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HomeMy WebLinkAboutReso 138-05 DiscardMaterials Non Exclusive RESOLUTION NO. 138 ~ 05 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * . * * * * * * * APPROVING A FORM OF THE DISCARD MATERIAL NON-EXCLUSIVE COLLECTION FRANCHISE AGREEMENT WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 ("Act") and subsequent additions and amendments (codified at California Public Resources Code Section 40000 et seq.), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for Solid Waste Collection within their jurisdiction; and, WHEREAS, the CITY has determined that the public health, safety and welfare require that non- exclusive franchises be awarded to qualified companies for the collection, transport, recycling and disposal of Discard Materials in the CITY; and WHEREAS, the City has a franchise hauler with the exclusive rights to perform Collection Services and such exclusive franchise does not include the collection and transportation of materials defined herein as Discard Materials; and WHEREAS, AB 939 requires the CITY to meet a fifty percent (50%) diversion rate; and WHEREAS, the CITY has determined that to meet the fifty percent (5COIa) diversion requirement it must regulate Discard Material collection service, and it has (introduced) an Ordinance to facilitate that regulation; and WHEREAS, the Legislature has found and declared in Section 495 I 0 of the Public Resources Code that it is in the public interest to foster and encourage solid waste enterprise so that, at all times, there will continue to be competent enterprises willing and financially able to furnish needed solid waste handling service; and WHEREAS, one of the purposes of this Agreement is to regulate such franchises in order to ensure the orderly collection, recycling, and disposal of Discard Materials in the CITY and to minimize the potential for adverse effects it may have on the local environment; and WHEREAS, the CITY requires all haulers providing Discard Material collection service in the CITY to obtain a non-exclusive franchise in order to regulate this business, ensure its orderly operation and to minimize the potential for adverse effects it may have on the local environment; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does approve the form of the Discard Material Non-Exclusive Collection Franchise Agreement attached hereto as EXHmIT A; and BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute such agreements in substantially the form attached hereto as EXHmIT A, with qualitying companies that meet the requirements established by the Franchise Agreement and Chapter 5.32 of the Dublin Municipal Code, as amended by Ordinance. PASSED, APPROVED AND ADOPTED this 21st day of June, 2005. AYES: Councilmembers Hildenbrand, McCormick, Oravetz, Zika and Mayor Lockhart NOES: None ABSENT: None ABSTAIN: None ATTEST: clt.-- K'/G/6.21-ú5/reso 138-ú5 Construction Waste (Item 6.8) City of Dublin Discard Material Non-Exclusive Collection Franchise K"" Qt' Dl~t. ð ~f Cj1l7fO'g,~\~ Issued by City of Dublin 100 Civic Plaza Dublin, CA 94568 June 22, 2005 EXHIBIT A Discard Material Non-Exclusive Collection Franchise Aareement Section 1. Section 2. Section 3. Section 4. Section 5. Section 6. Section 7. Section 8. Section 9. Section 10. Section 11. Section 12. Section 13. Section 14. Section 15. Section 16. Section 17. Section 18. Section 19. Section 20. Section 21. Section 22. Section 23. Section 24. Section 25. Section 26. Section 27. Section 28. Section 29. Section 30. Section 31. TABLE OF CONTENTS Definitions........................................................................................................... .2.. Grant of Franchise............................................................................................... 4.. Acceptance of Franchise......................................................................................4. Term of Franchise. ...... ........ .... ...... .............. ...... .... .... .... .... ...______........ .......... .... ...4.. Conditions for Effectiveness.................................................................................4. Limitations on Scope of Franchise. .......................................................................5 Franchise Fees.................................................................................................... 5.. Franchise Fee Payment. ...... .... ...... ........... ... ........... .................. ....... ...... ............. .5. Ownership of Discard Material. ...........................................................__...............6. Disposal of Discard Material.............___........ .......... ............... .......... .... .......... .._____.6. Recycling Requirement.................................................................. ___...................6.. Reports... __............................................................................................... ............7... Inspection Authority. ....................................................................... ___.................. B.. Insurance Requirements. .....................................................................................9. Indemnity. .......................................... __......... __.................................................. .11 Collection Equipment. .....__.__.... ................ ....... .... ......... ........ ........ ...... ...__..... .__...1.1 Abandoned Containers...................................................................................... .1.1 FRANCHISEE Provided Discard Material Containers.........................................12 Personnel........................................................................................................ ..12 Permits and Licenses... ... ............ ....................... .......... ............ ............ ..............1.3 Liquidated Damages..........................................,.............................................. .1.3 Default, Termination................................................... ...................................... ..1.4 Conditions Upon T errnination............................................................................ ..16 Notices.............................................................................................................. .1.6. Relationship of the Parties .............__... .... .__... .............................. ........ .... ....... ....17 Compliance with Law......................................................................................... .1.7 Governing Law.. ... ................ ... ... ...... .... ... ... .......... .... .............................. .... ...... ..il Jurisdiction.............................................. ___....................................................... .17. Assignment....................................................................................................... .17. Binding on Successors ... ........ .... ...... ... .......... ..................... .... ... ......... ....... ... ......1.8 Waiver.............................................................................................................. ..1.8 Page ii CD Agreement 6 22 05.doc Discard Material Non-Exclusive Collection Franchise AQreement Section 32. Section 33. Section 34. Section 35. Entire Agreement.................,...,.............,.........,..................................... ,........... ..18 Interpretation.............:....................................................................................... .18 Amendment....................................................................:............................ .1... .18 Severability....................................................................................................... .19 Page j¡i CD Agreement 6 22 05.doc Discard Material Non-Excluslve Collection Franchise AQreement 1 DISCARD MATERIAL NON-EXCLUSIVE COLLECTION 2 FRANCHISE AGREEMENT BETWEEN THE CITY OF DUBLIN 3 ~D 4 This Agreement is made and entered into this ~ day of , 20_. by and between the 5 CITY OF DUBLIN, a municipal corporation of the State of California, herein after referred to as 6 "CITY", and a (describe legal entity), herein after referred to as 7 "FRANCHISEE". 8 RECITALS 9 WHEREAS; the Legislature of the State of California, by enactment of the California Integrated 10 Waste Management Act of 1989 ("Act") and subsequent additions and amendments (ccdified at 11 California Public Resources Code Section 40000 et seq.), has declared that it is in the public 12 interest to authorize and require local agencies to make adequate provisions for Solid Waste 13 Collection within their jurisdiction; and, 14 WHEREAS, the CITY has determined that the public health, safety and welfare require that non- 15 exclusive franchises be awarded to qualified companies for the collection, transport, recycling 16 and disposal of Discard Materials in the CITY; and 17 WHEREAS, the City has a franchise hauler with the exclusive rights to perform Collection 18 SelVices and such exclusive franchise does not include the ccllection and transportation of 19 materials defined herein as Discard Materials; and 20 WHEREAS, AB 939 requires the CITY to meet a fifty percent (50%) diversion rate; and 21 WHEREAS, the CITY has determined that to meet the fifty percent (50%) diversion requirement it 22 must regulate Discard Material collection selVice; and 23 WHEREAS, the Legislature has found and declared in Section 49510 of the Public Resources 24 Code that it is in the public interest to foster and encourage solid waste enterprise so that, at all 25 times, there will continue to be competent enterprises willing and financially able to furnish 26 needed solid waste handling service; and 27 WHEREAS, one of the purposes of this Agreement is to regulate such franchises in order to 28 ensure the orderly collection, recycling, and disposal of Discard Materials in the CITY and to 29 minimize the potential for adverse effects it may have on the local environment; and 30 WHEREAS, the CITY requires all haulers providing Discard Material ccllection service in the 31 CITY to obtain a non-exclusive franchise in order to regulate this business, ensure its orderly 32 operation and to minimize the potential for adverse effects it may have on the local environment; 33 and 34 WHEREAS, FRANCHISEE has appiied to the CITY for a Discard Material Collection Franchise; 35 and 36 WHEREAS, the City Manager has reviewed FRANCHISEE'S application for the purpose of 37 determining whether FRANCHISEE meets the requirements for the granting of such Franchise; 38 and Page 1 CD Agreement 6 22 05.doc Discard Material Non.Exclusive Collection Franchise Aqreement 39 WHEREAS, the CITY has determined that the grant of such Franchise to FRANCHISEE is in the 40 public interest; and 41 WHEREAS, FRANCHISEE intends to the use public right of ways and infrastructure to provide 42 Discard Materiai collection service; and 43 WHEREAS, the CITY intends to receive value for the Franchise issued; and 44 WHEREAS, FRANCHISEE agrees to and acknowledges that it shall arrange for the proper 45 recycling and disposal of all Discard Material collected in the CITY and that the CITY is not 46 instructing FRANCHISEE how to collect, transport, recycle or dispose of Discard Material so long 47 as its operation is consistent with City Code and applicable laws; and 48 WHEREAS, the CITY and FRANCHISEE desire to enter into a Discard Material Non-Exclusive 49 Collection Franchise Agreement in order that FRANCHISEE may perform Discard Material 50 collection, recycling and disposal services in the CITY. 51 NOW, THEREFORE, based on the mutual promises contained herein, the parties agree as 52 follows: 53 Section 1. Definitions 54 For the purpose of this Discard Material Non-Exclusive Collection Service Agreement, hereinafter 55 referred to as "Agreement", the definitions contained in this Article shall apply unless otherwise 56 specifically stated. If a word or phrase is not defined in this Section, the definition of such word or 57 phrase as contained in Chapter 5.32 of the Dublin Municipal Code shall control. When not 58 inconsistent with the context, words used in the present tense include the future, words in the 59 plural include the singular, and words in the singular include the plural. Use of the masculine 60 gender shall include the feminine gender. 61 a. Construction and Demolition Debris ("C&D"). Used or discarded materials 62 resulting from construction, remodeling, repair or demolition operations on any pavement, house, 63 commercial building, or other structure and such other materials as may be removed during the 64 normal cleanup process of such construction, remodeling, repair, or demolition operations. 65 b. Construction and Demolition Debris Box. A detachable container of ten (1 Q) to fifty 66 (50) cubic yards used for the collection of Construction and Demolition Debris, which is designed 67 to be transported to, and left on the ground on or adjacent to, the property where the Construction 68 and Demolition Debris is generated. 69 c. Discard Material. Construction and Demolition Debris, and Governmental Material 70 and Recyclable Material, if a Governmental Service Unit elects not to have such materials 71 collected pursuant to the Exclusive Franchise. 72 d. E-Waste. Discarded electronics equipment such as cell phones, computers, 73 monitors, televisions, and other items containing cathode ray tubes (CRTs). 74 e. Exclusive Franchise. The Collection Service Agreement made and entered into by 75 and between the City of Dublin and Amador Valley Industries, Inc. on January 12, 2005 for the 76 provision of Collection Services. Page 2 CD Agreement 6 22 05.doc Discard Material Non-Excluslve Collection Franchise Aqreement 77 f. Fixed Bodv Vehicle. An end-dump traiier hauled by a tractor, a dump truck, or 78 other such vehicle where the container portion of the vehicle used to collect and transported the 79 C&D is a fixed part of the vehicle body. Fixed Body Vehicles do not include vehicles 80 manufactured to or designed to transport and deliver Construction and Demolition Debris Boxes. 81 g. Force Maieure. Acts of God including landslides, lightening, forest fires, storms, 82 floods, freezing and earthquakes. civil disturbances, labor unrest, lockouts, wars, blockades, 83 public riots, explosions, or government restraint. 84 h. Franchise Administrator. The City Manager or his designee. 85 i. Franchise Year. The fiscal period beginning on July 1st and ending on June 86 30th, except for the initial Franchise Year which begins on the effective date of the Agreement and 87 ends on the subsequent June 30th. 88 j, Garbaoe. All putrescible waste which generally includes, but is not limited to, 89 kitchen and table food waste. animal, vegetative, food or any organic waste that is attendant with, 90 or results from the storage, preparation, cooking or handling of food materials. 91 k. Governmental Material. Solid Waste, Recyclable Materials, Organic Waste, or 92 Large Items generated by a Governmental Service Unit at the service location wherein the 93 Governmental Material is collected. 94 I. Governmental Service Unit. A State, County, District or Local Agency located in 95 the Service Area. 96 m. Green Waste. Any vegetative matter resulting from normal yard and landscaping 97 maintenance including plant debris, such as Palm, Yucca and Cactus, grass clippings, leaves, 98 pruning, weeds, branches, brush, Christmas trees, and other forms of vegetative waste. 99 n. Laroe Items. Those materials including furniture; carpets; mattresses; appliances; 100 E"Waste; clothing; tires without rims; and large Green Waste. 101 o. Oroanic Waste. Green Waste, food scraps and trimmings from food preparation, 102 including but not limited to; fruit and vegetable waste, grain waste, dairy waste, meat and fish 103 waste, and such items as non-recyclable or contaminated paper such as pizza boxes, take-out 104 food cartons (cardboard), paper towels, waxed cardboard, wooden packaging such as crates and 105 untreated and unpainted wallboard, etc.. 106 p, Recvclable Materials. Those materials which are capable of being recycled and 107 which would otherwise be processed or disposed of as Solid Waste that are generated by and at 108 the service unit wherein the Recyclable Materials are collected. 109 q, Rubbish, All refuse, accumulation of paper, excelsior, rags, wooden boxes and 110 containers, sweep-ups and all other accumulations of a nature other than Garbage and Organic 111 Waste. 112 113 r. Service Area. That area within the corporate limits of the City of Dublin. Soiid Waste. Garbage and Rubbish. s. Page 3 CD Agreement 6 22 05.doc Discard Material Non-Exclusive Collection Franchise Aqreement 114 Section 2. Grant of Franchise 115 a. The CITY hereby grants to FRANCHISEE a Discard Material Non-Exclusive 116 Collection Franchise ("Franchise") authorizing FRANCHISEE to engage in the business of 117 collecting. recycling. and disposing of Discard Material from generators in the Service Area. 118 b. This grant is pursuant to FRANCHISEE'S application for the Franchise, which 119 application is incorporated herein by this reference. 120 Section 3. Acceptance of Franchise 121 a. FRANCHISEE hereby accepts the Franchise on the terms and conditions set forth 122 in this Agreement, City Code, and all related ordinances and resolutions. Execution of this 123 Agreement shall constitute the notification to FRANCHISEE as may be required by Public 124 Resources Code Section 49520 which may require a five (5) year notice period should the CITY 125 wish to enter into an exclusive franchise or contract for Construction and Demolition Debris 126 collection services in the future. 127 b. FRANCHSEE shall notify the CITY in writing of any Discard Material haulers 128 known to be operatin9 within the CITY without a Discard Material Non-Exclusive Collection 129 Franchise. 130 Section 4. Term of Franchise. 131 a. The term of the Franchise granted to FRANCHISEE shall commence on the date 132 first indicated above and terminate on June 30, 2012 ("the Initial Term"), uniess eartier terminated 133 pursuant to Section 22 of this Agreement 134 b. At the end of the Initial Term and at the end of each Extended Term, this 135 Agreement and the Franchise granted herein shall automatically be extended for a one (1) year 136 period ("the Extended Term") unless: 137 (1) FRANCHISEE is in materiai default under this Agreement or 138 (2) The CITY provides the FRANCHISEE with one hundred and twenty (120) days' 139 notice prior to the termination of the end of the Initial Term or the end ofthe Extended Term. 140 c. No later than one hundred and twenty (120) days prior to the end of the Initial 141 Term and each Extended Term. FRANCHISEE shall provide the CITY with updated application 142 information identifying all material changes since the submission of the initial application or the 143 last application update. 144 Section 5. Conditions for Effectiveness. 145 This Agreement shall not become effective until FRANCHISEE has satisfied each and all of the 146 conditions set forth below, each of which may be waived in whole or in part by the CITY. 147 a. Accuracy of Representations. The representation and warranties made by 148 FRANCHISEE in its Application for Franchise are true and correct on and as of the effective date. 149 b. Absence of Litigation. There is no litigation pending on the effective date in any 150 court challenging the award or execution of this Agreement or seeking to restrain or enjoin its 151 performance. Page 4 CD Agreement 6 22 05.doc Discard Material Non-Exclusive Collect/on Franchise Aareement 152 c. Furnishing of Insurance. FRANCHISEE has furnished evidence of the Insurance 153 required by Section 14 of this Agreement. 154 Section 6. Limitations on Scope of Franchise. 155 a. Under the terms of this Franchise, the FRANCHISEE has the non-exclusive 156 authority to provide Discard Material collection services in the CITY. 157 Section 7. Franchise Fees. 158 a. During the term of the Franchise, FRANCHISEE shall pay to the CITY franchise 159 fees for the use of the streets and right of ways and the right to engage in the business of 160 collecting, recycling and disposing of Discard Materials kept, accumulated or generated in the 161 Service Area. 162 b. Franchise fees shall be payable on all gross revenues received for the provision of 163 Discard Material collection services from customers located within the Service Area, including, 164 without limitation, all amounts paid by each customer or its agents in respect of the materials 165 collected, such as hauling fees, equipment rental charges, management fees, logistics fees, and 166 all other amounts, however denominated and to whomever paid. The initial franchise fee shall 167 be 15.6% of such received revenue. 168 c, The CITY reserves the right to modify the amount of the franchise fees and 169 manner of payment at any time during the term of this Agreement by a resolution of the City 170 Council. 171 Section 8. Franchise Fee Payment. 172 a. Franchise fees shall be payable on a monthly basis, and shall be due and payable 173 on the fifteenth (15th) day of the month immediately following the month in which collection 174 services were provided. Each payment shall be calculated in accordance with the provisions of 175 this Agreement. 176 b. Each franchise fee payment shall be accompanied by a written statement, verified 177 by the person making the payment, or a duly authorized representative of the person, showing 178 the calculation of the franchise fee payable in such form and detail as the CITY may require and 179 such other information as the CITY may determine is material to a determination of the amount 180 due. 181 c, No statement filed under this Section shall be conclusive as to the matters set 182 forth in such statement, nor shall the filing of such statement preclude the CITY from collecting by 183 appropriate action the sum that is actuallydue and payable. 184 d. If franchise fees are not paid by the FRANCHISEE at the times required by this 185 Section, then in addition to thé franchise fees, the FRANCHISEE shall pay a late payment charge 186 as set forth in Section 21 of this Agreement. 187 188 189 Page 5 CD Agreement 6 22 05.doc 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 Discard Material Non-Exclusive Collection franchise Aareement e. FRANCHISEE shall pay all required franchise fees to: Franchise Administrator City of Dublin 100 Civic Plaza Dublin, CA 94568 f. If FRANCHISEE remits franchise fees by personal delivery to the CITY, such franchise fees shall be deemed timely paid only if delivered on or before the due date. If FRANCHISEE remits franchise fees by mail or other delivery service, such franchise fees shall be deemed timely only if (1) the envelope containing the franchise fee payment bears a postmark or receipt showing that the payment was mailed or sent on or before the due date or (2) FRANCHISEE submits proof satisfactory to the Franchise Administrator that the franchise fee payment was in fact deposited in the mail or sent on or before said due date. g. In the event FRANCHISEE believes that it has paid franchise fees in excess of the fees due to the CITY, FRANCHISEE may submit a request for refund to the Franchise Administrator. If proof of overpayment is satisfactory to the Franchise Administrator, the Franchise Administrator shall authorize the CITY to refund to FRANCHISEE any overpayment. FRANCHISEE shall not apply any overpayment .as a credit against any franchise fees or other amounts payable to the CITY unless specifically so authorized by the Franchise Administrator in writing. Section 9. Ownership of Discard Material. The CITY does not gain any ownership or right to possess Discard Material collected by FRANCHISEE pursuant to this Agreement. Subject to the provisions of this Agreement and the requirements of the CITY'S municipal code, FRANCHISEE shall have title to and may retain, recycle, process. dispose of, or use the Discard Material that it collects. Section 10. Disposal of Discard Material. FRANCHISEE shall dispose of Discard Material collected or transported by FRANCHISEE only by taking such Discard Material to a landfill, transfer station, recycling facility materials recovery facility, or processing facility that is lawfully authorized to accept such material. FRANCHISEE shali not dispose of such Discard Material by depositing it on any land, whether public or private, except as authorized by the preceding sentence, or in any river, stream or other waterway, or in any sanitary sewer or storm drainage system. 221 Section 11. Recycling Requirement 222 a. FRANCHISEE shall recycle fifty percent (50%) by weight of all Discard Material 223 except asphalt and concrete collected within the Service Area during each Franchise Year. 224 b. FRANCHISEE shali recycle one hundred percent (100%) by weight of all asphalt 225 and concrete collected within the Service Area during each Franchise Year. 226 c FRANCHISEE shall provide a printed list to each customer that specifies the 227 materials that may be placed in the various types of Discard Material containers including 228 Construction and Demolition Debris Boxes. FRANCHISEE shall specifically notify its customers ^' Page 6 CD Agreement 6 22 05.doc Discard Material Non-Exclusive Collection Franchise Aqreement 229 that all liquid wastes are prohibited and, except for those containers specifically placed for the 230 collection of Solid Waste or Organic Waste, the putrescible waste content may not exceed five 231 percent (5%) of each load. 232 Section 12. Reports 233 a. Monthly reports shall be submitted no later than fifteen (15) calendar days after the 234 end of the reporting month and annual reports shall be submitted no later than forty-five (45) days 235 after the end of each Franchise Year. Monthly and annual reports shall be submitted in hard 236 copy, and shall be provided electronically via e-mail, on a 3.5" IBM-compatible diskette, or a 237 compact disc using software acceptable to the CITY. 238 b. FRANCHISEE shall file with the Franchise Administrator a monthly report of the 239 quantities of Discard Material collected, transported, recycled, and disposed. Such report shall be 240 in such form and detail as required by the Franchise Administrator. At a minimum, the report 241 shall include comparative data for all months in the current Franchise Year and a comparison 242 with historical data from the previous Franchise Year. The report shall contain, but not be 243 limited to, the 1OIIowing information: 244 (1) The Discard Material tonnage, by material type, collected and removed 245 within the CITY during the previous month; 246 (2) The Discard Material tonnage, by material type, collected and removed 247 during the previous month within the CITY that was recycled and the location of the facility 248 where such Discard Material was recycled (weight tickets shall be retained by the 249 FRANCHISEE and made available to the CITY upon request for up to three (3) years after 250 the date first issued); 251 (3) The weight by material type (Construction and Demolition Debris) and the 252 weight by material category (steel, aluminum, concrete) in tons of Discard Material 253 collected within the CITY that was disposed of by FRANCHISEE at a landfill, transfer 254 facility, compost facility, or material recovery facility during the previous month and the 255 location of the facility where the disposal of such Discard Material occurred. Weight 256 tickets shall be retained and made available to the CITY upon request for up to three (3) 257 years after the date first issued. 258 (4) Gross receipts collected during previous month on all Discard Material 259 collection services, by material type, provided to customers located within the CITY. 260 (5) A listing of each container by service location, size and type, (Construction 261 and Demolition Debris, Organic Waste, Solid Waste, etc,) in the Service Area from which 262 FRANCHISEE collected Discard Material during the month. 263 (6) The number of collections of each listed container during the month. 264 c. FRANCHISEE shall file with the Franchise Administrator an annual report of the 265 quantities of Discard Material collected, transported, recycled, and disposed. Such report shall be 266 in such form and detail as required by the Franchise Administrator. At a minimum, the report 267 shall include comparative data for the current Franchise Year and a comparison with historical 268 data from the previous Franchise Years. The report shall contain, but not be limited to, the 269 following information: Page 7 CD Agreement 6 22 05.doc Discard Material Non-Exclusive Collection Franchise Aoreement 270 271 272 273 274 275 276 277 278 279 280 281 (1) The weight by material type (Construction and Demolition Debris) and the weight by material category (steel, aluminum, concrete) in tons of Discard Material collected within the CITY that was disposed of by FRANCHISEE at a landfill, transfer facility, compost facility, or material recovery facility during the previous year and the location of the facility where the disposal of such Discard Material occurred. Weight tickets shall be retained and made available to the CITY upon request for up to three (3) years after the date first issued. (2) Gross receipts collected during previous year on all Discard Material collection services, by material type. provided to customers located within the Service Area. (3) (4) Changes to the recycling plan Updated insurance certificates. 282 d. FRANCHISEE shall maintain customer records containing such information as 283 may be required by the Franchise Administrator pertaining to the number and types of accounts 284 served by the FRANCHISEE. The CITY reserves the right to prescribe the format for providing 285 this information. This information· shall be provided to the Franchise Administrator upon request. 286 e. Upon the reasonable request of the Franchise Administrator, FRANCHISEE shall 287 submit to the CITY monthly reports including such additional information as may be required by 288 the Franchise Administrator. Such reports shall be prepared in a form as required by the 289 Franchise Administrator. 290 f. The Franchise Administrator may establish guidelines, forms and other 291 appropriate material to assist FRANCHISEE in preparing the reports required by this Section. A 292 FRANCHISEE'S failure to file the reports required by this Section shall constitute cause for 293 termination or suspension of its Franchise. 294 g. Reports shall be submitted to: 295 Franchise Administrator 296 City of Dublin 297 100 Civic Plaza 298 Dublin, CA 94568 299 Section 13. Inspection Authority. 300 a. FRANCHISEE shall at all times maintain accurate and complete accounts of the 301 following records. 302 (1) All revenues and income arising out of its operations under the Franchise 303 granted pursuant to this Agreement. 304 (2) Any service complaints received and how they were resolved. 305 (3) FRANCHISEE'S books. accounts and records reasonably necessary for 306 the enforcement of this Agreement shall be made available for inspection, examination 307 and audit during normal business hours by authorized officers, employees and agents of 308 the CITY. Page 8 CD Agreement 6 22 05.doc Discard Material Non-Exclusive Collection Franchise AQreement 309 The CITY shall provide FRANCHISEE written notice at least three (3) business days prior to any 310 inspection, audit or examination of these records. 311 b. In the event any audit conducted by the CITY or by the CITY'S representative 312 discloses that FRANCHISEE has made any intentional misrepresentation with respect to the 313 franchise fees or its diversion amounts to the CITY or discloses that FRANCHISEE has 314 underpaid franchise fees due to the CITY in an amount greater than One Thousand Dollars 315 ($1,000) or ten percent (10%) of the franchise fees payable to the CITY during the period covered 316 by the audit, whichever amount is greater, then in addition to any other remedies available to the 317 CITY, FRANCHISEE shall reimburse the CITY for the CITY'S costs incurred in the performance 318 of the audit. Such reimbursement shall be paid by FRANCHISEE, along with any underpaid 319 franchise fees, late payments and interest, within thirty (30) days of the date the CITY notifies 320 FRANCHISEE of the amount of the CITY'S costs. 321 Section 14. Insurance Requirements. 322 FRANCHISEE shall obtain and shall maintain throughout the term of this Agreement, at 323 FRANCHISEE'S sole cost and expense, insurance against claims for injuries to persons or 324 damages to property which may arise from or in connection with the performance of work 325 pursuant to this Agreement by FRANCHISEE, its agents, representatives, employees or 326 contractors. 327 a. FRANCHISEE shall maintain at least the bllowing minimum insurance coverage: 328 (1) Commercial General Liability: $1,000,000 combined single limit per 329 occurrence for bodily injury, personal injury and property damage. If Commercial General 330 Liability insurance or other form with a general aggregate limit is used, either the general 331 aggregate limit shall apply separately to this Agreement or the general aggregate limit 332 shall be twice the required occurrence limit. 333 (2) Automobile Liability: $1,000,000 combined single limit per accident for 334 bodily injury and property damage. Coverage shall include hired autos and non-owned 335 autos. 336 (3) Workers' Compensation and Employers Liability: Workers' Compensation 337 limits as required by the Califomia Labor Code and Employers Liability limits of 338 $1,000,000 per accident. 339 b. Any deductibles or self-insured retentions must be approved by the CITY'S Risk 340 Manager. FRANCHISEE shall be responsible for payment of all deductibles or self-insured 341 retentions. 342 c. The required insurance policies are to contain, or be endorsed to contain, the 343 following provisions: 344 (1) General Liability and Automobile Liability Coverage. 345 (a) The CITY, its officers, employees, agents and contractors are to be 346 covered as an additional insured as respects: liability arising out of activities 347 performed by, or on behalf of FRANCHISEE; products and completed operations 348 of FRANCHISEE; premises owned, leased or used by FRANCHISEE; and CD Agreement 6 22 05.doc Page 9 Discard Material Non-Exclusive Collection Franchise AQreement 349 automobiles owned, leased, hired or borrowed by FRANCHISEE. The coverage 350 shall contain no special limitations on the scope of protection afforded to the CITY, 351 its officers, employees and agents and contractors. 352 (b) FRANCHISEE'S insurance coverage shall be primary insurance as 353 respects the CITY, its officers, employees, agents and contractors. Any insurance 354 or self-insurance maintained by the CITY, its officers, employees, agents or 355 contractors shall be excess of FRANCHISEE'S insurance and shall not contribute 356 with it. 357 (c) Any failure to comply with reporting provisions of the policies shall 358 not affect coverage provided to the CITY, its officers, employees, agents or 359 contractors. 360 (d) Coverage shall state that FRANCHISEE'S insurance shall apply 361 separately to each insured against whom claim is made or suit is brought, except 362 with respect to the limits of the insurer's liability. 363 (2) All Coverage. Each insurance policy required by this Agreement shall be 364 endorsed to state that coverage shall not be suspended, voided, or canceled, except after 365 thirty (30) days' (ten (10) days for nonpayment) prior written notice has been given to the 366 CITY. 367 (3) The Automobile Liability policy shall be endorsed to delete the Pollution 368 and/or the Asbestos exclusion and add the Motor Carrier Act endorsement (MCS-90), TL 369 1005, TL 1007 and/or other endorsements required by federal or state authorities for 370 haulers of hazardous materials. 371 d. Insurance shall be placed with insurers acceptable to the CITY'S Risk Manager. 372 FRANCHISEE must place insurance with a current A.M. Best rating of no less than A:VII. The 373 CITY'S Risk Manager may waive or alter this requirement, or accept self-insurance in lieu of any 374 required policy of insurance if, in the opinion of the Risk Manager, the interests of the CITY and 375 the generai public are adequately protected, 376 e. FRANCHISEE shall furnish the CITY with certificates of insurance and with 377 original endorsements affecting coverage required by this Agreement. The certificates and 378 endorsements for each insurance policy are to be signed by a person authorized by that insurer 379 to bind coverage on its behalf. Proof of insurance shall be mailed or personally delivered to the 380 address provided in Section 24 of this Agreement. 381 f. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & 382 Omissions coverages are written on a claims-made form: 383 (1) The "Retro Date" must be shown, and must be before the date of the 384 contract or the beginning of contract work. 385 (2) Insurance must be maintained and evidence of insurance must be 386 provided for at least five (5) years after completion of the contract of work. 387 (3) If coverage is canceled or non-renewed, and not replaced with another 388 claims-made policy form with a "Retro Date" prior to the contract effective date, the CD Agreement 6 22 05.doc Page 10 Discard Material Non-Exclusive Collection Franchise Aareement 389 390 391 392 Contractor must purchase "extended reporting" coverage for a minimum of five (5) years after completion of contract work. (4) for review. A copy of the claims reporting requirements must be submitted to the CITY 393 g. FRANCHISEE acknowledges that the Discard Material Non-Exclusive Collection 394 Franchise granted to FRANCHISEE will not become effective, and FRANCHISEE will have no 395 authority to perform Discard Material collection in the CITY, unless FRANCHISEE provides 396 satisfactory proof of insurance PRIOR TO BEGINNING OPERATIONS AS A FRANCHISEE. 397 Section 15. Indemnity. 398 a. FRANCHISEE agrees to defend, with counsel selected by the CITY, indemnify, 399 and hold hannless the CITY, and its agents, officers, servants, and employees from and against 400 any and all claims asserted or liability established for damages or injuries to any person or 401 property, including injury to the CITY'S employees, agents or officers which arise from, or are 402 connected with, or are caused by willful or negligent acts or omissions of FRANCHISEE, or its 403 agents, officers or employees, in the performance of the non-exclusive Franchise or this 404 Agreement, or in perfonning the work or services therein, and all costs and expenses of 405 investigating and defending against same; provided, however, that FRANCHISEE'S duty to 406 indemnify and hold harmless shall not include any claims or liability arising solely from the 407 negligence or willful misconduct of the CITY, its agents, officers, servants and employees. 408 Section 16. Collection Equipment. 409 a. Containers shall be covered during transportation to prevent Discard Material from 410 escaping from the container. 411 b. All equipment used or provided by FRANCHISEE shall be kept in a safe and 412 sanitary condition. Vehicles used or provided by the FRANCHISEE for the Collection of Discard 413 Material shall be cleaned and painted, as needed, to maintain a clean and sanitary appearance. 414 Collection vehicles shall be painted and numbered without repetition and shall have the name of 415 the FRANCHISEE (as listed in this Agreement), the FRANCHISEE'S customer service telephone 416 number, and the number of the vehicle painted in letters of contrasting color, at least four (4) 417 inches high, on each side and the rear of each vehicie. 418 c. Vehicles will be subject to periodic, unscheduled inspections by the CITY and 419 determination as to sanitary condition shall be made by the CITY. 420 d. CITY shall have the right to prohibit the use of any vehicle that fails to comply with 421 the provisions set forth herein. 422 e. Violations of this provision shall subject the FRANCHISEE to liquidated damages 423 as set forth in Section 21 of this Agreement. 424 Section 17. Abandoned Containers. 425 a. If FRANCHISEE abandons any container used to provide Discard Material 426 services under this Franchise, the CITY may remove the container and/or dispose of the contents 427 of the container. Page 11 CD Agreement 6 22 05.doc 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 Discard Material Non-Exclusive Collection Franchise AQreement b. If the CITY removes a container abandoned by FRANCHISEE and/or disposes of the contents of any container abandoned by FRANCHISEE, the CITY may charge FRANCHISEE for the CITY'S costs incurred in such removal/disposal and for the CITY'S costs of storage of the container. FRANCHISEE shall reimburse the CITY for such costs within ten (10) days of the date of the CITY'S invoice for such costs. c. For the purposes of this Section, "abandoned" includes: (1) FRANCHISEE'S failure to remove the container within thirty (30) days upon termination of the Discard Material Non-Exclusive Collection Franchise or such additional time as granted in writing by the CITY; (2) FRANCHISEE'S failure to remove the container within a reasonable period after the expiration of the Franchise granted to FRANCHISEE, except in the case where FRANCHISEE has been granted an extension of the term of said Franchise or FRANCHISEE has been granted a subsequent Discard Material Non-Exclusive Collection Franchise authorizing FRANCHISEE to collect and transport the type or types of Discard Material for which the container was used pursuant to this Agreement. (3) FRANCHISEE'S failure to dispose of the contents of the container within five (5) days after the Franchise Administrator issues written notice to FRANCHISEE to dispose of the contents. Section 18. FRANCHISEE Provided Discard Material Containers Containers used for storage and transportation of Discard Material shall be shall prominently display the name of the FRANCHISEE (as listed in this FRANCHISEE'S customer service telephone number, and the number of the a. painted and Agreement), container. b. FRANCHISEE shall make reasonable efforts to replace, clean or repaint all containers as needed so as to present a clean appearance. c. Containers will be subject to periodic, unscheduled inspections by the CITY and determination as to sanitary condition shall be made by the CITY. d. CITY shall have the right to prohibit the use of any container that fails to comply with the pruvisions herein. e. Violations of this provision shall subject the FRANCHISEE to liquidated damages as set forth in Section 21 of this Agreement. Section 19. Personnel a. FRANCHISEE agrees that all drivers shall be trained and qualified in the operation of collection vehicles and must have in effect a valid license, of the appropriate class, issued by the Califomia Department of Motor Vehicles. b. FRANCHISEE shall provide suitable operational and safety training for all of its employees who utilize or operate vehicles or equipment for collection of Discard Material, or who are otherwise directly involved in such collection. Page 12 CD Agreement 6 22 05.doc Discard Material Non-Exclusive Collection Franchise Agreement 466 Section 20. Permits and Licenses. 467 FRANCHISEE shall obtain and maintain, at FRANCHISEE'S sole cost and expense, all 468 permits and licenses applicable to FRANCHISEE'S operations under the Franchise required of 469 FRANCHISEE by any governmental agency. 470 Section 21. Liquidated Damages 471 a. The parties acknowledge that consistent and reliable Discard Material collection 472 service is of utmost importance to CITY and that CITY has considered and relied on 473 FRANCHISEE'S representations as to its quality of service commitment in awarding the 474 Agreement to it. The parties further recognize that some quantified standards of performance are 475 necessary and appropriate to ensure consistent and reliable service and performance. The 476 parties further recognize that if FRANCHISEE faiis to achieve the performance standards, or fails 477 to submit required documents in a timely manner, CITY and CITY'S residents and businesses will 478 suffer damages and that it is and will be impractical and extremely difficult to ascertain and 479 determine the exact amount of damages. Therefore, without prejudice to CITY'S right to treat 480 such non-performance as an event of default under Section 22, the parties agree that the 481 liquidated damages amount defined in this Section represent reasonable estimates of the amount 482 of such damages considering all of the circumstances existing on the effective date of this 483 Agreement, including the relationship of the sums to the range of harm to CITY, customers and 484 the community as a whole that reasonably could be anticipated and the anticipation that proof of 485 actual damages would be costly or impractical. In placing their initials at the places provided. 486 each party specifically confirms the accuracy of the statements made above and the fact that 487 each party has had ample opportunity to consult with legal council and obtain an explanation of 488 the liquidated damage provisions at the time that the Agleement was made. 489 CITY Initial Here FRANCHISEE Initial Here 490 b. Upon delivery of written notice to the FRANCHISEE, the CITY may impose the 491 following Liquidated Damages upon the FRANCHISEE, in addition to any other available 492 remedies the CITY may have. 493 (1) Failure to maintain public containers or vehicles in clean and sanitary 494 condition as required by this Agreement: $100.00 per day per incident. 495 (2) Failure to label public containers, Construction and Demolition Debris 496 Boxes and vehicles with FRANCHISEE'S name (as listed in this Agreement), 497 FRANCHISEE'S customer service telephone number, and the number of the container or 498 vehicle: $500 per day per incident. 499 (3) Failure to achieve and maintain either the fifty percent (50%) or one 500 hundred percent (100%) recycling requirement per Franchise Year as set forth in 501 Sections 11a. and 11b., respectively of this Agreement: ten percent (10%) of all gross 502 Discard Material collection revenues received for services provided within the Service 503 Area during that Franchise Year. 504 (4) Failure to remit franchise fee to CITY by the fifteenth (15th) of the month as 505 required in Section 8: $100.00 per occurrence plus late fees of two percent (2%) per 506 month for every month thereafter until paid. CD Agreement 6 22 OS.doc Page 13 Discard Material Non-Exclusive Collection Franchise Aareement 507 (5) Failure to maintain or submit documents and reports, other than annual 508 and monthly reports, as required under the terms of this Agreement after ten (10) days 509 notice: $100.00 per incident per day. 510 (6) Failure to submit monthly or annual reports required under Section 12 by 511 the due date: fifty dollars ($50.00) for the first fifteen (15) days, thereafter $100.00 per 512 incident per day. 513 (7) Failure to perform any other requirements of this Agreement not 514 specifically stated in this Section, and not corrected or in the process of correction within 515 twenty-four (24) hours of notice from the CITY: $200.00 each incident each day. 516 c. Above amounts may be adjusted by the CITY on each July 1, beginning with July 517 1, 2006 to reflect changes in the Consumer Price Index, All Urban Consumers, Series ID: 518 CUURA422SAO, San Francisco-Oakland-San Jose, CA, Not Seasonally Adjusted for the 519 preceding twelve (12) month peliod. 520 Section 22. Default, Termination 521 a. The CITY shall provide written notice of a default or failure to comply with any 522 obligation or duty imposed on FRANCHISEE under this Agreement or CITY ordinance. The 523 Franchise Administrator and FRANCHISEE shall thereupon meet and confer in good faith in an 524 effort to agree on a resolution and cure of the breach. If the parties are unable to agree on the 525 informal resolution or cure of the breach within ten (10) business days, the Franchise 526 Administrator shall have the right to terminate this Agreement Whereupon, FRANCHISEE shall 527 be suspended from providing Discard Matelial collection services for a period of five (5) years 528 from the date of the termination. After five (5) years, should the FRANCHISEE provide proof that 529 the event causing the FRANCHISEE to default has been corrected, and at the sole and complete 530 discretion of the CITY, the FRANCH ISEE may be reinstated upon re-application. 531 b. A default under this Agreement shall include, but not be limited to, any of the 532 following: 533 (1) Misrepresentation. Any misrepresentation made to the CITY by the 534 FRANCHISEE or failure to disclose required information any reports submitted to the 535 CITY, in FRANCHISEE'S application to enter into this Agreement or, in Agreement or any 536 future amendment to this Agreement, which proves to be false or misleading in any 537 matelial respect as of the time the representation or disclosure is made, whether or not 538 any such representation or disclosure appears as part of this Agreement 539 (2) Fraud or Deceit If the FRANCHISEE practices, or attempts to practice, 540 any fraud or deceit upon the CITY or its customers. 541 (3) Failure to Maintain Coverage. If the FRANCHISEE fails to provide or 542 maintain in full force and effect the Worker's Compensation or liability, coverage as 543 required by this Agreement. 544 (4) Violations of Regulation. If the FRANCHISEE violates any regulations, 545 permits, orders or filing of any regulatory body having jurisdiction over the FRANCHISEE 546 which violation or non-compliance matelially affects the FRANCHISEE'S ability to perform 547 under this Agreement, provided that the FRANCHISEE may contest any such orders or Page 14 CD Agreement 6 22 05.doc Discard Material Non-Exclusive Collection Franchise AQreement 548 filings by appropriate proceedings conducted in good faith, in which case no breach of the 549 Franchise shall be deemed to have occurred during the pendency of the contestation or 550 appeal, to the extent the FRANCHISEE is able to adequatelyperfolTll during that period. 551 (5) Acts or Omissions. Any other act or omission by FRANCHISEE which 552 materially violates the terms, conditions, or requirements of this Agreement, City Code, 553 AB 939, as it may be amended from time to time, or any order, directive, rule, or regulation 554 issued hereunder and which is not corrected or remedied within the time set in the written 555 notice of the violation or, if the FRANCHISEE cannot reasonably correct or remedy the 556 breach within the time set forth in such notices, if the FRANCHISEE should fail to 557 commence to correct or remedy such violation within the time set forth in such notice and 558 diligently effect such correction or remedy thereafter. 559 (6) Failure to Meet Recycle Requirement. If the FRANCHISEE fails to meet 560 the Recycle requirement as set forth in Section 11 of this Agreement. 561 (7) Failure to Pay Franchise Fees. If the FRANCHISEE fails to pay the 562 franchise fees in the amount owed to the CITY pursuant to Section 7 according to the 563 schedule specified in Section 8. 564 c. Termination. If the Franchise Administrator determines, at his sole discretion, 565 that the FRANCHISEE has defaulted under the terms of this Agreement, failure to cure 566 will result in suspension, penalties, or a notice of termination of this Agreement by the 567 CITY in accordance with subsection e. 568 d. Force Majeure. The performance of this Agreement may be discontinued or 569 temporarily suspended in the event of Force Majeure. FRANCHISEE shall not be deemed to be 570 in default and shall not be liable for failure to perform under this Agreement if FRANCHISEE'S 571 performance is prevented or delayed by Force Majeure. 572 e. The Franchise Administrator shall serve written notice pursuant to Section 24 of 573 the termination of a Franchise under this Agreement to the last place of business of the 574 FRANCHISEE, and the FRANCHISEE shall cease operation under its FRANCHISE within ten 575 (10) calendar days after receipt of said notice unless FRANCHISEE has requested an appeal 576 hearing before the CITY prior to the expiration of the ten (10) day period. In the event 577 FRANCHISEE requests such an appeal hearing, said FRANCHISEE may continue collecting, 578 transporting, recycling and disposing of Discard Material until the CITY has rendered its decision 579 on the tel1l1ination of the Franchise. 580 f. Any FRANCHISEE whose Franchise has been tel1l1inated has the right to an 581 appeal hearing before the CITY COUNCIL. FRANCHISEE shall request such a hearing in writing 582 to the City Clerk within ten (10) calendar days after receipt of notice of termination, and the CITY 583 COUNCIL shall hold the appeal hearing not later than thirty (30) calendar days following the 584 receipt of the written request if requested by FRANCHISEE. The Clerk shall give written notice of 585 the time, date and place of the appeal hearing to FRANCHISEE and the Franchise Administrator. 586 The CITY COUNCIL shall render its decision after the close of the appeal hearing and its 587 decision shall be final; provided, however, that nothing herein shall limit FRANCHISEE'S right to 588 seek judicial review or remedies. CD Agreement 6 22 05.doc Page 15 Discard Material Non-Exclusive Collection Franchise AQreement 589 Section 23. Conditions Upon Termination. 590 a. In the event the Discard Material Non"Exclusive Collection Franchise is terminated 591 the following conditions and requirements shall survive tennination: 592 (1) FRANCHISEE shall have no right or authority to engage in Discard 593 Material collection, recycling or disposal operations in the CITY for a period of five (5) 594 years from the date of the termination. 595 (2) FRANCHISEE shall, however, remain liable to the CITY for any and all 596 franchise fees that would otherwise be payable by FRANCHISEE pursuant to Section 8 of 597 this Agreement, for any and all liquidated damages assessed pursuant to Section 21 of 598 this Agreement, and for any indemnity obligations under Section 15 of this Agreement. 599 (3) FRANCHISEE shall have a continuing obligation to submit to the CITY all 600 reports required by Section 12 of this Agreement which relate to Discard Material activities 601 performed by FRANCHISEE up to and including the date oftermination. 602 (4) FRANCHISEE shall allow the Discard Material generators served by 603 FRANCHISEE to arrange for Discard Material collection services with a collector 604 authorized to perform such services, without penalty or liability for breach of contract on 605 the part of the generators. 606 b. In the event the Franchise is terminated, then within the time period specified by 607 the CITY and if directed by the Franchise Administrator, FRANCHISEE shall remove all of 608 FRANCHISEE'S Discard Material containers from all of FRANCHISEE'S collection service 609 locations and shall properly recycle or dispose of all Discard Material in such containers. 610 Section 24. Notices. 611 Except as otherwise provided in this Agreement, all notices required by this Agreement or 612 by the Discard Material Box Collection Franchise shall be given by personal service or by deposit 613 in the United States mail, postage pre-paid and return receipt requested, addressed to the pariies 614 as follows: To CITY: Franchise Administrator City of Dublin 100 Civic Plaza Dublin, CA 94568 To FRANCHISEE: 615 Notice shall be deemed received on the date personally served or, if mailed, three (3) 616 business days after the date deposited in the mail. Page 16 CD Agreement 6 22 05.doc Discard Material Non-Exclusive Collection Franchise Aareement 617 Section 25. Relationship ofthe Parties 618 The parties intend that the FRANCHISEE shall perform the services required by this 619 Agreement as an independent contractor and not as an officer or employee of the CITY nor as a 620 partner of or joint venturer with the CITY. No employee or agent of the FRANCHISEE shall be 621 deemed to be an employee or agent of the CITY. Except as expressly provided herein, the 622 FRANCHISEE shall have the exclusive control over the manner and means of conducting the 623 Discard Material collection services performed under this Agreement and all persons performing 624 such services. FRANCHISEE shall be solely responsible for the acts and omissions of its 625 officers, employees, subcontractors and agents shall not obtain any rights to retirement benefits, 626 worker's compensation benefits, or any other benefits which accrue to the employees of the CITY 627 by virtue of their employment with the CITY. 628 FRANCHISEE agrees that this Agreement is not made in the interest of, or on behalf of, 629 any undisclosed person, partnership, franchisee, association, organization, or corporation. 630 FRANCHISEE has not directly or indirectly colluded, conspired, connived or agreed with any 631 person, partnership, FRANCHISEE, association, organization, or corporation to secure any 632 advantage against the CITY. 633 Section 26. Compliance with Law 634 In providing the services required under this Agreement, FRANCHISEE shall at all times, 635 at its sole cost, comply with all applicable laws of the United States, the State of California, the 636 CITY and other states, cities or counties which may have jurisdiction over any service provided in 637 this Agreement and with all applicable regulations promulgated by any federal, state, regional or 638 local administrative and regulatory agency, now in force and as they may be enacted, issued or 639 amended during the term of this Agreement. 640 Section 27. Governing Law 641 This Agreement shall be governed by, and construed and enforced in accordance with, 642 the laws of the State of California. 643 Section 28. Jurisdiction 644 The parties agree that this Agreement is made in and will be performed in the CITY and 645 any lawsuits between the parties arising out this Agreement shall be filed in Alameda County, CA. 646 Section 29. Assignment 647 a. FRANCHISEE acknowledges that this Agreement involves rendering a vital 648 service to the businesses within the CITY, and that the CITY has Franchised FRANCHISEE to 649 perform the services specified herein based on (1) FRANCHISEE'S experience, skill and 650 reputation for conducting its Discard Material collection in a safe, effective and responsible 651 fashion, at all times in keeping with applicable waste management laws, regulations and good 652 waste management practices, and (2) FRANCHISEE'S financial resources to maintain the 653 required equipment and to support its indemnity obligations to the CITY under this Agreement. 654 The CITY has relied on each of these factors, among others, in choosing the FRANCHISEE to 655 perform the services to be rendered by the FRANCHISEE under this Agreement. CD Agreement 6 22 05.doc Page 17 Discard Material Non-Exclusive Collection Franchise Aqreement 656 b. Any Franchise granted is a privilege to be held in trust by the original 657 FRANCHISEE. A Franchise issued by the CITY shall not be transferred, sold, leased, assigned, 658 or relinquished, or delegated to another person, either in whole or in part, whether by forced sale, 659 merger, consolidation, bankruptcy laws or otherwise, without the written prior approval of the 660 CITY. This restriction includes the transfer of ownership of the Franchise, or a majority of the 661 ownership or control of the FRANCHISEE, or the conveyance of a majority of the 662 FRANCHISEE'S stock to a new controlling interest. Franchises shall become void upon the 663 abandonment of same by the FRANCHISEE. The CITY shall not unreasonably withhold approval 664 of a Franchise assignment, provided that such assignment does not unreasonably impact 665 competition and the assignee meets all of the requirements established by the CITY for the 666 granting of this Franchise and is qualified to perform its obligations as required by this Franchise 667 Agreement. 668 c. FRANCHISEE shall promptly notify the Franchise Administrator in writing in 669 advance of any proposed assignment, sale, or transfer. In the event the CITY approves of any 670 assignment, sale, or transfer, said approval shall not relieve FRANCHISEE of any of its 671 obligations or duties under this Agreement unless this Agreement is modified in writing to that 672 effect. 673 Section 30. Binding on Successors 674 The provisions of this Agreement shall inure to the benefit to and be binding on the 675 successors and permitted assigns of the parties. 676 Section 31. Waiver 677 The waiver by either party of any breach or violation of any provisions of this Agreement 678 shall not be deemed to be a waiver of any breach or violation of any other provision nor of any 679 subsequent breach or violation of the same or any other provision. The subsequent acceptance 680 by either party of any monies which become due hereunder shall not be deemed to be a \M3iver of 681 any preexisting or concurrent breach or violation by the other party of any provision of this 682 Agreement. 683 Section 32. Entire Agreement 684 This Agreement, including the Attachments, represents the full and entire Agreement 685 between the parties with respect to the matters covered herein. 686 Section 33. Interpretation 687 This Agreement shall be interpreted and construed reasonably and neither for nor against 688 either party, regardless of the degree to which either party participated in its drafting. 689 Section 34. Amendment 690 This Agreement may not be modified or amended in any respect except by a written 691 agreement duly approved and signed by the parties. Page 18 CD Agreement 6 22 05.doc Discard Material Non-Exclusive Collection Franchise AQreement 692 Section 35. Severability 693 If any nonmaterial provision of this Agreement is for any reason deemed to be invalid and 694 unenforceable, the invalidity or unenforceability of such provision shail not affect any of the 695 remaining provisions of this Agreement which shall be enforced as if such invalid or 696 unenforceable provision had not been contained herein. 697 Page 19 CD Agreement 6 22 05.doc -' Discard Material Non-Exclusive Collection Franchise Aqreement 697 IN WITNESS WHEREOF, the CITY and the FRANCHISEE have executed this Agreement on the 698 day and year first written above. 699 CITY OF DUBLIN FRANCHISEE 700 A Municipal Corporation 701 702 703 704 705 706 Attest: 707 708 709 710 Kay Keck, City Clerk RICHARD C. AMBROSE CITY MANAGER (Name & Title) 711 712 713 Approved as to Form: 714 715 716 717 Elizabeth H. Silver, City Attomey 718 719 Page 20 CD Agreement 6 22 05.doc