of the Burlingame Municipal Code prior to 2 adoption of the amendments contained herein. 3 Section 2. Section 25.57.030 is amended to read as follows: 4 25.57.030 Design Review Process. 5 (a) Any person seeking approval of construction to be reviewed under this chapter shall 6 submit an application for design review to the director of community development in the same form and 7 containing the same signatures as provided in Section 25.16.040 of this title. The schematic design 6 plans submitted with the application shall demonstrate the architectural details of the proposal, and in 9 the case of an addition, of the existing structure and the addition. 10 (b) Upon completion of the application, the schematic design plans and the application shall 11 be referred to the planning commission for study. The study meeting shall be noticed in accordance with 12 the provisions for notice in this title. If at the study meeting, the planning commission determines that 13 formal design review is not required for the application or that only minor changes are needed, the 14 planning commission may order that the application not be subject to subsection (c) below and will 15 proceed directly to hearing under subsection (e). 16 (c) If the commission instead refers the application for further design review, the plans 17 submitted shall be referred by the director of community development on a random basis to the 1e appointee professional described above for review and comment. The appointee's analysis shall be 19 forwarded to the planning commission. 20 (d) No prior mailed notice of the appointee's review is necessary. However, notice of the 21 commission's review of and hearing on each application under this chapter shall be given a provided in 22 Section 25.16.050. 23 (e) A design review application in an R-1 district shall be reviewed by the planning 24 commission for the following considerations: 25 (1) Compatibility of the architectural style with that of the existing character of the 26 neighborhood; 27 (2) Respect for the parking and garage patterns in the neighborhood; 29 (3) Architectural style and consistency and mass and bulk of structures, including accessory 29 structures; 30 (4) Interface of the proposed structure with the structures on adjacent properties; 31 (5) Landscaping and its proportion to mass and bulk of structural components; and 32 (6) In the case of an addition, compatibility with the architectural style and character of the existing structure as remodeled. -2 1 (f) A design review application in a C-1 or C-2 district shall be reviewed by the planning 2 commission for the following considerations: 3 (1) Support of the pattern of diverse architectural styles that characterize the city's 4 commercial areas; and 5 (2) Respect and promotion of pedestrian activity by placement of buildings to maximize 6 commercial use of the street frontage, off-street public spaces, and by locating parking so that it does 7 not dominate street frontages; and 8 (3) On visually prominent and gateway sites, whether the design fits the site and is 9 compatible with the surrounding development; and 10 (4) Compatibility of the architecture with the mass, bulk, scale, and existing materials of 11 existing development and compatibility with transitions where changes in land use occur nearby; and 12 (5) Architectural design consistency by using a single architectural style on the site that is 13 consistent among primary elements of the structure, restores or retains existing or significant original 14 architectural features, and is compatible in mass and bulk with other structures in the immediate area; 15 and 16 (6) Provision of site features such as fencing, landscaping, and pedestrian circulation that 17 enriches the existing opportunities of the commercial neighborhood. 18 (g) The applicant shall bear the burden of demonstrating to the satisfaction of the planning 19 commission that the applicant's design and project comply with the design criteria set forth in 20 subsections (e) or (f) above, as applicable. The commission may deny, deny without prejudice, approve, 21 or approve with conditions any application under this chapter. zz (h) Decisions of the planning commission under this chapter shall be subject to appeal to 23 the city council and the effectiveness as provided in Sections 25.16.070 through 25.16.130. 24 Section 3. This ordinance shall be published as required by law. 25 26 27 Mayor 26 I, MARY ELLEN KEARNEY, City Clerk of the City of Burlingame, do hereby certify that the foregoing ordinance was introduced at a regular meeting of the City Council held on the day of 29 2009 and adopted thereafter at a regular meeting of the City Council held on the day of , 2009, by the following vote: 30 31 AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: 32 ABSENT: COUNCILMEMBERS: City Clerk -3 AGENDA ITEM NO: BURLINGAME STAFF REPORT MEETING DATE: October 5,2009 TO: HONORABLE MAYOR AND CITY COUNCIL SUBMITTED BY: DATE: September 29, 2009 APPROVED BY: FROM: William Meeker, Community Development Director— (650) 558-7255 SUBJECT: INTRODUCTION OF AN ORDINANCE OF THE CITY OF BURLINGAME AMENDING CHAPTER 25.16.130 OF TITLE 25 OF THE BURLINGAME MUNICIPAL CODE TO INCREASE THE TIME LIMIT FOR EXERCISE OF VARIANCE, CONDITIONAL USE PERMIT, SPECIAL PERMIT, OR CONDOMINIUM PERMIT AND TO AMEND THE TIME LIMIT FOR EXTENSIONS, AND TO AMEND CHAPTER 25.57.030 TO CLARIFY THE APPEAL PERIOD FOR DESIGN REVIEW APPLICATIONS INTRODUCTION: The City Council should review the proposed ordinance amending certain provisions of the Zoning Code, suggest any changes, if desired; and introduce the ordinance. The following actions should be taken to introduce the ordinance, A. Request City Clerk to read title of the proposed ordnance. B. Waive further reading of the ordinance. C. Introduce the proposed ordinance. D. Direct the City Clerk to publish a summary of the ordinance at least five days before proposed adoption. If the proposal for the amendments to the Zoning Code is clear, this item should be set for a public hearing, and consideration for adoption at the Council meeting of October 19, 2009, Environmental Review Status: The proposed changes to the Zoning Code are Categorically Exempt from review pursuant to the California Environmental Quality Act (CEQA), per Section 15061(b)(3) of the California Guidelines for Implementation of the California Environmental Quality Act (CEQA) which states that where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment that the activity is not subject to CEQA. No significant environmeital impacts would occur as a result of this amendment. Planning Commission Action: On August 24, 2009, the Planning Commission reviewed the proposed changes to the Zoning Code at a regular study session. The Commission had several questions regarding the proposed amendments and responses were provided by staff at the meeting (refer to attached August 24, 2009 Planning Commission Minutes). The Commission suggested no changes to the proposed amendments at that time. At the Planning Commission meeting on September 14, 2009, the Commission held a public hearing on the proposed changes to the Zoning Code (refer to attached September 14, 2009 Planning Commission Minutes). One person from the public spoke noting that the nitial approval should be valid for only two (2) years instead of three (3) years, because with the two-year extension a total of five (5) years is too long; that INTRODUCE ORDINANCE AMENDING TITLE 25 (ZONING CODE). October 5, 2009 it is a good idea to make the amendments retroactive to include active project approvals; and that increasing the appeal period to ten (10) days for design review applications is good because it provides more time for anyone interested in the project to appeal. The Commiss on noted that they agree with the changes suggested by staff. However, they expressed some concern about the initial approval term of three (3) years being too long and noted that they would be more comfortable with an initial two (2) year term. On the other hand, the Commission also pointed out that there could be fewer requests for extensions with an initial three (3) year term. The Commission recommended the proposed changes to the Zoning Code, as presented (with a three-year initial term), to the City Council for action. Project Description: The following amendments are proposed for consideration by tie City Council: • Increase the initial time limit for exercising approvals granted by the Planning Commission and City Council from one year to three years (Burlingame Municipal Code Section 25. 16. 130 (a); ■ Amend the number and time limit for extensions from one year extensions (applicant may now apply for more than one extension) to a one-time, two-year extension (Burlingame Municipal Code Section 25. 16. 130 (a); • Provide for the application of the proposed time limit amendments to approvals that have not yet expired, or are still within an approved one-year extension; and ■ Clarify and amend the appeal period for design review applications from 7 days to 10 days to be consistent with appeal periods for other applications (Burlingame Municipal Code Section 25.57.030 (h). Attachment "A" is an edited copy of the existing code sections with strikeouts and proposed new language. Attachment "B" is a clean copy of the ordinance as it would be adopted. Background: Increase the Time Limit for Exercising Approvals Granted by Planning Commission and City Council: Residents and business owners in the City of Burlingame have been experiencing economic difficulties during the recession. In its second quarterly report of 2009 (released June 16, 2009), UCLA Anderson Forecast senior economist Jerry Nickelsburg notes "there is nothing happening in California that will help pull the state out of recession in advance of the nation." The Fo-ecast also says that "overall, the forecast for California is for a very weak first two quarters of 2009, to be followed by very little growth in the last six months of the year. The economy will begin to pick up in 2010 and return to more normal levels of growth in 2011 ." In speaking with homeowners, contractors and developers, Planning Division staff is finding that because of the recession, many applicants are postponing building projects approved by the Planning Commission and City Council until the economy recovers. Applicants have given several reasons for deferring projects, including job loss and difficulties in obtaining a construction loan or obtaining a loan at a reasonable rate. Currently, the Zoning Code (Code Section 25.16.130) requires construction for a project which includes approval of a variance, conditional use permit, special permit, condominium permit or design review application to commence within one year from the date of approval by the Planning Commission and/or City Council. Planning staff would note that a building permit must be issued within that one year period. If the applicant is unable to commence with the use or obtain a building permit within one year of approval, the Commission may grant a one-year extension upon request by the applicant. Currently, the Zoning Code allows the Commission to grant more than one extension upon review of the application; though, historically, the policy has been to grant only one extension. -2- INTRODUCE ORDINANCE AMENDING TITLE 25(ZONING CODE). October 5, 2009 Staff would note that in the case of a condominium or condorr inium conversion project, the approval is valid until the tentative map for the condominium subdivision exp res, which is two years during which time a building permit must be issued. Generally, an extension of up-:o three years may be considered if application is made before the end of the second year, in accordance with the provisions of the Subdivision Map Act for a Tentative Map. This proposed amendment would not make any changes to time limits involving condominium projects. As previously noted, applicants are increasingly deferring projE�cts because of the current economic situation. The existing time limit to exercise an approval may not be sufficient to keep permits alive until the economy recovers. Often, applicants may be forced to let permits Expire or may not remember to apply for an extension. In addition, other cities have time limits for exercising approvals which exceed our current provisions. Based on these factors, this amendment is proposed to increase the time limit of the initial term for exercising approvals granted by the Planning Commission and City Council from one year to three years. The amendment would also change the time limit for extensions from unlimited, one-year extensions to a one time, two-year extension to provide a control on the extensions. Combined, these amendments would provide an applicant up to five years to exercise their approval and obtain a building permit to construct the project. It is suggested that the revised time limits also be applied to approvals that have not yet reached their initial expiration, or that have been extended and remain valid; in other words, an initial one-year approval that has not expired as of the effective date of the amendments would be automatically receive a two-year additional term for the initial approval (resulting in an initial term of three years). For those approvals that have received a one-year extension; an additional one-year would be added to the extension period (for an extension period totaling two years). Given the uncertainty regarding when the economy may be expected to recover, the increase in the time limit to exercise an approval and a longer extension period would provide applicants ample time to obtain the appropriate financial resources for their projects. For comparison, Table 1 below describes the approval periods for cities close to Burlingame and throughout the state. Table 1 -Comparison of Time Limits for Exercising Approvals City Approval Period Extension Total City of Burlingame (current) 1 year 1-year extensions 2+ years City of Burlingame (proposed) 3 years 2 years 5 years ................................... _.._ _...................... .. ........... ...................................-- _ - City of San Mateo 2 years 2 years 4 years ...._.... .... _._._ - ...... --.....__ .. _...__._. _......_ . City of Millbrae 1 to 3 years 1-year extensions 4+ years ....................................._........................_....... — .._.--_......_.............—._.............................................. ......-- City of Lomita 1 year 1-year extensions 2+ years ..........................................._._....._._....---..__......._......_.........--- -- -------------- - City of Modesto 2 years 1-year extensions 3+ years ............................_............._................_._... . —_._.—._._.. ---- City of Sacramento 3 years up to 5 years 8 years _......_....._...--------.___—..__...- ---... City of Salinas 1 year none 1 year . _............................................... ........................_...............--- ------....._............-......-----._............ City of San Marino 1 year 1-year extensions 2+ years .-----......._.............._......._............._...._....._...- -... __.._-........ -----.._._......._........ City of Thousand Oaks 3 years :t, 2-year extensions 7 years Planning staff would note that since January of 2007, approximately 30 applications reviewed and approved by the Planning Commission were not submitted for a building permit (includes design review, conditional use permit, variance, special permit and condominium applications). In addition, the Building Division reports that in the same time period, approximately 15 applications reviewed by the Commission were approved by the -3- INTRODUCE ORDINANCE AMENDING TITLE 25(ZONING CODE). October 5, 2009 Building Division, but have not yet been issued building permits, because the applicant has not paid the permit fees. The proposed amendment would apply to all future applications approved the Planning Commission and City Council and would also apply to all previously approved projec;ts that are within their initial approval term, or extension term. Unfortunately, current laws do not allow for this amendment to be retroactively applied to projects for which approvals have expired by the effective date of the amendment. These applicants would need to reapply as a new project. Please note that the solei purpose of the amendments is to provide a greater timeframe for project proponents to complete their projects (e.g. receive financing approval, obtain building permits, etc.). Adoption of the proposed amendments would not "freeze" any applicable development and/or permit fees at levels that would have been collected during the initial term of the approvals. All fees collected at the time of permit issuance would be those in effect at the time the permits for construction are actually issued; unless the project includes a vesting subdivision map as part of the approval. Clarify the Appeal Period for Design Review Applications: While recently reviewing the Zoning Code, Planning staff noted an inconsistency in the appeal period for design review applications. Previously, the Zoning Code stated that the appeal period for all Planning Commission approvals ended at the following City Council meeting, which was usually seven days after an appl cation was approved. Several years ago, the Zoning Code was amended to establish a 10-day appeal period. Burlingame Municipal Code Section 25.16.040, which applies to all applications approved by the Commission, states that "the determination and order of the commission shall become final and conclusive after ten (10) days from the date of the commission decision if no appeal is filed." However, the change to the appeal period for design review applications was inadvertently left out and never amended. Municipal Code Section 25.57.030 (h) (Design Review) states that "Decisions of the Planning Commission under this chapter shall be subject to appeal to the city council and...that the determination of the commission shall become final and conclusive in seven (7) days from the date of the Commission decision if no appeal is riled with the City Clerk." Planning staff has been applying the 10-day appeal period to all approved applications, including design review projects. The proposed amendment ordinance would eliminate the inconsistent language in the second part of Code Section 25.57.030 (h) so that approved de=sign review applications would also be subject to the 10-day appeal period. Attachments: Attachment "A" - Edited Copy of the Proposed Ordinance Amending Title 25 of the Burlingame Municipal Code (Zoning Code) Attachment "B" - Clean Copy of the Proposed Ordinance Amending Title 25 of the Burlingame Municipal Code (Zoning Code) August 24 and September 14, 2009 Planning Commission Minutes S:IREPORTSICode AmendmentslAmend Time Limit for Approvalsllntro Amend Time Limit Ordinance 10 05 09.doc -4- sit ke a ain and answered some questions posed by the speakers and commented about railroad quiet zones. Kent Lau er spo There were no further comments from the floor. 7. STAFF REPORTS AND COMMUNICATIONS a. INTRODUCE AN ORDINANCE FOR AMENDING CHAPTER 25.16.130 OF THE MUNICIPAL CODE TO INCREASE THE TIME ]LIMIT FOR EXERCISE OF VARIANCE, CONDITIONAL USE PERMIT,SPECIAL PERMIT,OR CONDOMINIUM PERMIT AND TO AMEND THE TIME LIMIT FOR EXTENSIONS,AND TO AMEND CHAPTER 25.57.030 TO CLARIFY THE APPEAL PERIOD FOR DESIGN REVIEW APPLICATIONS CDD Meeker reviewed the staff report and requested Council consider amending the zoning code to increase the initial time limit for exercising approvals by the Planning Commission and City Council from one year to three years; amend the number and time limit for extensions fi-om a one year extension to a one-time,two- year extension; provide for the application of the proposed time limit amendments to approvals that have not yet expired, or are still within an approved one-year extension; and clarify and amend the appeal period for design review applications from 7 days to 10 days to be consistent with appeal periods for other applications. Council discussion followed and it was suggested that a two year sunset clause be added to the Ordinance; after which time the original time limits for planning permits would be reinstated for projects approved after the sunset date. There was also a suggestion to adopt the changes as they were introduced, and then amend the ordinance again in two years. CDD Meeker advised that it was necessary to return it to the Planning Commission for consideration of the change. Councilwoman Nagel made a motion add a two year sunset clause to the Ordinance and return it to the Planning Commission; seconded by Vice Mayor Baylock. The motion was approved unanimously by voice vote, 5-0. CONSIDER APPOINTMENT TO TRAFFIC, SAFETY,& PARKING COMMISSION CM Nan eviewed the staff report and recommended Council call for applications for the Traffic, Safety & Parking Co 'ssion. The application deadline was set for October 30, 2009. 8. CONSENT C DAR Councilwoman O'Mahony made aotion to approve the Consent Calendar; seconded by Councilman Deal. The motion was approved unanimously voice vote, 5-0. a. ADOPT A RESOLUTION AWARDI BAYSHORE HIGHWAY SIGNAL INTERCONNECT TO W. BRADLEY EL TRIC DPW Murtuza requested Council adopt Resolution No. 91-200 arding contract for Bayshore Highway Traffic Signal Interconnect Project. b. APPROVAL FOR OUT-OF-STATE TRAVEL FOR EMERGEN PREPAREDNESS COORDINATORS' ATTENDANCE AT THE EMERGENCY MANA-qKMENT INSTITUTE IN EMMITSBURG,MARYLAND 3 Burlingame City Council October 5.200 Approved Minutes • CITY OF BURLINGAME PLANNING COMMISSION BURLINGAME APPROVED MINUTES Monday,August 200 - mp.m. City Council Chambersrs-5011 Primrose Road Burlingame,California I. IQALL TO ORDER Chai errones called the August 24,2009,regular meeting of the Planning Commission to order at 7:00 p.M. II. ROLL CALL Present: Commis 'oners Auran,Brownrigg,Terrones,Yie,and Lindstrom Absent: Commissione istica Staff Present: Community D elopment Director,William Meeker,Planning Manager,Maureen Brooks;and City Attorney,Gus Guinan III. MINUTES Commissioner A uran moved,seconded b ommissioner Brownrigg to approve the minutes of the August 10,2009 regular meeting of the Planning C mission,with the following change: • Page 9,"Discussion of Motion';revised st men to read:"Supports concern expressed regarding the negative environmental effects of installi vinyl windows". • Page 9,last paragraph(record of vote);record 'ommi\placement iLidtrom as absent. Motion passed 6-0-1(Commissioner Vistica absent). IV. APPROVAL OF AGENDA There were no changes to the agenda. V. FROM THE FLOOR Pat Giorni, 1445 Balboa Avenue,spoke: Suggested that the Planning Commission and Buire dump ers to be placed upon properties during construction,unless exteces prevent t approach,or request that Public Works increase the permit` acement to cov the cost of damaged pavement. VI. STUDY ITEMS 1. AMENDMENT TO TITLE 25 OF THE BURLINGAME MUNICIPAL CODE(ZONING CODE)TO INCREASE THE TIME LIMIT FOR EXERCISING APPROVALS GRANTED BY THE PLANNING COMMISSION AND CITY COUNCIL, TO AMEND THE TIME LIMIT FOR EXTENSIONS AND TO CLARIFY THE APPEAL PERIOD FOR DESIGN REVIEW.STAFF CONTACT:RUBEN HURIN 1 CITY OF BURLINGAME PLANNING COMMISSION—Approved Minutes August 24, 2009 Community Development Director Meeker presented a summary of the staff report, dated August 24, 2009. The proposed changes would extend the initial approval term for development entitlements from one-year to three-years. Project proponents would be permitted to request one,two-year extension of the initial term for a combined term of five-years. Current policy is to grant one, one-year extension;though a literal reading of the code implies that more than one extension is possible. The proposed amendments also include language that would create consistency between the appeal periods applicable to design review permits and other entitlements, creating a uniform ten-day appeal period; the appeal period for a design review permit is presently seven-days. Commission comments: How did staff arrive at the 3-year time frame? (Meeker— reviewed other cities' approaches, also considered the timeframe applied to projects that involve a subdivision map.) • Is there a sense for the number of approvals that are actually used, how many approvals are never used? (Brooks - We haven't kept records of the number of applications that are not pursued, the number of outstanding permits represents about 25% of the number approved in a year.) Does the department intend to notify applicants of the change in the time frame for extensions? (Meeker — parties that currently hold valid approvals granted prior to the effective date of the ordinance change will be notified that their permits will be automatically extended, by two years if they are in the initial term, and by one year if the permit is in an extension period.) • Could it be tailored based upon project type, residential versus commercial; multi-family versus single-family? (Meeker—discouraged such a dilferentiation, would be hard to keep track, and all types are impacted by the economic downturn.) How will the City ensure ongoing maintenance of properties prior to construction? (Meeker—the City's Code Enforcement Officer has the ability to work with property owners to ensure that properties are maintained in a clean and safe condition, many of the delayed projects are single family homes where someone still resides on the property.) • Would building code changes apply to project where the approvals were granted in advance of the changes?(Meeker—unless the project included approval of a vesting subdivision map,the codes in place at the time of issuance of a building permit would apply.) Would fees be frozen at the time of project app-oval? (Meeker— Building Permit fees would be collected at the rate in place at the time of building permit issuance. If a project included approval of a vesting subdivision map, development impact fives would be those in place at the time the project was approved.) No changes to the proposed amendments were requested, and the item was scheduled for the Regular Action Calendar when ready for consideration. This item concluded at 7:22 p.m. VII. ACTION ITEMS Consent Ca e -Items on the Consent Calendar arg considered to be routine. They are acted upon simultaneously unless s e discussion and/or action is requested by the applicant, a member of the public or a Commissioner prior to the Commission votes on the motion to adopt. Chair Terrones asked if anyone in the audience or on mmission wished to call any item off the consent calendar. Pat Giomi, 1445 Balboa Avenue,,requested tha a (1613 Easton Drive)be pulled from the Consent Calendar. 2 CITY OF BURLINGAME PLANNING COMMISSION—Approved Minutes September 14, 2009 that prior to scheduling the foundation inspection, a licensed surveyor shall locate the property corners, set the building footprint and certify the first floor elevation of the new structure(s)based on the,elevation at the top of the form boards per the approved plans; this survey shall be accepted by the Engineer; 15. that prior to eduling the framing inspection the project architect or residential designer,or another architect or rest ntial design professional, shall provide an architectural certification that the architectural details own in the approved design which should be evident at framing, such as window locations and b s, are built as shown on the approved plans; architectural certification documenting framing comp ce with approved design shall be submitted to the Building Division before the final framing inspects shall be scheduled; 16. that prior to scheduling the roof deck in ection, a licensed surveyor shall shoot the height of the roof ridge and provide certification of that h ht to the Building Department; and 17. that prior to final inspection, Planning Departmen aff will inspect and note compliance of the architectural details (trim materials, window type, etc. o verify that the project has been built according to the approved Planning and Building plans. The motion was seconded by Commissioner Lindstrom. Discussion of motion: None. Chair Terrones called fora voice vote on the motion to aFprove. The motion passed 6-0-1. (Comm' loner Cauchi absent). Appeal procedures were advised. This item concluded at 8:54 p.m. 7. AMENDMENT TO TITLE 25 OF THE BURLINGAME MUNICIPAL CODE(ZONING CODE)TO INCREASE THE TIME LIMIT FOR EXERCISING APPROVALS GR/\NTED BY THE PLANNING COMMISSION AND CITY COUNCIL, TO AMEND THE TIME LIMIT FOR EXTENSIONS AND TO CLARIFY THE APPEAL PERIOD FOR DESIGN REVIEW APPLICATIONS. STAFF CONTACT: RUBEN HURIN Reference staff report dated September 14, 2009,with attachments. Senior Planner Huhn briefly presented the proposed amendments. The amendments would provide for an initial term of three (3) years for Planning Commission approvals,with the opportunity for one,two(2)year extension. Previously approved projects with valid approvals would have two (2)years acded to their initial term of approval, or in the event that a project is in the extension period, an additional one (1) year would be added to the extension. Additionally, the appeal period for design review applicat ons is proposed to be changed to ten (10)days,as opposed to seven (7) days, consistent with other Planni ig permits. There were no questions of staff. Chair Terrones opened the public comment period. Public Comment: Pat Giorni, 1445 Balboa Avenue, spoke: • Suggested having the initial approval valid for only two (2)years, a total of five (5) years is too long. Good to make the amendments retroactive to active project approvals. • Increasing the appeal period to ten (10)days is good, it provides more time for anyone interested in 13 CITY OF BURLINGAME PLANNING COMMISSION — Approved Minutes September 14, 2009 the project to appeal. There being no further public testimony, the public hearing was closed. Commission comments: ■ Agree with the changes suggested by staff. ■ Some concern about the initial approval term of three (3) years being too long; would be more comfortable with an initial two (2) year term. ■ Could be fewer extension requests with an initial three (3) year term. CommissionerAuran moved to recommend the proposed amendments for adoption by the City Council, as presented. The motion was seconded by Commissioner Vistica. The motion passed on a vote of 6-0-1 (Commissioner Cauchi absent). Discussion of motion: None. The Planning Commission's action is advisory and not cappealable. This item concluded at 9:05 p.m. X. SIGN REVIEW STUDY ITEMS 8. 1256 C TEZ AVENUE, ZONED R-1 — APPLICATION FOR DESIGN REVIEW FOR A NEW, TWO- STORY SI E FAMILY DWELLING AND DETACHED GARAGE (NATALIE HYLAND, APPLICANT AND DESIGNER A AZIZAND SAIMAAHMAD PROPERTY OWNERS) STAFF CONTACT: RUBEN HURIN Reference staff report ed September 14, 2009, with altachments. Senior Planner Hurin briefly presented the project description. Th were no questions of staff. Chair Terrones opened the public mment period. Natalie Hyland, 585 Quarry Road, San Ca s; represerted the applicant. Commission comments.- 0 omments:■ The massing needs more work; there is a long fla all along the driveway side. ■ Porch is a bit shallow; could be a bit more prominent. ■ Right-side elevation could benefit from a redesig i on the s and floor; perhaps add a pop-out with corbels. ■ Concerned about the pitch on the roof; consider changes to elimin the flat roof portion. (Hyland — could add a slight parapet and slope to promote drainage.) ■ Will be important to see the type of stone that i s proposed. (Hyland — king and limestone or sandstone.) ■ Windows on side elevations should have an arcied detail to compliment eyebro dormers. ■ The front bay window that is clad in stone makes some sense; but would not be hap seeing the stone stop at the corner; terminate it around the corner, or fully continue the detail. Have a stone features terminate in a logical location so that they don't appear as veneer. 14 CITY OF BURLINGAME PLANNING COMMISSION—Unapproved Minutes October 26,2009 thatall air ducts, plumbing vents, and flues shall be combined, where possible, to a single termination and installed on the portions of the rocf not visible from the street;and that these venting details shall be included and approved in the construction plans before a Building permit is issued, 9. tha a project shall comply with the Construction and Demolition Debris Recycling Ordinance which requir affected demolition,new construction and alteration projects to submit a Waste Reduction plan and eet recycling requirements,any partial or full demolition of a structure,interior or exterior, shall require demolition permit, 10. that the project sh I meet all the requirements ol'the California Building and Uniform Fire Codes, 2007 Edition,as am ded by the City of Burlingame, THE FOLLOWING CO ITIONS SHALL BE MET DURING THE BUILDING INSPECTION PROCESS PRIO O THE INSPECTIONS NOTED IN EACH CONDITION 11. that prior to scheduling the framing spection the project architect or residential designer,or another architect or residential design profe ional, shall provide an architectural certification that the architectural details shown in the appro d design which should be evident at framing,such as window locations and bays, are built as sh wn on the approved plans, architectural certification documenting framing compliance with approv design shall be submitted to the Building Division before the final framing inspection shall be schec led; 12. that prior to scheduling the roof deck inspection,a lice ed surveyor shall shoot the height of the roof ridge and provide certification of that height to the B ding Division,and 13. that prior to final inspection, Planning Divisior staff will ins ct and note compliance of the architectural details (trim materials, window type, etc.) to verify at the project has been built according to the approved Planning and Building plans. The motion was seconded by Commissioner Yie. Discussion of motion: • They are not increasing the FAR;the slope of the lot creates an additional hardship. Chair Terrones called for a voice vote on the motion ro approve. The motion passed 7-0. Thitem concluded at 7:30 p.m. 3. AMENDMENTS TO TITLE 25 OF THE BURLINGAME MUNICIPAL CODE (ZONING CODE) TO INCREASE THE INITIAL TERM FOR LAND-USE APPROVALS GRANTED BY THE PLANNING COMMISSION AND CITY COUNCIL FROM ONE-YEAR TO THREE-YEARS,AMENDING THE TERM FOR EXTENSIONS OF THE TERM FOR LAND-USE APPRC VALS FROM ONE-YEAR TO TWO-YEARS,AND TO MODIFY THE APPEAL PERIOD FOR DESIGN REVIEW APPLICATIONS FROM SEVEN-DAYS TO TEN-DAYS. WITH RESPECT TO THE AMENDMENTS RELATED TO THE TERMS FOR LAND-USE APPROVALS(INITIAL TERM AND EXTENDED TERM),A TWO-YEAR SUNSET CLAUSE FROM THE EFFECTIVE DATE OF THE AMENDMENTS IS PROPOSED. (NEWSPAPER NOTICE—SAN MATEO COUNTY TIMES 10/16/09) STAFF CONTACT RUBEIV HURIN Reference staff report dated October 26, 2009, with ;attachments. Community Development Director Meeker presented the report,reviewed criteria and staff'comments. 4 CITY OF BURLINGAME PLANNING COMMISSION— Unapproved Minutes October 26, 2W9 Chair Terrones opened the public hearing. Commission comments: • Requested clarification regarding the impact of the sunset clause upon valid approvals. (Meeker— existing approvals would be permitted to run their term.) • Would a two year initial term have caused the City Council to adopt the amendment without a sunset clause? (Meeker/Guinan —didn't appear likely.) Public comments: Pat Giorni, 1445 Balboa Avenue; spoke: • Thought that the initial term should be a two year period. • The whole idea of the change is based upon ecc nomic conditions. • Doesn't see a problem with the sunset clause. There were no further comments and the public hearing was closed. Commissioner Lindstrom moved to recommend to the Cily Council, adoption of the amendments to Title 25 of the Burlingame Municipal Code(Zoning Code)relative to time limits forland-use approvals granted by the Planning Commission, extensions of time limits for Planr ing Commission approvals, and clarifying appeal procedures for design review applications. The motion was seconded by Commissioner Vistica. Discussion of motion: None. Chair Terrones called for a voice vote on the motion to recommend approval. The motion passed 7-0. The Planning Commission's action is advisory and not appealable. This item concluded at 7:37 p.m. IX DESIGN REVIEW STUDY ITEMS 4. 107 L VISTA DRIVE, ZONED R-1 — APPLICATION FOR DESIGN REVIEW FOR A FIRST AND SECONDS Y ADDITION TO A SINGLE FAMILY DWELLING (UNA KINSELLA, APPLICANT AND ARCHITECT; AN VID AND DIANNE WILLOUGHBY, PROPERTY OWNERS) STAFF CONTACT: ERICA STROHMEIER Reference staff report dated Octob 6, 2009, with ,attachments. Planning Manager Brooks briefly presented the project description. There were no quest ons of staff. Chair Terrones opened the public comment period. Commission comments: • Where is the fourth bedroom? (Brooks—the dei is considered to be th rth bedroom.) David Willoughby, 107 Loma Vista Drive and Una Kinsella, 1033 Paloma Avenue; rep nted the applicant. 5 Agenda 7b Item Meeting BURLINGAME STAFF REPORT Date: November 2, 2009 SUBMITTED Bf�� APPROVED BY TO: HONORABLE MAYOR AND CITY COUNCIL DATE: OCTOBER 23, 2009 FROM: PUBLIC WORKS SUBJECT: UPDATE REGARDING STORM DRAINAGE CAPITAL IMPROVEMENT PROGRAM (CIP) IMPLEMENTATION RECOMMENDATION: The purpose of this report is to update the Council regarding the Storm Drainage CIP implementation. DISCUSSION: The implementation of the storm drainage CIP is well underway and following is a summary of work since the passage of the Ballot Measure: Storm Drain Fee collection The fee collection mechanism is in place. The total FY2009-10 storm drain fee revenue is estimated to be approximately $2,490 000 of which $2,460,000 will be collected with the help of San Mateo County Assessor's office as part of the property taxes. The remaining $30,000 is to be collected through direct billing from the utility companies because they are not on the County property tax rolls. The City will receive the fee revenue from the County in two equal installments, first being in December 2009 and the second in April 2010. The Finance Department has set up a special accounting system to track all revenues and expenses associated with the program. Development of 2009-10 Storm Drainage CIP program Based on the anticipated revenue for the current fiscal year, staff developed $2,400,000 CIP program that was approved by the Council at its August 17, 2009 meeting. The program included the following elements: • Program management services and permitting • Marsten Outfall Pipeline engineering design and construction • Marsten pump station reconstruction enginE!ering design and • Citywide residential areas storm drainage improvements Program management services and permitting Staff issued `Request for Proposals' to various consulting firms, interviewed a total of five firms, and selected Erler & Kalinowski, Inc. (EKI) as the most qualified firm to provide program management services to assist the City with the implementation of the program. The Council approved the professioral services agreement with EKI at its September 8, 2009 meeting. Marsten Outfall Pipeline engineering design Staff issued 'Request for Proposals' and selected Wilsey Ham to provide engineering design services for the Marsten Outfall Pipeline project. The Outfall pipeline project is the third phase of a four phase project that will provide 30 year storm capacity in the Easton Creek drainage system to help reduce flooding in the residential and industrial areas along the creek's watershed. Wilsey Ham is currently in the process of completing the preliminary design of the outfall pipeline. The preliminary design is anticipated to be completed by December. Based upon the results of preliminary design, staff will finalize the appropriate environmental document required under the California Environmental Quality Act and submit permit applications to the various resource agencies whose approval is needed prior to the commencement of construction. Construction of the Marsten Outfall Pipeline project is currently anticipated to commence early summer 2010. Marsten Pump Station reconstruction engineering design Staff has prepared 'Request for Proposals' for the Marsten Pump Station reconstruction project. Upon receiving proposals and interviewing prospective consulting firms, staff will return to Council with a recommendation to award the professional services contract to begin the engineering design. The pump station project is the final phase of the Easton Creek watershed improvements that will alleviate chronic flooding in the Easton Creek watershed and will improve emergency access for public safety services. In addition, staff is in the process of issuing a 'Global Request for Proposals' soliciting qualifications from various consulting firms for professional services that will be needed to fast track the CIP Program. These services include the design of (1) new pipelines, (2) City wide curb and gutter improvements to eliminate localized flooding in the residential areas,and(3)channel improvements. Development of storm drainage CIP Website Staff is in the process of developing a website (www.burlingamecip.org) to provide regular updates to the community regarding the program. The website will also provide information regarding the City's capital improvement projects for the water and sewer systems so that residents can review the status of all three of these capital improvement programs. Storm Drainage Program updates through the e-newsletter Staff will be sending regular updates regarding progress on the storm drainage program via the City's e-newsletter. The e-newsletter will contain link to the storm drainage CIP website so that recipients can readily access the website for more information. Citizen's Oversight Committee Staff has developed guidelines for the formation of Citizen's Oversight Committee which is included in a separate staff report to the Council. Upon Council approval, staff will proceed with the process to form the committee. SAA Public Works Directory\Staff Reports\Storm Drainage CIP Update 11-02-09.doc Agenda 7. Item Meeting BURLINGAME STAFF REPORT Date: November 2, 2009 SUBMITTED BY APPROVED BY TO: HONORABLE MAYOR AND CITY COUNCIL DATE: OCTOBER 23, 2009 FROM: PUBLIC WORKS SUBJECT: RESOLUTION AUTHORIZING THE FORMATION OF THE STORM DRAINAGE PROGRAM CITIZEN'S OVERSIGHT COMMITTEE RECOMMENDATION: It is recommended that City Council approve the attached resolution authorizing the formation of the Storm Drainage Program Citizen's Oversight Committee. BACKGROUND: The voter approved storm drainage fee requires that a Citizen's Oversight Committee be formed to ensure that funds collected from the storm drain fee are only used for the storm drainage program. Thin, provisions of the storm drain fee program implementation including Citizen's Oversight Committee are covered by the City Ordinance No. 1836 (see attached). DISCUSSION: The role of the Oversight Committee will be to: • Ensure that the fees are used for storm drain purposes. • Review and provide advisory input to the Publi -. Works Director in the preparation of storm drain expenditures. • Receive updates on expenditures and the progression of the program. The committee will be appointed by the Council through a selection process similar to that of the City Commissions. Applications for th e committee will be received and screened followed by Council interviews and final :3elections. The Committee will be comprised of three members of the community with following criteria: • Must be a resident of the City for at least one year. • Should have general understanding of the City's storm drainage program, or general understanding of public finance, municipal engineering, or knowledge of local government operations. • The committee member's term will be staggered with two members appointed for four year terms and one member appointed for a two year term. • The committee will serve at the will and dir,cretion of the Council and can be terminated by the Council at any time. The Committee will meet with Public Works staff twice annually. The meetings will be open to the public and noticed in advance pursuant to Brown Act rules. Around spring of each year, the committee will review the proposed CIP and receive an update on funding options and project priorities. A follow-up meeting will be held around fall of each year to receive an update on the progress of projects, expenditures and any new developments in the program. The process to form the Committee will begin immediately upon Council approval. BUDGET IMPACT: There are no budget impacts related to this item other than required staff time to administer the program. EXHIBITS: Ordinance 1836, Resolution,Application form and Questionnaire SAA Public Works Directory\Staff Reports\Storm Drain Oversight Committee-102809.doc RESOLUTION NO. _ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME ESTABLISHING THE CITY'S STORM DRAIN FEE OVERSIGHT COMMITTEE WHEREAS, in May of this year the voters of Burlingame approved a storm drain fee measure to provide funds for the infrastructure replacement, improvement and repair of the City's aging and deteriorating storm drainage system; and WHEREAS, pursuant to section 4.30.100 of the Burlingame Municipal Code, the City Council is required to appoint a citizens oversight committee to assure that the fees collected under the City's storm drain program are used for storm drain pwposes, to review the annual storm drain capital improvement program and to receive information on program expenditures and progress of the program; and, WHEREAS, the procedure for the appointment of committee members would be similar to that process employed for appointment of other City Board,. and Commissions; and, WHEREAS, the Storm Drain fee Oversight Committee would be comprised of three members, two members would four years and one member would serve two years, and the members would serve at the pleasure of the Council and be; subject to removal at any time without cause; and, WHEREAS, the Oversight Committee would meet with Public Works staff in a public, notice meeting, two times each calendar year, once in the Spring and once in the Fall; NOW, THEREFORE, the City Council of the City of Burlingame hereby Resolves as follows: 1) The City Council establishes the City of Burlingame Storm Drain Fee Oversight Committee. 2) The Council charges the Committee to review the fees collected to assure that they are used for storm drain purposes and to provide advisory input to the Director of Public Works regarding storm drain capital improvement expenditures. 3) The Committee shall be comprised of three members, serving four year terms, staggered, with two members initially appointed to four year terms and one member appointed to a two year term. The members shall serve at the please of the Council subject to removal at any time without cause. T].-ie members must be residents of the City and should have a general understanding of the City's storm drain system, a general understanding of public financing, municipal engineering, or knowledge of local government operations. 4) The Committee shall meet, in noticed meetings open to the public,with the Department of Public Works staff two times each calendar year, once in the Spring and once in the Fall;the meetings shall be subject to the Brown.Act. Ann Keighran, Mayor I, Mary Ellen Kearney, Clerk of the City of Burlingame, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the Burlingame City Council held on the 2nd day of November, 2009,by the following vote to wit: AYES: Councilmembers NOES: Councilmembers: ABSENT: Councilmembers: Mary Ellen Kearney, City Clerk ORDINANCE NO. 1836 ORDINANCE OF THE CITY OF BURLINGAME ADDING CHAPTER 4.30 TO THE BURLINGAME MUNICIPAL CODE TO ADMINISTER A STORM DRAINAGE FEE r The CITY COUNCIL of the CITY OF BURLINGAME ordains as follows: Section 1. Pursuant to the authority set forth in Article XIIID of the California Constitution,Government Code Sections 53750 and following,and Health and Safety Code Section 5471,as well as the general authority residing in the City to establish fees and charges,the City Council enacts an ordinance to establish an storm drainage fee in order to improve,upgrade,and maintain the stone drainage system,to further reduce pollutants flowing into Burlingame's creeks and San Francisco Bay,to prevent street flooding that impedes residents and police/fire emergency access,to improve local drainage,and better assure that the system serves the needs of Burlingame real property and the community. Section 2. Chapter 4.30 is added to read as follows: Chapter 4.30 STORM DRAINAGE FEE ORDINANCE Section 4.30.010 Establishment of Storm Drainage Fee Section 4.30.020 Computing the Fee Section 4.30:030 Setting the Fee Section 4.30.040 The Fee in Fiscal year 2009-2010 Section 4.30.050 Appeals by Property Owners Section 4.30.060 Collection of the Fee Section 4.30.070 Deposit Into Special Stone Drainage Fund Section 4.30.080 Various Actions Section 4.30.090 Expiration of Fee Section 4.30.100 Citizens Oversight Committee Section 4.30.110 Severability 4.30.010 Establishment of Storm Drainage Fee. There is established a storm drainage fee for all parcels of real property in the City that drain into City storm drainage system,including,pipes,inlets,outlets,and natural drainage courses. No fee shall be imposed unless and until the voter approval required by Constitution Article XIII D,Section 6(Proposition 218)has been obtained. 4.30.020 Computing the Fee. (1) An annual storm drainage fee is levied upon each parcel of property that drains into the City's storm drain system. The rate per square foot of impervious area shall be determined by Resolution of the City Council upon consideration of a report of the City Engineer but in no event sliall the rate exceed that authorized by required voter approval. (2) The amount of the storm drainage fee for each individual parcel shall be computed as follows: Parcel square footage shall be multiplied by the percentage of impervious area on the parcel. The resulting number shall be multiplied by the per square foot impervious area rate in order to calculate the dollar fee for the fiscal year. Said rate shall not exceed the maximum rate established by the voters,i.e. 4.192 cents per square foot of impervious area. When the impervious area of a parcel is increased or decreased,the annual fee for the parcel shall be adjusted for the fiscal year next succeeding the change in~impervious area. (3)The term impervious area shall have the following meaning: the non-natural state or surface of a parcel,viewed and measured in plan,which acts as a barrier that prevents the majority of storm water from infiltrating into the ground below, including as examples but not limited to concrete, asphalt pavement or concrete paver walkways,patios or driveways;playing surfaces such as tennis courts or basketball courts;pools and pool decks; roof tops;tool sheds; carports; and/or patio covers. / (3) The fee for each condominium shall be based on the individual condominium's percentage of ownership interest as shown on the assessor's roll; and if not shown are deemed to be equal ownership percentages,unless proof is submitted otherwise. (4) Vacant,unimproved parcels are still in their natural states and do not contribute any additional runoff to burden the City's storm drain system.Therefore,the storm drain user fee is not applicable to these parcels. When a vacant parcel that is not subject to this ordinance adds impervious area,it shall be required to pay a storm drainage fee based on its impervious area. (5) Streets and highways, channels, and canals are exempt from the storm drainage fee as part of the storm system. 4.30.030 Setting the Fee. (1) Commencing with fiscal year 2010-2011,the City Countil, following a public hearing, shall determine the storm drainage fee. In no event shall the square footage rate for impervious area be increased beyond that rate approved by a majority vote of the property owners subject to the storm drainage fee without further approval by a majority vote of the property owners subject to the storm drainage fee;provided,however, that, without approval by a majority vote of the property owners subject to the storm drainage fee,the maximum per square foot rate for impervious area, commencing Fiscal Year 2010-2011,may be increased by an amount equal to the change in the Consumer Price Index for all Urban Consumers for the area including San Mateo County(the"CPI's, including all items as published by the U.S. Bureau of Labor Statistics as of March 1 of each year,not to exceed a maximum increase of two percent(2%)per.year. (2) The storm drainage fee shall not be deemed to be increased in the event the actual fee upon a parcel in any given year is higher due to an increase in the amount of the •impervious area of the subject parcel. (3) In any year in which the City Council does not change the rate per square foot of impervious area,the previously adopted fee shall continue in full force and effect for the next fiscal year. Property owners whose storm drainage is increased/decreased as a result a change in impervious area have appeal rights under Section 4.30.040. (4) The City Council shall not be required to enact an inflation increase in each year but may accumulate the inflationary increases and enact the cumulative amount. 4.30.040 The Fee In Fiscal Year 2009-2010. Subject to the appeal rights set forth below,the fee for fiscal year 2009-2010 shall be that parcel fee specified in the notice of protest hearing-sent to the property owner. 4.30.050 Appeals by Property Owners. _ (1)If a property owner disagrees with the calculation of his or her storm drainage fee,the property owner may appeal the calculation within 20 calendar days after the property owner receives notice that the fee will be increased/decreased: (a)The property owner must provide written documentation explaining the reason why the stone drain fee is not correct.This documentation must include: i. The name,telephone number,mailing address, and email address,if available, of the property owner; ii. The Assessor's Parcel Number(APN)of the property in question; iii.To-scale drawings of the property in question and the impervious areas located on it with accompanying calculations. The to-scale drawings shall include the square footage and labels for each impervious area(i.e.,house, garage, driveway,patio,tool shed, carport, etc.). (2)If additional documentation is required or insufficient documentation was submitted, the Public Works Department will notify the property owner. (3) Once the Public Works Department has determined that sufficient documentation has been submitted,it will analyze the appeal. The property owner will be notified in writing within three weeks after sufficient documentation has been submitted whether or not the fee will be changed. (a)Any new fee will be documented in the City's fee database. (b)The property owner can appeal the decision of Public Works to the City Council if the amount remaining in dispute after the Public Works-decision exceeds$100 annually. The appeal must be made in writing and filed with the City Clerk not later than ten calendar days from the date of mailing of the Public Works Department decision. The City Clerk shall fix a time and place for hearing the appeal and shall give notice in writing to the appellant. The City Council's determination on the appeal shall be final. (4) If an appeal is granted by Public Works Department or the City Council that does not permit inclusion for the following fiscal year's property tax roll submittal,a reimbursement will be provided to the property owner by the City. (5)Any action brought against the City pursuant to this section shall be subject to the provisions of Government Code Sections 945.6 and 946. Compliance with these provisions shall be a prerequisite to a suit thereon. (6) The City Council may establish appeal fees. (7) To appeal the fee for Fiscal Year 2009-2010 a property owner must file an appeal not later than 20 days after the City Council certifies the election results. 4.30.060 Collection of the Fee. Commencing with fiscal year 2009-2010,the storm drainage fee shall be collected on the San Mateo County tax roll in the same manner,by the same persons, and at the same time as,together with and not separately from,the general taxes of the City;provided, however, in any year the City Council may,by resolution,provide for an alternative procedure for collection of the storm drainage fee. For any fiscal year in which the storm drainage fee is authorized but not collected on the tax roll,the City may collect all or a portion of the fee for such year on the tax roll in the following fiscal year or years. 4.30.070 Deposit In The Special Storm Drainage Fund. Upon receipt of moneys representing storm drainage fees,the City Finance Director shall deposit the moneys in the City treasury to the storm drainage fund and the moneys shall be subject to annual independent audit and funds shall only be expended for storm drainage improvements approved by the City Council and for the operation and maintenance of those improvements. 4.30.080 Various Actions. Without a vote of the property owners, in any year the City Council may do any and all of the following: (a) discontinue the storm drainage fee; (b)reduce the maximum square footage rate for impervious area; or(c) increase the rate per square foot up to or below the maximum voter-authorized square footage rate for impervious area if it has been. previously set below such rate. In no event shall the City Council increase the rate in excess of the maximum square footage rate approved by a majority vote of the property owners subject to the storm drainage fee for impervious area without approval by a majority vote of the property owners subject to the storm drainage fee. 4.30.090 Expiration of Fee. The storm drainage fee established by this Chapter shall remain in effect until 203 8. 4.30.100 Citizens Oversight Committee. The City Council shall appoint a citizens committee to assure that the fees are used for storm drain purposes. The committee shall also review and then provide advisory input to the Public Works Director in the preparation of the budget expenditures, and any amendments thereto, fiom the storm drainage fund, including project priorities. 4.3 0.110 Severability. Should any provision or clause of this ordinance or application thereof to any person or circumstance be held invalid or unconstitutional that invalidity or unconstitutionality shall not affect other provisions or applications thereof which can be given effect without the invalid provision or application and, to this end, the provisions of this ordinance are declared severable. By adopting this ordinance the City Council declares that it would have adopted this ordinance without that provision or provisions. Section 3. This ordinance shall be published as required by law and shall take effect thirty days after adoption. The City Council finds that this activity is not a project and therefore is not subject to the California Environmental Quality Act pursuant to CEQA Guidelines Section 15060(c)(3). L MA R I, MARY ELLEN KEARNEY, City Clerk of the City of Burlingame, do hereby certify that the foregoing ordinance was introduced at a regular meeting of the City Council held on the 1 st day of December, 2008, and was adopted on January 20, 2009 by the following vote: AYES: COUNCILMEMBERS: BAYLOCK, DEAL, KEIGHRAM, NAGEL, OI&HONY NOES: COUNCILNIEMBERS: NONE ABSENT: COUNCILMEMBERS: ROME CITY CLERK C 1 TY —FOR MY USE ONLY — B�iRLINGAME t I Od fTlh JLIIE�, i i CITY OF BURLINGAME Citizens Oversight Committee Member ❑ Burlingame registered voter Application Form Copies to: CC, CM, Please print or type Name: Address: Phone: (day) I(evening I Email (opdo.i) How long have you lived in Burlingame (years)? Are you registered to vote in Burlingame? Yes ❑ No ❑ Education: Degree(s)/Major(s): Occupation / Specialty: Signature: Date: Please return your application and supplemental questionnaire to: Ana Silva Executive Assistant City Manager's Office 501 Primrose Road Burlingame, CA 94010 Revised 10/26/09 • City of Burlingame — Public Works Dept. 7BBURUNG' ME 501 Primrose Road, Burlingame, CA 94010 I WMM 0 phone: (650) 558-7230 - fax: (650) 685-9310 www.burlin a�g STORM DRAINAGE CITIZEN'S OVERSIGHT COMMITTEE Questionnaire Applicant's Name: To assist in the selection process, please answer the following questions and submit written responses with your application form. Please write clearly or type.You may use additional sheets of paper. Thank you. The City of Burlingame storm drain system is nearly 80 years old and is deteriorating. In May 2009, the voters approved the storm drain fee ballot measure to upgrade the storm drainage system to alleviate chronic flooding and protect public health and safety. The ballot measure also included that a citizen's oversight committee be formed to ensure funds collected from storm drain fee to be spent only on storm drainage program. 1. Please describe how your education, training, experience and community involvement has prepared you to serve on the Storm Drain Citizen's Oversight Committee 2. Please list the community activities or organizations you have participated in and indicate your level of involvement(member, attended event, ran a booth, worked on the organizing committee, was an officer, etc.). Indicate the amount of time each month you spend on each of these activities. 3. The Storm Drain Oversight Committee will meet twice a year with City staff to review the Storm Drainage Improvement Program and receive program update. The committee member will be appointed to either a four year or two year term staggered. It is desirable that the Committee members have knowledge of the City storm drainage system or the understanding of public financing. Do you feel that you have the necessary knowledge of the program and the time to make such a commitment for the duration of the term? Storm Drain Citizen's Oversight Committee Questionnaire Page 2 Applicant Name: 4. As a member of the Citizen's Oversight Committee, you may need to be aware of the issues associated with the storm drainage system and may need to provide a briefing to the City Council or community members. Have you ever been in a situation where you have had to make public presentations on important issues while under public scrutiny? If so, please describe that experience. 5. What groups within the community have you been apart of(please check all that apply): _ homeowner have children in school rented property (residential) _belong to a religious community work in Burlingame _Other own a business in Burlingame 6. Please list any additional information pertaining to your appointment to the Storm Drain Citizen's Oversight Committee that the City Council should consider. Please return your application and supplemental questionnaire by December 2nd, 2009 to: Ana Silva, Executive Assistant, City Manager's Office City of Burlingame, 501 Primrose Road, Burlingame, CA 94010 CITY O BU UNGAME STAFF REPORT AGENDA MOOR ORATED 4-N '1) ITEM# 7d MTG. DATE November 2,2009 TO: HONORABLE MAYOR AND CITY COUNCIL SUBMITTED DATE: October 22, 2009 BY FROM: Ana Silva APPROVED / Tel.No.: 558-7204 By SUBJECT: CONSIDER APPOINTMENTS TO THE PARKS & RECREATION COMMISSION RECOMMENDATION: Make appointment to fill two vacancies in the Parks & Recreation Commission or take other action. BACKGROUND: The two positions are due for appointment because of soon-to-expire terms. The positions were publicized and notification letters were sent to past commission applicants. Two applications (both incumbents) were received as of the deadline of September 21, 2009. The following two applicants were interviewed by the full Council on October 21, 2009: John Eaton and Susan Castner-Paine. The appointee term will be for three years, ending in October 2012. A CITY G BURLINGAME STAFF REPORT N. 7 o • Som AGENDA FATED J NE 0 ITEM# 7e MTG. DATE November 2,2009 TO: HONORABLE MAYOR AND CITY COUNCIL SUBMITTED DATE: October 22, 2009 BY FROM: Ana Silva APPROVED Tel.No.: 558-7204 By L IJ SUBJECT: CONSIDER APPOINTMENTS TO THE BEAUTIFICATION COMMISSION RECOMMENDATION: Make appointment to fill three vacancies in the Beautification Commission or take other action. BACKGROUND: The three positions are due for appointment because of soon-to-expire terms. The positions were publicized and notification letters were sent to past commission applicants. Four applications were received as of the deadline of September 21, 2009. The following four applicants were interviewed by the full Council on October 21, 2009: Barry Meinerth; Donna Wright; Mary Hunt; and Leslie McQuaide. The appointee term will be for three years, ending in October 2012. ��� CITY 0 STAFF REPORT BURLINGAME AGENDA ITEM# 8a MTG. DATE November 2,2009 DNATED JUNE 6 TO: HONORABLE MAYOR AND CITY COUNCIL SUBMITTED BY DATE: October 26,2009 APPROVED BY FROM: Jesus Nava, Finance Director 558-7222 SUBJECT: Resolution of the City Council Approving A Ten-Year Agreement with South Bay Recycling, LLC for the Operation of the Shoreway Recycling and Disposal Center RECCOMENDATION That the Council adopt a Resolution Approving the Operations Agreement with South Bay Recycling, LLC for Operation of the Shoreway Recycling and Disposal Center in San Carlos. BACKGROUND The SBWMA has approved two, ten-year agreements. One is for the curbside collection of solid waste, recyclables and organic materials. The other is for the operations of the Shoreway recycling and disposal center. The operations contract for the Shoreway facility was competitively procured by the SBWMA. On November 1, 2007 the SBWMA released the Facility Operations Services Request for Proposals (RFP). Proposals were due March 4, 2008. The SBWMA received seven responsive proposals from companies capable and qualified to provide the services described in the RFP. The proposals were evaluated and scored by an evaluation Team consisting of: SBWMA staff and the Sloan-Vazquez, consulting firm. A Selection Committee comprised of Member Agency Board Members including Larry Patterson, City of San Mateo; Mark Weiss, City of San Carlos; Jim Porter, County of San Mateo and SBWMA staff Kevin McCarthy and Hilary Gans approved the evaluation report and recommended South Bay Recycling, LLC for SBWMA Board approval. On July 24, 2008 the SBWMA Board voted 10-0 to short list two of the companies, Hudson Baylor Corp. and SBR, for final negotiations. A lengthy short-list evaluation period ensued from August 2008 through March 2009 in which the evaluation and selection committees issued two reports culminating in a recommendation to select SBR. On April 23, 2009, the SBWMA Board voted 10-2 to approve the selection of SBR and directed staff to negotiate a final Operations Agreement and bring back that Agreement for Board approval with such Board approval then subject to approval by at least two-thirds of the member agencies. The Board approved motion also stated that if staff could not successfully negotiate a contract with SBR then staff begins negotiations with Hudson Baylor Corporation. 1 OrT April 23`d staff also was given direction to discuss with SBR the potential use of San Mateo County Vocational Rehabilitation Services (VRS) workers as recycling materials line-sorters. Such VRS workers were previously utilized by BFI but the arrangement was discontinued in 2007 due to Allied's legal concerns regarding the classification of these workers as temporary workers and the need to offer benefits. On July 23, 2009 the SBWMA Board approved 11-0 the Operations Agreement and authorized and directed the Executive Director to distribute full and complete copies of the Agreement executed on behalf of the Authority and on behalf of South Bay Recycling, LLC, to each member agency upon receipt of the Guaranty executed by the two corporate members of South Bay Recycling, LLC; provided, however, that the Agreement would not become effective unless and until at least eight (8) of the Member Agencies approve the Agreement as provided in Section 7.1.1 of the SBWMA First Amended and Restated Joint Exercise of Powers Agreement, on or before November 30, 2009. ANALYSIS The attached Operations Agreement remains substantially unchanged. However, the Agreement was amended to address the following key items: ■ Inclusion of any commitments from SBR in their March 4, 2008 proposal and follow-up correspondence that were above and beyond the original RFP requirements or draft Agreement language. For example, SBR offered to purchase and operate a sort line in the Transfer Station at a cost not to exceed what we currently pay for offsite transportation and processing of C&D materials. This language has now been captured in Section 5.18.E. ■ Use of San Mateo County Vocational Rehabilitation Services workers. Section 5.11.N. includes language regarding the use of such workers and the Authority endorsing the use of such workforce. ■ Exceptions SBR took to the original draft Agreement related to moisture content and recycling material contamination. Attachment 11-C, Moisture Measurement, addresses excessive moisture issues. Material contamination (contamination in loads of franchised materials delivered by the collection contractor- Recology) is addressed in Section 7.06 and Attachments 2E and 2H. ■ Key items discussed during the short-list negotiation process, including a price assurance mechanism, liquidated damages and charges that can be imposed, self haul diversion guarantees, and critical implementation milestones. The price assurance mechanism can be found in Attachment 11-B. Liquidated damages are addressed in Section 11.07 and Attachment 10. The self haul diversion guarantees and details on self haul diversion are in Sections 5.18, and 7.08; and Attachments 3, 4 and 19. Critical implementation milestones are addressed in an implementation and operations plan found in Attachment 4. ■ Changes in compensation and cost forms. Sections 7 and 8 and Attachments 12A, 12B, 12C, 12D, 13A, and 13B address how SBR is compensated. Notably, Attachment 12C was added to address compensation specific to interim operations, as opposed to full-scale operations as originally envisioned in the Facility Operations RFP, due to expected delays in the 2 completion date of the MRF and Transfer Station improvements. Attachment 12D contains SBR's final cost forms. Note that SBR also is no longer responsible for installation of the single stream processing equipment at the Shoreway center. The SBWMA is separately negotiating the purchase and installation of the equipment with an equipment vendor. FISCAL IMPACT There is no fiscal impact on the Burlingame General Fund. The cost to provide the services covered in the Operations Agreement are included in the collection rates approved by the City of Burlingame for residential and commercial accounts. SBR's actual projected 2011 costs are expected to below Allied Waste's projected future costs and thus should result in a slight decrease in collection rates. The total cost for SBR to operate the Shoreway facility will be $14.32 million a year. For comparison purposes only, Allied's projected compensation to operate the Shoreway facility for 2009 is $17.1 million. Both the SBR and Allied figures are exclusive of disposal costs. Attachments Resolution of the City Council of the City of Burlingame Approving the Agreement for the Operation of the Shoreway Recycling and Disposal Center Agreement for Operation of the Shoreway Recycling and Disposal Center, South Bayside Waste Management Authority and South Bay Recycling, LLC, July 2009 3 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME APPROVING THE AGREEMENT FOR THE OPERATION OF THE SHOREWAY RECYCLING AND DISPOSAL CENTER WHEREAS, The State of California, through the California Integrated Waste Management Act of 1989, codified at Public Resources Code Section 40000, et seq. (the "Act"), found and declared that the amount of solid waste generated in California, coupled with diminishing landfill space and potential adverse environmental impacts from landfill disposal, has created a need for state and local agencies to enact and implement an aggressive integrated waste management program; and WHEREAS, The Act directs the California Integrated Waste Management Board and local agencies to promote recycling and to maximize the use of feasible source reduction, recycling and composting options in order to reduce the amount of solid waste that must be disposed in landfills; and WHEREAS, The SBWMA is a joint powers agency organized under the Joint Exercise of Powers Act by cities and other local government agencies in San Mateo County(the "Member Agencies") , each of which oversees the collection of solid waste and recyclable materials within its jurisdiction; and WHEREAS, The SBWMA owns and oversees the operation of the Shoreway Recycling and Disposal Center in San Carlos ("Shoreway Center"). The recycling and material recovery operations conducted at the Shoreway Center are an integral component of each of the Member Agencies' Source Reduction and Recycling Elements,which have in turn been incorporated into San Mateo County's Integrated Waste Management Plan; and WHEREAS, The Member Agencies, acting in coordination with each other and the Authority, are planning to expand the recycling operations within each of their jurisdictions through a variety of measures, including the institution of"single stream"recycling; and WHEREAS, In order to prepare for this anticipated increase in the amount of recyclable materials, and to improve the ability of the Shoreway Center to recover recyclable materials from solid waste delivered to it, the SBWMA is planning a substantial renovation and expansion of the facilities at the Shoreway Center; and WHEREAS, One of the anticipated improvements is the installation of a new system designed specifically for sorting and recovering recyclable materials from single stream collection programs; the new system has been recommended by the Contractor, is to be installed by the manufacturer-vendor within the Materials Recovery Facility at Shoreway Center, and operated by Contractor; and WHEREAS, On November 1, 2007, the SBWMA issued a Request for Proposals for a qualified contractor to operate the Shoreway Center, transport recyclable materials to various specialized processors and transport residual solid waste to the Ox Mountain Landfill; and WHEREAS, South Bay Recycling, LLC (SBR) submitted a Proposal which, in the judgment of the staff of the Authority, represented the greatest value to the Authority, its Member Agencies and C:\Documents and Settings\mkearney\Local Settings\Temporary Internet Files\Content.Outlook\NZ4Q02MS\SBR Agreement-RESO- 10-28-09.doc their residents and businesses. On July 23, 2009, the SBWMA approved the Operations Agreement with SBR as the operator of the Shoreway Center, and WHEREAS, the services to be provided under the Agreement for Operation of the Shoreway Recycling and Disposal Center between the SBWMA and South Bay Recycling, L.L.C. have been analyzed pursuant to a Mitigated Negative Declaration (MND) prepared for and approved by the SBWMA at its April 23, 2009 meeting in connection with its approval an Agreement with South Bay recycling, LLC to operate the Shoreway Center. The Council finds that SBWMA's MND is and remains an adequate environmental document pursuant to CEQA and CEQA Gaidelines for the purposes of its analysis and consideration of this Operations Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BURLINGAME AS FOLLOWS: The City of Burlingame approves the Agreement for Operation of the Shoreway Recycling and Disposal Center between the SBWMA and South Bay Recycling, L.L.C. ("Agreement") in the form attached hereto and incorporated herein as Exhibit "A", provided that the Agreement shall not become effective unless and until at least eight (8) of the Member Agencies approve the Agreement as provided in Section 7.1.1 of the SBWMA First Amended and Restated Joint Exercise of Powers Agreement, on or before November 30, 2009. Ann Keighran, Mayor I, Mary Ellen Kearney, City Clerk of the City of Burlingame do hereby certify that the foregoing Resolution was introduced at a regular meeting of the City Council on the 2nd day of November, 2009, and was adopted thereafter by the following vote: AYES: Councilmembers: NOES: Councilmembers: ABSENT: Councilmembers: Mary Ellen Kearney, City Clerk C:\Documents and Settings\mkearney\Local Settings\Temporary Internet Files\Content.Outlook\NZ4Q02MS\SBR Agreement-RESO- 10-28-09.doc AGREEMENT FOR OPERATION OF THE SHOREWAY RECYCLING AND DISPOSAL CENTER SOUTH BAYSIDE WASTE MANAGEMENT AUTHORITY AND SOUTH BAY RECYCLING, LLC July 2009 7/30/09 TABLE OF CONTENTS ARTICLE1 DEFINITIONS.......................................................................................................... 3 1.01 Definitions................................................................................................................ 3 ARTICLE 2 TERM OF AGREEMENT......................................................................................... 4 2.01 Effective Date.......................................................................................................... 4 2.02 Term........................................................................................................................ 4 2.03 Option To Extend Term........................................................................................... 4 2.04 Conditions to Effectiveness of Agreement............................................................... 4 ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF CONTRACTOR........................... 6 3.01 Corporate Status ..................................................................................................... 6 3.02 Corporate Authorization........................................................................................... 6 3.03 Statements and Information in Proposal ................................................................. 6 3.04 No Conflict with Applicable Law or Other Documents............................................. 6 3.05 No Litigation............................................................................................................. 6 3.06 Financial Condition.................................................................................................. 6 3.07 Expertise.................................................................................................................. 7 ARTICLE 4 INSTALLATION OF NEW MRF EQUIPMENT........................................................ 8 4.01 General.................................................................................................................... 8 4.02 Purchase of MRF Equipment .................................................................................. 8 4.03 Installation of MRF Equipment ................................................................................ 8 4.04 Systems Acceptance Test....................................................................................... 8 4.05 Delay in Acceptance................................................................................................ 9 ARTICLE 5 OPERATION OF SHOREWAY CENTER ............................................................. 10 5.01 Scope of Work-General ...................................................................................... 10 5.02 Implementation Plan.............................................................................................. 10 5.03 Shoreway Center Facility Operations- General.................................................... 10 5.04 Days and Hours of Operation................................................................................ 11 5.05 Use of the Shoreway Center ................................................................................. 11 5.06 Permits .................................................................................................................. 12 5.07 Hazardous Waste Exclusion Program................................................................... 13 5.08 Hazardous Materials Generated From Contractor's Operations........................... 13 5.09 Equipment ............................................................................................................. 14 5.10 Authority Right to Purchase Contractor's Equipment............................................ 14 5.11 Personnel .............................................................................................................. 15 5.12 Weighing................................................................................................................ 17 5.13 Collection of Fees.................................................................................................. 17 5.14 Vehicle Turnaround Guarantee............................................................................. 17 5.15 Ownership of Solid Waste..................................................................................... 18 5.16 Marketing of Recyclable Materials......................................................................... 18 5.17 Authority's Right to Permit Others to Provide Services ......................................... 19 5.18 Self-Haul Materials................................................................................................ 19 5.19 Other Operating Procedures and Standards......................................................... 20 ARTICLE 6 TRANSPORTATION OF MATERIALS................................................................. 21 6.01 General.................................................................................................................. 21 Operating Agreement for Shoreway Center i 7/30/09 6.02 Transportation of Solid Waste...............................................................................21 6.03 Transportation of Hazardous Substances.............................................................21 6.04 Transportation of Recyclable Materials.................................................................21 6.05 Parking and Maintenance of Transfer Vehicles.....................................................21 6.06 Alternative Fuels Plan............................................................................................22 ARTICLE 7 COMPENSATION TO CONTRACTOR.................................................................23 7.01 General..................................................................................................................23 7.02 Reimbursement of Project Management Costs Related To MRF Sorting Equipment Installation.......................................................................................23 7.03 Basic Compensation-General.............................................................................23 7.04 Adjustment of Proposed Fees to Rate Year One(2011)And Modification During Interim Operations..................................................................................24 7.05 Adjustment Of Basic Compensation In Subsequent Rate years...........................24 7.06 Supplemental processing Fees.............................................................................24 7.07 Recycling Revenues;Guarantee and Sharing of revenues...................................25 7.08 Diversion Guarantee..............................................................................................27 7.09 Reimbursement of Pass-Through Costs...............................................................27 7.10 Reconciliation of Self-Haul Gate Fee Collections..................................................28 7.11 Adjustments for Special Circumstances................................................................28 7.12 Application For Annual Adjustment In Basic Compensation.................................29 ARTICLE 8 PAYMENT PROCEDURES...................................................................................30 8.01 Basic Compensation..............................................................................................30 8.02 Supplemental Processing Fees.............................................................................30 8.03 Pass Through Costs Reimbursement....................................................................30 8.04 Gate Fees for Publicly Hauled Waste....................................................................30 8.05 Revenue from Sale of Recyclable Materials..........................................................30 8.06 Disposal and Transportation Cost of MRF Residue..............................................30 8.07 Monthly Contractor's Statement............................................................................31 8.08 Annual Calculation and Reconciliations................................................................32 8.09 Liquidated Damages..............................................................................................32 ARTICLE 9 CONTRACTOR RECORDS/REPORTING............................................................33 9.01 Tonnage Records..................................................................................................33 9.02 CERCLA Defense Records...................................................................................33 9.03 Provision of Records to the Authority....................................................................33 9.04 Reports and Schedules.........................................................................................33 9.05 Quarterly Report Requirements.............................................................................34 9.06 Annual Report Requirements................................................................................35 9.07 Inspection of Records............................................................................................35 9.08 Retention of Records.............................................................................................36 9.09 Adverse Information..............................................................................................36 ARTICLE 10 INDEMNITY,INSURANCE,PERFORMANCE BOND,GUARANTY..................37 10.01 Indemnification....................................................................................................37 10.02 Insurance.............................................................................................................37 10.03 Faithful Performance Bond..................................................................................40 10.04 Alternative Security..............................................................................................41 10.05 Hazardous Waste Indemnification.......................................................................41 10.06 Integrated Waste Management Act Indemnification............................................41 Operating Agreement for Shoreway Center ii 7/30/09 10.07 Guaranty.............................................................................................................. 41 ARTICLE 11 DEFAULT AND REMEDIES ...............................................................................42 11.01 Events of Default................................................................................................. 42 11.02 Right to Suspend or Terminate Upon Default...................................................... 42 11.03 Specific Performance .......................................................................................... 43 11.04 Right to Perform; Use of Contractor Property...................................................... 43 11.05 Damages............................................................................................................. 43 11.06 Authority's Remedies Cumulative........................................................................ 43 11.07 Liquidated Damages............................................................................................ 43 11.08 Authority Default.................................................................................................. 44 11.09 Excuse from Performance................................................................................... 45 11.10 Assurance of Performance.................................................................................. 46 ARTICLE 12 OTHER AGREEMENTS OF THE PARTIES....................................................... 47 12.01 Relationship of Parties......................................................................................... 47 12.02 Compliance with Law........................................................................................... 47 12.03 Assignment.......................................................................................................... 47 12.04 Subcontracting..................................................................................................... 48 12.05 Affiliated Entity..................................................................................................... 49 12.06 Contractor's Investigation.................................................................................... 49 12.07 No Warranty by Authority .................................................................................... 49 12.08 Condemnation..................................................................................................... 49 12.09 Notice .................................................................................................................. 49 12.10 Representatives of the Parties ............................................................................ 50 12.11 Duty of Contractor Not to Discriminate................................................................ 50 12.12 Right to Inspect Contractor Operations............................................................... 50 12.13 Right of Authority to Make Changes.................................................................... 51 12.14 Transition to Next Service Provider..................................................................... 51 12.15 Reports as Public Records.................................................................................. 51 12.16 Destruction Of Premises...................................................................................... 51 ARTICLE 13 MISCELLANEOUS AGREEMENTS................................................................... 53 13.01 Governing Law.................................................................................................... 53 13.02 Jurisdiction........................................................................................................... 53 13.03 Binding on Successors........................................................................................ 53 13.04 Parties in Interest................................................................................................. 53 13.05 Waiver................................................................................................................. 53 13.06 Attachments......................................................................................................... 53 13.07 Entire Agreement................................................................................................. 53 13.08 Section Headings ................................................................................................ 53 13.09 Interpretation ....................................................................................................... 53 13.10 Amendment......................................................................................................... 53 13.11 Severability.......................................................................................................... 54 13.12 Costs and Attorneys' Fees .................................................................................. 54 13.13 Indemnity Against Challenges to Agreement ...................................................... 54 13.14 No Damages for Invalidation of Agreement......................................................... 54 13.15 References to Laws............................................................................................. 54 Operating Agreement for Shoreway Center iii 7/30/09 LIST OF ATTACHMENTS 1 . Definitions 2-A. List of MRF Sorting Equipment Showing Manufacturer, Model Number, Description 2-B. Latest Version of Site Plan for Shoreway Recycling and Disposal Center 2-C. Plan Drawings of New MRF Sorting Equipment 2-D. MRF and Transfer Station Materials Flow Diagram 2-E. Contamination Measurement Methodology: Single Loads 2-F. MRF Equipment Acceptance Test 2-G. Product Quality Standards 2-H. Quarterly Contamination Measurement Methodology 3. General Operating Standards and Procedures 4. Contractor's Implementation and Operating Plan 5-A. General Site Map/Shared Use Facility 5-B. Detailed Site and Building Plans and Parking Areas 6. Permits 7. Hazardous Waste Exclusion Plan (HWEP) 8-A. Authority-Supplied Stationary Equipment 8-B. Contractor-Supplied Equipment List 9. Contractor Staffing Plan 10. Liquidated Damages 11 -A. Materials Marketing Plan 11-B. Price Assurance Mechanism 11-C. Moisture Measurement 12-A. Procedure for Initial Rate Adjustment Process 12-B. Sample Calculation of Initial Rate Adjustment Process 12-C. Modification of Basic Compensation During Interim Operations in Rate Year One 12-D. Final Cost Forms 13-A. Procedure for Annual Rate Adjustment Process 13-B. Sample Calculation of Annual Rate Adjustment Process 14. Self-Haul Reconciliation Formula 15. Reports to be Provided by Contractor 16. Performance Bond and Continuation Certificate 17. Guaranty 18, Contractor's Safety Plan 19. Self-Haul Diversion Plan Operating Agreement for Shoreway Center 7%30/09 AGREEMENT FOR THE OPERATION OF THE SHOREWAY RECYCLING AND DISPOSAL CENTER THIS AGREEMENT is made and entered into as of this 30th day of July 2009, by and between the SOUTH BAYSIDE WASTE MANAGEMENT AUTHORITY (the "Authority"), and SOUTH BAY RECYCLING,LLC,a California limited liability company(the"Contractor'). RECITALS 1. The State of California,through the California Integrated Waste Management Act of 1989, codified at Public Resources Code Section 40000, et seq. (the "Act"), found and declared that the amount of solid waste generated in California,coupled with diminishing landfill space and potential adverse environmental impacts from landfill disposal, has created a need for state and local agencies to enact and implement an aggressive integrated waste management program. 2. The Act directs the California Integrated Waste Management Board and local agencies to promote recycling and to maximize the use of feasible source reduction, recycling and composting options in order to reduce the amount of solid waste that must be disposed in landfills. 3. The Authority is a joint powers agency organized under the Joint Exercise of Powers Act by cities and other local government agencies in San Mateo County(the"Member Agencies"),each of which oversees the collection of solid waste and recyclable materials within its jurisdiction. 4. The Authority owns and oversees the operation of the Shoreway Recycling and Disposal Center in San Carlos ("Shoreway Center'). The recycling and materials recovery operations conducted at the Shoreway Center are an integral component of each of the Member Agencies'Source Reduction and Recycling Elements,which have in turn been incorporated into San Mateo County's Integrated Waste Management Plan. 5. The Member Agencies,acting in coordination with each other and the Authority, are planning to expand the recycling operations within each of their jurisdictions through a variety of measures, including the institution of"single stream"recycling, i.e.,the collection of commingled recyclables in a single,wheeled container. 6. As a result of these new and expanded recycling programs within its Member Agencies, the Authority anticipates that the amount of recyclable materials, including organic materials,delivered to the Shoreway Center will increase. 7. In order to prepare for this anticipated increase in the amount of recyclable materials, and to improve the ability of the Shoreway Center to recover recyclable materials from solid waste delivered to it,the Authority is planning a substantial renovation and expansion of the facilities at the Shoreway Center. 8. One of the anticipated improvements is the installation of a new system designed specifically for sorting and recovering recyclable materials from single stream collection programs. The new system has been selected by the Contractor, is to be installed by the manufacturer-vendor within the Materials Recovery Facility at the Shoreway Center, and operated by the Contractor. Operagng Agreement for Shoreway Center 7/30/09 9. On November 1 , 2007, the Authority issued a Request for Proposals to select the new recyclable materials processing equipment, operate the Shoreway Center, transport recyclable materials to various specialized processors and transport residual solid waste to the Ox Mountain Landfill. 10. On March 4, 2008, Contractor submitted a Proposal which, in the judgment of the staff of the Authority, represented the greatest value to the Authority, its Member Agencies and their residents and businesses. On April 23, 2009, on the recommendation of its Facility Operations Contractor Selection Committee, the Board of Directors selected Contractor as the Operator of the Shoreway Center and directed the Authority's Executive Director to negotiate a final agreement with Contractor. 11 . On July 23, 2009, the Authority's Board of Directors approved this Agreement and recommended that each of the Authority's Member Agencies also approve it before the Effective Date. NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the parties agree as follows: Operating Agreement for Shoreway Center Page - 2 - 7/30/09 I ARTICLE 1 DEFINITIONS 2 1.01 DEFINITIONS 3 Unless the context otherwise requires, capitalized terms used in this Agreement will 4 have the meanings specified in Attachment 1. Operating Agreement for Shoreway Center Page-3- 7/30/09 I ARTICLE 2 TERM OF AGREEMENT 2 2.01 EFFECTIVE DATE 3 The Effective Date of this Agreement shall be November 30, 2009. 4 2.02 TERM 5 The Term of the Agreement shall begin on the Effective Date and shall end at midnight 6 on December 31, 2020, unless extended as provided in Section 2.03. Contractor's 7 obligation to operate the Shoreway Center shall commence January 1, 2011. 8 2.03 OPTION TO EXTEND TERM 9 The Authority may extend the Term for one (1) or more periods of one (1) year, up to a 10 maximum of three (3) years (i.e., until December 31, 2023), on the same terms and I1 conditions. If Authority wishes to extend the Term it shall deliver a written notice to 12 Contractor at least six (6) months before the expiration of the then-current Term, 13 specifying the number of additional years by which it wishes to extend the Term. If the 14 Authority initially elects to extend the Term for less than three (3) years, it may 15 subsequently elect to extend the Term in increments of one or two years, up to a total of 16 three years. 17 2.04 CONDITIONS TO EFFECTIVENESS OF AGREEMENT 18 A. The obligation of Authority to perform under this Agreement is subject to 19 satisfaction, on or before the Effective Date, of each and every one of the conditions 20 set out below: 21 1. Accuracy of Representations. The representations and warranties made by 22 Contractor in Article 3 of this Agreement shall be true and correct on and as 23 of the Effective Date, and a certification to that effect dated as of the Effective 24 Date shall be delivered by Contractor to Authority on the Effective Date. 25 2. Absence of Litigation. There shall be no litigation pending on the Effective 26 Date in any court challenging the execution of this Agreement or seeking to 27 restrain or enjoin its performance. 28 3. Sale of Bonds. The Authority shall have sold bonds, certificates of 29 participation, or other such instruments, or shall have secured a loan, in the 30 amount of$56.5 million, and received the proceeds thereof. 31 4. Effectiveness of Authority's Approval. Authority's approval of this Agreement 32 shall have become effective, pursuant to California law, on or before the 33 Effective Date, through the action of eight or more Member Agencies' City 34 Councils or other governing bodies approving this Agreement. 35 5. Contract with Equipment Manufacturer. Authority shall have entered into a 36 contract with Bulk Handling Systems for the fabrication, delivery, installation 37 and warranty service of the equipment described in Attachment 2-A for a 38 price and on terms and conditions acceptable to Authority. Operating Agreement for Shoreway Center Page-4- 7/30/09 1 6. Performance Bond. The Contractor shall have delivered a Performance 2 Bond meeting the requirements of Section 10.03. 3 The Authority may, in its sole discretion, waive the satisfaction of conditions 4 described in paragraphs 1, 2, 5 and 6 of this Section. 5 B. The obligation of Contractor to perform under this Agreement is subject to 6 satisfaction, on or before the Effective Date, of the following condition, which may 7 be waived by Contractor: 8 1. Contract with Equipment Manufacturer. Authority shall have entered into a 9 contract with Bulk Handling Systems for the fabrication, delivery, installation 10 and warranty service of the equipment described in Attachment 2-A. I 1 If this condition is not satisfied or waived by Contractor by the Effective Date, this 12 Agreement shall be void and have no force or effect. Operating Agreement for Shoreway Center Page-5- 7/30/09 I ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF CONTRACTOR 2 3.01 CORPORATE STATUS 3 Contractor is a limited liability company duly organized, validly existing and in good 4 standing under the laws of the State of California,and is qualified to do business in the 5 State of California. It has the corporate power to own its properties and to carry on its 6 business as now owned and operated and as required by this Agreement. 7 3.02 CORPORATE AUTHORIZATION 8 Contractor has the authority to enter into and perform its obligations under this 9 Agreement. The Board of Managers of Contractor (and the Members, if necessary) 10 have taken all actions required by law, its articles of organization, its operating 11 agreement or otherwise to authorize the execution of this Agreement. The persons 12 signing this Agreement on behalf of Contractor have authority to do so. 13 3.03 STATEMENTS AND INFORMATION IN PROPOSAL 14 The Proposal submitted to Authority by Contractor and information submitted to 15 Authority supplementary thereto, on which Authority has relied in entering into this 16 Agreement does not contain any untrue statement of a material fact nor omit to state a 17 material fact necessary in order to make the statements made, in light of the 18 circumstances in which they were made,not misleading. 19 3.04 NO CONFLICT WITH APPLICABLE LAW OR OTHER DOCUMENTS 20 Neither the execution and delivery by Contractor of this Agreement,nor the performance 21 by Contractor of its obligations hereunder(i) conflicts with, violates or will result in a 22 violation of any existing Applicable Law;or(ii)conflicts with,violates or will result in a 23 breach or default under any term or condition of any existing judgment,order or decree 24 of any court, administrative agency or other governmental authority, or of any existing 25 contract or instrument to which Contractor is a party,or by which Contractor or either of 26 its Members is bound. 27 3.05 NO LITIGATION 28 There is no action,suit,proceeding,or investigation at law or in equity,before or by any 29 court or governmental entity, pending or threatened against Contractor, or otherwise 30 affecting Contractor, wherein an unfavorable decision, ruling, or finding, in any single 31 case or in the aggregate, would materially adversely affect Contractor's performance 32 hereunder,or which, in any way,would adversely affect the validity or enforceability of 33 this Agreement,or which would have a material adverse effect on the financial condition 34 of Contractor or either of its Members. 35 3.06 FINANCIAL CONDITION 36 Contractor has made available to Authority information on its financial condition and that 37 of its Members. Contractor recognizes that Authority has relied on this information in 38 evaluating the sufficiency of Contractor's financial resources to perform this Agreement 39 and of its Members to guarantee that performance. To the best of Contractor's 40 knowledge, this information is complete and accurate, does not contain any material 41 misstatement of fact, and does not omit any fact necessary to prevent the information 42 provided from being materially misleading. Operating Agreement for Shoreway Center Page-6- 7/30/09 1 3.07 EXPERTISE 2 Contractor has the expertise and professional and technical capability to perform all of 3 its obligations under this Agreement and is ready, willing and able to so perform. Operating Agreement for Shoreway Center Page - 7 - 7/30/09 I ARTICLE 4 INSTALLATION OF NEW MRF EQUIPMENT 2 4.01 GENERAL 3 Contractor has recommended that the Authority purchase the equipment described in 4 Attachment 2-A and illustrated on Attachment 2-C. This recommendation has been 5 made based on Contractor's analysis of the types and volumes of Recyclable Materials 6 expected to be delivered to the MRF after the Member Agencies initiate a single stream 7 collection process, the Authority's goals for materials recovery as incorporated in this 8 Agreement,and the site constraints of the MRF as it is planned to be reconstructed as 9 shown on Attachment 2-B. Contractor has had the opportunity to provide input to the 10 design process and is satisfied that its recommendations on equipment and operational 11 aspects have been incorporated in the design of the MRF building shown on Attachment 12 2-13 and in the plans and specifications included in the Request for Proposals for 13 Construction dated March 9,2009,as modified by the document entitled"SBR Building 14 Modifications with Budget Effect on SBWMA 070209"dated July 2, 2009. Contractor 15 has assured the Authority that the equipment recommended will process single stream 16 Recyclable Materials as specified and required in Attachment 2-E (MRF equipment 17 performance specification),with the composition described in the system's acceptance 18 test set forth in Attachment 2-F and will produce materials that meet the product quality 19 standards set forth in Attachment 2-G. 20 4.02 PURCHASE OF MRF EQUIPMENT 21 The Authority intends to execute a contract with Bulk Handling Systems on or before 22 November 1, 2009 to purchase the MRF equipment. Contractor will, upon request, 23 assist the Authority in negotiating the terms and conditions of the contract with Bulk 24 Handling Systems. 25 4.03 INSTALLATION OF MRF EQUIPMENT 26 The equipment will be installed by Bulk Handling Systems and is intended to operate as 27 shown on the drawings contained in Attachment 2. 28 Contractor has represented to Authority that the equipment, installed as shown on 29 Attachment 2-C,will achieve the product quality standards as described in Attachment 2- 30 G. 31 Upon request by Authority, Contractor will arrange for a technically qualified 32 representative to be on site at least five(5)days per week during the installation of the 33 equipment to observe the installation and to advise the Authority. Currently,the parties 34 expect the equipment installation process will require about 35 weeks,will begin in April 35 2010,and be completed in December 2010. 36 4.04 SYSTEMS ACCEPTANCE TEST 37 Upon completion of the installation, the Contractor shall immediately start up and 38 operate the MRF equipment for a shakedown period of no less than 10 days and no 39 more than 20 days prior to commencing the acceptance test. 40 The acceptance test will be conducted as provided in Attachment 2-F. 41 The Authority will accept the equipment and allow Contractor to commence full-scale 42 operation of the MRF when the equipment as installed has satisfied the standards of 43 performance contained in Attachment 2-F(which include achieving the product quality Operating Agreement for Shoreway Center Page-8- 7/30/09 I standards contained in Attachment 2-G), as well as any other performance 2 representations made by the equipment manufacturer to the Authority in the contract 3 referenced in Section 4.02. 4 4.05 DELAY IN ACCEPTANCE 5 If the acceptance test is not completed within 20 days after the end of the shakedown 6 period, Contractor will be responsible for additional costs which may be incurred by 7 Authority in arranging for Recyclable Materials to be transported to and processed at a 8 different location, as well as for decreased revenue from sales of Recyclable Materials. 9 The Contractor is responsible to pay the Authority only for those added transportation 10 and processing costs and reduced commodity revenues arising from management and 11 supervisory failures, failure to operate the system according to the manufacturer's 12 operating protocol, or the inefficiency of the Contractor's sorters and equipment 13 operators which may cause the acceptance test period to extend beyond 20 days. Operating Agreement for Shoreway Center Page - 9 - 7/30/09 I ARTICLE 5 OPERATION OF SHOREWAY CENTER 2 5.01 SCOPE OF WORK—GENERAL 3 The work to be performed by Contractor includes the furnishing of all labor, supervision, 4 equipment, materials, supplies and all other items necessary to perform the services 5 required under this Agreement in a thorough, workmanlike and efficient matter, so that 6 users of the Shoreway Center are provided reliable,courteous and high-quality services at 7 all times. The enumeration of, and specification of requirements for, particular items of 8 labor,supervision,equipment,materials or supplies shall not relieve Contractor of the duty 9 to furnish all others that may be required to be provided under this Agreement by 10 Contractor,whether enumerated or not. 11 Contractor shall perform all work in accordance with Attachment 3,all provisions of which 12 are incorporated herein whether or not such provisions are specifically referred to in any 13 other section of this Agreement. 14 5.02 IMPLEMENTATION PLAN 15 The parties recognize that substantial planning and preparation will be required to ensure 16 successful initiation of operations by Contractor on January 1, 2011, and full-scale MRF 17 operations in February 2011 and full-scale Transfer Station operations in March 2011. To 18 that end, Contractor has prepared a detailed implementation plan addressing the steps 19 Contractor will take, and the schedule on which it will take them, to prepare for 20 commencement of operations on January 1, 2011. The implementation plan covers 21 Contractor's schedule for hiring and training of personnel,acquiring necessary vehicles and 22 equipment,installing and testing of the new sorting equipment,etc.,and is included in the 23 Implementation and Operating Plan attached as Attachment 4. 24 Contractor shall diligently adhere to the implementation plan and shall meet periodically, 25 whenever the Authority requests, to review and report on progress. No changes will be 26 made to the schedule without the Authority's prior written approval. Failure to adhere to the 27 implementation plan, including its schedule, shall constitute a breach of this Agreement 28 which,if uncured,shall constitute a default under Section 11.01. 29 The specific plans and other materials required to be submitted by the implementation plan 30 are subject to the Authority's review and approval. To the extent reasonably practicable, 31 the Authority will take actions, make decisions, and provide directions to Contractor in 32 accordance with the schedule and time allowances set forth in Attachment 4,so as not to 33 delay Contractor's adherence to the implementation plan schedule. 34 5.03 SHOREWAY CENTER FACILITY OPERATIONS-GENERAL 35 Contractor recognizes that the Authority and its Member Agencies are committed to 36 recycling materials that have in the past been disposed in landfills. Contractor shall operate 37 the Transfer Station, Materials Recovery Facility (MRF), Buy-back/ Drop-off Center and 38 related facilities to allow for the convenient and efficient management of Solid Waste and 39 recovery of Recyclable Materials, and Organic Materials, including Plant Materials. The 40 Contractor's overall approach to operation of the scale house, the Transfer Station, the 41 MRF, the Public Buy-Back/Drop-Off Center, and the transportation of materials from the 42 Shoreway Center to the Designated Disposal Site and Designated Processing Facilities is 43 included in the Implementation and Operating Plan attached as Attachment 4. Also 44 included is Contractor's interim operating plan describing its operations during the period 45 from the Commencement Date to full-scale operation of the MRF. Operating Agreement for Shoreway Center Page-10- 7/30109 I Contractor shall receive and accept all Solid Waste, Recyclable Materials, Organic 2 Materials (including Plant Materials), Construction and Demolition Debris, E-waste, and U- 3 Waste delivered to the Shoreway Center by: 4 A. The Member Agencies and their Collection Contractor(s). 5 B. The general public and businesses located within, or outside of, the Service Area (i.e., 6 the combined jurisdictions of the Member Agencies). 7 C. Commercial haulers doing business within the Service Area. 8 D. Other haulers approved by the Authority. 9 Neither the Contractor nor an Affiliated Company may bring materials from outside the 10 Service Area without prior written approval of the Authority. 11 5.04 DAYS AND HOURS OF OPERATION 12 Contractor shall operate the Shoreway Center every day of the year, except Thanksgiving, 13 Christmas and New Years Day. 14 The hours during which the Contractor may conduct operations at the Shoreway Center 15 are: 16 Monday through Saturday: 2:00 a.m. to 11:00 p.m. 17 Sunday: 6:00 a.m. to 6:00 p.m. 18 19 Operations between the hours of 6:00 p.m. and 11:00 p.m. Monday through Saturday shall 20 be limited to operations within the Transfer Station and the MRF. 21 There shall be no truck traffic to or from the Shoreway Center between the hours of 6:00 22 p.m. and 2:00 a.m. the following morning. Additionally, there shall be no truck traffic to or 23 from the Shoreway Center between 2:00 a.m. and 6:00 a.m. on Sundays. 24 The Center shall be open to the public only between 6:00 a.m. and 6:00 p.m. seven days a 25 week. 26 5.05 USE OF THE SHOREWAY CENTER 27 A. Contractor's Use of Shoreway Center. Subject to the limitations imposed by this 28 Agreement, including Attachment 5, Contractor shall have the right to use the Shoreway 29 Center (including the administrative, maintenance and repair areas) every day of the 30 year. The Authority will furnish office and interior space painted and carpeted, but 31 Contractor is responsible for providing at its expense all office equipment, furniture, and 32 supplies for areas it will occupy. No lease or other property interest is created by this 33 Agreement. 34 B. Authority's Use of Shoreway Center. 35 1. The Authority shall have priority to the use of the upstairs conference room in the 36 MRF building and visitor viewing area in the Transfer Station building, but will 37 cooperate with Contractor in scheduling use of these areas. The Authority will 38 provide, at its expense, telephones and other communications equipment, furniture, 39 computers, office supplies and moveable partitions. 40 2. The Authority shall also have access to and the right to make reasonable use of 41 common areas in the buildings, including lobbies, hallways, restrooms and eating 42 areas. The Authority shall endeavor to use these areas in a manner that does not 43 interfere with Contractor's use of them. Operating Agreement for Shoreway Center Page-11 - 7/30/09 1 3. Finally, five (5) parking spaces in the visitor parking area in front of the west 2 entrance to the Transfer Station will be reserved for use of Authority staff and 3 invitees. 4 C. Collection Contractor's Use of Facilities and Areas. The parties anticipate that Member 5 Agencies will enter into franchise agreements with a Collection Contractor. The 6 Authority will allow the Collection Contractor to make use of the Shoreway Center, as 7 described in this section and Attachment 5. The Collection Contractor will have the 8 exclusive right to occupy and use the northeast parcel of the Shoreway Center 9 designated "Collections Yard/Collections Operations Area" on Attachment 5, as well as 10 the buildings and facilities located in this area. The Collection Contractor shall also 11 have exclusive use of approximately 21,130 square feet of office space designated as 12 "Existing Admin" on Attachment 5, together with the adjacent parking area. 13 D. Shared Use Areas. In addition, there are areas of the Shoreway Center that Contractor 14 and the Collection Contractor will need to share. The areas of shared utilization 15 include: entry/exit access roads; the fueling area; a bay in the smaller maintenance 16 building which Contractor may use; and the parking area behind the Transfer Station. 17 The Collection Contractor shall have priority to use of fueling facilities; Contractor shall 18 cooperate with the Collection Contractor in the use of other shared areas in order to 19 minimize interference with its operations. If there is a dispute between the Contractor 20 and the Collection Contractor over the shared use areas, the Authority will make a 21 determination as to the extent of use by each, which determination shall be final and 22 binding on each. 23 Each contractor using the Shoreway Center will pay for costs associated with its use. In 24 cases in which there is a single meter (e.g., water and sewer), the costs will be 25 allocated as the Contractor and the Collection Contractor agree. If they are unable to 26 agree, the Authority will make a determination, which determination shall be final and 27 binding on each. 28 E. Other Contractors Temporarily On Site. Contractor is aware that upon the 29 Commencement Date, (1) a general civil construction contractor will be working at the 30 Shoreway Center, and (2) a separate supplier/contractor will be installing recycling 31 equipment in the MRF. Contractor will conduct its operations so as to avoid interfering 32 with the work of either of these contractors. 33 5.06 PERMITS 34 A. The Authority will obtain those new permits and renew those existing permits listed as 35 its responsibility on Attachment 6. 36 B. If new operating permits and approvals (or amendments to the permits and 37 approvals obtained by the Authority) become necessary by virtue of Contractor's 38 operations or changes in operations, Contractor shall obtain them. The Authority will 39 assist the Contractor in obtaining permits provided that the operations which give rise to 40 the need for them are in compliance with this Agreement. Contractor shall submit a 41 draft of all applications for operating permits (and for subsequent renewals or 42 modifications thereof) to the Authority for its review and approval prior to filing an 43 application with the permitting agency(ies). Contractor shall keep the Authority fully 44 informed at all times on the status of all permit applications. Contractor shall apply for 45 permits in its own name or in the name of the Authority, as directed by the Authority. 46 Contractor shall not agree to permit terms and conditions on any permit which is to be 47 issued in the name of the Authority without the prior written consent of the Authority. Operating Agreement for Shoreway Center Page-12- 7/30/09 I Contractor shall provide copies of all permits issued in Contractor's name and originals 2 of all permits issued in the Authority's name (and any renewals or amendments) to the 3 Authority promptly and in any case within five (5)working days of their receipt. 4 C. The Contractor will notify the Authority of all changes in permit status, involvement by 5 other regulatory agencies, accidents, and operational changes that reasonably could 6 materially affect operations at, or the movement of materials into/out of, the Shoreway 7 Center. Contractor shall comply with the terms of all licenses, permits and approvals 8 governing the Shoreway Center, including any which may require modifications to its 9 operating procedures. Contractor will comply with the terms and conditions contained 10 in the use permit and any and all other entitlements (and any and all amendments 11 thereto) issued by the City of San Carlos for the Shoreway Center. 12 D. Contractor shall be solely responsible for paying, and shall pay, any fines or penalties 13 imposed by governmental agencies for Contractor's noncompliance with permit terms. 14 5.07 HAZARDOUS WASTE EXCLUSION PROGRAM 15 A. Contractor shall develop, maintain, update implement and comply with a hazardous 16 waste exclusion program plan (HWEP), the requirements of which are described in 17 Attachment 7. Should additional measures be required to be incorporated into the 18 HWEP to comply with changes in law or regulations, Contractor shall incorporate, 19 implement and comply with such additional measures. Contractor shall arrange for the 20 safe and lawful temporary storage and disposal of such waste in an appropriate location 21 separate from the U-waste and E-waste materials collected at the Buyback / Drop-off 22 center. 23 As a part of the HWEP, the Contractor shall inspect outbound loads of materials that 24 are transported to the Designated Disposal Site or to Designated Processing Facilities. 25 If the Disposal Site or a Processing Facility rejects a load because it contains materials 26 that should have been removed under the HWEP, the Contractor shall notify the 27 Authority immediately and manage the disposal of the load in a safe and lawful manner, 28 at its sole expense. 29 B. Contractor shall remove and arrange for proper, safe and lawful disposal of CFCs and 30 compressor oils from appliances delivered to the Shoreway Center, as well as switches 31 containing mercury. Contractor shall arrange and pay for the proper, safe and lawful 32 disposal of hazardous wastes that are recovered from the inspection and/or the 33 processing of incoming loads to the Transfer Station and MRF and for the Recycling of 34 White Goods whenever feasible. 35 5.08 HAZARDOUS MATERIALS GENERATED FROM CONTRACTOR'S OPERATIONS 36 The Contractor shall be responsible for, and shall pay, all costs of transporting, treating 37 and/or disposing of any hazardous materials generated by the Contractor's operations at 38 the Shoreway Center. Contractor shall ensure that all hazardous materials and wastes are 39 properly stored on site. Cleanup costs for any on-site contamination that is the result of the 40 Contractor's activities shall be the sole responsibility of, and shall be paid in full by, the 41 Contractor. 42 5.09 EQUIPMENT 43 The Authority will furnish stationary equipment listed on Attachment 8-A. Contractor shall 44 provide all other equipment required to perform, in a safe and efficient manner, the services 45 required by this Agreement, including equipment listed on Attachment 8-B. Operating Agreement for Shoreway Center Page- 13- 7/30/09 I A. All equipment supplied by the Contractor to perform services under this Agreement 2 shall be new and fully functioning at the commencement of this Agreement and shall 3 comply with all representations and warranties, as well as applicable laws and 4 regulations. 5 B. All transfer vehicles shall be capable of loading at the Shoreway Center and unloading 6 at the Designated Disposal Site and Processing Facilities by equipment in use at the 7 Disposal Site and Processing Facilities. 8 C. The number of transfer vehicles and other types of equipment listed on Attachment 8-13 9 is based on the throughput of materials at the level anticipated during the first year of 10 full operation. The parties recognize that tonnage processed through the Shoreway I 1 Center may change over time and that an increase in tonnage processed through the 12 Shoreway Center could require the Contractor to supply additional equipment. The 13 Contractor shall add, and shall exclusively pay the costs of, all equipment needed to 14 operate the Shoreway Center, process any increase in tonnage and achieve the 15 Diversion Program Guarantees, without any increase in the Contractor's compensation. 16 D. Whenever there is a material change in the number, type or composition of equipment, 17 the Contractor shall provide written notification to the Authority. 18 E. The Authority will not supply any shop equipment except those items listed on 19 Attachment 8-A. The Authority will not supply any parts inventory. The Contractor is 20 responsible to provide sufficient equipment and parts inventory for both stationary 21 equipment and rolling stock to support continuous operation of the Shoreway Center. 22 5.10 AUTHORITY RIGHT TO PURCHASE CONTRACTOR'S EQUIPMENT 23 The Authority shall have the right, but not the duty, to purchase any or all equipment owned 24 by Contractor at the expiration or earlier termination of this Agreement, at its net book value 25 as shown on Contractor's audited financial statements (which shall be no greater than the 26 purchase price less accumulated depreciation claimed by Contractor on its federal income 27 tax returns). Within thirty (30) days of the commencement of operations, the Contractor 28 shall deliver to the Authority properly signed documents necessary or appropriate for the 29 Authority to secure its purchase options. As new or replacement equipment is purchased, 30 similar documentation covering the equipment shall be provided by Contractor. 31 Upon the Authority's exercise of its option to purchase, Contractor will sign and deliver bills 32 of sale or other documents reasonably requested by Authority to evidence the transfer of 33 title to all equipment purchased. 34 If Contractor wishes to lease (rather than purchase) the equipment which it is to furnish, 35 each lease shall provide that the lessor will, if requested, consent to its assignment to the 36 Authority without charge upon the expiration or earlier termination of this Agreement and 37 further shall provide adequate mechanisms for the Authority to acquire title to equipment if 38 desired. 39 5.11 PERSONNEL 40 A. Contractor shall furnish such qualified drivers, operators, sorters, mechanical, 41 supervisory, clerical and other personnel as may be necessary to provide the services 42 required by this Agreement in a safe, thorough, professional and efficient manner. The 43 minimum number of workers to be provided in each job classification shall be as shown 44 on Attachment 9. Operating Agreement for Shoreway Center Page-14- 7/30/09 I B. Contractor shall offer employment to qualified employees of the Previous Contractor 2 who would otherwise become unemployed by reason of the change in contractors, 3 provided that (1 ) the Contractor shall not be obligated to offer employment to more 4 existing employees than the Contractor needs to perform the services required under 5 the Agreement, and (2) the Contractor shall not be obligated to offer employment to 6 workers who have not been employed at the Shoreway Center by the Previous 7 Contractor for at least one-hundred-twenty (120) days immediately prior to the 8 Commencement Date. 9 For purposes of this subsection B, the term "qualified employee" means an employee 10 who (1 ) is eligible for employment under federal and state law, (2) meets the 11 Contractor's minimum employment standards for new employees, (3) has not been 12 convicted of a crime that is related to the job or job performance, (4) is in a bargaining 13 unit covered by collective bargaining agreements between the Previous Contractor and 14 Teamsters Local 350 or Machinists Local 1414 and (5) does not present a 15 demonstrable danger to customers, co-workers or employees of the Authority or the 16 Collection Contractor. The term "qualified employee" does not include management or 17 supervisory personnel, non-represented employees, or workers furnished by an 18 employment agency operating as an independent contractor. 19 C. Contractor shall not discharge any workers employed pursuant to subsection B for at 20 least ninety (90) days after the Commencement Date, except for cause. 21 D. Contractor shall maintain a list of the Previous Contractor's qualified employees who 22 were not offered employment by the Contractor pursuant to Section 5.11 B prior to the 23 Commencement Date (January 1 , 2011 ) or during the two (2) months following the 24 Commencement Date. If any positions become available during the three (3) months 25 following the initial two (2) month operation period (i.e., from March 1 , 2011 through 26 May 30, 2011 ), Contractor shall offer employment to qualified employees on the list by 27 seniority within the collective bargaining unit (if it exists). 28 E. Contractor shall pay employees who (1 ) are retained by Contractor pursuant to this 29 Section 5.11 and (2) were in bargaining units covered by collective bargaining 30 agreements in effect as of the Effective Date between the Previous Contractor and 31 Teamsters Local 350 or Machinists Local 1414, wages and benefits no less than those 32 included in the collective bargaining agreements in place in 2010. 33 F. This Agreement does not obligate Contractor to become a party to a collective 34 bargaining agreement entered into by the Previous Contractor 35 G. Contractor shall adopt policies and procedures consistent with State and federal law 36 that ensure a sober and drug-free workplace. This includes strictly prohibiting unlawful 37 manufacture, distribution, possession, or use of any controlled substance in the 38 workplace, regardless of whether the employee is on duty at the time. Further, the 39 policies and procedures shall prohibit an employee from operating either Authority or 40 Contractor equipment and vehicles (whether on or off duty) while under the influence of 41 alcohol or drugs. The purpose of these policies and procedures is to ensure workplace 42 safety, productivity, efficiency, and the quality of Contractor's service to customers. 43 H. Contractor shall be responsible for providing sufficient training to all workers so that 44 they can perform the work in a safe and competent manner and are thoroughly familiar 45 with the work which the Contractor is required to perform and the standards it is 46 required to meet under this Agreement. Operating Agreement for Shoreway Center Page - 15 - 7/30/09 1 I. If the Authority determines that workers provided by a particular independent contractor 2 or party working on behalf of the Contractor prove persistently unsatisfactory, the 3 Authority may require that Contractor either secure workers through a different 4 independent contractor or hire competent workers directly. 5 J. Contractor shall ensure that all Contractor's employees, while performing services 6 under this Agreement, shall be dressed in clean uniforms and shall wear visible 7 identification that includes the employee's name and/or the employee's number, and 8 Contractor's name. Uniform type,style,colors,and any modifications may be subject to 9 approval by the Authority. 10 K. The parties recognize that tonnage processed through the Shoreway Center will change I l over time and that an increase in tonnage could require additional personnel. The 12 Contractor shall add, and shall exclusively pay the costs of, all such additional 13 personnel as needed to operate the Shoreway Center,process any increase in tonnage 14 and achieve the Diversion Program Guarantees, without any increase in the 15 Contractor's compensation. Whenever there is a material change in the number or 16 composition of personnel, the Contractor shall provide written notification to the 17 Authority. 18 L. Before extending an offer of employment for the position of general manager of the 19 Shoreway Center, both initially and throughout the Term, Contractor shall provide the 20 Authority with the description of the proposed position, an opportunity to review and 21 comment upon the position description,the background,experience and qualifications 22 of each candidate being considered for the position, and an opportunity to meet with 23 each candidate. Contractor shall give thoughtful consideration to the Authority's 24 comments on the descriptions of the proposed position and each candidate, but shall 25 have the ultimate right to make employment decisions in its best business judgment. 26 M. Contractor shall, at the Authority's request, ensure that one or more of its Members' 27 officers will be available and present onsite at the Shoreway Center to assist in 28 Contractor's initial transition and thereafter to oversee Contractor's operations for a 29 three-month period beginning one month prior to full-scale operations. 30 N. The Contractor is considering obtaining workers for MRF sorting through the San Mateo 31 County Human Services Agency, Vocational Rehabilitation Services (VRS). The 32 Authority endorses this approach and encourages Contractor to pursue it. The MRF 33 sorter complement shown in Attachment 9 and the MRF labor costs shown in 34 Attachment 12-B are based on the use of workers and supervisors provided by the 35 County VRS. The actual costs in 2011 will be determined by a contract to be entered 36 into between the Contractor and the County Human Services Agency. Contractor shall 37 furnish a copy of the final contract between it and the County Human Services Agency 38 before executing it. The Authority's review of the contract is to ensure that the number 39 of workers to be furnished and the annual payment to the County are consistent with 40 the assumptions included in Attachments 9 and 12-A. 41 O. Notwithstanding subsection A above or any other language in this agreement or 42 attachments to the contrary,Contractor may,commencing in 2012(1)reduce the 43 number of workers at the Transfer Station below the number shown on Attachment 9 if 44 in the previous 6 consecutive month period the number of Tons delivered to the 45 Transfer Station is less than an annual average of 357,725 and/or(2)reduce the 46 number of workers at the MRF below the number shown on Attachment 9 if in any 47 previous 6 consecutive month period the number of Tons delivered to the MRF and 48 Buyback Center is less than an annual average of 74,022. Operating Agreement for Shoreway Center Page-16- 7r30/09 1 2 The reduction in operational personnel should approximate the percentage reduction in 3 tonnage. 4 5 Employees classified as Management and Administration may not be reduced below 6 the number shown on Attachment 9. 7 8 A reduction in personnel permitted by this subsection will not increase or decrease the 9 cost per Ton otherwise established pursuant to Sections 7.03 and 7.04. Nor will it affect 10 the Revenue Guarantee established in Section 7.07. 11 12 Such a reduction in operational personnel shall not change the Contractor's obligations 13 to perform under this Agreement. 14 15 5.12 WEIGHING 16 A. Contractor shall operate and maintain the scale system at the Shoreway Center. 17 Weighing operations shall be conducted in accordance with standards and procedures 18 set forth in Attachment 3. 19 B. Contractor shall furnish all hardware (including computers, cabling and terminals), 20 software, and all other items necessary to generate, at a minimum, all the reports 21 contained in Attachment 15. The software shall have the capabilities described in 22 Attachment 3. Contractor shall obtain the Authority's prior written approval of the 23 specific hardware and software proposed to be furnished and used by the Contractor 24 pursuant to this paragraph. 25 C. Contractor shall provide the Authority with licenses, documentation and training 26 necessary or useful for the Authority to operate the computers and software during and 27 upon expiration or earlier termination of the Agreement. 28 D. Radiation monitoring equipment is used at the entrance to the Shoreway Center to 29 identify loads containing radioactive waste. Contractor shall operate the equipment and 30 respond to alerts by contacting the Authority and local regulatory agencies as required 31 bylaw. 32 5.13 COLLECTION OF FEES 33 The Authority has the sole and exclusive authority to establish rates and fees charged to 34 users of the Shoreway Center and to modify them from time to time. Contractor shall collect 35 fees established by the Authority from all Self-Haul Customers who use the Shoreway 36 Center. Contractor shall keep complete and accurate records of all fees collected, shall 37 keep safe all monies and funds collected, and shall make all payments to the Authority as 38 provided in Section 8.04. 39 5.14 VEHICLE TURNAROUND GUARANTEE 40 Contractor shall operate the Shoreway Center so that: 41 A. Collection vehicles of Member Agencies and their Collection Contractor(s) are: 42 1 . processed through the scale house operation in no more than five (5) minutes per 43 vehicle, measured from the vehicle's entry into the scale house vehicle queue, and Operating Agreement for Shoreway Center Page - 17 - 7/30/09 1 2. are able to unload and depart from the Shoreway Center in no more than fifteen(15) 2 minutes from the time they leave the scale house unless a collection vehicle breaks 3 down and causes a traffic back-up beyond Contractor's control. 4 B. Self-haul customers do not wait more than fifteen minutes(15)to be processed by the 5 scale and assigned a place to dump. 6 Should Contractor fail to meet the maximum turnaround time,Liquidated Damages shall be 7 assessed in the amounts stated in Attachment 10. 8 5.15 OWNERSHIP OF SOLID WASTE 9 Once materials are delivered to the Shoreway Center,ownership shall transfer directly from 10 the deliverer to Contractor. 11 Materials which are transported to a Designated Processing Facility or the Disposal Site 12 shall become the property of the owner or operator of the Designated Processing Facility or 13 Disposal Site once they have been delivered by Contractor, subject to any regulations of 14 the owner/operator related to unacceptable materials. 15 5.16 MARKETING OF RECYCLABLE MATERIALS 16 A. General. Contractor shall use its best efforts in marketing and promoting the sale of all 17 Recyclable Materials to obtain the highest prices available under prevailing conditions in 18 the relevant market,whether foreign or domestic.Contractor will exert at least the same 19 effort in marketing the Recyclable Materials from the Shoreway Center as it does in 20 marketing materials which it markets for its own account as principal or as an 21 agent/broker for any third party.Except as set forth in Attachment 11 B,Contractor shall 22 not use,sell to,or broker through an Affiliate in the marketing of Recyclable Materials 23 without notifying the Authority in writing and receiving approval from the Authority in 24 writing. Contractor shall not use any artifice, business structure or other attempt to 25 evade this requirement. 26 B. Materials Marketing Plan. The Materials Marketing Plan (Attachment 11A), describes 27 Contractor's strategy for optimizing revenues from the sale of Recyclable Materials 28 recovered at the Shoreway Center. The Materials Marketing Plan includes (1) the 29 commodity purchasers to which Contractor anticipates marketing each of the major 30 categories of materials to be recovered at the Shoreway Center; (2) the methods 31 Contractor will use to(a)determine the reliability of prospective purchasers in terms of 32 timely pickup,credit worthiness,prompt payment,rejection of materials and/or filing of 33 claims, and other commercial considerations,and(b)ensure that recovered materials 34 are handled in an environmentally sound manner and devoted to an end use involving 35 the creation or manufacture of new products;(3)the maximization of revenues from the 36 State of California Department of Conservation for materials that have a California 37 Redemption Value. Contractor shall implement the Materials Marketing Plan. 38 Attachment 11 B describes the methods by which Contractor will provide assurance to 39 the Authority that revenues Contractor receives from sale of materials(particularly those 40 sold to Potential Industries,Inc.,an Affiliate)are consistent with market prices. 41 C. Reporting. Contractor shall submit,concurrently with the quarterly report described in 42 Section 9.05, a report on materials marketing including a summary of Contractor's 43 marketing efforts during the preceding quarter, the quantity (in tons)of material sold; 44 total revenues billed and received;quantity and price data disaggregated by type and 45 grade of materials;transportation method including contact information for carriers used Operating Agreement for Shoreway Center Page-18- 7/30/09 I to transport materials from the Shoreway Center to the buyers' location or unloading 2 point; and information on ultimate market destinations. 3 D. No Partnership. The Parties intend and hereby agree that their relationship shall be 4 that of independent contractors with respect to the marketing of Recyclable Materials. 5 Nothing contained herein shall be construed to create any employment, partnership, 6 joint venture, co-ownership or agency relationship between the Parties, and Contractor 7 shall not by any action allow any presumption to arise that a relationship of partnership 8 exists between the Parties. 9 5.17 AUTHORITY'S RIGHT TO PERMIT OTHERS TO PROVIDE SERVICES 10 The Authority may direct the Contractor to perform additional services as provided in 11 Section 12.13. If the Contractor and Authority cannot agree on terms and conditions for 12 such additional services within one-hundred twenty (120) days from the date on which the 13 Authority first requests a proposal from Contractor to perform such services, the Authority 14 may, in addition to its other rights under this Agreement, permit a third party or parties other 15 than Contractor to provide such services. Contractor will provide such third party or parties 16 all such access to and use of the Shoreway Center and Authority-owned equipment as 17 necessary for such third party or parties to perform all such additional services. The 18 Authority's rights under this section are in addition to those under Section 9.05.J. 19 5.18 SELF-HAUL MATERIALS 20 A. Self-haul Materials. The Contractor shall implement a Self-Haul Diversion Plan as 21 detailed in Attachment 19. The Contractor shall identify, and segregate for Diversion, 22 materials from the categories below: 23 1. Bunker Program materials (inert materials such as dirt, concrete, asphalt, and other) 24 2. Self-haul Organic materials (plant materials, food scraps) 25 3. Self-haul C&D materials (wood, concrete, insulation, roofing, metals, drywall) 26 4. Recyclable Materials (paper, bottles and cans, metals) 27 5. Other recoverable materials (tires, carpet, carpet padding, foam, plastics) 28 6. Other materials approved by the Authority. 29 B. Weighing of All Self-haul Materials. Contractor shall ensure that Self-haul materials 30 will be dumped and kept separate from Collection Contractor materials at the Transfer 31 Station... All outbound loads of diverted Self-haul materials will be weighed before 32 leaving the Transfer Station or at a State certified scale located at a Designated 33 Processing Facility and the outbound tonnage will be recorded and reported in the Self- 34 haul Diversion Report. Self-haul materials intended for disposal do not need to be 35 weighed separately from Solid Waste at the Transfer Station provided that Contractor 36 shall provide accurate, separate and complete weights of the Self-haul materials to the 37 Authority. 38 C. Self-haul Diversion. Contractor's satisfaction of the Self-haul Diversion obligation will 39 be calculated based on diverted tons of Self-haul material shipped to a Designated 40 Processing Facility. Alternatively, Contractor may sort Self-haul materials onsite and 41 into segregated materials streams, and may market segregated Self-haul materials 42 directly to a buyer that is approved in advance by the Authority. 43 Self-haul materials shipped from the Shoreway Center by the Contractor for disposal 44 or for any other use at a landfill shall not be considered diverted tons, unless the Operating Agreement for Shoreway Center Page-19- 7/30/09 I Authority approves, in writing and in advance, a beneficial landfill use for diverted tons. 2 Loads rejected by an off-site processor because of contamination will not count 3 towards Self-haul Diversion and the Contractor shall pay all costs of managing 4 rejected loads. 5 D. Self-haul Diversion Report. Contractor shall provide the Authority a Self-haul 6 Diversion Report including the following information: the amount of Self-haul material 7 received, the weight all Self-haul materials processed on-site or transported to the 8 Designated Site, the method of materials processing, and the weight and disposition of 9 all materials Diverted. The Contractor shall provide the report monthly (no later than 15 10 days after the end of each month) in a format to be approved by the Authority. 11 E. Optional Transfer Station Processing System. On or before June 30, 2010, 12 Contractor shall submit to the Authority a proposal to install a materials processing 13 system in the Transfer Station. The system is to be capable of accepting and efficiently 14 processing Self-haul construction/demolition debris (wood, concrete, insulation, roofing, 15 metals, drywall, dirt and other inerts) and Organic Materials (including Plant Materials 16 and wood waste). The system shall be capable of operating at a cost per Ton 17 (including capital costs amortized as provided in Attachment 12) which is equal to or 18 less than the current total cost of transporting construction and demolition debris to the 19 existing off-site facility used by the Authority and the payment to the operator of that 20 facility for processing. The proposal shall include plans and specifications for the 21 equipment, cost forms showing estimates for design, equipment purchase, installation 22 and operation, and a detailed operational plan. 23 The Authority will carefully evaluate the proposal, but is under no obligation to approve 24 it nor arrange for or permit the installation of such a processing systems. 25 The Contractor is responsible for the cost of preparation and submission of the proposal 26 and will not receive any additional payment for it. 27 5.19 OTHER OPERATING PROCEDURES AND STANDARDS 28 Contractor shall conduct its operations in accordance with the requirements of the 29 California Integrated Waste Management Board in effect (as codified in Title 14 and Title 27 30 of the California Code of Regulations) as of the Effective Date and as they may be changed 31 from time to time. Operating Agreement for Shoreway Center Page - 20 - 7/30/09 I ARTICLE 6 TRANSPORTATION OF MATERIALS. 2 6.01 GENERAL 3 Contractor shall use due care to prevent materials being transported from being spilled 4 or scattered during transport. If any materials are spilled, Contractor shall at its sole 5 expense clean up all spilled materials,whether on private or public property. 6 6.02 TRANSPORTATION OF SOLID WASTE 7 Contractor shall transport and deliver to the Designated Disposal Site all Solid Waste 8 that is not recycled or reused. No Solid Waste may be disposed of at any location other 9 than the Designated Disposal Site without written consent from the Authority. 10 6.03 TRANSPORTATION OF HAZARDOUS SUBSTANCES 11 Contractor shall provide or arrange for transportation and delivery to an appropriately 12 permitted disposal facility of any Hazardous Substances that are not discovered by the 13 Contractor through the hazardous waste exclusion program (HWEP) or which are 14 rejected by the operator of the Designated Disposal Site or any designated Processing 15 Facility. 16 6.04 TRANSPORTATION OF RECYCLABLE MATERIALS 17 A. Single Stream Recyclable Materials. Contractor shall provide or arrange for 18 transportation and delivery of all Single Stream Recyclable Materials to a purchaser, 19 a licensed recycling facility,or a person who will use the materials in a process or 20 product and will not dispose or use them at a landfill. 21 B. Transfer Station Materials. Contractor shall provide or arrange for transportation to a 22 Designated Processing Facility of Organic Materials, C&D materials, and other 23 Recyclable Materials delivered to and recovered at the Transfer Station. These 24 materials shall be prepared and delivered in a condition and form which meet the 25 Designated Processing Facilities'specifications and receiving requirements. 26 C. E-Waste.U-Waste.and Appliances. Contractor shall supply storage containers for, 27 and arrange for the transportation of, E-Waste, U-Waste, appliances and other 28 materials that may be added to the list of Buy Back/Drop-off Center material. At the 29 request of the Authority,Contractor will pay the cost of transporting these materials. 30 The handling/disposal costs incurred by Contractor for the use of outside vendors in 31 the transportation and processing of special wastes collected in the Buy back/Drop- 32 off Center (e.g., Electronic waste, Universal waste, and batteries, oil, and paint 33 collected from Customers as part of the services to Member Agencies)and for the 34 handling and processing of appliances will be reimbursed as a Pass-Through Cost. 35 6.05 PARKING AND MAINTENANCE OF TRANSFER VEHICLES 36 Contractor shall park empty Transfer Vehicles at the Shoreway Center in the area(s) 37 designated for this purpose shown on Attachment 5. Transfer Vehicles containing Solid 38 Waste shall be parked in areas that prevent liquids that have come in contact with Solid 39 Waste and/or Recyclable Materials from entering the storm water system. In addition, 40 Contractor shall use due care generally to prevent liquids that have come in contact with 41 Solid Waste and/or Recyclable Materials from entering the storm water system. Operating Agreement for Shoremy Center Page-21- 7/30/09 1 6.06 ALTERNATIVE FUELS PLAN 2 Contractor will use B20 biodiesel to fuel all vehicles used (1 ) at the Shoreway Center 3 and (2) to transport materials from the Shoreway Center to the Designated Disposal Site 4 and Designated Processing Facilities. Operating Agreement for Shoreway Center Page - 22 - 7/30/09 I ARTICLE 7 COMPENSATION TO CONTRACTOR 2 7.01 GENERAL 3 The payments provided for in Sections 7.02,7.03,7.06,7.08 and 7.09 and the share of 4 Revenues provided in Section 7.07 are the full,entire and complete compensation due 5 to Contractor for furnishing all labor, equipment, materials and supplies and all other 6 things necessary to perform all of the services required by this Agreement in the manner 7 and at the time prescribed, and for fulfilling all of its obligations under this Agreement, 8 including but not limited to observing the installation of the new sorting equipment in 9 accordance with Article 4, the operation of the Shoreway Center in accordance with 10 Article 5, and the transportation of materials in accordance with Article 6. The 11 compensation provided for in this Article includes all costs for the items mentioned 12 above and also for all taxes, insurance, bonds, overhead, profit and all other costs 13 necessary or appropriate to perform the services in accordance with this Agreement. 14 7.02 REIMBURSEMENT OF PROJECT MANAGEMENT COSTS RELATED TO MRF 15 SORTING EQUIPMENT INSTALLATION 16 The Authority will reimburse the Contractor for project management costs actually and 17 reasonably incurred during the Equipment Manufacturer's installation of the MRF sorting 18 equipment for a fixed fee of Two Hundred Seventy Six Thousand Four Hundred Sixty 19 Two Dollars($276,462).The foregoing amount will be adjusted by 80%of the 20 percentage change in Index:U.S.Department of Labor,Bureau of Labor Statistics, 21 Consumer Price Index—All Urban Consumers,U.S.city average(not seasonally 22 adjusted,all items,base period:1982-84=100,series no.cuur0000sa) 23 between the Effective Date and the date that the equipment is installed and ready for 24 the shake down period and acceptance test per Section 4.04. 25 This amount is the full compensation for all Contractor's costs associated with 26 supervising the installation of the equipment,including coordination with the Equipment 27 Manufacturer and the Authority's architects, engineers and construction contractor 28 during installation. 29 The obligation to reimburse Contractor for these costs accrues upon the equipment's 30 successful completion of the acceptance tests and the Authority's review and approval of 31 Contractor's request for reimbursement. The amount due will be paid within thirty(30) 32 days thereafter. 33 7.03 BASIC COMPENSATION—GENERAL 34 Contractor's Basic Compensation consists of three components, related to three 35 separate processes performed by Contractor. 36 A. Transfer Station Payment. The amount of this payment is calculated by multiplying 37 the number of Tons of material delivered to and processed at the Transfer Station by 38 the per Ton Transfer Station Fee then in effect. The Transfer Station Fee is$9.71 39 per Ton. 40 B. Recyclable Materials Processing Payment. The amount of this payment is 41 calculated by multiplying the number of Tons of Recyclable Materials delivered to 42 and processed at the MRF by the per Ton MRF Fee then in effect. The MRF Fee is 43 $67.36 per Ton. 44 C. Transportation Payment. The amount of this payment is calculated by multiplying 45 the number of Tons of materials transported from the Shoreway Center to the Operating Agreement for Shoreway Center Page-23- 7/30/09 1 Designated Disposal Site, and the Designated Processing Facilities for inerts, 2 Construction and Demolition Debris, Plant Materials and Organics by the number of 3 one-way standard miles from the Shoreway Center to the Disposal Site or 4 Processing Facility and by the applicable Transportation Fee then in effect. The 5 Transportation Fees for the five types of materials are $1.007 per Ton/Mile for Solid 6 Waste, $1.043 per Ton/Mile for inerts, $0.688 per Ton/Mile for C&D debris, $0.614 7 per Ton/Mile for Plant Materials, and $0.745 per Ton/Mile for Organics. Tons 8 delivered to the Designated Disposal Site do not include MRF residue. 9 7.04 ADJUSTMENT OF PROPOSED FEES TO RATE YEAR ONE (2011)AND 10 MODIFICATION DURING INTERIM OPERATIONS 11 For Rate Year One, the parties expect to make a cost adjustment based on various cost 12 indices. In addition, since the full-scale operation of the MRF will not occur until 13 February 2011, the MRF Fee will be subject to a one-time modification. 14 A. Adiustment. The parties expect that the costs underlying the fees described in 15 Section 7.03.A, B and C will change between the date of this Agreement and the 16 year in which they will first be paid (2011). 17 The Authority will adjust the Transfer Station Fee, the MRF Fee, and the five 18 Transportation Fees in October 2010, following the procedure described in 19 Attachment 12-A and illustrated in Attachment 12-13, after receipt of Contractor's 20 application described in Section 7.12. 21 The fees, as so adjusted, will be paid during Rate Year One (2011), as earned. 22 B. Modification for a Part of Rate Year One (2011). Since full-scale operation of the 23 MRF and Transfer Station are not expected to occur until February and March, 24 respectively, of Rate Year One, the Basic Compensation will need to be modified to 25 reflect the reduced scale of operations. During this interim operations period, 26 Contractor will be paid Basic Compensation as provided in Attachment 12-C. Once 27 the MRF and Transfer Station are fully operational, the Basic Compensation, 28 adjusted as described in subsection A above, will be paid during the remainder of 29 Rate Year One, as earned. 30 7.05 ADJUSTMENT OF BASIC COMPENSATION IN SUBSEQUENT RATE YEARS 31 The Authority will adjust the Transfer Station Fee, the MRF Fee, and the five 32 Transportation Fees in October 2011 and in October of each subsequent year during the 33 Term, following the procedure described in Attachment 13-A and illustrated in 34 Attachment 13-B. 35 The fees, as so adjusted, will be paid during the immediately following Rate Year, as 36 earned. 37 7.06 SUPPLEMENTAL PROCESSING FEES 38 A. Materials Delivered to MRF. If Contractor elects, or if the Authority directs 39 Contractor, to process loads of Recyclable Materials delivered to the MRF by the 40 Collection Contractor which contain more than fifteen percent (15%) contamination, 41 Authority will pay Contractor a supplemental fee to cover the additional cost of 42 processing this material. The amount of this supplemental fee will be $25 per ton 43 (applied to all tons over fifteen percent (15%) contamination) in Rate Year One. It 44 will be adjusted in subsequent years by the same percentage as that used to adjust 45 the MRF Fee described in Section 7.03.B. Operating Agreement for Shoreway Center Page-24- 7/30/09 I B. Materials Delivered to the Transfer Station. If Contractor elects, or if the Authority 2 directs Contractor, to process loads of Plant Materials and Organics delivered to the 3 Transfer Station by the Collection Contractor which contain more than the applicable 4 maximum contamination level, but do not exceed that level by more than five percent 5 (5%), Authority will pay Contractor a supplemental fee to cover the additional cost of 6 processing this material. The amount of this supplemental fee will be $7 per Ton 7 (applied to all Tons over the maximum contamination level) in Rate Year One. It will 8 be adjusted in subsequent years by the same percentage as that used to adjust the 9 Transfer Station Fee described in Section 7.03.A. 10 7.07 RECYCLING REVENUES; GUARANTEE AND SHARING OF REVENUES 11 A. Revenue Guarantee - General. Contractor will pay Authority one hundred percent 12 (100%) of Revenue earned from the sale of Recyclable Materials monthly until it has 13 paid Revenue equal to the Revenue Guarantee then in effect. If Revenue earned 14 from the sale of Recyclable Materials is less than the Revenue Guarantee in any 15 year, Contractor will pay Authority, within 60 days after the end of that Rate Year, the 16 difference between the Revenue Guarantee and the Revenue actually earned and 17 paid by Contractor to Authority. 18 'Revenue" for the purposes of this Section 7.07 means the amounts due Contractor 19 from the sale of Recyclable Materials (prices based on terms being FOB Shoreway 20 Center except for glass, in which case sales revenue will be based on the delivered 21 price less cost of transport). 22 B. Revenue Guarantee in Rate Year One. 23 1. General. Subject to the adjustment described in subsection B.2 and the 24 proration described in subsection B.3, the Revenue Guarantee for Rate Year 25 One is Six Million Five Hundred Thousand Dollars ($6,500,000). 26 27 2. Adjustment of 2011 Revenue Guarantee. The Revenue Guarantee is based on 28 tonnage projected by the SBWMA for calendar year 2011 (74,022 Tons). The 29 Revenue Guarantee will be adjusted (up or down) proportional to the actual 30 tonnage of Recyclable Materials delivered to the MRF and Buy Back Center in 31 2011. For example, if the actual tons delivered in 2011 are 77,723, the Revenue 32 Guarantee for 2011 will be increased by 5.0%to Six Million Eight Hundred 33 Twenty Five Thousand Dollars ($6,825,000). No subsequent adjustments to the 34 Revenue Guarantee will be made. 35 36 3. Temporary Proration of Revenue Guarantee. The MRF is not expected to be 37 operational until the Spring of Rate Year One. The Revenue Guarantee will be 38 prorated one time, during Rate Year One (2011). The proration will not reduce 39 the expected baseline tonnage for Rate Year One (74,022 Tons) but will be 40 applied to the Revenue Guarantee. Once the MRF equipment has been tested 41 by Contractor and accepted by Authority, the Authority will calculate the number 42 of days that the MRF is capable of full operation for the balance of Rate Year 43 One (2011). 44 As an example: 45 Revenue Guarantee- $6,500,000 46 First day MRF is fully operational- April 1 47 Number of days operational- 275 (April 1 - December 31) 48 Proportion of year operational - 75% (275 days/365 days) Operating Agreement for Shoreway Center Page-25- 7/30/09 I Prorated Revenue Guarantee = $4,875,000 (75% x Revenue Guarantee) 2 3 C. Revenue Guarantee During Rate Year Two and Thereafter. 4 The Revenue Guarantee for all rate years after Rate Year One will be equal to the 5 dollar amount calculated under subsection B.2 above. 6 D. Sharing of Revenues. 7 1 . General. As an incentive to Contractor to maximize both the quantity and 8 quality of materials recovered and successfully marketed for recycling, 9 Contractor will be entitled to twenty five percent (25%) of the Revenue from 10 the sale of Recyclable Materials delivered to or recovered at the Shoreway 11 Center in excess of the Revenue Guarantee. Once the Contractor's payment 12 of Revenue from the sale of Recyclable Materials equals the Revenue 13 Guarantee, for the balance of that Rate Year, Revenue will be divided 14 between the Authority and the Contractor as provided in Section 7.07.D.2 and 15 3. 16 2. Minimum Share. The Contractor is entitled to a minimum of twenty five 17 percent (25%) of Revenue earned and received from the sale of Recyclable 18 Materials. Commencing with the month immediately following the month in 19 which Contractor has paid the Authority the Revenue Guarantee, Contractor 20 will be entitled to retain twenty five percent (25%) of Revenue received 21 thereafter in that Rate Year, paying the Authority seventy five percent (75%) 22 of Revenue monthly. Contractor's entitlement to twenty five percent (25%) of 23 a portion of the Revenue paid to Authority in the month in which the Revenue 24 Guarantee was attained will be determined and paid within 60 days after the 25 end of the Rate Year. 26 3. Increased Share. As a further incentive for Contractor to maximize recovery 27 of Recyclable Materials at the MRF, the Contractor's share of Revenues (in 28 excess of the Revenue Guarantee) will be increased as provided in this 29 subsection 3. 30 31 Materials not recovered at the MRF will be sent to the Transfer Station for 32 transport to the Designated Disposal Site. Commencing with the first Rate 33 Year in which full-scale sorting operations are continuous (expected to be 34 2012), the MRF residue generation rate will be calculated. The MRF residue 35 generation rate is the percentage obtained by dividing the total Tons of 36 material sent from the MRF to the Transfer Station during the Rate Year by 37 the total Tons of material delivered to the MRF. 38 39 For any Rate Year in which the MRF residue generation rate is less than ten 40 percent (10%), the Contractor's percentage share of Revenues in excess of 41 the Revenue Guarantee will be increased as follows: MRF RESIDUAL GENERATION INCREASE IN COMMODITY SHARE 10%> no increase 9.0% - 9.9% 1 % increase (becomes 26%) 8.0% - 8.9% 2% increase (becomes 27%) Operating Agreement for Shoreway Center Page - 26 - 7/30/09 7.0% - 7.9% 3% increase (becomes 28%) 6.0% - 6.9% 4% increase (becomes 29%) 5.0% - 5.9% 5% increase (becomes 30%) 4.0% -4.9% 6% increase (becomes 31%) `3.9% 7% increase (becomes 32%) 1 2 The amounts due the Contractor pursuant to Section 7.07.D.3 will be 3 calculated annually on a Rate Year basis, and paid as provided in Section 4 8.08, 5 7.08 DIVERSION GUARANTEE. 6 A. Transfer Station Diversion Program.am. As an incentive to Contractor to Divert Self-haul 7 materials from disposal, the Contractor's Compensation may be adjusted 8 (decreased) based on its performance in diverting from the Disposal Facility, material 9 delivered to the Transfer Station by self-haul customers. The Contractor has 10 guaranteed the diversion of a minimum of 30,000 Tons annually (the "Minimum Self- 1 l Haul Diversion Guarantee"). The 30,000 Tons per year Minimum Self-haul Diversion 12 Guarantee amount shall not include Self-haul Plant Materials (Self—haul Diversion 13 shall be equal to the annual Tons of Diverted Self-haul materials less the Tons of 14 Diverted Self-haul Plant Materials). If Contractor fails to achieve the Minimum Self- 15 Haul Diversion Guarantee in any Rate Year, the Contractor will pay the Authority 16 (through the rate structure) Seventy Dollars ($70.00) for each Ton below 30,000 17 Tons. 18 If the Contractor does not meet the Minimum Self-Haul Diversion Guarantee, the 19 Authority may require Contractor to prepare and submit a plan detailing the changes 20 in equipment, personnel and/or practices that Contractor will employ to achieve the 21 Minimum Self-Haul Diversion Guarantee. 22 The amounts due Authority pursuant to Sections 7.08.A will be calculated annually 23 on a Rate Year basis, and paid as provided in Section 8.08. 24 If the Authority approves the Optional Transfer Station Processing System. described 25 in Section 5.18.E, then the parties will mutually agree on a reduction in, or 26 elimination of the requirements in subsection A. 27 28 B. MRF Residual . As an incentive to Contractor to increase recovery efficiency at the 29 MRF, the Contractor will be responsible for paying (a) the amount charged at the 30 Designated Disposal Site for accepting and disposing of residue from the MRF (the 31 current tip fee at Ox Mountain is $33.24 per Ton), and (b) the Transportation Fee 32 per Ton/Mile attributable to delivering MRF residue to the Disposal Site. The cost of 33 disposal of MRF residue will be deducted monthly from the MRF Payment provided 34 in Section 7.03.8. Materials in a load that constitute contamination in excess of the 35 applicable limitation, as identified by an audit of that load, are not counted as 36 residue for purposes of this section or Section 7.07.D.3. 37 7.09 REIMBURSEMENT OF PASS-THROUGH COSTS 38 Contractor will pay the following costs and will be reimbursed by Authority with no 39 allowance for overhead or profit: Operating Agreement for Shoreway Center Page-27- 7/30/09 I • Interest paid on loans to acquire capital equipment per the debt service schedule 2 provided by the Contractor. 3 • Payments to Buy Back Center customers for CRV and scrap value. 4 • Permit and regulatory fees(which do not include penalties or fines). 5 • Recycling of E-Waste, U-Waste and HHW from the Drop-Off Center,White Goods 6 and CFCs(including transportation),unless paid directly by the Authority. 7 7.10 RECONCILIATION OF SELF-HAUL GATE FEE COLLECTIONS 8 It is not feasible to weigh loads delivered to the Transfer Station by Self-Haul Customers. 9 For that reason, the Authority charges such Customers on a volumetric (cubic yard) 10 basis. 11 Studies conducted for the Authority have established that the ratio of volume to weight of 12 Self-Haul material is 2.76 to 1 (i.e., 2.76 cubic yards will weigh one Ton), on average 13 over the course of a year. Individual loads will vary and the ratio will also vary 14 seasonally. 15 The Authority pays Contractor and the Disposal Facility operator on a per Ton basis and 16 relies on the Gate Fees to contribute revenues to payments due Contractor. Therefore, 17 it is important that Contractor accurately measure loads of Self-Haul Waste since under 18 measurements will result in under collection of Gate Fees. 19 On an annual basis,the Authority will calculate the amount of Tons of Self-Haul Waste 20 delivered to the Transfer Station through the mass balance formula shown on 21 Attachment 14. That tonnage will be converted to cubic yards using the 2.76 to 1 ratio. 22 The Authority will then compare the total Gate Fees collected and remitted by Contractor 23 to the expected Gate Fee revenue, using the formula shown on Attachment 14. If that 24 calculation shows that Contractor collected less Gate Fee revenue than indicated,it will 25 pay the difference to the Authority,as provided in Section 8.08. 26 7.11 ADJUSTMENTS FOR SPECIAL CIRCUMSTANCES 27 A. The Contractor may apply to the Authority for an adjustment to one or more of the 28 fees provided for in Section 7.03,and the Authority may initiate such a review,if any 29 of the following events occur, provided that the event will increase or decrease 30 Contractor's component costs of operation by an amount that is two percent(2%)or 31 more of the total fees earned under Section 7.03 during the immediately preceding 32 Rate Year and provided further that the costs will not be otherwise recovered through 33 the per ton and per ton mile fees provided in Section 7.03: 34 (1)A flood, earthquake, other acts of nature or other similar catastrophic events 35 outside the control of Contractor that physically damage the Shoreway Center. 36 (2)A change in law occurring after the Effective Date that requires a change in 37 operations. 38 (3)A community emergency which requires Contractor to provide increased or 39 different services. 40 (4)The annual average Single Family Targeted Recyclable Materials contamination 41 level exceeds ten percent(10%)for two consecutive years or more. The annual 42 average Single Family Targeted Recyclable Materials contamination level will be 43 calculated on the basis of the arithmetic average of the measured contamination Operating Agreement for Shoreway Center Page-28- 7/30/09 1 level for Single Family Targeted Recyclable Materials in eight (8) consecutive 2 quarterly sampling events conducted in accordance with the methodology 3 described in Attachment 2-H. 4 B. A change in the scope of services directed by the Authority pursuant to Section 5 12.13 will be considered a basis for an adjustment in compensation whether or not it 6 will increase or decrease Contractor's component costs by two percent (2%) or 7 more. 8 C. If the Contractor requests, or the Authority initiates, a special review of the 9 Contractor's compensation, the Authority shall have the right to review the financial 10 and operation records of the Contractor and Affiliated Entities that it determines are 11 reasonably necessary to conduct such special review. 12 D. Contractor shall bear the burden of justifying to the Authority by substantial evidence 13 its entitlement to continuation of current, as well as any increases in, Contractor's 14 compensation for special circumstances. If the Authority determines that the 15 Contractor has not met its burden, it shall notify Contractor that it is prepared to deny 16 Contractor's request for an increase in compensation, or to proceed with a reduction 17 in compensation. The Contractor may request a hearing to produce additional 18 evidence. Upon such request, the Authority shall provide a hearing before the 19 Authority's Board of Directors. In the event the Authority's Board of Director's denies 20 Contractor's request, Contractor shall have the right to present its claim in a court of 21 competent jurisdiction. 22 7.12 APPLICATION FOR ANNUAL ADJUSTMENT IN BASIC COMPENSATION 23 A. Application Date and Content. Contractor shall prepare and submit to the Authority 24 by July 1 of each year, an application for adjustment of the elements of Basic 25 Compensation for the next Rate Year. The first application will be due on July 1, 26 2010 for Rate Year One (2011). The application will adjust the Transfer Station Fee, 27 the MRF Fee and the Transportation Fees following the methodology prescribed in 28 Attachment 12-A (for Rate Year One) and Attachment 13-A (for subsequent Rate 29 Years). It will substantially follow the format of Attachment 12-B (for Rate Year One) 30 and Attachment 13-B (for subsequent Rate Years)with such modifications as the 31 Authority may approve in advance, in writing. 32 B. Review of Application. The Authority staff will review the application for 33 completeness, accuracy and consistency with the procedures described in 34 Attachments 12-A and 13-A and the format illustrated in Attachments 12-B and 13-B. 35 The Authority staff will bring to the Contractor's attention any factual or calculation 36 errors, omissions or other discrepancies in the application which come to their 37 attention. Contractor shall provide any additional information requested by Authority 38 staff during the review of the application, shall meet with Authority staff, at the 39 Shoreway Center, to discuss the application, and shall make revisions to the 40 application necessary for it to be complete, accurate and consistent. 41 C. Report to Authority Board of Directors. On or before September 1 of each year, 42 Authority staff shall submit a report to the Authority Board of Directors recommending 43 the adjustments, if any, to the elements of Contractor's Basic Compensation for the 44 next Rate Year. The Authority Board of Directors will take action on the 45 recommendation at a public meeting held on or before October 31. All changes to 46 the elements of Contractor's Basic Compensation must be approved by the Board of 47 Directors. Operating Agreement for Shoreway Center Page-29- 7/30/09 I ARTICLE 8 PAYMENT PROCEDURES 2 8.01 BASIC COMPENSATION 3 The Basic Compensation provided for in Section 7.03 will be paid monthly in arrears, 4 with the first payment earned as of January 31, 2011. The Authority will make each 5 payment within fifteen (15) days after it receives from Contractor a timely and complete 6 monthly statement required by Section 8.07. 7 8.02 SUPPLEMENTAL PROCESSING FEES 8 Any fees earned by Contractor under Section 7.06 will be paid monthly in arrears, 9 concurrently with payment of the Basic Compensation due under Section 8.01. 10 8.03 PASS THROUGH COSTS REIMBURSEMENT 11 The interest reimbursement provided for in Section 7.09 will be made monthly in 12 accordance with the debt service schedule provided by Contractor until the principal 13 amount of the loan(s) approved by the Authority is paid. The interest rate on capital 14 equipment will be adjusted as part of the compensation adjustment process for Rate 15 Year One only, based on a market based on the change in the interest rate on United 16 States Treasury 10-year notes between March 2008 (3.5%) and July 2010, based on 17 official United States Treasury data." If Contractor incurs other costs which are 18 reimbursable under Section 7.09, it shall include these costs, together with information 19 sufficient to substantiate the amount and purpose of each expense, in the monthly 20 statement required by Section 8.07 due the month immediately following the month in 21 which the cost was incurred. The Authority will pay the cost reimbursements due 22 concurrently with payment of the Basic Compensation due under Section 8.01. 23 8.04 GATE FEES FOR PUBLICLY HAULED WASTE 24 Contractor will pay to Authority (by wire transfer or otherwise as Authority may direct)the 25 amount of all Gate Fees collected from Persons delivering Self-Hauled Materials to the 26 Transfer Station. Such payments will be made no less often than bimonthly, but possibly 27 as frequently as daily. These payments will be reflected in the monthly statement from 28 Contractor required by Section 8.07. 29 8.05 REVENUE FROM SALE OF RECYCLABLE MATERIALS 30 Contractor will pay to the Authority (by wire transfer or otherwise as Authority may direct) 31 all Revenue earned from third parties for the sale of Recyclable Materials delivered to or 32 recovered at the Shoreway Center until the annual Revenue Guarantee, or the Prorated 33 Revenue Guarantee for 2011 as determined by Section 7.07.13, has been remitted. 34 Thereafter, Contractor shall pay to Authority seventy five percent (75%) of such 35 Revenue, unless otherwise adjusted by Section 7.07.D.3. Such payments will be made 36 on or before the fifteenth (15th) day of each month based on sales during the 37 immediately preceding month. These payments will be reflected in the monthly 38 statement from Contractor required by Section 8.07. 39 40 The Revenues received by Contractor from the sales of Recyclable Materials are held in 41 trust for the benefit of the Authority and such Revenues shall be disbursed only as 42 provided in this Agreement and shall not be subject to levy or attachment or lien by or for 43 any creditor of Contractor. Contractor shall account for all such Revenues, when and as Operating Agreement for Shoreway Center Page-30- 7/30/09 I received, separately and apart from all other money, funds, accounts or other resources 2 of Contractor. 3 4 8.06 DISPOSAL AND TRANSPORTATION COST OF MRF RESIDUE 5 The amount, in Tons of materials delivered to the MRF that are transported to the 6 Disposal Facility and which, under Section 7.08.8 are the responsibility of Contractor, 7 will be separately reported in the monthly statement required by Section 8.07. The 8 Authority will adjust (reduce) the amount of the Basic Compensation due Contractor 9 each month by the amount calculated as provided in Section 7.08.B. 10 8.07 MONTHLY CONTRACTOR'S STATEMENT 11 A On or before the fifteenth (15th) day of each month, Contractor shall submit to 12 Authority a statement showing amounts due to Contractor and Authority under 13 Sections 8.01 through 8.06. The statement shall include at least the following 14 information, all of which shall be for the immediately preceding month: 15 1. the amount (in Tons) of Recyclable Materials delivered to the MRF during each 16 day of the preceding month by each of the Member Agencies and/or their 17 Collection Contractor(s); 18 2. the amount (in Tons or cubic yards, whichever is applicable) of Recyclable 19- Materials delivered to the Buyback/Dropoff Center during each day of the 20 preceding month; 21 3. the amount (in Tons) of Recyclable Materials recovered by Contractor from all 22 materials delivered to the Transfer Station; 23 4. the amount (in Tons) of Recyclable Materials sold by type and grade, and the 24 total sales price, transportation costs and commodity revenues net of 25 transportation costs; 26 5. a daily accounting showing the following information for each sales transaction: 27 • date of sale; 28 • type of material sold and grade, if applicable; 29 • quantity of material sold; 30 • unit price; 31 • total revenue due from sale; 32 • name and address of purchaser; and 33 • a copy of the sales invoice, sales contract or other document evidencing 34 transfer of title. 35 6. weight and volume of Solid Waste, Plant Materials, Organic Materials, inerts, and 36 Construction and Demolition Debris entering the Shoreway Center by the hauler 37 type (Collection Contractor(s) by Member Agency), commercial haulers, self 38 haul, public, and other)(by type of vehicle); 39 7. weight and volume of all Solid Waste, Plant Materials, Organics Materials, inerts, 40 and Construction and Demolition Debris leaving the Shoreway Center; Operating Agreement for Shoreway Center Page-31 - 7130109 1 8. weight and volume of all materials moving between the buildings and operations 2 on the Shoreway Center site (e.g. between the MRF building, Transfer Station 3 building and Buyback center) (by material type); 4 9. mass balance accounting of all materials that enter and leave the Shoreway 5 Center so that all inbound tons equal outbound / shipped materials less inventory 6 (by material type); 7 10. location to which all Solid Waste, Plant Materials, Organics Materials, and 8 Construction and Demolition Debris received by the Facilities were delivered for 9 transfer, processing, ultimate use or disposal; 10 Contractor shall utilize the appropriate reporting forms in Attachment 15. 11 B. Undisputed sums will be paid by Contractor and Authority within fifteen (15) days 12 from the date the Authority receives the statement. 13 C. Authority may request additional information regarding a report within thirty (30) days 14 from receipt. Such request shall be in writing and shall describe the information 15 requested with reasonable specificity. Contractor shall furnish the requested 16 information to Authority within thirty (30) days from the date of the request. Authority 17 shall notify Contractor within thirty (30) days after receipt of the initial report and 18 payment, or within thirty (30) days after receipt of the additional information if such 19 information is requested, of any dispute as to the accuracy of the report and the 20 amount of the payment. 21 8.08 ANNUAL CALCULATION AND RECONCILIATIONS 22 Adjustments to Contractor's Compensation may be due for one or more of the following: 23 A. Shortfall of Recycling Revenue Guarantee (Section 7.07.A) 24 B. Additional share of Recycling Revenue over Revenue Guarantee for MRF Residue 25 control (Section 7.07.D.3) 26 C. Minimum Self-Haul Diversion Guarantee (Section 7.08.A) 27 D. Reconciliation of Self-Haul Gate Fee Collections (Section 7.10) 28 The Authority will calculate the amounts, if any, due from Contractor and will provide 29 Contractor with its calculations and supporting information on or before January 31 of 30 each Rate Year. If Contractor requests, Authority shall meet with Contractor during the 31 month of February to discuss the calculations, will attempt to answer any questions that 32 Contractor may have, and will endeavor to resolve objections that Contractor may have. 33 Contractor shall pay the amount due, as initially calculated or as subsequently adjusted 34 by Authority, within thirty (30) days after receiving the Authority's initial calculation. 35 8.09 LIQUIDATED DAMAGES 36 Liquidated damages will be paid by Contractor as provided in Section 11 .07. Operating Agreement for Shoreway Center Page - 32 - 7/30/09 I ARTICLE 9 CONTRACTOR RECORDS/REPORTING 2 9.01 TONNAGE RECORDS 3 In addition to the financial records required under Article 8, Contractor shall compile 4 monthly tonnage summary records whose format and content have been approved by 5 the Authority. Reports shall be submitted to the Authority by the fifteenth(15th)day of 6 the immediately following month.The Authority may require more frequent reporting of 7 Tonnage. 8 9.02 CERCLA DEFENSE RECORDS 9 The Authority views the ability to defend against CERCLA and related litigation as a 10 matter of great importance. For this reason,the Authority regards the ability to prove 11 where Solid Waste Collected in the Authority Service Area was taken for Disposal, as 12 well as where it was not taken, to be matters of significant importance. Therefore, 13 Contractor shall maintain data retention and preservation systems that can establish 14 where Solid Waste was transferred and disposed of. 15 All records required under this Agreement shall be maintained for each year of the Term 16 and for three years beyond the expiration or earlier termination of the Agreement. At the 17 end of that period, Authority reserves the right to take physical possession of these 18 records. 19 9.03 PROVISION OF RECORDS TO THE AUTHORITY 20 In the event Contractor's services are terminated before expiration of the Term, 21 Contractor shall provide to the Authority all records required by this Agreement within 22 thirty(30)days of discontinuing service. Records shall be in chronological order, in an 23 organized form,and readily and easily interpreted. 24 9.04 REPORTS AND SCHEDULES 25 Records shall be maintained in forms and by methods that facilitate flexible use of data 26 contained in them to structure reports, as needed. Reports are intended to compile 27 recorded data into useful forms of information that can be used to,among other things: 28 A. determine and set rates and evaluate the financial efficiency of operations; 29 B. evaluate past and expected progress towards achieving goals and objectives of the 30 Act and the Authority; 31 C. determine needs for program adjustments;and, 32 D. evaluate customer service and complaints. 33 Either the Authority or Contractor may propose report formats that are responsive to the 34 objectives of and audiences for each report. The format of each report shall be 35 approved by the Authority. Contractor agrees to submit all reports on computer discs or 36 in electronic format compatible with the Authority's software and computers at no 37 additional charge, if requested by the Authority. Contractor will provide a certification 38 statement,under penalty of perjury,by the responsible Contractor official,that the report 39 being submitted is true and correct to the best knowledge of such official. 40 Quarterly Reports shall be submitted within thirty(30)calendar days after the end of the 41 calendar quarter.Annual reports shall be submitted within thirty(30)calendar days after Operating Agreement for Shoreway Center Page-33- 7/30/09 I the end of the calendar year. Failure to submit reports in the prescribed timeframe will 2 result in the assessment of liquidated damages as stated in Attachment 10. 3 Quarterly and Annual Reports will summarize all information, tonnage, events, activities 4 and changes in operations as required in Article 3. However, the reporting for all 5 tonnage will be on a monthly basis and data will be totaled and presented on a monthly 6 basis in the Reports. 7 All reports shall be submitted to: 8 South Bayside Waste Management Authority 9 610 Elm Street, Suite 202 10 San Carlos, CA 94070 11 Attention: Executive Director 12 9.05 QUARTERLY REPORT REQUIREMENTS 13 The information listed below and in Attachment 15 shall be the minimum reported for 14 each service. The report format will be developed jointly by Contractor and Authority 15 and include the following: 16 A. Weight and volume of all materials (by material type) entering the Shoreway Center 17 from Member Agencies; 18 B. Weight and volume of Solid Waste, Organic Materials, and Recyclable Materials (by 19 material type) entering the Shoreway Center by the hauler type (Collection 20 Contractor(s), commercial haulers, self haul, public, and other)(by type of vehicle); 21 C. Weight and volume of all Solid Waste, Organics Materials, Recyclable Materials (by 22 material type) leaving the Shoreway Center; 23 D. Weight and volume of all materials moving between the buildings and operations on 24 the Shoreway Center site (e.g. between the MRF building, Transfer Station building 25 and Buyback center) (by material type); 26 E. Mass balance accounting of all materials that enter and leave the Shoreway Center 27 so that all inbound tons equal outbound / shipped materials less inventory (by 28 material type); 29 1. The percentage of materials diverted by material type, category (Residential, 30 Commercial, Self haul) and operation (MRF, Transfer Station, Bunker Program, 31 Buyback/drop off center and other), and residual from MRF operations. 32 2. Location to which all Solid Waste, Organics Materials, and Recyclable Materials, 33 received by the Facilities was delivered for transfer, processing, sale, ultimate 34 use or disposal; 35 3. Recyclable Materials commodity sales value (by material type); 36 4. Changes to facilities, equipment and personnel used; 37 5. Changes to facilities and equipment operations, maintenance and repair; 38 6. Reporting incidence of accidents involving either employees or customers of the 39 facilities; 40 7. Documentation of hazardous spills and removals shipment, and ship manifesting; 41 8. Other information or reports that the Authority may reasonably request or require. Operating Agreement for Shoreway Center Page-34- 7/30/09 I F. Determination and Payment of Liquidated Damages. Contractor shall provide a 2 report that identifies any non-compliance with performance measures listed in 3 Attachment 10 (except for compliance with standards which shall be reported as part 4 of the Contractor's annual report) and include calculation of the Liquidated Damages 5 due. This report shall be accompanied by supporting documentation identifying 6 either compliance with or level of non-compliance with the performance measures. 7 The report submittal shall be accompanied by a check from the Contractor in the 8 amount of the Liquidated Damages due (per Contractor's calculation and self- 9 reporting) for the reporting period. 10 G. Programs. For each program, provide activity-related and narrative reports on goals, 11 milestones, and accomplishments. Contractor shall describe problems encountered, 12 actions taken and any recommendations to facilitate progress. 13 H. Summary Assessment. Contractor shall provide a summary assessment of the 14 overall materials handling systems from Contractor's perspective relative to financial 15 and physical status of the Shoreway Center. Contractor shall assess how well the 16 program is operating in terms of efficiency, economy and effectiveness relative to 17 meeting all the goals and objectives of this Agreement. Contractor shall provide 18 recommendations and plans to improve operations, which highlight significant 19 accomplishments and problems. Contractor shall document changes on a monthly 20 basis and include monthly documentation in the quarterly reporting. 21 I. Meet and Confer with Authority. Beginning on the Commencement Date, and on a 22 quarterly basis thereafter, Contractor shall meet with the Authority to describe the 23 services performed at the Shoreway Center and the progress of each active 24 Diversion Program. Contractor shall document the results of the programs on a 25 monthly basis, including the tonnage diverted by material type, the end use or 26 processor of the diverted materials and the cost per ton for transporting and 27 processing each type of material and other such information requested by the 28 Authority necessary to evaluate the performance of each program. 29 J. Addition and Changes to Programs. The Authority shall have the right to terminate a 30 program if in its sole discretion the Contractor is not cost effectively achieving the 31 program's goals and objectives. Prior to such termination, the Authority shall meet 32 and confer with Contractor for a period of up to 90 days to resolve the Authority's 33 concerns. Thereafter, the Authority may utilize a third party to perform these 34 services if the Authority reasonably believes the third party can improve on 35 Contractor's performance and/or cost. Notwithstanding these changes, Contractor 36 shall continue the program during the meet and confer period and, thereafter, until 37 the third party takes over the program. 38 9.06 ANNUAL REPORT REQUIREMENTS 39 The Annual Report shall be in the form of the Quarterly Reports and shall provide the 40 same type of information as required pursuant to Section 9.05 summarized for the 41 preceding four quarters. The Annual Report shall also include a complete inventory of 42 equipment used to provide all services, and a list of Contractor's personnel used to 43 operate the Shoreway Center. 44 9.07 INSPECTION OF RECORDS 45 The Authority, and its agents selected by the Authority, shall have the right, during 46 regular business hours, to conduct unannounced on-site inspections of the records and Operating Agreement for Shoreway Center Page-35- 7/30/09 1 accounting systems of Contractor and to make copies of any documents relevant to this 2 Agreement. 3 9.08 RETENTION OF RECORDS 4 Records and data required to be maintained that are specifically directed to be retained 5 shall be retrieved by Contractor and made available to the Authority upon request. 6 Records and data required to be maintained that are not specifically directed to be 7 retained that are, in the sole opinion of the Authority, material to the rate setting or to a 8 determination of Contractor's performance under this Agreement, shall be retrieved by 9 Contractor and made available to the Authority upon request. 10 Records and data required to be maintained that are not specifically directed to be 11 retained and that are not material to a rate setting and/or not required for the 12 determination of Contractor's performance do not need to be retrieved by Contractor. In 13 such a case, however, the Authority may make reasonable assumptions regarding what 14 information is contained in such records and data, and such assumption shall be 15 conclusive in whatever action the Authority takes. 16 9.09 ADVERSE INFORMATION 17 A. Reporting Adverse Information. Contractor shall provide the Authority two copies 18 (one to the Authority Executive Director, one to the Authority Legal Counsel) of all 19 reports, pleadings, applications, notifications, Notices of Violation, communications 20 or other material relating specifically to Contractor's performance of services 21 pursuant to this Agreement, submitted by Contractor to, or received by Contractor 22 from, the United States or California Environmental Protection Agency, the California 23 Integrated Waste Management Board, the Securities and Exchange Commission or 24 any other federal, state or local agencies, including any federal or state court. 25 Contractor shall also notify the Authority of any criminal charges for violation of any 26 federal or state environmental law or antitrust law or for fraud or similar matters 27 initiated hereafter against any management employee of Contractor or its affiliates 28 that have direct or indirect responsibility for administration of Contractor's 29 performance of services under this Agreement. Copies shall be submitted to the 30 Authority simultaneously with Contractor's filing or submission of such matters with 31 said agencies. Contractor's routine correspondence to said agencies need not be 32 routinely submitted to the Authority, but shall be made available to the Authority 33 promptly upon the Authority's written request. 34 B. Failure to Report. The refusal or failure of Contractor to file any required reports, or 35 to provide required information to the Authority, or the inclusion of any materially 36 false or misleading statement or representation by Contractor in such report shall be 37 deemed a breach of this Agreement, and shall subject Contractor to all remedies 38 available to the Authority, including Liquidated Damages as shown on Attachment 39 10. Operating Agreement for Shoreway Center Page - 36 - 7/30/09 I ARTICLE 10 INDEMNITY, INSURANCE, PERFORMANCE BOND, GUARANTY 2 10.01 INDEMNIFICATION 3 Contractor shall indemnify, defend and hold harmless Authority, its officers, employees 4 and agents, (collectively the "Indemnitees") from and against (1) any and all liability, 5 penalty, forfeiture, claim, demand, action, proceeding or suit, of any and every kind and 6 description, whether judicial, quasi-judicial or administrative in nature, (2) any and all 7 loss including but not limited to injury to and death of any person and damage to 8 property, and (3) claims for contribution or indemnity claimed by third parties 9 (collectively, the "Claims"), arising out of or occasioned in any way by, directly or 10 indirectly, Contractor's performance of, or its failure to perform, its obligations under this 11 Agreement. The foregoing indemnity shall not apply to the extent that the Claim is 12 caused solely by the negligence or intentional misconduct of Authority, its officers, 13 employees or agents, but shall apply if the Claim is caused by the joint negligence of 14 Contractor or other persons, including any of the Indemnitees. Upon the occurrence of 15 any Claim, Contractor, at Contractor's sole cost and expense, shall defend (with 16 attorneys reasonably acceptable to Authority) the Indemnitees. Contractor's duty to 17 indemnify and defend shall survive the expiration or earlier termination of this 18 Agreement. 19 10.02 INSURANCE 20 A. Types and Amounts of Coverage. Contractor shall procure from an insurance 21 company or companies licensed to do business in the State of California and shall 22 maintain in force at all times during the Term the following types and amounts of 23 insurance: 24 1. Workers' Compensation and Employer's Liability. Contractor shall maintain 25 workers' compensation insurance covering its employees in statutory amounts 26 and otherwise in compliance with the laws of the State of California. Contractor 27 shall maintain employer's liability insurance in an amount not less than One 28 Million Dollars ($1,000,000) per accident or disease. Contractor shall not be 29 obligated to carry workers compensation insurance if (i) it qualifies under 30 California law and continuously complies with all statutory obligations to self- 31 insure against such risks; (ii) furnishes a certificate of Permission to Self Insure 32 issued by the Department of Industrial Relations; and (iii) furnishes updated 33 certificates of Permission to Self Insure periodically to evidence continuous self 34 insurance, at least ten (10) days before the expiration of the previous certificate. 35 2. Comprehensive General Liability (and Automobile Liability). Contractor shall 36 maintain comprehensive general liability insurance with a combined single limit of 37 not less than Ten Million Dollars ($10,000,000) per occurrence and Twenty 38 Million Dollars ($10,000,000) annual aggregate covering all claims and all legal 39 liability for personal injury, bodily injury, death, and property damage, including 40 the loss of use thereof, arising out of, or occasioned in any way by, directly or 41 indirectly, Contractor's performance of, or its failure to perform, services under 42 this Agreement. 43 The insurance required by this subsection shall include: 44 . Premises Operations (including use of owned and non-owned equipment); Operating Agreement for Shoreway Center Page-37- 7/30/09 I • Products and Completed Operations(including protection against liability 2 resulting from use of Recyclable Materials by another person); 3 • Personal Injury Liability with employment exclusion deleted; 4 • Broad Form Blanket Contractual with no exclusions for bodily injury,personal 5 injury or property damage(including coverage for the indemnity obligations 6 contained herein); 7 • Owned,Non-Owned,and Hired Motor Vehicles; 8 • Broad Form Property Damage. 9 The comprehensive general liability insurance shall be written on an"occurrence" 10 basis(rather than a"claims made"basis)in a form at least as broad as the most 11 current version of the Insurance Service Office commercial general liability 12 occurrence policy form(CG0001). If occurrence coverage is not obtainable, 13 Contractor must arrange for"tail coverage"on a claims made policy to protect 14 Authority from claims filed within four years after the expiration or termination of 15 this Agreement relating to incidents that occurred prior to such expiration or 16 termination. Any excess or umbrella policies shall be on a"following form"basis. 17 3. Pollution Liability. Contractor shall maintain pollution liability insurance with limits 18 in an amount of not less than Ten Million Dollars($10,000,000)per occurrence 19 and annual aggregate covering claims for on-site, under-site, or off-site bodily 20 injury and property damage as a result of pollution conditions arising out of its 21 operations under this Agreement. 22 4. Hazardous Materials Storage and Transport. Contractor shall maintain insurance 23 coverage of not less than Ten Million Dollars($10,000,000)for personal injury, 24 bodily injury and property damage arising out of the sudden and accidental 25 release of any hazardous materials or wastes during storage at facilities operated 26 by Contractor or transport of such materials by vehicles owned, operated or 27 controlled by Contractor in the performance of the services required under this 28 Agreement. 29 5. Physical Damage. Contractor shall maintain comprehensive (fire, theft and 30 collision)physical damage insurance covering the vehicles and equipment used 31 in providing service to Authority under this Agreement,with a deductible or self- 32 insured retention not greater than One Hundred Thousand Dollars ($100,000). 33 Notwithstanding the foregoing, Contractor shall be allowed to self-insure for 34 physical damage to its vehicles provided Contractor provides adequate audited 35 financial information to Authority and Authority is reasonably satisfied that 36 Contractor has the financial net worth to cover any losses. 37 B. Acceptability of Insureds. The insurance policies required by this section shall be 38 issued by an insurance company or companies admitted to do business in the State 39 of California, subject to the jurisdiction of the California Insurance Commissioner, 40 and with a rating in the most recent edition of Best's Insurance Reports of size 41 category XV or larger and a rating classification of A+or better. 42 C. Required Endorsements. Without limiting the generality of Sections 10.02.A and B, 43 the policies shall contain endorsements in substantially the following form: Operating Agreement for Shoreway Center Page-38- 7/30/09 I Workers' Compensation and Employers' Liability Policy. 2 "Thirty (30) days prior written notice shall be given to the South 3 Bayside Waste Management Authority (SBWMA) in the event of 4 cancellation or non-renewal of this policy. Such notice shall be 5 sent to: 6 SBWMA 7 610 Elm Street, Suite 202 8 San Carlos, CA 94070 9 Attention: Executive Director 10 "Insurer waives all right of subrogation against SBWMA and its 11 officers and employees for injuries or illnesses arising from work 12 performed for SBWMA." 13 Comprehensive General Liability Policy; Environmental Liability Policy; Hazardous 14 Materials Policy. 15 "Thirty (30) days' prior written notice shall be given to the South Bayside 16 Waste Management Authority (SBWMA) in the event of cancellation, 17 reduction of coverage, or non-renewal of this policy. Such notice shall be 18 sent to: 19 SBWMA 20 610 Elm Street, Suite 202 21 San Carlos, CA 94070 22 Attention: Executive Director 23 • "South Bayside Waste Management Authority (SBWMA), its officers, 24 employees, and agents, are additional insureds on this policy." 25 • "This policy shall be considered primary insurance as respects any other valid 26 and collectible insurance maintained by the South Bayside Waste 27 Management Authority, including any self-insured retention or program of 28 self-insurance, and any other such insurance shall be considered excess 29 insurance only." 30 "Inclusion of the South Bayside Waste Management Authority as an insured 31 shall not affect the SBWMA's rights as respects any claim, demand, suit or 32 judgment brought or recovered against the Contractor. This policy shall 33 protect Contractor and the SBWMA in the same manner as though a 34 separate policy had been issued to each, but this shall not operate to 35 increase the company's liability as set forth in the policy beyond the amount 36 shown or to which the company would have been liable if only one party had 37 been named as an insured." 38 Physical Damage Policy. 39 • Notice of cancellation, reduction in coverage or non-renewal, as 40 provided in Subsection C.2(a). 41 • Cross liability endorsement, as provided in Subsection C.2(d). 42 • Waiver of subrogation against Authority. Operating Agreement for Shoreway Center Page - 39 - 7/30/09 I D. Delivery of Proof of Coverage. No later than ninety (90) days before the 2 commencement of operations(i.e., on or before October 1,2010),Contractor shall 3 furnish Authority one or more certificates of insurance on a standard ACORD form 4 substantiating that each of the coverages required hereunder are in force, in form 5 and substance satisfactory to Authority. Such certificates shall show the type and 6 amount of coverage,effective dates and dates of expiration of policies and shall be 7 accompanied by all required endorsements. If Authority requests, copies of each 8 policy,together with all endorsements,shall also be promptly delivered to Authority. 9 Contractor shall furnish renewal certificates to Authority to demonstrate maintenance 10 of the required coverages throughout the Term. 11 E. Other Insurance Requirements 12 1. In the event performance of any services is delegated to a subcontractor, 13 Contractor shall require such subcontractor to provide statutory workers' 14 compensation insurance and employer's liability insurance for all of the 15 subcontractor's employees engaged in the work. The liability insurance required 16 by Subsection 10.02.A.2 shall cover all subcontractors or the subcontractor must 17 furnish evidence of insurance provided by it meeting all of the requirements of 18 this Section 10.02. 19 2. Contractor shall comply with all requirements of the insurers issuing policies. 20 The carrying of insurance shall not relieve Contractor from any obligation under 21 this Agreement,including those imposed by Section 10.01. If any claim is made 22 by any third person against Contractor or any subcontractor on account of any 23 occurrence related to this Agreement,Contractor shall promptly report the facts 24 in writing to the insurance carrier and to the Authority. 25 3. If Contractor fails to procure and maintain any insurance required by this 26 Agreement,Authority may take out and maintain,at Contractor's expense,such 27 insurance as it may deem proper and deduct the cost thereof from any monies 28 due Contractor. Alternatively,the Authority may treat the failure as a Contractor 29 Default. 30 4. Authority is not responsible for payment of premiums for or deductibles (which 31 must be approved in writing and in advance by Authority) under any required 32 insurance coverages. 33 10.03 FAITHFUL PERFORMANCE BOND 34 On or before the Effective Date,Contractor shall deliver to Authority a bond securing the 35 Contractor's faithful performance of its obligations under this Agreement. The principal 36 sum of the bond shall be Two Million Dollars($2,000,000). The form of the bond shall 37 be as set out in Attachment 16. The bond shall be executed as surety by a corporation 38 admitted to issue surety bonds in the State of California, regulated by the California 39 Insurance Commissioner and with a financial condition and record of service satisfactory 40 to Authority. 41 The term of the bond shall be not less than twenty-four(24)months,or until November 42 1,2011,whichever occurs first. The bond shall be extended,or replaced by a new bond 43 in the same principal sum(adjusted by the percentage change in the Consumer Price 44 Index All Urban Wage Earners and Clerical Workers for the San Francisco-Oakland-San 45 Jose Metropolitan Area between July 2009 and July 2011), for the same term (i.e., 46 twenty-four(24) months) and in the same form, bi-annually thereafter. Not less than Operating Agreement for Shoreway Center Page-40- 7/30/09 I ninety (90) days before the expiration of the initial bond, the Contractor shall furnish 2 either a replacement bond or a continuation certificate substantially in the form attached 3 as Attachment 16, executed by the surety. 4 It is the intention of this Section that there be in full force and effect at all times a bond 5 securing the Contractor's faithful performance of the Agreement, throughout its Term. 6 10.04 ALTERNATIVE SECURITY 7 Authority may, in its sole discretion, allow Contractor to provide alternative security in the 8 amount set forth in Section 10.03, in the form of (a) a prepaid irrevocable standby letter 9 of credit in form and substance satisfactory to Authority and approved as to form by the 10 Authority's Legal Counsel and issued by a financial institution acceptable to Authority, or 11 (b) a certificate of deposit in the name of the Authority with a term satisfactory to 12 Authority, with a financial institution acceptable to Authority, and approved as to form by 13 Authority's Legal Counsel. 14 10.05 HAZARDOUS WASTE INDEMNIFICATION 15 Contractor shall indemnify, defend with Counsel approved by the Authority, protect and 16 hold harmless the Indemnitees against all claims, of any kind whatsoever paid, incurred 17 or suffered by, or asserted against Indemnitees arising from or attributable to any repair, 18 cleanup or detoxification, or preparation and implementation of any removal, remedial, 19 response, closure or other plan (regardless of whether undertaken due to governmental 20 action) concerning any Hazardous Wastes at any place where Contractor stores or 21 disposes of Hazardous Wastes pursuant to this Agreement. The foregoing indemnity is 22 intended to operate as an agreement pursuant to Section 107(e) of the Comprehensive 23 Environmental Response, Compensation and Liability Act, ("CERCLA"), 42 U.S.C. 24 Section 9607(e), and California Health and Safety Code Section 25364, to defend, 25 protect, hold harmless and indemnify Indemnitees from liability. 26 10.06 INTEGRATED WASTE MANAGEMENT ACT INDEMNIFICATION 27 Contractor agrees to indemnify and hold harmless the Indemnitees against all fines 28 and/or penalties imposed by the California Integrated Waste Management Board 29 (CIWMB) or the Local Enforcement Agency (LEA) (a) based on Contractor's failure to 30 comply with laws, regulations or permits issued or enforced by the CIWMB or the LEA; 31 (b) caused or contributed to by the Contractor's failure to perform obligations under this 32 Agreement. This indemnity obligation is subject to the limitations and conditions in 33 Public Resource Code Section 40059.1 but is enforceable to the maximum extent 34 allowable by that Section. 35 10.07 GUARANTY 36 Concurrently with the execution of this Agreement, Contractor shall deliver to Authority a 37 Guaranty in the form attached as Attachment 17, properly executed by its Members: 38 Community Recycling and Resource Recovery, Inc. and Potential Industries, Inc. Operating Agreement for Shoreway Center Page - 41 - 7/30/09 I ARTICLE 11 DEFAULT AND REMEDIES 2 11.01 EVENTS OF DEFAULT 3 Each of the following shall constitute an event of default("Contractor Default"): 4 A. Contractor fails to perform any of its obligations under Sections 4.03 and 4.04 of 5 Article 4 or Articles 5 and 6 of this Agreement and its failure to perform is not cured 6 within ten (10) days after written notice from the Authority, provided that neither 7 notice nor opportunity to cure applies to events described in subsections C through 8 H. 9 B. Contractor fails to perform any of its obligations under any other provision of this 10 Agreement and its failure to perform is not cured within fifteen(15)days after written 11 notice from the Authority,provided that if the nature of the breach is such that it will 12 reasonably require more than fifteen (15) days to cure, Contractor shall not be in 13 default so long as it promptly commences the cure and diligently proceeds to 14 completion of the cure, and provided further that neither notice nor opportunity to 15 cure applies to events described in subsections C through H. 16 C. Contractor ceases to provide Shoreway Center operations or Solid 17 Waste/Recyclable Materials transportation services for a period of two (2) 18 consecutive business days for any reason within the Contractor's control, including 19 labor unrest such as strike,work stoppage or slowdown,sickout,picketing,or other 20 concerted job action by Contractor's employees or others. 21 D. Contractor files a voluntary petition for relief under any bankruptcy, insolvency or 22 similar law. 23 E. An involuntary petition is brought against Contractor under any bankruptcy, 24 insolvency or similar law which remains undismissed or unstayed for ninety (90) 25 days. 26 F. Contractor fails to furnish a replacement bond or a continuation certificate of the 27 existing bond not less than ninety (90) days before expiration of the performance 28 bond, as required by Section 10.03 or fails to maintain all required insurance 29 coverages in force. 30 G. Contractor fails to provide reasonable assurance of performance when requested by 31 the Authority under this Agreement. 32 H. A representation or warranty contained in Article 3 proves to be false or misleading in 33 a material respect as of the date such representation or warranty was made. 34 I. Contractor makes any other material misrepresentation to the Authority in 35 discharging any of its obligations under this Agreement. 36 11.02 RIGHT TO SUSPEND OR TERMINATE UPON DEFAULT 37 A. Upon any Contractor Default, the Authority may terminate this Agreement or 38 suspend it, in whole or in part. Such suspension or termination shall be effective 39 thirty(30)days after the Authority has given notice of suspension or termination to 40 Contractor,except that such notice may be effective in a shorter period of time,or 41 immediately,if the Contractor Default is one which endangers the health,welfare or 42 safety of the public, such as the failure to process Solid Waste or Recyclable 43 Materials and arrange for their prompt disposal or recovery. Notice may be given Operating Agreement for Shoreway Center Page-42- 7/30109 1 orally in person or by telephone to the representative of Contractor designated in or 2 under Section 12.10 (or, if he/she is unavailable, to a responsible employee of 3 Contractor) and shall be effective immediately. Written confirmation of such oral 4 notice of suspension or termination shall be sent by personal delivery, facsimile, or 5 other expedited means of delivery to Contractor within twenty-four (24) hours of the 6 oral notification at the address shown in Section 12.09. Contractor shall continue to 7 perform the portions of the Agreement, if any, not suspended, in full conformity with 8 its terms. 9 B. The Authority may also suspend or terminate this Agreement, upon the same notice 10 provisions, if Contractor's ability to perform is prevented or materially interfered with 11 by a cause which excuses nonperformance under Section 11.09, despite the fact 12 that nonperformance in such a case is neither a breach nor a Contractor Default. 13 11.03 SPECIFIC PERFORMANCE 14 By virtue of the nature of this Agreement, the urgency of timely, continuous and high- 15 quality service and the lead time required to effect alternative service, the remedy of 16 damages for a breach hereof by Contractor is inadequate and Authority shall be entitled, 17 without limitation on any other remedy or right, to injunctive relief and specific 18 performance of Contractor's obligations under this Agreement. 19 11.04 RIGHT TO PERFORM; USE OF CONTRACTOR PROPERTY 20 If this Agreement is suspended and/or terminated due to a Contractor Default, the 21 Authority shall have the right to perform, by contract or otherwise, the work herein or 22 such part thereof as it may deem necessary. In the event of Contractor's Default, 23 Authority shall have the right to use any of Contractor's equipment, facilities and other 24 property reasonably necessary for the provision of services hereunder and for the billing 25 and collection of fees for those services and of revenues from the sale of Recyclable 26 Materials. Authority shall have the right to continue use of such property until other 27 suitable arrangements can be made for the provision of such services, which may 28 include the award of a contract to another service provider. 29 11.05 DAMAGES 30 Contractor shall be liable to Authority for all direct, indirect, special and consequential 31 damages arising out of Contractor's Default. This section is intended to be declarative of 32 existing California law. 33 11.06 AUTHORITY'S REMEDIES CUMULATIVE 34 Authority's rights to suspend or terminate the Agreement under Section 11.02, to obtain 35 specific performance under Section 11.03, and to perform and use property under 36 Section 11.04 are not exclusive, and shall not be construed as a limitation on any of the 37 Authority's other rights or remedies, and the Authority's exercise of one such right shall 38 not constitute an election of remedies. Instead, they shall be in addition to any and all 39 other legal and equitable rights and remedies that the Authority may have, including a 40 legal action for damages under Section 11.05 or imposition of liquidated damages under 41 Section 11.07. 42 11.07 LIQUIDATED DAMAGES 43 The Parties acknowledge that efficient, consistent, and courteous operations of the 44 Shoreway Center is of utmost importance and the Authority has considered and relied 45 on Contractor's representations as to its quality of service commitment in entering into Operating Agreement for Shoreway Center Page-43- 7/30/09 1 this Agreement. The Parties further recognize that quantified standards of performance 2 are necessary and appropriate to ensure consistent and reliable service. The Parties further recognize that if Contractor fails to achieve the performance standards identified 4 in Attachment 10, the Authority will suffer damages and that it is and will be 5 impracticable and extremely difficult to ascertain and determine the exact amount of 6 damages that the Authority will suffer. Therefore, the Parties agree that the liquidated 7 damage amounts listed on Attachment 10 represent a reasonable estimate of the 8 amount of such damages considering all of the circumstances existing on the date of this 9 Agreement, including the relationship of the sums to the range of harm to the Authority 10 that reasonably could be anticipated and anticipation that proof of actual damages would I l be costly or inconvenient. In placing their initials at the places provided, each party 12 specifically confirms the accuracy of the statements made above and the fact that each 13 party had ample opportunity to consult with legal counsel and obtain an explanation of 14 this liquidated damage provislio5 at the ime that this Agreement was made. 15 Contractor Initial Here: '� Authority Initial Here C_r 8 16 Contractor agrees to pay (as liquidated damages and not as a penalty) the amount set 17 forth on Attachment 10. 18 The Authority may determine the occurrence of events giving rise to liquidated damages 19 based upon any or all of the following: Contractor's reporting pursuant to Article 9 of this 20 Agreement; the observation of the Authority's or Contractor's employees, agents or 21 representatives; and/or through investigation and/or reports by any third party or parties. 22 The Authority may assess liquidated damages for each calendar day or event, as 23 appropriate, that Contractor is determined to be liable in accordance with this 24 Agreement. 25 Contractor shall pay any liquidated damages assessed by the Authority within ten (10) 26 days after they are assessed. 27 The Authority's right to recover liquidated damages for Contractor's failure to meet the 28 service performance standards shall not preclude Authority from obtaining equitable 29 relief for persistent failures to meet such standards nor from terminating the Agreement 30 for such persistent failures. 31 Notwithstanding any other provision of this Agreement, if this Paragraph 11 .07, 32 Attachment 10, or any provision or requirement contained in either, is set aside or 33 invalidated by a court for any reason, the provision and/or requirement that is set aside 34 or invalidated shall be severed from the rest of this Agreement, and the Authority shall 35 reserve and be entitled to any and all other rights and remedies available under this 36 Agreement, law and equity. 37 11 .08 AUTHORITY DEFAULT 38 The Authority shall be in default under this Agreement ("Authority Default") in the event 39 the Authority commits a material breach of the Agreement and fails to cure such breach 40 within thirty (30) days after receiving notice from the Contractor specifying the breach, I. 41 provided that if the nature of the breach is such that it will reasonably require more than 42 thirty (30) days to cure, the Authority shall not be in default so long as the Authority 43 promptly commences the cure and diligently proceeds to completion of the cure. 44 In the event of an asserted Authority Default, Contractor shall continue to perform all of 45 its obligations hereunder until a court of competent jurisdiction has issued a final 46 judgment declaring that the Authority is in default. Operating Agreement for Shoreway center Page - 44 - 7/30/09 1 11.09 EXCUSE FROM PERFORMANCE 2 A. Force Majeure. Neither party shall be in default of its obligations under this 3 Agreement in the event, and for so long as, it is impossible or extremely 4 impracticable for it to perform its obligations due to an"act of God"(including, but 5 not limited to,flood,earthquake or other catastrophic events that have taken place 6 at or in close proximity to the Shoreway Center),war,insurrection,riot,labor unrest 7 of other than the party's employees(including strike,work stoppage,slowdown,sick 8 out,picketing,or other concerted job action),or other similar cause not the fault of, 9 and beyond the reasonable control of,the parry claiming excuse. A party claiming 10 excuse under this Section must(1)have taken reasonable precautions,if possible, 11 to avoid being affected by the cause, and (2) notify the other party in writing as 12 provided in Subsection C. This Section 11.09 A shall not apply to, nor shall it 13 excuse any failure to satisfy or perform an obligation arising from,any"act of God," 14 catastrophic event,war,insurrection,riot,labor unrest or similar cause that does not 15 directly and immediately impact or affect Contractor's operations at the Shoreway 16 Center. Indirect impacts and effects from such events and/or causes at remote 17 locations and times are not intended to be included as"acts of God"or an event of 18 Force Majeure under this Section 11.09. 19 B. Obligation to Restore Ability to Perform. Any suspension of performance by a party 20 pursuant to this Section shall be only to the extent, and for a period of no longer 21 duration than, required by the nature of the event, and the party claiming excuse 22 shall use its best efforts to remedy its inability to perform as quickly as possible and 23 to mitigate damages that may occur as result of the event. 24 C. Notice. The party claiming excuse shall deliver to the other party a written notice of 25 intent to claim excuse from performance under this Agreement by reason of an 26 event of Force Majeure. Notice required by this Section shall be given promptly in 27 light of the circumstances, but in any event not later than five (5) days after the 28 occurrence of the event of Force Majeure. Such notice shall describe in detail the 29 event of Force Majeure claimed, the services impacted by the claimed event of 30 Force Majeure,the expected length of time that the party expects to be prevented 31 from performing, the steps which the party intends to take to restore its ability to 32 perform,and such other information as the other party reasonably requests. 33 D. Authority's Rights in the Event of Force Majeure. The partial or complete 34 interruption or discontinuance of Contractor's services caused by an event of Force 35 Majeure shall not constitute a Contractor Default. Notwithstanding the foregoing: (i) 36 the Authority shall have the right to make use of Contractor's facilities and 37 equipment in the event of non-performance excused by Force Majeure; (ii) if 38 Contractor's failure to perform by reason of Force Majeure continues for a period of 39 thirty(30)days or more,the Authority shall have the right to immediately terminate 40 this Agreement;(iii)if Contractor is unable to process and dispose of Solid Waste or 41 arrange for recovery of Recyclable Materials as required by this Agreement for a 42 period of two (2)or more consecutive days or for any three (3)days in a seven 43 (7)-day period as a result of Force Majeure, the Authority shall have the right to 44 make use of Contractor's property,and(iv) if Contractor's inability to process and 45 dispose of Solid Waste or arrange for recovery of Recyclable Materials continues 46 for ten (10)days or more from the date by which Contractor gave or should have 47 given notice under Subsection C,the Authority may terminate this Agreement. Operating Agreement for Shoreway Center Page-45- 7/30/09 1 11 .10 ASSURANCE OF PERFORMANCE 2 If the Authority in its reasonable judgment determines that Contractor (1 ) has repeatedly 3 incurred liquidated damages under Section 11 .07; (2) is the subject of any labor unrest 4 including work stoppage or slowdown, sickout, picketing or other concerted job action; 5 (3) appears to be unable to regularly pay its bills as they become due; (4) is the subject 6 of a civil or criminal proceeding brought by a federal, state, regional or local agency for 7 violation of laws, regulations or permits in the performance of this Agreement, or (5) 8 performs in a manner that causes uncertainty about Contractor's ability and intention to 9 comply with this Agreement, the Authority may, at its option and in addition to all other 10 rights and remedies it may have, demand from Contractor reasonable assurances of 11 timely and proper performance of this Agreement, in such form and substance as the 12 Authority may require. Operating Agreement for Shoreway Center Page - 46 - 7/30/09 I ARTICLE 12 OTHER AGREEMENTS OF THE PARTIES 2 12.01 RELATIONSHIP OF PARTIES 3 The parties intend that Contractor shall perform the services required by this Agreement 4 as an independent contractor engaged by Authority and not as an officer or employee of 5 the Authority nor as a partner of or joint venturer with the Authority. No employee or 6 agent of Contractor shall be deemed to be an employee or agent of Authority. Except as 7 expressly provided herein,Contractor shall have the exclusive control over the manner 8 and means of conducting the services performed under this Agreement, and over all 9 persons performing such services. Contractor shall be solely responsible for the acts 10 and omissions of its officers,employees,subcontractors and agents. Neither Contractor 11 nor its officers, employees, subcontractors and agents shall obtain any rights to 12 retirement benefits,workers'compensation benefits,or any other benefits which accrue 13 to Authority employees by virtue of their employment with Authority. 14 12.02 COMPLIANCE WITH LAW 15 In providing the services required under this Agreement, Contractor shall at all times 16 comply with all applicable laws of the United States,the State,the City of San Carlos 17 and with all applicable regulations promulgated by federal, state, regional or local 18 administrative and regulatory agencies now in force and as they may be enacted,issued 19 or amended during the Term,and with all permits affecting the services to be provided. 20 12.03 ASSIGNMENT 21 Contractor acknowledges that this Agreement involves rendering a vital service to 22 Authority's residents and businesses, and that Authority has selected Contractor to 23 perform the services specified herein based on(i)the experience,skill and reputation of 24 Contractor's Members for conducting their operations in a safe,effective and responsible 25 fashion,and(ii)the financial resources of Contractor's Members to maintain the required 26 equipment and to support Contractor's indemnity obligations to Authority under this 27 Agreement. Authority has relied on each of these factors,among others, in choosing 28 Contractor to perform the services to be provided by Contractor under this Agreement. 29 A. Authority Consent Required. Contractor shall not assign its rights or delegate or 30 otherwise transfer its obligations under this Agreement to any other Person without 31 the prior written consent of Authority. Any such assignment made without the 32 consent of Authority shall be void and the attempted assignment shall constitute a 33 Contractor Default. 34 B. Assignment Defined. For the purpose of this Section,"assignment"shall include,but 35 not be limited to,(i)a sale,exchange or other transfer to a third party of substantially 36 all of Contractor's assets dedicated to service under this Agreement; (ii) a sale, 37 exchange or other transfer of a membership interest in Contractor to a person who is 38 not a Member as of the Effective Date which results in a change in control of 39 Contractor; (iii) any dissolution, reorganization, consolidation, merger, re- 40 capitalization,stock issuance or reissuance,voting trust,pooling agreement,escrow 41 arrangement,liquidation or other transaction which results in a change of ownership 42 or control of Contractor;(iv)any assignment by operation of law,including insolvency 43 or bankruptcy,an assignment for the benefit of creditors,a writ of attachment for an 44 execution being levied against this Agreement, appointment of a receiver taking 45 possession of Contractor's property,or transfer occurring in the event of a probate 46 proceeding; and (v)any combination of the foregoing(whether or not in related or Operating Agreement for Shoreway Center Page-47- 7/30/09 I contemporaneous transactions) which has the effect of any such transfer or change 2 of ownership, or change of control of Contractor. The term "assignment" also 3 includes (1) any change in the identity of the members of the Contractor, (2) the sale 4 or other transfer of substantially all of the assets of any member of the Contractor 5 (including in the context of a bankruptcy or other insolvency proceeding or an 6 assignment for the benefit of creditors), and (3) any event that results in a change of 7 voting power, as defined in California Corporations Code, with respect to the persons 8 who exercise such voting power in a member of Contractor on the date of this 9 Agreement, other than a transfer to members of such person's immediate family. 10 C. Consent Requirements. If Contractor requests Authority's consideration of and 11 consent to an assignment, Authority may deny or approve such request in its 12 complete discretion. No request by Contractor for consent to an assignment need be 13 considered by Authority unless and until Contractor has met the following 14 requirements: 15 1) Contractor shall pay Authority its reasonable expenses for attorneys' fees 16 and investigation costs necessary to investigate the suitability of any 17 proposed assignee, and to review and finalize any documentation 18 required as a condition for approving any such assignment; 19 2) Contractor shall furnish Authority with audited financial statements of the 20 proposed assignee's operations for the immediately preceding three (3) 21 operating years; 22 3) Contractor shall furnish Authority with satisfactory proof: (i) that the 23 proposed assignee has at least ten (10) years of solid waste/recycling 24 management experience on a scale equal to or exceeding the scale of 25 operations conducted by Contractor under this Agreement; (ii) that in the 26 last five (5) years, the proposed assignee has not been the subject of any 27 administrative or judicial proceedings initiated by a federal, state or local 28 agency having jurisdiction over its operations due to an alleged failure to 29 comply with federal, state or local laws or that the proposed assignee has 30 provided Authority with a complete list of such proceedings and their 31 status; (iii) that the proposed assignee conducts its operations in a safe 32 and environmentally conscientious manner, in accordance with sound 33 waste management practices in full compliance with all federal, state and 34 local laws regulating the handling and transfer of waste and recyclable 35 materials and all Environmental Laws; (iv) of any other information 36 required by Authority to ensure the proposed assignee can fulfill the terms 37 of this Agreement in a timely, safe and effective manner. 38 D. No Obligation to Consider. Authority will not be obligated to consider a 39 proposed assignment if Contractor is in default. 40 12.04 SUBCONTRACTING 41 Contractor shall not engage any subcontractors to perform any of the services required 42 of it by Articles 5 or 6 of this Agreement without the prior written consent of Authority. 43 Contractor shall notify Authority no later than ninety (90) days prior to the date on which 44 it proposes to enter into a subcontract. Authority may approve or deny any such request 45 in its sole discretion. Operating Agreement for Shoreway Center Page-48- 7/30/09 1 12.05 AFFILIATED ENTITY 2 Contractor will not form or use any Affiliate to perform any of the services or activities 3 which Contractor is required or allowed to perform under this Agreement, other than as a 4 subcontractor approved by Authority under Section 12.04. 5 If Contractor enters into any financial transactions with an Affiliate for the provision of 6 labor, equipment, supplies, services, or capital related to the furnishing of service under 7 this Agreement, or for the purchase of Recyclable Materials, that relationship shall be 8 disclosed to Authority, and in the financial reports submitted to Authority. In such event, 9 Authority's rights to inspect records and obtain financial data shall extend to such 10 Affiliate. 11 12.06 CONTRACTOR'S INVESTIGATION 12 Contractor has made an independent investigation, satisfactory to it, of the conditions 13 and circumstances surrounding the Agreement and the work to be performed by it. 14 Contractor has carefully reviewed the information in the Request for Proposals, and 15 Addenda if any. Contractor has had the opportunity to inspect the Shoreway Center to 16 review the permits governing its operation and the Authority's plans for its expansion and 17 reconstruction. Contractor has had the opportunity to inspect the Designated Disposal 18 Site, as well as the processing facilities which currently process materials from the 19 Shoreway Center, and the contracts between the Authority and the owners/operators of 20 each. Contractor has also had the opportunity to review audited financial statements of 21 the current operator of the Shoreway Center. Contractor has taken such matters into 22 consideration in agreeing to provide the services required by, for the compensation to be 23 provided under, this Agreement. 24 12.07 NO WARRANTY BY AUTHORITY 25 While Authority believes that the information contained in the Request for Proposals is 26 substantially correct, Authority makes no warranties in connection with this Agreement, 27 including but not limited to the accuracy or completeness of the information contained in 28 the Request for Proposals. The Authority expressly disclaims any warranties, express or 29 implied, as to the merchantability or fitness for any particular purpose of Recyclable 30 Materials delivered to the Shoreway Center. 31 12.08 CONDEMNATION 32 Authority reserves the rights to acquire the Contractor's property utilized in the 33 performance of this Agreement through the exercise of eminent domain. 34 12.09 NOTICE 35 All notices, demands, requests, proposals, approvals, consents and other 36 communications which this Agreement requires, authorizes or contemplates shall, 37 except as provided in Section 11 .02, be in writing and shall either be personally 38 delivered to a representative of the parties at the address below or be deposited in the 39 United States mail, first class postage prepaid, addressed as follows: 40 If to Authority: South Bayside Waste Management Authority 41 610 Elm Street, Suite 202 42 San Carlos, CA 94070 43 Attention: Executive Director Operating Agreement for Shoreway Center Page - 49 - 7/30/09 I 2 If to Contractor: SOUTH BAY RECYCLING,LLC 3 9189 DeGarmo Avenue 4 Sun Valley,CA 91352 5 Attention:John Richardson 6 The address to which communications may be delivered may be changed from time to 7 time by a notice given in accordance with this Section. 8 Routine, day-to-day communications between the parties may be exchanged in a 9 manner and between subordinate employees as the designated representatives of each 10 party identified in Section 12.10 may agree. 11 12.10 REPRESENTATIVES OF THE PARTIES 12 A.Representatives of Authority. References in this Agreement to"Authority"shall mean 13 the Authority Board of Directors and all actions to be taken by Authority shall be 14 taken by the Authority Board of Directors except as provided below. The Authority 15 Board of Directors may by formal action taken at an open meeting of the Board of 16 Directors delegate authority to the Executive Director and may permit the Executive 17 Director, in turn,to delegate in writing some or all of such authority to subordinate 18 officers. Contractor may rely upon actions taken by such delegates if they are within 19 the scope of the authority properly delegated to them. 20 B. Representative of Contractor. Contractor shall, by the Effective Date, designate in 21 writing a responsible officer who shall serve as the representative of Contractor in all 22 matters related to the Agreement and shall inform Authority in writing of such 23 designation and of any limitations upon his or her authority to bind Contractor. 24 Authority may rely upon action taken by such designated representative as actions of 25 Contractor unless they are outside the scope of the authority delegated to him/her by 26 Contractor as communicated in writing to Authority. 27 12.11 DUTY OF CONTRACTOR NOT TO DISCRIMINATE 28 In the performance of this Agreement Contractor shall not discriminate, nor permit any 29 subcontractor to discriminate,against any employee,applicant for employment,or user 30 of the Shoreway Center on account of race,color,national origin,ancestry,religion,sex, 31 age, physical disability, medical condition, sexual orientation, marital status, or other 32 characteristic,in violation of any applicable federal or state law. 33 12.12 RIGHT TO INSPECT CONTRACTOR OPERATIONS 34 Authority shall have the right, but not the obligation,to observe and inspect all of the 35 Contractor's operations under this Agreement. In connection therewith,Authority shall 36 have the right to enter facilities used by Contractor during operating hours(and to enter 37 the Shoreway Center at any time),speak to any of Contractor's employees and receive 38 cooperation from such employees in response to inquiries. In addition,upon reasonable 39 notice and without interference with Contractor's operations,Authority may review and 40 copy any of Contractor's operational and business records related to this Agreement. If 41 Authority so requests, Contractor shall make specified personnel available to Operating Agreement for Shoreway Center Page-50- 7/30/09 I accompany Authority employees on inspections and shall provide electronic copies of 2 records stored in electronic media. 3 12.13 RIGHT OF AUTHORITY TO MAKE CHANGES 4 Authority may, without amending this Agreement, direct Contractor to cease performing 5 one or more types of service described in Articles 4, 5, or 6, may direct Contractor to 6 modify the scope of one or more such services, may direct Contractor to perform 7 additional solid waste handling services, or may otherwise direct Contractor to modify its 8 performance under any other Section of this Agreement. Contractor shall promptly and 9 cooperatively comply with such direction. 10 If such changes cause an increase or decrease in the cost of performing the services, or 11 an increase or decrease in the amount of Revenue earned from the sale or other 12 transfer of materials delivered to the Shoreway Center, an equitable adjustment in the 13 Contractor's compensation shall be made pursuant to Section 7.11. Contractor will 14 continue to perform the new or changed service while the appropriate adjustment in 15 compensation is being determined. 16 12.14 TRANSITION TO NEXT SERVICE PROVIDER 17 At the expiration of the Term or the earlier termination of the Agreement, or upon 18 Authority's approval of a proposed assignment, Contractor shall cooperate fully with 19 Authority to ensure an orderly transition to any and all new service providers. Contractor 20 shall provide, within ten (10) days of a written request by Authority, then-current 21 accounting records and billing information. Contractor may, but is not required to, sell 22 operations rolling stock, vehicles and equipment to the next service provider. 23 Contractor shall, at least 180 days prior to the transition of services, attend meetings 24 with the next service provider and with Authority and Authority staff and consultants to 25 plan for the transition to the new Contractor. Contractor shall perform in accordance with 26 such plan and direct personnel to provide operations and transition assistance. 27 Contractor will direct its employees to provide accurate information to the new provider 28 about operations, customers and vendors of the facility. 29 12.15 REPORTS AS PUBLIC RECORDS 30 The reports, records and other information submitted or required to be submitted by 31 Contractor to Authority are public records within the meaning of that term in the 32 California Public Records Act, Government Code Section 6250 at seq. Unless a 33 particular record is exempted from disclosure by the California Public Records Act, it 34 must be disclosed to the public by Authority upon request. 35 Contractor will not object to Authority making available to the public any information 36 submitted by the Contractor, or required to be submitted in connection with the 37 Contractor's compensation, including but not limited to records described in Article 9. 38 12.16 DESTRUCTION OF PREMISES 39 If the facilities at the Shoreway Center are destroyed or damaged (by fire, earthquake or 40 other similar event) so that operations as contemplated in this Agreement are impossible 41 or commercially infeasible, Authority has the right, but no obligation, to repair or rebuild 42 the facilities. 43 Authority will notify Contractor promptly (no later than 120 days after destruction or 44 damage occurs) whether or not it will repair and rebuild the facilities. Operating Agreement for Shoreway Center Page-51 - 7/30/09 I If Authority elects not to repair and rebuild, this Agreement shall terminate 30 days after 2 Authority notifies Contractor of that decision. 3 If Authority elects to repair and rebuild, then until reconstruction is sufficiently completed 4 for Contractor to resume operations, the obligations of Contractor to perform and the 5 obligations of Authority to pay compensation will both be abated or modified in a 6 commercially reasonably and equitable manner reflecting, for example, the ability of 7 Contractor to resume partial operations, and the compensation appropriately due for 8 doing so. Operating Agreement for Shoreway Center Page - 52 - 7/30/09 I ARTICLE 13 MISCELLANEOUS AGREEMENTS 2 13.01 GOVERNING LAW 3 This Agreement shall be governed by,and construed and enforced in accordance with, 4 the laws of the State of California. 5 13.02 JURISDICTION 6 Any lawsuits between the parties arising out of this Agreement shall be brought and 7 concluded in the courts of the State of California,which shall have exclusive jurisdiction 8 over such lawsuits. With respect to venue, the parties agree that this Agreement is 9 made in and will be performed in San Mateo County. 10 13.03 BINDING ON SUCCESSORS 11 The provisions of this Agreement shall inure to the benefit of and be binding on the 12 successors and permitted assigns of the parties. 13 13.04 PARTIES IN INTEREST 14 Nothing in this Agreement is intended to confer any rights on any Persons other than the 15 parties to it and their successors and permitted assigns. 16 13.05 WAIVER 17 The waiver by either party of any breach or violation of any provisions of this Agreement 18 shall not be deemed to be a waiver of any breach or violation of any other provision nor 19 of any subsequent breach or violation of the same or any other provision. 20 13.06 ATTACHMENTS 21 Each of the Attachments,identified as Attachments"1"through"19,"is attached hereto 22 and incorporated herein and made a part hereof by this reference. 23 13.07 ENTIRE AGREEMENT 24 This Agreement, including the Attachments, represents the full and entire agreement 25 between the parties with respect to the matters covered herein and supersedes all prior 26 negotiations and agreements,either written or oral. 27 13.08 SECTION HEADINGS 28 The article headings and section headings in this Agreement are for convenience of 29 reference only and are not intended to be used in the construction of this Agreement nor 30 to alter or affect any of its provisions. 31 13.09 INTERPRETATION 32 Each party has participated in the preparation of this Agreement with the assistance of 33 legal counsel to the extent desired. Accordingly,this Agreement shall be interpreted and 34 construed reasonably and neither for nor against either party 35 13.10 AMENDMENT 36 This Agreement may not be modified or amended in any respect except by a writing 37 signed by the parties. Operating Agreement for Shoreway Center Page-53- 7/30/09 1 13.11 SEVERABILITY 2 If a court of competent jurisdiction holds any non-material provision of this Agreement to 3 be invalid and unenforceable, the invalidity or unenforceability of such provision shall not 4 affect any of the remaining provisions of this Agreement which shall be enforced as if 5 such invalid or unenforceable provision had not been contained herein. 6 13.12 COSTS AND ATTORNEYS' FEES 7 The prevailing party in any action brought to enforce the terms of this Agreement or 8 arising out of this Agreement may recover its reasonable costs expended in connection 9 with such an action from the other party. However, each party shall bear its own 10 attorneys' fees. 11 13.13 INDEMNITY AGAINST CHALLENGES TO AGREEMENT 12 Contractor shall indemnify, defend and hold harmless Authority, and its officers, 13 employees and agents (collectively, the "Indemnitees") from and against any and all 14 liability, claim, demand, action, proceeding or suit of any and every kind and description 15 brought by a third person challenging the process by which Proposals were solicited and 16 evaluated, or this Agreement was negotiated or awarded. Contractor's financial 17 obligation under this section is limited to the expenditure of fifty thousand dollars 18 ($50,000). 19 13.14 NO DAMAGES FOR INVALIDATION OF AGREEMENT 20 If a final judgment of a court of competent jurisdiction determines that this Agreement is 21 illegal or was unlawfully entered into by Authority, neither party shall have any claim 22 against the other for damages of any kind (including but not limited to loss of profits) on 23 any theory. 24 13.15 REFERENCES TO LAWS 25 All references in this Agreement to laws and regulations shall be understood to include 26 such laws and regulations as they may be subsequently amended or recodified, unless 27 otherwise specifically provided. In addition, references to specific governmental 28 agencies shall be understood to include agencies that succeed to or assume the 29 functions they are currently performing. Operating Agreement for Shoreway Center Page - 54 - 7/30/09 IN WITNESS WHEREOF, Authority and Contractor have executed this Agreement as of the day and year first above written by their duly authorized officers. SOUTH BAY RECYCLING, LLC SOUTH BAYSIDE WASTE MANAGEMENT ("Contractor') AUTHORITY By Its Board of Managers Name: )`l By: .. (Appointed By Community Recycling and Chair, Board of Directors — Resource Recovery, Inc.) ATTEST: : Name i (Appointe By Potential Industries, Inc.) Secretary APPRO r Executive Director i APP OV AS TO FORM gal Counsel I r i t t Operating Agreement for Shoreway Center Page-55- 7/30!09 Agenda 8b Item # Meeting (/A�nr BURLINGAME STAFF REPORT Date: November 2, 2009 1 SUBMITTED B APPROVED BY TO: HONORABLE MAYOR AND CITY COUNCIL DATE: October 22, 2009 FROM: PUBLIC WORKS SUBJECT: RESOLUTION ACCEPTING 2009 FEDERAL ARRA GRANT STREET RESURFACING PROJECT — CITY PROJECT NO. 82360 RECOMMENDATION: It is recommended that Council approve the attached resolution accepting the 2009 Federal ARRA Grant Street Resurfacing Project in the amount of $692,251.10. BACKGROUND: On July 20, 2008, the Council awarded the Federal ARRA Grant Street Resurfacing Project to Gallagher & Burk, Inc. in the amount of $660,731. The work included resurfacing of Trousdale Drive from Toledo Avenue to Marco Polo Way and Airport Boulevard from Anza Boulevard to Sanchez Lagoon. DISCUSSION: The project construction has been completed satisfactorily in compliance with the plans and specifications. The final construction cost is $692,251 which is $31,520 or 4.8% above the original contract amount. The additional cost was due to asphalt quantity adjustments made in field and one change order for installing a traffic signal pull box. BUDGET IMPACT: The following is a financial summary of the project. Expenditures: Construction $692,251 Consultant Inspection 22,000 Engineering Administration 25,749 Total $740,000 The project was funded by Federal ARRA Grant in the amount of $551,000 and $189,000 from Gas Tax funds. EXHIBITS: Resolution, Final progress payment, Map Donald Chang Senior Civil Engineer S:\A Public Works Directory\Staff Reports\82 60acceptance.doc RESOLUTION NO. - ACCEPTING IMPROVEMENTS—2009 FEDERAL ARRA GRANT STREET RESURFACING PROJECT BY GALLAGHER&BURK, INC. CITY PROJECT NO. 82360 RESOLVED by the CITY COUNCIL of the City of Burlingame, California, and this Council does hereby find,order and determine as follows: 1. The Director of Public Works of said City has certified the work done by GALLAGHER & BURK INC., under the terms of its contract with the City dated July 20, 2008, has been completed in accordance with the plans and specifications approved by the City Council and to the satisfaction of the Director of Public Works. 2. Said work is particularly described as City Project No.82360. 3. Said work be and the same hereby is accepted. Mayor I,Mary Ellen Kearney,City Clerk of the City of Burlingame,do hereby certify that the foregoing Resolution was introduced at a regular meeting of the City Council held on the 2"d day of November,2009,and was adopted thereafter by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: City Clerk Gallagher& Burk, Inc. PROGRESS PAYMENT 3 (FINAL) FOR THE MONTH OF: October P.O. Box 7227 2009 FEDERAL ARRA GRANT STREET RESURFACING PROGRAM PURCHASE ORDER # 10929 Oakland, CA 94601 CITY PROJECT NO. 82360 TELEPHONE: (510) 261-0466 FAX: (510) 261-0478 !111!1!1 ff f1r1111frfffflfrrrffffflffffrrlflffffffflrfrl f lrflrrrfflflffffffffffff r fflfxrxrf+ff+ffrr x +++x*x******* x«**11*1111111!1!!!!!!!!««««*«* 1«****«*»*»******** * ««1**»»}11++++« « !+«+1RR1!!lRfxlf!!lR111111f ! x1flw!lRff»!11111!1!»+R1 . ewwwfw**1xx+»»»««**xxxxx x ITEM UNIT BID UNIT BID QUANTITY % PAID AMOUNT PREVIOUS AMOUNT # ITEM DESCRIPTION PRICE QUANTITY SIZE AMOUNT TO DATE TO DATE PAID THIS PMT. RR!»RRR wR 1R«11RR1f1Rw}f!!l1R1»w!!l1R111f11f Rr}wlwwllx f wf*«xRR1rwRRwRRR«1«1*RRR r R1R11f11f!lwRllxf 1 lff111rffffff rxxxxxrf+rfxrxxxr++rrfxxrxxxr xxxxrrrr+rfxxxrxxfr ! xxlxfxxffxxxrxx x fxxxxxr++rx***+*+****x****+ * *rf«**«***********++««*xx* « +»xxxxrrffffffffrrrfrrlf f A). STREET RESURFACING 1 A.C. Digout Repair $ 50.00 150 TON $ 7,500.00 71.96 47.97% $ 3,598.00 $ 3,598.00 $ 2 Aggregate Base $ 50.00 10 TON $ 500.00 0.00 0.00% : $ - $ - $ 3 A.C. Overlay $ 87.00 6,020 TON $ 523,740.00 6199.30 102.98% : $ 539,339.10 $ 539,339.10 $ 4 Cold Plane $ 30.00 2,973 C. Y. $ 89,190.00 3290.00 110.66% : $ 98,700.00 $ 98,700.00 $ 5 Adjust Manholes $ 600.00 8 EACH $ 4,800.00 2.00 25.00% : $ 1,200.00 $ 1,200.00 $ 6 Adjust Valves, Lampholes, Etc $ 600.00 12 EACH $ 7,200.00 18.00 150.00% $ 10,800.00 $ 10,800.00 $ 7 Traffic Signal Loops $ 500.00 12 EACH $ 6,000.00 28.00 233.33% : $ 14,000.00 $ 14,000.00 $ 8 Type "A" &"AY" (Pavement Markers) $ 3.00 3,084 EACH $ 9,252.00 3205.00 103.92% : $ 9,615.00 $ 9,615.00 $ 9 Type"D" & Blue (Pavement Markers) $ 6.00 633 EACH $ 3,798.00 583.00 92.10% : $ 3,498.00 $ 3,498.00 $ 10 4" Solid Line-Thermoplastic $ 1.00 100 L. F. $ 100.00 0.00 0.00% : $ - $ - $ 11 6" Solid Line-Thermoplastic $ 2.00 100 L. F. $ 200.00 0.00 0.00% : $ - $ - $ 12 8" Solid Line-Thermoplastic $ 2.00 747 L. F. $ 1,494.00 814.00 108.97% $ 1,628.00 $ 1,628.00 $ 13 12" Solid Line-Thermoplastic $ 3.00 929 L. F. $ 2,787.00 1949.00 209.80% $ 5,847.00 $ 5,847.00 $ 14 Parking Tees $ 15.00 2 EACH $ 30.00 0.00 0.00% $ - $ - $ 15 Legends&Arrows-Thermoplastic $ 2.40 1,475 S. F. $ 3,540.00 715.00 48.47% $ 1,716.00 $ 1,716.00 $ 16 Handicap Legends $ 300.00 2 EACH $ 600.00 0.00 0.00% : $ - $ - $ $ 660,731.00 STREET RESURFACING TOTAL ................................................:.............................................................................................................................................................................:...........................................................:.. .............................................................. :......................... .......................... .............................................. $ 689,941.10 $ 689,941.10 $ .............................................................. ............................................................. ........................................................ CHANGE ORDERS: CO 1 Detector Hand Holes $ 385.00 6 EACH $ 2,310.00 6 100.00% : $ 2,310.00 $ 2,310.00 $ CO2 $ 2,310.00 $ 2,310.00 $ 111f!!ff ff llHffllff+111111»ffff11111f}!llffff1111111+R f 1RRR111f1f!!!}«RRRRRI+}} f +fRRRf*111fl111Rf R 1f1R11rff11f11rrr111*fllrrrfxx+rxxxlxxxlflfxlf rlf+rfxxrx+r+f+xrxr f rxxxxlxrxxxxfrr x xxr*+*+**xxx**+*+******r»«* * «************lflw}f RRR«111 11111rrrfl1f11rrrrlflfxrx 1 DATE «*»««««**«*!w«*«**R *«*«*«R 1111111! PREPARED BY: 11/5/2009 SUBTOTAL ************* $ 660,731.00 ******************* : *************** : $ 692,251.10 $ 692,251.10 $ LESS TEN PERCENT RETENTION ******************* : *************** : $ - $ (69,225.11) $ 69,225.11 CHECKED BY: --,- APPROVED BY SUBTOTAL WITHOUT DEDUCTIONS : *************** $ 692,251.10 $ 623,025.99 $ 69,225.11 CITY ENGINEER: AMOUNT DUE FROM CONTRACTOR : *************** $ - $ - $ - APPROVED BY CONSULTANT: TOTAL THIS PERIOD *««««****»******»»« ww»www»«}ww}«R $ 692,251.10 $ 623,025.99 $ 69,225.11 SJAP WC WORN OIREMf IMWECT51808311 P�Pwrw 92M W,(SHEET-Pma Pryor 3) 1Myl,YR, 12 UPM PAGE 1 OP 1 CITY OF BURLINGAME SAN FRANCISCO BAY AIRPO RT BLVD I \\ Y,,<, - % i TOWN OF HI[.LSBO sss lk 1 \ \ - 2009 FEDERAL ARRA GRANT \ \� STREET RESURFACING PROGRAM \_ \ �}' ® PROGRAM STREETS CONSTRUCTION STAGING AREA \ � Updated:March 73,2009 Agenda Item# Meeting BURLINGAME STAFF REPORT Date: November 2, 2009 `r SUBMITTED B APPROVED BY TO: HONORABLE MAYOR AND CITY COUNCIL DATE: October 22, 2009 FROM: PUBLIC WORKS SUBJECT: RESOLUTION ACCEPTING 2009 FEDERAL ARRA GRANT STREET RESURFACING PROJECT— CITY PROJECT NO. 82360 RECOMMENDATION: It is recommended that Council approve the attached resolution accepting the 2009 Federal ARRA Grant Street Resurfacing Project in the amount of $692,251.10. BACKGROUND: On July 20, 2008, the Council awarded the Federal ARRA Grant Street Resurfacing Project to Gallagher & Burk, Inc. in the amount of $660,731. The work included resurfacing of Trousdale Drive from Toledo Avenue to Marco Polo Way and Airport Boulevard from Anza Boulevard to Sanchez Lagoon. DISCUSSION: The project construction has been completed satisfactorily in compliance with the plans and specifications. The final construction cost is $692,251 which is $31,520 or 4.8% above the original contract amount. The additional cost was due to asphalt quantity adjustments made in field and one change order for installing a traffic signal pull box. BUDGET IMPACT: The following is a financial summary of the project. Expenditures: Construction $692,251 Consultant Inspection 22,000 Engineering Administration 25,749 Total $740,000 The project was funded by Federal ARRA Grant in the amount of $551,000 and $189,000 from Gas Tax funds. EXHIBITS: Resolution, Final progress payment, Map Donald Chang Senior Civil Engineer SAA Public Works Directory\Staff Reports\82360acceptance.doc RESOLUTION NO. - ACCEPTING IMPROVEMENTS — 2009 FEDERAL ARRA GRANT STREET RESURFACING PROJECT BY GALLAGHER & BURK, INC. CITY PROJECT NO. 82360 RESOLVED by the CITY COUNCIL of the City of Burlingame, California, and this Council does hereby find, order and determine as follows: 1. The Director of Public Works of said City has certified the work done by GALLAGHER & BURK INC., under the terms of its contract with the City dated July 20, 2008, has been completed in accordance with the plans and specifications approved by the City Council and to the satisfaction of the Director of Public Works. 2. Said work is particularly described as City Project No. 82360. 3. Said work be and the same hereby is accepted. Mayor I, Mary Ellen Kearney, City Clerk of the City of Burlingame, do hereby certify that the foregoing Resolution was introduced at a regular meeting of the City Council held on the 2 d day of November, 2009, and was adopted thereafter by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: City Clerk Gallagher & Burk, Inc. PROGR 'AYMENT 3 (FINAL) FOR THE MONTH OF: Oct P.O. Box 72: 2009 FEDERAL ARRA Gr STREET RESURFACING PROGRAM PURCHASE ORDER # 1091 Oakland, CA 94601 CITY I-nJJECT NO. 82360 TELEPHONE: (510) 261-0466 FAX: (510) 261-0478 ffi•M«i ## Hf1f•f•Rf1f••ffffifi#i#f##Rff•••ff•UMffiRW f 1f1f1.1R1Mf!##if#1RfftR * ,H•llflf•!!!!ii• f #1tIffYY1111f !f•fflf•lffl!!}i###RRIWf IfflHf ffffffif#f Hf11f*!f f 1fff11fifffifif f }#*1111„1.111!Hfffti#f}YI f f••llRf,MR111f,11fffftfl♦ ♦ 11•!1!11 Rf}Yf,flffif111f • ' ITEM UNIT BID UNIT BID QUANTITY % PAID AMOUNT PREVIOUS AMOUNT # ITEM DESCRIPTION PRICE QUANTITY SIZE AMOUNT TO DATE TO DATE PAID THIS PMT. fiff!•H fY Htl111f 111!•1lift}WIfllffl11f1f1R1Rw,R,fR11f f llffiff}},Hfflbff,ffM f lfRlH,,,R#R1#IRI f f•fllllf•!!!R 1f•Rfif M##1f Yf Y1f11f!•f1f•„ R}tiffitl•fRflff„R R W,H}}1ff11f11Y , ff•lllRff•,iR#ff#!1!1!111„ R ,RIf R#}11111111!1!!!}blff • •,!!f#},,,••llNff11f1f, f A). STREET RESURFACING 1 A.C. Digout Repair $ 50.00 150 TON $ 7,500.00 71.96 47.97% : $ 3,598.00 $ 3,598.00 $ 2 Aggregate Base $ 50.00 10 TON $ 500.00 0.00 0.00% $ - $ - $ 3 A.C. Overlay $ 87.00 6,020 TON $ 523,740.00 6199.30 102.98% : $ 539,339.10 $ 539,339.10 $ 4 Cold Plane $ 30.00 2,973 C. Y. $ 89,190.00 3290.00 110.66% $ 98,700.00 $ 98,700.00 $ 5 Adjust Manholes $ 600.00 8 EACH $ 4,800.00 2.00 25.00% $ 1,200.00 $ 1,200.00 $ 6 Adjust Valves, Lampholes, Etc $ 600.00 12 EACH $ 7,200.00 18.00 150.00% $ 10,800.00 $ 10,800.00 $ 7 Traffic Signal Loops $ 500.00 12 EACH $ 6,000.00 28.00 233.33% : $ 14,000.00 $ 14,000.00 $ 8 Type "A" & "AY" (Pavement Markers) $ 3.00 3,084 EACH $ 9,252.00 3205.00 103.92% : $ 9,615.00 $ 9,615.00 $ 9 Type "D" & Blue (Pavement Markers) $ 6.00 633 EACH $ 3,798.00 583.00 92.10% : $ 3,498.00 $ 3,498.00 $ - 10 4" Solid Line - Thermoplastic $ 1.00 100 L. F. $ 100.00 0.00 0.00% : $ - $ - $ _ 11 6" Solid Line - Thermoplastic $ 2.00 100 L. F. $ 200.00 0.00 0.00% $ - $ - $ _ 12 8" Solid Line - Thermoplastic $ 2.00 747 L. F. $ 1,494.00 814.00 108.97% $ 1,628.00 $ 1 ,628.00 $ 13 12" Solid Line - Thermoplastic $ 3.00 929 L. F. $ 2,787.00 1949.00 209.80% : $ 5,847.00 $ 5,847.00 $ - 14 Parking Tees $ 15.00 2 EACH $ 30.00 0.00 0.00% : $ - $ - $ 15 Legends & Arrows - Thermoplastic $ 2.40 1,475 S. F. $ 3,540.00 715.00 48.47% $ 1,716.00 $ 1,716.00 $ 16 Handicap Legends $ 300.00 2 EACH $ 600.00 0.00 0.00% : $ - $ - $ $ 660,731.00 STREET RESURFACING TOTAL ................................................._............__........................_............_......................._................_.............................................. ........................_:.. .............................................................. ........_................................................... . ........................................................ $ 689,941.10 $ 689,941.10 $ .........................................._.................. ............................................................. ........................................................ CHANGE ORDERS: CO 1 Detector Hand Holes $ 385.00 6 EACH $ 2,310.00 6 100.00% : $ 2,310.00 $ 2,310.00 $ CO2 $ 2,310.00 $ 2,310.00 $ ,HHB#w R« #WRWWWffIRMflflRf#i#R111Rb1RlflR!!!„i«if1W ! RR1f1R##w«fR##ttlf•fR1f• , 11wwwWR«f#1111!!! f RRRwww,R#wwwwf#!WWW«#f11111111f11RRRlf#1 Wff#ff ffRlflf R,R11Rw1fffw w *WWHHWRR1R1b 1 R1Rf RlwlR1R*R«#flWlfff1R1R1 R RffRw#1WfRRfiff#1„•,!RBBB Wwf1f}t1ffRR1RlRR}Rw Wf R1 DATE 1ffeW#tH1111•f1B11 WwwBwwwfH1fY11 . PREPARED BY: 11/5/2009 SUBTOTAL **"'*"""' ' $ 660,731.00 """"`"****"•** : """"""!"*` : $ 692,251.10 $ 692,251.10 $ LESS TEN PERCENT RETENTION W*"•••••••11••••11, • f4•iHHRfeHH : $ ; $ (69,225.11) $ 69,225.11 CHECKED BY: #.,..HH#.HIH, RH,WHH,H1 ,..HHH,1,.,f.HHHt1..H1H ,.1H,HHBW,.WHH HH.HII,HH, APPROVED BY SUBTOTAL WITHOUT DEDUCTIONS : "'**`•"*"•" $ 692,251.10 $ 623,025.99 $ 69,225.11 CITY ENGINEER: AMOUNT DUE FROM CONTRACTOR : ""*•*••"'*"'• $ - $ _ $ APPROVED BY .HHHH....RB,1 wBw.fHH.HHHRHHH.,..HHBf BRBH.H..H. H.HHHH.f Rw.Hf H#HH..H,H1 CONSULTANT: TOTAL THIS PERIOD !HH#HWHRHHIH . H11B1Hww,w#RR @ 692,251.10 $ 623,025.99 $ 69,225.11 BJAP KICK KOIRFCMY I PROJE 9190831'Pm9rev Pry 82380 q,,(9 U-Pm "Pe 3) 10123/1pW, 1234 PM PAGE 1 O81 � - CITY OF BURLINGAME SAN FRANCISCO BAY 115, zv AIRPORT BLVD IN � II 41, LIN NN r 4 ivy - TOWN OF HILLS O \ t 2009 FEDERAL ARRA GRANT STREET RESURFACING PROGRAMjr PROGRAM STREETS \ ® CONSTRUCTION STAGING AREA Updated: March 17,2000 CITY 0� STAFF REPORT BURLINGAME AGENDA ITEM # 8C MTG. , o9$Aarco uuueb,�o DATE November 2, 2009 TO: HONORABLE MAYOR AND CITY COUNCIL SUBMITTED BY DATE: October 27, 2009 APPROVED BY FROM: Jesus Nava, Finance Director 558-7222 SUBJECT: Approval of A Resolution Of the City Council Of The City of Burlingame Approving And Authorizing The City Manager To Execute A Franchise Agreement With Recology San Mateo County For Recyclable Materials, Organic Materials And Solid Waste Collection Services RECOMMENDATION: That the City Council adopt a Resolution approving and authorizing the city manager to execute a franchise agreement with Recology San Mateo County (formerly Norcal Waste Systems) for recyclable materials, organic materials and solid waste collection services. BACKGROUND: The SBWMA Board of Directors commenced the solid waste collection services procurement process in 2005 . On October 2006, the SBWMA Board approved the elements to be contained in a solid waste collection services request-for-proposals (the RFP). They included the scope of future new services, contract terms and competitive proposal guidelines. The Burlingame City Council approved Resolution No. 12-2007 on February 5, 2007 which accepted the SBWMA recommendations and committed the city to participate in the collection services RFP process. On September 17, 2007, the City Council adopted Resolution No. 70-2007 approving the SBWMA Collection Services RFP. The SBWMA issued the RFP on November 1 , 2007 and received qualified proposals from four (4) companies on March 11 , 2008. The proposals were reviewed and assessed by an evaluation team consisting of SBWMA staff, the Assistant General Manager of the Monterey Regional Waste Management District and members of the R3 consultancy firm, which was hired by the SBWMA to assist in the process. The evaluation team reported its findings and recommendations to a Selection Committee comprised of SBWMA staff and the following SBWMA board members: Brian Ponty-Redwood City; Larry Patterson-City of San Mateo; Jim Hardy-Foster City; Peggy Jensen-County of San Mateo; Jesus Nava-City of Burlingame; and Kent Steffens-City of Menlo Park. The SBWMA Board selected Recology San Mateo County (formerly Norcal Waste Systems) on August 28, 2008 to provide collection services to the entire SBWMA service area. On August 1 17, 2009, the City Council adopted Resolution No. 80-2009 authorizing the City Manager or his designee to commence franchise negotiations with Recology San Mateo County as the future recyclable materials, organic materials and solid waste collection services provider. DISCUSSION: Approval of the new franchise agreement with Recology San Mateo County starts a new era in recycling and solid waste collection services for the City of Burlingame. The company has considerable experience implementing the adopted new scope of services which are made possible by the reconstruction of the Shoreway Recycling and Disposal Center to accommodate single-stream recycling. The roll-out of new services and the renovation of the Shoreway facility allows Burlingame to provide its residents and businesses with comprehensive new collection services that will reduce solid waste disposal at the landfill by using a reliable, customer-friendly system designed to conveniently collect recyclable materials such as cans, bottles, paper, plastics, cardboard, cell phones, used household batteries, used motor oil and filters, and organic materials (yard trimmings, food scraps and soiled paper). The new franchise requires Recology to collect all solid waste generated in Burlingame with the exception of State agencies, which include the public school districts. As a practical matter it is expected that the school districts will contract with Recology as well. The new agreement also requires Recology to provide recycling and garbage collection at city-sponsored community events as listed in the franchise. It provides residential customers with on-call pick-up of bulky items; increases commercial recycling efforts and requires the company to empty all litter and recycling receptacles located in the city's right-of-ways. A description of the complete scope of services Recology will provide is included as Attachment A to this report. The new franchise agreement includes the following key terms: o Ten year term commencing January 1, 2011 and ending December 31, 2020. o Automated curb-side collection to provide a more cost-effective collection service, achieve higher productivity and reduce employee injuries and customer claims related to the handling of recycling and refuse containers. o Company supplied wheeled containers for solid waste, recyclables and organic waste. o Weekly collection of commingled recyclables and organic waste resulting in more waste diversion from the landfill and an increase in recycling commodities revenue. o Organics recycling for residential customers including kitchen pails for food scraps. o Recycling and trash collection support for city sponsored community events. o Graffiti removal from company equipment within 48 hours of notification. o Collaborative public education and outreach campaign developed by Recology, SBWMA and the City of Burlingame to inform residents and businesses of the new services. o Extensive reporting requirements to gauge the company's performance. o Performance incentives, disincentives and liquidated damages provisions to ensure compliance with the provisions of the franchise. o Simpler company compensation methodology with adjustments to compensation based primarily on predetermined published indices. o Specific customer service criteria to limit complaints and quickly resolve problems. 2 Next Steps Upon approval of the agreement with Recology, city staff will work with Recology and the SBWMA to design public education and outreach efforts that meet the unique requirements of Burlingame residents and businesses. Staff will also work closely with both Republic (formerly Allied Waste) and Recology to ensure a smooth transition to the new services. The City Council will be provided progress reports on the reconstruction of the Shoreway facility and the extensive planning efforts required to transition to the new services by 2011. FISCAL IMPACT: Approval of the franchise agreement has no impact on the city's general fund. The city will continue to assess an 8% franchise fee on solid waste revenues. The city's solid waste management fund will benefit from the inclusion of the city's landfill closure expenses in the future rates to be charged to residential and commercial customers. Those costs are approximately $400,000 per year and are currently being paid from the collected franchise fees. At present the plan is to include these costs in the proposed 2009 rate adjustment. The cost to provide the enhanced services included in the new franchise agreement will be paid through the solid waste rates charged to customers beginning in the 2011 rate year. The total rate impact for the new services has been estimated to be 15%. This includes both the cost of the new services and any increase in tipping fees charged by the SBWMA at the Shoreway facility. California Environmental Quality Act (CEQA): The new franchise will provide for an increased level of service in the City that could potentially have some environmental impacts related to traffic, noise and air quality. Such matters were discussed and analyzed as part of the 2008 Mitigated Negative Declaration (MND) for the Land Use Permit issued by the City of San Carlos for the improvements to the Shoreway Recycling and Disposal Center. A formal opinion has been obtained by SBWMA legal counsel indicating that CEQA can be complied with as to action on the Franchise Agreements for Collection Services of the Member Agencies by referring to the MND as an adequate environmental document pursuant to CEQA and CEQA guidelines for the purposes of analysis and consideration of the franchise agreement for collection services. A copy of the MND has been on file with the San Carlos City Clerk and is available for public review. CEQA language has been included in the Resolution approving the Franchise Agreement. ATTACHMENTS: Staff Report Attachment A— Summary of Future Collection Services with Recology Resolution Of the City Council Of The City of Burlingame Approving And Authorizing The City Manager To Execute A Franchise Agreement With Recology San Mateo County For Recyclable Materials, Organic Materials And Solid Waste Collection Services Franchise Agreement Between City of Burlingame and Recology San Mateo County for Recyclable Materials, Organic Materials and Solid Waste Collection Services (including Attachments A through Q) 3 Staff Report Attachment A. Summary of Future Collection Services with Recology San Mateo County CITY OF BURLINGAME: Single Family Dwelling(SFD) Collection Services Core Services for SFD • Weekly Automated Solid Waste Collection • Weekly Automated Single Stream Recycling Collection • Weekly Automated Organics Recycling Collection • Annual Holiday Tree Recycling Collection • Weekly Household Batteries and Cell Phones Recycling Collection • Weekly Used Motor Oil and Used Motor Oil Filter Recycling Collection • Twice Annual On-Call Bulky Item Collection • Fee for Service On-Call Bulky Item Collection(3`d or more) Optional Services for SFD • Drop-Off Community Collection Event • City-wide Week-Long Bulky Item Collection Event Multi-Family Dwelling(MFD) Collection Services Core Services for MFD • Weekly Solid Waste Collection • Weekly Single Stream Recycling Collection • Weekly Organics Recycling Collection • Weekly Plant Materials Recycling Collection • Twice Annual On-Call Bulky Item Collection • Annual Holiday Tree Recycling Collection • Weekly Household Batteries and Cell Phones Recycling Collection Optional Services for MFD • Fee for Service On-Call Bulky Item Collection • Universal Roll-Out of Recycling Collection Commercial Collection Services Core Services for Commercial • Solid Waste Collection • Single Stream and Source Separated Recycling Collection • Organics Recycling Collection • Plant Materials Recycling Collection Optional Services for Commercial • Fee for Service On-Call Bulky Item Collection • Universal Roll-Out of Recycling Collection Summary of Future Collection Services Page 1 of 2 Staff Report Attachment A. Summary of Future Collection Services with Recology San Mateo County Agency Facilities Collection Services Core Services for Agency Facilities • Solid Waste Collection • Single Stream and Source Separated Recycling Collection • Organics Recycling Collection • Plant Materials Recycling Collection • Public Street, Parks and Parking Lot Solid Waste and Recycling Receptacles Collection • Annual On-Call Bulky Items Collection Service • Venues and Events Solid Waste, Recycling and Organics Collection • Shared Recycling Bins Downtown • Confidential Document Destruction Event • Community Events Recycling Optional Services for Member Agency Facilities • Fee for Service On-Call Bulky Item Collection • Delivery of Compost.for Giveaway Events • Abandoned Waste Cleanup Collection Service Optional Services for Agencies • Community Drop-Off Events • Agency-Wide Bulky Items Collection Event Additional Services Provided • Coats for Kids Program • Garage Sales Coordination • Confidential Materials Destruction • "Recyclemyjunk" Summary of Future Collection Services Page 2 of 2 `.- RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A FRANCHISE AGREEMENT WITH RECOLOGY SAN MATEO COUNTY FOR RECYCLABLE MATERIALS, ORGANIC MATERIALS AND SOLID WASTE COLLECTION SERVICES WHEREAS, The State of California, through the California Integrated Waste Management Act of 1989, codified at Public Resources Code Section 40000, et seq. (the "Act"), found and declared that the amount of solid waste generated in California, coupled with diminishing landfill space and potential adverse environmental impacts from landfill disposal, has created a need for state and local agencies to enact and implement an aggressive integrated waste management program; and WHEREAS, The Act directs the California Integrated Waste Management Board and local agencies to promote recycling and to maximize the use of feasible source reduction, recycling and composting options in order to reduce the amount of solid waste that must be disposed in landfills; and WHEREAS, the South Bayside Waste Management Authority ("Authority") is a joint powers authority between the cities of Belmont, Burlingame, East Palo Alto, Foster City, Menlo Park, Redwood City, San Carlos, and San Mateo; the towns of Atherton and Hillsborough; the West Bay Sanitary District; and the County of San Mateo ("Member Agencies"); and WHEREAS, on October 26, 2006, the Authority approved the Collection Services Request for Proposals (RFP) recommendations to the Member Agencies regarding future services, contract terms and competitive proposal guidelines for the Authority Collection Services RFP process; and, WHEREAS, on February 5, 2007, the City Council adopted Resolution No. 12-2007 approving the SBWMA Board recommendations to the Member Agencies regarding future services, contract terms and competitive proposal guidelines for the Authority Collection Services RFP process and committed to participate in the Authority Collection Services RFP process; and, WHEREAS, on September 17, 2007, the City Council adopted Resolution No. 70-2007 approving the SBWMA Collection Services RFP scope of services, proposals evaluation process and contract terms; and WHEREAS, the Authority issued the Collection Services Request for Proposals on November 1, 2007 soliciting proposals for the collection of recyclable materials, organic materials and solid waste within the jurisdiction of the Authority ("RFP Process"); and WHEREAS, on March 11, 2008, the Authority received proposals from four (4) companies to provide the collection services described in the RFP; and �. WHEREAS, on August 28, 2008, the Authority Board approved the Authority Collection Services RFP Selection Committee recommendation to select Recology San Mateo County (formerly Norcal Waste Systems of San Mateo County) to provide collection services to the entire SBWMA service area; and S:\Solid Waste Rates\Franchise Agreement\Recology-Reso approving franchise agrmt-10-28-09.doc WHEREAS, on August 17, 2009, the City Council adopted Resolution No. 80-2009 authorizing the City Manager and his designee to commence franchise negotiations with Recology San Mateo County as the future recyclable materials, organic materials and solid waste collection services provider; and WHEREAS, the services to be provided under the Franchise Agreement have been analyzed pursuant to a Mitigated Negative Declaration (MND) prepared for and approved by the City of San Carlos Planning Commission in July 2008 in connection with a use permit granted to the Authority for the expansion of and improvements to be made to the Shoreway Recycling and Disposal Center. The Council/Board finds that the MND is and remains an adequate environmental document pursuant to CEQA and CEQA Guidelines for the purposes of analysis and consideration of the Franchise Agreement. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BURLINGAME HEREBY RESOLVES AS FOLLOWS: 1. The City Council hereby approves the Franchise Agreement ("Agreement") with Recology San Mateo County for Recyclable Materials, Organic Materials, and Solid Waste Collection Services in substantially the form attached hereto and incorporated herein as Exhibit"A". 2. The City Manager is hereby authorized and directed to execute the Agreement in substantially the form attached hereto and incorporated herein as Exhibit "A", with such non-substantive additions, clarifications and other changes as the City Manager deems necessary or advisable after consultation with City Legal Counsel. Ann Keighran, Mayor I, Mary Ellen Kearney, City Clerk of the City of Burlingame do hereby certify that the foregoing Resolution was introduced at a regular meeting of the City Council on the 2nd day of November, 2009, and was adopted thereafter by the following vote: AYES: Councilmembers: NOES: Councilmembers: ABSENT: Councilmembers: Mary Ellen Kearney, City Clerk S:\Solid Waste Rates\Franchise Agreement\Recology-Reso approving franchise agrmt-10-28-09.doc FRANCHISE AGREEMENT BETWEEN CITY OF BURLINGAME AND RECOLOGY SAN MATEO COUNTY FOR RECYCLABLE MATERIALS, ORGANIC MATERIALS, AND SOLID WASTE COLLECTION SERVICES Approved By The Burlingame City Council November 2, 2009 TABLE OF CONTENTS ARTICLE1 DEFINITIONS ....................................................................................................3 1.01 Definitions...................................................................................................................3 1.02 Statutory Definitions....................................................................................................3 ARTICLE 2 REPRESENTATION AND WARRANTIES OF CONTRACTOR..........................4 2.01 Corporate Status.........................................................................................................4 2.02 Corporate Authorization ..............................................................................................4 2.03 Agreement Duly Executed ..........................................................................................4 2.04 No Conflict with Applicable Law or Other Documents .................................................4 2.05 No Litigation................................................................................................................4 2.06 Financial Condition......................................................................................................4 2.07 Ability to Perform.........................................................................................................5 2.08 Contractor's Investigation............................................................................................5 2.09 Statements and Information in Proposal .....................................................................5 ARTICLE3 TERM OF AGREEMENT....................................................................................6 3.01 Effective Date .............................................................................................................6 3.02 Term ...........................................................................................................................6 3.03 Extension of Term.......................................................................................................6 3.04 Conditions to Effectiveness of Agreement. .................................................................6 ARTICLE4 SCOPE OF AGREEMENT.................................................................................8 4.01 Scope of Agreement...................................................................................................8 4.02 Limitations on Scope...................................................................................................8 4.03 Geographic Limits on Contractor's Operations............................................................9 ARTICLE 5 COLLECTION SERVICES............................................................................... 10 5.01 General..................................................................................................................... 10 5.02 Solid Waste Collection.............................................................................................. 10 5.03 Targeted Recyclable Materials Collection ................................................................. 14 5.04 Organic Materials Collection .....................................................................................20 5.05 Single-Family and Multi-Family Twice Annual On-Call Curbside Bulky Item Collection Service .................................................................................................................................22 5.06 Agency Facility Annual On-Call Bulky Item Collection Service..................................24 5.07 Confidential Document Destruction Service Event....................................................25 5.08 Collection for Large Venues and Events...................................................................25 5.09 Abandoned Waste Cleanup Collection Service.........................................................27 5.10 Coats for Kids Program.............................................................................................27 5.11 Compost Give-Away .................................................................................................28 5.12 Fee for Service On-Call Bulky Item Collection...........................................................28 5.13 Community Drop-Off Events .....................................................................................28 5.14 Week-Long Agency-Wide Bulky Items Collection Service Event...............................30 ARTICLE6 TRANSPORTATION ........................................................................................ 31 6.01 Transportation of Collected Materials............................................................... Franchise Agreement for Collection Services City of Burlingame -ii- 6.02 Limitations on Contamination....................................................................................31 6.03 Contractor Methods of Controlling Contamination.....................................................35 6.04 Processing of Other Materials...................................................................................36 ARTICLE7 OTHER SERVICES.......................................................................................... 37 7.01 Customer Billing........................................................................................................37 7.02 Customer Service .....................................................................................................39 7.03 Public Education and Promotion ................................................................................42 7.04 Commercial Recycling Promotion Program...............................................................47 7.05 Multi-Family Recycling Promotion .............................................................................49 7.06 Waste Generation/Characterization Studies ............................................................. 50 7.07 Program Evaluation ..................................................................................................51 7.08 Provision of Emergency Services.............................................................................. 51 7.09 MFD and Commercial Recycling Blitz .......................................................................52 7.10 Carbon Footprint Measuring......................................................................................52 7.11 Environmental Management Program.......................................................................52 7.12 Annual Route Assessment........................................................................................53 ARTICLE 8 REQUIREMENTS FOR OPERATIONS, EQUIPMENT, AND PERSONNEL ........ 54 8.01 Collection Hours and Schedules ...............................................................................54 8.02 Collection Standards.................................................................................................55 8.03 Unloading Materials at the Designated Transfer and Processing Facility..................59 8.04 Vehicles ....................................................................................................................59 8.05 Containers ................................................................................................................62 8.06 Personnel..................................................................................................................64 8.07 Hazardous Waste Inspection and Handling ..............................................................67 8.08 Communication and Cooperation with Agency..........................................................69 8.09 Cooperation with Designated Transfer and Processing Facility Operator..................69 8.10 Buy-Recycled Policy .................................................................................................70 8.11 Annual Performance Hearing....................................................................................71 ARTICLE 9 RECORD KEEPING AND REPORTING..........................................................73 9.01 General.....................................................................................................................73 9.02 General Record Keeping Provisions .........................................................................73 9.03 Record Keeping Requirements.................................................................................74 9.04 General Reporting Requirements..............................................................................77 9.05 Monthly Reports........................................................................................................78 9.06 Quarterly Reports......................................................................................................79 9.07 Annual Reports .........................................................................................................83 9.08 Event-Specific Reporting...........................................................................................86 9.09 Upon-Request Reporting ..........................................................................................86 ARTICLE 10 FRANCHISE FEE AND OTHER FEES.........................................................87 10.01 General........'......................................................................................................... 87 10.02 Franchise Fee.......................................................................................................87 10.03 Other Fees............................................................................................................87 10.04 Time and Method of Payment...............................................................................87 10.05 Adjustments to Fees; Additional Fees...................................................................87 Franchise Agreement for Collection Services City of Burlingame -iii- ARTICLE 11 CONTRACTOR'S COMPENSATION, PASS-THROUGH COSTS, AND "1 RATES 88 11.01 Overview...............................................................................................................88 11.02 Determination of Contractor's Compensation........................................................89 11.03 Annual Revenue Reconciliation Process...............................................................90 11.04 Application Process for Contractor's Compensation..............................................91 11.05 Special Compensation Review..............................................................................92 11.06 Compensation Adjustments for Changes in Scope of Services or Service Levels.93 11.07 Rate-Setting Process ............................................................................................94 11.08 Notice of Rate Adjustments...................................................................................95 11.09 Potential Rate Constraints.....................................................................................95 ARTICLE 12 AGENCY RIGHT TO USE EQUIPMENT AND FACILITIES ......................... 96 12.01 Purpose.................................................................................................................96 12.02 Conditions Authorizing Agency's Right to Use of Facilities and Equipment...........96 12.03 Notice to Contractor..............................................................................................96 12.04 Rights and Responsibilities of Parties ...................................................................96 12.05 Duration of Agency's Right to Possession and Use of Vehicles/Equipment ..........97 12.06 General.................................................................................................................97 ARTICLE 13 INDEMNITY, INSURANCE, BOND, GUARANTY.........................................98 13.01 Indemnification......................................................................................................98 13.02 Insurance..............................................................................................................98 13.03 Faithful Performance Bond.................................................................................. 101 13.04 Alternative Security ............................................................................................. 102 13.05 Hazardous Waste Indemnification....................................................................... 102 13.06 California Integrated Waste Management Act Indemnification............................ 102 13.07 Guaranty............................................................................................................. 102 ARTICLE 14 DEFAULT AND REMEDIES....................................................................... 103 14.01 Events of Default................................................................................................. 103 14.02 Right to Suspend or Terminate Upon Default...................................................... 103 14.03 Specific Performance.......................................................................................... 104 14.04 Right to Perform; Use of Contractor Property...................................................... 104 14.05 Damages............................................................................................................. 104 14.06 Agency's Remedies Cumulative........................................................................... 104 14.07 Liquidated Damages ........................................................................................... 105 14.08 Agency Default.................................................................................................... 105 14.09 Excuse from performance................................................................................... 106 14.10 Assurance of Performance.................................................................................. 107 ARTICLE 15 OTHER AGREEMENTS OF THE PARTIES............................................... 108 15.01 Relationship of Parties ........................................................................................ 108 15.02 Compliance with Law .......................................................................................... 108 15.03 Assignment......................................................................................................... 108 15.04 Subcontracting.................................................................................................... 109 15.05 Affiliated Entity .................................................................................................... 110 15.06 Contractor's Investigation.................................................................................... 110 15.07 No Warranty by Agency ...................................................................................... 110 Franchise Agreement for Collection Services City of Burlingame -iv- \.. 15.08 Condemnation..................................................................................................... 110 15.09 Notice.................................................................................................................. 110 15.10 Representatives of the Parties. ........................................................................... 111 15.11 Duty of Contractor Not to Discriminate................................................................ 111 15.12 Right of Agency to Make Changes in Services and Service Levels..................... 112 15.13 Transition to Next Service Provider..................................................................... 112 15.14 Reports as Public Records.................................................................................. 113 ARTICLE 16 MISCELLANEOUS PROVISIONS.............................................................. 114 16.01 Governing Law.................................................................................................... 114 16.02 Jurisdiction.......................................................................................................... 114 16.03 Binding on Successors........................................................................................ 114 16.04 Parties in Interest................................................................................................ 114 16.05 Waiver................................................................................................................. 114 16.06 Attachments........................................................................................................ 114 16.07 Entire Agreement................................................................................................ 114 16.08 Section Headings................................................................................................ 114 16.09 Interpretation....................................................................................................... 114 16.10 Amendment......................................................................................................... 114 16.11 Severability.......................................................................................................... 115 16.12 Costs and Attorneys' Fees.................................................................................. 115 16.13 No Damages for Invalidation of Agreement......................................................... 115 16.14 References to Laws ............................................................................................ 115 16.15 Indemnity Against Challenges to Agreement....................................................... 115 Attachments A Definitions B Service Levels of Agency Facilities C Community Events D Container Specifications E -1 Contamination Measurement Methodology— Single Loads E -2 Contamination Measurement Methodology— Quarterly Protocol F Faithful Performance Bond G Guaranty H Delinquent Payment Policy I Performance Incentives and Disincentives J Liquidated Damages K Contractor's Compensation and Rate Setting Process L Implementation Plan M Agency's Franchise Fee and Other Fees N Contractor's Compensation and Operating Statistics O List of Contractor's Personnel P. Vehicle Specifications Q. Unscheduled Services Franchise Agreement for Collection Services City of Burlingame _v_ 1 FRANCHISE AGREEMENT -� 2 FOR 3 RECYCLABLE MATERIALS, ORGANIC MATERIALS, AND SOLID WASTE 4 COLLECTION SERVICES 5 6 THIS AGREEMENT is made as of this 2nd day of November, 2009, by and between 7 the City of Burlingame, a municipal corporation ("Agency"), and RECOLOGY SAN MATEO 8 COUNTY, a California corporation ("Contractor"). 9 RECITALS 10 1. The State of California has, through enactment of the California Integrated 11 Waste Management Act of 1989 ("Act"), determined each of the following: 12 A. That management of solid waste is a shared responsibility of the State 13 and local governments. 14 B. That it is in the public interest for local governments to be authorized and 15 required to provide adequate solid waste handling services. 16 C. That the amount of solid waste generated in California, coupled with 17 diminishing landfill space, potential adverse environmental impacts from 18 land filling solid waste, and the need to conserve natural resources have -� 19 created an urgent need for State and local agencies to enact and 20 implement an aggressive integrated waste management program. 21 2. The State of California, through the Act, has directed the California Integrated 22 Waste Management Board and all local agencies to maximize the use of feasible 23 waste reduction, recycling and composting options in order to reduce the amount 24 of solid waste that must be disposed of in landfills. 25 3. Agency is a member of the South Bayside Waste Management Authority 26 ("Authority" or"SBWMA"), established pursuant to the California Joint Exercise 27 of Powers Act. In November, 2007, the Authority, acting on behalf of Agency and 28 its other members, issued a Request for Proposals to provide collection of solid 29 waste, recyclable materials, and organic materials and related services to 30 Agency and other members of Authority. 31 4. Contractor submitted a proposal to provide these services, which was evaluated 32 by the Authority. On the basis of that evaluation, the Authority has 33 recommended that Agency enter into an agreement with Contractor. 34 5. Agency has independently evaluated Contractor's proposal and has determined 35 that Contractor has proposed to provide solid waste handling services including 36 Collection of Recyclable and Organic Materials in a manner and on terms which 37 are in the best interests of Agency, its residents and businesses, taking into 38 account the qualifications and experience of Contractor and the cost of providing 39 such services. Franchise Agreement for Collection Services City of Burlingame Page 1 ,,.40 6. Contractor has participated in the development of this Agreement and is ready, 41 willing and able to perform the services which the Agreement requires. 42 NOW, THEREFORE, in consideration of the mutual promises contained in this 43 Agreement, and for other good and valuable consideration, Agency and Contractor 44 agree as follows: Franchise Agreement for Collection Services City of Burlingame Page 2 45 ARTICLE °I DEFINITIONS 46 1.01 DEFINITIONS 47 Unless the context otherwise requires, capitalized terms used in this Agreement shall 48 have the meanings set forth in the definitions contained in Attachment A. 49 1.02 STATUTORY DEFINITIONS 50 Unless a term is otherwise defined in this Agreement, terms used in this Agreement 51 shall have the same meaning as the definitions of those terms contained in the Act. In 52 the event of a conflict between the definition of a term in the Act and in this Agreement, 53 the definition in the Agreement shall prevail. Franchise Agreement for Collection Services City of Burlingame Page 3 54 ARTICLE 2 REPRESENTATION AND WARRANTIES OF 55 CONTRACTOR 56 Contractor represents and warrants, as of the date of this Agreement, the following: 57 2.01 CORPORATE STATUS 58 Contractor is a corporation, duly organized, validly existing and in good standing under 59 the laws of the State of California, and is qualified to do business in the State of 60 California. 61 2.02 CORPORATE AUTHORIZATION 62 Contractor has the authority to enter into and perform its obligations under this 63 Agreement. The directors (and shareholders if necessary) of Contractor have taken all 64 actions required by law, the articles of incorporation and bylaws or otherwise to 65 authorize the execution of this Agreement. 66 2.03 AGREEMENT DULY EXECUTED 67 The persons signing this Agreement on behalf of Contractor have been authorized to do 68 so and this Agreement constitutes a legal, valid and binding obligation of Contractor. �- 69 2.04 NO CONFLICT WITH APPLICABLE LAW OR OTHER DOCUMENTS 70 Neither the execution and delivery by Contractor of this Agreement, nor the performance 71 by Contractor of its obligations hereunder (i) conflicts with, violates or will result in a 72 violation of any existing Applicable Law; or (ii) conflicts with, violates or will result in a 73 breach or default under any term or condition of any existing judgment, order or decree 74 of any court, administrative agency or other governmental authority, or of any existing 75 contract or instrument to which Contractor is a party or by which Contractor is bound. 76 2.05 NO LITIGATION 77 There is no action, suit, proceeding, or investigation at law or in equity, before or by any 78 court or governmental entity, pending or threatened against Contractor, or otherwise 79 affecting Contractor, wherein an unfavorable decision, ruling, or finding, in any single 80 case or in the aggregate, would (a) materially adversely affect Contractor's performance 81 hereunder, (b) adversely affect the validity or enforceability of this Agreement, or (c) 82 have a material adverse effect on the financial condition of Contractor or the entity 83 providing the guaranty of Contractor's performance. 84 2.06 FINANCIAL CONDITION 85 Contractor has made available to Agency information on its financial condition. 86 Contractor recognizes that Agency has relied on this information in evaluating the 87 sufficiency of Contractor's financial resources to perform this Agreement. To the best of 88 Contractor's knowledge, this information is complete and accurate, does not contain any 89 material misstatement of fact and does not omit any fact necessary to prevent the 90 information provided from being materially misleading. Franchise Agreement for Collection Services City of Burlingame Page 4 91 2.07 ABILITY TO PERFORM 92 Contractor has the expertise and professional and technical capability to perform all of 93 its obligations under this Agreement. 94 2.00 CONTRACTOR'S INVESTIGATION 95 Contractor has made an independent investigation and analysis, the results of which are 96 satisfactory to Contractor, of the conditions and circumstances surrounding the 97 Agreement, its content and preparation, and the work to be performed by Contractor 98 under the Agreement. The Agreement accurately and fairly represents the intentions of 99 Contractor, and Contractor enters into this Agreement on the basis of that independent 100 investigation and analysis. 101 2.09 STATEMENTS AND INFORMATION IN PROPOSAL 102 The Proposal and supplementary information submitted to the Authority and Agency do 103 not contain any untrue statement of a material fact nor omit to state a material fact 104 necessary in order to make the statements made, in light of the circumstances in which 105 they were made, not misleading. Franchise Agreement for Collection Services City of Burlingame Page 5 �106 ARTICLE 3 TERM OF AGREEMENT 107 3.01 EFFECTIVE DATE 108 The Effective Date of this Agreement shall be December 12, 2009. 109 3.02 TERM 110 The Term of this Agreement shall begin on the Effective Date and shall end at midnight 111 on December 31, 2020, unless earlier terminated, or extended as provided in Section 112 3.03. Contractor's obligation to Collect Solid Waste, Targeted Recyclable Materials and 113 Organic Materials shall begin on January 1, 2011 at 12:01 a.m. and shall continue for 114 the remainder of the Term. 115 3.03 EXTENSION OF TERM 116 During calendar year 2017, the Parties shall meet and confer on the possible extension 117 of the Term. 118 3.04 CONDITIONS TO EFFECTIVENESS OF AGREEMENT. 119 A. Obligation of Agency to Perform. The obligation of Agency to perform under 120 this Agreement is subject to satisfaction, on or before the Effective Date, of each 121 of the conditions set out below, each of which may be waived in whole or in part L X22 by Agency: 123 1. Accuracy of Representations. The representations and warranties made by 124 Contractor in Article 2 shall be true and correct on and as of the Effective 125 Date. 126 2. Absence of Litigation. There shall be no litigation pending on the Effective 127 Date in any court challenging the execution of this Agreement or seeking to 128 restrain or enjoin its performance. 129 3. Effectiveness of Agency's Approval. The approval of this Agreement by 130 Agency shall have become effective, pursuant to California law, on or before 131 the Effective Date. 132 4. Performance Bond. Contractor shall have provided a performance bond 133 meeting the requirements of Section 13.03. 134 D. Obligation of Contractor to Perform. The obligation of Contractor to perform 135 under this Agreement is subject to the satisfaction of the conditions set forth 136 below, each of which may be waived in whole or in part by Contractor. 137 1. Absence of Litigation. There shall be no litigation pending on the Effective 138 Date in any court challenging the execution of this Agreement, or seeking to 139 enjoin its performance. 140 2. Effectiveness of Agency's Approval. The approval of this Agreement by 141 Agency shall have become effective, pursuant to California law. Franchise Agreement for Collection Services City of Burlingame Page 6 142 3. Approvals by Other Member Agencies. The governing bodies of a majority 143 (seven) of the SBWMA's Member Agencies, collectively representing at 144 least seventy percent (70%) of the total Revenue Requirement for 2011 145 shown on Attachment N Form C (i.e., $74,999,148), have also approved 146 franchise agreements with Contractor substantially similar to this Agreement 147 on or before October 1, 2009. 148 C. Notice. If either Party wishes to assert that a condition for its benefit has not 149 been satisfied and has not been waived, it must deliver written notice to that 150 effect to the other party on or before the Effective Date. If no such notice is 151 received, the Agreement will become effective on the Effective Date. 152 D. Good Faith. Each Party is obligated to perform in good faith the actions, if any, 153 which this Agreement requires it to perform before the Effective Date and to 154 cooperate towards the satisfaction of the conditions set forth above. Franchise Agreement for Collection Services City of Burlingame Page 7 X155 ARTICLE 4 SCOPE OF AGREEMENT f 156 4.01 SCOPE OF AGREEMENT 157 A. Through this Agreement, Agency grants to Contractor an exclusive franchise, 158 except as provided in subsection B and in Section 4.02, to Collect the following 159 materials in the Service Area: 160 1. Solid Waste generated at Residential Premises, Commercial Premises and 161 Agency Facilities; and 162 2. Source Separated Targeted Recyclable Materials and Source Separated 163 Organic Materials generated at Residential Premises. 164 B. Through this Agreement, Agency grants to Contractor a non-exclusive right to 165 Collect the following materials in the Service Area: 166 1. Source Separated Targeted Recyclable Materials and Source Separated 167 Organic Materials generated at Commercial Premises; 168 2. Major Appliances and Specialty Recyclable or Reusable Materials generated at 169 Residential Premises; 170 3. Non-putrescible wastes placed in Drop Boxes. 71 4.02 LIMITATIONS ON SCOPE "-172 Agency may permit the Collection, Recycling or Disposal of any of the following 173 materials by Persons other than Contractor without seeking or securing any approval 174 from Contractor: 175 A. Solid Waste, Targeted Recyclable Materials, and Organic Materials which are 176 transported personally by the Owner or Occupant of the Premises at which they are 177 generated (or by his or her employees) to a processing or Disposal facility; 178 B. Targeted Recyclable Materials and Organic Materials which are Source Separated 179 by the Generator and donated to youth, civic, or charitable organizations; 180 C. Recyclable beverage containers delivered for Recycling under the California 181 Beverage Container Recycling Litter Reduction Act, Section 14500 et seq. 182 California Public Resources Code; 183 D. Animal waste and remains from slaughterhouse or butcher shops, grease waste, 184 and used cooking oil; 185 E. By-products of sewage treatment including sludge, sludge ash, grit, and 186 screenings; 187 F. Hazardous Waste, Household Hazardous Waste, and Infectious Waste; 188 G. Source Separated E-Scrap and Source Separated Universal Waste; 189 H. Organic Materials composted at Residential and Commercial Premises; 190 I. Materials generated by State facilities (including public schools), provided that the 91 Generator has arranged services with other Persons or has arranged services with **-192 the Contractor through a separate agreement; Franchise Agreement for Collection Services City of Burlingame Page 8 193 J. The incidental removal of Solid Waste when the primary service performed is either 194 of the following: 195 1. Landscaping, gardening, weed or refuse abatement, yard clean-up, or 196 grading of a lot; or 197 2. Construction, remodeling, or demolition of a building or structure. 198 199 K. Solid Waste generated at Residential Premises Collected on an infrequent, 200 unscheduled, "on-call" basis (other than On-Call Bulky Item Collection Service 201 scheduled by Customers per Section 5.12). 202 4.03 GEOGRAPHIC LIMITS ON CONTRACTOR'S OPERATIONS 203 Contractor was established specifically to perform services for some or all of the 204 SBWMA Member Agencies. The methodology established in this Agreement, and in 205 those between Contractor and other Member Agencies, for adjusting Contractor's 206 Compensation annually and allocating it among Member Agencies depends on accurate 207 financial and accounting records. For that reason, Contractor will limit its operations to 208 only SBWMA Member Agencies so that its annual financial reports will contain only 209 costs and revenues associated with service to those Member Agencies. 210 Affiliates of Contractor may perform services for other communities in San Mateo 211 County so long as they do not use Contractor's resources (equipment or labor) and so 212 long as costs associated with their operations are not included in Contractor's financial 213 statements. Franchise Agreement for Collection Services City of Burlingame Page 9 �214 ARTICLE 5 COLLECTION SERVICES 215 5.01 GENERAL 216 The work to be performed and services to be provided by Contractor includes the 217 furnishing of all labor, supervision, equipment, materials, supplies, and all other items 218 necessary to perform the work and provide the services described, at the times and in 219 the manner required by this Agreement. The enumeration of, and specification of 220 requirements for, particular items of labor, supervision, equipment, materials or supplies 221 shall not relieve Contractor of the duty to furnish all others, as may be required, whether 222 enumerated elsewhere in the Agreement or not. 223 Contractor shall perform the work and provide the services pursuant to this Agreement 224 in a thorough and professional manner so that the residents and businesses within the 225 Agency are provided reliable, courteous, and high-quality service at all times. The 226 enumeration of, and specification of requirements for, particular aspects of service 227 quality shall not relieve Contractor of the duty of accomplishing all other aspects in the 228 manner provided in this Article, whether such other aspects are enumerated elsewhere 229 in the Agreement or not. 230 Provided that this Agreement is executed on or before September 30, 2009, Contractor 231 agrees that it will have sufficient time to take all steps necessary to provide all services 232 described in this Article 5 commencing January 1, 2011. Contractor shall order 233 equipment, hire employees, obtain permits and licenses, initiate public education and 34 Recycling Blitz programs, and complete all of the steps necessary to implement an 235 orderly transition as specified in the Implementation Plan (Attachment L). 236 237 5.02 SOLID WASTE COLLECTION 238 Contractor acknowledges that the Agency is committed to diverting materials from 239 Disposal through the implementation of source reduction, reuse, Recycling, and 240 composting programs and that the Agency may, at some time in the future, implement, 241 in accordance with Section 15.12, new programs that may impact the overall quantity or 242 composition of Solid Waste to be Collected by Contractor. 243 A. Single-Family Dwelling (SFD). Contractor shall Collect Solid Waste from SFD 244 once per week from Contractor-provided Carts. Contractor shall provide 245 unscheduled Collection service within one (1) Business Day of Customer's request 246 and shall be entitled to bill Customer as specified in Attachment Q. Contractor shall 247 provide each Customer with Carts as specified in Section 8.05. Approximately one 248 (1) month prior to distribution of SFD Solid Waste Carts, Contractor shall mail a 249 notice to each SFD Customer indicating that the Customer will receive the default 250 Solid Waste Cart size specified in Attachment D, unless the Customer responds to 251 the notice (i.e., by mail, email, phone or website form) and requests an alternate 252 Cart size by selecting the preferred size. 253 Contractor shall Collect Carts Curbside unless: (i) the Occupant is provided a 254 Special Handling Service exemption; or, (ii) the Customer has requested Backyard N%..-255 Collection Service and has agreed to pay the premium service Rate approved by Franchise Agreement for Collection Services City of Burlingame Page 10 256 the Agency. The Rate charged by Agency shall be based on Contractor's cost as 257 specified in Attachment Q. In such case, Contractor shall Collect Carts from and 258 return Carts to the alternative service location (such as the side yard or backyard) 259 specified by the Customer. 260 The Contractor shall make reasonable accommodations with regard to provision 261 and servicing of Containers (e.g., Container size and type, placement of Containers 262 for Collection, etc.) at no additional cost to Customers who meet the Agency's 263 Special Handling criteria. Contractor will notify all Residential Customers annually 264 of the Special Handling and Backyard Collection Service options and submit, for 265 approval, a draft notification to Agency thirty (30) days prior to anticipated 266 distribution to Customers. New service recipients shall be notified upon signing up 267 for service of the Special Handling and Backyard Collection Service options. 268 Customers desiring Special Handling Service will be required to submit an 269 application, in a form approved by Agency. Contractor shall review applications to 270 determine whether the Customer meets Agency's eligibility criteria and shall provide 271 a written response within five (5) Business Days after receipt of the application. 272 Unless otherwise directed by Agency, Customers are eligible if they provide (i) 273 evidence of their "handicap status" by the California Department of Motor Vehicles 274 or (ii) evidence that no Occupant of the Residential Premises is physically able to 275 place Carts Curbside for Collection. 276 B. Multi-Family Dwellings. Contractor shall Collect Solid Waste from Multi-Family 277 Dwellings as frequently as scheduled by Customer, but not less than once per 278 week. Contractor shall provide unscheduled C61lection service within one (1) -� 279 Business Day of Customer's request and shall be entitled to bill Customer as 280 specified in Attachment Q. Customers must subscribe to a minimum service level 281 of three (3) times per week Collection in order to be eligible for Collection on 282 Saturday and/or Sunday. Contractor shall allow Multi-Family Dwelling Customers to 283 use Carts or Bins for Solid Waste Collection that are shared by the Occupants of 284 the Premises. Contractor shall provide one (1) or more Cart(s) or Bin(s) to such 285 Customers as requested by Customer, provided that no less than ninety-six (96) 286 gallons of Container capacity are provided for every five (5) dwelling units in the 287 Multi-Family Residential complex. Contractor shall provide each Customer with a 288 choice of one or more Carts or Bins as specified in Attachment D. 289 Contractor shall service, at no additional cost, Containers provided to MFD 290 Customers that are three (3) cubic yards or less in capacity or wheeled Containers, 291 that are stored in enclosures or on private or public property within fifty (50) feet of 292 access by Contractor's collection vehicle, if access to the Containers is paved and 293 the slope is less than seven percent (7%). Agency will make the final determination 294 on the slope of the access if a dispute arises between Customer and Contractor. 295 Contractor shall be entitled to bill MFD Customers for distance charges as specified 296 in Attachment Q for providing Collection service to Containers that are three (3) 297 cubic yards or less in capacity or wheeled Containers, that are located at distances 298 of fifty one (51) feet or more from access by Contractor's collection vehicle. 299 Contractor shall service, at no additional cost, Containers that are four (4) cubic 300 yards or larger in capacity, or do not have wheels, that are stored in a location that 301 is accessible by Contractor's collection vehicle. Contractor shall ensure that -� 302 Containers that are four (4) cubic yards or larger in capacity or do not have wheels, Franchise Agreement for Collection Services City of Burlingame Page 11 `--303 are placed by Contractor in a designated collection location that is agreed upon by 304 the Customer. 305 Contractor shall give special consideration when determining the Collection location 306 for Multi-Family Residential complexes to ensure that the flow of traffic is not 307 impeded and that it does not result in aesthetic degradation of an area. The 308 designated Collection location, if disputed by Customer or Contractor, shall be 309 determined by the Agency. Additionally, if in the Agency's opinion the location of an 310 existing Collection location is inappropriate, Agency may require the Customer or 311 Contractor to relocate the Collection Containers. 312 C. Commercial Premises. Contractor shall Collect Solid Waste from Commercial 313 Premises as frequently as scheduled by the Customer, but not less than once per 314 week. Contractor shall provide unscheduled Collection service within one (1) 315 Business Day of Customer's request and shall be entitled to bill Customer as 316 specified in Attachment Q. Customers must subscribe to a minimum service level 317 of three (3) times per week Collection in order to be eligible for Collection on 318 Saturday and/or Sunday. 319 Contractor shall service, at no additional cost, Containers provided to Commercial 320 Customers that are three (3) cubic yards or less in capacity or wheeled Containers, 321 that are stored in enclosures or on private or public property within fifty (50) feet of 322 access by Contractor's collection vehicle, if access to the Containers is paved and 323 the slope is less than seven percent (7%). Agency will make the final determination 124 on the slope of the access if a dispute arises between Customer and Contractor. 325 Contractor shall be entitled to bill Commercial Customers for distance charges as 326 specified in Attachment Q for providing Collection service to Containers that are 327 three (3) cubic yards or less in capacity or wheeled Containers, that are located at 328 distances of fifty one (51) feet or more from access by Contractor's collection 329 vehicle. 330 Contractor shall service, at no additional cost, Containers that are four (4) cubic 331 yards or larger in capacity, or do not have wheels, that are stored in a location that 332 is accessible by Contractor's collection vehicle. Contractor shall ensure that 333 Containers that are four (4) cubic yards or larger in capacity or do not have wheels, 334 are placed by Contractor in a designated collection location that is agreed upon by 335 the Customer. 336 Specifically, the Contractor shall offer the following Collection service 337 methodologies to Commercial Customers: 338 1. Individual Cart or Bin Service. Contractor shall allow each Commercial 339 Premises to use Carts, Bins, Compactors, or Drop Boxes for Solid Waste 340 Collection. Contractor shall provide each Customer with a choice of one (1) or 341 more Carts or Bins as specified in Section 8.05. 342 2. Centralized Bin or Cart Service. Contractor shall allow each Commercial 343 Premises to use Carts or Bins for Solid Waste Collection that are shared by the 344 Occupants of two (2) or more adjacent Commercial Premises. In such case, 345 Contractor shall provide one or more Carts or Bins as requested by the 346 Customer(s) provided that no less than ninety-six (96) gallons of Container 347 capacity is provided for every four (4) Commercial Premises. Contractor shall Franchise Agreement for Collection Services City of Burlingame Page 12 348 provide each Customer with a choice of one (1) or more Carts or Bins as 349 specified in Section 8.05. 350 3. Drop Boxes and Compactors. Contractor shall allow a Customer to use a Drop 351 Box or Compactor for Solid Waste Collection to meet the Customer's Disposal 352 needs. In such case, Contractor shall provide Customer with a choice of 353 Container capacities ranging from three (3) to forty (40) cubic yards (or similar 354 sizes). Contractor shall offer Customers the option to purchase or lease 355 Compactors through either the Contractor or an outside vendor. Regular 356 maintenance of Compactors shall be provided by Contractor (or outside 357 vendor) as frequently as needed to keep the Compactors in good working 358 order and functioning at high compaction levels. 359 D. Agency Facilities. Contractor shall Collect Solid Waste from Agency Facilities as 360 frequently as scheduled by the Agency, but not less than once per week. Agency 361 must subscribe to a minimum service level of three (3) times per week Collection in 362 order to be eligible for Collection on Saturday and/or Sunday. Specifically, the 363 Contractor shall offer the following Collection service methodologies to Agency 364 Facilities: 365 1. Individual Cart or Bin Service. Contractor shall allow each Agency Facility to 366 use Carts, Bins, Compactors, or Drop Boxes for Solid Waste Collection. 367 Contractor shall provide each Agency Facility with a choice of one (1) or more 368 Carts or Bins as specified in Attachment D. 369 2. Centralized Bin or Cart Service. Contractor shall allow each Agency Facility to 370 use Carts or Bins for Solid Waste Collection that are shared by the Occupants --� 371 of two or more adjacent Agency Facilities. In such case, Contractor shall 372 provide one or more Carts or Bins as requested by the Agency provided that 373 no less than ninety-six (96) gallons of Container capacity is provided for every 374 four (4) Agency Facilities. Contractor shall provide Agency with a choice of 375 one (1) or more Carts or Bins as specified in Attachment D for each Agency 376 Facility. 377 3. Drop Boxes and Compactors. Contractor shall allow Agency to use a Drop 378 Box or Compactor for Solid Waste Collection to meet the Agency's Disposal 379 needs. In such case, Contractor shall provide Agency with a choice of 380 Container capacities ranging from three (3) to forty (40) cubic yards (or similar 381 sizes). Contractor shall offer Agency the option to purchase or lease 382 Compactors through either the Contractor or an outside vendor. Regular 383 maintenance of Compactors shall be provided by Contractor (or outside 384 vendor) as frequently as needed to keep the Compactors in good working 385 order and functioning at high compaction levels. 386 4. Public Street Parks and Parking Lot Litter and Recycling Receptacles. 387 Contractor shall Collect Solid Waste from public litter receptacles located on 388 streets and in parking lots, and from public litter receptacles in parks that are 389 accessible for Curbside Collection. Contractor shall also Collect Solid Waste 390 from public Recycling receptacles in these locations, if the Recyclables have 391 been so Contaminated as to be unacceptable at the MRF as Recyclables. 392 Contractor shall also Collect Solid Waste that is contained in bags or boxes 393 and placed adjacent to public litter receptacles. These Collections will be made 394 between one (1) and seven (7) Days per week, as determined by Agency. Franchise Agreement for Collection Services City of Burlingame Page 13 '*�95 Contractor is responsible for notifying Agency if a public litter receptacle is 396 inoperable within twenty-four (24) hours of observing or being notified of the 397 defect. A list of public litter receptacles is included in Attachment B. Agency 398 shall annually be allowed to increase the number of public litter receptacles 399 provided Collection service by an additional five percent (5%) of the total 400 number of receptacles in service as of January 1 of each Rate Year at no 401 additional cost. The allocation of additional public litter receptacles placed in 402 service will accrue from year to year for the Term of this Agreement. 403 Contractor shall provide the Agency with the Collection services described above at the 404 service locations, service levels and frequencies identified in Attachment B. Contractor 405r shall provide and maintain Collection Containers for the Agency's use, with the 406 exception of public litter (or Solid Waste) and public Targeted Recyclable Materials 407 receptacles, which shall be provided and maintained by the Agency. Contractor shall 408 offer the type and size of Collection Containers that Contractor provides Commercial 409 Customers pursuant to Section 5.02.C. 410 Contractor may integrate Collection of Solid Waste, Targeted Recyclable Materials, and 411 Organic Materials from Agency Facilities with other Collection services in the Service 412 Area, provided that Contractor attributes estimated Tonnage Collected from Agency 413 Facilities separately from other Customers upon the Agency's request. 414 5.03 TARGETED RECYCLABLE MATERIALS COLLECTION x,,_15 Contractor shall Collect Targeted Recyclable Materials from Customers that have 416 Source Separated the Targeted Recyclable Materials from Solid Waste and placed 417 these materials in the Customer's Recyclable Materials Collection Container for 418 Collection by Contractor. 419 In accordance with Section 15.12, the Agency may direct that Contractor modify its 420 scope of service to include Collection of additional types of Recyclable Materials beyond 421 those materials defined as Targeted Recyclable Materials in Attachment A. If the 422 Agency directs Collection of additional Recyclable Materials, such Recyclable Materials 423 shall thereafter be considered Targeted Recyclable Materials and Contractor shall not 424 receive additional Contractor's Compensation for Collection service if the Targeted 425 Recyclable Materials are placed by Generator in the Recyclable Materials Container 426 unless Contractor can demonstrate that Collection of the additional material(s) requires 427 modification to Collection routes to accommodate the additional volume of the 428 material(s). 429 A. Single-Family Dwellings. 430 1. General. Once per week, Contractor shall Collect Single-Stream Targeted 431 Recyclable Materials from SFD. Contractor shall provide each SFD Customer 432 with one (1) Cart for Single-Stream Targeted Recyclable Materials. Contractor 433 shall provide each Customer with a Cart specified in Attachment D, unless 434 Customer requests an alternative Cart specified in Attachment D. Customer 435 can rent or purchase additional Targeted Recyclable Materials Carts from 136 Contractor and Contractor shall be entitled to bill Customer as specified in 07 Attachment Q. Purchased Carts shall become the property of Customer. Franchise Agreement for Collection Services City of Burlingame Page 14 438 Approximately one (1) month prior to distribution of SFD Targeted Recyclable 439 Materials Carts, Contractor shall mail a notice to each SFD Customer 440 indicating that the Customer will receive the default Targeted Recyclable 441 Materials Cart size specified in Attachment D, unless the Customer responds 442 to the notice (i.e., by mail, email, phone or website form) and requests an 443 alternate Cart size by selecting the preferred size. 444 Contractor shall Collect Carts Curbside unless the Customer is provided 445 Special Handling or Backyard Collection Service. In such case, Contractor 446 shall Collect Carts from and return Carts to the alternative service location 447 (such as the side yard or backyard) specified by the Customer. 448 2. Used Motor Oil and Used Motor Oil Filters. Contractor shall Collect Used 449 Motor Oil and Used Motor Oil Filters placed at the Collection location by 450 Customer for Collection in Contractor-provided or Contractor-approved 451 Containers. Contractor shall not be required to Collect more than five (5) 452 gallons of Used Motor Oil per Customer per Collection. Contractor shall 453 provide up to five (5) one-gallon translucent plastic Used Oil jugs with screw- 454 on tops for Used Motor Oil Collection and up to five (5) six (6) mil plastic zip- 455 close type bags for Used Motor Oil Filter Collection to SFD Customers, upon 456 Customer's request, within five (5) Business Days of such request, at no 457 additional cost to Customer. Information in English and Spanish, regarding the 458 Used Motor Oil and Used Motor Oil Filter Collection program and instructions 459 for the use and set out of the these materials shall be provided with the Used 460 Motor Oil jugs and Used Motor Oil Filter bags. Diversion of Used Motor Oil 461 shall be calculated with a conversion factor of one (1) gallon of Used Motor Oil 462 equaling seven (7) pounds. 463 3. Household Batteries and Cell Phones. Contractor shall Collect from SFD 464 Premises Household Batteries and Cell Phones placed on top of the 465 Recyclable Materials Cart in Contractor-provided or Customer-provided clear 466 zip-close or tie-close plastic bags clearly marked "Used Batteries and Cell 467 Phones. Contractor shall empty the bag at the point of Collection and leave it 468 to be reused by the Customer by placing it inside the Cart handle. Customers 469 will be notified to place all Household Batteries in a clear zip-close plastic bag; 470 tape the contacts of button cell batteries; and wrap Cell Phones in paper (for 471 protection) prior to placing in the plastic bag. While Customers will be 472 encouraged to follow the participation parameters, Contractor shall be required 473 to Collect if Customers do not follow these instructions. 474 Contractor shall Collect Targeted Recyclable Materials from SFD on the same day 475 that Solid Waste Collection is provided. 476 B. Multi-Family Residential Premises 477 1. General. Multi-Family Dwelling Customers that subscribe to Solid Waste 478 Collection service shall be entitled to Single-Stream Targeted Recyclable 479 Materials Collection at no additional charge, and Contractor shall provide the 480 level of service required by Multi-Family Dwelling Customers requesting 481 Recyclable Materials Collection services. Contractor shall provide each Multi- 482 Family Dwelling Customer with Containers for Single-Stream Targeted -� Franchise Agreement for Collection Services Page 15 City of Burlingame ''-483 Recyclable Materials Collection. At a minimum, Contractor shall provide twenty 484 (20) gallons per week of Container capacity for Single-Stream Targeted 485 Recyclable Materials Collection for every Multi-Family Dwelling at the 486 Premises. Contractor shall provide each Customer with Carts or Bins as 487 specified in Attachment D, as requested by the Customer. 488 Contractor shall Collect Single-Stream Targeted Recyclable Materials 489 Generated at Multi-Family Residential Complexes at least once per week or 490 more frequently, up to six (6) times per week, as scheduled by the Customer 491 provided that the Generator has Source Separated the Targeted Recyclable 492 Materials from Solid Waste and placed the materials in the appropriate 493 Contractor-provided Container. Contractor shall Collect Single-Steam 494 Targeted Recyclable Materials at the designated location agreed upon by 495 Contractor and Multi-Family Dwelling Customer. The designated Collection 496 location, if disputed by Customer or Contractor, shall be determined by the 497 Agency. Carts and Bins may be shared by the Occupants of the Multi-Family 498 Residential complexes. Contractor shall provide extra Carts for use in the mail 499 room of the Multi-Family Residential complexes if requested by the Customer. 500 2. Personal Recycling Tote-Bag Distribution. Upon receipt of a request for 501 Recycling Tote-Bags from a Multi-Family Dwelling Customer or Occupant, 502 Agency or SBWMA, Contractor shall: (i) deliver the Recycling Tote-Bags within 503 five (5) Business Days to the property Owner, property manager or Occupant 504 who requested the Recycling Tote-Bags; (ii) prior to complying with (i), contact 05 the property Owner or property manager directly by phone or in person to x''506 determine if additional Recycling Tote-Bags are needed and/or if they are 507 interested in a site assessment of the property; (iii) upon request for a site 508 assessment, ensure that a site assessment is done per the requirements set 509 forth in Section 7.05. Contractor shall provide notification to Agency and 510 SBWMA of the Day which the Tote Bags were delivered and to whom they 511 were delivered with submittal of Contractor's monthly reports per Section 9.05. 512 Contractor's monthly reports shall also include an inventory of Recycling Tote- 513 Bags in stock. 514 3 Household Battery and Cell Phone Collection. 515 a. Multi-Family Residential Complexes with individual Recycling Carts 516 for each dwelling unit. Contractor shall Collect Household Batteries 517 and Cell Phones placed on top of the Recyclable Materials Cart in 518 Contractor-provided or Customer-provided clear zip-close or tie- 519 close plastic bags clearly marked "Used Batteries and Cell Phones." 520 Customers will be notified to place all Household Batteries in a clear 521 zip-close plastic bag; tape the contacts of button cell batteries; and 522 wrap cell phones in paper (for protection) prior to placing in the 523 plastic bag. While Customers will be encouraged to follow the 524 participation parameters, Contractor shall be required to Collect the 525 Household Batteries and Cell Phones if Customers do not follow 526 these instructions. 327 b. Multi-Family Residential Complexes with shared or centrally stored '-528 Recycling Carts or Bins. Contractor shall provide one (1) or more Franchise Agreement for Collection Services City of Burlingame Page 16 529 centrally located Containers for the accumulation of Household 530 Batteries and Cell Phones. The number and location of the 531 Containers and the frequency of Collection shall be mutually agreed 532 to between the Contractor and the Owner or manager of the 533 complex. In the event the Owner or property manager requests that 534 the materials be Collected on an on-call basis, Contractor shall 535 provide that service at no additional cost. 536 4. Universal Implementation to All Customers. If requested by Agency, Contractor 537 shall make all necessary arrangements to implement this service within one 538 hundred and twenty (120) days and ensure the service is implemented within 539 the time frame agreed to by Agency and Contractor. To maximize participation 540 in the Single-Stream Targeted Recyclable Materials Collection program, the 541 Contractor shall distribute Recyclable Materials Containers to all Multi-Family 542 Dwelling Customers unless the Customer has notified the Contractor that they 543 do not want to participate in the Targeted Recyclable Materials Collection 544 program. 545 Prior to distribution of the Targeted Recyclable Materials Containers, the 546 Contractor shall conduct a site assessment of each Multi-Family Residential 547 complex. The site assessment shall include a meeting with the Owner or 548 property manager to describe the Single Stream Recycling Program; an 549 evaluation of the components of the waste stream generated at the complex, 550 identification of the volumes and types of Targeted Recyclable Materials 551 Collected at the complex and the development of an estimate of the volume of 552 Single Stream Targeted Recyclable Material that could be Collected at the 553 complex. Based on the results of the site assessment, Contractor will develop 554 an estimate of the Recycling capacity needs of the complex. 555 Using the information obtained from the site assessment and prior to 556 distribution of the Targeted Recyclable Materials Containers, the Contractor 557 shall mail each Multi-Family Dwelling Customer a notice describing the 558 "universal" implementation of Single-Stream Targeted Recyclable Materials 559 Collection; the number and size of Containers the Contractor plans to deliver to 560 the Multi-Family Dwelling Complex (based on Contractor's estimate of the 561 service volume needed for the complex with a minimum of twenty (20) gallons 562 per week per Multi-Family Dwelling); and a description of how Customers can 563 contact the Contractor and request additional or different sized Containers or 564 request not to participate in the Targeted Recyclable Materials Collection 565 program. If Contractor delivers Targeted Recyclable Materials Collection 566 Containers to a Multi-Family Residential Complex and the Customer requests a 567 change in the number or size of Containers or states that they do not want to 568 participate in the Collection program, Contractor shall adjust the service level 569 or remove the Collection Containers within ten (10) Business Days of the 570 Customer's request. For Multi-Family Dwelling Customers that subscribe to 571 Solid Waste Collection service during the Term of the Agreement, Contractor 572 shall automatically deliver and service Single-Stream Recyclable Materials 573 Collection Containers at the Multi-Family Residential Complex unless the 574 Customer specifically refuses to participate in the Targeted Recyclable 575 Materials Collection program. Franchise Agreement for Collection Services City of Burlingame Page 17 "576 C. Commercial Premises 577 1. General. Commercial Customers that subscribe to Solid Waste Collection 578 service shall be entitled to Collection of Targeted Recyclable Materials at no 579 additional charge, and Contractor shall provide the level of service required by 580 Commercial Customers requesting Recyclable Materials Collection services. 581 The level of service Contractor shall provide includes: Single-Stream Targeted 582 Recyclable Materials Collection or Source Separated Collection of cardboard, 583 mixed paper, food and recyclable beverage containers, or other Targeted 584 Recyclable Materials in a manner that best suits the needs of the Commercial 585 Customer. 586 Contractor shall Collect Single-Steam Targeted Recyclable Materials or other 587 Source Separated Recyclable Materials Generated at Commercial Premises at 588 least once per week or more frequently, up to seven (7) times per week, as 589 scheduled by the Customer provided that the Generator has Source Separated 590 the Targeted Recyclable Materials from Solid Waste and placed the materials in 591 the appropriate Contractor-provided Container. Contractor shall Collect 592 Targeted Recyclable Materials at the designated location agreed upon by 593 Contractor and Customer. The designated Collection location, if disputed by 594 Customer or Contractor, shall be determined by the Agency. 595 2. Collection Containers. Contractor shall allow Commercial Customers to select a 596 Collection service method that best suits the needs of its Premises. 597 Specifically, the Contractor shall offer the following choices to Commercial ;98 Customers: `599 a. Cart service. Contractor shall allow Commercial Customers to use Carts 600 for Targeted Recyclable Materials Collection. Contractor shall provide 601 each Customer with a choice of one (1) or more Carts as specified in 602 Section 8.05. 603 b. Bin service. Contractor shall allow Commercial Customers to use Bins for 604 Targeted Recyclable Materials Collection. Contractor shall provide each 605 Customer with a choice of one (1) or more Bins as specified in Section 606 8.05. 607 c. Shared Cart or Bin service. Contractor shall allow Commercial Customers 608 to use Carts or Bins for Targeted Recyclable Materials Collection that are 609 shared by the Occupants of two (2) or more Commercial Premises. In 610 such case, Contractor shall provide one (1) or more Carts or Bins to such 611 Premises as requested by Customer(s). In order to minimize the impact or 612 occurrence of illegal dumping and theft of Recyclable Materials, Contractor 613 will provide to Customer at no additional cost, locks for enclosures used to 614 store Containers or locks for Containers and ensure the enclosures or 615 Containers are locked after providing Collection Service. Only Contractor, 616 Agency, and the participating Customers will be provided with a key to the 617 enclosures and access to the Containers. The service schedule will be 618 prominently displayed on the enclosure and any changes in service will be 619 displayed on the enclosure by Contractor within one (1) Business Day of 620 making the change. If the Carts or Bins are left 'outside" in a designated 621 area, each Container will be locked (keyed alike), and only Contractor staff, �... 622 Agency staff, and the participating Customers will be provided with a key to Franchise Agreement for Collection Services City of Burlingame Page 18 623 access the Containers. At least once each calendar year, Contractor's --� 624 route supervisor will visit each of the participating Customers with shared 625 Containers, respond to any questions or concerns, check the areas for 626 contamination, litter, or damage and change the lock and distribute new 627 "keyed alike" keys to Agency staff and Customers. 628 629 d. Drop Boxes and Compactors. Contractor shall allow Commercial 630 Customers to use Drop Boxes or Compactors for Targeted Recyclable 631 Materials. In such case, Contractor shall provide Customers with a choice 632 of Container capacities as specified in Section 8.05. Contractor shall offer 633 Customers the option to purchase or lease Compactors through Contractor 634 or an outside vendor. Regular maintenance of Compactors shall be 635 provided by Contractor (or outside vendor) as frequently as needed to keep 636 the Compactors in good working order and functioning at high compaction 637 levels. 638 3. Universal Implementation of Service. Upon request by Agency, Contractor shall 639 "universally" implement Single-Stream Targeted Recyclable Materials Collection 640 services to all Commercial Customers in the same manner as that described for 641 Multi-Family Customers pursuant to Section 5.03.13.4. 642 D. Agency Facilities 643 1. General. Agency Facilities that subscribe to Solid Waste Collection service 644 shall be entitled to Collection of Targeted Recyclable Materials at no additional 645 charge, and Contractor shall provide the level of service required by Agency 646 Facilities requesting Targeted Recyclable Materials Collection services. The 647 level of service Contractor shall provide includes: Single-Stream Targeted 648 Recyclable Materials Collection or Source Separated Collection of cardboard, 649 mixed paper, food and recyclable beverage containers, or other Targeted 650 Recyclable Materials in a manner that best suits the needs of the Agency 651 Facility. 652 Contractor shall Collect Single-Steam Targeted Recyclable Materials or other 653 Source Separated Targeted Recyclable Materials Generated at Agency 654 Premises at least once per week or more frequently, up to seven (7) times per 655 week, as scheduled by the Agency provided that the Generator has Source 656 Separated the Targeted Recyclable Materials from Solid Waste and placed the 657 materials in the appropriate Contractor-provided Container. Contractor shall 658 Collect Targeted Recyclable Materials at the designated location agreed upon 659 by Contractor and Agency. 660 2. Collection Containers. Contractor shall allow Agency Facilities to select a 661 Collection service method that best suits the needs of its Premises. 662 Specifically, the Contractor shall offer the following choices to Member Agency 663 Facilities: 664 a. Cart service. Contractor shall allow Agency Facilities to use Carts for 665 Targeted Recyclable Materials Collection. Contractor shall provide each 666 Customer with a choice of one (1) or more Carts as specified in Attachment 667 D. Franchise Agreement for Collection Services City of Burlingame Page 19 "-b68 b. Bin service. Contractor shall allow Agency Facilities to use Bins for 669 Targeted Recyclable Materials Collection. Contractor shall provide each 670 Agency with a choice of one (1) or more Bins for each Agency Facility. 671 c. Centralized Cart or Bin service. Contractor shall allow Agency Facilities to 672 use Carts or Bins for Targeted Recyclable Materials Collection that are 673 shared by the Occupants of two (2) or more adjacent Agency Facilities. In 674 such case, Contractor shall provide one (1) or more Carts or Bins to such 675 Premises as requested by Agency. 676 d. Drop Boxes and Compactors. Contractor shall allow Agency Facilities to 677 use Drop Boxes or Compactors for the Collection of Targeted Recyclable 678 Materials. In such case, Contractor shall provide Agency with a choice of 679 Container capacities as specified in Section 8.05. Contractor shall offer 680 Agency the option to purchase or lease Compactors through Contractor or 681 an outside vendor. Regular maintenance of Compactors shall be provided 682 by Contractor (or outside vendor) as frequently as needed to keep the 683 Compactors in good working order and functioning at high compaction 684 levels. 685 3. Public Recycling Receptacles. Contractor shall Collect Recyclable Materials 686 from public Recycling receptacles located on streets and parking lots, and from 687 public Recycling receptacles in parks that are accessible for Curbside 688 Collection. Contractor shall also Collect Recyclable Materials that are contained 689 in bags or boxes and placed adjacent to public Recycling receptacles. These 590 Collections will be made between one (1) and seven (7) Days per week, as `,.091 determined by Agency. Contractor is responsible for notifying Agency if a public 692 Recycling receptacle is inoperable within twenty-four (24) hours of observing or 693 being notified of the defect. A list of public Recycling receptacles is included in 694 Attachment B. 695 5.04 ORGANIC MATERIALS COLLECTION 696 A. Single-Family Dwelling. Contractor shall Collect Source Separated Organic 697 Materials from SFD once per week. Collection of Organic Materials, Targeted 698 Recyclable Materials, and Solid Waste from the SFD shall occur on the same Day 699 each week. Contractor shall provide each Customer with one (1) Cart to be used 700 for storage and Collection of Organic Materials. Customer can rent or purchase 701 additional Organic Materials Carts from Contractor and Contractor shall be entitled 702 to bill Customer as specified in Attachment Q. Purchased Carts shall become the 703 property of Customer. Customer will be provided the opportunity to subscribe to 704 service levels of additional Organics Materials Carts and shall be billed in 705 accordance with Agency-approved rates for additional Organic Materials Carts 706 service. The Contractor shall provide each Customer a Cart as specified in 707 Attachment D, unless the Customer requests an alternative Cart size, in which 708 case, the Contractor shall provide an alternative Cart as specified in Attachment D. 709 Approximately one (1) month prior to distribution of SFD Organic Material Carts, 710 Contractor shall mail a notice to each SFD Customer indicating that the Customer 711 will receive the default Organic Materials Cart size specified in Attachment D, 712 unless the Customer responds to the notice (i.e., by mail, email, phone or website 713 form) and requests an alternate Cart size by selecting the preferred size. Franchise Agreement for Collection Services City of Burlingame Page 20 714 Contractor shall Collect Carts Curbside unless the Occupant is provided Special 715 Handling or Backyard Collection Service. In such case, Contractor shall Collect 716 from and return the Carts to the alternative service location (such as the side yard 717 or backyard) specified by the Customer. 718 Contractor shall provide each SFD with a Kitchen Pail at the inception of Collection 719 services. Contractor must submit Kitchen Pail specifications (including material and 720 design specifications, colors, and identification marks) to Agency for Agency's 721 written approval prior to submitting the order to the manufacturer. During the Term 722 of the Agreement, Contractor shall provide, within five (5) Business Days of request 723 by Occupant, Kitchen Pails to new SFD Customers and to SFD Customers whose 724 Kitchen Pail is lost, stolen, damaged, or destroyed (such replacement shall be 725 limited to one (1) per year per Customer at no additional cost). Residents will be 726 discouraged from placing Kitchen Pail Curbside for Collection and will be instructed 727 to deposit the contents of the Kitchen Pail into the Organic Materials Cart. 728 B. Multi-Family Premises. Multi-Family Dwelling Customers shall have the option of 729 voluntarily subscribing to Organic Materials or Plant Materials Collection services 730 and shall pay Contractor for such service in accordance with Agency-approved 731 Rates. Contractor shall Collect Source Separated Organic Materials or Plant 732 Materials from Multi-Family Residential Complexes that have subscribed to Organic 733 Materials or Plant Materials Collection service as frequently as scheduled by 734 Customer, but not less than once per week. Contractor shall provide each 735 Customer with a choice of Carts or Bins as specified in Attachment D. Contractor 736 shall Collect Organic Materials and Plant Materials at the location agreed upon by -� 737 Contractor and Customer. The designated Collection location, if disputed by 738 Customer or Contractor, shall be determined by the Agency. 739 C. Commercial Premises. Commercial Customers shall have the option of voluntarily 740 subscribing to Organic Materials or Plant Materials Collection services and shall pay 741 Contractor for such service in accordance with Agency-approved Rates. Contractor 742 shall provide Organic Materials or Plant Materials Collection service to any and all 743 Customers requesting service. Contractor shall Collect Organic Materials or Plant 744 Materials from Commercial Premises that have subscribed to Organic Materials or 745 Plant Materials Collection service as frequently as scheduled by Customer, but not 746 less than once per week. 747 Contractor shall allow Commercial Customers to select a Collection service method 748 that best suits the needs of its Premises. Specifically, the Contractor shall offer to 749 Commercial Organic Materials or Plant Materials Customers the Containers and 750 service choices that are similar to that offered for Commercial Solid Waste 751 Collection pursuant to Section 5.02.C. 752 D. Agency Facilities. Agency Facilities shall have the option of voluntarily subscribing 753 to Organic Materials or Plant Materials Collection services. 754 Contractor shall provide Organic Materials or Plant Materials Collection service to 755 Agency Facilities requesting service. Contractor shall Collect Organic Materials or 756 Plant Materials from Agency Facilities that have subscribed to Organic Materials or 757 Plant Materials Collection service as frequently as scheduled by Agency, but not -� 758 less than once per week. Franchise Agreement for Collection Services Page 21 City of Burlingame `/59 Contractor shall allow Agency to select a Collection service method that best suits 760 the needs of its Facilities. Specifically, the Contractor shall offer to Agency Facilities 761 the service choices that are similar to that offered for Commercial Solid Waste 762 Collection pursuant to Section 5.02.C. 763 E. Holiday Tree Collection. Contractor shall annually Collect Holiday Trees from 764 Residential Premises from December 26 through January 31. Contractor shall 765 provide this service on the regularly scheduled Organic Materials Collection Day. 766 Contractor will be required to Collect trees or pieces of trees, which are eight feet 767 (8') or less in length, void of tinsel, lights, ornaments, other decorations, and metal 768 or plastic stands (although flocked trees are acceptable) and are placed adjacent to 769 an Organic Materials Cart. Contractor shall make accommodations and provide 770 Collection service for Customers who are unable to cut trees into lengths of eight 771 feet (8') or less at no additional cost to the Customer or Agency. After January 31, 772 Contractor will be required to Collect trees placed inside an Organic Materials Cart. 773 These Collection parameters apply to both Special Handling and Backyard 774 Collection Service. 775 Contractor shall deliver a Bin or Drop Box for Holiday Tree Collection to Multi- 776 Family Residential Complexes upon request of the Owner or property manager. 777 Contractor shall provide this Collection service annually commencing December 26 778 and shall continue to provide this service as long as requests are submitted to 779 Contractor, at no additional cost to Customer(s) or Agency. The location for delivery 780 of the Bin or Drop Box shall be agreed upon by the Owner or property manager, '81 and Contractor shall remove the Bin or Drop Box, or Collect the trees loose, on the '-782 date requested by the Owner or property manager. If the use of a Bin or Drop Box 783 is not feasible, Contractor shall Collect the uncontainerized Holiday Trees from one 784 (1) or more designated consolidation locations (e.g., adjacent to a Solid Waste 785 enclosure) at each Multi-Family Residential Complex as determined by the Owner 786 or property manager. Contractor shall be required to Collect all trees or pieces of 787 trees, which are eight feet (8') or less in length, void of tinsel, lights, ornaments, 788 other decorations, and metal or plastic stands (although flocked trees are 789 acceptable) and are placed in the Bin or Drop Box or at the agreed upon location. 790 Contractor shall make accommodations and provide Collection service for 791 Customers who are unable to cut trees into lengths of eight feet (8') or less at no 792 additional cost to the Customer or Agency. 793 Prior to December of each year, Contractor shall notify all Multi-Family Dwelling 794 Customers of this program and explain the limitations to the program, the dates of 795 service, and any materials preparation or participation requirements, including the 796 option to order a Bin or Drop Box, or Collect the trees loose from designated 797 Collection locations. To encourage participation in this program, Contractor shall 798 not charge Customers an additional fee for this service. 799 5.05 SINGLE-FAMILY AND MULTI-FAMILY TWICE ANNUAL ON-CALL CURBSIDE 800 BULKY ITEM COLLECTION SERVICE 801 A. General. Contractor shall provide two (2) separate On-Call Curbside Bulky Item 802 Collection Service events to each Single-Family Dwelling Residential Premise 303 annually upon Owner or Occupant's request. Contractor will schedule the On-Call 804 Bulky Item Collection Service events on the regularly scheduled Solid Waste Franchise Agreement for Collection Services City of Burlingame Page 22 805 Collection Day for Single-Family Dwellings, no more than ten (10) Business Days 806 after the Owner or Occupant's request. 807 Contractor shall provide two (2) separate On-Call Bulky Item Collection Service 808 events to each Multi-Family Residential Complex annually upon Owner's or property 809 manager's request. Contractor will schedule the On-Call Bulky Item Collection 810 Service events no more than ten (10) Business Days after Multi-Family Residential 811 Complex Owner or property manager's request. Contractor will be required to 812 accommodate the Multi-Family Residential Complex's on-site constraints to ensure 813 convenient and safe collection events in an effort to maximize diversion and 814 minimize environmental impacts. 815 Contractor shall assist Owners and property managers of Multi-Family Residential 816 Complexes with scheduling events to effectively and efficiently provide the volume 817 of Collection service to which the complex is entitled annually based on the number 818 of Residential Premises at the complex. The provision of On-Call Collection of 819 Bulky Items is not intended to encourage or permit Multi-Family Residential 820 Premises to reduce the level of regularly scheduled Solid Waste Collection service 821 that has been previously provided to the complex. If Contractor, in its reasonable 822 business judgment, concludes that an Owner or property manager of a Multi-Family 823 Residential Complex is requesting On-Call Bulky Item Collection in order to reduce 824 its historical level of regular Solid Waste Collection service, Contractor may present 825 a factual report to Agency in support of an application to decline further requests for 826 On-Call Bulky Item Collection events at that complex for the remainder of the 827 calendar year. Agency will review the application and report and determine whether 828 Contractor may decline all subsequent requests from that complex for that calendar 829 year or may limit the number of On-Call Bulky Item Collection events it must 830 provide. Until Agency makes, and notifies Contractor of, its determination, 831 Contractor is not required to provide additional On -Call Bulky Item Collection 832 service events to the complex in question. 833 Contractor will allow the scheduling of On-Call Bulky Item Collection Service events 834 from January 2 through December 1 of each Rate Year. Contractor may provide 835 additional On-Call Bulky Item Collection Service events for a Customer beyond two 836 (2) per Rate Year, and shall be entitled to bill Customer as specified in Attachment 837 Q. Contractor is required to notify Customer if they have already received the 838 annually allocated two (2) Collection events within one (1) Business Day of 839 Customer request. If Contractor fails to notify Customer that they have received the 840 annually allocated two (2) Collection events, Contractor shall provide the service 841 and is not entitled to additional Contractor's Compensation from Customer or 842 Agency for a third or subsequent On-Call Bulky Item Collection Service event. 843 B. Accepted Materials. Residential Premises may place Solid Waste, Targeted 844 Recyclable Materials, and/or Organic Materials for Collection with the following 845 allowances: 846 1. Solid Waste, Recyclable Materials, Organic Materials — Up to two (2) cubic 847 yards of materials per event, provided that such materials, except as set forth 848 below have been bagged, boxed, bundled, or containerized by the Customer. 849 2. Major Appliances — One (1) large appliance per event (e.g., washing machine, 850 clothes dryer, refrigerator, freezer). Franchise Agreement for Collection Services City of Burlingame Page 23 X351 3. Bulky Items — One (1) large Bulky Item per event (e.g., reusable furniture, 852 mattresses, four tires). 853 4. E-Scrap — One (1) item per event (e.g., a computer, computer monitor or 854 television). 855 Contractor shall reject: liquids or sludges; dirt, rock, concrete or asphalt; materials 856 which exceed five (5) feet in length; commercial-sized refrigerators or freezers; 857 Construction and Demolition Debris; Hazardous Waste; or Infectious Waste. 858 Contractor may reject any individual item that weighs more than two-hundred (200) 859 pounds (excluding Major Appliances) unless Customer has paid, or has agreed in 860 advance to pay, an additional fee for service. Contractor may rejecBulk un- 861 containerized Discarded Materials with the exception of Major Appliances, y 862 Items, E-Scrap and large pieces of Organic Material such as tree limbs and 863 dimensional lumber. 864 C. Recycling and Reuse. Contractor shall Collect materials in a manner that 865 maximizes reuse, Recycling, composting, and diversion of materials from Disposal. 866 Contractor shall make reasonable efforts to ensure that diversion goals are met or 867 exceeded. Disposal of materials shall be the Contractor's last option. At a 868 minimum, Contractor shall divert from Disposal: cardboard, E-Scrap, useable 869 furniture, Major Appliances, mattresses, Organic Materials, wood waste, and other 870 reusable or Recyclable Materials. �71 D. Handling Major Appliances. Major Appliances, Universal Waste, and E-Scrap ,-. 872 shall be reused, Recycled or Disposed by Contractor in accordance with 873 requirements of Applicable Law and in accordance with the State of California 874 Department of Toxic Substances Control and California Integrated Waste 875 Management Board regulations. Any changes to such regulations made after the 876 Effective Date shall be addressed as though they are a Change in Law in 877 accordance with Section 11.05. 878 E. Collection and Processing Methods. 879 A Route Supervisor will visit each On-Call Bulky Item Collection location on the 880 morning of the scheduled Collection Day to evaluate the material being placed at 881 Curbside for Collection, and to verify that its Collection has been assigned to the 882 proper Collection vehicle. All materials that can be handled by the SFD Single- 883 Stream Recycling, Organic Materials, or Solid Waste route Collection vehicle would 884 be assigned to one of these vehicles for Collection, with the goal of maximizing 885 diversion. All Collection of Bulky Items will be assigned for Collection by a flatbed 886 truck, and the driver will segregate items Collected according to their suitability for: 887 (1) reuse or Recycling, and (2) Disposal, prior to their transport to the SRDC for 888 processing. Any remaining items will be Collected by a dispatched rear-loader 889 truck. Contractor shall utilize these procedures and vehicles in a manner that 890 provides the maximum diversion of the material Collected from the On-Call Bulky 891 Item Collection Service event. 892 893 5.06 AGENCY FACILITY ANNUAL ON-CALL BULKY ITEM COLLECTION SERVICE 894 Contractor shall provide all Agency Facilities an Annual On-Call Bulky Item 895 Collection service event. The On-Call Bulky Item Collection Service provisions set 896 forth `in Section 5.05 shall apply to the On-Call Bulky Item Collection Service Franchise Agreement for Collection Services Page 24 City of Burlingame 897 provided to Agency Facilities with the following exceptions for frequency and 898 service level/acceptable materials. 899 A. Frequency of Service. 900 Contractor shall provide this service to each Agency Facility annually. 901 B. Service Level/Accepted Materials. 902 Agency Facilities may place for Collection, Solid Waste, Recyclable Materials, 903 and/or Organic Materials with the following allowances: 904 1. Solid Waste — Contractor shall provide a six (6) cubic yard or smaller Bin upon 905 request. 906 2. Recyclable Materials, Organic Materials — Up to two (2) cubic yards of 907 materials per event, provided that such materials, except as set forth below 908 have been bagged, boxed, bundled, or containerized by the Customer. 909 2. Major Appliances — One (1) large appliance per event (e.g., washing machine, 910 clothes dryer, refrigerator, freezer). 911 3. Bulky Items — One (1) large Bulky Item per event (e.g., reusable furniture, 912 mattresses, four tires). 913 4. E-Scrap — One (1) item per event (e.g., a computer, computer monitor or 914 television). 915 Contractor shall reject: liquids or sludges; dirt, rock, concrete or asphalt; materials 916 which exceed five (5) feet in length; commercial-sized refrigerators or freezers; 917 Construction and Demolition Debris; Hazardous Waste; or, Infectious Waste. —1 918 Contractor may reject any individual item that weighs more than two-hundred (200) 919 pounds (excluding Major Appliances) unless Customer has paid, or has agreed in 920 advance to pay an additional fee for service, and Contractor may reject un- 921 containerized Discarded Materials with the exception of Major Appliances, Bulky 922 Items, E-Scrap and large pieces of Organic Material such as tree limbs and 923 dimensional lumber. 924 5.07 CONFIDENTIAL DOCUMENT DESTRUCTION SERVICE EVENT 925 Contractor shall provide one confidential document destruction service event in 926 Agency annually at no additional cost to Agency or Customers. Upon receipt of a 927 request to schedule a confidential document destruction event by Agency, 928 Contractor shall schedule the event within ten (10) Business Days. Contractor shall 929 provide adequate equipment and staffing necessary for the event and shall ensure 930 full destruction of confidential documents and other materials delivered by 931 Customers to the site of the event. Upon request from Agency, Contractor shall 932 provide additional events and shall be compensated by Agency as specified in 933 Attachment Q. 934 5.08 COLLECTION FOR LARGE VENUES AND EVENTS 935 Contractor shall provide Collection services, upon request, to any Venue and Event 936 within Service Area. Specifically, Contractor shall provide, at a minimum, Solid Waste 937 and Targeted Recyclable Materials Collection services, and shall also provide Organic 938 Materials Collection services if one (1) cubic yard or more of Organic Material is 939 generated per day at the Venue or Event. Contractor shall provide Collection as Franchise Agreement for Collection Services City of Burlingame Page 25 X940 frequently as requested by the Agency or the Event organizer. Contractor shall provide 941 an adequate number and type of Collection Container(s) for the Venue or Event and 942 shall coordinate its Collection services with Agency or Event organizer. Containers shall 943 be appropriately labeled to collect Solid Waste, Recyclable Materials or Organic 944 Material, per the requirements specified by the SBWMA. Upon request of the Agency or 945 the Event organizer, Contractor shall provide an adequate number of its employee(s) for 946 each Event to ensure all Solid Waste, Recyclable Materials and Organic Materials 947 Collection locations (i.e., Containers that are placed on-site for use by event patrons) 948 are kept clean and uncontaminated; to empty or exchange Containers as the need 949 arises; and to respond to overages or spills. 950 Within ten (10) Business Days of Contractor receiving a request to supply an Event with 951 Solid Waste, Targeted Recyclable Materials, Organic Materials Collection services, the 952 Contractor will either meet with or schedule a meeting with the Event organizer to 953 discuss the Event's parameters, including location, number of people attending, type of 954 Event, type of food being provided, and other related issues. Once parameters of the 955 Event are determined, proper Containers will be provided by Contractor, with emphasis 956 on recycling and diversion of the materials generated. 957 Contractor shall also supply and staff an information booth at each Venue and Event, 958 upon request from Agency. In addition, Contractor shall prepare and distribute 959 information to the public at Venues and Events describing the Collection options 960 available at the Venue or Event and promoting Recycling programs in the Agency, upon '161 request from Agency. All information prepared for distribution to Venues and Events ,,, 62 shall be approved by Agency prior to distribution. The Contractor shall report the 963 Tonnage of material Collected at each Venue and Event to the Agency and, upon 964 Agency request, to the Event organizer. 965 For Venues and Events which are required to comply with the Large Venues and Events 966 Recycling Law, codified at Public Resources Code Section 42648 et seq., Contractor 967 shall assist the Venue or Event organizer in preparing a Recycling plan and reporting all 968 information required by those provisions of the law. Contractor shall be required to 969 provide, at a minimum, the following information for each Venue or Event: 970 1. List of qualifying large Venues and Events in Service Area. 971 2. Physical and mailing address. 972 3. Contact name, address, phone number and email address. 973 4. Type of Venue or Event (e.g., museum, concert, sporting event). 974 5. Status of the Venue or Event written waste diversion/Recycling plan. 975 6. A description of the extent in which the plan has been implemented. 976 7. Service level provided (i.e., Solid Waste, Recyclable Materials and Organic 977 Materials). 978 8. Tons disposed and diverted, by material type. 979 9. Description of the scope and types of diversion programs provided. 980 10. Other information required by law. Franchise Agreement for Collection Services City of Burlingame Page 26 981 For Agency-sponsored Venues and Events listed in Attachment C, Contractor shall -� 982 provide the Collection services required by this Section at no charge to the Agency or 983 the Event organizer. Agency may add additional events to those listed in Attachment C 984 or modify this list if events change during the Term. If the number of events listed in 985 Attachment C increases during the Term, Contractor shall be entitled to receive 986 compensation for the number of events provided service each Rate Year based on the 987 cost for additional events specified in Attachment Q. For other Venues and Events, 988 Contractor may charge the Venue or Event organizer at the Rates established by 989 Agency for comparable On-Call Commercial Solid Waste and Organic Materials 990 Collection Service. Recyclable Materials Collection service shall be provided at no 991 additional cost to Events that subscribe to Solid Waste or Organic Materials Collection 992 service. 993 5.09 ABANDONED WASTE CLEANUP COLLECTION SERVICE 994 Contractor shall provide abandoned waste cleanup collection service within one (1) 995 Business Day of being notified by Agency, SBWMA, Customer, or Contractor's vehicle 996 drivers and route supervisors of the occurrence of abandoned waste or illegal dumping, 997 at no additional cost to Agency or Customer. If a report of abandoned waste or illegal 998 dumping is received by Contractor from a party other than Agency, Contractor shall 999 notify Agency of the reported location within one (1) Business Day and shall notify 1000 Agency of the estimated or actual time Contractor Collected the material or will Collect 1001 the material. This service shall require Contractor to Collect all abandoned or illegally 1002 dumped Solid Waste, Recyclable Materials and Organic Materials. This service does 1003 not include Collection of litter or litter abatement activities. 1004 For abandoned Recyclable Materials, Organic Materials, and Solid Waste, Contractor 1005 shall dispatch its regular route drivers to provide Collection service. For Bulky Items, 1006 Contractor shall dispatch a flatbed truck to provide Collection service. For other items 1007 including, but not limited to, Hazardous Waste, Household Hazardous Waste and 1008 Sharps, Contractor shall promptly notify Agency. 1009 All abandoned or illegally dumped materials Collected by Contractor shall be transported 1010 to the SRDC for processing, with the exception of scrap metal, and all related diversion 1011 statistics will be included in the appropriate reports to the Agency for all materials 1012 collected. Contractor shall be allowed to transport scrap metal directly to a licensed 1013 scrap metal recycler. Contractor shall, to the greatest extent possible, deliver all 1014 reusable non-metal abandoned waste items to organizations such as Society of St. 1015 Vincent de Paul and Goodwill Industries, or other organizations as directed by Agency. 1016 5.10 COATS FOR KIDS PROGRAM 1017 If requested by Agency, Contractor shall implement a "Coats for Kids Program" annually 1018 at no additional cost to Agency or Customers. The program shall consist of Contractor's 1019 drivers Collecting coats from Customers on their route over a one (1) to two (2) week 1020 period during the fall, as well as from Collection Containers placed by Contractor in 1021 various public locations specified by Agency, such as libraries, City Hall and businesses. 1022 The coats collected through this program will be sorted and laundered by Contractor, 1023 and arrangements made by Contractor for distribution to a local non-profit organization, 1024 such as the Family Services Agency. Prior to the implementation of the program, -� Franchise Agreement for Collection Services City of Burlingame Page 27 '-r025 Contractor shall present a detailed program plan to Agency for review and approval. All 1026 related diversion statistics will be included in the appropriate reports to the Agency. 1027 5.11 COMPOST GIVE-AWAY 1028 Contractor will coordinate with the Agency to host "Bring Your Own Bucket" (BYOB) 1029 giveaway of compost to residents. The BYOB compost giveaway will provide residents 1030 with free compost to enrich their gardens while also educating residents on the benefits 1031 of home composting. In addition, Contractor representatives will be on hand to 1032 distribute recycling guides and other educational material promoting waste reduction 1033 and recycling. Contractor is required to deliver to Agency thirty (30) cubic yards of 1034 compost annually in one (1) or two (2) deliveries at no additional cost. Agency shall 1035 provide Contractor ten (10) Business Days notice to deliver additional compost to 1036 Agency and Contractor shall be entitled to increase Contractor's Compensation for the 1037 Rate Year that the compost is delivered to Agency based on the costs specified in 1038 Attachment Q. 1039 5.12 FEE FOR SERVICE ON-CALL BULKY ITEM COLLECTION 1040 In addition to collections provided under Section 5.05 and Section 5.06, Contractor shall 1041 Collect Bulky Items from Single-Family, Multi-Family, and Commercial Customers and 1042 Agency Facilities and shall charge Customers the Rate established by Agency, which 1043 will cover the cost of service. The cost of service in 2011 is specified in Attachment Q. 1 044 Contractor will schedule fee for service On-Call Bulky Item Collection service on the Customer's regularly scheduled Collection Day or a Business Day scheduled by 1046 Contractor, no more than ten (10) Business Days after Customer's request. The fee for 1047 service On-Call Bulky Item Collection Service shall be limited to Collection of Bulky 1048 Items, Major Appliances, and E-Scrap. 1049 When a Commercial Customer calls to request and schedule the collection of Bulky 1050 Items, Contractor shall ask the caller to describe the items to be collected, and will 1051 provide the caller with an estimate of the cost to provide the service, based on Rates 1052 established by Agency. 1053 If Contractor determines that the volume of the described items can be accommodated 1054 in a single load on a flatbed boom truck equipped with a hydraulic-lift tailgate, Contractor 1055 shall instruct the caller to set out the items for pickup on the next regular Solid Waste 1056 Collection Day at a location where Solid Waste Collection occurs for the Customer, or at 1057 an alternative nearby location that avoids interference with regular Solid Waste, 1058 Recyclable Materials, or Organic Materials Collection service. 1059 If Contractor determines the volume of the described items cannot be accommodated in 1060 a single load on a flatbed boom truck, Contractor shall schedule a site visit and meet 1061 with the Customer within five (5) Business Days to: (1) develop a plan for the most 1062 effective mode and location for Collection service, a,nd (2) schedule the Collection 1063 service event. 1064 5.13 COMMUNITY DROP-OFF EVENTS 1065 Upon request by Agency, Contractor shall hold drop-off events at a location selected by 1066 the Agency to allow Residential Customers to drop off acceptable materials. Acceptable 1067 materials, which shall be determined by the Agency, may include one or more of the Franchise Agreement for Collection Services Page 28 City of Burlingame 1068 following: E-Scrap, Universal Waste, Recyclable Materials, Organic Materials, and 1069 Solid Waste. 1070 A. General Requirements. Contractor shall promote, manage, staff, and operate 1071 drop-off event(s) for Residential Customers scheduled for one (1) weekend Day 1072 (i.e., Saturday or Sunday) or two (2) consecutive weekend Days upon request from 1073 Agency. 1074 The Agency shall approve the date of the drop-off event and all advertisements or 1075 public announcements related to such event. Contractor shall promote the event 1076 by preparing Billing inserts to be included in each Customer's Bill and by 1077 advertising in a minimum of two local area newspapers as approved by the Agency. 1078 Contractor shall manage, staff, and supervise the event. Contractor shall provide 1079 traffic control and signage; inspect materials delivered to the event; separate 1080 materials; document each material type and quantity; transport Collected materials 1081 to reuse, processing or Disposal locations; and clean up the location at the end of 1082 the event. 1083 Contractor shall not charge Customers delivering materials to the event. 1084 B. Accepted Materials. Customers may deliver and Contractor shall accept Major 1085 Appliances, Bulky Items, Source Separated Targeted Recyclable Materials, Source 1086 Separated Organic Materials, tires (i.e., four (4) per Customer, removed from rims, 1087 no commercial tires), clean unpainted wood, construction and demolition debris, 1088 Universal Waste, E-Scrap and Solid Waste. Contractor shall be allowed to reject: 1089 liquids or sludges; cement; dirt; asphalt; concrete; Hazardous Waste; or Infectious ,1 1090 Waste. Contractor shall not establish a limit on the volume or weight of materials 1091 that a Customer may bring for Collection. 1092 C. Participants. Contractor shall verify Residents live in the Agency by reviewing a 1093 driver's license or utility bill. 1094 D. Event Hours. Contractor shall accept materials from Residential Customers over 1095 one (1) weekend Day (i.e., Saturday or Sunday) or two (2) consecutive weekend 1096 Days from 8:00 a.m. to 5:00 p.m. 1097 E. Recyclinq and Reuse. Contractor shall Collect materials in a manner that 1098 maximizes reuse, Recycling, composting, and diversion of materials from Disposal. 1099 Contractor shall make reasonable efforts to ensure that diversion goals are met or 1100 exceeded. Contractor shall separate Recyclable Materials and Organic Materials 1101 and transport such materials to the Designated Transfer and Processing Facility or 1102 an alternative processing site with advance authorization from Agency. Contractor 1103 shall coordinate with re-use vendor(s) to have a representative present at the drop- 1104 off event to accept donated clothes or other reusable items. Disposal of materials 1105 shall be the Contractor's last option. 1106 F. Handling Major Appliances. Major Appliances shall be reused, Recycled, or 1107 Disposed by Contractor in accordance with requirements of Applicable Law. Any 1108 changes to such regulations made after the Effective Date shall be addressed as 1109 though they are a Change in Law in accordance with Section 11.05. 1110 G. Scheduling Community Drop-Off Events. Upon request from Agency, Contractor 1111 shall promote, manage, staff, and operate community drop-off events described in 1112 this Section. If Agency exercises such right, it shall provide written notice to --� Franchise Agreement for Collection Services City of Burlingame Page 29 '7113 Contractor at least three (3) months before the first day of the requested drop-off 1114 event. The Contractor's Compensation attributable to Agency for such service 1115 shall be based on Contractor's proposed cost, provided in Attachment Q. 1116 H. Confidential Document Destruction Service. If requested by-Agency, Contractor 1117 shall provide confidential document destruction service at the drop off event(s). 1118 Contractor will provide adequate equipment and staffing necessary for the event 1119 and shall ensure full destruction of confidential documents and other materials 1120 delivered by Customers at the site of the event. This service will be provided by 1121 Contractor at no additional cost to the Agency or Customers. 1122 5.14 WEEK-LONG AGENCY-WIDE BULKY ITEMS COLLECTION SERVICE EVENT 1123 Upon request by Agency, Contractor shall hold a one (1) week-long Agency-wide Bulky 1124 Items Collection service event for Residential Customers. Agency shall select the dates 1125 of the event and provide Contractor four (4) months notice to provide this service. 1126 Contractor shall schedule these events for SBWMA Member Agencies on a first-come, 1127 first-serve basis, such that Contractor shall not be required to provide more than one (1) 1128 event any given week. The acceptable materials and participation requirements for the 1129 week-long Agency-wide Bulky Items Collection service event shall be the same as 1130 specified in section 5.05. Customers shall be provided this service on their regularly 1131 scheduled Solid Waste Collection Day. Contractor shall be entitled to increase 1132 Contractor's Compensation attributable to Agency pursuant to the costs specified in 1133 Attachment Q for the Rate Year that this service is provided with its submittal of the 134 annual Application. Franchise Agreement for Collection Services City of Burlingame Page 30 --o 1135 ARTICLE 6 TRANSPORTATION 1136 6.01 TRANSPORTATION OF COLLECTED MATERIALS 1137 Contractor shall transport and deliver all Solid Waste, Source Separated Targeted 1138 Recyclable Materials and Organic Materials Collected under this Agreement to the 1139 Designated Transfer and Processing Facility. Once Collected materials are deposited 1140 by Contractor at the Designated Transfer and Processing Facility, such materials shall 1141 become the property of SBWMA or Operator. The Contractor is not responsible for 1142 providing processing services except as provided in Section 6.04. 1143 6.02 LIMITATIONS ON CONTAMINATION 1144 A. General. The Agency is required by the Act and implementing regulations to 1145 divert a substantial portion of Solid Waste generated by residents, businesses 1146 and institutions within its Service Area from disposal at a landfill. In order to 1147 accomplish this, the Agency, through the SBWMA, is making a major investment 1148 in new recycling equipment and facilities at the Shoreway Recycling and 1149 Disposal Center. In order for that equipment to operate efficiently, the amount of 1150 Contamination in loads of Recyclable Materials, Organic Materials and Plant 1151 Materials delivered to the Shoreway Recycling and Disposal Center must be 1152 limited to specific levels. Moreover, higher levels of Contamination can make 1153 processed Recyclable Materials unmarketable or substantially reduce the price 1154 that purchasers are willing to pay. The cost that the SBWMA must charge users 1155 of the Shoreway Recycling and Disposal Center (including Agency) is directly --� 1156 affected by the amount of revenue generated by sales of Recyclable Materials 1157 processed by its Operator. Therefore, for both environmental and financial 1158 reasons, it is important that Contractor place a high priority on ensuring that 1159 Contamination in loads of Recyclable Materials, Plant Materials and Organic 1160 Materials delivered to the Shoreway Recycling and Disposal Center is minimized. 1161 Contractor shall work collaboratively with Agency and SBWMA to accomplish this 1162 and will implement the specific measures described in this Section and Section 1163 6.03. 1164 B. Disincentive Payments Based on Quarterly Performance. The maximum 1165 contamination levels for each category of Recyclable Materials, Plant Materials 1166 and Organic Materials are specified in Table 1: Table 1 Material Category Maximum Contamination Level (% by weight) Commercial Source Separated or Targeted 8% Recyclable Materials MFD and Commercial Plant Materials 5% Single-Family Organic Materials 50%/. Commercial Organic Materials 10% Single-Family Targeted Recyclable Materials 20%' Franchise Agreement for Collection Services City of Burlingame Page 31 (Rate Year One) Single-Family Targeted Recyclable Materials TBD2 (Years Two - Ten) 1167 Disincentives shall only be assessed for the last six (6) months of Rate Year 1168 One. 1169 2 "TBD" means "to be determined" and shall equal the arithmetic average of the 1170 Measured Contamination Levels calculated for four (4) quarters of samples 1171 of Single-Family Targeted Recyclable Materials taken pursuant to 1172 Attachment E-2 during Rate Year One (2011). 1173 The Measured Contamination Level for each category will be determined through 1174 sampling of loads of Recyclable Materials, Organic Materials, and Plant Materials 1175 generated within the SBWMA Service Area and delivered to the Shoreway 1176 Recycling and Disposal Facility. The methodology for sampling is set forth in 1177 Attachment E-2. For purposes of assessing performance disincentives, the 1178 Contamination Level of each material category shall be the arithmetic average of 1179 the Measured Contamination Level of the samples of such material category 1180 taken during each calendar quarter pursuant to Attachment E-2. Under no 1181 circumstances shall samples taken pursuant to Section 6.02.0 be used for 1182 purposes of assessing performance disincentives. 1183 If the Measured Contamination Level for a material category in any quarter '84 exceeds the applicable maximum Contamination Level in Table 1, Contractor 11_n185 shall be assessed disincentives in the amounts specified in Attachment 1 1186 (Performance Incentives and Disincentives). Contractor shall remit 1187 Contamination-related disincentive payments to SBWMA quarterly, as provided 1188 in Section 9.06. 1189 No disincentive will be assessed for exceeding the maximum Contamination 1190 Level for Single Family Targeted Recyclable Materials during the first six (6) 1191 months of Rate Year One (2011). 1192 The maximum Contamination Level for Single-Family Targeted Recyclable 1193 Materials applicable during Rate Years Two (2012) through Ten (2020) shall be 1194 equal to the arithmetic average of the Measured Contamination Levels 1195 calculated for four (4) quarters of samples of Single-Family Targeted Recyclable 1196 Materials taken pursuant to Attachment E-2 during Rate Year One (2011). (As 1197 provided in Attachment E-2, twelve (12) such samples will be taken in each 1198 calendar quarter and forty eight (48) such samples will be taken each year, 1199 unless Contractor requests and pays for additional samples to be taken pursuant 1200 to Attachment E-2, Section 3.) 1201 C. Inspecting for Excessive Contamination in Single Loads of Recvclable 1202 Materials. 1203 The Operator will inspect loads of materials delivered to the Shoreway Recycling 1204 and Disposal Center. The Operator may set aside for sampling (i) a load of 205 Source Separated or Targeted Recyclable Materials that appears to contain X1206 more than fifteen percent (15%) contamination, and (ii) a load of Organic Franchise Agreement for Collection Services City of Burlingame Page 32 1207 Materials that appears to exceed the applicable maximum contamination level of 1208 five percent (5%) or ten percent (10%). 1209 When setting aside a load for sampling, the Operator will document the truck 1210 number, the date and time of delivery, and will take a photograph of the load. 1211 The methodology for sampling of single loads is set forth in Attachment E-1. 1212 D. Supplemental Processing Fee for Excessive Contamination in Salvageable 1213 Single Loads of Recyclable Materials. 1214 1. Material Delivered to MRF. If a load of Source Separated or Targeted 1215 Recyclable Materials is determined based on testing pursuant to Section 1216 6.02.0 to contain contamination in excess of the levels specified in Table 2, 1217 but is determined by Operator or SBWMA to be salvageable, Contractor will 1218 be required to pay SBWMA a supplemental processing fee of $25.00 per ton 1219 for the tons exceeding the maximum contamination level. 1220 2. Material Delivered to Transfer Station. If a load of Organic Materials is 1221 determined based on testing pursuant to Section 6.02.0 to contain 1222 contamination in excess of the levels specified in Table 1, but is determined 1223 by Operator or SBWMA to be salvageable, Contractor will be required to pay 1224 SBWMA a supplemental processing fee of $7.00 per ton for the tons 1225 exceeding the maximum contamination level. Table 2 —� Material Category Maximum Contamination Level (% by Weight) Commercial Source Separated or Targeted 15% Recyclable Materials Single Family Targeted Recyclable Materials 15% 1226 1227 The supplemental processing fees for Source Separated or Targeted Recyclable 1228 Materials and Organic Materials will be adjusted in subsequent years by the 1229 same percentage that the MRF Processing Fee described in Section 7.03 of the 1230 2009 agreement between SBWMA and South Bay Recycling LLC for operation 1231 of the Shoreway Facility is adjusted each year. 1232 E. Payment of Transportation and Disposal of Excessive Contamination in 1233 Unsalvageable Single Loads. 1234 1. Material Delivered to the MRF. If a load of Source Separated or Targeted 1235 Recyclable Materials is determined based on testing pursuant to Section 1236 6.02.0 to contain contamination in excess of the levels specified in Table 2, 1237 and is determined by Operator or SBWMA to be unsalvageable (i.e., the 1238 entire load will be disposed of at the Designated Disposal Site), Contractor 1239 shall reimburse SBWMA for the cost of transportation and disposal of the 1240 weight of the load minus the weight of the maximum contamination level. 1241 For example, if the maximum contamination level is 15% and a 10 Ton load Franchise Agreement for Collection Services City of Burlingame Page 33 i242 is determined to contain 30% Contamination, and is unsalvageable, the 1243 Contractor will be responsible for the cost of transportation and disposal of 1244 8.5 Tons (e.g., 10 Tons x 85% = 8.5 Tons). The transportation cost shall be 1245 the Operator's then-current cost per Ton for delivery of loads of that material 1246 to the Designated Disposal Site. The disposal cost shall be the then-current 1247 cost per Ton at the Designated Disposal Site. 1248 2. Material Delivered to the Transfer Station. If a load of Organic Materials is 1249 determined based on testing pursuant to Section 6.02.0 to contain 1250 contamination in excess of the levels specified in Table 3, and is determined 1251 by Operator or SBWMA to be unsalvageable, (i.e., the entire load will be 1252 disposed of at the Designated Disposal Site), Contractor shall reimburse 1253 SBWMA for the cost of transportation and disposal of the weight of the load. 1254 The transportation cost shall be the Operator's then-current cost per Ton for 1255 delivery of loads of that material to the Designated Disposal Site. The 1256 disposal cost shall be the then-current cost per Ton at the Designated 1257 Disposal Site. Table 3 Material Category Maximum Contamination Level (% by Weight) MFD and Commercial Plant Materials 5% Single Family Residential.Organic Materials 5% �.. Commercial Organic Materials 10% 1258 1259 F. Aqencv Directed Change in Controlling Contamination 1260 If Agency requests or directs Contractor to reduce the number or frequency of 1261 non-collection notices, courtesy notices, non-collection events or public 1262 education and outreach activities described in Section 6.03 and sampling of 1263 individual loads from Agency pursuant to Section 6.02.0 thereafter results in the 1264 imposition by SBWMA of supplemental processing fees under Section 6.02.D or 1265 transportation and disposal reimbursements under Section 6.02.E, Agency shall 1266 reimburse Contractor for such payments within thirty (30) days of receiving a 1267 request for reimbursement, together with supporting documentation (e.g., reports 1268 on sampling, and evidence of imposition of assessment by SBWMA and 1269 Contractor's payment to SBWMA). 1270 If Agency has requested or directed Contractor to reduce the number or 1271 frequency of non-collection notices, courtesy notices, non-collection events, or 1272 public education and outreach activities described in Section 6.03, and 1273 Contractor is thereafter assessed disincentives under Section 6.02.13 for 1274 exceeding a maximum contamination level on a quarterly basis, Agency shall 1275 reimburse Contractor for its proportional contribution to the excessive level of 1276 contamination. That proportional contribution shall be determined by 277 extrapolating the results of single load sampling of Agency loads performed '*—i278 under Section 6.02.0 during the quarter in question to the total amount of Franchise Agreement for Collection Services City of Burlingame Page 34 1279 tonnage in the specific material category for which Contractor has been 1280 assessed a disincentive. For example, samples of Commercial Recyclable 1281 Materials delivered from Agency during a quarter average 10% Contamination 1282 (i.e., in excess of the 8% maximum contamination level), the Agency will 1283 reimburse Contractor for an amount calculated as follows: 1284 [$ per Ton disincentive payment] x [total Tons of Commercial 1285 Recyclable Material delivered from Agency during quarter] x 2% 1286 [10% - 8%] 1287 Agency shall pay Contractor the amount due within thirty (30) days of receiving a 1288 request for reimbursement, together with supporting documentation (e.g., reports 1289 on sampling, reports on total tonnage of material in relevant category delivered 1290 from Agency, and evidence of assessment of disincentive by SBWMA and 1291 Contractor's payment to SBWMA). 1292 6.03 CONTRACTOR METHODS OF CONTROLLING CONTAMINATION 1293 A. General. Contractor shall assist in controlling Contamination levels by helping to 1294 educate Customers on acceptable and non-acceptable materials, by monitoring 1295 the contents of Collection Containers and by refusing to Collect Containers of 1296 Targeted Recyclable Materials, Plant Materials and Organic Materials that 1297 appear to exceed the maximum contamination levels in Section 6.02 Table 1, all 1298 as and to the extent set forth in this Section 6.03. 1299 Drivers that dismount from Collection vehicles in order to empty Containers shall 1300 lift the Container lid and observe the contents. If Contamination appears to be 1301 present in excess of the applicable maximum contamination level, the driver will 1302 not empty the Container, but will instead affix a "non-collection notice." The non- 1303 collection notice shall (i) inform the Customer of the reason(s) for non-collection, 1304 (ii) include the date and time the notice was left, and (iii) describe the premium 1305 charge to Customer for Contractor to return and Collect the Container after 1306 Customer removes the contamination. The driver will document the non- 1307 collection event and a customer service representative will update the 1308 Customer's computerized account record to note the event. Upon request from 1309 Customer, Contractor shall Collect Carts that received non-collection notices 1310 within one (1) Business Day of Customer's request if the request is made at least 1311 two (2) Business Days prior to the regularly scheduled Collection day. 1312 Contractor shall be entitled to compensation for the extra Collection service 1313 event based on the costs specified in Attachment Q only if Contractor notifies 1314 Customer of the premium charge for this service at the time the request is made 1315 by Customer. 1316 Drivers providing automated collection service shall observe, via the hopper 1317 video camera and monitor system, the contents of the Cart as it is being emptied 1318 into the vehicle. If the driver observes Contamination in excess of the applicable 1319 maximum contamination level, the driver shall affix a "courtesy notice" to the 1320 emptied Cart. The courtesy notice shall (i) inform the Customer of the observed 1321 presence of unacceptable levels of Contamination, (ii) include the date and time 1322 the notice was left, (iii) describe the premium charge to Customer for Contractor -� 1323 to return and Collect contaminated Containers after Customer removes the Franchise Agreement for Collection Services City of Burlingame Page 35 X324 contamination. The next day on which that Customer is to receive service, the 1325 driver shall dismount the Collection vehicle, lift the lid of the Cart and visually 1326 inspect the contents. If the driver determines that the Cart again contains excess 1327 Contamination, the Cart will not be collected. Instead, the driver will record the 1328 non-collection event in the on-board computer system and shall affix a non- 1329 collection notice to the Cart. 1330 If a driver observes Hazardous Materials in an uncollected Container, the driver 1331 shall record that observation in the on-board computer system and also inform 1332 the route supervisor. The route supervisor shall investigate and initiate 1333 applicable action within one (1) Business Day. 1334 Whenever a Container at a Commercial or a Multi-Family Dwelling complex 1335 Customer is not collected, Contractor shall contact the Customer on the 1336 scheduled Collection Day by telephone to explain why the Container was not 1337 collected. Whenever a Container is not Collected because of excess 1338 Contamination, a customer representative will contact the Customer to discuss, 1339 and encourage the Customer to adopt, proper materials-preparation and 1340 separation procedures. 1341 B. Periodic Route Audits. Contractor shall conduct a route audit of any route from 1342 which two (2) or more loads are found based on testing pursuant to Section 1343 6.02.0 to exceed the applicable maximum contamination levels set forth in 344 Section 6.02 Table 1 during any thirty (30) day period, as well as any other route 45 whose loads consistently exceed the maximum contamination levels. 1346 When a route is identified as requiring a route audit, Contractor will provide a 1347 route auditor to precede the Collection vehicle and physically examine the 1348 contents of each Container or Cart prior to emptying. The route auditor shall 1349 affix non-collection notices to at least ninety percent (90%) of all Containers that 1350 contain Contamination in excess of applicable maximum contamination levels. 1351 Contractor shall submit a monthly route audit report within five (5) Business Days 1352 after the end of each route audit that has been conducted during the previous 1353 month. The report shall describe in detail Contractor's conduct of the audit, as 1354 well as the public education and outreach activities that it employed to encourage 1355 and facilitate changes in Customer behavior that will reduce Customers 1356 discarding Contamination in Containers designated for Recyclable Materials or 1357 Organic Materials. 1358 The audit of a route shall continue for a period of four (4) consecutive weeks 1359 after the route has been identified as requiring an audit under the first paragraph 1360 of this Section 6.03.B. 1361 6.04 PROCESSING OF OTHER MATERIALS 1362 Upon request by Agency, and with the prior approval of SBWMA, the Contractor shall be 1363 responsible for, or shall arrange for, processing, Recycling, and/or reuse of Bulky Items, 364 Major Appliances, and Specialty Recyclable or Reusable Materials (excluding X365 Construction and Demolition Debris) Collected pursuant to this Agreement. Franchise Agreement for Collection Services Page 36 City of Burlingame 1366 ARTICLE 7 OTHER SERVICES 1367 7.01 CUSTOMER BILLING 1368 A. Billing. Contractor shall prepare and mail Bills for services provided by Contractor 1369 and shall collect Customer payments. 1370 1. Frequency. Contractor shall Bill Single-Family Customers quarterly in amounts 1371 equal to the Rate for service for a three (3) month period (i.e., using a quarterly 1372 format), unless the Agency requests a more frequent Billing interval in which 1373 case the Contractor shall be entitled to a reasonable adjustment in its 1374 compensation related to the additional costs for the Agency-directed change in 1375 billing frequency. Contractor shall issue Single-Family Residential Bills three 1376 (3) months in advance in a manner such that one-third (1/3) of SFD Customers 1377 are Billed each month. Contractor shall bill Multi-Family Dwelling and 1378 Commercial Customers monthly in arrears in the amount equal to Customers' 1379 subscribed Rate for service for a one (1) month period. 1380 2. Automated Billing and Payment. In an effort to reduce paper waste, Contractor 1381 shall make available to all Customers an automated Billing and payment 1382 system. This system should be website-based and allow Customers to view 1383 and pay Bills through Contractor's website. Through the Contractor's website, 1384 Customers may request to cease paper Billing and receive all bills through e- 1385 mail and/or Contractor's website. Contractor will ensure that the electronic 1386 Billing and payment website conforms to industry-standard practices for 1387 electronic commerce security. However, Contractor must ensure that these 1388 Customers are compiled in a list to ensure that Billing inserts are mailed 1389 directly. 1390 3. Bill Format. Contractor shall Bill Customers using a Bill format (i.e., post- card 1391 Billing format or conventional envelope/insert) approved by the Agency, if 1392 Customer does not opt-out by requesting use of the automated Billing and 1393 payment system. Contractor shall promote the website-based Billing and 1394 payment system on all paper Bills sent to Customers. Agency shall have the 1395 right to revise the Billing format (e.g., size, font, frequency, etc.) and to itemize 1396 certain charges and to review the Billing procedures. Contractor shall be 1397 compensated for any cost increases that result from the Agency-directed 1398 change to the Billing format. 1399 4. Records. Contractor shall maintain, for inspection by the Agency, copies of 1400 Customer Billings and receipts, in chronological order, for a period of five (5) 1401 years after the date of service. Contractor shall maintain those records in 1402 electronic format. SBWMA and Agency staff or representatives shall be given 1403 access to such records upon one (1) Business Day notice. 1404 5. Rates. Agency shall establish, by resolution, Rates for the types of service 1405 provided as described in Section 11.07. Contractor shall Bill and collect at 1406 those Rates. 1407 6. Service Stops. Contractor shall allow Customers to suspend service and 1408 Billings when the Premises are unoccupied. Single-Family Residential 1409 Customers may suspend service for a minimum of one (1) Service Day on a 1410 maximum of three (3) occasions each Rate Year. Commercial Customers may 1411 suspend service for a minimum of two (2) Service Days on a maximum of six Franchise Agreement for Collection Services City of Burlingame Page 37 '412 (6) occasions each Rate Year. Multi-Family Customers may not suspend 1413 service without prior written approval from Agency. The Billings for both 1414 Residential and Commercial Customers shall be prorated by Contractor in 1415 accordance with Customer's requests to suspend service. 1416 B. Delinquent Payment. Residential Customers will be considered delinquent sixty 1417 (60) Days after start of the quarter in which the services are provided and Multi- 1418 Family Dwelling and Commercial Customers will be considered delinquent thirty 1419 (30) Days after payment is due. Contractor shall address the issue of delinquent 1420 payment as specified in Attachment H. 1421 C. Local Office. Contractor shall maintain a local office in the Shoreway Recycling 1422 and Disposal Center for acceptance of in-person payment of bills. At the local 1423 office, Contractor shall accept as payment personal checks, money orders, 1424 cashiers checks, and credit cards. The local office shall be open for business from 1425 8:00 a.m. until 5:00 p.m. Monday through Friday, exclusive of Holidays. 1426 D. Contractor Revenue Collection. Contractor shall collect revenue for services 1427 described herein on behalf of the Agency. Revenues collected on behalf of the 1428 Agency or SBWMA shall be handled as described in Article 11 of this Agreement. 1429 E. Review of Billings. Contractor shall review its Billings to Customers, issued 1430 pursuant to Section 7.01.A. The purpose of the review is to determine that the 131 amount which Contractor is Billing each Customer is correct in terms of the level of �32 service (i.e., frequency of Collection, size of Container, location of Container) being 1433 provided to such Customer by Contractor. Contractor shall review Customer 1434 accounts not less than once every three (3) calendar years for each Commercial, 1435 Multi-Family Dwelling and SFD Customer, unless Agency shall direct Contractor to 1436 do so more frequently. Contractor shall submit to Agency a written report of the 1437 status of its review annually no later than forty-five (45) Days after the end of each 1438 calendar year. The intent of this Section is for Agency to receive reports on an 1439 annual basis for one-third (1/3) of all Customer accounts, and for all Customer 1440 accounts to be reviewed every third year of the Agreement. The scope of the 1441 review and the reviewer's work plan shall be submitted to Agency for approval no 1442 later than six (6) months before the submission of the first report. 1443 F. Agency or SBWMA Billing Review. Contractor acknowledges that Agency or 1444 SBWMA may perform, or cause to be performed, Billing reviews periodically. 1445 Contractor agrees to participate and cooperate with SBWMA and Agency and its 1446 agents to accomplish these reviews and conduct any data collection and report 1447 preparation that may be requested. The Contractor's full cooperation with these 1448 reviews may include, but is not limited to: allowing Agency or SBWMA staff or 1449 consultants to ride along with drivers in Collection vehicles during daily Collection 1450 operations; providing for interviews of personnel at all levels, with or without 1451 management oversight; providing reporting. related to franchised operations 1452 available through Contractor's automated systems; and adjusting routing, public 1453 information, outreach, or program availability based upon the recommendations of 1454 the audit, if approved by the SBWMA or Agency. X1455 G. Privacy, of Customer Information. Contractor shall not distribute or sell 1456 Customer, Owner, or Occupant information such as names, addresses, and Franchise Agreement for Collection Services Page 38 City of Burlingame 1457 telephone numbers to other Persons with the exception of distribution to the 1458 Agency, SBWMA, or its agents for reporting and contract compliance purposes and 1459 distribution to Contractor's Billing agent (if Contractor uses a Related Party Entity or 1460 Subcontractor for Billing purposes). 1461 7.02 CUSTOMER SERVICE 1462 Contractor is responsible for ensuring that all staff and Customer Service 1463 representatives (CSR) maintain a professional and courteous demeanor when in contact 1464 with Agency, SBWMA and the public. Contractor shall be responsible for all employee 1465 interactions with Customers, SBWMA, and Agency staff. Contractor is required to 1466 ensure that its Customers are consistently treated courteously and are presented with 1467 timely, responsive and thorough solutions to problems and requests for information. 1468 Contractor shall meet monthly to discuss compliance with the Customer Service 1469 standards described herein if requested by Agency. 1470 A. Local Office 1471 Contractor shall operate a local office at the Shoreway Recycling and Disposal 1472 Center, located at 225 Shoreway Road, San Carlos. Office hours shall be at a 1473 minimum, from 8:00 a.m. to 5:00 p.m., Monday through Friday, exclusive of 1474 Holidays. Contractor shall be responsible for ensuring that a qualified 1475 representative is available at the local office during office hours to communicate 1476 with the public and accept Bill payments from Customers. Contractor shall offer bi- 1477 lingual customer service at the local office by employing CSR's with English and 1478 Spanish language capabilities. The local office and customer service telephone 1479 number(s) shall either be a local or toll free call. 1480 Contractor's telephone system shall adequately handle the volume of calls typically 1481 experienced on the busiest days. Contractor shall have a company representative, 1482 an answering service, or voice-mail system available for calls received during non- 1483 business hours and Holidays. 1484 Contractor shall employ sufficient customer service staff and management 1485 practices to ensure that the Average Speed of Answer is equal to or less than thirty 1486 (30) seconds and the maximum Hold Time is ninety (90) seconds or less. 1487 Contractor will be required to track all informational requests so that appropriate 1488 public outreach materials can be designed to target commonly asked questions. 1489 Contractor shall be responsible for promoting use of the Contractor's website for 1490 scheduling of On-Call Collection Service events and obtaining answers related to 1491 common informational requests through: (i) public education and promotion 1492 materials; and (ii) a recorded message Customers will hear while on-hold with the 1493 customer service department. 1494 Contractor shall maintain and publicize an e-mail address whereby Customers can 1495 communicate with the Contractor's customer service staff. Contractor shall monitor 1496 the email at least once per Business Day, and ensure that a twenty-four (24) hour 1497 response time is maintained. 1498 B. Customer Service Call Center and Staffing Franchise Agreement for Collection Services Page 39 City of Burlingame 'T499 Contractor is required to operate a Customer service call center that will serve as 1500 the primary telephone point of contact and information for all services. The 1501 Customer service call center hotline is required to be staffed live during regular 1502 business hours (i.e., Monday through Friday 8:00 a.m. to 5:00 p.m.) by sixteen (16) 1503 customer service representatives (includes one (1) receptionist who performs 1504 customer service activities). In addition, the Customer service call center will offer 1505 multi-lingual Customer service by employing a minimum of two (2) bilingual 1506 customer service representatives with English and Spanish language capabilities, 1507 and contracting with a service to provide bilingual capacity for other languages 1508 including Cantonese, Mandarin, and Vietnamese. Contractor shall provide 1509 immediate access to interpreters for over one-hundred and seventy-five (175) 1510 languages through the use of Language Line service, or a similar service. 1511 C. Website 1512 Contractor shall maintain and publicize an up-to-date website whereby Customers 1513 can conduct business with Contractor in both English and Spanish. Contractor is 1514 required to update the Website monthly, and more frequently if necessary. At a 1515 minimum, the website shall: 1516 1. Allow Customers to view and pay Bills issued by Contractor, as required in 1517 Section 7.01; 1518 2. Allow Customers to schedule services such as, but not limited to, On-Call 1 519 Collection service events, On-Call Bulky Item Collections, extra Collections, 520 service changes, temporary Drop Box service, service terminations, and 1521 service stops; 1522 3. Provide answers to frequently asked questions including, but not limited to: 1523 proper Container set-out instructions; list of acceptable Recyclable and 1524 Organic Materials; Collection Days (in response to Customer input of service 1525 address); Billing issues, customer service telephone and e-mail contact 1526 information; and the Designated Transfer and Processing Site hours, 1527 directions, and acceptable materials; 1528 4. Provide complete list of Agency-approved Rates for all Customers; 1529 5. Allow Customers to file Complaints and receive from Contractor e-mail 1530 responses to Complaints; 1531 6. Provide a link to enable Customers to email Contractor; and 1532 7. Maintain and produce visitor logs and reporting including, but not limited to, 1533 website and individual page visitation, number of web-based Bill payments per 1534 month, number of website-submitted Complaints per month, and individual and 1535 summary Customer Complaint and resolution reporting. 1536 D. Customer Information System Requirements 1537 Contractor is required to use a Customer information system with software 1538 applications capable of documenting all correspondence and conversations, 1539 pertaining to the services specified herein, between Contractor, Customers, '.540 Occupants, Agency and SBWMA. The system shall include, at a minimum, the `.•1541 following data fields: Franchise Agreement for Collection Services Page 40 City of Burlingame 1542 1. Date and time of Customer correspondence or contact with Contractor (e.g., 1543 phone call, email) 1544 2. Date and time response was provided 1545 3. Date and time resolution was provided 1546 4. Customer's name and contact information (multiple phone numbers and email 1547 addresses) 1548 5. Account address 1549 6. Service address 1550 7. Occupant address 1551 8. Service location information including: 1552 a. Number of units 1553 b. Number, size and type of Solid Waste, Organic Materials, and Targeted 1554 Recyclable Materials Containers 1555 c. Collection Service Day 1556 d. Route number 1557 e. Backyard service status 1558 f. Special Handling Service status 1559 g. Bulky Item Collection history (e.g., number of annual services 1560 performed, date requested, date provided) 1561 9. Service issue, Complaint or Inquiry 1562 10. Time frame stipulated for Contractor to resolve issue 1563 11. Description of Contractor's resolution of service issue or Complaint, or 1564 response to Inquiry 1565 12. Date and time that Contractor's resolution took place 1566 13. CSR or Contractor's employee identification code of employee inputting the 1567 Complaint or inquiry 1568 14. CSR or Contractor's employee identification code of employee inputting the 1569 resolution 1570 The system shall be capable of: 1571 1. Providing real-time access to complete Customer contact history from the 1572 commencement of service in 2011; 1573 2. Providing Agency and SBWMA the capacity to submit work orders (e.g., 1574 specifying the Inquiry, Complaint or request for service) electronically directly 1575 to Contractor using Contractor's web-based software. 1576 3. Documenting non-Collection events including problem description and 1577 resolution; 1578 4. Tracking non-Collection events necessary to fulfill the requirements in Section 1579 8.02(F); and 1580 5. Fulfilling Customer service reporting requirements as specified in Article 9. 1581 E. Monthly Meetings with Agency. If requested, Contractor shall meet monthly with 1582 Agency to discuss compliance with the Customer service standards specified in this 1583 Section 7.02, Attachment I (Performance Incentives and Disincentives) and 1584 Attachment J (Liquidated Damages). Franchise Agreement for Collection Services City of Burlingame Page 41 '*n85 F. Quality Assurance Program. Each month Contractor's customer service 1586 representatives will contact by telephone a minimum of two-hundred (200) 1587 Customers within the SBWMA Service Area to inquire about their satisfaction with 1588 Contractor's Collection services. The Customers contacted will be (i) representative 1589 of different Service Sectors, (ii) distributed among Member Agencies, and (iii) 1590 randomly selected. Customer service representatives shall ask about (i) 1591 Customers' satisfaction with Solid Waste and Recyclable Materials Collection 1592 services, (ii) the number of Collection Containers the Customer has and the 1593 frequency of collections, in order to ensure that the Customer has subscribed to the 1594 appropriate level of Collection service, and (iii) Customer's suggestions for 1595 opportunities to improve service. The quality assurance program reporting 1596 requirements are specified in subsection 9.05.G. 1597 G. Preprogrammed Call Transfer. Contractor shall maintain the ability to provide 1598 preprogrammed call transfer service to Agency. With this communications feature 1599 in place, when a Customer calls Contractor about an issue or concern that pertains 1600 to Agency but is not related to Collection services provided by Contractor, 1601 Contractor shall immediately transfer the phone call to the offices of Agency 1602 through a dedicated telephone line. The call transfer shall be seamless, and 1603 appear to the Customer as if Contractor were transferring the call internally. 1604 J. Customer Service Operations Plan. Contractor shall annually submit its 1605 Customer service operations plan. The Customer service operations plan shall ,06 describe how Contractor uses its Norcal or Recology customer relationship x,,,_)07 management system (NCRM), linked to on-board GPS tracking system, to share 1608 real-time information between Customers, drivers, customer service 1609 representatives, managers, and SBWMA and Agency staff. The plan will provide 1610 details on how Contractor automatically detects and records information on each 1611 Customer pickup, real-time transmission of service extras, blocked cars, safety 1612 notes, and exceptions to service. 1613 7.03 PUBLIC EDUCATION AND PROMOTION 1614 Contractor and Agency agree that all public education activities will be a collaborative 1615 effort among the SBWMA, Agency, and Contractor. Contractor shall be responsible for 1616 ensuring that its Customers consistently receive a high level of service and 1617 responsiveness. 1618 A. General. Contractor acknowledges and agrees that education and public 1619 awareness are critical and essential elements of any effort to achieve diversion. 1620 Contractor shall educate Residential and Commercial Customers on the following: 1621 (i) the benefits of source reduction, reuse, Recycling, and Composting and related 1622 program opportunities; (ii) proper handling of Hazardous Waste; (iii) specific 1623 services offered by the Contractor; and (iv) Rates for Collection services. The 1624 public education program shall include distribution of public education materials at 1625 the commencement of the Agreement; when Collection services are changed 1626 during the Term; and when new Collection services are implemented during the 1627 Term. In addition, the public education program shall include on-going education 528 activities throughout the Term. Educational materials that Contractor must pay for, Franchise Agreement for Collection Services City of Burlingame Page 42 1629 produce and distribute shall include, but not be limited to, those listed in Section 1630 7.03 (E). 1631 B. Annual Public Education Plan. On or before September 1St of each Rate Year, 1632 Contractor shall submit to Agency and SBWMA a public education plan outlining its 1633 public education activities for the coming Rate Year. Agency and SBWMA shall 1634 review and approve the plan or request modifications to the plan by October 1. 1635 Contractor shall revise and resubmit the plan to Agency and SBWMA by October 1636 15. If Agency and SBWMA determine the plan has not been adequately revised, 1637 Contractor shall ensure its public education manager is available to meet and 1638 confer with Agency and SBWMA to ensure the plan is finalized by November 1. 1639 The plan shall list each public education piece or activity (e.g., newsletters, Bill 1640 inserts, flyers, newspaper advertisements, website enhancements, etc.) to be 1641 prepared, the purpose of the piece, the key subject(s) to be covered, and the 1642 anticipated date of issuance. In addition, the plan shall list all Events the Contractor 1643 plans to attend and the public education it intends to provide (e.g., exhibit at Earth 1644 Day Event, Chamber of Commerce meetings, etc.). During the Rate Year, 1645 Contractor shall complete all elements and tasks specified in the annual public 1646 education plan in accordance with the schedule presented in the plan unless the 1647 Agency or SBWMA has provided written approval to waive or postpone a 1648 requirement. 1649 C. Content and Production Requirements. Prior to preparing public education 1650 materials, Contractor shall discuss with the Agency and SBWMA its general 1651 approach to preparing the materials and shall determine if the Agency has any 1652 Agency-specific guidelines to be followed and if the Agency wants the Contractor to 1653 work with templates prepared by SBWMA or others. 1654 The public education materials shall emphasize use of visual/graphic images as 1655 much as practical. Furthermore, the materials shall include a clear listing of 1656 program participation parameters and targeted materials. 1657 All public education materials shall be printed on paper containing the highest levels 1658 of recycled-content material reasonably practical. 1659 The Contractor shall develop a multi-lingual approach to preparing all public 1660 education materials, and all public education materials shall be provided in both 1661 English and Spanish. 1662 D. SBWMA and Agency Responsibilities 1663 SBWMA shall take primary responsibility for implementation of the public education 1664 and outreach campaign that will be used to announce changes in collection 1665 services. SBWMA will fund the new services kick-off public education campaign. 1666 Development of the public education and promotion strategy and implementation 1667 schedule will be a collaborative process among Contractor, SBWMA, and Agency. 1668 The SBWMA and Agency's responsibilities with regard to public education and 1669 promotion activities shall include, but not be limited to, the following: Franchise Agreement for Collection Services City of Burlingame Page 43 1670 1. Provision of public education to SFD, MFD, Commercial and Agency Facility 1671 Customers with a broad focus on waste prevention, reuse, and Recycling. 1672 2. Preparation and distribution of a quarterly newsletter for all SFD and MFD 1673 Occupants. 1674 3. Preparation and distribution of Multi-Family Dwelling toolkits for MFD complex 1675 Owners and managers. 1676 4. Purchase of desk-side and other interior Targeted Recyclable Materials and 1677 Organic Materials receptacles for Commercial Customers. 1678 5. Purchase of Recycling Tote-Bags for distribution to MFD complexes. 1679 6. Preparation and distribution of an electronic newsletter for the Commercial 1680 sector and MFD complex managers. 1681 7. Preparation and provision of outreach materials to schools. 1682 8. Development and maintenance of SBWMA website. 1683 9. Production of decals for Used Motor Oil jugs. 1684 10. Upon request from Agency, produce Household Battery and Cell Phone 1685 Recycling bags. 1686 E. Contractor Responsibilities 1687 Contractor will be required to provide the following services: 1.688 1. Distribute public education and promotion materials during roll-out of the new 89 Collection services program. This will entail distributing program literature and I_ro90 other promotional items with delivery of the Carts, Kitchen Pails and Bins to all 1691 Customers at inception of the new program. 1692 2. Actively collaborate with Agency and SBWMA on the public education strategy 1693 and development of materials to support roll-out of new Collection services. 1694 3. Distribute public education and promotion materials to new Customers during 1695 the Term. 1696 4. Provide public education door hangers, posters and other promotional 1697 materials to Multi-Family Dwelling Customers at inception of new services and 1698 during the Term. 1699 5. Deliver Recycling Tote-Bags to MFD complexes. 1700 6. Deliver desk-side and other interior Targeted Recyclable Materials and Organic 1701 Materials receptacles for Commercial Customers and Agency Facilities. 1702 7. Produce and deliver non-collection notices. The format and content of the 1703 non-collection notices must be approved in advance by Agency and SBWMA. 1704 8. Produce and affix Targeted Recyclable Materials, Organic Materials and Solid 1705 Waste cart hangers to corresponding Carts. The format and content of the cart 1706 hangers must be approved in advance by Agency and SBWMA. 1707 9. Affix Used Motor Oil Recycling decals to jugs for inclusion in Used Motor Oil 1708 Recycling kits. 1709 10. Assemble and deliver Used Motor Oil Recycling kits upon request from SFD 1710 Customers. Kits must be provided to Customer within five (5) Business Days of 1.711 Customer request. Franchise Agreement for Collection Services City of Burlingame Page 44 1712 11. If approved by Agency, deliver Household Battery and Cell Phone Recycling 1713 bags upon request from Customers. Bags must be provided to Customer 1714 within five (5) Business Days of Customer request. 1715 12. Staff a booth at local public events and distribute promotional and educational 1716 materials. 1717 13. Arrange student tours at the SRDC (in coordination with Operator); make 1718 classroom presentations upon request; provide school activities for students 1719 about the 4Rs; and provide "rainy day" DVDs to schools that educate children. 1720 about waste reduction and preserving the environment. 1721 14. Conduct presentations at community meetings, service clubs, senior centers 1722 and neighborhood associations. 1723 15. Promote recycling and organics collection programs on the sides of Collection 1724 and Route Supervisors' vehicles. These advertising campaigns must be 1725 approved in advance by Agency and SBWMA. 1726 16. Each Rate Year insert with its bills, up to twelve (12) Solid Waste Bill inserts 1727 produced by SBWMA or Agency. A total of nine (9) Bill inserts are specified 1728 below. 1729 If Agency has specified a post card Bill format, the notices described as "Bill 1730 inserts" shall be separately mailed by Contractor. In addition, if Bills (in 1731 whatever format) are mailed at intervals that do not accommodate the timely 1732 distribution of the specified notices, notices will be separately mailed as 1733 necessary by Contractor. 1734 17. Each Rate Year Contractor shall develop, produce and distribute the following ..� 1735 public education and promotion materials: 1736 a. Annual On-Call Collection Services Collection notice (one (1) SFD Solid 1737 Waste Bill insert). 1738 b. Annual Holiday Tree Recycling notice (separate for SFD and MFD - two 1739 (2) Solid Waste Bill inserts). 1740 c. Annual "Reduce Holiday Packaging" notice (one (1) SFD and MFD Solid 1741 Waste Bill insert). 1742 d. Twice annual compost giveaway notice (two (2) SFD and MFD Solid 1743 Waste Bill inserts). 1744 e. Twice annual Commercial Recycling notice (two (2) Commercial Solid 1745 Waste Bill inserts). 1746 f. Annual Commercial Recycling awards notice (one (1) Commercial Solid 1747 Waste Bill insert). 1748 g. Non-collection notice (set-out correction notice).. 1749 13. Contractor's outreach and education material will place a strong emphasis on 1750 Recycling and reuse, encouraging Customers to take advantage of donation 1751 opportunities offered by local non-profit organizations such as the Society of 1752 St. Vincent de Paul, Goodwill Industries, and the Salvation Army. In addition, 1753 Contractor will promote other resources for reuse, such as the Freecycle 1754 NetworkTM an online resource for the free and local exchange of goods, the 1755 Resource Area for Teachers (RAFT), local schools, and other community 1756 organizations that are in need of reusable goods. Franchise Agreement for Collection Services City of Burlingame Page 45 'I757 14. Contractor shall develop and distribute to all Customers a professionally 1758 produced DVD. Contractor shall work collaboratively with the SBWMA to 1759 produce a DVD using local settings, that illustrates and explains the Recyclable 1760 Materials, Organic Materials and Solid Waste Collection services provided by 1761 Contractor and Customer participation protocols and other pertinent 1762 sustainability-related information. 1763 15. Upon request by Agency, Contractor shall promote its services to Customers 1764 using Agency's email distribution list or an email distribution list authorized by 1765 Agency. 1766 F. Staffing 1767 Contractor will have on staff a full-time management level employee who will serve 1768 as the public education manager. Contractor must notify Agency and SBWMA 1769 within two (2) Business Days if this individual resigns or is terminated from 1770 employment. Contractor shall provide to Agency and SBWMA a current job 1771 description and resume of the public education manager. 1772 G. Meeting Requirements 1773 Upon request from Agency or SBWMA, the public education manager is required to 1774 meet quarterly, and more frequently if necessary, with Agency and/or SBWMA staff 1 775 to review public education and promotion activities. In addition, the public education 76 manager will be required to represent Contractor at all monthly SBWMA Board of �7777 Director meetings. 1778 H. Agency Rights 1779 Contractor acknowledges that the public education and promotion activities listed 1780 are critical to the success of Agency's diversion performance relative to the Act. As 1781 such, Contractor acknowledges Agency's rights to the following: 1782 1. Contractor shall make available to Agency and SBWMA all public educational 1783 materials used by Contractor, which Agency and SBWMA shall approve prior 1784 to their use; 1785 2. Agency and SBWMA shall retain the right to modify, expand, or reduce the 1786 minimum public education requirements; 1787 3. Agency may require Contractor to work with a public education consultant 1788 selected by Agency or the SBWMA; 1789 4. Agency may perform, or request that the SBWMA perform on its behalf, the 1790 public education efforts assigned to the Contractor; and 1791 5. Agency or SBWMA may provide additional, supplemental public education 1792 materials as it deems appropriate. 1793 I. Reporting Requirements Franchise Agreement for Collection Services City of Burlingame Page 46 1794 Contractor is required to prepare quarterly and annual public education activity 1795 status reports. The annual reports will in part summarize the prior twelve (12) 1796 months and also contain adjustments to current and ongoing event calendars. 1797 J. Service Notice 1798 Contractor shall periodically prepare and distribute to each Customer a notice listing 1799 Contractor's Rates for standard Collection services, Rates for other services, 1800 annual Holiday schedule, and a general summary of services required under this 1801 Agreement to be provided Customers and optional services which may be furnished 1802 by Contractor. Such notice shall be approved by the Agency prior to distribution. 1803 7.04 COMMERCIAL RECYCLING PROMOTION PROGRAM 1804 A. Commercial Recycling Promotion Program Staff. Contractor shall maintain a 1805 Commercial Recycling promotion program staff that will be primarily responsible for 1806 supporting Commercial and Multi-Family Dwelling Accounts and Agency Facilities 1807 Recycling-related Collection services. The Commercial Recycling promotion staff 1808 for the SBWMA Service Area shall consist of a minimum of the following full-time 1809 staff: eight (8) "sales" representatives (recycling coordinators), two (2) diversion 1810 auditors and one (1) supervisor (commercial recycling manager), as specified in 1811 Attachment O. 1812 B. Signs and Placards. Contractor shall be responsible for preparing, distributing, 1813 and posting signs at Commercial Collection Premises that promote Targeted -� 1814 Recyclable Materials and Organic Materials Collection services, describe the 1815 program requirements, and identify allowable and prohibited types of materials for 1816 Collection. At a minimum, the signs or placards shall be durable and weather 1817 resistant and affixed in the Container areas. Upon request from Customer, 1818 Contractor shall provide signs and Container labeling in a second language such 1819 as, but not limited to, Spanish. Within ten (10) Business Days of a Customer's 1820 request, Contractor shall provide extra signs for use in areas such as employee 1821 training areas, break rooms, kitchens, and janitorial areas at Commercial Premises. 1822 C. Community Events. At the direction of Agency or SBMWA, Contractor shall 1823 participate in and promote diversion techniques at community events and local 1824 activities. The events requiring Contractor assistance are not limited to the list of 1825 Agency-sponsored or other events contained in Attachment C. Participation 1826 includes providing educational and public outreach information and promotional 1827 giveaways in an effort to promote the Agency's waste reduction and Recycling 1828 program goals. 1829 D. Notification to Commercial Customers. Immediately upon request from a new or 1830 current Customer for new or changes in service, Contractor shall notify Customer 1831 by phone or email of the Targeted Recyclable Materials and Organic Materials 1832 Collection services offered by Contractor. Such notification shall be provided in 1833 English and Spanish and shall be provided prior to finalizing a Customer's request 1834 for a subscription to new service(s). Franchise Agreement for Collection Services City of Burlingame Page 47 ''x"835 E. Targeted Commercial Recycling Promotion. Contractor shall provide full on-site 1836 waste assessment and technical assistance to, at a minimum, one-hundred (100) of 1837 Agency's largest Commercial Generators (based on weekly Solid Waste 1838 generation) annually to assist in maximizing diversion. For all other Commercial 1839 Generators, Contractor shall provide technical assistance as needed or requested 1840 and visual on-site Collection Container assessments at least once every three (3) 1841 years. Contractor shall document the site assessments, the date of the 1842 assessment, the Person contacted-the Solid Waste, Source Separated or Targeted 1843 Recyclable Materials, and Organic Materials service levels at the time of the 1844 assessment, and recommended changes to service level(s). Contractor shall 1845 submit results of site assessments monthly, or upon request, provide copies of 1846 assessment data and recommendations for individual site assessments. 1847 F. Enclosure Specifications. Contractor shall work with the Agency to develop 1848 standard specifications for Collection Container enclosures at Multi-Family 1849 Residential Complexes and Commercial Premises to ensure that Container 1850 enclosures have adequate space and suitable configuration to allow the Contractor 1851 to safely and efficiently service the Containers. The enclosure specifications shall 1852 require provision of adequate space for Solid Waste, Targeted Recyclable 1853 Materials, and Organic Materials Collection Containers. Contractor shall provide 1854 the enclosure specifications to the Agency on or before the Effective Date and shall 1855 update as frequently as needed or as requested by Agency. '956 G. Plan Review. Contractor shall review plans for land use or property developments, x;57 upon request of the Agency, to assess the adequacy of Container enclosure space 1858 allowances for Solid Waste, Recyclable Materials, and Organic Materials Collection 1859 Containers and the accessibility of Containers by Collection vehicles. The 1860 Contractor's review shall be completed by the Contractor's operations manager or 1861 route supervisor within ten (10) Business Days of request by Agency and receipt of 1862 the project design drawings. If site conditions warrant, the Contractor shall conduct 1863 a site visit of the proposed property to complete its evaluation. The Contractor's 1864 review shall be summarized in a letter report that states acceptability of the 1865 proposed enclosure arrangements or notes specific changes that are required to 1866 comply with the enclosure specification. The letter report shall be signed by the 1867 Person that conducted the review on behalf of the Contractor. This review shall 1868 include, but not be limited to: 1869 1. Adequacy of the Container enclosure space to store Containers for the 1870 anticipated volume of Solid Waste, Targeted Recyclable Materials, and 1871 Organic Materials generated by a development of the size and purpose 1872 contemplated; 1873 2. Adequacy of Container enclosure space to store Containers for Solid Waste, 1874 Targeted Recyclable Materials, and Organic Materials in a fashion that allows 1875 for the greatest possible diversion of materials; and, 1876 3. Adequacy and accessibility of the Container enclosure space for Contractor to 1877 safely and efficiently service all Containers in the contemplated service 1878 locations taking into account the dimensions of the enclosure space, the 1879 access road dimensions, parking arrangements, pedestrian traffic, change in 880 elevation, other site considerations, and Collection vehicle capabilities. Franchise Agreement for Collection Services Page 48 City of Burlingame 1881 H. Reporting. Contractor shall prepare and submit reports related to the Commercial 1882 Recycling promotion program as provided in Article 9. 1883 I. Mandatory Commercial Recycling Assistance to Agency. In the event Agency 1884 adopts a policy or strategy to encourage or require Recycling at Commercial and 1885 Multi-Family Dwelling Customers, Contractor shall assist Agency and SBWMA with 1886 implementing the policy or strategy. Contractor shall be required to provide Agency 1887 with prompt notification of Customers that do not comply with the policy or strategy 1888 based on the observations of Contractor's employees. Contractor shall assist the 1889 Agency and SBWMA with collecting related data from Commercial and Multi-Family 1890 Dwelling Customers and facilitating outreach and education programs focusing on 1891 encouraging participation by these Customers in the mandatory Recycling policy or 1892 strategy. Upon request from Agency, Contractor shall modify its protocol regarding 1893 use of non-collection notices pursuant to subsection 8.02.F to include Solid Waste 1894 Containers, in order to assist with implementing Agency's mandatory Commercial 1895 Recycling policy or strategy. 1896 1897 7.05 MULTI-FAMILY RECYCLING PROMOTION 1898 A. Multi-Family Dwelling Promotion. Contractor shall provide adequate staff to 1899 work directly with Owners or property managers of Multi-Family Residential 1900 Complexes to implement the Single-Stream Targeted Recyclable Materials 1901 Collection services and to assess Customer service needs at least annually for 1902 each Multi-Family Residential Complex. The Contractor's implementation activities --� 1903 shall include, but not be limited to, the following tasks for each Multi-Family 1904 Residential Complex that subscribes to Single-Stream Targeted Recyclable 1905 Materials Collection services: 1906 1. Site Assessments. Contractor shall meet in person with Owner or property 1907 manager to explain the Single-Stream Targeted Recyclable Materials 1908 Collection program and conduct an on-site assessment of Multi-Family 1909 Residential Complexes containing twenty (20) or more Residential units to 1910 determine the appropriate number and type of Solid Waste and Recyclable 1911 Materials Containers and the frequency of Collection. Contractor shall provide 1912 Containers for Single-Stream Targeted Recyclable Materials or Source 1913 Separated Targeted Recyclable Materials such as newspaper, cardboard, 1914 mixed paper, glass, aluminum, etc. depending on the needs of the Multi-Family 1915 Residential Complex. If practical, Contractor shall locate the Solid Waste and 1916 Recyclable Materials Containers in the same area so tenants carry materials to 1917 one location. Contractor shall also offer Recyclable Materials Carts for use in 1918 the mail area of the Premises. The site assessment shall be conducted by 1919 Contractor when Targeted Recyclable Materials Collection services are initially 1920 provided at a Multi-Family Residential Complex, and once every three (3) years 1921 thereafter. 1922 2. Service Level Adjustments. Within five (5) Business Days of completing the 1923 site assessment or receiving a request from a Customer, Contractor shall 1924 adjust the Customer's service level by providing any Solid Waste or Recyclable 1925 Materials Containers needed for change in service, removing unneeded 1926 Containers, and revising the billing system to reflect the monthly Rate for the 1927 new service level. At the time new Containers are delivered or existing Franchise Agreement for Collection Services City of Burlingame Page 49 X28 Containers are removed, the Contractor shall confirm that all Containers are 1929 properly labeled and shall provide public education signage for the Container 1930 areas and extra signs for public and common areas such as mail and laundry 1931 rooms, etc. 1932 3. Preparation and Distribution of Public Education Materials. Contractor shall 1933 provide Owner or property manager with education materials developed by 1934 Agency or SBWMA which describe the requirements of the Recyclable 1935 Materials Collection program, including flyers, door hangers and Recycling 1936 Tote-Bags for distribution to tenants, signage for common areas such as mail 1937 rooms and laundry rooms, and move-in kits for new tenants. 1938 B. Notification to Multi-Family Dwelling Customers. Upon request from a new or 1939 current Customer for new or changes in service, Contractor shall notify the 1940 Customer by mail of the Targeted Recyclable Materials and Organic Materials 1941 Collection services offered by Contractor. Such notification shall be provided in 1942 English and Spanish. 1943 C. Signs and Placards. Contractor shall be responsible for preparing, distributing, 1944 and posting signs and placards at Multi-Family Dwelling Premises that promote 1945 Targeted Recyclable Materials and Organic Materials Collection services, describe 1946 the program requirements, and identify allowable and prohibited types of materials 1947 for Collection. At a minimum, these signs shall be durable, weather resistant and 1948 posted in the Container areas. Upon request of the Customer, Contractor shall 49 provide signage and Container labeling in a second language such as, but not x)50 limited to, Spanish. Within ten (10) Business Days of a Customer's request, 1951 Contractor shall provide extra signage for use in areas such as laundry and mail 1952 rooms at Multi-Family Residential Complexes. 1953 7.06 WASTE GENERATION/CHARACTERIZATION STUDIES 1954 Contractor acknowledges that Agency may perform Solid Waste generation and 1955 characterization studies periodically to determine the composition and contamination 1956 levels of Collected materials. Contractor agrees to participate and cooperate with 1957 SBWMA and Agency and its agents and to accomplish studies and data collection and 1958 prepare reports, as needed, to determine weights and volumes of Solid Waste, 1959 Targeted Recyclable Materials, Plant Materials and Organic Materials and characterize 1960 materials generated, Disposed, transformed, diverted or otherwise handled/processed 1961 to satisfy requirements of the Act. Contractor shall also facilitate visual audits of Multi- 1962 Family Dwelling, Commercial and Agency Cart and Bin service accounts. The visual 1963 audits will entail tipping the contents of Customers Container on the tipping floor at the 1964 Designated Transfer and Processing Facility and visually observing and documenting 1965 the contents (without pursuing a detailed weight-based characterization study). The 1966 materials will then be processed at the Designated Transfer and Processing Facility. 1967 Contractor will be required to facilitate said visual audits at the request of Agency; 1968 however, the annual total quantity of requests for visual audits for each Service Sector 1969 shall be limited to ten percent (10%) of the total number of accounts for each Service 1970 Sector. 971 The SBWMA will use the Contamination Measurement Procedures set forth in N%.. 972 Attachment E-1 and E-2, to determine the Contamination levels of single loads and Franchise Agreement for Collection Services City of Burlingame Page 50 1973 quarterly Contamination Levels, respectively, of Source Separated and Targeted 1974 Recyclable Materials, Plant Materials and Organic Materials delivered to the Designated 1975 Transfer and Processing Facility. 1976 7.07 PROGRAM EVALUATION 1977 The Agency may require the Contractor to periodically conduct audits of the Residential 1978 and Commercial Solid Waste, Targeted Recyclable Materials, and Organic Materials 1979 Collection programs to assess one (1) or more of the following performance indicators: 1980 average volume of Targeted Recyclable Materials per set-out per Customer, average 1981 volume of Organic Materials per set-out per Customer, participation level (i.e., number 1982 of Customers setting out Containers per week), Contamination levels, etc. Contractor 1983 shall perform up to five (5) Days of route auditing at no additional cost to the Agency or 1984 Customers once per calendar year. Prior to the program evaluation audit, Agency and 1985 Contractor shall meet and discuss the purpose of the audit and agree on the method, 1986 scope, and data to be provided by the Contractor. If Agency requires more than five (5) 1987 Days of auditing for the purposes of program evaluation, the activity shall be considered 1988 an Agency-directed change in scope and handled in accordance with provisions in 1989 Section 15.12. 1990 If the Contractor does not Collect Multi-Family Dwelling Solid Waste, Targeted 1991 Recyclable Materials, and Organic Materials using dedicated Collection vehicles, 1992 thereby precluding regular and accurate reporting of the Tonnage of Solid Waste, 1993 Targeted Recyclable Materials, and Organic Materials Collected from Multi-Family 1994 Residential Complexes, the Agency may require the Contractor to conduct a semi- 1995 annual or annual Tonnage assessment that involves separately Collecting, weighing, 1996 and reporting Multi-Family Dwelling Solid Waste, Targeted Recyclable Materials, and 1997 Organic Materials to quantify Tonnage Collected during a given week. This assessment 1998 shall be performed by Contractor at no additional cost to the Agency or Customers. 1999 If the Agency wants to collect program data, perform field work, conduct route audits to 2000 investigate Customer participation levels and set-out volumes, and/or evaluate and 2001 monitor program results related to Solid Waste, Targeted Recyclable Materials, and 2002 Organic Materials Collected in the Agency by the Contractor, the Contractor shall 2003 cooperate with the Agency and its agent(s), which may include the SBWMA and its 2004 consultants. 2005 7.08 PROVISION OF EMERGENCY SERVICES 2006 Contractor shall provide emergency services at the Agency's request in the event of 2007 major accidents, disruptions, or natural calamities. Emergency services may include, 2008 but are not limited to: assistance handling, salvaging, processing, composting, or 2009 Recycling materials; or Disposing of Solid Waste following a major accident, disruption, 2010 or natural calamity. Contractor shall be capable of providing emergency services within 2011 twenty-four (24) hours of notification by the Agency or as soon thereafter as is 2012 reasonably practical in light of the circumstances. Emergency services which exceed 2013 the Contractor's obligations shall be compensated in accordance with Article 11. If 2014 Contractor cannot provide the requested emergency services, the Agency shall have the 2015 right to temporarily take possession of the Contractor's equipment for the purposes of 2016 providing emergency services in accordance with Article 12. --� Franchise Agreement for Collection Services Page 51 City of Burlingame 017 7.09 MFD AND COMMERCIAL RECYCLING BLITZ 2018 Contractor has developed a comprehensive early roll-out recycling promotion plan 2019 (Recycling Blitz) that will target Multi-Family Dwelling and Commercial Customers over a 2020 six (6) month period prior to the start of Collection Services on January 1, 2011. 2021 Contractor shall offer to provide Single-Stream Targeted Materials Recycling Collection 2022 Service to Multi-Family Dwelling and Commercial Customers that are currently receiving 2023 limited or no recycling service. The promotional materials, messages and 2024 communications used by Contractor to support Recycling Blitz activities shall be 2025 developed collaboratively with the SBWMA and production of materials shall be paid for 2026 by Contractor at no additional cost to Agency or SBWMA. All promotional materials used 2027 by Contractor shall be authorized by the SBWMA. 2028 Contractor will form a Recycling Blitz team, utilizing resources from within the Norcal 2029 organization, such as managers, recycling coordinators and operational staff of other 2030 Norcal subsidiaries, who will be recruited in one (1) to two (2) week assignments, to 2031 assist in this promotion campaign. The focus of the Recycling Blitz program will be on 2032 Customers that are either not currently recycling, or have only limited service. The 2033 Recycling Blitz team will work with Customers to expand Collection of Targeted 2034 Recyclable Materials and make recommendations for reduced Solid Waste Container 2035 sizes and/or frequency of Solid Waste Collection service. Contractor shall work 2036 collaboratively with the SBWMA and the Agency's Previous Contractor. 2037 Contractor projects that, as the result of undertaking this recycling promotion program, it 038 will increase the volume of Targeted Recyclable Materials collected in the SBWMA " '2-039 Service Area by 9,800 annual tons starting January 1, 2011. 2040 All Recycling tons Collected through the Recycling Blitz will be delivered by Contractor 2041 to the SRDC or to an alternate Recycling processor approved by the SBWMA. All 2042 revenue received by Contractor from an alternate recycling processor for Targeted 2043 Recyclable Materials Collected during the Recycling Blitz will be remitted by Contractor 2044 to the SBWMA. Contractor shall provide SBWMA with monthly tonnage reports of 2045 materials Collected during the Recycling Blitz. 2046 7.10 CARBON FOOTPRINT MEASURING 2047 Contractor shall develop and submit to Agency and SBWMA an annual climate action 2048 report. Contractor shall annually file its emissions data with the California Climate Action 2049 Registry (CCAR). The annual climate action report shall be submitted with Contractor's 2050 annual report. This report shall include: information on Contractor's emissions data filed 2051 with CCAR; a description of Contractor's carbon footprint; and, a description of 2052 Contractor's activities both planned and implemented to reduce its carbon footprint. 2053 7.11 ENVIRONMENTAL MANAGEMENT PROGRAM 2054 Contractor shall' implement and maintain an environmental management program 2055 combining several elements to minimize the environmental impacts of its operations in 2056 the Service Area. Contractor shall provide upon request from Agency a description of 2057 topics discussed at its bi-monthly environmental team roundtable and training program 2058 meeting(s) and the semiannual corporate environmental compliance staff meetings. x„2059 Contractor shall provide Agency access to its "Norcal's Environmental and Safety 2060 Tracking" (NEST) system upon request. Contractor shall provide Agency copies of its Franchise Agreement for Collection Services City of Burlingame Page�2 2061 internal environmental compliance audits, third-party audits and disposition of corrective 2062 actions, within thirty (30) Days upon request from Agency. 2063 7.12 ANNUAL ROUTE ASSESSMENT 2064 Contractor shall conduct a route assessment of the Service Area each Rate Year. This 2065 comprehensive route assessment shall require Contractor to assess all of its Solid 2066 Waste, Targeted Recyclable Materials and Organic Materials Collection Customers over 2067 a one (1) week period during the same month each year for the Term. The assessment 2068 is intended to annually confirm and update Contractor's data related to Customer 2069 accounts, service levels and operations, including, but not limited to: (i) number of 2070 Accounts; (ii) Customer address; (iii) number and type of Containers at each Account; 2071 and (iv) Collection frequency of each Container at each Account; (v) . Bin and Cart lifts; 2072 (vi) Drop Box pulls; (vii) service stops; (viii) route hours per year; and (ix) tonnage 2073 Collected. All service level information related to lifts and pulls will be derived in part 2074 from Contractors database management system. All route labor hours shall be based 2075 on total route hours for routes exclusive to each Agency and Tonnage information shall 2076 be based on actual tons Collected. For routes that service more than one Agency, the 2077 Tonnage Collected on these routes and total route hours shall be allocated to the 2078 respective Agencies based on the type and number of accounts and service levels 2079 attributable to each Agency. Franchise Agreement for Collection Services City of Burlingame Page 53 1_ 2080 ARTICLE 0 2081 REQUIREMENTS FOR OPERATIONS, EQUIPMENT, AND PERSONNEL 2082 0.01 COLLECTION HOURS AND SCHEDULES 2083 A. Hours of Collection 2084 1. Residential. Residential Solid Waste, Targeted Recyclable Materials, and 2085 Organic Materials (including all such services provided to SFD and Multi-Family 2086 Dwelling Premises) shall be Collected on weekdays (i.e., Monday through 2087 Friday) between 6:00 a.m. and 6:00 p.m. exclusive of Holidays. 2088 2. Commercial. Commercial and Agency Facilities Solid Waste, Targeted 2089 Recyclable Materials, and Organic Materials shall be Collected on weekdays 2090 (i.e., Monday through Friday) between 3:00 a.m. and 6:00 p.m. and weekends 2091 (i.e., Saturday and Sunday) between 6:00 a.m. and 5:00 p.m., exclusive of 2092 Holidays. The Agency may restrict or require modifications to hours for 2093 Collection from Commercial Premises and Agency Facilities to resolve noise 2094 Complaints, and, in such case, the Agency Manager may restrict the allowable 2095 operating hours. 2096 3. Commercial Exception. Collection from Commercial Premises that are two- 2097 hundred (200) feet or less from Residential Premises shall only occur between 2098 the hours of 6:00 a.m. and 6:00 p.m., Monday through Saturday and all such i99 operations shall be in accordance with permissions provided to Contractor by --,!-t00 Agency. The Agency may restrict or require modifications to hours for 2101 Collection from Commercial Premises and Agency Facilities to resolve noise 2102 Complaints, and, in such case, the Agency Manager may restrict the allowable 2103 operating hours. 2104 4. Exception. In the event of an unforeseen circumstance, the Contractor may 2105 Collect materials from Residential Premises, Commercial Premises, or Agency 2106 Facilities that are two-hundred (200) feet or less from Residential Premises 2107 between the hours of 3:00 a.m. and 6:00 p.m., Monday through Saturday, upon 2108 prior written approval from the Agency Manager. 2109 5. Local Noise Ordinance. If an Agency ordinance regulating noise limits the 2110 hours of Collection more restrictively than the preceding subsections, the terms 2111 of the ordinance shall govern. 2112 B. Route Schedules. Routes over which Contractor's vehicles travel to affect the 2113 Collection and transport of Solid Waste, Targeted Recyclable Materials, and 2114 Organic Materials shall be selected to minimize damage to Agency and private 2115 streets, and minimize inconvenience and disturbance to the public. The route 2116 schedules and routing maps shall be subject to the approval of Agency prior to 2117 Commencement of services. Contractor shall use due care to obey all traffic laws 2118 and prevent materials being transported from being spilled or scattered during 2119 transport. 2120 Contractor shall be prepared to review its operations plan outlining the Collection '121 routes, intervals of Collection and Collection times for all materials Collected under L.-2.122 this Agreement with the Agency or its representatives at least annually. More 2123 frequent reviews may be required if operations are not satisfactory based on Franchise Agreement for Collection Services Page 54 City of Burlingame 2124 documented observations or reports or Complaints. If the plan is determined to 2125 inadequately address the unsatisfactory performance as documented by 2126 observations and Complaints, the Agency may direct Contractor to revise the plan 2127 incorporating any changes into a revised plan and review said revised plan with the 2128 Agency within thirty (30) Days of the initial meeting with the Agency. 2129 C. Contingency Plan. Contractor shall submit to Agency ninety (90) Days prior to 2130 Commencement Date, a written contingency plan demonstrating Contractor's 2131 arrangements to provide vehicles and personnel and to maintain uninterrupted 2132 service during breakdowns, and in case of natural disaster or other emergency, 2133 including the events described in Section 14.09. 2134 0.02 COLLECTION STANDARDS 2135 A. Implementation of Services. The Contractor's implementation of the services 2136 required by this Agreement shall occur in a smooth and seamless manner so that 2137 Customers and/or Generators do not experience disruption in Collection services 2138 when services are initiated on the Commencement Date. Contractor shall be 2139 responsible for managing implementation of new Collection services and other 2140 related services and shall do so in accordance with the Implementation Plan 2141 prepared by the Contractor and incorporated into this Agreement as Attachment L. 2142 B. Servicing Containers and Missed Pick-Ups 2143 1. General. Contractor shall Collect the contents and return each Container to 2144 the location where the Occupant properly placed the Container for Collection. 2145 Contractor shall place the Containers upright with lids properly closed and 2146 secured. 2147 Contractor shall use due care when handling Containers. Contractor shall not 2148 throw, roughly handle, damage, or break Containers. 2149 Upon Customer request, Contractor shall provide special services including: 2150 unlocking and locking Containers; accessing locked Container enclosures 2151 (e.g., with a key or combination lock); and pulling or pushing Containers to the 2152 Collection vehicle. Contractor shall provide the special services described in 2153 this paragraph upon request from Customer and Contractor shall be entitled to 2154 bill Customer as specified in Attachment Q. 2155 2. Missed Pick-Ups. When notified of a missed pick-up, Contractor shall Collect 2156 the Solid Waste, Targeted Recyclable Materials, or Organic Materials on the 2157 day the notice is received, if possible, and in all cases shall Collect the missed 2158 pick-up by 6:00 p.m. of the next Business Day following receipt of the missed 2159 pick-up notification. 2160 C. New Customers and Change in Service Levels. Contractor shall deliver 2161 Containers and initiate Collection services for a new Customer within five (5) 2162 Business Days of the Customer's request for service. If an existing Customer 2163 requests a change in the number or size of their Solid Waste, Recyclable Materials, 2164 or Organic Materials Containers and/or frequency of Collection, the Contractor shall 2165 deliver additional Containers and/or remove Containers and shall initiate changes in Franchise Agreement for Collection Services City of Burlingame Page 55 2166 the Collection services within five (5) Business Days of the Customer's request for a 2167 change in service. 2168 D. Separate Collection of Materials and Allocation of Agency Materials. 2169 Contractor shall separately Collect and segregate Solid Waste, Targeted 2170 Recyclable Materials, and Organic Materials from each other and shall not 2171 Commingle these materials at any time during the transportation or delivery of 2172 those materials to the Designated Transfer and Processing Facility. Solid Waste, 2173 Targeted Recyclable Materials, and Organic Materials Collected in the Agency, 2174 which are combined with materials Collected from other SBWMA Member 2175 Agencies, shall be allocated by Contractor to the Agency's Collection program 2176 based on volume or Tonnage using a method approved by the Agency and 2177 SBWMA. Contractor shall not collect materials from within Agency in the same 2178 Collection vehicles used to provide Collection service to non-SBWMA Member 2179 Agencies, unless provided written approval by Agency. 2180 E. Setout Instructions to Customer. Contractor shall instruct Customers as to any 2181 preparation of Solid Waste, Targeted Recyclable Materials, or Organic Materials 2182 and the proper placement of Containers. If Customers are not adhering to 2183 Contractor's instructions, Contractor shall notify such Customers in writing. In 2184 cases of extreme or repeated failure to comply with the instructions, Contractor may 2185 decline to pick-up the Targeted Recyclable Materials or Organic Materials provided 2186 that Contractor leaves an adequate number of non-collection notices on the '187 Container, as determined by the Agency, indicating the reason for refusing to `,,,188 Collect the material. Such notices shall also identify the steps Generator must take 2189 to recommence Collection service. 2190 F. Non-Collection Notices. Contractor may choose not to Collect materials for the 2191 following reasons: (i) Source Separated or Targeted Recyclable Materials or 2192 Organic Materials do not comply with the allowable Contamination thresholds; (ii) 2193 materials contain Hazardous Waste; or (iii) the loaded weight of a Container 2194 exceeds the maximum load limit specified by the Cart manufacturer and specified in 2195 Attachment D. In such case, Contractor shall issue non-collection notices stating 2196 the reason(s) the materials were not Collected. The non-collection notice shall be 2197 affixed prominently onto the Cart to ensure that it is not inadvertently removed from 2198 Cart due to weather conditions. The non-collection notices must be protected from 2199 rain, if precipitation is present or forecasted, by placing the notice in a clear plastic 2200 bag prior to affixing to Cart. 2201 Contractor shall document the use of non-collection notices by recording the date 2202 and time of issuance, address of service recipient, reason(s) for issuance, name of 2203 employee who issued the notice, and truck and route numbers. The notice shall 2204 conform to the requirements specified in Section 6.03.A, be at least two inches by 2205 six inches (2" x 6") in size and shall be approved by the SBWMA. The non- 2206 collection notices must identify the steps the Generator must take to recommence 2207 Collection service. In the event a Container is not collected due to excessive 2208 Contamination and Customer does not take the necessary steps to recommence 2209 Collection service, Customer shall be assessed a fee approved by Agency for ?210 Collection of the Container as Solid Waste by Contractor. This additional fee ,., ,)-211 charged to Customer may include: (i) a return trip charge and (ii) a extra Solid 2212 Waste Collection charge. Franchise Agreement for Collection Services City of Burlingame Page 56 2213 Contractor shall report monthly to Agency any non-collection notices issued. 2214 Contractor shall take direction from the Agency with regard to termination or 2215 reinstatement of service to a service recipient due to numerous non-collection 2216 notices issued to the same Customer. 2217 G. Collection of Excess Materials (Overages). Contractor shall direct its employees 2218 to Collect an Overage on two (2) occasions each Rate Year at no additional cost to 2219 Customer. Contractor must provide a notice to Customer documenting the Overage 2220 in order to count the Overage Collection towards the allocated two (2) per Rate 2221 Year for each Customer. Customers that place an Overage for Collection for a third 2222 and subsequent events, may be assessed an Overage fee by Contractor if 2223 Contractor documents said Overage with a photograph and sends the Customer a 2224 letter within two (2) Business Days notifying them of the Overage Collected. The 2225 Overage fee billed by Contractor to Customer for a third and subsequent Overage 2226 event is specified in Attachment Q. 2227 Contractor shall provide Customers the opportunity to subscribe to Overage 2228 Collection service, in advance, or purchase Overage bag(s) from the Contractor. 2229 Contractor shall provide Customers the opportunity to purchase Overage bags 2230 through its customer service department or electronically via Contractor's website. 2231 The Overage bag(s) shall have markings identifying it as the Contractor's Overage 2232 bag. Contractor shall mail or deliver Overage bags to Customers within three (3) 2233 Business days of Customer's request. The cost for Overage bags is specified in 2234 Attachment Q and includes all aspects of purchasing the bags, printing and 2235 distribution (i.e., mailing or direct delivery by Contractor). Customers shall also be .� 2236 provided the opportunity to purchase Overage bags at Contractor's local office. 2237 The quantity of Overage bags per request from Customer shall be limited to five (5) 2238 per request. 2239 If the Agency and/or Contractor receive numerous Complaints (as determined by 2240 the Agency) from Customers regarding Customer dissatisfaction with the 2241 requirement to purchase Overage bags, the Agency reserves the right to require 2242 the Contractor to modify its Overage program to better serve its Customers and/or 2243 require the Customer to subscribe to additional Collection service. 2244 H. Care of Private Property. Contractor shall not damage private property. 2245 Contractor shall ensure that its employees: (i) close all gates opened in making 2246 Collections, unless otherwise directed by the Customer, (ii) do not cross 2247 landscaped areas, and (iii) do not climb or jump over hedges and fences. 2248 Agency shall refer Complaints about damage to private property to Contractor. 2249 Contractor shall repair, to its previous condition, all damage to private or public 2250 property caused by its employees. 2251 Contractor shall endeavor to resolve all claims regarding damage to private 2252 property as soon as reasonably practicable following receipt thereof, made by 2253 Owners or Occupants of property served by Contractor, for damages to property 2254 including, but not limited to, Containers. In the event such damage shall have been 2255 caused by the negligence or intentional acts of Contractor, its officers, agents, or 2256 employees, Contractor shall promptly repair or replace such damaged property. 2257 The provisions of this Section 8.02.H shall not be deemed a limitation upon any Franchise Agreement for Collection Services City of Burlingame Page 57 `. 2258 other provisions of this Agreement, or any rights or remedies which may accrue to 2259 Agency by reason of Contractor's acts or omissions to act hereunder. Contractor is 2260 required to repair damage and/or resolve claims regarding damage to property 2261 within thirty (30) Days of receipt of the Complaint. 2262 I. Litter Abatement 2263 1. Minimization of Spills. If any Solid Waste, Targeted Recyclable Materials, or 2264 Organic Materials are spilled or scattered during Collection or transportation 2265 operations, the Contractor shall promptly clean up all spilled and scattered 2266 materials. Contractor shall use due care to prevent vehicle oil, vehicle fuel, or 2267 other liquids from being spilled during Collection or transportation operations 2268 including maintenance of the Collection vehicles to minimize and correct any 2269 leaks. Contractor shall ensure that all liquid spills or leaked liquids fluids are 2270 cleaned up promptly on the same day that they occur. 2271 Contractor shall not transfer loads from one vehicle to another on any public 2272 street, unless it is necessary to do so because of mechanical failure, 2273 emergency (e.g., combustion of material in the vehicle), accidental damage to 2274 a vehicle, or unless approved by the Agency. 2275 2. Clean-Up. During Collection operations, the Contractor shall clean-up litter in 2276 the immediate vicinity of any Container storage area (including the areas 2277 where Containers are delivered for Collection) if Contractor's actions are the 778 cause of the litter. Each Collection vehicle shall be equipped with protective x_79 gloves, a broom, and shovel at all times for cleaning up litter. Absorbent 2280 material shall be carried on each Collection vehicle at all times and used by 2281 Contractor for cleaning up liquid spills. The Contractor shall document and 2282 discuss instances of repeated spillage not caused by it with the Customer 2283 where spillage occurs, and Contractor shall report such instances to Agency. If 2284 the Contractor has attempted to have a Customer stop creating spillage but is 2285 unsuccessful, the Agency will attempt to rectify such situation with the 2286 Customer. 2287 3. Covering of Loads. Contractor shall cover all open Drop Boxes with an 2288 Agency-approved cover, at the Collection location before transporting materials 2289 to the Designated Transfer and Processing Facility. 2290 J. Noise. All Collection operations shall be conducted as quietly as possible and shall 2291 conform to applicable federal, State, County, and Agency noise level regulations. 2292 Contractor shall promptly resolve any Complaints of noise to the satisfaction of the 2293 Agency. 2294 K. Route Rooks and Route Maps. For each Collection route, Contractor shall 2295 maintain a route book and route map that documents each Customer on the route, 2296 their service address, service level, and the order in which Customers shall be 2297 serviced (e.g., the order in which routes shall be driven). Contractor shall distribute 2298 new route books and route maps to its Collection vehicle drivers as frequently as 2299 necessary; and each driver shall note differences in the service levels shown in the 2300 route book, adding and subtracting Customers and service levels, as necessary. 301 Route supervisors shall periodically check the routes to ensure that drivers are Franchise Agreement for Collection Services City of Burlingame Page 58 2302 providing service in accordance with their route books. Contractor shall provide 2303 Agency with route books and maps within ten (10) Business Days of request. 2304 L. Change in Collection Schedule. Contractor shall notify Agency a minimum of 2305 sixty (60) Business Days prior to a change in the Residential Collection schedule 2306 and shall request approval of Contractor's notice to Residential Customers thirty 2307 (30) Business Days prior to a change in Service Day, unless this requirement is 2308 waived in writing by Agency. Contractor shall notify Owners and Occupants of 2309 Residential Premises not later than ten (10) Business Days prior to any change in 2310 Residential Collection operations which results in a change in the day on which 2311 Solid Waste, Targeted Recyclable Materials, and Organic Materials Collection 2312 occurs. Contractor shall not permit any Customer to go more than five (5) Business 2313 Days without service in connection with a Collection schedule change. 2314 8.03 UNLOADING MATERIALS AT THE DESIGNATED TRANSFER AND PROCESSING 2315 FACILITY 2316 Contractor shall be required to unload at the Designated Transfer and Processing 2317 Facility all materials from its Collection vehicles by its own personnel. Contractor 2318 shall be required to ensure that unloaded materials are properly placed in the 2319 designated areas and containers as directed by Operator and SBWMA. For 2320 example, Contractor shall be required to deposit at the Designated Transfer and 2321 Processing Facility Batteries and Cell Phones, Used Motor Oil and Used Motor Oil 2322 Filters in the containers provided by Operator and designated for storage of these 2323 materials. Contractor shall cooperate with Operator to ensure its Collection vehicles -� 2324 unload Solid Waste, Targeted Recyclable Materials, Organic Materials and all other 2325 Discarded Materials Collected by Contractor in the locations designated by 2326 Operator and SBWMA. 2327 8.04 VEHICLES 2328 A. General. Contractor shall provide a fleet of Collection vehicles sufficient in number 2329 and capacity to efficiently perform the work required by the Agreement in strict 2330 accordance with its terms. Contractor shall have available sufficient back-up 2331 vehicles for each type of Collection vehicle used (e.g., side loader, front loader, and 2332 roll-off vehicles) to respond to mechanical breakdowns, Complaints, and 2333 emergencies. Contractor shall maintain a spare ratio of ten percent (10%) for all 2334 Collection vehicles used in the SBWMA Service Area. As of the Commencement 2335 Date, all Residential and Commercial Collection vehicles shall be new; and other 2336 vehicles such as roll-off trucks, support vehicles, and spare vehicles may be new or 2337 used. At no time during the Term shall any vehicle used to perform the services 2338 required under this Agreement exceed ten (10) years of age from the first date the 2339 vehicle was registered. Contractor shall provide Collection vehicles in accordance 2340 with the specifications contained in Attachment P. Collection vehicles whose 2341 acquisition cost is included in the calculation of.Contractor's Compensation may be 2342 used only in the SBWMA Service`Area. 2343 B. General Vehicle Specifications 2344 1. All vehicles used by Contractor in providing Solid Waste, Targeted Recyclable 2345 Material, and Organic Material Collection services shall be registered with the -� 2346 California Department of Motor Vehicles. Franchise Agreement for Collection Services City of Burlingame Page 59 "L347 2. All Collection vehicles shall have leak-proof bodies designed to prevent 2348 leakage, spillage and/or overflow and shall be designed so that Collected 2349 materials are not visible. 2350 3. All vehicles shall comply with California Environmental Protection Agency 2351 (EPA) noise emission regulations and California Air Resources Board air 2352 quality regulations and other applicable pollution control regulations. 2353 4. All Collection vehicles shall have cameras to monitor driving and loading 2354 activities including, at a minimum: (i) back-up cameras mounted at the rear and 2355 side of the vehicle; and, (ii) a hopper camera clearly displaying the contents of 2356 the hopper prior to compaction. 2357 5. Contractor shall be required to operate an adequate number of Collection 2358 vehicles that shall be capable of servicing hard-to-service areas and accessing 2359 long driveways in the Service Area. 2360 6. All Collection vehicles shall be capable of unloading materials in the 2361 Designated Transfer and Processing Facility buildings taking clearance 2362 heights, especially in the MRF, into consideration. 2363 7. All Collection vehicles shall be equipped with and utilize Routeware on-board 2364 computer system and an on-board GPS tracking device with real-time 2365 transmission to all levels of Contractor's operations. 2366 8. All Collection vehicles shall use the biodiesel fuel blend formulated to contain '1367 the highest percentage of biofuel approved for use in Contractor's vehicles by 68 the California Air Resources Board. Currently, the highest approved blend is B- �- 369 20. 2370 9. All Collection vehicles shall be equipped with a broom, shovel, absorbent 2371 materials, and other approved cleanup devices and materials for emergencies, 2372 or any spillage or leaks that may occur. 2373 10. Route supervisors and management personnel shall use one-half ('/2) ton 2374 hybrid pickup trucks while performing services. 2375 C. Vehicle Identification. Contractor's name, local telephone number, and a unique 2376 vehicle identification number designated by Contractor for each vehicle shall be 2377 prominently displayed on all four (4) sides of the vehicles, in letters and numbers 2378 with a maximum five (5) digit sequence, that are no less than two and one-half (2.5) 2379 inches in height. Contractor shall not place any other information or logo on 2380 Contractor vehicles, unless approved in writing by SBWMA. Vehicles shall be 2381 clearly labeled to indicate the materials Collected by that vehicle, specifically; "Solid 2382 Waste," "Recyclables," or "Organic Materials," as directed by SBWMA. 2383 D. Inventory. Contractor shall furnish the Agency and SBWMA a written inventory of 2384 all vehicles used in providing service, and shall update the inventory annually. The 2385 inventory shall list all vehicles by manufacturer, identification number, date of. 2386 acquisition, type, capacity, decibel rating, average weight of load, and average 2387 loaded axle weights. '1388 E. Cleaning and Maintenance Franchise Agreement for Collection Services City of Burlingame Page 60 2389 1. General. Contractor shall maintain all of its properties, vehicles, facilities, and "1 2390 equipment used in providing service under this Agreement in a good, safe, 2391 neat, clean, and operable condition at all times. 2392 2. Cleaning. Vehicles used in the Collection of Solid Waste, Targeted Recyclable 2393 Materials, and Organic Materials shall be thoroughly washed, and thoroughly 2394 steam cleaned weekly so as to present a clean appearance. Agency may 2395 inspect vehicles at any time to determine compliance with this Agreement. 2396 Contractor shall also make vehicles available to the San Mateo County Health 2397 Department for inspection, at any frequency it requests. 2398 3. Repainting or Refurbishing. Contractor shall repaint or refurbish to the 2399 satisfaction of the Agency all vehicles used in the Collection of Solid Waste, 2400 Targeted Recyclable Materials and Organic Materials within thirty (30) 2401 Business Days notice from Agency, if Agency determines that their 2402 appearance warrants painting. The cost for Agency-directed repainting shall be 2403 incurred by Contractor. 2404 4. Maintenance. Contractor shall inspect each vehicle daily to ensure that all 2405 equipment is operating properly. Vehicles which are not operating properly 2406 shall be removed from service until repaired and operating properly. 2407 Contractor shall perform all scheduled maintenance functions in accordance 2408 with the manufacturer's specifications and schedule or in accordance with 2409 California Highway Patrol standards, whichever are more stringent. Contractor 2410 shall keep accurate records of all vehicle maintenance, recorded according to 2411 date and mileage and shall make such records available to Agency upon 2412 request. Hydraulic oil, engine oil, and other spills from Collection vehicles in 2413 the Service Area are a concern to the Agency. Contractor shall include as part 2414 of maintenance activities a process for tracking the number and nature of 2415 automotive spills (type of fluid, amount lost, failure point) and diagnosing the 2416 cause of those spills. Based on the results of the process, Contractor shall 2417 implement appropriate corrective actions to address issues that are 2418 contributing factors to vehicle spills (e.g., revise specifications for specific part 2419 failures, revise preventative maintenance schedule to address timing of 2420 failures), so that each occurrence is controlled and minimized. 2421 5. Repair. Contractor shall repair, or arrange for the repair of, all of its vehicles 2422 and equipment for which repairs are needed because of accident, breakdown, 2423 hydraulic oil or engine oil leaks, or any other cause so as to maintain all 2424 equipment in a safe and operable condition. If an item of repair is covered by 2425 a warranty, Contractor shall obtain warranty performance. Contractor shall 2426 maintain accurate records of repair, which shall include the date and mileage, 2427 nature of repair and the verification by signature of a maintenance supervisor 2428 that the repair has been properly performed. 2429 6. Storage. Contractor shall arrange to store all vehicles and other equipment in 2430 safe and secure location(s) in accordance with all applicable zoning 2431 regulations. 2432 F. Operation. Vehicles shall be operated in compliance with federal, State and local 2433 laws and regulations including, but not limited to, the California Vehicle Code, the 2434 regulations of the California Air Resources Board (GARB) Waste Collection Vehicle 2435 Regulations as established in the California Code of Regulations Title 13 Section Franchise Agreement for Collection Services Page 61 City of Burlingame ,!T36 2700 et seq. and all applicable safety and local ordinances. Annually, Contractor 2437 shall provide the SBWMA and Agency with documentation of such compliance for 2438 each vehicle. For example, with regard to CARB regulations, such documentation 2439 shall demonstrate, at a minimum, the vehicle number, make, model, year, control 2440 technology used or planned, and the year that the control technology was applied 2441 or is planned to be applied. Contractor shall not load vehicles in excess of the 2442 manufacturer's recommendations or limitations imposed by federal, State, or local 2443 weight restrictions on vehicles or roads. 2444 Contractor equipment used for Solid Waste, Targeted Recyclable Materials, and 2445 Organic Materials services shall be registered with the California Department of 2446 Motor Vehicles. Equipment shall comply with US EPA noise emission regulations, 2447 currently codified at 40 CFR Part 205 and other applicable noise control 2448 regulations, and shall incorporate noise control features throughout the entire 2449 vehicle. 2450 Annually, Contractor shall have each Collection vehicle weighed at the Designated 2451 Transfer and Processing Facility to determine the unloaded weight ("tare weight') of 2452 the vehicle, and the total loaded weight of each load delivered to the Designated 2453 Transfer and Processing Facility. Upon a major repair that could affect the 2454 Collection vehicle tare weight, Contractor shall have the Collection vehicle re- 2455 weighed to establish a new tare weight. Contractor shall track and make 2456 adjustments to routes to eliminate ongoing over-weights associated with individual 57 routes. 458 8.05 CONTAINERS 2459 A. General. Contractor shall provide all Carts, Bins, Compactors, Kitchen Pails, and 2460 Drop Boxes, as appropriate, to all Customers as part of its obligations under this 2461 Agreement. As of the Commencement Date, all Single-Family Carts and Kitchen 2462 Pails must be new while other Containers may be used. Contractor-provided 2463 Containers shall be designed and constructed to be watertight and prevent the 2464 leakage of liquids. All Carts shall be manufactured by injection or rotational molding 2465 methods; contain post-consumer content; and meet the Cart design and 2466 performance requirements provided in Attachment D — Container Specifications. 2467 Carts provided to Customers shall have a useful life of ten (10) years as evidenced 2468 by a manufacturer's warranty or other documentation acceptable to the Agency. 2469 All Containers with a capacity of one (1) cubic yard or more shall meet applicable 2470 federal, State, and local regulations for Bin safety; shall be covered with attached 2471 lids; and shall have the capability to be locked if required or requested by Customer 2472 or Agency. 2473 All Containers shall be maintained in a safe, serviceable, and functional condition. 2474 B. Container Specifications 2475 1. Sizes. The Container sizes to be provided to Single-Family, Multi-Family, 2476 Commercial, and Agency Facility Customers are specified in Attachment D. 477 2. Color. The colors of the Containers provided to Single-Family, Multi-Family, 2478 Commercial, and Agency Facility Customers are specified in Attachment D. Franchise Agreement for Collection Services Page 62 City of Burlingame 2479 3. Loading. Minimum allowable loading requirements for the Bin and Drop Box 2480 contents shall be approved by the Agency prior to purchase based on the 2481 minimum manufacturer's load limits, as specified in Attachment D. 2482 C. Container Labeling. Contractor shall label each Container with white, hot- 2483 stamped lettering, and in-mold or heavy duty vinyl adhesive labels with graphics, 2484 illustrations or artwork that clearly conveys the type of materials (e.g., Solid Waste, 2485 Recyclable Materials, cardboard, mixed paper, Organic Materials, wood waste, 2486 metal, etc.) to be placed in the Container for Collection. The labeling shall be 2487 positioned on each Container so it is visible to the Customer and Collection vehicle 2488 drivers on the front side and top. The labeling shall be durable and weather 2489. resistant to outdoor conditions and have a minimum ten (10) year lifetime. 2490 All Containers shall prominently display information and graphics agreed upon by 2491 Agency, SBWMA and Contractor pursuant to Article 7. 2492 Final Container labeling layout, graphics and text shall be approved by the Agency 2493 and SBWMA prior to distribution to Customers. 2494 D. Cleaning and Painting. Contractor shall be responsible for steam cleaning and 2495 repainting all Containers, except Carts, to present an aesthetically pleasing clean 2496 appearance and to ensure this equipment is safely maintained and operationally 2497 sound. Contractor shall repaint all used Containers within eighteen (18) months of 2498 the Commencement Date and thereafter on an as needed basis. Upon Customer's 2499 request, Contractor shall steam clean all Solid Waste and Recyclable Materials 2500 Containers (or exchange existing Containers with clean Containers) twice annually, 2501 except Carts provided to Residential Premises, which Contractor is not obligated to 2502 clean or exchange. Contractor shall clean all Organic Materials Containers (or 2503 exchange existing Containers with clean Containers) quarterly, except Carts 2504 provided to Residential Premises, which Contractor is not obligated to clean or 2505 exchange. Contractor shall offer additional cleaning (or clean Container exchange) 2506 to Customers requesting such service and shall be entitled to bill Customers for 2507 such cleaning (or Container exchange) as specified in Attachment Q. 2508 Contractor shall be responsible for cleaning Containers at no additional charge to 2509 Customer to ensure that nuisance or public health concerns associated with vectors 2510 are addressed within two (2) Business Days after receipt of notification of said 2511 condition. 2512 If any Container is impacted by graffiti, Contractor shall remedy the situation within 2513 forty-eight (48) hours of being notified. 2514 E. Repair and Replacement. Contractor shall repair or replace all Containers 2515 damaged by Collection operations (e.g., vehicle apparatus interface) within three 2516 (3) Business Days of being notified by Customer or observing the damaged 2517 Container. If the repair or replacement cannot be completed within three (3) 2518 Business Days, the Contractor shall notify Customer and provide a Container of the 2519 same size or larger until the original Container can be replaced. 2520 At no additional cost, Contractor shall replace Customer Carts that have been 2521 stolen, lost, damaged or destroyed within five (5) Business Days. Contractor shall Franchise Agreement for Collection Services City of Burlingame Page 63 2522 allow Customer to exchange Containers for a Container of a different size at no 2523 additional cost and shall replace Containers within five (5) Business Days of 2524 Customer request. Upon written approval from Agency, Contractor shall allow 2525 Customers to rent or purchase additional Carts and shall be entitled to bill 2526 Customers as specified in Attachment Q. 2527 F. Agency's Rights to Containers. All Carts, Bins, Compactors, and Drop Boxes 2528 purchased or leased by Contractor and put into service at Customers' Premises 2529 before the first anniversary of the Commencement Date shall become property of 2530 the Agency upon expiration or early termination of this Agreement. All Carts, Bins, 2531 Containers, and Drop Boxes purchased or leased and put into service at 2532 Customers' Premises on or after the first anniversary of the Commencement Date 2533 that have not been fully depreciated shall be available to the Agency, at the 2534 Agency's option, at their net book value. 2535 At its sole discretion, the Agency may elect not to exercise its rights under this 2536 subsection. In such case, the Containers shall remain the property of the Contractor 2537 upon the expiration or earlier termination of this Agreement. In such case, 2538 Contractor shall be responsible for removing all Containers in service from 2539 Premises within ten (10) Business Days. 2540 8.06 PERSONNEL 541 A. General. Contractor shall furnish such qualified drivers, mechanical, supervisory, -, ,.1i42 customer service, clerical and other personnel as may be necessary to provide the 2543 services required by this Agreement in a safe, thorough, professional and efficient 2544 manner and shall provide, at a minimum, the number and type of personnel listed in 2545 Attachment O. All personnel furnished by. Contractor shall be subject to the 2546 "relationship of parties" provisions of Section 15.01. 2547 B. Employees of Previous Contractor. The Contractor shall offer employment to 2548 Collection vehicle drivers and helpers, mechanics, technicians, welders, and shop 2549 laborers by seniority under the Agreement who are qualified employees working 2550 under the prior franchise agreement who would otherwise become unemployed by 2551 reason of the change in contractors, provided that (i) the Contractor shall not be 2552 obligated to offer employment to more existing employees than the Contractor 2553 needs to perform the services required under this Agreement and (ii) the Contractor 2554 shall not be obligated to offer employment to existing employees that have not been 2555 employed by the Previous Contractor for at least one-hundred-twenty (120) Days 2556 immediately prior to the Commencement Date. 2557 For the purposes of Section 8.06.13, "qualified employee" shall mean an employee 2558 who: (i) is eligible for employment under federal and state law, (ii) meets the 2559 Contractor's minimum employment standards for new employees, (iii) is in a 2560 bargaining unit covered by collective bargaining agreements between the Previous 2561 Contractor and Teamsters Local 350 or Machinists Local 1414, (iv) does not 2562 present a demonstrable danger to customers, co-workers or employees of the 2563 Agency or the Collection Contractor and (v) possesses a valid and proper X564 commercial driver's license and California Department of Transportation medical ,-...2565 certificate. Franchise Agreement for Collection Services Page 64 City of Burlingame 2566 Contractor shall not discharge any retained workers for at least ninety (90) Days 2567 after the Commencement Date, except for cause. 2568 Additional employees, if needed, shall be obtained by Contractor pursuant to 2569 procedures in effect under the collective bargaining agreement of the Agency's 2570 Previous Contractor that provided Solid Waste Collection services prior to the 2571 Effective Date. 2572 Contractor shall maintain a list of the Previous Contractor's qualified employees 2573 who were not offered employment by the Contractor pursuant to this section prior to 2574 the Commencement Date or during the two (2) months following the 2575 Commencement Date. If any positions become available during the three (3) 2576 months following the initial two (2) month contract period (i.e., from March 1, 2011 2577 through May 30, 2011), Contractor shall offer employment to qualified employees 2578 on the list by seniority within the collective bargaining unit (if it exists). Contractor 2579 shall include this language in the collective bargaining agreements, if any such 2580 agreement exists or is negotiated. 2581 Contractor shall pay employees who (i) are retained by Contractor pursuant to this 2582 Section 8.06 and (ii) were in bargaining units covered by collective bargaining 2583 agreements in effect as of the Effective Date between the Previous Contractor and 2584 Teamsters Local 350 or Machinists Local 1414, wages and benefits no less than 2585 those included in the collective bargaining agreements in place in 2010. 2586 This Section 8.06.13 does not apply to management and supervisory personnel, 2587 non-represented employees, or workers furnished by an employment agency —IN 2588 operating as an independent contractor. 2589 2590 C. Collective Bargaining Agreements. This Agreement does not obligate Contractor 2591 to become a party to a collective bargaining agreement entered into by the Previous 2592 Contractor. If Contractor negotiates a new collective bargaining agreement with a 2593 union representing employees of the Previous Contractor, or an amendment to a 2594 collective bargaining agreement currently in force, either of which increases wages 2595 or benefits payable prior to October 2013 above those required by the collective 2596 bargaining agreement currently in force, the Agency is not required to include costs 2597 attributable to the increased wages or benefits in Contractor's Compensation for 2598 Rate Years One (2011) through Three (2013). 2599 D. Approval of Management. Contractor recognizes the importance of establishing a 2600 successful relationship between its management and Agency and SBWMA staff. 2601 Before extending an offer of employment for the position of general manager, both 2602 initially and throughout the Term, Contractor shall provide the SBWMA with the 2603 description of the proposed position, an.opportunity to review and, comment upon 2604 the position description, the background, experience and qualifications of each 2605 candidate being considered for the position, and an opportunity to meet with each 2606 candidate. Contractor shall give thoughtful consideration to the SBWMA's 2607 comments on the descriptions of the proposed position and each candidate, but 2608 shall have the ultimate right to make employment decisions in its best business 2609 judgment. Franchise Agreement for Collection Services City of Burlingame Page 65 \7610 If the Agency is dissatisfied with the performance of the management personnel, 2611 the Agency shall contact the general manager to discuss the employee's 2612 performance. If the Agency is dissatisfied with the general manager, the Agency 2613 shall contact the group manager to discuss the general manager's performance. 2614 Contractor shall advise the affected management employee of any complaints 2615 made by the Agency regarding the employee's performance. The Parties shall 2616 meet and confer in good faith to address the Agency's concerns, and shall agree on 2617 a corrective course of action to be implemented immediately. Contractor agrees to 2618 consider in good faith, but shall not be bound by, any requests by the Agency to 2619 transfer or re-assign a management employee should the Agency maintain in good 2620 faith that it can no longer work constructively with said employee. 2621 E. Provision of Field Supervision. Contractor shall designate qualified employees 2622 as supervisors of field operations. The field supervisor shall devote their time in the 2623 field supervising, managing, and monitoring Collection operations for reliability, 2624 quality, efficiency, safety, and for responding to Complaints. The number of field 2625 supervisors is specified in Attachment O. 2626 F. Driver Qualifications. All drivers shall be trained and qualified in the operation of 2627 Collection vehicles, and must have in effect a valid license, of the appropriate class, 2628 issued by the California Department of Motor Vehicles. Contractor shall use the 2629 Class II California Department of Motor Vehicles employer "Pull Notice Program" to '1630 monitor its drivers for safety. '2631 G. Customer Service Representative Training. Customer service representatives 2632 shall be trained on specific Agency service requirements, a minimum of once per 2633 quarter. An Agency information sheet shall be provided to each customer service 2634 representative for easy reference of Agency requirements and general Customer 2635 needs. Contractor shall provide the information sheet, training agenda, and 2636 associated documentation within five (5) Business Days of request from Agency. 2637 H. Safety Training. Contractor shall provide suitable operational and safety training 2638 for all of its employees who operate Collection vehicles or equipment or who are 2639 otherwise directly involved in such Collection. Contractor shall train its employees 2640 involved in Collection to identify, and not to Collect, Hazardous Waste or Infectious 2641 Waste. Upon the Agency's request, Contractor shall provide a copy of its safety 2642 policy and safety training program, the name of its safety officer, and the frequency 2643 of its trainings. 2644 I. No Gratuities. Contractor shall not permit its employees to demand or solicit, 2645 directly or indirectly, any additional compensation or gratuity from members of the 2646 public for Collection services or accept gratuities or compensation in exchange for 2647 additional collection services. 2648 J. Employee Conduct and Courtesy. Contractor shall employ only competent and 2649 qualified personnel who serve the public in a courteous, helpful, and impartial 2650 manner. Contractor shall use its best efforts to assure that all employees present a 7651 neat appearance and conduct themselves in a courteous manner. Contractor shall ,.,,-652 regularly train its employees in Customer courtesy, shall prohibit the use of loud or 2653 profane language, and shall instruct Collection employees to perform the work as Franchise Agreement for Collection Services City of Burlingame Page 66 2654 quietly as possible. If any employee is found not to be courteous or not to be 2655 performing services in the manner required by this Agreement, Contractor shall 2656 take all appropriate corrective measures. The Agency may require Contractor to 2657 reassign an employee, if the employee has conducted himself or herself 2658 inconsistently with the terms of this Agreement. 2659 Contractor shall adopt policies and procedures consistent with State and federal 2660 law that ensure a sober and drug-free workplace. This includes strictly prohibiting 2661 unlawful manufacture, distribution, possession, or use of any controlled substance 2662 in the workplace, regardless of whether the employee is on duty at the time. 2663 Further, the policies and procedures shall prohibit an employee from operating 2664 either Agency or Contractor equipment and vehicles (whether on or off duty) while 2665 under the influence of alcohol or drugs. The purpose of these policies and 2666 procedures is to ensure workplace safety, productivity, efficiency, and the quality of 2667 Contractor's service to Customers. 2668 K. Uniforms. While performing services under this Agreement, all Contractor's 2669 employees performing field service shall be dressed in clean uniforms and shall 2670 wear visible identification that include the employee's name and/or employee 2671 number, and Contractor's name. Uniform type, style, colors, and any modifications 2672 may be subject to approval by the Agency. 2673 8.07 HAZARDOUS WASTE INSPECTION AND HANDLING 2674 A. Inspection Program and Training. Contractor is required to inspect Solid Waste, --� 2675 Targeted Recyclable Materials, Organic Materials, and other materials put out for 2676 Collection and may reject Solid Waste, Targeted Recyclable Materials, Organic 2677 Materials, and other materials observed to be contaminated with Hazardous Waste 2678 and not Collect Hazardous Waste put out with Solid Waste, Targeted Recyclable 2679 Materials, and Organic Materials. Contractor shall develop a load inspection 2680 program that includes the following components: (i) personnel and training; (ii) load 2681 checking activities; (iii) management of wastes; and (iv) record keeping and 2682 emergency procedures. 2683 Contractor's load checking personnel, including its Collection vehicle drivers, shall 2684 be trained in: (i) the effects of Hazardous Substances on human health and the 2685 environment; (ii) identification of prohibited materials; and (iii) emergency 2686 notification and response procedures. Collection vehicle drivers shall inspect 2687 Containers before Collection when practical. 2688 B. Response to Hazardous Waste Identified During Collection. Under no 2689 circumstances shall Contractor's employees knowingly Collect Hazardous Waste or 2690 remove unsafe or poorly containerized Hazardous Waste from a Collection 2691 Container. If Contractor determines that material placed in any Container for 2692 Collection is Hazardous Waste or other material that may not legally be accepted or 2693 safely processed at the Designated Transfer and Processing Facility or presents a 2694 hazard to Contractor's employees, or those at the Designated Transfer and 2695 Processing Facility, the Contractor shall have the right to refuse to accept such 2696 material. The Generator shall be contacted by the Contractor and requested to 2697 arrange proper Disposal. If the Generator cannot be reached immediately, the 2698 Contractor shall, before leaving the Premises, leave a non-collection notice, which Franchise Agreement for Collection Services Page 67 City of Burlingame 2699 indicates the reason for refusing to Collect the material and lists the phone number 2700 for the San Mateo County Household Hazardous Waste Facility, or other resources 2701 as directed by Agency. Contractor's environmental technician shall be notified to 2702 handle the issue with the Generator. The Contractor's environmental technician 2703 shall be required to guide the Generator to safely containerizing the Hazardous 2704 Waste and shall explain the Generator's options for proper disposition of such 2705 material. 2706 If Hazardous Waste is found in a Collection Container or Collection area that could 2707 possibly result in imminent danger to people or property, the Contractor shall 2708 immediately notify the Agency's Fire Department using the nine-one-one (911) 2709 emergency telephone number. The Contractor shall notify the Agency of any 2710 Hazardous Waste identified in Containers or left at any Premises within twenty-four 2711 (24) hours of identification of such material. 2712 C. Response to Hazardous Waste Identified at Designated Transfer and 2713 Processing Facility. Contractor shall not knowingly deliver Unpermitted Material 2714 to the Designated Transfer and Processing Facility. The Operator shall use 2715 reasonable business efforts and standard industry practices to detect and discover 2716 Unpermitted Material at the facility and shall not knowingly accept Unpermitted 2717 Material. In the event that Unpermitted Material is delivered to the Designated 2718 Transfer and Processing Facility, the Operator shall be entitled to pursue whatever 2719 remedies, if any, it may have. against the Generator or Person(s) bringing such '720 Unpermitted Material to the Designated Transfer and Processing Facility provided L, 721 that in no case shall the Agency be considered the Person bringing such 2722 Unpermitted Material to the Designated Transfer and Processing Facility. 2723 Contractor acknowledges that in the event the operator identifies Unpermitted 2724 Materials in the materials delivered by Contractor before the materials are unloaded 2725 at the facility, the Operator has the right to reject the load and direct the Contractor 2726 to cause removal and Disposal of the Unpermitted Material in a safe and lawful 2727 manner, at the sole expense of the Contractor. If the Unpermitted Materials are 2728 delivered to the Designated Transfer and Processing Facility by Contractor and 2729 unloaded at the facility before their presence is detected, and the Generator cannot 2730 be identified or fails to remove the material after being requested to do so, the 2731 Contractor shall arrange for and/or pay for its proper Disposal. Contractor shall 2732 make reasonable efforts to identify and notify the Generator. The Contractor shall 2733 make a good faith effort to recover the cost of any transportation and Disposal from 2734 the Generator, and the cost of this effort, as well as the cost of Disposal shall be 2735 chargeable to the Generator, if appropriate documentation, as deemed necessary 2736 by the Agency, is provided to the Agency within five (5) Business Days of the 2737 occurrence. 2738 In the event Contractor delivers Unpermitted Materials on a frequent or continuous 2739 basis to the Designated Transfer and Processing Facility and the Contractor 2740 refuses to provide for the proper handling and disposition of such Unpermitted 2741 Material, the Operator may provide written notice to Agency of such refusal by 2742 Contractor. X2.743 D. Reporting, Regulations, and Record Keeping. Contractor shall comply with 2744 emergency notification procedures required by Applicable Laws and regulatory Franchise Agreement for Collection Services Page 68 City of Burlingame 2745 requirements. Contractor shall notify all appropriate agencies, including the 2746 California Department of Toxic Substances Control and Local Emergency 2747 Response Providers and the National Response Center of reportable quantities of 2748 Hazardous Waste found or observed in Solid Waste, Targeted Recyclable 2749 Materials, Organic Materials, Electronic Waste, Universal Waste, and Construction 2750 and Demolition Debris anywhere within Service Area. In addition to other required 2751 notifications, if Contractor observes any substances which it or its employees 2752 reasonably believe or suspect to contain Hazardous Wastes unlawfully Disposed of 2753 or released on any Agency property, including storm drains, streets or other public 2754 rights of way, Contractor will immediately notify the Agency and SBWMA. 2755 All records required by regulations shall be maintained at the Contractor's Facility. 2756 These records shall include., waste manifests, waste inventories, waste 2757 characterization records, inspection records, incident reports, and training records. 2758 Contractor shall maintain records showing the types and quantities, if any, of 2759 Hazardous Waste found in Solid Waste, Targeted Recyclable Materials, and 2760 Organic Materials which was inadvertently Collected from Customers within the 2761 Service Area, but diverted from landfilling. 2762 8.08 COMMUNICATION AND COOPERATION WITH AGENCY 2763 A. Communications. The Contractor's general manager shall have e-mail 2764 capabilities to enable the Agency and the Contractor's general manager to 2765 communicate via e-mail. Contractor's general manager shall respond to Agency 2766 email correspondence within twenty-four (24) hours. -� 2767 B. Monthly Meetings. Upon request from Agency, beginning on the Commencement 2768 Date, and then on a monthly basis thereafter, Contractor shall meet with the 2769 Agency to discuss progress of each active diversion program, quality and reliability 2770 of Collection services, and compliance with the terms of the Agreement. SBWMA 2771 may attend and participate in these meetings. At each monthly meeting, the 2772 Agency, Contractor and SBWMA, if attending, shall have the opportunity to present 2773 and discuss proposed changes in service such as changing program requirements 2774 or modifying Collection methods. 2775 C. Inspection by Agency. Agency shall have the right, but not the obligation, to 2776 observe and inspect all of the Contractor's operations under this Agreement. In 2777 connection therewith, Agency shall have the right to enter facilities used by 2778 Contractor during operating hours, speak to any of Contractor's employees and 2779 receive cooperation from such employees in response to inquiries. In addition, 2780 upon reasonable notice and without interference with Contractor's operations, 2781 Agency may review and copy any of Contractor's operational and business records 2782 related to this Agreement. If Agency so requests, Contractor shall make specified 2783 personnel available to accompany Agency employees on inspections and shall 2784 provide electronic copies of records stored in electronic media. 2785 8.09 COOPERATION WITH DESIGNATED TRANSFER AND PROCESSING FACILITY 2786 OPERATOR 2787 A. Communications. If requested by SBWMA, the Contractor shall meet with the -� 2788 SBWMA and Operator at least once each month to discuss issues related to the Franchise Agreement for Collection Services City of Burlingame Page 69 "7789 interaction of operations between Contractor and Operator including, but not limited 2790 to: 2791 1. Traffic flow; 2792 2. Vehicle weighing procedures; 2793 3. Targeted Recyclable Materials and Organic Materials Contamination; 2794 4. Hazardous Waste screening and safety policies; 2795 5. Receiving hours; 2796 6. Billing and payment of gate fees for delivery of materials; 2797 7. Vehicle parking; 2798 8. Employee facilities; and 2799 9. Maintenance facilities. 2800 The Contractor's general manager shall have e-mail capabilities to enable the 2801 Operator and the Contractor's general manager to communicate via e-mail. 2802 Contractor's general manager shall respond to the Operator's email 2803 correspondence within twenty-four (24) hours. 2804 B. Coordination of Hours. Contractor shall plan its Collection routes to be 2805 compatible with the Designated Transfer and Processing Facility receiving hours, V6 which shall be, at a minimum, Monday through Friday from 3:00 a.m. to 6:00 p.m. `,..)07 and Saturday and Sunday from 6:00 a.m. to 5:00 p.m. Contractor shall deliver 2808 Collected materials to the Designated Transfer and Processing Facility during the 2809 receiving hours of the Designated Transfer and Processing Facility. 2810 C. Compliance with Facility Rules. Contractor shall cooperate with Operator and 2811 comply with Operator's requirements including: (i) how and where to unload 2812 Collection vehicles; (ii) respecting operations and construction of new facilities; and 2813 (iii) the Operator's Hazardous Waste exclusion program. Contractor shall also 2814 cooperate with the contamination assessment procedures specified in Attachment 2815 E. All costs charged by the SBWMA for acceptance of Contractor's materials shall 2816 be paid by Contractor. Contractor shall receive compensation for transfer and 2817 processing costs in accordance with Article 11. 2818 8.10 BUY-RECYCLED POLICY 2819 The Contractor shall comply with the purchasing requirements described in this Section, 2820 and shall document its on-going compliance with these requirements upon Agency 2821 request. 2822 A. Recycled Paper. The Contractor shall use recycled paper for invoices, Bills, 2823 reports, and public education materials. The recycled paper shall have at least 2824 thirty percent (30%) post-consumer recycled content for uncoated paper and ten 2825 percent (10%) post-consumer recycled content for coated paper based on federal ')826 standards. Contractor shall state on all materials prepared with post-consumer �.► 327 recycled content the following: "Printed on Recycled Paper." Franchise Agreement for Collection Services City of Burlingame Page 70 2828 B. Re-Refined Motor Oil. Contractor shall be encouraged but not required to use re- 2829 refined motor oil for its Collection vehicles. 2830 C. Recycled Plastic. Contractor shall purchase Carts and Kitchen Pails that contain 2831 the minimum post-consumer content as specified in Attachment D. All Carts and 2832 Kitchen Pails shall be 100% recyclable. 2833 8.11 ANNUAL PERFORMANCE HEARING 2834 A. Objectives. Agency or SBWMA may hold a public performance hearing in April or 2835 May of each Rate Year, at which time Contractor shall be present and shall 2836 participate by making a presentation and responding to questions. SBWMA shall 2837 convene the hearing to address the positive and negative aspects of Contractor's 2838 overall performance. The purpose of the hearing may also involve discussion and 2839 review of technological, economic, and regulatory changes in Collection, waste 2840 reduction, Recycling, processing, and Disposal practices that can improve quality of 2841 service; increase waste reduction and diversion; and ensure services are being 2842 provided effectively and economically. Topics for discussion and review at the 2843 performance hearing shall include, but not be limited to: Contractor's 2844 accomplishments and compliance with various provisions of the Agreement, 2845 services provided, feasibility of providing new services, application of new 2846 technologies, Customer Complaints, possible amendments to this Agreement, 2847 developments in the Applicable Laws and regulations, new initiatives for meeting or 2848 exceeding waste reduction and Recycling goals, regulatory constraints, and 2849 Contractor performance. SBWMA and Contractor may each select additional topics -� 2850 for discussion at the performance hearing. 2851 B. Process. Within sixty (60) Days of notification provided by Agency or SBWMA to 2852 Contractor of its intent to conduct a performance hearing, Agency or SBWMA will 2853 submit questions to Contractor pertaining to Contractor's performance and 2854 Contractor shall submit its written response within thirty (30) days. SBWMA and 2855 Contractor shall meet to discuss the questions and Contractor's response prior to 2856 submittal by Contractor. SBWMA and Contractor may request from one another 2857 information or documents related to the scheduled public hearing and SBWMA and 2858 Contractor shall provide such information promptly. 2859 In addition to Contractor's responses to the questions submitted by SBWMA, 2860 Contractor may be required to submit a self-assessment report of Contractor's 2861 performance and information pertaining to the following: 2862 1. Recommended Changes or New Services. Changes and/or new services 2863 recommended to improve Agency's ability to meet and/or exceed the Agency's 2864 waste reduction and recycling goals and those of the Act. 2865 2. Complaint Records. The reports required by this Agreement regarding 2866 Complaints shall be used as one basis for review. Contractor may submit 2867 other relevant performance information and reports for consideration. Agency 2868 may request Contractor to submit specific information for the hearing. In 2869 addition, any Person may submit comments or Complaints during or before the 2870 hearing, either orally or in writing, and these shall be considered. Franchise Agreement for Collection Services City of Burlingame Page 71 '2871 3. Action Plan. Contractor shall prepare and submit an action plan for improving 2872 and/or modifying its Collection services and other services if requested. 2873 Not less than ten (10) Business Days prior to the scheduled hearing date, SBWMA 2874 and Contractor shall exchange any written reports and other documents that will be 2875 provided or presented at the hearing. Not less than five (5) Business Days before 2876 the scheduled hearing date, SBWMA and Contractor shall ensure their availability 2877 to discuss the content and underlying support for such reports. 2878 SBWMA and Contractor shall attend and participate in the performance hearing. 2879 Contractor may be required to present an oral report on its performance at the 2880 performance hearing. Contractor's failure to attend and participate in the 2881 performance hearing and provide an oral presentation upon request; provide a 2882 written response to the questions or request for a self assessment report submitted 2883 by Agency or SBWMA; or submit an action plan if requested by Agency or SBWMA 2884 may result in Liquidated Damages pursuant to Attachment J. 2885 Within sixty (60) Days after the conclusion of each performance hearing, SBWMA 2886 may issue a report. As a result of the review, Agency may require Contractor to 2887 provide expanded or new services within a reasonable time frame and for 2888 reasonable compensation; and Agency or SBWMA may direct Contractor to take 2889 corrective actions for any performance inadequacies. Franchise Agreement for Collection Services City of Burlingame Page 72 "1 2890 ARTICLE 9 RECORD KEEPING AND REPORTING 2891 9.01 GENERAL 2892 Contractor shall compile and maintain records related to its performance as necessary 2893 to develop the reports required by this Agreement. Contractor agrees to conduct data 2894 collection, record keeping, and reporting activities necessary to meet the reporting and 2895 Solid Waste program management needs of the Agency, and to comply with the Act, 2896 other Applicable Laws (including those specified in Section 15.14), and the requirements 2897 of this Agreement. 2898 Record keeping and reporting requirements specified in this Agreement shall not be 2899 considered a comprehensive list of reporting requirements. In particular, Article 9 is 2900 intended to highlight the general nature of records and reports and their minimum 2901 content and is not meant to comprehensively define the scope and content of the 2902 records and reports. Upon written direction or approval of Agency, the records and 2903 reports required by Contractor in accordance with this and other Articles of the 2904 Agreement shall be adjusted in number, format, or frequency. 2905 Contractor shall maintain all records necessary to allow the Agency to determine 2906 Contractor's compliance with the Terms of the Agreement and compliance with the 2907 Performance Standards and Performance Incentives/Disincentives presented in this 2908 Agreement including, but not limited to, those related to the quality of Collection services 2909 and customer service and those identified in Attachments I and J. The records shall be 2910 maintained in a manner that allows for easy verification of Contractor's performance. 2911 9.02 GENERAL RECORD KEEPING PROVISIONS 2912 A. General. Contractor shall maintain records required to conduct its operations, to 2913 support requests it may make to Agency, and to respond to requests from Agency. 2914 All records shall be maintained for five (5) years after the expiration or early 2915 termination of this Agreement. 2916 In order to set Contractor's Compensation pursuant to Article 11, it is necessary for 2917 Contractor to maintain accurate, detailed financial and operational information in a 2918 consistent format and to make such information available to the Agency in a timely 2919 fashion, and in accordance with reporting requirements specified in this Article. 2920 B. Inspection of Records. Agency shall have the right to inspect or review the 2921 payroll tax reports, specific documents or records required expressly or by 2922 inference pursuant to this Agreement, or any other similar records or reports of 2923 Contractor that Agency shall deem, in its sole discretion, reasonably necessary to 2924 evaluate annual reports, compensation applications provided for in this Agreement, 2925 and Contractor's performance or other matters related to this Agreement. 2926 The Agency, its auditors and other agents selected by the Agency, shall have the 2927 right, during regular business hours, to conduct unannounced on-site inspections 2928 and review of the records and accounting systems of Contractor and to make 2929 copies of any of Contractor's documents relevant to this Agreement. Upon request, 2930 Contractor shall arrange for records of Related Party Entities to be made available Franchise Agreement for Collection Services Page 73 City of Burlingame '*7931 to Agency and its official representatives for review, to the extent such records are 2932 reasonably necessary to evaluate annual reports, compensation applications, 2933 Contractor's performance, or other matters related to this Agreement. 2934 C. Retention of Records. Unless otherwise herein required, Contractor shall retain 2935 all records and data required to be maintained by this Agreement for the Term plus 2936 at least five (5) years after expiration or early termination of the Agreement. 2937 Records and data shall be in a chronological and organized form and readily and 2938 easily interpreted. At the Agency's request, records and data required to be 2939 retained shall be retrieved in a timely manner (which shall not exceed more than ten 2940 (10) Business Days unless Contractor obtains prior written approval from the 2941 Agency) by Contractor and made available to the Agency. 2942 Contractor shall maintain copies of all Billings and Billing collections (e.g., Customer 2943 payments) records or copies of Billing summary reports (that document all Billings 2944 and Billing Collections for each Customer) for five (5) years, following the date of 2945 Billings, for inspection and verification by Agency. 2946 Records and data required to be maintained that are not specifically directed to be 2947 retained that are, in the sole opinion of the Agency, material to the determination of 2948 Contractor's Compensation or Rates or to determinination of Contractor's 2949 performance, shall be retrieved by Contractor and made available to the Agency in 2950 a timely manner (which shall not exceed ten (10) Business Days unless Contractor '1951 obtains prior written approval from the Agency). When records and data are not 52 retained or provided by the Contractor, the Agency may make reasonable 953 assumptions regarding what information is contained in such records and data, and 2954 such assumption(s) shall be conclusive in whatever action the Agency takes. 2955 D. Record Security. Contractor shall maintain adequate record security to preserve 2956 records from events that can be reasonably anticipated such as a fire, theft, and an 2957 earthquake. Electronically-maintained data and/or records shall be protected, 2958 backed up, and stored at a separate site from the original data. 2959 9.03 RECORD KEEPING REQUIREMENTS 2960 A. Maintenance of Financial and Operational Records 2961 1. General. In order to effectuate Contractor's Compensation pursuant to Article 2962 11, it is necessary for Contractor to maintain accurate, detailed financial and 2963 operational information in a consistent format and to make such information 2964 available to the Agency and the SBWMA in a timely fashion. 2965 2. Contractor's Accounting Records. Contractor shall maintain accurate and 2966 complete accounting records containing the underlying financial and operating 2967 data relating to, and showing the basis for computation of, all costs associated 2968 with providing services under this Agreement. The accounting records shall be 2969 prepared in accordance with Generally Accepted Accounting Principles 2970 (GAAP) consistently applied. 2971 B. Collection Service Records x.972 Records shall be maintained and retained by Contractor for Agency relating to: Franchise Agreement for Collection Services Page 74 City of Burlingame 2973 1. Customer and Billing information including, but not limited to, the following for 2974 each Customer: 2975 a. Names, addresses, and phone numbers of Customer, Billing contact 2976 Person, and, if appropriate, for property manager or on-site contact 2977 Person; 2978 b. Solid Waste service level, Targeted Recyclable Materials service level, and 2979 Organic Materials service level (where service level includes the number of 2980 Containers, size of each Container, and the Collection frequency of each 2981 Container); 2982 c. Number of tenant or living units at Multi-Family Residential Complexes; 2983 d. Service exemptions for SFD Premises (if applicable); 2984 e. Special services (e.g., Backyard and Special Handling Collection for SFD 2985 Premises, push/pull charges, lock/unlock charges, etc.). 2986 Contractor's Customer and Billing system shall allow for information to be compiled 2987 easily and separately for each Service Sector. 2988 2. Weight and volume of material Collected by type (e.g., Solid Waste, Targeted 2989 Recyclable Materials, Organic Materials). Where possible, information shall be 2990 provided separately for each Service Sector. 2991 3. Route sheets and route maps identifying the accounts serviced by each 2992 Collection vehicle on a daily basis (e.g., detailed GPS reports). 2993 4. Facilities, equipment and personnel used. -� 2994 5. Facilities and equipment operations, maintenance and repair. 2995 6. Tonnage of Solid Waste, Targeted Recyclable Materials, Universal Waste, and 2996 Organic Materials listed separately by materials type and Service Sector and 2997 the facility where materials were delivered (e.g., Designated Transfer and 2998 Processing Facility). 2999 7. Monthly Overall Diversion Level, monthly SFD Diversion Level, and the monthly 3000 Commercial Diversion Level (each stated as a percentage) and calculated in 3001 accordance with Attachment I. 3002 8. Targeted Recyclable Materials, Used Motor Oil and Used Motor Oil Filters, 3003 Household Batteries, Cell Phones and Organic Materials Collection 3004 participation and set-out rates. 3005 9. Tonnage of materials Collected from On-Call Bulky Item Collection services 3006 described in sections 5.05, 5.06 and 5.12, community collection events as 3007 described in sections 5.13 and 5.14, and abandoned waste clean-up events 3008 described in section 5.09, reported separately by material type Collected and 3009 listing destination where materials were delivered (e.g., Goodwill Industries, 3010 Designated Transfer and Processing Facility, etc.). 3011 10. Tonnage of Solid Waste, Recyclable Materials, and Organic Materials 3012 Collected from Venues and Events as described in Section 5.08 reported 3013 separately by material type Collected and reported separately for each Venue 3014 and Event as the total Tonnage of each material type for each Venue or Event 3015 monthly. Franchise Agreement for Collection Services Page 75 City of Burlingame 3016 11. Volume of Used Motor Oil and number of Used Motor Oil Filters Collected by 3017 Contractor reported separately for each facility where materials were delivered. 3018 C. Other Programs Records 3019 Records for other programs shall be tailored to specific needs. In general, 3020 Contractor shall maintain and retain the following records: 3021 1. Plans, tasks, and milestones; and 3022 2. Accomplishments including activities conducted, dates, quantities of products 3023 used, produced or distributed, and numbers of participants and responses. 3024 D. Customer Service Records. Daily logs of all Complaints and Inquiries shall be 3025 retained for a minimum of thirty-six (36) months. Contractor shall maintain and 3026 retain customer service center records which include, but are not limited to the 3027 following statistics: 3028 1. Number of calls received on a daily and monthly basis; 3029 2. Number of calls answered on a daily and monthly basis; 3030 3. Number of abandoned (dropped) calls on a daily and monthly basis; 3031 4. Average abandoned time (i.e., Hold Time before abandoning call); 3032 5. Number of delayed calls (i.e., calls where caller is placed on hold before )33 speaking with a customer service agent) on a daily and monthly basis; 3034 6. Average Hold Time for incoming calls on a daily and monthly basis; 3035 7. Percentage of calls answered by a Person within thirty (30) seconds on a daily 3036 and monthly basis; 3037 8. Percentage of calls answered within three (3) minutes on a daily and monthly 3038 basis; 3039 9. Number of e-mail responses sent from the customer service department to 3040 Customers on a monthly basis; 3041 10. Number and percentage of Complaint and Inquiry e-mails or submissions 3042 through Contractor website that received responses before close of business 3043 on the Day received on a monthly basis; 3044 11. Number and percentage of Complaint and Inquiry e-mails that received 3045 responses by the close of business on the Day following the receipt of the 3046 Complaint or Inquiry; 3047 12. Number of Complaints and Inquiries received through Contractor's website on 3048 a daily and monthly basis; 3049 13. Names of all Customer service representatives employed; and, 3050 14. Minimum, average, and maximum number of customer service representatives 3051 employed during each month. 3052 E. CERCLA Defense Records. Agency views the ability to defend against CERCLA �-)053 and related litigation as a matter of great importance. For this reason, the Agency 3054 regards the ability to prove where Solid Waste Collected in the Agency area was Franchise Agreement for Collection Services Page 76 City of Burlingame 3055 taken for transfer or Disposal, to be matters of concern. Contractor shall maintain -� 3056 data retention and preservation systems which can establish where Solid Waste 3057 Collected in the Service Area was delivered for transfer or Disposal. This provision 3058 shall survive the expiration of this Agreement. 3059 F. Compilation of Information for State Law Purposes. Contractor shall compile 3060 information on amounts of Solid Waste delivered to the Designated Transfer and 3061 Processing Facility and to other locations, as well as other information which the 3062 Agency may reasonably request. 3063 Contractor shall maintain these records for a minimum of ten (10) years after 3064 expiration or earlier termination of the Agreement. Contractor shall provide these 3065 records to Agency (upon request or at the end of the record retention period) in an 3066 organized and indexed manner rather than destroying or Disposing of them. 3067 9.04 GENERAL REPORTING REQUIREMENTS 3068 A. Purpose. Records shall be maintained and retained in forms, on media, and by 3069 methods that facilitate flexible use of data contained in them to structure reports, as 3070 needed. Reports are intended to compile recorded data into useful forms of 3071 information that can be used to, among other things: 3072 1. Evaluate Diversion performance 3073 2. Evaluate Contractor's performance 3074 3. Monitor Customer participation in Targeted Recyclable Materials and Organic --� 3075 Materials Collection programs and in other programs using several different 3076 performance measures 3077 4. Monitor changes in the number of Customers and Customers' service levels 3078 5. Determine needs for adjustment to programs and cost for such changes 3079 6. Evaluate customer service and Complaints 3080 7. Determine and set Contractor's Compensation and Rates 3081 B. Report Format. Contractor may propose report formats that are responsive to the 3082 objectives and audiences for each report. The format of each report shall be 3083 approved by Agency. The Agency may review and request changes to Contractor's 3084 report formats and content and Contractor shall not unreasonably deny such 3085 requests. Contractor agrees to mail a copy of all reports to the Agency, and submit 3086 all reports by e-mail in a format compatible with the Agency's software and 3087 computers so the Agency can sort and analyze data. Contractor shall provide a 3088 certification statement, under penalty of perjury by the responsible Contractor 3089 official, that the report being submitted is true and correct to the best knowledge of 3090 such official after their reasonable inquiry. 3091 C. Submittal Schedule and Instructions. Contractor shall submit monthly reports 3092 within fifteen (15) Days after the end of the reporting month. Contractor shall 3093 submit quarterly reports within thirty (30) Days after the end of the reporting 3094 quarter. Contractor shall submit annual reports within forty-five (45) Days after the 3095 end of each Rate Year. Franchise Agreement for Collection Services City of Burlingame Page 77 '*M96 Contractor shall submit (via mail and e-mail) all reports to the person(s) designated 3097 by SBWMA and Agency. 3098 D. Failure to Report. The refusal or failure of Contractor to file any required reports, 3099 or to provide required information to Agency, or the inclusion of any materially false 3100 or misleading statement or representation by Contractor in such report shall be 3101 deemed a Contractor default as described in Section 14.01 subject to the notice 3102 and cure provisions of that section and shall subject Contractor to all remedies 3103 which are available to the Agency under the Agreement or otherwise. 3104 E Accuracy of Reports. The failure of Contractor to file accurate and timely reports, 3105 proposal(s), information or correspondence to Agency or SBWMA, or the inclusion 3106 of any inaccurate or misleading data, statement or representation by Contractor in 3107 such report(s), proposal(s), information or correspondence to Agency or SBWMA, 3108 shall be subject to Liquidated Damages as set forth in Attachment J. In addition, the 3109 inclusion of any materially false or misleading statement or representation by 3110 Contractor in such report shall be deemed a Contractor default as described in 3111 Section 14.01 subject to the notice and cure provisions of that section and shall 3112 subject Contractor to all remedies which are available to the Agency under the 3113 Agreement or otherwise. 3114 9.05 MONTHLY REPORTS 11.15 Monthly reports shall present the information described in this Section. Each monthly L.-16 report shall present the information below for that month and for each of the preceding 3117 twelve (12) months. 3118 A. Tonnage Information. Contractor shall provide the Tonnage information 3119 requested below by Service Sector on a monthly and year-to-date basis. However, 3120 the Agency reserves the right to request the monthly Tonnage data by route. 3121 1. Solid Waste. Total Solid Waste Tonnage Collected and Disposed by Service 3122 Sector. 3123 2. Targeted RecyclableMaterials Services. Total Targeted Recyclable Materials 3124 Tonnage Collected and delivered for processing by Service Sector listed 3125 separately by material type Collected (e.g., Single-Stream Recyclable 3126 Materials, Source Separated Cardboard, Source Separated Paper, Used Motor 3127 Oil, Used Motor Oil Filters, etc.). 3128 3. Organic Materials Services. Total Organic Materials Tonnage Collected and 3129 delivered for processing by Service Sector listed separately by material type 3130 (e.g., Plant Materials, Food Scraps, or Organic Materials). 3131 If Contractor does not separately track Multi-Family Tonnage data, Contractor shall 3132 conduct a semi-annual or annual Tonnage assessment if requested by the Agency 3133 in accordance with Section 7.06, which involves separately Collecting and weighing 3134 Multi-Family Solid Waste, Targeted Recyclable Materials, and Organic Materials to 3135 quantify Tonnage Collected during a given week. '136 B. Diversion Level. Contractor shall provide the monthly and year-to-date Calculated X3137 Overall Diversion Level, the monthly and year-to-date Residential Diversion Level, Franchise Agreement for Collection Services Page 78 City of Burlingame 3138 and the monthly and year-to-date Commercial Diversion Level (each stated as a 3139 percentage) calculated in accordance with Attachment I. In addition, Contractor 3140 shall present the calculations used to determine the diversion levels. 3141 C. Complaint, Inquiry and Service Requests Data. Contractor shall provide 3142 information on the number of Complaints, Inquiries service requests received from 3143 Customers, Generators, or other Person by category (e.g., missed pickups, noise 3144 Complaints, scheduled On-Call Bulky Item Collection Events, Overage events, 3145 Billing concerns, property damage claims, requests for information, delivery of 3146 Recycling Tote-Bags, inventory of Recycling Tote-Bags etc.). Complaint summary, 3147 for each month and cumulative for Rate Year to date, summarized by nature of 3148 Complaint, Inquiry and service request on a compatible computer disc or other 3149 memory device approved by Agency. The categorization of Complaints, Inquiries 3150 and service requests shall be agreed-upon by the Agency, SBWMA, and Contractor 3151 prior to the Commencement Date, and shall be adjusted during the Term upon 3152 agreement between Agency, SBWMA and Contractor. 3153 D. Call Center Data. Number of calls received, number of calls answered, number of 3154 dropped calls, percentage of dropped calls, Average Hold Time, percentage of calls 3155 answered in thirty (30) seconds. 3156 E. Monthly Gross Revenues and Fee Reports. Pursuant to Article 10, a statement 3157 itemizing each fee paid by Contractor to Agency in the month; detailing calculation 3158 of each monthly fee amount; and stating monthly Gross Revenues, by Service 3159 Sector, for all operations conducted or permitted by this Agreement. --� 3160 F. On-Site Customer Assessments and Visual Audits. Contractor shall report the 3161 number of and results of the site assessments and visual audits conducted for 3162 Multi-Family Dwelling, Commercial, and Agency Customers, which are required by 3163 Section 7.06. 3164 G. Quality Assurance Program. Contractor shall report monthly on its implementation 3165 of this program, described in Section 7.025, during the prior month. The report 3166 shall include (i) name and Service Sector of each Customer contacted, (ii) date, 3167 time and length of telephone call, (iii) name of customer service representative 3168 placing call, (iv) summary of Customer's responses to questions and other 3169 information provided, and (v) follow-up actions taken, if any, in response to calls. 3170 9.06 QUARTERLY REPORTS 3171 Quarterly reports shall present the information described in this Section. Each quarterly 3172 report shall present the information below for the reporting months of that quarter and 3173 for each of the preceding twelve (12) months. 3174 A. Tonnage Information. Contractor shall provide the Tonnage information 3175 requested below by Service Sector on a monthly and year-to-date basis. However, 3176 the Agency reserves the right to request the monthly Tonnage data by route. 3177 1. Solid Waste. Total Solid Waste Tonnage Collected and Disposed by Service 3178 Sector. Franchise Agreement for Collection Services Page 79 City of Burlingame 3179 2. Targeted Recyclable Materials Services. Total Targeted Recyclable Materials 3180 Tonnage Collected and delivered for processing by Service Sector listed 3181 separately by material type Collected (e.g., Single-Stream Targeted Recyclable 3182 Materials, Source Separated cardboard, Source Separated paper, Used Motor 3183 Oil, Used Motor Oil Filters, etc.). 3184 3. Organic Materials Services. Total Organic Materials Tonnage Collected and 3185 delivered for processing by Service Sector listed separately by material type 3186 (e.g., Plant Materials, Food Scraps, or Organic Materials). 3187 If Contractor does not separately track Multi-Family Tonnage data, Contractor shall 3188 conduct a semi-annual or annual Tonnage assessment if requested by Agency in 3189 accordance with Section 7.08 that involves separately Collecting and weighing 3190 Multi-Family Solid Waste, Targeted Recyclable Materials, and Organic Materials to 3191 quantify Tonnage Collected during a given week. 3192 B. Diversion Level. Contractor shall provide the quarterly and year-to-date Overall 3193 Diversion Level, the quarterly and year-to-date Single-Family Diversion Level, and 3194 the quarterly and year-to-date Commercial Diversion Level (each stated as a 3195 percentage) calculated in accordance with Attachment I. In addition, Contractor 3196 shall present the calculations used to determine the Diversion Levels. 3197 C. Education Activities 198 1. Public education materials produced and total number of each distributed. "3199 2. Dates, times, and names of meetings or events attended. 3200 3. Dates, times, and names of school(s) where presentations were performed. 3201 4. Other educational activities as may be requested by Agency. 3202 D. Complaint. Inquiry and Service Requests Data. Number of Complaints, Inquiries 3203 and service requests received from Customers, Generators, or other Person by 3204 category (e.g., missed pickups, noise Complaints, scheduled On-Call Bulky Item 3205 Collection Events, Overages, Billing concerns, property damage claims, requests 3206 for information, etc.). Complaint summary, for each month and cumulative for Rate 3207 Year to date, summarized by nature of Complaints on a compatible computer disc 3208 or other memory device approved by Agency. 3209 E. Call Center Data. Number of calls received, number of calls answered, number of 3210 dropped calls, percentage of dropped calls, average delay time, Average Hold 3211 Time, percentage of calls answered in thirty (30) seconds, percentage of calls 3212 answered in ninety (90) seconds reported for the month. 3213 F. Quarterly Gross Revenues and Fee Reports. Pursuant to Article 10, a statement 3214 itemizing each fee paid by Contractor to Agency in the quarter; detailing calculation 3215 of each monthly fee amount; and stating monthly Gross Revenues, by Service 3216 Sector, for all operations conducted or permitted by this Agreement. 3217 G. Determination and Payment of Liquidated Damages. In accordance with the ')218 requirements of Section 14.07, Contractor shall provide a report that identifies any 3219 non-compliance with performance measures listed in Attachment J (except for Franchise Agreement for Collection Services Page 80 City of Burlingame 3220 compliance with diversion-related standards which shall be reported as part of the 3221 Contractor's annual report) and include calculation of the Liquidated Damages due. 3222 This report shall be accompanied by supporting documentation identifying either 3223 compliance with or level of non-compliance with the performance measures. 3224 Contractor may include with its report a written request to meet with Agency's 3225 Manager or his or her designee to discuss Contractor's evidence refuting the basis 3226 for assessing Liquidated Damages pertaining to unacceptable employee behavior. 3227 In such cases, Contractor shall include with its report evidence in writing and written 3228 testimony of its employees and others relevant to the incident(s)/non-performance. 3229 Agency's Manager or his or her designee will provide Contractor with a written 3230 explanation of his or her determination on each incident(s)/non-performance. The 3231 decision of Agency's Manager or his or her designee shall be final. 3232 H. Account Summary. For monthly reports following the end of each quarter (e.g., 3233 for monthly reports submitted in January, April, July, and October), provide the 3234 following account summary information in table format: 3235 1. Number of Customers in each Rate category. 3236 2. Total number of Residential, Commercial, and Drop Box Customers 3237 subscribing to Solid Waste, Targeted Recyclable Materials, and Organic 3238 Materials Collection service listed separately by Service Sector and material 3239 type. 3240 3. Percentage of Customers subscribing to Targeted Recyclable Materials 3241 Collection service (listed separately for Multi-Family, Commercial, and Drop 3242 Box Customers), which shall be equal to the total number of Targeted 3243 Recyclable Materials Customers divided by the total number of Solid Waste 3244 Customers. 3245 4. Percentage of Customers subscribing to Organic Materials Collection service 3246 (listed separately for Multi-Family, Commercial, and Drop Box Customers), 3247 which shall be equal to the total number of Organic Materials Customers 3248 divided by the total number of Solid Waste Customers. 3249 I. On-Site Customer Assessments and Visual Audits. Contractor shall report the 3250 number of and results of the site assessments conducted for Multi-Family and 3251 Commercial Customers, which are required by Article 7. 3252 J. Summary Assessment. Highlight significant accomplishments and problems. 3253 Identify recommendations and/or plans to improve services. 3254 K. Public Education Plan. The quarterly report submitted in October of each year 3255 shall include the public education plan for the coming year pursuant to Section 7.03 3256 of this Agreement. 3257 L. Hazardous Waste Records. A summary or copy of the Hazardous Waste records 3258 required under Section 8.07.D. 3259 M. Operational Data. Contractor shall provide GPS reports as requested by Agency 3260 or SBWMA. In addition, Contractor shall submit a summary of Collection route 3261 operational data including: average number of Customers and Containers serviced --� 3262 per route per Day for each Collection route; average number of actual both on-route Franchise Agreement for Collection Services City of Burlingame Page 81 3263 and off-route hours per Day by route (distinguishing between normal and hard-to- 3264 serve routes, if appropriate); and, one-hundred (100) largest generators based on 3265 weekly Solid Waste volumes (listed in descending order) within Agency for both 3266 Commercial and Multi-Family Customers. This reporting shall include, at a 3267 minimum: the name of the Customer; the name of the business; the address of the 3268 business; the type(s) of service received (e.g. Collection of Solid Waste, Single- 3269 Stream Targeted Recyclable Materials, Plant Materials, Food Scraps, Organic 3270 Materials, Source Separated cardboard, Source Separated paper, etc.); the volume 3271 of service received weekly measured in cubic yards; the frequency of service 3272 received measured in number of Collections per week; the diversion volume 3273 measured as total service level volume divided by Targeted Recyclables Materials 3274 and/or Organic Materials Collection volume; and, the change in service level from 3275 the prior quarter. 3276 N. Commercial Recycling Promotion Program Status Report. Contractor must 3277 prepare and submit, both quarterly and annually, to Agency and SBWMA, a 3278 Commercial Recycling Program Status Report. The Commercial Recycling Program 3279 Status Report shall include, but not be limited to: 3280 1. A summary of training and professional development activities for the 3281 Commercial Recycling Promotion and supervisory staff; 3282 2. A description of the strategy and overall approach to attract and retain a high 8283 quality and effective Commercial Recycling Promotion Program and X84 supervisory staff; 3285 3. A description and status of meeting the goals and objectives for the 3286 Commercial Recycling Promotion team and how these goals and objectives 3287 are tied to the compensation incentive plan. (Contractor must explain how the 3288 stated goals and objectives will be accomplished if no compensation incentive 3289 plan is used.) 3290 4. A description of Contractor's sales strategy for maintaining and/or expanding 3291 the existing Commercial Recycling account base and diversion levels. 3292 5. A description of the services provided to the Commercial and Agency Facility 3293 sectors. 3294 6. A detailed accounting of diversion statistics for the Commercial and Agency 3295 Facility sectors. 3296 O. Other Information. Other information or reports that Agency may reasonably 3297 request or require be added to quarterly reporting. These requests may include, 3298 but shall not be limited to, information regarding On-Call Collection programs, Used 3299 Motor Oil and Used Motor Oil Filter Collection, and large Events and Venues 3300 Collection. 3301 P. Determination and Payment of Performance Incentives and Disincentives. In 3302 accordance with the requirements of Section 11.07, Contractor shall provide with its 303 quarterly report, a report that identifies compliance with the performance standards ` 3304 listed in Attachment I and includes calculation of the Performance Incentive Franchise Agreement for Collection Services Page 82 City of Burlingame 3305 payments and disincentive assessments due. Performance incentives (in the form 3306 of increased compensation to Contractor) will be awarded by Agency for excellent 3307 performance on aspects of Solid Waste diversion, Collection service delivery and 3308 customer service as specified in Attachment I. Performance disincentives will be 3309 assessed by Agency for substandard performance on aspects of Solid Waste 3310 diversion, Targeted Recyclable Materials contamination, Organic Materials 3311 contamination, Plant Materials contamination, Collection service delivery and 3312 customer service specified in Attachment I. 3313 Contractor's payment of performance disincentives related to Contamination are to 3314 be included with submittal of Contractor's quarterly report to the SBWMA. All other 3315 performance incentives and disincentives payments are to be included in 3316 Contractor's annual Rate Application and Contractor's Compensation for the next 3317 Rate Year will be increased or decreased by the net amount of performance 3318 incentive payments and disincentive assessments calculated in the Application. 3319 Performance incentives and disincentives for Overall Diversion Level, Minimum 3320 Single-Family Diversion Level, Minimum Commercial Diversion Level, 3321 Contamination, Average Speed of Answer and Ninety (90) Second Maximum Hold 3322 Time shall be calculated in aggregate for the SBWMA Service Area and Agency's 3323 share shall be proportional based on the tons of Solid Waste Collected by 3324 Contractor for Rate Year One (2011) by Previous Contractor. Performance 3325 incentives and disincentives for Single-Family Missed Pick-Up Initial Complaints 3326 and Single-Family Missed Pick-Up Collection Events shall be calculated separately 3327 for each Agency. 3328 3329 9.07 ANNUAL REPORTS 3330 Annual reports shall present the information described in this Section in addition to the 3331 information required for quarterly reports pursuant to Section 9.05. 3332 A. Operational Information 3333 1. Routes by Service Sector 3334 a. Number of routes per Day 3335 b. Types of vehicles 3336 c. Crew size per route 3337 e. Number of full-time equivalent routes 3338 f. Number of accounts per route 3339 g. Total hours per Service Sector per Day and per year 3340 h. Average cost per route 3341 i. Route sheets and maps 3342 2. Personnel 3343 a. Organizational chart 3344 b. Job classifications and number of full-time equivalent positions for each 3345 (e.g. administrative, customer service representatives, drivers, 3346 supervisors, educational staff, etc.) -� Franchise Agreement for Collection Services City of Burlingame Page 83 N. 3347 c. Annual wages by job classification including benefits 3348 3. Productivity Statistics 3349 a. Number of accounts per Service Sector 3350 b. Number of set-outs per Service Sector 3351 c. Tons per route per Day by Service Sector 3352 4. Operational Changes 3353 a. Number of routes 3354 b. Staffing 3355 c. Supervision 3356 d. Collection services 3357 5. Equipment -An inventory of equipment in accordance with Section 8.04.D. 3358 6. Billing - Billing review report in accordance with Section 7.01.F. 3359 B. Customer Account Information. As part of the annual reporting requirement, 3360 Contractor shall make available to Agency detailed Customer account information 3361 in tabular format and in electronic format (in computer software format that is 3362 compatible with the Agency's) that includes, at a minimum, the following information 3363 for each Customer: account number; service address; Customer's name, address, 3364 and phone number; Billing contact name, Billing address, and phone number; Solid 365 Waste, Targeted Recyclable Materials, and Organic Materials Collection service X566 level (i.e., number of Containers, size of Containers, frequency of Collection, and 3367 Day(s) of Collection), and Rate charged. For Multi-Family Customers, the 3368 Customer account information shall also include the number of dwelling units at 3369 each Multi-Family Residential Complex. 3370 C. Customer Service Operations. Contractor shall annually prepare and submit, to 3371 Agency and SBWMA, a Customer Service Operations Plan that shall include, at a 3372 minimum, the following sections: 3373 1. Customer Service Call Center 3374 A. Provide the number CSR supervisory staff and describe their 3375 responsibilities. 3376 B. Contractor must describe its training strategy for CSR's and CSR 3377 supervisory staff. 3378 C. Contractor must describe its strategy and overall approach to attracting 3379 and retaining a high quality CSR staff. 3380 2. Website 3381 A. Number of on-line payments made 3382 B. Number of On-Call Collection Services scheduled 3383 C. Number of On-Call Bulky Goods Collections scheduled 3384 D. Number of extra Solid Waste pick-ups scheduled 3385 E. Number of service changes requested 3386 F. Number of Complaints documented and resolved \..3387 3. Customer Information System 3388 A. Status of any changes or upgrades made to system software Franchise Agreement for Collection Services Page 84 City of Burlingame 3389 B. Description of proposed changes to system software 3390 C. Explanation and schedule of training activities 3391 4. Staffing 3392 5. Commercial customer service 3393 D. Related Party Entities. Contractor agrees that all financial transactions with all 3394 Related Party Entities shall be approved in advance in writing and disclosed 3395 annually (coinciding with Contractor's annual audited financial statements referred 3396 to in this Section 9.07) to the Agency in a separate disclosure letter to the Agency. 3397 This letter shall include the following information: a general description of the nature 3398 of each transaction, or type of (for many similar) transaction, as applicable. Such 3399 description shall include for each (or similar) transaction, amounts, specific Related 3400 Party Entity, basis of amount (how amount was determined), and description of the 3401 allocation methodology used to allocate any common costs. Amounts shall be 3402 reconciled to the Related Party Entity disclosures made in Contractor's annual 3403 audited financial statements referred to in this Section. 3404 At the Agency's request, Contractor shall provide the Agency with copies of working 3405 papers or other documentation deemed relevant by the Agency relating to 3406 information shown in the annual disclosure letter. The annual disclosure letter shall 3407 be provided to the Agency within sixty (60) Business Days of Contractor's Fiscal 3408 Year end. 3409 E. Contractor's Review of Billings. Pursuant to the requirements described in --� 3410 Section 7.01.F, Contractor shall submit a report on its review of Billings. 3411 F. Determination and Payment of Liquidated Damages. In accordance with the 3412 requirements of subsections 14.07 and 11.07.D, Contractor shall provide with its 3413 annual report, a report that identifies any non-compliance with the performance 3414 standards listed in Attachment J and includes calculation of the Liquidated 3415 Damages due. This report shall be accompanied by supporting documentation 3416 identifying Contractor's compliance or non-compliance with the specified 3417 performance standards. The report submittal shall be accompanied by a check 3418 from Contractor in the amount of the Liquidated Damages due (per Contractor's 3419 calculation and self-reporting) for the reporting period. 3420 G. Determination and Payment of Performance Incentives and Disincentives. In 3421 accordance with the requirements of subsection 11.07, Contractor shall provide 3422 with its annual report, a report that identifies any non-compliance with the 3423 performance standards listed in Attachment I and includes calculation of the 3424 Performance Incentive payments and Disincentive assessments due. Performance 3425 Incentives (in the form of increased compensation to Contractor) will be awarded by 3426 Agency for excellent performance on aspects of Solid. Waste diversion, Collection 3427 service delivery and customer service as specified in Attachment I. Performance 3428 disincentives will be assessed by Agency for substandard performance on aspects 3429 of Solid Waste diversion, Collection service delivery and customer service specified 3430 in Attachment I. 3431 Payment related to Performance Incentives and Disincentives, other than those -� 3432 related to Contamination, are to be included in Contractor's annual Rate,Application Franchise Agreement for Collection Services City of Burlingame Page 85 X33 and Contractor's Compensation for the next Rate Year will be increased or 3434 decreased by the net amount of Performance Incentive payments and Disincentive 3435 assessments calculated. Performance Incentives and Disincentives shall be 3436 calculated as specified in Section 9.06.P. 3437 9.08 EVENT-SPECIFIC REPORTING 3438 Event-specific reports shall be submitted following the occurrence of the event as 3439 described in this Section. 3440 A. Report of Accumulated Solid Waste; Unauthorized Dumping. As required by 3441 Section 7.07, Contractor shall report: (i) the addresses of any Premises at which 3442 the driver observes that Solid Waste, Targeted Recyclable Materials, and/or 3443 Organic Materials is accumulating; and (ii) the address, or other location 3444 description, at which Solid Waste, Targeted Recyclable Materials, and/or Organic 3445 Materials has been dumped in an apparently unauthorized manner. The report 3446 shall be delivered to the Agency within one (1) Business Day of such observation. 3447 B. Hazardous Waste. As required by Section 8.07, the Contractor shall notify the 3448 Agency of any Hazardous Waste identified in Containers or left at any Premises 3449 within twenty-four (24) hours of identification of such material. 3450 C. Reporting Adverse Information. Contractor shall provide Agency two (2) copies 3451 (one (1) to the Agency Manager, one (1) to the Agency Attorney) of all reports, -152 pleadings, applications, notifications, Notices of Violation, communications or other Z53 material relating specifically to Contractor's performance of services pursuant to 3454 this Agreement, submitted by Contractor to, or received by Contractor from, the 3455 United States or California Environmental Protection Agency, the California 3456 Integrated Waste Management Board, the Securities and Exchange Commission or 3457 any other federal, State, County, or local agency, including any federal or State 3458 court. Copies shall be submitted to Agency simultaneously with Contractor's filing 3459 or submission of such matters with said agencies. Contractor's routine 3460 correspondence to said agencies need not be submitted to Agency, but shall be 3461 made available to Agency promptly upon Agency's written request. 3462 9.09 UPON-REQUEST REPORTING 3463 A. Holiday Tree Services. Within ten (10) Business Days of Agency's request, 3464 Contractor shall report the Tonnage of Holiday Trees collected at the Drop Box 3465 sites or at drop-off sites (if drop-off sites were established). 3466 B. Other. The Agency reserves the right to request additional reports from the 3467 Contractor, and the Contractor shall deliver such reports within twenty-five (25) 3468 Business Days of such request provided that such information is similar in nature to 3469 the required elements of the monthly, quarterly or annual reporting requirements 3470 described in Sections 9.05, 9.06, and 9.07. If the information requested by the 3471 Agency is not typically part of the Contractor's reporting requirements described in 3472 Sections 9.05, 9.06, and 9.07, Contractor shall provide such information if the 3473 Contractor is required to maintain the information under the record-keeping '474 requirements described in Sections 9.01, 9.02, and 9.03. Franchise Agreement for Collection Services Page 86 City of Burlingame 3475 ARTICLE 10 FRANCHISE FEE AND OTHER FEES 3476 10.01 GENERAL 3477 The fees described in this Article shall be treated as Pass-Through Costs for the 3478 purposes of determining Contractor's Compensation and shall be recoverable through 3479 the Rates that Contractor charges to Customers. Contractor shall separately identify 3480 any of the fees established under this Article on Customer bills if directed to do so by 3481 Agency. 3482 10.02 FRANCHISE FEE 3483 In consideration of the exclusive franchise granted to Contractor by this Agreement, and 3484 to reimburse Agency for costs incurred in administering this Agreement, Contractor shall 3485 pay to Agency a Franchise Fee specified in Attachment M. 3486 10.03 OTHER FEES 3487 Agency has adopted other fees which are intended to recover the costs of services 3488 related to solid waste management, recycling, cleanliness of public streets and/or public 3489 litter and recycling containers through inclusion in solid waste/recycling collection Rates. 3490 The other fees currently in effect, or which are expected to be in effect as of January 1, 3491 2011 are also listed on Attachment M. 3492 10.04 TIME AND METHOD OF PAYMENT 3493 On or before the twentieth (20th) day after the end of each month, Contractor shall pay 3494 to Agency (i) the amount of the Franchise Fees due on Gross Revenues Billed during 3495 the immediate previous month, (ii) one-twelfth of any other fee established by Agency 3496 unless Agency directs a different payment schedule for such other fees. 3497 Contractor shall provide, concurrently with the payment of fees, a statement showing the 3498 calculation of each fee, including the Gross Revenues Billed from Customers in each 3499 Service Sector for that month. The statement shall be in a format, and contain the level 3500 of detail, specified by Agency. Payments from Contractor to Agency shall be made by 3501 wire transfer or other method authorized by Agency. 3502 If a fee is not paid on time, Contractor shall pay a late payment charge equal to two 3503 percent (2%) of the fees due for that month. In addition, Contractor shall pay an 3504 additional two percent (2%) on any unpaid balance for each thirty (30) Day period a 3505 portion of the fee due remains unpaid. Late payment charges are not included in 3506 Contractor's Compensation and may not be recovered through Rates. Changes to 3507 Contractor's Compensation to reflect increases or decreases in fees, or the addition of 3508 new fees, are not subject to the Special Compensation Review provisions in Section 3509 11.05. 3510 10.05 ADJUSTMENTS TO FEES; ADDITIONAL FEES 3511 Agency may from time to time adjust the amount of the fees described in this Article and 3512 may establish other fees. Changes in the total amount of fees to be collected by 3513 Contractor and remitted to Agency shall be reflected in an adjustment to Contractor's -� 3514 Compensation and Rates. Franchise Agreement for Collection Services City of Burlingame Page 87 3515 ARTICLE 11 CONTRACTOR'S COMPENSATION, PASS-THROUGH 3516 COSTS, AND RATES 3517 11.01 OVERVIEW 3518 A. Contractor's Compensation includes three components: 3519 1. Annual Cost of Operations. These include the cost of labor, equipment, 3520 materials and supplies, fuel, insurance, bonds, taxes, overhead and all other 3521 costs necessary to perform all the services required, in the manner required, by 3522 this Agreement, with the exception of costs identified in subsection A.3. 3523 2. Profit. Contractor's profit is determined by applying the Operating Ratio of ninety 3524 and one-half percent (90.5%) to annual costs of operation described in 3525 subsection A.1. 3526 3. Contractor Pass-Through Costs. These consist of costs which Contractor is 3527 obligated to pay but on which Contractor does not earn a profit and currently 3528 consist of: (i) interest; and (ii) regulatory agency fees. 3529 B. Attachment N includes baseline financial and operational information which is used 3530 to calculate Contractor's Compensation. The Annual Costs of Operation, Profit, 3531 and Contractor Pass-Through Costs shown on Attachment N: (i) are based on 3532 Contractor's Proposal; (ii) are allocated among Member Agencies using the 533 methodology specified in Attachment K, Section 6; and (iii) have been adjusted to X534 reflect refinements in the scope of services and decisions by individual Member 3535 Agencies as to specific programs, levels of service or other unique factors affecting 3536 only their jurisdiction. 3537 C. Contractor's Compensation for Rate Year One will be determined as provided in 3538 Section 11.02.A. Annually thereafter, Contractor's Compensation will be adjusted 3539 as provided in Section 11:02.13, C and D. 3540 D. After the conclusion of each Rate Year, SBWMA will conduct a revenue 3541 reconciliation process as provided in Section 11.03. The purpose of this procedure 3542 is to reconcile Net Revenues Billed by Contractor for a Rate Year with the approved 3543 Contractor's Compensation. Adjustments to Contractor's Compensation will be 3544 made in a subsequent year to recover any excess revenue from Contractor or to 3545 compensate Contractor for a revenue shortfall. 3546 E. However, no adjustments to Contractor's Compensation will be made for 3547 differences between Costs of Operation or Pass-Through Costs as calculated and 3548 as actually incurred, with the exception of cost differences due to changes in scope 3549 of services (Section 11.06) or as authorized by a Special Compensation Review 3550 (Section 11.05). If Contractor's actual Costs of Operation are more or less than the 3551 amounts included in the annual calculation of Contractor's Compensation, 3552 Contractor is neither entitled to an increase in compensation, nor subject to a 3553 reduction in compensation, in future Rate Years. Franchise Agreement for Collection Services Page 88 City of Burlingame 3554 11.02 DETERMINATION OF CONTRACTOR'S COMPENSATION 3555 A. Contractor's Compensation for Rate Year One (2011). Contractor's 3556 Compensation for 2011 shall be determined in 2010. Costs shown on Attachment N 3557 will be adjusted to reflect changes from 2008 when Contractor submitted its 3558 Proposal, for the following factors: 3559 • Inflation; 3560 • Wage rates and benefits for employees covered by collective bargaining 3561 agreements; 3562 0 Capital equipment costs; and 3563 • Customer account and service levels. 3564 All as provided in Attachment K, Section 3. 3565 If Contractor enters into a franchise agreement with any other Member Agency which 3566 uses a substantially different methodology for calculating Contractor's Compensation 3567 than that set forth in Article 11 and Attachments K and N of this Agreement, then (i) for 3568 purposes of calculating Contractor's Compensation under this Agreement, Contractor's 3569 costs of providing service to such other Member Agency shall continue to be calculated 3570 and allocated using the methodology set forth in Attachments K and N and (ii) 3571 Contractor's Compensation for providing service to such other Member Agency shall be 3572 as set forth in the franchise agreement between it and Contractor. Any such franchise 3573 agreement shall (i) implement the performance incentives and disincentives provided for 3574 in this Agreement and (ii) require Contractor to pay sums due to SBWMA for delivery of 3575 materials from such Member Agency to the SRDC. 3576 B. Contractor's Compensation for Rate Year Two (2012). Contractor's 3577 Compensation for 2012 shall be based on Contractor's Compensation for 2011 3578 adjusted to reflect inflation, changes in wage rates and benefits for employees 3579 covered by collective bargaining agreements. 3580 C. Contractor's Compensation for Rate Year Three (2013). Contractor's 3581 Compensation for 2013 shall be based on Contractor's Compensation for 2012 3582 adjusted to reflect inflation, changes in wage rates and benefits for employees 3583 covered by collective bargaining agreements, 2013 Customer account and service 3584 levels, and the difference between Contractor's Compensation approved for 2011 3585 and Net Revenues Billed for 2011. The adiustment for Customer account and 3586 service levels shall be the final adjustment made during the Term for those 3587 variables. 3588 D. Contractor's Compensation for Rate Year Four (2014) and Subsequent Years. 3589 Contractor's Compensation shall be adjusted annually, commencing with the 3590 determination of Contractor's Compensation for Rate Year Four (2014) and 3591 continuing through the remaining Term including any extension periods to reflect 3592 inflation, changes in wages and benefits for employees covered by collective 3593 bargaining agreements in effect as of the Commencement Date of this Agreement, 359,4 and the difference between Contractor's Compensation approved for the prior year `3595 (e.g., 2012) and Net Revenues Billed for 2012 and similarly for subsequent years. Franchise Agreement for Collection Services City of Burlingame Page 89 .... 3596 For Rate Year Four (2014) through the last Rate Year of the Term, no changes to 3597 Contractor's Compensation will be made to reflect actual costs or to reflect changes 3598 in Customer account and service levels. 3599 11.03 ANNUAL REVENUE RECONCILIATION PROCESS 3600 After completion of each Rate Year, a revenue reconciliation process will be 3601 implemented as provided in this section and described in Attachment K, Section 8. 3602 The purpose of this process is to determine the difference between the actual Net 3603 Revenues Billed by Contractor for the preceding Rate Year and the Contractor's 3604 Compensation approved for that Rate Year. 3605 The Contractor shall submit a report to Agency and SBWMA on or before March 31 of 3606 each Rate Year, commencing March 31, 2012. 3607 The report shall include the following information (items) for the preceding Rate Year: 3608 A. Gross Revenue Billed. Gross Revenue Billed is the total amount billed by 3609 Contractor to Customers for all services attributable to the Rate Year in question. 3610 The report will identify the amount attributable to each Member Agency. (In the 3611 case of agencies that bill Customers directly for some or all of the services provided 3612 by Contractor, Gross Revenue Billed will include all amounts paid to Contractor by '613 those agencies.) I 3614 B. Payments to SBWMA. Payments to SBWMA are the amounts charged by SBWMA 3615 for delivery of materials to the Designated Transfer and Disposal Facility. They do 3616 not include payments to SBWMA pursuant to Section 6.02 for excess 3617 contamination. The report will identify the amount of these payments attributable to 3618 each Member Agency, using the methodology described in Attachment K, Section 3619 6. 3620 C. Payments to Agencies for Franchise Fees and other fees described in Article 3621 10. The report will identify the amount of these payments attributable to the Rate 3622 Year in question made to each Member Agency. 3623 D. Revenues Attributable to Unscheduled Service. Contractor is obligated to 3624 provide some services to Customers or Member Agencies on an unscheduled "on- 3625 call" or intermittent basis. A list of these unscheduled services is included as 3626 Attachment Q. 3627 Because the amount of such services may vary from year to year and is 3628 unpredictable, the costs and revenues associated with them are not included in 3629 SBWMA's prospective calculation of Contractor's Compensation. The report shall 3630 identify the amount of billings for unscheduled or intermittent service for each 3631 Member Agency. 3632 Net Revenue Billed equals the result obtained by subtracting the sum of items B, C and 3633 D from item A [i.e., A— (B+C+D)]. Franchise Agreement for Collection Services Page 90 City of Burlingame 3634 Liquidated Damages assessed by Member Agencies pursuant to Section 14.07 are not --� 3635 included in the revenue reconciliation process. Similarly, performance incentive 3636 payments and performance disincentive assessments provided for in Section 11.07 are 3637 not included in the revenue reconciliation process. 3638 The SBWMA will review the report and underlying financial data for accuracy, will confer 3639 with Member Agencies to confirm data as to each agency, and will meet with Contractor 3640 to resolve any errors or inconsistencies. 3641 The SBWMA will incorporate its conclusions as to revenue shortfalls or revenue 3642 surpluses experienced by Contractor as to each Member Agency into its calculation of 3643 Contractor's Compensation for the following Rate Year distributed to all Member 3644 Agencies in the Fall of each year. 3645 The revenue reconciliation process will not be conducted for the last Rate Year of the 3646 Agreement. As a result, Contractor shall not be compensated for, nor obligated to 3647 rebate, any difference between Contractor's Compensation established for that Rate 3648 Year and actual Net Revenue Billed for that Rate Year. 3649 11.04 APPLICATION PROCESS FOR CONTRACTOR'S COMPENSATION 3650 A. Application Date and Content. Contractor shall prepare and submit to Agency 3651 and SBWMA by July 1 of each year, beginning on July 1, 2010, an Application for 3652 determination of Contractor's Compensation for the next Rate Year. This 3653 Application will cover all Member Agencies and will allocate total costs to each --� 3654 Member Agency using the allocation methodology prescribed in Attachment K and 3655 illustrated in Attachment N. Contractor shall provide any additional information 3656 requested by the Agency or by SBWMA during its review of the Application. 3657 B. Review of Application. The Application shall be reviewed by SBWMA for 3658 accuracy and consistency with the procedures for determining Contractor's 3659 Compensation specified in this Agreement as described in Attachment K. SBWMA 3660 shall share with Contractor any factual or calculation errors identified in the 3661 Application and Contractor shall have the opportunity to revise its Application. 3662 C. SBWMA Report on Application As provided in Attachment K, Authority staff shall 3663 distribute, on or before September 1 of each year, a report in draft form which (i) 3664 identifies the amount of Contractor's Compensation and Pass-Through Costs 3665 allocable to Agency for the following Rate Year and (ii) provides an overall 3666 percentage increase or decrease in Agency's collection Rates which SBWMA 3667 calculates will generate Customer revenues sufficient to cover Contractor's 3668 Compensation and Pass-Through Costs, 3669 SBWMA will take into account comments received from Agency and other Member 3670 Agencies within 10 days after distribution of the report in draft form. A final report 3671 will be presented to and considered by the SBWMA Board of Directors and 3672 approved for distribution to all Member Agencies on or before October 1 of each 3673 year. The determination of Contractor's Compensation, the estimation of Pass- 3674 Through Costs, and the allocation of costs among Member Agencies contained in 3675 the final Report shall be binding on Contractor and Agency. Franchise Agreement for Collection Services City of Burlingame Page 91 3676 11.05 SPECIAL COMPENSATION REVIEW 3677 A. Eligible Items. The Contractor may apply to the Agency for consideration of a 3678 special review of Contractor's Compensation, and the Agency may initiate such a 3679 review, if one or more of the following occur and cause an increase in or decrease 3680 to Contractor's Compensation by two percent (2%) or more for the then-current 3681 Rate Year: 3682 1. Provision of emergency services pursuant to Section 7.08. 3683 2. Flood, earthquake, or other similar catastrophic event affecting the Agency 3684 which is beyond the control of and not the fault of the Contractor. 3685 3. Change in Law occurring after the Effective Date. 3686 4. Changes in the rates charged for Backyard Collection Service and/or Curbside 3687 Collection Service that alter the price differential between the two, causing 3688 Customers to migrate from one to the other, with the result of increasing or 3689 decreasing Contractor's annual cost of operation by two percent (2%) or more. 3690 A special compensation review must be requested by Contractor, or initiated by 3691 Agency, within twelve (12) months after one of the above-described events has 3692 occurred. 3693 B. Ineligible Items. A special review of Contractor's Compensation may not be 'A694 initiated for any of the following reasons: `.,)95 1. Increases or decreases in Contractor's cost of operations in excess of the 3696 adjustments provided through the annual adjustment mechanism described in 3697 Attachment K. 3698 2. Growth or decline in the number of Customers or their service levels, with the 3699 exception of adjustments made when determining Contractor's Compensation 3700 for Rate Year One (2011) and Rate Year Three (2013). 3701 3. Changes in the mix of Container sizes or frequency of Collection, with the 3702 exception of adjustments made when determining Contractor's Compensation 3703 for Rate Year One (2011) and Rate Year Three (2013). 3704 C. Review of Costs. Agency shall have the right to review any and all financial and 3705 operating records of.Contractor. Agency will take into account the net overall impact 3706 of the event on Contractor's costs, including reductions in cost resulting from 3707 curtailments in service levels or other factors. 3708 D. Submittal of Request. Contractor must submit its request for a special review in a 3709 form and manner specified by the Agency, together with required cost and 3710 operational data. Agency will review the request and determine the amount owed, 3711 if any, to Contractor and the time period to be covered by special compensation 3712 circumstances. 3713 E. Burden of Justification. In a special compensation review under this section, 3714 Contractor shall bear the burden of justifying to the Agency by substantial evidence '1715 its entitlement to continuation of current, as well as any increases in, Contractor's L,o716 Compensation. If the Agency determines that the Contractor has not met its 3717 burden, it shall notify Contractor that it is prepared to deny Contractor's request for Franchise Agreement for Collection Services Page 92 City of Burlingame 3718 an increase in compensation, or to proceed with a reduction in compensation. . 3719 Within ten (10) days after such notice, Contractor may request a hearing before the 3720 Agency's governing body to produce additional evidence. Upon such request, the 3721 Agency shall provide a hearing before the Agency governing body. 3722 F. Hearing. Based on evidence presented to it, including, that submitted by 3723 Contractor, the Agency governing body may grant some, all, or none of the 3724 requested increase in, or may reduce, Contractor's Compensation. In the event 3725 Agency denies Contractor's requested increase in whole or in part, Contractor shall 3726 have the right to present its claim to a court of competent jurisdiction. 3727 G. Cost of Review. Contractor shall bear all reasonable costs incurred by Agency 3728 (including assistance provided to it by SBWMA) of a special review which it has 3729 requested up to a maximum of fifty-thousand dollars ($50,000). Costs of a review 3730 requested by Contractor may not be included in Contractor's Compensation, 3731 charged to Agency or Customers, nor included in the calculation used as rationale 3732 to initiate a special compensation review. 3733 11.06 COMPENSATION ADJUSTMENTS FOR CHANGES IN SCOPE OF SERVICES OR 3734 SERVICE LEVELS 3735 In the event the Agency directs a change in accordance with Section 15.12 of this 3736 Agreement, an equitable adjustment in Contractor's Compensation will be made, 3737 effective with the commencement of the change, to reflect increases or decreases, if 3738 any, in Contractor's costs. The adjustment in compensation will also reflect the ...� 3739 corresponding change in profit. The change in Contractor's Compensation will therefore 3740 consist of the sum of (i) the incremental change to costs, and (ii) profit adjustment at the 3741 allowed operating ratio of ninety and one-half percent (90.5%). 3742 Within forty-five (45) Days of a request by Agency to initiate a change in service, 3743 Contractor shall present a proposal to Agency containing a complete description of the 3744 following, if and to the extent applicable: 3745 1. Collection methodology to be employed. 3746 2. Equipment to be utilized (number of vehicles, types, capacity, age, etc.). 3747 3. Labor requirements (number of employees by classification). 3748 4. Type of Containers to be used. 3749 5. Description of program publicity/education/marketing materials to be developed. 3750 6. Estimated Tonnage to be diverted and the methodology for determining that 3751 diverted Tonnage. 3752 7. Anticipated impacts of the change, if any, on performance incentive and 3753 disincentive measures included in Attachment I. 3754 8. Description of end uses of Collected material. 3755 9. Three (3) year projection of the financial impact of the program's operations in a 3756 balance sheet and operating statement format including documentation of the key 3757 assumptions underlying the projections and the support for those assumptions, Franchise Agreement for Collection Services City of Burlingame Page 93 3758 giving full effect to the savings or costs to existing services and the rate impact o 3759 affected Customers. 3760 10. Monitoring tools and quantitative measures including: cost per Ton; annual 3761 diversion; and pre-implementation as well as expected post-implementation route 3762 information including cost per route and accounts or lifts per route per Day. 3763 11.07 RATE-SETTING PROCESS 3764 A. General. The Agency shall be solely responsible for establishing and adjusting 3765 Rates as described in this Article. 3766 B. Annual Review Process. The Rates shall be reviewed annually by Agency, 3767 commencing with Rate Year One (2011) and continuing through the remaining 3768 Term including any extension periods. The Agency shall adjust Rates as necessary 3769 to generate annual Gross Revenues Billed equal to Contractor's Compensation 3770 approved for the Rate Year and approved Pass-Through Costs. 3771 If Agency elects to set rates that are below those recommended in the SBWMA 3772 report, (or delays acting to revise rates such that the recommended rates do not go 3773 into effect until after January 1), and the Revenue Reconciliation process 3774 conducted by SBWMA for that Rate Year demonstrates that Net Revenues Billed 3775 were less than the approved Contractor's Compensation contained in the SBWMA '776 report, the Agency shall owe interest on the difference. Interest shall apply (i) to `.,/77 fifty percent (50%) of the difference during the Rate Year in which the shortfall in 3778 revenue occurred, and (ii) one-hundred percent (100%) of the difference during the 3779 immediately following Rate Year. The interest rate applied to both years shall be 3780 the prime rate in effect when SBWMA issued the report for that Rate Year plus one 3781 percent (1%). 3782 C. Rate Structure. The Agency shall have the sole and exclusive right to change the 3783 relationship of individual Rates in comparison with other Rates and to allocate total 3784 costs among Service Sectors and Lines of Business. However, Agency will not 3785 direct Contractor to charge Customers a Rate less than the cost for Contractor to 3786 provide Backyard Collection Service specified in Attachment Q without considering 3787 Contractor's written comments regarding the proposed change. If a change in the 3788 Rates charged for Backyard Collection service or Curbside Collection service 3789 causes a Customer migration from one to the other which in turn increases or 3790 decreases Contractor's annual cost of operation by two percent (2%), or more, 3791 either party may initiate a special compensation review as specified in Section 3792 11.05. 3793 If at any time Contractor believes that a Rate not included in the Agency approved 3794 Rate schedule would be necessary or useful, Contractor shall notify the Agency and 3795 recommend establishment of such Rate. For example, if a Customer requests 3796 Collection of a fifteen (15) cubic yard Compactor five (5) times per week and the 3797 Agency-approved Rate schedule does not include this level of service, the 3798 Contractor shall recommend that the Agency establish a Rate for this level of 3799 service. Franchise Agreement for Collection Services City of Burlingame Page 94 3800 D. Liquidated Damages. Contractor shall pay Agency the amounts, if any, due for 3801 Liquidated Damages under Section 14.07 and Attachment J with submittal of its 3802 annual report to Agency pursuant to Section 9.07. 3803 E. Performance Incentives and Disincentives. Contractor shall submit an annual 3804 report on the Performance Incentives and Disincentives detailed in Attachment 1 3805 with submittal of its quarterly and annual reports to Agency and SBWMA pursuant 3806 to Section 9.06 and Section 9.07. Contractor shall pay Agency or Agency shall pay 3807 Contractor the net amount, if any, due for Performance Incentives and 3808 Disincentives calculated pursuant to section 11.07, Attachment I, and Attachment 3809 N. 3810 Payment related to Performance Incentives and Disincentives are to be included in 3811 Contractor's Application, with the exception of Disincentive assessments calculated 3812 quarterly pertaining to Contamination which are paid directly to the SBWMA, and 3813 Contractor's Compensation for the next Rate Year will be increased or decreased 3814 by the net amount of Performance Incentive payments and Disincentive 3815 assessments calculated. 3816 11.08 NOTICE OF RATE ADJUSTMENTS 3817 If requested by Agency, Contractor shall provide Agency with a complete and current list 3818 of its Customer addresses within ten (10) Days of the request. In addition, if requested 3819 by Agency, Contractor shall arrange for notices (prepared by Agency) to be mailed. 3820 11.09 POTENTIAL RATE CONSTRAINTS 3821 The parties recognize that, as of the date this Agreement is entered into, there is no 3822 authoritative judicial determination of whether Articles 13.0 and D of the California 3823 Constitution apply to charges imposed by private enterprises for Solid Waste handling 3824 and Recycling services when those charges are regulated by a local government. 3825 3826 Until such authoritative judicial guidance is available, the Agency intends to provide 3827 notice of proposed Rate increases, and an opportunity for public hearing and protest as 3828 required by Article 13.D. 3829 3830 The Agency will not be in default of this Agreement if (i) a majority protest prevents a 3831 proposed Rate increase from being adopted, (ii) a court rules that Rates adopted by the 3832 Agency are not consistent with Article 13.D, or (iii) an initiative reduces Rates from those 3833 in effect. After any such event, the Parties shall promptly meet and confer in good faith 3834 to consider modifications to service levels commensurate with the Rates that Contractor 3835 may legally charge. Franchise Agreement for Collection Services City of Burlingame Page 95 3836 ARTICLE 12 AGENCY RIGHT TO USE EQUIPMENT AND FACILITIES 3837 12.01 PURPOSE 3838 The Parties recognize (i) that frequent and continuous collection of Solid Waste, 3839 Targeted Recyclable Materials and Organic Materials is an essential public service and 3840 an important element of public health in developed communities such as Agency, and 3841 (ii) that even a temporary interruption in the Collection and transport services entrusted 3842 to Contractor may threaten the public health and safety, as well as causing serious 3843 financial harm to business operations in the Agency. 3844 The purpose of this Article is to provide the Agency the ability to respond to such threats 3845 to the public health, safety and welfare by making use of Contractor's Facilities and 3846 equipment. This failure to pelies to any rform is excused interruption Section 14.09gardless of whether or 3847 not Contractor 3848 12.02 CONDITIONS AUTHORIZING AGENCY'S RIGHT TO USE OF FACILITIES AND 3849 EQUIPMENT 3850 If Contractor, for any reason, fails, refuses or is unable to Collect Solid Waste, Targeted 3851 Recyclable Materials and Organic Materials at the times and in the manner required by 3852 this Agreement, and transport them to the Designated Transfer and Processing Facility, 3853 for more than two (2) Business Days, Agency may invoke this Article. Agency shall 354 provide Contractor written notice that it intends to consider invoking this Article at a `0855 public meeting of its governing body, to be held two (2) or more Business Days from the 3856 date of the notice. 3857 At the meeting, the governing body may invoke its rights under this Article if it 3858 determines that there has been an interruption in Collection service and that such 3859 interruption may continue, thereby threatening the public health, safety and welfare. If 3860 the governing body makes that determination, it may also determine to exercise the 3861 Agency's right to (i) perform Collection and transport services with its own personnel 3862 and/or those of other Member Agencies which have invoked this right under their 3863 Franchise Agreements with Contractor or authorize a third party to do so, and (ii) take 3864 possession of any of Contractor's property, including vehicles and other equipment used 3865 or useful in providing such services or in the Billing and collection of fees for such 3866 services (collectively "Properties"). 3867 12.03 NOTICE TO CONTRACTOR 3868 Agency shall deliver written notice to Contractor of its determination to exercise its right 3869 to provide Collection services and to make use of Contractor's Properties to do so. 3870 Upon receipt of the notice, Contractor shall immediately take all steps necessary to 3871 make available to Agency any of its vehicles and equipment that are requested by 3872 Agency. Contractor shall also cooperate in any other way requested by Agency to 3873 assist Agency in providing Collection services on a temporary basis. 3874 12.04 RIGHTS AND RESPONSIBILITIES OF PARTIES `--3875 Agency will be responsible for the proper use and operation of Contractor's Properties, 3876 including maintenance and repair of vehicles and equipment. Agency will defend, Franchise Agreement for Collection Services Page 96 City of Burlingame 3877 indemnify and hold Contractor harmless from claims by third parties that are due solely --� 3878 to Agency's negligence in operating Contractor's vehicles or equipment, and not due in 3879 whole or in part to defects in the design or manufacture of the vehicles or equipment or 3880 to Contractor's failure to maintain them in good and safe operating condition. 3881 If the interruption in service is excused under Section 14.09, Agency will pay Contractor 3882 one hundred dollars ($100) per Business Day per vehicle, which will constitute full 3883 compensation for use of all Properties. If the interruption in service constitutes a breach 3884 of contract or default, no payment is required. 3885 Revenue received from Customers that is attributable to the period of time during which 3886 Agency provides temporary Collection service shall accrue to Agency rather than 3887 Contractor. 3888 Agency may delegate the use and operation of any or all of Contractor's Properties to a 3889 third party. 3890 If the interruption of Collection service is caused by a breach of contract or default by 3891 Contractor, Liquidated Damages and performance disincentives will continue to accrue 3892 until Contractor resumes the provision of Collection services in full compliance with the 3893 Agreement. 3894 12.05 DURATION OF AGENCY'S RIGHT TO POSSESSION AND USE OF 3895 VEHICLES/EQUIPMENT 3896 Agency may retain possession of Contractor's Properties and provide Collection 3897 services until the Contractor demonstrates to Agency's satisfaction that it is ready, 3898 willing and able to resume providing such services, or one hundred eighty (180) Days 3899 from the notice given under Section 12.03, whichever occurs first. 3900 Agency has no obligation to exercise its rights under this Article or, having done so, to 3901 continue to provide Collection services. It may at any time, in its sole discretion, 3902 relinquish possession of Contractor's Properties to Contractor. 3903 Contractor's Properties shall be returned to Contractor in a condition substantially the 3904 same as that which existed at the time the Agency took possession of them, ordinary 3905 wear and tear excepted. 3906 12.06 GENERAL 3907 The Agency's exercise of its rights under this Article, (i) does not constitute taking or 3908 damaging of property for which compensation (other than as provided in this Article) 3909 must be paid, (ii) does not exempt Contractor from its indemnity obligations under Article 3910 13, which are meant to extend to circumstances arising under this Article, provided that 3911 Contractor is not required to indemnify Agency against claims arising from the sole 3912 negligence of Agency's employees or agents in the operation and use of Contractor's 3913 Properties during the time the Agency has sole possession of them. 3914 The Agency's exercise of its rights under this Article does not limit its ability to seek any 3915 of the remedies available to it under Article 14. Franchise Agreement for Collection Services City of Burlingame Page 97 "1�916 The Agency's rights under this Article do not preclude its permanent acquisition of 3917 Contractor's vehicles and equipment used in providing service to Agency through the 3918 exercise of eminent domain. 3919 ARTICLE 13 INDEMNITY, INSURANCE, BOND, GUARANTY 3920 13.01 INDEMNIFICATION 3921 Contractor shall indemnify, defend and hold harmless Agency, its officers, employees 3922 and agents (collectively, the "Indemnitees"), from and against (i) any and all liability, 3923 penalty, claim, demand, action, proceeding or suit, of any and every kind and 3924 description, whether judicial, quasi-judicial or administrative in nature, (ii) any and all 3925 loss including, but not limited to, injury to and death of any person and damage to 3926 property, and (iii) contribution or indemnity demanded by third parties (collectively, the 3927 "Claims"), arising out of or occasioned in any way by, directly or indirectly, Contractor's 3928 performance of, or its failure to perform, its obligations under this Agreement. The 3929 foregoing indemnity shall not apply to the extent that a Claim is caused solely by the 3930 active negligence or intentional misconduct of the Indemnitees, but shall apply if the 3931 Claim is caused by the joint negligence of Contractor and other Persons, including an 3932 Indemnitee. Upon the occurrence of any Claim, Contractor shall defend (with attorneys 3933 reasonably acceptable to Agency) the Indemnitees. Contractor's duty to defend and 3934 indemnify shall survive the expiration or earlier termination of this Agreement. 35 13.02 INSURANCE 3936 A. Types and Amounts of Coverage. Contractor shall procure from an insurance 3937 company or companies admitted to do business in the State of California, and shall 3938 maintain in force at all times during the Term, the following types and amounts of 3939 insurance: 3940 1. Workers' Compensation and Employer's Liability. Contractor shall maintain 3941 workers' compensation Insurance covering Its employees in statutory amounts 3942 and otherwise in compliance with the laws of the State of California. Contractor 3943 shall maintain employer's liability insurance in an amount not less than one 3944 million dollars ($1,000,000) per accident or disease. Contractor shall not be 3945 obligated to carry workers compensation insurance if (i) it qualifies under 3946 California law and continuously complies with all statutory obligations to self- 3947 insure against such risks; (ii) furnishes a certificate of Permission to Self Insure 3948 issued by the Department of Industrial Relations; and (iii) furnishes updated 3949 certificates of Permission to Self Insure periodically to evidence continuous self 3950 insurance. 3951 2. Comprehensive General Liability. Contractor shall maintain comprehensive 3952 general liability insurance with a combined single limit of not less than ten million 3953 dollars ($10,000,000) per occurrence covering all claims and all legal liability for 3954 personal injury, bodily injury, death, and property damage, including the loss of 3955 use thereof, arising out of, or occasioned in any way by, directly or indirectly, 3956 Contractor's performance of, or its failure to perform, services under this ',957 Agreement. Nft... 3958 The insurance required by this subsection shall include: Franchise Agreement for Collection Services Page 98 City of Burlingame 3959 (i) Premises Operations (including use of owned and non-owned 3960 equipment); 3961 (ii) Personal Injury Liability with employment exclusion deleted; 3962 (iii) Broad Form Blanket Contractual with no exclusions for bodily injury, 3963 personal injury or property damage (including coverage for the 3964 indemnity obligations contained herein); 3965 (iv) Owned, Non-Owned, and Hired Motor Vehicles; 3966 (v) Broad Form Property Damage. 3967 The comprehensive general liability insurance shall be written on an "occurrence" 3968 basis (rather than a "claims made" basis) in a form at least as broad as the most 3969 current version of the Insurance Service Office commercial general liability 3970 occurrence policy form (CG0001). If occurrence coverage is not obtainable, 3971 Contractor must arrange for "tail coverage" on a claims made policy to protect 3972 Agency from claims filed within four (4) years after the expiration or earlier 3973 termination of this Agreement relating to incidents that occurred prior to such 3974 expiration or termination. 3975 3. Automobile Liability. Contractor shall maintain automobile liability insurance 3976 covering all vehicles used in performing service under this Agreement with a 3977 combined single limit of not less than ten million dollars ($10,000,000) per 3978 occurrence for bodily injury and property damage. --� 3979 4. Pollution (Environmental Impairment) Liability. Contractor shall maintain 3980 pollution liability insurance coverage of not less than ten million dollars 3981 ($10,000,000) per occurrence covering claims for on-site, under-site, or off-site 3982 bodily injury and property damage as a result of pollution conditions arising out of 3983 its operations under this Agreement. 3984 B. Acceptability of Insureds. The insurance policies required by this section shall be 3985 issued by an insurance company or companies admitted to do business in the State 3986 of California, subject to the jurisdiction of the California Insurance Commissioner, 3987 and with a rating in the most recent edition of Best's Insurance Reports of size 3988 category XV or larger and a rating classification of A+ or better. 3989 C. Required Endorsements. Without limiting the generality of Sections 13.02.A and 3990 B, the policies shall contain endorsements in substantially the following form: 3991 1. Workers' Compensation and Employers' Liability Policy. 3992 (a) "Thirty (30) Days prior written notice shall be given to the City 3993 of Burlingame in the event of cancellation or non-renewal of 3994 this policy." Such notice shall be sent to: 3995 Jes6s Nava 3996 Finance Director/Treasurer 3997 501 Primrose Burlingame, CA 94010 3998 Attention: Jes6s Nava Franchise Agreement for Collection Services City of Burlingame Page 99 999 (b) "Insurer waives all right of subrogation against the City of Burlingame and its 4000 officers and employees for injuries or illnesses arising from work performed 4001 for the City of Burlingame." 4002 2. Comprehensive General Liability Policy; Automobile Liability Policy; Pollution 4003 Liability Policy; and Hazardous Materials Policy. 4004 (a) "Thirty (30) Days prior written notice shall be given to the City of 4005 Burlingame in the event of cancellation, reduction of coverage, or non- 4006 renewal of this policy." Such notice shall be sent to: 4007 Jesus Nava 4008 Finance Director/Treasurer 4009 501 Primrose Burlingame CA 94010 4010 Attention: Jesus Nava 4011 4012 (b) "The City of Burlingame, its officers, employees, and agents are additional 4013 insureds on this policy." 4014 (c) "This policy shall be considered primary insurance as respects any other 4015 valid and collectible insurance maintained by the City of Burlingame, 4016 including any self-insured retention or program of self-insurance, and any 4017 other such insurance shall be considered excess insurance only." X018 (d) "Inclusion of the City of Burlingame as an insured shall not affect the City 4019 of Burlingame's rights as respects any claim, demand, suit or judgment 4020 brought or recovered against the Contractor. This policy shall protect 4021 Contractor and the City of Burlingame in the same manner as though a 4022 separate policy had been issued to each, but this shall not operate to 4023 increase the company's liability as set forth in the policy beyond the amount 4024 shown or to which the company would have been liable if only one party had 4025 been named as an insured." 4026 D. Deductibles and Self-Insured Retentions. The liability policies described in 4027 Sections 13.02.A(2) and (3) may contain a deductible or self-insured retention not 4028 to exceed $500,000 per occurrence. This amount may not be increased without 4029 Agency's prior written consent. 4030 Contractor remains responsible for the payment of all losses and investigation, 4031 claim administration and defense expenses, including those of the Agency. 4032 E. Delivery of Proof of Coverage. No later than ninety (90) Days before the 4033 commencement of operations which includes the Recycling Blitz, Contractor shall 4034 furnish Agency one or more certificates of insurance on a standard ACORD form 4035 substantiating that each of the coverages required hereunder is in force, in form 4036 and substance satisfactory to Agency. Such certificates shall show the type and 4037 amount of coverage, effective dates and dates of expiration of policies and shall be 4038 accompanied by all required endorsements. If Agency requests, copies of each :039 policy, together with all endorsements, shall also be promptly delivered to Agency. Franchise Agreement for Collection Services Page 100 City of Burlingame 4040 Contractor shall furnish renewal certificates to Agency to demonstrate maintenance 4041 of the required coverages throughout the Term. 4042 F. Other Insurance Requirements 4043 1. In the event performance of any services is delegated to a Subcontractor, 4044 Contractor shall require such subcontractor to provide statutory workers' 4045 compensation insurance and employer's liability insurance for all of the 4046 Subcontractor's employees engaged in the work. The liability insurance 4047 required by Subsection A.2 and the automobile liability policy required by 4048 subsection A.3 shall cover all Subcontractors or the Subcontractor must furnish 4049 evidence of insurance provided by it meeting all of the requirements of this 4050 Section 13.02. 4051 2. Contractor shall comply with all requirements of the insurers issuing policies. 4052 The carrying of insurance shall not relieve Contractor from any obligation under 4053 this Agreement, including those imposed by Section 13.01. If any claim is 4054 made by any third Person against Contractor or any Subcontractor on account 4055 of any occurrence related to this Agreement, other than claims by employees 4056 for work-related incidents, Contractor shall promptly report the facts in writing 4057 to the insurance carrier and to the Agency. 4058 3. If Contractor fails to procure and maintain any insurance required by this 4059 Agreement, Agency may take out and maintain such insurance as it may deem 4060 proper and may require Contractor to reimburse it for the cost incurred within 4061 thirty (30) Days and/or deduct the cost from any monies due Contractor. 4062 Agency may also treat the failure as a Contractor default. 4063 4. Agency is not responsible for payment of premiums for or deductibles under 4064 any required insurance coverages. 4065 5. Any excess or umbrella policies shall be written on a "following form" basis. 4066 13.03 FAITHFUL PERFORMANCE BOND 4067 On or before the Effective Date, Contractor shall file with Agency a bond securing the 4068 Contractor's faithful performance of its obligations under this Agreement. The principal 4069 sum of the bond shall be no less than ten percent (10%) of the amount of the 2011 4070 annual Revenue Requirement for Agency shown on Attachment N. The form of the 4071 bond shall be as set out in Attachment F. The bond shall be executed as surety by a 4072 corporation admitted to issue surety bonds in the State of California, regulated by the 4073 California Insurance Commissioner, and with a financial condition and record of service 4074 satisfactory to Agency. 4075 The term of the bond shall be twenty-four (24) months. The bond shall be extended, or 4076 replaced by a new bond in the same principal sum (adjusted by the percentage change 4077 in the Consumer Price Index), for the same Term (i.e., twenty-four (24) months) and in 4078 the same form, bi-annually thereafter. Not less than ninety (90) Days before the 4079 expiration of the initial, or any subsequent, bond, Contractor shall furnish either a 4080 replacement bond or a continuation certificate substantially in the form attached as 4081 Attachment F, executed by the surety. 4082 It is the intention of this section that there be in full force and effect at all times a bond 4083 securing the Contractor's faithful performance of the Agreement, throughout its Term. Franchise Agreement for Collection Services City of Burlingame Page 101 L 4084 13.04 ALTERNATIVE SECURITY 4085 Agency may, in its sole discretion, allow Contractor to provide alternative security in the 4086 amount set forth in Section 13.03, in the form of (a) a prepaid irrevocable standby letter 4087 of credit in form and substance satisfactory to Agency, approved by the Agency's 4088 Attorney and issued by a financial institution acceptable to Agency, or (b) a certificate of 4089 deposit in the name of the Agency and in a form and with a Term satisfactory to Agency, 4090 accompanied by an agreement giving Agency the right to draw on the funds deposited 4091 satisfactory to Agency and with a financial institution acceptable to Agency. Interest on 4092 the certificate of deposit will be payable to Contractor. 4093 13.05 HAZARDOUS WASTE INDEMNIFICATION 4094 Contractor shall indemnify, defend and hold harmless the Indemnitees against all 4095 claims, of any kind whatsoever paid, incurred or suffered by, or asserted against 4096 Indemnitees arising from or attributable to any repair, cleanup or detoxification, or 4097 preparation and implementation of any removal, remedial, response, closure or other 4098 plan (regardless of whether undertaken due to governmental action) concerning any 4099 Hazardous Wastes released, spilled or disposed of by Contractor pursuant to this 4100 Agreement. The foregoing indemnity is intended to operate as an agreement pursuant 4101 to Section 107(e) of the Comprehensive Environmental Response, Compensation and 4102 Liability Act, ("CERCLA"), 42 U.S.C. Section 9607(e), and California Health and Safety 4103 Code Section 25364, to defend, protect, hold harmless and indemnify Indemnitees from ^104 liability and shall survive the expiration or earlier termination of this Agreement. 05 Notwithstanding the foregoing, Contractor is not required to indemnify the Indemnitees X106 against claims arising from Contractor's delivery of Solid Waste, Recyclable Materials 4107 and Organic Materials to the Designated Transfer and Processing Facility, or their 4108 subsequent delivery to other processing locations or the ultimate Disposal Site, unless 4109 such claims are due to Contractor's negligence or willful misconduct. 4110 13.06 CALIFORNIA INTEGRATED WASTE MANAGEMENT ACT INDEMNIFICATION 4111 Contractor agrees to indemnify and hold harmless the Indemnitees against all fines 4112 and/or penalties imposed by the California Integrated Waste Management Board 4113 (CIWMB) or the Local Enforcement Agency (LEA) based on Contractor's failure to 4114 comply with laws, regulations or permits issued or enforced by the CIWMB or the LEA or 4115 caused or contributed to by the Contractor's failure to perform obligations under this 4116 Agreement. This indemnity obligation is subject to the limitations and conditions in 4117 Public Resource Code Section 40059.1 but is enforceable to the maximum extent 4118 allowable by that Section. This indemnity shall survive the termination or earlier 4119 expiration of this Agreement. 4120 13.07 GUARANTY 4121 Concurrently with execution of this Agreement, Contractor shall furnish a Guaranty of its 4122 performance under this Agreement, in the form of Attachment G, properly executed by 4123 Recology Inc., a California corporation which owns all of the issues and outstanding 4124 common stock of Contractor. Franchise Agreement for Collection Services Page ]02 City of Burlingame 4125 ARTICLE 14 DEFAULT AND REMEDIES 4126 14.01 EVENTS OF DEFAULT. 4127 Each of the following shall constitute an event of default ("Contractor default"): 4128 A. Contractor fails to perform its obligations under Article 5, 6 or 7 of this Agreement 4129 and its failure to perform is not cured within ten (10) Business Days after written 4130 notice from Agency. 4131 B. Contractor fails to perform its obligations under any other Article of this Agreement 4132 and its failure to perform is not cured within ten (10) Days after written notice from 4133 Agency, provided that if the nature of the failure is such that it will reasonably 4134 require more than ten (10) Days to cure, Contractor shall not be in default so long 4135 as it promptly commences the cure and diligently proceeds to completion of the 4136 cure, and provided further that neither notice nor opportunity to cure applies to 4137 events described in subsections C through H. 4138 C. Contractor ceases to provide Collection and transportation services for a period of 4139 two (2) Business Days for any reason within the Contractor's control, including labor 4140 unrest such as strike, work stoppage or slowdown, sickout, picketing, or other 4141 concerted job action by Contractor's employees. 4142 D. Contractor files a voluntary petition for relief under any bankruptcy, insolvency or --� 4143 similar law. 4144 E. An involuntary petition is brought against Contractor under any bankruptcy, 4145 insolvency or similar law which remains un-dismissed or un-stayed for ninety (90) 4146 Days. 4147 F. Contractor fails to furnish a replacement bond or a continuation certificate of the 4148 existing bond not less than ten (10) Days before expiration of the performance 4149 bond, as required by Section 13.03 or fails to maintain all required insurance 4150 coverage in force. 4151 G. Contractor fails to provide reasonable assurance of performance when required 4152 under Section 14.10. 4153 H. A representation or warranty contained in Article 2 proves to be false or misleading 4154 in a material respect as of the date such representation or warranty was made. 4155 14.02 RIGHT TO SUSPEND OR TERMINATE UPON DEFAULT. 4156 A. Upon any Contractor default, Agency may terminate this Agreement or suspend it, in 4157 whole or in part. Such suspension or termination shall be effective thirty (30) Days 4158 after Agency has given notice of suspension or termination to Contractor, except 4159 that such notice may be effective in a shorter period of time, or immediately, if the 4160 Contractor default is one which endangers the health, welfare or safety of the public, 4161 such as the failure to collect Solid Waste, Recyclable Materials, or Organic Materials --� 4162 for the period of time specified in Section 14.01.0. Notice may be given orally in Franchise Agreement for Collection Services City of Burlingame Page 103 �. 4163 person or by telephone to the representative of Contractor designated in or under 4164 Section 15.10 (or, if he/she is unavailable, to a responsible employee of Contractor) 4165 and shall be effective immediately. Written confirmation of such oral notice of 4166 suspension or termination shall be sent by personal delivery, facsimile, or other 4167 expedited means of delivery to Contractor within twenty-four (24) hours of the oral 4168 notification at the address shown in Section 15.09. Contractor shall continue to 4169 perform the portions of the Agreement, if any, not suspended, in full conformity with 4170 its terms. 4171 B. Agency may also suspend or terminate this Agreement, upon the same notice 4172 provisions, if Contractor's ability to perform is prevented or materially interfered with 4173 by a cause which excuses nonperformance under Section 14.09, despite the fact 4174 that nonperformance in such a case is neither a breach nor a Contractor default. 4175 14.03 SPECIFIC PERFORMANCE 4176 By virtue of the nature of this Agreement, the urgency of timely, continuous and high- 4177 quality service, the lead time required to effect alternative service, and the rights granted 4178 by Agency to Contractor, the remedy of damages for a breach hereof by Contractor is 4179 inadequate and Agency shall be entitled to injunctive relief. 4180 14.04 RIGHT TO PERFORM; USE OF CONTRACTOR PROPERTY ".81 If this Agreement is suspended and/or terminated due to a Contractor default, Agency X182 shall have the right to perform, by contract, in conjunction with other Member Agencies, 4183 or otherwise, the work herein or such part thereof as it may deem necessary. In the 4184 event of Contractor's default, Agency shall have the right to use any of Contractor's 4185 equipment, facilities and other property reasonably necessary for the provision of 4186 services hereunder and for the Billing and collection of fees for those services, upon the 4187 terms provided in Article 12. Agency shall have the right to continue use of such 4188 property until other suitable arrangements can be made for the provision of such 4189 services, which may include the award of a contract to another service provider. 4190 14.05 DAMAGES 4191 Contractor shall be liable to Agency for all direct, indirect, special and consequential 4192 damages arising out of Contractor's default. This section is intended to be declarative 4193 of existing California law. 4194 14.06 AGENCY'S REMEDIES CUMULATIVE 4195 Agency's rights to suspend or terminate the Agreement under Section 14.02, to obtain 4196 specific performance under Section 14.03 and to perform under Section 14.04 are not 4197 exclusive, and Agency's exercise of one such right shall not constitute an election of 4198 remedies. Instead, they shall be in addition to any and all other legal and equitable 4199 rights and remedies that Agency may have, including a legal action for damages under 4200 Section 14.05 or imposition of Liquidated Damages under Section 14.07. Franchise Agreement for Collection Services City of Burlingame Page 104 4201 14.07 LIQUIDATED DAMAGES 4202 The Parties acknowledge that consistent, courteous and efficient Collection of Solid 4203 Waste, Targeted Recyclable Materials and Organic Materials is of utmost importance 4204 and Agency has considered and relied on Contractor's representations as to its quality 4205 of service commitment in entering into this Agreement. The Parties further recognize 4206 that quantified standards of performance are necessary and appropriate to ensure 4207 consistent and reliable service. The Parties further recognize that if Contractor fails to 4208 achieve the performance standards, Agency and its residents will suffer damages and 4209 that it is and will be impracticable and extremely difficult to ascertain and determine the 4210 exact amount of damages that Agency will suffer. Therefore, the Parties agree that the 4211 Liquidated Damage amounts listed on Attachment J represent a reasonable estimate of 4212 the amount of such damages considering all of the circumstances existing on the date 4213 of this Agreement, including the relationship of the sums to the range of harm to Agency 4214 that reasonably could be anticipated and recognition that proof of actual damages would 4215 be costly or inconvenient. By initialing the places provided, each party specifically 4216 confirms the accuracy of the statements made above and the fact that each party had 4217 ample opportunity to consult with legal counsel and obtain an explanation of this 4218 Liquidated Damage provision at the time that this Agreement was made. 4219 Contractor Initial Here: Agency Initial Here: 4220 Contractor agrees to pay (as Liquidated Damages and not as a penalty) the amount set 4221 forth in Attachment J. 4222 In addition to considering the reports submitted by Contractor pursuant to Article 9, 4223 Agency may determine the occurrence of events giving rise to Liquidated Damages 4224 through the observation of its own employees or agents, through discussions with 4225 Customers, and through investigation of Customer Complaints made directly to Agency. 4226 Prior to assessing Liquidated Damages based on such observations or investigations, 4227 Agency shall give Contractor notice of its intention to do so. The notice will include a 4228 brief description of the incidents)/non-performance. Contractor may review (and make 4229 copies at its own expense) all non-confidential information in the possession of Agency 4230 relating to incident(s)/non-performance. Contractor may, within ten (10) Days after 4231 receiving the notice, request a meeting with Agency's Manager or his or her designee. 4232 Contractor may present evidence in writing and through testimony of its employees and 4233 others relevant to the incidents)/non-performance. Agency's Manager or his or her 4234 designee will provide Contractor with a written explanation of his or her determination on 4235 each incidents)/non-performance prior to authorizing the assessment of Liquidated 4236 Damages. The decision of Agency's Manager or his or her designee shall be final. 4237 Agency's right to recover Liquidated Damages for Contractor's failure to meet the 4238 service performance standards shall not preclude Agency from obtaining equitable relief 4239 for persistent failures to meet such standards nor from terminating the Agreement for 4240 such persistent failures. 4241 14.08 AGENCY DEFAULT 4242 Agency shall be in default under this Agreement ("Agency default") in the event Agency 4243 commits a material breach of the Agreement and fails to cure such breach within thirty 4244 (30) Days after receiving notice from the Contractor specifying the breach, provided that Franchise Agreement for Collection Services City of Burlingame Page 105 "%4245 if the nature of the breach is such that it will reasonably require more than thirty (30) 4246 Days to cure, Agency shall not be in default so long as Agency promptly commences 4247 the cure and diligently proceeds to completion of the cure. 4248 In the event of an asserted Agency default, Contractor shall continue to perform all of its 4249 obligations hereunder until a court of competent jurisdiction has issued a final judgment 4250 declaring that Agency is in default. 4251 14.09 EXCUSE FROM PERFORMANCE 4252 A. Force Maieure. Neither Party shall be in default of its obligations under this 4253 Agreement in the event, and for so long as, it is impossible or extremely 4254 impracticable for it to perform its obligations due to an "act of God" (including, but 4255 not limited to, flood, earthquake or other catastrophic events), war, insurrection, 4256 riot, labor unrest of other than the Party's employees (including strike, work 4257 stoppage, slowdown, sick out, picketing, or other concerted job action), or other 4258 similar cause not the fault of, and beyond the reasonable control of, the Party 4259 claiming excuse. A Party claiming excuse under this Section must (i) have taken 4260 reasonable precautions, if possible, to avoid being affected by the cause, and (ii) 4261 notify the other party in writing as provided in Subsection C. 4262 B. Obligation to Restore Ability to Perform. Any suspension of performance by a 4263 Party pursuant to this Section shall be only to the extent, and for a period of no 264 longer duration than, required by the nature of the event, and the Party claiming _65 excuse shall use its best efforts to remedy its inability to perform as quickly as 4266 possible and to mitigate damages that may occur as result of the event. 4267 C. Notice. The Party claiming excuse shall deliver to the other Party a written notice 4268 of intent to claim excuse from performance under this Agreement by reason of an 4269 event of Force Majeure. Notice required by this Section shall be given promptly in 4270 light of the circumstances, but in any event not later than five (5) Days after the 4271 occurrence of the event of Force Majeure. Such notice shall describe in detail the 4272 event of Force Majeure claimed, the services impacted by the claimed event of 4273 Force Majeure, the expected length of time that the party expects to be prevented 4274 from performing, the steps which the party intends to take to restore its ability to 4275 perform, and such other information as the other party reasonably requests. 4276 D. Agency's Rights in the Event of Force Majeure. The partial or complete 4277 interruption or discontinuance of Contractor's services caused by an event of Force 4278 Majeure shall not constitute a Contractor default. Notwithstanding the foregoing: (i) 4279 Agency shall have the right to make use of Contractor's Facilities and equipment in 4280 accordance with Article 12 in the event of non-performance excused by Force 4281 Majeure; (ii) if Contractor's failure to perform by reason of Force Majeure continues 4282 for a period of thirty (30) Days or more, Agency shall have the right to immediately 4283 terminate this Agreement; (iii) if Contractor is unable to Collect and transport Solid 4284 Waste as required by this Agreement for a period of two (2) or more consecutive 4285 Business Days or for any three (3) Business Days in a seven (7) Day period as a 4286 result of Force Majeure, Agency shall have the right to make use of Contractor's '1287 property in accordance with Article 12, and (iv) if Contractor's inability to Collect and x,288 transport Solid Waste continues for two (2) Days or more from the date by which Franchise Agreement for Collection Services City of Burlingame Page 106 4289 Contractor gave or should have given notice under Subsection C, Agency may 4290 terminate this Agreement. 4291 14.10 ASSURANCE OF PERFORMANCE 4292 If Contractor (i) persistently suffers the imposition of Liquidated Damages under Section 4293 14.07; (ii) is the subject of any labor unrest including work stoppage or slowdown, 4294 sickout, picketing or other concerted job action; (iii) appears in the reasonable judgment 4295 of Agency to be unable to regularly pay its bills as they become due; (iv) is the subject of 4296 a civil or criminal proceeding brought by a federal, State, regional or local agency for 4297 violation of an Environmental Law in the performance of this Agreement, or (v) performs 4298 in a manner that causes Agency to be uncertain about Contractor's ability and intention 4299 to comply with this Agreement, Agency may, at its option and in addition to all other 4300 remedies it may have, demand from Contractor reasonable assurances of timely and 4301 proper performance of this Agreement, in such form and substance as Agency may 4302 require. Franchise Agreement for Collection Services City of Burlingame Page 107 4303 ARTICLE 15 OTHER AGREEMENTS OF THE PARTIES 4304 15.01 RELATIONSHIP OF PARTIES 4305 The Parties intend that Contractor shall perform the services required by this Agreement 4306 as an independent contractor engaged by Agency and not as an officer or employee of 4307 Agency nor as a partner of or joint venturer with Agency. No employee or agent of 4308 Contractor shall be deemed to be an employee or agent of Agency. Except as 4309 expressly provided herein, Contractor shall have the exclusive control over the manner 4310 and means of conducting the services performed under this Agreement, and over all 4311 Persons performing such services. Contractor shall be solely responsible for the acts 4312 and omissions of its officers, employees, Subcontractors and agents. Neither 4313 Contractor nor its officers, employees, Subcontractors and agents shall obtain any rights 4314 to retirement benefits, workers' compensation benefits, or any other benefits which 4315 accrue to Agency employees by virtue of their employment with Agency. 4316 15.02 COMPLIANCE WITH LAW 4317 In providing the services required under this Agreement, Contractor shall at all times 4318 comply with all applicable laws of the United States, the State and Agency, with all 4319 applicable regulations promulgated by federal, State, regional or local administrative and 4320 regulatory agencies, and by Agency, now in force and as they may be enacted, issued 4321 or amended during the Term, and with all permits affecting the services to be provided. X322 15.03 ASSIGNMENT 4323 Contractor acknowledges that this Agreement involves rendering a vital service to 4324 Agency's residents and businesses, and that Agency has selected Contractor to perform 4325 the services specified herein based on (i) Contractor's experience, skill and reputation 4326 for conducting its operations in a safe, effective and responsible fashion, and (ii) 4327 Contractor's and the Guarantor's financial resources to maintain the required equipment 4328 and to support its indemnity obligations to Agency under this Agreement. Agency has 4329 relied on each of these factors, among others, in choosing Contractor to perform the 4330 services to be rendered by Contractor under this Agreement. 4331 A. Agency Consent Required. Contractor shall not assign its rights or delegate or 4332 otherwise transfer its obligations under this Agreement to any other Person without 4333 the prior written consent of Agency. Any such assignment made without the 4334 consent of Agency shall be void and the attempted assignment shall constitute a 4335 Contractor default. 4336 B. Assignment Defined. For the purpose of this Section, "assignment" shall include, 4337 but not be limited to, (i) a sale, exchange or other transfer to a third party of 4338 substantially all of Contractor's assets dedicated to service under this Agreement; 4339 (ii) a sale, exchange or other transfer of outstanding common stock of Contractor to 4340 a Person who is not a shareholder as of the Effective Date which results in a 4341 change in control of Contractor; (iii) any dissolution, reorganization, consolidation, 4342 merger, re-capitalization, stock issuance or reissuance, voting trust, pooling '343 agreement, escrow arrangement, liquidation or other transaction which results in a `,x.344 change of ownership or control of Contractor; (iv) any assignment by operation of 4345 law, including insolvency or bankruptcy, an assignment for the benefit of creditors, Franchise Agreement for Collection Services City of Burlingame Page 108 4346 a writ of attachment for an execution being levied against this Agreement, 4347 appointment of a receiver taking possession of Contractor's property, or transfer 4348 occurring in the event of a probate proceeding; and (v) any.combination of the 4349 foregoing (whether or not in related or contemporaneous transactions) which has 4350 the effect of any such transfer or change of ownership, or change of control of 4351 Contractor. 4352 C. Consent Requirements. If Contractor requests Agency's consideration of and 4353 consent to an assignment, Agency may deny or approve such request in its 4354 complete discretion. No request by Contractor for consent to an assignment need 4355 be considered by Agency unless and until Contractor has met the following 4356 requirements: 4357 1. Contractor shall pay Agency its reasonable expenses for attorneys' fees and 4358 investigation costs necessary to investigate the suitability of any proposed 4359 assignee, and to review and finalize any documentation required as a condition 4360 for approving any such assignment; 4361 2. Contractor shall furnish Agency with audited financial statements of the 4362 proposed assignee's operations for the immediately preceding three (3) 4363 operating years; 4364 3. Contractor shall furnish Agency with satisfactory proof: (i) that the proposed 4365 assignee has at least ten (10) years of Solid Waste/Recycling management 4366 experience on a scale equal to or exceeding the scale of operations conducted 4367 by Contractor under this Agreement; (ii) that in the last five (5) years, the 4368 proposed assignee has not been the subject of any administrative or judicial 4369 proceedings initiated by a federal, State or local agency having jurisdiction over 4370 its operations due to an alleged failure to comply with federal, State or local laws 4371 or that the proposed assignee has provided Agency with a complete list of such 4372 proceedings and their status; (iii) that the proposed assignee conducts its 4373 operations in a safe and environmentally conscientious manner, in accordance 4374 with sound Solid Waste management practices in full compliance with all federal, 4375 State and local laws regulating the Collection and Disposal of Solid Waste and 4376 all Environmental Laws; (iv) of any other information required by Agency to 4377 ensure the proposed assignee can fulfill the terms of this Agreement in a timely, 4378 safe and effective manner. 4379 D. No Obligation to Consider. Agency will not be obligated to consider a proposed 4380 assignment if Contractor is in default. 4381 15.04 SUBCONTRACTING 4382 Contractor shall not engage any Subcontractors to perform any of the services required 4383 of it by Articles 5 or 6 of this Agreement without the prior written consent of Agency. 4384 Contractor shall notify Agency no later than ninety (90) Days prior to the date on which it 4385 proposes to enter into a subcontract. Agency may approve or deny any such request at 4386 its sole discretion. As of the Effective Date, Contractor shall contract with a consultant, 4387 approved by Agency and SBWMA, for a minimum sum of $50,000 to provide additional --� 4388 outreach, diversion training, Organic Materials collection program training, monitoring, Franchise Agreement for Collection Services Page 109 City of Burlingame 4389 and education to Multi-Family Dwelling and Commercial Customers during Rate Year 4390 One (2011). 4391 15.05 AFFILIATED ENTITY 4392 Contractor will not form or use any Affiliate to perform any of the services or activities 4393 which Contractor is required or allowed to perform under this Agreement, other than as 4394 a Subcontractor approved by Agency under Section 15.04. 4395 if Contractor enters into any financial transactions with an Affiliate for the provision of 4396 labor, equipment, supplies, services, or capital related to the furnishing of service under 4397 this Agreement, that relationship shall be disclosed to Agency, and in the financial 4398 reports submitted to Agency. In such event, Agency's rights to inspect records and 4399 obtain financial data shall extend to records and data of such Affiliate that are relevant to 4400 those specific financial transactions. 4401 15.06 CONTRACTOR'S INVESTIGATION 4402 Contractor has made an independent investigation, satisfactory to it, of the conditions 4403 and circumstances surrounding the Agreement and the work to be performed by it. 4404 Contractor has carefully reviewed the information in the Request for Proposals, and 4405 Addenda if any. Contractor has had the opportunity to inspect the Designated Transfer 4406 and Processing Facility and to review the permits governing its operation, as well as the 407 Source Reduction and Recycling Element adopted by Agency. Contractor has taken 08 such matters into consideration in agreeing to provide the services required by, for the 409 compensation to be provided under, this Agreement. 4410 15.07 NO WARRANTY BY AGENCY 4411 While Agency believes that the information contained in the Request for Proposals is 4412 substantially correct, Agency makes no warranties in connection with this Agreement, 4413 including but not limited to the accuracy or completeness of the information contained in 4414 the Request for Proposals. 4415 15.08 CONDEMNATION 4416 Agency reserves the rights to acquire the Contractor's property utilized in the 4417 performance of this Agreement through the exercise of eminent domain. 4418 15.09 NOTICE 4419 All notices, demands, requests, proposals, approvals, consents and other 4420 communications which this Agreement requires, authorizes or contemplates shall, 4421 except as provided in Article 14, be in writing and shall either be personally delivered to 4422 a representative of the Parties at the address below or be deposited in the United States 4423 mail, first class postage prepaid, addressed as follows: 4424 If to Agency: 425 Jesus Nava Finance Director/Treasurer "-4426 City of Burlingame Franchise Agreement for Collection Services Page 110 City of Burlingame 4427 501 Primrose Road Burlingame, CA 94010 4428 4429 If to Contractor: 4430 Mr. Mario Puccinelli General Manager 4431 Recology San Mateo County 4432 225 Shoreway Rd. 4433 San Carlos, CA 94070 4434 The address to which communications may be delivered may be changed from time to 4435 time by a notice given in accordance with this Section. 4436 Contact information for Contractor's General Manager is as follows: 4437 Mr. Mario Puccinelli General Manager 4438 Recoloqy San Mateo County 4439 225 Shoreway Rd. 4440 San Carlos, CA 94070 4441 4442 Contact information for Contractor's Environmental Technician is as follows: 4443 Mr. Christopher Gibson 4444 Recology San Mateo County 4445 225 Shoreway Rd. 4446 San Carlos, CA 94070 4447 4448 Contractor shall promptly provide Agency the name and contact information for the 4449 above employees if there is a change during the Term. 4450 15.10 REPRESENTATIVES OF THE PARTIES. 4451 A. Representatives of Agency. References in this Agreement to "Agency" shall 4452 mean the City Council and all actions to be taken by Agency shall be taken by the 4453 City Council except as provided below. The City Council may delegate authority to 4454 the City Manager, the Finance Director/Treasurer and/or to other city officials and 4455 may permit such officials, in turn, to delegate in writing some or all of such authority 4456 to subordinate officers. Contractor may rely upon actions taken by such delegates 4457 if they are within the scope of the authority properly delegated to them. 4458 B. Representative of Contractor. Contractor shall, by the Effective Date, designate 4459 in writing a responsible officer who shall serve as the representative of Contractor in 4460 all matters related to the Agreement and shall inform Agency in writing of such 4461 designation and of any limitations upon his or her authority to bind Contractor. 4462 Agency may rely upon action taken by such designated representative as actions of 4463 Contractor unless they are outside the scope of the authority delegated to him/her 4464 by Contractor as communicated to Agency. 4465 15.11 DUTY OF CONTRACTOR NOT TO DISCRIMINATE 4466 In the performance of this Agreement Contractor shall not discriminate, nor permit any 4467 subcontractor to discriminate, against any employee, applicant for employment, or Franchise Agreement for Collection Services City of Burlingame Page 1 1 1 4468 Customer on account of race, color, national origin, ancestry, religion, sex, age, physical 4469 disability, medical condition, sexual orientation, marital status, or other characteristic, in 4470 violation of any Applicable Law. 4471 15.12 RIGHT OF AGENCY TO MAKE CHANGES IN SERVICES AND SERVICE LEVELS 4472 A. Agency may, without amending this Agreement, direct Contractor to cease 4473 performing one or more types of service described in Articles 5 or 6, may direct 4474 Contractor to modify the scope of one or more such services, may direct 4475 Contractor to perform additional Solid Waste, Targeted Recyclable Materials, 4476 Organic Materials or Plant Materials handling services, or may otherwise direct 4477 Contractor to modify its performance under any other Section of this Agreement. 4478 Contractor shall promptly and cooperatively comply with such direction. 4479 B. If such changes cause an increase or decrease in the cost of performing the 4480 services, an equitable adjustment in the Contractor's Compensation shall be made 4481 pursuant to Article 11. Contractor will continue to perform the new or changed 4482 service while the appropriate adjustment in compensation is being determined. 4483 C. The Agency shall have the right to terminate a program if, in its discretion, the 4484 Contractor is not cost-effectively achieving the program's goals and objectives. 4485 Thereafter, the Agency may utilize a third party to perform these services if the 4486 Agency reasonably believes the third party can improve on Contractor's 4487 performance and cost effectiveness. Notwithstanding these changes, Contractor 4488 shall continue the program during the meet and confer period and, thereafter, until '_89 the third party takes over the program. This subsection C applies to programs X490 initiated at Agency's direction after the Commencement Date that are beyond the 4491 basic scope of services described in Section 4.01.A. 4492 15.13 TRANSITION TO NEXT SERVICE PROVIDER 4493 At the expiration of the Term or the earlier termination of the Agreement, or upon 4494 Agency's approval of a proposed assignment, Contractor shall cooperate fully with 4495 Agency to ensure an orderly transition to any and all new service providers. Contractor 4496 shall provide, within ten (10) Days of a written request by Agency, then-current route 4497 lists, which identify each Customer on the route, its service level (number of Containers, 4498 Container sizes, frequency of Collection, scheduled Collection day), any special 4499 Collection notes, and detailed then-current Customer account and Billing information. 4500 Contractor may, but is not required to, sell Collection vehicles and containers to the next 4501 service provider. 4502 Contractor shall upon Agency request, at least one-hundred-eighty (180) Days prior to 4503 the transition of services, attend meetings with the next service provider and with 4504 Agency and SBWMA staff and consultants to plan the recovery of Contractor's 4505 Containers and placement of the new Containers. Contractor shall perform in 4506 accordance with such plan and direct route supervisors to provide "ride-alongs" so that 4507 the new service provider's employees may ride with drivers in Collection vehicles during 4508 Collection operations. Contractor will direct its drivers and other employees to provide 4509 accurate information to the new provider about routing and Customers. Franchise Agreement for Collection Services Page 112 City of Burlingame —IN 4510 15.14 REPORTS AS PUBLIC RECORDS 4511 The reports, records and other information submitted or required to be submitted by 4512 Contractor to Agency (and documents copied pursuant to Section 9.02) are public 4513 records within the meaning of that term in the California Public Records Act, 4514 Government Code Section 6250 et seq. Unless a particular record is exempted from 4515 disclosure by the California Public Records Act, it must be disclosed to the public by 4516 Agency upon request. 4517 Contractor will not object to Agency making available to the public any information 4518 submitted by the Contractor, or required to be submitted in connection with the 4519 Contractor's Compensation, including but not limited to records described in Article 11. Franchise Agreement for Collection Services City of Burlingame Page 1 13 4520 ARTICLE 16 MISCELLANEOUS PROVISIONS 4521 16.01 GOVERNING LAW 4522 This Agreement shall be governed by, and construed and enforced in accordance with, 4523 the laws of the State of California. 4524 16.02 JURISDICTION 4525 Any lawsuits between the Parties arising out of this Agreement shall be brought and 4526 concluded in the courts of the State of California, which shall have exclusive jurisdiction 4527 over such lawsuits. With respect to venue, the Parties agree that this Agreement is 4528 made in and will be performed in San Mateo County. 4529 16.03 BINDING ON SUCCESSORS 4530 The provisions of this Agreement shall inure to the benefit of and be binding on the 4531 successors and permitted assigns of the Parties. 4532 16.04 PARTIES IN INTEREST 4533 Nothing in this Agreement is intended to confer any rights on any Persons other than the 4534 Parties to it and their permitted successors and assigns. 4535 16.05 WAIVER -)36 The waiver by either Party of any breach or violation of any provisions of this Agreement ',,,,)37 shall not be deemed to be a waiver of any breach or violation of any other provision nor 4538 of any subsequent breach or violation of the same or any other provision. 4539 16.06 ATTACHMENTS 4540 Each of the attachments, identified as Attachments "A" through "Q," is attached hereto 4541 and incorporated herein and made a part hereof by this reference. 4542 16.07 ENTIRE AGREEMENT 4543 This Agreement, including the attachments, represents the full and entire agreement 4544 between the Parties with respect to the matters covered herein and supersedes all prior 4545 negotiations and agreements, either written or oral. 4546 16.08 SECTION HEADINGS 4547 The article headings and section headings in this Agreement are for convenience of 4548 reference only and are not intended to be used in the construction of this Agreement nor 4549 to alter or affect any of its provisions. 4550 16.09 INTERPRETATION 4551 This Agreement shall be interpreted and construed reasonably and neither for nor 4552 against either Party, regardless of the degree to which either Party participated in its 4553 drafting. 4554 16.10 AMENDMENT 555 This Agreement may not be modified or amended in any respect except by a writing "-4556 signed by the Parties. Franchise Agreement for Collection Services City of Burlingame Page 1 14 4557 16.11 SEVERABILITY 4558 If a court of competent jurisdiction holds any non-material provision of this Agreement to 4559 be invalid and unenforceable, the invalidity or unenforceability of such provision shall not 4560 affect any of the remaining provisions of this Agreement which shall be enforced as if 4561 such invalid or unenforceable provision had not been contained herein. 4562 16.12 COSTS AND ATTORNEYS' FEES 4563 The prevailing Party in any action brought to enforce the terms of this Agreement or 4564 arising out of this Agreement may recover its reasonable costs expended in connection 4565 with such an action from the other Party. However, each Party shall bear its own 4566 attorneys' fees. 4567 16.13 NO DAMAGES FOR INVALIDATION OF AGREEMENT 4568 If a final judgment of a court of competent jurisdiction determines that this Agreement is 4569 illegal or was unlawfully entered into by Agency, neither party shall have any claim 4570 against the other for damages of any kind (including but not limited to loss of profits) on 4571 any theory. 4572 16.14 REFERENCES TO LAWS 4573 All references in this Agreement to laws and regulations shall be understood to include 4574 such laws and regulations as they may be subsequently amended or recodified, unless 4575 otherwise specifically provided. In addition, references to specific governmental 4576 agencies shall be understood to include agencies that succeed to or assume the 4577 functions they are currently performing. 4578 16.15 INDEMNITY AGAINST CHALLENGES TO AGREEMENT 4579 Contractor shall indemnify, defend and hold harmless SBWMA, Agency, and its and 4580 their officers, employees and agents (collectively, the "Indemnitees") from and against 4581 any and all liability, claim, demand, action, proceeding or suit of any and every kind and 4582 description brought by a third party challenging the process by which proposals were 4583 solicited and evaluated, or this Agreement was negotiated or awarded to the extent that 4584 such liability, claim, demand, action, proceeding or suit was caused by Contractor's 4585 failure to comply with applicable law or the instructions of any indemnitee with respect to 4586 such process. 4587 Franchise Agreement for Collection Services City of Burlingame Page 1 IS LAST PAGE OF AGREEMENT 4588 4589 4590 IN WITNESS WHEREOF, Agency and Contractor have executed this Contract as 4591 of the day and year first above written. 4592 4593 4594 CITY OF BURLINGAME, CA RECOLOGY SAN MATED COUNTY 4595 4596 4597 4598 By: By: Name: Michael J. Sangiacomo 4599 Name: Jim Nantell 4600 Title: City Manager Title: President and CEO 4601 4602 4603 4604 ATTEST: Name: Roxanne L. Frye 4605 Name: Title: Corporate Secretary 4607 )08 ' 609 4610 APPROVED AS TO FORM: 4611 4612 Franchise Agreement for Collection Services Page 1 16 City of Burlingame 1 ATTACHMENT A 2 DEFINITIONS 3 Unless the context otherwise requires, capitalized terms used in this Agreement will have the 4 meanings specified in this Article. 5 Act 6 "Act" means the California Integrated Waste Management Act of 1989 (AB 939) Public 7 Resources Code, Section 40000 et seg. as currently in force or as hereafter amended. 8 Affiliate 9 "Affiliate" means a Person which is related to Contractor by virtue of direct or indirect ownership 10 interest or common management. An Affiliate includes a Person in which Contractor owns a 11 direct or indirect ownership interest, a Person which has a direct or indirect ownership interest in 12 Contractor and/or a Person which is also owned, controlled or managed by any Person or 13 individual which has a direct or indirect ownership interest in Contractor. 14 Agency 15 "Agency" means the City of Burlingame, CA. 16 Agency Manager 17 "Agency Manager" means the City of Burlingame City Manager or his or her designee. --� 18 Agreement 19 "Agreement" means this Agreement, including the attachments. 20 Applicable Law 21 "Applicable Law" means all federal, State, and local laws, regulations, rules, orders, judgments, 22 decrees, permits, approvals, or other requirements of any governmental agency having 23 jurisdiction over the Collection, transportation, Processing, and Disposal of Solid Waste, 24 Targeted Recyclable Materials, Organic Materials and other materials Collected pursuant to this 25 Agreement that are in force on the Effective Date and as they may be enacted, issued or 26 amended during the Term. 27 Application 28 "Application" means the application prepared and submitted by Contractor for determination of 29 Contractor's Compensation for the following Rate Year. 30 Authority 31 "Authority" means the South Bayside Waste Management Authority or."SBWMA." 32 33 Average Hold Time 34 "Average Hold time" means the sum of all call Hold Times divided by the number of calls 35 answered by the agent or queue of agents over the same time interval. -� Collection Services Franchise Agreement Attachment A City of Burlingame Definitions Page 1 of 17 1 Average Speed of Answer 2 "Average Speed of Answer" means the sum of time Customers wait for their calls to be 3 answered after the call is queued (upon completion of the introductory voicemail message(s) or 4 Customer bypassing the message(s)) divided by the total number of calls received over the 5 same time interval. 6 Backyard Collection Service 7 "Backyard Collection Service" means the provision of Collection Service to a SFD in the rear or 8 side premises. 9 Billings 10 "Billings" means statements of charges for services rendered by Contractor, to Owners or 11 Occupants of property, including Residential and Commercial Premises, for the Collection of 12 Solid Waste, Targeted Recyclable Materials, Organic Materials, and other materials Collected 13 pursuant to this Agreement. 14 Bin 15 "Bin" means a metal Container with capacity of approximately one (1) to eight (8) cubic yards, 16 with a hinged lid, and with wheels, typically serviced by a front-loading Collection vehicle. 17 Bulky Items 18 "Bulky Items" means large items including, but not limited to, Major Appliances, furniture, tires �. 19 (with rims removed), carpets, mattresses, and other oversize materials whose large size 20 precludes or complicates their handling by normal Collection. Bulky Items do not include 21 abandoned automobiles, large auto parts, or trees. 22 Business Days 23 "Business Days" means days (i.e., Monday through Friday) during which Contractor's office is 24 open to do business with the public. 25 Cart 26 "Cart" means a plastic Container with a hinged lid and two wheels that is serviced by an 27 automated or semi-automated Collection vehicle. A Cart has capacity of 20, 30, 60, or 90 28 gallons (or similar volumes). 29 Cell Phones 30 "Cell Phones" means all telephones used for mobile or cellular communications including 31 batteries used to power cell phones. 32 Change in Law 33 "Change in Law" means any of the following events or conditions which has ,a material and 34 adverse effect on the performance by the Parties of their respective obligations under this 35 Agreement: 36 a. The enactment, adoption, promulgation, issuance, modification, or written change in 37 administrative or judicial interpretation on or after the Effective Date of any Applicable �-- 38 Law; or Collection Services Franchise Agreement Attachment A City of Burlingame Definitions Page 2 of 17 1 b. The order or judgment of any governmental body, on or after the Effective Date, to the 2 extent such order or judgment is not the result of willful or negligent action, error or 3 omission or lack of reasonable diligence of the Agency, or of the Contractor, whichever 4 is asserting the occurrence of a Change in Law; provided, however, that the contesting 5 in good faith or the failure in good faith to contest any such order or judgment shall not 6 constitute such a willful or negligent action, error or omission or lack of reasonable 7 diligence. 8 Collect/Collection 9 "Collect" or "Collection" means to take physical possession, transport, and remove Solid Waste, 10 Targeted Recyclable Materials, Organic Materials, or other materials pursuant to this Agreement 11 within and from Agency. 12 Collection Container 13 "Collection Container" means any Container provided by Contractor to store and Collect Solid 14 Waste, Targeted Recyclable Materials, Organics, or any other material targeted for Collection 15 by Contractor or subcontractor of Contractor. 16 Commencement Date 17 "Commencement Date" means the date specified in Section 3.02 when the Contractor is to 18 begin providing services required by this Agreement. 19 Commercial 20 "Commercial' means a business activity including, but not limited to, retail sales, wholesale 21 sales, services, research and development, government, education, non-profit, hospital, 22 manufacturing, institutional and industrial operations, but excluding businesses conducted upon 23 Residential Property which are permitted under applicable zoning regulations and are not the 24 primary use of the property. Commercial Collection includes service provided to Multi-Family 25 Dwelling Customers and Agency Facilities. 26 Commercial Diversion Level 27 "Commercial Diversion Level' means the sum of all Commercial Recyclable Materials Collected 28 by Contractor divided by the sum of all Commercial materials Collected by Contractor. 29 Commingle 30 "Commingle" means to mix, mingle, or combine Targeted Recyclable Materials in a Collection 31 Container. 32 Compactor 33 "Compactor" means a mechanical apparatus that compresses materials and/or the Container 34 that holds the compressed materials. Compactors include Bin compactors of any size serviced 35 by front-loading Collection vehicles and Drop Box compactors of any size serviced by Drop Box 36 Collection vehicles. 37 Complaint 38 "Complaint" means written or orally communicated statements made by members of the public, 39 Customers, Owners, or Occupants of properties,served by Contractor, by officers, employees or -� Collection Services Franchise Agreement Attachment A City of Burlingame Definitions Page 3 of 17 1 agents of Agency or SBWMA alleging non-performance of, or deficiencies in Contractor's 2 performance of, its duties under this Agreement, or a violation by Contractor of this Agreement. 3 Construction and Demolition Debris or C&D 4 "Construction and Demolition Debris" and "C&D" means materials resulting from construction, 5 renovation, remodeling, repair, or demolition operations on any Residential, Commercial or 6 other structure or pavement. 7 Container 8 "Container" means any receptacle used for storage of Solid Waste, Targeted Recyclable 9 Materials, Organic Materials and other materials Collected pursuant to this Agreement including, 10 but not limited to, metal or plastic cans, Carts, Bins, tubs, Kitchen Pails and Drop Boxes. 11 Contamination 12 "Contamination" means (i) all materials other than those defined as Targeted Recyclable 13 Materials that were Collected by Contractor with Single-Stream or Source Separated Targeted 14 Recyclable Materials; (ii) all materials other than those defined as Plant Materials Collected by 15 Contractor with Plant Materials; or (iii) all materials other than those defined as Organic 16 Materials Collected by Contractor with Organic Materials. 17 Contamination Level 18 "Contamination Level" means the percentage of Contamination in the Targeted Recyclable 19 Materials, Plant Materials, or Organic Materials Collected by Contractor, which shall be 20 calculated as the Tonnage of Contaminated Material or residual divided by the Tonnage of all 21 the specific material Collected. 22 Contamination Measurement Procedure 23 "Contamination Measurement Procedure" means the procedure the SBWMA will use to 24 determine the Contamination Level of loads of Targeted Recyclable Materials, Plant Materials or 25 Organic Materials Collected by Contractor and delivered to the Designated Transfer and 26 Processing Facility. 27 Contractor 28 "Contractor" means Recology San Mateo County. 29 Contractor's Compensation 30 "Contractor's Compensation" means the monetary compensation owed to Contractor in return 31 for providing services in accordance with this Agreement as described in Article 11. 32 Contractor Pass-Through Costs 33 "Contractor Pass-Through Costs means the costs described in Attachment K, Section 3, Table 34 1 to which no element of overhead, administrative expense, or profit, is added, such that the 35 specific amount of such cost is included without modification in the calculations or reports 36 prepared in implementing this Agreement. Collection Services Franchise Agreement Attachment A City of Burlingame Definitions Page 4 of 17 1 Contractor's Proposal 2 "Contractor's Proposal" means the proposal submitted by Contractor and received by March 11, 3 2008 by the SBWMA in response to the November 1, 2007 SBWMA Request for Proposals for 4 Collection Services, and certain supplemental written materials. 5 County 6 "County" means the County of San Mateo. 7 Curbside 8 "Curbside" means the location for Collection, where Collection Containers or loose materials are 9 placed on the street or alley against the face of the curb, or, where no curb exists, placed not 10 more than five (5) feet from the outside edge of the street or alley. 11 Customer 12 "Customer" means the Person to whom Contractor (or Agency if Agency bills directly) submits 13 billing invoices for Collection services provided to a Premises. The Customer may be the 14 Occupant or Owner of the Premises provided that the Owner of the Premises shall be 15 responsible for payment of Collection services if an Occupant of the Premises fails to make 16 such payment. 17 Day 18 "Day" means calendar day unless otherwise specified. 19 Designated Transfer and Processing Facility 20 "Designated Transfer and Processing Facility means the Shoreway Recycling and Disposal 21 Center or "SRDC" at 225 and 333 Shoreway Road, San Carlos, California, which is owned by 22 SBWMA. 23 Designated Waste 24 "Designated Waste" means non-Hazardous Waste which may pose special Disposal problems 25 because of its potential to contaminate the environment and which may be disposed of only in 26 Class II Disposal Sites or Class III Disposal Sites pursuant to a variance issued by the California 27 Department of Health Services. Designated Waste consists of those substances classified as 28 Designated Waste in California Code of Regulations Title 23, Section 2522. 29 Discarded Material 30 "Discarded Material" means Solid Waste, Targeted Recyclable Materials, and Organic Materials 31 placed by a Generator in a Container and/or at a location that is designated for Collection 32 pursuant to the Agency's Municipal Code. Discarded Material shall become the property of 33 Contractor pursuant to California Public Resources Code Section 41950 until delivery to the 34 Designated Transfer and Processing Facility. 35 Disposal 36 "Disposal" means the ultimate disposition of Solid Waste Collected by Contractor at a Disposal 37 Site. Collection Services Franchise Agreement Attachment A City of Burlingame Definitions Page 5 of 17 1 Disposal Site 2 "Disposal Site" means the facility or facilities utilized for the landfill Disposal of Solid Waste 3 Collected under the terms of this Agreement. 4 Drop Box 5 "Drop Box" means an open-top Container with a typical capacity of seven (7) to fifty (50) cubic 6 yards that is serviced by a Drop Box or roll-off Collection vehicle. 7 Effective Date 8 "Effective Date" means the date identified in Section 3.01. 9 Electronic Waste (or E-Scrap) 10 "Electronic Waste" or "E-Scrap" means "Covered Electronic Wastes" as defined in the Act 11 (Section 42463 of Public Resources Code) in addition to discarded electronic equipment such 12 as, but not limited to, television sets, computer monitors, central processing units (CPUs), laptop 13 computers, and peripherals (e.g., external computer hard drives, computer keyboards, 14 computer mice, and computer printers). E-Scrap does not include those items defined herein as 15 Targeted Recyclable Materials. 16 Environmental Laws 17 "Environmental Laws" means all federal and State statutes, County, and Agency ordinances 18 concerning public health, safety and the environment including, by way of example and not 19 limitation, the Act, the Comprehensive Environmental Response, Compensation and Liability 20 Act of 1980, 42 USC §9601 et seg.; the Resource Conservation and Recovery Act, 42 USC 21 §6902 et seg.; the Federal Clean Water Act, 33 USC §1251 et seg.; the Toxic Substances 22 Control Act, 15 USC §1601 et seg.; the Occupational Safety and Health Act, 29 USC §651 et 23 seq.; the California Hazardous Waste Control Act, California Health and Safety Code §25100 et 24 sec..; the California Toxic Substances Control Act, California Health and Safety Code §25300 et 25 seq.; the Porter-Cologne Water Quality Control Act, California Water Code §13000 et sea.; the 26 Safe Drinking Water and Toxic Enforcement Act, California Health and Safety Code §25249.5 et 27 seq.; as currently in force or as hereafter amended, and all rules and regulations promulgated 28 thereunder. 29 Event 30 "Event" includes but is not limited to "large events" as defined in the Act (Public Resources 31 Code Section 42648), any Event that serves an average of at least 2,000 attendees and 32 workers per day, and Agency-sponsored community events. A list of Events currently held in 33 the Agency is included as Attachment C. 34 Facility/Facilities 35 "Facility/Facilities" means any plant or site, owned or leased and maintained, operated or used 36 by Contractor for purposes of performing Contractor's obligations under this Agreement (e.g., 37 facilities for parking and maintaining vehicles, administration offices, and customer service 38 offices, etc.). As of the Effective Date, Contractor's Facility(ies) are Shoreway Recycling and 39 Disposal Center at 225 Shoreway Road, San Carlos, California. Collection Services Franchise Agreement Attachment A Definitions City of Burlingame Page 6 of 17 1 Fiscal Year 2 "Fiscal Year" means the period commencing July 1St through June 30th each year. 3 Food Scraps 4 "Food Scraps" means a subset of Organic Materials including: (i) all kitchen and table food 5 waste, and animal, or vegetable fruit, grain, dairy or fish waste that attends or results from the 6 storage, preparation, cooking or handling of foodstuffs, with the exception of animal excrement, 7 (ii) paper waste contaminated with putrescible material, and (iii) biodegradable plastic food 8 service ware. 9 Franchise Fee 10 "Franchise Fee" means the fee paid by Contractor to Agency pursuant to Section 10.02. 11 Generator 12 "Generator" means any Person whose act or process produces Solid Waste, Targeted 13 Recyclable Materials, or Organic Materials, or whose act first causes Solid Waste to become 14 subject to regulation. 15 Gross Revenue Billed 16 "Gross Revenue Billed" means the total revenue recognized per generally accepted accounting 17 principles by the Contractor for all services provided to Customers during the Rate Year in 18 question. Revenues may be billed by the Contractor to Customers or may be billed by Agency 19 to Customers. --� 20 Guarantor 21 "Guarantor" means Recology Inc.. 22 Guaranty 23 "Guaranty" means the agreement to be executed by the Guarantor in the form of Attachment G. 24 Hazardous Substance 25 "Hazardous Substance" shall mean any of the following: (a) any substances defined, regulated 26 or listed (directly or by reference) as "Hazardous Substances", "hazardous materials", 27 "Hazardous Wastes", "toxic waste", "pollutant" or "toxic substances" or similarly identified as 28 hazardous to human health or the environment, in or pursuant to (i) the Comprehensive 29 Environmental Response, Compensation and Liability Act of 1980, 42 USC §9601 et 30 sec.(CERCLA); (ii) the Hazardous Materials Transportation Act, 49 USC §1802, et seq.; (iii) the 31 Resource Conservation and Recovery Act, 42 USC §6901 et seg.; (iv) the Clean Water Act, 33 32 USC §1251 et seg.; (v) California Health and Safety Code §§25115-25117, 25249.8, 25281, 33 and 25316; (vi) the Clean Air Act, 42 USC §7901 et seg.; and (vii) California Water Code 34 §13050; (b) any amendments, rules or regulations promulgated there under to such enumerated 35 statutes or acts currently existing or hereafter enacted; and (c) any other hazardous or toxic 36 substance, material, chemical, waste or pollutant identified as hazardous or toxic or regulated 37 under any other applicable Federal, State or local Environmental Laws currently existing or 38 hereinafter enacted, including, without limitation, friable asbestos, polychlorinated biphenyl's 39 ("PCBs"), petroleum, natural gas and synthetic fuel products, and by-products. -� Collection Services Franchise Agreement Attachment A City of Burlingame Definitions Page 7 of 17 I Hazardous Waste 2 "Hazardous Waste" means all substances defined as Hazardous Waste, acutely Hazardous 3 Waste, or extremely Hazardous Waste by the State in Health and Safety Code §25110.02, 4 §25115, and §25117 or in any future amendments to or recodifications of such statutes or 5 identified and listed as Hazardous Waste by the US Environmental Protection Agency (EPA), 6 pursuant to the Federal Resource Conservation and Recovery Act (42 USC §6901 et seg.), all 7 future amendments thereto, and all rules and regulations promulgated there under. 8 Hold Time 9 "Hold Time" means the amount of time per answered call that a customer service agent (or 10 agents) place a call on hold, plus the amount of time.a call is left unanswered after Contractor's 11 introductory voicemail message(s) is ended either by completion of the message(s) or by the 12 Customer bypassing the message. 13 Holidays 14 "Holidays" means New Year's Day, Thanksgiving Day, and Christmas Day. 15 Holiday Schedule 16 "Holiday Schedule" means the modified service schedule for the days following a Holiday. If a 17 Holiday falls on Monday, Tuesday, Wednesday, Thursday or Friday, the service is provided the 18 immediately following Day. 9 Holiday Trees X20 "Holiday Trees" means trees targeted for diversion that were purchased and used in celebration 21 of Christmas and other Holidays in December and January. 22 Household Batteries 23 "Household Batteries" means disposable or rechargeable dry cells (e.g., A, AA, AAA, B, C, D, 9- 24 volt, button-type) commonly used as power sources for household or consumer products 25 including, but not limited to, nickel-cadmium, nickel metal hydride, alkaline, mercury, mercuric 26 oxide, silver oxide, zinc oxide, nickel-zinc, nickel iron, lithium, lithium ion, magnesium, 27 manganese, and carbon-zinc batteries, but excluding automotive lead acid batteries. 28 Household Hazardous Waste 29 "Household Hazardous Waste" means Hazardous Waste generated at Residential Premises. 30 Household Hazardous Waste does not include those items defined as Targeted Recyclable 31 Materials. 32 Including 33 "Including" means including but not limited to. 34 Infectious Waste 35 "Infectious Waste" means biomedical waste generated at hospitals, public or private medical 36 clinics, dental offices, research laboratories, pharmaceutical industries, blood banks, mortuaries, 37 veterinary facilities, and other similar establishments that are identified in State Health and 38 Safety Code Section 25117.5. Collection Services Franchise Agreement Attachment A City of Burlingame Definitions Page 8 of 17 1 Inquiry 2 "Inquiry" means a written or orally communicated request for information, request for Collection 3 services, or request for change in service level made by members of the public, Customers, 4 Owners, or Occupants of properties served by Contractor, or by officers, employees or agents 5 of Agency or SBWMA. 6 Kitchen Pail 7 "Kitchen Pail" means a receptacle suitable for the storage of Food Scraps that has a capacity of 8 1.5 to 2.5 gallons, a wire or plastic handle, and a lid. 9 Line of Business 10 "Line of Business" means the individual types of Collection service provided by Contractor to 11 each Service Sector, including Recyclable Materials Collection service, Organic Materials 12 Collection service and Solid Waste Collection service. 13 Liquidated Damages 14 "Liquidated Damages" means the amounts owed by Contractor to the Agency for failure to meet 15 specific standards of performance as described in Section 14.07. 16 Major Appliances 17 "Major Appliances" means any device including, but not limited to, washing machines, clothes 18 dryer, hot water heaters, dehumidifiers, conventional ovens, microwave ovens, stoves, 19 refrigerators, freezers, air-conditioners, trash compactors, and residential furnaces discarded by --� 20 Customers. Major Appliances are commonly referred to as White Goods. 21 Materials Recovery Facility (MRF) 22 "Materials Recovery Facility" means a permitted facility where Solid Waste, Targeted 23 Recyclable Materials, Organic Materials, and other materials are processed, sorted or 24 separated for the purposes of recovering reusable or Targeted Recyclable Materials. For the 25 purposes of this Agreement, Agency has designated the Shoreway Recycling and Disposal 26 Center, located at 225 and 333 Shoreway Road, San Carlos, CA, owned by the SBWMA, as its 27 Designated Transfer and Processing Facility. 28 Measured Contamination Level 29 "Measured Contamination Level' means the Contamination Level of the Targeted Recyclable 30 Materials, Plant Materials, and Organic Materials delivered by Contractor to the Designated 31 Transfer and Processing Facility determined in accordance with procedures contained in 32 Attachments E-1 and E-2. 33 Member Agencies 34 "Member Agencies" means the following jurisdictions: the cities of Belmont, Burlingame, East 35 Palo Alto, Foster City, Menlo Park, Redwood City, San Carlos, and San Mateo; the towns of 36 Atherton and Hillsborough; the County of San Mateo; and the West Bay Sanitary District. 37 Member Agency Facilities 38 "Member Agency Facilities" or "Agency Facilities" means any building, site or open space, 39 owned, or leased and maintained, operated or used by a Member Agency. Collection Services Franchise Agreement Attachment A City of Burlingame Definitions Page 9 of 17 1 Missed Pick-Up Collection Event 2 "Missed Pick-Up Collection Event" means events whereby Contractor failed to collect Solid 3 Waste, Targeted Recyclable Materials and Organic Materials on or before the Business Day 4 following Contractor's receipt of the Missed Pick-Up Initial Complaint. The only exceptions to 5 this definition include: Missed Pick-Up Initial Complaints for which Contractor: (i) documented in 6 its Customer service system the Customer's failure to properly set out Container or that the 7 Containers were blocked for Collection based on the route driver's report; and, (ii) coded the call 8 for a recollection request or courtesy pick-up prior to receiving a Missed Pick-Up Initial 9 Complaint. 10 Missed Pick-Up Initial Complaint 11 "Missed Pick-Up Initial Complaint" means complaints received by Contractor, Agency or 12 SBWMA for missed pick-up of Solid Waste, Targeted Recyclable Materials and Organic 13 Materials with the exception of Missed Pick-Up Complaints for which Contractor: (i) documented 14 in its customer service system the Customer's failure to properly set out Container or that the 15 Containers were blocked for Collection based on the route driver's report; and, (ii) coded the call 16 for a recollection request or courtesy pick-up prior to receiving a Missed Pick-Up Complaint on 17 that same Day. 18 Multi-Family Dwelling 19 "Multi-Family," "Multi-Family Dwelling" or "MFD" means an individual Residential Premises in a 20 building that contains five (5) or more individual Residential Premises. �- 21 Multi-Family Residential Complex 22 "Multi-Family Residential Complex" means the building(s) containing five (5) or more individual 23 Residential Premises. Such Premises normally have centralized Solid Waste and Targeted 24 Recyclable Materials Collection service for all units in the building and are billed to one address 25 (typically the Owner or property manager). 26 27 Net Revenue Billed 28 "Net Revenue Billed" means the sum of actual Gross Revenue Billed (as per Section 11.03.D) 29 minus payments to SBWMA for disposal, payments to Agencies for Franchise and other fees 30 as described in Article 10, and revenues attributable to unscheduled or intermittent service. 31 Occupant 32 "Occupant" means a Person who occupies a Premise. 33 On-Call Service 34 "On-Call Service" means Collection service provided by Contractor that is not regularly 35 scheduled or is scheduled more than twenty-four (24) hours in advance. On-Call Service is 36 initiated by Customer by calling, emailing, or requesting the service in person at Contractor's 37 office. 38 Operating Cost 39 "Operating Cost" or "Cost of Operations" means those costs actually incurred by Contractor, 40 reasonably necessary to perform under this Agreement, and not otherwise specifically excluded '�-- 41 in this Agreement. Collection Services Franchise Agreement Attachment A City of Burlingame Definitions Page 10 of 17 �-- 1 Operating Ratio 2 "Operating Ratio" means a factor used in the calculation of profit. Contractor's profit is 3 determined by applying the Operating Ratio of ninety and one-half percent (90.5%) to total 4 annual Costs of Operation described in Attachment K, Section 6. 13. 2. 5 Operator 6 "Operator" means the company contracted by the SBWMA to operate the Designated Transfer 7 and Processing Facility. 8 Organic Materials 9 "Organic ,.Materials" means those materials that will decompose and/or putrefy and that the 10 Agency permits, directs, or requires Generators to separate from Solid Waste and Targeted 11 Recyclable Materials for Collection in specially designated Containers for Organic Materials 12 Collection. Organic Materials include Plant Materials, Food Scraps, paper contaminated with 13 Food Scraps, biodegradable plastic food service ware, pieces of unpainted and untreated wood, 14 and pieces of unpainted and untreated wallboard. No Discarded Material shall be considered 15 Organic Materials, unless such material is separated from Solid Waste and Targeted Recyclable 16 Material. 17 Other Recyclable Material 18 "Other Recyclable Material" means a subset of Recyclable Materials that are Collected which 19 include, but are not limited to: Household Batteries, Cell Phones, Used Motor Oil , Used Motor 20 Oil Filters, Bulky Items that are Recycled, Major Appliances, E-Scrap, and U-Waste. The 21 purpose of differentiating Other Recyclable Material is to describe a category used to calculate 22 the Overall Diversion Level as specified in Attachment I . 23 Overage 24 "Overage" means the amount of Solid Waste placed in or adjacent to a Collection Container that 25 is in excess of the Container capacity. 26 Overall Diversion Level 27 "Overall Diversion Level" means the sum of all Recyclable Materials Collected by Contractor 28 divided by the sum of all materials Collected by Contractor in a Rate Year. 29 Owner 30 "Owner" means the Person holding legal title to the real property constituting the Premises to 31 which Solid Waste, Targeted Recyclable Materials, and/or Organic Materials Collection service 32 is provided. 33 Party(ies) 34 "Party(ies)" refers to the Agency and Contractor, individually or together. 35 Pass-Through Cost 36 "Pass-Through Cost" means a cost to which no element of overhead, administrative expense, or 37 profit, is added, such that the specific amount of such cost is included without modification in the 38 calculations or reports prepared in implementing this Agreement. Collection Services Franchise Agreement Attachment A, City of Burlingame Definitions Page 11 of 17 1 Person 2 "Person" means any individual, firm, company, association, organization, partnership, 3 corporation, trust, joint venture, the United States, the State, the County, towns, cities, or special 4 purpose districts. 5 Plant Materials 6 "Plant Materials" means a subset of Organic Materials consisting of grass cuttings, weeds, 7 leaves, prunings, branches, dead plants, brush, tree trimmings, dead trees (not more than six 8 (6) inches in diameter) and five (5) feet in length, and similar materials generated at Premises, 9 separated and set out for Collection. Plant Materials does not include materials not normally 10 produced from gardens or landscape areas, such as, brick, rock, gravel, large quantities of dirt, 11 concrete, sod, non-organic wastes, oil, and painted or treated wood products. Diseased plants 12 and trees may be excluded from Plant Materials upon mutual consent of Agency and 13 Contractor. 14 Premise 15 "Premise" means any land, or building where Solid Waste, Recyclable Materials, or Organic 16 Materials is generated or accumulated. 17 Previous Contractor 18 "Previous Contractor" means Allied Waste Services of San Mateo County, a division of Republic 19 Services, Inc. 20 Proposal 21 "Proposal" means Contractor's Proposal. 22 Rates 23 "Rates" means the monetary amounts to be charged a Customer by Contractor for providing 24 Collection of Solid Waste, Recyclable Materials, Organic Materials, and other materials. 25 Rate Year 26 "Rate Year" means the twelve-month period, commencing January 1 of one year and 27 concluding December 31 of the same year, for which Contractor's Compensation is calculated. 28 Recycling 29 "Recycling" means the process of sorting, cleansing, treating and reconstituting materials that 30 would otherwise be Disposed of at a landfill for the purpose of returning such materials to the 31 economy in the form of raw materials for new, reused or reconstituted products. 32 Recycling Blitz 33 "Recycling Blitz" means Contractor's campaign to implement Recycling Collection service at 34 Commercial and Multi-Family Dwelling Customers that have limited or no recycling collection 35 service approximately six (6) months prior to the roll-out of new services. 36 Collection Services Franchise Agreement Attachment A City of Burlingame Definitions Page 12 of 17 1 Recycling Tote-Bag 2 "Recycling Tote-Bag" means a durable, mesh plastic bag with handles and a carrying capacity 3 of approximately eight (8) gallons distributed to Multi-Family Dwelling Residential Premises and 4 Multi-Family Residential complexes for personal Recycling use. 5 Recyclable Containers 6 "Recyclable Containers" means food and beverage packaging receptacles including but not 7 limited to packaging that has California Redemption Value. 8 Recyclable Materials 9 "Recyclable Materials" means Discarded Materials that can be re-used, remanufactured, 10 reconstituted, or Recycled. 11 Related Party Entity 12 "Related Party Entity" means any Affiliate which has financial transactions with Contractor 13 pertaining to this Agreement. 14 Residential 15 "Residential" means of, from, or pertaining to Single-Family Dwellings, and Multi-Family 16 Residential complexes, including single-family homes, apartments, condominiums, townhouse 17 complexes, mobile home parks, cooperative apartments, and yacht harbors and marinas where 18 residents live aboard boats. 19 Residential Diversion Level 20 "Residential Diversion Level" means the sum of all Residential Recyclable Materials Collected 21 by Contractor divided by the sum of all Residential materials Collected by Contractor. 22 Residential Premise 23 "Residential Premises" means individual dwelling units such as Single-Family Dwelling units, 24 Multi-Family Dwelling units (such as townhouses, apartments, and condominiums), mobile 25 home park dwelling units, cooperative apartments, and dwelling units at yacht harbors and 26 marinas where residents live aboard boats. 27 Residential Property 28 "Residential Property" means property used for residential purposes. 29 Residential Recyclable Materials 30 "Residential Recyclable Materials" means Targeted Recyclable Materials Collected from both 31 Single-Family Dwelling Customers and Multi-Family Residential Complexes. 32 Revenue Requirement 33 "Revenue Requirement" means the total projected amount of revenue that must be included in 34 Agency's Rates charged to Customers to cover all costs associated with Contractor's 35 Compensation, Contractor Pass-Through Costs and Pass-Through Costs for a Rate Year. Collection Services Franchise Agreement Attachment A City of Burlingame Definitions Page 13 of 17 1 SBWMA 2 "SBWMA" means the South Bayside Waste Management Authority, which is a joint powers 3 authority comprised of the Member Agencies. 4 SBWMA Service Area 5 "SBWMA Service Area" means the service area comprised of the SBWMA's Member Agencies, 6 which include the following: Town of Atherton, City of Belmont, City of Burlingame, City of East 7 Palo Alto, City of Foster City, Town of Hillsborough, City of Menlo Park, City of Redwood City, 8 City of San Carlos, City of San Mateo, sections of unincorporated San Mateo County, and West 9 Bay Sanitary District. 10 Service Area 11 "Service Area" means the area within, and, if applicable, outside Agency's jurisdictional 12 boundaries with respect to which Agency exercises franchising authority for the Collection of 13 Solid Waste, Targeted Recyclable Materials, Organic Materials, or other materials pursuant to 14 this Agreement. 15 Service Day 16 "Service Day" means Monday through Sunday excluding Holidays. 17 Service Opportunity 18 "Service Opportunity" means each individual opportunity the Contractor has to Collect Solid 19 Waste, Targeted Recyclable Materials, and Organic Materials from a Customer's Container .� 20 which is equivalent to the required Single-Family, Multi-Family and Commercial lifts. For 21 example, for a Single-Family Customer with regular weekly service, Contractor has three (3) 22 Service Opportunities per week — one (1) for Solid Waste Collection, one (1) for Targeted 23 Recyclable Materials, and one (1) for Organic Materials. 24 Service Sector 25 "Service Sector" means Collection services for each of the following types of services: Single- 26 Family; Multi-Family; Commercial; and Member Agency Facilities. 27 Single-Family 28 "Single-Family," "Single-Family Dwelling," or "SFD" means a Premises used as a Residential 29 dwelling and includes each unit of a duplex, triplex, fourplex or townhouse condominium at 30 which there are no more than four dwelling units where individual Solid Waste, Targeted 31 Recyclable Materials, and Organics Materials Collection is provided separately to each dwelling 32 unit. 33 Single-Stream Targeted Recyclable Materials 34 "Single-Stream Targeted Recyclable Materials" shall mean Targeted Recyclable Materials which 35 have been Commingled by the Generator and placed in a Container for the purposes of 36 Collection. 37 Solid Waste 38 "Solid Waste" means all putrescible and non-putrescible solid, semisolid, and liquid wastes, as -� 39 defined in California Public Resources Code Section 40191. For the purposes of this Collection Services Franchise Agreement Attachment A City of Burlingame Definitions Page 14 of 17 �- 1 Agreement, "Solid Waste" does not include abandoned vehicles and parts thereof, Hazardous 2 Waste or low-level radioactive waste, medical waste, Source Separated Targeted Recyclable 3 Materials, Source Separated Plant Materials, or Source Separated Organic Materials. 4 Source Separated 5 "Source Separated" means materials which otherwise would become Solid Waste, but have 6 been segregated by the Generator, such as Targeted Recyclable Materials or Organic 7 Materials, for the purpose of reuse, Recycling, or composting, to be Collected by Contractor or 8 others. 9 Special Handling Service 10 "Special Handling Service" means the provision of Collection service to a SFD in the rear or 11 side premises. Customers eligible for this service include only those that submit documentation 12 (e.g., a form signed by a doctor) of their inability to perform the generally applicable Curbside 13 Collection set-out requirements. 14 Specialty Recyclable or Reusable Material 15 "Specialty Recyclable or Reusable Material" means Recyclable Materials that are not Targeted 16 Recyclable Materials but that may be collected for purposes of Recycling by any Person 17 operating in accordance with the Agency Municipal Code. Such Specialty Recyclable or 18 Reusable Materials include, but are not limited to, scrap metal weighing more than ten (10) 19 pounds, Construction and Demolition Debris, pallets, plastic film, and reusable furniture. 20 Speed of Answer 21 "Speed of Answer" means the amount of time before a call is answered once that call is queued 22 upon completion of the introductory voicemail message(s) or Customer bypassing the 23 message(s). 24 State 25 "State" means the State of California. 26 Subcontractor 27 "Subcontractor" means a Person which has entered into a contract with the Contractor for the 28 performance of work that is necessary for the Contractor's fulfillment of its obligations under this 29 Agreement. 30 Targeted Recyclable Materials 31 "Targeted Recyclable Materials" means a subset of Recyclable Materials that includes: 32 newspaper (including inserts, coupons, and store advertisements); mixed paper (including office 33 paper, computer paper, magazines, junk mail, catalogs, brown paper bags, paperboard, paper 34 egg cartons, telephone books, books, colored paper, construction paper, envelopes, legal pad 35 backings, shoe boxes, cereal and other similar food boxes); chipboard; corrugated cardboard; 36 paper milk cartons; glass containers of any color (including brown, blue, clear, and green); 37 aluminum (including food and beverage containers, foil, small pieces of scrap metal); small 38 pieces of scrap metal weighing less than ten (10) pounds and fitting into the Targeted 39 Recyclable Materials Collection Container (excluding chain, cable, wire, banding, hand tools, 40 and automotive. parts); steel, tin or bi-metal containers; plastic containers (i.e., all plastic 41 containers stamped with the Society for the Plastics Industry (SPI) code #1 through #7; and Collection Services Franchise Agreement Attachment A City of Burlingame Definitions Page 15 of 17 1 plastic containers that are not stamped but clearly can be identified as PET, HDPE, 2 polypropylene). For Single-Family and Multi-Family Premises, Targeted Recyclable Materials 3 also include Used Motor Oil, Used Motor Oil Filters, Household Batteries, and Cell Phones. 4 Term 5 "Term" means the Term of this Agreement. 6 Ton (or Tonnage) 7 "Ton (or Tonnage)" means a unit of measure for weight equivalent to 2,000 pounds where each 8 pound contains 16 ounces. 9 Transfer Station 10 "Transfer Station" means a Facility primarily used for the purpose of transferring Solid Waste 11 from Collection vehicles to transfer vehicles (but which may include recovery operations) to 12 more efficiently transport Solid Waste to the Disposal Site. For the purposes of this Agreement, 13 Agency has designated the Shoreway Recycling and Disposal Center, located at 225 and 333 14 Shoreway Road, San Carlos, CA, as its designated Transfer Station. 15 Spills of Discarded Materials 16 "Spills of Discarded Materials" means any Solid Waste, Targeted Recyclable Materials, or 17 Organic Materials spilled or left at established Collection sites by Contractor after Collection, 18 other than small particles of grass clippings and leaves of the size and volume that may be 19 collected by regular street sweeping operations which may be left behind. 20 Universal Waste (or U-Waste) 21 "Universal Waste," or "U-Waste," means all wastes defined by Title 22, Subsections 66273.1 22 through 66273.9 of the California Code of Regulations. These include, but are not limited to, 23 batteries, fluorescent light bulbs, mercury switches, and Electronic Waste. U-Waste does not 24 include those items defined herein as Targeted Recyclable Materials. 25 Unpermitted Materials 26 "Unpermitted Materials" mean wastes or other materials that the Designated Transfer and 27 Processing Facility is not permitted to receive, including Hazardous Waste and Hazardous 28 Substances. 29 Unscheduled Service 30 "Unscheduled Service," means services that are unscheduled or provided on an intermittent 31 basis. For the purposes of Section 11.03D, Unscheduled Service does not include services 32 described in Section 5.02 (other than Single-Family Backyard Collection Service provided to 33 Customers representing more than twenty percent (20%) of the Single-Family Accounts), 5.03 34 (other than universal implementation), 5.04 (other than universal implementation), 5.05, 5.06, 35 5.07, 5.08 (as to events described in Attachment C), 5.09, 5.10, 5.11 (up to 30 cubic yards), 36 5.13A, or in Article 6, or any other service not included in Attachment Q unless authorized by 37 Agency. Collection Services Franchise Agreement Attachment A City of Burlingame Definitions Page 16 of 17 �-' 1 Used Motor Oil 2 "Used Motor Oil" means used motor oil from automobiles and other light duty vehicles intended 3 for personal use which is removed from cars at a Residential Premises and not as a part of a 4 for-profit or other business activity. 5 Used Motor oil Filter 6 "Used Motor Oil Filter" means a used motor oil filter from automobiles and other light duty 7 vehicles intended for personal use which is removed from the vehicle at a Residential Premises 8 and not as a part of a for-profit or other business activity. 9 Venue 10 "Venue" means a permanent facility that during any year seats or serves an average of more 11 than 2,000 individuals per day of operation. Both people attending the event and those working 12 at it, including volunteers, are included in this number. 13 Weekly Collection Service 14 "Weekly Collection Service" means Collection Service that is scheduled in advance from 15 Monday through Friday and provided once-per-week on the same day or days each week. 16 White Goods 17 "White Goods" means Major Appliances. Collection Services Franchise Agreement Attachment A City of Burlingame Definitions Page 17 of 17 ATTACHMENT B SERVICE LEVELS OF AGENCY FACILITIES AGENCY: CITY OF BURLINGAME --� List of Agency Facilities This represents a tentative list of City of Burlingame facilities to be services by Recology San Mateo County. A complete listing of all city facilities and city-owned containers to be serviced by Recology San Mateo County will be compiled prior the effective date of the franchise agreement. CITY OF BURLINGAME-TENATIVE LIST OF AGENCY FACILITIES FIRST SERVICE CUSTOMER NAME SERVICE ADDRESS SERVICE LEVEL FREQUENCY DAYS BURLINGAME LIBRARY 1800 EASTON AVE 1-45GL 1X F BURLINGAME CITY HALL 501 PRIMROSE RD 1-1YD 2X M,F CITY CANS/BLGM BURLINGAME AVE 34-20GL 5X S,M,W,F,S CITY CANS/BLGM DONNELLY 1-20GL 5X S,M,W,F,S CITY CANS/BLGM LORTON AVE 4-20GL 5X S,M,W,F,S CITY CANS/BLGM BROADWAY 14-32GL 5X S,M,W,F,S CITY CANS/BLGM CALIFORNIA DR 2-20GL 5X S,M,W,F,S CITY CANS/BLGM PARK AVE 2-32GL 5X S,M,W,F,S BURLINGAME LIBRARY 480 PRIMROSE RD 2-2YD 5X M,T,W,Th,F BURLINGAME FIRE DEPT 799 CALIFORNIA DR 1-6YD 1X T BURLINGAME PARKS DEPT CAROLAN&BURLINGAME AVE 1-3YD 1X TH BURLINGAME REC CENTER 850 BURLINGAME AVE 2-3YD 2X T,F BURLINGAME FIRE DEPT 2832 HILLSIDE DR 1-1YD 1X F BURLINGAME FIRE DEPT 1399 ROLLINS RD 1-2YD 1X W -� BURLINGAME PUBLIC WORKS DEPT 1361 CAROLAN AVE N 1-4YD 1X Th BURLINGAME POLICE DEPT 1111 TRO USDALE DR 1-3YD 2X W.S LIBRARY PLAZA 401 PRIMROSE RD 2-45GL 6X M-Sat CITY CANS/BLGM BAYS IDE WALKS[DE 1-32GL 1X F CITY OF BURLINGAME 1361 CAROLAN AVE N 1-4YD 2X M,W CITY OF BURLINGAME 1103 AIRPORT BLVD 1-6YD 1X Th Franchise Agreement for Collection Services Attachment B City of Burlingame Service Levels of Agency Facilities Page 1 of 3 ATTACHMENT C COMMUNITY EVENTS AGENCY: CITY OF BURLINGAME • Art In The Park • Art and Jazz On The Avenue • Burlingame Parks & Recreation Summer Concert Series • Burlingame Parks & Recreation Movies In The Park • Burlingame Pet Parade • Burlingame Fresh Market • Burlingame Green Fair • Burlingame Coastal Bay Cleanup • Burlingame Tree Lighting Ceremony and Parade • Burlingame Electronic Recycling Events • Burlingame Bicycle Criterium • Spring Clean-up Event • Fall Clean-up Event Franchise Agreement for Collection Services Attachment C City of Burlingame Community Events Page 1 of 1 ATTACHMENT D — CONTAINER SPECIFICATIONS AGENCY: CITY OF BURLINGAME --t Container Specifications - Carts 1 Material to be Color Default Capacity Collected Solid Waste Black 32 gallon Targeted Recyclable Blue 64 gallon Materials Organic Materials Green 96 gallon 2. Manufacturer............................................ Toter Inc. 3. Material of Construction............................ LMPDE — Linear Medium Density Pol ryethelVne 4. Recycled Content(percentage).................... Minimum of thirty percent (30%) post- consumer recycled content material 5. Manufacturing Method (rotational molding, Rotational molding for 32,64,and 96 injection molding, other.)............................. gallon carts Iniection molding for 20 gallon cart Cart Size 20 gal 32 gal 64 gal 96 gal -� 6. Durability (in service years) ....... 10+ 10+ 10+ 10+ 7. Cost of Each Container**......... 52.00 142.00 53.00 69.00 8. Dimensions of Each Container 18 x 24.25 x 31.75 x 35.25 x (Length x Width x Height) ......... 19.8 x 19.25 x 24.25 x 29.75 x 32.60 38.50 41.75 43.25 9. Wheel Size (carts only) ............ 8" 10" 10" 10" 1. Maximum Load Weight (lbs) ....... 60-74 lbs 112 lbs 224 lbs 336 lbs 10. Manufacturer's warranty(years) 10 10 10 10 11. Labeling (list methods).............. Hot Stamp on Body and/or Lid The 20 gallon Cart manufacturer shall be Rehrig Pacific Company or Norseman Environmental Products. Cart capacity may vary slightly based on manufacturer. SBWMA Collection Services Franchise Agreement Attachment D City of Burlingame Page 1 of 7 ATTACHMENT D — CONTAINER SPECIFICATIONS AGENCY: CITY OF BURLINGAME Container Specifications — Kitchen Pails 1. Kitchen Pail (Food Waste) 2. Manufacturer................................................................. Norseman Environmental Products 3. Material of Construction .................................................. High Density Polyethylene 4. Recycled Content(percentage)......................................... Minimum of twenty percent (20%) post-consumer recycled content material 5. Color .......................................................................... Green body White lid 7 White handle 6. Durability in service ears Five years plus 7. Cost of Each Kitchen Pail ................................................ $5.60 (delivery included) 6. Dimensions of Each Kitchen Pail (Length x Width x Height) ... 12" x 8.6" x 8.6" 9. Manufacturer's warranty .............. ❑ No ® Yes If Yes No. of Years 5 10. Labeling (list methods).................. Hot stamped on front and/or Label affixed to front or on lid SBWMA Collection Services Franchise Agreement Attachment D City of Burlingame Page 2 of 7 ATTACHMENT D — CONTAINER SPECIFICATIONS AGENCY: CITY OF BURLINGAME Container Specifications — Recycling Tote Bag 1. Recycling Tote Bags ........ 2. Manufacturer............................................................... m tibag 3. Material of Construction ................................................ PolVpropVlene 4. Recycled Content (percentage) ....................................... 60% Recycled Polypropylene, 35% Virgin PolVpropVlene, 3% White pigment, and 2% Printing ink 5. Color .......................................................................... Available in any Pantone color 6. Durability (in service years) .............................................. 5 — 10 Years 7. Cost of Tote ................................................................. 3000 Bags - $3.15 per 5000 Bags - $2.92 per ..� 10,000 Bags - $2.87 per 15,000 Bags - $2.80 per 8. Dimensions of Recycling Tote Bag (Length x VVidth x Height) 15 x 7 x 15 (inches) 9. Manufacturer's warranty .............. ® No ❑ Yes If Yes No. of Years 10. Labeling (list methods) ............. Silkscreen SBWMA Collection Services Franchise Agreement Attachment D City of Burlingame Page 3 of 7 ATTACHMENT D — CONTAINER SPECIFICATIONS AGENCY: CITY OF BURLINGAME Container Specifications - Bins 1. Material to be Collected. Garbage Targeted Recyclables Organic Waste C&D Materials 2. Manufacturer............................................. Consolidated Fabricators 3. Material of Construction .............................. Steel Body HDPE Plastic Lid 4. Recycled Content(percentage)..................... 30% 5. Manufacturing Method ................................ Welded (Body) Molded (Lid) 6. New or Used (Agency authorization ❑ New ❑ Used required)............................................ 7. Date of Last Refurbished ............................ Container Size(cubic yards) 1 CY 2 CY 3 CY 4 CY 8. Color ..................................... 9. Durability (in service years) ........ 7+ 7+ 7+ 7+ 10. Cost of Each Container ............. $460.00 $590.00 $620.00 $700.00 11. Dimensions of Each Container 72" x 24" 72" x 34.5" x 72" x 41.5" 72" x 50.5" (Length x Width x Height) ........ x 28" 34.5" x 41.5" x 46" 6„ 12.Wheel Size(if appropriate) ........ 6" 6" 6„_ — 13. Maximum Load Weight (lbs) ....... 600 1000 1400 1800 14. Manufacturer's warranty (years) 1 1 1 1 15. Labeling list methods Paint and decals SBWMA Collection Services Franchise Agreement Attachment D City of Burlingame Page 4 of 7 ATTACHMENT D — CONTAINER SPECIFICATIONS AGENCY: CITY OF BURLINGAME Container Specifications — Bins 1. Material to be Collected. Garbage Targeted Recyclables Organic Waste C&D Materials 2. Manufacturer............................................. Consolidated Fabricators 3. Material of Construction .............................. Steel Body HDPE Plastic Lid 4. Recycled Content(percentage)..................... 30% 5. Manufacturing Method ................................ Welded (Body) Molded (Lid) 6. New or Used (Agency authorization ❑ New ❑ Used required)............................................ 7. Date of Last Refurbished ............................ Container Size 6 CY 8 CY 9 CY 15 CY 8. Color ..................................... 9. Durability(in service years) ........ 7+ 7+ 7+ 7+ 10. Cost of Each Container ............. 900.00 I1 20-0-00 N/A N/A 11. Dimensions of Each Container 72"x66"x 72" x 72" x 8x1 2x34" 8x12x55" (Length x Width x Height) ........ 50" 56" 12. Wheel Size (if appropriate) ........ n/a n/a 10" 10" 13. Maximum Load Weight (lbs) ....... 2000 2200 15,000 Ib 15,000 Ib 14. Manufacturer's warranty (years) 1 1 1 1 15. Labeling (list methods) ............ Paint and decals N/A means "not applicable." SBWMA Collection Services Franchise Agreement Attachment D City of Burlingame Page 5 of 7 ATTACHMENT D — CONTAINER SPECIFICATIONS AGENCY: CITY OF BURLINGAME Container Specifications — Drop Boxes 1. Material to be Collected. Garbage ❑ Targeted Recyclables Organic Waste C&D Materials 2. Manufacturer............................................. Consolidated Fabricators 3. Material of Construction .............................. Steel Body N/A Lid 4. Recycled Content(percentage)..................... 30% 5. Manufacturing Method ................................ Welded 6. New or Used (Agency authorization ❑ New ❑ Used required)............................................ 7. Date of Last Refurbished ............................ Container Size 20 CY 30 CY 40 CY 8. Color ..................................... 9. Durability (in service years) ........ + + + 10. Cost of Each Container ............. N/A N/A N/A 11. Dimensions of Each Container 8x18x49" 8x2MT 8x22x80" (Length x Width x Height) ........ 12.Wheel Size (if appropriate) ........ 10" 10" 10" 13. Maximum Load Weight(lbs) ....... 15.000 Ib 15,000 Ib 15,000 Ib 14. Manufacturer's warranty (years) 1 1 1 15. Labeling (list methods) ............ Paint and decals N/A means "not applicable." SBWMA Collection Services Franchise Agreement Attachment D City of Burlingame Page 6 of 7 ATTACHMENT D — CONTAINER SPECIFICATIONS AGENCY: CITY OF BURLINGAME Container Specifications — Compactors 1. Material to be Collected. Garbage ❑ Targeted Recyclables ❑ Organic Waste ❑ C&D Materials ❑ 2. Manufacturer............................................. 3. Material of Construction .............................. Steel Body Lid 4. Recycled Content(percentage)..................... 5. Manufacturing Method ................................ 6. New or Used (Agency authorization ❑ New ❑ Used required)............................................ 7. Date of Last Refurbished ............................ Container Size _CY _CY _CY _CY 8. Color ..................................... 9. Durability (in service years) ........ 10. Cost of Each Container ............. 11. Dimensions of Each Container (Length x Width x Height) ........ 12. Wheel Size (if appropriate) ........ 13. Maximum Load Weight(lbs) ....... 14. Manufacturer's warranty (years) 15. Labeling (list methods) ............ Paint and decals SBWMA Collection Services Franchise Agreement Attachment D City of Burlingame Page 7 of 7 ATTACHMENT E-°I Contamination Measurement Methodology: Single Loads This Attachment presents the methodology for quantifying the Contamination Level of single load(s) of Recyclable Materials Collected in the Service Area and delivered to the Designated Transfer and Processing Facility by Contractor. This Attachment is organized into the following six (6) sections: 1. Objectives—describes the purpose of the methodology. 2. Sampling rationale—defines which loads will be sampled. 3. Sampling allocation—describes the number of samples required to provide a sufficient level of accuracy in findings. 4. Test procedures—describes sampling and sorting activities for each load. 5. Sorting categories-describes the sorting categories. 6. Calculations Appendices 1 through 3 consist of: 1. methodology checklist `. 2. sample data collection forms 3. equipment list 1. Objectives This methodology is designed to estimate the Contamination Level (as a percentage by weight of the entire load) in an individual load from five (5) inbound material types Collected in the Service Area.These material streams are listed below and described further in Section 3. • Commercial Source Separated and Targeted Recyclable Materials • Commercial Organic Materials • Commercial Plant Materials • Single-Family Targeted Recyclable Materials • Single-Family Organic Materials The methodology described herein is intended to produce consistent and statistically reliable estimates of the Contamination Level of individual loads from the above material streams. In addition, the methodology is designed to require the minimum necessary organizational time and financial investment. 2. Sampling rationale Loads may be selected for sampling when observation of the load by SBWMA or Operator indicates that it may exceed the allowed Contamination Level. A statistical sampling process will be used to determine the Measured Contamination Level in L individual loads. Franchise Agreement for Collection Services Attachment E-1 City of Burlingame Page 1 of 15 "1 3. Sampling allocation Approximately five (5) samples, each weighing approximately one hundred and fifty (150) pounds, are required from an individual load in order to calculate the Measured Contamination Level with a sufficient level of accuracy for every material stream except Commercial Organic Materials. Because of the variability typically found in loads of Commercial Organic Materials, approximately fifteen (15) samples of two hundred (200) pounds are required for sampling to achieve the specified level of accuracy. The recommended numbers of samples are based on the following factors: 1) An analysis of the composition variability among samples that were sorted during waste characterization studies of similar waste streams and programs in other West Coast communities. 2) An agreement on the acceptable level of accuracy. Table 1 indicates the statistical confidence intervals (error ranges) at the ninety percent (90%) confidence level that are expected to result from characterizing five (5) samples per load, or fifteen (15) samples per load in the case of Commercial Plant Materials. Table 1: Samples per Load and Results Estimated Number of Expected Material stream sample weight samples statistical error range Commercial Source- Separated and Targeted 150 lbs. 5 4% Recyclable Materials Commercial Organic 200 lbs. 15 7% Materials Commercial Plant Materials 150 lbs. 5 1% Single-Family Targeted 150 lbs. 5 2% Recyclable Materials Single-Family Organic 150 lbs. 5 1% Materials- The error ranges shown above shall be interpreted as follows. When the calculation method described below provides the Measured Contamination Level of a load, the estimate will be expressed in terms of percent by weight of the entire load. The error range around the estimate reflects a percent by weight of the entire load. Thus, if the Measured Contamination Level for a given material stream is five percent (5%), plus or minus one percent (1%), then ninety percent (90%) confidence that the Contamination is between four percent (4%) and six percent (6%) of the entire load is achieved.The Parties agree that the actual Measured Contamination Level will be the sole determinant of the percentage of Contamination in a load, and of Contractor's compliance with the maximum contamination levels. It is expected that a two (2) person crew can obtain, sort, and weigh five (5) samples in a five (5) to seven (7) hour period. 4. Test procedures Test procedures are broken down in to the following steps, which shall be used by SBWMA, or a third party designated by the SBWMA. Franchise Agreement for Collection Services Attachment E-1 City of Burlingame Page 2 of 15 • Safety training and staff coordination • Sampling and sorting area designation • Sample selection • Sample sorting • Sample disposal • Data management Contractor or its representative shall have the right to be present at, observe, and photograph and video all aspects of the sampling process, including without limitation each of the steps listed above or described below. Contractor shall not be responsible for any of the costs incurred in implementing the sampling process and procedures described in this Attachment E-1, other than costs incurred by Contractor in exercising its observation rights set forth in the preceding paragraph. These steps are described in more detail following the definitions of roles. Each step is the responsibility of a specific person or group of people as follows: • sampling crew manager—responsible for selecting samples, working with Operator and the sampling crew, quality control, and compliance with Facility regulations. • sampling crew—responsible for sorting samples. `�— . facility manager—responsible for coordinating with the sampling crew manager. • tipping floor staff—responsible for identifying loads potentially contaminated beyond the acceptable threshold, creating a designated sampling and sorting area, and ensuring segregation of selected loads in that area. • loader operator(s)—responsible for segregating the selected load from other loads in the designated sampling and sorting area. Safety training and staff coordination When the sampling crew manager and the sampling crew arrive at the Designated Transfer and Processing Facility they will participate in any required safety training and put on all required personal protective equipment (see the equipment list shown in Appendix 3). The sampling crew manager will also walk through the process of extracting samples from the designated load with both the loader operator(s) and the tipping floor staff. Sampling and sorting area designation With the input of the tipping floor staff and the loader operator(s), the sampling crew manager and sampling crew will set up in the designated sampling and sorting area near the tipping floor. The sorting area should be in a location near the load to be sampled and from which the loader can safely remove samples after sorting. Sample selection Five (5) cells will be randomly selected for sampling using a random number generator for all material streams except commercial organics. Fifteen (15) cells will be selected for L., the commercial organics material stream. Franchise Agreement for Collection Services Attachment E-1 City of Burlingame Page 3 of 15 The sampling crew manager will assist the loader operator in locating the appropriate cell for each sample using the sample cell map in Figure 1 below. After the loader has extracted the material in the selected cell, the sampling crew manager will guide the loader to a designated tarp. Using visual cues the sampling crew manager will ensure the loader operator(s) deposits the proper quantity of material on the tarp. A shovel may be used to add material from the bottom of the cell to ensure the sample includes some heavy and small material that the loader bucket cannot collect. Pulling the tarp is a basic test used to estimate sample weight.' If it is determined that a sample is too heavy it may be lightened by removing vertical slices from the sample. If it is determined that a sample is too light it may be increased by removing or adding more material. It is important to add or remove all material in the slice from the top to bottom, to ensure that both small, heavy, and loose materials and large, light, and bagged materials are added or removed. Samples can be queued and stored on tarps until sorted but samples must be prevented from mixing with each other and with other material on the tipping floor. The sampling crew manager will place a unique sample placard on each sample for a photograph and, if the sample is not immediately sorted, for later identification. The placard is marked with a unique sample identification number and additional information (such as the date) used to identify loads in photographs and correlate load net weights with sample details. Each placard will be coded according to its corresponding materials stream. (e.g., 'RSS- 1' indicates the first load of Residential single-stream recycling). Each load will be photographed individually with the sample placard visible and legible. Figure 1: Sixteen (16) cell grid 8 - -- ------ - ' 4 - 5 15 - -- - ----------- 13 ------------------------ " g 10 Note: Cells 12, 14 and 16 are below cells 4, 6 and 8, respectively. ' Samples of Commercial Source-Separated and Targeted Recyclable Materials, Single-Family Targeted Recyclable Materials, and Commercial Plant Materials shall weigh between one hundred and twenty five (125) pounds and one hundred and seventy five(175) pounds. Samples of Commercial Organic Materials and Single-Family Organic Materials shall weigh between one hundred and seventy five(175) pounds and two hundred and twenty five(225) pounds. -� Franchise Agreement for Collection Services Attachment E-1 City of Burlingame Page 4 of 15 Sample sorting The sample identification number, as designated by the placard, will be recorded on the tally form (see Appendix 2 for an example of this form.) The sample will be moved into the designated sorting area. Next, the sampling crew will sort the Contamination materials, as defined in Appendix 1, out of the load and into sort containers. The sampling crew will then weigh the Contamination materials while the sampling crew manager records the weights on the tally form. The remainder of the load—all acceptable items—will be put into containers, weighed, and recorded on the tally form. The sampling crew manager is responsible for monitoring the homogeneity of material in each container and ensuring the accuracy of the sorting process. At the end of each sampling day the sampling crew will comply with any tipping floor staff directions regarding cleaning the designated sampling and sorting area and storing sampling and sorting supplies. Sample disposal After the weight of all material in each sample is recorded on the tally sheet, the sampling crew will move the sorted material to a location where it is safe and convenient for the loader to remove. Data management At the end of each sampling day, the sampling crew managerwill review all forms for accuracy and completeness. Any issues shall be resolved immediately while the day's work is still fresh in the mind. To ensure the tally forms are not lost before inputting the data into an electronic form, copies shall be made of all completed forms and copies will �—' be kept in a place separate from the originals. One copy of the forms will be mailed or hand delivered to the person inputting the data into an electronic form. The appendices cover calculations, data collection forms, and an equipment list for this study. 5. Sorting categories All loads identified for sorting shall be sorted and weighed into the following two (2) categories: 1) Contamination 2) Targeted Recyclable Materials, Source-Separated Targeted Recycable Materials, Organic Materials, or Plant Materials 6. Calculations Estimates of Contamination and Targeted Recyclable Materials, Source-Separated Targeted Recyclable Materials, Organic Materials, or Plant Materials will be calculated using a method that gives equal weighting or"importance"to each sample within a given stream. Confidence intervals (error ranges)will be calculated based on assumptions of normality in the composition estimates. In the descriptions of calculation methods, the following variables will be used: • i denotes an individual sample. j denotes the material type. • c;is the weight of the material type j in a sample. Franchise Agreement for Collection Services Attachment E-1 City of Burlingame Page 5 of 15 • w is the weight of an entire sample. • r;is the composition estimate for material j(r stands for ratio). • a denotes a region of the state (a stands for area). • s denotes a particular sector or subsector of the waste stream. • n denotes the number of samples in the particular group that is being analyzed at that step. Estimating the Composition The following method will be used to estimate the composition of waste belonging to the Commercial Source-Separated and Targeted Recyclable Materials, Commercial Organic Materials, Commercial Plant Materials, Single-Family Targeted Recyclable Materials, and Single-Family Organic Materials streams. For a given stream, the composition estimate denoted by r;represents the ratio of the component's weight to the total weight of all the samples in the stream. This estimate will be derived by summing each component's weight across all of the selected samples belonging to a given stream and dividing by the sum of the total weight of waste for all of the samples in that stream, as shown in the following equation: C Y Wi where: • c=weight of particular component • w= sum of all component weights • for i= 1 to n, where n= number of selected samples • for j= 1 to m, where m = number of components Franchise Agreement for Collection Services Attachment E-1 City of Burlingame Page 6 of 15 For example, the following simplified scenario involves three samples. For the purposes of this example, only the weights of the component carpet are shown. Sample 1 Sample 2 Sample 3 Weight(c)of carpet 5 3 4 Total Sample Weight(w) 80 70 90 5+3+4 =0.05 c°Yp.' - 80+70+90+70+90 To find the composition estimate for the component carpet, the weights for that material are added for all selected samples and divided by the total sample weights of those samples. The resulting composition is 0.05, or five percent (5%). In other words, five percent (5%) of the sampled material, by weight, is carpet. This finding is then projected onto the stratum being examined in this step of the analysis. Franchise Agreement for Collection Services Attachment E-1 City of Burlingame Page 7 of 15 --N The confidence interval for this estimate will be derived in two (2) steps. First, the variance around the estimate will be calculated, accounting for the fact that the ratio included two (2) random variables (the component and total sample weights). The variance of the ratio estimator equation follows: Var(rj) (n)(11 J r (2)v n-1 where: E w; (3) w= n (For more information regarding Equation 2, please refer to Sampling Techniques, 3rd Edition by William G. Cochran [John Wiley & Sons, Inc., 1977].) Second, precision levels at the 90 percent (90%) confidence level will be calculated for a component's mean as follows: rj ±(z Var(r,)) (4) where z = the value of the z-statistic (1.645) corresponding to a 90 percent (90%) —� confidence level. Franchise Agreement for Collection Services Attachment E-1 City of Burlingame Page 8 of 15 Appendix 1: Methodology checklist Roles and responsibilities • sampling crew manager—responsible for selecting samples, working with Facility staff and the sampling crew, quality control, and compliance with Facility regulations. • sampling crew—responsible for sorting samples. • facility manager—responsible for coordinating with the sampling crew manager, SBWMA, and drivers. • tipping floor staff—responsible for identifying loads potentially contaminated beyond the acceptable threshold, creating a designated sampling and sorting area, and ensuring segregation of selected loads in that area. • loader operator(s)—responsible for segregating the selected load from other loads in the designated sampling and sorting area. ❑ Advanced preparation ❑ Project manager: ❑ Contact facility manager ❑ Ask facility manager to update the following employees with the sampling plan: ❑ Loader operator(s) ❑ Tipping floor staff ❑ Request safety expectations ❑ Schedule safety training ❑ Ask if there are any circumstances that may affect the study (i.e., weather, animals, site construction, etc.) ❑ Obtain safety gear(Appendix 3) ❑ Check safety gear ❑ Obtain sorting equipment (Appendix 3) ❑ Check sorting equipment ❑ Print tally sheets (Appendix 2) ❑ Print on "Rite in the Rain" all-weather paper ❑ Sampling crew and sampling crew manager ❑ Review material list ❑ Review data collection forms ❑ Review unique site requirements ❑ Arrival at Facility ❑ Sampling crew: ❑ Arrive at Facility ahead of schedule ❑ Participate in any required safety training ❑ Don safety gear ❑ Sampling crew manager: ❑ Arrive at Facility ahead of schedule ❑ Reviews logistics and expectations with MRF manager ❑ Participate in any required safety training ❑ Don safety gear Franchise Agreement for Collection Services Attachment E-1 City of Burlingame Page 9 of 15 ❑ Tipping floor coordination ❑ Sampling crew manager. ❑ Designate a designated sampling/sorting area on each tipping floor(2) with input from tipping floor staff and loader operator(s), meeting the following criteria: ❑ Loader operator(s) can visually communicate with sampling crew ❑ Loader operator(s) can safely remove sorted loads ❑ Approximately twenty (20) feet by twenty (20) feet ❑ Explain and walkthrough the sampling process with both the tipping floor staff and the loader operator(s) ❑ Explain that samples must be dumped in a clean area, separate from other loads (called a designated dumping area) ❑ Explain that the sampling crew manager is responsible for identifying the portion of the load that the loader operator(s) will sample ❑ Explain the appropriate samples size. Samples of Commercial Source-Separated and Targeted Recyclable Materials, Single-Family Targeted Recyclable Materials, and Commercial Plant Materials shall weigh between one hundred and twenty five (125) pounds and one hundred and seventy five (175) pounds. Samples of Commercial Organic Materials and Single-Family Organic Materials shall weigh between one hundred and seventy five (175) pounds and two hundred and twenty five (225) pounds. ❑ Explain that the sampling crew manager will be responsible for guiding the loader operator(s) to the appropriate tarpaulin --� ❑ Sampling crew: ❑ Set up designated sampling sorting area ❑ Sorting table ❑ Baskets ❑ Digital scale(s) ❑ Sample collection ❑ Tipping floor staff ❑ Sampling crew manager: ❑ Direct loader operator(s) to pre-selected sampling cell ❑ Direct loader operator(s) to designated tarpaulin ❑ Signal loader operator(s) with tipping instructions ❑ Pull tarp to test for appropriate sample weight ❑ Place placard in the load ❑ Photograph load ❑ Placard should be visible and legible ❑ Wrap and segregate load until ready to sort ❑ Loader operator(s): ❑ Pinch/scoop sample, as directed by the sampling crew manager ❑ Tip sample on designated tarpaulin, as directed by the sampling crew manager ❑ Sampling crew: ❑ May assist sampling crew manager at any point ❑ Sample sorting ❑ Sampling crew: --� Franchise Agreement for Collection Services Attachment E-1 City of Burlingame Page 10 of 15 n Move the sample into the designated sampling/sorting area ❑ Sort the sample ❑ Sort Contamination materials into designated baskets ❑ Assist the sampling crew manager with weighing the baskets ❑ Assist the sampling crew manager with weighing the remainder material ❑ Sampling crew manager: ❑ Record the sample ID onto the tally sheet ❑ Assist the sampling crew in moving the sample into the designated sampling/sorting area ❑ Sort the sample ❑ Sort all Contamination material into designated baskets ❑ Weigh baskets containing Contamination materials, and record weights on the tally sheet ❑ Ensure homogeneity of materials ❑ Weigh remainder material and record weights on the tally sheet ❑ Ensure all Contamination materials are removed ❑ Sample disposal ❑ Sampling crew manager and sampling crew: ❑ Dispose of all materials in a designated disposal area ❑ Loader operator(s): ❑ Remove disposed materials when it is safe and convenient ❑ Data management ❑ Sampling crew manager: ❑ Review all forms for accuracy and completeness ❑ Tally sheet(s) ❑ Project manager. ❑ Check all forms for accuracy and completeness ❑ Tally sheet(s) ❑ Copy all data forms ❑ Store copies separate from the originals ❑ Download pictures from camera ❑ Provide copies of data for electronic input ❑ Ensure data entry is checked for accuracy Franchise Agreement for Collection Services Attachment E-1 City of Burlingame Page 11 of 15 Appendix 2: Data collection forms Appendix consists of copies of each of the following two (2) data collection forms: • sampling placard • tally sheet Figure 2: Example Sampling placard Date: Jurisdiction: RSS 1 Cell Franchise Agreement for Collection Services Attachment E-1 City of Burlingame Page 12 of 15 Figure 3: Example Tally sheet �• ) ethir+k aste South Bayside Waste Management Authority:Contamination Sampling DATE: SAMPLE ID: Container 1 Container 2 Container3 SAMPLING POPULATION: SAMPLE WEIGHT: z Z Container Q Z Containers QContainer TIME: TRUCK NO -� F Z Container7 OContainer LOAD NO.: CELL NO.: Container9 Container l0 Container Container Container 3 NOTES: W Container4 DO Q Container a W Container U U Container Q Container 8 Container 9 Container 10 Franchise Agreement for Collection Services Attachment E-1 City of Burlingame Page 13 of 15 Appendix 3: Equipment list Appendix 3 provides a list of equipment necessary for all sampling and sorting activities. Extra safety equipment should be available to ensure the safety of observers or others at the sorting site. Sorting equipment: Safety equipment: • Approximately twenty (20) • dust masks (N-95 or better) identical sorting containers (e.g. • safety glasses laundry baskets or five (5) gallon hearing protection buckets) • steel-toed work boots • square point shovels . puncture resistant gloves • rakes • glove liners (latex or nitrile) • push brooms leather work gloves • digital scale, battery powered . reflective safety vests (Brite (weigh up to two hundred (200) pounds, accurate to one-tenth Lime) (1/10) of a pound) • hard hats • fifteen (15) to twenty (20) ten • safety/medical kit (10) foot by twelve (12) foot or • fire extinguisher similar size tarps • disinfecting soap, paper towels, • clipboards antiseptic towels • data collection forms printed on • water Rite in the Rain paper • rubber aprons or Tyvek • permanent markers protective garments • mechanical pencils • tape measures • utility knives, scissors • duct tape • ten (10) to fifteen (15) Carts • ten (10) to fifteen (15) plastic receptacles • four(4) metal eight (8) foot by twelve (12) foot tables • one (1) metal work desk with drawer • erasable placards and markers • digital camera with extra flash card • moisture probe • six (6) special pallets with solid tops • three (3) six cubic yard Bins • three (3) three cubic yard Bins Franchise Agreement for Collection Services Attachment E-1 City of Burlingame Page 14 of 15 L Franchise Agreement for Collection Services Attachment E-1 City of Burlingame Page 15 of 15 ATTACHMENT E-2 Contamination Measurement Methodology: Quarterly Protocol This Attachment presents the methodology for quantifying the Contamination Level in five (5) distinct materials streams Collected by Contractor from the SBWMA Service Area. This Attachment is organized into the following six (6) sections: 1. Objectives—describes the purpose of the methodology. 2. Sampling rationale—presents key sample groupings for the methodology, based on the Agency and material stream. 3. Sampling allocation and calendar—describes the number of samples required to provide a sufficient level of accuracy in findings and outlines a schedule that provides representative and sufficient data to meet quarterly and annual sampling goals. 4. Field procedures—describes sampling activities for each sorting day. 5. Sorting categories—describes the sorting categories. 6. Calculations Appendices 1 through 3 consist of: 1. methodology checklist 2. sample data collection forms 3. equipment list 1. Objectives This methodology is designed to estimate the Contamination Level (as a percentage by weight of the entire load) in an individual load from any of the five (5) materials streams Collected in the SBWMA Service Area as follows: • Commercial Source-Separated and Targeted Recyclable Materials • Commercial Organic Materials • Commercial Plant Materials • Single-Family Targeted Recyclable Materials • Single-Family Organic Materials The methodology described herein is also intended to produce consistent and statistically reliable estimates of the Contamination Level for each material stream as a whole. In addition, the methodology is designed to require the minimum necessary organizational time and financial investment. -� Franchise Agreement for Collection Services Attachment E-2 City of Burlingame Page 1 of 20 L ' 2. Sampling rationale Load samples shall be collected from each material stream identified above. The sampling plan considers the SBWMA Service Area as a single source of materials generation. Each materials stream will be considered as separate sampling population. 3. Sampling allocation and calendar A total of twelve (12) samples shall be collected from each materials stream per quarter to achieve the agreed upon desired level of statistical accuracy. Additional samples may be collected in accordance with the last paragraph of this Section 3 and in such cases, all samples taken shall be used to calculate the Measured Contamination Level(s) for that quarter. The specified number of samples are based on the following factors: 1) An analysis of the composition variability among samples that were sorted during waste characterization studies of similar waste streams and programs in other west coast communities. 2) An agreement on the acceptable level of accuracy Table 1 indicates the statistical confidence intervals (error ranges) at the ninety percent (90%) confidence level that are expected to result from characterizing twelve (12) samples per quarter and forty-eight (48) samples per year with respect to each material stream. �— Table 1: Samples per Load and Results Quarterly samples and Annual samples and results results Estimated Number of Approximate Number of Approximate truckloads statistical truckloads statistical Material stream sample to be to be weight sampled' error range sampled' error range Commercial Source- Separated and 150 lbs 12 3% 48 1.5% Targeted Recyclable Materials Commercial Organic 200 lbs 12 8% 48 4%to 5% Materials Commercial 150 lbs 12 1% 48 0.5% Plant Materials Single-Family Targeted 150 lbs 12 2% 48 1% Recyclable Materials Single-Family Organic 150 lbs 12 1% 48 0.5% Materials ' The error ranges in Table 1 are based on one (1) sample per truckload. Franchise Agreement for Collection Services Attachment E-2 City of Burlingame Page 2 of 20 The error ranges shown above shall be interpreted as follows. When the calculation method described below provides the Measured Contamination Level in a material stream, the estimate will be expressed in terms of percent by weight of the entire material stream. The error range around the estimate reflects a percent by weight of the entire material stream. Thus, if the Measured Contamination Level in a given material stream is five percent (5%), plus or minus one percent (1%), then ninety percent (90%) confidence that the Contamination Level is between four percent (4%) and six percent (6%) of the total material stream is achieved. The Parties agree that the actual Measured Contamination Level will be the sole determinant of the percentage of Contamination in a load, and of Contractor's compliance with the maximum contamination levels. It is expected that a two (2) person crew can collect, sort, and weigh approximately twelve (12) samples in an eight (8)to ten (10) hour period, assuming a constant supply of samples is available. Therefore, two (2) sorters working approximately five (5) days per quarter will collect and sort the desired number of samples to assess all five (5) material streams, assuming there are enough inbound loads during that time period to provide the desired number of samples. To capture seasonal variations, sampling events will be conducted during each of the the four (4) calendar quarters. In addition, sampling events will not be scheduled five (5) days immediately before or after Holidays. If the Measured Contamination Level for a material stream calculated for one (1) calendar quarter varies by twenty five percent (25%) or more from the Measured Contamination Level calculated for the immediately preceding calendar quarter, Contractor may require the SBWMA to increase the number of samples to be taken in the following quarter (up to twenty four (24) samples) at Contractor's expense. The result of the increased sampling will be used together with the regularly scheduled sampling to establish the Measured Contamination Level for the material stream for that quarter. 4. Field Procedures The field procedures are described in the following nine (9) steps, and shall be followed by the applicable party: Contractor, Operator, SBWMA, or a third party designated by the SBWMA. • Advanced preparation for regularly scheduled testing • Arrival at Facility for regularly scheduled testing • Scale house coordination • Tipping floor coordination • Load selection • Sample collection • Sample sorting • Sample disposal • Data management —� Franchise Agreement for Collection Services Attachment E-2 City of Burlingame Page 3 of 20 Contractor or its representative shall have the right to be present at, observe, and photograph and video all aspects of the sampling process, including without limitation each of the steps listed above or described below. SBWMA shall be solely responsible for all costs incurred in implementing the sampling process and procedures described in this Attachment E-2, other than (i) costs incurred by Contractor in exercising its observation rights set forth in the preceding paragraph, and (ii)the full cost of conducting additional sampling implemented at Contractor's direction under Section 3. The above field procedures or steps are described in more detail following the explanation of roles. Each step is the responsibility of a specific person or group of people as follows: • sampling crew manager—responsible for identifying selected samples, working with Operator and the sampling crew, quality control, and compliance with Facility regulations. • sampling crew—responsible for sorting samples. • MRF manager—responsible for coordinating with the sampling crew manager. • scale house staff—responsible for identifying selected vehicles, distributing sample placards, and directing drivers towards the sampling area. • tipping floor staff—responsible for creating a designated sampling and sorting area, and ensuring segregation of selected loads in that area. • loader operator(s)—responsible for segregating the selected load from other loads in the designated sampling and sorting area. • project manager—responsible for managing the sampling process. • facility manager—responsible for managing day-to-day operations at the Designated Transfer and Processing Facility • Contractor-- responsible for informing the scale house staff of load origin and material stream and for passing sample placards to the sampling crew manager. Advanced preparation for regularly scheduled testing Before each sampling day, the sampling crew manager will contact the MRF manager and require the MRF manager to remind the scale house staff, tipping floor staff, loader operator(s), Contractor, and all other affected staff of the sampling plan. The project manager will also require the facility manager to provide the site's safety standards and disclose if any additional safety training will be required on site. In addition, the project manager will obtain and inspect all safety equipment and all sorting equipment (see list of supplies in Appendix 3), and develop and print all daily sampling quotas, vehicle selection sheets, placards, and tally sheets prior to beginning each sampling event. See Appendix 2 for sample forms. Contractors, SBWMA staff and/or third parties will meet all requirements of and receive formal training in the safety requirements of the Facility. Franchise Agreement for Collection Services Attachment E-2 City of Burlingame Page 4 of 20 Arrival at Facility for regularly scheduled testing The sampling crew and sampling crew manager will arrive at the Designated Transfer and Processing Facility prior to the agreed upon start time to participate in any required safety training and to put on all required personal protective equipment. Before the start time, the sampling crew manager will also cover logistics with the MRF manager, as well as any needs and expectations for the study period (regardless of the amount of advance communication conducted.) Scale house coordination The sampling crew manager will speak with the scale house staff to explain the basic objectives of the study and provide the scale house staff with a copy of the vehicle selection sheet, as well as sampling placards to identify selected loads (see Appendix 2 for examples of field forms.) The sampling crew manager will ensure the scale house staff understands the needs of the study throughout the day, allowing the scale house staff to plan for transitions such as scheduled breaks and shift changes. Additionally, the sampling crew manager will provide the scale house staff with a means of contacting the sampling crew manager throughout the day. The scale house staff is responsible for identifying selected vehicles using the vehicle selection sheet, provided by the sampling crew manager. The scale house staff will also distribute sampling placards to the Contractor. Tipping floor coordination With the input of the MRF manager and the loader operator(s), the sampling crew manager will determine locations for two (2) designated sampling/sorting areas on or near the tipping floors. There will be one designated sampling/sorting area on the Organic Materials tipping floor and one area on the recyclables tipping floor. These sampling/sorting areas will be in a location in which the sampling crew can identify designated loads entering the tipping area, the loader operator(s) can visually communicate with the sampling crew, and the loader operator(s) can safely remove samples after sorting. Once the sampling crew manager has determined the locations, the sampling crew will set up the designated sampling/sorting areas. The sampling crew manager will then walk through the process of extracting samples from selected loads with both the loader operator(s) and the tipping house staff. Load selection Contractor and SBWMA shall mutually agree on the random numbers table to be used, the process to select random truckloads for sampling, and the process to select specific cells from each truckload for sampling. When a target Collection vehicle arrives at the Designated Transfer and Processing Facility, the scale house staff will confirm the material stream and origin of the load (e.g., Single-Family Targeted Recyclable Materials from the north geographic area). The scale house staff will copy the sample cell number from the Collection vehicle selection form onto the appropriate sample placard and provide the placard to the driver. A cell number represents the location within a load from which a sample will be extracted and is defined by the map in Figure 1. Additionally, the scale house staff will record the load's net weight on the vehicle selection sheet. Franchise Agreement for Collection Services Attachment E-2 City of Burlingame Page 5 of 20 The scale house staff will instruct the driver to.place the placard in a highly visible place at the front of the truck (e.g., on the dashboard), and will direct the driver where to unload. The placard is the signal to the sampling crew that a load selected for sampling has arrived. The placard is marked with a unique sample identification number and additional information used to randomly select cells, identify loads in photographs, and correlate net weights with sample details. Each placard will be coded according to its corresponding material stream and origin (e.g., 'O-S-01' indicates a load of Single- Family Organic Materials from the south geographic area). Sample collection The tipping house staff will direct the driver to empty the entire truckload of material in an elongated pile on a designated dumping area. To the extent possible, this area shall be clean and the unloaded material shall be segregated from other loads on the tipping floor. The location of the unloading area may change during any given day. The sampling crew manager will collect the placard from the Contractor and, once the load is emptied, will assist the loader operator(s) in locating the appropriate cell for the sample, as noted on the sample placard, using the map shown in Figure 1. The map shown in Figure 1 shall always be oriented with cells 1, 2, 9 and 10 representing the material contained in the front of the truck and cells 7, 8, 15 and 16 representing the material contained in the rear of the truck and unloaded first. The loader operator(s) will then extract the material in the selected cell. The sampling crew manager will guide the loader operator(s) to a designated tarpaulin, and will ensure that the proper quantity of material (one-hundred and twenty five (125)to two hundred and twenty five (225) pounds, depending on the material stream) is unloaded on the tarpaulin. A shovel may be used to add material from the bottom of the cell to ensure the sample includes some heavy and small material that the loader bucket failed to collect. Pulling the tarpaulin taught is a basic test used to estimate sample weight. If it is determined that a sample is too heavy it may be lightened by removing vertical slices from the sample. If it is determined that a sample is too light it may be increased by adding more material. It is important to add or remove all material in the slice from the top to bottom, to ensure that both small, heavy, and loose materials and large, light, and bagged materials are added or removed. Samples can be queued and stored on tarps until sorted, but samples shall be kept separate. The sampling crew manager will place the sample placard on its respective sample for a photograph and, if the sample is not immediately sorted, wrap the sample in its tarpaulin for later sampling. The sampling crew manager will photograph each load individually with the sample placard visible and legible. Franchise Agreement for Collection Services Attachment E-2 City of Burlingame Page 6 of 20 Figure 1: Sixteen (16) Cell Grid s - - ----_- ----------- ------ ------- ---- -- ----------- - 3 � ' ' 13 ----------- ---------- ' g 10 Note: Cells 12, 14 and 16 are below cells 4, 6 and 8, respectively. Sample sorting The sampling crew manager will record the sample identification number, as designated by the placard, on the tally form (see Appendix 2 for an example of this form). The sampling crew will move the sample into the designated sampling/sorting area. The sampling crew and the sampling crew manager will sort the Contamination materials, as -� defined in Section 5, out of the load and into designated sort receptacles. The sampling crew will then weigh the Contamination materials and the sampling crew manager will record the weights on the tally form. The remainder of the load-all acceptable items-will be put into receptacles, weighed, and recorded by the sampling crew manager on the tally form. The sampling crew manager is responsible for monitoring the homogeneity of material in each receptacle and ensuring the accuracy of the sorting process. For increased efficiency, the sampling crew manager shall be responsible for either pre-programming the scale with the receptacle tare weights, or recording the receptacle tare weights for subtraction later. At the end of each sampling day the sampling crew and sampling crew manager must comply with any Facility directions regarding cleaning the designated sampling/sorting area and storing sampling and sorting supplies. Sample disposal After the weight of all material in each sample is recorded on the tally sheet, the sampling crew and the sampling crew manager will move the sample to a location where it is safe and convenient for the loader operator(s)to remove. Data management At the end of each sampling day, the sampling crew manager, Contractor and SBWMA shall review all forms for accuracy and completeness to ensure timely resolution of any disputes or issues that may arise. The sampling crew manager will collect the vehicle selection sheets from the scale house staff and ensure that net weights have been recorded for each selected load. Franchise Agreement for Collection Services Attachment E-2 City of Burlingame Page 7 of 20 To ensure the vehicle selection and tally forms are not lost before inputting the data into an electronic form, the sampling crew manager will make copies of all completed forms and will keep the copies in a separate place from the originals: The sampling crew manager will ensure a copy of the form is delivered within one (1) day to the person inputting the data into an electronic form. 5. Sorting categories All loads identified for sorting shall be sorted and weighed into the following two (2) categories: 1) Contamination 2) Targeted Recyclable Materials, Source-Separated Targeted Recyclable Materials, Organic Materials, or Plant Materials 6. Calculations Estimates of Contamination and Targeted Recyclable Materials, Source-Separated Targeted Recyclable Materials, Organic Materials, or Plant Materials will be calculated using a method that gives equal weighting or"importance"to each sample within a given stream. Confidence intervals (error ranges)will be calculated based on assumptions of normality in the composition estimates. In the descriptions of calculation methods, the following variables will be used: • i denotes an individual sample. `. j denotes the material type. • c;is the weight of the material type j in a sample. • w is the weight of an entire sample. • r;is the composition estimate for material j(r stands for ratio). • a denotes a region of the state (a stands for area). • s denotes a particular sector or subsector of the waste stream. • n denotes the number of samples in the particular group that is being analyzed at that step. Estimating the Composition The following method will be used to estimate the composition of waste belonging to the Commercial Source-Separated and Targeted Recyclable Materials, Commercial Organic Materials, Commercial Plant Materials, Single-Family Targeted Recyclable Materials, and Single-Family Organic Materials streams. For a given stream, the composition estimate denoted by r;represents the ratio of the component's weight to the total weight of all the samples in the stream. This estimate will be derived by summing each component's weight across all of the selected samples belonging to a given stream and dividing by the sum of the total weight of waste for all of the samples in that stream, as shown in the following equation: Franchise Agreement for Collection Services Attachment E-2 City of Burlingame Page 8 of 20 Y,cl ri Y Wi 1 where: • c= weight of particular component • w= sum of all component weights • for i= 1 to n, where n = number of selected samples • for j= 1 to m, where m = number of components For example, the following simplified scenario involves three samples. For the purposes of this example, only the weights of the component carpet are shown. Sample 1 Sample 2 Sample 3 Weight(c) of carpet 5 3 4 Total Sample Weight(w) 80 70 90 5+3+4 rc"' _ 80+70+90 0.05 To find the composition estimate for the component carpet, the weights for that material are added for all selected samples and divided by the total sample weights of those samples. The resulting composition is 0.05, or five percent (5%). In other words, five percent (5%) of the sampled material, by weight, is carpet. This finding is then projected onto the stratum being examined in this step of the analysis. Franchise Agreement for Collection Services Attachment E-2 City of Burlingame Page 9 of 20 The confidence interval for this estimate will be derived in two (2) steps. First, the variance around the estimate will be calculated, accounting for the fact that the ratio included two (2) random variables (the component and total sample weights). The variance of the ratio estimator equation follows: Y,(cY —riIv;� Var(rj) 1 J� Iz J (2) n �v n-1 where: I w, (3) w = n (For more information regarding Equation 2, please refer to Sampling Techniques, 3rd Edition by William G. Cochran [John Wiley & Sons, Inc., 1977].) Second, precision levels at the 90 percent (90%) confidence level will be calculated for a component's mean as follows: ri ±(z Var(r,)) (4) where z = the value of the z-statistic (1.645) corresponding to a 90 percent (90%) confidence level. Franchise Agreement for Collection Services Attachment E-2 City of Burlingame Page 10 of 20 Appendix 1: Methodology checklist Roles and responsibilities • sampling crew manager—responsible for identifying selected samples, working with Facility staff and the sampling crew, quality control, and compliance with Facility regulations. • sampling crew—responsible for sorting samples. • MRF manager—responsible for coordinating with the sampling crew manager, SBWMA, and drivers. • scale house staff—responsible for identifying selected vehicles, distributing sample placards, and directing drivers towards the sampling area. • tipping floor staff—creating a designated sampling and sorting area, and ensuring segregation of selected loads in that area. • loader operator(s)—responsible for segregating the selected load from other loads in the designated sampling and sorting area. • project manager—responsible for managing the sampling process. • facility manager—responsible for managing day-to-day operations at the Designated Transfer and Processing Facility. • Contractor-- responsible for informing the scale house staff of load origin and type and for passing sample placards to the sampling crew manager. ❑ Advanced Preparation ❑ Project Manager ❑ Contact MRF manager ❑ Confirm study dates ❑ Ask MRF manager to update the following employees with the sampling plan: ❑ scale house staff ❑ loader operator(s) ❑ tipping house staff ❑ Contractor ❑ Any other affected staff ❑ Share study quotas ❑ Request expected traffic volumes ❑ Request safety expectations ❑ Schedule safety training ❑ Ask if there are any circumstances that may affect the study (i.e., weather, animals, site construction, etc.) ❑ Obtain safety gear(Appendix 3) ❑ Check safety gear ❑ Obtain sorting equipment (Appendix 3) o Check sorting equipment ❑ Develop and print daily sampling quotas (Appendix 2) ❑ Develop and print vehicle selection sheets (Appendix 2) ❑ Print tally sheets (Appendix 2) ❑ Print on "Rite in the Rain" all-weather paper -� Franchise Agreement for Collection Services Attachment E-2 City of Burlingame Page 11 of 20 Sampling crew and sampling crew manager ❑ Review material list ❑ Review field forms ❑ Review study requirements ❑ Review unique site requirements ❑ Review quotas ❑ Arrival at Facility ❑ Sampling crew: i Arrive at Facility ahead of schedule ❑ Participate in any required safety training ❑ Don safety gear ❑ Sampling crew manager: ❑ Arrive at Facility ahead of schedule ❑ Reviews logistics and expectations with MRF manager ❑ Participate in any required safety training ❑ Don safety gear ❑ Scale House Coordination ❑ Sampling crew manager: ❑ Explain the basic objective of the study to the scale house staff ❑ Explain the responsibilities of the scale house staff ❑ Explain the needs of the study despite breaks and shift changes ❑ Encourage scale house staff to plan transitions for breaks and shift changes ❑ Provide scale house staff with vehicle selection sheet ❑ Discuss expected vehicle traffic ❑ Ask scale house staff if this is reasonable ❑ Provide scale house staff with sampling placards ❑ Provide scale house staff with sampling crew manager's cell phone number ❑ Tipping Floor Coordination ❑ Sampling crew manager: ❑ Designate a designated sampling/sorting area on each tipping floor(2) with input from tipping floor staff and loader operator(s), meeting the following criteria: ❑ sampling crew can see selected loads entering the tipping floor area ❑ Loader operator(s) can visually communicate with sampling crew ❑ Loader operator(s) can safely remove sorted loads ❑ Approximately twenty (20)feet by twenty (20) feet ❑ Explain and walkthrough the sampling process with both the tipping house staff and the loader operator(s) ❑ Explain how trucks with placards are samples ❑ Explain that samples must be dumped in a clean area, separate from other loads (called a designated dumping area) ❑ Explain that the sampling crew manager is responsible for collecting the placard and responsible for identifying the selected cell of the load that the loader operator(s)will sample ❑ Explain that each sample is between one hundred and twenty five �... (125) and two hundred and twenty five (225) pounds Franchise Agreement for Collection Services Attachment E-2 City of Burlingame Page 12 of 20 ❑ Explain that the sampling crew manager will be responsible for guiding the loader operator(s) to the appropriate tarpaulin ❑ Note: Explanation will need to be repeated for each designated sorting area ❑ Sampling crew: ❑ Set up designated sampling sorting area one ❑ Sorting table ❑ Baskets ❑ Digital scale(s) ❑ Set up designated sampling sorting area two ❑ Sorting table ❑ Baskets ❑ Digital scale(s) ❑ Sample Collection ❑ Tipping house staff: ❑ Direct load to a designated dumping area ❑ Sampling crew manager: ❑ Collect placard from Contractor U Direct loader operator(s) to pre-selected sampling cell ❑ Direct loader operator(s) to designated tarpaulin ❑ Signal loader operator(s) with tipping instructions ❑ Pull tarp to test for appropriate sample weight ❑ Place placard in the load ❑ Photograph load ❑ Placard should be visible and legible ❑ Wrap and segregate load until ready to sort ❑ Loader operator(s): ❑ Pinch/scoop sample, as directed by the sampling crew manager ❑ Tip sample on designated tarpaulin, as directed by the sampling crew manager ❑ Sampling crew: ❑ May assist sampling crew manager at any point ❑ Sample Sorting ❑ Sampling crew: ❑ Move the sample into the designated sampling/sorting area ❑ Sort the sample ❑ Sort Contamination materials into designated baskets ❑ Assist the sampling crew manager with weighing the baskets ❑ Assist the sampling crew manager with weighing the remainder material ❑ Sampling crew manager: ❑ Record the sample identification number onto the tally sheet ❑ Assist the sampling crew in moving the sample into the designated sampling/sorting area ❑ Sort the sample ❑ Sort Contamination materials into designated baskets ❑ Weigh Contamination baskets and record weights on the tally sheet ❑ Ensure homogeneity of materials ❑ Weigh remainder material and record weights on the tally sheet ❑ Ensure all Contamination materials are removed Franchise Agreement for Collection Services Attachment E-2 City of Burlingame Page 13 of 20 n Sample Disposal ❑ Sampling crew manager and sampling crew: ❑ Dispose of all materials in a designated disposal area ❑ Loader operator(s): ❑ Remove disposed materials when it is safe and convenient ❑ Data Management ❑ Sampling crew manager: ❑ Collect vehicle selection sheets from the scale house staff ❑ Review all forms for accuracy and completeness ❑ Vehicle selection sheet(s) ❑ Tally sheet(s) ❑ Project Manager ❑ Check all forms for accuracy and completeness ❑ Vehicle selection sheets(s) ❑ Tally sheet(s) ❑ Copy all data forms ❑ Store copies separate from the originals ❑ Download pictures from camera ❑ Provide copies of data for electronic input ❑ Ensure data entry is checked for accuracy Franchise Agreement for Collection Services Attachment E-2 City of Burlingame Page 14 of 20 Appendix 2: Example Data collection forms Appendix 2 consists of copies of each of the following three (3) data collection forms • Collection vehicle selection sheet • sampling placard • tally sheet Franchise Agreement for Collection Services Attachment E-2 City of Burlingame Page 15 of 20 Figure 2: Example Collection Vehicle selection sheet Vehicle Selection Sheet Sampling Date: June 25,2009 SBWMA:Contamination Sampling 1"Load Arrives At: 9:00:00 AM Notes:Betty working at scale house,helped with sampling before. p yo RethinkWaste SJutA 3::91:U'a•.P;Fknc�:m2B:;:fP�dti Truck Load Sampling Sample Sample Vehicle Number Net Weight No. No. ETA Population ID Cell Type of samples (pounds) Notes 2238 1 9:00 CSS-N CSS-1 3 FL 1 1318 1 9:00 RSS-S RSS-1 8 FL 1 1310 1 10:30 CO-E CO-1 4 FL 1 2305 2 12:00 CO-W CO-2 2 FL 1 1227 1 13:00 CSS-E CSS-2 1 FL 1 1313 1 13:00 RO-E RO-1 9 FL 1 1308 1 13:30 CGW-N CGW-1 7 Fl- 2240 L2240 1 14:00 CGW-N CGW-2 1 FL 1 2243 2 14:00 RO-W RO-2 7 FL 1 1317 2 -3 2 RO 15C Multi Sample Loads 1319 2 15:30 CGW-E CGW-3&4 6,13 FL 2 1309 2 15:30 RSS-N RSS-2&3 9,1 FL 2 CONTINGENCY SAMPLES 1316 1 11:30 RSS-N 7 FL 1 2244 2 11:30 RO-W 14 FL 1 Any Additional Samples or notes? Franchise Agreement for Collection Services Attachment E-2 City of Burlingame Page 16 of 20 Figure 3: Example Sampling placard ®ate: Jurisdiction: RSS 1 Cell 13 Franchise Agreement for Collection Services Attachment E-2 City of Burlingame Page 17 of 20 Figure 4: Example Tally sheet RethinkWaste South Bayside Waste Management Authority:Contamination Sampling DATE: SAMPLE ID: Container) Container 2 h WEIGHT: SAMPLING POPULATION: SAMPLE Container 3 F Z Container Z Container QContainer 6 TIME: TRUCK NO.: I— Z Container OContainer LOAD NO.: CELL NO.: Container 9 Container 10 Container) Container 2 Container 3 NOTES: W Container m d Container - F— LUContainer U U Container Q Container Container Container 10 Franchise Agreement for Collection Services Attachment E-2 City of Burlingame Page 18 of 20 Appendix 3: Equipment list Appendix 3 provides a list of equipment necessary for all sampling and sorting activities. Extra safety equipment should be available to ensure the safety of observers or others at the sorting site. Sorting equipment: Safety equipment: • approximately twenty (20) • dust masks (N-95 or better) identical sorting containers (e.g. • safety glasses laundry baskets or five (5) gallon • hearing protection buckets) • steel-toed work boots • square point shovels . puncture resistant gloves • rakes • glove liners (latex or nitrile) • push brooms • leather work gloves • digital scale, battery powered . reflective safety vests (Brite (weigh up to four hundred (400) pounds, accurate to one-tenth Lime) . (1/10) of a pound) • hard hats • spare batteries for the scale • safety/medical kit • fifteen (15) to twenty (20)ten (10) • fire extinguisher foot by twelve (12) foot or similar • disinfecting soap, paper towels, size tarps antiseptic towels • clipboards • water • field forms printed on Rite in the • rubber aprons or Tyvek Rain paper protective garments • permanent markers • mechanical pencils • tape measures • utility knives, scissors • duct tape • ten (10) to fifteen (15) Carts • ten (10) to fifteen (15) plastic receptacles • four (4) metal eight (8) foot by twelve (12) foot tables • one (1) metal work desk with drawer • erasable placards and markers • digital camera with extra flash card • moisture probe • six (6) special pallets with solid tops • three (3) six cubic yard Bins • three (3) three cubic yard Bins —IN Franchise Agreement for Collection Services Attachment E-2 City of Burlingame Page 19 of 20 Franchise Agreement for Collection Services Attachment E-2 City of Burlingame Page 20 of 20 ATTACHMENT F FAITHFUL PERFORMANCE BOND IN WITNESS WHEREOF, the Principal and Surety have executed this instrument as of this day of 12009. RECOLOGY SAN MATEO COUNTY_ (PRINCIPAL) By: Name: Mark R. Lomele Title: Senior Vice President & CFO (SURETY) By: Attorney-In-Fact Name: --� Note: To be considered complete, both the principal and surety must sign this performance bond. In addition, the surety's signature must be acknowledged by a notary public and a copy of the surety's power of attorney must be attached. Franchise Agreement for Collection Services Attachment F City of Burlingame Faithful Performance Bond Page 2 of 3 ATTACHMENT F-1 CONTINUATION CERTIFICATION In consideration of the premium charged, hereby continues in force: Bond#: Dated: In the amount of: Dollars ($ ) on behalf of the[NAME OF AGENCY], for the period: Beginning: And Ending: subject to all terms and conditions of said Bond, PROVIDED that the liability of: (NAME OF SURETY) shall not exceed in the aggregate the amount above written, whether the loss shall have occurred during the term of said bond or during any continuation or continuations thereof, or partly during said term and partly during any continuation or continuations thereof. Signed and Sealed: (date) By: Attorney-I n-Fact [ACKNOWLEDGEMENT] Franchise Agreement for Collection Services Attachment F City of Burlingame Faithful Performance Bond Page 3 of 3 ATTACHMENT H DELINQUENT PAYMENT POLICY Delinquent Payment Single-Family Residential Customers will be considered delinquent sixty (60) Days after start of the quarter in which Collection services are provided by Contractor and Multi-Family Dwelling and Commercial Customers will be considered delinquent thirty (30) Days after payment is due to Contractor. (Option 1) Contractor may discontinue service to any Account, if payment is not received by Contractor within thirty (30) Days after the Account becomes delinquent. Contractor must provide all delinquent Accounts with written notice of its intent to discontinue service at least thirty (30) Days prior to such discontinuance. Agency shall allow Contractor to Collect a premium fee to initiate service at a discontinued service Account, in an amount not to exceed (i) {insert flat fee} or (ii) twenty-five percent (25%) of the unpaid balance for Residential Customers and ten percent (10%) of the balance for Multi-Family Residential and Commercial Customers. (Option 2) Contractor may assess a late fee, at a Rate not to exceed twenty-five percent (25%) of the unpaid balance of Single-Family Residential Customers Bills, and at a Rate not to exceed ten percent (10%) of the balance for Multi-Family Residential and Commercial Customers, monthly if payment is not received by Contractor within thirty (30) Days after the account becomes delinquent. Contractor must provide all delinquent Accounts with written notice of its intent to assess late fees at least fifteen (15) Days prior to such assessment. Collection Services Franchise Agreement Attachment H City of Burlingame Delinquent Payment Policy Page 1 of 1 GUARANTY THIS GUARANTY (the "Guaranty") is given as of the 2nd day of November, 2009, by RECOLOGY, INC., formerly NORCAL WASTE SYSTEMS, INC., ("Guarantor"), to City of Burlingame, a public agency ("Agency"). THIS GUARANTY is made with reference to the following facts and circumstances: A. Recology San Mateo County ("Contractor") is a corporation organized under the laws of the State of California, all of the issued and outstanding stock of which is owned by Guarantor. B. Guarantor is a corporation organized under the laws of the State of California. C. Contractor and Agency have negotiated an Agreement for Recyclable Materials, Organic Materials, and Solid Waste Collection ("Agreement"), under which Contractor is to provide specified services to Agency. A copy of this Agreement is attached hereto and incorporated herein by this reference. D. It is a requirement of the Agreement, and a condition to Agency's entering into the Agreement, that Guarantor guaranty Contractor's performance of the Agreement. E. Guarantor is providing this Guaranty to induce Agency to enter into the Agreement. �-' NOW, THEREFORE, in consideration of the foregoing, Guarantor agrees as follows: 1. Guaranty of the Agreement. Guarantor hereby irrevocably and unconditionally guarantees to Agency the complete and timely performance, satisfaction and observation by Contractor of each and every term and condition of the Agreement which Contractor is required to perform, satisfy or observe. In the event that Contractor fails to perform, satisfy or observe any of the terms or conditions of the Agreement, Guarantor will promptly and fully perform, satisfy or observe them in the place of the Contractor. Guarantor hereby guarantees prompt payment to Agency of each and every sum due from Contractor to Agency under the Agreement, as and when due from time to time, and the prompt performance of every other task and duty to be performed by the Contractor under the Agreement. 2. Guarantor's Obliqations Are Absolute. The obligations of the Guarantor hereunder are direct, immediate, absolute, continuing, unconditional and unlimited and, with respect to any payment obligation of Contractor under the Agreement, shall constitute a guarantee of payment and not of collection, and are not conditional upon the genuineness, validity, regularity or enforceability of the Agreement. 3. Waivers and Subordination. The Guarantor shall have no right to terminate this Guaranty or to be released, relieved, exonerated or discharged from its obligations under it for any reason whatsoever, including, without limitation: (1) the insolvency, bankruptcy, reorganization or cessation of existence of the Contractor; (2) any amendment, modification or waiver of any provision of the Agreement or the extension of its Term; (3) the actual or purported rejection of the Agreement by a trustee in bankruptcy, or any limitation on any claim in bankruptcy resulting from the actual or purported termination of the Agreement; (4) any waiver, extension, release or modification with respect to any of the obligations of the Agreement guaranteed hereunder or the impairment or suspension of any of Agency's rights or remedies Franchise Agreement for Collection Services Guaranty City of Burlingame Page 1 of 4 GUARANTY against Contractor;or(5)any merger or consolidation of the Contractor with any other organization,or any sale,lease or transfer of any or all the assets of the Contractor. The Guarantor hereby waives any and all rights,benefits and defenses under California Civil Code Sections 2809,2815,2819,2845,2849 and 2850,and all other rights permitted to be waived by Section 2856(a)including,without limitation,the right to require Agency to(a) proceed against Contractor,(b)proceed against or exhaust any security or collateral Agency may hold now or hereafter hold,or(c)pursue any other right or remedy for Guarantor's benefit, and agree that Agency may proceed against Guarantor for the obligations guaranteed herein without taking any action against Contractor or any other guarantor or pledgor and without proceeding against or exhausting any security or collateral Agency may hold now or hereafter hold. Agency may unqualifiedly exercise in its sole discretion any or all rights and remedies available to it against Contractor or any other guarantor or pledgor without impairing Agency's rights and remedies in enforcing this Guarantee. The Guarantor hereby waives and agrees to waive at any future time at the request of Agency,to the extent now or then permitted by applicable law,any and all rights which the Guarantor may have or which at any time hereafter may be conferred upon it,by statute, regulation or otherwise,to avoid any of its obligations under,or to terminate,cancel,quit or surrender this Guaranty. Without limiting the generality of the foregoing,it is agreed that the occurrence of any one or more of the following shall not affect the liability of the Guarantor hereunder:(a)at any time or from time to time,without notice to the Guarantor,the time for Contractor's performance of or compliance with any of its obligations under the Agreement is extended,or such performance or compliance is waived;(b)the Agreement is modified or amended in any respect;(c)any other indemnification with respect to Contractor's obligations under the Agreement or any security therefor is released or exchanged in whole or in part or otherwise dealt with;(d)any assignment of the Agreement is effected which does not require Agency's approval;or(e)any termination or suspension of the Agreement arising by reason of a default by Contractor. The Guarantor hereby expressly waives diligence,presentment,demand for payment or performance,protest and all notices whatsoever,including,but not limited to,notices of non- payment or non-performance,notices of protest,notices of any breach or default,and notices of acceptance of this Guaranty. If all or any portion of the obligations guaranteed hereunder are paid or performed,Guarantor's obligations hereunder shall continue and remain in full force and effect in the event that all or any part of such payment or performance is avoided or recovered directly or indirectly from Agency as a preference,fraudulent transfer or otherwise,irrespective of(a)any notice of revocation given by Guarantor or Contractor prior to such avoidance or recovery,or(b)payment in full of any obligations then outstanding. The Guarantor expressly subordinates and waives its rights to subrogation, reimbursement,contribution or indemnity with respect to performance by Guarantor of the obligations of Contractor guaranteed hereby,until such time as Agency receives payment or performance in full of all such obligations. " 4. Term. This Guaranty is not limited to any period of time,but shall continue in full force and effect until all of the terms and conditions of the Agreement have been fully performed by Contractor,and Guarantor shall remain fully responsible under this Guaranty without regard to the acceptance by Agency of any performance bond or other collateral to assure the performance of Contractor's obligations under the Agreement. Guarantor shall not be released of its obligations hereunder so long as there is any claim by Agency against Contractor arising Franchise Agreement for Collection Services Guaranty City of Burlingame Page 2 of 4 GUARANTY out of the Agreement based on Contractor's failure to perform which has not been settled or discharged. 5. No Waivers by Agency. No delay on the part of Agency in exercising any rights under this Guaranty or failure to exercise such rights shall operate as a waiver of such rights. No notice to or demand on Guarantor shall be a waiver of any obligation of Guarantor or right of Agency to take other or further action without notice or demand. No modification or waiver by Agency of any of the provisions of this Guaranty shall be effective unless it is in writing and signed by Agency and by Guarantor, nor shall any waiver by Agency be effective except in the specific instance or matter for which it is given. 6. Attorney's Fees. In addition to the amounts guaranteed under this Guaranty, Guarantor agrees to pay actual attorney's fees and all other costs and expenses incurred by Agency in enforcing this Guaranty, or in any action or proceeding arising out of or relating to this Guaranty, including any action instituted to determine the respective rights and obligations of the parties hereunder. 7. Governing Law; Jurisdiction. This Guaranty is and shall be deemed to be a contract entered into in and pursuant to the laws of the State of California and shall be governed and construed in accordance with the laws of California without regard to its conflicts of laws rules for all purposes, including, but not limited to, matters of construction, validity and performance. Guarantor agrees that any action brought by Agency to enforce this Guaranty may be brought in any court of the State of California and Guarantor consents to personal jurisdiction over it by such courts. Guarantor appoints the following person as its agent for service of process in California: Michael J. Sangiacomo 50 California Street, 24th Floor San Francisco, CA 94111 8. Severability. If any portion of this Guaranty is held to be invalid or unenforceable, such invalidity shall have no effect upon the remaining portions of this Guaranty, which shall be severable and continue in full force and effect. 9. Binding on Successors. This Guaranty shall inure to the benefit of Agency and its successors and shall be binding upon Guarantor and its successors, including a successor entity formed by a merger or consolidation, a transferee of substantially all of its assets, and its shareholders in the event of its dissolution or insolvency. 10. Authority. Guarantor represents and warrants that it has the corporate power to give this guaranty, that its execution of this Guaranty has been authorized by all necessary action under its Articles of Incorporation and by-laws, and that the person signing this Guaranty on its behalf has authority to do so. 11 . Notices. Notice shall be given in writing, deposited in the U.S. mail, registered or certified, first class postage prepaid, addressed as follows: To Agency: City of Burlingame 501 Primrose Road Nft,. Burlingame, CA 94010 Attention: Jesus Nava Franchise Agreement for Collection Services Guaranty City of Burlingame Page 3 of 4 GUARANTY With a copy to Agency's Attorney at the same address. �. To Guarantor: Recology, Inc. 50 California Street, 24th Floor San Francisco, CA 94111 Attention: Michael Sangiacomo The parties may change the address to which notice is to be sent by giving the other party notice of the change as provided in this Section. IN WITNESS WHEREOF, Guarantor has executed this Guaranty on the day and year first above written. RECOLOGY, INC. By: Name: Michael J. Sangiacomo Title: President By: Name: Title: Secretary Franchise Agreement for Collection Services Guaranty City of Burlingame Page 4 of 4 ATTACHMENT H DELINQUENT PAYMENT POLICY Delinquent Payment Single-Family Residential Customers will be considered delinquent sixty (60) Days after start of the quarter in which Collection services are provided by Contractor and Multi-Family Dwelling and Commercial Customers will be considered delinquent thirty (30) Days after payment is due to Contractor. Contractor may assess a late fee, at a Rate not to exceed twenty-five percent (25%) of the unpaid balance of Single-Family Residential Customers Bills, and at a Rate not to exceed ten percent (10%) of the balance for Multi-Family Residential and Commercial Customers, monthly if payment is not received by Contractor within thirty (30) Days after the account becomes delinquent. Contractor must provide all delinquent Accounts with written notice of its intent to assess late fees at least fifteen (15) Days prior to such assessment. Collection Services Franchise Agreement Attachment H City of Burlingame Delinquent Payment Policy Page 1 of 1 ATTACHMENT I PERFORMANCE INCENTIVES AND DISINCENTIVES Performance incentives (in the form of increased compensation to Contractor) will be awarded for excellent performance on aspects of Solid Waste diversion, Collection service delivery and Customer service as specified in this Attachment. Any performance incentive for achieving or surpassing the performance standards specified herein shall be added to Contractor's Compensation during the Rate Year immediately following the calculation and award of the performance incentive. Performance disincentives will be assessed for substandard performance on aspects of Solid Waste diversion, Source Separated and Targeted Recyclable Materials contamination, Organic Materials contamination, Plant Materials contamination, Collection service delivery and Customer service as specified in this Attachment. Any performance disincentives for performance falling below standards as specified herein shall be subtracted from Contractor's Compensation during the Rate Year immediately following the calculation and assessment of the performance disincentive, with the exception of Contamination related disincentives which shall be paid by Contractor quarterly. The performance incentives and disincentives contained herein will commence after full implementation of the roll-out of new services to Agency, with the exception of Contamination disincentives for Single-Family Targeted Recyclable Materials, which will commence after the first six (6) months of Rate Year One (2011). Agency may defer imposing some standards until after the first six (6) months of the roll-out of new services. 1. GENERAL Agency shall provide an incentive payment to Contractor for exceeding the following three (3) performance standards: -� • Overall Diversion Level • Single-Family Missed Pick-Up Initial Complaints • Average Speed of Answer Agency shall assess a disincentive payment to Contractor for not meeting the following eleven (11) performance standards: • Minimum Single-Family Diversion Level • Minimum Commercial Diversion Level • Maximum Contamination Level -Single-Family Targeted Recyclable Materials • Maximum Contamination Level -Single-Family Organic Materials • Maximum Contamination Level - Commercial Source Separated and Targeted Recyclable Materials • Maximum Contamination Level -Commercial Organic Materials • Maximum Contamination Level - MFD and Commercial Plant Materials • Single-Family Missed Pick-Up Initial Complaints • Single-Family Missed Pick-Up Collection Events • Average Speed of Answer • Ninety (90) Second Maximum Hold Time Table 1 provides a summary of the incentives and disincentives, which are described in detail in Sections 2 - 7 of this Attachment. Section 8 of this Attachment describes the incentive and disincentive payment procedures. Collection Services Franchise Agreement Attachment I City of Burlingame Performance Incentives and Disincentives Page 1 of 13 ATTACHMENT I ,. PERFORMANCE INCENTIVES AND DISINCENTIVES Summary of Incentives/Disincentives Annual Diversion Level Overall Not applicable calculated Incentive payment= $70.00 per Diversion Level' Overall Diversion Ton Level > targeted Overall Diversion Level Minimum Level <TBD/ Not applicable Disincentive payment= $70.00 Single-Family per Ton Diversion Level Minimum Level < TBD% Not applicable Disincentive payment= $70.00 Commercial per Ton Diversion Level Maximum Rate Year One level Not applicable Disincentive payment= $175.00 Contamination > 20%3 per Ton Level — Residential Rate Year Two Targeted (2012) through Ten Recyclable (2020) level > TBD4 Materials Maximum Level > 5% Not applicable per Ton tive payment= $70.00 Contamination Level— Residential Organic Materials Maximum Level > 8% Not applicable er Ton Disincentive payment= $70.00 Contamination Level—Commercial Targeted Recyclable Materials Maximum Level > 10% Not applicable Disincentive payment= $70.00 Contamination per Ton Level—Commercial Organic Materials Maximum Level > 5% Not applicable Disincentive payment= $70.00 Contamination per Ton Level—MFD and Commercial Plant Materials Single-Family Actual % > 0.1% Actual % < Incentive or Disincentive Missed Pick-Up (1 Complaint per 0.033% payment= $50.00 per Initial Complaints 1,000 Service (1 Complaint per Complaint Opportunities) 3,000 Service Opportunities) Collection Services Franchise Agreement Attachment I Performance Incentives and Disincentives City of Burlingame Page 2 of 13 ATTACHMENT I PERFORMANCE INCENTIVES AND DISINCENTIVES --� Single-Family Actual > 0 Not applicable Disincentive payment= $50.00 Missed Pick-Up per Missed Pick-Up Collection. Collection Event Event Average Speed of Actual > 30 Actual < 15 Incentive or disincentive Answer seconds seconds payment= $500 per second above or below the threshold Ninety (90) Second Actual < 100% of all Not applicable Disincentive payment= $5.00 Maximum Hold calls received are per number of calls exceeding Time answered in ninety the threshold (90) seconds or less ' "TBD" is "to be determined. The minimum Single-Family Diversion Level for Rate Year One (2011) shall equal the calculated Single-Family Diversion Level achieved by the Previous Contractor in 2010 which shall include all Recyclable Materials Collected by Contractor during the Recycling Blitz in 2010. The minimum Single-Family Diversion Level for Rate Year Two (2012) through Ten (2020) shall equal the higher of the following: (i) the Single-Family Diversion Level achieved by Previous Contractor in 2010 including all Recyclable Materials Collected by Contractor during the Recycling Blitz in 2010 or (ii) the Single-Family Diversion Level achieved by Contractor in Rate Year One (2011). 2 "TBD" is "to be determined. The minimum Commercial Diversion Level targeted for Rate --� Year One shall equal the calculated Commercial Diversion Level achieved by the Previous Contractor in 2010 which shall include all Recyclable Materials Collected by Contractor during the Recycling Blitz in 2010. The minimum Commercial Diversion Level for Rate Year Two shall equal the higher of the following (i) the Commercial Diversion Level achieved by Previous Contractor in 2010 including all Recyclable Materials Collected by Contractor during the Recycling Blitz in 2010 or (ii) the Commercial Diversion Level achieved by Contractor in Rate Year One (2011). 3 The Single-Family Dwelling Targeted Recyclable Materials maximum Contamination Level is twenty percent (20%) for the last six (6) months of Rate Year One (2011). 4 "TBD" is: "to be determined." The Rate Year Two (2012) through Rate Year Ten (2020) maximum Contamination Level will be established by calculating the arithmetic average of the quarterly results obtained from the sampling for Rate Year One (2011) conducted pursuant to Section 6.02.13 and Attachment E-2. Collection Services Franchise Agreement Attachment I City of Burlingame Performance Incentives and Disincentives Page 3 of 13 ATTACHMENT I �- PERFORMANCE INCENTIVES AND DISINCENTIVES 2. DIVERSION LEVELS Definition of Calculated Diversion Level The Single-Family, Commercial and Overall Diversion Levels achieved shall be calculated based on the methodology shown in the following example: Example assumptions (actual results will be based on Contractor performance): Rate Year Two (2 12) Results Tons Contamination Contamination Net Tons Service Sector Material Type Collected Percent Tons Single-Family Targeted Rec clable Materials 35,000 7.00% 2,450 32,550 Other Recyclable Materials 3,000 N/A N/A 3,000 Organic Materials 51,000 8.00% 4,080 46,920 Total Diversion 89,000 N/A 6,530 82,470 Solid Waste 80,000 N/A 6,530 86,530 Calculated Single-Family 48.80% Diversion Level Multi-Family Targeted Recyclable Materials 8,000 9.00% 720 7,280 Other Recyclable Materials 1,000 N/A N/A 1,000 Organic Materials 6,000 9.00% 540 5,460 Plant Materials 1,000 2.00% 20 980 Total Diversion 16,000 N/A 1,280 14,720 Solid Waste 30,000 N/A 1,280 31,280 Commercial Targeted Recyclable Materials 28,000 6.00% 1,680 26,320 Other Recyclable Materials 2,000 N/A N/A 2,000 Or anic Materials 13,000 6.00% 780 12,220 Plant Materials 5,000 4.00% 200 4,800 Total Diversion 48,000 N/A 2,660 45,340 Solid Waste 147,000 N/A 2,660 149,660 Agency Facilities Targeted Recyclable Materials 2,000F4.00% 120 1,880 Other Recyclable Materials 500 N/A 500 Or anic Materials 500 30 470 Plant Materials 200 8 192 Total Diversion 3,200 158 3,042 Solid Waste 9,000 158 9,158 Multi-Family,Commercial and Targeted Recyclable Materials 38,000 N/A 2,520 35,480 Agency Facilities Total Other Recyclable Materials 3,500 N/A 3,500 Organic Materials 19,500 1,350 18,150 Plant Materials 6,200 228 1 5,972 Total Diversion 67,200 4,098 63,102 Solid Waste 186,000 4,098 190,098 Calculated Commercial 24.92% Diversion Level' Single-Family,Multi-Family, Targeted Recyclable Materials 73,000 N/A 4,970 68,030 Commercial and Agency FacilitieS2 Other Recyclable Materials 6,500 N/A N/A 6,500 Organic Materials 70,500 N/A 5,430 65,070 Plant Materials 6,200 N/A 228 5,972 Total Diversion 156,200 N/A 10,628 145,572 Solid Waste, 266,000 N/A 4,098 276,628 Calculated Overall Annual 34.48% Diversion Leve 12 Commercial Diversion includes:Multi-Family,Commercial and Agency Facility Service Sectors. z Overall Diversion Level includes Single-Family,Multi-Family,Commercial and Agency Facility Service Sectors. �r Collection Services Franchise Agreement Attachment I City of Burlingame Performance Incentives and Disincentives Page 4 of 13 ATTACHMENT I PERFORMANCE INCENTIVES AND DISINCENTIVES Exceptional Diversion Level Performance For Rate Years Two (2012) through Ten (2020) Contractor shall receive an incentive payment if the calculated Overall Diversion Level achieved by Contractor in any given Rate Year exceeds (i) the highest calculated Overall Diversion Level achieved by Contractor in a prior Rate Year during the Term or (ii) the Overall Diversion Level achieved by Previous Contractor in 2010 which shall include all Recyclable Materials Collected by Contractor during the Recycling Blitz. For example: • If the Previous Contractor achieves an Overall Diversion Level of 36.45% (including all Recyclable Materials Collected by Contractor during the Recycling Blitz) in 2010 and Contractor achieves an Overall Diversion Level of 35.58% in Rate Year One, the Contractor must achieve an Overall Diversion Level greater than 36.45% in any given Rate Year to receive an incentive payment. • If Contractor achieves Overall Diversion Levels for Rate Years Two, Three, Four and Five of 37.66%, 38.59%, 38.38% and 37.64%, respectively, Contractor shall receive an incentive payment for Rate Year Three only and the Overall Diversion Level that must be exceeded is 38.59% in future Rate Years, unless a higher Overall Diversion Level is achieved. The targeted Overall Diversion Level shall be calculated based on the methodology used in the following example: Example assumptions (actual results will be based on Contractor performance): Collection Services Franchise Agreement Attachment I City of Burlingame Performance Incentives and Disincentives Page 5 of 13 ATTACHMENT I `- PERFORMANCE INCENTIVES AND DISINCENTIVES Disincentive Incentive Diversion Tons Tons Total Tons Payment Payment($70.00 Rate Year Level Diverted Disposed Collected ($70.00 per net per net Ton Ton Diverted) Diverted) Calculated Single-Family 49.42% 83,700 85,658 169,358 Diversion Level for 2013 Minimum Single-Family Diversion Level for 2012 48.80% 82,470 86,530 169,000 Variance from 2012 to 0.62% 1,055.30 None N/A 2013 Calculated Commercial Diversion Level for 2013 24.70% 62,010 189,000 251,010 Minimum Commercial Diversion Level for 2012 24.92% 63,102 190,098 253,200 Variance from 2012 to -0.22% -546.21 -$38,234.88 N/A 2013 Calculated Overall Diversion Level for 2013 34.66% 145,710 274,658 420,368 Targeted Overall Diversion Level for 2012 34.48% 145,572 276,628 422,200 Variance from 2012 to 0.18% 769.66 N/A $53,876.37 2013 New Targeted Overall Diversion Level for 2014 34.66% Summary: Net Payment Variance Due: Positve Single-Family Diversion= 0.62% Positive results in no Disincentive due Amount Due Contractor and $15,641.50 Commercial Diversion= -0.22% Negative results in Disincentive due Negative Amount Due Agencies Overall Diversion= 0.18% Positive results in Incentive due Minimum Diversion Level Requirements Minimum Single-Family Diversion Level For Rate Years One (2011) through Ten (2020), Contractor shall be assessed a Disincentive Payment if the calculated Single-Family Diversion Level is less than the targeted (minimum) Single-Family Diversion Level. The minimum Single-Family Diversion Level for Rate Year One (2011) shall equal the calculated Single-Family Diversion Level achieved by the Previous Contractor in 2010 including all Recyclable Materials Tons Collected by Contractor during the Recycling Blitz. The minimum Single-Family Diversion Level for Rate Year Two (2012) through Rate Year Ten (2020) shall equal the higher of the following: (i) the Single-Family �— Diversion Level achieved by Previous Contractor in 2010 including all Recyclable Collection Services Franchise Agreement Attachment I City of Burlingame Performance Incentives and Disincentives Page 6 of 13 ATTACHMENT I PERFORMANCE INCENTIVES AND DISINCENTIVES Materials Tons Collected by Contractor during the Recycling Blitz or (ii) the Single- Family Diversion Level achieved by Contractor in Rate Year One (2011). For example: • If the Previous Contractor achieves a Single-Family Diversion Level of 44.45% in 2010 and Contractor's calculated Single-Family Diversion Level is 43.85% in Rate Year One (2011), Contractor shall be assessed a disincentive payment for Rate Year One. • If the Previous Contractor achieves a Single-Family Diversion Level of 44.45% in 2010 and Contractor achieves calculated Single-Family Diversion Levels of 46.85% in Rate Year One and 45.54% in Rate Year Two, the targeted Single- Family Diversion Level for Rate Years Three (2013) through Ten (2020) shall be 46.85%. Minimum Commercial Diversion Level For Rate Years One (2011) through Ten (2020), Contractor shall be assessed a Disincentive Payment if the calculated Commercial Diversion Level is less than the targeted (minimum) Commercial Diversion Level. The minimum Commercial Diversion Level for Rate Year One (2011) shall equal the calculated Commercial Diversion Level achieved by the Previous Contractor in 2010 including all Recyclable Materials Tons Collected by Contractor during the Recycling Blitz. The minimum Commercial Diversion Level for Rate Year Two (2012) through Rate Year Ten (2020) shall equal the higher of the following: (i) the Commercial Diversion Level achieved by Previous Contractor in 2010 including all Recyclable Materials Tons Collected by Contractor during the Recycling Blitz or (ii) the Commercial Diversion Level achieved by Contractor in Rate Year One (2011). For example: • If the Previous Contractor achieves a Commercial Diversion Level of 21.35% in 2010 and the Commercial Recyclable Materials Tons Collected by Contractor during the Recycling Blitz increases this Diversion level to 26.35% and Contractor's calculated Commercial Diversion Level is 25.85% in Rate Year One, Contractor shall be assessed a disincentive payment for Rate Year One. • If the Previous Contractor's activities in 2010 and Contractor's Recycling Blitz activities combined achieve a Commercial Diversion Level of 26.35% in 2010 and Contractor achieves calculated Commercial Diversion Levels of 27.13% in Rate Year One and 25.38% in Rate Year Two, the targeted Single-Family Diversion Level for Rate Years Three through Nine shall be 27.13%. Collection'Services Franchise Agreement Attachment I City of Burlingame Performance Incentives and Disincentives Page 7 of 13 ATTACHMENT I PERFORMANCE INCENTIVES AND DISINCENTIVES 3. CONTAMINATION LEVELS Contamination Level Requirements The maximum Contamination Levels shall be: • Rate Year One (2011) Single-Family Targeted Recyclable Materials = twenty percent (20%) for the last six (6) months of Rate Year One (2011) • Rate Year Two (2012) through Ten (2020) .Single-Family Targeted Recyclable Materials = TBD% "TBD" is: To Be Determined. The Rate Year Two (2012) through Rate Year Ten (2020) maximum Contamination Level will be established by calculating the arithmetic average of the quarterly results obtained from the sampling for Rate Year One (2011) conducted pursuant to Section 6.023 and Attachment E-2. • Residential Organic Materials = 5% • Commercial Source Separated and Targeted Recyclable Materials = 8% • Commercial Organic Materials = 10% • MFD and Commercial Plant Materials = 5% Contamination Disincentive Payment shall be: $175.00 per Ton for Single-Family Targeted Recyclable Materials • $70.00 per Ton for Commercial Source Separated and Targeted Recyclable Materials • $70.00 per Ton for Organic Materials $70.00 per Ton for Plant Materials The Contamination Levels achieved will be determined based on the results of the Contamination Measurement Procedure conducted pursuant to Section 6.02.B and Attachment E-2. Contamination Disincentive Payment Contractor shall be assessed a disincentive payment for exceeding the maximum Contamination Level(s), based on the methodology shown in the following example: Collection Services Franchise Agreement Attachment I City of Burlingame Performance Incentives and Disincentives Page 8 of 13 ATTACHMENT PERFORMANCE INCENTIVES AND DISINCENTIVES Allowable Measured Tons Payment Payment Material Type Collected Contamination Contamination Variance Tons Amount Due Threshold Level Single-Family Targeted Recyclable 35,000 6.20% 7.10% 0.90% 315 $175 $55,125 Materials Commercial Targeted 38,000 8.00% 6.40% -1.60% N/A $70 N/A Recyclable Materials Residential Organic 51,000 5.00% 4.82% -0.18% N/A $70 N/A Materials Commercial Organic 13,000 10.00% 8.50% -1.50% N/A $70 N/A Materials Multi-Family and Commercial Plant 6,000 5.00% 5.60% 0.60% 36 $70 $2,520 Materials Total $57,645 4. SINGLE-FAMILY MISSED PICK-UP INITIAL COMPLAINTS Incentive Payment for Exceptionally Low Missed Pick-Up Initial Complaint Level —� Contractor shall receive an incentive payment if the percentage of Missed Pick-Up Initial Complaints for Agency is less than one (1) per three-thousand (1:3,000) of the total Single-Family Service Opportunities during the monthly reporting period (e.g., 15,000 SFD that are provided service for three carts or 45,000 total weekly Service Opportunities x 4.33 weeks per month = 194,850 Service Opportunities per month, which equates to a total allowance of 58 or fewer Missed Pick-Up Initial Complaints each month; or, the total number of Complaints is less 0.033% of all Service Opportunities). In such cases, the incentive payment shall be calculated based on the following example: Actual number of Missed Pick-Up Initial Complaints = 36 Allowable threshold of Missed Pick-Up Initial Complaints = 58 Incentive Payment= $50 per complaint Incentive = Actual number< 0.033% of monthly Service Opportunities (i.e., 58) 36— 58 = -22 = <58 22x $50 = $1,100 If the percentage of Single-Family Missed Pick-Up Initial Complaints for Agency is equal to or greater than one- per three-thousand (1:3,000) Service Opportunities during the monthly reporting period, no incentive payment shall be provided for the monthly reporting period. Collection Services Franchise Agreement Attachment I City of Burlingame Performance Incentives and Disincentives Page 9 of 13 ATTACHMENT I �-- PERFORMANCE INCENTIVES AND DISINCENTIVES Disincentive Payment for Excessive Initial Single-Family Missed Pick-Up Complaints Contractor shall be assessed a disincentive payment if the percentage of Contractor's Missed Pick-Up Initial Complaints for Agency is less than one per one-thousand (1:1,000) Service Opportunities each month. If Contractor exceeds the minimum Missed Pick-Up Initial Complaints threshold, Agency shall assess a disincentive payment based on the following example: Actual number of Single-Family Missed Pick-Up Initial Complaints = 267 Allowable threshold of Single-Family Missed Pick-Up Complaints = 195 Disincentive Payment= $50 per complaint Disincentive =Actual number> 0.1% of monthly Service Opportunities (i.e., 195) 267— 195 = 72 72 * $50 = $3,600 5. SINGLE-FAMILY MISSED PICK-UP COLLECTION EVENTS Contractor shall be assessed a disincentive payment for the actual number of Single- Family Missed Pick-Up Collection Events for Agency that occur during each month. Disincentive payments for Missed Pick-Up Collection Events will be based on the following example: Actual number of Single-Family Missed Pick-Up Collection Events = 87 *...- Allowable threshold of Single-Family Missed Pick-Up Collection Events = 0 Disincentive Payment= $50 per Missed Pick-Up Collection Event 87 x $50 = $4,350 6. AVERAGE SPEED OF ANSWER AT CUSTOMER SERVICE CENTER Exceptionally Fast Average Speed of Answer Contractor shall receive an incentive payment if the actual Average Speed of Answer is less than fifteen (15) seconds each month . In such cases, the incentive payment shall be calculated based on the following example: Actual Average Speed of Answer= 14 seconds Average Speed of Answer Standard = 15 seconds Speed of Answer Incentive Payment= $500.00 per second Incentive = Actual Average < 15 seconds 14— 15 = -1 second 1 x $500.00 = $500 If the actual Average Speed of Answer is equal to or greater than fifteen (15) seconds each month, no incentive payment will be provided. Maximum Average Speed of Answer Collection Services Franchise Agreement Attachment I City of Burlingame Performance Incentives and Disincentives Page 10 of 13 ATTACHMENT PERFORMANCE INCENTIVES AND DISINCENTIVES --� Contractor shall be assessed a disincentive payment if the Average Speed of Answer is less than or equal to thirty (30) seconds each month. If Contractor fails to achieve this maximum Average Speed of Answer, the Agency shall assess a disincentive payment based on the following example: Actual Average Speed of Answer= 47 seconds Average Speed of Answer Standard = 30 seconds Speed of Answer Disincentive Payment= $500.00 per second Disincentive = Actual Average > 30 seconds 47- 30 = 17 seconds 17 x $500.00 = $8,500 If the actual Average Speed of Answer is equal to or greater than fifteen (15) seconds and less than thirty (30) seconds each month, neither incentives or disincentives shall be applied. Collection Services Franchise Agreement Attachment I City of Burlingame Performance Incentives and Disincentives Page 11 of 13 ATTACHMENT PERFORMANCE INCENTIVES AND DISINCENTIVES 7. NINETY SECOND (90) MAXIMUM HOLD TIME The maximum Hold Time shall be ninety (90) seconds. If Contractor fails to achieve this performance standard, the Agency shall assess a disincentive payment based on the following example: Number of calls exceeding the Ninety (90) Second threshold = 312 Disincentive Payment= $5.00 per call 312x $5.00 = $1,560 8. INCENTIVE/DISINCENTIVE PAYMENT PROCEDURES A. Record Keeping. In accordance with Article 9, records shall be maintained by Contractor for Agency in a manner that adequately demonstrates and documents Contractor's performance in accordance with this Agreement. The records shall be sufficient for Agency and SBWMA to determine Contractor's compliance with the specified performance standards. B. Determination of Achievement of Performance Standards. In accordance with the requirements of Sections 9.06, 9.07 and 11.07, Contractor shall provide with its quarterly and annual reports, a report that identifies compliance with the performance standards listed in this Attachment and calculation of the performance incentive payments and disincentive assessments due. Performance incentives and disincentives for Overall Diversion Level, Minimum Single-Family Diversion Level, Minimum Commercial Diversion Level, Average Speed of Answer and Ninety (90) Second Maximum Hold Time shall be calculated in aggregate for the SBWMA Service Area and Agency's share shall be proportional based on the tons of Solid Waste Collected in the previous Rate Year by Contractor or for Rate Year One (2011) by Previous Contractor in 2010. Performance incentives and disincentives for Single-Family Missed Pick-Up Initial Complaints and Single-Family Missed Pick-Up Collection Events shall be calculated separately for each Agency. Disincentive assessments for Contamination shall be calculated in aggregate and paid to the SBWMA quarterly pursuant to Agreement Sections 9.06 and 11.07, and Section 8.D of this Attachment. The incentives and disincentives that will be calculated monthly include: • Single-Family Missed Pick-Up Initial Complaints • Single-Family Missed Pick-Up Collection Events • Average Speed of Answer • Ninety (90) Second Maximum Hold Time The disincentives that will be calculated quarterly include: • Single-Family Targeted Recyclable Materials maximum Contamination Level • Single-Family Organic Materials maximum Contamination Level • Commercial Source Separated and Targeted Recyclable Materials maximum Contamination Level Collection Services Franchise Agreement Attachment I City of Burlingame Performance Incentives and Disincentives Page 12 of 13 ATTACHMENT I PERFORMANCE INCENTIVES AND DISINCENTIVES Commercial Organic Materials maximum Contamination Level • MFD and Commercial Plant Materials maximum Contamination Level The incentives and disincentives that will be calculated annually include: • Overall Diversion Level • Minimum Single Family Diversion • Minimum Commercial Diversion Level C. Amount. The incentive and disincentive payment amounts shall be determined in accordance with the formulas presented in Sections 2 - 7 of this Attachment I. D. Timing of Payment. Payments related to performance incentives and disincentives that are calculated monthly and annually are to be included in Contractor's annual Application for adjustment to Contractor's Compensation. Contractor's Compensation for the next Rate Year will be increased or decreased by the net amount of performance incentive payments and disincentive assessments calculated. Payment by Contractor for Contamination related performance disincentives that are calculated quarterly shall be paid to the SBWMA within ten (10) days after submittal of Contractor's quarterly report. The SBWMA will review Contractor's calculations of incentives and disincentive payments and underlying data for accuracy, will confer with Member Agencies to confirm data as to each Member Agency, and will meet with Contractor to resolve any errors or inconsistencies. E. Disputes by Contractor. Contractor may, within ten (10) calendar days after receiving the Agency's or SBWMA's written notice containing Agency's or SBWMA's revised determination of incentive and disincentive payments, provide written notice to Agency and SBWMA of any disagreement with Agency's or SBWMA's determination. Contractor may present evidence in writing to support its position. Agency and SBWMA shall review Contractor's submission and within ten (10) calendar days shall schedule a meeting with Contractor to discuss Contractor's concerns. The decision of Agency or SBWMA shall be final. Collection Services Franchise Agreement Attachment I City of Burlingame Performance Incentives and Disincentives Page 13 of 13 ATTACHMENT J LIQUIDATED DAMAGES The following table lists the events that constitute breaches of the Agreement's standard of performance warranting the imposition of liquidated damages; the acceptable performance level; the definition of the Complaint, incident or event; the method by which occurrences will principally be tracked (by Contractor or Agency), and the amount of liquidated damages for failure to meet the contractually-required standard of performance. Contractor is required to maintain records of Customer Complaints which show for each Complaint: date and time received; name, address and telephone number of caller; nature of Complaint (e.g., missed pick-up, excessive noise, property damage, etc.); name of employee receiving Complaint; action taken by Contractor to respond to Complaint; and date Complaint was resolved. Contractor shall submit to Agency with its quarterly report a liquidated damages report which summarizes the number of Complaints in each category and computes the amount (if any) of liquidated damages accrued by month during the preceding quarter. If Agency requests, Contractor shall also provide a printout of the full records for the quarter. Agency intends to suspend imposition of select liquidated damages for the initial six (6) months of Collection Service, provided that Contractor diligently applies its best efforts to minimize the occurrence of events which can result in the imposition of liquidated damages. The liquidated �.- damages that will be suspended for the initial six (6) months of collection service are denoted with an asterisk (i.e., " * "). If Contractor does not exert such best efforts, as determined by Agency, Agency may, after notice to Contractor, end this policy and begin enforcement of the performance standards through liquidated damages. Collection Services Franchise Agreement Attachment J City of Burlingame Liquidated Damages Page 1 of 11 TABLE 1 Event of Non- Acceptable Performance Level Definition of Complaint, Incident, or Tracking Method Liquidated Performance Event Damage Amount COLLECTION QUALITY 1. Collection Quality Number of"Collection quality Complaints" "Collection quality Complaints"shall Contractor shall $150 per Complaint(includes is less than or equal to thirty(30) per include all Complaints received regarding print a report on a Complaint Solid Waste, month for each of the following three events described under Items 1 A through quarterly basis received above Recyclable categories (i.e.,A, B and C)for the 1C herein. from its Customer the acceptable Materials and SBWMA Service Area. Table 2 provides service system performance Organic Materials the proportional distribution of the total listing the total level Collection service) monthly allowance to all Member number of Agencies. Complaints coded for each category (Items 1A through 1 C) for the Agency A. Unauthorized See above Each Complaint that Contractor has See above See above Collection performed Collection services outside of Hours hours authorized in Section 8.01.A. (includes: Solid Waste, Recyclable Materials and Organic Materials Collection service) B. Inadequate See above Each Complaint that Contractor has not See above See above Care of or closed a Customer's gate, has crossed Damage to planted areas, or has damaged private Private property (including damage of private Property vehicles) pursuant to Section 8.02.H. Collection Services Franchise Agreement Attachment J City of Burlingame Liquidated Damages Page 2 of 11 TABLE 1 7C. Failure on- Acceptable Performance Level Definition of Complaint, Incident, or Tracking Method DaBu dgaeed ce Event Amount to See above Each Complaint of Contractor's failure to See above See aboveve resolve claims of damage to property rty within thirty(30) calendar days of the date Damage the Complaint of damage was reported Claims pursuant to Section 8.02.H. 2. Failure to Provide Number of"Failures to Provide New Each Complaint of Contractor's failure to Contractor shall $100 per New Service or Service or Initiate Change in Service" is provide new service or change an existing print a report on a Complaint Initiate Change in less than or equal to sixty (60) each service level within five (5) Business Days quarterly basis received above Service month for the SBWMA Service Area. of receiving the request pursuant to service system om its Customer performanthe tce le Table 2 provides the proportional Section 8.02.C. listing the total level distribution of the total monthly allowance number of to all Member Agencies. Complaints coded to this category for the Agency. $50 per 3. * Improper The number of"Improper Container Each Complaint of Contractor's failure to Cont a report all a Complaint Container Placement Complaints"shall be less than return empty Containers to original p p Placement or equal to 500 per month for the SBWMA location (or alternate location if original quarterly basis above the Complaints Service Area.Table 2 provides the location was not safe with regard to from its Customer acceptable of the total pedestrian and vehicular traffic), and each service system performance proportional distribution monthly allowance all Member Complaint of failure to place Containers in listing the total level tion with lids closed number of Agencies. an upright posi pursuant to Section 8.02.B.1, provided Complaints coded that Contractor shall not be responsible to this category for placement of Containers that are for the Agency. moved due to wind, rain or other inclement weather conditions, third parties or other factors outside Contractor's reasonable control. Attachment J Collection Services Franchise Agreement Liquidated Damages City of Burlingame Page 3 of 11 TABLE 1 Event of Non- Acceptable Performance Level Definition of Complaint, Incident, or Tracking Method Liquidated Performance Event Damage Amount 4. Failure to Effectively The number of non-collection notices that An event is a Container set-out that Contractor shall $25 per event Distribute Non- Contractor distributes is at least 50% of all contains contamination but was not provide a report Collection Notices Container set-outs that require a non- provided a non-collection notice. on a monthly collection notice based on the presence of basis that contamination. contains information on Contactor's use of non-collection notices. 5. Excessive The number of"excessive noise Each Complaint of excessive noise Contractor shall $50 per Noise Complaints" shall be less than or equal to reportedly related to Contractor's print a report on a Complaint Complaints sixty(60) per month for the SBWMA Collection operations pursuant to Section quarterly basis above the Service Area.Table 2 provides the 8.02.J. from its Customer acceptable proportional distribution of the total service system performance monthly allowance to all Member listing the total level Agencies. number of Complaints coded to this category for the Agency. 6. Unacceptable No incidents or Complaints in this Each Complaint of reportedly Contractor shall $250 per Employee Behavior category are acceptable; therefore, any discourteous, rude, or inappropriate print a report on a Complaint Complaint of this nature shall be behavior by Collection vehicle personnel, quarterly basis considered unacceptable. Customer service personnel, or other from its Customer employees of Contractor pursuant to service system Section 8.06.H. listing the total number of Complaints coded to this category for the Ag enc . Collection Services Franchise Agreement Attachment J City of Burlingame Liquidated Damages Page 4 of 11 TABLE 1 Event of Non- Acceptable Performance Level Definition of Complaint, Incident, or Tracking Method Liquidated Performance Event Damage Amount 7. A. Complaints of The number of"Complaints of spills of Each Complaint of litter, or spills of Solid Contractor shall $50 per Spills of Discarded Materials" shall be less than or Waste, Recyclable Materials, or Organic print a report on a Complaint Discarded equal to one-hundred and twenty (120) Materials near Containers or on public quarterly basis above the Materials per month for the SBWMA Service Area. streets and Contractor's failure to pick up from its Customer acceptable Table 2 provides the proportional or clean up such material immediately service system performance distribution of the total monthly allowance pursuant to Section 8.02.1. listing the total level to all Member Agencies. number of Complaints coded to this category for the Agency. B. Complaints of See above Each Complaint of Contractor failing to See above See above Failure to clean up Solid Waste, Recyclable Clean Up Materials, or Organic Materials that were Spills of littered on public property pursuant to Discarded Section 8.02.1. Materials 8. Spills of Vehicle No incidents or Complaints in this Each Complaint of unreasonable leaks or Contractor shall $500 per Fluids category are acceptable; therefore, any spills of hydraulic fluids, fuel, motor oil, print a report on a Complaint Complaint of this nature shall be and other motor vehicle fluids and liquids quarterly basis considered unacceptable. from the Collection vehicle on public from its Customer streets pursuant to Section 8.02.1. service system listing the total number of Complaints coded to this category for the Agency. Attachment J Collection Services Franchise Agreement Liquidated Damages City of Burlingame Page 5 of 11 TABLE 1 Event of Non- Acceptable Performance Level Definition of Complaint, Incident, or Tracking Method Liquidated Performance Event Damage Amount Customer Service Quality 1. * Untimely No failures or Complaints in this category Each failure to resolve or remedy a Contractor shall $100 per Resolution of are acceptable; therefore, any Complaint Complaint or Inquiry within ten (10) document all incident Complaints and of this nature shall be considered Business Days of receipt of Complaint or Complaints and Inquiries unacceptable. Inquiry pursuant to Section 7.02.D, with Inquiries including the exception of missed pick-ups which the date of are addressed above or other service response related events that have Liquidated pursuant to Damages associated with them. Section 7.02.D, and, upon request, shall provide detailed reports for the Agency's review. Reporting 1. Late Submittal of Report, application or proposal shall be For each day Contractor fails to submit: (i) Contractor's $250 per day Reports, submitted on the date or in accordance reports in the timeframe specified in submittal dates for each day Application, with the timeframe specified in this Article 9, (ii)Application for determination shall be recorded report is Proposal, or Other Agreement. of Contractor's Compensation in the and compared to overdue Submittals timeframe specified in Article 11; (iii) the submittal proposal requested by Agency for change requirements of in service in the timeframe specified in the Agreement Article 9; and (iv) other submittals required by this Agreement in the timeframe s ecified in this Agreement. Collection Services Franchise Agreement Attachment J City of Burlingame Liquidated Damages Page 6 of 11 TABLE Event of Non- Acceptable Performance Levelqcorrections finition of Complaint, Incident, or Tracking Method Liquidated Performance ent Amount 2. Submittal of Report, application, proposal orr each day Contractor fails to submit The data and $250 per day Inaccurate Report, correspondence submitted does or restatements rectifying the information for each day Application, contain inaccurate, misleading or inaccurate, misleading or erroneous data contained in inaccurate or Proposal, or Other erroneous data and information. and information contained in reports, Contractor's erroneous Submittals and applications, proposals or submittal shall be information is Correspondence correspondence submitted to Agency or recorded and not corrected SBWMA commencing with the third (3`d) verified for by Contractor Business Day after receiving notification accuracy by commencing from Agency or SBWMA of Contractor Agency or with the third having submitted inaccurate, misleading SBWMA. (3`d) Business or erroneous data and information. Day after receiving notification from Agency or SBWMA of Contractor having submitted inaccurate, misleading or erroneous data and information 3. Failure to Perform Reports on billing reviews are submitted Failure to conduct Billing reviews and Contractor's $250 per day and Report Perform on time. report on the findings of the review submittal dates for each day Billing Review pursuant to Section 7.01.17. shall be recorded report is and compared to overdue the submittal requirements of the Agreement Other 1. Disposal of Contractor does not Dispose of For each Ton of Recyclable Materials or Alleged incidents $175 per on Diversion Program Recyclable Materials or Organic Materials Organic Materials Disposed of without shall be Disposed for Materials Collected. written approval of the Agency pursuant investigated by Recyclables to Section 8.02.D. Agency $100 per Ton Disposed for Or anics Attachment J Collection Services Franchise Agreement Liquidated Damages City of Burlingame Page 7 of 11 TABLE 1 Event of Non- Acceptable Performance Level Definition of Complaint, Incident, or Tracking Method Liquidated Performance Event Damage Amount 2. Use of Each Ton of material shall be delivered to For each Ton of Solid Waste, Recyclable Alleged incidents $175 per Ton Unauthorized the Designated Transfer and Processing Materials or Organic Materials that is not shall be Delivered to Facilities Site. delivered to the Designated Transfer and investigated by unauthorized Processing Facility pursuant to Section Agency facility for 6.01. Recyclables $100 per Ton Delivered to unauthorized facility for Organics and Solid Waste Collection Services Franchise Agreement Attachment J City of Burlingame Liquidated Damages Page 8 of 11 Table 2 Monthly Percentage Liquidated Member Agency Threshold (Based on Total Acceptable Performance Level Allowance Damages Number Monthly SFD Service Opportunities) 1.A, 1.8, 1.0 Atherton 2.49% 1 Belmont 7.13% 2 Burlingame 6.99% 2 Hillsborough 3.92% 1 EPA 4.54% 1 Foster City 7.08% 2 Menlo Park 8.40% 3 Redwood City 18.72% 6 Menlo Park 9.22% 3 San Mateo 21.02% 6 San Mateo County 2.86% 1 WBSD 2.28% 1 Uninc. County 5.32% 2 Total 30 2 Atherton 2.49% 1 Belmont 7.13% 4 Burlingame 6.99% 4 Hillsborough 3.92% 2 EPA 4.54% 3 Foster City 7.08% 4 Menlo Park 8.40% 5 Redwood City 18.72% 11 San Carlos 9.22% 6 San Mateo 21.02% 13 San Mateo County 2.86% 2 WBSD 2.28% 1 Uninc. County 5.32% 3 Total 60 Attachment J Collection Services Franchise Agreement City of Burlingame LiquidatPa 9 of Damages1 Table 2 Monthly Percentage Liquidated Member Agency Threshold(Based on Total Acceptable Performance Level Allowance Damages Number Monthly SFD Service Opportunities) 3 Atherton 2.49% 12 Belmont 7.13% 36 Burlingame 6.99% 35 Hillsborough 3.92% 20 EPA 4.54% 23 Foster City 7.08% 35 Menlo Park 8.40% 42 Redwood City 18.72% 94 San Carlos 9.22% 46 San Mateo 21.02% 105 San Mateo County 2.86% 14 WBSD 2.28% 11 Uninc. County 5.32% 27 Total 500 5 Atherton 2.49% 1 Belmont 7.13% 4 Burlingame 6.99% 4 Hillsborough 3.92% 2 EPA 4.54% 3 Foster City 7.08% 4 Menlo Park 8.40% 5 Redwood City 18.72% 11 San Carlos 9.22% 6 San Mateo 21.02% 13 San Mateo County 2.86% 2 WBSD 2.28% 1 Uninc. County 5.32% 3 Total 60 Collection Services Franchise Agreement Attachment J City of Burlingame Liquidated Damages Page 10 of 11 Table 2 Monthly Percentage Liquidated Member Agency Threshold(Based on Total Acceptable Performance Level Allowance Damages Number Monthly SFD Service Opportunities) Atherton 2.49% 3 Belmont 7.13% 9 Burlingame 6.99% 8 Hillsborough 3.92% 5 EPA 4.54% 5 Foster City 7.08% 9 Menlo Park 8.40% 10 Redwood City 18.72% 22 San Carlos 9.22% 11 San Mateo 21.02% 25 San Mateo County 2.86% 3 WBSD 2.28% 3 Uninc. County 5.32% 6 Total 120 Attachment J Collection Services Franchise Agreement Liquidated Damages City of Burlingame Page 11 of 11 ATTACHMENT F FAITHFUL PERFORMANCE BON® -� KNOW ALL PERSONS BY THESE PRESENTS, that RECOLOGY SAN MATEO COUNTY, hereinafter called the PRINCIPAL, and a corporation duly organized under the laws of the State of having its principal place of business at in the State of , and authorized to do business as an admitted surety insurer in the State of California, regulated by the California Insurance Commissioner and with a financial condition and record of service satisfactory to the [AGENCY], hereinafter called the SURETY, are held and firmly bound to the [AGENCY], a municipal corporation in the State of California, hereinafter called the OBLIGEE, in the sum of Dollars ($ ) lawful money of the United States, for the payment of which, well and truly to be made, we bind ourselves, our heirs, executors, administrators and successors, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH THAT: WHEREAS, the PRINCIPAL has entered into a Contract with the OBLIGEE for Recyclable Materials, Organic Materials and Solid Waste Collection Services ("Contract") and said PRINCIPAL is required under the terms of said Contract to furnish a bond of faithful performance of said Contract. NOW, THEREFORE, if the PRINCIPAL shall well and truly perform and fulfill all of the undertakings, covenants, terms and agreements of said Contract, and any modification thereto made as therein provided, at the time and in the manner therein specified, then this obligation shall become null and void, otherwise it shall be and remain in full force and virtue. ..� The SURETY, for value received, hereby agrees that no change, extension of time, alteration or addition to the terms of the Contract or to the work to be performed thereunder, or the specifications incorporated therein shall impair or affect its obligations on this bond, and it hereby waives notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the work or to the specifications. PROVIDED, however, that the SURETY shall not be liable (1) as respects to any obligations related to said Contract occurring after two (2) years from the date of this Bond, unless this Bond is extended, or (2) with respect to PRINCIPAL'S obligation to procure a replacement performance bond, as provided for in Section 13.03 of the Contract. This Bond may be extended beyond , 2011 in the sole discretion of the SURETY by means of a continuation certificate in form and substance satisfactory to OBLIGEE signed at least ninety (90) days prior to 12011. In the event suit is brought upon this Bond by the OBLIGEE and the OBLIGEE is the prevailing party, the SURETY shall pay, in addition to the sums set forth above, all costs incurred by the OBLIGEE in such suit, including reasonable attorneys' fees to be fixed by the court. Franchise Agreement for Collection Services Attachment F City of Burlingame Faithful Performance Bond Page 1 of 3 Attachment Contractorls Compensation and Rate Setting Process Collection Services Franchise Agreement Attachment K City of Burlingame Contractor's Compensation and Rate Setting Process Page 1 of 25 TABLE OF CONTENTS 1. INTRODUCTION.............................................................................................................................................................3 2. CONTRACTOR ACCOUNTABILITY FOR PROPOSAL ASSUMPTIONS..............................................................5 3. ADJUSTMENTS TO CONTRACTOR'S COMPENSATION......................................................................................5 4. APPLICATION FOR CONTRACTOR'S COMPENSATION ADJUSTMENT..........................................................15 5. SBWMA REVIEW OF APPLICATION.........................................................................................................................20 6. METHODOLOGY FOR ALLOCATING CONTRACTOR'S COMPENSATION AMONG MEMBERAGENCIES.....................................................................................................................................................21 7. PASS-THROUGH COSTS...............................................................................................................................................23 8. REVENUE RECONCILIATION OF GROSS REVENUE BILLED TO APPROVED CONTRACTOR'S COMPENSATIONFOR PRIOR YEAR.........................................................................................................................23 -� 9. PREPARATION AND REVIEW OF REPORTS...........................................................................................................24 10. PERFORMANCE INCENTIVES AND DISINCENTIVES FOR CONTRACTOR'S PERFORMANCE................25 11. RATE SETTING...............................................................................................................................................................25 Collection Services Franchise Agreement Attachment K City of Burlingame Contractor's Compensation and Rate Setting Process Page 2 of 25 ATTACHMENT k �— CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS 1. Introduction As provided in Article 11 of the Agreement, Member Agencies expect the South Bayside Waste Management Authority (SBWMA), of which they are all members, to provide substantial assistance in administering the annual review of Contractor's Compensation and the integration of that review with Agencies' adjustment of rates charged to Customers for Contractor's services. This Attachment describes Contractor's accountability regarding Contractor's Proposal assumptions (section 2); the procedures by which specific elements of Contractor's Compensation will be adjusted annually (section 3); the format and content of Contractor's annual application for adjustments in compensation (section 4); the actions to be taken by SBWMA in reviewing that application (section 5); allocating Contractor's overall compensation among Member Agencies (section 6); an explanation of Pass-Through Costs (section 7); reconciling the revenue earned by Contractor each year with the approved compensation for that year (section 8); preparing and reviewing reports to Member Agencies with recommendations for adjustments in each Agency's rates (section 9); a discussion of Performance Incentives and Disincentives (section 10); and the role of each Agency in establishing rates and the rate structure (section 11). SBWMA and Contractor may agree to modifications in the procedures and schedules in this Attachment in order to adapt them to changed circumstances or to improve their efficiency and timeliness. Such modifications shall not change the methodology for allocation of costs �-' among Member Agencies. Before implementing any such modifications, SBWMA will provide at least thirty (30) days prior written notice to Agency and all other Member Agencies. The notice will include an explanation of the reason(s) for the proposed modification(s) and the section(s) of this Attachment that would be affected by the proposed modification(s). Figure K-1 is a flow chart depicting the process for determining Contractor's Compensation and rates for Rate Year One (2011). Attachment K Collection Services Franchise Agreement City of Burlingame Contractor's Compensation and Rate Setting Process Page 3 of 25 ATTACHMENT k CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS Figure K-1 Determination of Contractor's Compensation for Rate Year One (2011) Adjustment of Proposed Costs to Determine 2011 Contractor's Compensation Reflect Changes for: -Inflation -Accounts, Lifts, Pulls July-Sept.2010 -CBA Wages and Benefits Equipment Capital Expense Allocation of 2011 Contractor's Compensation to Member Agencies. -Estimate Pass-Through Costs. -Project Revenue Requirement. Sept.2010 -Recommend rate adjustments. -1 Member Agencies Set Dec.2010 Rates for 2011 Collection Services Franchise Agreement Attachment K City of Burlingame Contractor's Compensation and Rate Setting Process Page 4 of 25 ATTACHMENT k �- CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS 2. Contractor Accountability for Proposal Assumptions The method of adjusting Contractor's Compensation holds Contractor accountable for several projections and assumptions on which its Proposal was based, and which are incorporated into the baseline costs shown on Attachment N, including: proposed technology, route productivity, Single-Family Container placement assumptions; and recycling/organics participation rates, as follows: • Proposed Technology — No additional adjustments shall be made to Contractor's Compensation if the technology proposed by Contractor does not achieve the intended results or productivity. (If a change in law or regulations requires consideration of new or alternative technology or if the parties mutually agree to consider a change in technology, cost impacts related to the change in technology will be reviewed.) Route Productivity — The assumptions regarding route productivity directly impact costs related to labor, route hours, vehicles, fuel use, and vehicle maintenance. No adjustments to Contractor's Compensation will be made for differences between route productivity levels assumed in Contractor's Proposal and actual route productivity. Container Placement (Curbside or Backyard) Rates—Contractor's Proposal was based on its best estimate of the number of Single-Family Dwelling Customers who will place their Containers Curbside for Collection or choose to pay additional fees for backyard Collection. No adjustments to Contractor's Compensation will be made for differences between estimated and actual levels, unless the Agency's adjustment of rates results in a i... migration between Curbside and Backyard Service resulting in a change of two percent (2%) in Contractor costs per Section 11.07.C. Weekly Recycling Participation Levels — Contractor's estimate of the number of Single- Family Dwelling Customers that will be provided weekly Targeted Recyclable Materials and Organic Materials Collection Service is incorporated into the baseline costs shown on Attachment N. No adjustments to Contractor's Compensation will be made for differences between estimated and actual participation levels. 3. Adjustments to Contractor's Compensation The annual process for adjusting Contractor's Compensation is summarized in Table 1. Column One of the table illustrates the adjustment of 2008 costs shown on Attachment N in 2010 to establish Rate Year One (2011) Contractor's Compensation; Column Two describes annual adjustments to determine Contractor's Compensation for Rate Year Two (2012) and each year thereafter. With regard to changes in service levels (i.e., accounts, lifts, and pulls), adjustments to Contractor's costs in 2010 to establish Contractor's Compensation for Rate Year One (2011) and in 2012 to establish Contractor's Compensation for Rate Year Three (2013) will be made as described in Table 1 and 2. Contractor's Compensation will be adjusted by the change in service levels for Rate Year One and Rate Year Three only. No adjustments to reflect changes in service levels shall be made after the adjustments made in 2012 when calculating Contractor's Compensation for Rate Year Three (2013). �... Attachment K Collection Services franchise Agreement City of Burlingame Contractor's Compensation and Rate Setting Process Page 5 of 25 ATTACHMENT k CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS ProposedTable I Adjustment to Cost Rate Year One Contractor's Compensation ANNUAL COST OF OPERATIONS A. Two adjustments will be made: Annually adjust labor costs based on the collective bargaining Wages and benefits Revise 2008 wage rates and agreements between the Previous for all employees benefits shown on Attachment N Contractor and unions in effect on represented through to reflect wage rates and benefit the Commencement Date, until collective bargaining levels to be in effect in 2011 they expire. agreements (CBA). based on the collective bargaining agreements between the Previous After expiration of the above Contractor and unions in effect in collective bargaining agreements, 2010. The number of full-time annually adjust wage and benefit equivalent employees and hours costs for the one (1) year change in each labor category shown in in the U.S. Department of Labor, Attachment N Cost Form 2 will be Bureau of Labor Statistics, Private used in making the adjustment. Industry Employment Cost Index for Service-Producing Industries • Revise to reflect service level (seasonally adjusted, total changes in 2010 from the 2008 compensation, --� proposal assumptions by cis201 s000000000i successor to increasing or decreasing wage series no. ecs12102i). Average and benefits costs by the index change between index for percentage change in accounts, May of prior year to April of lifts, or pulls as described in Table current year (i.e., twelve (12) 2. months average change)'. • For Rate Year Three (2013) only, adjust wages and benefits to reflect service level changes by increasing or decreasing wage and benefit costs by the percentage change in accounts, lifts, and pulls as described in Table 2. No further adjustment for changes in service levels will be made after Rate Year Three (2013). The term "average index change" in this Attachment K means the percentage change between the simple average of all twelve (12) (or fewer) monthly index levels for one (1) year and the same average for a followingyear. Collection Services Franchise Agreement Attachment K City of Burlingame Contractor's Compensation and Rate Setting Process Page 6 of 25 ATTACHMENT k �--- CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS Table Adjustment . Proposed Costs for Annual Adjustment to Contractor's Cost Rate Year One . Compensation for Rate Years Compensation Two—Ten (2012-2020) B. Step One: Adjust to reflect the one (1) year Initially adjust Attachment N 2008 average index change in the U.S. Wages and benefits costs using the U.S. Department of Department of Labor, Bureau of for employees not Labor, Bureau of Labor Statistics, Labor Statistics, Private Industry represented through Private Industry Employment Cost Employment Cost Index for collective bargaining Index for Service-Producing Service-Producing Industries agreements. Industries (seasonally adjusted, (seasonally adjusted, total total compensation, compensation, cis201s000000000i cis201 s000000000i successor to successor to series no. series no. ecs12102i). Average ecs12102i). Average index change index change between index for between index for May of prior May 2008 and April 2010 (i.e., year to April of current year (i.e., twenty four (24) months). twelve (12) months). • Step Two: For Rate Year Three (2013) only, In order to reflect 2011 base costs, revise to reflect service level adjust the costs resulting from the changes by increasing or adjustment in Step One using the decreasing wage and benefit costs U.S. Department of Labor, Bureau by sixty-five percent (65%) of the `- of Labor Statistics, Private Industry percentage change in accounts, Employment Cost Index for lifts or pulls as described in Table Service-Producing Industries 2• (seasonally adjusted, total compensation, cis201 s000000000i successor to series no. ecs12102i). Average index change between index for May 2009 to April 2010 (i.e., twelve (12) months). • Revise to reflect service level changes by increasing or decreasing wage and benefit costs by sixty five percent (65%) of the percentage change in accounts, lifts or pulls as described in Table 2. Collection Services Franchise Agreement Attachment K Contractor's Compensation and Rate Setting Process City of Burlingame Page 7 of 25 ATTACHMENT k CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS ProposedTable I Adjustment to Adjustment Cost Rate Year One i Compensation Two s C. Payroll tax expense will be Same method as prior year. calculated based on the following Payroll taxes effective tax rates in Contractor's Proposal: ■ 8.32% for Direct Labor; and, ■ 8.15% for Indirect Labor. • The effective tax rate will be applied to the adjusted wages for direct or indirect labor to calculate payroll tax expense. When the Federal and/or State employer payroll tax rates or limits are changed, Contractor will submit to SBWMA a new effective payroll tax rate for review and approval. If approved, the new rates will be used to calculate payroll tax expense for the Rate Year affected ..� by the change(s). D. Step One: Adjust to reflect one (1) year Initially adjust Attachment N 2008 average index change in the U.S. Workers costs using the U.S. Department of Department of Labor, Bureau of compensation, direct Labor, Bureau of Labor Statistics, Labor Statistics, Private Industry and indirect Private Industry Employment Cost Employment Cost Index for Total Index for Total All Workers (not All Workers (not seasonally seasonally adjusted, total benefits, adjusted, total benefits, series no. series no. CIU2030000000000A). CIU2030000000000A). Average Average index change between index change between index for Index for May 2008 and April 2010 May of prior year to April of (i.e., twenty four(24) months). current year(i.e., twelve (12) months). • Step Two: In order to reflect 2011 base costs, For Rate Year Three (2013) only, adjust costs using the U.S. service level change adjustment Department of Labor, Bureau of to workers compensation costs for Labor Statistics, Private Industry direct labor based on one-hundred Employment Cost Index for Total percent (100%) of the service All Workers (not seasonally level changes and for worker adjusted, total benefits, series no. compensation costs for indirect CIU2030000000000A). Average labor based on sixty-five percent index change between index for (65%) of service level changes as May 2009 and April 2010 (i.e., described in Table 2. twelve (12) months). Collection Services Franchise Agreement Attachment K City of Burlingame Contractor's Compensation and Rate Setting Process Page 8 of 25 ATTACHMENT k CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS Table I Adjustment to Proposed Costs • Annual Adjustment to Contractor's Cost Rate Year One (2011) Contractor's Compensation for Rate Years CompensationTwo Service level change adjustment for workers compensation costs for direct labor based on one- hundred percent(100%) of the 7 service level changes and to workers compensations costs for indirect labor based on sixty-five percent (65%) of service level changes as described in Table 2. �..� Attachment K Collection Services Franchise Agreement Contractor's Compensation and Rate Setting Process City of Burlingame Page 9 of 25 ATTACHMENT k CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS ProposedTable I Adjustment to Cost Rate Year One(2011) Contractor's Compensation for Rate Years Compensation E. Step One: Inflation adjustment to reflect one- Initially adjust 2008 fuel costs on year change in the U.S. Fuel for route and Attachment N using the U.S. Department of Labor, Bureau of service vehicles, Department of Labor, Bureau of Labor Statistics, Producer Price direct and indirect Labor Statistics, Producer Price Index - Commodity Index for#2 Index- Commodity Index for#2 diesel fuel (not seasonally diesel fuel (not seasonally adjusted, fuels and related adjusted, fuels and related products and power, series no. products and power, series no. wpu057303). Average index wpu057303). Average index change between index for May of change between index for May prior year and April of current year 2008 and April 2010 (i.e., twenty (i.e., twelve (12) months). four(24) months). • For Rate Year Three (2013) only, • Step Two: adjustment will be made for direct In order to reflect 2011 base costs, fuel costs based on one-hundred adjust the costs resulting from the percent (100%) of the service adjustment in Step One using the level changes and for indirect fuel U.S. Department of Labor, Bureau costs based on sixty-five percent -� of Labor Statistics, Producer Price (65%) of service level changes as Index- Commodity Index for#2 described in Table 2. diesel fuel (not seasonally adjusted, fuels and related products and power, series no. wpu057303Five (5) year average index change between index for May 2005 and April 2010. • Service level change adjustment for direct fuel costs based on one- hundred percent (100%) of the service level changes and for indirect fuel costs based on sixty- five percent (65%) of the service level changes as described in Table 2. Collection Services Franchise Agreement Attachment K City of Burlingame Contractor's Compensation and Rate Setting Process Page 10 of 25 ATTACHMENT k �- CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS Table I Adjustment to Proposed Costs for Annual Adjustment to Contractor's st Rate Year • 1 • • Compensation • r Rate Years • 1 1 1 compensation • F. Step One: Adjust to reflect 80% of the one Initially adjust Attachment N 2008 (1)year average index change in Other costs, direct costs using 80% of the change in the U.S. Department of Labor, and indirect, the U.S. Department of Labor, Bureau of Labor Statistics, excluding Bureau of Labor Statistics, Consumer Price Index—All Urban depreciation and Consumer Price Index—All Urban Consumers, U.S. city average (not wages and benefits Consumers, U.S. city average (not seasonally adjusted, all items, seasonally adjusted, all items, base period: 1982-84=100, series base period: 1982-84=100, series no. cuur0000sa0). Average index no. cuur0000sa0). Average index change between index for May of change between index for May prior year and April of current year 2008 and April 2010 (i.e., twenty (i.e., twelve (12) months). four(24) months). • For Rate Year Three (2013) only, • Step Two: service level change adjustment In order to reflect 2011 base costs, for direct other costs based on adjust the costs resulting from the one-hundred percent (100%) of adjustment in Step One using 80% the service level changes and for of the change in the U.S. indirect other costs based on `— Department of Labor, Bureau of sixty-five percent (65%) of service Labor Statistics, Consumer Price level changes as described in Index—All Urban Consumers, U.S. Table 2. city average (not seasonally adjusted, all items, base period: 1982-84=100, series no. cuur0000sa0). Average index change between index for May 2009 and April 2010 (i.e., twelve (12) months). • Service level change adjustment will be made for direct other costs based on one-hundred percent (100%) of the service level changes and for indirect other costs based on sixty-five percent (65%) of service level changes as described in Table 2. Services Franchise Agreement Attachment K Collection City of Burlingame Contractor's Compensation and Rate Setting Process Page 11 of 25 ATTACHMENT k CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS ProposedAdjustment to Cost Rate Year One(2011) Contractor's Compensation for Rate Years Compensation G. The adjustment process outlined The adjustment process outlined below for depreciation will be below for depreciation will be Depreciation for applied separately to each of the applied separately to each of the Collection vehicles four (4) categories of capital four(4) categories of capital and Containers equipment: Collection Vehicles, equipment: Collection Vehicles, Other Vehicles, Containers, and Other Vehicles, Containers, and Other Equipment. Other Equipment. • Price adjustment of 2008 No indexed cost adjustments shall equipment costs shown in be made to depreciation over the Attachment N up to CPI remaining Term. In Rate Year adjustment to actual month Two (2012)when determining ordered. CPI Index: the U.S. Contractor's Compensation for Department of Labor, Bureau of Rate Year Three (2013), if Labor Statistics, Producer Price changes in service levels (see Index Industry Data for motor Table 2) warrant the purchase of vehicle body manufacturing, truck, additional capital equipment, bus, car, and other vehicle bodies, depreciation on additional capital for sale separately (not seasonally equipment whose purchase has adjusted, base date: 8212, series been authorized by SBWMA will no. pcu336211336211). Average be added to the adjusted index change between index for depreciation expense. March 2008 and that for actual month ordered. Depreciation expense shall be based on Contractor's • Price Adjustment: Actual cost of depreciation schedule in purchase will be used if purchase Attachment N Cost Form 11 for price is less than CPI-adjusted the appropriate year, as adjusted price. for any allowed and approved change to capital purchases. • Change in sales or other tax will be separately adjusted to reflect Added new capital equipment will the actual tax rate at time of be depreciated over ten (10) years purchase. from date placed in service. Agency has no responsibility to • Price Adjustment: If the total price pay Contractor for remaining net of a capital equipment category book value of any Containers not increases more than the inflation fully depreciated at end of Term, adjustment, then Contractor may unless Agency elects to purchase request additional adjustment to Containers pursuant to subsection depreciation in 2010; in such 8.05.F. case, Contractor must demonstrate that prices paid If purchase of used equipment is reflected market rates for authorized by Agency and equipment. SBWMA, depreciation expense --� Collection Services Franchise Agreement Attachment K City of Burlingame Contractor's Compensation and Rate Setting Process Page 12 of 25 ATTACHMENT k CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS Contractor'sTable I Adjustment to Proposed Costs for Annual Adjustment to Cost Rate Year One(2011) Contractor's Compensation for Rate Years compensation • will be revised to reflect actual • Quantity Adjustment: Revise costs of used equipment. number of pieces of equipment specified in Attachment N Cost Form 4 to reflect Agency changes Depreciation on used capital in accounts, lifts, and pulls (see equipment will be calculated on a Table 2). Any purchase of straight line method, using a ten additional equipment must be (10) year service life. If used authorized by SBWMA. capital equipment is taken out of Depreciation on such additional service before the expiration of capital equipment will be added to the Term, the remaining the adjusted base depreciation. undepreciated net book value less Depreciation of new equipment market value shall be treated as will be based on a ten (10) year an expense in the following year life from date placed in service. in which the equipment is removed from service. If purchase of used equipment is authorized by Agency and SBWMA, depreciation expense will be revised to reflect actual costs of used equipment. Depreciation expense shall be based on Contractor's depreciation schedule in Attachment N Cost Form 11 for the appropriate year, as adjusted for any authorized change to capital equipment purchases. Depreciation on used capital equipment will be calculated on a straight line method, using a ten (10) year service life. If used capital equipment is taken out of service before the expiration of the Term, the remaining undepreciated net book value less market value shall be treated as an expense in the following year in which the equipment is removed from service. L Attachment K Collection Services Franchise Agreement Contractor's Compensation and Rate Setting Process City of Burlingame Page 13 of 25 ATTACHMENT k CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS ProposedTable I Adjustment to Adjustment Cost Rate Year One(2011) Contractor's Compensation for Rate Years Compensation H. Step One: • No additional adjustments. Initially adjust 2008 costs in Allocated Indirect Attachment N using one-hundred • If purchase of additional Depreciation Costs percent (100%) of the change in equipment is authorized by (related to vehicle the U.S. Department of Labor, SBWMA, depreciation expense will and container Bureau of Labor Statistics, be revised to reflect the actual cost maintenance Producer Price Index Industry Data of the additional equipment. equipment, shop for motor vehicle body equipment, office manufacturing, truck, bus, car, and If purchase of used equipment equipment, etc.) other vehicle bodies, for sale is authorized by Agency and separately (not seasonally SBWMA, depreciation adjusted, base date: 8212, series expense in the following year no. pcu336211336211). Average will be revised to reflect the index change between Index for actual cost of the used March 2008 and April 2010 (i.e., equipment. twenty six (26) months). • Step Two: In order to reflect 2011 base costs, ..� adjust the costs resulting from the adjustment in Step One using the U.S. Department of Labor, Bureau of Labor Statistics, Producer Price Index Industry Data for motor vehicle body manufacturing, truck, bus, car, and other vehicle bodies, for sale separately (not seasonally adjusted, base date: 8212, series no. pcu336211336211. Average index change between for May 2009 to April 2010 (i.e., twelve (12) months). • If purchase of used equipment is authorized by Agency and SBWMA, depreciation expense in the following year will be revised to reflect the actual cost of the used equipment. Collection Services Franchise Agreement Attachment K City of Burlingame Contractor's Compensation and Rate Setting Process Page 14 of 25 ATTACHMENT k �-- CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS ProposedTable 1 Adjustment to Compensation for Rate YearsRate Year • (2011) Contractor's ' i Compensation � l Same Inflation Index and method No additional adjustment. as that described for Other Costs Implementation (Cost F). Costs • No adjustment based on changes in service levels will be made. Total Annual Cost Calculated as the sum of the cost Same method as prior year. of Operations components adjusted as described above. PROFIT • Profit calculated using the Same method as prior year operating ratio and the adjusted total annual cost of operations. The operating ratio is fixed for the length of the Agreement at ninety and one-half percent (90.5%). Collection Services Franchise Agreement Attachment K Contractor's Compensation and Rate Setting Process City of Burlingame Page 15 of 25 ATTACHMENT k CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS Contractor'sTable I Adjustment to Proposed Costs for Annual Adjustment to Contractoes Cost Rate Year One(2011) . for Rate Years Compensation PASS-THROUGH COSTS A. Interest rate on loans used to • No interest rate adjustment. acquire capital equipment will be Interest expense (on 5.5% as specified in Contractor's • Compensation for interest expense capital and Proposal. will be based on the revised and implementation SBWMA approved Debt Service costs) Compensation for interest expense Schedule in Attachment N for Rate will be specified on the Debt Year One (2011). Service Schedule in Attachment N Cost Form 11. The Debt Service Schedule may be revised again for any given • Interest expense in Attachment N Rate Year for allowed and will be revised for any approved approved changes to the capital changes in the amount of capital equipment schedule. equipment purchased. • Interest expense will be based on ten (10) year financing terms on any approved additional capital. B. Any non-operating fees (but not Actual amount paid in prior year fines) paid by Contractor (e.g., to for Regulatory Agency Fees will be Regulatory Agency U.S. Department of Transportation, adjusted by one hundred percent Fees Bay Area Air Quality Management (100%) of CPI Index used to adjust f District, Local Enforcement Cost F - "Other costs." Agency, Bay Area Water Quality Control Board, California Highway Patrol). Total Contractor Calculated as the sum of the Same method as prior year. Pass-Through Contractor Pass-Through Costs. Costs TOTAL Calculated as the sum of total Same method as prior year. CONTRACTOR'S Annual Cost of Operations, Profit, COMPENSATION and Contractor's Pass-Through Costs. Collection Services Franchise Agreement Attachment K City of Burlingame Contractor's Compensation and Rate Setting Process Page 16 of 25 ATTACHMENT k �— CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS Rate Year One (2011) Rate Year Three(2013) Adjustment Metric Adjustment and Source of Data Adjustment and Source of D. ta Accounts Adjustment shall be based on the Aercenrta e Chaent n be based se oontsthe percentage change in accounts p 9 g (Single-Family from March 2008' (Source: from June 2010 (Source: current Dwelling accounts SBWMA RFP for Collection service provider data) to June for Solid Waste Services)to June 2010 (Source: 2012 (Source: Contractor). Collection) current service provider). Lifts Adjustment shall be based on the Adjustment shall be based on the percentage change in lifts from percentage change in lifts from (Multi-Family March 2008' (Source: SBWMA June 2010 (Source: current Dwelling, RFP for Collection Services) to service provider data) to June Commercial and June 2010 (Source: current service 2012 (Source: Contractor). Agency Facility Bin provider). and Cart lifts for Solid Waste, Recyclable and Organic Materials Collection) Pulls Adjustment shall be based on the Adjustment shall be based on the percentage change in pulls from percentage change in pulls from (Multi-Family March 2008' (Source: SBWMA June 2010 (Source: current Dwelling, RFP for Collection Services) to service provider) to June 2012 Commercial and June 2010 (Source: current service (Source: Contractor). Agency Facility Drop provider). Box and Compactor pulls for Solid Waste, Recyclable and Organic Materials Collection) Contractor's proposal was submitted in March 2008. Collection Services Franchise Agreement Attachment K Contractor's Compensation and Rate Setting Process City of Burlingame Page 17 of 25 ATTACHMENT k CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS 4. Application for Contractor's Compensation Adjustment 4.1 Preparation of Application for Contractor's Compensation Adjustment Contractor is required to submit an Application for Contractor's Compensation Adjustment (Application) annually by July 1 for determination of Contractor's Compensation for the following Rate Year. This Section describes the content of the Application. A. Reporting of Operational Information Operational information shall be reported in total as well as disaggregated by each Line of Business, by Service Sector and by Member Agency. The information shall be submitted on forms provided by Contractor and approved by SBWMA. This data is required to allocate Contractor's Compensation to each Member Agency. Operational information to be provided includes, but is not limited to: • Tonnage collected by Line of Business; • Number of accounts by Line of Business and account type (i.e., Container size, Collection frequency, and material type); • Number of pulls for Roll-Off service; • Number of lifts for Bin service; • Number of Containers in service by Line of Business; • Set-out rates by Line of Business; • Number of routes and annual route hours by Line of Business; • Number and type of vehicles by Line of Business; • Annual route labor hours by Line of Business; and • Roster of all personnel by category including direct, indirect, and general and administrative (G&A). B. Audited Financial Statements Financial statements (balance sheet, income and expense statement) for the operations covered by this Agreement for Contractor's immediately preceding fiscal year (October 1 — September 30) shall be submitted with the Application. The financial statements shall be accompanied by a report of an independent Certified Public Accountant licensed by the California Board of Public Accountancy stating that (i) it has audited the financial statements in accordance with auditing standards generally accepted in the United States, and (ii) in its opinion the financial statements present fairly, in all material respects, the financial position of Contractor as of September 30 of the year under review and of the immediately preceding year, and the changes in its financial position for the years then ended in conformity with United States generally accepted accounting principles. The Certified Public Accountant's report shall also contain a separate statement identifying the amounts of audited revenue and expense that are attributable to the last nine months of the Contractor's fiscal year (January - September 30). In addition, Contractor shall submit financial statements covering the last three months of the preceding calendar year (October 1 - December 30) and a compiled twelve (12) month statement covering the preceding calendar year. These Collection Services Franchise Agreement Attachment K City of Burlingame Contractor's Compensation and Rate Setting Process Page 18 of 25 ATTACHMENT k CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS statements shall be accompanied by a report of the independent Certified Public Accountant stating that it has conducted a review of the statements in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants and that contains the elements described in AICPA Professional Standards, section AR 100. C. Preparation of Management Representation Letter The Application shall include a management representation letter signed by the President of Contractor, which states that: • Management accepts responsibility for the accuracy and completeness of the Application; • The Application is based on the Contractor's Compensation adjustment procedures described in Article 11, this Attachment K - including Tables 1 and 2, and on the forms approved by the SBWMA; and, All significant information and supporting documents relevant to the Contractor's Compensation adjustment process are available for review by SBWMA. D. Calculation of Contractor's Compensation and Projection of Gross Revenue Billed for the Next Rate Year The Application shall include a calculation of the next year's Contractor's Compensation (i) in total, (ii) by Agency including overage(s) or shortfall(s) from the prior year identified in the Revenue Reconciliation process described in Section �.. 11.03 of the Agreement and Section 8 of this Attachment, (iii) by Service Sector, and (iv) by Line of Business. Contractor shall also project the following year's Gross Revenue Billed (i) in total, (ii) by Agency, (iii) by Service Sector, and (iv) by Line of Business based on rates currently in effect. Contractor shall provide an explanation of, and supporting documentation for, the Gross Revenue Billed projection. E. _Supporting Documentation Contractor shall make available to SBWMA and Agency, upon request, supporting documentation and summary reports for all calculations, assumptions, and data used in the calculation of the Contractor's Compensation for the following Rate Year and in the annual revenue reconciliation of Gross Revenue Billed to approved Contractor Compensation. Supporting documents and reports requested may include: • General Ledger • Revenue and Accounts Receivable Ledgers • Collective Bargaining Agreements • Solid Waste Transfer Tickets • Weight tickets for all C&D Materials, Recyclable Materials, Inert Materials, and Organic Materials Customer billing information and service levels Copies of Bureau of Labor Statistics Index Data Other information requested by SBWMA Attachment K Collection Services Franchise Agreement Contractor's Compensation and Rate Setting Process City of Burlingame Page 19 of 25 ATTACHMENT k CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS 5. SBWMA Review of Application Agency delegates to SBWMA the authority to conduct the review of the Application. SBWMA will review the Application and supporting documentation to determine that it has been prepared in a manner consistent with the Agreement, including this Attachment. SBWMA may request and Contractor shall provide any missing information necessary to complete the Application. Agency may participate in meetings with SBWMA and Contractor to discuss the Application. A. Preliminary Review SBWMA shall determine if the Application is complete and ready for analysis. 1. Completeness and Mathematical Accuracy of Application. SBWMA shall determine if: a. All required forms and financial statements are included; b. All forms are completed correctly and data and indexes tie to correct source; and c. All calculations are mathematically correct. If the Application is incomplete or contains arithmetic errors, SBWMA will notify Contractor and Contractor will promptly provide missing information and corrected calculations. 2. Verification of Operating Statistics. SBWMA may perform an on-site review of Contractor's operations to determine if the then-current operating statistics remain appropriate to allocate costs among Member Agencies for the coming Rate Year. 3. Verification of Supporting Documents and Schedules. Various documents are to be included in the Application to support the requested adjustment in Contractor's Compensation. Any supporting information SBWMA finds to have been omitted shall be promptly be provided by Contractor. 4. Contractor Notification. SBWMA will notify Contractor when it has determined that the Application is complete. B. Review of Application The Contractor's Compensation review process is intended to allow SBWMA to determine whether the Application is consistent with the Agreement and accurately calculates Contractor's Compensation for the coming Rate Year. SBWMA shall take the following steps during its review of the Application. 1. Review of Contractor's Compensation Calculations. SBWMA shall review Contractor's Compensation adjustment calculations to verify that the calculations are performed in accordance with Article 11 and relevant attachments including this Attachment. SBWMA shall notify Contractor of any apparent errors or discrepancies in the calculation of Contractor's Compensation which it identifies. 2. Review of Revenue Prosection for Following Year. SBWMA shall review Contractor's projection of Gross Revenue .Billed. Any unusual trends will be identified and explanations obtained from the Contractor. 3. Determine Prior Year Revenue Surplus/Shortfall. SBWMA will review the Contractor's Revenue Reconciliation calculations submitted in March in light of audited financial statements. Collection Services Franchise Agreement Attachment K City of Burlingame Contractor's Compensation and Rate Setting Process Page 20 of 25 ATTACHMENT k CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS 6. Methodology for Allocating Contractor's Compensation Among Member Agencies A. Overview After having calculated Contractor's Compensation in total, Contractor will allocate it among the Member Agencies using the methodology described in subsection 6.13 and illustrated in Attachment N. A cost allocation process will be used to attribute the Contractor's costs to the individual Member Agencies it services. The allocation process will rely on operating statistics compiled by Contractor including those from the annual route audit described in Section 7.12, including route labor hours per year, route hours per year, number of accounts, service stops, Bin and Cart lifts, Drop Box pulls, tonnage, and number of Containers, reported separately for each Member Agency. Route labor hours and route hours shall include hours related to on and off route time, collection time, and hauling time to deliver materials to the Designated Transfer and Processing Facility. Contractor shall compile these operating statistics based on the annual route audit or best available information. B. Contractor's Compensation Allocation Methodology The following methodology will be used in allocating Contractor's Compensation to each Member Agency when Contractor's Compensation for Rate Year One (2011) and each subsequent Rate Year is determined. �... If particular costs can be assigned to a specific Member Agency, such costs shall be attributed to that Member Agency. Otherwise, expenses shall be assigned to each Member Agency as follows: Rate Year One (2011) For Rate Year One, Contractor's Compensation, adjusted in 2010 as described above, will be allocated using the 2011 operating statistics contained in Attachment N. 1. COSTS OF OPERATION a. Wages for Direct Labor (drivers and mechanics). Direct Labor Wages shall be allocated to each Member Agency based on its proportional share of Rate Year One (2011) annual route labor hours. b. Benefits for Direct Labor. Benefit costs shall be allocated to each Member Agency based on its proportional share of Rate Year One (2011) annual route labor hours. c. Payroll Taxes. Costs shall be allocated to each Member Agency based on its proportional share of Rate Year One (2011) annual route labor hours. d. Workers Compensation Expense. Costs shall be allocated to each Member Agency based on its proportional share of Rate Year One (2011) annual route labor hours. e. Direct Fuel Costs. Costs shall be allocated to each Member Agency based on its proportional share of Rate Year One (2011) annual route hours. f. Other Direct Costs. Costs shall be allocated to each Member Agency based on its proportional share of Rate Year One (2011) annual route hours. g. Depreciation for Collection Equipment: Attachment K Collection Services Franchise Agreement City of Burlingame Contractor's Compensation and Rate Setting Process Page 21 of 25 ATTACHMENT k CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS i. Route Vehicles - Costs shall be allocated to each Member Agency based on its proportional share of the Rate Year One (2011) annual route hours. ii. Collection Containers - Costs shall be allocated to each Member Agency based on its proportional share of the number of Containers in service in 2011. iii. Other - Costs shall be allocated to each Member Agency based on its proportional share of Rate Year One (2011) annual route hours. h. Allocated Indirect Costs Excluding Depreciation and Interest: i. General and Administration — Indirect General and Administration Costs (excluding depreciation and interest) shall be allocated to each Member Agency based on its proportional share of Rate Year One (2011) customer accounts serviced. ii. Vehicle Maintenance - Indirect Vehicle Maintenance Costs (excluding depreciation and interest) shall be allocated to each Member Agency based on its proportional share of Rate Year One (2011) annual route hours. iii. Container Maintenance - Container Maintenance Costs (excluding depreciation and interest) shall be allocated to each Member Agency based on its proportional share of Rate Year One (2011) Containers in service. iv. Operations — Indirect Operations Costs (excluding depreciation and interest) shall be allocated to each Member Agency based on its proportional share of Rate Year One (2011) annual route hours. i. Implementation - Implementation Costs (excluding depreciation and interest) shall be —� allocated to each Member Agency based on its proportional share of Rate Year One (2011) annual route hours. j. Allocated Indirect Depreciation. The Allocated Indirect Depreciation Expenses shall be allocated in the manner described in subsection h.iv above. k. Total Annual Cost of Operations. The Rate Year One (2011) Total Annual Cost of Operations for each Member Agency shall equal the sum of the projected costs listed above in subsections a through j. 2. PROFIT Profit shall be calculated for each Member Agency using a ninety and one-half percent (90.5%) Operating Ratio and the Total Annual Cost of Operations for each Member Agency per subsection k above. [The calculation is: (k 0.905)—k= profit]. 3. CONTRACTOR'S PASS-THROUGH COSTS a. Regulatory Agency Fees. Regulatory Agency Fees shall be allocated based on Rate Year One (2011) annual route hours. Agency fees required by Article 10 of the Agreement shall not be included in this calculation, as they will be calculated later in the process. b. Direct Interest Expense. The Direct Interest Expense shall be allocated based on the ratio of each Agency's depreciation expense to the total depreciation expense. c. Implementation Cost Interest Expense. The Implementation Interest Expenses shall be allocated in the manner described in subsection 1.i. Collection Services Franchise Agreement Attachment K City of Burlingame Contractor's compensation and Rate Setting Process Page 22 of 25 ATTACHMENT k �- CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS d. Other Agency Costs shall be directly allocated to the specific Member Agency that applies to the individual expense in this category. e. Total Contractor Pass-Through Costs. The Rate Year One (2011) Total Pass- Through Costs for each Agency shall equal the sum of the Agency's allocated Regulatory Agency Fees, Interest Expense, Implementation Interest Expense, and other Agency costs, if any. 4. RATE YEAR ONE (2011) CONTRACTOR'S COMPENSATION The Rate Year One (2011) Contractor's Compensation for each Agency shall equal the sum of the Agency's Rate Year One (2011) Total Annual Cost of Operations, plus Rate Year One (2011) Profit, plus Rate Year One (2011) Total Contractor Pass- Through Costs. Subsequent Rate Years (2012-2020) The allocation methodology set forth above shall be used by the SBWMA in subsequent years, utilizing operating statistics compiled by Contractor in May of each Rate Year. 7. Pass-Through Costs Pass-Through Costs are costs which are included in Gross Revenue Billed but not retained by Contractor and on which no profit is paid to Contractor. Pass-Through Costs include Member Agency Franchise and other Fees which are paid to each Member Agency and charges billed by SBWMA for processing and Disposal of Materials delivered by Contractor to the Designated Transfer and Processing Facility. Franchise and other Fees paid to each Member Agency will be identified by jurisdiction in the Application and do not need to be allocated. SBWMA will estimate the amount of these fees for the Rate Year covered by the Application based on each Member Agency's fee structure and the amount of recommended Contractor's Compensation. Payments to SBWMA for its charges shall be allocated by SBWMA based on Tonnage projected to be delivered to the Designated Transfer and Processing Facility during the Rate Year. 8. Revenue Reconciliation of Gross Revenue Billed to Approved Contractor's Compensation for Prior Year Annually, Contractor's Gross Revenues Billed for the prior Rate Year will be reconciled to the Contractor's Compensation approved for the prior Rate Year. The difference will be added to or subtracted from Contractors' Compensation for the following rate year. The Revenue Reconciliation shall be reported annually by March 31 of each year (in a format to be approved by SBWMA) commencing with the Application submitted in 2012 for Rate Year Three (2013) and shall include the following: a. Statement of Gross Revenue Billed for the most-recently completed Rate Year for each Member Agency, by Line of Business. b. Statement of Pass-Through Costs by Agency, by Line of Business. Collection Services Franchise Agreement Attachment K City of Burlingame Contractor's Compensation and Rate Setting Process Page 23 of 25 ATTACHMENT k CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS '1 c. Statement of Revenues Billed attributable to unscheduled/intermittent service, by Agency. Subtracting the sum of items b and c from a, yields Net Revenue Billed. [The calculation is: a- (b + c) = Net Revenue Billed.] Net Revenue Billed is compared to the approved Contractor's Compensation and the surplus, or shortfall, is determined. The amounts described in items a, b and c for the prior Rate Year must be included in the audited financial statement due by August 1. Any variance between the March 31 data and the final audited data must be explained and the Revenue Reconciliation report revised accordingly. The audited data will be considered in calculating the adjustment to Contractor's Compensation for the following Rate Year. Payment(s) made by Contractor to SBWMA under section 6.02 for transportation and Disposal and supplemental processing fees shall not be subtracted from Gross Revenue Billed. The revenue reconciliation process will not be carried out during the last year of the Term. 9. Preparation and Review of Reports SBWMA staff will prepare a report on its review of the Application. The report will contain SBWMA staff findings on each of the following components of the Application. • Contractor's Annual Costs of Operation (Changes in service levels for Rate Years One and Three only) • Contractor's Pass-Through Costs • Calculated Profit • Revenue surplus or shortfall for the prior Rate Year, based on Revenue Reconciliation • Pass-Through Costs, including Contractor payments to SBWMA for Processing and Disposal and to Agency for Franchise Fees • Total Revenue Requirement for Contractor for the Rate Year • Allocation of Revenue Requirement (and components) to each Member Agency • Recommended overall percentage change in each Agency's rates • Discussion of issues for consideration by Member Agencies, including unresolved disagreements, if any, that Contractor has with the report's findings and recommendations. On or before September 1 of each year, SBWMA staff will provide a draft of its report to Contractor and to each Member Agency for review and shall consider all comments received within ten (10) days after the draft report is released. Agency will be responsible to include in its comments any special or intermittent Agency specific costs that should be included in Contractor's Revenue Requirement for the next year. SBWMA staff will submit the final report to the SBWMA Board of Directors for consideration at a regular or special meeting held before September 30. Upon approval by the SBWMA Board, the report will be distributed to each Member Agency, on or before October 1. ection Services Franchise Agreement Attachment K Coll City of Burlingame Contractor's Compensation and Rate Setting Process Page 24 of 25 ATTACHMENT k CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS 10. Performance Incentives and Disincentives for Contractor's Performance Contractor performance will be monitored against established and quantifiable standards in. the areas of Diversion, Collection Performance, and Customer Service. Incentives have been designed to reward Contractor for outstanding levels of performance with regard to Diversion, Number of Missed Pick-Up Initial Complaints, and Average Hold Time for customer service calls. Disincentives (in the form of reduced compensation to Contractor) may be assessed for substandard performance related to: diversion level attained (i.e., Single-Family and Commercial sectors), Contamination Level (i.e., Targeted Recyclable Materials, Residential and Commercial Organic Materials, and Commercial Plant Materials), Missed Pick-Up Initial Complaints, Missed Pick-Up Collection Events, Average Hold Time, and Calls Answered in Ninety (90) Seconds. The Performance Incentives and Disincentives are detailed in Attachment I. Payment related to Performance Incentives and Disincentives shall be included in Contractor's Application, with the exception of Disincentive assessments pertaining to Contamination which are calculated and paid to SBWMA quarterly. Contractor's Compensation for the next Rate Year will be increased or decreased by the net amount of Performance Incentive payments and Disincentive assessments calculated. 11. Rate Setting .__ Member Agencies shall review their collection rates annually (or as frequently as they determine necessary) and adjust them in amount and with an effective date sufficient to achieve the Revenue Requirement projected for that year in the SBWMA report. The Revenue Requirement consists of: (i) their allocated portion of Contractor's Compensation; (ii) an adjustment to reflect a revenue shortfall or surplus for the prior Rate Year; (iii) Pass-Through Costs including, but not limited to, Franchise Fees and payments to SBWMA for processing and disposal; and (iv) Performance Incentive and Disincentive payments due, if any. Attachment K Collection Services Franchise Agreement City of Burlingame Contractor's Compensation and Rate Setting Process Page 25 of 25 ATTACHMENT L IMPLEMENTATION PLAN The implementation plan specified in this Attachment is based on Contractor's Proposal for roll- out of new services on January 1, 2011. Iinplementation Plan Timeline Detail 1-Implementation Management Start End Description _77— I-Jun-09 31-Dec-11 RSMC/SBW1%4A coordination meetings–minimum once per month 2-SBWMA/Member Agency Public Education and Outreach Start land Description 1-Jun-09 31-Dec-10 RSMC Public Education coordination meetings with SBWAIA and Member Agencies 1-Jan-10 3I.-Dec-10 RSMC collaboration with SBWAVVMember Agencies on design of public education materials I-Jun-10 Suggested date to send introductory mailer to all residential customers 1-Jul-10 Suggested date to send introductory mailer to all multi-family and commercial accounts 1-Jul-10 Suggested date to send comprehensive residential services brochure including tear-off postcard for selection of garbage cart size 3-RSMC Public Education and Outreach Start End Descrintion 1-Jun-09 31-Dec-10 RSMC Public Education coordination meetings with SBWTVIA and Member Agencies 1-Jan-10 31-Dec-10 SBWMA/Member•Agencies collaboration with RSMC on design of public education materials 1-Jan-10 1-June-10 Design and produce"How to"recycling DVD 1-Jan-10 1-June-10 Develop RSMC website 1-Jan-10 31-Dec-10 Design and produce door hangers 1-Jan-10 31-Dec-10 Design and produce Non-Collection Notices 1-Jan-I0 31-Dec-10 Assemble used motor oil recycling kits 1-Jan-10 31-Dec-10 Design and produce annual on-call collection service collection notices i-Jan-10 3.1-Dec-10 Design and produce annual holiday tree recycling notices 1.-Jan-10 31-Dec-10 Design and produce twice-annual commercial recycling notices 2-Apr-10 31-Dec-10 Begin staffing booth a local public events,PSA's,presentations at service organizations& schools. 4-Customer Service Start End Descrintion 1-Jun-09 Request for database including all customer information in electronic flat file. Initial request occurring in June 2009.Subsequent requests will be done on a quarterly basis. 1-Sep-09 31-Dec-09 RSMC database conversion to NCRM 1-Sep-09 31-Dec-09 Verify accuracy and completion of all customer information 1-Sep-09 31-Dec-09 Installation of all NCRD4 service codes for daily Nvork orders and repotting 1-Sep-09 31-Dec-09 Installation and testing of all systems Franchise Agreement for Collection Services Attachment L City of Burlingame Implementation Plan Page 1 of 3 ATTACHMENT L IMPLEMENTATION PLAN Implementation Plan Timeline Detail 5-Cart Procurement Start End Description 3-Aug-09 30-Sep-09 Determine configuration of cart orders 1-Sep-09 30-Sep-09 Place all cart orders for residential,multi-family,and commercial customers 1-Apr-10 30-Sep-10 Delivery of all carts to RSMC storage location 6-Container Procurement Start End. Description 3-Aug-09 30-Sep-09 Determine configuration of cart orders 1-Sep-09 31-Dec-09 Place all steel container orders 1-Apr-10 31-Jul-10 Delivery of all steel containers to RSMC storage location i-Vehicle Procurement Start, End Description 1-Se:p-09 30-Sep-09 Place all truck and chassis orders including all support vehicles 1-Jul-10 30-Sep-10 Distributor QC inspections,vehicle registration,and delivery to RSMC 16-Aug-10 15-Oct-10 Install Routeware equipment in collection vehicles 1-Jul-10 30-Nov-10 Final inspection and field testing of all vehicles by RSMC S-Collection Routing Start En.d Description 1-Sep-09 31-Dec-09 RSMC database conversion to NCRM 1-Sep-09 31-Dec-09 Verify accuracy and completion of all customer.information 1-Jan-10 30-Jun-10 Download customer data file to Route Smart,Obtain Updated GIS Maps,Gecode and trouble shoot data,create initial routes,test and modify as necessary. 1-Qct-09 31-Dec-10 Quarterly obtain updated customer files,update NCRM files,changes in Route Smart 1-Oct-09 31-Dec-09 Obtain updated customer files,update NCRM files,changes in Route Stuart 1-Jan-10 31-Mar-10 Obtain updated customer files,update NCRZ•i files,changes in Route Smart 1-Apr-10 30-.Jun-10 Obtain updated customer files,update NCRM files,changes in Route Smart 1-Jul-10 30-Sep-10 Obtain updated customer files,update NCRNI files,changes in Route Smart 1-Oct-10 31-Dec-10 Obtain updated customer files,update NCR%1 files,changes in Route Smart t-Jul-10 31-Dec-10 Download customer data file to Route`rare Software and install on-board system,test and modify as necessary. 1-Sep-10 31-Dec-10 Field-clieck a1111.1JD and Commercial customer locations/verify readiness for service 1-Oct-10 31-Dec-10 Obtain customer changes daily,update NCRM tiles and make changes in Route Smart and Route Ware. 9-Operations and Maintenance Facility Start End Description 1.-Oct-09 30 Oct-09 Develop plan for computer/communications/office equipment procurement.and installation 2-Nov-09 31-Dec-09 place orders for all SRDC computers/i:ommunications(nffice equipment 1-Jul-10 31-Dec-10 Coordinate with SBl' IAA and Allied for equipment installations and move to SRDC 1-Oct-10 31-Dec-10 Install and test computer and communications systems Franchise Agreement for Collection Services Attachment L Implementation Plan City of Burlingame Page 2 of 3 ATTACHMENT L IMPLEMENTATION PLAN Iinplementation Plan Timeline Detail 10-MFD&Commercial Recycling Blitz Start Ind Description 1-Jan-10 31.-Mar-1.0 Design and produce New Service brochure for Recycling Blitz 1-Jan-IA 31-Mar-10 Establish Recycling Blitz operations base in Burlingame 1-Jan-10 31-Mar-10 Recruit and train Recycling Blitz Team personnel 1-Jan-10 31-Mar-10 Develop detailed Recycling Blitz Operations Plan and Team assignments 1-July-10 31-Dec-10 Conduct MFD&commercial recycling promotion Blitz 11-Personnel Recruitment and Training Start End Description 19-Ju1-10 Reception BBQ to meet.SMC team and opportunity to ask questions. 09-Aug-10 Job fair including a formal presentation,mandatory training schedule.Q&A,and employment application process. 23-Aug-10 Make-up meeting for employees that were not able to attend the jolt fair. 1-Sep-10 30-Sep-10 Issue letters of employment offer 1-Oct:10 29-Oct-10 Pre-employment exams 1-Dec-10 28-Dec-10 New-hire orientation and onboarding 4-Oct-10 17-Dec-10 Customer Service,Sales&Administration,and Operations training. 18-Oct-10 17-Dec-10 Driver and Mechanic training. 13-Nov-10 17-Dec-10 Practice collection route runs by all new drivers 13-Container Distribution Start End Description 2-<1ug-10 Deadline for selection of SFD cart size pending delivery of default size 16-Aug-10 3-Dec-10 Exchange all commercial and multi-family containers 13-Sep-10 18-Dec-10 Delivery of all residential carts and kitchen pails 15-Nov-1 31•Dec-l0 Distribution to multi-family dwelling customers of public education door hangers.posters, 15-Nov-1�-�and Tote-Bags Franchise Agreement for Collection Services Attachment L City of Burlingame Implementation Plan Page 3of3 ATTACHMENT M AGENCY'S FRANCHISE FEES AND OTHER FEES t City of Burlingame 2009 Member Agency Franchise Fees and Other Fees Franchise Landfill Street Refuse Veh Steam Clean Litter MemberAgency Fees Closure% Sweeping AB939 Admin Fee Im act Fee Pub Containers Control$ Burlingame 8.00 1.00% $55,000 San Mateo 4.0% 5.83% $320,000 $604,970 Hillsborough 10.0% Belmont 10.0% $373,815 $110,000 San Carlos 5.0% $89,342 Redwood City 13.0% 0.40% 0.25% Atherton 10.01/0 $9,864 $14,000 Menlo Park 5.8% 6.60% $52,500 West Bay Sanita $5,000 $100,000 East Palo Alto 2.5% $220,632 13%Comm On] Foster City 5.0% $97,700 Fair Oaks 3.0% Source:HF&H FRANCHISE FEE In consideration of the exclusive franchise granted to Contractor by this Agreement, Contractor shall pay to the City of Burlingame an annual Franchise Fee of 8%. LANDFILL CLOSURE FEE The City of Burlingame must finance the federal and state mandated costs associated with the long-term monitoring requirements of the former landfill located along the San Francisco Bay shore. The Regional Water Quality Control Board and the Bay Area Air Quality Management District require on-going sampling and analysis of ground water and air quality. In addition, the former landfill is required to extract landfill gas and burn it using a flare system. The annual costs of monitoring, testing and continued engineering support are approximately $400,000 or approximately 5% of revenue requirements in the 2010 rate Year. The Contractor shall include this amount in all future Burlingame solid waste rates for residential and commercial accounts and pay it to the City of Burlingame as a separate item. ADMINISTRATIVE/AB 939 FEE The City of Burlingame approved a 2% rate adjustment to residential and commercial accounts in the 2008 rate year to augment the current level of recycling services and programs offered to residential, multifamily and commercial customers within the city limits. The funds provide financial resources for the city to implement and administer these programs as outlined in the City approved Climate Action Plan. The Contractor shall include this amount in all future Burlingame solid waste rates for residential and commercial accounts and pay it to the City of Burlingame as a separate item. STEAM CLEANING OF PUBLIC WASTE & RECYCLING CONTAINERS The City of Burlingame currently collects $55,000 for the steam cleaning and sanitizing of all city-owned solid waste and recycling containers located within the business districts. The Contractor shall pay this amount to the city as a separate item. Franchise Agreement for Collection Services Attachment M City of Burlingame Agency's Franchise Fees and Other Fees Page 1 of 1 ATTACHMENT N CONTRACTOR'S COMPENSATION AND OPERATING STATISTICS EXAMPLE CALCULATION OF CONTRACTOR'S COMPENSATION FOR RATE YEAR ONE (2011) AND ALLOCATION OF 2011 COSTS AMONG MEMBER AGENCIES The basic principles by which Contractor's Compensation is to be determined each year are contained in Article 11 of the Agreement. Attachment K to the Agreement describes in more detail the procedures which will be used to adjust Contractor's Compensation annually and to allocate it, and specified Pass-Through costs, among the Member Agencies. The first column in Table 1 of Attachment K describes the steps by which the various components of Contractor's Cost of Operations and Contractor's Pass-Through Costs, as proposed in 2008 dollars, will be adjusted in 2010 to reflect inflationary and other changes which have occurred since March 2008 and/or are projected to occur by 2011. Table 1 also describes the steps by which the same components of Cost of Operations and Contractor's Pass-Through Costs will be adjusted in each succeeding year during the Term. This Attachment N is intended to illustrate the initial adjustment of costs from 2008 to 2011 and the allocation of the 2011 adjusted costs, Profit and Pass-Through Costs (which together comprise the 2011 Revenue Requirement) among the Member Agencies. Subsequent annual adjustments will follow a similar, though simpler, process described in the second column of Table 1 in Attachment K. The dollar amounts contained in the various forms contained in Attachment N are intended to provide concrete illustrations of the process that will be followed by Contractor in preparing its Application for 2011 Contractor's Compensation and by SBWMA in reviewing that Application. They are not intended to be predictive of the results of that process. In almost all cases, the 2011 forecasts in Attachment N have been developed, in part, on the basis of estimated Bureau of Labor Statistics index levels for the period from July 2009 to June 2010. They also are based on assumed changes in services levels, the actual data for which will not be available until 2010. Moreover, the figure used for the largest component of Pass-Through Costs (the SBWMA charges for use of the Shoreway Facility) are in 2008 values. Finally, the metrics used to allocate the forecasted 2011 costs among Member Agencies (e.g., number of customers, number of route miles, number of containers, tonnage, etc.) use data as of February 2008; the compensation adjustments made in 2010 will use more current data. The components of Attachment N, and a brief description of each, are as follows: Form A: Contractor's Compensation -SBWMA Summary This table shows the change, in amount and percentage, between the elements of Contractor's Compensation as proposed in 2008 dollars, and as forecast to be in effect in 2011 on a total SBWMA Service Area basis. Form B: Projected Contractor's Compensation in 2011 by Service Sector This table distributes the total Contractor's Compensation forecast for 2011 (Form A) among the three (3) "Service Sectors" (Single-Family Residential, Multi-Family Residential and Commercial, and Member Agency Facilities). Form C: Proiected 2011 Revenue Requirement by Member encs This table allocates the Contractor's Compensation forecast for 2011 (Form A) and unadjusted 2008 Pass-Through Costs among the Member Agencies. The allocation is FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME based on the methodology described in Attachment K, Section 6, using the statistics shown on Form J. Form D: 2011 Revenue Requirement-Agency Detail This form provides more detail on the components of the forecast 2011 Revenue Requirement for Agency. Form E: Forecast 2011 Costs of Operations —Single-Family Dwelling Cost Detail This table displays the forecast 2011 cost of operations allocated to the Single-Family Dwelling Service Sector, disaggregated among the relevant"Lines of Business" (e.g., Solid Waste, Targeted Recyclable Materials, etc.). Form F: Forecast 2011 Costs of O erations -Multi-Family and Commercial Cost Detail This table displays the forecast 2011 Costs of Operations allocated to the Multi-Family Residential and Commercial Service Sectors, disaggregated among the relevant Lines of Business. Form G: Forecast 2011 Costs of Operations -Member Agency Facilities Cost Detail This table displays the forecast 2011 Costs of Operation allocated to the Member Agency Facilities Service Sector, disaggregated among the relevant Lines of Business. Form H: Indexes for Compensation Adjustment These tables display the historical, and assumed future, index levels which are used to adjust five (5) categories of Operating Costs. The calculations shown illustrate the two-step procedures described in Attachment K, Table 1 to adjust these costs from 2008 to 2011. These tables illustrate the calculation of the period to period changes in costs contained in Form K, Detail 1 and Detail 4. Form I: CBA Wages and Benefits Worksheet This form identifies the 2008 wages and benefit levels contained in collective bargaining agreements currently in effect and the calculations that will be used to determine the adjustments to these costs to 2011. Form J: Statistics for Cost Allocation This form contains the data on relative service provided to individual Member Agencies (e.g., number of customers, tons delivered to the Shoreway Facility, etc.) that will be used to distribute various categories of cost among the Member Agencies. Form K: Detail on Adjustments of Cost Categories to Reflect Changes in Levels of Price Indices and Changes in Service Levels Detail 1 - Indirect Cost Change This table provides the calculations used to generate the 2011 costs for the "Indirect �-- Costs excluding Depreciation and Interest" cost category. An explanation of the methodology used to adjust this cost category is contained in Attachment K, Table 2. FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME The indirect costs specified in this form are used to populate the changes to this cost category in the "Detail 2-Adjust Cost"worksheet. Detail 2 -Adjust Cost This table provides the calculations used to generate the 2011 costs for the "Indirect Costs excluding Depreciation and Interest" cost category by Line of Business and are based on the costs calculated in the Detail 1 - Indirect Cost Change"worksheet. The costs specified in this form are used to populate the changes to this cost category in the "Detail 3 - Service Level Changes"worksheet. Detail 3 -Service Level Changes This table provides the calculations to adjust the costs delineated on the "Detail 2 - Adjust Cost worksheet for changes in service levels. The adjustment to costs based on service level changes are calculated for each Service Sector by Line of Business. The costs that are updated based on service level changes are used to populate the costs in the "Detail 4 - Updated Total Costs"worksheet. The adjustment to costs based on changes in service levels will only be calculated for Rate Year One (2011) and Rate Year Three (2013). Detail 4 - Updated Total Costs This table provides the updated costs for 2011 by Service Sector and Line of Business that are calculated in the Detail 3 - Service Level Change"worksheet. The calculations used to adjust costs by the annual average percentage change in various indices are included in Forms H and I. Form L: Recology Cost Forms (March 2008) Cost Form 1: General Information Cost Form 2: Direct Labor Cost Form 3: Other Personnel Cost Form 4: Capital Schedule Cost Form 5: Total SBWMA Cost Summary Cost Form 6: Single Family Dwelling Cost Cost Form 7: Commercial and Multi-Family Dwelling Cost Cost Form 8: Agency Services Cost Cost Form 9: Allocated Indirect Costs Cost Form 10: Allocated Startup Costs Cost Form 11: Debt Service and Depreciation Schedule Cost Form 12: Interest Expense on Startup Costs FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N Cost Projection:Next Rate Year vs.Current Year EXAMPLE-FOR ILLUSTRATION PURPOSES ONLY Combined Collection-SBWMA SUMMARY A.SBWMA SUMMARY Estimated Costs- Costs-2008 2011 Change %Change Annual Cost of Operations Direct Labor-Related Costs Wages for CBAs 12,180,646 14,367,375 2,186,728 18.0% Benefits for CBAs 3,782,561 4,425,358 642,797 17.0% Payroll Taxes 1,012,978 1,195,366 182,388 18.0% Workers Compensation Insurance 1,218,046 1,307,879 89,833 7.4% Total Direct Labor Related-Costs 18,194,231 21,295,977 3,101,746 60.3% Direct Fuel Costs 3,361,635 2,748,036 (613,599) -18.3% Other Direct Costs 1,959,869 2,050,911 91,042 4.6% Depreciation 3,680,736 3,905,261 224,525 6.1% Collection Vehicles 2,160,702 2,292,505 131,803 6.1% Containers Total Depreciation 5,841,438 6,197,766 356,328 6.1% Allocated Indirect Costs excluding Depreciation General and Administrative 5,970,593 6,369,065 398,472 6.7% 1,510,853 1,624,603 113,750 7.5% Operations 2,236,261 2,549,498 313,237 14.0% Vehicle Maintenance Container Maintenance 787,633 848,526 60,893 7.7% Total Allocated Indirect Costs excluding Depreciation 10,505,341 11,391,692 886,351 8.4% Total Allocated Indirect Depreciation Costs 166,018 176,145 10,127 6.1% Annual Implementation Cost Amortization 217,225 224,016 6,791 3.1% Total Annual Cost of Operations 40,245,755 44,084,542 3,838,787 9.5% Profit 4,224,692 4,627,659 402,967 9.5% Operating Ratio 90.5% 90.5% Total operating Costs 44,470,447 48,712,201 4,241,754 9.5% Contractor Pass-Through Costs Regulatory Agency Fees 2,990,538 3,172,961 182,423 6.1% Interest Expense _ 0.0% Interest Expense on Implementation Cost 115,290 115,290 Total Contractor Pass-Through Costs 3,105,828 3,288,251 182,423 5.9% TOTAL CONTRACTOR'S COMPENSATION 47,576,275 52,000,452 4,424,176 9.3% Other Pass-Through Costs Disposal&Processing Fees Agency Franchise Fees Total Other Pass-Through Costs TOTAL REVENUE REQUIREMENT V FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N EXAMPLE-FOR ILLUSTRATION PURPOSES ONLY B.2011 PROJECTED CONTRACTOR'S COMPENSATION BY SERVICE SECTOR 2011 Total Costs TOTAL COLLECTION COSTS Single-Family Multi-Familyand MemberAgency Costs Commercial Costs Costs Total Costs Annual Cost of Operations Direct Labor-Related Costs Wages for CBAs $7,767,212 $6,409,813 $190,350 $14,367,375 Benefits for CBAs $2,450,691 $1,915,765 $58,902 $4,425,358 Payroll Taxes $646,232 $533,296 $15,837 $1,195 366 Workers Compensation Insurance $707,059 $583,493 $17,327 $1,307,879 Total Direct Labor Related-Costs $11,571,195 $9,442,366 $282,416 $21,295,977 Direct Fuel Costs $1,571,462 $1,133,674 $42,899 $2,748,036 Other Direct Costs $1,122,829 $884,663 $43,419 $2,050,911 Depreciation -Collection Vehicles $2,259,409 $1,587,085 $58,767 $3,905,261 -Containers $1646.998 $645.507 $0 $2,292,505 Total Depreciation $3,906,407 $2,232,592 $58,767 $6,197,766 Allocated Indirect Costs excluding Depreciation General and Administrative $3,694,464 $2,492,844 $191,157 $6,369,065 Operations $939,822 $635,867 $48,913 $1,624,603 Vehicle Maintenance $1,474,869 $997,870 $76,759 $2,549,498 Container Maintenance $490,867 $332,112 $25,547 $848 526 Total Allocated Indirect Costs excluding Depreciation $6,590,022 $4,458,694 $342,977 $11391,692 Total Allocated Indirect Depreciation Costs $102,164 $68696 $5,284 $176,145 Annual Implementation Cost Amortization $123,209 $94,087 $6,720 $224016 Total Annual Cost of Operations $24,987,288 $18,314,772 $782,482 $44,084,542 Profit $2,622,975 $1,922,545 $82,139 $4,627,659 Operating Ratio 90.5% 90.5% 90.5% 90,5% Total Operating Cost $27,610,263 $20,237,317 $864,620 $48,712,201 Contractor Pass-Through Costs Regulatory Agency Fees Interest Expense $1,808,588 $1,300,913 $63,459 $3,172,961 Interest Expense on Implementation Cost $65.715 $47,268 $2307 $115,290 Total Contractor Pass-Through Costs $1.874.303 $1,348.181 $65.766 $3.288.251 TOTAL CONTRACTOR'S COMPENSATION $29,484,566 $21,585,499 $930,387 $52,000,452 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME C FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N EXAMPLE-FOR ILLUSTRATION PURPOSES ONLY C.2011 PROJECTED REVENUE REQUIREMENT BY MEMBER AGENCY 2011 costs Uninc.San Mateo TOTAL COLLECTION COSTS 2011 Total Atherton Belmont Burlingame E Palo Alto Foster City Hillsborough Menlo ParkRedwood City San Carlos San Mateo West Bay County Annual Cost of Operations Direct Labor-Related Costs 594 Wages for CBAs 514,367,374 $431,312 $787,170 $1,424,240 $543,302 5940,174 $729,533 $1,457,210 42,610,977 $1,094,202 $3,277,525 564,135 5864, $64 Benefits for CBAs $4,425,358 $133,575 5244,893 $432,230 $168,621 $286,397 $228,276 $447,990 $803,513 $338,515 $1,009,437 4 ,890 4267,020 Payroll Taxes $1,195,366 535,885 S65,493 $118,497 $45,203 $78,222 460,697 $121,240 5217,233 $91,038 $272,390 $17,234 $;7,705 Workers Compensation Insurance 71.307.879 3S 9.263 ;_71,.¢.5`7 £12.2�50 $9245.8 6S 6A10 $132-652 23 680 $99-606 357 $19,856 8 282 253 Total Direct Labor Compend-Costssation $2$1,307,877 $649,263 $1,169,213 $2,109617 $806,583 $1,390,379 $1,084,916 $2,159,092 $3,869,403 $1,623,361 $4,858,009 $308,114 $1, Direct Fuel Costs $2,748,036 591,498 $159,608 $253,892 $111,498 $188,119 $156,362 $275,244 $477,135 7222,371 $588,924 $41,073 4182,311 Other Direct Costs $2.050,911 565,692 $118,585 $194,839 583,120 5141,160 5112,494 5204,791 S358,055 S167,022 $443,193 529,678 5132,280 Depreciation -Collection Vehicles $3,905,261 $130,923 $227,598 $359,516 $158,111 4266,419 $223,848 $389,101 $478,373 $317,034 5835,919 $58$41,723 S25 9,294 -Containers $2292.505 4S 7.773 14$ 8.584 201 $95.628 15$ 8.605 GS 6.744 224 2"443 $423,939204 7.344 5$ 11.960 541.563 $465,516 Total Depreciation $6,197,766 $178,696 $376,181 $560,922 $254,139 $425,025 $290,593 $611,544 $1.102,312 $524,380 $1.347,879 $100,286 $425,810 Allocated Indirect Costs excluding Depreciation General and Administrative $6,369,065 $117,069 $378,344 $671,965 $248,711 $454,377 $$96,042 $127,380 $1,184,480 $556,954 $$341,257 $94,838 S411,62 Operations $1,624,603 $58,293 $89,926 $153,587 $65,846 $115,138 596,542 $159,291 $282,690 $228,208 $538,045 $24,215 $107,820 Vehicle Maintenance 52,549,498 591,480 $141,121 $241,026 $103,333 $180,687 $151,504 $249,977 S443,627 $201,197 5538,342 $38,001 $169,203 Container Maintenance $848.526 $15.597 $50.405 $89.523 $33,135 $60,535 $21.325 $835835$1 7.804 ;74,201 8 $12.901 $54.839 Total Allocated Indirect Costs excluding Depreciation $11,391,692 $282,439 $659,796 $1,156,102 $451,025 $810,737 5429,437 $1,120,231 $2,068,601 $960,560 $2,537,322 $171,955 $743,486 Total Allocated Indirect Depreciation Costs $176,145 $6,332 $9,755 $16,633 $7,142 $12,478 $10,490 $17,259 $30,645 $13,901 $37,179 $2,630 $11,701 Annual Implementation Cost Amortization $224,016 �7 344 $12,897 $21,087 $9,369 $15,527 $12,445 522,38035 8.877 $17,974 424 $3.269 $14,423 Total Annual Cost of Operations; $44,084,542 $1,272,036 $2,506,036 $4,308,092 $1,722,875 52,983,426 $2,096,737 $4,410,542 $7,945,029 $3,529,569 $9,860,931 $657,005 52,792,264 Profit $4,627,659 13% 3.529 263 06 454 2.231 80 854 314 3.177 $220,099 4GR 2985 $834-009 $370-507 $1.035.125 $68.967 $293,111 Operating Ratio 90.s% so.s% 9o.s% 9o.s% so.s% so.s% 9o.5% 9o.5% 90.5% 90.5% 90.5% 9o.5% 90.5% $3,900,077 $10,896,056 $725,972 $3,085,371 TotalOperatingCost $48,712,201 $1,405,565 $2,769,101 $4,760,323 51,9031729 $3,296,603 $2,316,836 $4,873,527 $8,779,037 Check Contractor Pass-Through Costs Regulatory Agency Fees Interest Expense $3,172,961 $91,484 $192,587 $287,165 $130,107 $217,592 $148,770 $313,081 4$24,332 $2$8,258 5690,950 $$1,342 2 17,994 Interest Expense on Implementation Cost $115,290 $3,780 S6,638 $10,852 $4,822 $7,991 $6,405 511,518 $20,008 $9.250 $24.922 51.682 $7'413 $298,018 $134,929 $225,584 $155,175 $ Total Contractor Pass-Through Costs $3,288,251 $95,264 $199,225 324,599 $584,339 $277,708 $714,972 $53,024 $225,417 4$,058,340 $2,038,658 $3422,187 $1,472,01( 55,198,126 $9363376 54,177,784 $11,611,028 5778,996 $3310,792 TOTAL CONTRACTOR'S COMPENSATION 552,000,452 51,500,828 S2,968,325 Other Pass-Through Costs $15,520,578 5400,623 5917,195 $1,41),478 $889,322 57,013,045 $369,213 $1,615,803 $3,157,906 $1,179,580 53.196,085 $203,521 $1,748,80 Disposal&Processing Fees' 4 193 1 849 61 30 77 $333.032 $295833 220.959 6T G0.13G 51.7N8.943 7348.038 52.093.615 4_$012 # 1 Agency Franchise Fees' 57,478,118 Total Other Pass-Through Costs $22,998,696 $594,184 51,767,156 52,050,155 51,222,354 $1,308,878 $590,172 $2,285,939 54,946,849 S1427,618 $5,289,700 $208,533 51,207,158 53,261,012 54,831,065 $3,062,183 $7,484,065 $14,310,ZZ5 $5,705,402 546,900,728 $987429 14,517950 TOTAL REVENUE REQUIREMENT 774,999,148 52,095,012 54,735,481 $7,108,495 1 Disposal Fees for example only,not actual or projected. 2 Franchise Fee for example only,not actual or projected. 3 Costs do not reflect any Agency directed changes in service. FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME FRANCI{ISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N D.Burlingame EXAMPLE ONLY Total 2011 Costs City H of accounts 6,325 6,325 6,325 6,325 6,325 31 6,325 SBWMA 8 of accounts 90,461 90,461 90,461 90,461 90.461 402 90,461 Citv Total Route Labor hours year 3.663.14 3,859.49 3,046.96 19.30 19.30 671.06 11,279 SBWMA Total Route Labor hours year 58,630.74 57,470.96 49,708.61 264.63 264.63 9.752.36 176,092 City 8 of route hourslyew 3.581.74 3,740.63 2,989.92 18.70 18.70 671.06 11,021 SBWMA 8 of route hours/year 57,108.73 56,052.72 48,405.78 258.00 258.00 9,752.36 171,836 City Total Containers in Service(Accounts for example) 6,325 6.325 6,325 6,325 6.325 31 31,656 SBWMA Total Containers in Service 90,461 90,461 90,461 90,461 90,461 402 452,707 City Tomtages 3.492.70 3,945.30 3,668.40 1.58 1.58 235.61 11,345 SBWMA Tonnages 60,158.09 47,323.16 59,414.55 22.62 22.62 3,222.07 170,163 FTE Routes Organic Materials (including Holiday Weekly BeMry,and Weekly Used Motor Two On-Call SFD Solid Waste Recyclable Materiels Trecs) CeB Phone Oil and Oil Filters Collection Events TOTAL A B C D D J Annual Cost of Operations Direct Labor-Related Costs Wages for CBAs $173.710 $152.782 $124.616 $838 $838 $45,128 $497.912 Benefits for CBAs $53.122 $48,761 $38,832 $267 $267 $16,067 $157,317 Payroll Taxes $14,453 $12,711 $10,368 $70 S70 $3,755 $41.426 Workers Compensation Insurance $15,813 $13,908 $11,344 1.76 $76 S4 108 $45_326 Total Direct Labor Rclatcd-Costs $257,098 $228,162 5185,161 $1,251 $1,251 $69,058 $741,982 Direct Fuel Costs $32.667 $35.294 $28.498 $194 $194 $3.785 $100.632 Other Direct Costs $23,084 $24,940 $20,388 $137 $137 $3,248 $71.933 Depreciation-Collection Vehicles $47,472 $50,007 $40,909 5274 $274 $5,730 $144,667 Dcpreeiation-Containers $35,253 $35.958 $43,584 SI82 $182 $0 $115,157 Depreciation Cor Collection Equipment $82.725 $85.964 $84.493 $456 5456 $5.730 $259.825 Lease S0. SO $0 s0 $0 s0 So Allocated Indirect Costs excluding Depreciation and Interest(Form 9) General and Administrative $82,437 $85,013 $85,872 $429 $429 $3,739 $257,919 Operations $18,862 $20,697 $19,350 $114 $114 $863 $59,999 Vehicle Maintenance 529.600 S3L480 $30.366 $178 $178 $1.354 $94.156 Container Maintenance $10.983 $11.326 $11,440 $57 $57 $498 $34.362 Totsl Allocated Indirect Costs excluding Depreciation and Interest $141,882 $149,516 $147,029 $778 $778 $6,453 5446,436 Total Allocated Indirect Depreciation Costs(Form 9) $2,050 $2,250 $2,103 $12 $12 $94 56.522 Annual Implementation Cost Amonvation(Form A) $2,550 $2.549 $2,283 $45 $45 $424 $7,895 Total Annual Cost of Operations 5542,1156 5528,675 5469,955 52,873 52,873 588,793 51,635,225 Profit(insert Operating Ratio below) 556,900.93 555,496.23 S49,33229 5301-59 S301-99 59,320.78 5171,653.40 90.5 Total Proposed Costs before Pass-Through Cost Allocation 5598,957 $584,171 S519,287 53,175 $3,175 598,113 51,806,878 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTR^^ OR'S COMPENSATION CITY OF BUME 1 FRANCHISE AGREEMENT FOR COLLECTION SERVICES D.Burlingame EXAMPLE ONLY Total 2011 Costs )q2 27 31 9,627 Cin,4 of Lilts per week 4,585 3,000 600 1,273 SBWMA g Lifts per week 32,101 21,807 4,997 4,446 1,201 307. 402 64,859 Cily Total Route Labor hours year 12,278.44 4,67634 654.11 1.483.20 165.45 31.46 671.06 19,289 .SBWMA Total Route Labor hours year 87,822.68 34,337.07 6,578.51 5.737.20 1,629.66 433.14 9,752.36 136,438 City H of route hours/year 7,685.53 4.734.53 693.43 1.451.69 161.93 30.79 67 LOG 14,758 ,SBWMA B of route hourslyear 61,603.29 34,735.51 6,551.58 5,615.29 1,595.03 423.93 9,752.36 110,525 City Total Containers in Service(Lifts for example) 4,585 3,000 600 1,273 142 27 31 9,627 SBWMA Total Containers in Service 32,101 21,807 4,997 4,446 1,201 307 402 64,8 59 15,896.74 3,873.77 2,359.16 7.761.49 0.00 0.00 235.61 29,891 City Tonnages 116,200.03 31,400.40 21,096.79 57,275.71 0.00 0.00 3,222.07 225,973 SBWMA Tonnages 3.69 2.28 0.33 0.70 0.08 0.01 0.31 7.41 Carl and Bi.Organic Cert and Bin Solid Corl and Bin Mntarials(including Drop Boz Solid Drop Hoz Recyclable Drop Box Organic Two On-Call TOTAL Commercial&MFD Waste Recyclable Materials Holiday Trees) Waste Materi.1, Materials Collection Events 661 E F G H H H Proposed Costs in 2008 Dollars Annual Cost of Operations Direct labor-Rclaled Costs Wages for CBAs $549,556 $205.209 $40.842 $9i.GGG $5.521 527 28 57.340 $909. Benefits for CBAs $173,452 $60,842 58,508 $21.145 $1.709 5782 52,390 $268,827 Payroll Taxes $45,723 $17.073 $3.398 $7,959 $459 $210 $GG1 $75,434 71 $8.708 $503 �B �.$ SR2J534 Workers Compensation Insurance 5$(1027 18 G 0 3 $ Total Direct labor Rclated-Costs $818,758 5301,804 $56,467 $133,477 58,192 $3,751 $11,008 $1,333,457 Direct Fuel Costs $83.053 $36.754 $10.378 $15,400 $1244 $570 51.417 $148.816 Other Direct Costs $61,331 531.746 $6.756 $15.683 $1.264 $581 $1,046 $118,408 Depreciation-Collecuon Vehicles $114,486 $55.333 $13,257 $21,232 $1,712 $787 51,953 $208,760 $34,865 527,658 $23,151 s0 EO $0 $574 $86,249 Depreciation-Containers Depreciation for Collection Equipmem $149.351 $82.991 836,409 $21.232 $1,712 $787 $2.527 8295.009 Lease $0 $O $0 SO $0 SO So 50 Allocated Indirect Costs excluding Depreciation and Interest(Form 9) General and Administrative $93,851 593,191 $81,337 $98,918 58,009 54,170 SI,546 $381,023 Operations $20,910 $23,552 $18,288 $22,782 $1,754 5878 $357 588,522 $32815 $36.940 $28.700 535.752 52.753 $1.37379 $560 S1$50,76239,917 Vehicle Maintenance Container Maintenance $12.503 $12.415 $10.836 1_11 $1-067 Total Allomted lndirecl Costs excluding Depreciation and Interest $160.080 $166,118 $139.162 $170,630 $13.583 56.983 S2.669 5659.224 Total Allocated Indirect Deprceiatian Costs(Farm 9) $2,259 $2,544 $1,976 $2,461 $190 $95 $39 $9,564 Annual Implementation Cost Amortization(Farm A) 55.986 S3206 $1.295 $1.703 $134 $68 $104 $72.495 Total Annual Cost of Operations 51280,819 $625,163 5252,141 5360,587 S26,319 512,835 518,809 52,576,973 Profit(insert Operating Ratio below) 5134,450.58 565,62.5 526,499 537,852 52,763 53,347 51,974 $270^_511 90.5"/0 Total Piroposed Costs before Pass-Through Cost Allocation 5],415,X,9.30 5690,787.71 5278,940.87 5398,438.39 I 529,081.64 i 514,182.49 520,783.68 52,817,484.08 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME FRANCHISE AGREEMENT FOR COLLECTION SERVICES D.Burlingame EXAMPLE ONLY 2011 Costs Totals City#of Lifts per Week 9.83 4.96 299.00 6,325 313.79 SBWMA#Lifts per year(Accounts for Venues/Evenis) 56 17 3,000 90,461 City Total Route Labor hours year 29.69 14.48 820.19 863.36 863.36 SBWMA Total Route Labor hours year 1,581.41 456.46 2,122.13 4,160.00 City#of route hours/year 28.08 14.18 802.76 863.36 84S.01 SBWMA#of route hours/year 1,547.80 446.76 2,069.58 4,160.00 City#of Containers(Lifts for example) 511 258 15.548 6.325 769.00 SBWMA#of Conainers 2,901 898 156,000 90,461 0.01 0,01 0.39 0.00 0.41 Public Liner and Agency Solid Waste Organic Materials Recycling Cans Venues and Events TOTAL E G I I Annual Cost of Operations Direct tabor-Related Costs Wages for CBA, $2.072 $906 $14.714 $1.975 $19.667 Benefits for CBAs $641 $280 $4,553 $611 $6,086 Payroll Taxes $172 $75 $1,224 $164 $1,636 Workers Compensation Insurance 5189 $82 $1339 5180 51,790 Total Dlmcl Labor Rclated-Costs 53,074 $044 $21,830 $2,931 $29,179 Direct Fuel Costs $467 $204 $3.328 5445 $4.444 Other Direct Costs $473 $207 $3.368 $451 $4,498 Depreciation-Collection Vehicles $640 $280 54,559 $610 $6,088 Depreciation-Containers s0 $0 $0 $0 so Depreciation for Collection Equipment $640 $280 $4.559 $610 $6,088 Lease $0 - s0 s0 $0 s0 Allocated Indirect Costs excluding Depreciation and Interest(Form 9) General and Adminisuadvc $20,266 $8,264 $3,822 5670 $33,023 Operations $532 $233 $3,795 $508 55,067 Vchicic Maimcnance $835 $365 $5.955 $797 $7.952 Container Maintenance $2.700 $1,101 $509 $89 54,400 Total Allocated Indirect Costs excluding Depreciation and Interest $24,334 59,963 $14,081 52,064 $50.442 Total Allocated Indirect Depreciation Costs(Form 9) $58 $25 $410 $55 $547 Annual Implementation Cost Amortization(Form A) $73 $32 $521 S70 $696 Total Annual Cost of Operations S29,117 512,055 548,098 $6,624 595,894 Profit(insert Operating Ratio below) 53,057 $1,265 55,049 5695 510,066 91% Total Operating Costs before Pass-Through Cost Allocation $32,174 513,321 553,147 57,320 s10s,961 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTPAr TOR'S COMPENSATION CITY OF BL' )AME 1 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N EXAMPLE-FOR ILLUSTRATION PURPOSES ONLYE.Single Family Dwelling(SFD)-Forecast 2011 Cost of Operations Organic Materials Weekly Used SFD COLLECTION COSTS Recyclable (including Holiday Weekly Battery Motor Oil and Oil =Events Solid Waste Materials Trees) and Cell Phone Filters A B CD D Annual Cost of Operations Direct Labor-Related Costs BAs $2,780,331 $2,275,048 $2,033,010 $11,490 $11,490 $655,842 $7,767,2 12 Wages for C Benefits for BAs $850,252 $726,088 $633,518 $3,667 $3,667 $233,499 $2,450,691 $169,146 $956 $956 $54,566 $646,232 Payroll Taxes $231,324 $189,284 Workers Compensation Insurance $253,103 $207,097 $185,064 $1,046 $17,15 1,003,6 11,57119 Total Direct Labor Related-Costs $4,115,010 $3,397,518 $3,020,739 $17,159 $2,671 1$55,0609 $11571,4 2 Direct Fuel Costs $520,864 $528,877 $461,371 $2,671 $2,671 $55,009 $1,571,462 Other Direct Costs $368,056 $373,719 $330,074 $1,887 $1,887 $47,205 $1,122,829 Depreciation - CollectiatVehicles $756,914 $749,345 $662,301 $3,735 $3,785 $83,280 $2,259,4 -Containers $504.187 $514,271 $623,345 $2 597 $2,597 $0 $1,646.998 $1,261,101 $1,263,616 $1,235,646 $6,382 $6,382 $83,280 $3,906,407 Total Depreciation Allocated Indirect Costs excluding Depreciation General and Administrative $1,179,024 $1,215,868 $1,228,150 $6,141 $6,141 $49,141 $3,684,464 Operations $300,742 $310,140 $313,273 $1,566 $1,566 $12,535 $939,822 Vehicle Maintenance $471,956 $486,705 $491,621 $2,458 $2,458 $19,671 $1,474,869 $157,077 $161,985 $163,622 $818 $818 $6547 $490,867 Container Maintenance $2,196,665 $10,983 $10 Total Allocated Indirect Costs excluding Depreciation $2,108,798 $2,174,698 ,983 $87,894 $$102,164 64 Total Allocated Indirect Depreciation Costs $32,692 $33,714 $34,055 $170 $170 $1,362 $102, Annual Implementation Cost Amortization $40,659 $38,195 $36,963 $616 $616 $6,160 $123,209 Total Annual Cost of Operations $8,447,181 $7,810,337 $7,365,512 $39,869 $39,869 $1,284,520 $24,987,288 Profit $886,721 $819,870 $773,175 $4,185 $4,185 $134,839 $2,622,975 Operating Ratio 90.5% 90.5% 90.5% 90.5 90.5% 90.5% 90.5 $8,138,687 144,054 $44,054 $1,419,359 127,610,263 Total Operating Costs before Pass-Through Costs $9,333,902 $8,630,207 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N EXAMPLE-FOR ILLUSTRATION PURPOSES ONLY F.Commercial&Multi-Family Dwelling(MFD)-Forecast 2011 Cost of Operations Cart and Bin Organic COMMERCIAL&MFD COLLECTION COSTS Cart and Bin Solid Cart and Bin Materials(including Drop Box Solid Drop Box Recyclable Drop Box Organic Two On-Call TOTAL 2011 Waste Recyclable Materials Holiday Trees) Waste Materials Materials Collection Events E F G li H H J Annual Cost of Operations Direct Labor-Related Costs Wages for CBAs $3,930,750 $1,502,403 $410,753 $370,045 $54,386 $34,807 $$3344,727 $1,915,765 , 9 $6,409,813 Benefits for CBAs $1,240,634 $445,444 $85,571 $81,790 $16,829 $10,771 72 Payroll Taxes $327,038 $125,000 $34,175 $30,788 $4,525 $2,896 $8,875 $533,296 Workers Compensation Insurance $357,821 $136,766 $37,394 $333683 $4,950 $3,168 $99710 $583,493 Total Direct Labor Related-Costs $5,856,243 $2,209,612 $567,893 $516,306 $80,690 $51,642 $159,981 $9,442,366 Direct Fuel Costs $665,712 $269,650 $98,054 $59,568 $12,257 $7,844 $20,589 $1,133,674 Other Direct Costs $491,600 $232,907 $63,828 $60,665 $12,454 $8,005 $15,204 $884,663 Depreciation Collection Vehicles $917,663 $405,959 $125,256 $82,129 $16,859 $10,838 $28550 $1,587,085 Containers $244.103 $201,043 19$ 2.812 $0 LO $0 $7 550 645 507 Total Depreciation $1,161,765 $607,002 $318,068 $82,129 $16,859 $10,838 $35,931 $2,232,592 Allocated Indirect Costs excluding Depreciation General and Administrative $657,081 $677,403 $677,403 $345,476 $67,740 $47,418 $20,322 $2,492,844 Operations $167,606 $172,790 $172,790 $88,123 $17,279 $12,095 $5,184 $635,867 Vehicle Maintenance $263,026 $271,160 $271,160 $138,292 $27,116 $18,981 $8,135 $997,870 $2 707 $332 1 2 Container Maintenance 7.540 $ 0.248 $90,248 4$ 6A26 $9,025 $6,317 8 $ 9 Total Allocated Indirect Costs excluding Depreciation $1,175,253 $1,211,602 $1,211,602 $617,917 $121,160 $84,812 $36,348 $4,458,694 Total Allocated Indirect Depreciation Costs $18,108 $18,668 $18,668 $9,520 $1,867 $1,307 $560 $68,696 Annual Implementation Cost Amortization $47,984 $23,522 $12,231 $6,586 $1,317 $941 $1,505 $94,087 Total Annual Cost of Operations $9,416,666 $4,572,961 $2,290,343 $1,352,690 $246,605 $165,389 $270,118 $18,314,772 - $1,922,545 Profit $988,489.80 $480,035 $240.423 $141.995 $25,887 $17,361 $28,355 Operating Ratio 90.5% 90.5% 90.5% 90.5% 90.5% 90.5% 90.5% 90.5% Total Operating Costs before Pass-Through Costs $10,405,155.79 $5,052,995.90 $2,530,765.55 $1,494,685.58 L $272,491.19 $182,749.94 $298,473.31 $20,237,317.27 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRI `�OR'S COMPENSATION CITY OF BUf JME r � � FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N G.Member Agency Services-Forecast 2011 Cost of Operations EXAMPLE- FOR ILLUSTRATION PURPOSES ONLY Public Litter and TOTAL MEMBER AGENCY COLLECTION COSTS Solid Waste Organic Materials Recycling Cans Venues and Events E G I t Annual Cost of Operations Direct Labor-Related Costs $114,209 $28,554 $38,070 $9,517 $190,350 Wages for CBAs $35,341 $8,836 $11,780 $2,945 $58,902 Benefits for CBAs $792 $15,837 Payroll Taxes $9,502 $2,376 $3,167 Workers Compensation Insurance $10,396 $21599 $3,465 $866 $17,327 Total Direct Labor Related-Costs $169,448 $42,364 $56,483 $14,121 $282,416 Direct Fuel Costs $25,739 $6,435 $8,580 $2,145 $42,899 Other Direct Costs $26,051 $6,513 $8,684 $2,171 $43,419 Depreciation $3 -Collection Vehicles 5,260 $8,815 $11,754 $2,938 $58,767 Containers $0 $0 $0 $0 $0 $2,938 $58,767 Total Depreciation $35,260 $8,815 $11,754 Allocated Indirect Costs excluding Depreciation General and Administrative $115,054 $28,764 $38,351 $9,588 $191,757 $29,348 $7,337 $9,783 $2,446 $48,913 Operations $46,055 $11,514 $15,352 $3,838 $76,759 Vehicle Maintenance Container Maintenance $15,328 $3,832 $5,109 $1.277 $25,547 Total Allocated Indirect Costs excluding Depreciation $205,785 $51,448 $68,595 $17,149 $342,977 Total Allocated Indirect Depreciation Costs $3,171 $793 $1,057 $264 $5,284 Annual Implementation Cost Amortization $4,032 $1,008 $1,344 $336 $6,720 Total Annual Cost of Operations $469,486 $117,376 $156,496 $39,124 $782,482 Profit $49,283 $12,321 $16,428 $4,107 $82,139 90.5% 90.5°/ 90.5% 90.5% 90.5% Operating Ratio Total Operating Costs before Pass-Through Costs $518,769 $129,697 $172,924 1 543,230 $864,620 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N H.INDEXES FOR COMPENSATION ADJUSTMENT EXAMPLE-FOR ILLUSTRATION PURPOSES ONLY example only 1.Worker's Coma Index:U.S.Department of Labor,Bureau of Labor Statistics,Private Industry Employment Cost Index for Private Industry(Not seasonally adjusted,total compensation,series no. CIU2030000000000A) 2011 2010 2009 2008 2007 Q1 110.4 108.2 106.5 103.2 Q2 108.7 107.0 104.3 Q3 109.3 107.5 105.0 Q4 109.8 107.7 105.6 Four quarters Total to Q1 438.2 430.4 421.4 Average Index 109.6 107.6 105.4 Factor 1.018 1.018 1.021 Year One Adjustment Factor 5.81% see Attachment K,Table 1,D.Steps One and Two combined 2 Wages&Benefits for non-CBA Employees Index:U.S.Department of Labor,Bureau of Labor Statistics,Private Industry Employment Cost Index for Service-Producing Industries(seasonally adjusted,total compensation,series no. ds201000000000i successor to Ecs12102i ended 2005 2011 2010 2009 2008 2007 Q1 113.1 109.8 107.6 104.3 Q2 110.6 108.4 105.1 Q3 111.5 109.1 106 Q4 112.3 109.6 106.9 Four quarters Total to Q1 447-a 43U 125& Average Index 111.9 109.2 106.4 Factor 1.024 1.024 1.027 Year One Adjustment Factor 7.69% /1 see Attachment K,Table 1,B.Steps One and Two combined 3.Fuel Index:U.S.Department of Labor,Bureau of Labor Statistics,Producer Price Index-Commodity Index for#2 diesel fuel(not seasonally adjusted,fuels and related products and power,series no.wpu057303). 2011 2010 2009 2008 2007 2006 2005 2004 Jan 197.0 161.6 278.2 180.9 197.1 141.1 109 Feb 198.0 145.6 287.5 193.5 196.2 149.5 104 Mar 205.0 132.6 353.7 220.2 206.5 173.3 110 Apr 210.0 159.8 365.1 238.0 230.4 175.4 120 May 165.0 398.2 226.5 239.6 170.8 121 Jun 187.2 421.0 227.6 246.9 187.2 114 Jul 189.8 431.9 243.5 237.5 189.8 123 Aug 200.6 346.7 231.2 250.2 200.6 135 Sep 212.6 342.3 246.2 201.3 212.6 141 Oct 250.0 281.8 249.6 197.5 264.1 167 Nov 205.0 224.1 296.7 197.2 206.2 160 Dec 196.0 168.0 271.9 203.0 198.5 135 Total May PY to April CY2,416.2 3,213.6 3,277.7 2,605.8 2,460.0 1,735.1 442.6 Avg 201.4 267.8 273.1 217.2 205.0 144.6 36.9 % -24.81% -1.96% 25.78% 5.93% 41.78% 292.02% Factor 0.752 0.980 1.258 1,059 1.418 5 Year Average Index to Estimate 109.3% Year One Adjustment Factor -19.4% see Attachment K,Table 1,E.S teps One and two combined c FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME H.INDEXES FOR COMPENSATION ADJUSTMENT EXAMPLE-FOR ILLUSTRATION PURPOSES ONLY example only 4.Other Costs Index:U.S.Department of Labor,Bureau of Labor Statistics,Consumer Price Index-All Urban consumers,U.S.city average(not seasonally adjusted,all items,base period:1982-84=100,series no.cuur)000sao) 2011 2010 2009 2006 2007 Jan 218.086 211.143 211.080 202.416 Feb 218.631 212.193 211.693 203.499 Mar 219.178 212.709 213.528 205.352 Apr 219.726 213.240 214.823 206.686 213.773 216.632 207.949 May 214.308 218.825 208.352 Jun Jul 214.843 219.964 208.299 215.380 219.086 207.917 Aug 215.919 218.783 208.490 Sep 216.459 216.573 208.936 Oct 217.000 212.425 210.177 Nov 217.542 210.228 210.036 Dec Total May PY to April CY 2,600.8 2,581.8 2,521.3 216.737 215.150 210.107 Average Index 1.007 1.0070 1.024 Factor 80%of: Factor @ 80% 1.0060 1.0060 1.0190 Year One Adjustment Factor 3.13%@ 80% see Attachment K,Table 1,F.S teps One and two combined 5.Depreciation Index:U.S.Department of Labor,Bureau of Labor Statistics,Producer Price Index IndustryData for motor vehicle body manufacturing,truck, bus,car,and other vehicle bodies,for sale separately(not seasonally adjusted,base date:8212,series no.pcu336211336211). 2011 2010 2009 2008 2007 217.5 204.6 204.2 Jan 217,2 204.6 204.1 Feb 216.7 206.7 203.0 Mar 215.9 209.7 204.3 Apr 216.4 210.3 204.5 May 217.0 212.3 205.8 Jun Jul 217.5 214.7 205.9 218.1 215.2 206.0 Aug 218.6 215.2 206.2 Sep 219.2 216.2 206.2 Oct 219.7 216.8 206.2 Nov 220.3 217.8 203.9 Dec Total 2,614 2,465 217.8 205.4 Avg 1.061 Factor Year One Adjustment Factor 6.10°rG Uses 12 month average to month of purchase and 12 month average to March 2008 assumes capital equipment purchased in December 2009 see Attachment K,Table 1, G&H(direct and indirect).Steps One and Two combines V r FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N I.CBA WAGES&BENEFITS WORKSHEET EXAMPLE-FOR ILLUSTRATION PURPOSES ONLY DIRECT LABOR BASE 2008 COST 2011 Rates Drivers and Maintenance not actual Personnel Proposed Hourly age pos Route Labor Hourly Wage Rate FTE pos OT His!FTE/Yr Annual Cost Rale Annual Cost Helper $29.30 7 260 $506,597 $ 34.25 592,183 Driver-Tag $29.93 0 0 S $$ 34.25 Recycling Driver $30.55 71 370 $5,716,2591 $ 35.50 6,642,461 Commercial Driver $30.55 42 370 53,381,449 $ 35.50 3,929,343 Driver Wage Route Manager $30.55 32 370 $2,576,342 $ 35.50 2,993,785 Increase $12,180,646 14,157,771 16.23% Subtotal 152 1,371 Mechanics-Vehicle Maintenance Senior Mechanic g 90 10 697 $965,997 $ 35.70 1,116,055 Preventive Maintenance Technici05 2 697 $175,380 $ 33.00 206,330 Vehicle Welder 70 1 697 $92,648 $ 32.00 100,039 MechanicShop Laborer(Utility) 00 1 260 $39,520 $ 18.00 44,460 Wage Subtotal 14 2,352 $1,273,746 1,466,883 15.16% Mechanics-Container Maintenance Senior Mechanic $30.90 0 0 $0 $ 35.70 Preventive Maintenance Technician $28.05 0 0 $0 $ 33.00 - Container Welder $29.70 4 697 $371,393 $ 32.00 400,154 Mechanic Shop Laborer(Utility) $16.00 1 260 $39,520 $ 18.00 44,460 Wage Subtotal 5 957 $410,913 444,614 8.20% Total 171 4,681 $13,865,305 16,069,269 BENEFITS not actual 2008 Benefits Costs 2011 Benefits Costs Teamsters !month I I hour I month I hour H&W $ 1,449.86 $ 8.36 $ 1,667.34 $ 9.62 Income Protection $ - $ $ Total H&W $ 1,449.86 $ 8.36 $ 1,667.34 $ 9.62 Annual Cost per person $ 17,398.32 $ 20,008.07 15.0% Pension $ 624.00 $ 3.60 $ 723.84 $ 4.18 Driver Annual Cost per person $ 7,488.00 $ 8,686.08 16.0% Benefits Increase Total Teamster $ 11.96 $ 115.30% 155.3.3% Mechanics I month I I hour I month I hour H&W $ 1,o5o.00 $ 6.06 $ 1,218.00 $ 7.03 Annual Cost per person $ 12,600.00 $ 14,616.00 16.0% Pension $ 525 $ 3.03 I$ 6881$ 3.39 Mechanics Annual Cost per person $ 6,300 $ 7,059 12.0% Benefits Increase Total Mechanics $ 9.09 $ 10.58 16.44% 16.4% FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N EXAMPLE - FOR ILLUSTRATION PURPOSES ONLY J.2010 SERVICE METRICS BY MEMBER AGENCY 2010 Metrics Summary Menlo Redwood Uninc.San Mateo Total Atherton Belmont Burlingame E Palo Alto Foster City Hillsborough Park City San Carlos San Mateo:W:etBay County SINGLE-FAMILY DWELLING7,404 #of Accounts 90,461 2,254 6,452 6,325 4,104 6,409 3,549 7,600 16,938 8,342 19,018 2,066 11,279 7,950 11,434 16,088 13,743 29,464 14,035 '33,491 3,926 14,272 Total Route Labor hours year 176,092 8,998 11,413 #of route hours/year 171,836 8,915 11,043 11,021 7,750 10,952 15,981 13,497 28,844 13,761 32,570 3,712 13,789 31,656 20,539 32,078 17,759 38,027 84,763 41,748 95,201 10,337 37,030 Total Containers in Service 452,707 11,276 32,293 10,216 10,014 8,209 16,264 27,127 14,393 33,170 4,412 15,953 Tomlage 170,163 8,480 10,579 11,345 COMMERCIAL&MFD2,643 #of Lifts per week 64,859 342 3,445 9,627 1,725 4,051 146 7,631 11,974 5,820 17,154 301 Total Route Labor hours year 136,438 685 5,676 19,289 3,248 8,587 311 18,352 27,393 9,806 37,072 659 5,359 #of route hours/year 110,525 643 5,454 14,758 3,224 8,223 304 14,510 20,637 9,500 27,495 653 5,124 #of FTE Routes 57.71 0.38 2.96 7.41 1.79 4.36 0.29 7.31 10.83 5.04 14.34 0.44 3 Tonnage 225,973 3,994 9,605 29,891 7,953 14,869 1,332 29,082 49,226 18,411 50,906 840 9,863 AGENCY SERVICES 4 1,238 1,163 66 247 0 15 #of Lifts per week 3,073 1 4 314 12 10 Total Route Labor hours year 4,160 83 217 863 448 198 256 294 531 154 1,108 0 8 #of route hours/year 4,064 81 212 845 439 194 251 288 520 151 1,084 0 0 #of FTE Routes 1.95 0.04 0.10 0.41 0.21 0.09 0.12 0.14 0.25 0.07 0.52 0.00 0 These statistics are for illustration purposes only. FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N K.DeYaill-INDIRECT COSTS,ONLY EXAMPLE-FOR ILLUSTRATION PURPOSES ONLY IChange inCBA Wages 15.16% Increase inscagcsVehicle Mechanics Change I.CBA Wages 8.20% increase in mages Container Mechanic: Change in CBA Benertss 16,44% Increase in Benefits(Vehicle and Coniamer Mechanics Change in PIR Taxes 8.15% Ixrcases with wages at 8.15%of wages for Indirect Labor Change in Series eiS20150000000001 7,69% memos.in Wages and Benefits net represenkd by CBA Change in Series eiu2030000000000a 5.81% Increase m Workers Compensation Step 1 The first step is to Increase the indirect costs for the prior rate year.This Is done first as the accounts,lifts,pulls do not exist for indirect costs,therefore the Change in Series mpu057303 -19.42% lacrease in Direct Foal allocated costs will be adjusted for accounts,lifts and pulls at each Line of Business Level. 80%of Change in Series cuur0000sao 3.13% Increase in Other Directcosts Fixed-No Chang. 0.00%.Indirect Depreciation-no change 2008 Base Costs 2011 Indirect Costs Example General and Vehicle Container General and Vehicle Container COLLECTION COSTS Administrative Operadom Maintenance Mint-- TOTAL Adrninistreive Operations Maintenance Maintenance TOTAL Annual Cost of Operations Indirect Lobo,-Relined Casts Wages for CEAs S - S - S 1,292,742 S 335,380 S 1,628,122 $ - $ - S 1,488,760 S 362,886 S 1,851,647 Benefits for CBAs S - $ - $ 301,326 S 80352 S 381,678 3 - S - S 350,869 S 93,563 S 444.433. Wags for non-CBAs $ 2,361aN S 1,013,616 $ 244,628 $ 155,301 S 3,774,771 S 2,542,775 S 1,091,550 S 263,437 S 167,242 S 4,065,004 Benefits far n.n-CBAs $ 651.363 S 225,823 S 60.264 S 40.179 S 977.629 S 701.445 S 243,136 S 64,898 S 43,268 S 1n3L797 payroll Taxes $ 192,380 S 82,697 S 125,328 $ 39,998 S 440,403 3 207,236 S 88,961 $ 142,804 S 43.205 S 482.207 Workers Campmuati-lnsuraore S 236,084 S 101,363 S 153,737 S 49,(169 $ 540,253 S 2494797 $ 107,251 $ I62,667 S 51.919 S 571,635 Total Indirect Labor RO-d-Costs S 3,441,053 S 1,423,499 S 2,178.025 $ 700,279 S 7,742.857 $ 3,701,253 S 1,530,949 S 2.473.435 $ 762,084 S 8.467,722 Indirect Fuel Costs S - S 51,129 S 34,086 $ 51129 S 136,344 S - S 41.199 $ 27,466 S 41.199 S 109,865 Other Indirect Costs $ 2,529,540 $ 36,225 $ 24.150 S 36.225 $ 2,626,140 $ 2608.625 S 37358 S 24,905 S 37.358 S 2,703245 Indirect Costs excluding Depreciation $ 5,970,593 S 1.510.853 S 2136.261 $ 787.633 S 10505,341 S 6.309.879 S 1,609306 S 2.525.806 S $40.641 $ 11.285.832 Indirect Depreciadun $ 20,000 S 22.907 $ 44.133 S 78,978 S 166.018 S 20A00 S 22,907 S 44,133 S 78,978 S 166,018 Total Annual Cost of Operations S 5,990 593 S 1,533,760 S 2,280,395 S 866,611 S 10,671359 S 6329,879 S 1,632,412 S 2,549,940 5 919,6 19 S 11,451,850 7.31 Allocation to Service Sector Total Indirect Costs excluding Depr. SFD 3,462.944 876,293 1.297,032 456,827 6,093,098 3,659,730 933,513 1,464,968 487,572 6,545.783 Dataused Commercial&MFD 2,328,531 589,233 872,142 307,177 4,097,083 2,460,853 627,707 985,065 327,850 4,401,474 in B3- Agency 179.118 45 326 G7 088 23.629 315 160 189 296 48.285 75.774 25219 575 Step 2 Total 5,970,593 1,510,853 2.236.7611- 787,633 10505,341 6,309.879 1.609.506 2,525,806 840,641 11185.832 11....ce.I br"0" 0 0 0 0 0 0 4 0 0 0 Indirect Depreciation 96,290 SFD 96,290 Commercial&MFD 64,747 64,747 Agency 4 981 4 981 Total - S 1GG,OlB $ 166,018 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION 1 CITY OF BUR' YME C- C FRANCAISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N K.Detail2-20081NDIRECT COSTS ADIUSTED TO.._C05T5 BY SERVICE SECTOR EXAMPLE-FOR ILLUSTRATION PURPOSES ONLY Step 2 The next step is to update the prior year Line of Business Costs of Operations to include the increased Indirect Costs from Detail 1 The same percentage of total indirect cost will be allocated to each Line of Business lie.Solid Waste,Recyclable Materials) _ SINGLE FAMILY DWELLING SINGLE FAMILY DWELLING 2008 BASE COST 2012 INDIRECT COSTS W�F7d- d Organic M-ib W.AlyUsad Or9aoic Mnl.na4 K.'kblc (iocluNnB Holidn W-Wy Bowery M-Oilond011 T-O.-CAI ReeSxloble (ixludnrg Holidq Weekly B.9a M.WOil Tou On{dl TOTAL SalidWnm MAmds Traasl and Cell Phone Fillers Collecdon E-3 TOTAL COLLECTION COSTS Sdid Wa.k Mmmd. Tn.. and c.n Ph- cnu..dnn E.m1. 4 B c n n � d B C n D ' InJirecl Cost.crdrWin9 D.prccialinn arW lmcrcn 53,462.944 51.171,113 51107,711 51.319.910 54.100 $6.100 540.794 53.659.770 G-.1.nd Admini-fi- 51.108.142 $1,142.772 51.150.315 S5.772 55.772 546.173 $280.414 5299.177 5292,099 SIA60 SIA60 S1L680 $8]6195 5298,724 5309.059 5311.171 51.556 51.556 $11447 S933.513 Operal. 51197,032 5468,790 $493,439 5080.323 52.442 52,402 519,533 SIA64.968 from Dclail l Vehicle Mnimm�owe. SI15,050 5419,020 5032144 52,162 52.162 5117..2 56 515607 $1L9.5.2. SIf2.524 '2 5813 SSM �,7•� C„nlnin..Maim.n.nu $146195 SI50753 S132.27L' SLI SZ6L Tocol tdirect Cusu excluding Deprecia4un and Lneresl $1.949,791 $2.010.722 52,031,031 510,155 510,155 591,241 56,093,099 S2,04,650 S2,I60,I08 52.181.928 $10,910 510,910 $87,277 56,545,793 MFD/Commercial MFD/COmmercial 2011 INDIRECT COSTS 2008 EASE COST UW.od Bin5ned nand Bin and Bm DmP BoxS Ud Dmv Box DmP Box Urpwe aro n-Col Cvland Bin Or9v,dc MamdJ. Dmv Box Wore Rc6eldde Orymic Mnerial. Wnl. RexyJsbl. M-6.1. Callas3ioo Ewru G3aod Bio Salid Ra)xk61e (meludoB Holids5 Dmp Bux SobJ Raeyelobk Omv Bos pgwe Tnv Un-Cdl TOTAL W..k Mucnd. TueQ W.ne Malends FLlvdd. CollcUion Evans. TOTAL COLLECTION COSTS E F c x n x E F c H H H Indian Cusls uxduJiy Depr.eiu4un nM 11-4 $649,649 S64R710 5668.710 S341,W2 566,871 566,810 520,061 52,460,853 Gmcml and Ad.W..dv. 5613,771 $633,75.1 5432,733 S3II.7t14 543.2]5 504.293 SI%.993 $2.]29,531 $17,057 S11,940 S5,117 S627,707 Opemtiuns 5155,314 5160.118 51411,11% $81,640 $16.012 511,209 S4,%114 5599133 5259,650 5367.681 5247,481 $74$163A55 $170,573 S17D.573 9517 526.768 518,738 58.030 S995,U65 V.hick M....'- 5329,895 5234,995 5236,995 $7U.%67 523.7W1 514,590 57.110 5972,142 Sx6.d17 c8_9,090 S89.U90 $93936. 58.909 SL.23G. S2673 $R7,82p 1 Cunlainer Maimcnmu S80%8 S93A72 S83.472 592.57.1 HIE $5 M3 e�M $39L1Z7. Told lmlirtcr CoslxexcludiuB Dcpruiauun and 1,1- 51,079.939 S1.113.338 S1.113.339 $567.%02 S111.3m 517.934 S33A00 54.097,010 51.140.171 $1.194.053 51.194.057 5609.987 5319.605 S83.724 S35.992SJ401.J7J Agency Services lAgency Services 2011INDIREUMSTS 2008 BASE COSTS Solid W.A. MataWs RccydroG Cnn. EreMS Solid W- Moleci4ls RecyeliRg Caw ETeou TOTAL COLLECTION COSTS E a 1 1 .TOTAL E O I 1 Imlirec3 Cads..I din,Deprecia4on and ln... $113,578 528.390 07,859 59465 $189,296 G-WuW Admini.o.4ve S107A71 S26.%68 S35.82A 58.954 5179.119 ue.971 5]1JJ 59.657 S].dld 549.285 Operodons 527,195 SG799 59.045 S124G 515.324 545.465 SI1166 S15.155 53,799 S75.77J Vckcic Mvmm�anu 510153 510.063 $1.3.418 53154 567.088 fmm D.Will 6 S 131 3 535132 $:,783 SS4di S 6L $:�lY enmm�.rMaim.mn.e SIJ.In 315++ 53.72_ 1.9 52..629 ToIW lydirect Casl.excluding Ocprecia4nn anJ lmcasr 5189.096 $.17170 $43.032 SI5.759 $315.160 5101.145 530.786 547.]13 514929 5338.575 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME FRANCIIISE f.REEAIEM FOR COLLECTION SERVICES ATTACI ENTN K 1,_COST CMNGE DUE TO SERVKE LEVEL CNANGES-CURRENFYEARTO NE)RRATE TEAR EXAMPLE-FOR ILLUSTRATION PURPOSES ONLY Done in Rp.<Ypw Ow 8 Thee,aMy epi Th.IM•d step if Yiwrura rnst orape-h-by theauwuYd inwpaae In atto.n bM,pullf it,,5FD Costa arc increased Maedon thange in aanun+s,C9xxer64 MFDare batrpaud.Yon Np cha^{e in EIY,AgencYcoa4 bwpd in the eMn{pin Pullal TM IMlrrupl cost of operaUona aee effected diXeunUY by the clunge In auounY.labor Mlaled Cnq Direcl fuel fawand OIM1er PrectCmlr are pMeMd by 1W%Ot Ue<M1anee munu IN.eM13{nl<tl In YeYow) Indrett caw au edected by 65-f the clxnee in at 4IHIyuIthlMN Greenl Faced cgtl do wtN 9.wiN tlxngn in auounY GFue WaN+ U^dtlNX�4Jx W'df.RmvYr wwtlY Wr11•lac Tw w.CYl a mI a Fal... 5tlwlM tlrl•ecmnu cxr.mre•r 91!01 R 91A01 a 91.x01 01101 0 91..1 9GW'IM tl^f+etnwu ei 90 MI 90.x61 90.x81 90. 90,pa1 a0] Mn em.uwxu 900.w 9M.00 910-W YaO.W 6.3T Pacmw.CMn•x dawwu 1 wu I w•A BI w!S I wK 10aY 109% re•.grrn. 1 wu 1 ax Iwu I.wu I.a% 1.o9x bs•4 1111 063!4 0[M.4 OaPM1 O.dia3 01114 Fn.d Cmr-Nn@ SNGIE FAMILY IING m•-CM ebar•dm nnrueAl•xta••xMaw tlrhencur ad xt+du 1013 mu r rr1 tniwl Gn xaa uum 4 of�ppG+uxW COLLECTION COSTS A.dwallaal•! wry om.rr wwru.r YJdw ratsGtl +.re.i as wmw9dl.]r w..urur M... YH S.ner. ,•9 N.r tarW w.• M.sm ems T.UI R •b YdYJ� Tu. Cdl fes• Qlr Olpb• wom E�acY Annual Cm1.10P11- 11.1A_ Hans Dueu L,6urMIeiN L-wu qy6 Saba+Sa I+1]00 ltl Ua MAIJJ)3 ]3924tl S1Af:JiP SS1a9.1011. M6Y]J3f A. t^9.Y)aB t Ao}33 fLln..3]I BTiIA. fIW. f3+A+w al.lYO U.Ip fb].al] i].124t"r f1Y,N+ to{I.11F ff MpA30 [111x8 3x+6)68 f3..�0 f19dM9 316LfN 11x3}. tiDJ feU 3x6,9)1 W)>.9aU u9)�is fm,IM t33Alffbf_.)+3 y+ZRm SLYL7:E LLit9: ^ EPi3 F2Q.41 HAY]+l TxdPmii+lvi Relnmcw. t3JJ0,Y" WI;x00 3_39].0)1 SIa;]+ ill"]+ 5160.119 39.9•)1.3]1 S.M).il] SiN3.N3 31619.011 fl4n .atT M10.163 f10Af]Saa 0111311x1 Cow t611:S] 1119)31 .5faa6v t1Ll tl.Nl MlA]I flA.,l. fH6J9f f{.Ju S3)2fN -11 33)13 360._x1 tll.1M qumuu•a•�we vss�0 .1M663 2)16.1 f t1N1 {1A11 fuJ] fIAT.TO f3.A9t Slt_]u AX)A6f t4rJ0 il.0o W.-.p SIAn0.n t i1M]R Wal fJ.MI [11]3)09 1308.11) l ffY• {;1]0X9 Lgn•.nmm-Cunwwn • Nli]W fau.]w f3FfW f2Ne f2am tUs;aol Hl)yp0 w.lw Ifxl+.#+ 1x11 Wa mn3 fl}S21V wmlucdlc.uu Eq I.^1 31.IW91 31.190}33 311)1:. MAIf 36A13 flYA9. tl.N!Ru i1,leS3T tLlwlmf IIJII.I. tfA13 MOD L14+Y ffA1A11 wrna(T�IPnnu9d.iJ)1I.•edl.vwu Epurxml(reludn..mwmnrMr p Stl M M to th b� iw�aialmuw 31119910 alo6 t)ASf.I. [LING+ 31113.3® 311141. Y.Ir H.1+1 119)x1 ar�r'IdnA d•nlnxu.r•• i1Mn9 t4lMos91.131t .11. al;ul )In,1. gp1A"_•i IIJY [1,1N t1�U IL9 , f+W.)90 f+Y3.+)q saf9J]s E;a4• 519333 Try+0a,19W rn.9. Fe4.:4a '- ix,+.Y ila3t 3 All [•wxn Mrww�x 31..E 31..999 SiWv m MD 33101 •113x]. _VITA- t101M flMl^. Mu PIF N}a' L+'�u9-i Tad bNnn euw ml 9 Wmww.a.xnacl s2wc,6. f..IMlOe f],te1A]f i...... .10.910 38'1"" MY,a lq S:1M]09 S;1"46w iLlwrn Clava 510.w vTAa fa.mu3 tW luJu.n p .um Cmu aoAl3 a1.lY atan tl. 3160 fllw f)OJU. YL-[ a209) CIN SIN 31)11 ,anW m�pmwew.icw fuuw0e9m 539.t]6 alAf+ a3.w 2391 f.l 33.aa 3119.aa 1x9)]3. S..WI i1LN] IS+" fNf feral 1111.+1+ Taal An...IC.O f0perati.n6 3l,mJ. aJUJ+a 3x..1111 MfAff N1Am Sf1a[AM 3aJHAl3 n}ie-Yf t)JUAM HlFf}pe al.fN aT.Tn sUf1Au fLJ6YAe1 PrnRl(Opvreling R.lin beln t) s ht Af fffaAa9a[ 31]U9416 .,.Uf .,aUf 1119)11.x3 MJNJI9.a fa]JN.i9 tTU30Af SD]ANJa ..9Mle 1111L a a33}+iv iJAA11Ja u 943 h T-1 0lbta C.I.hefnre Pau-Thmu M1Cnrl Allman. 1-1. SI20AI7 .9J11A9) spff+Na 34138.54 a.ttl.3if siaNlA+f Jw0 w TaNe wW a 4otd/9r Bf Carfndud CAage FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRAT'TOR'S COMPENSATION /) CITY OF BUF JME C C ATTACIIMEM'N FlUNC1II5EnGREEOIENf iOP COLLHCTIONSERVICEf EXAMPLE-FOR ILLUSTRATION PURPOSES ONLY H.D—il3-COSTCHANGE DUE TO SERVICE LEVELCHANGES-CURRENTYEARTO NM RATE YEAR D.w dao-no,Dna b TArev,eMy Step 3Tbe Wrd su91s to IweaN wst of opentioN bv!he aswciated inmean In rewunu,uW,PW414.SFDCeau ary 1«aeased bored m cM1ange in acceunu.Ummerc4{Mp0 are ' awd by on Ne NanBe in IIW,AgencYcesu bmMin theSWnBe in pulls) The`ndivldual Nal of opm .,are effected difleren0y by Ne change inacceunu.IaWrRe45ed Cosu.Direct fud[afu and ONer Direct Coiu arc eHecSed by 100%01 dl<Nange i a nu fthllghbld 11'0.-1 µ0lrectfA,u are allected by 65%of SMe eMnee in auoun4(HigNlgh)ed In Green) t'nN pw Fo—oda not change wllM1 cM1ange,In aaeunu C+S mW OM Q{ads sulmN Crry Dua Cmlretl WgNd RenddJe b«Iu010.HeM1d%' DnP Om SWId 0.mlr awall. Oru0ip« �m�H TnrH SB4TW Xaf Id�Y II "41.136.6,] O]6f.0,1 a3?3 1.315 sl) a10 COMMERC1 SBlM1A Xe(li ISMl,MO I.IfagN 159.8« a,aN 1301 101 a01 R931N 619.33 S.IN 35 3393 3aM 61a 34i hraewmera� SW% ?OU% SW'A ?00% 100% 1.1%M Iro%vlf 300% 300% 3.00% 300% 300% S.OM: 300% 65l:HtTa«e ° IY%: 130% IJM. 11Pt IMs: INF. IW% _ FUNcros-5'e CI 4MD tyDWELL ONOIFD/Cm d.it mseg On ING uM1 l.Jlno l.anna 3NV SINd:emmanlel MUM m 00e[vn.,.ue nu vam,r...lelo»e oira slma 11 COAFM p�eP BN Dwm.O TwOaCi W SObd dM.Ye AmOs1M IHAy )q or 9dJ dm?daY. {tl.aen 3e..a COLLECTION COSTS c.nd Bms.M 9�maw ONslm{H�r4oq arias .w mnarwPaa n B.ul as T're 55.1.)+, "5oam' —AC.--ow 3 F C b f^9.9N Iii! »31r,Na mu le,!!Y N0,9-! f0.aN}ss NAIA» fI,3PU9J u}.V91 Na.'rol »AI 3]0.118 fIA).»! i ).315.51? f1.Ni,He uNAal LISA sI,JN 13 "' SIASaAN 'Ri36 fi3,iN SN93af SV.ISd u0.>N Oil- 51..91.956 31A�n 3)K!u Caili S1 Na S1 a93 a ui5}» SINA33 N.eN 333.)9, 1Sule K533f3 f]lOi. SSIf i�S u9]ISM1 NVNo s41 14 � il\elN NINON `° N� fl- N w5.ale sm� sa..eN s)3 ni un- 3. Nn is saN 9m Sa sun "'Tu DAmIN '3"' m s TwaI DmN La.. µa a N30.»9 uKN9 fI31A3) Si>A» f».w N. lf3>1 .. In�ul F«I[mu fN'.3N9 u3R0-3 1119]01 »;a"3 31x9» 39.Na S3f nN f)]19331 ff'sW Kial fla.ta> se5i u3 aur sM10>: M:aAn .. NIAS aNA:s sILNi odn Pmw"mu 3NY]N u3U» fNAi9 »"A. 311Are ».010 fl. - NN}N die Nei »aAu T:.N) iIfAN »�I,a SK;N �� f341N S.N9 _ oep.a.vm-CNrwn vrlddw _ N.I)a saN.w.S �33 s'99 fl f—re) {»AN SIM13L »SMS K1M._la �w!�[Mlue�u Ep f r�iMS3 u.11N u95.'31 St:.N) 315AW Sloiu f))Aaf CIo43N Sfli1N - ' p.m m m ao prn Si• N N N N N N N N -r.cr.I,�ww min fmcam.r E,.w.e l•aaa..mma..,..d N go N N N N N N wM1.aalmnm.a.M wlwra) -N ,93A., tiw cavum u0yvyawreu.prwrer mdluurw N1'A1 Nn.Kr 3 L� »NiIT u. �•aN �)u N»A: ': wumm.wue•e lure NNJIo fa4{111 W s .7 Naj'1 '^AIO fNA61 i'JWA3 �» > FI SIII 6O] 1311.]N NSN.91i fl'Se —12 N.. In 4�^"J^N d ]A�f ilwN}T) SIFOJ� SK9u SI:A) 2119N NAN N'sPc! paANa s-n.IfA S1T116 313A1 34{» NNFN AI 14311 »4'N ra )m l,l sn•.. ygy-^ a= Zu El'e fL"U3 1Pd.3L NE.E83 SQ.9ffi 115..:4 369@ 14.154 e.ail F'SiN" al � SI.Ita1:1 fL194o» 51.19405) ffA9,Ni 5119.W3 fU.'la f]4dc3 H.aO{n SM Ta Tmd lnM1imr Cmu asa µ y eeun.�moor fl O8a i1a.59a fITSM £Rai) fliye 31351 ss.9 WJa:a fIYAN f»!9a Sli.fM K90' 11,:Se IIS)3 ' Teal I--' p wm�tmu NI{ • Nc3T VN. SSI.sW 30.fN sli'T c Ii u,dW uNU uvluv fll,xW N}N 31.3'1 f1.N ti36a ili A�m�uI luOJnnaxwau wrl Amenim.en JOOAd u31aAN ]1 10A1 fi>TAa SNadu »31301 3aA33a1 HL4i1a fiJu.iM SIiTi313 s»lAu 31.1.133 flaiA} 334aNA, Sei»JN u J Taal.\neuvl Con erOPmatinpe 3fIA5T wiA9 SO4Nf NaJSa 31RTli »43aa �_ P-11(OP-11.9 R..i.blew) .17 111— sawdNA MN,W SufAsi SWAN ueiN SIaAf3 sssfu 91a.TMJa a % 903 k Tmelp n a Cn:la bats PurTM1mu hC«I Ail«albm .N4954,a AeAKif »AaJNJs FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME FRANCAISE AGREEFIENT FOR COLLECTION SERV ICE R Deull 3-COST CHANGE DUE M SERVICE IEVEL CHANG FS-CURRENT YEAR TO NEXT RATE YEAR .AT ACHMEM N oww;n ap]e r•«on•A moo p,dr EXAMPLE-FOR ILLUSTRATION PURPOSES ONLY R]ep3 TMp'nd,lep is wl0r•aNcwl olegnU9n by 6.—W innNNin ac9wnu,1lH,,pN4lie.SFD COUare inueased basedrn Nanie in,awnY,Comm Ibl.MFD,re Inue•Nd hypo]ta-N in phs,ABenrynsn b,sM in Ne mange M wpl The IMividu,l wn el9p«,ti9ns,n eNec)ed diMennSly bY]ne clmn8e M auaun3s.labpr talaled W,ts,Nref3 Fuel Cns1s and Oper Dlrcct C9sls Na elle[led bY1f10%pl We 9han8e raw:sYo In,Nwnp IHiinuimm m r•t9w1 «,e Indk•nfmsw are•II•n•d by 65%of]n•cFante auounb(xltbuNkd In Gnen) /«r ]bea Fm,19a9 n91 aNit wip mam•,m,Fnnnu NFL•Lwnand \'nun wl 3ulidWW •FMlnd R. IniGw Enew 3RWFIA 2.959 916 ].959 9!.370 SR\vnlA 1901 APo ;901 99.,01 Clm a 9F.0 li.D9 SRW IFOPo 10051 of 1905 3.(O% 2.R9X !90% wd I]0'A IAs• 130'c IMI: RNw-N.CI MEMRffl AGENCY fE0.vlCf3 kb lndb.a lnrwu• IPot �Cws•r0•nlbro�I]b 5e,afc,lml•na n 3911 tat 1PotCw • Po1lCw1 CDLUMON COMpWlx LRlnw 99mmiraw e.nr.r FaIW w., wNln•,ub x C•n V•ms�,l F. TOTAL fablwuw p xtWm. I FW TOTAL F 1 1 G I t 1 n•d crn•ror«.nw. p u s0.1], i1,.0O 03.111 INJSn !90.100 L•,JN 3.]5) sLltl :N n• N.f l) tIOAI' S>O,NI f]Af] L•JN NI.ON SapiF 51.991 31.611 s11.]�R+ [R ll t;Nf _ S_ 319.115 T fiulll Pnyr,p TIvmO_ N]�11 T•WDuxI UI Rlau.1<ui,.w..n [IMP, 1.]0.40 AI] El wl 53+0.9,rf fI,90N W. SN.9]I a1.+1 i Aw prwl Fua C«u NIJII t]An i1n,09 ESJI9 Tf;IN NIAN NJPo [MNe fLN] F]).Ue 1 dlmr W.s,w• f.CNf N.10 59,]55 [_pF, s,L.] []361 NJ16 W+:O s_.Ipf N;1N Dep•dnw-r-aknwnvkae N1:J5 illPo FIIA"f Jv PoYS f�N N��e CSN Tfm pT•aw,-Cmonw t]])]> tl]Ot NIM. L.]N t35JN N]J]) NJN illnt i_]•u tlSJPo Drynmpw Em ral•e9an E9mqum ' I.w•e(lt 1pnw.p•1 mJ wn ET•Pnw•I.auau sp tl Po M N Po M N N M .nwem.u,, uaYt�•m.lum,and lww] fllf 0, NlJ31 lr3U tHl.)5) m Cun.ma Illi>a Itl3w N]A0 nOwin «. AR9r1 f)J+> N.N) _ i...re fYJ,6 NJ3) ANt fWl! ' • fIf.133 + NSJff iIIJI, - 53� ,.niurM Fl.mmw.. "".;2 S),7P fSAu f1.Y1 !]3119 IHJJ _ 13.10 sl_. •Jf" T1m1111[I cu.x wa�y�9 py,mneunww lona! TYl.laf fw.7N N',]IS f10.9]9 SSf0.f:f ti9f.]f5 NIJa9 fNH3 tl].1+9 Rw_9]] Tay led,ul Depnnwm ee.p [y9Fl f]+) 19.99 FN9 NJ91 _ F],T 3 N.NI Anu4 W aenan wn Ammumuep 11.e1p Nlf 31.10 [136 53.51" 11!19, pnn SU0 FSN 56.31) , Tutt A— Caq ur Openll•n• SNI!>] fll9,Ne fl,),he 5)6},• fDeief NR9A)1 f111Ju [INAu NIJN 171-1 Pnar(Op«•si•p R•Hn hel9w) NSW 1Npf !1415 NJ)f 5)!153 N9J,1 s11J11 NAN] tlllf 1)4]16 Nr Tel•10«•tin[gals Fef«eYw-Thrw hCml Allaf.]inn tufJN sIs3JN Nelle sn,SO su0N ^ FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRArTOR'S COMPENSATION CITY OF BUF IME FTW NCFIISK AGREEhIENT pOR COLLECTION SERVICES ATTACHMENT N K.Detail4-COST CHANGE DUE TO INDEKED CDS)CHANGES EXAMPLE-FOR ILLUSTRATION PURPOSES ONLY Increase Updated Cost of Operations for increases in Attachment K indicies(Step 4) meDA wep, 122J9s 1...-in-s.-Dri+rcm Cb.p e"CDA DemfN ISW+ Lln<m<in Brn<Dls-Drives ChM n in PIR Tme S)7:6 In•T<ue m PIR usq m<mssps.I 8.779:ufnro 1r for D-1 Labrc m Bq W'uu1U)WOunmm�nn 'S x19. hlmwln workm Cu ChM em S<riu+ OS]J07 -1963^.: Inmemein Dvnq Fud RU%ofLTM emawie<mm+lln00vU 11554 bla9vuin Olbcr Dimq mul+ CJmn ein credo m3J63117JR111 blm. De meiWM-u to CPf-\"ea Doe uoM SINGLE FAMILY DWELLING Nb••Alb<meJ Indimm CwU v<u+mueJ f rCPI m SHP 1 Jmo(rum 81 <P.Jl 3013 COST EXAMPLE S.+N<e levalCNn esalM Cost 11--M"es 20]1 COST ADJUSTED FOR SERVICE LEVEL CHANGES Om�c A41+WH qpm<2Y1NW Imcludua flBDdal Nehlr D+ISmY and a'mLi _i,: Tm9 MCM (W,I.dm.Hdia+J' N'NlY amaY and N«US II.d Ablm Tm4 On -CW COLLECTION COSTS E91id Nor+ 0.i d161e 881mW Twl fdlTorn• IT2+/d(lil Flllm Cnll+Nm Ennu TOTAL Som Wmia 0.emdaM�At+brW TC1 Cell Plmn+ OJ mdD Rllm Cnllmu9p E.e+4r e C D D ] Annul Cos!nr Op-ions 7.767.212 W<cl labor-0..1-Cmu Wage for CHAS S2,J9L059 51.951,09 S1.T19.101 59,1.4 59,tl84 SSW,XI 34681535 S;itlU.3J1 53}i5,W1 53.017.010 S'll,lr.1 511408 2J,19Y 53,15U.4YI SIw,213 !086,011 5611,511 S1 5 O+mfY for C0.4 313).130 $6'0.)J3 S519411 L.180 33.110 53C 512 5124115 53)1}14 5190,381 5169,146 1954 5956 551.5/d SW6.Ll3 -a T:9a 5195119 n6L99J 1115.508 uU Sa2i 316,081 )555940 3 r5061 „]I7N4 -.31.0!6 Tl]S Nmtm cnmy+mWnn wmnn< s219 Jm sls<7x1 ituv9s ;ppy 3:3Y $}9.121 NJH_21J �.yE2971P2_ ° - 008_08.]79 sl'1.1s9 --51],1!9 mn4oY S I n1.195 ival Di+ul L+bm RelueJJ:aw w.567.ST1 X915.495 21619.011 S3J..T 514.) "1!0.165 s10.0]2301 W,115.010 SJ,79].Slg Dire,Fu4 CwY 3616.199 S454Ni SS];54a SJ.J15 21115 26416'1 f49w.M1 5530,.W SSII.IT W64J11 51.411 31.6]1 SSS.w9 n,S]L163 vW,Yw 2111.719 51!08,011 SI.n LI.nT 311.M5 "!!!12X9 Wier Uvmn CnrY -� 2116.69[ SJ6LJ89 SJM.04J 21.110 54810 Wl.771 51,089,]19 , 311014 11/4315 sss J.1 08,211 08.115 SIJ.]t0 31359,109 Dmrcuuion-L'nllu4on VeN<lu T71J}97 5106,163 S63d,1X 5].W7 51,54] f)eA93 51139'109 i501,1C1 !SIJ}n W31.Slf S;39T 5259) So t1,W499t O yruia4m•Cm+dnus $473.300 2X4.704 55.),508 F;JJt S-1 S. 51.453}O7 51}61.101 51}4).416 S11.5,W4 SWC 32112 5.),Ial IJ.9nW0] Depeu+4on lm Culle<1ian E9wymrni 51.196.591 SI.IW.947 $1111.730 36oIs 54.015 578.493 51,691,916 gym+ w 211 w TY 50 w So w 10 w so w So w IMireq L-mp rxquJint Ueprceu4on and linue•r f1.179,0U "1,212.161 21}34310 MITI 56.111 N9.111 tJ.614JW OaeN and AGrvni+w4v+ $1,179,M 51.215.868 54X1.130 w.lJl 34111 519.111 S;NI.161 5100,112 UI..IM SJll}]J $1.564 "4566 212535 t9J9.122 0pe++4uv SW4742 0814110 -,EFF SI.116 $1.366 SI;SIS f939.4Xst V+Nge al+inkvnrs w71.956 51MM W91.631 53.451 S;JSI 519A91 51174.869 5153,0)1 2161.95 "161.413 281X8 531 Y'S•J 3Slw to Cuwbnl'nJ+immune S_._ 5161.9.5 1163,621 Sri. 5918 f4W] 394P.867 T- C.. D+PreciaYOn 8081lnmrul 53.104199 511]1.608 52.196.665 510.911 SIo.9tJ $87..96 $6,590.031 53,108.791 "!!)1.690. SL194W5 510.98) $10.90 59].996 36.5911.012 Tuul lndimlO Cuu+ $1 2w U;693 SL4JIJ i+4Y5S Slta tiiu fl.Jrti n�1W <yrcd+Jm 2]4833 531.)16 U20n S1W St. S11. 4 Arvmal Imdur+l<+u+4an Cwl Amn+imum(Fmm A) S39.4U 217,087 SJS,act 5508 5591 SS,nJ SI19,J14 Total Ano.A Cwt nr Up-d- 21,93.909 37}98.906 549.7.9w SJT.]79 w7,TH f1.139A"0 524551,808 S9,MJ.111 5f910�1 r}45211 SJ9}M 5]9/69 51}94930 StJ91fy8 PrvD6IOp9ndne RXNo btlax) S08J}X.If 3.0839)5 5X46.0.69 SfJJ 41.16 SFXF-10 54965.1. SISISQ.11 S1An,OLJ6 5916,131 5119,PI0 ST7],175 51,195 51,185 $111,919 90.5% T-IOtrodn Cnst%bufnra N-T11- hCast 508,081.x14 s>,h1,nS SJI,TN f 1,179}n 5141131,01 514,0831 SI.J 19159 081,610.108 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N E,D l4-COST CHANGE DUE TO INDEXED COST CHANGES EXAMPLE-FOR ILLUSTRATION PURPOSES ONLY In CRA wa . IGz3x h.nae in«.a cmcenam.Rl, u?mG leuem.mlfmmu CI«n eiU Sm539dAD1100(1000DOOi 3]256 IRSSe„em P/R Sauf mSnJw nJ32K of 5n^m Gym rin5mm ci�301000d10nOWa �- S.SIx »✓InveJs,m0.'ar9erJCm fmrn•. ' than c i0 S.n U051101 -19 J25: Incnra m Direct Fud Ilk3,'-R111 iH„ 'TxYr�'s.'?;tftlDfY .OF •d.. .. MULTI-FAMILY DWELLING/COMMERCIAL N--Nluc,lcd 1.6-1 C-me incrcmcJ f«CPI in Sup I dme(ram 82(S1r Jl 2011 CD AWI ED FDR SERNCE LEVEL CI IES Can,ndem Ory. Gn«d Du Dryad. 411 m6u3a156 rn.na eY1 w1.da,rwaa«6 D.e9Dasdie 1lrw ea DI,r'„C9Bw, T«0 fx-c'au cn«w e�5ml6 r,nd eia nSJr.nx.l«.Imi.c DmpwR0a 5ai6 eea Raay.l,u uw em aw.a J...Ea.cll COLLECTION COSTS wm4 ReI,d,wuddr H,JSdmTrtul Wr55 wu,;m )fWru4 Cell«bon E«n1, TOTAL a 0.a 1,Wa T4undr IIal�faeTnnl u 41«1Ya 3lmrddr Collemm Evmu TOTAL G 11 IS H J UE1r Ila G H 11 ) Annnd CUTS of OpOrfOmu D,n I Lbw-Rdaud CmuT. GmI.CON AJHI.HL 11,39239) 5313)91 5316.)69 .54.]91 519.9)6 191.3)) 11.314.634 U9)0,]50 SI.102a03 1110.11.5 110.015 531,184 553,801 SI W.669 VDm ICON 51.0)1.99] S3.012 S742IS $70.911 $13.596 $9.34. 11.20,04 150,116 11,661.3)1 faa3,M1 t35.T11 361.390 TI4.n9 tlunl S)�111 i1�915,165 Pa)ldl Tau 't12w fI01.m1 52931] 116.310 51.691 SLJ91 SJ.6t Hf1JU 322'.026 f1S5A00 31)1)5 Sw.Jn SJ,f25 S2 9G t i5 ISl]J96 w«1m Camp«uadm�5m«u�us ri33.IP SIMy3l1 SJl�1a1 41.51) 5{.4]9 Sly s9.ITl SSSIyJIA S)51ynf SIMJ66 Sl 5!u f3) 1 SI.DSO �4T f_ s5a119J T«J DirtuVMRdn.6imu ri.MP 7 f1,9M743 m9216 SJI)Mf m9,9m -.77, 5111.'1114 ',IIR06! SS ISl.J1 5-309413 54- 5514,U4 T60,490 $SI,Ga2 S15Y Y11 SY JJ238fi - Oincl 1.CmY W.", 'N.49 IUL6n '1.T3 $11211 39.1)5 531.531 SIAOy90l 5445,]12 S]69,45U 196 u11 319,561 512,21) Sl,f4 $)0,49 SI,Ul.tia OIM1er IS'uccllmu w16.49] 3111,614 w1.84 ri8,3ri S120J7 P.762 113.1)) m37.841 D.praSnian-CNIallon V.Wdm 5361904 462620 H11,D51 3]7.ID1 515.890 $10115 $26.730 SIA95,49 Shp«ulian-Cenuin«, 4)0.048 $169.14 5161.]21 SU SO w ",114 M1.391Depr«i,Yun fur Colln4un Egdpnnnt 51.0949P SflL104 S25N.]el -.4. $11,69U SIWIf 513.845 f21U1.111 $0 m w w $0 w m w w m w s9 w s9 su aduLn<Demui«im«d InuuS IndirOmaN aW AMJd,uaYlr $651.061 34)1,103 mn.l. '45,476 W.I. wJ,Jlt 530.112 S2a926J1 (651,061 11177.- fGP,J6 SHS,1J6 w2]10 mill[ 530333 Opeu4om 556>.404 fl]2]w f172]w mS121 til.l]9 512095 SSI81 SWAP 5161.604 STI27w TIP.- 165.121B.512095 Silt) S4f,[Gl Vehidu Mainubmm '61.026 22JL16D 5271.160 SIX- 5P.116 $18.931 SRU! S9w.17p 516,03{ IIJ1.16 '1LIw 11113' 311.116 S169t1 m.Us ri97,eJ0 Cnnnuur Maimamm. ULM 599.211 59a116 S34m 517925 S6.T17 53.791 Ell2.H1 117124 IlLm 17423E 10= 34117 LLW 13'.1' Taui lnd�rtcl Ceru aclud,.g Ucnrui-.1 anJ W-1 5.175,351 5111.603 $1,211,602 m17.917 312.16. 514.811 4. 54,458,69/ 51.1]5.25) 35.2U,6U2 31311,603 561].91) Illl,lw 561.612 46)11 5,,41H,69a Twl hu4n«DrinuSinian Cmu 511.046 $1].59) 517,594 S6,9J.1 SLri9 51.23 $536 36.147 Amual lmphmmu0«1 Cm5 Amartin4w(Farm Al 510.5M '2809 SIL_ wj.6 $ISP "a 5.160 591,111 TDSal Annual C-'of Ope fi-T KIM- SUOOJJ6 'JIMW $IJwAHI SL7JS1 3159,m1 5151301 517,169,731 59.114666 $4,S72,961 53196)43 SIJ4Aw 41465 3163)6 '70.IIB 316J1J,]P PreN(Openrine Rai.11dnw) S95J,i31J1 3451AI7 '3260 31)5,30] '491a 516,737 531369 51102.)46 19tlb,19U 5460.65 4a0.14 3111.195 S2N6] 317J61 SmJ33 51=N5 90.5%Ta1ulU-d, C.-WO PnT Thl.l hCa65 59,628,66 $4,1R1,75J S1149.262 53624241 ]6,1]9 SP7,571 316,9]2,06 SSO,Jn5,IT6 S3,0.12.996 mJ)U,JR6 SI,1m,666 5611.)91 SU2,150 3391,))) 5203)7JI1 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTP A TOR'S COMPENSATION CITY OF BU ME l J R C C � FRANCFIISE AGREEA-0ENT FOR COLLECTION SERVICES ATTACHIvI&NT N K.Deteil4-COST CHANGE DUE TO INDEXED COST CHANGES EXAMPLE-FOR ILLUSTRATION PURPOSES ONLY Chnn•n in CBA Wnn IGS)°A lncrcevn hi.veg0a Chan ein CBA Be4xBls ISJO%e lnana+em BeOef Chnn rrin9macb20130i](HIOODODi 6319:-]ncxelnm PlR LLf4lnvwna8.l3%orpe n Chi cin Sala riu2S1}UOD000DWOx 'S.H1%%limJcucm W9Nm'Cmi mmn "" - ChnncinSmc0WI-11 -19 JY.e lntmmtm D�rtcl Fucl �. •.Y3ydle:'a ]fi'N0>SNt2 Y"IS"8""J'da"{`, 92h AGENCY COSTS Nmm-ABncued I4dinn cora arc inaeascJ fm CPI in Smp 1 Ihr8lKliller and Vann and Publie l�tler and COLLECTION COSTS Snlid lVssie mSTlmcrie4 Relin Cem Erems TOTAL lclid u'a+le nic T(nenels Aewrclm Gia Venun end Etunu TOTAL Aruluxl Cull of OP�raN9ns Dir<m labarvReimW Cnru '309 534,55+ 538.070 59,51] 1190,}50 , fw.@As 593.340 S]A.544 532153 56.188 514,3,]46 51_JI)�JJ Sl.e)4 )e0 S2.fV3 335 903 13anefiu la@N - 5)0.451 5].641 510,311 53.$54 551,085 59.50. 11l]fi S7.iG7 115,33]. E8.1)A SI.OJS 5=.134. S6B2 313.6)0 5]93 PaSroli Tavc3 J1 V.t9r 32 99 SI US 38lF• 1]i'] \\'arAerc COmpe�uauun Luwancc� 59�Rf s2J54 El.]]3 3819 SIN)5 �- SSL JBI 11,3.131 2411 Toul Direv�Lahor RClmeJLoeu 5144.91' 334.))0 5,38.911 5123'.1 $341.859 5149 JJB S i6J 54+35 Se 5[0 P 145 5,31.199 Dh.m Fucl Cu.0 511,913 S7.984 510.448 32442 35.x,3)1 ) �,, O4ur U�rcn Coxa -.241 34,314 58.120 SL103 512102 1%prceuunn-CoBecunn\'eNela 533.1)) 58.308 SI1.U16 33.]49 1553eA D+wnmunx-eanuw9m so w w 50 Eo uum�fur CuDeru9n Egwpmtnl 533.333 58308 f11.0]B E2)G9 $S$,)BB 'U�9 a.�JA ^�r� SO IU SU SV tfm. s0 s0 so 30 SD So Indisw�Cnu«dutling Dcprecia4on aM lnurcvl -1.UN SL,)6J ¢0331 I9,SBH Sl9Lif] GmaalwW Ad.Wrva4a4vc SI19.34 533) 338.)51 59.588 3191.151 546911 pymuvm 539318 S7,337 59.,36) SLJJG 5,3491,3 539.341 51317 59.7Ll 32,4'14 l'cMcle Slmnlwunn 346.055 $11,514 f15.151 53,838 5,34759 5)4055 511.311 513352 S].UI 516,)59 Cnnuina Alainuwitc SIS.IA EJ,A32 S5,109 5121] f35}4i 515,)31 SJ.el2 f3,109 31.iP 535.51) T4u11rWnn1 C9ru excluding pcPr.ua4on and lnlncn f205.]AS 551.,3,38 568.593 511,119 S3J29T 3305.]65 SSI.UB 548.595 51),3)9 S)429]7 Tc1W IMiinl Depmtia4on Cnu 52918 S]6] 5996 3349 Si,9B1 T'-5 AromllmplemmuJims Cam Amvtivucn lFums:U 53,91U 59]8 S1.liq $326 54517 T-I AnnuAC,c1 of OP.'Al- SIR.- 511251! 119011 3!].563 3]54061 3469.488 311],3]6 3154)96 519,130 3)83,)113 Pn1AJ(DP9rRon5;Ratio L9lnxx.) 317311 SH,tlll 515,1,31 53,9!] S].,]34 51928) MAI 314,88 5410 582139 911.5% Tnml O erxHn Cu61x IJ8fnr0 P.,-T,�rnn�h('n.t SJ9],2 6.5,]59 SJI,L9 1828,19] SSIA.l69 5139.693 1112,93' 3+33)0 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME Form 1 -General Proposal Information SBWMA COLLECTION AGREEMENT ATTACHMENT N Section L, Cost Form 1: General Information Recology San Mateo County A.Method of Collection (e.g. manual, semi-automated, fully-automated, etc.) Fully Automated 1. Single-Family Solid Waste Fully Automated 2. Single-Family Recyclable Materials Fully Automated 3. Single-Family Organic Materials B. Collection Vehicle Manufacturer,Model Number, and Year(for each vehicle) 2010 Autocar ACX-84 4 axel Chasis,Dual Drive with Heil 28 fl. Single-Family Solid Waste cubic yard-DP Python Eject Body 2010 Autocar ACX-84 4 axel Chasis,Dual Drive with Heil 28 2. Single-Family Recyclable Materials cubic yard-DP Python Eject Body 2010 Autocar ACX-84 4 axel Chasis,Dual Drive with Heil 28 3. Single-Family Organic Materials cubic yard-DP Python Eject Body 2010 Autocar ACX-84 4 axel Chasis,Dual Drive with Heil 28 cubic yard-DP Python Eject Body. 2010 Autocar ACX-84 4 4. Multi-Family and Commercial Solid Waste axel chasis US Steer only with Heil 40 cubic yard Sierra Eject Body 2010 Autocar ACX-84 4 axel Chasis,Dual Drive with Heil 28 cubic yard-DP Python Eject Body. 2010 Autocar ACX-84 4 5. Multi-Family and Commercial Recyclable Materials axel chasis L/S Steer only with Heil 40 cubic yard Sierra Eject Body 2010 Autocar ACX-84 4 axel Chasis,Dual Drive with Heil 28 cubic yard-DP Python Eject Body. 2010 Autocar ACX-84 4 6. Multi-Family and Commercial Organic Materials axel chasis L/S Steer only with Heil 40 cubic yard Siena Eject Body FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTP^" ,TOR'S COMPENSATION a CITY OF Bl AME 1 Form 'I -General Proposao Information SBWMA COLLECTION AGREEMENT ATTACHMENT N Section L, Cost Form 1: General Information Recology San Mateo County C. Container Manufacturer and Specifications Toter EVR Advanced Rotational Moulding ANSI Standards 1. Single-Family Solid Waste 245.3 or greater Safety,245.6 or greater Compatability with 30%post consumer recycled content Toter EVR Advanced Rotational Moulding ANSI Standards 2. Single-Family Recyclable Materials 245.3 or greater Safety,245.6 or greater Compatability with 30%post consumer recycled content Toter EVR Advanced Rotational Moulding ANSI Standards 3. Single-Family Organic Materials 245.3 or greater Safety,245.6 or greater Compatability with 30%post consumer recycled content Consolidated Fabricators 14 GA.Construction/6"Roller Bearing Casters and Toter EVR Advanced Rotational Moulding 4. Multi-Family and Commercial Solid Waste ANSI Standards 245.3 or greater Safety,245.6 or greater Compatability with 30%post consumer recycled content Consolidated Fabricators 14 GA.Construction/6"Roller Bearing Casters and Toter EVR Advanced Rotational Moulding 5. Multi-Family and Commercial Recyclable Materials ANSI Standards 245.3 or greater Safety,245.6 or greater Compatability with 30%post consumer recycled content Consolidated Fabricators 14 GA.Construction/7content Bearing Casters and Toter EVR Advanced Rota 6. Multi-Family and Commercial Organic Materials ANSI Standards 245.3 or greater Safety,245.6 Compatability with 30%post consumer recycle FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME Form 2-Route and Maintenance Personnel SBWMA COLLECTION AGREEMENT ATTACHMENT N Section L,Cost Form 2: Direct Labor Recology San Mateo County DIRECT LABOR Route and Maintenance Personnel Total Hourly Wage Rate Proposed FTE OT Hrs/FTE/Yr Annual Cost Route Labor Helper $29.30 7 260 $506,597 Driver-Tag $29.93 0 0 $0 Recycling Driver $30.55 71 370 $5,716,259 Commercial Driver $30.55 42 370 $3,381,449 Route Manager $30.55 32 370 1 $2,576,342 Subtotal 152 1,371 $12,180,646 Mechanics-Vehicle Maintenance Senior Mechanic $30.90 10 697 $965,997 Preventive Maintenance Technician $28.05 2 697 $175,380 Welder $29.70 1 697 $92,848 Shop Laborer(Utility) $16.00 1 260 $39,520 Subtotal 14 2,352 $1,273,746 Mechanics-Container Maintenance Senior Mechanic $30.90 0 0 $0 Preventive Maintenance Technician $28.05 0 0 $o Welder $29.70 4 697 $371,393 Shop Laborer(Utility) $16.00 1 1 260 $39,520 Subtotal 5 957 1 $410,913 Total 171 4,681 $13,865,305 BENEFITS&PENSION COST Route and Maintenance Personnel Per-Person Annual Per-Person Annual Benefit Cost Pension Rate Truck Drivers and Helpers Helper $17,398.32 $7,488.00 Driver-Tag $17,398.32 $7,488.00 Recycling Driver $17,398.32 $7,488.00 Commercial Driver $17,398.32 $7,488.00 Route Manager $17,398.32 $7,488.00 Mechanics Senior Mechanic $12,600.00 $6,300.00 Preventive Maintenance Technician $12,600.00 $6,300.00 Welder $12,600.00 $61300.00 Shop Laborer(Utility) $12,600.00 $6,300.00 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME Form 3 e Other Personnel SBWMA COLLECTION AGREEMENT ATTACHMENT N Section L, Cost Form 3e Other Personnel Recology San Mateo County Total Other Personnel (Indirect Costs) proposed FTE CEO/C00 G&A 0 General Manager G&A 1 Controller G&A 1 Office Manager G&A 0 Operations Manager Operations 1 Operations/Route Supervisor Operations 6 Dispatcher Operations 3 Container Distribution Operations 0 Operations Clerk Operations 2 Maintenance Supervisor Maintenance 1 Shop Foreman Maintenance i Recycling Manager G&A 1 Community Relations Manager G&A 0 Recycling/Public Education Coordinator G&A 1 Customer Service Supervisor G&A I Customer Service Representatives G&A 15 Inside Sales G&A 0 Billing and Collections Manager G&A 1 Accounting Clerk G&A 8 Receptionist G&A 1- Safety Manager G&A 1 Other:Residential/Commercial Route Auditor 4 Other:Recycling Coordinators 8 Total FTE 57 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME Form 4-Capital Schedule SBWMA COLLECTION AGREEMENT Section L,Cost Form 4:Capital Schedule Recology San Mateo County Total antity Collection Vehicles LL�jreTotal Total Cost($) Single-Family Solid Waste 22.0 2.0 24.0 $6,420,576 Single-Family Recyclable Materials 22.0 2.0 24.0 $6,420,576 Single-Family Organic Materials 19.0 2.0 21.0 $5,618,004 Multi-Family and Commercial Solid Waste 28.0 4.0 32.0 $8,024,878 Multi-Family and Commercial Recyclable Materials 11.0 2.0 13.0 $3,443,576 Multi-Family and Commercial Organic Materials 4.0 0.0 4.0 $1,062,488 Drop Box-Solid Waste 1.8 0.4 2.2 $449,460 Drop Box-Recyclable Material 0.7 0.4 1.1 $224,730 Drop Box-Organic Material 0.7 0.4 1.1 $224,730 Member Agency Facilities-Solid Waste 1.2 0.4 1.6 $326,880 Member Agency Facilities-Recyclable Material 0.4 0.2 0.6 $122,580 Member Agency Facilities-OrganicMaterial 0.2 0.2 0.4 $81,720 Two On-Call Clean-Up Events(SFD and MFD) 4.0 0.0 4.0 $628,380 describe 0.0 describe 0.0 describe 0.0 Subtotal 115 14 129 $33,048,573 Total Quantity Other Vehicles Active Spare Total Total Cost($) Pickup7Distribution =S.btot.1 0 6 $206,160 Contai0 10 $867,336 Mobile0 4 $217,200 Other: 0 Other: 0 0 20 $1,290,696 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME Form 4-Capital Schedule SBWMA COLLECTION AGREEMENT Section L,Cost Form 4:Capital Schedule Recology San Mateo County Total Quanti Containers Active S are Total Total Cost($) Single-Family Solid Waste 90,461 8,539 99,000 $4,752,000 Single-Family Recyclable Materials 90,461 8,539 99,000 $4,896,000 Single-Family Organic Materials 182,436 11,539 193,975 $5,875,073 Multi-Family and Commercial Solid Waste Carts 16,600 200 16,800 $756,000 Multi-Family and Commercial Recyclable Materials Carts 6,000 200 6,200 $279,000 Multi-Family and Commercial Organic Materials Carts 29,225 200 29,425 $201,428 Multi-Family and Commercial Solid Waste Bins 2,980 40 3,020 $1,615,840 Multi-Family and Commercial Recyclable Materials Bins 2,980 40 3,020 $1,615,840 Multi-Family and Commercial Organic Materials Bins 2,980 40 3,020 $1,615,840 0 $0 Drop Box-Solid Waste p p Drop Box-Recyclable Material 0 0 0 $0 $0 Drop Box-Organic Material 0 0 p $0 Member Agency Facilities-Solid Waste 0 0 0 Member Agency Facilities-Recyclable Material 0 0 0 $0 Member Agency Facilities-Organic Material 0 0 0 $0 0 Other: 0 Other: 0 Other: Subtotal 424,123 29,337 453,460 $21,607,021 Total Total Cost($) Other 0 $300,000 Shop Equipment p $50,000 Computer Equipment p $50,000 Office Furniture&Equipment Cameras for Hillsborough Vehicle(Form 26) 0 0 Other: 0 Other: Subtotal 0 0 0 $400,000 SubTotal 424,258 29,351 453,609 556,346,295 Total Startup Capital Total Cost($) $0 Misc.Start-up Capital Subtotal $0 Total 424,258 29,351 453,609 $56,346,295 Includes all costs-sales tax,delivery,assembly,etc. FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME SBW MATTACHMENT N Form 5•Summary of Costs for Core Collection Services Section L,Cost Form 5:Total Cost Summary �1 Recology San Mateo County Multi-Family and Single-Family Commercial Costs Member Agency Costs in 2008 Dollars Costs(Form 6) (Form 7) Costs(Form 8) Total Costs Annual Cost of Operations Direct Labor-Related Costs Wages for CBAs $6,613,535 $5,406,555 $160,556 $12,180,646 Benefits for CBAs $2,103,521 $1,628,956 $50,084 $3,782,561 Payroll Taxes $550,220 $449,395 $13,363 $1,012,978 Workers Compensation Insurance $661,345 $540,647 $16,054 $1,218,046 Total Direct Labor Related-Costs $9,928,621 $8,025,552 $240,058 $18,194,231 Direct Fuel Costs for Collection Vehicles $1,930,120 $1,379,321 $52,194 $3,361,635 Other Direct Costs $1,077,570 $841,022 $41,277 $1,959,869 Depreciation for Collection Equipment $3,681,816 $2,104,234 $55,388 $5,841,438 Allocated Indirect Costs excluding Depreciation General and Administrative $3,462,944 $2,328,531 $179,118 $5,970,593 Operations $876,295 $589,233 $45,326 $1,510,853 Vehicle Maintenance $1,297,032 $872,142 $67,088 $2,236,261 Container Maintenance $456.827 $307.177 $23.629 $787.633 Total Allocated Indirect Costs excluding Depreciation $6,093,098 $4,097,083 $315,160 $10,505,341 Total Allocated Indirect Depreciation Costs $96,290 $64,747 $4,981 $166,018 Annual Implementation Cost Amortization $119,474 $91,234 $6,517 $217,225 Total Annual Cost of Operations $22,926,987 $16,603,193 $715,574 $40,245,755 Profit $2,406,700 $1,742,877 $75,116 $4,224,692 Operating Ratio 90.5/0 90.5% 90.5/ 90.5% Total Costs before Pass-Through Cost Allocation $25,333,688 $18,346,070 $790,690 $44,470,447 Pass-Through Costs Regulatory&Agency Fees - Disposal&Processing Fees Interest Expense on Agr.8.04,8.05 Capital(Form C) $1,704,607 $1,226,120 $59,811 $2,990,538 Interest Expense on Implementation Cost(Form D) $65,715 $47,268 $2,307 $115,290 Total Pass-Through Costs $1,770,322 $1,273,388 $62,118 $3,105,828 Total Costs $27,104,010 $19,619,458 $852,808 $47,576,275 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME 1 Form 6-Costs for Single-Family Core Collection Services SBWMA COLLECTION AGREEMENT Section L,Cost Form 6:Single Family Dwelling Cost Recology San Mateo County Organic Materials (including Holiday Weekly Battery and Weekly Used Motor Two On-Call TOTAL Solid Waste Recyclable Materials Trees) Cell Phone Oil and Oil Filters Collection Events D D J A B C Costs in 2008 Dollars Annual Cost of Operations Direct Labor-Related Costs $729,836 $623,257 $9,784 $9784 $558,187 $6,613,535 , $2,367,458 $1,937,209 $1,731,113 $200,335 $2,103,521 Wages for CBAs $543,797 $3,148 $3,148 Benefits for CBAs $144,060 $814 $814 $46,469 $550,220 Payroll Taxes $196,844 $161,219 $978 $55,818 $661,345 $193,715 $173,106 $978 - $236,749 $860,809 $9,928,621 Workers Compensation Insurance $2,592,076 $14,724 $14,724 Total Direct Labor Related-Costs $3,530,837 $2,915,400 $639,752 $649,594 $566,680 $3,281 $3,231 $67,533 $1,930,120 Direct Fuel Costs for Collection Vehicles $45 282 $1,077,570 $353,228 $353,662 $316,775 $1,811 $1,811 Other Direct Costs $1,188,597 $1,190,967 $1,211,730 $6,015 $6,015 $78,492 $3,681,816 Depreciation for Collection Equipment _Allocated Indirect Casts excluding Depreciation and Interest(Form 9) $1,154,315 $5,772 $5,772 $46,173 $3,462,944 General and Administrative $1,108,142 $1.142,772 $1 $292,098 ,460 $1,460 $11,634 $876,295 $230,414 $289,177 $2,162 $17,294 $1,297,032 Vehicle Maintenance $761 Operations $428,020 $432,344 $2,162 $415,050, $761 $6,091 $456,827 $146185 $150,753 $152,276 Container Maintenance $1,949,791 $2,010,722 $2,031,033 $10,155 $10,155 $81,241 $6,093,098 Total Allocated Indirect Costs excluding Depreciation and Interest 813 $31 $30, $160 $1,234 $96,290 ,776 $32,097 $160 � Total Allocated Indirect Depreciation Costs(Form 9) $39,426 $37,037 $35,842 $597 $597 $5,974 $119,474 Annual Implementation Cost Amortization(Form A) $36,744 $1,140,614 $22,926,987 Total Annual Cost of Operations $7,732,494 $7,194,158 $6,786,233 $36,744 $811,698.25 $755,187.81 $712,36696 $3,857.15 $3,857.15 $119,733.01 $2,406,700.33 )Profit(insert Operating Ratio below) 90.5% $7,498,600 $40,602 $40,602 51,260,347 $25,333,688 "total Costs before Pass-Through Cost Allocation $8,544,192 $7,949,345 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME SBWMA COLLECTION AGREEMENT Form 7-Costs for Multi-Family and Commercial Core Collection Services Section L,Cost Form 7:Commercial&Multi-Family Dwelling Cost Recology San Mateo County Cart and Bin Organic Carl and Bin Solid Can and Bin Materials Cmcluding Drop Box Recyclable Drop Bos Organic Two On-Call Waste Recyclable Materials Holiday Trees) Drop Box Solid Waste Materials Materials Collection Events TOTAL Costs in 2008 Dollars E F G H H H J Annual Cost of Operations Direct Labor-Related Costs Wages for CBAs $3,315,513 $1,267,248 $346,462 $312,126 $45,873 $29,359 $89,973 $5,406,555 Benefits for CBAs $1,054,899 $378,756 $72,760 $69,545 $14,310 $9,158 $29,528 $1,628,956 Payroll Taxes $275,755 $105,452 $28,645 $25,794 $3,818 $2,444 $7,488 $449,395 Workers Compensation Insurance $331,546 $126723 $3s&l9&l9 $31 210 $44,587 $22,936 $88 997 $540(A7 Total Direct Labor Related-Costs $4,977,712 $1,878,180 $482,515 $438,674 $68,588 $43,896 $135,987 $8,025,552 Direct Fuel Costs for Collection Vehicles $809,959 $328,078 $119,301 $72,475 $14,913 $9,544 $25,050 $1,379,321 Other Direct Costs $467,350 $221,417 $60,679 $57,672 $11,840 $7,610 $14,454 $841,022 Depreciation for Collection Equipment $1,094,972 $572,104 $299,781 $77,407 $15.890 $10,215 $33,865 S2,104,234 Allocated Indirect Costs excluding Depreciation and Interest(Form 9) General and Administrative $613,771 $632,753 $632,753 $322,704 $63,275 $44,293 $18,983 $2,328,531 Operations $155,314 $160,118 $160.118 $81,660 $167012 $11,208 $4,804 $589.233 Vehicle Maintenance $229,885 $236,995 $236,995 $120,867 $23,700 $16,590 $7,110 $872,142 Container Maintenance $80-968 $83"472 $83-47 $42571 $8,347 $5843 $2,504 $307-177 Total Allocated Indirect Costs excluding Depreciation and Interest $1,079,938 $1,113,338 $1,113,338 $567,802 $111,334 $77,934 $33,400 $4,097,083 Total Allocated Indirect Depreciation Costs(Form 9) $17,066 $17,594 $17,594 $8,973 $1,759 $1,232 $528 $64,747 Annual Implementation Cost Amortization(Form A) $46,529 $22,809 $11,860 $6,386 $1,277 $912 $1,460 $91234 Total Annual Cost of Operations $8,493$27 $4,153,519 $2,105,069 51,229,390 $225,601 $151,343 $244,744 $16,603,193 Profit(insert Operating Ratio below) $891,585.72 $436,005 $220,974 $129,052 $23,682 535,887 $25,691 $1,742,877 90.5 Total Costs before Pass-Through Cost Allocation $9,385,112.87 $4,589,524.20 $2,326,042.88 51,358,442.53 $249,282.63 $167,229.67 $270,435.09 $18,346,069.88 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BU' AME ` SBWMA COLLECTION AGREEMENT Section L,Cost Form 8:Agency Service Costs Recology San Mateo County Public Litter and Solid Waste Organic Materials Recycling Cans Venues and Events TOTAL E G I I Costs in 2008 Dollars Annual Cost of Operations Direct Labor-Related Costs $96,334 $24,083 $32,111 $8,028 $160,556 Wages for CBAs $10,017 $2,504 $50,084 Benefits for CBAs $30,050 $7,513 Payroll Taxes $8,018 $2,004 $2,673 $668 $13,363 Workers Compensation Insurance $9,633 $2,408 $3,211 $803 $16,054 Total Direct Labor Related-Costs $144,035 $36,009 $48,012 $12,003 $240,058 Direct Fuel Costs for Collection Vehicles $31,317 $7,829 $10,439 $2,610 $52,194 Other Direct Costs $24,766 $6,192 $8,255 $2,064 $41,277 Depreciation for Collection Equipment $33,233 $8,308 $11,078 $2,769 $55,388 Allocated Indirect Costs excluding Depreciation and Interest(Form 9) $107,471 $26,868 $35,824 $8,956 $179,118 General and Administrative Operations $27,195 $6,799 $9,065 $2,266 $45,326 Vehicle Maintenance $40,253 $10,063 $13,418 $3,354 $67,088 $14,177 $3,544 $4,726 $1,181 $23,629 Container Maintenance Total Allocated Indirect Costs excluding Depreciation and Interest $189,096 $47,274 $63,032 $15,758 $315,160 Total Allocated Indirect Depreciation Costs(Form 9) $2,988 $747 $996 $249 $4,981 Annual Implementation Cost Amortization(Form A) $3,910 $978 $1,303 $326 $6,517 Total Annual Cost of Operations $429,345 $107,336 $143,115 $35,778 $715,574 Profit(insert Operating Ratio below) $45,069 $11,267 $15,023 $3,756 $75,116 91% Total Costs before Pass-Through Cost Allocation $474,414 1 $118,603 1 $158,138 $39,534 $790,690 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME Form 9-Indirect Costs SBWMA COLLECTION AGREEMENT Section L,Cost Form 9:Allocated Indirect Costs Recology San Mateo County General and Vehicle Container Administrative Operations Maintenance Maintenance TOTAL Pro oscd Costs in 2008 Dollars Annual Cost of Operations Indirect Labor-Related Costs WagesforCBAs $ - $ - $ 1,292,742 $ 335,380 $ 1,628,122 $ 301,326 $ 80,352 $ 381,678 Benefits for CBAs Wages for non-CBAs $ 2,361,226 $ 1,013,616 $ 244,628 $ 155,301 $ 3,774,771 Benefits for non-CBAs $ 651,363 $ 225,823 $ 60,264 $ 40,179 $ 977,629 $ 192,380 $ 82,697 $ 125,328 $ 39,998 $ 440,403 Payroll Taxes Workers Compensation Insurance $ 236,084 $ 101,363 $ 153,737 $ 49,069 $ 540,253 Total Indirect Labor Related-Costs $ 3,441,053 $ 1,423,499 $ 2,178,025 $ 700,279 $ 7,742,857 $ _ $ 51,129 $ 34,086 $ 51,129 $ 136,344 Indirect Fuel Costs $ 2,529,540 $ 36,225 $ 24,150 $ 36,225 $ 2,626,140 Other Indirect Costs 1,510,853 $ 2,236,261 $ 787,633 $ 10,505,341 Allocated Indirect Costs excluding Depreciation $ 5,970,593 $ 20 000 $ 22,907 $ 44,133 $ 78,978 $ 166,018 Indirect Depreciation $ ' Total Annual Cost of Operations $ 5,990,593 $ 1,533,760 $ 2,280,395 $ 866,611 S. 10,671,359 Partial Allocation for Forms 6-8 Total Indirect Costs excluding Depr.(to Forms 6-8) SFD 3,462,944.12 876,294.74 1,297,031.61 456,827.20 6,093,097.67 Commercial&MFD 2,328,531.39 589,232.67 872,141.94 307,176.91 4,097,082.92 Agency X72117 80 45,325.59 67 087. 4 23,628. 9 31 5.160.22 $ 5,970,593 $ 1,510,853 $ 2,236,261 $ 787,633 $ 10,505,341 Total Variance s/be"0" S Indirect Depreciation(to Forms 6-8) 96,290.31 SFD 64,746.93 Commercial&MFD 4.980.53 Agency $ 166,018 Total S Variances/he"0" FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTI'-TOR'S COMPENSATION CITY OF Bl j AME Form 10-costs of contract Implementation(Startup) SBWMA COLLECTION AGREEMENT Section L,Cost Form 10:Allocated Startup Costs Annual Recology San Mateo County TOTAL Amortization (Year 1) SFD NIFD Member Agency Costs in 2008 Dollars Total Contract Implementation Cost 26,624 $ 887,453 $ 88,745 Personnel Costs,prior to January 1,2011,start date $ 488,099 $ 372,730 $ 99,441 $ 9,944 2,983 $ 23,057 Wages for CBAs $ 54,693 $ 41,765 $ 230,573 $ 96,841 $ 6,917 $ 3,586 Benefits for CBAs $ 126,815 $ $ 35,855 $ 15,059 $ 1,076 8,665 Wages for non-CBAs $ 19,720 $ $ 86,647 $ Benefits for non-CBAs 36,392 $ 2.599 11,180 $ 47,656 $ 111,800 $ 61,490 $ 1,451,769 $ Payroll Taxes $ 798,473 46,956 $ 3,354 $$ 145,177 $ $ Workers Compensation Insurance 609,743 $ 43,553 $ $ 216300 $ 21,630 , Total Labor Related-Costs 6,489 $ - $ 118,965 $ 90,846 $ $ $ 210000 $ 21,000 , Hiring Costs 8g 200 $ 6,300 $ $ - $ 115,500 $ $ 6,930 Training Materials $ 69,300 $ 29,106 $ 2,079 $ $ 38,115 $ $ 4,138 22,758 Truck,equipment rental $ 41,378 $ $ 17,379 $ 1,241 $$ $ $ 2,100 Fuel Costs 630 $ 21,000 $ 11,550 $ 8,820 $ $ $ Legal $ 630 $ 21,000 $ 2,100 ,550 8,820 $ $ 13,205 11 $ Consultants $ 3,961 $ 132,047 945 72,626 $ 55,460 $ 284 9,451 $ Other'.Facility Lease Costs $ $ Other:Temp Labor $ 5,198 $ 3,969 $ '' $ Other. Securityx Total Implementation Capital Depreciation Costs 65,167 $ 2,172,245 $ 217,225 $ 1,194,735 S 9121343 $ 656,703 $ 115,290 Total Implementation Costs(to Form 6 8) g 65,167 S 2,828,948 $ 332,515 Interest Expense(to Form 5) 912,343 $ g 1,194,735 $ Total Implementation Costs CTION FRATTACHMENTRNE CONTRACTOR'SMENT FOR ECOMPENSATIONS A CITY OF BURLINGAME Form 11 - Debt Service Schedule SBWMA COLLECTION AGREEMENT Section L, Cost Form II: Debt Service & Depreciation Schedule Recology of San Mateo County Annual Interest Cost on Contractor Supplied Equipment (Agreement 8.04, 8.05, Cost Form 4) Financed Purchase Year Depreciation Interest Total 5.5% 1 $6,016,177 $2,990,538 $9,006,715 2 $6,016,177 $2,745,303 $8,761,480 3 $6,016,177 $2,486,236 $8,502,413 4 $6,016,177 $2,212,554 $8,228,731 5 $6,016,177 $1,923,435 $7,939,612 6 $6,016,177 $1,618,008 $7,634,185 7 $6,016,177 $1,295,351 $7,311,528 8 $6,016,177 $954,495 $6,970,672 9 $6,016,177 $594,412 $6,610,589 --� 10 $2,200,702 $214,016 $2,414,718 TOTAL COST $56,346,295 $17,034,348 $73,380,643 #Years 10 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME Form 12- Interest on Startup Costs SBWMA COLLECTION AGREEMENT Section L, Cost Form 12: Interest Schedule on Startup Costs Recology of San Mateo County Year Principal Beginning Annual InterestTotal Balance Amortization Interest Rate% 5.5% 1 $2,172,245 $217,225 $115,290 $332,515 2 $1,955,021 $217,225 $105,836 $323,061 3 $1,737,796 $217,225 $95,849 $313,074 4 $1,520,572 $217,225 $85,298 $302,523 5 $1,303,347 $217,225 $74,152 $291,377 6 $1,086,123 $217,225 $62,377 $279,602 7 $868,898 $217,225 $49,938 $267,163 8 $651,674 $217,225 $36,797 $254,022 9 $434,449 $217,225 $22,916 $240,141 10 $217,225 $217,225 $8,250 $225,475 11 $0 $0 $0 TOTAL COST $2,172,245 $656,703 $2,828,948 FRANCHISE AGREEMENT FOR COLLECTION SERVICES ATTACHMENT N-CONTRACTOR'S COMPENSATION CITY OF BURLINGAME ATTACHMENT O LIST OF CONTRACTOR'S PERSONNEL Non-CBA Employees General Manager--------------- ------------------ 1 Operations Manager----------- ------------------ 1 Customer Service Manager-- ------------------ 1 Commercial Recycling Manager--------------- 1 Public Education Manger----- ------------------ 1 Maintenance Manager--------- ------------------ 1 Accounting Manager----------- ------------------ 1 Community Affairs Manager-- ------------------2 Operation Supervisors--------- ------------------6 Recycling Coordinators-------- ------------------8 Dispatchers--- ------------------- ------------------2 -� Route Auditors------------------- ------------------2 Diversion Auditors -------------- ------------------2 Maintenance Supervisor------ ------------------ 1 Maintenance Clerk-------------- ------------------3 Accounting Staff----------------- ------------------8 Customer Service Representatives ----------- 16 Subtotal------- ------------------- ------------------57 CBA Employees Drivers --------- ------------------- ------------------ 152 Mechanics ---- ------------------- ------------------ 19 Subtotal-------- ------------------- ------------------ 171 Total------------ ------------------- ------------------228 Collection Services Franchise Agreement Attachment O City of Burlingame Contractor's Personnel Page 1 of 1 ATTACHMENT P VEHICLE SPECIFICATION FORMS Vehicle Specifications (Container Fork Truck) (One for each vehicle type. Two pages per form.) 1. Type of Vehicle ❑ Front Loader ❑ Rear Loader ❑ Side Loader ❑ Roll-off ® Container Delivery ❑ 1/2 Ton Pickup ❑ Flat Bed Other 2. Material to be Collected ❑ Solid Waste ❑ Targeted ❑ Organic Waste Recyclables ❑ Bulky Items ❑ C&D Material X Other 3. Age of Vehicle ............................................ 4. New or Used Vehicle ................................... ® New ❑ Used 5. If Used, Date Last Rebuilt ............................ 6. Manufacturer and Model ........................... Freightliner M2-106 W/ 60001b Mast CBS Rotator 7. Will the vehicles be owned, leased or other? Owned 8. Purchase cost of each vehicle................. $111,358 a. Cab and Chassis................................. b. Body................................................. c. Engine.............. ............................... d. Transmission...................................... 9. Color White Cab White Body 10. Cab and Chassis: a. Cab Height ........................................ 94" inches b. Number of Axles (including Tag)............ 02 ❑ 3 ❑ 4 c. Overall Length With Body Mounted ...... 250" inches Franchise Agreement for Collection Services Attachment P City of Burlingame Vehicle Specifications Page 1 of 18 ATTACHMENT P VEHICLE SPECIFICATION FORMS .� Vehicle Specifications (Container Fork Truck) (One for each vehicle type. Two pages per form.) 11. Body: a. Collection Method............................. ❑ Manual ®Automated ❑ Semi-Automated Other b. Rated Capacity....................................... 6000 Ib cu. yd. c. Practical or Net Capacity.......................... 6000 Ib cu. yd. d. No. of collection Compartments................. NIA e. Net Capacity of Each Compartment ........... N/A f. Overall Body Length..................................... 139" g. Body Height ......................................... 60" inches h. Body Width ........................................... 96" inches i. Used Oil Containers and Filter Rack ............ No 12. Weight............... GVW 32,000 lbs. Tare 18.000 lbs. 13. Fuel type............ ... ... M B-20 ❑ Hybrid Gas/Electric ❑ Other 14. Fuel usage.............................................. 4 mpg 15. Emissions rating a. CO...................................................... 0_1 g/bhp/hr b. HC (total hydrocarbons).......................... 0.02 g/bhp/hr c. NO..................................................... 1.09 g/bhp/hr d. Particulate Matter................................... 0.00000 g/bhp/hr 16. Safety Features (list all)............................ Fire Extinguisher/Triangle Kit 17. Spill Containment Kit (list all)..................... Included 18. GPS/Routeware On Board Computer System Yes Franchise Agreement for Collection Services Attachment P City of Burlingame Vehicle Specifications Page 2 of 18 ATTACHMENT P VEHICLE SPECIFICATION FORMS Vehicle Specifications (FLATBED) (One for each vehicle type. Two pages per form.) 1. Type of Vehicle ❑ Front Loader ❑ Rear Loader ❑ Side Loader ❑ Roll-off ❑ Container Delivery ❑ '/z Ton Pickup M Flat Bed Other 2. Material to be Collected ❑ Solid Waste M Targeted ❑ Organic Materials Recyclable Materials M Bulky Items M C&D Material Container/Cart Delive 3. Age of Vehicle ............................................ 4. New or Used Vehicle................................... ® New ❑ Used 5. If Used, Date Last Rebuilt ............................ 6. Manufacturer and Model ........................... Freightliner.M2-106 24ft w 48' sidestakes 7. Will the vehicles be owned, leased or other? Owned 8. Purchase cost of each vehicle................. $78,26.8 a. Cab and Chassis................................. b. Body................................................. c. Engine.............................................. d. Transmission...................................... 9. Color White Cab White Body 10. Cab and Chassis: a. Cab Height ........................................ 94" inches b. Number of Axles (including Tag).........••• ® 2 113 ❑ 4 C. Overall Length With Body Mounted ...... 399" inches Franchise Agreement for Collection Services Attachment P City of Burlingame Vehicle Specifications Page 3 of 18 ATTACHMENT P VEHICLE SPECIFICATION FORMS Vehicle Specifications (FLATBED) (One for each vehicle type. Two pages per form.) 11. Body: a. Collection Method............................. ® Manual ❑Automated ❑ Semi-Automated Other b. Rated Capacity....................................... 8,000 lbs cu. yd. c. Practical or Net Capacity.......................... 8,000 lbs cu. yd. d. No. of collection Compartments................. 1 e. Net Capacity of Each Compartment ........... 8,000 lbsop unds f. Overall Body Length..................................... 288" inches g. Body Height ......................................... 50" inches h. Body Width ........................................... 96" inches i. Used Oil Containers and Filter Rack......... No 12.Weight............... 26,000 16,000 GVW lbs. Tare lbs. 13. Fuel type............ ... ... ® B-20 ❑ Hybrid Gas/Electric ❑ Other 14. Fuel usage.............................................. 4 mpg 15. Emissions rating a. CO...................................................... 00_1 g/bhp/hr b. HC (total hydrocarbons).......................... 0.02 g/bhp/hr c. NO..................................................... 1.09 g/bhp/hr d. Particulate Matter................................... 0.0000 /bhp/hr 16. Safety Features (list all)............................ Fire Extinguisher/Triangle Kit 17. Spill.Containment Kit(list all)..................... Included 18. GPS/Routeware On Board Computer System Yes Franchise Agreement for Collection Services Attachment P City of Burlingame Vehicle Specifications Page 4 of 18 ATTACHMENT P VEHICLE SPECIFICATION FORMS Vehicle Specifications (Flat Bed w/ Boom) (One for each vehicle type. Two page per form.) 1. Type of Vehicle ❑ Front Loader ❑ Rear Loader ❑ Side Loader ❑ Roll-off ❑ Container Delivery ❑ '/z Ton Pickup ® Flat Bed Other 2. Material to be Collected ❑ Solid Waste ®Targeted ❑ Organic Materials Recyclable Materials ® Bulky Items ® C&D Material Container/Cart Delivery 3. Age of Vehicle ............................................ 4. New or Used Vehicle ................................... ® New ❑ Used 5. If Used, Date Last Rebuilt ............................ 6. Manufacturer and Model ........................... Freightliner M2-106 22ft w/ HIAB 035 Knuckle Boom 7. Will the vehicles be owned, leased or other? Owned 8. Purchase cost of each vehicle................. $99,932 a. Cab and Chassis................................. b. Body................................................. c. Engine.............................................. d. Transmission...................................... 9. Calor White Cab White Body 10. Cab and Chassis: a. Cab Height ........................................ 94" inches b. Number of Axles (including Tag)............ 2 ❑ 3 ❑ 4 c. Overall Length With Body Mounted ...... 399„ inches Franchise Agreement for Collection Services Attachment P City of Burlingame Vehicle Specifications Page 5 of 18 ATTACHMENT P VEHICLE SPECIFICATION FORMS Vehicle Specifications (Flat Bed w/ Boom) (One for each vehicle type. Two page per form.) 11. Body: a. Collection Method............................. ® Manual ❑Automated ❑ Semi-Automated Other b. Rated Capacity....................................... 6,000 lbs cu. yd. c. Practical or Net Capacity.......................... 6,000 lbs cu. yd. d. No. of collection Compartments................. 1 e. Net Capacity of Each Compartment ........... 6,000 lbs f. Overall Body Length..................................... 288" g. Body Height ......................................... 50" inches h. Body Width ........................................... 96" inches i. Used Oil Containers and Filter Rack ............ 12.Weight............... GVW 26,000 lbs. Tare 20,000 lbs. 13. Fuel type............ ... ... M B-20 ❑ Hybrid Gas/Electric ❑ Other 14. Fuel usage.............................................. 4 mpg 15. Emissions rating a. CO...................................................... 00_1 g/bhp/hr b. HC (total hydrocarbons).......................... 0.02 g/bhp/hr c. NO..................................................... 1.09 g/bhp/hr. d. Particulate Matter................................... 0.0000 g/bhp/hr 16. Safety Features (list all)............................ Fire Extinguisher/Triangle Kit 17. Spill Containment Kit(list all)..................... Included 18. GPS/Routeware On Board Computer System Yes Franchise Agreement for Collection Services Attachment P City of Burlingame Vehicle Specifications Page 6 of 18 ATTACHMENT P VEHICLE SPECIFICATION FORMS Vehicle Specifications (Shop Truck) (One for each vehicle type. Two pages per form.) 1. Type of Vehicle ❑ Front Loader ❑ Rear Loader ❑ Side Loader ❑ Roll-off ❑ Container Delivery ❑ '/2 Ton Pickup ❑ Flat Bed X Other(Shop Trucks) 2. Material to be Collected ❑ Solid Waste ❑Targeted ❑ Organic Materials Recyclable Materials ❑ Bulky Items ❑ C&D Material X Other 3. Age of Vehicle ............................................ 4. New or Used Vehicle ................................... ® New ❑ Used 5. If Used, Date Last Rebuilt ............................ 6. Manufacturer and Model ........................... GMC 3500 HD 1-Ton w /11' Pacific Body & Lift Gate 7. Will the vehicles be owned, leased or other? Owned 6. Purchase cost of each vehicle................. $54,300 a. Cab and Chassis................................. b. Body................................................. c. Engine.............................................. d. Transmission...................................... 9. Color White Cab White Body 10. Cab and Chassis: a. Cab Height ........................................ 76.3" inches b. Number of Axles (including Tag)............ ® 2 ❑ 3 ❑ 4 c. Overall Length With Body Mounted ...... 265" inches Franchise Agreement for Collection Services Attachment P City of Burlingame Vehicle Specifications Page 7 of 18 ATTACHMENT P VEHICLE SPECIFICATION FORMS -� Vehicle Specifications (Shop Truck) (One for each vehicle type. Two pages per form.) 11. Body: a. Collection Method............................. ❑ Manual ❑Automated ❑ Semi-Automated X Other b. Rated Capacity....................................... 11,400 lbs cu. yd. c. Practical or Net Capacity.......................... 7,620 lbs cu. yd. d. No. of collection Compartments................. N/A e. Net Capacity of Each Compartment ........... N/A f. Overall Body Length..................................... 132" g. Body Height ......................................... 44" inches h. Body Width ........................................... 96" inches i. Used Oil Containers and Filter Rack ............ N/A 12.Weight............... GVW 11,400 lbs. Tare 5,723 lbs. 13. Fuel type............ ... ... ® B-20 ❑ Hybrid Gas/Electric ❑ Other 14. Fuel usage.............................................. 18 mpg 15. Emissions rating a. CO...................................................... N/A g/bhp/hr b. HC (total hydrocarbons).......................... N/A g/bhp/hr c. NO..................................................... N/A g/bhp/hr d. Particulate Matter................................... .01 g/bhp/hr 16. Safety Features (list all)............................ Fire Extinguisher/Triangle Kit 17. Spill Containment Kit (list all)..................... Included 18. GPS/Routeware On Board Computer System NO Franchise Agreement for Collection Services Attachment P City of Burlingame Vehicle Specifications Page 8 of 18 ATTACHMENT P VEHICLE SPECIFICATION FORMS Vehicle Specifications (1/2 Ton Pickup) (One for each vehicle type. Two pages per form.) 1. Type of Vehicle ❑ Front Loader ❑ Rear Loader ❑ Side Loader ❑ Roll-off ❑ Container Delivery ® '/z Ton Pickup ❑ Flat Bed Other 2. Material to be Collected ❑ Solid Waste ❑ Targeted ❑ Organic Materials Recyclable Materials ❑ Bulky Items ❑ C&D Material X Other 3. Age of Vehicle ............................................ 4. New or Used Vehicle ................................... ® New ❑ Used 5. If Used, Date Last Rebuilt ............................ 6. Manufacturer and Model ........................... GMC Hybrid 1500 Extended Cab 7. Will the vehicles be owned, leased or other? Owned 8. Purchase cost of each vehicle................. $34,360 a. Cab and Chassis................................. b. Body................................................. c. Engine.............................................. d. Transmission...................................... 9. Color White Cab White Body 10. Cab and Chassis: a. Cab Height ........................................ 73.8" inches b. Number of Axles (including Tag)............ ® 2 ❑ 3 ❑ 4 c. Overall Length With Body Mounted ...... 229" inches Franchise Agreement for Collection Services Attachment P City of Burlingame Vehicle Specifications Page 9 of 18 ATTACHMENT P VEHICLE SPECIFICATION FORMS Vehicle Specifications (1/2 Ton Pickup) (One for each vehicle type. Two pages per form.) 11. Body: a. Collection Method............................. ❑ Manual ❑Automated ❑ Semi-Automated N/A Other b. Rated Capacity....................................... 7,100 lbs cu. yd. c. Practical or Net Capacity.......................... 1,873 lbs cu. yd. d. No. of collection Compartments................. N/A e. Net Capacity of Each Compartment ........... N/A f. Overall Body Length..................................... 96" g. Body Height ......................................... 50" inches h. Body Width ........................................... 62.5' inches i. Used Oil Containers and Filter Rack ............ Yes 12.Weight............... 7,100 5,227 GVW lbs. Tare lbs. 13. Fuel type............ ... ... ❑ B-20 ® Hybrid Gas/Electric ElOther 14. Fuel usage......unleaded gas ............ 22 mpg 15. Emissions rating a. CO...................................................... N/A g/bhp/hr b. HC (total hydrocarbons).......................... N/A g/bhp/hr c. NO..................................................... N/A g/bhp/hr d. Particulate Matter................................... N/A g/bhp/hr 16. Safety Features (list all)............................ Fire Extinguisher/Triangle Kit 17. Spill Containment Kit (list all)..................... Included 18. GPS/Routeware On Board Computer System No Franchise Agreement for Collection Services Attachment P City of Burlingame Vehicle Specifications Page 10 of 18 ATTACHMENT P VEHICLE SPECIFICATION FORMS Vehicle Specifications (Front End Loader) (One for each vehicle type. Two pages per form.) 1. Type of Vehicle ® Front Loader ❑ Rear Loader ❑ Side Loader ❑ Roll-off ❑ Container Delivery ❑ '/z Ton Pickup ❑ Flat Bed Other 2. Material to be Collected ® Solid Waste ® Targeted ® Organic Materials Recyclableat erials ❑ Bulky Items ❑ C&D Material Other 3. Age of Vehicle ............................................ 4. New or Used Vehicle ................................... ® New ❑ Used 5. If Used, Date Last Rebuilt ............................ 6. Manufacturer and Model ........................... Autocar ACX 84 Chassis L/S Steer with Heil 40 Cubic Yard — Sierra Eject Body 7. Will the vehicles be owned, leased or other? Owned 8. Purchase cost of each vehicle................. $270,000 a. Cab and Chassis................................. b. Body................................................. c. Engine.............................................. d. Transmission...................................... 9. Color White Cab White Body 10. Cab and Chassis: a. Cab Height ........................................ 101.85" inches b. Number of Axles (including Tag)............ ❑ 2 ❑ 3 ® 4 c. Overall Length With Body Mounted ...... 415' inches Franchise Agreement for Collection Services Attachment P City of Burlingame Vehicle Specifications Page 11 of 18 ATTACHMENT P VEHICLE SPECIFICATION FORMS -� Vehicle Specifications (Front End Loader) (One for each vehicle type. Two pages per form.) 11. Body: a. Collection Method............................. ❑ Manual ®Automated ❑ Semi-Automated Other b. Rated Capacity....................................... 28 cu. yd. c. Practical or Net Capacity.......................... 28 cu. yd. d. No. of collection Compartments................. 1 e. Net Capacity of Each Compartment ........... 28 cu. yd f. Overall Body Length..................................... 415" g. Body Height ......................................... 120" inches h. Body Width ........................................... 96" inches L Used Oil Containers and Filter Rack ............ No 12.Weight............... GVW 57,500 lbs. Tare 37,500 lbs. 13. Fuel type............ ... ... ® B-20 ❑ Hybrid Gas/Electric ❑ Other 14. Fuel usage.............................................. 4 mpg 15. Emissions rating a. CO...................................................... 00_1 g/bhp/hr b. HC (total hydrocarbons).......................... 0.02 g/bhp/hr c. NO..................................................... 1.09 g/bhp/hr d. Particulate Matter................................... 0.0000 g/bhp/hr 16. Safety Features (list all)............................ Fire Extinguisher/Triangle Kit 17. Spill Containment Kit(list all)..................... Included 18. GPS/Routeware On Board Computer System Yes Franchise Agreement for Collection Services Attachment P City of Burlingame Vehicle Specifications Page 12 of 18 ATTACHMENT P VEHICLE SPECIFICATION FORMS Vehicle Specifications (Front End Loader) (One for each vehicle type. Two pages per form.) 11. Body: a. Collection Method............................. ❑ Manual ®Automated ❑ Semi-Automated Other b. Rated Capacity....................................... 28 cu. yd. c. Practical or Net Capacity.......................... 28 cu. yd. d. No. of collection Compartments................. 1 e. Net Capacity of Each Compartment ........... 28 cu. yd f. Overall Body Length..................................... 415' g. Body Height ......................................... 120" inches h. Body Width ........................................... 96" inches i. Used Oil Containers and Filter Rack ............ No 12. Weight............... GVW 57,500 lbs. Tare 37,500 lbs. 13. Fuel type............ ... ... ® B-20 ❑ Hybrid Gas/Electric ❑ Other 14. Fuel usage.............................................. 4 mpg 15. Emissions rating a. CO...................................................... 0-1 g/bhp/hr b. HC (total hydrocarbons).......................... 0.02 g/bhp/hr c. NOX.................................................... 1.09 g/bhp/hr d. Particulate Matter................................... 0.0000 g/bhp/hr 16. Safety Features (list all)............................ Fire Extinguisher/Triangle Kit 17. Spill Containment Kit(list all)..................... Included 18. GPS/Routeware On Board Computer System Yes Franchise Agreement for Collection Services Attachment P City of Burlingame Vehicle Specifications Page 12 of 18 ATTACHMENT P VEHICLE SPECIFICATION FORMS —. Vehicle Specifications (4-Axle Roll Off) (One for each vehicle type. Two pages per form.) 1. Type of Vehicle ❑ Front Loader ❑ Rear Loader ❑ Side Loader ® Roll-off ❑ Container Delivery ❑ '/2 Ton Pickup ❑ Flat Bed Other 2. Material to be Collected ® Solid Waste ® Targeted ® Organic Materials Recyclable Materials ❑ Bulky Items M C&D Material Other 3. Age of Vehicle ............................................ 4. New or Used Vehicle ................................... ® New ❑ Used 5. If Used, Date Last Rebuilt ............................ 6. Manufacturer and Model ........................... Autocar ACX-84 Axle Chassis L/S Steer ...� Norcal Waste Equipment 22' Tilt Frame w/ Winch, Rear Stabilizer roller & OBrian Auto Tarp 7. Will the vehicles be owned, leased or other? Owned 8. Purchase cost of each vehicle................. $204,000 a. Cab and Chassis................................. b. Body................................................. c. Engine.............................................. d. Transmission...................................... 9. Color White Cab White Body 10. Cab and Chassis: a. Cab Height ........................................ 101.85" inches b. Number of Axles (including Tag)............ ❑ 2 ❑ 3 ® 4 G. Overall Length With Body Mounted ...... 384" inches -� Franchise Agreement for Collection Services Attachment P City of Burlingame Vehicle Specifications Page 13 of 18 ATTACHMENT P VEHICLE SPECIFICATION FORMS Vehicle Specifications (4-Axle Roll Off) (One for each vehicle type. Two pages per form.) 11. Body: a. Collection Method............................. ❑ Manual ❑Automated ® Semi-Automated Other b. Rated Capacity....................................... 50 cu. yd. c. Practical or Net Capacity.......................... 50 cu. yd. d. No. of collection Compartments................. N/A e. Net Capacity of Each Compartment ........... N/A f. Overall Body Length..................................... 290" g. Body Height ......................................... 57.75" inches h. Body Width ........................................... 96" inches i. Used Oil Containers and Filter Rack ............ No 12.Weight............... GVW lbs. Tare 54,500 30,000 lbs. 13. Fuel type............ ... ... ® B-20 ❑ Hybrid Gas/Electric ❑ Other 14. Fuel usage.............................................. 4 mpg 15. Emissions rating a. CO...................................................... 001 g/bhp/hr b. HC (total hydrocarbons).......................... 0.02 g/bhp/hr c. NO..................................................... 1.09 g/bhp/hr d. Particulate Matter................................... 0.0000 g/bhp/hr 16. Safety Features (list all)............................ Fire Extinguisher/Triangle Kit 17. Spill Containment Kit(list all)..................... Included 18. GPS/Routeware On Board Computer System Yes Franchise Agreement for Collection Services Attachment P City of Burlingame Vehicle Specifications Page 14 of 18 ATTACHMENT P VEHICLE SPECIFICATION FORMS .� Vehicle Specifications (Rear End Loader) (One for each vehicle type. Two pages per form.) 1. Type of Vehicle ❑ Front Loader ® Rear Loader ❑ Side Loader ❑ Roll-off ❑ Container Delivery ❑ '/Z Ton Pickup ❑ Flat Bed Other 2. Material to be Collected ® Solid Waste ® Targeted ❑ Organic Materials Recyclable Materials ❑ Bulky Items ❑ C&D Material Other 3. Age of Vehicle ............................................ 4. New or Used Vehicle ................................... ® New ❑ Used 5. If Used, Date Last Rebuilt ............................ 6. Manufacturer and Model ........................... Chassis-Autocar ACX 84 Body- Heil Durapack Formula 5000 7. Will the vehicles be owned, leased or other? Owned 8. Purchase cost of each vehicle................. $273,000 a. Cab and Chassis................................. b. Body................................................. c. Engine.............................................. d. Transmission...................................... 9. Color White Cab White Body 10. Cab and Chassis: a. Cab Height_.....::................................ 101.85" inches b. Number of Axles (including Tag)............ ❑ 2 ❑ 3 ® 4 c. Overall Length With Body Mounted ...... 364" inches Franchise Agreement for Collection Services Attachment P City of Burlingame Vehicle Specifications Page 15 of 18 ATTACHMENT P VEHICLE SPECIFICATION FORMS Vehicle Specifications (Rear End Loader) (One for each vehicle type. Two pages per form.) 11. Body: a. Collection Method............................. ❑ Manual ❑ Automated ® Semi-Automated Other b. Rated Capacity....................................... 25 cu. yd. c. Practical or Net Capacity.......................... 25 cu. yd. d. No. of collection Compartments................. 1 e. Net Capacity of Each Compartment ........... 25 cu. yd. f. Overall Body Length..................................... 270" g. Body Height ......................................... 96" inches h. Body Width ........................................... 96" inches L Used Oil Containers and Filter Rack ............ No 12.Weight............... GVW 54,000 lbs. Tare 36,000 lbs. 13. Fuel type............ ... ... M B-20 ❑ Hybrid Gas/Electric ❑ Other 14. Fuel usage.............................................. 4 mpg 15. Emissions rating a. CO...................................................... 001 g/bhp/hr b. HC (total hydrocarbons).......................... 0.02 g/bhp/hr c. NO..................................................... 1.09 g/bhp/hr d. Particulate Matter................................... 0.0000 g/bhp/hr 16. Safety Features (list all)............................ Fire Extinguisher/Triangle Kit 17. Spill Containment Kit(list all)..................... Included 18. GPS/Routeware On Board Computer System Yes Franchise Agreement for Collection Services AttachmentP City of Burlingame Vehicle Specifications Page 16 of 18 ATTACHMENT P VEHICLE SPECIFICATION FORMS .� Vehicle Specifications (Side Loader) (One for each vehicle type. Two pages per form.) 1. Type of Vehicle ❑ Front Loader ❑ Rear Loader ® Side Loader ❑ Roll-off ❑ Container Delivery ❑ '/z Ton Pickup ❑ Flat Bed Other 2. Material to be Collected ® Solid Waste ®Targeted ® Organic Waste Recyclables ❑ Bulky Items ❑ C&D Material Other 3. Age of Vehicle ............................................ 4. New or Used Vehicle ................................... ® New ❑ Used 5. If Used, Date Last Rebuilt ............................ 6. Manufacturer and Model ........................... Heil DP Python 7. Will the vehicles be owned, leased or other? Owned -� 8. Purchase cost of each vehicle................. $270,000 a. Cab and Chassis................................. b. Body................................................. c. Engine.............................................. d. Transmission...................................... 9. Color White Cab White Body 10. Cab and Chassis: a. Cab Height ........................................ 101.85" inches b. Number of Axles (including Tag)............ ❑ 2 ❑ 3 ® 4 c. Overall Length With Body Mounted ...... 378" inches 11. Body: a. Collection Method............................. ❑ Manual ®Automated ❑ Semi-Automated Other Franchise Agreement for Collection Services Attachment P City of Burlingame Vehicle Specifications Page 17 of 18 ATTACHMENT P VEHICLE SPECIFICATION FORMS Vehicle Specifications (Side Loader) (One for each vehicle type. Two pages per form.) b. Rated Capacity....................................... 28 cu. yd. c. Practical or Net Capacity.......................... 28 cu. yd. d. No. of collection Compartments................. 1 e. Net Capacity of Each Compartment ........... 28 cu.yd f. Overall Body Length..................................... 284» g. Body Height ......................................... 103" inches h. Body Width ........................................... 96" inches i. Used Oil Containers and Filter Rack ............ Yes 12.Weight............... GVW 58,000 lbs. Tare 35,000 lbs. 13. Fuel type............ ... ... ® B-20 ❑ Hybrid Gas/Electric ❑ Other 14. Fuel usage.............................................. 4 mpg 15. Emissions rating a. CO...................................................... 0-1 g/bhp/hr b. HC (total hydrocarbons).......................... 0.02 g/bhp/hr c. NO..................................................... 1.09 g/bhp/hr d. Particulate Matter................................... 0.0000 g/bhp/hr 16. Safety Features (list all)............................ Fire Extinguisher &Triangle Kit 17. Spill Containment Kit(list all)..................... Spill Kit Included 18. GPS/Routeware On Board Computer System Yes Franchise Agreement for Collection Services Attachment P City of Burlingame Vehicle Specifications Page 18 of 18 ATTACHMENT Q UNSCHEDULED SERVICES For Rate Years Two (2012) through Ten (2020), the fixed costs specified in this Attachment, with the exception of costs for Community Drop-Off Events and Collection for Agency- Sponsored and Non-Agency sponsored Large Events (Section 5.13), shall be adjusted to reflect 100% of the one (1) year change in the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index — All Urban Consumers, U.S. city average (not seasonally adjusted, all items, base period: 1982-84=100, series no. cuur0000sa0). The one .(1) year change shall be calculated as the average index change between this index for May of prior year and April of current year (i.e., twelve (12) months). For Rate Years Two (2012) through Ten (2020), the costs specified in this Attachment for Community Drop-Off Events and Collection for Agency- Sponsored and Non-Agency sponsored Large Events (Section 5.13) shall be adjusted to reflect the year-over-year percentage change in Total Contractor's Compensation on Attachment N Form A- SBWMA Summary. Unscheduled Service Reference Cost Description of Cost Category Single-Family Dwelling Section Backyard Collection Service 5.02.A See table below See table below A—51 to 100 feet from A— 10% of base access by Contractor's Distance Charge for MFD and Sections monthly Rate collection vehicle Commercial Accounts 5.02.13 and 5.02.0 B—25%of base B—101 feet or more from monthly Rate access by Contractor's collection vehicle 25% of the base Extra Pick-up Cost for MFD and Section monthly Rate for the Commercial Customers 5.02.13 and size of Container Per Collection event 5.02.0 Collected once per week Single-Family Return Trip Cost (i.e., request to provide Collection service after the Section $15.00 Per Collection event regularly scheduled Collection 5.02.A day) Franchise Agreement for Collection Services Attachment Q City of Burlingame Unscheduled Services Page 1 of 5 ATTACHMENT UNSCHEDULED SERVICES Unscheduled Service Reference Cost Description of Cost Category A—monthly rental fee (any A—$3.00 size Cart) Additional Targeted Recyclable Sections B—Customer purchase of a Materials or Organic Materials 5.03.A and B—$63.00 64 gallon Cart Cart Rental or Purchase 5.04.A C—$69.00 C—Customer purchase of a 96 gallon Cart Cost based on providing service to one(1) Collection route of approximately 512 Accounts: 848.00 Universal Roll-Out for MFD and Sections A- $221, A—Annual Vehicle Cost (all Commercial Customers 5.03.13 and B-$4,772.00 inclusive) 5.03.0 C-$6,175 B—Annual Cost of Containers C—One-time start-up charge Additional Confidential Document Destruction Service Section 5.07 $1,200.00 Per event Event A—one-way only delivery A—$125.00 (compost only left on-site) Additional Compost Material Section 5.11 Delivery B—$250.00 B—Round-trip delivery (Drop-Box left on-site) Fee for Service On-Call Bulky Item Collection Service Section 5.12 $81.55 Per event Per event targeting 5,000 CommunityDrop-Off Events households. Does not p Section 5.13 $17,000.00 include disposal or public education expenses. Franchise Agreement for Collection Services Attachment Q Unscheduled Services City of Burlingame Page 2 of 5 ATTACHMENT UNSCHEDULED SERVICES Unscheduled Service Reference Cost Description of Cost Category A—one-day events with a projected 2,500 or fewer attendees B—one (1) or two (2) day A—$3,000.00 Collection for Agency- events with a projected Sponsored and Non-Agency Section 5.13 B—$5,000.00 2,501 to 7,500 attendees sponsored Large Events per day C—$7,500.00 C —one (1) or two (2) day events with a projected 7,501 to 10,000 attendees per day 25% of the base Per Collection event monthly Rate for the Fee to Collect Contaminated Section size of Container Targeted Recyclable Materials 6.03.A and Collected once per or Organic Materials Container 8.02.F week Plus $15.00 Monthly cost: Key Service Section A—$8.50 A—Residential Customers 8.02.B B—$9.50 B—Commercial Customers Lock purchase fee (replacement at no additional Section $17.00 One-time per Account cost. cost) 8.023 Overage Fee Section 100% of the base Per Collection event 8.02.G monthly Rate Section 50% of the base Overage Bags Cost monthly Rate or$8.00 Per bag 8.02.G minimum Container Cleaning Fee Section A—$50.00 A—per Cart 8.05.D B-$85.00 B—per Bin or Drop-Box Franchise Agreement for Collection Services Attachment Q City of Burlingame Unscheduled Services Page 3 of 5 ATTACHMENT UNSCHEDULED SERVICES Unscheduled Service Reference Cost Description of Cost Category A—$65.00 A—per 32 gallon Cart Dirty Cart Replacement Cost Section B—$75.00 B—per 64 gallon Cart 8.05.D C—$85.00 C—per 96 gallon Cart a. Franchise Agreement for Collection Services Attachment Q City of Burlingame Unscheduled Services Page 4 of 5 ATTACHMENT Q UNSCHEDULED SERVICES Backyard Collection Service Distance Costs for Single-Family Dwellings (Section 5.02.A) One (1) Solid Two (2)Solid Three(3) Solid Four(4) Solid Waste Cart Waste Carts Waste Carts Waste Carts Base monthly Base monthly Base monthly Base monthly Curbs ®i from Solid Waste Solid Waste Solid Waste Solid Waste Curbside Rate plus Rate plus Rate plus Rate plus 0—50 feet $18.00 $28.72 $57.44 $86.16 51-100 feet $21.00 $31.72 $60.44 $89.16 101-150 feet $24.00 $34.72 $63.44 $92.16 151 —200 feet $27.00 $37.72 $66.44 $95.16 201 —250 feet $30.00 $40.72 $69.44 $98.16 251 —300 feet $33.00 $43.72 $72.44 $101.16 301 feet or more $36.00 $46.72 $75.44 $104.16 Franchise Agreement for Collection Services Attachment Q City of Burlingame Unscheduled Services Page 5 of 5 A � CITY oh STAFF REPORT Bl1RL�NC3AME AGENDA ITEM# 8d MTG. DATE 11/02/09 TO: HONORABLE MAYOR AND CITY COUNCIL SUBMITTED BY: Jack VanEtten,Chief of Police DATE: October 28,2009 APPROVED FROM: Don Shepley, Director of Traffic By: Jim Nantell,City Manager SUBJECT: Permanently Adopt a Residential Parking Permit Program by Resolution RECOMMENDATION: Staff recommends the Burlingame City Council adopt a resolution to establish a permanent Residential Parking Permit Program (RPPP). The RPPP was established as a pilot program in 2008. DISCUSSION: In February 2008, Council approved a pilot program for a RPPP to be implemented on the 200 through 400 blocks of Occidental and the 1200 and 1400 blocks of Bellevue. Staff discussed the need to allow residents the opportunity to park in front of their residence(s) without time restrictions. Daytime parking permits allow residents to park on their block without being issued a citation for violating a time restriction. In 2008, 17 residents were issued permits. In 2009, 15 residents were issued permits. Residents were issued (2) permits per household. In August 2009, Public Works conducted a survey to determine the impact of the RPPP. It was found that Bellevue experiences a high usage of the on-street parking inventory. RPPP has had a positive impact for the residents in this area. Occidental has an unused parking inventory. RPPP has not had a negative impact for the residents in this area. RPPP has shown it is in line with the City's parking philosophy to provide a safe, orderly, and convenient parking environment for residents, businesses and visitors within the city while keeping the streets primarily for safe and efficient traffic flow. BUDGET IMPACT: During the pilot program, it was demonstrated that this program is cost neutral. ATTACHMENTS: Resolution and Exhibit B Municipal Code 2008 Residential Parking Permit Program Staff Report Residential Parking Permit Program Document RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME PERMANENTLY ESTABLISHING PREFERENTIAL PARKING AREAS AND POLICIES TO BE APPLIED IN CONNECTION WITH THOSE AREAS WHEREAS, pursuant to Vehicle Code § 22507,the City Council adopted Section 13.36.070 to authorize the City Council to establish preferential parking areas and policies with regard to such areas; and WHEREAS,pursuant to Section 13.36.070,the City Council established preferential parking areas as shown in Exhibit A attached hereto,thereby exempting qualified residents of those areas from adhering to parking time limits as established in Chapter 13.36 of the Municipal Code; and WHEREAS, Resolution 21-2008 establishing the preferential parking areas requested that the City Manager report to the City Council on the effectiveness and usefulness of the preferential parking program and make any recommendations for changes that the City Manager believes should be made to the program; and WHEREAS,the Chief of Police and the City Manager have reviewed the effectiveness, usefulness and operations of the preferential parking program over the past year and a half and have determined that the program has been effective and useful and have recommended that the program should be permanently established; NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF BURLINGAME RESOLVES AS FOLLOWS: 1. The preferential parking permit program,as authorized under Municipal Code Section 13.36.070, is permanently established for the areas shown on Exhibit A attached hereto. 2. The policies and procedures for the preferential parking program,contained in Exhibit B attached hereto,are permanently established. Mayor I,Mary Ellen Kearney,City Clerk of the City of Burlingame,do hereby certify that the foregoing Resolution was introduced at a regular meeting of the City Council held on the day of ,20_,and was adopted thereafter by the following vote: AYES: Councilmembers: NOES: Councilmembers: ABSENT: Councilmembers: Mary Ellen Kearney,City Clerk 1 EXHIBIT B POLICIES AND PROCEDURES REGARDING THE PREFERENTIAL PARKING PERMIT PROGRAM A. FORM OF PERMIT The permit shall consist of a placard to be affixed to the rear view mirror of the vehicle of the resident or guest. B. ISSUANCE OF PERMIT In order to obtain a permit, a resident will submit the following: 1. A complete application form in the resident's name and address, and signed by the resident seeking the permit. 2. A copy of the current registration with a Department of Motor Vehicles for each vehicle for which the applicant is requesting a permit. 3. Proof of residency of the applicant in the preferential parking permit area. Acceptable proof of residency includes: Vehicle registration Utility Billing Car insurance policy Lease agreement Copy of a preprinted check with financial institution showing the resident's name and address 4. Payment of the fee set by Council resolution prior to issuance of the permit. Permits will be issued on a calendar year basis regardless of when in the year they are actually issued. C. NUMBER OF PERMITS The maximum number of permits that shall be issued to one home or residence is two,regardless of the number of persons who may actually reside in the home or residence. Each apartment or condominium unit is considered a residence for purposes of these policies. D. EFFECT OF PERMIT 1. Authorized display of the preferential parking permit exempts the motor vehicle on which the permit is displayed from compliance with the parking limits established in the preferential parking area for which the permit was issued only for on-street parking as follows: —Any one-hour parking zone —Any two-hour parking zone A-1 —Any four-hour parking zone 2. The permit does not exempt the motor vehicle on which the permit is displayed from any other parking restrictions in the preferential parking area,such as loading zones,no parking zones,or disabled parking zones,nor for any other limits on parking,such as vehicle heights. In particular,display of the parking permit does not exempt any motor vehicle from the requirement that a vehicle be moved no less often than every 72 hours. 3. The permit does not apply in any way to any parking space for which there is a parking meter or other payment device applied. 4. The permit does not apply for the parking of any vehicle,except a motor vehicle as defined in the Vehicle Code,and finther a permit shall not be issued or displayed for use on any camp trailer,motor home,or commercial vehicle. 5. The preferential parking permit does not provide any warranty or representation that parking of any kind will be available to the holder of the permit. 6. In order to be exempt,the permit must be attached to the rear view mirror of the motor vehicle and readily visible from the front of the vehicle. D. USE OF PERMIT The person to whom the permit is issued may: I. Use the permit for the person's own household;or 2. Provide a permit to a person who is working in the home or residence for use during the time that the person is actually performing work in the home or residence;or 3. Provide a permit to a guest who is temporarily visiting the home or residence for use during the period that the person is actually visiting the home or residence. E. REVOCATION OF PERMIT If the Chief of Police,or the Chief s authorized representative,determines that one or more permits are being used by persons who are not eligible or have been misused or transferred in violation of the Municipal Code or this policy,the Chief may revoke the permit or permits by giving written notice to the person to whom the permit was issued. The holder of the permit may request a meeting with the Chief of Police to present the holder's position;after considering the holder's presentation,the Chief may affirm the revocation or rescind the revocation.The decision of the Chief shall be final and binding on the permit holder. Upon revocation,the permit holder will return all permits to the Burlingame Police Department. F. CANCELLATION OF PERMITS The preferential permit program may be cancelled and polices may be changed at any time,with or without notice to the permit holders. Permit holders have no property right in the permit. A-2 13.36.070 Preferential parking zones. Page 1 of 1 Burlingame Municipal Code Up Previous Next Main Search Print No Frames Title 13 VEHICLES AND TRAFFIC Chapter 13.36 PARKING LIMITATIONS 13.36.070 Preferential parking zones. (a) The city council may establish by resolution preferential parking zones that would exempt the motor vehicles of residents and the residents' guests on designated streets from the restrictions of time-limited parking contained in Section 13.36.030, 13.36.0405 13.36.042, or 13.36.043, or any combination thereof that the council may deem appropriate that applies on the designated streets. (b) However, nothing contained in such a resolution shall allow or be construed to allow any motor vehicle of a resident or a resident's guest to be exempt from any parking meter, no parking designation, seventy-two (72) hour parking limit, or any other parking limitation or curb marking except as specifically listed in the preferential parking zone policy for the specified streets. (c) Preferential parking zone permits will be issued on a calendar year basis, and a fee as established by resolution of the city council shall be paid for each permit, permit renewal, and permit reissuance. (d) It is unlawful for any person to: (1) Alter, forge, counterfeit, or falsify any parking permit relating to a preferential parking program or display or cause or permit to be displayed any such altered, forged, counterfeited or false permit with intent to represent the permit has been issued by the city. (2) Transfer, loan, sell, or otherwise provide a parking permit relating to a preferential parking program to a person who is not eligible for such a permit under the terms of the preferential parking program, or to display or cause or permit to be displayed any such unlawfully transferred permit. (3) Display or cause or permit to be displayed any parking permit relating to a preferential parking program when the person knows or has reason to know that the person is not eligible or is no longer eligible to display or cause or permit the permit to be displayed. (Ord. 1819 § 2, 2008)) http://qcode.us/codes/burlingame/view.php?topic=l3-13_36-13_36_070&frames=on 10/28/2009 STAFF REPORT BURLJNGAME AGENDA ITEM# MTG. DATE 3/3/2008 TO: HONORABLE MAYOR AND CITY COUNCIL SUBMITTED BY Jack Van Etten,Chief of Police DATE: February 25,2008 APPROVED t FROM: Sgt.Dean Williams,Director of Traffic BY Jim Nantell,City Manager Id,/` SUB.IECT: Public hearing to approve a new Ordinance establishing a Residential Parking Permit Program (section 13.36.070); Adoption of a Resolution establishing policies and procedures for the program; Adoption of a 2nd Resolution setting the fee structure for the program. RECOMMENDATION: Staff recommends that the City Council hold a public hearing and take action to approve a new ordinance (section 13.36.070) establishing a Residential Parking Permit Program. Council should also adopt a Resolution establishing the policies and procedures for the program, as well as a 2nd Resolution setting the fee structure of the program. The proposal to council would allow the issuance of daytime parking permits for residents living in areas near business districts with time restricted parking. As part of the proposal, staff is recommending a 6 month "pilot"or trial period on a limited basis in the 200-400 blocks of Occidental Ave. and the 1200-1400 blocks of Bellevue Ave.During the trial period staff will monitor the program and report back to council the results of the program, its effectiveness and any recommendations or changes. DISCUSSION: In the past, daytime restricted residential parking areas near business districts have caused residents to move their vehicles within the posted time restrictions. As a result of receiving requests and/or complaints from the public on this issue, staff discussed the need to allow residents the opportunity to park near their residence(s) during daytime hours without time restrictions. Staff agreed that it is unfair to limit a person's right to park near his/her residence simply because they reside in or near a business district. Currently, residents in these areas (and their guests)are required to move their vehicles within the posted time limitation or risk receiving a parking citation. The police department and other city staff have, without success, attempted to change/alter the time restrictions in some areas to resolve this problem and accommodate residents. Staff believes this Residential Parking Permit Program will meet the interests of the affected residents living in these areas. Specifically,this pilot program would allow residents to park their vehicles near their residence during daytime hours without fear of receiving a citation for violating a time restriction. Staff held numerous meetings regarding the development of this program. Included in these meetings was a public meeting held at the Burlingame Recreation Center on January 23 of this year(see attachment"1" for public comments/questions, permit information and forms). This program was also introduced and discussed at a Traffic, Safety and Parking Commission meeting. It should be noted that the TSP Commissioners supported the idea of a Residential Parking Permit Program and there were no notable objections from the public. Staff recommends beginning this program on a 6 month"pilot"or trial basis in limited areas; specifically in the 200-400 blocks of Occidental Ave. and in the 1200-1400 blocks of Bellevue Ave. (refer to attached Exhibit"A"). Staff feels that these two areas(incorporating neighborhoods that are in a residential area and an apartment area)provide different and diverse location areas for a true analysis of the effectiveness of the program. One longtime concerned resident with restricted parking times actually resides in one of these pilot areas. Staff has developed a Residential Parking Permit Program(see attachment"2"Policy and Procedures packet). Staff believes the proposed Residential Parking Permit Program is fair and in line with the parking and traffic goals of our city. The following is a summary of the program: The program is entirely"voluntary" and we are recommending a 6 month pilot program on a limited basis. As previously mentioned,the initial pilot program will include the 200-400 block of Occidental Ave. and the 1200-1400 block of Bellevue Ave. Prior to the implementation of this pilot program, Public Works will conduct parking survey(s)in the affected areas. A secondary survey will be conducted near the end of the 6 month trial period to determine any adverse impacts that may be occurring as a result of the program. Qualified residents in these pilot areas will be notified of their eligibility by the Public Works Department. Residents interested in the program would then be required to follow the permit application process. If approved, residents will be issued a maximum of two(2)parking permits. The permit application process and issuance of parking permits will be administered and managed by the police department. The permits will be valid for 1 calendar year and can be used on any qualified vehicle associated with the qualified residence. The cost for a permit or an annual permit renewal will be$50.00. The cost for the replacement of lost/stolen placards will also be$50.00. The fees will cover anticipated costs related to the program, such as signage updates in the form of stickers, forms required for the program,the permit placards and staff time required to manage the program. The daytime parking permits will allow residents to park their vehicle, a visitor vehicle, and/or care givers vehicle in the time restricted area without having to adhere to the posted time restrictions. The parking permits will be block specific (i.e. only authorized in 200 block of Occidental Ave., the 300 block of Occidental Ave., etc). However, the parking permits do not exempt vehicles from all other applicable laws pertaining to parking in the city, including but not limited to, the 72 hour requirement(i.e. vehicles are to be moved every 72 hours or be subject to tow), metered areas,red zones,handicap areas, etc. The progress and effectiveness of this program will be reassessed at the end of the 6 month trial period. At that time, Staff will present Council with the results of the program. At that time, Council could either discontinue the program or continue it as a permanent program. With Council direction,the program could also be expanded to include some (or all)fourteen(14) additional residential neighborhoods that would quality for this Residential Parking Permit Program. The initial introduction to ordinance which will authorize the establishment of preferential parking zones was held at a regularly scheduled city council meeting on February 19,2008. Attached is a Resolution establishing policy for Residential Parking Permit Program with the attached Exhibit "B"defining the policies and procedures that the city will follow during the 6 month pilot program. Attached is also a 2"d Resolution setting the fee structure for the Residential Parking Permit Program. BUDGETIMPACT: The budget impact of this recommendation is approximately$3,000.00. This total is based on the pilot program only and it is assuming that most qualified residents (approx. 175)will be participating in the program. The break down of the costs are as follows: $2,000.00 for staff time required to manage the program, $500.00 for permit placards, $375.00 for signage update (i.e. stickers) and$250.00 for related forms/paperwork for the program. ATTACHMENTS: 1. Proposed new municipal code establishing preferential parking zones 2. Map showing the preferential parking zones/areas for the pilot program- Exhibit"A" 3. Resolution establishing policy regarding preferential parking areas outlining the program's policies and Exhibit`B"procedures to be followed 4. Resolution setting the fee structure for the parking permit program 5. Attachment"1" (Notes from January 23rd public meeting and January 24d'follow-up staff meeting 6. Attachment"2"Proposed new Residential Parking Permit Program(in its entirety with examples of associated forms/documents/placards) City of Burlingame Residential Parking Permit Program Policy and Procedures n o 0 o Prepared by: Sgt. Dean Williams Burlingame Police Department Residential Parking Permit Policy and Procedures - Revised RESIDENTIAL PARKING PERMIT PROGRAM...........................................................................................3 PARKINGPERMIT PLACARD.................................................................................................................3 FEE FOR RESIDENTIAL PARKING PERMITS..........................................................................................4 BAILSCHEDULE .......................................................................................................................................4 MISUSEOF PARKING PERMITS.............................................................................................................4 POLICIES...................................................................................................................................................5 PROCEDURES...............................................................................................................................................7 PROGRAMDEVELOPMENT...................................................................................................................7 PROGRAMELIMINATION....................................................................................................................10 FREQUENTLYASKED QUESTIONS...........................................................................................................12 CHALLENGES ASSOCIATED WITH `RESIDENT ONLY' PARKING...................................................14 Updated 10/28/09 2 Residential Parking Permit Policy and Procedures-Revised RESIDENTIAL PARKING PERMIT PROGRAM The City and the Public Works Department are committed to preserving livable and attractive neighborhoods. One issue that may cause deterioration of neighborhoods is the excessive parking of non-resident vehicles on residential streets for extended periods of time. A system of preferential resident parking serves to reduce this strain on the residents of these neighborhoods. The intent of this Residential Parking Permit Program (RPPP) is to allow residents to park on-street in their neighborhood while restricting long-term parking by non-residents. PARKING PERMIT PLACARD A placard is issued to residents within the RPPP area which allows residents to park on the street during the posted RPPP time restrictions. Parking permits are issued as placards to be affixed to the resident's vehicle (rear view mirror). The residential permit is valid for a one calendar year cycle and is available from the City of Burlingame(location to be determined). The number of permits that may be issued to either a single-family household or a multi-family unit is two. It is understood that a greater amount of parking permits may be issued than there are available on-street parking spaces. This will create an environment of natural competition for on-street parking between neighborhood residents without the influence of long-term non-resident parking. Parking permits may be issued only for passenger non-commercial and passenger commercial (i.e., SUVs, small pick-up trucks, etc.) motor vehicles owned and registered by legal residents of the RPPP area. Company and leased vehicles are also eligible as long as the meet the requirements set forth. Permitted vehicles must not exceed typical passenger vehicle size (i.e. small trucks, passenger van acceptable-less than 3 tons). Boat trailers, camping trailers, motor homes and work-type commercial vehicles are not eligible to use parking permits for on-street parking under the terms of this parking permit program. Though the resident is responsible for acquiring a new permit by the first day of the new annual permit cycle year(January 1),there is typically a 30-day grace period at the beginning of the permit cycle during which the Police Department will issue warnings. No other grace period (i.e., new resident to area, new car, etc.) is available during the yearly parking permit cycle. The requirements to obtain a parking permit as a resident are: ➢ A completed application form in the residents' name and address. ➢ A current DMV vehicle registration for each vehicle the applicant is requesting a parking permit. ➢ Proof of residency/ownership in the resident's/owner's name reflecting the permit address in the permit area. Acceptable proof of residency shall be the Updated 10/28/09 3 Residential Parking Permit Policy and Procedures - Revised vehicle registration, a utility bill, car insurance policy, lease agreement or a preprinted personal check with the resident's name and address. FEE FOR RESIDENTIAL PARKING PERMITS There will be a $50.00 charge for (2) parking permit placards per household. These placards are transferable and may be placed on any vehicle of the resident's choosing. BAIL SCHEDULE If a resident fails to properly display their placard (s) , they will be subject to any/all parking restrictions in the RPPP area and any related citations/fines associated with those violations. MISUSE OF PARKING PERMITS Any person selling, fraudulently using, reproducing or mutilating a parking permit issued in conjunction with the RPPP shall be guilty of an infraction and shall be subject to fine of not less than $100.00 for each offense and the forfeiture of all permits in conflict, or such other fine or penalty as the City Council may set by ordinance. Updated 10/28/09 4 Residential Parking Permit Policy and Procedures-Revised POLICIES All residential parking permit programs shall follow a set of policies that are consistent from one program area to the next. This includes program area limits, enforceable times,and implementation practices. . The implementation of a Residential Parking Permit Program does not guarantee the availability of parking spaces on a public street, or within a specific neighborhood. Because more parking permits may be issued than there are available on-street parking spaces,the program creates an environment of natural competition for on-street parking among neighborhood residents without the influence of long-term non-resident parking. . The program allows for any resident or non-resident to park on-street during the restricted hours for a maximum of 2-hours unless a parking permit is displayed. Program enforcement hours will be determined based on the type of parking impact generator. This will provide for consistency among RPPP areas,and simplify enforcement of the program times. . Parking restrictions within RPPP areas must be consistent from corner to corner on all streets to prevent "spill-over" or shifting of an on-street parking problem to an adjacent non-restricted area. 46 Limits of the parking permit neighborhood will be determined based on the potential of parked cars to overflow and impact adjacent streets. This will be done through a collaborative process involving both the applicant and Public Works traffic engineering staff. d• Parking permit holders will be issued permits to park along the street within the limits (i.e.block specific)of their RPPP neighborhood area. d• Parking permits will be issued to owner(s) of qualified vehicle(s) registered at an address(limit of 2)within a permit parking area. Only qualified passenger non-commercial,passenger commercial (i.e.,SUV's,small pick-up trucks, etc.) vehicles, and company/leased are allowed permits. Boat trailers,camping trailers, motor homes and work-type commercial vehicles are not eligible for on-street parking within a RPPP area. . Parking permits are not intended for use at metered parking spaces within business districts or retail areas. Parking permits are not intended for use within designated public parking lots. Updated 10/28/09 5 Residential Parking Permit Policy and Procedures - Revised ❖ Vehicles displaying parking permits are subject to all other parking restrictions including 12 and 24-minute spaces, white passenger loading zones, yellow loading zones, handicap spaces and red zones. ❖ Displaying a residential parking permit does not exempt the vehicle from the City' s ordinance which requires a car to be moved every 72 hours. ❖ To process a request for implementation of a residential parking permit program, a parking impact generator must exist. This program is not intended to restrict or limit the amount of residential vehicles that may park on-street within a given neighborhood. ❖ Any parking permit may be revoked if used contrary to the provisions of this policy. Updated 10/28/09 6 Residential Parking Permit Policy and Procedures-Revised PROCEDURES PROGRAM DEVELOPMENT Residential parking permit program development should take into consideration all practices as defined above. The procedures presented below provide for consistent parking permit program development from one neighborhood to the next. 1. A residential permit parking program is requested by a Burlingame resident through the Public Works Engineering Division. 2. Any parking impact generator (school, business or commercial district) that may be the cause of the overflow parking into the neighborhood is contacted to determine if any alternatives exist for maintaining parking on-site, or preventing overflow parking from impacting the neighborhood. 3. If no alternative is available,the process begins for defining a neighborhood permit parking area. If a number of Residential Parking Permit Program areas are being considered concurrently by staff, the area may have to be put on a waiting list depending on the number of requests. 4. A meeting is held between the applicant(the person requesting the permit parking program) and staff to inform him/her of the steps necessary for implementation of a permit parking program. All program practices and guidelines are reviewed with the interested party to determine if the applicant is interested in proceeding with the program development,and a primary neighborhood contact is identified. 5. A neighborhood meeting is then scheduled to present the residential parking permit program to the neighborhood. City staff will also discuss the impact a residential parking permit program could have on the neighborhood, discuss the procedure for program implementation, and gauge initial support for a program from the meeting attendees. b. Day and time limits of the proposed program will be discussed. For consistency and ease of enforcement by our Burlingame Police Department, the following program types are available for posting within new residential parking permit areas,unless otherwise approved by the Public Works Commission: For neighborhoods impacted by overflow parking from schools, the signs shall read: 2-Hour Parking 8:00 a.m.to 4:00 p.m. Monday-Friday Except Holidays or When Parking Permit is Displayed Updated 10/28/09 7 Residential Parking Permit Policy and Procedures - Revised • For neighborhoods impacted by overflow parking from retail, commercial or business districts, the signs shall read: 2-Hour Parking 8:00 a.m. to 6:00 p.m. Monday - Saturday Except Holidays or When Parking Permit is Displayed 7. The resident will be encouraged to obtain the support from other residents, and solicit their assistance in the process. 8. The applicant works with staff to determine the RPPP neighborhood limits for the proposed program. Though the limits of the study area are determined through a collaborative process with staff and the neighborhood, the Public Works Director shall make the final determination of the RPPP area limits, should the need arise. The Public Works Director's decision may be appealed to the Public Works Commission. 9. The applicant is then responsible for circulating a petition to determine neighborhood support within the RPPP area. A signature on the petition would indicate support for development of the RPPP. A standard RPPP petition is provided by the City. A minimum support of 67% of residents within the proposed RPPP area is required overall, including at least 50% support of the residents on each street in the neighborhood, for the City to proceed. A resident may sign the petition in support of RPPP development even though they may not wish to obtain a parking permit for their vehicle. 10. The petition shall be returned to the City within 45 days of issuance to the applicant. If the returned petition indicates that there is not 67% support for the RPPP within the proposed area, or if the petition is not returned within 45 days of issuance, no further action will be taken by staff on the application, the application process will be officially terminated and the applicant will be notified. 11 . If Home Owners'/Neighborhood Associations exist, the petitioner shall demonstrate that the Home Owners'/Neighborhood Association containing the proposed RPPP supports its development through the submittal of a letter of endorsement from that group. If the RPPP area lies within the geographic boundaries of more than one Home Owners'/Neighborhood Associations, the petitioner shall obtain a letter of support from each association. 12. Staff then conducts a one day mid-week parking utilization survey of the designated neighborhood. To qualify for a residential permit parking program, the Updated 10/28/09 8 Residential Parking Permit Policy and Procedures - Revised parking survey must indicate that 75% of all on-street parking spaces within the proposed area are occupied during any two one-hour periods between 8:00 a.m. and 6:00 p.m. during the survey day. 13. If 75% occupancy of the on-street parking spaces is observed, Staff will prepare a survey letter to determine resident support for the requested RPPP area. The survey will be distributed by the City to all residents in the proposed RPPP area. A resident may return the survey in support of RPPP development even though they may not wish to obtain a parking permit for their vehicle. The survey results will be summarized by the City, and shared with the applicant. 14. If more than 50% of the residents surveyed within the proposed permit parking area respond, and of those responding 67% support the implementation of a permit program, the item is placed on the Public Works Commission agenda for consideration. If there is less than a 50% response rate, or less than 2/3 support for the program is measured from those responding, no further action is taken and processing of the RPPP request is halted. 15. Staff will notify the neighborhood of the survey results, and, if necessary, the date and time of the Public Works Commission hearing. City notice of the public hearing will be circulated to the neighborhood no less than 10 days prior to the hearing date. 16. Staff then prepares the administrative report summarizing the survey results and the steps taken by the neighborhood towards program development. 17. At the public hearing, staff will present the facts of the request. The applicant, or a designated neighborhood representative, is expected to participate in the public hearing portion of the meeting to summarize the RPPP interests of the neighborhood. There will also be an opportunity for additional testimony from the public. 18. If the request for permit parking is approved, staff will draft and mail a letter to the residents within the proposed permit parking area to inform them of the public hearing results. If the program has been approved by the Public Works Commission, the letter will also notify them of the new requirements for on-street parking within the permit parking program area. 19. If the request for permit parking is denied or terminated, pursuant to Steps 10 or 14 (above), a second study of the same or similar RPPP study area will not be conducted for a minimum of twelve months unless there is a significant, identifiable change in parking characteristics as determined by the Public Works Director. Updated 10/28/09 9 Residential Parking Permit Policy and Procedures -Revised Subsequent studies of the same general study area will be subject to the same requirements and procedures as the initial study process. 20. Any decision by the Public Works Commission may be appealed to the City Council. 21 . Permit hangers, in a number representing at least 50% of the addresses in a given block, must be obtained before signs will be installed designating the street as a RPPP area. If the minimum number of permits is not obtained within 90 days after the Public Works Commission designates the area for RPPP, the designated area will be voided. 22. As the parking permits are valid for one year, a letter is sent out by staff every year notifying all residential parking permit holders of the need to renew the parking permit before the end of the calendar year. Parking permits may be renewed in person at the police department, or by mail. PROGRAM ELIMINATION The process to remove a residential parking permit program is similar to a program development. The procedures presented below provide for consistent parking permit program removal. 1 . A RPPP area, or part thereof, may be removed from the permit program by the Public Works Commission pursuant to: o A valid request from the affected RPPP neighborhood, and a petition from that neighborhood indicating support from at least 67% of the area wishing to be removed from the RPPP. o A determination that removal from the RPPP is either in the community interest, is in the interest of public safety or is at the City Council's discretion. 2. Once the petition for removal is received by staff, a survey of the area is prepared and distributed to the neighborhood. Similar to the program development process, 50% of the residents surveyed within the area requesting removal from the RPPP must respond, and of those responding 67% must support removal from the permit program. If successful, the item is placed on the Public Works Commission agenda for consideration, and the affected neighborhood is notified of the public hearing. If there is less than a 50% response rate, or less than 2/3 support for program removal from those responding, no further action is taken and processing of the RPPP removal request is halted. 3. If the request for removal is approved by the Public Works Commission, the neighborhood is notified of the decision, and the RPPP signs are removed. There shall be no cost to the residents associated with removing an area from the RPPP. Updated 10/28/09 10 Residential Parking Permit Policy and Procedures - Revised 4. If an existing RPPP area is revoked, any request for reinstatement shall be subject to the same process as that of a new RPPP area development, and if approved the neighborhood shall be assessed the total cost of all related staff activities including permit printing costs, distribution cost and all resigning costs. Updated 10/28/09 1 Residential Parking Permit Policy and Procedures-Revised FREQUENTLY ASKED QUESTIONS What is a Residential Permit Parking Program(RPPP)? The City of Burlingame provides for residential permit parking programs as a remedy for neighborhoods that are impacted by long-term on-street overflow parking from sources (called parking impact generators) outside the neighborhood. These parking impact generators include some high schools, business complexes and commercial areas. As this program is intended to deter long-term on-street parking, short-term 2-hour parking will be permitted within any RPPP area for non-permitted vehicles. Implementation of a RPPP area is a way to give residents of a designated area a better chance to park near their homes. It is not intended to designate a specific parking space along a property frontage. An RPPP area involves the posting of parking time limits or parking restrictions from which local residents are exempt if a valid permit is properly displayed within their vehicle. Residents within an approved parking permit neighborhood may obtain a parking permit to display on their car that will allow them to park for more than two hours along their neighborhood street. Any qualified vehicle registered to an address within a permit parking neighborhood is eligible to utilize a parking permit.The number of parking permits issued per property is two. Where are RPPP areas allowed? Residential Parking Permit Programs are allowed within residential neighborhoods whose on-street parking ability is impacted by parked cars from non-residents, or parking impact generators. Why is a policy and procedures document necessary? The purpose of this document is twofold. The first reason to create a policy and procedures document is so that all parking programs are consistent. For a residential permit parking program to be effective it is essential that it can be enforced. One factor that increases the ability for the Police Department to enforce parking restrictions in an area is program consistency. Programs should be consistent from one area to another within the City. Secondly, this document serves as a tool to establish criteria and process expectations for both staff and the community while helping to define a collaborative process. Are residents who live in a RPPP area required to obtain parking permits? Obtaining a parking permit is purely optional. You may decide to obtain a parking permit which will allow you to park on the street during restricted hours, or you may decide not to obtain a parking permit and be subject to the on-street parking restrictions of the street. Updated 10/28/09 12 Residential Parking Permit Policy and Procedures - Revised How long does it take to establish a new RPPP area? It can take several months to establish a new area. Depending on the size of the impacted area, the overall process from initial request to sign installation could take eight to twelve months or longer. Can I use my parking permit to park in any area that has RPPP signs posted? Each parking permit issued will be for a specific RPPP neighborhood or zone. With the appropriate parking permit, you may park within the boundaries of that specific RPPP area only. Parking for a period of time greater than that posted, in an area other than that designated by your parking permit, may result in your vehicle receiving a citation. The RPPP cannot guarantee or reserve the permit holder a parking space within a designated residential parking permit program area. Parking is on a first-come, first- served basis. How are the restrictions enforced? The Police Department will issue citations to vehicles that are in violation of the parking restrictions. Enforcement is made by routine police patrols or by calling the Police Department at (650) 777-4100. Can a RPPP be abolished once an area has been created? A RPPP may be removed after a re-evaluation process by city staff. The City is notified of the request for removal, a petition is circulated, a survey is distributed, a public hearing is held and if successful, the RPPP area is dissolved. If you have questions or are interested in a Residential Parking Permit Program, please call Public Works at (650) 558-7230. Updated 10/28/09 13 Residential Parking Permit Policy and Procedures - Revised CHALLENGES ASSOCIATED WITH `RESIDENT ONLY' PARKING Although there are many advantages associated with a RPPP, the City would like to point out some of the disadvantages. Please read the following information carefully while considering the impacts of implementing a Residential Parking Permit Program in your neighborhood. 1 . The implementation of a Residential Parking Permit Program does not guarantee the availability of parking spaces on a public street, or within a specific neighborhood. The program creates an environment of natural competition for on-street parking between neighborhood residents without the influence of long- term non-resident parking. 2. Creating a new RPPP area can take several months and require Public Works department, and possibly City Council adoption. Other alternatives to the neighborhood issue may be implemented much quicker. 3. A petition must be circulated by the applicant, and must be approved by at least 67% of the residents within the proposed area. Sixty-seven percent of the residents can impose their parking desire on the other 330 of residents. 4. A parking impact generator (i.e. business district, school etc.) must exist. A traffic study is performed to verify impact generator parking. Many neighborhoods do not qualify. 5. If you or your guest park in the street for longer than two hours without a permit, the Police Department will issue a parking citation. The current citation amount is $40.00 per violation. 6. A residential parking permit program can be imposing to a neighborhood and create a lot of inconvenience. These drawbacks must be weighed with the potential benefits when considering the implementation of a program that would restrict outside parking influences from your neighborhood. Updated 10/28/09 14 CITY STAFF REPORT AGENDA ITEM# 8e BV_RIJNGAME Burlingame Public Library MEETING DATE: 11-2-2009 � om October 16,2009 TO: Honorable Mayor and City Council SUBMITTED BY: Alfred Escoffier r, FROM: Alfred Escoffier,City Librarian APPROVED BY: tai L� i'1� SUBJECT: Request for Young Adult Services Librarian to attend Out of State Conference This is a request to send Amy Pelman, Young Adult Services Librarian,to the American Library Association Mid-Winter Conference, Chicago, Illinois, January 15-19, 2010. Background: In the last two years,the Library dramatically increased its focus on providing service to teens, from middle school through high school. Ms. Pelman has visited all of the English classes at Burlingame High School and is making herself available for one-on-one tech sessions with high school teachers and students. Circulation of materials to teens has doubled in that time, and we are seeing more and more teens at library programs. Ms. Pelman is a member of the Young Adult Services Librarian Association(YALSA) of ALA, and as such is continuing her work with other librarians from throughout the country to find ways to reach teens with the services the public library provides. Budget Impact: Funding for the Conference is made possible through the Library Trustees Education Fund, a source of private funds set aside to enhance the skills of library staff. No general fund monies will be used. Agenda Item g f O� AY� f B U�'I1vG Meeting Date fOF BROADWAY VILLAGE SHOPS RESTAURANTS SERVICES October 16, 2009 Honorable Mayor& City Council c/o Burlingame City Hall 501 Primrose Burlingame, CA 94010 RE: Broadway - Dear Mayor& City Council With your permission, the Broadway Merchants in conjunction with the Broadway Grill propose to have a children's snow garden in addition to our regular Holiday festivities.This would occur Saturday evening, December 5, 2009 between 2pm to Spm, and be placed where the Fresh Market was. We are therefore asking to close a portion of Capuchino Ave. Capuchino Ave. would be closed, with your permission, at Broadway, north to about 100 feet. Admission would be free and all arrangements including signage, erecting and removing the barricades would be handled by the Broadway Grill.The company providing the snow will provide insurance. Note,the snow will be off the street by 10:00pm.The responsible person on site will be Peggy Dohrman, of The Broadway Grill, Peggy's cell number is 415-577-7349. Since , t Ross Bruce, T-gh an Broadway BID The Broadway Grill CC: Police Chief,Jack Van Etten CC: Nick Bovus,The Broadway Grill Broadway Business Improvement District • 1399 Broadway,Burlingame,California 94010 p BROADWAY VILLAGE SHOPS RESTAURANTS SERVICES Dear Neighbor, On Saturday, December 5, 2009, between 4:00pm and 7:00pm, you are invited to Broadway's Holiday celebration featuring a tree lighting P ceremony at the Broadway Grill, roving singers, an accordionist and a small snow hill for children. _fig ~ ` If you have any questions call Ross Bruce at (650)342-2073. Please Note: Capuchino Ave will be closed from Broadway North F E v approximately 100 feet so that traffic will be diverted from Capuchino r; IT through Lot Q to Paloma instead of to Broadway. sem- Mi I Broadway Business Improvement District • 1399 Broadway, Burlingame,California 94010 �� CITY G 6 BU U14GnME STAFF REPORT 1. AGENDA A EG JUNE O.9 ITEM# 8g MTG. DATE November 2, 2009 TO: HONORABLE MAYOR AND CITY COUNCIL % SUBMITTED; DATE: October 28, 2009 BY FROM: Gus Guinan, City Attorney APPROVE By / '�!' SUBJECT: Resolution to Approve 2009 Tourism Business Improvement District Annual Report And to Give Notice of Intent to Levy Assessments for the 2010 Year RECOMMENDATION: Adopt Resolution of Intent Approving 2009 Tourism Business Improvement District Annual Report and Setting a Public Hearing for the Levying of the 2010 Annual Assessments for the San Mateo County Tourism Business Improvement District. BACKGROUND: The San Mateo County Tourism Business Improvement District was formed in 2001 and now has 11 participating cities throughout San Mateo County. Pursuant to the authority provided by the California Streets and Highways Code (section 36500 et seq.), the District collects assessments from the member hotel properties in the District and uses those annual assessments to fund its successful and wide- ranging activities. At the end of each year, the Advisory Board of the District files with the City an annual report stating this past year's activities and accomplishments. In addition, the Advisory Board also recommends the assessment for the coming year. Attached for your information, review and approval is the San Mateo County Tourism District Advisory Board's annual report for 2009 and the list of proposed assessments for the 2010 calendar year. ACTION: The City Council should adopt the Resolution of Intention 1) receiving and approving the Annual Report and 2) scheduling a public hearing for Monday, December 7, 2009 at which time the Council will levy the 2010 assessments. Notices to the cities and members of the District will be provided by the City Clerk and the District staff. The assessments requested by the District are consistent with the original authority for assessments enacted in 2001 at the time of District formation as amended. BUDGET IMPACT: Cost of mailing; staff time to prepare Resolution. ATTACHMENTS: Annual Report; List of Proposed Assessments; Resolution Approving 2009 Annual Report and Noticing Intent to Levy Assessments RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME DECLARING ITS INTENTION TO LEVY 2010 ANNUAL ASSESSMENTS FOR THE SAN MATEO COUNTY TOURISM BUSINESS IMPROVEMENT DISTRICT WHEREAS, pursuant to California Streets and Highways Code Section 36500 et seq., the San Mateo County Tourism Business Improvement District was established for the purpose of promoting tourism in the District through promotion of scenic, recreational, cultural, hospitality, and other attractions in the San Mateo County region; and WHEREAS, the San Mateo County Tourism Business Improvement District Advisory Board has filed its 2009 annual report and requested the Burlingame City Council to set the assessments for the 2010 year; and WHEREAS, the San Mateo County Tourism Business Improvement District through the City's agreement with the San Mateo County Convention and Visitors Bureau has established a basic foundation to promote tourism in the District and the programs for the coming year should significantly assist the hospitality industry continue its economic recovery in the County; and WHEREAS, pursuant to California Streets and Highways Code sections 36533 and 36534, the City Council shall receive and approve the District Advisory Board's annual report and shall adopt a Resolution establishing assessments for the coming year; NOW, THEREFORE, the City of Burlingame does hereby resolve, determine, and find as follows: 1. The 2009 annual report of the San Mateo County Tourism Business Improvement District Advisory Board filed with the City Clerk is received and approved. 2. The Burlingame City Council intends to levy an assessment for the 2010 year on hotels in the District, as the District is described in Ordinance Nos. 1648, 1678, and 1774, for the purpose of funding programs and activities of the District. 3. The types of programs and activities proposed to be funded by the levy of assessments on hotels in the District are set forth in Exhibit "A", incorporated herein by reference. These programs and activities are without substantial change from those previously established for the District. 4. The method and basis for levying the assessments on all hotels within the District are set forth in Exhibit "B", incorporated herein by reference, and would retain the 1 same basic formulas as those used in the previous year. This means that the assessments for a hotel would be the same as the previous year, unless the number of hotel rooms in the hotel had been reduced or increased or the type of services or facilities offered by the hotel has changed. 5. New hotels shall not be exempt from assessment. 6. A public hearing on the proposed assessments and programs for the year 2010 is hereby set for December 7, 2009, at 7:00 p.m. before the City Council of the City of Burlingame, in the Council Chambers, 501 Primrose Road, Burlingame, California. 7. The City Council will receive testimony and evidence at the public hearing, and interested persons may submit written comments before or at the public hearing, or they may be sent by mail or delivered to the City Clerk, 501 Primrose Road, Burlingame, CA 94010. S. Oral or written protests maybe made at the hearing. To count in a majority protest against the proposed assessment for the 2010 year, a protest must be in writing and submitted to the City Clerk at or before the close of the public hearing on December 7, 2009. A written protest may be withdrawn in writing at any time before the conclusion of that public hearing. Each written protest shall identify the hotel and its address. If the person signing the protest is not shown on the official records of the City of Burlingame as the owner of the hotel, then the protest shall contain or be accompanied by written evidence that the person is the owner of the hotel. Any written protest as to the regularity or sufficiency of the proceeding shall be in writing and clearly state the irregularity or defect to which objection is made. 9. If at the conclusion of the public hearing, there are of record written protests by the owners of hotels within the District which will pay fifty percent(50%) or more of the total assessments of the entire District, as to the proposed assessments for the 2010 year, no assessment for the 2010 year shall occur. If at the conclusion of the public hearing there are of record written protests by the owners of hotels within the District which will pay fifty percent (50%) or more of the total assessments of the entire District only as to a program or activity proposed, then that type of improvement or activity shall not be included in the District for the 2010 year. 11. Further information regarding the proposed assessments and procedures for filing a written protest may be obtained from the City Clerk, City Hall, 501 Primrose Road, Burlingame, California, phone 650-558-7203. The annual report of the San Mateo County Tourism Business Improvement District is on file and available at the Office of the City Clerk at 501 Primrose Road, Burlingame, California. 2 12. The City Clerk is instructed to provide notice of the public hearing by publishing this Resolution in a newspaper of general circulation in the City of Burlingame in accordance with the requirements of the Government and Streets &Highways Codes and mailing in accordance with those requirements and Ordinance Nos. 1648 and 1678 as applicable. Ann Keighran, Mayor I, Mary Ellen Kearney, City Clerk of the City of Burlingame do hereby certify that the foregoing Resolution was introduced at a regular meeting of the City Council on the 2nd day of November, 2009, and was adopted thereafter by the following vote: AYES: Councilmembers: NOES: Councilmembers: ABSENT: Councilmembers: Mary Ellen Kearney, City Clerk 3 San Mateo County Convention&Visitors Bureau Annual Report for Burlingame City Council Lead Agency for San Mateo County Tourism Business Improvement District October 16,2009 Activities/Accomplishments in last 12 months Overall: In the last 12 months,the Bureau has generated 385 meeting leads for county properties and a total of 95,812 definite room nights,with an estimated economic impact of$35,301,437. This total does NOT include individual corporate, leisure and international traveler nights generated through advertising and promotion. Accomplishments in Group Sales: • Featured in editorial in Meetings West,Smart Meetings and Small Market Meetings; • Conducted three-day familiarization("FAM")tour for meeting planners from the Midwest and East Coast, showcasing the San Mateo County/Palo Alto area and its properties; • Conducted three-day familiarization"FAM"tour for meeting planners from Sacramento; • Conducted three-day"FAM"tour for high end/incentive meeting planners,escorting them throughout the County; • Conducted three-day"FAM"tour for planners from the western states; • Conducted three-day"FAM"tour for sports planners and executives to showcase colleges, universities and sporting venues throughout San Mateo County and Palo Alto/Stanford area; • Conducted second sports fam as series of individual fams during two-week period; • Participated in nearly 50 trade shows,greatly increasing visibility of San Mateo County; • Held receptions/events for planners in Chicago and Pittsburgh to introduce our area to planners; • Conducted sales"blitzes"in Sacramento,Chicago,Phoenix,Denver,and the immediate area,i.e. South,East and North Bay areas; • Conducted joint sales calls/visits with hotel reps to clients in Sacramento,the Chicago area& Washington DC; • Conducted numerous individual client site visits to close business opportunities; • Continued our hot dates/hot rates notification program,sending last minute deals out to key meeting planners to assist area properties with filling in"need"dates and offering our members the opportunity to list their short-term"need"dates on a national hot dates site; • Conducted numerous targeted meeting planner outreach campaigns to various market segments, e.g. medical meeting planners, fraternity,religious, sporting event planners,association,corporate and government; • Created strong ties with numerous Bay Area sports-related groups, generating thousands of definite room nights in that category, from professional events to youth activities; • Continued outreach to third party meeting planners and meeting management companies, including Smith Bucklin, Experient,Booz Allen Hamilton,Conference Direct,Helms Briscoe, Hospitality Performance Network, and Association Management Center,making presentations and securing listings in their directories; • Remained actively involved in local Meetings Professional International& Professional Convention Management Association chapters in Chicago, San Francisco, SoCal, Sacramento and Washington, DC; • Continued active involvement in the Greater Washington Society of Association Executives (GWSAE),as well as numerous other professional meeting planner organizations, including Society of Government Meeting Planners,CA Society of Association Executives; American Society 1 Association Executives,NorCal Network SAE,HSMAI,IAAMC,Religious Conference Management Association,Professional Convention Management Association and International Hispanic Meeting Planners Association; • Continued outreach throughout continental US,building relationships and an identity with association, corporate and SMERF meeting planners in that region; • Advertised in publications directed at meeting planners and tour group operators, including ads in the following publications:NTA - Group Tour(two editions), Meetings West eve editions and online), Successful Meetings, ASAE The Executive and ASAE online%-newsletter, Group Tour Magazine (four editions), Smart Meetings e-blast, Small Market Meetings (three editions), The Tour Operator(online and print directory), RCM—Religious Conference Manager(two editions), , MPI Kansas City Annual Directory, Selling the Long Haul, Creative Industry Handbook and the Reel Directory, Society of American Travel Writers Annual Directory;Arizona Society of Association Executives magazine. • Created promotional flyers and DVD's for several booked clients to enhance attendance at their meetings in SMC; • Publicized the incredible testimonials our team receives in writing from planners, writers and production companies,to recruit new business; • Participated as Member of California Society of Association Executives Education and Annual Silent Auction Committees, and serve as new member ambassador,allowing immediate access to new planners; • Created"Extend Your Stay"pdfs for conference groups to include on other websites in advance of their meetings. Accomplishments in Recruiting Leisure/International/Travelers for Smaller Properties: • Produced and distributed 80,000 visitor guides,40,000 placed in California Welcome Centers around the state to encourage drive-in business; • Participating in WTM and participated at ITB/and Discover America, disseminating info on our area internationally; • Conducted fam tours for top travel agents from Mexico, Germany,UK,Australia, • International tour and travel room nights contracted 12,186; • Worked with U.S.Department of Commerce offices in San Jose,UK, Guatemala, Columbia and India to expand outreach to overseas travel offices and travel publications; • Provided posters, CD's and Visitors guides to International US Dept. of Commerce offices • Worked with CTTC (California Travel and Tourism Commission)International offices in UK, Australia/NZ, Germany,Japan,Mexico and China providing information for distribution and participating in promo opportunities; • Sent monthly ebulletins to thousands of prospective visitors in our database, listings special events and special rates to encourage visits; • Provided links for member properties,with website averaging 200,000 hits per month or 2.4 million per year; 4,400 unique visitors per month or 52,800 unique visitors per year AND GROWING! • Website won First Place Best Tourism Bureau Website by North American Travel Journalist Association; • Responded to phone calls, emails, ad response cards requesting local visitor information; • Participated in Adventures in Travel leisure travel show, POWWOW, Go West Summit,NTA Spring Meet, San Francisco Travel Expo and NTA Annual (co sponsoring welcome reception with CTTC for tour planners from all over the world), as well as California Travel Market show; • Updated smaller guides on filming in San Mateo County,beaches, recreation,family activities and graveyards and historical areas,to generate additional interest in our area; • Created tour and travel CD for distribution at tradeshows and other promotional venues; 2 • Created International converter promo piece for distribution at International tradeshows and fain tours; • Manned a visitor center in downtown Palo Alto; • Maintained visitor kiosk at Hiller Aviation Museum for drive in visitors; • Continued discounted car rental program with Enterprise Rent-a-Car, offering deep discounts to those coming to San Mateo County; • Placed ads aimed at individual/leisure travelers in: CA Visitor Guide(750,000 copies),Sunset Magazine(seven editions),California Co-op featured in Travel+Leisure,National Geographic Traveler,Budget Travel,Food& Wine, Vancouver Sun and American Express direct mail campaign, Society ofAmerican Travel Writers Directory, See America Directory, Stanford Students&Faculty Annual Directory(and online directory),Destination Palo Alto online, The California League, fostertravel.com (online travel guide)and The Sacramento Bee. Total readership for all leisure travel ads was well over 26 million. • Continued campaign to position and market San Mateo County as a top culinary tourism destination; • Built upon partnership with San Mateo County Farm Bureau,San Mateo County Harbor District to encourage SMC restaurants, hotels and caterers to buy and serve the freshest local produce, seafood, wine, beer and goat dairy products; • Sent/delivered fresh local products to meeting planners to call attention to the high quality of our cuisine; • Took chefs right onto the farms and docks for fourth annual tour to learn about fresh products and make purchasing connections; MEDIA OUTREACH • Attended two national and one local travel writer shows in 2009:North American Travel Journalists Association and International Powwow,meeting in a marketplace setting with over 100 travel writers and pitching all types of stories,including SMC's"As Fresh As It Gets"Culinary Tourism Campaign,Wining and Dining in San Mateo County,Convention&Exhibition Centers, Family Travel,Mature and Inter-Generational Travel,Holiday Escapes, Sun Destinations, SMC Conference and Meeting Facilities, SMC Convention and Visitors Bureau services; San Francisco International Airport;Nature Tourism; Golf; Spas and Luxury Travel; Romantic Coastside; Beaches; Coastside Drive; Trails(Walking,Hiking,Biking); "Togethering"in San Mateo County, and Entertainment and Nightlife.Met with international travel writers to pitch San Mateo County stories in international travel media. • Developed strong relationships and writer interest in prospective articles about San Mateo County/Silicon Valley. • Generated over 42 articles(some published in multiple newspapers)in addition to several inclusions in California Travel and Tourism Commission releases,which are distributed to hundreds of public relations and media outlets worldwide; • Conducted multiple individual fam tours for travel writers from throughout the country; • Conducted a very successful media tour of San Mateo County for travel writers from across the U.S. ,which has already resulted in multiple articles in theantitourist.com,West Jet Airlines up! Magazine, Philippine Airlines Magazine,Mabuhay Magazine,The San Francisco Examiner, Hitched Magazine and California Home and Design Magazine. • Customized stories to fit needs of extensive media calendars we have purchased, sending numerous "made to fit"pieces out on a monthly basis; • Followed up on leads from SATW,Media Kitty,NATJA and numerous other travel publicity lead generators with hundreds of requests from travel writers for information for specific stories; 3 • Worked closely with the California Travel and Tourism Commission(CTTC)team,responding to all publicity leads that came in to the state(internationally and regional publications); • Continued to build our media database, allowing us to send editorial ideas to numerous publications and travel media outlets on a monthly basis. (In the last year, we have emailed editorial ideas on our county to several hundred travel editors each month, in addition to sending information to fit their prescheduled stories.); • Made presentations on SMC before the Bay Area Travel Writers and North American Travel Journalists Association and assisted in booking their monthly meetings in interesting SM County venues to enhance their knowledge of San Mateo County; • Added an online interactive Calendar of Events to our website • Brought Social Media to the CVB by creating and a Facebook fan and group site, Linkedln profile and monitoring our yelp.com profile, as well as creating a Twitter feed with almost 1000 followers. Updates on area events are posted daily. FILMING OUTREACH • Recruited 2 feature films, 5"indie"small films,advertising and video productions (with small crews)through our film commission. These included feature films; "My Name Is Kahn"and"Funny People" starring Adam Sandler; Indie Films; "I'll Catch You", "Red Ice", "Melvin Smarty"and"A Stitch In Time"; TV Shows&TV Pilots; "America's Most Wanted" "Trauma" MTV's "Teen Cribs", Japan's "World's Most Astonishing News"BBC's "Digital Revolution", PBS's "'Telescopes: Quest to See Infinity"and"Chefs in the City"; Documentaries; National Geographic's, "Earth From Above"and"Wild", "I Phone"Documentary; TV Commercials; Chase Bank, Polaris, Anti Theft, Denmark Web TV Project, Lenscrafters, International Truck, Radio Shack, and several corporate videos; One Music Video; Still Shoots; McAfee, Subaru,BMX Fashion Shoot, Lowe's and various small and large fashion catalogue still shoots; • Continued active recruitment of filming of all kinds by targeting professional location scouts and location managers, sending out monthly email updates of new/interesting filming locations to the Northern California Location Scouting/Managers Internet List AND the Southern California Location Scouting/Managers Internet List; • Provided ongoing script breakdowns for proposed film projects,matching them with available San Mateo County locations and sending appropriate images of venues from our digital library; • Continued to increase the number of photographs in digital library for use in promotion to film industry; • Handled average of 20 requests per week for filming/permitting assistance to make production easier for film crews; • Participated in film industry trade shows,including the "Locations"Trade Show,put on by the AFCI(Association of Film Commissioners International, of which we are an active member.)This is the world's largest locations trade show, geared to reach an audience of filmmakers--producers, directors, location managers and location scouts; • Showcased San Mateo County in the Creative Handbook,the Reel Directory&Propville(industry publications distributed to film industry professionals). ADDITIONAL OUTREACH • Continued to work closely with team at SFO,welcoming new airlines to our area; • Attended new airline/new flight service ceremonies at SFO,creating strong visibility for San Mateo County with new carriers; • Met with multiple arts organizations,to assist with promotion to visitors; • Gave numerous speeches and presentations in Bay Area in effort to get local assistance with recruitment; 4 • Continued to build relationships with Cow Palace, South San Francisco Conference Center and San Mateo County Event Center,working to bring leads to their sales teams and assist in closing business; • Worked with SFO,SamTrans, CalTrain and BART to promote our area as easily accessible; • Continued outreach to chambers and cities in county in order to include key area events in our events calendars and to maximize our searches for filming venues. 5 San Mateo County Convention &Visitors Bureau Terms of Office 2010 2010-2011-2012 Len Almalech, Enterprise Rent-a-Car Ken Landis, Landis Shores — Unincorporated County Kandace Bender, SFO Jim McGuire. Best Western Grosvenor, SSF Stephanie Bauer, SM Marriott Wayne Meyer — Half Moon Bay Brewing Co. Dana Dahl — Beach House, Half Moon Bay Roger Life, Crowne Plaza, Burlingame 2009 - 2010 - 2011 Stan Moore, SFO Marriott - Burlingame Sandra O'Toole, SSF Conference Center- SSF Chris Carpenter, San Mateo County Event Center— San Mateo Mitch Postel, San Mateo County Historical Association — Redwood City Derek Hudson, Hilton Garden Inn - San Mateo Jeff Bass — Hiller Aviation Museum — San Carlos John Hutar — Sofitel, Redwood City Jim Ensign — Burlingame hotelier 2008 - 2009 - 2010 Scott Castle, Crowne Plaza — Foster City Larry Ivich, Hillsdale Shopping Center Rudy Ortiz, Embassy Suites — SSF Scott VandenBerg, Hyatt Regency— Burlingame Barry Ongerth, Travelodge Millbrae - Millbrae Tracy Mercer — Four Seasons East Palo Alto Ryan Laskey— Westin SFO, Millbrae Darrell Buettner — Holiday Inn Express, Belmont SMCCVB Board Officers for 2010 Chair: Rudy Ortiz - Embassy Suites SSF Chair-Elect: Scott VandenBerg, Hyatt SFO Secretary: Derek Hudson, Hilton Garden Inn Treasurer: Dana Dahl, The Beach House, HMB Immed. Past Chair: Ken Landis — Landis Shores, Uninc. SMC Vice Chair: Kandace Bender, SFO Vice Chair: Barry Ongerth, SF Airport South Travelodge, MB Vice Chair: Mitch Postel, San Mateo County History Museum Vice Chair: John Hutar Sofitel SF Bay, Redwood City Tourism Business Improvement District Renewal Process 2010 TBID Mailing Completed on November 3, 2010 San Mateo County Convention & Visitors Bureau 2010 TBID Mailing Costs Supplies Quantity Unit Price Total Copies Per Packet 17 $ 0.25 $ 4.25 Envelopes 1 $ 0.30 $ 0.30 Postage 1 $ 1 .22 $ 1 .22 Cost per Packet: $ 5.77 Total Packets: 150 $ 5.77 $ 865.50 Labor Hours 3 $ 50.00 $ 150.00 Total Mailing Costs: $ 13015.50 111 Anza Boulevard, Suite 410, Burlingame, CA 94010 650-348-7600 ♦ 1-800-288-4748 Fax 650-348-7687 info@sanmateocountycvb.com ♦ www.visitsanmateocounty.com convrictn..a,.d�,tsLtors burca,e. November 2, 2009 To: San Mateo County Properties From: The San Mateo County/Silicon Valley Convention&Visitors Bureau and TBID As you will see from the enclosed annual report, we have continued to make great strides under the Tourism Business Improvement District(TBID). In the last 12 months,the Bureau has generated 385 meeting leads for county properties and a total of 95,812 definite room nights,with an estimated economic impact of$35,301437.00. This total does not include individual corporate,leisure and international traveler nights generated through advertising and promotion. The sales team has attended nearly 50 trade shows this year and had great success with the DC, Midwestern, sports, and government markets, often beating "first tier" cities in competition for meetings. We have also made great progress in the international tourism market. We have held multiple FAM tours and receptions for meeting planners, including meeting planners from the east coast, Midwest and the Sacramento area, as well as a FAM tour for sport planners, all generating leads for our area. We have also hosted several FAM tours for top producing travel agents from Australia, Germany and the UK. In addition,we hosted a group of travel media professionals on a FAM tour of San Mateo County, resulting in a great deal of publicity. Our advertising aimed at leisure travelers has generated additional rooms,with our printed ads alone reaching an audience of over 25 million. In the past year we have advertised in publications such as the California Visitor Guide, Sunset, Travel + Leisure, Budget Travel, Discover America (in six languages) and Food & Wine. We will continue with leisure advertising and promotion for 2010. In 2010, we plan to continue with our FAM tours for groups such as corporate planners, association planners, government, SMERF and sporting event planners from all over the country. Bringing them here allows us to show off our beautiful area, helping us to "close" the meetings, and generate compression for properties of all sizes. A public hearing on the 2010 assessment will be held on December 7, 2009 in the Burlingame City Council Chambers. Upon formal approval by the Burlingame City Council as lead agency, we will forward the exact amount to your property. Thank you again for your support. Please do not hesitate to contact us if we may be of assistance in any way. RESOLUTION NO. 101-2oo9 RESOLUTION OF THE CITY COUNCIL OF THE CITE' OF BURLINGAME DECLARING ITS INTENTION TO LEVE'2010 ANNUAL ASSESSMENTS FOR THE SANT MATEO COUNT'TOURISM BUSINESS IMPROVEMENT DISTRICT WHEREAS, pursuant to California Streets and Highways Code Section 36500 et seq., the San Mateo County Tourism Business Improvement District was established for the purpose of promoting tourism in the District through promotion of scenic, recreational, cultural, hospitality, and other attractions in the San Mateo County region; and WHEREAS, the San Mateo County Tourism Business Improvement District Advisory Board has filed its 2009 annual report and requested the Burlingame City Council to set the assessments for the 2010 year; and WHEREAS, the San Mateo County Tourism Business Improvement District through the City's agreement with the San Mateo County Convention and Visitors Bureau has established a basic foundation to promote tourism in the District and the programs for the coming year should significantly assist the hospitality industry continue its economic recovery in the County; and WHEREAS, pursuant to California Streets and Highways Code sections 36533 and 36534, the City Council shall receive and approve the District Advisory Board's annual report and shall adopt a Resolution establishing assessments for the coming year; NOW, THEREFORE, the City of Burlingame does hereby resolve, deterrnine, and find as follows: 1. The 2009 annual report of the San Mateo County Tourism Business Improvement District Advisory Board filed with the City Clerk is received and approved. 2. The Burlingame City Council intends to levy an assessment for the 2010 year on hotels in the District, as the District is described in Ordinance Nos. 1648, 1678, and 1774, for the purpose of funding programs and activities of the District. 3. The types of programs and activities proposed to be funded by the levy of assessments on hotels in the District are set forth in Exhibit "A", incorporated herein by reference. These programs and activities are without substantial change from those previously established for the District. 4. The method and basis for levying the assessments on all hotels within the District are set forth in Exhibit "B", incorporated herein by reference, and would retain the 1 same basic formulas as those used in the previous year. This means that the assessments for a hotel would be the same as the previous year, unless the number of hotel rooms in the hotel had been reduced or increased or the type of services or facilities offered by the hotel has changed. 5. New hotels shall not be exempt fiom assessrnerit. 6. A public hearing on the proposed assessments and programs for the year 2010 is hereby set for December 7, 2009, at 7:00 p.m. before the City Council of the City of Burlingame, in the Council Chambers, 501 Primrose Road,Burlingame, California. 7. The City Council will receive testimony and evidence at the public hearing, and interested persons may submit written comments before or at the public hearing, or they may be sent by snail or delivered to the City Clerk, 501 Primrose Road, Burlingame, CA 94010. 8. Oral or written protests may be made at the hearing. To count in a majority protest against the proposed assessment for the 2010 year, a protest must be in writing and submitted to the City Clerk at or before the close of the public hearing on December 7, 2009. A written protest may be withdrawn in writing at any time before the conclusion of that public hearing. Each written protest shall identify the hotel and its address. If the person signing the protest is not shown on the official records of the City of Burlingame as the owner of the hotel, then the protest shall contain or be accompanied by written evidence that the person is the owner of the hotel. Any written protest as to the regularity or sufficiency of the proceeding shall be in writing and clearly state the irregularity or defect to which objection is made. 9. If at the conclusion of the public hearing, there are of record written protests by the owners of hotels within the District which will pay fifty percent(50%) or more of the total assessments of the entire District, as to the proposed assessments for the 2010 year, no assessment for the 2010 year shall occur. If at the conclusion of the public hearing there are of record written protests by the owners of hotels within the District which will pay fifty percent(50%) or more of the total assessments of the entire District only as to a program or activity proposed, then that type of improvement or activity shall not be included in the District for the 2010 year. 11. Further information regarding the proposed assessments and procedures for filing a written protest may be obtained fiom the City Clerk, City Hall, 501 Primrose Road, Burlingame, California,phone 650-558-7203. The annual report of the San Mateo County Tourism Business Improvement District is on file and available at the Office of the City Clerk at 501 Primrose Road, Burlingame, California. 2 v' 12. The City Clerk is instructed to provide notice of the public hearing by publishing this Resolution in a newspaper of general circulation in the City of Burlingame in accordance with the requirements of the Government and Streets &Highways Codes and mailing in accordance with those requirements and Ordinance Nos. 1648 and 1678 as applicable. Keighran, ayor I, Mary Ellen Kearney, City Clerk of the City of Burlingame do hereby certify that the foregoing Resolution was introduced at a regular meeting of the City Council on the 2nd day of November, 2009, and was adopted thereafter by the following vote: AYES: Councilmembers: BAYLOCK, DEAL, KEIGHRAN, NAGEL, WMAHONY NOES: Councilmembers: NONE ABSENT: Councilmembers: NONE 4Marylllen Kearney, C�Cler 3 EXHIBIT A DESCRIPTION OF BOUNDARIES OF THE SAN MATEO COUNTY TOURISM BUSINESS IMPROVEMENT DISTRICT District In General The San Mateo County Tourism Business Improvement District shall encompass all of the incorporated and unincorporated areas in the County of San Mateo,but shall specifically exclude all incorporated areas and any hotels located with in the incorporated areas of any city, town, or county not designated below: Town of Atherton City of Brisbane Town of Colma City of Daly City Town of Hillsborough City of Menlo Park City of Pacifica Town of Portola Valley Town of Woodside Zones Within the District Zone A: Zone A shall encompass all of the area of the District except that area located with Zone B as described below. Zone B: (1)Zone B shall encompass all of the area of the District that is located south of the City of Pacifica city limits and west of State Highway 35; and (2)All of the area within all unincorporated areas immediately adjacent to, or surrounded by, the city limits of the City of Daly City. EXHIBIT B SAN MATEO COUNTY TOURISM BUSINESS IMPROVEMENT DISTRICT SAN MATEO COUNTY CONVENTION &VISITORS BUREAU PLANNED ACTIVITIES FOR 2010 For the calendar year 2010,the Bureau plans to continue all of its normal activities, including but not limited to: *Exhibiting in trade shows; *Conducting multiple group fam tours for meeting planners; *Conducting individual fain and site tours for planners; *Conducting several fain tours for international travel agents from overseas; *Conducting group fam tour for members of the travel media from around the U.S.; *Conducting individual fain tours for travel media; *Advertising in meeting planner publications; *Advertising in leisure publications; *Creating updated visitor guides, maps and specialty brochures; *Actively recruiting filming through our film commission. In addition, the Bureau will reach out into additional international markets, via such shows as World Travel Market and additional shows recommended by the California Travel and Tourism Commission. We will also conduct our first fam for meeting planners for western associations. CATEGORY ZONE A-ASSESSMENT FOR YEAR 2010 ZONE B -ASSESSMENT FOR YEAR 2010 Hotel with full service $360 per sleeping room x 68% X (District months in 2010) $360 per sleeping room X 55% X (District months in 2010) and more than 20 sleeping 12 12 rooms Hotel with limited service $180 per sleeping room X 60% X (District months in 2010) $180 per sleeping room X 40% X (District months in 2010) and more than 1,000 square 12 12 feet of meeting space and more than 20 sleeping rooms Hotel with limited service $90 per sleeping room X 60% X (District months in 2010) $90 per sleeping room X 40% X (District months in 2010) and some meeting space 12 12 but less than 1,000 square feet and more than 20 sleeping rooms Hotel with standard service $54 per sleeping room X 60% X (District months in 2010) $54 per sleeping room X 40% X (District months in 2010) and more than 20 sleeping 12 12 rooms Hotel with full service, $54 per sleeping room X 30% X (District months in 2010) $54 per sleeping room X 25% X (District months in 2010) limited service, or standard 12 12 service, and 20 sleeping rooms or less ZONE A - Includes all cities in the District except Half Moon Bay and the unincorporated County. ZONE B - Includes Half Moon Bay and the unincorporated County. SAN MATEO COUNTY TOURISM BUSINESS IMPROVEMENT DISTRICT ASSESSMENT CALCULATIONS --- TBID YEAR 2010 Burlingame Name of Property Zone Category/Assessment #Rooms ANNUAL Assessment Monthly Assessment Bay Landing A $ 54.00 130 $ 4,212.00 $ 351.00 Burlingame Hotel A $ 54.00 38 $ 1,231.20 $ 102.60 Crowne Plaza SFO A $ 360.00 309 $ 75,643.20 $ 6,303.60 Doubletree Hotel A $ 360.00 388 $ 94,982.40 $ 7,915.20 Embassy Suites A $ 360.00 340 $ 83,232.00 $ 6,936.00 Hampton Inn &Suites_ A $ 54.00 77 $ 2,494.80 $ 207.90 Hilton Garden Inn A $ 180.00 132 $ 14,256.00 $ 1,188.00 Hilton SFO' A $ 360.00 402 $ 98,409.60 $ 8,200.80 Holiday Inn Express SFO South A $ 90.00 146 $ 7,884.00 $ 657.00 Hyatt Regency SFO A $ 360.00 789 $ 193,147.20 $ 16,095.60 Red Roof Inn A $ 54.00 213 $ 6,901.20 $ 575.10 SFO Marriott A $ 360.00 685 $ 167,688.00 $ 13,974.00 Vagabond Inn Executive A $ 54.00 93 $ 3,013.20 $ 251.10 Room Total 3742 Total: $ 753,094.80 a� { ,.. :.:SN e ..t: F �' P��....v, a b..f_..:.. .<F' ..n`._ ..n�.e.:• .� .,. .a. «.r,ee..e.. - - San Mateo Name of Property Zone Category/Assessment # Roornsj ANNUAL Assessmerr Monthly Assessmen Avalon Motel A $ 54.00 48 $ 1,555.20 $ 129.60 Ben Franklin Hotel A $ 360.00 92 $ 22,521.60 $ 1,876.80 Best Western Coyote Point Inn A $ 54.00 99 $ 3,207.60 $ 267.30 Best Western Los Prados Inn A $ 90.00 113 $ 6,102.00 $ 508.50 Comfort Inn A $ 54.00 110 $ 3,564.00 $ 297.00 Coxhead House B&B A $ 54.00 4 $ 64.80 $ 5.40 Grand Manor Airport Inn &Suites A $ 180.00 110 $ 11,880.00 $ 990.00 Hillsdale Inn A $ 54.00 90 $ 2,916.00 $ 243.00 Hilton Garden Inn A $ 180.00 156 $ 16,848.00 $ 1,404.00 Homestead Studio Suites A $ 54.00 136 $ 4,406.40 $ 367.20 Howard Johnson A $ 54.00 57 $ 1,846.80 $ 153.90 Residence Inn by Marriott A $ 54.00 160 $ 5,184.00 $ 432.00 San Mateo Marriott A $ 360.00 476 $ 116,524.80 $ 9,710.40 Stone Villa Inn A $ 90.00 45 $ 2,430.00 $ 202.50 Super 8 A $ 54.00 53 $ 1,717.20 $ 143.10 Room Total 1749 Total: $ 200,768.40 1 of 5 11/3/2009 SAN MATEO COUNTY TOURISM BUSINESS IMPROVEMENT DISTRICT ASSESSMENT CALCULATIONS --- TBID YEAR 2010 South San Francisco Name of Property OA Category/Assessment #Rooms ANNUAL Assessmen Monthly Assessmen Airport Inn $ 54.00 34 $ 1,101.60 $ 91.80 All Seasons Lodge $ 54.00 13 $ 210.60 $ 17.55 Americana Inn Motel $ 54.00 17 $ 275.40 $ 22.95 Best Western Grosvenor Hotel A $ 360.00 206 $ 50,428.80 $ 4,202.40 Citi Garden Hotel A $ 180.00 175 $ 20,475.00 $ 1,706.25 Comfort Suites SFO A $ 54.00 166 $ 5,378.40 $ 448.20 Courtyard by Marriott A $ 180.00 197 $ 21,276.00 $ 1,773.00 Days Inn A $ 54.00 25 $ 810.00 $ 67.5 Deluxe Inn A $ 54.00 20 $ 324.00 $ 27.00 Economy Inn A $ 54.00 21 $ 680.40 $ 56.70 Embassy Suites A $ 360.00 312 $ 76,377.60 $ 6,364.8 _ Four Points by Sheraton Hotel &Suites A $ 90.00 100 $ 5,400.00 $ 450.00 Hampton Inn A $ 54.00 100 $ 3,240.00 .$ 1 270.00 Hilton Garden Inn A $ 180.00 169 $ 18,252.00 $ Holiday Inn Express Hotel&Suites A $ 54.00 87 $ 2,818.80 $ 234.90 Holiday Inn SFO North A $ 360.00 224 $ 54,835.20 $ 4,569.60 Howard Johnson A $ 54.00 51 $ 1,652.40 $ 137.70 Inn at Oyster Point A $ 90.00 30 $ 1,620.00 $ 135.00 La Quinta Inn A $ 90.00 174 $ 9,396.00 $ 783.00 Larkspur Landing A $ 90.00 111 $ 5,994.00 $ 499.50 Motel A $ 54.00 117 $ 3,790.80 $ 315.90 Quality Inn &Suites A $ 54.00 45 $ 1,458.00 $ 121.50 Ramada Limited Suites A $ 54.00 45 $ 1,458.00 $ 121.50 Residence Inn by Marriott _ A $ 9-0.0-0 152 $ 8,208.00 $ 684.00 Royal.Inn _ A $ 54.00 17 $ 275.40 $ 22.95 Travelers Inn A $ 54.00 20 $ 324.00 $ 27.00 Travelodge SFO North A $ 54.00 199 $ 6,447.60 $ 537.30 _ Room Total 2827 Notal: $ 302,508.00 j Millbrae Name of Property Zone'Cate o /Assessment'# Rooms' ANNUAL Assessmen Monthly Assessmen _- p Y _ -gigrY Best Western EI Rancho Inn A $ 54.00 306 $ 9,914.40 1 $ 826.20 Clarion Hotel _ A $ 360.00 250 $ 61,200.00 $ 5,100.00 Comfort Inn SFO A $ 54.00 100 $ 3,240.00 $ 270.00 Millwood Inn &Suites A $ 54.00 34 $ 1,101.60 $ 91.80 Quality Suites A $ _ 90.00 80 $ _ 4,320.00 : $ 360.00 SF Airport South Travelodge A $ _ 54.00 58 $ 1,879.20 $ 156.60 The Westin S.F. Airport A $ 360.00 390 $ 95,472.00 $ 7,956.00 Room Total 1218 - - -- - - - Total: $ 177,127.20 2 of 5 11/3/2009 SAN MATEO COUNTY TOURISM BUSINESS IMPROVEMENT DISTRICT ASSESSMENT CALCULATIONS --- TBID YEAR 2010 FosterCity Name of Property Zone Category/Assessment #Rooms ANNUAL Assessmen- Monthly Assessmen Crowne Plaza Mid-Peninsula A $ 360.00 356 $ 87,148.80 $ 7,262.40 Courtyard by Marriott A $ 180.00 147 $ 15,876.00 $ 1,323.00 Room Total 503 _ ,Total $ 103,024.80 Half Moon Bay Name of Property Zone Category/Assessment #Rooms ANNUAL Assessmen Monthly Assessmen Beach House Hotel B $ 180.00 54 $ 3,888.00 $ 324.00 Best Western Half Moon Bay Lodge B $ 180.00 81 $ 5,832.00 $ 486.00 Cameron's Inn B $ 54.00 3 $ 40.50 $ 3.38 Comfort Inn B $ 90.00 54 $ 1,944.00 $ 162.00 Days Inn B $ 54.00 27 $ 583.20 $ 48.60 Half Moon Bay Inn B $ 54.00 14 $ 189.00 $ 15.75 Holiday Inn Express B $ 54.00 52 $ 1,123.20 $ 93.60 Mill Rose Inn B $ 54.00 6 $ 81.00 $ 6.75 Old Thyme Inn Bed & Breakfast B $ 54.00 7 $ 94.50 $ 7.88 The Ritz Carlton B $ 360.00 261 $ 51,678.00 $ 4,306.50 San Benito House B $ 54.00 12 $ 162.00 $ 13.50 Zaballa House Bed & Breakfast B $ 54.00 16 $ 216.00 $ 18.00 Room Total 587 Total: $ 65,831.40 Unincorporated County Name of Property Zone Category/Assessment #Rooms ANNUAL Assessmen Monthly Assessmen Atherton Inn A $ 54.00 5 $ 81.00 $ 6.75 Best Western Executive Suites A $ 54.00 29 $ 939.60 $ 78.30 Costanoa B $ 90.00 172 $ 6,192.00 $ 516.00 Cypress Inn on Miramar Beach B $ 54.00 18 $ 243.00 $ 20.25 Cypress Meadows B $ 54.00 2 $ 27.00 $ 2.25 Farallone Inn Bed & Breakfast B $ 54.00 9 $ 121.50 $ 10.13 Goose&Turrets Bed & Breakfast B $ 54.00 5 $ 67.50 $ 5.63 Harbor View Inn B $ 54.00 18 $ 243.00 $ 20.25 Harbor Vista B $ 54.00 3 $ 40.50 $ 3.38 Inn at Mavericks B $ 54.00 6 $ 81.00 $ 6.75 Landis Shores Oceanfront Inn B $ 54.00 8 $ 108.00 $ 9.00 Motorville Motel B $ 54.00 30 $ 648.0b____t__ 54.00 Oceano Hotel &Spa B $ 360.00 95 $ 18,810.00 $ 1,567.50 _ Pacific Victorian Bed & Breakfast B $ 54.00 3 $ _ 40.50 $ 3.38 Pescadero Bed & Biscuit B $ 54.00 2 $ 27.00 $ 2.25 0 of 0 111612 09 SAN MATEO COUNTY TOURISM BUSINESS IMPROVEMENT DISTRICT ASSESSMENT CALCULATIONS --- TBID YEAR 2010 r Pescadero Creek Inn B $ 54.00 4 $ 54.00 $ 4.50 Pescadero Creekside Barn B $ 54.00 1 $ 13.50 $ 1.13 Pillar Point Inn _ B $ - 54.00 11 $ -148.50 $ 12.38 - - -- Princess Port Bed & Breakfast B $ 54.00 4 $ 54.00 $ 4.50 Seal Cove Inn B $ 54.00 10 $ 135.00 $ 11.25 Stillheart B $ 54.00 26 $ 351.00 $ 29.25 The Tower B $ 54.00 1 $ 13.50 $ 1.13 Ziranjie B $ 54.00 1 $ 13.50 $ 1.13 Room Total 463 Total: $ 28,452.6 Redwood City Name of Property _ Zone Category/Assessment #Roomsl ANNUAL Assessmen Monthly Assessmen America's Best Inn A $ 54.00 38 $ 1,231.20 $ 102.60 Best Western Inn A $ 54.00 26 $ 842.40 $ 70.20 Budget Inn A $ 54.00 40 $ 1,296.00 $ 108.00 Capri Motel A $ 54.00 50 $ 1,620.00 $ 135.00 Comfort Inn A $ 54.00 52 $ 1,684.80 $ 140.40 Days Inn A $ 54.00 68 $ 2,203.20 $ 183.60 Deluxe Inn A $ 54.00 27 $ 874.80 $ 72.90 Garden Motel A $ 54.00 17 $ 275.40 $ 22.95 Good Nite Inn _ A $ 54.00 123 $ 3,985.20 $ 332.10 Holiday Inn Express A $ 54.00 38 $ 1,231.20 $ 102.60 Holiday Inn Express RWC Central A $ 54.00 61 $ 1,976.40 $ 164.7 Pacific Euro Hotel A $ 54.00 55 $ 1,782.00 $ 148.50 Pacific Inn A $ 54.00 75 $ 2,430.00 $ 202.50 Redwood Motor Court A $ 54.00 12 $ 194.40 $ 16. 20 Sequoia Inn A $ 54.00 22 $ 712.80 $ 59.40 Sofitel San Francisco Bay A $ 360.00 419 $ 102,571.20 $ 8,547.60 Towne Place Suites by Marriott A $ 54.00 95 $ 3,078.00 $ 256.50_ Room Total 1218 Total: $ 127,989.00 San Bruno Name of Property Zone Category/Assessment #Rooms ANNUAL Assessmen Monthly Assessmen Bayhill Inn A $ 54.00 24 $ 777.60 $ 64.80 Budget Motel A___$ 54.00 29 $ 939.60 $ 78.30 Comfort Inn &Suites A $ 54.00 29 $ _ 939.60 $ _ 78.30 Courtyard by Marriott A $ 180.00 147 $ 15,876.00 $ 1,323.00 Days - - -- 129.60 Da s Inn A $ 54.00 48 $ 1,555.20_r_$_______ Gateway Inn &Suites A $ 54.00 31 $ 1,004.40 1 $ 83.70 4 of 5 11/3/2009 SAN MATEO COUNTY TOURISM BUSINESS IMPROVEMENT DISTRICT ASSESSMENT CALCULATIONS ---TBID YEAR 2010 Howard Johnson A $ 54.00 49 $ 1,587.60 $ 132.30 Ramada Limited A $ 54.00 61, $ 1,976.40 $ 164.70 Regency Inn A $ 54.00 32 $ 1,036.80 $ 86.40 Ritz Inn A $ _ 54.00 23 $ 745.20 $ 62.10 Staybridge Suites SFO A $ 180.00 95 $ 10,260.00 $ 855.00 Super 8 A $ 54.00 54 $ 1,749.60 $ 145.80 Villa Montes Hotel A $ 90.00 41 $ 2,214.00 $ 184.50 - -- 622 -- Room Total Total: $ 38,448.00 Belmont BName of el Mateo Mote Ane Category/Asses meat #Rooms $45 .20 ANNUAL Ass Monthly Assessmen $ 62.10 Belmont Palms A $ 54.00 14 $ 226.80 $ 18.90 ExtendedStayAmerica A $ 54.00 108 $ 1,749.60 $ 145.8 Hillside Lodge A $ 54.00 23 $ 745.20 $ 62.10 Holiday Inn Express&Suites A $ 90.00 82 $ 4,428.00 $ 369. 00 Hyatt Summerfield Suites A $ 90.00 132 $ 7,128.00 $ 594. 00 Kingsway Motel A $ 54.00 16 $ 259.20 $ 21.60 Motel A $ 54.00 273 $ 8,845.20 $ 737.10 Room Total 671 - Total: $ 24,127.20 San Carlos Name of Property Zone Category/Assessment #Rooms ANNUAL Assessmen Monthly Assessmen Americas Best Value Inn A $ 54.00 32 $ 1,036.80 $ 86.40 Country Inn & Suites A $ 54.00 50 $ 1,620.00 $ 135.00 Fairfield Inn & Suites A $ 54.00 112 $ 3,628.80 $ 302.40 Homestead Studio Suites A $ 90.00 116 $ 6,264.00 $ 522.00 Hotel San Carlos A $ 54.00 29 $ 939.60 $ 78.30 San Carlos Inn A $ 54.00 10 $ 324.00 $ 27.00 Travel Inn A $ 54.00 29 $ 939.60 $ 78.30 Room Total 378 Total: $ 14,752.80 East Palo Alto Name of Property Zone Category/Assessment #Rooms ANNUAL Assessmen Monthly Assessmen Four Seasons Silicon Valley A $ 360.00 200 $ 48,960.00 $ 4,080.00 5 of 5 11/3/2009 EXHIBIT B SAN MATEO COUNTY TOURISM BUSINESS IMPROVEMENT DISTRICT SAN MATEO COUNTY CONVENTION &VISITORS BUREAU PLANNED ACTIVITIES FOR 2010 For the calendar year 2010, the Bureau plans to continue all of its normal activities, including but not limited to: *Exhibiting in trade shows; *Conducting multiple group fam tours for meeting planners; *Conducting individual fam and site tours for planners; *Conducting several fam tours for international travel agents from overseas; *Conducting group fam tour for members of the travel media from around the U.S.; *Conducting individual fam tours for travel media; *Advertising in meeting planner publications; *Advertising in leisure publications; *Creating updated visitor guides, maps and specialty brochures; *Actively recruiting filming through our film commission. In addition, the Bureau will reach out into additional international markets, via such shows as World Travel Market and additional shows recommended by the California Travel and Tourism Commission. We will also conduct our first fam for meeting planners for western associations. San Mateo County Convention&Visitors Bureau Annual Report for Burlingame City Council Lead Agency for San Mateo County Tourism Business Improvement District October 16, 2009 Activities/Accomplishments in last 12 months Overall: In the last 12 months, the Bureau has generated 385 meeting leads for county properties and a total of 95,812 definite room nights,with an estimated economic impact of$35,301,437. This total does NOT include individual corporate, leisure and international traveler nights generated through advertising and promotion. Accomplishments in Group Sales: • Featured in editorial in Meetings West,Stnart Meetings and Synall Market Meetings; • Conducted three-day familiarization("FAM")tour for meeting planners from the Midwest and East Coast, showcasing the San Mateo County/Palo Alto area and its properties; • Conducted three-day familiarization "FAM"tour for meeting planners from Sacramento; • Conducted three-day"FAM"tour for high end/incentive meeting planners, escorting them throughout the County; • Conducted three-day"FAM"tour for planners from the western states; • Conducted three-day "FAM"tour for sports planners and executives to showcase colleges, universities and sporting venues throughout San Mateo County and Palo Alto/Stanford area; • Conducted second sports fam as series of individual fams during two-week period; • Participated in nearly 50 trade shows, greatly increasing visibility of San Mateo County; • Held receptions/events for planners in Chicago and Pittsburgh to introduce our area to planners; • Conducted sales "blitzes"in Sacramento, Chicago,Phoenix,Denver, and the immediate area,i.e. South,East and North Bay areas; • Conducted joint sales calls/visits with hotel reps to clients in Sacramento,the Chicago area& Washington DC; • Conducted numerous individual client site visits to close business opportunities; • Continued our hot dates/hot rates notification program,sending last minute deals out to key meeting planners to assist area properties with filling in"need"dates and offering our members the opportunity to list their short-term"need"dates on a national hot dates site; • Conducted numerous targeted meeting planner outreach campaigns to various market segments, e.g. medical meeting planners, fraternity,religious, sporting event planners, association, corporate and government; • Created strong ties with numerous Bay Area sports-related groups, generating thousands of definite room nights in that category, from professional events to youth activities; • Continued outreach to third party meeting planners and meeting management companies, including Smith Bucklin, Experient,Booz Allen Hamilton, Conference Direct, Helms Briscoe, Hospitality Performance Network, and Association Management Center, making presentations and securing listings in their directories; • Remained actively involved in local Meetings Professional International&Professional Convention Management Association chapters in Chicago, San Francisco, SoCal, Sacramento and Washington, DC; • Continued active involvement in the Greater Washington Society of Association Executives (GWSAE), as well as numerous other professional meeting planner organizations,including Society of Government Meeting Planners, CA Society of Association Executives; American Society 1 Association Executives,NorCal Network SAE,HSMAI,IAAMC,Religious Conference Management Association,Professional Convention Management Association and International Hispanic Meeting Planners Association; • Continued outreach throughout continental US,building relationships and an identity with association, corporate and SMERF meeting planners in that region; • Advertised in publications directed at meeting planners and tour group operators, including ads in the following publications:NTA - Group Tour(two editions), Meetings West eve editions and online), Successful Meetings, ASAE The Executive and ASAE online%-newsletter, Group Tour Magazine (four editions), Smart Meetings e-blast, Small Market Meetings (three editions), The Tour Operator(online and print directory), RCM—Religious Conference Manager(two editions), , MPI Kansas City Annual Directory, Selling the Long Haul, Creative Industry Handbook and the Reel Directory, Society of American Travel Writers Annual Directory;Arizona Society of Association Executives magazine. • Created promotional flyers and DVD's for several booked clients to enhance attendance at their meetings in SMC; • Publicized the incredible testimonials our team receives in writing from planners,writers and production companies, to recruit new business; • Participated as Member of California Society of Association Executives Education and Annual Silent Auction Committees, and serve as new member ambassador, allowing immediate access to new planners; • Created"Extend Your Stay"pdfs for conference groups to include on other websites in advance of their meetings. Accomplishments in Recruiting Leisure/International/Travelers for Smaller Properties: • Produced and distributed 80,000 visitor guides,40,000 placed in California Welcome Centers around the state to encourage drive-in business; • Participating in WTM and participated at ITB/ and Discover America, disseminating info on our area internationally; • Conducted fam tours for top travel agents from Mexico, Germany,UK,Australia, • International tour and travel room nights contracted 12,186; • Worked with U.S.Department of Commerce offices in San Jose,UK, Guatemala, Columbia and India to expand outreach to overseas travel offices and travel publications; • Provided posters, CD's and Visitors guides to International US Dept. of Commerce offices • Worked with CTTC (California Travel and Tourism Commission)International offices in UK, Australia/NZ, Germany,Japan,Mexico and China providing information for distribution and participating in promo opportunities; • Sent monthly ebulletins to thousands of prospective visitors in our database, listings special events and special rates to encourage visits; • Provided links for member properties, with website averaging 200,000 hits per month or 2.4 million per year; 4,400 unique visitors per month or 52,800 unique visitors per year AND GROWING'. • Website won First Place Best Tourism Bureau Website by North American Travel Journalist Association; • Responded to phone calls, entails, ad response cards requesting local visitor information; • Participated in Adventures in Travel leisure travel show, POWWOW, Go West Summit,NTA Spring Meet, San Francisco Travel Expo and NTA Annual(co sponsoring welcome reception with CTTC for tour planners from all over the world), as well as California Travel Market show; • Updated smaller guides on filming in San Mateo County, beaches,recreation,family activities and graveyards and historical areas,to generate additional interest in our area; • Created tour and travel CD for`distribution at tradeshows and other promotional venues; 2 • Created International converter promo piece for distribution at International tradeshows and fain tours; • Manned a visitor center in downtown Palo Alto; • Maintained visitor kiosk at Hiller Aviation Museum for drive in visitors; • Continued discounted car rental program with Enterprise Rent-a-Car, offering deep discounts to those coming to San Mateo County; • Placed ads aimed at individual/leisure travelers in: CA Visitor Guide(750,000 copies),Sunset Magazine (seven editions), California Co-op featured in Travel+Leisure,National Geographic Traveler,Budget Travel, Food& Wine, Vancouver Sun and American Express direct mail campaign, Society of American Travel Writers Directory, See America Directory, Stanford Students &Faculty Annual Directory(and online directory),Destination Palo Alto online, The California League, fostertravel.com (online travel guide) and The Sacramento Bee. Total readership for all leisure travel ads was well over 26 million. • Continued campaign to position and market San Mateo County as a top culinary tourism destination; • Built upon partnership with San Mateo County Farm Bureau, San Mateo County Harbor District to encourage SMC restaurants, hotels and caterers to buy and serve the freshest local produce, seafood, wine, beer and goat dairy products; • Sent/delivered fresh local products to meeting planners to call attention to the high quality of our cuisine; • Took chefs right onto the farms and docks for fourth annual tour to learn about fresh products and make purchasing connections; MEDIA OUTREACH • Attended two national and one local travel writer shows in 2009: North American Travel Journalists Association and International Powwow, meeting in a marketplace setting with over 100 travel writers and pitching all types of stories, including SMC's "As Fresh As It Gets" Culinary Tourism Campaign,Wining and Dining in San Mateo County, Convention&Exhibition Centers, Family Travel,Mature and Inter-Generational Travel,Holiday Escapes, Sun Destinations, SMC Conference and Meeting Facilities, SMC Convention and Visitors Bureau services; San Francisco International Airport; Nature Tourism; Golf, Spas and Luxury Travel; Romantic Coastside; Beaches; Coastside Drive; Trails (Walking, Hiking,Biking); "Togethering" in San Mateo County, and Entertainment and Nightlife. Met with international travel writers to pitch San Mateo County stories in international travel media. • Developed strong relationships and writer interest in prospective articles about San Mateo County/Silicon Valley. • Generated over 42 articles (some published in multiple newspapers) in addition to several inclusions in California Travel and Tourism Commission releases,which are distributed to hundreds of public relations and media outlets worldwide; • Conducted multiple individual fam tours for travel writers from throughout the country; • Conducted a very successful media tour of San Mateo County for travel writers from across the U.S. , which has already resulted in multiple articles in theantitourist.com,West Jet Airlines up! Magazine, Philippine Airlines Magazine,Mabuhay Magazine;The San Francisco Examiner, Hitched Magazine and California Home and Design Magazine. • Customized stories to fat needs of extensive media calendars we have purchased, sending numerous "made to fit"pieces out on a monthly basis; • Followed up on leads from SATW,Media Kitty, NATJA and numerous other travel publicity lead generators with hundreds of requests from travel writers for information for specific stories; 3 • Worked closely with the California Travel and Tourism Commission(CTTC) team,responding to all publicity leads that came in to the state (internationally and regional publications); • Continued to build our media database, allowing us to send editorial ideas to numerous publications and travel media outlets on a monthly basis. (In the last year, we have emailed editorial ideas on our county to several hundred travel editors each month,in addition to sending information to fit their prescheduled stories.); • Made presentations on SMC before the Bay Area Travel Writers and North American Travel Journalists Association and assisted in booking their monthly meetings in interesting SM County venues to enhance their knowledge of San Mateo County; • Added an online interactive Calendar of Events to our website • Brought Social Media to the CVB by creating and a Facebook fan and group site, LinkedIn profile and monitoring our yelp.com profile, as well as creating a Twitter feed with almost 1000 followers. Updates on area events are posted daily. FILMING OUTREACH • Recruited 2 feature films, 5 "indie" small films, advertising and video productions (with small crews) through our film commission.These included feature films; "My Name Is Kahn" and"Funny People" starring Adam Sandler; Indie Films; "I'll Catch You", "Red Ice", "Melvin Smarty"and"A Stitch In Time"; TV Shows&TV Pilots; "America's Most Wanted", "Trauma",MTV's "Teen Cribs", Japan's "World's Most Astonishing News"BBC's "Digital Revolution",PBS's "'Telescopes: Quest to See Infinity"and"Chefs in the City"; Documentaries; National Geographic's, "Earth From Above"and"Wild", "I Phone"Documentary; TV Commercials; Chase Bank, Polaris, Anti Theft, Denmark Web TV Project, Lenscrafters, International Truck,Radio Shack, and several corporate videos; One Music Video; Still Shoots; McAfee, Subaru,BMX Fashion Shoot, Lowe's and various small and large fashion catalogue still shoots; • Continued active recruitment of filming of all kinds by targeting professional location scouts and location managers, sending out monthly email updates of new/interesting filming locations to the Northern California Location Scouting/Managers Internet List AND the Southern California Location Scouting/Managers Internet List; • Provided ongoing script breakdowns for proposed film projects,matching them with available San Mateo County locations and sending appropriate images of venues from our digital library; • Continued to increase the number of photographs in digital library for use in promotion to film industry; • Handled average of 20 requests per week for filming/permitting assistance to make production easier for film crews; • Participated in film industry trade shows, including the "Locations"Trade Show,put on by the AFCI(Association of Film Commissioners International, of which we are an active member.)This is the world's largest locations trade show, geared to reach an audience of filmmakers--producers, directors, location managers and location scouts; • Showcased San Mateo County in the Creative Handbook,the Reel Directory&Propville(industry publications distributed to film industry professionals). ADDITIONAL OUTREACH • Continued to work closely with team at SFO,welcoming new airlines to our area; • Attended new airline/new flight service ceremonies at SFO, creating strong visibility for San Mateo County with new carriers; • Met with multiple arts organizations,to assist with promotion to visitors; • Gave numerous speeches and presentations in Bay Area in effort to get local assistance with recruitment; 4 • Continued to build relationships with Cow Palace, South San Francisco Conference Center and San Mateo County Event Center,working to bring leads to their sales teams and assist in closing business; • Worked with SFO, SamTrans, CalTrain and BART to promote our area as easily accessible; • Continued outreach to chambers and cities in county in order to include key area events in our events calendars and to maximize our searches for filming venues. 5 San Mateo County Convention &Visitors Bureau Terms of Office 2010 2010-2011-2012 Len Almalech, Enterprise Rent-a-Car Ken Landis, Landis Shores — Unincorporated County Kandace Bender, SFO Jim McGuire. Best Western Grosvenor, SSF Stephanie Bauer, SM Marriott Wayne Meyer — Half Moon Bay Brewing Co. Dana Dahl — Beach House, Half Moon Bay Roger Life, Crowne Plaza, Burlingame 2009 - 2010 - 2011 Stan Moore, SFO Marriott- Burlingame Sandra O'Toole, SSF Conference Center - SSF Chris Carpenter, San Mateo County Event Center— San Mateo . Mitch Postel, San Mateo County Historical Association — Redwood City Derek Hudson, Hilton Garden Inn - San Mateo Jeff Bass — Hiller Aviation Museum — San Carlos John Hutar — Sofitel, Redwood City Jim Ensign — Burlingame hotelier 20o8 - 2009 - 2010 Scott Castle, Crowne Plaza — Foster City Larry Ivich, Hillsdale Shopping Center Rudy Ortiz, Embassy Suites — SSF Scott VandenBerg, Hyatt Regency— Burlingame Barry Ongerth, Travelodge Millbrae- Millbrae Tracy Mercer — Four Seasons East Palo Alto Ryan Laskey—Westin SFO, Millbrae Darrell Buettner — Holiday Inn Express, Belmont SMCCVB Board Officers for 2010 Chair: Rudy Ortiz - Embassy Suites SSF Chair-Elect: Scott VandenBerg, Hyatt SFO Secretary: Derek Hudson, Hilton Garden Inn Treasurer: Dana Dahl, The Beach House, HMB Immed. Past Chair: Ken Landis — Landis Shores, Uninc. SMC Vice Chair: Kandace Bender, SFO Vice Chair: Barry Ongerth, SF Airport South Travelodge, MB Vice Chair: Mitch Postel, San Mateo County History Museum Vice Chair: John Hutar Sofitel SF Bay, Redwood City CITY o� STAFF REPORT BURUNGAM_E AGENDA ITEM# 8h �cO4n MTG. °AaTE° E b DATE November 2,2009 TO: HONORABLE MAYOR AND CITY COUNCIL SUBMITTED B DATE: October 27,2009 APPROVED B FROM: Jesus Nava, Finance Director 558-7222 SUBJECT: Securitization of Proposition 1A Loan to the State In the Amount of$1.1 Million RECOMMENDATION: That the City Council confirm the Proposition I loan to the State of California in the amount of $1.14 million and authorize the use of General Fund reserves to augment any potential budgetary shortfall until repayment of the loan in 2013. BACKGROUND: On July 28, 2009, Governor Arnold Schwarzenegger signed the FY2010 State Budget, which requires cities, counties, and special districts ("local governments")to lend 8% of property tax revenues to the State, with the promise of repayment in three years. Local governments can receive the monies being borrowed by the State upfront through a securitization financing offered by California Communities, a joint powers authority sponsored by the League of California Cities and California State Association of Counties. California Communities will issue bonds securitizing the future payments by the State and remit the proceeds of the bonds to the local governments who opt to participate in the securitization. The State will then repay the bondholders, to pay off the outstanding bonds including interest costs. DISCUSSION: The city has sufficient reserves in the General fund to make the loan without securitization. The State of California will pay an annual interest rate of 2% on the loan. Currently a 3-year Treasury yields 1.5%. FISCAL IMPACT: The County will withhold $1.14 million in property tax revenue collections in fiscal year 2009- 2010. The unaudited, year-end unallocated general fund balance is $7.2 million of which the entire amount is designated as reserves by the City Council. The loan will reduce the fund balance to $6.06 million. Repayment by the State is scheduled for July 1, 2013. 1 F F Y SAN MATEO COUNTY E*114"TLD ' PROPERTY TAX REVENUES-CITIES FOR THE FISCAL YEAR 2008-2009 TAX FY 08109 SECURED UNSECURED SUPPLEMENTAL IN LIEU OF PROPERTY TAX ACCT. TAXES TAXES TAXES SALES TAX IN LIEU OF VLF REVENUES 8%Allocation NO. CITIES 00100 General County 162,611,459 9,499,349 7,985,204 5,131,953 73,503,067 258,731,032 20,698,483 10101 Town of Atherton 4,453,344 276,459 144,537 31,528 623,670 5,529,537 442,363 10701 City of Belmont 2,387,722 11,329 146,998 804,955 1,910,762 5,261,765 420,941 10901 City of Brisbane 1,797,131 -13,894 82,106 3,573,280 264,418 5,703,042 456,243 11301 City of Burlingame 8,926,486 547,044 317,998., 2,388,998.. 2,136,409 14,315,854 1,145,266 11801 Town of Colma 333,966 3,927 4,587 1,838,505 106,326 2,287,311 182,985 12301 City Of Daly City 14,263,030 890,910 681,257 2,528,884 7,864,763 26,228,845 2,098,308 74630 Daly City Sani District 1,314,592 77,811 40,324 0 0 1,432,727 114,618 12701 City of East Palo Alto 3,792,480 261,500 282,487 671,925 3,097,965 8,106,358 648,509 14401 City of Half Moon Bay 1,206,140 71,387 59,757 570,104 943,535 2,850,924 228,074 14701 Town of Hillsborough 9,123,292 565,275 290,898 25,480 817,624 10,822,569 865,806 15701 City of Menlo Park 7,399,192 381,530 313,959 2,029,297 2,331,340 12,455,318 996,425 15801 City of Millbrae 3,423,305 205,875 164,013 590,162 1,670,899 6,054,254 484,340 16701 City of Pacifica 7,935,250 496,111 318,562 449,379 3,009,640 12,208,942 976,715 17901 Town of Portola Valley 1,225,393 44,251 30,064 71,494 343,394 1,714,596 137,168 78707 Portola Valley Ranch Road 471 29 14 0 0 514 41 78740 Woodside Hiland Rd Maint. 24,520 1,501 712 0 0 26,733 2,139 18401 Redwood City Area#1 15,763,192 920,639 678,816 4,446,767 5,730,537 27,539,952 2,203,196 18403 Redwood City Area#3 7,497,365 315,746 232,992 0 0 8,046,103 643,688 18420 Redwood City Parking#1 28,183 -5,080 2,701 0 0 25,804 2,064 18430 Redwood City Gen Imp DS 1-64 611,320 37,800 18,054 0 0 667,174 53,374 18501 City of San Bruno 4,858,684 339,732 268,577 1,725,793 3,396,411 10,589,197 847,136 18601 City of San Carlos 6,045,430 525,813 254,558 1,804,682 2,101,670 10,732,153 858,572 18701 City of San Mateo 21,740,183 1,315,213 954,562 4,105,614 7,187,659 35,303,231 2,824,258 19401 City of So San Francisco 14,909,847 81,641 677,372 3,327,079 5,563,165 24,559,105 1,964,728 19701 Town of Woodside 2,188,246 94,377 57,033 140,587 4,174,667 6,654,910 532,393 72810 Town Center Sewer Maint. 30,152 1,858 917 0 0 32,927 2,634 303,889,354 16,948,135 14,009,060 36,256,407 126,777,921 497,880,877 39,830,470 POLICE DEPARTMENT BURLI NGAME City of Burlingame Jack L. Van Etten Chief of Police October 15, 2009 Honorable Mayor and Members of the City Council: Police Department Statistics and Highlights for the month of September, 2009 DEPARTMENTAL INFORMATION: -One new recruit officer (funded with the state COPS grant) continues in the 14 week Field Training Program. •Beginning "lateral officer" testing anticipating 2 officer vacancies in this current FY. •One sworn officer (24 months) continues to remain out on long-term leave. -One dispatcher out on leave for 2 years is returning to duty in October. ■BPD continues its active involvement (3 weeks in the winter and 8 weeks in the summer) with the County Gang Task Force which is currently in its "maintenance" mode during the fall and winter months. Staffing (due to combined countywide police reductions) has dropped from 3 County GTF teams to 2. -Reported Part 1 (SeriousNiolent) Crimes in Burlingame for September continues to be down from last year (61) compared to (101) and YTD (717 vs. 776); while Reported Part 2 Crimes for September remain the same compared to last year, (171) compared to (171), but continue to drop YTD from last year (1,573 vs. 1,769). As I've mentioned our community should NEVER take safety for granted. The downturn in the economy, unemployment and uncertainty, reductions in state and local budgets, the elimination of law enforcement officers and programs in every community statewide will certainly cause reported crime to rise in all communities, including ours. CrimeReports.com is a very efficient program for our citizens to view locations of reported crimes in our city and in our neighborhoods. There is also an email notification portion to this service that can alert our citizens of reported crimes near their homes. sCOPLINK (a statewide information sharing) project funded with grant monies is being implemented in SM, SF, SC and Alameda Counties to share information on gangs, gang members and all criminal activities. •A state grant of$18,000 was just approved for seatbelt enforcement in our community. TRAFFIC AND PARKING INFORMATION: •Moving citations have decreased slightly this FY for YTD: 4,186 vs. 4,373 (the same time last year). Even with reduced staffing, BPD continues to provide specialized traffic motorcycle officer enforcement (when available) and selective enforcement of citizen generated traffic complaints in problem areas by patrol officers, all of which are focused on the police department's commitment to our community's safety. •Parking citation totals are similar to last year for YTD 25,497 (current) vs.25, 542 (the same time last year). -Red Light photo enforcement is actively working at ECR and Broadway; system expansion is being considered. *The pilot daytime parking permit program will be considered for permanent status (by Council) in the future. MONTHLY STATISTICAL INFORMATION: •Please remember that the monthly police department report is displayed in both numbers and percentages. When reviewing the police department report remember to consider the actual numbers of various crime categories in conjunction with the percentages. Kindly feel free to contact me if you have any questions. Chief Jack Van Etten 1111 Trousdale Drive - Post Office Box 551 - Burlingame, California 94011-0551 - (650) 777-4100 - Fax (650) 697-8130 10-13-09 SUMMARY OF PART ONE OFFENSES PACE: 1 FOR: SEPTEMBER, 2009 Prev Last Act Act YTD YTD Crime Classification.................... Current Year.. YTD... YTD... Change $ Change Murder and Nonnegligent Manslaughter 0 0 0 0 0 Manslaughter by Negligence 0 0 1 0 1 Rape By Force 0 0 3 3 0 0.00 Attempt to Commit Forcible Rape 0 0 1 0 1 Robbery Firearm 1 3 4 8 -4 -50.00 Robbery Knife 0 0 3 3 0 0.00 Robbery Other Dangerous Weapon 0 0 3 0 3 Robbery Strong-Arm 0 1 8 9 -1 -11.11 Assault - Firearm 0 2 0 2 -2 -100.00 Assault - Knife 0 0 1 2 -1 -50.00 Assault - Other Dangerous Weapon 2 3 22 14 8 57.14 Assault - Hands,Fists,Feet 1 0 5 8 -3 -37.50 Assault - Other (Simple) 5 17 105 101 4 3.96 Burglary - Forcible Entry 4 2 34 43 -9 -20.93 Burglary - Unlawful Entry 4 6 57 58 -1 -1.72 Burglary - Attempted Forcible Entry 2 1 9 7 2 28.57 Larceny Pocket-Picking 0 0 0 0 0 Larceny Purse-Snatching 0 0 0 1 -1 -100.00 Larceny Shoplifting 1 2 32 15 17 113.33 Larceny From Motor Vehicle 17 29 207 223 -16 -7.17 Larceny Motor Veh Parts Accessories 4 12 46 76 -30 -39.47 Larceny Bicycles 3 3 21 22 -1 -4.55 Larceny From Building 6 7 46 54 -8 -14.81 Larceny From Any Coin-Op Machine 0 0 10 1 9 900.00 Larceny All Other 5 8 46 65 -19 -29.23 Motor Vehicle Theft Auto 4 4 40 45 -5 -11.11 Motor Vehicle Theft Bus 1 0 11 9 2 22.22 Motor Vehicle Theft Other 1 1 2 7 -5 -71.43 ------- ------ ------ ------ 61 101 717 776 61 101 717 776 10-13-09 MONTHLY SUMMARY OF PART TWO OFFENSES PACE: 1 CITY REPORT FOR: SEPTEMBER, 2009 Prev Last Act Act YTD YTD Crime Classification.................... Current Year.. YTD... YTD... Change 16 Change All Other Offenses 37 27 332 329 3 0.91 Animal Abuse 0 0 0 0 0 Animal Nuisance 0 0 1 1 0 0.00 Arson 0 0 14 4 10 250.00 Assists to Outside Agencies 0 0 0 0 0 Bicycle Violations 0 0 0 0 0 Bigamy 0 0 0 0 0 Bomb Offense 0 0 0 0 0 Bomb Threat 0 0 0 1 -1 -100.00 Bribery 0 0 0 0 0 Check Offenses 1 0 3 3 0 0.00 Child Neglect/prot custody 8 1 37 34 3 8.82 Computer Crime 0 0 0 0 0 Conspiracy 0 0 0 0 0 Credit Card Offenses 0 0 4 4 0 0.00 Cruelty to Dependent Adult 0 0 0 0 0 Curfew and Loitering Laws 0 0 1 0 1 Death Investigation 1 2 17 19 -2 -10.53 Disorderly Conduct 2 1 9 9 0 0.00 Driver's License Violations 0 0 2 2 0 0.00 Driving Under the Influence 4 3 49 67 -18 -26.87 Drug Abuse Violations 1 6 16 21 -5 -23.81 Drug/Sex Registrants/Violations 0 0 0 0 0 Drunkeness 1 2 14 36 -22 -61.11 Embezzlement 2 1 9 5 4 80.00 Escape 0 0 0 0 0 Extortion 0 0 0 0 0 False Police Reports 1 0 2 1 1 100.00 False Reports of Emergency 0 0 0 0 0 Fish and Game Violations 1 0 3 0 3 Forgery and Counterfeiting 5 0 27 37 -10 -27.03 Found Property 10 9 60 58 2 3.45 Fraud 1 2 14 24 -10 -41.67 Gambling 0 0 0 0 0 Harrassing Phone Calls 0 1 10 14 -4 -28.57 10-13-09 MONTHLY SUMMARY OF PART TWO OFFENSES PAGE: 2 CITY REPORT FOR: SEPTEMBER, 2009 y Prev Last Act Act YTD YTD Crime Classification.................... Current Year.. YTD... YTD... Change ; Change Hit and Run Accidents 2 4 30 35 -5 -14.29 Impersonation 0 0 3 3 0 0.00 Incest 0 0 0 0 0 Indecent Exposure 0 0 1 4 -3 -75.00 Intimidating a Witness 0 0 0 1 -1 -100.00 Kidnapping 0 0 0 0 0 Lewd Conduct 1 0 1 0 1 Liquor Laws 1 1 19 5 14 280.00 Littering/Dumping 0 0 0 0 0 Marijuana Violations 2 1 26 14 12 85.71 Mental Health Cases 9 9 92 55 37 67.27 Missing Person 1 3 13 33 -20 -60.61 Missing Property 3 7 44 57 -13 -22.81 Municipal Code Violations 7 6 33 49 -16 -32.65 Narcotics Sales/Manufacture 0 0 1 1 0 0.00 Offenses Against Children 1 0 4 4 0 0.00 Other Assaults 5 17 105 101 4 3.96 Other Juvenile Offenses 1 0 3 17 -14 -82.35 Other Police Service 3 0 11 18 -7 -38.89 Pandering for immoral purposes 0 0 0 0 0 Parole Violations 0 0 2 3 -1 -33.33 ' Perjury 0 0 0 0 0 Possession of Burglary Tools 0 0 0 2 -2 -100.00 Possession of drug paraphernalia 0 0 0 0 0 Possession of obscene literature;picture 0 0 0 0 0 Probation Violations 0 0 1 2 -1 -50.00 Prostitution and Commercial Vice 0 0 2 0 2 Prowling 0 0 5 0 5 Resisting Arrest 0 0 3 5 -2 -40.00 Restraining Orders 0 0 0 1 -1 -100.00 Runaways (Under 18) 0 0 0 0 0 Sex Offenses 0 0 2 0 2 Sex Offenses against Children 0 0 0 3 -3 -100.00 Sodomy 0 0 0 0 0 Stalking 0 0 0 1 -1 -100.00 10-13-09 MONTHLY SUMMARY OF PART TWO OFFENSES PAGE: 3 CITY REPORT FOR: SEPTEMBER, 2009 Prev Last Act Act YTD YTD Crime Classification.................... Current Year.. YTD... YTD... Change $ Change Statutory Rape 0 0 0 0 0 Stolen Property;Buying;Receiving;Possess 0 0 4 3 1 33.33 Suspended License 1 5 39 45 -6 -13.33 Tax Evasion 0 0 0 0 0 Terrorist Threats 0 1 1 8 -7 -87.50 Towed Vehicle 33 34 266 306 -40 -13.07 Trespassing 1 0 6 9 -3 -33.33 Truants/Incorrigible Juvs 0 0 0 1 -1 -100.00 US Mail Crimes 0 0 0 0 0 Vagrancy 0 0 0 0 0 Vandalism 14 21 112 172 -60 -34.88 Vehicle Code Violations 5 4 38 33 5 15.15 Violation of Court Order 6 1 16 22 -6 -27.27 Warrants - Felony 2 2 11 17 -6 -35.29 Warrants - Misd 3 6 48 63 -15 -23.81 Weapons;Carrying,Possessing 1 0 7 7 0 0.00 Welfare Fraud 0 0 0 0 0 ------- ------ ------ ------ 177 177 1,573 1,769 ======= =c==== ====== =_===_ 177 177 1,573 1,769 10-13-09 MONTHLY SUMMARY OF CITATIONS PAGE : 1 CITY REPORT FOR: SEPTEMBER, 2009 Prev Last Act Act Crime Classification. . . . . . . . . . . . . . . . . . . . Current Year. . YTD. . . YTD. . . Parking Citations 2270 3 , 542 25, 497 25, 542 Moving Citations 346 503 4 , 186 4 , 373 ------- ------ ------ ------ 2616 4, 045 29, 683 29, 915 ------- ------ ------ ------ ------- ------ ------ ------ 2616 4 , 045 29, 683 29, 915 BURLINGAME Officer Productivity. . . . generated on 10/13/2009 at 02 : 02 : 36 PM Reported On: All Officers Report Range: 09/01/2009 to 09/30/2009 Data Type Reported on: PARKING Valid % All Voids All officer: ID: Cnt valid Cnt Voids Valid ------------------------------------------------------------------------------------------------------------------------ ALVISO 355 696 35.49 6 18.75 99.15 DOTSON 509 491 25.04 12 37.50 97.61 MACDEVITT 511 373 19.02 8 25.00 97.90 SERRANO 510 332 16.93 6 18.75 98.22 SMITH 654 69 3.52 0 0.00 100.00 Total 1961 32 Page 1 of 1 CITY OF BURLINGAME PLANNING COMMISSION eKolk"GA%MINo . IE UNAPPROVED MINUTES 1 . F; Tuesday, October 13, 2009— 7:00 p.m. City Council Chambers—501 Primrose Road Burlingame, California I. CALL TO ORDER Chair Terrones called the October 13, 2009 regular meeting of the Planning Commission to order at 7:01 p.m. II. ROLL CALL Present: Commissioners Auran, Brownrigg, Terrones, Lindstrom, Yie, Vistica and Terrones Absent: None Staff Present: Community Development Director, William Meeker; Senior Planner, Ruben Hurin; City Attorney, Gus Guinan; and Senior Civil Engineer, Doug Bell III. MINUTES Commissioner Vistica moved, seconded by Commissioner Cauchi to approve the minutes of the September 28, 2009 regular meeting of the Planning Commission, with the following correction: ■ Page 3, Item 2, fourth bullet under "Commission comments'; revised to read: Requested phone number for the applicant and neighboring property owner at 2606 Summit Drive. Motion passed 7-0. IV. APPROVAL OF AGENDA There were no changes to the agenda. V. FROM THE FLOOR No one spoke from the floor. VI. STUDY ITEMS There were no Study Items for discussion. VII. ACTION ITEMS Consent Calendar- Items on the Consent Calendar are considered to be routine. They are acted upon simultaneously unless separate discussion and/or action is requested by the applicant, a member of the public or a Commissioner prior to the time the Commission votes on the motion to adopt. Chair Terrones asked if anyone in the audience or on the Commission wished to call any item off the consent calendar. Item 1 was pulled from the Consent Calendar by a member of the public. 1 CITY OF BURLINGAME PLANNING COMMISSION—Unapproved Minutes October 13,2009 Commissioner Auran announced he would recuse himself from voting on Item 1 (1257 Drake Avenue) since he lives within 500-feet of the property,he left the Council Chambers. CommissionerBrownrigg notec, that he would abstain from voting on Item 1(1257 Drake Avenue)since he had not listened to the recording of the Design Review Study Session regarding the matter. VIII. REGULAR ACTION ITEMS 1. 1257 DRAKE AVENUE,ZONED R-1—APPLICATION FOR DESIGN REVIEW FOR ANEW,TWO-STORY SINGLE FAMILY DWELLING AND DETACHED GARAGE (TRG ARCHITECTS, APPLICANT AND ARCHITECT;AND OTTO MILLER,PROPERTY OWNER)STAFF CONTACT:ERICA STROHMEIER Reference staff report dated October 13, 2009, with attachments. Community Development Director Meeker presented the report, reviewed criteria and staff comments. Fourteen (14) conditions were suggested for consideration. Chair Terrones opened the public hearing. Randy Grange,205 Park Road;represented the applicant. Commission comments: • Asked if there was any communication with the neighbor to the rear that objected to the deck? (Grange—no.) Public comments: —� Bruce Bainton, 1907 Easton Drive,spoke: • No easement between the properties; current home was constructed in a manner that protects privacy. Concerned that the two-story home will impact his privacy. Additional Commission comments: • If the balcony were moved,would it help to protect the privacy of 1907 Easton Drive? (Bainton— Would still be a concern;would still be a direct view into the back yard. Concern is the second story.) • The two story portion of the home is closer to Drake Avenue;this could help to reduce impacts of the new home. • The rear of the home ends roughly where other existing homes end,shouldn't be an impact;doesn't extend upon the accessory building on 1261 Drake Avenue. • Could be a good opportunity to place the landscape materials in a manner to block sight lines between properties. Additional comments from applicant: • Revising the landscaping is not a problem. • The second story deck did not seem to be the issue,so it was retained. 2 CITY OF BURLINGAME PLANNING COMMISSION — Unapproved Minutes October 13, 2009 Further Commission comments: ■ Like the design of the project, the applicant has expressed a willingness to enhance the landscaping at the rear of the property to address the neighbor's (1907 Easton Drive) concern regarding privacy impacts. ■ Suggested directing that the landscape plan be enhanced to protect privacy and brought back to the Commission as an FYI. ■ Relocating the balcony will not address the neighbor's concern. ■ Appreciate the reduction in the size of bathrooms. ■ Appreciate the balcony to provide an outdoor space. ■ Good project, it does not project deeply into the rear yard. ■ Ensuring privacy of neighbors is not the purview of the Commission; it does the best it can to address these concerns; suggested perhaps installing Pittosporum, or other similar plant material suggested by the City Arborist. Commissioner Vistica moved to approve the application, by resolution, with the following amended conditions: 1 . that the project shall be built as shown on the plans submitted to the Planning Division date stamped September 30, 2009, sheets Al .1 through A3.1 ; and date stamped August 19, 2009, sheets A3.2, A3.3, L1 .0 and boundary and topographic survey. 2. that the landscape plan shall be revised to show the planting of landscape materials that will provide screening to protect privacy of adjacent neighbors to the rear of the property, particularly 1907 Easton Drive. The revised landscape plan shall be submitted for review and approval by the �. Planning Commission as an FYI item prior to issuance of a building permit; 3. that any changes to building materials, exterior finishes, windows, architectural features, roof height or pitch, and amount or type of hardscape materials shall be subject to Planning Division or Planning Commission review (FYI or amendment to be determined by Planning staff); 4. that any changes to the size or envelope of the basement, first or second floors, or garage, which would include adding or enlarging a dormer(s), shall require an amendment to this permit; 5. that the conditions of the Chief Building Official's August 20, 2009, memo, the City Engineer's August 24, 2009, memo, the Fire Marshal's August 24, 2009, memo, the City Arborist's August 25, 2009, memo, and the NPDES Coordinator's August 25, 2009, memo shall be met; 6. that demolition for removal of the existing structures and any grading or earth moving on the site shall not occur until a building permit has been issued and such site work shall be required to comply with all the regulations of the Bay Area Air Quality Management District; 7. that prior to issuance of a building permit for construction of the project, the project construction plans shall be modified to include a cover sheet listing all conditions of approval adopted by the Planning Commission, or City Council on appeal; which shall remain a part of all sets of approved plans throughout the construction process. Compliance with all conditions of approval is required; the conditions of approval shall not be modified or changed without the approval of the Planning Commission, or City Council on appeal; 3 CITY OF BURLINGAME PLANNING COMMISSION— Unapproved Minutes October 13, 2009 8. that all air ducts, plumbing vents, and flues shall be combined, where possible, to a singlf termination and installed on the portions of the roof not visible from the street; and that these venting details shall be included and approved in the construction plans before a Building permit is issued; 9. that the project shall comply with the Construction and Demolition Debris Recycling Ordinance which requires affected demolition, new construction and alteration projects to submit a Waste Reduction plan and meet recycling requirements; any partial or full demolition of a structure, interior or exterior, shall require a demolition permit; 10. that during demolition of the existing residence, site preparation and construction of the new residence, the applicant shall use all applicable "best management practices" as identified in Burlingame's Storm Water Ordinance, to prevent erosion and off-site sedimentation of storm water runoff; 11. that the project shall meet all the requirements of the California Building and Uniform Fire Codes, 2007 Edition, as amended by the City of Burlingame; THE FOLLOWING CONDITIONS SHALL BE MET DURING THE BUILDING INSPECTION PROCESS PRIOR TO THE INSPECTIONS NOTED IN EACH CONDITION 12. that prior to scheduling the foundation inspection, a licensed surveyor shall locate the property corners, set the building footprint and certify the first floor elevation of the new structure(s)based on the elevation at the top of the form boards per the approved plans; this survey shall be accepted by the City Engineer; 13. that prior to scheduling the framing inspection the project architect or residential designer, or anothe architect or residential design professional, shall provide an architectural certification that the architectural details shown in the approved design which should be evident at framing, such as window locations and bays, are built as shown on the approved plans; architectural certification documenting framing compliance with approved design shall be submitted to the Building Division before the final framing inspection shall be scheduled; 14. that prior to scheduling the roof deck inspection, a licensed surveyor shall shoot the height of the roof ridge and provide certification of that height to the Building Division; and 15. that prior to final inspection, Planning Division staff will inspect and note compliance of the architectural details (trim materials, window type, etc.) to verify that the project has been built according to the approved Planning and Building plans. The motion was seconded by Commissioner Yie. Discussion of motion: ■ None. Chair Terrones called fora voice vote on the motion to approve. The motion passed 5-0-1-1 (Commissioner Brownrigg abstaining, Commissioner Auran recused). Appeal procedures were advised. This item concluded at 7:23 p.m. Commissioner Auran returned to the dais. --� 4 CITY OF BURLINGAME PLANNING COMMISSION—Unapproved Minutes October 13,2009 �!. 12 VISTA LANE, ZONED R-1 —APPLICATION FOR TENTATIVE AND FINAL PARCEL MAP AND VARIANCE FOR LOT FRONTAGE(DENHAM LLC,APPLICANT AND PROPERTY OWNER,MACLEOD AND ASSOCIATES,CIVIL ENGINEER) a. TENTATIVE AND FINAL PARCEL MAP FOR A LOT SPLIT OF PARCEL A,BLOCK 4, BURLINGAME HILLS NO.2 SUBDIVISION, 12 VISTA LANE-PM 09-04—PROJECT ENGINEER:VICTOR VOONG b. VARIANCE FOR LOT FRONTAGE FOR CREATION OF TWO LOTS WITH 55-FOOT WIDE STREET FRONTAGE WHERE 60 FEET OF STREET FRONTAGE IS REQUIRED— STAFF CONTACT:RUBEN HURIN Reference staff report dated October 13,2009,with attachments. Senior Planner Hurin presented the report,reviewed criteria and staff comments. Two(2)conditions were suggested for consideration. Chair Terrones opened the public hearing. Alex Mortazavi,851 Burlway Road,represented the applicant. • Asked that his property be treated in a manner similar to the rest of the neighborhood(located in unincorporated San Mateo County). • Four properties within the surrounding area fall below Burlingame's lot frontage of 55-feet. • Willing to create a widened area that will provide parking on the property adjacent to Vista Lane. • If a cul-de-sac is provide,it would require the homes to be placed further back on the lots,resulting in greater impacts upon views. • Having a fully landscaped area at the front of the lots will provide a more pleasing appearance. • The two homes will provide a landscaped area and view corridor of 12-feet between the two structures. • Approval of the Variance is not a grant of special privilege; only wish to be treated in the same manner as adjacent properties. • The City would require curb,gutter and sidewalk if the cul-de-sac is provided;no other properties in the area are subject to that requirement. • Showed photographs of encroachments into Vista Lane by adjacent property owners. • Landscaping also encroaches into the County controlled street. • New homes will be subject to design review by the Planning Commission. Commission comments: • How small are the new homes? (Mortazavi—3,200 square feet.) • An alternative to the cul-de-sac or lot split is no lot split. (Mortazavi—will result in a larger home that does not belong in the area;would be necessary for economic reasons.) • Clarified that the property was subject to City requirements when it was purchased. (Mortazavi—the County rules are much different.) • Clarified that the City Engineer does not want the City to be responsible for a cul-de-sac,also that this approach would result in the homes being placed further back on the property,blocking views. (Mortazavi—confirmed this information.) • Is San Mateo County "ok"with widening the street? (Mortazavi —will require approval of an encroachment permit by San Mateo County.) 5 CITY OF BURLINGAME PLANNING COMMISSION— Unapproved Minutes October 13, 2009 Public comments: Marc Bender (representing owners of 16 Vista Lane), 520 South EI Camino Real, San Mateo; Frank Verducci, 11 Vista Lane: Yvonne McCarthy, 15 Vista Lane; Michelle Menendez, 23 Vista Lane; Eileen Thomas, 16 Vista Lane; • The property could be developed with one large home; there is no justification for building two homes. • All residents on Vista Lane will need to pass the homes if built; an additional lot will create gridlock in the area. • Cars will turn from a steep area of Hillside Drive onto Vista Lane and immediately come upon the two lots. • Views from 16 Vista Lane will be completely blocked by development on the lots. • In response to the comments regarding encroachments by the neighbors; indicated that these are existing conditions;the street has existed in its current state since 1988; the neighborhood is small and the street has limited drivability. • Noted that there is a large water tank on the property; what will happen to the tank? (Terrones — according to the application, the water tank will be filled to permit development in the area.) • Why to the houses need to be so close to the front of the lots? • Will additional paving be used for parking, or for the street? (Hurin—the Vista Lane right-of-way is 25-feet wide, but paving is not that wide.) • Children play in the street; there is also a concern about safety during construction; emergency services need to access across the street. • Would the fire hydrant on Vista lane be relocated? • The widened street will be used for parking. • The property owner purchased the property subject to the City's standards that only one home coul be placed on the property in its current configuration. • The property owner has had other options in the past; he has tried to sell the property. Additional comments from applicant: • The County right-of-way for Vista Lane extends seven to nine feet past the existing paving. • The street will be widened in front of the two lots. • The existing encroachments by the neighbors cause the difficulties in navigating the street. • He is attempting to improve the existing bad situation. • Two homes will only generate two or three additional cars on the street. • Parties and construction activities create challenges for traversing the street. • He wrote a letter to the fire marshal regarding the presence of only one fire hydrant on Vista Lane; the property owner is willing to move it for everyone's safety. • Bender's statement is incorrect,there is a large Oak tree that blocks the entire view to the right from 16 Vista Lane; building a home further down the slope (rearward) on the lot(s)will exacerbate view impacts. • Regarding the water tank; the top will be collapsed and the tank filled prior to development. • Not asking for a special favor; this is the best alternative for the community. Additional Commission comments: • The neighbors would have the moral high ground if they hadn't encroached upon the right-of-way. • Does placement of the homes further back on the lot more greatly impact views? (Bender—would completely block views.) CITY OF BURLINGAME PLANNING COMMISSION— Unapproved Minutes October 13, 2009 • Not currently considering the development of the lots, and view blockage; this will be considered through the design review process. • Is there a driveway configuration for the lots that will permit the residents on the lot to enter the street from a forward direction? (Mortazavi—a hammerhead arrangement could be designed into the projects.) • Who would be responsible for the cul-de-sac? (Guinan—depends upon how the subdivision would be designed; would be the City's responsibility if dedicated to the public. If the City chooses not to accept the dedication, it would not be responsible for maintenance.) • If a cul-de-sac were included as part of the subdivision, would the City be required to accept the conveyance? (Guinan—the City would not be required to accept the conveyance.) • Noted that the Public Works Director indicated that the cul-de-sac should be dedicated to San Mateo County. • The City of Burlingame does not need to be burdened with the responsibility for the cul-de-sac. There were no further comments and the public hearing was closed. Further Commission comments: • Could the City impose a greater parking requirement upon the property? (Hurin/Guinan/Meeker— Would need to see what is proposed. For purposes of approving a subdivision map, conditions related to other requirements cannot be imposed as conditions; they will automatically apply to the new subdivision. The City cannot be more restrictive than what the code requires.) • Can't support the subdivision without seeing the actual design of the homes; the City Attorney has indicated that approval of a subdivision is not a fundamental property right. • Could look at alternatives with a cul-de-sac design, or other design alternatives for development of the site. • The project is simply a Variance for a lot split, not design review; the hardship is being created by the applicant's desire to split the property; this is not really a hardship for purposes of granting the variance. • The other property owners are outside of the City's purview, the applicant's proposal must be considered based upon City standards; this condition is not a hardship. • The encroachments by the neighbors, as well, are outside of the City's purview. • Actually being asked to consider the lot split with a variance or a subdivision with a cul-de-sac;the subdivision of the property is not a substantial property right;there is no loss of property right by not permitting the lot split. • The lot split primarily results in an economic gain by the developer. • Safety is a concern when traversing Vista Lane;the lot split will add to a problem that already exists with the encroachments upon the street. • Disagrees with the other Commissioners;there is a distinctive hardship. Five or six of the lots in the area are already less than the City standard, which is an arbitrary standard. • Penalized for the narrowness of the road caused by the neighbors; the County should correct the problem. • The new homes would be near the entry to Hillside Drive; would not place much of a burden on Vista Lane;the additional lot would not double the traffic on the street,as represented by opponents. • The City could forgo curb and gutter, given the character of the area, and could also improve parking conditions on the properties as part of design review. • The lots are only 5% over the 10,000 square foot area that triggers the lot frontage requirement. • Concerned about the homes backing onto Vista Lane. • The alternative of a much larger home would not be as great a benefit as two smaller, more affordable homes; two smaller homes would fit in well, likely with lesser impacts. CITY OF BURLINGAME PLANNING COMMISSION— Unapproved Minutes October 13, 2009 • Would like to see more information regarding the manner in which the property can be developed; how can conditions on the street be improved? • The economics of the situation does not weigh into the decision; what is important is what is better for the street. • There is not enough information to make a proper decision. • The real issue is traffic; adding one or two houses will increase traffic; one large house will likely have as many vehicles as two smaller houses. • One large house will likely have a greater view impact than two. • This project cannot remedy the problems on Vista Lane, an impact upon the bulk of Vista Lane is minimal due to the location of the proposed lots near Hillside Drive. • Widening the street in the vicinity of the lots may be a good solution. • Not convinced that a cul-de-sac is a solution. • The property could be developed in the other direction,with the lots oriented the other direction;with a private driveway that could serve both homes. • Seeing more developed drawings could be helpful, but the lot split should be approved; the Commission can concentrate on the design when that information is submitted for consideration. • The Commission must consider the subdivision proposal that is before it; it cannot propose alternate configurations. • Presentation of a hardship is of critical importance when considering granting a variance. Commissioner Vistica moved to approve the application for a Variance, by resolution: The motion was seconded by Commissioner Yie. Discussion of motion: • There is a hardship present;including the topography of the property, dimensions of otherlots, and the minimum lot frontage requirement is somewhat of an arbitrary standard that is not appropriate in this instance. • Cannot support the motion; hardship is created by applicant's desire to split the lot. • Nothing preventing the property owner from building a single home; could offer the community something to compensate for granting of the variance;adding additional paving in front of the lots is not adequate compensation. • Not convinced that a cul-de-sac solution is appropriate. • The rules still apply, though they may be arbitrary. • In favor of the motion;when the designs for the homes are before the Commission, the Commission can more thoroughly address concerns regarding parking and traffic. Chair Terrones called fora roll call vote on the motion to approve. The motion passed 4-3(Commissioners Brownrigg, Cauchi and Terrones dissenting). Commissioner Auran moved to recommend to the City Council, approval of the Tentative and Final Parcel Map, subject to the following conditions: 1. that the Vesting Tentative & Final Parcel Map shall be recorded at the San Mateo County Recorder's Office, and a copy of the recorded document shall be submitted to the Department of Public Works; and 2. that the conditions of the City Engineer's September 10, 2009 memo and the City Arborist's September 3, 2009 memo shall be met. 8 CITY OF BURLINGAME PLANNING COMMISSION — Unapproved Minutes October 13, 2009 The motion was seconded by Commissioner Vistica Discussion of motion: ■ Discussion ensued regarding options for addressing circulation on the properties to alleviate safety concerns on Vista Lane; this can be discussed with the design review application that will be required for the new residences. Chair Terrones called for a roll call vote on the motion to recommend approval. The motion passed 4-3 (Commissioners Brownrigg, Cauchi and Terrones dissenting). Appeal procedures were advised. This item concluded at 8:48 p.m. City Attorney Guinan noted that staff would prepare a resolution memorializing the Planning Commission's decision, including findings in support of the action, for consideration at the next regular meeting. Commissioner Brownrigg recused himself from participating on Item 3 (1462 Burlingame Avenue), due to a potential business relationship with the applicant. Commissioner Lindstrom recused himself from participating on Item 3 due to a business relationship with the property owner. They left the Council Chambers. 3. 1462 BURLI NGAME AVENUE, ZONED C-1, SUBAREAA—APPLICATION FOR COMMERCIAL DESIGN REVIEW FOR CHANGES TO THE FRONT FAQADE OF AN EXISTING COMMERCIAL BUILDING (ERIC MARQUART, BEVERAGES & MORE!, APPLICANT; HAYASHIDA ARCHITECTS, ARCHITECT; AND FREDERICK A. SCHIFFERLE, PRIVATE BANK REAL ESTATE ADMINISTRATION, CO-TRUSTEE FOR DOROTHY WURLITZER PROPERTY OWNER) STAFF CONTACT: RUBEN HURIN Reference staff report dated October 13, 2009, with attachments. Senior Planner Hurin presented the report, reviewed criteria and staff comments. Eleven (11 ) conditions were suggested for consideration. Chair Terrones opened the public hearing. Eric Marquart, 1470 Enea Circle, Concord; and Don Inaba, 1250 45th Street, Emeryville; represented the applicant. ■ Doors would be mounted one foot back from the front property line. ■ Automatic doors are a necessity given the large packages that will be carried by customers. ■ The doors would be "breakaway" doors; they will push open in an emergency. ■ The alcove is being eliminated to prevent shopping carts from being hidden by the alcove. ■ The shopping carts will be stored inside; a security system will be set using a radio frequency that will prevent carts from going onto Burlingame Avenue; the carts would stop one-foot inside the store. ■ Other businesses on Burlingame Avenue have similar entry designs. Commission comments: ■ Concern is both the sliding door and the flat fagade. ■ Not concerned about people not being able to find the shopping carts; once familiar with the store, they will know where to look for them. ■ The doors will be opening and closing frequently due to the amount of foot traffic past the area without the alcove; this will result in a loss of "conditioned" air from within the building. ■ The sliding doors provide a very "commercial" feeling. 9 CITY OF BURLINGAME PLANNING COMMISSION— Unapproved Minutes October 13, 2009 ■ There is an opportunity for BevMo to be neighborly by using stock staff to open doors for patrons, c help patrons take their purchases to their cars. ■ Need a transitional space before you get to the sidewalk with the bulk purchases. ■ Understand the need for automatic doors. ■ What is the window treatment along the sidewalk? ((Marquart—would ensure that areas above 44- inches would remain clear; from 44-inches and below, the windows would be tinted black.) ■ The windows should be maintained in a manner to provide a connection between the street and the interior of the store. ■ Encouraged retention of the alcove. ■ Will an awning be installed with a BevMo sign? (Marquart—the awning will be installed, but will not include signage.) ■ Extend the awning along the storefront for the width of the windows. ■ Would be great to maintain a small business feel to the business, similar to Ace Hardware. ■ Will eight-foot minimum clearance be maintained with awning placement? (Inaba —will meet the minimum.) ■ How much will the awning project from the building? (Marquart—three to four feet from the building face.) ■ What will the lighting illuminate? (Marquart—only the building.) Public comments: ■ None. There were no further comments and the public hearing was closed. Commissioner Vistica moved to approve the application, by resolution, with the following amende, conditions: 1. that the project shall be built as shown on the plans submitted to the Planning Division date stamped October 5, 2009, sheets D1, A1.2 and A4.1; 2. that any changes to the size or envelope of building, which would include changing or adding exterior walls or parapet walls, shall require an amendment to this permit; 3. that the recessed entry shall be retained at a minimum of the same dimensions that exist currently; 4. that the display windows shall consist of clear glass above a height of 44-inches above the sidewalk elevation in order to provide a visual connection between the sidewalk area to the interior of the store; 5. that the awning installed on the front of the building shall extend the width of the windows on the front elevation; the final design and placement of the awning shall be submitted to the Planning Commission for review and approval prior to issuance of a building permit; 6. that any changes to building materials, exterior finishes,windows, architectural features, roof height or pitch, shall be subject to Planning Division or Planning Commission review(FYI or amendment to be determined by Planning staff); 7. that the conditions of the City Engineer's October 6, 2009, memo shall be met; 8. that demolition or removal of the existing structures and any grading or earth moving on the sit, 10 CITY OF BURLINGAME PLANNING COMMISSION—Unapproved Minutes October 13,2009 shall not occur until a building permit has been issued and such site work shall be required to comply with all the regulations of the Bay Area Air Quality Management District; 9. that prior to issuance of a building permit for construction of the project,the project construction plans shall be modified to include a cover sheet listing all conditions of approval adopted by the Planning Commission,or City Council on appeal;which shall remain a part of all sets of approved plans throughout the construction process. Compliance with all conditions of approval is required; the conditions of approval shall not be modified or changed without the approval of the Planning Commission,or City Council on appeal; 10. that the project shall comply with the Construction and Demolition Debris Recycling Ordinance which requires affected demolition,new construction and alteration projects to submit a Waste Reduction plan and meet recycling requirements;any partial or full demolition of a structure,interior or exterior, shall require a demolition permit; 11. that the applicant shall comply with Ordinance 1503, the City of Burlingame Storm Water Management and Discharge Control Ordinance; 12. that the project shall meet all the requirements of the California Building and Uniform Fire Codes, 2007 Edition,as amended by the City of Burlingame; THE FOLLOWING CONDITIONS SHALL BE MET DURING THE BUILDING INSPECTION PROCESS PRIOR TO THE INSPECTIONS NOTED IN EACH CONDITION 13. that prior to scheduling the framing inspection,the project architect, engineer or other licensed professional shall provide architectural certification that the architectural details such as window locations and bays are built as shown on the approved plans;if there is no licensed professional involved in the project,the property owner or contractor shall provide the certification under penalty of perjury. Certifications shall be submitted to the Building Department;and 14. that prior to final inspection, Planning Division staff will inspect and note compliance of the architectural details (trim materials, window type, etc.)to verify that the project has been built according to the approved Planning and Building plans. The motion was seconded by Commissioner Cauchi. Discussion of motion: • None. Chair Terrones called for a voice vote on the motion to approve. The motion passed 5-0-0-2. (Commissioners Brownrigg and Lindstrom recused). Appeal procedures were advised. This item concluded at 9:10 p.m. Commissioners Brownrigg and Lindstrom returned to the dais. IX. DESIGN REVIEW STUDY ITEMS 4. 843 CROSSWAY ROAD,ZONED R-1 —APPLICATION FOR DESIGN REVIEW AND FLOOR AREA RATIO VARIANCE FOR A FIRST AND SECOND STORYADDITION TO A SINGLE FAMILY DWELLING (REBECCA AMATO,AMATO ARCHITECTURE,APPLICANT AND ARCHITECT;AND WHITNEY AND 11 CITY OF BURLINGAME PLANNING COMMISSION — Unapproved Minutes October 13, 2009 DENIS MURPHY, PROPERTY OWNERS) STAFF CONTACT: ERICA STROHMEIER Reference staff report dated October 13, 2009, with attachments. Community Development Director Meeker briefly presented the project description. Commission comments: ■ Unable to find the additional square footage referenced in the staff report; provide clarification. Chair Terrones opened the public comment period. Rebecca Amato, 688 Fairmount Avenue, Oakland; represented the applicant. ■ Will actually be reducing the footprint on the site. ■ Are exceeding the square footage through the basement square footage; though the area is not considered habitable by the Building Division. ■ The footprint of the house is not being expanded. Additional Commission comments: ■ The work on the rear of the home is a nice improvement. ■ Regarding the second floor Juliet balcony; consider making it a bit deeper, more useable. Will not be an area where people will congregate and disturb neighbors. ■ Will the front door be changed? (Amato — no, will be retained.) ■ On west elevation, a vent is being removed and replaced with a window; could be arch top window--� at that location, also the master bath window, second floor window on east elevation. ■ Will the window in the family room be leaded glass? (Amato — the replacement will be leaded glass in keeping with the character of the home, more like the front windows of the house.) ■ What is material on the railing for the balcony? (Amato — wrought-iron.) ■ Replacement window type? (Amato — full divided light windows in wood. Could be metal clad exterior.) ■ The modifications to the home are modest. Public comments: ■ None. There were no other comments from the floor and the public hearing was closed. Commissioner Auran made a motion to place the item on the Regular Action Calendar when complete. This motion was seconded by Commissioner Cauchi. Discussion of motion: ■ Should be on the Regular Action Calendar primarily to provide the opportunity to discuss the hardship for the proposed variance. Chair Terrones called for a vote on the motion to place this item on the RegularAction Calendar when plans have been revised as directed. The motion passed on a voice vote 7-0. The Planning Commission's actior is advisory and not appealable. This item concluded at 9:27 p.m. 12 CITY OF BURLINGAME PLANNING COMMISSION—Unapproved Minutes October 13,2009 5. 2509 AND 2517 EASTON DRIVE,ZONED R-1—(DENNIS LIU,APPLICANT;CHIAYUN ALAN WANG AND LAN-FANG NEI WANG,PROPERTY OWNERS;MARCH DESIGN,DESIGNER;AND WEC ASSOCIATES, CIVIL ENGINEER)(51 NOTICES) A. 2517 EASTON DRIVE: APPLICATION FOR DESIGN REVIEW, VARIANCE FOR FRONT SETBACK TO AN ATTACHED GARAGE AND SPECIAL PERMIT FOR AN ATTACHED GARAGE FOR A FIRST FLOOR ADDITION AND REMODEL —STAFF CONTACT:RUBEN HURIN B. 2509 AND 2517 EASTON DRIVE: LOT LINE ADJUSTMENT FOR LOTS 22 AND 23,BLOCK 57, MAP OF EASTON ADDITION NO. 6 SUBDIVISION, PM 09-03—STAFF CONTACT:VICTOR VOONG PUBLIC WORKS ENGINEERING Reference staff report dated October 13,2009,with attachments. Senior Planner Hurin briefly presented the project description. There were no questions of staff. Chair Terrones opened the public comment period. Dennis Liu,2517 Easton Drive,and Mike Ma,20660 Stevens Creek Boulevard,Cupertino;represented the applicant. Commission comments: • Could the addition be done and the garage accessed without removing the Oak tree? (Liu—the tree ._ is not affected by the proposal,it is on the adjacent property.) • Explanation for the garage setback makes sense. • Cannot see why the lot line adjustment is requested? The adjustment will not create a perceived balance between the lots from the street. (Liu—would equalize the lot areas;2517 Easton is one of the largest lots in the neighborhood,the other lot is one of the smallest lots.) • Would still be able to build a much larger home without the lot line adjustment;could end up with a home that is much larger. (Liu —thought it would provide personal benefit to him and the neighborhood.) • Is there a threshold that is crossed with the adjustment to the lot line,due to an increase in lot area on one lot? (Hurin—a variance is not required for lot area or other standards since the conditions are non-conforming currently. The percentage of lot coverage will remain the same,though the size of a home will increase due to the increase in lot area; the maximum home size permitted in Burlingame is 8,000 square feet.) • The design proposal does not enhance what is existing on the lot;the garage could have a more interesting door shape and design. • Vinyl windows are proposed;this is a complete mismatch for the neighborhood and with the existing architecture. The existing windows are steel and add to the character of the home. • Whatever is done with the roof must match existing tile. • Will benefit the neighborhood to have the garage associated with the house. • Garage doors should perhaps be carriage doors with an arched top;would fit nicely with the rest of the architecture,the doors should be wood. • Smaller,narrower windows could be placed on the sink wall of the kitchen. • Addition needs to have a tile roof. • What is happening at the entry door? (Ma—attempted to match the entry door to the shape of the garage door;but could be beneficial to the design to keep the existing arched door,and arch the 13 CITY OF BURLINGAME PLANNING COMMISSION— Unapproved Minutes October 13, 2009 garage door. Can attempt to find a wood or steel window that can be painted to match the existing windows.) • Using the wrong details could ruin the house; please don't install vinyl windows. • The lot split seems very unnatural; could set up a problem if the neighbor chooses to build an accessory structure to the property line in the area of the adjustment. • The property has much more space for additions to the existing home. • No compelling reason for the lot line adjustment;existing non-conforming condition is best left alone. (Ma — lot line adjustment is the owner's decision; could the two applications be separated for discussion? Meeker—yes, the two discussions can be handled separately.) • Consider adding a window to the front to add interest. • Doesn't like the sloped roof off of the garage, consider a design to break up the mass, perhaps a false gable. • Try to use steel windows; look into "Hope's" or"Coast to Coast" steel window manufacturers. • Referred the applicant to the "Steel Institute of America". • Each window is special in shape and style; consider adding the header feature present on the second floor window to the new windows. Pay special attention to how the windows have been designed in the existing condition. (Ma — regarding the header, the downstairs window does not have a header.) • Drawings are incorrect in that they do not show the tile roof on the addition. • Have the City Arborist investigate whether the tree will be impacted by the driveway, the Coastal Live Oak does appear on the survey for the site, and the driveway may need to be altered to protect the tree. (Ma—will verify the information.) • Given the Commissions' comments regarding the lot line adjustment, would the applicant like to withdraw that request? (Liu —withdrew the lot line adjustment application.) Public comments: • None. There were no other comments from the floor and the public hearing was closed. Commissioner Auran made a motion to send the application to a design review consultant. This motion was seconded by Commissioner Vistica. Discussion of motion: • The Commission's direction was specific enough;referring the matter to a design review consultant is unnecessary. Chair Terrones called for a vote on the motion to the application to a design review consultant. The motion passed on a voice vote 6-1 (Commissioner Brownrlgg dissenting). The Planning Commission's action is advisory and not appealable. This item concluded at 10.01 p.m. X. COMMISSIONERS' REPORTS There were no Commissioner's Reports. XI. DIRECTOR'S REPORT Commission Communications: 14 CITY OF BURLINGAME PLANNING COMMISSION — Unapproved Minutes October 13, 2009 ■ None. Actions from Regular City Council meeting of June 15, 2008: ■ An appeal hearing was scheduled for 349 Lexington Way for October 19, 2009. FYI: Peninsula Hospital Complaint Log: ■ There were no complaints for the month of September, 2009. XII. ADJOURNMENT Chair Terrones adjourned the meeting at 10:04 p.m. Respectfully submitted, Sandra Yie, Secretary 15 f� MEETING MIN UTES fission e Parks & Recreation Comm Regular Meeting of the Burlingam15 , 2009 Thursday, October � fission was called to order by Prose ame Parks & Recreation ornm The regular meeting of the Burling ame City Hall, 501 imrRoad, Burlingame Chairman Shanus at 7 T.03 pm at Burling ROLL CALL Commissioners Present: Shanus, Castner-Paine, Fisher, La Mariana (arrived at 7:55), ton, Hesselgren Commissioners Absent: Carlton Staff Present: Director of Parks & Recreation Skeels; Administrative Secretary Joleen Helley Others Present: None MINUTES The Minutes of the September 17, 2009 regular meeting were approved as submitted with the following corrections (Old Business Item A- last line "deciding" changed to "decide"). PUBLIC COMMENTS — None. OLD BUSINESS A. Use of Inflatable Jump Houses in Parks — Director Skeels distributed and explained the staff recommendations and map of designated areas in Washi passible placement of Jump Houses. ngton Park for concerns/suggestThe Commission noted the followingions: possible electrical cord trip hazard, possible circuit breaker trip issue and the possible need to limit the size of the Jump Houses. Commissioner Shanus would not recommend supplying electrical power due the possible circuit breaker trip concern. Commissioner Eaton reviewed a Jump House rental website on his laptop and explained the size placement needed for J ump Houses. Commission Hesselgren inquired if power was supplied, could it be locked up for limited access. Skeels confirmed that the power source could be secured for use by City staff and made available to picnic renters for the purpose of Jump Houses only. Commission also discussed the "authorized" vendor list that the City could provide to the public and the inclusion of personally owned Jump Houses in the permit_ Both suggestions were agreeable provided the renter submitted the proper liability and hold harmless documentation naming the City as also insured. Commission concluded the discussion with a request that staff provide a depiction of the designated locations with measurements so that a size limitation can be added to the permit application. The Commission agreed to review this item at their next meeting. parks r Recreati Octoberon Col J 2009_page 2 ssion Minutes NEwBUSZ]v A ps Icalc pe - Information forAmit Locations barbe Picnic rese Skeels distributed a que policy. Hessel rvations at Washington Packet includin Washington Park gree inquired i fOn Park g the current than was the only there was ' and the City's current Washington Park is nl reservable park. Staff was any particular nt Pits- Suitable the °�Y park that includes restrona oms re of an reason that Park an Parks to consider for inclusion for rese Y reason other d Cuernavaca � tables and barbegUe not havePark These parks have restroom and to are Ra park, tables), Discuss- These regarding the tables (Cuernavaca ldoes shade at Cuernavaca. g g Possibility of installing tables and a sun Skeels mentioned that the addition of tables and a sunshade Cuernavaca would require neighborhood notification and staff w at the cost into a budget plan. Hesselgren suggested would need to include Cuernavaca could be solicited. Comm ssionersa have perhanotedntions that for tables at Cuernavaca are steady gathering places for families and felt that these two parks and ideal candidates for the consideration of adding to the reservable area listConcern was expressed regarding the possible extra cleanup created for Parks crews. Eaton felt that the same traffic pattern would happen whether the areas were reserved or first come, first serve. Commissioner Fisher wanted to be sure that if notification of the neighbors were to happen at Cuernavaca that the City use the largest radius notification possible as the park is used by the neighbors from several block away. Skeels reminded Commission that any policy change for parks requires notification of the neighbors and a public hearing. B. Tennis Court Reservation Procedures — Commission reviewed the handout of the current procedures and the public use rules that are posted at the courts throughout the City. Commission thanked staff for the information and felt no changes were necessary at this time. REPORTS/HANDOUTS A. Staff Reports 1. Monthly Report—attached 2. Sports Fields User Fees — Skeels reported that several meeting are set to take place with Council members, the school district and the City to discuss the formation of a fee schedule that is harmonious for all groups involved and applies to all fields. 3. Program Reductions — Skeels listed the following items as reductions: Art in the Park, BIS afterschool activities, 4/5th grade Summer B-Ball league and adult volleyball league. Commissioner La Mariana reported he had spoken to Lions and Rotary Clubs about the possibility of either groups taking over the Art in the Park event. La Mariana reported there was no interest by either group. 4. Youth Advisory Committee - Skeels distributed a current YAC roster and an Commission expressed support for the committee example meeting agenda. and would like to have a representative visit the Commission with a report on activities planned for the upcoming year. Parks&Recreation Commission Minutes October 15, 2009—Page 3 5. Smoking in the Parks — Attachment. Skeels distributed the current Ordinance and a picture of the sign posted at Cuernavaca Park. Commissioner Carlton was contacted by a citizen regarding the amount of cigarette debris present at Cuernavaca. Commission asked all to pay special attention when cleaning up the area. 6. Correspondence -None B. Commissioner Reports 1. Commissioner Sbanus inquired if there were any plans for the horseshoe pits are in Washington Park. Staff noted that the Parks Supervisor may have long range plans for the area. NEXT MEETING The next meeting of the Parks & Recreation Commission is scheduled to be held on Thursday, November 19, 2009 at 7:00 p.m. at Burlingame City Hall. There being no further business to come before the Commission, the meeting was adjourned at 8:56 pm. Respectfully submitted, tc C�� I -C- Joleen Helley Administrative Secretary Burlingame Parks & Recreation RECEIVED ('comcast Comcast Cable SEP 17 2009 1215 K Street, Suite 1700 Sacramento, CA 95814 September 14, 2009 Offiice: 916.502 01 1422 CITY CLERKS OFFICE F : 916.www.comcast.com 'CrrY U SURLINGAME Mr. Jesus Nava City of Burlingame 501 Primrose Road Burlingame, CA 94010 RE: California System Migration Dear Mr. Nava : I am writing to share some exciting news ! In order to operate as "One California", beginning on or after October 15, 2009, Comcast is enhancing its billing system by collapsing our method of account tracking—this will result in a new account number for our subscribers. It is important that our Billing and Order Entry system is standardized to provide our customers and employees with a consistent and seamless experience. This project will be completely transparent to our customers. Some of the key benefits of collapsing the account numbers include the ease in ability for customers to transfer their services anywhere in California and keep their existing equipment. To better assist our subscribers with the California System Migration process, below please find a few of the common inquiries and appropriate responses that Comcast has drafted: Q. Since account numbers are changing , how will automatic payments be affected (such as EFT, Auto Pay, 3rd Party payments? A. These payments will continue to be processed through an automated cross-reference function. There will be no impact to the subscriber Q. What will happen with customers who are currently on discount/promo offers? A. The customers' discounts will remain on the accounts until the correct expiration date. The discount will not start over with the new account number Q . Will work order and account history migrate to the new account number? A. Yes. Comcast will have the ability to access all account history In an effort to inform our subscribers of the migration , a statement message will be provided 30 days prior to the effective date. If you should have any questions or concerns regarding the matter, or any matter, please feel free to contact your local Government Affairs Director, Lee-Ann Peling at (415) 715-0549. Sincerely, Mitzi Givens-Russell Franchise Compliance Manager Northern California AT&T U-verse W� at&t October 9, 2009 City Manager James M. Nantetl City of Burlingame 501 Primrose Rd Burlingame, CA 94010-3997 Dear City Manager Nantell: AT&T California ("AT&T") hereby advises you of the following information regarding a programming change for AT&T U-verses"' TV customers. Effective November 16, 2009, HDNet (channel 1105) and HDNet Movies (channel 1106) will be moved to the HD Premium Tier. Customers will be notified of this change in separate mailings. If you have any questions, please contact your local AT&T External Affairs manager, Randal Okamura on 650-473-8022. Sincerely, Rhonda J. Johnson Vice President, AT&T California Regulatory Affairs © 2009. AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.