Jeannie Bruins, Mayor Jeff Slowey, Vice Mayor Sue Frost, Council Member Steve Miller, Council Member Mel Turner, Council Member

CITY OF CITRUS HEIGHTS CITY COUNCIL Special/Regular Meetings of Thursday, March 10, 2016 Citrus Heights Community Center 6300 Fountain Square Dr., Citrus Heights, CA Special Meeting 5:00 p.m. Regular Meeting 7:00 p.m.

PLEASE NOTE: The Council may take up any agenda item at any time, regardless of the order listed. Action may be taken on any item on the agenda. The City Council has established a procedure for addressing the Council. Speaker Identification Sheets are provided on the table inside the Council Chambers. If you wish to address the Council during the meeting, please complete a Speaker Identification Sheet and give it to the City Clerk. So that everyone who wishes may have an opportunity to speak, there is a five-minute maximum time limit when addressing the Council. Audio/Visual presentation material must be provided to the City Clerk’s Office at least 48 hours prior to the meeting.

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 City Hall located at 7927 Auburn Blvd, Citrus Heights during normal business hours. Email subscriptions of the agenda are available online by signing up with the City’s Notify Me service.

City Council meetings are televised live on Metro Cable 14, the government affairs channel on the Comcast and SureWest Cable Systems and replayed on the following Monday at 9:00 a.m. Meetings are also webcast live at www.citrusheights.net.

The Agenda for this meeting of the City Council for the City of Citrus Heights was posted in the following listed sites before the close of business at 5:00 p.m. on the Friday preceding the meeting.

1. City of Citrus Heights, 7927 Auburn Blvd., Citrus Heights, CA 2. Rusch Park Community Center, 7801 Auburn Boulevard, Citrus Heights, CA 3. Sacramento County Library, Sylvan Oaks Branch, 6700 Auburn Blvd., Citrus Heights, CA

If you need a disability-related modification or accommodation, including auxiliary aids or services, to participate in this meeting, please contact the City Clerk’s Office 916-725-2448, 7927 Auburn Blvd., at least 48 hours prior to the meeting. TDD (hearing impaired only) 916-725-6185.

March 4, 2016 ______Amy Van, City Clerk

Please turn off all cellular phones and pagers while the City Council meeting is in session.

Printed on Recycled Paper Agenda Packet Page1 Citrus Heights City Council Thursday, March 10, 2016

SPECIAL MEETING 5:00 PM

CALL SPECIAL MEETING TO ORDER

1. Roll Call: Council Members: Frost, Miller, Turner, Slowey, Bruins

PUBLIC COMMENT

CLOSED SESSION

2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION Pursuant to California Government Code Section 54956.9(d)(1) Lart Group, Inc. vs. City of Citrus Heights Sacramento Superior Court case No. 34-2014-00158878

STUDY SESSION

3. Discussion Concerning REACH and Neighborhood Associations

ADJOURNMENT

REGULAR MEETING 7:00 PM

CALL REGULAR MEETING TO ORDER

1. Flag Salute

2. Roll Call: Council Members: Frost, Miller, Turner, Slowey, Bruins

3. Video Statement

APPROVAL OF AGENDA

PRESENTATIONS

4. SOAR Presentation to Foothills K-9 Association & Introduction of Citrus Heights Police Department K9 Team

5. Proclamation in Recognition of Republic Services Employee Homer Gideon

6. Campus Life Connection Mid-Year Update

Page 2 of 4 Printed on Recycled Paper Agenda Packet Page2 Citrus Heights City Council Thursday, March 10, 2016

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES

PUBLIC COMMENT Under Government Code Section 54954.3, members of the audience may address the Council on any item of interest to the public and within the Council’s purview, or on any Agenda Item before or during the Council’s consideration of the Item. If you wish to address the Council during the meeting, please fill out a Speaker Identification Sheet and give it to the City Clerk. When you are called upon to speak, step forward to the podium and state your name for the record. Normally, speakers are limited to five minutes each with 30 minutes being allowed for all comments. Any public comments beyond the initial 30 minutes may be heard at the conclusion of the agenda. The Mayor has the discretion to lengthen or shorten the allotted times.

CONSENT CALENDAR It is recommended that all consent items be acted on simultaneously unless separate discussion and/or action are requested by a Council Member.

7. SUBJECT: Approval of Minutes RECOMMENDATION: Approve the Minutes of the Regular Meeting of February 25, 2016

8. SUBJECT: Approval of Activate Auburn Program Guidelines and Revised Economic Development Support Program Guidelines STAFF REPORT: R. Sherman / D. Rodriguez RECOMMENDATION: Staff Recommends that the City Council Adopt the Folowing Resolutions:

a. Resolution No. 2016 – ___; A Resolution of the City Council of the City of Citrus Heights, Approving Activate Auburn Program Guidelines

b. Resolution No. 2016 - ___ ; A Resolution of the City Council of the City of Citrus Heights, Approving Revised Economic Development Support Fund Guidelines

9. SUBJECT: Adoption of Resolution to Authorize the City of Citrus Heights to Apply for CalRecycle Payment Program Funding STAFF REPORT: D. Wheaton / M. Poole RECOMMENDATION: Adopt Resolution No. 2016 - ____ ; A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the Submittal of Applications to the Department of Resources Recycling and Recovery (CalRecycle) for all Available Payment Programs and Related Authorizations

10. SUBJECT: Adoption of Resolution to Authorize the City of Citrus Heights to Apply for All Available Grants the City is Eligible for Offered by the Department of Resources Recycling and Recovery (CalRecycle) STAFF REPORT: D. Wheaton / M. Poole

Page 3 of 4 Printed on Recycled Paper Agenda Packet Page3 Citrus Heights City Council Thursday, March 10, 2016

RECOMMENDATION: Adopt Resolution No. 2016 - ____; A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the Submittal of Applications for all CalRecycle Grants for Which the City of Citrus Heights is Eligible

PUBLIC HEARINGS

11. SUBJECT: Auburn Boulevard Plan 2016 Update STAFF REPORT: R. Sherman / C. Kempenaar RECOMMENDATION: Adopt Resolution No. 2016 - ___; A Resolution of the City Council of the City of Citrus Heights, California, Adopting Amendments to the Auburn Boulevard Plan – Reinventing the Auburn Boulevard Corridor

REGULAR CALENDAR

12. SUBJECT: Green Education Foundation Fee Waiver Request STAFF REPORT: R. Sherman / N. Lagura RECOMMENDATION: Staff Recommends Should Council Approve the Requested Fee Waiver, that Council Direct Planning Staff Accept Minor Use Permit Application from GEF Without an Application Fee

13. SUBJECT: Residential Solid Waste and Recycling Collection Services – Republic Services Contract Amendment STAFF REPORT: D. Wheaton / M. Poole RECOMMENDATION: Adopt Resolution No. 2016 - ___; A Resolution of the City Council of the City of Citrus Heights, California, Approving the 2016 Amended Agreement with Republic Services, Inc for the Provision of ResidentialGarbage and Recycling Services and Authorizing the City Manager to Execute the Amended Agreement

DEPARTMENT REPORTS

CITY MANAGER ITEMS

ITEMS REQUESTED BY COUNCIL MEMBERS/ FUTURE AGENDA ITEMS

ADJOURNMENT

Page 4 of 4 Printed on Recycled Paper Agenda Packet Page4 CITY OF CITRUS HEIGHTS Item 7 CITY COUNCIL MINUTES Special/Regular Meetings of Thursday, February 25, 2016 Citrus Heights Community Center 6300 Fountain Square Drive, Citrus Heights, CA

CALL SPECIAL MEETING TO ORDER

The special council meeting was called to order at 6:06 p.m. by Mayor Bruins.

1. Roll Call: Council Members present: Frost, Miller, Turner, Slowey and Bruins Council Members absent: None Staff present: Alejandrez, Boyd, Myers, Rodriguez, Van, Ziegler and department directors.

PUBLIC COMMENT

None

STUDY SESSION

2. “New” City Hall Fountains

Assistant to the City Manager Alejandrez and Facilities and Grounds Manager Myers led the study session on the proposed New City Hall fountains and public art displays.

City Council member comments followed.

ADJOURNMENT

Mayor Bruins adjourned the special meeting at 6:55 p.m.

CALL REGULAR MEETING TO ORDER

The regular council meeting was called to order at 7:03 p.m. by Mayor Bruins.

1. The flag salute was led by Council Member Miller.

2. Roll Call: Council Members present: Frost, Miller, Turner, Slowey, and Bruins Council Members absent: None Staff present: Boyd, Rodriguez, Van, Ziegler and department directors.

3. The video statement was read by City Clerk Van.

APPROVAL OF AGENDA

On a motion by Vice Mayor Slowey, seconded by Council Member Miller, the City Council approved the agenda.

Agenda Packet Page5 Citrus Heights City Council Minutes Special/Regular Meetings of February 25, 2016

AYES: Frost, Miller, Turner, Slowey, and Bruins NOES: None ABSENT: None

PRESENTATIONS

4. Economic Development Support Sponsorship Report for Spooktacular – Antelope Crossing Business Association

Dale Covey on behalf of the Antelope Crossing Business Association presented some highlights from the 2015 Spooktacular event and thanked the City Council for their support.

5. Economic Development Support Sponsorship for Chairman’s Circle Sponsorship – Chamber of Commerce

Kathilynn Carpenter, past Chair of the Citrus Heights Chamber of Commerce, provided a report on the benefits of the City’s sponsorship over the past year.

6. Citrus Heights Police Department Annual Crime Report

Police Chief Boyd provided an annual report concerning crime and collisions within the City. He stated that from 2014 to 2015 the Police Department experienced a decrease of persons crimes by 2% and a decrease in property crimes by 4%. He reported that over the last five years the Police Department has reduced crime by 19%. Crime Reduction Strategies utilized by the Police Department include Community Oriented Policing programs, collaborative community partnership, emphasis on narcotic, gang and PRCS offenders and excellent customer service. He stated they have experienced a slight increase in DUI collisions from 2014. He explained the Police Department will continue employing crime and collision reduction strategies. He recognized and introduced the POP/Code Enforcement Unit Sgt. Jason Baldwin, Officer Jeff Schouten, Officer James Garing ad Officer Felicia Taylor, Program Assistant Dianna Wood, and Code Enforcement Officers Leah Buck, Debra Nathan and Keith Aiello.

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES

Council Member Frost provided a report from the Sacramento Metropolitan Air Quality Management District Board meeting. She announced that longtime Citrus Heights resident Bill Muth recently passed away.

Council Member Miller provided a report from the Regional Transit Board meeting. He also provided a report from the Sunrise MarketPlace Board meeting.

Council Member Turner provided a report from the Quality of Life City Council 2x2 Committee meeting.

Vice Mayor Slowey provided a report from the Sacramento Public Library Authority Board meeting and the Sacramento Area Council of Governments Board meeting. He announced that the Citrus Heights Community Marching Band is holding their annual Spaghetti Feed fundraiser on March 19th.

Page 2 Agenda Packet Page6

Citrus Heights City Council Minutes Special/Regular Meetings of February 25, 2016

Mayor Bruins stated she received a report from the State Controller regarding the 5 year audit of the Gas Tax Street Improvement Fund and commended Finance Director Stefani Daniell and Finance Manager Fawn Merrill for their hard work to ensure the City passed the audit. She announced that the Citrus Heights Police Activities League has planned an upcoming hike for the youth. She provided an update on the Citrus Heights Chamber of Commerce Leadership Program.

PUBLIC COMMENT

Arthur Ketterling spoke regarding signage at the bus stop at Sunrise and Madison.

CONSENT CALENDAR

7. SUBJECT: Approval of Minutes RECOMMENDATION: Approve the Minutes of the Regular Meeting of February 11, 2016

8. SUBJECT: Approval of Sacramento Area Council of Government’s (SACOG) Community Design Grant Memorandum of Understanding (MOU) for Activate Auburn Campaign STAFF REPORT: R. Sherman / D. Rodriguez RECOMMENDATION: Adopt Resolution No. 2016 – 013 A Resolution of the City Council of the City of Citrus Heights, Authorizing the City Manager to Execute an Agreement with the Sacramento Area Council of Governments for the Activate Auburn Campaign

ACTION: On a motion by Council Member Frost, seconded by Council Member Turner, the City Council approved Consent Calendar Items 7 and 8.

AYES: Frost, Miller, Turner, Slowey and Bruins NOES: None ABSENT: None

PUBLIC HEARING

None

REGULAR CALENDAR

9. SUBJECT: Appointment to Fill Unexpired History and Arts Commission Position STAFF REPORT: A. Van RECOMMENDATION: It is recommended that Council Member Turner nominate one regular member to fill the unexpired term on the History and Arts Commission, subject to ratification by the City Council.

City Clerk Van presented the staff report.

Council Member Turner announced his individual appointment of Christine Stein to fill an unexpired term on the History and Arts Commission.

Page 3 Agenda Packet Page7

Citrus Heights City Council Minutes Special/Regular Meetings of February 25, 2016

ACTION: On a motion by Council Member Turner, seconded by Vice Mayor Slowey, the City Council ratified the individual appointment of Christine Stein to the History and Arts Commission to fill an unexpired term ending December 31, 2018.

AYES: Frost, Miller, Turner, Slowey and Bruins NOES: None ABSENT: None

DEPARTMENT REPORTS

10. SUBJECT: City Awareness Campaign DEPARTMENT: Community and Economic Development Department

Development Specialist Rodriguez reported that staff presented the City Awareness to Campaign to the City Council on February 11th. She stated overall the Council wanted to proceed with a campaign and to have clear goals set for the project, however, there were some concerns regarding overall costs. Staff recommended to release a detailed request for proposal and evaluate the proposals received to gain a better understanding of overall costs of a campaign.

Public Comment

Kathilynn Carpenter spoke in support of the City Awareness Campaign.

The City Council directed staff to move forward with releasing a request for proposals for a City Awareness Campaign.

CITY MANAGER ITEMS

None

ITEMS REQUESTED BY COUNCIL MEMBERS/FUTURE AGENDA ITEMS

Council Member Miller requested a future study session on the Building Divisions new PASS Program plan reviews.

ADJOURNMENT

Mayor Bruins adjourned the regular meeting at 8:26 p.m. in memory of Bill Muth.

Respectfully submitted,

______Amy Van, City Clerk

Page 4 Agenda Packet Page8

Item 8

Approved and Forwarded to City Council of the City of Citrus Heights

CITY OF CITRUS HEIGHTS ______Fin.

______Atty. Memorandum

March 10, 2016 Henry Tingle, City Manager

TO: City Council Members Henry Tingle, City Manager

FROM: Rhonda Sherman, Community & Economic Development Director Devon Rodriguez, Development Specialist

SUBJECT: Approval of Activate Auburn Program Guidelines and Revised Economic Development Support Program Guidelines

Summary and Recommendation The redevelopment and reuse of the City’s existing corridors, especially Auburn Boulevard, continue to be a priority for the City. In order to facilitate the redevelopment and reuse of the City’s major corridors, the Activate Auburn Campaign has been developed. Staff presented the Activate Auburn Campaign to City Council during a study session on January 14, 2016. The Campaign will be a pilot program that will be revisited in 12-18 months. The Campaign includes regulatory changes, one-on-one consulting, grants and fee waivers for property and business owners. The Campaign is being funded by a Sacramento Area Council of Governments (SACOG) Community Design Grant and the City’s Economic Development Support Fund. Staff has drafted program guidelines for the entire Activate Auburn Campaign, detailing each type of assistance, in addition to making revisions to the City’s Economic Development Support Fund program guidelines to facilitate implementation of the Campaign.

Staff recommends that the City Council approve the following Resolutions: 1. Resolution 2016____, A Resolution of the City Council of the City of Citrus Heights, approving Activate Auburn Program Guidelines. 2. Resolution 2016____, A Resolution of the City Council of the City of Citrus Heights, approving revised Economic Development Support Fund Guidelines.

Fiscal Impact The Activate Auburn Campaign is being funded by a SACOG Community Design Grant and the City’s Economic Development Support Fund. Revisions to the Economic Development Support Fund Guidelines for Sign Improvement include the elimination of an application fee. This will result in the loss of $50 per application to the General Fund. Since the start of the program in Fiscal Year 2013-2014, the City has received a total of $300 in administration fees to the General Fund.

Agenda Packet Page9 Subject: Approval of Activate Auburn Program Guidelines and Revised Economic Development Support Program Guidelines Date: March 10, 2016 Page 2 of 3

Background and Analysis Recently, the City completed the Auburn Boulevard Complete Streets Project, an approximately $20 million public investment, and design has begun on Phase II of the Project. However, the City’s commitment to corridor revitalization has not only been in the form of public improvements, there is a concerted economic development effort to assist businesses as well. Recently, economic development staff has been working to support a new business association, the Auburn Boulevard Business Association, and with technical assistance from SACOG, the Building Blocks event was held May 4-6, 2015 to assist Auburn Boulevard business and property owners with what they can start doing tomorrow to improve their business. On January 14, 2016, staff presented the Activate Auburn Campaign, a variety of regulatory changes, complimentary one-on-one consulting and grant opportunities staff developed to improve market conditions over time and spur the private investment envisioned in the Boulevard Plan.

Staff has developed guidelines for the Activate Auburn Campaign, including description of each type of assistance offered, applicant eligibility, limitation on assistance and other procedural information to guide the operation of the Campaign. Activate Auburn will provide the following assistance to property and business owners: complimentary one-on-one design/architectural and/or Best Retail Practices consulting, storefront matching grant (if applicant has participated in the Design Consulting); Best Retail Practices grant (if applicant has participated in the Best Retail Practices consulting) and fee waivers (for planning related fees only).

Like the Sign Improvement and Design Assistance programs covered under Part 2 of the Economic Development Support Fund, Activate Auburn Campaign applications will be approved by staff if they meet the program criteria. No review or approval by the Finance Committee or City Council will be required. The Activate Auburn program guidelines are included as Attachment 2.

The one-on-one consulting will be funded by the SACOG Community Design Grant, while the grants and fee waiver will be funded by the Economic Development Support Fund. It is anticipated that complimentary consulting will be provided to approximately ten businesses or property owners. In addition, if successful and funding permitting, the complimentary consulting will eventually be available to all businesses in the City’s commercial corridors, but to start this is a pilot program that will be focused on assisting Auburn Boulevard businesses and properties.

The Economic Development Support Fund provides a variety of grants and sponsorships to business associations, business groups and other efforts, as well as sign improvement grants and design assistance. Under the Activate Auburn Campaign, the Economic Development Support Fund will fund the storefront improvement and best retail practices grants and fee waivers. To facilitate the use of the Economic Development Support Fund for Activate Auburn Campaign activities, Economic Development staff evaluated the program guidelines for all aspects of the Economic Development Support Fund. Staff is recommending the following revisions to implement the Activate Auburn Campaign, reduce barriers and encourage participation in the programs:

Agenda Packet Page10 Subject: Approval of Activate Auburn Program Guidelines and Revised Economic Development Support Program Guidelines Date: March 10, 2016 Page 3 of 3

 Removal of application fee from Sign Improvement Guidelines. Staff is not recommending application fees for any of the Activate Auburn assistance and the Sign Improvement program is the only Economic Development program that currently requires an application fee. Staff would like to create consistency across all programs and encourage participation in the Sign Improvement Program.

 Removal of limitation on how much of the Economic Development Support Fund can be used for Design Assistance and Sign Improvement versus the other Economic Development Support Fund activities covered in the Part 1 guidelines. With the Activate Auburn Campaign, matching storefront grants, best practices retail grants and fee waivers will also be funded by the Economic Development Support Fund. In addition to the sign improvement assistance, staff expects to reach the maximum of 25 percent of the $150,000 ($37,500) Economic Development Support Fund quickly.

 Other clean-up revisions, such as allowing the City Manager to approve Economic Development Support Grants for $5,000 or less and the addition of the Auburn Boulevard Business Association as an eligible applicant. The current guidelines allow the City Manager to approve requests less than $5,000, meaning an application is for $4,999.

The revised red-line version of the program guidelines are included as Attachment 4, 5 and 6.

Conclusion The redevelopment and reuse of the City’s existing corridors, especially Auburn Boulevard, continues to be a priority for the City. The City was recently granted a SACOG Community Design Grant to support corridor revitalization. With this funding and funding from the Economic Development Support Fund, staff has developed a pilot program called Activate Auburn that includes a variety of regulatory changes, one-on-one complimentary consulting, grants and fee waivers. Staff recommends that the City Council approve the Activate Auburn program guidelines and revised Economic Development Support Fund guidelines.

Attachments: (1) Activate Auburn Resolution (2) Activate Auburn Program Guidelines (3) Economic Development Support Resolution (4) Economic Development Support Program Part 1 Guidelines (5) Economic Development Support Part 2 – Sign Improvement Guidelines (6) Economic Development Support Part 2 – Design Assistance Guidelines

Agenda Packet Page11 RESOLUTION NO. 2016- ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS, CALIFORNIA, APPROVING ACTIVATE AUBURN PROGRAM GUIDELINES

WHEREAS, the redevelopment and reuse of the City’s existing corridors continue to be a priority for the City and Auburn Boulevard continues to be the City’s highest priority capital improvement project; and

WHEREAS, recently there has been a lot of momentum in revitalizing Auburn Boulevard including: completion of Auburn Boulevard Complete Streets Phase I; the formation of the Auburn Boulevard Business Association; the start of Auburn Boulevard Complete Streets Phase II; the Building Blocks event funded by a technical assistance grant from the Sacramento Area Council of Governments (SACOG); and a recent SACOG Community Design Grant to provide assistance to Auburn property and business owners; and

WHEREAS, staff developed the Activate Auburn Campaign (also referred to as the Community Corridor Revitalization Project) to remove barriers and provide direct assistance to property and business owners in order to encourage private investment, reduce vacancies and build the commercial corridor’s brand and identity; and

WHEREAS, Activate Auburn is a pilot program that includes a variety of regulatory changes, technical assistance to businesses and property owners and grant; and

WHEREAS, if the pilot program is successful and funding permitting the technical assistance and grants will be available to business and property owners in other commercial corridors in the City; and

NOW THEREFORE BE IT RESOLVED AND ORDERED that the City of Citrus Heights does hereby approve the Activate Auburn Program Guidelines.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 10th day of March 2016 by the following vote, to wit:

AYES: Council Members: NOES: Council Members: ABSTAIN: Council Members: ABSENT: Council Members:

Jeannie Bruins, Mayor

ATTEST:

Printed on Recycled Paper Agenda Packet Page12

Amy Van, City Clerk

Agenda Packet Page13

ACTIVATE AUBURN PROGRAM GUIDELINES

INTRODUCTION The redevelopment and reuse of the City’s existing corridors, especially Auburn Boulevard, continue to be a priority for the City. In order to facilitate the redevelopment and reuse of the City’s major corridors, the Activate Auburn Campaign has been developed. The Campaign includes regulatory changes, complimentary one-on-one consulting, grants and fee waivers for property and business owners. This document serves as guidance for staff to ensure that transactions are handled in a fair and uniform manner and to provide consistency in the daily operations of the Campaign.

The Activate Auburn Campaign is a pilot program only. Periodically, this policy will be updated to address any necessary changes.

I. GENERAL ELIGIBLITY REQUIREMENTS

A. ELIGIBLE PROJECT AREA The Activate Auburn Campaign is available to commercial properties in the Auburn Boulevard Specific Plan area.

B. ELIGIBLE APPLICANTS 1. All owners of small businesses/commercial properties within the Eligible Project Area. 2. All tenants of commercial properties within the Eligible Project Area. Tenants applying for design consulting, matching storefront grant and fee waivers must have written approval from the property owner to participate in the program. 3. All business owners must possess an active business license. 4. All commercial properties must have no liens or active code enforcement cases. 5. Must sign an agreement with the City covering terms, obligations and timelines.

C. INELIGIBLE APPLICANTS 1. Public Assembly Uses 2. Residential Uses, including Home-Based Businesses 3. Uses prohibited by the Zoning Code 4. Personal Services-Restricted (as referenced in the Zoning Code), Liquor Stores, and Bars as standalone uses that were not in existence prior to the adoption of the Activate Auburn Campaign. (These uses as part of a larger project may be eligible subject to Community and Economic Development Director approval) 5. Businesses that do not meet the definition of small business as defined by this document 6. Government offices or agencies

Page 1 Activate Auburn Campaign Guidelines Agenda Packet Page14 7. Corporate or franchise stores with more than three (3) existing locations. (This use as part of a larger project may be eligible subject to Community and Economic Development Director approval)

D. TYPES OF ASSISTANCE

1. Complimentary Design Consulting Upon approval, qualifying applicants will receive one-on-one consultation with an architect. The consultation includes a site visit with the City approved architect and preparation of a rendering, including color, lighting, etc. selections. This assistance allows for the payment of the costs for a City approved design consultant up to a maximum of $10,000. The amount will be determined based on the scope of work and quote provided by the City’s on-call architect.

a. Eligible Projects include, but are not limited to: i. Conceptual Architectural Improvements ii. Conceptual Sign Improvements iii. Conceptual Site Improvements iv. Conceptual Landscaping and Parking Improvements

b. Ineligible Projects, include, but are not limited to: i. Interior Design ii. Structural Design iii. Roofing Design iv. Design of additional building area v. Other items as deemed inappropriate by the City

2. Complimentary Retail Consulting Eligible applicants must attend a 1-2 hour(s) mandatory workshop and following the workshop submit an application. Qualifying applicants receive one-on-one consultation and a written report by the consultant which includes recommendations to implement. This assistance allows for the payment of the costs for the City approved retail practices consultant.

3. Fee Waiver Qualifying applicants will have City-related planning permit fees including, minor use permit, use permit and design review permit, specifically, paid for by the Economic Development Support Fund, at no cost to the applicant. The assistance is equal to the amount of the fee charged per the City’s Planning Division.

4. Storefront Matching Grant Qualifying applicants must meet all eligibility requirements plus have participated in the Complimentary Design Consulting. This assistance allows for

Page 2 Activate Auburn Campaign Guidelines Agenda Packet Page15 the purchase of a Preservation Covenant for a value in an amount up to 50% of the cost of the eligible improvements, ranging from a minimum amount of $2,500 (City’s share) to a maximum amount of $20,000 (City’s share).

a. Eligible Improvements include, but are not limited to: i. Awnings and canopies ii. Doors and windows on front and public sides of buildings iii. Exterior facade improvements iv. Exterior lighting v. Landscaping and Parking Improvements vi. Site Improvements

b. Ineligible Improvements, include, but are not limited to: i. Improvement completed prior to the City approving the program application. ii. Architectural/Design Services (not provided by City’s program) iii. Regular maintenance iv. Roofing v. ADA improvements vi. City building permit and impact fees

5. Best Retail Practices Grant Qualifying Applicants must meet all eligibility requirements plus have completed the Complimentary Retail Consulting and received written recommendations that they would like to implement. The assistance is a maximum of $2,000 per applicant and will be disbursed on a reimbursement basis.

II. ACTIVATE AUBURN PROGRAM DESCRIPTION

A. GENERAL

1. Purpose and Goals: The primary purpose of the Activate Auburn Campaign is to provide direct assistance to property and business owners in order to decrease vacancies, activate properties, and build district brand and identity. It is the eventual goal that these results will then improve market conditions on Auburn Boulevard by increasing demand and increasing property values and sales per square foot.

2. Eligibility: In order to qualify for the Program, the Applicant(s) must meet all eligibility requirements as described in Part I, or at the Community and Economic Development Director’s discretion. An application must be submitted utilizing the City approved form. The applicant must complete the requested information and provide supporting documentation when requested.

Page 3 Activate Auburn Campaign Guidelines Agenda Packet Page16 All applications will be reviewed and approved by Economic Development staff for meeting program requirements. In addition, project must be in compliance with all applicable Federal, State and local laws.

3. Limit to Consulting and Grants: Each business is limited to one (1) retail consulting and one (1) retail grant. Each standalone property or tenant space is limited to one (1) design consulting and one (1) matching storefront grant; and each project is limited to one (1) fee waiver. Exceptions to this policy are at the discretion of the Community & Economic Development Director.

4. Funding Availability: Each application will be reviewed and evaluated per the eligibility requirements. Staff will determine if applications will be accepted on a first come first served basis or by a Notice of Funding Availability depending on the level of interest. Activate Auburn Campaign is being funded by a one-time Community Design Grant and the Economic Development Support Fund. The City reserves the right to designate how much funding is allocated annually to the Economic Development Support Fund. The City also reserves the right to cancel the Economic Development Support Program at any time.

B. TERMS AND CONDITIONS

1. Application: All applicants should review the Program Guidelines prior to submitting an application.

2. Disbursement: Upon approval, City staff will confirm when the applicant needs the funding. Within 10 days of the applicant’s request for funds, the City will disburse funds to the Applicant. Funds will be disbursed on a reimbursement basis.

3. Ownership of Documents: The originals of all reports and documents generated by the Program shall become the property of the City.

4. Right to Refusal: The City shall have the right to refuse an application that is a conflict of interest or in conflict with city policy.

III. NON-DISCRIMINATION POLICY

The City shall not discriminate against any Applicant on the basis of race, color, religion, sex, sexual preference, marital status, ancestry, national origin, disability, pregnancy disability, medical condition, sexual orientation, gender, or transgender.

IV. DEFINITIONS

Page 4 Activate Auburn Campaign Guidelines Agenda Packet Page17 The following definitions shall apply to this document unless another meaning is clearly apparent from the context.

APPLICANT shall mean described under Section I, Part B, “Eligible Applicants.”

CITY shall mean the City of Citrus Heights.

PROGRAM shall mean any type of assistance under the Activate Auburn Campaign, also referred to as the “Community Corridor Revitalization Project.”

TENANT shall mean a person who rents or is otherwise in lawful possession of commercial property within the Eligible Project Areas, which is owned by another.

SHOPPING CENTER shall mean a group of retail or other commercial establishments that is planned, developed, owned and/or managed as a single property but may include multiple adjacent structures under common ownership

SMALL BUSINESS shall mean one of the following: 1. Stand-alone properties less than 25,000 SF in Floor Area 2. Tenant spaces less than 10,000 SF in Floor Area 3. Shopping Centers with a cumulative floor area of less than 50,000 SF.

STOREFRONT shall mean a separate leasable tenant space within an individual shopping center. If a tenant occupies more than one adjacent, leasable tenant spaces in the same shopping center the area will count as one storefront.

Page 5 Activate Auburn Campaign Guidelines Agenda Packet Page18 RESOLUTION NO. 2016- ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS, CALIFORNIA, APPROVING REVISED ECONOMIC DEVELOPMENT SUPPORT FUND GUIDELINES

WHEREAS, in May 2012 the City Council created a new three-year Strategic Goal entitled “Improve Economic Development”; and

WHEREAS, staff developed a draft Citrus Heights Economic Development Incentive Initiative, which included a six-part Citrus Heights Model. One part of the model was to create an Economic Development Support Fund; and

WHEREAS, on March 14, 2013 City Council approved guidelines, program criteria and application process for the Economic Development Support Fund – Part I and Part II; and

WHEREAS, from time to time staff evaluates the project guidelines and recommends revisions if necessary; and

WHEREAS, on January 14, 2016 City Council held a study session on a proposed Activate Auburn Campaign. The campaign is a pilot program focused on removing barriers and providing direct assistance to property and business owners in order to encourage private investment, reduce vacancies and build the commercial corridor’s brand and identity; and

WHEREAS, as a result of the preparation process for Activate Auburn, Economic Development staff reviewed other existing economic development programs for how barriers may be removed to encourage further participation; and

WHEREAS, in order to facilitate the use of the Economic Development Support Fund for Activate Auburn and further encourage businesses to utilize the Economic Development Programs, including Sign Improvement, staff is proposing revisions to the program guidelines as shown in Attachment A.

NOW THEREFORE BE IT RESOLVED AND ORDERED that the City of Citrus Heights does hereby approve the revised Economic Development Support Fund Guidelines.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 10th day of March 2016 by the following vote, to wit:

AYES: Council Members: NOES: Council Members: ABSTAIN: Council Members: ABSENT: Council Members:

Printed on Recycled Paper Agenda Packet Page19

Jeannie Bruins, Mayor

ATTEST:

Amy Van, City Clerk

Agenda Packet Page20 Citrus Heights Economic Development Incentive Initiative ECONOMIC DEVELOPMENT SUPPORT FUND – PART I ECONOMIC DEVELOPMENT SUPPORT PROGRAM GUIDELINES

INTRODUCTION The City of Citrus Heights created the Economic Development Support Program (Program) to provide funding for special events, marketing activities or other economic development related activities that provide a public benefit to the City.

This program is one-part of the Economic Development Support Fund (Fund). The primary purpose of the Fund is to provide sponsorships and grants that promote the City of Citrus Heights’ commerce and increase business activity to help do the following:

 Increase job base  Increase tax base  Attract new shoppers/expand trade zone  Promote/market a specific commercial area/City  Create or enhance a sense of place  Improve aesthetics of a commercial area  Improve the perception and/or practice of City as business friendly

The Economic Development Support Fund receives an annual allocation, established by City Council. The Fund finances three separate programs: the Economic Development Support Program, the Design Assistance Program and the Sign Improvement Program. Twenty-five percent (25%) of the total annual allocation is reserved for assistance provided under the Design Assistance Program and Sign Improvement Program; and seventy-five percent (75%) of the total annual allocation is reserved for the Economic Development Support Program.

If the amount reserved for Sign Improvement and Design Assistance is not used or anticipated to be used in the Fiscal Year, City Council may authorize the funds to be used for the Economic Development Support Program. To receive additional funding, over the maximum threshold, City Council approval of a specific amount is required. Unless otherwise allocated, all other funds will be used for the Economic Development Support Program for economic development-related activities. Applications will be accepted on a first-come, first-served basis, and at any time. The program will be managed as a zero- based budget. Any funds not used during the fiscal year will be returned to the General Fund and a new allocation with be made. Unused funds will not roll over from year-to-year.

This document serves as guidance for staff to ensure that transactions are handled in a fair and uniform manner and to provide consistency in the daily operations of the Program. Periodically, this Policy will be updated to address any necessary changes.

Page 1 ED Support Fund – Part I Revised May 22, 2014March 10, 2016 Agenda Packet Page21 I. GENERAL ELIGIBILITY REQUIREMENTS

A. ELIGIBLE PROJECT AREAS The Program is available for economic development-related activities/efforts located in the City of Citrus Heights with an approved project being conducted within the City of Citrus Heights.

B. ELIGIBLE APPLICANTS 1. An Applicant is defined in Section IV, Definitions. Eligible Applicants include the following: a. Business Associations b. Individual Businesses c. Citrus Heights Regional Chamber of Commerce d. Sunrise MarketPlace Property-based Improvement District e. Antelope Crossing Business Association e.f. Auburn Boulevard Business Association f.g. Economic-development related organizations or efforts that meet the program goals

C. INELIGIBLE APPLICANTS 1. Individual residents 2. Neighborhood Associations 3. REACH

D. ELIGIBILE/INELIGIBLE PROJECTS 1. Eligible Projects include, but are not limited to, the following: a. Event sponsorships b. Grants for marketing and promotions c. Studies to further economic development d. Economic development-related activities that promote program goals

2. Ineligible Projects include, but are not limited to, the following: a. General operation costs including maintenance and payroll b. Cost of internal events, such as luncheons c. City membership dues d. Unpermitted events or events not authorized per the zoning code

E. PROGRAM CRITERIA To qualify for a grant or sponsorship, an application must be submitted, utilizing the City approved form. The applicant must complete the requested information and provide supporting documentation as appropriate (e.g. an event plan, budget, industry statistics, and newspaper articles/press releases).

All applications will be reviewed by Economic Development staff and the Finance Committee (if applicable) for the following criteria:

1. Program Goals: Meet one or more of the program goals.

Page 2 ED Support Fund – Part I Revised May 22, 2014March 10, 2016 Agenda Packet Page22 2. Targeted Areas: Applications are not limited to specific geographical areas in the City, but applications benefiting Antelope Crossing, Auburn Boulevard Specific Plan Area, former Redevelopment Area or the Sunrise MarketPlace are emphasized. 3. Projected Outcome: Each application must describe what the expected outcome of the project, program or event is (e.g. expect 1,000 attendees; increased awareness of area/City; expand trade zone). 4. Leveraging Investment: Funding from the City cannot be the sole funding source. Favorable applications will demonstrate how funds are affectively leveraging public or private investment (i.e. match for grant). 5. Sustainability: Ability of the association, business or group to carry out the described program, project or event over time without continuous financial support from the City. 6. Public Benefit: Description of how the proposed program, project or event is a benefit to the City/community.

II. ECONOMIC DEVELOPMENT SUPPORT PROGRAM DESCRIPTION

A. GENERAL

1. Purpose and Goals: The primary purpose of the Economic Development Support Program is to provide sponsorships and grants for events, projects or programs that will promote the City of Citrus Heights’ commerce and increase business activity to help do the following:

 Increase job base  Increase tax base  Attract new shoppers/expand trade zone  Promote/market a specific commercial areas/City  Create or enhance a sense of place  Improve aesthetics of a commercial area  Improve the perception and/or practice of City as business friendly

2. Eligibility: In order to qualify for the Program, the Applicant(s) must meet all General Eligibility Requirements. In addition, the proposed program, project or event must be in compliance with all applicable Federal, State and local laws.

3. Value of Grant or Sponsorship: Grants or sponsorships will range from $500 to $25,000. The amount will be determined based on the application, supporting material and evaluation criteria. If request is for a sponsorship, the application must outline the specific, concrete benefits to the City. The City Council or City Manager will approve the awarded amount.

4. Limit to Grant or Sponsorship: Each approved grant or sponsorship will be subject to a maximum amount of $25,000 per organization, per fiscal year (July 1st through June 30th). An organization may submit more than one application, but under no circumstances, will the total amount awarded to the applicant in one fiscal year exceed $25,000.

Page 3 ED Support Fund – Part I Revised May 22, 2014March 10, 2016 Agenda Packet Page23 5. Funding Availability: Applications will be received on a first-come, first-served basis and at any time. Each application will be reviewed and evaluated per the funding criteria by Economic Development staff. If an application requests less than $5,000 or less the application may be approved or denied at the City Manager’s discretion. City Council will be notified of any award. If an application requests $5,0001 or more the application will be reviewed by the Finance Committee. The Finance Committee will make recommendations to the City Council for funding approval. The City reserves the right to designate how much funding is allocated annually. The City also reserves the right to cancel the Program at any time.

B. TERMS AND CONDITIONS

1. Application: All applicants should review the Program’s General Eligibility Requirements prior to submitting an application.

2. Disbursement: Upon approval from the City Council or City Manager, City staff will confirm when the applicant needs the funding. Within 10 days of the applicant’s request for funds, the City will disburse funds to the Applicant. If the award is for a special marketing campaign or some other eligible project whereby its total cost is determined by time for services rendered, funds will be disbursed on a reimbursement basis.

3. Right to Refusal: The City shall have the right to refuse an application that is a conflict of interest or in conflict with city policy.

III. NON-DISCRIMINATION POLICY

IV. DEFINITIONS

The following definitions shall apply to this document unless another meaning is clearly apparent from the context.

APPLICANT shall mean a business association, individual business or economic development- related organization or effort that meets the program goals as described under Section I, Part B, Eligible Applicants.

BUSINESS ASSOCIATION shall mean an organization of people with the common purpose of assisting businesses in the City of Citrus Heights or in a specific geographical area within the City of Citrus Heights.

CITY shall mean the City of Citrus Heights.

ECONOMIC DEVELOPMENT generally refers to a concerted action that promotes the standard of living and economic health of a specific area. Such action can involve multiple areas including Page 4 ED Support Fund – Part I Revised May 22, 2014March 10, 2016 Agenda Packet Page24 human capital, pubic infrastructure, regional competitiveness and other initiatives. In some cases an action can be quantified in number of jobs created or sustained.

FINANCE COMMITTEE shall mean the two members of the City Council that are assigned to serve on the said committee.

FISCAL YEAR shall mean the City’s Fiscal Year from July 1st to June 30th.

PROGRAM shall mean the Economic Development Support Program.

V. ECONOMIC DEVELOPMENT SUPPORT PROGRAM PROCEDURES

A. APPLICATION SUBMITTAL AND EVALUATION

1. Annually, City Council will determine the total amount of funding available for the Program.

2. Applications are accepted on a first-come, first-served basis, at any time.

3. Applicant completes and submits the City’s application.

4. City staff shall review and evaluate each application based on the Program’s eligibility requirements and funding criteria.

5. City staff, Finance Committee or City Council may request follow-up information from the applicant to complete evaluation of the application. The applicant shall provide the requested information by the date City staff designates, but under no circumstance will more than two weeks be provided.

6. Application requests for more than $5,000 or more will be reviewed by the Finance Committee including the initial application and staff’s evaluation based on set funding criteria.

B. AWARD OF FUNDING

1. Application requests less than for $5,000 or less will be reviewed by the City Manager for approval. If approved, City staff will provide notice to the City Council that an award has been made.

2. Application requests for more than $5,000 or more will be reviewed by the Finance Committee including the initial application and staff’s evaluation based on set funding criteria.

a. If approved by the Finance Committee, the City Council shall review the recommended grant or sponsorship awards at a public meeting, receive public comment, and determine the final grant or sponsorship awards.

Page 5 ED Support Fund – Part I Revised May 22, 2014March 10, 2016 Agenda Packet Page25 C. PAYMENT OF AWARD

1. Upon approval by the City Council or the City Manager, the applicant must submit to the City a Request for Funds.

2. Upon receipt of the Request for Funds, staff shall distribute the funds to the applicant within ten (10) business days.

Page 6 ED Support Fund – Part I Revised May 22, 2014March 10, 2016 Agenda Packet Page26 Citrus Heights Economic Development Incentive Initiative ECONOMIC DEVELOPMENT SUPPORT FUND – PART II DESIGN ASSISTANCE GUIDELINES

INTRODUCTION The City of Citrus Heights created the Design Assistance Program (Program) to assist business and property owners of existing commercial and office buildings redevelop property or enhance concepts for buildings located within the City.

The City’s investment in this service is envisioned to lead to business also participating in a façade loan program, provided by a partner, to further its goal of supporting the revitalization of commercial properties and improving the economic vitality within the City.

The key features of the Program are:

 Participant will meet with staff and consultant onsite to discuss design concepts for the site.  The consultant will prepare conceptual designs, budgets, reports, etc. to assist the applicant in developing a potential project.

This program is a subprogram to the Economic Development Support Fund. The primary purpose of the Economic Development Support Fund is to provide sponsorships and grants that promote the City of Citrus Heights’ commerce and increase business activity to help do the following:

The Economic Development Support Fund receives an annual program allocation, established by City Council. Twenty-Five percent (25%) of the total annual allocation is reserved for assistance provided under the Design Assistance Program and Sign Improvement Program. If the amount reserved for the Design Assistance Program and Sign Improvement Program is not used or anticipated to be used in the Fiscal Year, City Council may authorize the funds to be used for the Economic Development Support Program (Part I).

Page 1 ED Support Fund – Part II Design Guidelines Revised March 10, 2016 Agenda Packet Page27 I. GENERAL ELIGIBILITY REQUIREMENTS

A. ELIGIBLE PROJECT AREAS The Design Assistance Program is available to commercially-zoned properties in the City of Citrus Heights.

B. ELIGIBLE APPLICANTS 1. An Applicant is defined in Section IV, Definitions. Eligible Applicants include the following: a. All owners of small businesses/commercial properties within the Eligible Project Areas. b. All tenants of commercial properties within the Eligible Project Areas, subject to submittal of written approval from the property owner.

C. INELIGIBLE APPLICANTS 1. Applicants that have previously received City funding for Design Guidance 2. Public Assembly Uses 3. Residential Uses, including Home-Based Businesses 4. Uses prohibited by the Zoning Code 5. Personal Services-Restricted as referenced in the Zoning Code, Liquor Stores, and Bar/Taverns as standalone uses. (These uses as part of a larger project may be eligible subject to Community and Economic Development Director approval) 6. Businesses that do not meet the definition of small business as defined by this document

D. ELIGIBLE/INELIGIBLE PROJECTS 1. Eligible Projects include, but are not limited to, the following: a. Conceptual Architectural Improvements b. Conceptual Sign Improvements c. Conceptual Site Improvements d. Conceptual Landscaping and Parking Improvements

2. Ineligible Projects, include, but are not limited to, the following: a. Interior Design b. Structural Design c. Roofing Design d. Other items as deemed inappropriate by the City

II. DESIGN ASSISTANCE PROGRAM DESCRIPTION

A. GENERAL

1. Purpose and Goals: The purpose of the Program is to promote joint public/private action and investment which will complement and enhance revitalization efforts in the City through developing design concepts for businesses interested in improving their properties. The Program also addresses the City’s goals of promoting and assisting the

Page 2 ED Support Fund – Part II Design Guidelines Revised March 10, 2016 Agenda Packet Page28 development of needed retail and commercial activities and undertaking beautification efforts to eliminate visual blight within the City.

2. Eligibility: In order to qualify for the Design Assistance Program, the Applicant(s) must meet all General Eligibility Requirements.

3. Value of Design Assistance: The Program shall allow for the payment of the costs for a City approved design consultant up to a maximum of $10,000.

4. Funding Availability: All applications are to be reviewed on a first-come, first-serve basis and will be subject to available funding. The City reserves the right to designate how much funding is allocated annually. The City also reserves the right to cancel the Program at any time.

B. TERMS AND CONDITIONS

1. Pre-Application: After review of the Program’s General Eligibility Requirements, the applicant will meet with City staff to discuss the desired work to be completed. If the proposed work is consistent with the General Eligibility Requirements as determined by City staff, a completed application will be submitted.

2. Consultant Contract: If the application is approved by the City, City staff will meet with the consultant and applicant to discuss ideas and concepts. The consultant will contract directly with the City for services not to exceed $10,000. The scope of the contract shall be determined by the City. The applicant may enter into a separate contract with the consultant to provide additional services beyond the scope; however, the City shall not be responsible for any work performed beyond the City scope.

3. Code Compliance: The conceptual design shall comply with all applicable building code, land use and planning laws, design guidelines and rules and regulations of the City of Citrus Heights.

4. Disbursement: The applicant and/or the design consultant shall furnish the City with the completed conceptual design, report, or any other materials furnished by the consultant along with the invoice for the work. Upon receipt of the documents, City staff will confirm the provided information complies with the program requirements and verify the invoice. Within 10 days of receipt of the required invoice, staff will review the submitted documents and the City will disburse funds to the consultant and provide the submitted documents to the Applicant.

5. Termination: The City shall have the right to terminate the contract with the consultant in the event that the City determines their services are no longer necessary. Prior to the termination, the City shall provide written notice to the consultant specifying the reasons for termination.

6. Ownership of Documents: The originals of all reports and documents generated by the Program shall become the property of the City. Page 3 ED Support Fund – Part II Design Guidelines Revised March 10, 2016 Agenda Packet Page29

7. Right to Refusal: The Community and Economic Development Director shall have the right to refuse an application that appears to be a conflict of interest, conflict with city policy or other reason deemed appropriate by the director.

III. NON-DISCRIMINATION POLICY

IV. DEFINITIONS

The following definitions shall apply to this document unless another meaning is clearly apparent from the context.

APPLICANT shall mean either an owner or tenant of commercial property in the City.

CITY shall mean the City of Citrus Heights.

COMMUNITY & ECONOMIC DEVELOPMENT DIRECTOR shall mean the Community & Economic Development Director for the City of Citrus Heights or their designee.

ELIGIBLE PROJECT AREAS shall mean those commercially-zoned properties located within the City of Citrus Heights.

PARTICIPANT shall mean the owner of commercial property within the Eligible Project Areas pursuant to Sacramento County records participating in the Design Assistance Program.

PROGRAM shall mean the Design Assistance Program.

PROJECT SITE shall mean the location where the eligible improvements are to be constructed.

TENANT shall mean a person who rents or is otherwise in lawful possession of commercial property within the Eligible Project Areas, which is owned by another.

V. DESIGN ASSISTANCE PROGRAM PROCEDURES

A. INITIAL APPLICATION

1. Following the informal meeting with City staff, a Design Assistance Program application will be provided to Applicant. Page 4 ED Support Fund – Part II Design Guidelines Revised March 10, 2016 Agenda Packet Page30

2. Applicant completes and submits the City’s application.

3. Following review of the application and verification of available funding, City staff will contact Applicant to discuss the procedures of the Program and to schedule an on-site meeting to discuss the goals of the proposed project.

B. CONSULTANT WORK

1. Following the on-site visit, staff will arrange a meeting between the applicant and the design consultant to discuss concepts. The City will enter into a contract with the consultant to provide the services in the scope of work, not to exceed $10,000.

2. Consultant will prepare conceptual design, report, or other documentation and provide the City and the applicant with a copy.

3. The Consultant shall submit invoices/receipts for the City to Review

C. PAYMENT FOR SERVICES RENDERED

1. Staff will review invoices/receipts for consultant services rendered.

2. Within 10 days of confirming the accuracy of the invoices, staff shall distribute funds to the consultant.

Page 5 ED Support Fund – Part II Design Guidelines Revised March 10, 2016 Agenda Packet Page31 Citrus Heights Economic Development Incentive Initiative ECONOMIC DEVELOPMENT SUPPORT FUND – PART II SIGN IMPROVEMENT GUIDELINES

INTRODUCTION The City of Citrus Heights created the Sign Improvement Program (Program) to assist small businesses in the City make improvements to their sign(s), eliminate blight, and encourage economic development. The improvements made by the property owner are maintained through acquisition of a Sign Improvement Covenant. The covenant commits property owners to preserve the improvements to their sign(s) on their existing commercial property located within the City.

The Program’s use of a Sign Improvement Covenant is intended to enhance and preserve sign improvements and establish a continuing maintenance agreement for those improvements. All improvements are paid for by the applicant and approved by the City prior to purchase of the covenant. The value of the Sign Improvement Covenant will be calculated based on the eligible improvements. The intent of the program is to physically enhance the properties within the City’s commercial districts. The funds are not intended for standard maintenance, repair, or to allow larger, taller, brighter, or more prominent signs simply because the business believes it is necessary. Projects that exemplify the City Design Guidelines will receive priority funding.

The City’s investment in the Sign Improvement Covenant furthers its goals of supporting the revitalization of commercial properties and improving the economic vitality within the City’s commercial corridors.

The key features of the Program are:

 Participant will convey a Sign Improvement Covenant to the City which will place certain terms and conditions on the development and maintenance of the building signs for a three-year term.  A Sign Improvement Covenant at a value of up to 50% of eligible improvement costs, up to a maximum value of $5,000 (City’s share) and a minimum value of $1,000 (City’s share), may be purchased by the City.  The Sign Improvement Covenant serves to preserve the character of the building and property.  Improvements will be inspected annually to ensure the improvements are preserved in the same character, quality, and condition as that which was in place on the Project Site on the day the City purchased the Sign Improvement Covenant from Participant.  Sign Improvement Covenant will be provided on a first-come, first-serve basis. In the event that more applications are received than funding available, the City will prioritize applications based on the location within the City’s commercial areas, the benefit the project has upon the City and the level of financial participation by the property owner.

 Increase job base  Increase tax base

Page 1 ED Support Fund – Part II Sign Improvement Guidelines Revised March 10, 2016 Agenda Packet Page32  Attract new shoppers/expand trade zone  Promote/market a specific commercial area/City  Create or enhance a sense of place  Improve aesthetics of a commercial area  Improve the perception and/or practice of the City as business friendly

Page 2 ED Support Fund – Part II Sign Improvement Guidelines Revised March 10, 2016 Agenda Packet Page33 I. GENERAL ELIGIBILITY REQUIREMENTS

A. ELIGIBLE PROJECT AREAS The Sign Improvement Program is available to commercially-zoned properties in the City of Citrus Heights

C. INELIGIBLE APPLICANTS 1. Applicants that have previously received City funding for Sign Improvements 2. Public Assembly Uses 3. Residential Uses, including Home-based Businesses 4. Uses prohibited by the Zoning Code 5. Personal Services-Restricted as referenced in the Zoning Code, Liquor Stores, and Bar/Taverns as standalone uses. (These uses as part of a larger project may be eligible subject to Community and Economic Development Director approval) 6. Businesses that do not meet the definition of small business as defined by this document

D. ELIGIBLE/INELIGIBLE PROJECTS 1. Eligible Projects, include, but are not limited to, the following: a. Signage consistent with the sign types allowed by the Zoning Code.

2. Ineligible Projects, include, but are not limited to, the following: a. Improvements completed prior to the City’s approval of the Sign Improvement Program application b. Regular Maintenance c. Temporary signage d. Signage not allowed per the City Zoning Code e. City of Citrus Heights Permit Fees f. Other items as deemed inappropriate by the City

II. SIGN IMPROVEMENT PROGRAM DESCRIPTION

A. GENERAL

1. Purpose and Goals: The purpose of the Program is to promote joint public/private action and investment which will complement and enhance revitalization efforts in the City through the provision of a Sign Improvement Covenant. The Program also addresses the City’s goals of promoting and assisting the development of needed retail

Page 3 ED Support Fund – Part II Sign Improvement Guidelines Revised March 10, 2016 Agenda Packet Page34 and commercial activities and undertaking beautification efforts to eliminate visual blight within the City.

2. Eligibility: In order to qualify for the Sign Improvement Program, the Applicant(s) must meet all General Eligibility Requirements.

3. Value of Sign Assistance: The Program shall allow the purchase of a Sign Improvement Covenant for a value in an amount up to 50% of the cost of the eligible improvements, ranging from a minimum amount of $1,000 (City’s share) to a maximum amount of $5,000 (City’s share).

4. Fees: At the time an application is submitted, a non-refundable fee of $50 will be collected from the Applicant(s) to cover costs associated with processing the application.

5.4. Funding Availability: All applications are to be reviewed on a first-come, first-serve basis and will be subject to available funding. The City reserves the right to designate how much funding is allocated annually. The City also reserves the right to cancel the Program at any time.

6.5. Funding: In consideration of Participant’s agreement to preserve the Improvements in the same character, quality and condition at Participant’s own expense, a Sign Improvement Covenant may be purchased by the City based on a value established by documentation submitted by the Applicant for eligible improvement costs incurred.

7.6. Security: The Program Covenant is a mechanism for the City to acquire the property owners covenant to preserve in the same character, quality, and condition as that which was in place on the Project Site on the day the City purchased the Covenant from the Participant, for a minimum of three (3) years, the improvements approved by this Program and as agreed to in the Covenant.

8.7. Cumulative Grants: Each Property (as determined by the City Manager) shall be limited to a maximum of two sign grants.

B. TERMS AND CONDITIONS

2. Code Compliance: The eligible improvements shall comply with all applicable building code, land use and planning laws, design guidelines and rules and regulations of the City of Citrus Heights.

Page 4 ED Support Fund – Part II Sign Improvement Guidelines Revised March 10, 2016 Agenda Packet Page35 3. Permits: Before commencement of construction, Applicant shall secure any and all permits which may be required by the City of Citrus Heights or any other governmental agency affected by such construction and shall schedule all required inspections which may be required by the City or any other governmental agency.

4. Site Maintenance: Prior to the completion of the eligible improvements, the portion of the site undergoing construction shall be maintained in a neat and orderly condition to the extent practicable and in accordance with applicable health and safety standards. Existing Code violations will disqualify the project from receiving funding until the violations are resolved.

5. Program Participation Signage: During the construction period, the City may place a sign at the project site at a location selected by the Applicant and the City indicating participation in the Sign Improvement Program.

6. Completion of Improvements: Construction of the eligible improvements shall be completed pursuant to the approved final design and final budget within six months of application approval by the Community and Economic Development Director, unless otherwise approved in writing by the City. In the event the improvements are not completed within six months, the City reserves the right to decline the Application in order to dedicate the funds elsewhere.

The improvements shall be constructed in accordance with the approved final design drawings and final budget, except as changes that may be mutually agreed upon in writing between the Applicant and City staff.

7. Disbursement: Prior to the execution of the Sign Improvement Covenant and subsequent disbursement of any funds, the Applicant shall notify the City and request a Project Site inspection to confirm the improvements have been completed. The Applicant is the sole party responsible for making all payments to the contractor(s) providing services to complete the eligible improvements. Once the project has been inspected and approved by the City, the Applicant must submit paid receipts or invoices itemizing the total project costs. Staff will review the submitted documents and calculate the value of the Sign Improvement Covenant in accordance with this policy. After final approval, a Sign Improvement Covenant will be executed by both parties and recorded by the City. Within 10 days of recordation of the Sign Improvement Covenant the City will disburse funds to the Applicant.

8. On-Going Maintenance: Once the eligible improvements are completed, the signage shall be maintained in good repair and in a neat and orderly condition. Any damage to the sign is to be repaired within 10 business days by the Participant so that the improvements remain in good condition and positively contributes to the business area.

9. Annual Certification: During the three-year term of the Covenant, the City or its designated representative shall inspect the eligible improvements on an annual basis. If the improvements are found to be inadequately maintained in accordance with Section II(B)(9) of this Policy, the Participant shall immediately commence and diligently proceed Page 5 ED Support Fund – Part II Sign Improvement Guidelines Revised March 10, 2016 Agenda Packet Page36 to repair the improvements within ten (10) days after receipt of written notice from the City. Failure or delay by Participant to comply with the request of the City will constitute a default of this Covenant.

10. Termination: The City shall have the right to terminate the Sign Improvement Covenant upon written notice to the Participant in the event that the Participant fails to comply with any of the provisions of the Sign Improvement Covenant. Prior to the termination, the City shall provide written notice to the Participant specifying the reasons for termination, and give the Participant reasonable opportunity to comply with the guidelines of the Program and the Covenant. Following such notice, the City may terminate the Agreement and seek reimbursement in accordance with Section III of this Policy and Procedures.

11. Ownership of Documents: The originals of all reports and documents generated by the Program shall become the property of the City.

12. Right to Refusal: The Community and Economic Development Director shall have the right to refuse issuance of a Sign Improvement grant based on design, conflict of interest, conflict with city policy or other reason deemed appropriate by the director.

III. DEFAULT

A. Failure or delay by either party to perform any term or provision of the Covenant constitutes a default under the Sign Improvement Covenant. The injured party shall give written notice of the default to the party in default, specifying the default complained of by the injured party. The party who has defaulted must commence to cure such default in thirty (30) days of receipt of notice of default, and shall complete such cure with reasonable diligence and during any period of curing shall not be in default.

B. If the Participant breaches or violates any provision of the (1) Covenant; or (2) applicable Program regulations, the City shall give written notice to the Participant stating the violation and requiring the Participant to cure the breach or violation within a period of not less than 30 days from such notice. If the breach or violation is not cured to the satisfaction of the City within the specified period of time, the City, at its option, may declare a default under the relevant document and seek remedies for the default, including, but not limited to proceedings to compel specific performance by the Participant in default. Proceedings may include, but are not limited to, reimbursement of the Sign Improvement Covenant amount from Participant equal to the sum of the following:

1. If the default occurs within year one of recording the Covenant, Participant will reimburse the City the full value of the Covenant approved; 2. If the default occurs within year two of recording the Covenant, Participant will reimburse the City two-thirds (2/3) of the value of the Covenant approved; 3. If the default occurs within year three of recording the Covenant, Participant will reimburse the City one-third (1/3) of the value of the approved. Page 6 ED Support Fund – Part II Sign Improvement Guidelines Revised March 10, 2016 Agenda Packet Page37

As an alternate matter of recourse, the City shall have the right to perform all acts necessary to cure any default and to receive from Participant the City’s costs in taking such action which includes the City’s right to enforce or establish a lien or other encumbrance against the Project Site.

IV. APPEALS PROCESS

A. Any Participant whose interest is adversely affected by any determination or requirement of the City may appeal in writing to the City Manager of the City of Citrus Heights requesting a review of the adverse action.

B. The appeal must be in writing and fully describe the specific circumstances to be reviewed and the determination, action, or policy in question.

C. The City Manager’s determination shall not violate the Programs Policy. The Manager’s determination shall be final and shall be transmitted in writing to the Participant no later than fourteen (14) days after submittal of the written appeal.

V. NON-DISCRIMINATION POLICY

VI. DEFINITIONS

The following definitions shall apply to this document unless another meaning is clearly apparent from the context.

APPLICANT shall mean either an owner or tenant of commercial property in the Eligible Project Areas.

CITY shall mean the City of Citrus Heights.

CITY MANAGER shall mean the City Manager for the City of Citrus Heights or their designee.

COMMUNITY & ECONOMIC DEVELOPMENT DIRECTOR shall mean the Community & Economic Development Director for the City of Citrus Heights or their designee.

ELIGIBLE IMPROVEMENTS shall mean signage improvements to commercial properties located within the Eligible Project Areas.

ELIGIBLE PROJECT AREAS shall mean those commercial properties located within the City of Citrus Heights.

Page 7 ED Support Fund – Part II Sign Improvement Guidelines Revised March 10, 2016 Agenda Packet Page38 PARTICIPANT shall mean the owner of commercial property within the Eligible Project Areas pursuant to Sacramento County records executing the Sign Improvement Covenant.

PROGRAM shall mean the Sign Improvement Program.

PROJECT SITE shall mean the location where the eligible improvements are to be constructed.

TENANT shall mean a person who rents or is otherwise in lawful possession of commercial property within the Eligible Project Areas, which is owned by another.

SIGN IMPROVEMENT COVENANT shall mean the document the Participant and City execute and record to secure the right by the City to enforce the terms and conditions of such document.

VII. SIGN IMPROVEMENT PROGRAM PROCEDURES

A. INITIAL APPLICATION

1. Applicant completes and submits the City’s application. along with the required $50 application fee. See “Fees,” Section II (A)(4).

1.2. Following review of the application and verification of available funding, City staff will contact Applicant to discuss the procedures of the Program and to schedule an on-site meeting to discuss the goals of the proposed project.

B. DESIGN DRAWINGS AND COST ESTIMATE

1. Following the on-site visit, Applicant will prepare a preliminary sign design of with an estimated budget for submittal to City for review.

2. City staff will review and approve Applicant’s preliminary design and calculate the value of the Sign Covenant.

3. Following City approval, Applicant will prepare final design drawings and cost estimate.

C. RECEIPT OF BIDS

Page 8 ED Support Fund – Part II Sign Improvement Guidelines Revised March 10, 2016 Agenda Packet Page39 1. Following the receipt of final design drawings, Applicant shall solicit bids from sign companies. The City requires the applicant get a minimum of three (3) bids.

D. CONSTRUCTION

1. Following City Approval, the Applicant must secure any and all permits which may be required by the City of Citrus Heights or any other governmental agency affected by such construction and shall schedule all required inspections which may be required by the City or any other governmental agency.

2. Applicant enters into agreement with the sign vendor for the completion of the specified eligible improvements. Applicant is solely responsible for the payment of services rendered on said project.

3. Applicant must complete the eligible improvements within six months of the application approval by the City unless otherwise approved in writing by the City.

E. EXECUTION OF SIGN IMPROVEMENT COVENANT

1. Once eligible improvements have been completed, Applicant is to submit associated receipts and/or invoices to the City showing that the contractor(s) have been paid in full.

2. After reviewing receipts and/or invoices for accuracy, City staff will inspect the improvements.

3. Upon verification that the eligible improvements have been completed according to the final design drawings, final budget and specifications, City staff will prepare the Covenant and contact the Participant for execution of the Covenant.

4. Within 10 days of recording the Covenant by the Participant the City will disburse funds to the Applicant.

F. COVENANT SERVICING

1. City staff will be responsible for:

 Maintaining Covenant records;  Monitoring Participant’s compliance with the conditions of the Sign Improvement Covenant, including annual maintenance inspections of the eligible improvements;  Overseeing any defaults involving the assisted project.

Page 9 ED Support Fund – Part II Sign Improvement Guidelines Revised March 10, 2016 Agenda Packet Page40 Item 9

Approved and Forwarded to City Council

______Fin. CITY OF CITRUS HEIGHTS

______Atty. Memorandum

March 10, 2016 Henry Tingle, City Manager

TO: Henry Tingle, City Manager

FROM: David Wheaton, General Services Director Mary Poole, Operations Manager

SUBJECT: Adoption of Resolution to Authorize the City of Citrus Heights to Apply for CalRecycle Payment Program Funding

Summary and Recommendation

CalRecycle, officially known as the Department of Resources Recycling and Recovery, administers the California Beverage Container Recycling and Litter Reduction Act. Beverage containers covered under the act are subject to California Redemption Value (CRV), which is five (5) cents for containers less than 24 ounces and ten (10) cents for containers 24 ounces or larger. These funds are deposited into the California Beverage Container Recycling Fund. Among other things, this fund supports beverage container recycling and litter cleanup activities undertaken by cities and counties through CalRecycle’s City-County Payment Program.

The goal of the City-County Payment Program is to reach and maintain an 80 percent recycling rate for all California Refund Value (CRV) beverage containers--aluminum, glass, plastic and bimetal. Projects implemented by cities and counties assist in reaching and maintaining this goal.

Funds from the current Payment Program support recycling education, outreach and activities throughout the City and region. Examples include the annual holiday recycling campaign conducted in partnership with the Regional Recycling Group, the Sayonara Center recycling education and art project, and trash-recycling containers in public places such as bus stops, City facilities and parks.

CalRecycle has advised local agencies to adopt a Resolution specific to CalRecycle’s Payment Programs (non-competitive funding opportunities) to be in compliance with Program requirements which will take effect for the FY 15-16 cycle. In previous cycles, there was no requirement for a City Council adopted resolution.

Staff is recommending the City Council adopt a resolution that will authorize the City to apply for all available Payment Program funds offered through CalRecycle for which the City is

Agenda Packet Page41 Subject: CalRecycle Payment Program Funding Resolution Date: March 10, 2016 Page 2 of 2 eligible. Staff is further recommending the resolution be effective until rescinded by the City Council, which is now an available option under the City-County Payment Program.

The attached Resolution provides the authority for the City to apply for all available Payment Program funding, authorizes the General Services Director to execute grant applications, agreements and requisite documents, and provides for the authority to remain in effect until rescinded by the City Council.

Fiscal Impact No negative fiscal impact. Successful applications will result in positive fiscal impacts of varying amounts.

Staff Recommendation: Staff recommends that the City Council adopt the Resolution to authorize the City of Citrus Heights to apply for and enter into agreements for all available CalRecycle Payment Program funds for which the City is eligible, and for the authorization to be in effect until rescinded by the City Council.

Attachment: (1) Resolution

Agenda Packet Page42

RESOLUTION NO. 2016 -

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS, CALIFORNIA, AUTHORIZING THE SUBMITTAL OF APPLICATIONS TO THE DEPARTMENT OF RESOURCES RECYCLING AND RECOVERY (CALRECYCLE) FOR ALL AVAILABLE PAYMENT PROGRAMS AND RELATED AUTHORIZATIONS

WHEREAS, pursuant to Public Resources Code section 48000 et seq., the Department of Resources Recycling and Recovery (CalRecycle) has established various payment programs to make payments to qualifying jurisdictions; and

WHEREAS, in furtherance of this authority CalRecycle is required to establish procedures governing the administration of the payment programs; and

WHEREAS, CalRecycle’s procedures for administering payment programs require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of the payment program; and

NOW, THEREFORE, BE IT RESOLVED that The City of Citrus Heights is authorized to submit applications to CalRecycle for any and all payment programs offered; and

BE IT FURTHER RESOLVED that the General Services Director or his/her designee, is hereby authorized as Signature Authority to execute all documents necessary to implement and secure payments; and

BE IT FURTHER RESOLVED that this authorization is effective until rescinded by the Signature Authority or this Governing Body.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 10th day of March, 2016, by the following vote, to wit:

AYES: NOES: ABSTAIN: ABSENT: ______Jeannie Bruins, MAYOR ATTEST:

Amy Van, CITY CLERK

Agenda Packet Page43 Item 10

Approved and Forwarded to City Council

______Fin. CITY OF CITRUS HEIGHTS

______Atty. Memorandum

March 10, 2016 Henry Tingle, City Manager

TO: Henry Tingle, City Manager

FROM: David Wheaton, General Services Director Mary Poole, Operations Manager

SUBJECT: Adoption of Resolution to Authorize the City of Citrus Heights to Apply for All Available Grants the City is Eligible for Offered by the Department of Resources Recycling and Recovery (CalRecycle)

Summary and Recommendation The City Council adopted Resolution 2008-103 on November 13, 2008 to authorize the City of Citrus Heights to apply for and enter into agreements for all available grants offered through the California Integrated Waste Management Board for the period of November 13, 2008 through November 13, 2013. The California Integrated Waste Management Board is now the Department of Resources Recycling and Recovery (CalRecycle).

The attached resolution provides authorization for a new five (5) year period for City applications for grant funding through the Department of Resources, Recycling and Recovery (CalRecycle) for which the City is eligible. The resolution further authorizes the General Services Director or his or her designee to execute grant agreements and requisite documents.

Fiscal Impact No negative fiscal impact. Successful grant applications will result in positive fiscal impacts of varying amounts.

Staff Recommendation: Staff recommends that the City Council adopt the Resolution to authorize the City of Citrus Heights to apply for and enter into agreements for all available grants offered through CalRecycle for the period of five (5) years from the date of adoption of the resolution.

Attachment: (1) Resolution

Agenda Packet Page44

RESOLUTION NO. 2016 -

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS, CALIFORNIA, AUTHORIZING THE SUBMITTAL OF APPLICATIONS FOR ALL CALRECYCLE GRANTS FOR WHICH THE CITY OF CITRUS HEIGHTS IS ELIGIBLE

WHEREAS, Public Resources Code sections 40000 et seq. authorize the Department of Resources Recycling and Recovery (CalRecycle) to administer various grant programs (grants) in furtherance of the State of California’s (state) efforts to reduce, recycle and reuse solid waste generated in the state thereby preserving landfill capacity and protecting public health and safety and the environment; and

WHEREAS, in furtherance of this authority CalRecycle is required to establish procedures governing the application, awarding, and management of the grants; and

WHEREAS, CalRecycle grant application procedures require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of CalRecycle grants.

NOW, THEREFORE, BE IT RESOLVED that the City of Citrus Heights authorizes the submittal of application(s) to CalRecycle for all grants for which the City of Citrus Heights is eligible; and

BE IT FURTHER RESOLVED that the General Services Director or his/her designee is hereby authorized and empowered to execute in the name of the City of Citrus Heights all grant documents, including but not limited to, applications, agreements, amendments and requests for payment, necessary to secure grant funds and implement the approved grant project; and

BE IT FURTHER RESOLVED that these authorizations are effective for five (5) years from the date of adoption of this resolution; and

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 10th day of January, 2016, by the following vote, to wit:

Agenda Packet Page45

AYES: NOES: ABSTAIN: ABSENT:

______Jeannie Bruins, MAYOR

ATTEST:

Amy Van, CITY CLERK

Agenda Packet Page46 Item 11

Approved and Forwarded to City Council CITY OF CITY OF CITRUS HEIGHTS ______Fin.

______Atty. Memorandum

Henry Tingle, City Manager

March 10, 2016

TO: Mayor and City Council Members Henry Tingle, City Manager

FROM: Rhonda Sherman, Community and Economic Development Director Colleen McDuffee, Planning Manager Casey Kempenaar, Senior Planner

SUBJECT: Auburn Boulevard Plan 2016 Update

Summary and Recommendation

On February 24, 2016, the Planning Commission unanimously recommended that the City Council adopt the changes to the Boulevard Plan.

Motion 1: The proposed changes to the Boulevard Plan are minor in nature and the previous adopted Environmental Impact Report is found to be sufficient. No additional environmental review is required.

Motion 2: Adopt Resolution No. 2016-___ approving the amendments to the Boulevard Plan attached to the Resolution.

Fiscal Impact

None.

Background

In February 2005, the City adopted the Boulevard Plan for Auburn Boulevard as a result of months of hearings and public workshops. The Boulevard Plan helped develop a long-term vision for the Boulevard and set the framework for the street improvements that have served as a catalyst for the street.

As a result of the Boulevard Plan, the City has invested a substantial amount of time and money into the streetscape on Auburn Boulevard. The Plan envisions new construction/infill

Agenda Packet Page47 Subject: Boulevard Plan Update 2016 Date: March 10, 2016 Page 2 of 3 redevelopment of parcels fronting Auburn Boulevard. The Boulevard Plan set a vision, but since that vision was established there has been a major downturn in the economy and loss of redevelopment, limiting the private investment within the Plan area.

The current market conditions do not lend to the new construction/redevelopment that is envisioned in the Plan. In order to encourage additional private investment into Auburn Boulevard the City is in the process of developing a program, “ACTivate Auburn”. This program is focused on decreasing vacancies, activating properties and building the Auburn Boulevard brand and identity in order to improve market conditions over time and eventually attract the type of development envisioned in the Plan.

In January 2016, the City Council held a study session to review the ACTivate Auburn framework and provide direction to staff to help initiate the program. City Council provided feedback and direction which resulted in the recommended modifications to the Boulevard Plan. The ACTivate Auburn program is intended to be a pilot project. The program, including changes to the Boulevard Plan, will be reevaluated in 18-24 months.

A description of the proposed amendments to the Boulevard Plan is found in the Planning Commission Staff Report (Attachment 1). The proposed changes include:

- Updates to the Land Use Table to provide more consistency between districts and encourage “active” uses - Changes to the Land Use Table to allow automotive uses in buildings that have a history of automotive uses - Changes to the parking regulations to allow flexibility in providing minimum parking requirements.

Exhibit A-1 is a copy of the proposed changes to the Boulevard Plan where you will find the affected pages with changes marked strikeout/underline/highlight format for ease of reading and reference. Attachment 2 is the existing Auburn Boulevard Plan (related pages).

Planning Commission Hearing

On February 24, 2016, the Planning Division presented the proposed Boulevard Plan changes to the Planning Commission at a public hearing. Staff responded to questions from the Planning Commission and the Planning Commission unanimously recommended approval to the City Council. The Planning Commission Staff Report has been included as Attachment 1.

Community Outreach Copies of these proposed changes to the Boulevard Plan were sent to each neighborhood association adjoining the plan area for review, Neighborhood Association #2 (Rusch Park) and Neighborhood Association #6 (Sunrise Ranch), as well as the Auburn Boulevard Business Association (ABBA) and the Citrus Heights Chamber of Commerce. Neighborhood Association #6 indicated via email that they had no concerns. The Citrus Heights Chamber of Commerce provided a letter that supports the proposed changes (Attachment 3). Staff presented the amendments to ABBA and ABBA is supportive of the proposed changes.

Agenda Packet Page48 Subject: Boulevard Plan Update 2016 Date: March 10, 2016 Page 3 of 3

Environmental Determination

An Environmental Impact Report was prepared and adopted in February 2005 that evaluated the Boulevard Plan. Proposed changes to the Boulevard Plan are minor in nature, therefore the previously adopted EIR is found to be sufficient and no additional environmental review is required.

Conclusion

The Planning Commission unanimously recommended that the City Council adopt the changes to the Boulevard Plan.

Motion 2: Adopt Resolution No. 2016-___ approving the amendments to the Boulevard Plan attached to the Resolution.

Exhibits

A. Resolution No. 2016-___ approving the amendments to the Boulevard Plan  Exhibit A-1 – Revised Boulevard Plan (Redline/Strikeout)

Attachments

1. Planning Commission staff report 2. Existing Boulevard Plan Pages 3. Chamber of Commerce Letter

Agenda Packet Page49 RESOLUTION 2016-______

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS ADOPTING AMENDMENTS TO THE AUBURN BOULEVARD PLAN – REINVENTING THE AUBURN BOULEVARD CORRIDOR

WHEREAS, the City of Citrus Heights adopted The Auburn Boulevard Plan – Reinventing the Auburn Boulevard Corridor in February 2005; and

WHEREAS, the City of Citrus Heights adopted the Environmental Impact Report for the Boulevard Plan in February 2005; and

WHEREAS, the changes to the Boulevard Plan are minor in nature, therefore the previously adopted EIR is found to be sufficient; and

WHEREAS, the proposed amendments are intended to eliminate vacancies and encourage private investment surrounding the Boulevard; and

WHEREAS, the City Council has reviewed the record of the action of the Planning Commission and recommendations to the City Council concerning the proposed amendments and wishes to support the proposal now under consideration.

NOW, THEREFORE, BE IT RESOLVED that the Citrus Heights City Council hereby finds as follows:

Findings for a Specific Plan Amendment:

1. The amendment is internally consistent with all other provisions of the Boulevard Plan.

2. The amendment is consistent with the General Plan.

3. The propose amendment will not be detrimental to public interest, health, safety, convenience or welfare of the City.

BE IT FURTHER RESOLVED that the Citrus Heights City Council hereby adopts the Boulevard Plan as amended (Exhibit A-1) as final.

IT IS HEREBY CERTIFIED that the foregoing Resolution No. 16- was duly introduced and legally adopted by the City Council of the City of Citrus Heights at its regular meeting held on this 10 day of March 2016, by the following roll call vote:

Agenda Packet Page50 AYES: NOES: ABSENT: ABSTAIN: ______Jeannie Bruins, Mayor

ATTEST:

Amy Van, City Clerk

CODIFY______UNCODIFY______

Attachment: Exhibit A-1 – Revised Boulevard Plan (Redline/Strikeout)

Agenda Packet Page51 Agenda Packet Page52 Agenda Packet Page53 Agenda Packet Page54 Agenda Packet Page55 Agenda Packet Page56 CITY OF CITRUS HEIGHTS PLANNING DIVISION STAFF REPORT PLANNING COMMISSION MEETING February 24, 2016

Casey Kempenaar, Senior Planner

Request

The City requests approval of a Specific Plan Amendment amending the Boulevard Plan to modify the Land Use Table and parking requirements as depicted in Exhibit A-1.

Applicant: City of Citrus Heights 7927 Auburn Blvd Citrus Heights, CA 95610

Site Location: Auburn Boulevard between northern City Limits and Sylvan Corners

File Number: SPA 16-01

Summary Recommendation

Staff recommends that the Planning Commission make the following motion:

MOTION: MOVE TO RECOMMEND THAT THE CITY COUNCIL ADOPT THE ATTACHED RESOLUTION APPROVING THE BOULEVARD PLAN AMENDMENTS AS SHOWN IN EXHIBIT A-1

Background

As a result of the Boulevard Plan, the City has invested a substantial amount of time and money into the streetscape on Auburn Boulevard. The Plan envisions new construction/infill redevelopment of parcels fronting Auburn Boulevard. The Boulevard Plan set a vision, but since that vision was established there has been a major downturn in the economy and loss of redevelopment, limiting the private investment within the Plan area.

Agenda Packet Page57 Boulevard Plan Update 2016 February 24, 2016 Page 2

program is intended to be a pilot project. The program, including changes to the Boulevard Plan, will be reevaluated in 18-24 months.

A description of the proposed amendments to the Boulevard Plan is found below. Exhibit A is a copy of the proposed changes to the Boulevard Plan where you will find the affected pages with changes marked strikeout/underline/highlight format for ease of reading and reference. Attachment 1 is the existing Auburn Boulevard Plan (related pages). The changes are also color coded as follows:  Blue/Underline – Inserted Text  Red/Strike Through – Deleted Text

Figure 3-4 Land Use Table (Pages 3-8 – 3-11)

The Land Use Table within the Boulevard Plan regulates what uses are permitted to occur within the Auburn Boulevard Planning Area. This table depicts whether each use is permitted, permitted with a Use Permit, permitted with a Minor Use Permit, or not permitted.

The Boulevard Plan is broken into 6 districts. The current land use table (Attachment 1) has a great deal of variability between what is allowed in each district. The proposed amendment provides more consistent permitting requirements between districts.

In addition, staff reviewed the land use table to evaluate opportunities to encourage new uses that will aid the City in its effort to eliminate vacancies and encourage active uses. As a result, the amendment includes reduction in permitting requirements for many uses. The recommendations strive to balance simplifying the process for active uses while maintaining some restrictions for uses that have the potential to create a negative impact.

For example, the Boulevard Plan currently requires a Minor Use Permit (MUP) for “Groceries, specialty foods”, an active use that the City would like to encourage to locate on Auburn Boulevard. As a result, the proposed amendment recommends changing the permitting requirements from a MUP to permitted (P) to simplify the process and reduce costs for those users.

Automotive Uses

Prior to incorporation, Auburn Boulevard saw a variety of new automotive based uses (sales, rental, repair, etc.) coming to the Boulevard. Shortly after incorporation, the City Council felt that Auburn Boulevard was heading in a direction that was different than what was envisioned. The Council was concerned with related noise and aesthetic impacts associated with the automotive uses.

As such, the City Council made changes to the Zoning Code that limited the ability of new automotive uses to occur on Auburn Boulevard. When the City adopted the Auburn Boulevard Plan, these restrictions were carried over into to the Boulevard Plan Land Use Table. With the exception of the Lincoln 40 district, no new automotive uses were permitted along Auburn Boulevard.

This approach has been successful in limiting the proliferation of new automotive based uses on Auburn Boulevard. Existing automotive uses that predate the Boulevard Plan are allowed to continue to operate indefinitely; however, if the automotive use has been discontinued for over a year, an automotive use is no longer allowed to occupy that site. This has occurred at a few locations along the Boulevard, resulting in buildings clearly designed for automotive uses (roll up garage doors, hydraulic lifts, tall ceilings, etc.) no longer able to be used for their intended purpose. In some cases these buildings have been repurposed; however, in a few cases this has led to long term vacancies along the Boulevard.

Agenda Packet Page58 Boulevard Plan Update 2016 February 24, 2016 Page 3

The City Council directed staff to develop a change that would help add flexibility to address this concern while ensuring new automotive uses are not being constructed. The proposed amendments are intended to allow existing buildings clearly intended for automotive uses to reopen as automotive uses if the user can clearly demonstrate that the site was previously used for a similar use.

Wholesaling and Distribution

The Boulevard Plan currently prohibits “Wholesaling and Distribution”. Wholesaling and Distribution is currently prohibited within the Boulevard Plan because these uses were not considered uses that would aid the City in achieving the vision of the Boulevard Plan.

Wholesaling and Distribution is defined as:

“An establishment engaged in selling merchandise to retailer; to contractors, industrial, commercial, institutional, farm, or professional business users; to other wholesalers; or acting as agents or brokers in buying merchandise for or selling merchandise to such persons or companies”

Although these uses are currently prohibited outright, a wholesaling and distribution use as an accessory use can be a complimentary use that still achieves the goals of the Boulevard Plan. For example, a retailer on Auburn Boulevard may also have a wholesale/distribution center outside of Citrus Heights and be interested in relocating the wholesale component to Auburn Boulevard. This use would be an accessory to the retail component and creating an opportunity to bring new employees to Auburn Boulevard. In addition it may create an opportunity for the owner to leverage financial resources to redevelop the existing retail use into a more vibrant space along Auburn Boulevard. As a result, staff recommends allowing Wholesaling and Distribution as an accessory use as shown in Exhibit A.

Parking Standards (Pages 3-19 – 3-20)

As discussed above, the intent of the proposed amendments is to introduce vibrant, active uses along the corridor to fill vacancies and move towards the Boulevard Plan’s vision. Currently, the boulevard is largely comprised of service uses or uses with low parking demand. As a result, many of the existing parcels have limited parking. Active uses envisioned by the Boulevard Plan generally require more parking than what is currently available for current (or vacant) service uses or warehouses.

The City Council provided direction to allow flexibility in parking requirements. The proposed amendments to the parking section of the Boulevard Plan are intended to facilitate and encourage the reuse of existing buildings. The proposed changes create a suite of parking reductions and provide additional flexibility for off-site parking. This additional flexibility would allow new uses to locate on Auburn Boulevard that may currently not be feasible due to their inability to comply with minimum parking requirements.

Parking Reductions

The proposed amendments include several expanded parking reduction options to help facilitate the reuse of existing buildings:

1. Transit Reduction – Auburn Boulevard is currently served by Regional Transit. The proposed amendments would allow for a five percent parking reduction for those users located within ¼ mile of a transit stop.

Agenda Packet Page59 Boulevard Plan Update 2016 February 24, 2016 Page 4

2. Active Use Reduction – In order to encourage uses that are active in nature, the proposed amendments would allow for a five percent parking reduction for users that are considered active in nature by providing outdoor seating, storefront windows, or provide attractive outdoor displays as guided by the City’s forthcoming retail assistance program.

3. On-street Parking – On-street parking is prohibited on Auburn Boulevard, however it is permitted along side streets which intersect Auburn Boulevard. The proposed changes would allow businesses fronting side streets to count on-street parking along the side streets towards the minimum parking requirements.

Off-site parking

The Boulevard Plan and the Zoning Code currently allow off-site parking if it is located within 300 linear feet of the proposed user. The proposed amendments would allow off-site parking to be located up to ¼ mile away (1,320 linear feet). Staff believes a ¼ mile is a walkable distance and may be most suitable for employee parking.

The City Council expressed concerns that users of off-site parking ¼ mile away and located on the opposite side of the Boulevard may not cross at a legal crosswalk, creating a potential safety issue. As a result, the proposed amendment includes criteria that a legal crossing must be located within 300 linear feet of the proposed use.

Environmental Determination

An Environmental Impact Report was prepared and adopted in February 2005 that evaluated the Boulevard Plan. The proposed changes to the Boulevard Plan are minor in nature, therefore the previously adopted EIR is found to be sufficient.

Community Outreach

Copies of these proposed changes to the Boulevard Plan were sent to each neighborhood association adjoining the plan area for review, Neighborhood Association #2 (Rusch Park) and Neighborhood Association #6 (Sunrise Ranch), as well as the Auburn Boulevard Business Association (ABBA). At the time of the writing of this report staff has not received any comments from either Neighborhood Association. Staff presented the amendments to ABBA and ABBA is supportive of the proposed changes.

Summary/Recommended Action

MOTION: MOVE TO RECOMMEND THAT THE CITY COUNCIL ADOPT THE ATTACHED RESOLUTION APPROVING THE BOULEVARD PLAN AMENDMENTS AS SHOWN IN EXHIBIT A-1

Agenda Packet Page60 Boulevard Plan Update 2016 February 24, 2016 Page 5

Exhibits:

A. Resolution  A-1 - Boulevard Plan with Edits (Modified Pages Only) Attachments:

1. Existing Boulevard Plan Pages

Agenda Packet Page61 Agenda Packet Page62 /Brew pub

Agenda Packet Page63 Agenda Packet Page64 The Boulevard Plan

• Provide enhanced bus turnouts and bus shelters at the major trip genera- Benefits of Bus Turn-outs: tors (i.e., the proposed Gateway Commercial Center and Rusch Park • Reduces bus and automobile Village Center). conflicts • Provides more comfort and safe- Parking ty for transit riders • Increases transit ridership One of the objectives of The Boulevard Plan is to change the relationship between transportation patterns and development standards along the Auburn Boulevard corridor. Requiring high amounts of on-site parking can result in excessive paving, increase housing and development costs, and produce an oversupply of parking spaces that can go unused for much of the year. The parking standards in this Plan allow for greater flexibility in the provision of parking and reduce the negative impacts of excessive parking. Where this Plan is silent, the parking standards in the Citrus Heights Zoning Ordinance shall apply.

• Provide opportunities for shared-use parking agreements between adjacent parcels when cross access easements are used and driveways are closed or when office buildings are located adjacent to entertainment-oriented uses (e.g., cinema, restaurants). Allow with a minor parking permit, a parking reduction of 25 percent to reflect uses that have complementary demand patterns. • Provide opportunities for on-street parking on interior commercial streets in the Rusch Park Village Center and Gateway Commercial Center. • Prohibit on-street parking on Auburn Boulevard. • Require wheel stops to prevent overhang of parked vehicles that may encroach into the sidewalk or planting strip. • Require employee parking to the rear of businesses, where feasible, to provide adequate parking for patrons and visitors. • Require pedestrian walkways within parking lots (down middle of parking field) plus crosswalks for larger commercial lots (e.g., within Rusch Park Village Center or Gateway Commercial Center). • Encourage parking layouts that facilitate egress onto side streets where appropriate instead of on to Auburn Boulevard. • Allow up to a 15 percent reduction in parking standards for uses that provide transit support facilities such as bike lockers, shower facilities, etc. • Allow on-street guest parking for multi-family residential areas in the Rusch Park Village Center. • For small lot parcels, allow the following exceptions to the parking stan- Above: dards in the Zoning Ordinance: As a multi-modal corridor, the -Allow up to 50 percent of all parking to consist of compact parking stalls Boulevard Plan includes incentives for (eight foot width and 16 foot length). using transit. Parking for commercial -Utilize angled parking stalls with one-way drive aisles in lieu of 90- and residential uses can be reduced if degree spaces where appropriate. a demand reduction program is instituted for the development. -Encourage cross-parcel access easements to minimize driveway open- ings and increase parking on-site. -Reduce planter width from six feet to four feet to increase on-site parking. -Require a minimum parking aisle width of 18 feet for turn-around space for small lots. -Allow street frontage landscape to count for a portion of the required on-site landscaping. page 3-19 Agenda Packet Page65 Agenda Packet Page66 Item 12

Approved and Forwarded to City Council

______Fin. CITY OF CITRUS HEIGHTS

______Atty.

Memorandum

Henry Tingle, City Manager March 10, 2016

TO: Mayor and City Council Members Henry Tingle, City Manager

FROM: Nick Lagura, Associate Planner Rhonda Sherman, Community and Economic Development Dept. Director

SUBJECT: Green Education Foundation Fee Waiver Request

Summary and Recommendations The Green Education Foundation (GEF) requests a fee waiver of $3,396 to process a Minor User Permit for an unmanned, donation collection facility at 7847 Lichen Drive. The Zoning Code requires a Minor Use Permit to operate a small collection facility at the proposed site.

Should Council approve the requested fee waiver, staff recommends Council direct Planning staff accept a Minor Use Permit application from GEF without an application fee.

Background/Discussion GEF is a national non-profit organization providing free, educational materials and programs to schools, k-12 students and teachers. GEF’s goal is to create a more sustainable future through education.

GEF’s green education programs are funded by fundraising efforts including their unmanned, donation collection sites (used clothes, shoes, book, DVDs and etc.). GEF uses recycled shipping containers which are outfitted with secured intake doors to receive donations and to prevent unauthorized removal of donated materials. Additionally each container comes with a surveillance camera for added security.

The donation collection facility is currently on the property without benefit of permits (Minor Use Permit and Building/Electrical Permit). In a letter dated December 15, 2015, Planning staff notified GEF on the City’s permitting requirement and that GEF was violating the Zoning Code by placing the facility onsite without first obtaining a Minor User Permit.

Included in the staff report is GEF’s request for a fee waiver (Attachment 1). In the letter, GEF describes their fundraising efforts as well as indicates how money paid to secure permits would

Agenda Packet Page67 Subject: Green Education Foundation Fee Waiver Request Date: March 10, 2016 Page 2 take away funds to pay for GEF’s green education efforts. Additionally, staff has included in the report Section 106.60.050 of the Zoning Code which grants Council discretion to waive any planning fees (Attachment 2).

There are other donation collection facilities in the City. Gaia Movement USA, a non-profit organization, operates three unmanned, donation collection sites in the City. All three facilities are permitted which are located at the following addresses: 7010 and 7920 Auburn Boulevard and 7672 Greenback Lane. Staff should also mention Gaia Movement USA paid the application fee when it applied for a Minor Use Permit for each site.

Planning staff will work with GEF to ensure the facility complies with the Zoning Code. In the meantime GEF cannot operate the facility and must remove it from the site until GEF first obtains all required permits including a building permit for any electrical connections to the facility.

Conclusion As noted above the Zoning Code gives Council discretion to waive any planning fees. Staff has presented Council with GEF’s request and information on existing donation collection facilities in the City operated by a non-profit organization. If Council approves the requested fee waiver, staff recommends Council direct Planning staff to accept a Minor Use Permit application from GEF without the required application fee.

Attachments: 1. GEF Letter Requesting Fee Waiver 2. Section 106.60.50 of the Zoning Code 3. Pictures of donation collection facility currently at 7847 Lichen Drive

Agenda Packet Page68 Attachment 1

Agenda Packet Page69 Agenda Packet Page70 Agenda Packet Page71 Attachment 2 CITY OF CITRUS HEIGHTS MUNICIPAL CODE -TITLE 106 - ZONING CODE

Permit Application Filing and Processing 106.60.050

TABLE 6-1 - REVIEW AUTHORITY - Continued

Role of Review Authority (1) Procedure is in Chapter Planning City Type of Decision or Section: Director Commission Council

Planning Permit/Development Approval - Continued

Temporary Use Permit 106.62.030 Decision Appeal Appeal

Itinerant Vendor Permit 106.62.070 Decision Appeal Appeal 106.62.080 Recommend Decision Appeal Exception to Sign Regulations

Subdivisions

Tentative Map Subdivision Recommend Decision Appeal Ordinance

Notes: (1) "Recommend" means that the review authority makes a recommendation to a higher decision-making body; "Decision" means that the review authority makes the final decision on the matter; "Appeal" means that the review authority may consider and decide upon appeals to the decision of an earlier decision-making body, in compliance with Chapter 106.72 (Appeals). (2) Director may defer action and refer the request to the Commission, so that the Commission may instead make the decision.

106.60.050 - Application Fees 106.60.050

A. Fee schedule. The Council shall establish a schedule of fees for the processing of the applications required by this Zoning Code, hereafter referred to as the City's Fee Schedule, to defray the expenses incurred by the City in the processing of the planning permit applications established by this Article, and other matters relating to this Zoning Code.

1. Unusually large or complex projects may be subject to an hourly rate in addition to the basic application fees, at the discretion of the Director.

2. In addition to all required application fees, an applicant shall fully reimburse the City for all costs incurred by the City for the completion of any special study determined by the Director to be necessary in the evaluation of the project application (e.g. traffic, noise, cultural resources, etc.).

B. Timing of payment. No application shall be deemed complete, and processing shall not commence on any application until all required fees/deposits have been paid.

C. Refunds and withdrawals. The required application fees cover City costs for public hearings, mailings, staff time, and the other activities involved in processing applications. Therefore, no refund due to a disapproval shall be allowed. In the case of a withdrawal, the Director shall have the discretion to authorize a partial refund based upon the pro-rated costs to-date and the status of the application at the time of withdrawal.

D. Waiver of fees. The Council may waive any fee, charge or expense as to any applicant or petitioner for a Use Permit, Variance or other permit, or amendment to this Code. No fee will be required or charged to persons whose properties are the subject of a rezoning initiated by the City.

Article 6 - Planning Permit Procedures 6-6 Agenda Packet Page72 Attachment 3

Agenda Packet Page73 Item 13

Approved and Forwarded to City Council

______Fin. CITY OF CITRUS HEIGHTS

______Atty. Memorandum

March 10, 2016 Henry Tingle, City Manager

TO: Henry Tingle, City Manager

FROM: David Wheaton, General Services Director Mary Poole, Operations Manager

SUBJECT: Residential Solid Waste and Recycling Collection Services - Republic Services Contract Amendment

Summary and Recommendation The current Residential Solid Waste and Recycling Services Agreement terminates December 31, 2017 with an option to renegotiate the terms of the Agreement. At this point in the contract term, there is a need to determine whether to begin a procurement process, which could take up to a year or more, or negotiate an extension. Over the past several months, staff has evaluated pros and cons of initiating a procurement process for residential garbage and recycling collection service. Included in the analysis were an evaluation of the current regional rate climate, consultant costs, staff resources needed, length and amount of time involved in administrating a procurement process, recognition that the competitive market has not significantly changed since the current contract was executed in 2011, and an exploration of what benefits could be achieved through a negotiated amendment with Republic Services.

As part of this process, staff worked diligently with Republic Services to develop a proposed set of terms to amend and extend the current agreement with the primary intention of maintaining lower rates. The result is an amended agreement that maintains customer rates at or below 2010 levels through 2019; maintains low rates and ensures rate stability through 2027; addresses needed education and outreach expansion; supports diversion goals; recognizes potential changes in legislation; anticipates higher diversion requirements by CalRecycle; and provides a number of added value services to the community. Enhanced education and outreach activities, expanded programs and services, as well as added value components would be effective as of date of execution. The rate structure approved under the current agreement would remain in effect until commencement of the term extension, whereupon the first two years, 2018 and 2019, will have no rate increase.

Staff met with members of the Finance Committee on December 1, 2015 and received direction to come forward to the full City Council with the terms of the proposed amendment. The attached Amended Agreement has incorporated the proposed terms and updated the Agreement to be consistent with current definitions, service levels and field operations.

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Staff is recommending the City Council Adopt the Resolution Approving the Amended Agreement and authorizing the City Manager to execute the Amendment.

Fiscal Impact The Amended Agreement allows the City to keep rates low for residents and achieve modest increases in the franchise fee in the latter part of the extension. The proposed amendment includes an increase from the current Franchise Fee rate of 7% to 8% in 2021 and to 10% in 2025.

Background and Analysis There is a need for City Council direction on whether or not to initiate a procurement process for residential garbage and recycling collection service. The current agreement is set to expire on December 31, 2017 unless an extension or amendment is negotiated between the parties. Should the City wish to initiate a procurement process, the City will need to solicit proposals for consultant services in early 2016.

The approximately two-year procurement process includes significant expense and staff time commitment. The City conducted a procurement process in 2004 at the initial expense of approximately $148,000 in consultant fees, plus extensive staff time. The transition to then BFI Waste Services from Sacramento County carried an additional consultant price tag of approximately $116,500 plus extensive staff time (over 10 years ago). Thus, approximately $264,500 in consultant costs were incurred throughout the RFP and transition process.

Types of task items a procurement process includes, but are not limited to, evaluation and updating of the services agreement, updating of any ordinance requirements, development and administration of the Request For Proposal (RFP), conducting a pre-qualification process, administration of anti-collusion assurances, pre-proposal sessions with prospective haulers, responding to Requests for Information (RFIs), comprehensive evaluation of respondents’ proposals, development of recommendations and presentation to the City Council for award considerations.

If a new service provider is selected, the City can expect transition expenses for items such as ensuring appropriate vehicle and cart inventory, review and audit of proposed collection route maps, audit of equipment inventory, licensing and testing protocols, public education and outreach planning and implementation, coordination of billing and account transition, and instituting procedures to ensure compliance with AB939 and related laws and regulations. The staff resources, time and expense associated with a procurement and transition process are significant.

The City conducted an extensive procurement process in 2004 with one responsive proposer, and underwent a thorough and transparent exploration of potential alternative service providers in 2010 resulting in a new agreement with the current service provider. The 2010 process included a Request for Statement of Interest (RSI) and required respondents to demonstrate the ability to

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deliver high quality, experienced, responsive and low-cost residential garbage collection and recycling services. Of the two (2) respondents (Atlas and GreenWaste Recovery, Inc.), neither one had local residential experience as a company.

Since the 2010 process, the field of prospective proposers does not appear to have broadened, based on staff understanding of the current market. Because there is a strong possibility of the same proposers participating in an RFP process as those who participated in the 2010 RSI process, it looks to be a prudent course of action to proceed with an extension to the current service agreement. The opportunity to negotiate an amendment to extend the Agreement is identified as an option within the current contract. If it is determined to move forward with the Amended Agreement, the enhanced services and program benefits will begin upon its execution, versus waiting two years for a new agreement to commence.

As part of the analysis to determine whether or not to recommend to recommend a negotiated Amendment, staff has been working with Republic Services to develop mutually acceptable terms to include in the Amended Agreement. The main tenets of the terms are to maintain rate stability, continue to improve education and outreach, replace all current collection vehicle fleet with clean compressed natural gas (CNG) vehicles by 2018, and ensure City compliance with current and future State recycling/diversion requirements.

The following discussion sets forth key components of the proposed amendment.

1) Rate Stabilization: The current contract (expires December 31, 2017) results in a net rate decrease at the end of the term. The proposed agreement maintains rate stability with no increases in years 1 and 2 (2018-2019) of the extension. Modest maximum rate adjustments are proposed in years 3-10 using a water-sewer-trash CPI as a factor in determining rate adjustments each year. Thus, through 2019, residential rates will remain at or below 2010 levels. From 2020-2027, rates will be maintained with modest, capped annual increases at a maximum of 3.5% and a floor of 1.75%.

Residential Rate Impacts The proposed rate structure provides cost savings and rate stabilization over the new 10-year term of the agreement. Specifically, customer rates will be managed as follows:

 2018 - NO increase - rates lower than in 2010  2019 - NO increase – rates lower than in 2010  2020 - CPI maximum increase 3.5%; minimum increase 1.75%  2021 - CPI maximum increase 3.5%; minimum increase 1.75%  2022 - CPI maximum increase 3.5%; minimum increase 1.75%  2023 - CPI maximum increase 3.5%; minimum increase 1.75%  2024 - CPI maximum increase 3.5%; minimum increase 1.75%  2025 - CPI maximum increase 3.5%; minimum increase 1.75%  2026 - CPI maximum increase 3.5%; minimum increase 1.75%  2027 - CPI maximum increase 3.5%; minimum increase 1.75%

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By the end of the term extension in 2027, residential rates will have been maintained at modest increases based on CPI data as a baseline factor in determining setting each annual adjustment rate. The Maximum Range Impact Table below demonstrates maximum rates for the life of the Amended Agreement.

Maximum Rate Impact Table: 2017-2027

Term Extension Starts - New Rate Schedule

Begins January 1, 2018 and ends December 31, 2027 Rate adj. 3% max under current contract NO INCREASE MINIMUM 1.75% INCREASE – Basic Service rates lower MAXIMUM 3.5% INCREASE PER YEAR Rates than 2010

2016 Rates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 rate Cart Size (2.515% Base Base Base Base Base Base Base Base Base Base Base range increase) Rates Rates Rates Rates Rates Rates Rates Rates Rates Rates Rates

32 Gallon Max $19.28 $19.28 $19.28 $19.96 $20.65 $21.38 $22.13 $22.90 $23.70 $24.53 $25.39 (18% of $18.72 current cust.) Min $19.09 $19.09 $19.09 $19.43 $19.77 $20.11 $20.47 $20.82 $21.19 $21.56 $21.94

64 Gallon Max $21.40 $21.40 $21.40 $22.15 $22.93 $23.73 $24.56 $25.42 $26.31 $27.23 $28.18 (72% of $20.78 current Min $21.20 $21.20 $21.20 $21.57 $21.94 $22.33 $22.72 $23.12 $23.52 $23.93 $24.35 customers)

96 Gallon Max $26.63 $26.63 $26.63 $27.56 $28.52 $29.52 $30.55 $31.62 $32.73 $33.88 $35.06 (10% of $25.85 current cust.) Min $26.37 $26.37 $26.37 $26.83 $27.30 $27.78 $28.26 $28.76 $29.26 $29.77 $30.29

History of Rate Stabilization with Republic Services

It is significant to note the history of negotiated rate adjustments over the course of contracting history with Republic Services, Allied Waste, and BFI. In 2004, the City issued an RFP for residential waste and recycling collection services concurrently with the City of Rancho Cordova. The City received one response (from BFI) and Rancho Cordova received a proposal from BFI and one from Sacramento County. The proposed rates from the County were significantly higher than what BFI proposed. The City and Rancho Cordova both selected BFI as

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the preferred service provider. During the term of the agreement with BFI/Allied Waste, the Residential Rate Index used for determining rate adjustments soared as high as 7.7%. Allied worked with the City to spread the rate increase over multiple years to avoid high rate increases for customers and/or a higher City subsidy.

In 2010, the City had to decide whether to initiate a procurement process again. As part of the analysis and recommendation, a 2010 Request for Statement of Interest (RSI) process was conducted. The RSI exercise resulted in a transparent and time-consuming process to test the market for prospective qualified competition. At the same time, Republic Services (then Allied Waste) negotiated in good faith with the City, presenting an expanded services package and a rate schedule that resulted in no increase in year one of the agreement and decreased customer costs by 5% each year for 2 consecutive years after that. Modest, capped increases through the end of the term mean that at the end of 2017, customers will still be paying less than they were in 2010.

Citrus Heights customer rates from Republic Services have continued to be below those of the County in general and are lower than most, if not all, other local agencies (Exhibit B is a 2015 Table of Regional Rate Comparisons).

Besides the lowest rates in the Sacramento area (based on 2016 comparable service levels at the 60-65 gallon garbage cart size), it is also key to consider the consistently responsive customer service provided by drivers and customer service staff since the original service agreement in 2005. Another critical consideration is the additional FREE services provided (curbside battery and used oil/filter collection, appointment-based sharps collection, school recycling education, targeted education and outreach programs, etc.), further expanding value to the overall customer service package.

2) Franchise Fee Update: The current agreement imposes a 7% franchise fee for the collections services agreement. The proposed agreement includes stepped increases in the franchise fee over the life of the extension, starting with 8% in years 4-7 (2021-2024) and 10% in years 8-10 (2025-2027). This schedule will bring the Franchise Fee up to the low end of today’s standard franchise fees in the region, which typically range between 10% in the Sacramento region up to 15% in Yolo County cities (March 2015 survey).

3) Collection Vehicles: The current agreement requires Republic Services to replace all vehicles over 10 years or 250,000 miles. Just over half of the Citrus Heights fleet will be due for replacement in 2016. City staff and Republic are proposing to wait until 2017 to change out the fleet, and then convert the entire fleet to Compressed Natural Gas (CNG) in the first two years of the extension. One half of the trucks will be replaced in 2017 and the remainder in 2018. This means Republic Services will be serving City residents using a brand new fleet of clean air vehicles by December 31, 2018. The use of CNG vehicles supports goals and objectives in the City’s Greenhouse Gas Reduction Plan (GGRP).

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4) Household Hazardous Waste (HHW) Events: The current structure of the HHW drop off events includes three drop off events per year. The events have typically taken place every 4 months, in February, June and October. The February event historically has the least amount of participants, ranging from 238 in 2014 to a high of 360 in 2015. Republic is trying an April date in 2016 instead of February and potentially eliminating one of the drop-off events in 2017, conducting increased outreach and education for the remaining two events. Republic and City staff are evaluating the program to develop recommendations for future years.

A comparison of the last few years shows that participation in general, has stayed fairly constant.

2014: 1380 2014 2015 February June October February June October 2015: 1394 238 400 742 360 702 332

NOTE: The high volumes in October 2014 and June 2015 are likely due to the direct mailer (2014) and door-hanger (2015).

5) Enhanced Services: The proposed extension includes additional services along with more robust education and outreach efforts to support increased source reduction, reuse, recycling and diversion goals and ensure compliance with State regulations. a. Curbside Collection Programs: Residents will continue to receive the curbside batteries, sharps and used oil/filter collection services and Republic will ramp up outreach and education to make sure residents are aware of these programs. b. Additional Leaf Collection: Residents will be able to set out up to six 30-gallon bags of leaves during leaf drop months (usually November – January) for complimentary collection. The current agreement allows up to two bags to be set out on Green Waste collection day and $2.83 per bag is charged after the 2 free courtesy bags (no more than six bags total). c. Additional Illegal Dump/Community Cleanup Credit: The proposed extension adds 100 cubic yards to result in a capacity for up to 600 cubic yards of illegal dumps and/or community cleanups each calendar year. d. Free Compost and Compost Education: Republic commits to provision of free compost for residential use at a location mutually agreed upon in or near the City, easily accessible to Citrus Heights residents. Additionally, Republic will offer Citrus Heights residents up to 3 yards of compost per year to be picked up at the Elder Creek Transfer Station. e. City Facilities: The proposed extension expands service to City facilities to ALL City facilities, with no limit on service levels, frequencies or locations. Republic

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staff will also provide recycling training, education and equipment to ensure all City staff and volunteers are actively engaged in source reduction, reuse and recycling. This will enable all staff and volunteers to provide leadership to each other and the community as well as supporting City compliance with the State and City recycling requirements.

6) Enhanced Customer Outreach, Education and Recognition: Republic proposes several enhancements to its education and outreach efforts. a. Republic staff will expand the highly successful “3R” education program to all interested Citrus Heights schools (public and private). The “3R” program targets first – third grade students, engaging them in interactive recycling exercises that have been developed to achieve curriculum requirements. b. Republic Services will sponsor three $1,000 scholarships on an annual basis for Citrus Heights high school seniors interested in sustainability education. c. Republic Services will support Citrus Heights schools in developing, implementing and maintaining sustainable recycling programs. These efforts will be outlined and mutually agreed upon on an annual basis. d. Republic Services will collaborate with City staff and provide content for City- sponsored education media (paper, electronic, website, social media, etc.) and provide education regarding programs and services to a minimum of ten community organizations and/or community events and public venues as mutually agreed upon during the annual planning process. e. Organics Recycling: Republic Services will incorporate pilot organics recycling and/or additional composting education into the annual education plan each year. f. Performance Monitoring: Republic will conduct an annual customer satisfaction survey via the REACH Neighborhood Associations and/or other residential community groups. g. Two Additional Programs: Republic will work with City staff to develop additional programs as requested. Programs may include: Reuse round-up, poster contest, food waste programs, or other programs as mutually agreed upon and updated as part of the annual programming process.

Please see Exhibit A, a table comparing services and benefits in the current agreement to the proposed extension.

7) Added Value Items: As added value to the amended service agreement, Republic Services will provide dead wildlife pick up service from City Right-Of-Way within one business day of City request. Republic Services will also provide two new utility services vehicles of the City’s choosing over the life of the agreement. The vehicle specifications will be provided by the City and Republic Services will purchase and maintain the

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vehicles throughout the agreement term. The vehicles will be owned by the City and all maintenance provided by Republic Services.

8) Local Processing: Republic will continue to use the Elder Creek Transfer Station in Sacramento County and Forward Landfill in Stockton for waste disposal. Recyclables will continue to be processed through the Newbie Island facility in Milpitas. Items that are not collected separately in Neighborhood Clean Up (appliances, tires, e-waste and bulky green waste/wood, etc.) program will be processed locally, using Solid Waste Authority (SWA) certified sorting facilities.

9) Term: 10 Year Extension with Service Improvements and Benefits Effective Date of Execution Date

The current contract term is January 1, 2011 through December 31, 2017 with an option to negotiate an extension. The new contract extension term and rates will go into effect January 1, 2018 and expire on December 31, 2027. The current rate structure will remain in effect until January 1, 2018 when the “extension” begins, but all service improvements and benefits will begin immediately upon execution of the amendment.

Thus, if the Amended Agreement is awarded as proposed, the timeline for rollout of improvements and enhanced benefits is as follows:

 Date of Approval through December 31, 2017 (remaining time on current agreement): All proposed improved services to start upon approval of extension, approximately two years prior to current term end;

 January 1, 2018: Ten-year extension commences. All service improvements, benefits, new programs and new CNG fleet will be already fully intact and completely integrated at start of term extension. First year of no rate increase begins; and

 December 31, 2027: End of amended contract term.

In summary, the proposed Amended Agreement supports City’s goals to maintain low residential rates, update the franchise fee rate, expand education and outreach, maintain and increase diversion rates, support the City’s Greenhouse Gas Reduction Plan (GGRP), ensure compliance with State diversion and recycling requirements, and provide continuity and expansion of services consistently rated highly by residents.

Conclusion and Staff Recommendation Staff and Republic Services representatives have worked diligently and in good faith over the past several months to develop a contract structure that meets the following key City objectives for its residential waste collection and recycling service and related programs: rate stabilization; maintenance and expansion of key services; clean fuel vehicles; provision of convenient, accessible and local Household Hazardous Waste (HHW) collection events; continued

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improvements to customer education and outreach; compliance with current and future State recycling and diversion requirements, and continuity of exemplary customer service standards and performance.

The proposed changes will result in a ten-year extension to the current agreement that meets City objectives and starts delivering benefits approximately two years prior to the end of the current agreement. In addition, extensive time and expense of a procurement process will be avoided and new programs can be vetted prior to the next procurement. Finally, the contract amendment process allows for cleanup of minor items in the contract and clarification of expectations for accountability and administrative oversight.

In conclusion, staff recommends the City Council Adopt the Resolution approving the Amended Agreement and authorizing the City Manager to execute the Agreement.

Attachments: Resolution Exhibit A – Services Comparison Exhibit B – Regional Rate Comparison Exhibit C – Utility Rate Increase Comparison Exhibit D – Amendment

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RESOLUTION NO. 2016 -

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS, CALIFORNIA, APPROVING THE 2016 AMENDED AGREEMENT WITH REPUBLIC SERVICES, INC FOR THE PROVISION OF RESIDENTIAL GARBAGE AND RECYCLING SERVICES AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AMENDED AGREEMENT

WHEREAS, the City of Citrus Heights entered into a residential refuse and recycling collection services agreement (Collection Services Agreement) with BFI Waste Systems of North America, Inc. (BFINA) on September 8, 2004; and

WHEREAS, the City of Citrus Heights executed a Form of Assignment Letter with Allied Waste Systems of North America (Allied) December 8, 2005; and

WHEREAS; the term of the original Agreement was for a seven (7) year period beginning on January 1, 2006 to December 31, 2012 with the option for a three (3) year extension at the City’s discretion; and WHEREAS, the City of Citrus Heights executed an Amendment related to the bulky waste collection program on August 1, 2006; and

WHEREAS, the City and Allied Waste executed an amended agreement effective January 1, 2011 through December 31, 2017 with an option to negotiate an extension or initiate a procurement process toward the end of the term; and

WHEREAS, Allied Waste became a subsidiary of Republic Services in 2008; and

WHEREAS, City staff and Republic Services worked diligently and in good faith to negotiate an amended agreement allowing for continued rate stabilization, additional and improved services, and a term extension through December 31, 2027; and

WHEREAS, Republic Services provided City with a summary of the terms of the amendment; and

WHEREAS, the City of Citrus Heights desires to accept the proposed terms for an Amendment to allow for rate stabilization, additional education, outreach, improved services, and an extension of the Agreement term; and

NOW THEREFORE BE IT RESOLVED AND ORDERED that the City of Citrus Heights City Council does declare as follows:

A) The Agreement for residential garbage and recycling collection services is approved; and

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B) The City Manager is authorized to execute the Amended Agreement.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 10th day of March, 2016, by the following vote, to wit:

AYES: NOES: ABSTAIN: ABSENT: ______Jeannie Bruins, MAYOR

ATTEST:

Amy Van, CITY CLERK

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EXHIBIT A Comparison of Current Versus Proposed Agreement

Subject Current Proposed Benefit Negotiated Extension with increases capped Benefits start at 3.5%; meet and immediately; cost Rates at less than or confer on any new savings from no RFP; Rate Stabilization equal to 2010 level regional or state fees no service disruption Increases FF to Increase to current industry Franchise Fee 7% 10% by 2025 standards Contract Term Ends Benefits start 12.31.2017 – allows immediately; cost for negotiation or savings from no RFP; Contract Term RFP Extend for 10 years no service disruption Supports City’s Convert entire fleet to Greenhouse Gas Vehicles to be Compressed Natural Reduction Plan replaced at 10 years Gas (CNG) by 2018 (GGRP) goals (versus Vehicle Replacement or 250,000 miles (50% each year) non-CNG upgrades) Picked up on Mixed Recycling (MR) service days; replacement Maintain service; Supports lower HHW Curbside Used Motor containers and filter increase outreach and collection costs; Oil and Filter Collection bags provided advertising increases diversion

Maintain service; Supports lower HHW Curbside Battery Picked up on MR increase outreach and collection costs; Collection service day advertising increases diversion

Picked up at door Supports lower HHW step; replacement Maintain service; collection costs; Appointment-based containers left while increase outreach and increases diversion; Sharps Collection supplies available advertising customer convenience Up to 2 bags free at Increase number of side of Green Waste bags to 6; increase (GW) cart on GW outreach and Additional service at Leaf Drop Service days advertising no additional charge

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Subject Current Proposed Benefit Additional compost Free compost available education supports at mutually agreed diversion goals; free location; up to 3 yards compost benefits Free Compost and available from Elder landscaping, gardens Compost Workshops Workshops only. Creek and saves water Organics recycling will be required from Pilot Organics commercial Recycling Program generators in 2016; Pilot Organics included in annual pilot supports Recycling Program None education/outreach plan diversion goals Annual survey via the Provides valuable Customer Satisfaction Neighborhood feedback and Survey None Associations accountability Improved City compliance with Annual training for Mandatory staff; organics recycling Commercial City Hall Recycling None program Recycling (MCR) Two Additional Programs of City Increased education Additional Programs None choice annually and diversion Supports Greenhouse Gas Reduction Plan Local sorting at (GGRP) goals; Neighborhood Clean certified Solid Waste increases diversion Up (NCU/Bulky Clean No designated sorting Authority (SWA) rate for bulky clean Up) facility sorting facilities ups Illegal Dump/Community Up to 500 cubic Additional clean up Clean Ups yards 600 cubic yards services ADDED VALUE SERVICES Specified Service All City Facilities; no Improved Recycling City Facility Recycling Levels service level limits and Diversion Removes dead Pick up dead wildlife wildlife faster; frees Dead Wildlife Pick Up None on roadway up GSD/AC resources New utility vehicles for fleet which can be Provides 2 Trucks and converted to other Utility Trucks None associated maintenance utility uses if needed.

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EXHIBIT B – REGIONAL RESDENTIAL RATE COMPARISON (January 2016)

Jurisdiction Hauler 60-65 Gallon Rate Auburn Recology Auburn/Placer $35.60 Citrus Heights Republic Services $20.78 Davis Davis Waste Removal Co. $32.38 Elk Grove Republic Services $26.31 Folsom Municipal $22.50 Rancho Cordova Republic Services $24.06 Roseville Municipal $23.40 Sacramento City Municipal $34.23 Sacramento County Municipal $23.55

60-65 Gallon Trash Cart Rate

$40.00 Comparison Chart - 2016 Rates $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 60-65 gallon rate $5.00 $0.00

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EXHIBIT C – LOCAL UTILITY HISTORICAL RATE COMPARISON (January 2016)

Increase over the time % Utility 2009 2010 2011 2012 2013 2014 2015 2016 period Increase

SMUD (dollar per KWH) 0.11 0.12 0.12 0.12 0.12 0.12 0.13 0.13 $ 0.02 18% CHWD (1 inch meter - service only) 25.02 25.02 25.77 28.07 31.99 42.05 $17.03 68% CHWD (1 inch meter) - tier 1 usage per unit 0.68 0.68 0.70 0.77 0.87 0.87 $0.19 28%

SRCSD 19.75 20.00 22.00 24.00 26.00 29.00 32.00 35.00 $15.25 77%

PGE 0.16 0.17 0.17 0.17 0.17 0.17 0.17 0.17 $ 0.01 6% CUBS (Sewer and Drainage) 88.04 93.37 97.47 101.57 105.57 111.82 117.97 124.12 $36.08 41% Sac Suburban Water District (% increase) 13% - - - - - 4% 4% 8% CH Republic Services (64 gallon service level) 21.15 21.73 21.73 21.73 20.70 19.71 20.27 20.78 $(0.37) -2%

2617856.1

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2016 AMENDED RESIDENTIAL SOLID WASTE AND RECYCLING COLLECTION SERVICES CONTRACT

Executed Between City of Citrus Heights And Allied Waste Services of North America, LLC March 10, 2016

Page 1 of 90 Agenda Packet Page89 City of Citrus Heights Collection Services Contract

ARTICLE 1. Definitions ...... 5

ARTICLE 2. Term of Contract ...... 14

ARTICLE 3. Services Provided by the Contractor ...... 14

ARTICLE 4. Charges and Rates ...... 19

ARTICLE 5. Diversion Requirements ...... 20

ARTICLE 6. Service Units ...... 20

ARTICLE 7. Residential Collection Service ...... 21

ARTICLE 8. City Collection Service ...... 34

ARTICLE 9. Other Collection Service ...... 40

ARTICLE 10. Collection Routes ...... 41

ARTICLE 11. Minimum Performance and Diversion Standards ...... 42

ARTICLE 12. Collection Equipment ...... 42

ARTICLE 13. Contractor’s Office ...... 45

ARTICLE 14. Other Services ...... 46

ARTICLE 15. Emergency Service Provisions ...... 49

ARTICLE 16. Record Keeping and Reporting Requirements ...... 50

ARTICLE 17. Nondiscrimination ...... 53

ARTICLE 18. Service Inquiries and Complaints ...... 53

ARTICLE 19. Quality of Performance of Contractor ...... 54

ARTICLE 20. Performance Bond ...... 59

ARTICLE 21. Insurance ...... 59

ARTICLE 22. Indemnification ...... 62

Page 2 of 90 Agenda Packet Page90 City of Citrus Heights

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ARTICLE 23. Default of Contract...... 64

ARTICLE 24. Modifications to the Contract ...... 67

ARTICLE 25. Legal Representation ...... 68

ARTICLE 26. Financial Interest ...... 68

ARTICLE 27. Contractor's Personnel ...... 69

ARTICLE 28. Exempt Waste ...... 70

ARTICLE 29. Independent Contractor ...... 70

ARTICLE 30. Laws to Govern ...... 70

ARTICLE 31. Consent to Jurisdiction ...... 70

ARTICLE 32. Assignment ...... 70

ARTICLE 33. Compliance with Laws ...... 71

ARTICLE 34. Permits and Licenses ...... 71

ARTICLE 35. Ownership of Written Materials ...... 72

ARTICLE 36. Waiver ...... 72

ARTICLE 37. Prohibition Against Gifts ...... 72

ARTICLE 38. Point of Contact ...... 72

ARTICLE 39. Notices ...... 72

ARTICLE 40. Transition to Next Contractor ...... 74

ARTICLE 41. Contractor’s Records ...... 74

ARTICLE 42. Entire Contract ...... 75

ARTICLE 43. Severability ...... 75

ARTICLE 44. Right to Require Performance ...... 75

Page 3 of 90 Agenda Packet Page91 City of Citrus Heights

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ARTICLE 45. All Prior Contracts Superseded ...... 76

ARTICLE 46. Headings...... 76

ARTICLE 47. Exhibits ...... 76

ARTICLE 48. Effective Date ...... 76

Page 4 of 90 Agenda Packet Page92 City of Citrus Heights

Collection Services Contract

CITY OF CITRUS HEIGHTS

This Amended Contract made and entered into this 10th day of March , 2016, by and between the City of Citrus Heights, a municipal corporation of the State of California, hereinafter referred to as "CITY" and Allied Waste Services of North America LLC a Delaware corporation, hereinafter referred to as "CONTRACTOR".

Now, therefore, in consideration of the mutual covenants, Contracts and consideration contained herein, CITY and CONTRACTOR hereby agree as hereinafter set forth: ARTICLE 1. Definitions For the purpose of this Collection Services Contract, hereinafter referred to as "Contract", the definitions contained in this Article shall apply unless otherwise specifically stated. If a word or phrase is not defined in this Article, the definition of such word or phrase as contained in the appropriate chapter of the Citrus Heights Municipal Code shall control. When not inconsistent with the context, words used in the present tense include the future, words in the plural include the singular, and words in the singular include the plural. Use of the masculine gender shall include the feminine gender.

1.01 Approved Sharps Container. A receptacle that is approved by the CITY, for the Collection of Sharps.

1.02 Biohazardous or Biomedical Waste. Any waste which may cause disease or reasonably be suspected of harboring pathogenic organisms; included are wastes resulting from the operation of medical clinics, hospitals, and other facilities processing wastes which may consist of, but are not limited to, human and animal parts, contaminated bandages, pathological specimens, hypodermic needles, sharps, contaminated clothing and surgical gloves.

1.03 Brown Goods. Electronic equipment such as stereos, televisions, computers, monitors, VCR’s and other similar items.

1.04 CalRecycle. The State of California Department of Resources Recycling and Recovery.

Page 5 of 90 Agenda Packet Page93 City of Citrus Heights

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1.05 CITY. The City of Citrus Heights, California.

1.06 CERCLA. The Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. Section 9600 et. seq.)

1.07 City Collection Service. City Solid Waste Collection Service, City Recycling Collection Service, Green Material Collection Service, City Container Service, City Event Service, and Large Item Collection Service.

1.08 City Container Service. The Collection of Solid Waste and Recyclables from public containers distributed and maintained by the CITY and the transport and delivery of the Collected materials to the appropriate facility.

1.09 City Event Service. The Collection of Solid Waste and Recyclables, and the provision of other services as set forth in this Contract, at CITY-sponsored and non-profit events.

1.10 City Service Unit. Those CITY properties as set forth in Exhibit 3, “City Service Units”, which is attached to and included in this Contract.

1.11 City Recycling Collection Service. The Collection of Recyclable Materials, by the CONTRACTOR, including dry cell household batteries when set out in the place and manner agreed to between the CITY and the CONTRACTOR, from City Service Units in the Service Area and the delivery of those Recyclable Materials to a Materials Recovery Facility.

1.12 City Solid Waste. Garbage and Rubbish resulting from the normal activities of a City Service Unit. City Solid Waste must be generated by and at the City Service Unit wherein the City Solid Waste is Collected and does not include items defined herein as Exempt Waste.

1.13 City Solid Waste Collection Service. The Collection of City Solid Waste by the CONTRACTOR, from City Service Units in the Service Area, and the delivery of that City Solid Waste to a Disposal Facility.

1.14 City Waste. City Solid Waste, Green Material, and Large Items resulting from the normal activities of a City Service Unit. City Waste must be generated by and at the City Service Unit wherein the City Waste is Collected and does not include items defined herein as Exempt Waste.

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1.15 Cogeneration. The sequential use of energy for the production of electrical and useful thermal energy as defined in the Public Resources Code Section 25134.

1.16 Collection. The process whereby Residential Waste, City Waste, Recyclable Materials and other materials are removed and transported to a Disposal Facility, Green Material Processing Facility, Materials Recovery Facility or other facility as appropriate.

1.17 Collection Services. Residential Collection Service, City Collection Service, Debris Collection Service and Special Clean-Up Service.

1.18 Compost Facility. A facility that is operated for the purpose of producing compost, as defined in Division 30, Part 1, Chapter 2 of the Public Resources Code.

1.19 Construction and Demolition Debris. Used or discarded materials resulting from construction, remodeling, repair or demolition operations on any pavement, house, commercial building or other structure and such other materials as may be removed during the normal cleanup process of such construction, remodeling, repair, or demolition operations.

1.20 Contract. The written document and all amendments thereto, between the CITY and the CONTRACTOR, governing the provision of Collection Services as provided herein.

1.21 Contract Administrator. That person, or their designee, designated by the CITY to administer and monitor the provisions of this Contract.

1.22 Contract Year. Each twelve (12) month period from January 1st to December 31st, beginning January 1, 2011.

1.23 CONTRACTOR. That person or entity that has obtained from the CITY a Contract to provide Collection Services as set forth herein.

1.24 County. Sacramento County, California.

1.25 Debris Collection Service. The Collection and appropriate disposal or processing of abandoned or discarded Large Items and other materials by the CONTRACTOR within the Service Area.

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1.26 Disposal Facility. The facility designated by CONTRACTOR for the disposal, or processing as appropriate, of Residential Waste, City Solid Waste and other materials as appropriate and acceptable, which has obtained, and maintains during the term of this Contract, valid permit(s) to accept, process or dispose of Residential Solid Waste, City Solid Waste and such other materials as may be delivered by CONTRACTOR under the terms of this Contract.

1.27 Dwelling Unit. An individual living unit in a single family dwelling, condominium, townhouse, mobile home, duplex (two units), triplex (three units), fourplex (four units) or building of four (4) or less total individual living units intended for, or capable of being utilized for, residential living other than a Hotel or Motel.

1.28 Exempt Waste. Biohazardous or Biomedical Waste, Hazardous Waste, Sludge, Stable Matter, Green Material or lumber that is more than five (5) feet in length in its longest dimension or two (2) feet in diameter, automobiles, automobile parts, boats, boat parts, boat trailers, internal combustion engines, lead- acid batteries, and those wastes under the control of the Nuclear Regulatory Commission. Exempt Waste does not include Used Oil, Used Oil Filters, dry cell household batteries or Sharps when placed for Collection as set forth in this Contract or as otherwise directed by the CITY.

1.29 Food Material. “Food material” as defined in California Code of Regulations, Title 14, Chapter 3.1, Article 1, Section 17852 (2).

1.30 Garbage. All putrescible waste which generally includes, but is not limited to, kitchen and table food waste, animal, vegetative, food or any organic waste that is attendant with, or results from the storage, preparation, cooking or handling of food materials attributed to normal activities of a Service Unit. Garbage must be generated by and at the Service Unit wherein the Garbage is Collected. Garbage does not include those items defined herein as Exempt Waste.

1.31 Garbage Bin. A metal or plastic container, with a capacity of one (1) cubic yard up to and including eight (8) cubic yards, designed or intended to be mechanically dumped into a loader packer type garbage truck.

1.32 Garbage Carts. A heavy plastic receptacle with a rated capacity of at least thirty two (32) and not more than ninety-six (96) gallons for use by Service Recipients for Residential or City Solid Waste Collection Service under this Contract. Garbage Carts must meet the minimum specifications set forth in Exhibit 4 which is attached to and included in this Contract.

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1.33 Green Material. Any “Green Material” as defined in California Code of Regulations, Title 14, Chapter 3.1, Article 1, Section 17852 (21). Green Material includes vegetative matter resulting from normal yard and landscaping maintenance that is not more than three (3) feet in its longest dimension or six (6) inches in diameter or weighs no more than fifty (50) pounds. Green Material includes plant debris, such as Palm, Yucca and Cactus, grass clippings, leaves, pruning, weeds, branches, brush, Christmas trees, and other forms of organic waste and must be generated by and at the Residential or City Service Unit wherein the Green Material is Collected. Green Material does not include items herein defined as Exempt Waste.

1.34 Green Material Cart. A heavy plastic receptacle with a rated capacity not exceeding ninety-six (96) gallons for use by Service Recipients for Green Material Collection Service under this Contract. Green Material Carts must meet the minimum specifications set forth in Exhibit 4 to this Contract.

1.35 Green Material Collection Service. The Collection of all Green Material from Residential and City Service Units in the Service Area and the delivery of that Green Material to a Green Material Processing Facility, or other properly permitted facility for use as Alternative Daily Cover (ADC).

1.36 Green Material Processing Facility. Any facility, designated by Contractor, which is designed, operated and legally permitted for the purpose of receiving and processing Green Material and Large Green Material which has obtained, and maintains during the term of this Contract, valid permit(s) to accept, process or dispose of Green Material, Large Green Material and such other materials as may be delivered by CONTRACTOR under the terms of this Contract.

1.37 Hazardous Waste. Any material which is defined as a hazardous waste under California or United States law, or any regulations promulgated pursuant to such law, as such law or regulations may be amended from time to time except such materials as may be defined herein as Brown Goods.

1.38 Household Hazardous Waste or HHW. Any Hazardous Waste generated incidental to owning or maintaining a Residential Service Unit, excluding any Hazardous Waste generated in the course of operation of a business concern at a Residential Service Unit, in accordance with Section 25218.1 of the California Health and Safety Code.

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1.39 Hotel or Motel. A structure or building unit(s) capable of being utilized for residential living where such unit or a group of such units is regularly rented to transients or held out or advertised to the public as a place regularly rented to transients for periods of seven (7) days or less. To meet this definition, the Hotel or Motel must be licensed to operate as such.

1.40 Large Green Material. Oversized Green Material such as tree trunks and branches with a diameter of not less than six (6) inches and not more than two (2) feet and a length of not more than five (5) feet in its longest dimension, which are attributed to the normal activities of a Residential Service Unit or City Service Unit. Large Green Material must be generated by and at the Residential Service Unit or City Service Unit wherein the Large Green Material is Collected.

1.41 Large Items. Those materials including, but not limited to, furniture, carpets, mattresses, White Goods, Brown Goods, clothing, tires, Large Green Material, or some combination of such items in a container the dimensions and weight of which container does not exceed four feet by four feet by two feet (4’x4’x2’) and sixty (60) pounds, which are attributed to the normal activities of a Residential Service Unit or City Service Unit. Large Items must be generated by and at the Residential Service Unit or City Service Unit wherein the Large Items are Collected. Large Items do not include items herein defined as Exempt Waste.

1.42 Large Item Collection Service. The periodic Collection of Large Items, by the CONTRACTOR, from Residential Service Units or City Service Units in the Service Area, and the delivery of those Large Items to a Disposal Facility, Materials Recovery Facility or such other facility as may be appropriate under the terms of this Contract. Large Item Collection Service does not include the Collection of Large Items through the use of Roll-Off Containers.

1.43 Materials Recovery Facility (MRF). Any facility, designated by the CONTRACTOR, which is designed, operated, and legally permitted for the purpose of receiving, sorting, processing, storing, or preparing Recyclable Materials for sale, recycling or composting, and which has obtained, and maintains during the term of this Contract, valid permit(s) to accept, process or store Recyclable Materials and such other materials as may be delivered by CONTRACTOR under the terms of this Contract.

1.44 Non-Collection Notice. A form developed and used by the CONTRACTOR, as approved by the CITY, to notify Service Recipients of the reason for non-collection of materials set out by the Service Recipient for Collection by CONTRACTOR pursuant to this Contract.

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1.45 Organic Material. Organic waste as defined in California Public Resources Code Section 42649.8(c).

1.46 Putrescible Organic Material. Food material, which may or may not be commingled with green material, and that is separated from the municipal solid waste stream.

1.47 Rebuilt Vehicle. For purposes of this Contract, “rebuilt” means, at a minimum, replacement of worn parts and reconditioning or replacement of hydraulic systems, transmissions, differentials, electrical systems, engines, and brake systems. In addition, the Rebuilt Vehicle must be repainted and its tires must have at least eighty-five percent (85%) of tread remaining.

1.48 Recyclable Materials or Recyclables. Those materials which are capable of being recycled and which would otherwise be processed or disposed of as Residential or City Solid Waste. These materials will be as defined by the CITY from time to time. Recyclable Materials currently being Collected include: newsprint (including inserts); mixed paper (including magazines, catalogs, envelopes, junk mail, corrugated cardboard, Kraft brown bags and paper, paperboard, paper egg cartons, and telephone books); glass containers; aluminum beverage containers; small scrap and cast aluminum (not exceeding forty (40) pounds in weight nor two (2) feet in any dimension for any single item); steel including ”tin” cans and small scrap (not exceeding forty (40) pounds in weight nor two (2) feet in any dimension for any single item); bimetal containers; mixed plastics such as plastic bags, plastic film, plastic containers (1-7), and bottles including containers made of HDPE, LDPE, PET, or PVC; aseptic containers; polystyrene; and dry cell household batteries when set out for Collection in the manner prescribed herein; and those materials added by the CONTRACTOR or CITY from time to time.

1.49 Recycling Cart. A heavy plastic receptacle with a rated capacity of at least thirty-two (32) gallons, and not more than ninety-six (96) gallons, for use by Service Recipients for Residential or City Recycling Collection Service under this Contract. Recycling Carts must meet the minimum specifications set forth in Exhibit 4 to this Contract.

1.50 Residential Collection Service. Residential Solid Waste Collection Service, Residential Recycling Collection Service, Green Material Collection Service, Large Item Collection Service, Sharps Collection Service, and Residential Used Oil Collection Service.

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1.51 Residential Recycling Collection Service. The Collection of Recyclable Materials, including dry cell household batteries when set out by the resident in heavy duty plastic bags and placed on the Recycling Cart, by the CONTRACTOR from Residential Service Units in the Service Area and the delivery of those Recyclable Materials to a Materials Recovery Facility.

1.52 Residential Service Unit. Any Dwelling Unit in the Service Area utilizing a Garbage Cart, or any combination of Dwelling Units sharing Garbage Carts, for the accumulation and set out of Residential Solid Waste.

1.53 Residential Solid Waste. Garbage and Rubbish resulting from the normal activities of a Residential Service Unit. Residential Solid Waste must be generated by and at the Residential Service Unit wherein the Residential Solid Waste is Collected and does not include items defined herein as Exempt Waste.

1.54 Residential Solid Waste Collection Service. The Collection of Residential Solid Waste, by the CONTRACTOR, from Residential Service Units in the Service Area and the delivery of that Residential Solid Waste to a Disposal Facility.

1.55 Residential Used Oil Collection Service. The Collection of Used Oil in Used Oil Containers and Used Oil Filters in Used Oil Filter Containers, by the CONTRACTOR, from all Residential Service Units in the Service Area utilizing Used Oil and Filter Containers for the accumulation and set-out of Used Oil and Used Oil Filters and the appropriate disposition of the Used Oil and Used Oil Filters in accordance with the requirements of this Contract.

1.56 Residential Waste. Residential Solid Waste, Green Material, Large Items, Used Oil, and Used Oil Filters resulting from the normal activities of a Residential Service Unit. Residential Waste must be generated by and at the Residential Service Unit wherein the Residential Waste is Collected and does not include items defined herein as Exempt Waste.

1.57 Roll-Off Collection Service. The Collection of Roll-Off Containers containing Construction and Demolition Debris.

1.58 Roll-Off Container. A metal container with a capacity of twenty (20) or more cubic yards that is normally loaded onto a motor vehicle and transported to an appropriate facility.

1.59 Rubbish. All refuse, accumulation of paper, excelsior, rags, wooden boxes and containers, sweep-ups and all other accumulations of a nature other than

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Garbage and Green Material, resulting from the normal activities of a Service Unit. Rubbish must be generated by and at the Service Unit wherein the Rubbish is Collected. Rubbish does not include items herein defined as Exempt Waste.

1.60 Service Area. The area within the corporate limits of the City of Citrus Heights.

1.61 Service Unit. City Service Units and Residential Service Units.

1.62 Service Recipient. An individual receiving Collection Services.

1.63 Sharps. Hypodermic needles, pen needles, intravenous needles, lancets, and other devices that are used to penetrate the skin for the delivery of medications. Sharps must be generated by the resident and at the Residential Service Unit wherein the Sharps are Collected.

1.64 Sharps Collection Service. The on-call Collection of Sharps from Residential Service Units, when such Sharps are generated by the resident at such Residential Service Unit and the appropriate disposal of the Sharps.

1.65 Sludge. The accumulated solids, residues, and precipitates generated as a result of waste treatment or processing, including wastewater treatment, water supply treatment, or operation of an air pollution control facility, and mixed liquids and solids pumped from septic tanks, grease traps, privies, or similar disposal objects or any other such waste having similar characteristics or effects.

1.66 Special Clean-Up Service. The periodic Collection of Large Items and other materials, excluding Exempt Waste, using Roll-Off Containers by the CONTRACTOR resulting from CITY sponsored special clean-up program events. Such Collection by the CONTRACTOR shall be limited to the equivalent of six hundred (600) cubic yards in any Contract Year.

1.67 Stable Matter. Manure and other waste matter normally accumulated in stables or in livestock or poultry enclosures.

1.68 Used Oil. Any oil that has been refined from crude oil or has been synthetically produced, and is no longer useful to the Service Recipient because of extended storage, spillage or contamination with non-hazardous impurities such as dirt or water; or has been used and as a result of such use has been contaminated

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with physical or chemical impurities. Used Oil must be generated by and at the Residential Service Unit wherein the Used Oil is Collected. Used Oil does not include transmission fluid.

1.69 Used Oil Container. A plain co-poly container provided by the CONTRACTOR for the accumulation of Used Oil that is at least four (4) quarts in capacity, leak-proof, has a screw-on lid and has a label designating it for use as a Used Oil Container.

1.70 Used Oil Filter. Any oil filter that is no longer useful to the Service Recipient because of extended storage, spillage or contamination with non- hazardous impurities such as dirt or water, or has been used and as a result of such use has been contaminated with physical or chemical impurities. Used Oil Filters must be generated by and at the Residential Service Unit wherein the Used Oil Filter is Collected.

1.71 Used Oil Filter Container. A six (6) mil poly bag with double track seal with dimensions of at least fourteen and one-half (14.5) inches by eight (8) inches with a one and one-quarter (1 ¼ ) inch diameter hole above the seal, provided by the CONTRACTOR for the accumulation of Used Oil Filters that has a label designating it for use as a Used Oil Filter Container.

1.72 White Goods. Inoperative and discarded refrigerators, ranges, water heaters, freezers, and other similar household appliances.

1.73 Work Day. Any day, Monday through Friday that is not a holiday as set forth in Section 3.07 of this Contract. ARTICLE 2. Term of Contract 2.01 Initial Term. The initial term of this Contract shall be extended an additional ten years with a termination date of December 31, 2027.

2.02 Other Provisions. The CITY may, near the end of the Contract term, either renegotiate the terms and conditions of the Contract with the current CONTRACTOR or request proposals from qualified contractors to provide Collection Services. ARTICLE 3. Services Provided by the Contractor 3.01 Grant of Exclusive Contract. Except as otherwise provided in this Contract, the CONTRACTOR is herein granted an exclusive Contract to provide Collection Services within the Service Area. No other solid waste or recycling

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services, including Roll-Off Collection Services, shall be exclusive to the CONTRACTOR.

3.02 Sale or Donation of Recyclable Materials by Service Recipients. Nothing in this Contract shall preclude a Service Recipient from transporting, selling or donating their Recyclable Materials to a private or public entity provided that such entity does not charge the Service Recipient a fee or service charge of any type related to the sale or donation of the Recyclable Material.

3.03 Responsibility For Service Billing and Collection. The CONTRACTOR shall be responsible for the billing and collection of payments for Collection Services within the Service Area.

3.04 CONTRACTOR’S Payment to CITY. CONTRACTOR shall make payment to the CITY of a franchise fee as specified in this Section 3.04. Payment to the CITY shall be due on the fifteenth (15th) day of the month following the month the revenues are collected. Each such payment shall be accompanied by an accounting, which sets forth CONTRACTOR’S gross receipts collected during the preceding month.

3.04.1 The franchise fee shall be a percentage of CONTRACTOR’S gross revenue collected each month under the terms of this Contract. Revenue received by the CONTRACTOR from the sale of Recyclable Materials, and HHW and administrative fees collected by the CONTRACTOR shall not be considered as gross revenues for purposes of the calculation of franchise fees. The franchise fee percentage shall be seven percent (7%) through December 31, 2020, eight percent (8%) from January 1, 2021 through December 31, 2024; and ten percent (10%) from January 1, 2025 through December 31, 2027. No acceptance by CITY of any payment shall be construed as an accord that the amount is in-fact the correct amount, nor shall such acceptance of payment be construed as a release of any claim CITY may have against CONTRACTOR for any additional sums payable under the provisions of this Contract. All amounts paid shall be subject to independent audit and recalculation by CITY. If, after the audit, such recalculation indicates an underpayment of more than five percent (5%) of the actual amount owed, CONTRACTOR shall pay to CITY the amount of the underpayment and shall reimburse CITY for all reasonable costs and expenses incurred in connection with the audit and recalculation, within ten (10) days of receipt of written notice from CITY that such is the case. If, after audit, such recalculation indicates an underpayment of five percent (5%) or less or an overpayment, CITY shall notify the Contractor in writing of

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the amount of the overpayment or underpayment, adjusted for all reasonable costs and expenses incurred in connection with the audit and recalculation. CONTRACTOR may adjust the amount of the next franchise payment due following receipt of such notice by the amount specified therein.

3.05 Service Standards. CONTRACTOR shall perform all Collection Services under this Contract in a thorough and professional manner. Collection Services described in this Contract shall be performed regardless of weather conditions or difficulty of Collection.

3.06 Labor and Equipment. CONTRACTOR shall provide and maintain all labor, equipment, tools, facilities, and personnel supervision required for the performance of CONTRACTOR’S obligations under this Contract. CONTRACTOR shall at all times have sufficient backup equipment and labor to fulfill CONTRACTOR’S obligations under this Contract. No compensation for CONTRACTOR’S services or for CONTRACTOR’S supply of labor, equipment, tools, facilities or supervision shall be provided or paid to CONTRACTOR by CITY or by any Service Recipient except as expressly provided by this Contract.

3.07 Holiday Service. The CITY observes Thanksgiving Day, December 25th, and January 1st as legal holidays. CONTRACTOR shall not be required to provide Collection Services or maintain office hours on the designated holidays. In any week in which one of these holidays falls on a Work Day, Residential and City Collection Services, as appropriate, for the holiday and each Work Day thereafter will be delayed one Work Day for the remainder of the week with normally scheduled Friday Collection Services being performed on Saturday.

3.08 Inspections. The CITY shall have the right to inspect the CONTRACTOR’S facilities or Collection vehicles and their contents at any time while operating inside or outside the CITY.

3.09 Commingling of Materials.

3.09.1 Residential and City Waste and Recyclable Material. CONTRACTOR shall not at any time commingle Residential or City Waste Collected pursuant to this Contract, with any Recyclable Material separated for Collection pursuant to this Contract, without the express prior written authorization of the Contract Administrator.

3.09.2 Residential and City Waste Collected in Citrus Heights. CONTRACTOR shall not at any time during collection and before transfer and/or

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delivery to the Material Recovery Facility and/or Disposal Facility commingle any Residential or City Waste, Collected pursuant to this Contract, with any other material Collected by CONTRACTOR inside or outside the City of Citrus Heights, without the express prior written authorization of the Contract Administrator.

3.09.3 Recyclable Materials. CONTRACTOR shall not at any time during collection and before transfer and/or delivery to the Material Recovery Facility, Disposal Facility, Green Material processing facility, Composting facility and/or other properly permitted and legally operated processing facility, commingle Recyclable Materials Collected pursuant to this Contract, with any other material Collected by CONTRACTOR inside or outside the City of Citrus Heights, without the express prior written authorization of the Contract Administrator.

3.10 Spillage and Litter. The CONTRACTOR shall not litter premises in the process of providing Collection Services or while its vehicles are on the road. The CONTRACTOR shall transport all materials Collected under the terms of this Contract in such a manner as to prevent the spilling or blowing of such materials from the CONTRACTOR'S vehicle. The CONTRACTOR shall exercise all reasonable care and diligence in providing Collection Services so as to prevent spilling or dropping of Residential Waste, City Solid Waste, or Recyclable Materials and shall immediately, at the time of occurrence, clean up such spilled or dropped Residential Waste, City Solid Waste, or Recyclable Materials.

3.10.1 The CONTRACTOR shall not be responsible for cleaning up unsanitary conditions caused by the carelessness of the Service Recipient; however, the CONTRACTOR shall clean up any materials or residue that are spilled or scattered by the CONTRACTOR or its employees.

3.10.2 Equipment oil, hydraulic fluids, spilled paint, or any other liquid or debris resulting from the CONTRACTOR’S operations or equipment repair shall be covered immediately with an absorptive material and removed from the street surface. When necessary, CONTRACTOR shall apply a suitable cleaning agent to the street surface to provide adequate cleaning.

3.10.3 The above paragraphs notwithstanding, CONTRACTOR shall clean up any spillage or litter caused by CONTRACTOR within two (2) hours upon notice from the CITY.

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3.10.4 To facilitate such cleanup, CONTRACTOR’S vehicles shall at all times carry sufficient quantities of petroleum absorbent materials along with a broom and shovel.

3.11 Ownership of Materials.

3.11.1 Title to Residential Waste, City Waste and Recyclable Materials shall pass to CONTRACTOR at such time as said materials are placed in the CONTRACTOR’S Collection vehicle.

3.11.2 Title to material Collected as part of Special Clean-up Service shall pass to CONTRACTOR at the time the material is placed in the Roll-Off Container or other Collection vehicle or container approved for use in the Special Clean-Up Service event.

3.11.3 Title to material Collected as part of Debris Collection Service shall pass to CONTRACTOR at such time as said materials are placed in the CONTRACTOR’S Collection vehicle.

3.12 New Programs Added in 2011.

3.12.1 Sharps Collection Service. CONTRACTOR shall make Sharps Collection Service available immediately upon execution of this Collection Service Contract. CONTRACTOR will begin public education and outreach to inform residents of this service starting February 1, 2011, and include public education and outreach on Sharps Collection Service in future Public Education and Outreach Programs throughout the term of the Collection Service Contract.

3.12.2 Dry Cell Battery Collection. CONTRACTOR shall collect dry cell household batteries as part of Residential Recycling Collection Service immediately upon execution of this Collection Service Contract. CONTRACTOR will begin public education and outreach to inform residents of this service change starting February 1, 2011, and include public education and outreach on dry cell battery collection in future Public Education and Outreach Programs throughout the term of the Collection Service Contract.

3.12.3 HHW Collection Events. CONTRACTOR shall make HHW Collection events, as set forth in Article 8.09 of this Contract, available immediately upon execution of this Collection Service Contract. CONTRACTOR will begin public education and outreach to inform residents of this service starting February 1, 2011, and include public education and outreach on HHW Collection events in future Public

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Education and Outreach Programs throughout the term of the Collection Service Contract.

3.12.4 Public Outreach and Education Services. CONTRACTOR shall make expanded public outreach and educational services, as set forth in Article 14.01 of this Contract available immediately upon execution of this Amended Collection Service Contract. CONTRACTOR will begin public education and outreach to inform residents of this. ARTICLE 4. Charges and Rates 4.01 Collection Services. The CONTRACTOR shall be responsible for the billing and collection of payments for all Collection Services. The Contractor shall charge Service Recipients service rates not to exceed the maximum amounts established in Exhibit 1, which is attached to and included in this Contract, and as may be adjusted under the terms of this Contract.

4.01.1 Partial Month Service. If, during a month, a Service Unit is added to or deleted from CONTRACTOR’S Service Area, the CONTRACTOR’S billing shall be pro-rated by dividing the appropriate monthly service rate by four (4) and multiplying the result by the number of actual weeks in the month that service was provided to the Service Unit.

4.01.2 Production of Invoices. The CONTRACTOR shall produce an invoice, in a form and format that is approved by the Contract Administrator, for services received under this Contract in advance but no less than four (4) times per year. The CONTRACTOR’S invoice shall be remitted to the Service Recipient no earlier than the twentieth (20th) day of the month preceding the period for which the service is being billed.

4.01.3 Delinquent Service Accounts. The CONTRACTOR may take such action as is legally available to collect or cause collection of past due amounts. However, in no event, except upon notice in writing by the Contract Administrator, shall the CONTRACTOR cease provision of Collection Services to any Service Unit due to non-payment. CITY will assist the CONTRACTOR in the recovery of delinquent payments by administering the lien process or by placing overdue amounts on the tax rolls.

4.02 Collection Service Rates. CONTRACTOR may adjust Collection Service rates annually during the term of this Contract in accordance with the annual

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average change in the Consumer Price Index-All for Urban Consumers (CPI-U), U.S. city average, Water and sewer and trash collection services (December 1997=100), compiled and published by the U.S. Department of Labor, Bureau of Labor Statistics Series ID CUUR0000SEHG. The Collection Service Rates may be adjusted in accordance with the provisions of this Section. There will be no rate increase in calendar years 2018 and 2019. Beginning January 1, 2020, CONTRACTOR may annually adjust the Collection Service rates for the remainder of the contract based on the CPI-U identified in this Section, provided that the adjustment shall not be greater than 3.5% or less than 1.75%. Any new government fees associated with out of County disposal shall not be passed through to CITY or residential customers. CONTRACTOR may pass through to residential customers any new fees that are industry-wide affecting both in-County and out-of-County disposal, or may otherwise address such fees as mutually agreed between CITY and CONTRACTOR in a meet and confer process. No other adjustments to the Collection Service Rates, including adjustments for governmental fees, administrative costs, add-on fees, or other fees of any type may be made under the terms of this Contract, unless such adjustment is proposed and requested by the CITY and considered a pass-through to the CONTRACTOR.

4.02.1 Financial Information. On or before and the 15th of every month during the term of the Contract, CONTRACTOR shall deliver to CITY financial information for the specific services performed under this Contract for the preceding month. Such financial information shall be in the format as the financial forms described in Exhibit 2, or as may be further revised by CITY from time to time. ARTICLE 5. Diversion Requirements 5.01 Minimum Requirements. The CITY requires the CONTRACTOR to achieve a minimum annual diversion rate of forty percent (40%) for each Contract Year. The annual diversion rate will be calculated as “the tons of materials Collected from the provision of Collection Services that are sold or delivered to a recycler or reuser, as required by this Contract, divided by the total tons of materials Collected in the Contract Year as appropriate.”

5.02 Failure To Meet Minimum Requirements. CONTRACTOR’S failure to meet the minimum diversion requirements set forth above in Section 5.01 may result in the termination of this Contract or the imposition of administrative charges. ARTICLE 6. Service Units 6.01 Service Units. Service Units shall include all the following categories of premises which are in the Service Area as of January 1, 2011, and all such

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premises which may be added to the Service Area by means of annexation, new construction, or as otherwise set forth in this Contract during the term of this Contract:

6.01.1 Residential Service Units

6.01.2 City Service Units

6.01.3 Any question as to whether a premises falls within one of these categories shall be determined by the Contract Administrator and the determination of the Contract Administrator shall be final.

6.02 Service Unit Changes. The CITY and CONTRACTOR acknowledge that during the term of this Contract it may be necessary or desirable to add or delete Service Units for which CONTRACTOR will provide Service.

6.02.1 Additions and Deletions. CONTRACTOR shall provide services described in this Contract to new Service Units in CONTRACTOR’S Service Area within five (5) Work Days of receipt of notice from the CITY or new Service Unit to begin such Service.

6.03 Annexation. If during the term of the Contract, additional territory is acquired by the CITY through annexation, CONTRACTOR agrees to provide Collection Services in such annexed area in accordance with the provisions and service rates set forth in this Contract. Such Collection Services shall begin within five (5) Work Days of receipt of written notice from the CITY. CONTRACTOR shall not begin Collection Service without written authorization from the CITY.

6.04 Route Map Update. CONTRACTOR shall revise the Service Unit route maps to show the addition of Service Units added due to annexation and shall provide such revised maps to the Contract Administrator as requested. ARTICLE 7. Residential Collection Service 7.01 Residential Collection Service. These services shall be governed by the following terms and conditions:

7.01.1 Conditions of Service. The CONTRACTOR shall provide Residential Collection Service to all Residential Service Units in the Service Area whose Residential Solid Waste is properly containerized in Garbage Carts, Recyclable Materials are properly containerized in Recycling Carts, except as set forth in Section 7.07.1, and Green Material is properly containerized in Green Material

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Carts, except as set forth in Section 7.08.2, where the Garbage, Recycling and Green Material Carts have been placed within three (3) feet of the curb, swale, paved surface of the public roadway, closest accessible roadway, or other such location agreed to by the CONTRACTOR and Service Recipient, that will provide safe and efficient accessibility to the CONTRACTOR'S Collection crew and vehicle.

7.02 On-Premises Service. Notwithstanding any term or definition set forth in this Contract, CONTRACTOR shall provide on-premises Collection of Residential Solid Waste, Recyclable Materials, and Green Material to a Residential Service Unit if all adult Service Recipients residing therein have disabilities that prevent them from setting their Garbage, Recycling or Green Material Cart at the curb for Collection and if a request for on-premises service has been made to, and approved by, the Contract Administrator in the manner required by CITY. The Contract Administrator shall notify the CONTRACTOR in writing of any Residential Service Units requiring on-premises service along with the date such service is to begin. No additional monies shall be due to the CONTRACTOR for the provision of on-premises service.

7.02.1 Collection Day. CONTRACTOR shall provide on-premises Collection Service on the same Work Day that curbside Collection Service would otherwise be provided to the Residential Service Unit.

7.03 Frequency and Scheduling of Service. Residential Solid Waste Collection Service shall be provided one (1) time per week on a scheduled route basis. Residential Recycling Collection Service, including Residential Used Oil Collection Service, dry cell battery collection, and Green Material Collection Service shall be provided one (1) time every other week on an alternating basis and shall be scheduled so that a Residential Service Unit receives Residential Solid Waste Collection Service, and Residential Recycling Collection Service, including Residential Used Oil Collection Service or Green Material Collection Service on the same Work Day.

7.04 Hours and Days of Collection. Residential Collection Service shall be provided, commencing no earlier than 6:00 a.m. and terminating no later than 6:00 p.m., Monday through Friday with no service on Saturday (except for holiday service as set forth in Section 3.07 of this Contract) or Sunday. The hours, days, or both of Collection may be extended due to extraordinary circumstances or conditions with the prior written consent of the Contract Administrator.

7.05 Manner of Collection. The CONTRACTOR shall provide Residential Collection Service with as little disturbance as possible and shall leave any Garbage,

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Recycling or Green Material Cart in an upright position at the same point it was Collected without obstructing alleys, roadways, driveways, sidewalks or mail boxes.

7.05.1 CONTRACTOR’S employees providing Residential Collection Service shall follow the regular walk for pedestrians while on private property and shall not trespass nor cross property to the adjoining premises unless the occupant or owner of both properties has given permission. Care should be taken to prevent damage to property, including flowers, shrubs, and other plantings.

7.05.2 Purchase and Distribution of Garbage, Recycling and Green Material Carts. The CONTRACTOR shall be responsible for the purchase and distribution of fully assembled and functional Garbage, Recycling and Green Material Carts to Residential Service Units in the Service Area. Residential Service Units shall be provided with one (1) Garbage Cart, One (1) Recycling Cart and one (1) Green Material Cart. In addition, either one (1) additional Recycling Cart or one (1) additional Green Material Cart, but not both, may be provided upon customer request at no additional charge.

7.05.3 Replacement of Garbage, Recycling and Green Material Carts. CONTRACTOR’S employees shall take care to prevent damage to carts by unnecessary rough treatment. However, any cart damaged by the CONTRACTOR shall be replaced by the CONTRACTOR, at the CONTRACTOR'S expense, within five (5) Work Days at no cost or inconvenience to the Service Recipient.

7.05.3.1 Upon notification to the CONTRACTOR by the CITY or a Service Recipient that the Service Recipient’s Garbage, Recycling or Green Material Cart(s) has been stolen or damaged beyond repair through no fault of the CONTRACTOR, or needs replacement due to age and normal wear and tear, the CONTRACTOR shall deliver a replacement cart(s) to such Service Recipient within five (5) Work Days. The CONTRACTOR shall maintain records documenting all cart replacements occurring on a monthly basis.

7.05.3.2 Each Service Recipient shall be entitled to the replacement of one (1) lost, destroyed, or stolen Garbage Cart, one (1) lost, destroyed, or stolen Recycling Cart, and one (1) lost, destroyed, or stolen Green Material Cart during the term of this Contract at no cost to the Service Recipient. Except in the case of a cart that must be replaced because of damage caused by CONTRACTOR, due to damage caused by age, or in the case where CONTRACTOR elects to replace a cart rather than repair it on-site, CONTRACTOR shall be

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compensated for the cost of those replacements in excess of one (1) per type of cart per Service Recipient during the term of the Contract, in accordance with the “Cart Exchange” Service Rate set forth in Exhibit 1, or as may be adjusted under the terms of this Contract.

7.05.3.3 CONTRACTOR understands and agrees that this provision is intended to be applied on a per cart type, Service Recipient basis and accordingly each Service Recipient could receive up to three (3) replacement carts, one (1) of each type, during the life of the Contract.

7.05.4 Repair of Garbage, Recycling and Green Material Carts. CONTRACTOR shall be responsible for repair of carts in the areas to include but not be limited to, hinged lids, wheels and axles. Within five (5) Work Days of notification by the CITY or a Service Recipient of the need for such repairs, the CONTRACTOR shall repair the cart or if necessary, remove the cart for repairs and deliver a replacement cart to the Service Recipient.

7.05.5 Cart Exchange. Upon notification to the CONTRACTOR by the CITY or a Service Recipient that a change in the size of a Garbage, Recycling or Green Material Cart is required, or that the Service Recipient requires a second Green Material Cart, the CONTRACTOR shall deliver such Cart to such Service Recipient within five (5) Work Days. Each Residential Service Unit shall be eligible to receive one (1) free Garbage, Recycling and Green Material Cart exchange per Contract Year during the term of this Contract and one free delivery of a second Green Material Cart during the term of this Contract. Accordingly, CONTRACTOR shall be compensated for the cost of those exchanges in excess of one (1) per cart type per Contract Year, in accordance with the “Cart Exchange” service rate as set forth in Exhibit 1 or as may be adjusted under the terms of this Contract. CONTRACTOR will not be required to exchange customer’s carts for different sizes until forty-five (45) days after start-up of contract.

7.05.6 Ownership of Garbage, Recycling and Green Material Carts. Ownership of Garbage, Recycling and Green Material Carts shall rest with the CONTRACTOR, except that ownership of Garbage, Recycling and Green Material Carts in the possession of a Service Recipient at the end of this Contract shall rest with the CITY.

7.06 Residential Solid Waste Collection Service. This service will be governed by the following terms and conditions:

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7.06.1 Non-Collection. CONTRACTOR shall not be required to Collect any Residential Solid Waste that is not placed in a Garbage Cart. In the event of non- collection, CONTRACTOR shall affix to the Garbage Cart a Non-Collection Notice explaining why Collection was not made. CONTRACTOR shall maintain a copy of such notices during the term of this Contract.

7.06.2 Disposal Facility. Except as set forth below, all Residential Solid Waste Collected as a result of performing Residential Solid Waste Collection Service shall be transported to, and disposed of, at the Disposal Facility. In the event the Disposal Facility is closed on a Work Day, the CONTRACTOR shall transport and Dispose of the Residential Solid Waste at such other legally permitted disposal facility as is appropriate. Failure to comply with this provision shall result in the levy of an administrative charge as specified in Article 19 of this Contract and may result in the CONTRACTOR being in default under this Contract.

7.07 Residential Recycling Service. This service will be governed by the following terms and conditions:

7.07.1 Overages. Corrugated cardboard that will not fit inside the Recycling Cart may be placed beside the Recycling Cart.

7.07.2 Recycling - Improper Procedure. Except as set forth below in this Section 7.07.2, the CONTRACTOR shall not be required to Collect Recyclable Materials if the Service Recipient does not segregate the Recyclable Materials from Residential Solid Waste. If Recyclable Materials are contaminated through commingling with Residential Solid Waste, the CONTRACTOR shall, if practical, separate the Residential Solid Waste from the Recyclable Materials. The Recyclable Materials shall then be Collected and the Residential Solid Waste shall be left in the Recycling Cart along with a Non-Collection Notice explaining why the Residential Solid Waste is not considered a Recyclable Material. However, in the event the Recyclable Materials and Residential Solid Waste are commingled to the extent that they cannot easily be separated by the CONTRACTOR or the nature of the Residential Solid Waste renders the entire Recycling Cart contaminated, the CONTRACTOR will leave the Recycling Cart un-emptied along with a Non-Collection Notice that contains instructions on the proper procedures for setting out Recyclable Materials.

7.07.3 Materials Recovery Facility. All Recyclable Materials Collected as a result of performing Recycling Services shall be transferred and/or delivered to

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the Materials Recovery Facility. Failure to comply with this provision shall result in the levy of an administrative charge as specified in Article 19 of this Contract and may result in the CONTRACTOR being in default under this Contract.

7.07.4 Recycling - Changes to Work. Should changes in law arise that necessitate any additions or deletions to the work described herein including the type of items included as Recyclable Materials, the parties shall negotiate any necessary cost changes and shall enter into an Contract amendment covering such modifications to the work to be performed and the compensation to be paid before undertaking any changes or revisions to such work.

7.08 Green Material Collection Service. This service will be governed by the following terms and conditions:

7.08.1 Christmas Tree Collection. The CONTRACTOR shall Collect Christmas Trees on the regular Collection day set out at the curb during the three week period beginning December 26, 2016, and annually thereafter during the term of this Contract. CONTRACTOR shall deliver the Collected Christmas Trees to an appropriate facility for processing. Christmas Trees shall not be limited by size or weight, but must be generated by and at the Residential Service Unit wherein the Christmas tree is Collected. This annual service shall be provided at no additional charge to the Service Recipient or to the City.

7.08.1.1 Contaminated Christmas Trees: Christmas trees that are flocked, contain tinsel or other decorations may be transferred and/or delivered to the Disposal Facility at the discretion of the CONTRACTOR.

7.08.2 Green Material Extra Leaf Collection. CONTRACTOR will provide complimentary leaf collection of up to six (6) 30-gallon bags weighing no more than 35 lbs. per bag, for the months of November – January of each year, or other 3- month period as mutually agreed between CONTRACTOR and City Contract Administrator. Residents will place bags out for collection as directed in the Annual Customer Service Guide.

7.08.3 Non-Collection. Except as set forth in Sections 7.08.1 and 7.08.2 above, CONTRACTOR shall not be required to Collect any Green Material that is not placed in a Green Material Cart. In the event of non-collection, CONTRACTOR shall affix to the Green Material Cart or bags a Non-Collection Notice explaining why Collection was not made. CONTRACTOR shall maintain a copy of such notices during the term of this Contract

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7.09 Green Material Processing Services. CONTRACTOR shall ensure that all Green Material Collected pursuant to this Contract is diverted from the landfill in accordance with AB 939 and subsequent legislation and regulations.

7.09.1 CONTRACTOR shall ensure that the Green Material Collected pursuant to this Contract is not disposed of in a landfill, except as a residue resulting from processing.

7.09.2 Green Material Processing Facility. CONTRACTOR shall deliver all Collected Green Material to a fully permitted Green Material Processing Facility, a fully permitted Transfer station, or other properly permitted facility. CONTRACTOR may deliver Green Material, for diversion, to a properly permitted facility for use as Alternative Daily Cover (ADC) through December 31, 2019 or through such date as determined by CalRecycle. All expenses related to Green Material processing and marketing will be the sole responsibility of CONTRACTOR. When CalRecycle determines that Green Material for use as ADC does not count towards diversion and in the event that Green Material for use as fuel for Cogeneration is not an option, the CITY and CONTRACTOR will explore all processing options and if it is determined that increased processing costs are unavoidable, the CITY and CONTRACTOR will negotiate a solution to cover the additional costs without increasing customer rates.

7.10 Large Item Collection Service. This service will be governed by the following terms and conditions:

7.10.1 Conditions of Service The CONTRACTOR shall provide scheduled Large Item Collection Service to all Residential Service Units in the Service Area whose Large Items have been placed within three (3) feet of the curb, swale, paved surface of the public roadway, closest accessible roadway, or other such location agreed to by the CONTRACTOR and Service Recipient, that will provide safe and efficient accessibility to the CONTRACTOR'S Collection crew and vehicle. The Service Recipient shall be limited to ten (10) cubic yards per Collection. Accordingly CONTRACTOR shall be compensated for the cost of Collecting Large Items in excess of this limitation in accordance with the “Additional Large Item Collection” service rate as set forth in Exhibit 1 or as may be adjusted under the terms of this Contract. Each Residential Service Unit in the Service Area shall be entitled to receive Large Item Collection Service up to three (3) times per Contract Year.

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7.10.2 Frequency of Service. Large Item Collection Service shall be provided no less than three (3) times each Contract Year for each residential street located within the CITY. The schedule for the three (3) annual Large Item Collections will be determined by the CONTRACTOR. The Service Recipient shall not intentionally commingle Large Items with other Residential Waste.

7.10.3 Large Item Collection Schedule and Notices. No later than January 1, 2016 and annually thereafter, the CONTRACTOR shall prepare and submit to the CITY a map, or a set of maps, showing the collection schedule for the three (3) annual Large Item collections for each residential street located within the CITY. The map(s) shall be in both hard copy and in a compatible electronic format for posting on the CITY’S web-site.

7.10.3.1 Starting on January 1, 2011, and on a daily basis thereafter, the CONTRACTOR shall deliver collection notices to households seven (7) days prior to the “scheduled” Large Item collection date. All residential solid waste accounts shall receive Large Item collection service seven (7) days after the delivery of a notice.

7.10.3.2 Starting on January 1, 2011 and on a daily basis thereafter, the CONTRACTOR shall submit to the City a map in electronic format showing the specific streets scheduled to receive the 7-day notice on that day. The electronic listing shall be submitted to the Contract Administrator, or his or her designee, no later than 8:30 a.m.

7.10.3.3 Starting January 1, 2011 and on a daily basis thereafter, the CONTRACTOR shall Collect Large Items set-out for collection as a result of the collection notices delivered seven (7) days prior. Each residential solid waste account shall receive scheduled Large Item Collection Service no less than three (3) times per year, and at least one (1) time during any four (4) month period. Large Item Collection will not occur on the following holidays: New Year’s Day, July 4, Halloween, Thanksgiving and Christmas. The CONTRACTOR shall adjust the collection schedule accordingly to accommodate the holidays.

7.10.4 Non-Collection. The CONTRACTOR should endeavor to Collect all Large Items set-out for Collection in compliance with the guidelines on the scheduled Collection day, unless pre-approved by the Contract Administrator. The CONTRACTOR shall collect the missed piles within forty-eight (48) hours from the scheduled collection day.

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7.10.4.1 In the event that all Large Items are not collected on the scheduled collection day, the CONTRACTOR shall deliver a “courtesy tag” to those residential accounts that did not receive Large Item Collection Service. The courtesy tag shall inform the resident that Collection did not occur on the scheduled day, and shall indicate the date that collection will occur.

7.10.5 Care of Large Items. During the Collection and transporting of Large Items, CONTRACTOR shall take reasonable care to see that reusable goods are not damaged. In the event CONTRACTOR Collects Large Items that contain Freon, CONTRACTOR shall handle such Large Items in a manner such that the Large Items are not subject to regulation as hazardous waste under applicable state and federal laws or regulations.

7.10.6 Maximum Reuse and Recycling. CONTRACTOR shall process all disposed of bulky waste and Large Items collected from Service Units pursuant to this Contract locally, using Sacramento Solid Waste Authority (SWA) certified facilities.

7.10.7 Large Item Overages. If the CONTRACTOR encounters a Large Item debris pile within the scheduled collection area that exceeds the 10 cubic- yard limit, the CONTRACTOR shall take the following steps:

7.10.7.1 The CONTRACTOR shall place a “warning” notice on the front door of the residence with the following information:

7.10.7.1.1.1 The Large Item debris pile was not collected due to a violation of the 10 cubic-yard limit.

7.10.7.1.2 Directs the resident to immediately reduce the size of the pile to the 10 cubic-yard limit, and notifies the resident that the CONTRACTOR will return within 24 hours.

7.10.7.2 If upon return in 24 hours the pile has been reduced in size, the CONTRACTOR shall collect the entire Large Item debris pile at no charge to the resident or to the CITY.

7.10.7.3 If upon return in 24 hours the pile has not been reduced in size, the CONTRACTOR shall collect the entire pile and may charge the resident amounts not to exceed $89.62 for the first ten (10) cubic yards and $5.62 for additional cubic yards. CONTRACTOR may adjust these amounts in accordance with the adjustment provisions of Section 4.02 (and shown in Exhibit 1).

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7.10.7.4 The CONTRACTOR shall take a digital photograph of all Large Item debris piles for which a notice of non-compliance is issued in order to create a record of non-compliance.

7.10.8 Exempt Waste. If the CONTRACTOR encounters a Large Item debris pile that contains Exempt Waste as defined in the Contract, the CONTRACTOR shall take the following steps:

7.10.8.1 The CONTRACTOR shall collect the Large Item debris that is in compliance with the program guidelines and place a “warning” notice on the front door of the residence with the following information:

7.10.8.1.1. Advises that some or all of the Large Item debris was not collected due to the presence of Exempt Waste in the Large Item debris.

7.10.8.1.2. Directs the resident to immediately remove the Exempt Waste from the street or curb, and provide information on the proper disposal and handling of Exempt Waste.

7.10.9 The CONTRACTOR shall submit a list of addresses to the CITY by the end of each business day with a listing of the specific addresses that received a notice of violation due to Exempt Waste.

7.10.9.1 The CONTRACTOR shall take a digital photograph of all Large Item debris piles for which a notice of non-compliance is issued in order to create a record of non-compliance.

7.10.10 CONTRACTOR shall not landfill such Large Items unless the Large Items cannot be reused or recycled.

7.11 Residential Used Oil Collection Service. This service will be governed by the following terms and conditions:

7.11.1 Conditions of Service. In conjunction with the provision of Residential Recycling Collection Service, the CONTRACTOR shall provide Residential Used Oil Collection Service to all Residential Service Units in the Service Area utilizing Used Oil Containers for the accumulation and set-out of their Used Oil, and Used Oil Filter Containers for the accumulation and set out of their Used Oil Filters where the Used Oil Containers and Used Oil Filter Containers have been placed within three (3) feet of the curb, swale, paved surface of the public roadway, closest accessible roadway, or other such location agreed to by the CONTRACTOR

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and Service Recipient, that will provide safe and efficient accessibility to the CONTRACTOR'S Collection crew and vehicle.

7.11.2 Non-Collection. CONTRACTOR shall not be required to Collect material placed in Used Oil or Used Oil Filter Containers unless the material is Used Oil or Used Oil Filters, as appropriate, and is free of contamination other than contamination normally expected to be present as a result of the use, storage or spillage of the Used Oil or Used Oil Filter. In the event of non-collection, CONTRACTOR shall affix to the Used Oil or Used Oil Filter Container a Non- Collection Notice explaining why Collection was not made and maintain a copy of such notice during the term of this Contract. Prior to the end of the Work Day, CONTRACTOR shall notify the Contract Administrator, either by Fax or e-mail, of any non-collection occurrences. If non-collection is because the Used Oil or Filter was placed in an improper container, CONTRACTOR shall also leave Used Oil or Used Oil Filter Containers in a number sufficient to contain the Used Oil or Used Oil Filters set out, but not exceeding a number sufficient to hold sixteen (16) quarts, or two (2) Used Oil Filters along with the Non-Collection Notice.

7.11.3 Spillage. CONTRACTOR shall carry oil absorbent material on all vehicles providing Used Oil Collection Service and shall cleanup any Used Oil that spills during Collection, which has leaked from the Used Oil or Used Oil Filter Container, or which spills or leaks during the time the Used Oil or Used Oil Filter is in the Collection vehicle.

7.11.4 Used Oil and Used Oil Filter Containers. To the extent allowed by CONTRACTOR, residents may provide their own used oil and used filter containers. However, in the event CONTRACTOR allows the use of resident- provided containers, CONTRACTOR shall assume any and all liabilities related to the use of such resident-provided containers. Within three (3) Work Days of receipt of a verbal, written, or electronic request of CITY or a Service Recipient, CONTRACTOR shall, at CONTRACTOR’S sole cost and expense, provide the Residential Service Unit where the Service Recipient resides with Used Oil Containers and Used Oil Filter Containers in the number requested by the CITY or the Service Recipient but not exceeding a number sufficient to hold sixteen (16) quarts of Used Oil and two (2) Used Oil Filters.

7.11.4.1 At the time CONTRACTOR Collects Used Oil from a Service Recipient, where such Service Recipient utilizes a Used Oil Container or Used Oil Filter Container provided by the CONTRACTOR, CONTRACTOR shall, at

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CONTRACTOR’S sole cost and expense, leave at the premises one (1) Used Oil Container for each Used Oil Container Collected and one (1) Used Oil Filter Container for each Used Oil Filter Container Collected. CONTRACTOR shall keep the outside of all Used Oil and Used Oil Filter Containers clean and may re-use the containers until the condition of the container makes it inappropriate for re-use.

7.11.5 Segregation of Used Oil. CONTRACTOR shall keep all Used Oil and Used Oil Filters Collected pursuant to this Contract segregated from other materials.

7.11.6 Used Oil Processing. CONTRACTOR shall recycle all Used Oil Collected pursuant to this Contract to the extent feasible and shall properly dispose of all Used Oil and Used Oil Filters that are contaminated or otherwise cannot be recycled.

7.11.6.1 CONTRACTOR shall recycle the Used Oil only with persons who are authorized by the State of California to recycle oil. In the event the Used Oil or Used Oil Filters Collected pursuant to this Contract is contaminated to the extent that the Used Oil or Used Oil Filters require disposal as a Hazardous Waste, CONTRACTOR shall dispose of such Used Oil or Used Oil Filters, at CONTRACTOR’S own cost and expense in accordance with applicable state and federal law.

7.11.6.2 CONTRACTOR shall notify the Contract Administrator, either by fax or e-mail, of any contamination which renders the Used Oil unacceptable for recycling or which requires disposal of the Used Oil or Used Oil Filters as a Hazardous Waste.

7.12 Sharps Collection Service. The service will be governed by the following terms and conditions:

7.12.1 Collection. Within one week after request by Customer, CONTRACTOR will Collect any Sharps, discarded in Approved Sharps Containers, provided by the customer, at that Customer’s Residential premise without surcharge to the Customer or charge to the CITY. If CONTRACTOR delivers Approved Sharps Container(s) to a transfer station that CONTRACTOR owns or operates, CONTRACTOR will arrange for a medical waste hauler to pick up the sharps container(s), and stage or store the container(s) until the certified medical waste hauler collects the container(s).

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7.12.2 Customer Appointment. CONTRACTOR will follow the following procedure:

7.12.2.1 CONTRACTOR will receive the Customers’ telephone request for Sharps Collection Service during phone hours at the local, toll- free telephone number that CONTRACTOR must maintain.

7.12.2.2 If the Customer provides his or her telephone number to CONTRACTOR, on that call CONTRACTOR will schedule and Collect an Approved Sharps Container on Customer’s regularly Scheduled Collection Day between 6 a.m. and 3 p.m.

7.12.2.3 CONTRACTOR will arrange with Customer where Customer will set out the Approved Sharps Container, such as set on the door step or personally delivered by the Customer to the CONTRACTOR’S employee when the employee knocks on or rings the bell at the Customers front door. CONTRACTOR may not arrange with Customer to set out any Approved Sharps Container at the Customers curbside set-out site.

CONTRACTOR will record the time and place of regularly scheduled Collection on the Customer’s subscription form.

7.12.3 Non-Collection. CONTRACTOR is not required to Collect Sharps in the following events:

7.12.3.1 Customer discards materials other than Sharps, such as prescription drugs,

7.12.3.2 Customer does not discard Sharps in an Approved Sharps Container,

7.12.3.3 Sharps have spilled out of the Approved Sharps Container, or the Container is broken, split or otherwise damaged, or it is not sealed properly,

7.12.3.4 Customer does not set out the Approved Sharps Container at the place arranged between the Customer and the CONTRACTOR: for example, Customer sets out the container at the curb.

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In any of these events, CONTRACTOR will complete and leave a Non-Collection Notice securely attached to the discarded material container, describing the reason that the CONTRACTOR did not Collect the Approved Sharps Container.

7.12.4 Handling Sharps.

7.12.4.1 CONTRACTOR’S employee will record Collection thereof on his or her route sheet.

7.12.4.2 CONTRACTOR will transport Approved Sharps Container to CONTRACTOR’S transfer station located at 8642 Elder Creek Road, Sacramento, CA.

7.12.4.3 CONTRACTOR will arrange for disposal of Sharps in accordance with applicable law.

7.12.5 Customer Education and Outreach. CONTRACTOR will provide all Customers with a description of the Sharps Collection program and will include information about the Sharps Collection program in its education and outreach materials and activities subject to approval by the contract administrator.

7.12.6 Collection of Sharps at the Transfer Station. CONTRACTOR will accept delivery of all Sharps delivered by residents (as evidenced by written identification) to CONTRACTOR’S transfer station located at 8642 Elder Creek Road, Sacramento, CA, without charge to the Customer or CITY. CONTRACTOR will display samples of Approved Sharps Containers at the transfer station at a price no greater than its direct costs. CONTRACTOR will maintain a record of the delivery satisfactory to CITY, and instruct the resident how to discard the resident’s Approved Sharps Container at the transfer station, such as in a kiosk. ARTICLE 8. City Collection Service 8.01 City Collection Service. Except as set forth below, the CONTRACTOR shall provide City Collection Service to all City Service Units in the Service Area. This service will be governed by the following terms and conditions:

8.01.1 Hours of Collection. City Collection Service shall be provided, commencing no earlier than 4:00 a.m., provided the City Service Unit is located a minimum of one hundred (100) feet from residential property, and terminating no later than 9:00 p.m., Monday through Friday with service on Saturday and Sunday starting no earlier than 7:30 a.m. The hours of Collection may be extended due to

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extraordinary circumstances or conditions with the prior written consent of the Contract Administrator.

8.01.2 Accessibility. CONTRACTOR shall Collect all Garbage, Green Material or Recycling Carts or Garbage, Green Material or Recycling Bins that are readily accessible to the CONTRACTOR'S crew and vehicles and not blocked. However, CONTRACTOR shall provide “push services” as necessary during the provision of City Collection Services. Push services shall include, but not be limited to dismounting from the Collection vehicle, moving the Garbage, Green Material or Recycling Bins or Garbage, Green Material or Recycling Carts from their storage location for Collection and returning the Garbage, Green Material or Recycling Bins or Garbage, Green Material or Recycling Carts to their storage location.

8.01.3 Manner of Collection. The CONTRACTOR shall provide City Collection Service with as little disturbance as possible and shall leave any Garbage Bin or Cart, Green Material Bin or Cart or Recycling Bin or Cart at the same point it originally located without obstructing alleys, roadways, driveways, sidewalks or mail boxes.

8.01.4 Purchase and Distribution of Garbage, Green Material and Recycling Bins and Garbage, Green Material and Recycling Carts. The CONTRACTOR shall be responsible for the purchase and distribution of Garbage Bins, Garbage Carts, Green Material Bins, Green Material Carts, Recycling Bins and Recycling Carts to all City Service Units in the Service Area. The size of the Garbage, Green Material or Recycling Bin to be distributed and the frequency of Collection shall be in accordance with the requirements set forth in Exhibit 3 as may be amended from time-to-time.

8.01.5 Replacement of Garbage, Green Material and Recycling Bins, and Garbage, Green Material and Recycling Carts. Care shall be taken by CONTRACTOR’S employees to prevent damage to bins or carts by unnecessary rough treatment. However, any Garbage, Green Material or Recycling Bin or Garbage, Green Material or Recycling Cart damaged by the CONTRACTOR shall be replaced by the CONTRACTOR, at the CONTRACTOR'S expense, within five (5) Work Days at no cost or inconvenience to the Service Recipient.

8.01.5.1 Upon notification to the CONTRACTOR by the CITY that a Service Units’ bin or cart has been stolen or that it has been damaged beyond repair through no fault of the CONTRACTOR, the CONTRACTOR shall

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deliver a replacement Garbage, Green Material or Recycling Bin or Garbage, Green Material or Recycling Cart to such Service Unit within five (5) Work Days.

8.01.6 Repair of Garbage Bins and Carts, Green Material Bins and Carts, and Recycling Bins and Carts. CONTRACTOR shall be responsible for repair of bins and carts. Within five (5) Work Days of notification by the CITY of the need for such repairs, the CONTRACTOR shall repair the bin or cart or if necessary, remove the bin or cart for repairs and deliver a replacement Garbage Bin or Cart, Green Material Bin or Cart, or Recycling Bin or Cart to the City Service Unit. Garbage Bin or Cart, Green Material Bin or Cart and Recycling Bin or Cart repair shall also include the removal of graffiti from the bin or cart.

8.01.7 Garbage Bin and Cart, Green Material Bin and Cart, and Recycling Bin and Cart Exchange. Upon notification to the CONTRACTOR by the CITY that a change in the size, or number of the Garbage Bins, Green Material Bins or Recycling Bins, or a change in the number of Garbage, Green Material or Recycling Carts is required, the CONTRACTOR shall deliver such bins or carts to such City Service Unit within five (5) Work Days

8.01.8 Ownership of Garbage, Green Material and Recycling Bins. Ownership of Garbage, Green Material and Recycling Bins, including compost and/or organics bins distributed by the CONTRACTOR shall rest with the CONTRACTOR except in the case of the termination of the Contract prior to the expiration of the initial term or optional extension term due to the default of the CONTRACTOR. Under such circumstances, the Garbage, Green Material and Recycling Bins, including compost and/or organics bins shall, at no additional cost to the CITY, become the property of the CITY and CONTRACTOR shall submit to the Contract Administrator an inventory of Garbage, Green Material and Recycling Bins, including their locations, together with all proof of ownership, and shall take all steps necessary to transfer ownership to CITY.

8.01.9 Ownership of Garbage, Green Material and Recycling Carts. Ownership of Garbage, Green Material and Recycling Carts, including compost and/or organics carts in the possession of the CONTRACTOR during and after the term of this Contract shall rest with the CONTRACTOR. Ownership of Garbage, Green Material and Recycling Carts, including compost and/or organics carts in the possession of a City Service Unit during and after the term of this Contract shall rest with the CITY.

8.01.10 Annual Cleaning. Once each Contract Year, at no charge to the CITY, CONTRACTOR shall clean all Garbage Bins and Carts, Green

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Material Bins and Carts, and Recycling Bins and Carts at the City Service Unit’s premises or shall replace the dirty bins and carts with clean bins and carts and remove the dirty bins and carts for cleaning. 8.02 City Facility Recycling. CONTRACTOR will develop, implement and maintain an office and facility recycling program that includes organics recycling. CONTRACTOR will provide annual training to City staff and volunteers on the importance of recycling and provide instruction as to proper recycling techniques. This program will include purchase and provision of recycling stations, education material and signage. 8.03 City Solid Waste Collection Service. 8.03.1 Conditions of Service. The CONTRACTOR shall provide City Solid Waste Collection Service to all City Service Units in the Service Area whose City Solid Waste is properly containerized in Garbage Carts or Bins, where the Garbage Carts or Bins are accessible as set forth in Section 8.01.2. 8.03.2 Size and Frequency of Service. The size of the containers and the frequency of this service shall be provided as deemed necessary and as determined between the CONTRACTOR and the Contract Administrator, but such service shall be received no less than one (1) time per week with no exception for holiday(s) as set forth herein, except that Collection service scheduled to fall on a holiday may be rescheduled as determined between the Contract Administrator and the CONTRACTOR as long as the minimum frequency requirement is met. Service may be provided by Garbage Bin or Cart at the option of the CITY. 8.03.3 Disposal Facility. All City Solid Waste, Collected as a result of performing City Solid Waste Collection Service shall be transported to, and disposed of, at the Disposal Facility. In the event the Disposal Facility is closed on a Work Day, the CONTRACTOR shall transport and dispose of City Solid Waste at such other legally permitted disposal facility as is appropriate. Failure to comply with this provision shall result in the levy of an administrative charge as specified in Article 19 of this Contract and may result in the CONTRACTOR being in default under this Contract.

8.04 City Recycling Collection Service. This service will be governed by the following terms and conditions:

8.04.1 Conditions of Service. The CONTRACTOR shall provide City Recycling Collection Service to all City Service Units in the Service Area whose

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Recyclable Materials are properly containerized in Recycling Bins or Recycling Carts, except as set forth in Section 8.04.3 below, where the Recycling Bins or Carts are accessible as set forth in Section 8.01.2.

8.04.2 Size and Frequency of Service. The size of the containers and the frequency of this service shall be provided as deemed necessary and as determined between the CONTRACTOR and the Contract Administrator, but such service shall be received no less than one (1) time per week with no exception for holiday(s) as set forth herein, except that Collection service scheduled to fall on a holiday may be rescheduled as determined between the Contract Administrator and the CONTRACTOR as long as the minimum frequency requirement is met. Service may be provided by Bin or Cart at the option of the CITY.

8.04.3 Recycling - Improper Procedure. Except as set forth below, the CONTRACTOR shall not be required to Collect Recyclable Materials if the Service Recipient does not segregate the Recyclable Materials from City Solid Waste. If Recyclable Materials are contaminated through commingling with City Solid Waste, the CONTRACTOR shall, if practical, separate the City Solid Waste from the Recyclable Materials. The Recyclable Materials shall then be Collected and the City Solid Waste shall be left in the Recycling Bin or Cart along with a Non-Collection Notice of why the City Solid Waste is not considered a Recyclable Material. However, in the event the Recyclable Materials and City Solid Waste are commingled to the extent that they cannot easily be separated by the CONTRACTOR or the nature of the City Solid Waste renders the entire Recycling Bin or Cart contaminated, the CONTRACTOR will leave the Recycling Bin or Cart un-emptied along with a Non- Collection Notice which contains instructions on the proper procedures for setting out Recyclable Materials. Upon notification from the Contract Administrator, CONTRACTOR shall Collect the contaminated Recyclable Materials as part of the next regularly scheduled City Solid Waste Collection and dispose of it at the Disposal Facility.

8.04.4 Material Recovery Facility. All Recyclable Materials Collected as a result of performing Recycling Collection Services shall be transferred and/or delivered to the Material Recovery Facility. Failure to comply with this provision shall result in the levy of an administrative charge as specified in Article 19 of this Contract and may result in the CONTRACTOR being in default under this Contract.

8.05 Green Material Collection Service. This service will be governed by the following terms and conditions:

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8.05.1 Conditions of Service. The CONTRACTOR shall provide Green Material Collection Service to all City Service Units in the Service Area whose Green Material is properly containerized in Green Material Carts or Bins, where the Green Material Carts or Bins are accessible as set forth in Section 8.01.2.

8.05.2 Size and Frequency of Service. The size of the containers and the frequency of this service shall be provided as deemed necessary and as determined between the CONTRACTOR and the Contract Administrator, but such service shall be received no less than one (1) time per week with no exception for holiday(s) as set forth herein, except that Collection service scheduled to fall on a holiday may be rescheduled as determined between the Contract Administrator and the CONTRACTOR as long as the minimum frequency requirement is met. Service may be provided by Bin or Cart at the option of the CITY.

8.05.3 Green Material Processing Facility. CONTRACTOR shall deliver all Collected Green Material to a fully permitted Green Material Processing Facility, a fully permitted Transfer station, or other properly permitted facility. CONTRACTOR may deliver Green Material, for diversion, to a properly permitted facility for use as Alternative Daily Cover (ADC) through December 31, 2019 or through such date as determined by CalRecycle. All expenses related to Green Material processing and marketing will be the sole responsibility of CONTRACTOR. When CalRecycle determines that Green Material for use as ADC does not count towards diversion and in the event that Green Material for use as fuel for Cogeneration is not an option, the CITY and CONTRACTOR will explore all processing options and if it is determined that increased processing costs are unavoidable, the CITY and CONTRACTOR will negotiate a solution to cover the additional costs without increasing customer rates.

8.06 CITY Container Service. CONTRACTOR shall provide Collection, transporting and disposal or processing service to up to thirty (30) public solid waste or recycling containers placed by the CITY during the term of this Contract. Frequency of Collection may be designated by the CITY, not to exceed seven (7) times per week per container. CONTRACTOR shall provide this service at no additional cost to CITY.

8.07 CITY Sponsored and Non-Profit Events. CONTRACTOR shall provide solid waste collection and disposal services, recycling collection and processing services and portable toilets at up to six 6) CITY sponsored or supported as requested by CITY. Such services shall be provided in such a manner that all solid

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waste, recycling and portable toilet needs of the event are adequately and properly provided for by CONTRACTOR at no cost of any kind to the CITY or the CITY- supported sponsor of the event.

8.08 Large Item Collection Service. Large Item Collection Service shall be governed by the provisions of Section 7.10 of Article 7 of this Collection Service Agreement.

8.09 Household Hazardous Waste (HHW) Collection Events. The CONTRACTOR shall be responsible for promoting, managing, staffing, and operating up to three (3) Household Hazardous Waste drop-off collection events per calendar year. The City shall contribute a maximum of $75,000 annually to assist with the funding of these events, and the CONTRACTOR shall be responsible for all additional costs.

8.09.1 CONTRACTOR shall submit the annual HHW Collection Event plan for City approval by October 31 for HHW Collection Events to be provided in the subsequent Contract Year. ARTICLE 9. Other Collection Service 9.01 Debris Collection Service.

9.01.1 Conditions of Service. CONTRACTOR shall provide Debris Collection Service within the Service Area as requested by the CITY in conjunction with Large Item Collection Service. In the event the CONTRACTOR is notified by phone or in writing by the CITY of the location of abandoned debris, CONTRACTOR shall remove such item within forty-eight (48) hours of receipt of such notification.

9.01.2 Starting on January 1, 2016 the CONTRACTOR shall provide six hundred (600) cubic yards per year of illegal dumping cleanup service at no additional charge to the City. The CONTRACTOR shall provide illegal dumping cleanup service in excess of six hundred (600) cubic yards at the direction of the Contract Administrator, for a charge to the CITY of $5.02 per cubic yard. The cubic yard charge to the CITY for illegal dumping cleanup service in excess of the six hundred (600) cubic yard annual limit shall be adjusted annually in accordance with the percentage amounts identified in Section 4.02 (and shown in Exhibit 1).

9.02 Special Clean-Up Service.

9.02.1 CONTRACTOR shall, in response to the written request of the Contract Administrator, deliver and collect Roll-Off Containers for use in special clean-

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up programs. Each clean-up event shall consist of a single collection day beginning at 6:00 a.m. and ending at 6:00 p.m. The Contract Administrator shall notify CONTRACTOR in writing not less than five (5) calendar days prior to the date of the service. The notice to CONTRACTOR shall specify the date of delivery and Collection of the Roll-Off Containers, the location(s) for delivery, and the number of and size of the Roll-Off Containers to be delivered. As part of this service, CONTRACTOR shall provide on-site supervision at all times the Roll-Off Containers are available for Special Clean-Up Service. At such time as the Roll-Off Container is full, but not later than the end of the Special Clean-Up Service day, CONTRACTOR shall transport and deliver the Collected materials to the Disposal Facility, the Materials Recovery Facility, or such other facility as is appropriate for the disposition of the materials and approved by the Contract Administrator.

9.02.2 With the prior written consent of the Contract Administrator, CONTRACTOR may provide for the Collection of materials at a Special Clean-up Service event in a vehicle or container other than a Roll-Off Container. However, in the event the CONTRACTOR elects to utilize this alternative Collection process, CONTRACTOR is responsible for obtaining documentation of the weight of the materials Collected, diverted and disposed in a manner that is acceptable to the CITY.

9.02.3 If requested by CITY, CONTRACTOR shall Collect and Dispose of material of unknown origin that has been disposed of in the Service Area. Such collection of material shall fall within the scope of Special Clean-up Service and the associated cubic yard limitations. In the event the CITY requests this service after the CONTRACTOR has met the annual six hundred (600) cubic yard limitation, CONTRACTOR and CITY shall agree on a rate for such service ARTICLE 10. Collection Routes 10.01 Service Routes. Thirty (30) days prior to commencement of Collection Services, the CONTRACTOR shall provide the CITY with maps precisely defining Collection routes, together with the days and the times at which Collection shall regularly commence.

10.02 Service Route Changes. The CONTRACTOR shall submit to the CITY, in writing, any proposed route change (including maps thereof) not less than thirty (30) calendar days prior to the proposed date of implementation. The CONTRACTOR shall not implement any route changes without the prior review of the Contract Administrator. If the change will change the Collection day for a Service Recipient,

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the CONTRACTOR shall notify those Service Recipients in writing of route changes not less than thirty (30) days before the proposed date of implementation.

10.02.1 Collection Route Audits. The CITY reserves the right to conduct audits of CONTRACTOR’S Collection routes. The CONTRACTOR shall cooperate with the CITY in connection therewith, including permitting CITY employees or agents, designated by the Contract Administrator, to ride in the Collection vehicles in order to conduct the audits. The CONTRACTOR shall have no responsibility or liability for the salary, wages, benefits or worker compensation claims of any person designated by the Contract Administrator to conduct such audits. ARTICLE 11. Minimum Performance and Diversion Standards 11.01 Performance and Financial Review. On a periodic annual basis, CITY may contract with a solid waste consultant for an independent financial and performance review. The primary objectives of the review are to ensure that annual rate adjustments have been correctly calculated, that service fees and franchise fees have been correctly calculated and paid, that diversion percentages have been properly calculated and that the CONTRACTOR is delivering services in accordance with the performance, reporting and diversion requirements of the Contract. CONTRACTOR agrees that this review is in the best interest of the CITY and CONTRACTOR and shall cooperate with CITY’S consultant during the provision of this review by providing access to all requested records and data in a timely manner.

11.01.1 CITY and CONTRACTOR shall be responsible for sharing the cost of the first two (2) performance and financial reviews requested by CITY. However, CONTRACTORS share of the cost of each of the first two (2) reviews shall be limited to the lesser of one half (1/2) of the cost of the review or ten thousand dollars ($10,000). ARTICLE 12. Collection Equipment 12.01 Equipment Specifications.

12.01.1 General Provisions. All equipment used by CONTRACTOR in the performance of services under this Contract shall be of a high quality. The vehicles shall be designed and operated so as to prevent Collected materials from escaping from the vehicles. Hoppers shall be closed on top and on all sides with screening material to prevent Collected materials from leaking, blowing or falling from the vehicles. All trucks and containers shall be watertight, to the extent

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consistent with the original equipment manufacturers (OEM) specifications, and shall be operated so that liquids do not spill during Collection or in transit.

12.01.2 All Collection Service vehicles utilized by CONTRACTOR pursuant to this Contract shall provide fully-automated Residential and City Collection Service except where such service is not feasible because of topographic or other physical factors. Where fully-automated Residential and City Collection Service is not feasible, CONTRACTOR shall consult with the Contract Administrator regarding the Residential or City Collection Service equipment to be utilized.

12.01.3 Vehicle Emission Standards. As required by law, CONTRACTOR shall convert and/or retrofit its Collection vehicles and/or fuel use by utilizing the most cost-effective means to reduce air pollutant emissions and be in full compliance with local, State and federal clean air requirements that were adopted or proposed to be adopted, including, but not limited to, the proposed California Air Resources Board Heavy Duty Engine Standards to be contained in CCR Title 13, Section 2020 et seq.; and the Federal EPA’s Highway Diesel Fuel Sulfur regulations.

12.01.3.1 Collection Vehicles. CONTRACTOR shall replace entire inventory of collection vehicles servicing City with Compressed Natural Gas (CNG) vehicles by April 1, 2018 with 50% of fleet replaced in 2017 and the remainder replaced by April 1. 2018.

12.01.3.2 Beginning April 1, 2018, CONTRACTOR shall not use any Collection vehicle that is more than ten (10) years old or has more than 250,000 miles unless such vehicle is a Rebuilt Vehicle.

12.01.4 Registration. All vehicles used by CONTRACTOR in providing Collection Services under this Contract, except those vehicles used solely on CONTRACTORS premises, are to be registered with the California Department of Motor Vehicles.

12.01.5 Safety Markings. All Collection equipment used by COLLECTOR shall have appropriate safety markings including, but not limited to, highway lighting, flashing and warning lights, clearance lights, and warning flags. All such safety markings shall be subject to the approval of the CITY and shall be in accordance with the requirements of the California Vehicle Code, as may be amended from time to time.

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12.01.6 Vehicle Signage and Painting. Collection vehicles shall be painted and numbered consecutively without repetition and shall have the CONTRACTOR'S name CONTRACTOR’S customer service telephone number, and the number of the vehicle painted in letters of contrasting color, at least four (4) inches high, on each side and the rear of each vehicle. No advertising shall be permitted other than the name of the CONTRACTOR except promotional advertisement of the Recyclable Materials and Green Material programs. CONTRACTOR shall inspect all vehicles on an annual basis and repaint all vehicles (including vehicles striping) during the term of this Contract on a frequency as necessary to maintain a positive public image as reasonably determined by the Contract Administrator. If requested by the CITY, CONTRACTOR shall display the name of the City and City logo on the Collection vehicles.

12.01.7 Bin Signage, Painting, and Cleaning. All metal bins of any service type furnished by the CONTRACTOR shall be either painted or galvanized. All metal or plastic bins shall display the CONTRACTOR’S name, CONTRACTOR’S customer service telephone number, and the number of the bin and shall be kept in a clean and sanitary condition. Such bins shall be steam cleaned by the CONTRACTOR as frequently as necessary so as to maintain them in a sanitary condition. At a minimum, CONTRACTOR shall steam clean the bins once per year at CONTRACTOR’S expense. Bins will be subject to periodic, unscheduled inspections by the CITY and determination as to sanitary condition shall be made by the CITY.

12.02 Collection Vehicle Noise Level. All Collection operations shall be conducted as quietly as possible and shall conform to applicable Federal, State, County and CITY noise level regulations, including the requirement of Chapter 34, Article III, Section 34-93 of the CITY’S Municipal Code (noise ordinance). In the event of repeat occurrences of noise levels in excess of the limit specified in the CITY’S municipal code, CONTRACTOR shall pay Liquidated Damages in accordance with Article 19.

12.03 Vehicle Registration, Licensing and Inspection: No later than February 1, 2011, and no later than November 1 of each subsequent Contract Year, CONTRACTOR shall submit documentation to the Contract Administrator to verify that each of the CONTRACTOR’S Collection vehicles is in compliance with all registration, licensing and inspection requirements of the California Highway Patrol, the California Department of Motor Vehicles, and any other applicable laws or regulations. CONTRACTOR shall not use any vehicle to perform Collection Services that is not in compliance with applicable registration, licensing and inspection requirements.

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12.04 Equipment Maintenance. CONTRACTOR shall maintain Collection equipment in a clean condition and in good repair at all times. All parts and systems of the Collection equipment shall operate properly and be maintained in a condition satisfactory to CITY. CONTRACTOR shall wash all Collection vehicles at least once a week.

12.05 Maintenance Log. CONTRACTOR shall maintain a maintenance log for all Collection vehicles. The log shall at all times be accessible to CITY by physical inspection upon request of Contract Administrator, and shall show, at a minimum, each vehicles CONTRACTOR assigned identification number, date purchased or leased, dates of performance of routine maintenance, dates of performance of any additional maintenance, and description of additional maintenance performed.

12.05.1 Equipment Inventory. On or before January 1, 2011, CONTRACTOR shall provide to CITY an inventory of Collection vehicles and major equipment used by CONTRACTOR for Collection or transportation and performance of services under this Contract. The inventory shall indicate each Collection vehicle by CONTRACTOR assigned identification number, DMV license number, the age of the chassis and body, type of fuel used, the type and capacity of each vehicle, the number of vehicles by type, the date of acquisition, the decibel rating and the maintenance and rebuild status. Annually at the request of the Contract Administrator, CONTRACTOR shall submit, either by Fax or e-mail, an updated inventory. Each inventory shall also include the tare weight of each vehicle as determined by weighing at a public scale and not at a disposal or other facility scale used by CONTRACTOR. Each vehicle inventory shall be accompanied by a certification signed by CONTRACTOR that all Collection vehicles meet the requirements of this Contract.

12.05.2 Reserve Equipment. The CONTRACTOR shall have available to it, at all times, reserve Collection equipment which can be put into service and operation within one (1) hour of any breakdown. Such reserve equipment shall correspond in size and capacity to the equipment used by the CONTRACTOR to perform the contractual duties. ARTICLE 13. Contractor’s Office 13.01 CONTRACTOR’S Office. The CONTRACTOR shall maintain an office where complaints can be received and which provides toll-free telephone access for customers living in the City of Citrus Heights. Such office shall be equipped with sufficient telephones that all Collection Service related calls received during normal

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business hours are answered by an employee within five (5) rings, and shall have responsible persons in charge during Collection hours and shall be open during such normal business hours, 7:00 a.m. to 5:00 p.m. on all Work Days and on those Saturdays when Collections Services are required as a result of the holiday Collection policy set forth in Section 3.07 of this Contract. The CONTRACTOR shall provide either a telephone answering service or mechanical device to receive Service Recipient inquiries during those times when the office is closed. Calls received after normal business hours shall be addressed the next Work Day morning.

13.01.1 Emergency Contact. The CONTRACTOR shall provide the Contract Administrator with an emergency phone number where the CONTRACTOR can be reached outside of the required office hours.

13.01.2 Multilingual. CONTRACTOR shall at all times maintain the capability of responding to telephone calls in English, Spanish and Russian CONTRACTOR shall at all times maintain the capability or responding to telephone calls from deaf and hearing impaired individuals.

13.01.3 Service Recipient Calls. During office hours, CONTRACTOR shall maintain a telephone answering system capable of accepting at least fifteen (15) incoming calls at one time. CONTRACTOR shall record all calls including any inquiries, service requests and complaints into a customer service log.

13.01.4 All incoming calls will be answered within 5 rings. Any call “on-hold” in excess of 1.5 minutes shall have the option to remain “on-hold” or to be switched to a message center where Service Recipient can leave a message. CONTRACTOR’S customer service representative shall return Service Recipient calls. For all messages left before 3:00 p.m., all “call backs” shall be attempted a minimum of one time prior to 6:00 p.m. on the day of the call. For messages left after 3:00 p.m., all “call backs” shall be attempted a minimum of one time prior to noon the next Work Day. CONTRACTOR shall make minimum of three (3) attempts within twenty-four hours of the receipt of the call. If CONTRACTOR is unable to reach the Service Recipient on the next Work Day, the CONTRACTOR shall send a postcard to the Service Recipient on the second Work Day after the call was received, indicating that the CONTRACTOR has attempted to return the call. ARTICLE 14. Other Services 14.01 Public Outreach and Education Services. CONTRACTOR, at their own expense, shall prepare, submit and implement an annual (calendar year) Public Education and Outreach Program beyond the City’s Public Education and Outreach

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Program. CONTRACTOR will maintain, in its local staff, a Community Outreach Manager in order to achieve an effective public education and outreach program tailored to meet the needs of the City of Citrus Heights. Public Outreach and Education Services will include, but not limited to, regular attendance at REACH and Area Association meetings, working with School Districts within the City of Citrus Heights, active participation in City sponsored events, development of monthly content for the City’s website. a and enhanced educational and outreach materials. The initial proposed action plan must be submitted for CITY approval no later than February 1, 2011 for the Contract Year 2011. Thereafter, beginning September 30, 2011, and annually thereafter, the proposed action plan must be submitted to the CITY for approval no later than September 30th for the following Contract Year. The program must include a minimum of four (4) campaigns per calendar year, designed to increase diversion and resident participation. Campaigns should target certain Recyclable Materials or “problem” areas of the CONTRACTOR’S Service Area where improvements can be maximized. Targets of outreach should be based on local trends and recycling patterns based on information obtained by both the Contract Administrator and CONTRACTOR staff.

14.01.1 CONTRACTOR will expend their “3R” recycling education program to all schools in Citrus Heights each year that want to participate and will sponsor three (3) $1000 scholarships each year for high school seniors interested in sustainability education.

14.01.2 CONTRACTOR will support schools in developing, implementing and maintaining sustainable recycling programs and will provide an outline of the proposed efforts within 30 days of the execution of the 2016 amended contract.

14.01.3 In addition to existing customer service and education activities set forth within this agreement, Contractor will collaborate with City staff and provide content for City-sponsored education media including, but not limited to paper, electronic and social media.

14.01.4 Contractor will provide education and outreach regarding programs and services to a minimum of 10 community organizations and/or community events and public venues as mutually agreed between the Contractor and the City during the annual outreach and education planning process.

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14.02 Customer Satisfaction. CONTRACTOR will conduct an annual satisfaction survey via the 10 REACH Neighborhood Associations and/or other residential community groups. Survey content and distribution process shall be mutually agreed upon between CONTRACTOR and Contract Administrator.

14.03 Annual Collection Service Notice. Each year during the term of this Contract, the CONTRACTOR shall publish and distribute a notice to all Residential Service Units regarding the Residential Collection Service programs. The notice shall contain at a minimum; definitions of the materials to be Collected, procedures for setting out the materials, maps of the Service Area indicating the days when Residential Solid Waste Collection Service, Large Item Collection Service, Residential Used Oil Collection Service, Residential Recycling Collection Service, Green Material Collection Service, Sharps Collection Service and HHW Collection Event service will be provided, and the CONTRACTOR customer service phone number. The notice shall be provided in English, and other languages as directed by the CITY and shall be distributed by the CONTRACTOR no later than December 1, 2012 and annually thereafter during the term of this Contract.

14.04 Programs and Services. CONTRACTOR shall offer and provide free compost for residential use at a location mutually agreed upon between CONTRACTOR and Contract Administrator. Additionally, CONTRACTOR shall offer Citrus Heights residents up to 3 yards of compost per year to be picked up by resident at Elder Creek Transfer Station. CONTRACTOR shall incorporate pilot organics recycling and/or additional composting education into the annual education and outreach program in addition to the 4 campaigns included in Section 14.01 above.

14.05 CONTRACTOR shall pick up and properly dispose of deceased wildlife in CITY right-of-way the same day of receipt of Service Request from CITY if service request received by CONTRACTOR before 1:00 PM. Service requests received by CONTRACTOR after 1:00 PM shall be picked up no later than 5:00 PM the following business day.

14.06 CONTRACTOR shall provide two new fully equipped and air conditioned utility trucks for CITY use during the contract term. Trucks shall be owned by CITY. Utility trucks shall be purchased and equipped based on CITY approved specifications at a total cost not to exceed $100,000 per truck. CONTRACTOR shall be responsible for all repairs and vehicle maintenance for trucks at no cost to CITY for the life of the Contract. The first new vehicle shall be purchased prior to January 1, 2018 and the second shall be purchased no later than calendar year 2023.

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14.07 CONTRACTOR shall provide additional services and programs as requested by CITY at a price to be mutually agreed upon between the CONTRACTOR and the Contract Administrator. In the event the CONTRACTOR and the Contract Administrator cannot reach a mutually agreed upon price for the requested service or program, CITY shall have the right to procure the service of other vendors or contractors to provide the requested service.

14.08 News Media Relations. CONTRACTOR shall notify the Contract Administrator by fax, e-mail or phone of all requests for news media interviews related to the Collection Services program within twenty-four (24) hours of CONTRACTOR’S receipt of the request. Before responding to any inquiries involving controversial issues or any issues likely to affect participation or Service Recipient perception of services, CONTRACTOR will discuss CONTRACTOR’S proposed response with the Contract Administrator.

14.08.1 Copies of draft news releases or proposed trade journal articles shall be submitted to CITY for prior review and approval at least five (5) Work Days in advance of release, except where CONTRACTOR is required by any law or regulation to submit materials to any regulatory agency in a shorter period of time, in which case CONTRACTOR shall submit such materials to CITY simultaneously with CONTRACTOR’S submittal to such regulatory agency.

14.08.2 Copies of articles resulting from media interviews or news releases shall be provided to the CITY within five (5) Work Days after publication. ARTICLE 15. Emergency Service Provisions 15.01 Emergency Services. In the event of a tornado, major storm, earthquake, flooding, fire, natural disaster, or other such event, the Contract Administrator may grant the CONTRACTOR a variance from regular routes and schedules. As soon as practicable after such event, the CONTRACTOR shall advise the Contract Administrator when it is anticipated that normal routes and schedules can be resumed. The Contract Administrator shall make an effort through the local news media to inform the public when regular services may be resumed. The cleanup from some events may require that the CONTRACTOR hire additional equipment, employ additional personnel, or work existing personnel on overtime hours to clean debris resulting from the event. The CONTRACTOR shall receive additional compensation from the CITY, above the normal compensation contained in this

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Contract, to cover the costs of rental equipment, additional personnel, overtime hours and other documented expenses based on the rates set forth in Forms 2 and 3 of Exhibit 1 to this Contract provided the CONTRACTOR has first secured written authorization and approval from the CITY through the Contract Administrator. ARTICLE 16. Record Keeping and Reporting Requirements 16.01 Record Keeping.

16.01.1 Accounting Records. CONTRACTOR shall maintain full, complete and separate financial, statistical and accounting records, pertaining to cash, billing, and provisions of all Collection Services, prepared on an accrual basis in accordance with generally accepted accounting principles. Such records shall be subject to audit, copy, and inspection. Gross revenues derived from provision of the Collection Services, whether such services are performed by the CONTRACTOR or by a subcontractor or subcontractors, shall be recorded as revenues in the accounts of the CONTRACTOR. CONTRACTOR shall maintain and preserve all cash, billing and disposal records for a period of not less than five (5) years following the close of each of the CONTRACTOR'S fiscal years.

16.01.2 Contract Materials Records. CONTRACTOR shall maintain records of the quantities of (i) Residential Waste and City Solid Waste Collected and disposed under the terms of this Contract, (ii) Recyclable Materials, by type, Collected, purchased, processed, sold, donated or given for no compensation, and residue disposed. 16.01.3 Other Records. CONTRACTOR shall maintain all other records reasonably related to provision of Collection Services, whether or not specified in this Article 16 or elsewhere in the Contract.

16.02 Monthly Large Item Report. Starting February 15, 2011, and on a monthly basis thereafter, the CONTRACTOR shall submit a monthly Large Item Status Report to the CITY for the previous month. The monthly status report shall include, but is not limited to, the following: 16.02.1 The total tonnage of Large Item debris collected during the previous month and year-to-date. 16.02.2 The total tonnage of illegal dumping cleanup service provided the previous month and year-to-date. 16.02.3 The total number of Large Item debris piles collected during the previous month and year-to-date.

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16.02.4 The total tonnage of Large Item debris diverted from landfill disposal during the previous month and year-to-date. 16.02.5 The total number of “courtesy tags” distributed by the CONTRACTOR during the previous month and year-to-date. 16.02.6 The total number of Large Item debris piles encountered by the CONTRACTOR that either exceed the volume requirements or contained exempt waste during the previous month and year-to-date. 16.02.7 Any other data or information with respect to the Large Item Collection Program as requested by the Contract Administrator. 16.03 Annual Reporting. 16.03.1 General. Annual reports shall be submitted no later than April 1 for the previous Contract Year. Annual reports shall be submitted in hard copy, and shall be provided electronically using a software program acceptable to the CITY. 16.03.2 CalRecycle Reports. CONTRACTOR shall assist, as requested, in preparing annual reports required by the California Department of Resources, Recycling and Recovery (CalRecycle), for submittal to the CITY for review and comment, and CONTRACTOR revision as needed. CITY shall submit the final report to the state. 16.03.3 CITY Reports. Annual reports to the CITY shall include:

16.03.3.1 Public education and information activities undertaken during the year, including distribution of bill inserts, collection notification tags, community information and events, tours and other activities related to the provision of Collection Services. This report shall discuss the impact of these activities on Recycling program participation and include amounts Collected from Residential and City Service Units. 16.03.3.2 An analysis of any Recycling and Green Material Collection, processing and marketing issues or conditions (such as participation, setouts, contamination, etc.) and possible solutions, discussed separately for Residential and CITY programs. 16.04 Additional City Report Information to be Submitted as Requested. 16.04.1.1 An electronic listing of all Residential Service Units and City Service Units including service recipient name, and address, billing

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name and address if different, and container size by service type. This report shall be in a format acceptable to CITY. 16.04.2 CITY may also require that the annual reports include some or all of the following information and data: 16.04.3 Solid Waste Data. . The number of Residential and City Service Units; and . The number of Garbage Bins and Carts distributed by size and Service Unit type. 16.04.4 Recycling Data. . Gross tons Collected daily on average by material type by route for Residential and City Recycling Collection Service; . The average participation rates by quarter, relative to the total number of Service Units by Service Unit type, and by material type; . Quarterly totals of Recyclable Materials processed and sold including facility name and location, average price received per ton and total recycling revenue received for the quarter; . Quantities, if any, by material type, donated or otherwise disbursed without compensation; . Number of Recycling Bins and Carts distributed by size and Service Unit type; and . Quarterly totals and location for residue disposed. 16.04.5 Green Material Data. . Average daily gross tons Collected by route; . Average daily number of set-outs by route; . Average participation rates relative to the total number of Service Units in terms of weekly set-out counts; . Number of Green Material Carts distributed by size and Service Unit type; and . Totals and location for residue disposed. 16.04.6 Customer Service Log. A copy of the customer service log, including a summary of the type and number of complaints and their resolution.

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Copies of a written record of all calls related to missed pickups and responses to such calls. 16.04.6.1 A summary narrative of problems encountered with Collection and processing activities and actions taken. Indicate type and number of Non-Collection Notices left at Service Recipient locations. Indicate instances of property damage or injury, significant changes in operation, market factors, publicity conducted, needs for publicity. 16.05 Diversion Data. On or before March 1, 2012, and annually thereafter during the term of this Contract, CONTRACTOR shall deliver to CITY diversion data for the specific services performed under this Contract in the format specified by the CITY. 16.06 Bin and Cart Inventory. An updated complete inventory of Bins and Carts by type and size. 16.07 Additional Reporting. The CONTRACTOR shall furnish the CITY with any additional reports as may reasonably be required, such reports to be prepared within a reasonable time following the reporting period. ARTICLE 17. Nondiscrimination 17.01 Nondiscrimination. In the performance of all work and services under this Contract, CONTRACTOR shall not discriminate against any person on the basis of such person’s race, sex, color, national origin, religion, marital status or sexual orientation. CONTRACTOR shall comply with all applicable local, state and federal laws and regulations regarding nondiscrimination, including those prohibiting discrimination in employment. ARTICLE 18. Service Inquiries and Complaints 18.01 CONTRACTOR’S Customer Service. All service inquiries and complaints shall be directed to the CONTRACTOR. A representative of the CONTRACTOR shall be available to receive the complaints during normal business hours. All service complaints will be handled by the CONTRACTOR in a prompt and efficient manner. In the case of a dispute between the CONTRACTOR and a Service Recipient, the matter will be reviewed and a decision made by the Contract Administrator

18.01.1 The CONTRACTOR will utilize the Customer Service Log to maintain a record of all inquiries and complaints in a manner prescribed by the

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CITY.

18.01.2 For those complaints related to missed Collections that are received by 3:00 p.m. on a Work Day, the CONTRACTOR will return to the Service Unit address and Collect the missed materials before leaving the Service Area for the day. For those complaints related to missed Collections that are received after 3:00 p.m. on a Work Day, the CONTRACTOR shall have until the end of the following Work Day to resolve the complaint. For those complaints related to repair or replacement of carts or bins, the appropriate Sections of this Contract shall apply

18.01.3 CONTRACTOR agrees that it is in the best interest of the CITY that all Residential Waste, City Waste and Recyclable Materials be Collected on the scheduled Collection day. Accordingly, missed Collections will normally be Collected as set forth above regardless of the reason that the Collection was missed. However, in the event a Service Recipient requests missed Collection service more than two (2) times in any consecutive two (2) month period the Contract Administrator will work with the CONTRACTOR to determine an appropriate resolution to that situation. In the event the CONTRACTOR believes any complaint to be without merit, CONTRACTOR shall notify the Contract Administrator, either by Fax or e-mail. The Contract Administrator will investigate all disputed complaints and render a final decision. ARTICLE 19. Quality of Performance of Contractor 19.01 Intent. CONTRACTOR acknowledges and agrees that one of CITY’S primary goals in entering into this Contract is to ensure that the Collection Services are of the highest caliber, that Service Recipient satisfaction remains at the highest level, that maximum diversion levels are achieved, and that materials Collected are put to the highest and best use to the extent possible.

19.02 CONTRACTOR shall make every reasonable effort to maintain quality and continuity of staff assigned to perform the services required under this contract. In addition to the provisions set forth in this contract regarding changes in personnel, CONTRACTOR shall notify CITY of any changes in CONTRACTOR’s staff positions of route supervisor, community relations manager, municipal services manager and recycling coordinator and shall obtain CITY approval of the designated staff member prior to hire and/or assignment to CITY.

19.02.1 Notwithstanding CITY approval of CONTRACTOR personnel, CONTRACTOR shall not be relieved from any liability resulting from services to be provided under this contract, nor shall CONTRACTOR be relieved from

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its obligation to ensure that its personnel maintain all requisite certifications, licenses, and the like, and CONTRACTOR shall ensure that its personnel at all times fully comply with the law.

19.03 Route Supervisor. CONTRACTOR shall assign a qualified supervisor to be in charge of the Collection Service within the Service Area. CONTRACTOR shall provide CITY with opportunity to interview and accept any new candidates for Route Supervisor. The supervisor shall be physically located in the Service Area and available to the Contract Administrator and CITY staff through the use of telecommunication equipment at all times that CONTRACTOR is providing Collection Services in the Service area. In the event the supervisor is unavailable due to illness or vacation, CONTRACTOR shall designate an acceptable substitute who shall be available and who has the authority to act in the same capacity as the supervisor.

19.04 Contract Manager. CONTRACTOR shall designate a Contract Manager and shall provide the name of that person in writing to the CITY no later than December 1, 2010, and annually by January 1st of each subsequent Contract Year of this Contract and any other time the person in that position changes. CONTRACTOR shall provide CITY with opportunity to interview and accept any new candidates for Route Supervisor. The Contract Manager shall be available to the CITY through the use of telecommunications equipment at all times that CONTRACTOR is providing Collection Services in the Service Area. The Contract Manager shall provide the CITY with an emergency phone number where the Contract Manager can be reached outside of normal business hours.

19.05 Administrative Charges. It shall be the duty of CONTRACTOR to perform services under this Contract in such a manner as to implement the goals set forth in Section 19.01 above. In the event CONTRACTOR fails to perform the services set forth in this Contract, CITY may assess an administrative charge against CONTRACTOR in the following amounts: a. Failure or neglect to resolve each complaint within the $500.00 per incident per time set forth in this Contract. Service Recipient b. Failure to clean up spillage or litter caused by $300.00 per incident per CONTRACTOR. location. c. Failure to repair damage to customer property caused $500.00 per incident per by CONTRACTOR or its personnel. location.

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d. Failure to maintain equipment in a clean, safe, and $500.00 per incident per sanitary manner. day. e. Failure to have a vehicle operator properly licensed. $500.00 per incident per day. f. Failure to maintain office hours as required by this $500.00 per incident per Contract. day. g. Failure to maintain or timely submit to CITY all $500.00 per incident per payments, documents and reports required under the day. provisions of this Contract. h. Failure to properly cover materials in Collection $500.00 per incident. vehicles. i. Failure to display CONTRACTOR’S name and $500.00 per incident per customer service phone number on Collection day. vehicles. j. Failure to comply with the hours of operation as $500.00 per incident per required by this Contract. day. k. Failure or neglect to complete at least ninety percent $1,000.00 for each route (90%) of each route on the regular scheduled not completed. Collection Service Work Day. l. Changing routes without proper notification to the $500.00 per incident per Contract Administrator. day. m. Commingling Residential or City Solid Waste with $1,000.00 per incident. Recyclable Materials during collection. n. Commingling of materials Collected inside and outside $1,000.00 per incident. the City of Citrus Heights during collection. o. Failure to repair or replace damaged carts or bins $100.00 per incident per within the time required by this Contract. day. p. Failure to deliver or exchange carts or bins within the $100.00 per incident per time required by this Contract. day.

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q. Failure to have CONTRACTOR personnel in proper $100.00 per incident per uniform. day. r. Disposal of Recyclable Materials, except for residual $500.00 per occurrence materials, in the Disposal Facility without first obtaining the required permission of the CITY. s. Failure to provide required communications $100.00 per incident per equipment. day. t. Failure to return Carts to an upright position after $100.00 per incident per Collection day. u. Failure to clean up street residue from Large Item $100.00 per incident per Collection Service day. v. Failure to transfer and/or deliver any Collected $5,000 first failure materials to the Disposal Facility, Materials Recovery Facility, or Green Material Processing Facility, as $25,000 each subsequent appropriate, except as otherwise expressly provided in failure this Contract. w. Delivery to the Disposal Facility of any Residential $5,000 first delivery Solid Waste Collected outside of the City boundaries of Citrus Heights commingled with that Collected as $25,000 each subsequent part of this Contract. delivery x. Failure to meet Vehicle Emission Standards $10,000 per day per vehicle Requirements. y. Failure to meet the minimum diversion requirements Shortfall of 0.001% - 2%: as set forth in Article 11 of this Contract (calculated per $25,000. Contract Year as appropriate). Shortfall of 2.001% or greater: $50,000 z. Failure to meet vehicle noise requirements. $100.00 per incident per day.

a Failure to collect Large Items from at least 95% $1,000.00 per day. aa. of the homes on the scheduled daily collection route.

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b Failure to collect all Large Items within forty- $1,000.00 per day. bb. eight (48) hours of the scheduled collection day.

Failure to comply with any requirements of this c $250.00 per incident Contract not specified in items a. through bb. cc.

19.06 Procedure for Review of Administrative Charges. The Contract Administrator may assess administrative charges pursuant to this Article 19 on a monthly basis. At the end of each month during the term of this Contract, the Contract Administrator shall issue a written notice to CONTRACTOR (“Notice of Assessment”) of the administrative charges assessed and the basis for each assessment.

19.06.1 The assessment shall become final unless, within ten (10) calendar days of the date of the notice of assessment, CONTRACTOR provides a written request for a meeting with the City Manager or the Manager’s designee to present evidence that the assessment should not be made.

19.06.2 The Contract Administrator shall schedule a meeting between CONTRACTOR and the Manager or the Manager’s designee as soon as reasonably possible after timely receipt of CONTRACTOR’S request.

19.06.3 The Manager or the Manager’s designee shall review CONTRACTOR’S evidence and render a decision sustaining or reversing the administrative charges as soon as reasonably possible after the meeting. Written notice of the decision shall be provided to CONTRACTOR.

19.06.4 In the event CONTRACTOR does not submit a written request for a meeting within ten (10) calendar days of the date of the Notice of Assessment, the Contract Administrator’s determination shall be final and the administrative charges shall be paid within thirty (30) calendar days of the date of the Notice of Assessment.

19.06.5 CITY’S assessment or collection of administrative charges shall not prevent CITY from exercising any other right or remedy, including the right to terminate this Contract, for CONTRACTOR’S failure to perform the work and services in the manner set forth in this Contract.

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ARTICLE 20. Performance Bond 20.01 Performance Bond. Within ten (10) calendar days from the date the City Council approves this Contract, the CONTRACTOR shall furnish to the CITY, and keep current, a Performance Bond in a form as set forth in Exhibit 5 which is included in and attached to this Contract, for the faithful performance of this Contract and all obligations arising hereunder in an amount as follows:

20.01.1 From ten (10) calendar days from the date the City Council approves this Contract, through December 31, 2027, CONTRACTOR shall maintain a performance bond in the amount of Five Hundred Thousand Dollars ($500,000).

20.01.2 The performance bond shall be executed by a surety company licensed to do business in the State of California; having an "A-" or better rating by A. M. Best or Standard and Poors; and included on the list of surety companies approved by the Treasurer of the United States. On January 1, 2012, and annually thereafter, CONTRACTOR may request in writing that the CITY allow the performance bond to be reduced. The CITY shall, at the sole option of the CITY, respond to the request in writing within forty-five (45) calendar days of receipt of the written request. Nothing in this Contract shall require that the CITY approve the request of the CONTRACTOR nor shall the CITY have any obligation to provide CONTRACTOR with its reasoning for approving or denying the request.

20.01.3 Letter of Credit. As an alternative to the performance bond required by this Section 20.01, at CITY’S option, CONTRACTOR may deposit with CITY an irrevocable letter of credit in an amount as set forth in Section 20.01.1. If allowed, the letter of credit must be issued by an FDIC insured banking institution chartered to business in the state of California, in the CITY’S name, be callable at the discretion of the CITY and be in a form acceptable to the City Attorney. Nothing in this Section shall, in any way, obligate the CITY to accept a letter of credit in lieu of the performance bond. ARTICLE 21. Insurance 21.01 Insurance Policies. CONTRACTOR shall secure and maintain throughout the term of this Contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with CONTRACTOR’S performance of work or services under this Contract. CONTRACTOR’S performance

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of work or services shall include performance by CONTRACTOR’S employees, agents, representatives and subcontractors.

21.01.1 Minimum Scope of Insurance. Insurance coverage shall be at least this broad:

21.01.1.1 Insurance Services Office Form No. GL 0002 (Ed. 1/96) covering Comprehensive General Liability and Insurance Services Office Form No. GL 0404 covering Broad Form Comprehensive General Liability; or Insurance Services Office Commercial General Liability coverage (“occurrence” form CG 0001), including X, C, U where applicable.

21.01.1.2 Insurance Services Office Form No.CA 0001 (Ed. 12/93) covering Automobile Liability, code 1 “any auto”, or code 2 “owned autos” and endorsement CA 0025. Coverage shall also include code 8, “hired autos” and code 9 “non-owned autos”.

21.01.2 Workers’ Compensation insurance as required by the California Labor Code and Employers Liability Insurance.

21.01.3 Hazardous Waste and Environmental Impairment Liability Insurance.

21.02 Minimum Limits of Insurance. CONTRACTOR shall maintain insurance limits no less than:

21.02.1 Comprehensive General Liability: $3,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability insurance with a general aggregate limit is used, either the general aggregate limit shall apply separately to this Contract or the general aggregate limit shall be $5,000,000.

21.02.2 Automobile Liability: $3,000,000 combined single limit per accident for bodily injury and property damage.

21.02.3 Workers’ Compensation and Employers Liability: Workers’ Compensation limits as required by the California Labor Code and Employers Liability limits of $3,000,000 per accident.

21.02.4 Hazardous Waste and Environmental Impairment Liability: $3,000,000 per occurrence.

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21.03 Deductibles and Self-Insured Retention. Any deductibles or self-insured retention must be declared to, and approved by, CITY. At the option of CITY, either; the insurer shall reduce or eliminate such deductibles or self-insured retention as respects CITY, its officers, employees, agents, contractors and volunteers; or CONTRACTOR shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses in an amount specified by CITY’S Risk Manager.

21.04 Endorsements. The policies are to contain, or be endorsed to contain, the following provisions:

21.04.1 General Liability and Automobile Liability Coverage.

21.04.1.1 The endorsement must name the CITY, its officers, employees, agents, contractors and volunteers as additional insureds as respects: liability arising out of activities performed by, or on behalf of, CONTRACTOR; products and completed operations of CONTRACTOR; premises owned, leased or used by CONTRACTOR; and automobiles owned, leased, hired or borrowed by CONTRACTOR. The coverage shall contain no special limitations on the scope of protection afforded to CITY, its officers, employees, agents, contractors and volunteers.

21.04.1.2 The endorsement must state that CONTRACTOR’S insurance coverage shall be primary insurance as respects CITY, its officers, employees, agents, contractors and volunteers. Any insurance or self- insurance maintained by CITY, its officers, employees, agents or contractors shall be in excess of CONTRACTOR’S insurance and shall not contribute with it.

21.04.1.3 Any failure to comply with reporting provisions of the policies shall not affect coverage provided to CITY, officers, employees, agents, contractors and volunteers.

21.04.1.4 Coverage shall state that CONTRACTOR’S insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.

21.04.1.5 The Automobile Liability policy shall be endorsed to delete the Pollution and/or the Asbestos exclusion, if applicable, and add the Motor Carrier Act endorsement (MCS-90) TL 1005, TL1007.

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21.04.2 All Coverage. Each insurance policy required by this Contract shall be endorsed to state that coverage shall not be suspended, voided, canceled, or reduced in limits except after thirty (30) calendar days prior written notice has been given to CITY.

21.05 Acceptability of Insurers. Insurance is to be placed with insurers acceptable to CITY.

21.06 Verification of Coverage. CONTRACTOR shall furnish CITY with certificates of insurance and with original endorsements affecting coverage required by this Contract. The certificates and endorsement for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. CONTRACTOR shall furnish CITY with a new certificate of insurance and endorsements on each renewal of coverage or change of insurers.

21.06.1 Proof of insurance shall be mailed as set forth in Article 39.

21.07 Subcontractors. CONTRACTOR shall include all subcontractors as insureds under its policies or shall obtain separate certificates and endorsements for each subcontractor.

21.08 Modification of Insurance Requirements. The insurance requirements provided in this Contract may be modified or waived by CITY, in writing, upon the request of CONTRACTOR if the CITY determines such modification or waiver is in the best interest of CITY considering all relevant factors, including exposure to CITY.

21.09 Rights of Subrogation. All required insurance policies shall preclude any underwriter's rights of recovery or subrogation against CITY with the express intention of the parties being that the required insurance coverage protects both parties as the primary coverage for any and all losses covered by the above- described insurance. CONTRACTOR shall ensure that any companies issuing insurance to cover the requirements contained in this Contract agree that they shall have no recourse against CITY for payment or assessments in any form on any policy of insurance. The clauses ‘Other Insurance Provisions’ and ‘Insured Duties in the Event of an Occurrence, Claim or Suit’ as it appears in any policy of insurance in which CITY is named as an additional insured shall not apply to CITY. ARTICLE 22. Indemnification 22.01 Indemnification. CONTRACTOR shall indemnify and hold harmless CITY, CITY’S contractors, and the public officials, officers, directors, employees,

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agents, volunteers and other contractors of each of them, from and against any and all claims, costs, the cost of remediation and cost-recoveries pursuant to CERCLA, losses and damages (including but not limited to all fees and charges of engineers, architects, attorneys and other professionals as well as all Court or other dispute resolution costs), liabilities, expenditures or causes of action of any kind, including negligent, reckless, willful or intentional acts or omissions of the CONTRACTOR, any subcontractor, any supplier, any person or organization directly or indirectly employed by any of them to perform or furnish any services or anyone for whose acts any of them may be liable arising from, relative to or caused by the performance of the services. This indemnity includes but is not limited to claims attributable to bodily injury, sickness, disease or death and to injury or destruction of tangible property. CONTRACTOR agrees, at CONTRACTOR'S expense, after written notice from the CITY, to defend any action against the CITY that falls within the scope of this indemnity, or the CITY, at the CITY'S option, may elect not to tender such defense and may elect instead to secure its own attorneys to defend any such action and the reasonable costs and expenses of such attorneys incurred in defending such action shall be payable by CONTRACTOR. Additionally, if CONTRACTOR, after receipt of written notice from the CITY, fails to make any payment due under this Contract to the CITY, CONTRACTOR shall pay any reasonable attorneys’ fees or costs incurred by the CITY in securing any such payment from CONTRACTOR. Payment of any amount due pursuant to the foregoing indemnity shall, after receipt of written notice by CONTRACTOR from the CITY that such amount is due, be made by CONTRACTOR prior to the CITY being required to pay same, or in the alternative, the CITY, at the CITY'S option, may make payment of an amount so due and CONTRACTOR shall promptly reimburse the CITY for same, together with interest thereon at the rate of twelve percent (12%) per annum simple interest from the date of receipt by CONTRACTOR of written notice from the CITY that such payment is due.

22.02 Indemnification for Failure to Meet AB 939 Goals. CONTRACTOR agrees to protect and defend CITY with counsel selected by CONTRACTOR and approved by CITY, to pay all attorneys’ fees, and to indemnify and hold CITY harmless from and against all fines or penalties imposed by Cal Recycle if the diversion goals specified in California Public Resources Code Section 41780 as of the date hereof and hereafter throughout are not met by the CITY and if the lack in meeting such goals are attributable to the failure of the CONTRACTOR to implement and operate the recycling or diversion programs or undertake the related activities required by this Contract.

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22.03 Consideration. It is specifically understood and agreed that the consideration inuring to the CONTRACTOR for the execution of this Contract consists of the promises, payments, covenants, rights and responsibilities contained in this Contract.

22.04 Obligation. The execution of this Contract by the CONTRACTOR shall obligate the CONTRACTOR to comply with the foregoing indemnification provision; however, the collateral obligation of providing insurance must also be complied with as set forth in Article 21 above.

22.05 Subcontractors. The CONTRACTOR shall require all subcontractors to enter into a contract containing the provisions set forth in the preceding subsection in which contract the subcontractor fully indemnifies the CITY in accordance with this Contract.

22.06 Exception. Notwithstanding Sections 22.01, 22.02 and 22.03, CONTRACTOR’S obligation to indemnify, hold harmless and defend CITY, its officers and employees shall not extend to any loss, liability, penalty, damage, action or suit resulting from the sole negligence or willful misconduct of the CITY its officers or employees.

22.07 Damage by CONTRACTOR. If CONTRACTOR’S employees or subcontractors cause any injury, damage or loss to CITY property, including but not limited to CITY streets or curbs, CONTRACTOR shall reimburse CITY for CITY’S cost of repairing such injury, damage or loss. Such reimbursement is not in derogation of any right of CITY to be indemnified by CONTRACTOR for any such injury, damage or loss. With the prior written approval of CITY, CONTRACTOR may repair the damage at CONTRACTOR’S sole cost and expense. ARTICLE 23. Default of Contract 23.01 Termination. The CITY may cancel this Contract, except as otherwise provided below in this Section, by giving the CONTRACTOR thirty (30) calendar days advance written notice, to be served as provided in Article 39, upon the happening of any one of the following events:

23.01.1 The CONTRACTOR shall take the benefit of any present or future insolvency statute, or shall make a general assignment for the benefit of creditors, or file a voluntary petition in bankruptcy (court) or a petition or answer seeking an arrangement for its reorganization or the readjustment of its indebtedness under the Federal bankruptcy laws or under any other law or statute of

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the United States or any state thereof, or consent to the appointment of a receiver, trustee or liquidator of all or substantially all of its property; or

23.01.2 By order or decree of a Court, the CONTRACTOR shall be adjudged bankrupt or an order shall be made approving a petition filed by any of its creditors or by any of the stockholders of the CONTRACTOR, seeking its reorganization or the readjustment of its indebtedness under the Federal bankruptcy laws or under any law or statute of the United States or of any state thereof, provided that if any such judgment or order is stayed or vacated within sixty (60) calendar days after the entry thereof, any notice of default shall be and become null, void and of no effect; unless such stayed judgment or order is reinstated in which case, said default shall be deemed immediate; or

23.01.2.1 By, or pursuant to, or under the authority of any legislative act, resolution or rule or any order or decree of any Court or governmental board, agency or officer having jurisdiction, a receiver, trustee or liquidator shall take possession or control of all or substantially all of the property of the CONTRACTOR, and such possession or control shall continue in effect for a period of sixty (60) calendar days; or

23.01.3 The CONTRACTOR has defaulted, by failing or refusing to pay in a timely manner the administrative charges or other monies due the CITY and said default is not cured within thirty (30) calendar days of receipt of written notice by CITY to do so; or

23.01.4 The CONTRACTOR has defaulted by allowing any final judgment for the payment of money to stand against it unsatisfied and said default is not cured within thirty (30) calendar days of receipt of written notice by CITY to do so; or

23.01.5 In the event that the monies due the CITY under Section 23.01.3 above or an unsatisfied final judgment under Section 23.01.4 above is the subject of a judicial proceeding, the CONTRACTOR shall not be in default if the sum of money is bonded. All bonds shall be in the form acceptable to the CITY Attorney; or

23.01.6 The CONTRACTOR has defaulted, by failing or refusing to perform or observe the terms, conditions or covenants in this Contract or any of the rules and regulations promulgated by the CITY pursuant thereto or has wrongfully

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failed or refused to comply with the instructions of the Contract Administrator relative thereto and said default is not cured within thirty (30) calendar days of receipt of written notice by the CITY to do so, or if by reason of the nature of such default, the same cannot be remedied within thirty (30) calendar days following receipt by the CONTRACTOR of written demand from the CITY to do so, the CONTRACTOR fails to commence the remedy of such default within said thirty (30) calendar days following such written notice or having so commenced shall fail thereafter to continue with diligence the curing thereof (with the CONTRACTOR having the burden of proof to demonstrate (a) that the default cannot be cured within thirty (30) calendar days, and (b) that it is proceeding with diligence to cure said default, and such default will be cured within a reasonable period of time). However, notwithstanding anything contained herein to the contrary, for the failure of the CONTRACTOR to provide Collection Services for a period of three (3) consecutive Work Days, the CITY may secure the CONTRACTOR'S records on the fourth (4th) Work Day in order to provide interim Collection services until such time as the matter is resolved and the CONTRACTOR is again able to perform pursuant to this Contract; provided, however, if the CONTRACTOR is unable for any reason or cause to resume performance at the end of thirty (30) calendar days all liability of the CITY under this Contract to the CONTRACTOR shall cease and this Contract may be deemed terminated by the CITY.

23.02 Violations. Notwithstanding the foregoing and as supplemental and additional means of termination of this Contract under this Article, in the event that the CONTRACTOR'S record of performance show that the CONTRACTOR has frequently, regularly or repetitively defaulted in the performance of any of the covenants and conditions required herein to be kept and performed by the CONTRACTOR, in the opinion of the CITY and regardless of whether the CONTRACTOR has corrected each individual condition of default, the CONTRACTOR shall be deemed a "habitual violator", shall be deemed to have waived the right to any further notice or grace period to correct, and all of said defaults shall be considered cumulative and collectively shall constitute a condition of irredeemable default. The CITY shall thereupon issue the CONTRACTOR a final warning citing the circumstances therefore, and any single default by the CONTRACTOR of whatever nature, subsequent to the occurrence of the last of said cumulative defaults, shall be grounds for immediate termination of the Contract. In the event of any such subsequent default, the CITY may terminate this Contract upon giving of written final notice to the CONTRACTOR, such cancellation to be effective upon the date specified in the CITY'S written notice to the CONTRACTOR, and all contractual fees due hereunder plus any and all charges and interest shall be payable

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to said date, and the CONTRACTOR shall have no further rights hereunder. Immediately upon the specified date in such final notice the CONTRACTOR shall proceed to cease any further performance under this Contract.

23.03 Effective Date. In the event of the aforesaid events specified above, and except as otherwise provided in said subsections, termination shall be effective upon the date specified in the CITY'S written notice to the CONTRACTOR and upon said date this Contract shall be deemed immediately terminated and upon such termination all liability of the CITY under this Contract to the CONTRACTOR shall cease, and the CITY shall have the right to call the performance bond and shall be free to negotiate with other contractors for the operation of the herein specified services. The CONTRACTOR for failure to perform shall reimburse the CITY all direct and indirect costs of providing interim Collection Services.

23.04 Immediate Termination. CITY may terminate this Contract immediately upon written notice to CONTRACTOR in the event CONTRACTOR fails to provide and maintain the performance bond as required by this Contract, CONTRACTOR fails to obtain or maintain insurance policies endorsements as required by this Contract, CONTRACTOR fails to provide the proof of insurance as required by this Contract, or CONTRACTOR offers or gives any gift prohibited by CITY Municipal Code or state law.

23.05 Termination Cumulative. CITY’S right to terminate this Contract is cumulative to any other rights and remedies provided by law or by this Contract. ARTICLE 24. Modifications to the Contract 24.01 Modifications. The CITY shall have the power to make changes in this Contract as the result of changes in law, changes in the City of Citrus Heights Municipal Code, or both, to impose new rules and regulations on the CONTRACTOR under this Contract relative to the scope and methods of providing Collection Services as shall from time-to-time be necessary and desirable for the public welfare. The CITY shall give the CONTRACTOR notice of any proposed change and an opportunity to be heard concerning those matters. The scope and method of providing Collection Services as referenced herein shall also be liberally construed to include, but is not limited to the manner, procedures, operations and obligations, financial or otherwise, of the CONTRACTOR.

24.01.1 Change in Law. The CITY and the CONTRACTOR understand and agree that the California Legislature and other federal, state and local

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governmental and regulatory bodies have the authority to make comprehensive changes in Solid Waste Management legislation, including the addition of, or increases to existing, governmental fees and surcharges not in effect at the time of the execution of this Contract, and that these and other changes in law in the future which mandate certain actions or programs for counties or municipalities may require changes or modifications in some of the terms, conditions or obligations under this Contract, which would otherwise alter the manner in which CONTRACTOR performs its services under this Contract. The CONTRACTOR also agrees that the terms and provisions of the City of Citrus Heights Code, as it now exists or as it may be amended in the future, shall apply to all of the provisions of this Contract and the Service Recipients of the CONTRACTOR located within the Service Area. In the event any future change in law or in the City Code materially alters the obligations of the CONTRACTOR, then the affected maximum service rates, as set forth in Exhibit 1 of this Contract shall be adjusted. Nothing contained in this Contract shall require any party to perform any act or function contrary to law. The CITY and CONTRACTOR agree to enter into good faith negotiations regarding modifications to this Contract which may be required in order to implement changes in the interest of the public welfare or due to change in law. When such modifications are made to this Contract, the CITY and the CONTRACTOR shall negotiate in good faith, a reasonable and appropriate compensation adjustment for any increase or decrease in the services or other obligations required of the CONTRACTOR due to any modification in the Contract under this Article. The CITY and the CONTRACTOR shall not unreasonably withhold agreement to such compensation adjustment. ARTICLE 25. Legal Representation 25.01 Acknowledgement. It is acknowledged that each party was, or had the opportunity to be, represented by counsel in the preparation of and contributed equally to the terms and conditions of this Contract and, accordingly, the rule that a contract shall be interpreted strictly against the party preparing the same shall not apply herein due to the joint contributions of both parties. ARTICLE 26. Financial Interest 26.01 Representation. CONTRACTOR warrants and represents that no elected official, officer, agent or employee of the City has a financial interest, directly or indirectly, in this Contract or the compensation to be paid under it and, further, that no CITY employee who acts in the CITY as a “purchasing agent” as defined in the appropriate Section of California Statutes, nor any elected or appointed officer of the CITY, nor any spouse or child of such purchasing agent, employee or elected or appointed officer, is a partner, officer, director or proprietor of the CONTRACTOR and,

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further, that no such CITY employee, purchasing agent, CITY elected or appointed officer, or the spouse or child of any of them, alone or in combination, has a material interest in the CONTRACTOR. Material interest means direct or indirect ownership of three percent (3%) or more of the total assets or capital stock of the CONTRACTOR.

ARTICLE 27. Contractor's Personnel 27.01 Personnel Requirements. The CONTRACTOR shall employ and assign qualified personnel to perform all services set forth herein. The CONTRACTOR shall be responsible for ensuring that its employees comply with all applicable laws and regulations and meet all federal, state and local requirements related to their employment and position.

27.01.1 The CITY may request the transfer of any employee of the CONTRACTOR who materially violates any provision hereof, or who is wanton, negligent, or discourteous in the performance of his duties.

27.01.2 CONTRACTOR’S field operations personnel shall be required to wear a clean uniform shirt bearing the CONTRACTOR’S name. CONTRACTOR’S employees, who normally come into direct contact with the public, including drivers, shall bear some means of individual photographic identification such as a name tag or identification card.

27.01.3 Each driver of a Collection vehicle shall at all times carry a valid California driver's license and all other required licenses for the type of vehicle that is being operated.

27.01.4 Each driver of a Collection vehicle shall at all times comply with all applicable state and federal laws, regulations and requirements.

27.01.5 CONTRACTOR’S employees, officers, and agents shall at no time be allowed to identify themselves or in any way represent themselves as being employees of the CITY.

27.01.6 The CONTRACTOR'S name and the Customer Service telephone number shall be properly displayed on all Collection vehicles.

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ARTICLE 28. Exempt Waste 28.01 The CONTRACTOR shall not be required to Collect or dispose of Exempt Waste, but may offer such services. All such Collection and disposal of Exempt Waste is not regulated under this Contract, but if provided by the CONTRACTOR shall be in strict compliance with all federal, state and local laws and regulations. If CONTRACTOR decides at its sole discretion to offer such services, said services are outside the scope of this Contract and at the sole risk of the CONTRACTOR. ARTICLE 29. Independent Contractor 29.01 In the performance of services pursuant to this Contract, CONTRACTOR shall be an independent contractor and not an officer, agent, servant or employee of CITY. CONTRACTOR shall have exclusive control of the details of the services and work performed and over all persons performing such services and work. CONTRACTOR shall be solely responsible for the acts and omissions of its officers, agents, employees, contractors and subcontractors, if any. Neither CONTRACTOR nor its officers, employees, agents, contractors or subcontractors shall obtain any right to retirement benefits, Workers Compensation benefits, or any other benefits which accrued to CITY employees and CONTRACTOR expressly waives any claim it may have or acquire to such benefits. ARTICLE 30. Laws to Govern 30.01 The law of the State of California shall govern the rights, obligations, duties and liabilities of CITY and CONTRACTOR under this Contract and shall govern the interpretation of this Contract. ARTICLE 31. Consent to Jurisdiction 31.01 The parties agree that any litigation between CITY and CONTRACTOR concerning or arising out of this Contract shall be filed and maintained exclusively in the Municipal or Superior Courts of Sacramento County, State of California, or in the United States District Court for the Eastern District of California to the fullest extent permissible by law. Each party consents to service of process in any manner authorized by California law. ARTICLE 32. Assignment 32.01 No assignment of this Contract or any right occurring under this Contract shall be made in whole or in part by the CONTRACTOR without the express written consent of the CITY. The CITY shall have full discretion to approve or deny,

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with or without cause, any proposed or actual assignment by the CONTRACTOR. Any assignment of this Contract made by the CONTRACTOR without the express written consent of the CITY shall be null and void and shall be grounds for the CITY to declare a default of this Contract and immediately terminate this Contract by giving written notice to the CONTRACTOR, and upon the date of such notice this Contract shall be deemed immediately terminated, and upon such termination all liability of the CITY under this Contract to the CONTRACTOR shall cease, and the CITY shall have the right to call the performance bond and shall be free to negotiate with other contractors, the CONTRACTOR, or any other person or company for the service which is the subject of this Contract. In the event of any assignment, the assignee shall fully assume all the liabilities of the CONTRACTOR.

32.02 The use of a subcontractor to perform services under this Contract shall not constitute delegation of CONTRACTOR’S duties provided that CONTRACTOR has received prior written authorization from the Contract Administrator to subcontract such services and the Contract Administrator has approved a subcontractor who will perform such services. CONTRACTOR shall be responsible for directing the work of CONTRACTOR’S subcontractors and any compensation due or payable to CONTRACTOR’S subcontractor shall be the sole responsibility of CONTRACTOR. The Contract Administrator shall have the right to require the removal of any approved subcontractor for reasonable cause. The subcontractors listed in Exhibit 6, which is attached to and incorporated in this Contract, are hereby approved by the CITY. ARTICLE 33. Compliance with Laws 33.01 In the performance of this Contract, CONTRACTOR shall comply with all applicable laws, regulations, ordinances and codes of the federal, state and local governments, including without limitation the Citrus Heights Municipal Code.

33.02 CITY shall provide written notice to CONTRACTOR of any planned amendment to the Citrus Heights Municipal Code that would substantially affect the performance of CONTRACTOR’S services pursuant to this Contract. Such notice shall be provided at least thirty (30) calendar days prior to the City Council’s approval of such an amendment. ARTICLE 34. Permits and Licenses 34.01 CONTRACTOR shall obtain, at its own expense, all permits and licenses required by law or ordinance and maintain same in full force and effect

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throughout the term of this Contract. CONTRACTOR shall provide proof of such permits, licenses or approvals and shall demonstrate compliance with the terms and conditions of such permits, licenses and approvals upon the request of the Contract Administrator. ARTICLE 35. Ownership of Written Materials 35.01 All reports, documents, brochures, public education materials, and other written, printed, electronic or photographic materials developed by CITY or CONTRACTOR in connection with the services to be performed under this Contract, whether developed directly or indirectly by CITY or CONTRACTOR shall be and shall remain the property of CITY without limitation or restrictions on the use of such materials by CITY. CONTRACTOR shall not use such materials in connection with any project not connected with this Contract without the prior written consent of the Contract Administrator. This Article 35 does not apply to ideas or concepts described in such materials and do not apply to the format of such materials. ARTICLE 36. Waiver 36.01 Waiver by CITY or CONTRACTOR of any breach for violation of any term covenant or condition of this Contract shall not be deemed to be a waiver of any other term, covenant or condition or any subsequent breach or violation of the same or of any other term, covenant or condition. The subsequent acceptance by CITY of any fee, tax, or any other monies which may become due from CONTRACTOR to CITY shall not be deemed to be a waiver by CITY of any breach for violation of any term, covenant or condition of this Contract. ARTICLE 37. Prohibition Against Gifts 37.01 CONTRACTOR represents that CONTRACTOR is familiar with and shall not violate applicable California laws regarding the acceptance of gifts by a CITY officer or designated employee. ARTICLE 38. Point of Contact 38.01 The day-to-day dealings between the CONTRACTOR and the CITY shall be between the CONTRACTOR and the Contract Administrator. ARTICLE 39. Notices 39.01 Except as provided herein, whenever either party desires to give notice to the other, it must be given by written notice addressed to the party for whom it is intended, at the place last specified and to the place for giving of notice in compliance

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with the provisions of this paragraph. For the present, the parties designate the following as the respective persons and places for giving of notice:

As to the CITY:

Mary Poole

Contract Administrator

City of Citrus Heights

7927 Auburn Boulevard

Citrus Heights, CA 95620

Telephone: (916) 727-4730

Fax: (916) 725-5799

E-mail: [email protected]

As to the CONTRACTOR:

Tony Cincotta, General Manager

Republic Services Inc.

3326 Fitzgerald Road

Rancho Cordova, CA 95742

Telephone: (916) 463-0256

Fax: (916) 463-0296

E-Mail: [email protected]

39.02 Notices shall be effective when received at the address as specified above. Changes in the respective address to which such notice is to be directed may be made by written notice. Facsimile transmission is acceptable notice, effective when received, however, facsimile transmissions received (i.e. printed) after 4:30 p.m. or on weekends or holidays, will be deemed received on the next business day. The original of items that are transmitted by facsimile equipment must also be mailed as required herein.

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39.03 Notice by CITY to CONTRACTOR of a Collection or other Service Recipient problem or complaint may be given to CONTRACTOR orally by telephone at CONTRACTOR’S local office with confirmation sent to CONTRACTOR through the Customer Service System by the end of the Work Day. ARTICLE 40. Transition to Next Contractor 40.01 In the event CONTRACTOR is not awarded a Contract to continue to provide Collection Services following the expiration or early termination of this Contract, CONTRACTOR shall cooperate fully with CITY and any subsequent contractors to assure a smooth transition of services described in this Contract. Such cooperation shall include but not be limited to transfer of computer data, files and tapes; providing routing information, route maps, vehicle fleet information, and list of Service Recipients; providing a complete inventory of all carts and bins; providing adequate labor and equipment to complete performance of all Collection Services required under this Contract; taking all actions necessary to transfer ownership of carts and bins, as appropriate, to CITY; including transporting such containers to a location within the Service Area designated by the Contract Administrator; coordinating Collection of materials set out in new containers if new containers are provided for a subsequent Contract and providing other reports and data required by this Contract. ARTICLE 41. Contractor’s Records 41.01 CONTRACTOR shall maintain any and all letters, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to Service Recipients for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to CONTRACTOR pursuant to this Contract.

41.02 CONTRACTOR shall maintain all documents and records which demonstrate performance under this Contract for a minimum period of three (3) years, or for any longer period required by law, from the date of termination or completion of this Contract.

41.03 Any records or documents required to be maintained pursuant to this Contract shall be made available for inspection or audit, at any time during regular business hours, upon written request by the Contract Administrator, the City Attorney, City Auditor, City Manager, or a designated representative of any of these officers. Copies of such documents shall be provided to CITY for inspection at the CITY offices

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when it is practical to do so. Otherwise, unless an alternative site is mutually agreed upon, the records shall be available at CONTRACTOR’S address indicated for receipt of notices in this Contract.

41.04 Where CITY has reason to believe that such records or documents may be lost or discarded due to the dissolution, disbandment or termination of CONTRACTOR’S business, CITY may, by written request or demand of any of the above named officers, require that custody of the records be given to CITY and that the records and documents be maintained in City Hall. Access to such records and documents shall be granted to any party authorized by CONTRACTOR, CONTRACTOR’S representatives, or CONTRACTOR’S successor-in-interest. ARTICLE 42. Entire Contract 42.01 This Contract and the Exhibits attached hereto constitute the entire Contract and understanding between the parties hereto, and it shall not be considered modified, altered, changed or amended in any respect unless in writing and signed by the parties hereto. Any prior oral or written discussions, communications, or understandings between the parties shall be of no legal effect unless specifically incorporated in this written Contract and/or the addendums thereto. ARTICLE 43. Severability 43.01 If any provision of this Contract or the application of it to any person or situation shall to any extent be held invalid or unenforceable, the remainder of this Contract and the application of such provisions to persons or situations other than those as to which it shall have been held invalid or unenforceable, shall not be affected, shall continue in full force and effect, and shall be enforced to the fullest extent permitted by law. ARTICLE 44. Right to Require Performance 44.01 The failure of the CITY at any time to require performance by the CONTRACTOR of any provision hereof shall in no way affect the right of the CITY thereafter to enforce same. Nor shall waiver by the CITY of any breach of any provision hereof be taken or held to be a waiver of any succeeding breach of such provision or as a waiver of any provision itself.

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ARTICLE 45. All Prior Contracts Superseded 45.01 This document incorporates and includes all prior negotiations, correspondence, conversations, Contracts and understandings applicable to the matters contained in this Contract and the parties agree that there are no commitments, Contracts or understandings concerning the subject matter of this Contract that are not contained in this document. Accordingly, it is agreed that no deviation from the terms of this Contract shall be predicated upon any prior representations or Contracts, whether oral or written. ARTICLE 46. Headings 46.01 Headings in this document are for convenience of reference only and are not to be considered in any interpretation of this Contract. ARTICLE 47. Exhibits 47.01 Each Exhibit referred to in this Contract forms an essential part of this Contract. Each such Exhibit is a part of this Contract and each is incorporated by this reference. ARTICLE 48. Effective Date 48.01 This Contract shall become effective at such time as it is properly executed by the CITY and the CONTRACTOR and the CONTRACTOR shall begin Collection Services, as covered herein, as of March 11, 2016.

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IN WITNESS WHEREOF, the CITY and the CONTRACTOR have executed this Contract on the respective date(s) below each signature.

CITY OF CITRUS HEIGHTS CONTRACTOR

A Municipal Corporation

By: ______By: ______Henry Tingle, City Manager Name: ______, General Manager

Date: ______Date: ______

ATTEST:

______Amy Van, City Clerk

APPROVED AS TO FORM

______Ruthann G. Ziegler, City Attorney

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Exhibit 1

City of Citrus Heights, CA

Service Rate Range Sheets

Basic Servic e Rates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Cart Base Base Base Base Base Base Base Base Base Base Base Base Size Rates Rates Rates Rates Rates Rates Rates Rates Rates Rates Rates Rates 32 Max $19.28 $19.28 $19.28 $19.96 $20.65 $21.38 $22.13 $22.90 $23.70 $24.53 $25.39 Gal. $18.72 Min $19.09 $19.09 $19.09 $19.43 $19.77 $20.11 $20.47 $20.82 $21.19 $21.56 $21.94 64 Max $21.40 $21.40 $21.40 $22.15 $22.93 $23.73 $24.56 $25.42 $26.31 $27.23 $28.18 Gal. $20.78 Min $21.20 $21.20 $21.20 $21.57 $21.94 $22.33 $22.72 $23.12 $23.52 $23.93 $24.35

96 Max $26.63 $26.63 $26.63 $27.56 $28.52 $29.52 $30.55 $31.62 $32.73 $33.88 $35.06 Gal. $25.85 Min $26.37 $26.37 $26.37 $26.83 $27.30 $27.78 $28.26 $28.76 $29.26 $29.77 $30.29

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Cart Replacement Rates Max $58.80 $58.80 $58.80 $60.86 $62.99 $65.20 $67.48 $69.84 $72.28 $74.81 $77.43 32-Gallon Cart $57.09 Min $58.23 $58.23 $58.23 $59.25 $60.29 $61.34 $62.42 $63.51 $64.62 $65.75 $66.90 Max $67.28 $67.28 $67.28 $69.63 $72.07 $74.59 $77.20 $79.91 $82.70 $85.60 $88.59 64-Gallon Cart $65.32 Min $66.63 $66.63 $66.63 $67.79 $68.98 $70.19 $71.41 $72.66 $73.94 $75.23 $76.55 Max $72.03 $72.03 $72.03 $74.55 $77.16 $79.86 $82.65 $85.55 $88.54 $91.64 $94.85 96-Gallon Cart $69.93 Min $71.33 $71.33 $71.33 $72.58 $73.85 $75.14 $76.45 $77.79 $79.15 $80.54 $81.95

Max $0.03 $0.00 $0.00 $0.04 $0.04 $0.04 $0.04 $0.04 $0.04 $0.04 $0.04 Annual Rate Adjustment Percentages Min $0.02 $0.00 $0.00 $0.02 $0.02 $0.02 $0.02 $0.02 $0.02 $0.02 $0.02

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Exhibit 1

City of Citrus Heights, CA

Service Rate Sheets

Service Rate Form 2 Emergency Service Rates - Employees

Page of Pages

Labor Position Hourly Rate Any Admin. or Mgmt. Position $ 25.00 Any Driver or Mechanic Position $ 40.00

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Exhibit 1

City of Citrus Heights, CA

Service Rate Sheets

Service Rate Form 3 Emergency Service Rates - Equipment

Page of Pages

Labor Position or Equipment Type Make & Model Hourly Rate Any Piece of Rolling Stock All $ 30.00

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Exhibit 2 Monthly Financial Reports

Form 1 – Franchise Fee – Monthly and Cumulative Year to Date. (Data from GL Interactive Trial Balance a/c 3C.4000,InfoPro Cash Receipts Report & InfoPro Revenue Analysis GL Period Total Report)

Form 2 – HHW and Admin Fees – Monthly and Cumulative Year to Date.

Form 3 – Monthly Franchise Fee/AB939 Government Fees – Monthly by Container Size and Total Containers.

Form 4 - Monthly Franchise Fee/AB939 Government Fees – Monthly and Cumulative Year to Date by Container Size and Total Containers.

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Exhibit 3

City of Citrus Heights, CA

City Service Units

1) Allied Waste Services shall be responsible for the following City Service Units:

 Temporary City Hall 7927 Auburn Boulevard Citrus Heights, CA 95610  Citrus Heights Community Center 6300 Fountain Square Drive Citrus Heights, CA 95621  Citrus Heights Police Department 6315 Fountain Square Drive Citrus Heights, CA 95621  New City Hall 6360 Fountain Square Drive Citrus Heights, CA 95621  Sayonara Community Center 7836 Sayonara Drive Citrus Heights, CA 95610  Sylvan Community Center 7251 Sylvan Road Citrus Heights, CA 95610

Services: As needed and properly scheduled through Republic Services Customer Service.

Battery Collection: For City Service Unit generated batteries consistent with Section 1.10.

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Exhibit 3

City of Citrus Heights, CA

City Service Units

2) Bus stop locations:

Allied Waste Services will be responsible to service up to thirty (30) bus stops located on the following corridors:

 Greenback Lane

 Sunrise Boulevard

 Arcadia Drive

 Fair Oaks Boulevard

 Auburn Boulevard

 Van Maren Lane

 San Juan Avenue

 Sylvan Road

 Antelope Drive

 Dewey Drive

 Oak Avenue

 Old Auburn Road

Services: As needed on a regular basis as properly scheduled through Republic Services Customer Service.

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Exhibit 4

City of Citrus Heights, CA

Cart Specifications

Specifications and Performance Criteria for 32-, 64-, and 96-gal Garbage, Recyclable Materials and Green Material Carts

Volumetric Capacity  32-gal, 64-gal, and 96-gal, excluding volume resulting from a crowned lid in the closed position

Minimum Load Rating  32-gal: 100 lb

 64-gal: 175 lb

 96-gal: 250 lb

Compatibility  Compatible with commercially available fully automated lifting mechanisms that are or will be used in Citrus Heights

Standards of Design  Designed such that wastes flow freely out of the cart when dumped by a fully automated lifting mechanism

Dimensions & Design  Body of cart -- nestable for economic bulk transportation and to facilitate distribution to users

 Maximum width of 31” including lid and wheels

 Leak proof

Finish Surfaces  Interior surface must be smooth with a semi- or high-gloss finish

 Exterior surface must be suitable for hot stamping on lid and body

 Exterior must be free of sharp edges and corners, protrusions, or other structures that could pose a nuisance or hazard to humans

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Identification & Markings  The lid must have a suitable area to affix an appropriate label for recycling education or other information

 The following must be hot-stamped on the lid:

1. facing street arrow

 The following must be hot-stamped on the cart body:

1. City’s logo

2. serial number (sequentially numbered)

3. production batch number and date

4. maximum load weight rating

5. cart type, per clause 4.2.1f of ANSI Z245.30-99

Color  Garbage: to be determined

 Recycling: to be determined

 Green Material to be determined

Warranty  Minimum 10 years for all parts of cart; not prorated; any failure under warranty shall be replaced with a newly manufactured whole cart, which is defined to be the body of the cart, wheel, lid, handles, other ancillary features and fasteners

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Exhibit 5

PERFORMANCE BOND

COLLECTION SERVICES

FOR THE

CITY OF CITRUS HEIGHTS, CALIFORNIA

KNOW ALL MEN BY THESE PRESENTS: that

(here insert full name and address or legal title of contractor) as Principal, hereinafter called Contractor, and, (Name of insurer) as Surety, hereinafter called Surety, are held firmly bound unto the CITY OF CITRUS HEIGHTS, CALIFORNIA as Obligee, hereinafter called the City, in the amount of ______*** for the payment whereof Contractor and Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

WHEREAS, Contractor has by written agreement dated ,2016, entered into a contract with the City for providing Collection Services in accordance with RFP specifications and Contract of the CITY OF CITRUS HEIGHTS, CALIFORNIA, which Contract is by reference made a part hereof, and is hereinafter referred to as the Contract.

NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION is such that, if Contractor shall promptly and faithfully perform said Contract, then this obligation shall be null and void; otherwise it shall remain in full force and effect.

And the Surety, for value received, hereby stipulates and 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 accompanying the same shall, in any way,

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affect its obligations on this bond and the Surety does hereby waive notice of any such change, extension of time, alteration, or addition to the terms of the Contract or to the work or the specifications. The Surety hereby specifically waives the provisions of Sections 2819 and 2845 of the California Civil Code. In the event suit is brought upon this bond by the City and judgment is recovered, the Surety shall pay all costs incurred by the City in such suit, including reasonable attorney's fees to be fixed by the Court Whenever Contractor shall be, and declared by the City to be in default under the Contract, the City having performed the City's obligations thereunder, the Surety may promptly remedy the default, or shall promptly perform one of the following:

1. Complete the Contract in accordance with its terms and conditions.

2. Obtain a bid or bids for completing the Contract in accordance with the terms and conditions, and upon determination by the Surety of the lowest and most responsible bidder, or if the City elects, upon determination by the City and the Surety jointly of the lowest and most responsible bidder, arrange for a contract between such bidder and the City, and make available as work progresses (even though there should be a default or a succession of default under the contract or contracts of completion arranged under this paragraph) sufficient funds to pay the cost of completion less the balance of the contract price; but not exceeding, including costs and damages for which the Surety may be liable hereunder, the amount set forth in the first paragraph hereof. The term "balance of the contract price," as used in this paragraph, shall mean the total amount payable by the City to Contractor under the Contract and any amendments thereto, less the amount properly paid by the City to Contractor.

Any suit under this bond must be instituted before the expiration date of the Contract or if extended for an additional term by the City, the expiration of the extended term.

No right of action shall accrue on this bond to or for the use of any person or corporation other than the City named herein or the executor, administrator or successors of the City of Citrus Heights, California.

Signed and sealed this day of , 2016.

(Principal) (Seal)

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(Witness)

(Title)

Surety (Seal)

(Name of Insurer)

(Witness)

By: (Attorney-in-Fact)

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Exhibit 6

City of Citrus Heights, CA

Approved Sub-Contractors

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