AGREEMENT

Between

VACAVILLE SANITARY SERVICE

And

TEAMSTERS AND CHAUFFEURS UNION NO.315

Dated: October 1, 2008 to September 30, 2012

TABLE OF CONTENTS

SECTION 1. RECOGNITION 1 SECTION 2. UNION SECURITY 1 SECTION 3. HIRING 1 SECTION 4. UNION PRINCIPLES – DISCRIMINATION 2 SECTION 5. EMPLOYER RESPONSIBILITIES 2 SECTION 6. HOURS OF WORK 2 SECTION 7. HOLIDAY WORK 3 SECTION 8. PAID HOLIDAYS 3 SECTION 9. VACATION 3 SECTION 10. SICK LEAVE 5 SECTION 11. JURY DUTY PAY 6 SECTION 12. BEREAVEMENT LEAVE 6 SECTION 13. UNIFORMS 6 SECTION 14. SENIORITY 6 SECTION 15. PAY DAY 8 SECTION 16. DISCHARGE/DISCIPLINE 8 SECTION 17. GRIEVANCE AND ARBITRATION PROCEDURE 9 SECTION 18. HEALTH AND WELFARE 11 SECTION 19. NO REDUCTION 11 SECTION 20. MEAL PERIODS 11 SECTION 21. TIME CARDS 11 SECTION 22. VISITS BY UNION REPRESENTATIVES 12 SECTION 23. REMITTANCE ADVICE 12 SECTION 24. OPERATOR'S LICENSE 12 SECTION 25. WAGES 12 SECTION 26. STRIKES OR LOCKOUTS 13 SECTION 27. SUCCESSOR CLAUSE 13 SECTION 28. PENSION PLAN 13 SECTION 29. SAVINGS CLAUSE 14 SECTION 30. DUES DEDUCTION/D.R.I.V.E 14 SECTION 31. TERM OF AGREEMENT 15

- 1 - AGREEMENT

THIS AGREEMENT made and entered into and between VACAVILLE SANITARY SERVICE, Vacaville, California, hereinafter referred to as the Employer and TEAMSTERS AND CHAUFFEURS UNION LOCAL NO 315, Napa and Solano Counties, California, affiliated with the International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, hereinafter referred to as the Union.

SECTION 1 – RECOGNITION:

The Employer recognizes the Union through its representative as the sole agent for the purpose of collective bargaining for all employees working under the terms of this Agreement as contained in Section 25.

SECTION 2 – UNION SECURITY:

(A) Only members in good standing in the Union shall be retained in employment. For the purpose of this Section, "members in good standing" shall be defined to mean employee members in the Union who tender the periodic dues and initiation fees uniformly required as a condition of acquiring or retaining membership. Nonmembers of the Union hired by the Employer must complete membership affiliation on or before the thirty-first (31st) day of employment, and the Union agrees to accept said nonmembers into membership on the same terms and conditions generally applicable to other members. Upon written notice from the Union of failure on the part of any individual to complete membership in the Union as above required, or of failure to continue payment of dues to the Union, the Employer shall, within seven (7) days of such notice, discharge said employees. The Union agrees to indemnify the Employer for any and all costs incurred by the Employer if the employee files any claim relating to this discharge. This indemnity shall not apply if the Employer fails to forward to the Union, on a timely basis, dues or fees withheld from the employees. If the Union requests that dues and initiation fees due to the Union be "checked off" and deducted on a payroll basis, the Union shall provide, to the Employer, proper revokable authorization cards. It is also necessary that the Union advise the Employer of the current initiation fee schedule and dues schedule.

(B) The Employer agrees to make deductions from employee's paycheck for the payment of regularly charged union dues provided the Union supplies the Employer with a properly executed dues authorization deduction form which is in conformance with State law and revokable by the employee.

SECTION 3 – HIRING:

(A) The Employer will contact the Union for referrals when additional employees are needed; provided that the Employer reserves the right to hire in its sole discretion and such decision shall not be subject to the grievance/arbitration provisions of the collective bargaining agreement.

- 2 - (B) The Employer agrees to inform the Union of new hires within five (5) days after a new hire has been put to work, providing the Union with the employee's name, classification, rate of pay, and date of hire.

(C) The Employer agrees to provide the Union a list of the employees covered by this Agreement upon execution thereof, and subsequently upon request in writing, but not more frequently than semi-annually.

SECTION 4 – UNION PRINCIPLES – DISCRIMINATION:

The Employer and the Union agree that neither shall discriminate against any employee or applicant by reason of legitimate Union activity or membership or nonmembership in the Union. The parties further agree that there shall be no discrimination against any employee or applicant because of race, color or religious creed. No employee shall be discharged or discriminated against for legal activity in or representing the Union.

SECTION 5 – EMPLOYER RESPONSIBILITIES:

(A) Except as expressly limited by the specific terms herein contained, nothing in this Agreement shall be construed to limit or impair the right of the Employer to manage its business generally. The parties signatory hereto understand and agree that the Employer hereby reserves to itself for its exclusive discretion and judgment the following prerogatives which are listed by way of example, but are not necessarily limited to such matters as: determination of the equipment, methods, or procedures to be employed; schedules of work size and/or composition of the work force, and functions or services to be provided. The Employer further reserves the sole right to transfer or sell its business, in whole or in part; to maintain order and efficiency with respect to the work force; and to hire, transfer, layoff, assign work, promote, discipline or discharge employees for proper cause. The Employer shall be the exclusive judge with respect to the qualifications, merit and abilities of employees, and shall determine and establish such rules or regulations it deems necessary for the conduct of its operations and affairs.

SECTION 6 – HOURS OF WORK:

The normal work week shall consist of forty (40) hours. All time worked in excess of eight (8) hours in anyone day or forty (40) hours in anyone week shall be considered as overtime and shall be compensated for at time-and-one-half (1-1/2) the employee's regular hourly rate of pay. Two (2) times the hourly rate shall be paid for all work performed over twelve (12) hours in a day. Employees may be scheduled to work four (4) days of ten (10) hours duration at straight time.

All regular full-time employees will be guaranteed forty (40) hours of work per week.

- 3 - For any day an employee fails to report through his/her own fault, the weekly guarantee shall not apply.

SECTION 7 – HOLIDAY WORK:

Employees required to work on any holidays listed in Section 8 shall receive time- and-one-half in, addition to their holiday pay and shall be guaranteed a minimum of eight (8) hours work.

SECTION 8 – PAID HOLIDAYS:

Employees shall be entitled to holiday pay for the following holidays:

NEW YEARS DAY VETERAN'S DAY PRESIDENTS DAY LABOR DAY MEMORIAL DAY THANKSGIVING DAY FOURTH OF JULY CHRISTMAS DAY EMPLOYEE'S BIRTHDAY (2) FLOATING HOLIDAYS

(A) Employees will be allowed to work on Thanksgiving Day rather than the following Saturday.

(B) In order to be eligible for holiday pay, the employee must be available for work the day before and day after the holiday or have a written "doctor's excuse" to verify illness on either of those days. In order to be eligible for holiday pay, the employee must have been on the Employer's payroll for a thirty (30) day period.

(C) If an employee is scheduled to work a four (4) day, ten (10) hour a day work week and is scheduled to work on a holiday, as listed above, and does not work that holiday, the employee shall receive ten (10) hours of holiday not worked pay, not eight (8). If a holiday falls outside the employee's scheduled work week, he shall receive eight (8) hours of holiday pay.

SECTION 9 – VACATION:

(A) A year for the purpose of determining employee's vacation eligibility shall begin with the anniversary date of employment with Employer in any capacity.

(B) All employees who have been continuously employed by Employer for at least one (1) full year shall be entitled to one (1) week's vacation with full pay. Employees employed for two (2) or more years shall receive two (2) weeks' vacation with full pay. Employees employed for five (5) or more years shall receive three (3) weeks' vacation with full pay. Employees employed for ten (10) or more years shall receive four (4) weeks' vacation with full pay. Employees employed for fifteen (15) or more years shall receive five (5) weeks' vacation with full pay.

- 4 -

(C) No employee shall suffer loss of seniority for vacation accrual because of absence due to injury, sickness or temporary layoff during a one-year period, providing absence does not exceed sixty (60) calendar days. Vacation time shall be prorated after one (1) year of employment. In the event of severance during a year prior to the anniversary date of a higher vacation increment, vacation accrual during that year shall be on the basis of the increased or higher increment. All accrued vacation pay is to be paid to the employee at the time of completion of the last shift prior to the commencement of his/her vacation.

(D) Vacation periods are not to be arbitrarily assigned to employees during the months of November through February unless mutually agreed upon. Based on seniority, vacation periods shall be assigned during the months of March through October.

(E) Whenever possible, and when mutually agreed upon, an employee may stagger or spread his/her vacation period through the year. Employees may take up to one (1) week of accrued vacation in full day increments under the following conditions: One (1) week of vacation is comprised of five (5) daily increments. Employees shall first request vacation in full week increments, as per the current procedures. If an employee wishes to use one week of vacation in less than a full week increment, they must notify the Employer at the time of the initial sign-up, at which time they shall not yet be permitted to sign up for daily increments of vacation time. After every employee has had an opportunity to sign up for vacation in full week increments, employees who wish to use one (1) week of vacation in daily increments may then sign up for this portion of their vacation time in order of overall seniority. Any requests for vacation time not made before the conclusion of this round shall be treated as a floating holiday and considered by the Employer in conformity with the current procedures for floating holidays.

(F) If a holiday occurs during an employee's vacation period, the employee shall receive an additional day's vacation or an additional day's pay at the option of the Employer. The Employer and an employee may agree on a change in the vacation period of such employee after the vacation schedule has been posted, provided it does not affect the vacation period of any other employee on the vacation schedule.

(G) The Employer shall permit up to three (3) drivers and one (1) shop employee to be on vacation the same week. However, the Employer may permit an additional shop employee to be on vacation on a case-by-case basis.

(H) Employees who have accrued at least two (2) full weeks of vacation in a given year may "sell back" one (1) week of accrued and unused vacation time to VSS instead of taking the time off with reasonable notice to the employer.

(I) The vacation selection calendar shall be posted for employees to see the third (3rd) week of October. The first five (5) senior employees shall be allowed to schedule part of all of their vacation. Thereafter, five (5) employees shall be called in seniority order to

- 5 - select their vacation days each day until all employees have been provided the opportunity to select available dates.

(J) If an employee elects not to schedule all of his/her vacation time during their selection period, then the remainder of their vacation shall be selected after all other employees have had an opportunity to schedule their vacation.

(K) Employees may cancel scheduled vacations; however the Company is under no obligation to repost those available dates. An employee who cancels his/her vacation may select alternative available dates.

(L) If an employee is on workers’ compensation, state disability or any approved leave, his/her vacation time shall not be posted for selection.

SECTION 10 – SICK LEAVE:

(A) After attainment of seniority, employees shall accrue sick leave at the rate of six (6) hours per month of employment to a maximum of twenty-seven (27) days. On October 11 of each year, an employee may, at his/her option, sell back to the Employer, at the employee's then existing hourly rate, all such leave in excess of eighteen (18) days.

(B) An employee shall be entitled to draw accumulated benefits when he/she has acquired seniority as defined in this Agreement.

(C) Sick leave payments shall be integrated with State Unemployment Disability Compensation where the employee is also subject to such benefits so that the total will not exceed the employee's regular day's pay.

(D) Sick leave will be payable for days falling during the work week only. In absence of other proof acceptable to the Employer, the Employer shall require a physician’s certificate for sick leave where either the employee has no more accrued sick leave or the employee calls in sick on either Monday or Friday. A “physician's certificate” means that which is actually signed by a licensed physician or nurse practitioner and which proves that the employee's condition was evaluated by same. The Employer will not act unreasonably in requiring a doctor's certificate.

(E) In the event of a disabling injury on the job, an employee shall be entitled to a full day's pay for the day of the injury.

(F) In addition to the other bases for a Group 3 violation, once an employee has exhausted his/her accrued sick leave, any further: absences may constitute a Group 3 violation, for which a written warning is initially applicable. In determining whether or not such further absences shall constitute a Group 3 violation, the Employer will consider any circumstances that the employee claims to be extenuating.

- 6 - SECTION 11 – JURY DUTY PAY:

Seniority employees shall not lose any pay by reason of serving or being called to serve as jurors. The Employer shall pay such employees the difference between their regular compensation and the payment made to them as jurors; provided these employees serve during the course of a regular work shift. If an employee completes duty as a juror and can reasonably report for work before two (2) hours prior to the end of the shift, the employee shall be required to return to work and complete the shift.

SECTION 12 – BEREAVEMENT LEAVE:

Upon request, employees with one (1) or more years' seniority will be paid by the Employer a maximum of three (3) straight time eight (8) hour days in the event of a death in the immediate family (employee's spouse, child, parent, grandparent, grandchild, brother, brother-in-law, sister, sister-in-law, spouse's parent and grandparent). The employee may be required to submit proof of relatives death, If the employee attends an out-of-state funeral he/she shall be entitled to four (4) paid days.

SECTION 13 – UNIFORMS:

(A) The Employer shall furnish and maintain all required uniforms except vests and t- shirts which shall be provided but not maintained. The Employer shall provide boots as the Employer requires. The Employer agrees to supply all safety gear and equipment required by the Employer. The Employer shall provide no more than two (2) pairs of work boots and twelve (12) pairs of work gloves per year. The Employer will re-sole the foregoing work boots as needed. Employees' personal protective equipment (e.g., gloves and glasses), with the exception of work boots, must be stored on the Employer's premises at the end of each work day. The Employer will be reasonable in the application of this section.

(B) Shop Tools: The Employer shall supply heavy equipment tools necessary for the shop. The shop employees are required to have all necessary basic hand tools. All employees who are Mechanics shall be entitled to One Thousand Five Hundred Dollars ($1,500.00) per year reimbursement for tools purchased by the employee which are necessary to perform the employee's job duties. The Employer shall reimburse up to Seven Hundred Fifty Dollars ($750.00) on every March 1st and an additional Seven Hundred Fifty Dollars ($750.00) on every September 1st, provided the tool was purchased within six (6) months and there are proper receipts. Mechanic Helpers are entitled to two (2) Three Hundred Seventy Five ($375.00) reimbursement on dates and restrictions as stated above.

SECTION 14 – SENIORITY:

(A) For the purpose of this Agreement, seniority is defined as an employee's total length of continuous service with the Company computed from the date of his most recent hire.

- 7 -

(B) A probationary period of forty-five (45) working days in a six (6) month period shall be established for new employees. The Employer has the right to request an extension of the probationary period from the Union where the Employer is uncertain if the Employer wishes to offer regular employment to the employee. During such probationary period, the employee may be discharged for any reason which, in the opinion of the Employer, is just and sufficient except for legitimate Union activity. If an employee who has been terminated during the probationary period is re-employed within six (6) months from the date of first hiring, prior service will not be lost in completing the probationary period.

(C) In the reduction of forces due to the slackness of work, when qualifications are equal, the last employee hired shall be the first employee laid off, and in the rehiring, the last employee laid off shall be the first employee rehired until the list of former employees is exhausted.

(D) An employee's seniority shall terminate upon the happening of any of the following events:

1. if he quits; 2. if he is discharged for cause; 3. if he has not been recalled from continuous layoff or has not returned from other approved absence for a period of twelve (12) consecutive months; and 4. upon retirement.

(E) In the assignment of overtime, in situations where economics reasonably permit, seniority shall be followed in a non-rotating basis, provided the employee who is offered work is qualified to perform the work. For purposes of overtime assignments, the parties recognize it is assigned in a non-rotating basis in the following classifications:

Class I Box, Front and Residential Driver

Class II Mechanics

Class III Street Sweeper

Class IV Recycle/yard Waste Driver

(F) Employee bidding rights for job vacancies shall remain in effect.

Relief work on Box and Front Loaders to be assigned on a seniority basis; provided, employee is qualified to do such work. There are separate lists for Box Trucks and Front Loaders. Employees may sign one (1) list or both lists.

- 8 - (G) Throughout the term of this Agreement, each job position posted for bid shall be awarded based on a classification seniority system within that particular job classification. For purposes of this subsection, there are two (2) job classifications:

Group 1: All Employees, except Mechanics and Mechanic Helpers

Group 2: All Mechanics and Mechanic Helpers

Once an employee has bid and has been awarded a job position, he/she shall not be allowed to bid for a different position within the classification for a period of nine (9) months.

(H) Except as otherwise provided, the Employer shall assign any Saturday or Sunday extra-day overtime that has been scheduled on or before Thursday of that same week according to employees' overall seniority among those employees qualified to perform the necessary work, on a non-rotating basis. The Employer reserves the right to cancel this scheduled overtime at any time before the end of the assigned employee's shift (i.e., the employee who was designated to perform such work) on the Friday immediately preceding the Saturday or Sunday on which the work was scheduled to have been performed. Notwithstanding any other provisions in this Agreement that address overtime rates of pay, employees who perform Saturday extra-day overtime work shall be paid at the rate of the job classification applicable to the work being performed.

SECTION 15 – PAY DAY:

All employees shall be paid their full wages on Friday of each week. Work week shall be Sunday through Saturday.

SECTION 16 – DISCHARGE/DISCIPLINE:

(A) The Employer shall not discharge nor suspend nor take any disciplinary action with respect to any employee without just cause. The parties recognize there are three (3) distinct group of Employer work rules with three (3) distinct consequences:

I. Group I Rules:

Group I Rules apply while an employee is on duty or on Company property. Violation of a Group I Rule, as listed separately in the rules of conduct, will subject an employee to immediate termination.

II. Group II Rules:

Group II rules, as listed separately in the rules of conduct, apply while an employee is on duty or on Company property. A violation of a Group II rule may result in a written warning notice. An employee is subject to discharge if

- 9 - the employee is issued four (4) or more Group II warning notices during any nine (9) month period.

III. Group III Rules:

Group III rules refer to the Employer's attendance policies. A total of four (4) written attendance violations in a one hundred eighty (180) day period will result in immediate termination.

(B) Copies of written warnings, discharge or suspension letters given to employees in their next pay envelope or shall be sent by certified mail to the employee and to the Union within five (5) working days of the Employer's knowledge of the occurrence leading to such action.

(C) If an employee feels he/she has been unjustly disciplined, the employee shall have the right to appeal to the grievance procedure.

(D) Any employee may be suspended in the event his/her driving record results in insurance premiums to the Employer that are in excess of normal premiums and which are attributable to the classification of the employee as an "assigned risk." At employee's option, the employee may retain his/her employment provided he/she authorizes the Employer to deduct from his/her salary an amount equivalent to the difference between the new assigned risk insurance premium and the normal insurance premium previously charged. The suspension shall terminate upon the verification from the insurance company that the employee is insurable under the normal insurance policy. The employee shall be reinstated immediately if the suspension period is less than eighteen (18) months. If the suspension period is more than eighteen (18) months, the employee shall be entitled to the next available vacancy for which he/she is qualified. No seniority shall accrue during any suspension period.

SECTION 17 – GRIEVANCE AND ARBITRATION PROCEDURE:

Any dispute concerning the interpretation of this Agreement or its application or any dispute regarding wages, hours and working conditions, to the extent the same are within the scope of this Agreements shall be adjusted as follows:

The employee shall first attempt to resolve the issue with his/her immediate supervisor or other representative designated by the Employer within seven (7) calendar days of the date of occurrence or when the employee and/or the Union knew or reasonably should have known or the basis for the grievance or the grievance shall be deemed waived. The employee may request the presence of a Union Steward who shall be part of any attempted settlement. A grievance relating to disciplinary suspension or discharge shall be presented in writing, by the Union or the employee, within five (5) working days or shall be deemed waived. A Union representative and Employer shall within seven (7) calendar days from receipt of such written notice attempt to reach a settlement.

- 10 -

If the matter is not settled between the Union and the Operations or General Manager within seven (7) calendar days from receipt of the written notice, the dispute shall be submitted to a Board of Adjustment for final and binding arbitration. The Board of Adjustment shall consist of two (2) members to be appointed by the Employer, two (2) members to be appointed by the Union and the fifth (5th) member who shall be a neutral arbitrator mutually agreed upon by the Employer and Union. Employer members shall not be employed by Vacaville Sanitary Service and Union members shall not be officers or members of Local 315.

Commencing January 1, 2008, the neutral member shall be Arbitrator Frank Silver. Arbitrator Silver shall be appointed for a one (1) year period. Thereafter the parties may agree to renew the appointment of Mr. Silver or select a new arbitrator who shall sit for the next one (1) year. Neither said Board of Adjustment nor said fifth (5th) member shall be authorized or empowered to modify, amend, revise, add to, delete from or otherwise alter the terms of this Agreement.

1) Each October the Union and the Employer shall mutually agree to renew the appointment of the current arbitrator or select a new one. Once the decision to renew or change arbitrators has been made the parties shall request bi- monthly dates for the upcoming year.

2) If a matter has been scheduled for arbitration and is thereafter cancelled by either party less than fourteen (14) days prior to the scheduled day of arbitration, the party canceling the arbitrations hall bear the entire cost of the arbitrator’s fee for that hearing. Each party shall bear the cost of their own committee members and witnesses for the arbitration.

If no matter is pending to be heard by the Board of Adjustment, notice of cancellation will be delivered to the neutral fifth (5th) member at least fourteen (14) days prior to the scheduled hearing date

The majority decision of the Board of Adjustment and such fifth (5th) member shall be final and binding upon both parties and upon employees covered by this Agreement. Where the Board of Adjustment is deadlocked, the neutral fifth (5th) member shall cast the deciding vote. Only evidence disclosed at the first or second steps of the grievance procedure may be considered by the Board of Adjustment, unless such evidence did not exist at the time the grievance was submitted in steps one or two, or unless the party desiring to submit such evidence did not know or could not have reasonably known the existence of said evidence.

The Board of Adjustment can render a bench decision at the time of the hearing of the matter or request the submission of briefs from both parties. In addition, either party can request to submit briefs to the Board of Adjustment through the neutral fifth (5th) member. Upon submission of briefs, the Board of Adjustment through the neutral fifth

- 11 - (5th) member shall render a written decision no later than thirty (30) days after submission of written briefs. Regardless of the date of decision by the Board of Adjustment, no back– pay award may exceed one hundred twenty (120) calendar days.

Each party to this procedure shall bear and assume all its own cost and expenses and the costs and expenses of the appointed fifth (5th) member shall be borne equally by each party.

The partied can waive the time limits set forth herein by mutual consent, and then only in writing.

Either party desiring to use counsel for presentation of its case before the Board of Adjustment must notify the other party within ten (10) calendar days of the date of hearing of its intent.

SECTION 18 – HEALTH AND WELFARE:

The Employer agrees to pay all premium costs for health insurance provided by the Teamsters Benefit Trust (TBT) and Welfare Plan I for all eligible employees and employee dependents. The parties agree the Employer may provide its own or other health and welfare plans for Union employees, provided such benefits are equal to or greater than the benefits under the Teamsters Benefit Trust (TBT) and Welfare Plan I and the cost to the Employer is less than the current cost of the Union health and welfare plan and appropriate Union representatives have had a chance to review and approve the proposed plan. The cost of any health plan shall be at the sole expense of the Employer.

SECTION 19 – NO REDUCTION:

No employee shall suffer any reduction in pay or loss of working conditions through adoption of this Agreement. This provision shall not apply to reclassification of employees. All employees regularly employed shall retain their present status.

SECTION 20 – MEAL PERIODS:

Each employee shall be granted meal time off not more than five (5) hours after beginning of the shift. Other arrangements for meal time may be made by mutual agreement between the Employer and the local Union.

SECTION 21 – TIME CARDS:

Employer shall provide a satisfactory means of registering the reporting time and quitting time, the records of which shall be accessible to the Business Representative of the Union at all times during working hours. The Union shall have the privilege to install its own timekeeping system if the Employer's system is found unsatisfactory. Employees shall verify time cards by signing same.

- 12 - SECTION 22 – VISITS BY UNION REPRESENTATIVES:

Authorized representatives of the Union will be admitted to the Employer's plant at reasonable times to assist the settlement of grievances and to observe the administration of the Contract. This privilege will be observed so as not to interfere unnecessarily with the normal work.

SECTION 23 – REMITTANCE ADVICE:

The stub accompanying an employee's pay check shall separately state the following items: regular hourly pay, overtime, holiday pay, social security, disability insurance, withholding tax and any other deductions authorized by the employee. The Employer shall make available on request, year to date information concerning the foregoing.

SECTION 24 – OPERATOR'S LICENSE:

All employees shall be in possession of and shall maintain a valid California driver's license Class A or B as required by law for the work the employee is to perform. These licenses are required even if the employee's driving responsibility is not full-time.

SECTION 25 – WAGES:

Beginning First Full Pay Week Of:

Classification: 10/08 10/09 10/10 10/11

Driver 24.63 25.74 26.83 27.90 Mechanic 26.44 27.63 28.80 29.95 Mechanic Helper 25.75 26.91 28.05 29.17 Street Sweeper 22.57 23.59 24.59 25.57 Delivery Person 13.33 13.93 14.52 15.10 Labor- Utility Person 12.96 13.54 14.12 14.68 If and when a journeyman mechanic is utilized.

(A) Any employee classified as a foreman shall receive $1.00 per hour above regular wage.

(B) Any employee who works a shift that is scheduled to terminate after 7:00 p.m. shall be paid an additional $1.00 per hour.

(C) New employees shall receive seventy percent (70%) of the applicable wage rate during their first year of employment, eighty percent (80%) of the applicable wage rate during their second year of employment, and ninety percent (90%) of the applicable wage rate during their third year of employment. After completing their third year, the above

- 13 - wage scale shall become applicable. The year shall be determined with reference to the employee's anniversary date of employment.

(D) Employees hired after the execution of this contract shall not be guaranteed forty (40) hours of work as provided in Section 6 until the employee has successfully completed three (3) full years of employment.

(E) No employee shall suffer a reduction in his current hourly rate of pay as a result of the implementation of this paragraph.

MISSED PICKUPS – Pickups that are missed through fault of the crew must be picked upon on employees' own time if in excess of eight (8) hours. If pickup is missed for nonpayment of bill or new pickup, time must be paid for in addition to regular pay if in excess of eight (8) hours.

SECTION 26 – STRIKES OR LOCKOUTS:

There shall be no strikes or lockouts by either party for the duration of this Agreement provided that in the event either party refuses to comply with the Board of Adjustment section hereof, the other party shall be free to strike or lockout. It shall not be a violation of this Agreement or cause for discharge for any employee to refuse to cross a lawful properly sanctioned picket line.

SECTION 27 – SUCCESSOR CLAUSE:

This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns. Successors and assigns for the purpose of this article applies to a sale or other transfer of the business and ownership of the Company or sale of a governmental granted franchise. A sale of a governmental franchise shall have as a condition of sale the assumption of this Agreement. A sale of assets, either in whole or in part, except the sale of a franchise, which does not involve continuation of the workers of the Company to operate such sold or transferred business or assets, shall not be subject to the provisions of this article.

SECTION 28 – PENSION PLAN:

The contributions required to provide for Enhanced Early Retirement will not be taken into consideration for benefit accrual purposes under the Plan. The additional contribution for the PEER must at all times be 6.5% of the basic contribution and cannot be decreased at any time.

The total amount due for each calendar month shall be remitted in a lump sum not later than ten (10) days after the last business day of each month. The Employer agrees to abide by such rules as may be established by the Trustees of said Trust Fund to facilitate the determination of the hours for which contributions are due, the prompt and

- 14 - orderly collection of such amounts and the accurate reporting and recording of such hours and sum amounts paid on each member of the bargaining unit. Failure to make all payments herein provided for within the time specified shall be a breach of this Agreement.

The Employer shall pay pension premiums in to the Western Conference of Teamsters Retirement Fund to establish and maintain Pension benefits for covered employees as required by this contract. No payment of vacation at termination except in the case of retirement. Payments are to be as follows on all hours compensated:

Year Base Peer Total Contribution Contribution Contribution 10/08 3.36 .22 3.58 10/09 3.56 .23 3.79 10/10 3.77 .25 4.02 10/11 4.00 .26 4.26

The parties agree that because the Trustees of the Fund will rely on the execution of this Agreement to restore or not to reduce benefits to Retiring Employees as indicated above, this section regarding pension may not be modified, terminated or rescinded by the parties, directly or indirectly, without the express written consent of the Trustees during the life of this Agreement.

The Bargaining Parties agree that the Employer shall make pension contributions to the Western Conference of Teamsters Pension Trust Fund on behalf of each member of the bargaining unit from the first compensable hour. Contributions shall be paid on all straight time hours worked to a weekly maximum of forty (40) hours.

Time paid for, but not worked, such as holiday, vacation and sick pay shall be considered as time worked for the purpose of the section.

SECTION 29 – SAVINGS CLAUSE:

Any clause or section of this Agreement which may be ruled illegal by a proper court or board having authority to do so shall have no force or effect on the remaining provisions of this Agreement.

SECTION 30 – DUES DEDUCTION/D.R.I.V.E.

The Employer shall, upon proper authorization, deduct the dues of each memorandum and shall deduct the initiation fee of each new employee and shall remit same to Union. The dues deduction of each member will be deducted on the second pay period of each month.

- 15 - D.R.I.V.E.: The Employer agrees to deduct from the paycheck of all employees covered by this Agreement voluntary deductions to DRIVE. DRIVE shall notify the Employer of the amount designated by each contributing employee that are to be deducted from his/her paycheck for all weeks worked. The phrase “weeks worked” excludes any week other than a week in which the employees earned a wage. The Employer shall transmit to DRIVE National Headquarters on a monthly basis, in one check, the total amount deducted along with the name of each employee on whose behalf a deduction is made, the employee’s social security number, and the amount deducted from the employee’s paycheck. The International Brotherhood of Teamsters shall reimburse the Employer Annually for the Employer’s actual cost for the expenses incurred in administrating the payroll deduction plan.

SECTION 31 – TERM OF AGREEMENT:

This Agreement shall be binding from the 1st day of October 2008, until September 30, 2012, and shall be considered as renewed from year to year thereafter unless either party hereto shall be given written notice to the other of their desire to have the same modified, and such notice must be given at least sixty (60) days prior to the expiration date of this Agreement. If such notice is not so given, then this Agreement is to stand as renewed for the following year.

VACAVILLE SANITARY SERVICE TEAMSTERS AND CHAUFFEURS UNION LOCAL NO.315

By: By:

Title: Title:

Dated: Dated:

- 16 - MEMORANDUM OF UNDERSTANDING

This memorandum of understanding is supplemental to the 2008-2012 collective bargaining agreement between Teamsters and Chauffeurs Union Local No. 315 and Vacaville Sanitary Service.

This letter will confirm the parties' understanding concerning a certain employee benefit that arises under Section 10 of the recently negotiated collective bargaining agreement (described above) covering certain drivers and mechanics of Vacaville Sanitary Service. Specifically, it is our understanding that an employee may, only upon his/her retirement or voluntary termination of employment (i.e., resignation), sell back to the Employer all of his/her accrued and unused sick leave at the time of separation at his/her then existing hourly rate.

The signature in the space provided below will indicate each respective party's concurrence with the foregoing. The parties acknowledge that the signatures below are binding on each of them, respectively. A fully executed copy of this memorandum is to be expressly incorporated into the foregoing collective bargaining agreement as an Appendix thereto.

VACAVILLE SANITARY SERVICE TEAMSTERS AND CHAUFFEURS UNION LOCAL NO.315

By: By:

Title: Title:

Dated: Dated:

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