79-006 -Original Franchise Agreement Los Altos Garbage Waste Collection, Reso. 4062RETURN TO:-
�Cit',' of Cupertino
10 t Ij Q ' T6'.-re Avenue 01, yo. 4062
Cup'��_rtitjo, CA 95014
OF THE CITY COUNCIL OF THE CIT's OF CUpERTINO
A j,,ES0'LUTIO'1'1 V.O-i,l OF A FRANCHISE
APPp,OVING AND AUTHORIZING EXECU GE COMPANY For-, REFUSE
1� arFNT
AG ET M1 TK LOS ALTOS CiARFIA
COLLECTION
gand City Of Cupertino
I.T11ER'EAS, Los Altos Garbac,e company review provisions
one occasiOn to
representatives have 'not on more than removal and disposal within the
and specifications on refuse collection'
limits Of the city; and
has exerciscd its Option to
WIIEREAS, Los Altos Garbage COTnPcA"Ly ing ljovember 15, 1975; and
I
continue refuse Operations for five years commencing
company and city representatives have agreed to franchise
j,THFT,Z.EAS, both considerations to be
specifications and improve, the original
agreement terms, conditions, period which update and
effective during this five year PC
agreement for refuss operations; t tile Mayor and the City Clerk be
BE IT RESOLVED tha
11ow, THEREFORE eemcnt for the collectiong
authorized to execute the franchioe agr or the City Of Cupp.rtino attached
transportation and dl - sposal of refuse f
hereto and by this reference made part hereof. theCity Council- of the
OPTED at a regular meeting of
uary 1976, by the
I. As AND ADOPTED day of__12L
City Of Cupertino this ___5t-h-
following vote:
Membersof t17e CjtjConci until
Vote
AYES: Meyers, Nellis, Sparks, Jackson
NOES: None
ABSENT: Frolich
A39TAIN: None
APPROVED:
/s/ James E. Jackson
Mayor) City of Cupertino
ATTEST:
/s/ Wm. E.'Ryder
City Clerk
ATTACHMENT
RES. NO. 4062
FRANCHISE AGREEMENT
FOR THE
COLLECTION, TRANSPORTATION AND DISPOSAL OF REFUSE
FOR THE CITY OF CUPERTINO
This agreement is made and entered into this 5tb day of January 1976,
by and between the CITY OF CUPERTINO, a municipal corporation of the State of
California (hereinafter referred to as "City"), and LOS ALTOS GARBAGE COMPANY
(hereinafter referred to P-, "Company").
Whereas, Section 6.24.120 of the Cupertino Municipal Code authorizes the
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issuance of an exclusive franchise for the collection and disposal of refuse
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within the City; and
Whereas, Section 6.24.120 of the Cupertino Municipal Code provides that the
terms and conditions under which the franchise holder must operate are to be
specified in the applicable franchise or contract;
NOW, THEREFORE, in consideration of the award of said franchise and the mutual
covenants and conditions set forth herein, the parties hereto agree as follows:
ARTICLE 1. GENERAL CONDITIONS AND TERM
1.10 Term and Exclusiveness. City grants to Company for a period of
five (5) years commencing November 15 1975, the exclusive contract,
right and privilege to collect, transport and dispose of all refuse,,
garbage or waste, as defined in Section 6.24.050 of the Cupertino
Municipal Code, produced, kept and/or accumulated in City.
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1.20 Applicable Laws. This agreement is made and entered into pursuant
to the provisions of Chapter 6.24 of the Cupertino Municipal Code, as it
stands or subsequently may be amended, which is hereby incorporated
and made a part hereof by reference, and pursuant to such State and
Federal statutory or administrative laws and rules as bind the parties.
1.30 Use of City Streets. City grants to Company during the term of this
agreement the right and privilege to use and operate upon the City
maintained streets and other rights -of -way to the extent necessary to
perform Company's obligations specified herein.
1.40 Operation as Separate Entity. The Company shall not use a firm name
containing the words "City" or other words implying municipal ownership.
1.50 Personnel of Company.
1.51 The Company shall assign a qualified person to be in charge of
its operations in the City, and shall inform City of such
person's identity and experience. It shall be such . 11 11 :1
person!s responsibility to assure that all collection
operations are effectively performed and all complaints
courteously handled and satisfactorily resolved.
1.52 The City has the right to request the dismissal of any employee
of the Company who violates any provision hereof or who is
habitually reckless, negligent, or discourteous in the per-
formance of duty.
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1.60 Office Establishment and Maintenance. Company shall establish and
maintain an office where service may be applied for and complaints
made. Such office shall have a responsible individual available
daily between the hours of 8:00 a.m. and 4:30 p.m., excepting
Saturday, Sunday, and such holidays as are recognized by Company
and approved by the City Manager.
1.70 Work to be Done. The work to be done under this agreement shall
consist of furnishing the personnel, labor and equipment required
for the collection, removal and disposal of all refuse, garbage and
other solid wastes generated within the corporate limits of the City
of Cupertino in accordance with the specifications and terms set
forth in this agreement in a manner satisfactory to the City Mangger.
1.80 Rules and Regulations of the City .Manager. The City Manager shall
have the power to establish rules and regulations respecting the
accumulation, collection, transportation and/or disposal of refuse
not inconsistent with the provisions of this Contract or with the
provisions of any applicable ordinances or laws, providing such rules
and regulations are found to be necessary or convenient by the Ci-,ty
Manager for the enforcement of the provisions of this Contract, the
provisions of any and all applicable sanitary laws and ordinances,
and the preservation of the public peace, health and safety; and the .
Company shall comply with any and all such rules and regulations of
the City Manager
ARTICLE II. COLLECTION SERVICE
The Company shall provide regular, scheduled
2.10 Regular Hours and Days.
refuse, garbage and waste collection service on a city—wide basis at
least once per week,or oftener, as arranged for by customer. Company
shall not alter or adjust collection schedules or routes without
providing prior notice to all service addresses, and any schedule
modification shall not result in reduced service frequency to any
customer. Company shall at all times comply with City noise and
traffic ordinances in collection operations.
2.20 Service Information. The Company shall supply all occupants of
premises with printed information cards approved by the City Manager
containing information regarding amounts of refuse which will be
collected, complaints procedures, rates, regulations, and days of
collection. Such cards shall be replaced every two years, and in
addition, upon request by occupants or owners of any premises, and
in advance of route, rate, or regulation changes.
2.30 Waste Collection Records. The Company shall keep records of wastes
collected and maintain these separately from other company operations.
Route status sheets for each collection route shall be maintained by
Company indicating the address of each service, type and frequency of
service and such other pertinent information as may be required by
the City Manager. City shall be provided waste collection reoords
and route status sheets upon request. The Company shall provide a
quarterly summary of collection operations within the City, including
number of vehicles and amounts collected.
2.40 Missed Collections. Company shall collect and remove from any and
all premises, within twenty—four (24) hours after demand, notice or
request, any and all refuse which Company shall have failed to collect
and remove as required at the regular scheduled time.
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2.50 Lit I ter, bt--bris o,r, Spillage on Streets. CUILApany shall not litter
premises in the process of making collections nor allow refuse to bluw
or fall from any vehicle used for collections. Company shall replace
lids or covers on containers immediately after emptying the same and
shall repair or replace at its expense any containers damaged as a
result of its handling thereof, normal wear and tear excepted. Company
shall clean up all spills including oil and debris on the streets
resulting from its operation.
2.60 CollectionsofCity Wastes-
2.61 Company, without cost.or charge to the City, shall collect the
refuse deposited in sidewalk waste containers, placed by the
City on sidewalks throughout the business and commercial
districts, in the same manner and on the same days that refuse
collections are made by the Company from premises within said
business and commercial districts.
2.62 Company, without cost or charge to the City, shall collect the
refuse at various City facilities in the same manner and on the
same days that refuse collections are made by the Company from
premises within the neighborhoods where City facilities are
located, or on a more frequent schedule as may be determined by
the City.
2.70 Areawide Cleanup Service. Company shall provide such labor supervision
and equipment, at times and dates agreed upon between the parties,
sufficient to conduct an areawide cleanup collection of accumulated
seasonal and extraordinary refuse. Terms and consideration,7,for such
service shall be in addition to the franchise terms and considerations
specified in this agreement. Company shall cooperate in any and every
way with City to effectively provide such cleanup services, including
accepting wastes collected by City personnel, and permitting City
personnel to inspect cleanup operations.
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2.80 Extension of Services. Company shall extend routes and services
promptly upon annexation of new areas to the City or upon other
increase in service demand. Service shall be provided upon all
dedicated public streets and private roads when possible, excepting
those specific addresses waived by the City Manager.
2.90 Place of Collection.
2.91 Residential refuse shall be collected by Company outside of the
premises, free of all enclosures and access restrictions,
or at such other location approved by th:� City Manager. Company
may establish differential rates for customers desiring alternate
collection points at the service address, provided, however,
that all such rates are established in accordance with the
provisions of section 6.24.120 of the Cupertino Municipal Code.
2.92. Company shall provide detachable containers on a rental basis
for use by apartment, commercial, business and industrial
customers. Company shall be responsible for the general repair
and upkeep of all detachable containers. Containers shall be
returned to the proper storage location by Company after
collection. Detachable containers shall not be permitted in
locations in conflict with City's architectural and site control
design standards.
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ARTICLE 3. EQUIPMENT AND FACILITIES
3.10 Adequacy. All collection vehicles and equipment shall be so con-
structed and maintained to prevent leakage, spillage and overflow.
The Company shall maintain all vehicles, detachable containers and
debris boxes in a clear and sanitary condition, and shall perform
such maintenance necessary to assure each vehicle and piece of
equipment capable of performing all functions for which it was
designed.
3.20 Markings. All trucks and equipment shall be clearly identified
with the Company name and current telephone number.
3.30 Right. of Refusal. City may refuse to permit the operation within,
the City limits of any vehicle not adequately serviced, cleaned, or
in need of repair. Removal of vehicles for servicing and repair
shall not relieve the Company from maintaining all collection
schedules.
3.40 Disposal Site Availability. Company shall maintain adequate disposal
facilities for disposal of all refuse and waste generated within the
City limits of Cupertino. Unavailability of proper disposal facilities
shall not remove Company from responsibility under this agreement.
ARTICLE 4. SERVICE RATES: REVIEW
4.10 Rate Authorization. Company shall not charge any amount in excess of
the approved service rates for any services required or permitted to
be performed by the terms of this franchise. Approved service rates
shall be the rates established by resolution of the City Council.
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4.20 Approved Rate Schedule; Revisions. Approved service rates shall be
the rates contained in City Council Resolution No. 3606 as the basis
for this franchise agreement. Revisions to these rates, if any,
shall become effective on the date specified by resolution of the
City Council providing for such revisions, but shall not be retroactive.
4.30 Review Concepts. Rate review shall be based on financial and other
applicable operational data. Such data shall include, but not be
limited to, historical financial statements required to be filed
with the City and to projections of costs related to service levels
in the format and detail specified by the City. Rate revisions shall
not be made to compensate the Company for losses incurred prior to
the effective date of the revised service rates, nor shall rate revisions
be made to penalize the Company for profits realized prior to the
effective date of the revised service rates. Data submitted to sub-
stantiate rate increases shall pertain only to operations within the
City of Cupertino corporate limits. Where collection routes involve
services within and without the City limits, only that portion of
the route and its associated costs and revenues within the City
shall be considered.
4.31 Differential Rates. Differential rates for similar services may be
established for those portions of the City where terrain, density or
other factors have a demonstrated effect upon Company operational
economy and profitability. Rates thus established shall be applied
to services only in those geographic or other clearly identifiable
circumstances for which they are approved by the City Council.
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For rate -:view purposes, all operating c s and revenues for
differential rate areas must be maintained separately from other Company
financial data.
4.40 Consideration of Resource Recovery Revenues. Revenues derived
through resale, usage, processing, or conversion of secondary materials
or energy from solid wastes collected by Company within City are
to be considered as company revenues, and for rate review purposes
shall offset company costs of collection, transport and disposal.
ARTICLE 5. ACCOUNTING PROVISIONS.
5.10 Financial Reports for Rate Review. Financial reports and operating
data required by the City for the purpose of any service rate review
shall be furnished by the Company at no expense to the City and
shall be prepared in the manner and form prescribed by the City.
5.20 Accounting Method. The accounting records of the Company, for
purposes of billings, collections and payments of franchise fees,
shall be kept on a "cash basis" and the operating year for financial
and accounting purposes shall begin October 1 and end September 30.
5.30 Financial Reporting, Requirements. The Company shall provide the City
annually with copies of an annual audit prepared by a certified public
accountant who has annexed his opinion thereto. The City Manager may
specify the form and detail of the annual audit and may inspect the
financial records of the Company at all reasonable times for any
purpose relevant to the performance or enforcement of the franchise
provisions.
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ARTICLE 6. BILLING AND COMPENSATION.
6.10 Company _,Billing ..,and Collection. City allows Company to bill to and
collect from persons receiving services the appropriate sums of money
due for all such services, utilizing current rates approved by the City
Council. Billing and collection shall be conducted either monthly
or quarterly for each account, but in no case less frequently than
once per calendar quarter.
6.11 Non -liability- of City. Neither the City nor any of its officers or
employees shall be liable for or in any way be responsible for the
payment of any service rates or charges due the Company for performing
services within the City corporate limits.
6.12 Remittance by Company. On or before the 10th day of each month
during the term of this contract, Company shall remit to City a sum
of money equal to ten percent (10%) of the gross revenues collected
by the Company within the City limits during the preceding calendar
month. Each monthly remittance to City shall be accompanied by a
statement detailing gross receipts from operations conducted or
permitted within the City pursuant to this agreement for the period
covered.
ARTICLE 7. INTERRUPTION OF SERVICE BY LABOR DISPUTE.
7.10 Temporary Possession by City. In the event the refuse collection
or disposal services of the Company are interrupted by a labor dispute
and scheduled collection or disposal services are discontinued for
more than seventy-two hours, the City shall have the right to forth-
with take temporary possession of all facilities and equipment of
the Company for the purpose of continuing the service which the
Company has agreed to provide to preserve and protect the public
health and safety. The City shall have the right to retain possession
of said facilities and equipment and to render the required service
until the Company can demonstrate to the satisfaction of the City
Council that required services can be resumed by the Company; provided,
however, that such temporary assumption of the Company's obligations
under this Franchise agreement shall not be continued by the City for
more than one hundred twenty days from the date such operations were
undertaken. Should the Company fail to demonstrate to the satis-
faction of the City Council that required services can be resumed by
the Company prior to the expiration of the aforementioned one hundred
twenty days, the Franchise shall be forfeited and the rights and
privileges granted in such Franchise shall be cancelled and annulled.
7.20 Gross Revenue to City. During any period in which the City has
temporarily assumed the obligations of the Company under this Franchise
agreement, the City shall be entitled to the gross revenue attributable
to operations during such period and shall pay therefrom only those
costs and expenses applicable or allocable to said period. The
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excess, if any, of revenue over applicable or allocable costs and
expenses during such period shall be deposited in the treasury
of the City to the credit of the General Fund. The loss, if any,
during such period shall be a charge against the Company and shall
be paid to the City by the Company upon demand. Final adjustment
and allocation of gross revenue, costs and expenses to the period
during which the City temporarily assumed the obligations of the
Company shall be determined by an audit by a certified public
accountant and prepared in report form with his opinion
annexed thereto.
7.30 Temporary Employment by City. Employees of the Company may be
employed by the City during any period in which the City temporarily
assumes the obligations of the Company under this Franchise. Provided,
however, that the rate of compensation to be paid such employees, or
any other employees, shall be the rate or rates in effect at the time
the Company's service was interrupted by the labor dispute.
ARTICLE 8. TERMINATION OF FRANCHISE.
8.10 Cancellation by City. All terms and conditions of the Franchise
agreement are considered material and in the event the Company defaults
in the performance of any of the covenants or agreements to be per-
formed by it under the terms of said Franchise agreement, the City
shall give the Company thirty (30) days written notice, either by mail or by
personal service, setting forth the default, and if the Company fails,
neglects or refuses for a period of more than thirty (30) days thereafter to
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make goon or perform the default, then Cl-,, without further notice
and without suit or other proceedings, may cancel and annul the rights
and privileges granted in said Franchise.
8.20 Possession of Assets. In the event of termination of the Franchise
for default by the Company as hereinabove specified, the City
shall have the right forthwith to take possession of trucks and
other equipment of the Company, used to perform work under this
Franchise. The City shall have the right to retain possession of
said trucks and equipment until other suitable trucks and equipment
can be purchased or otherwise acquired by the City for said purpose
and shall pay the Company the reasonable rental value of such trucks
and equipment during the time the same are used by the City for said
purpose. The City shall also have access to the Company's records
for the purpose of billing service accounts during the period the City
is providing refuse collection and disposal services, and shall retain
all fees collected for such services.
8.30 Litigation. In the event of any litigation arising out of a breach
of this Franchise agreement in which the City is the successful party,
the Company shall pay to the City any and all costs and expenses in
connection with such litigation, together with any and all attorney fees
which the City may be required to pay in connection with said litigation.
ARTICLE II. ASSIGNMENTS
Company shall not assign this Franchise, or any interest therein, or
any privilege or right granted therein, without the written consent of
the Council of the City of Cupertino, first had and obtained, and then
only to a person or persons approved by said Council subject to such
terms and conditions as said Council may require. A consent to one
assignment shall not be deemed to be a consent to any subsequent assign-
ment. Any assignment without such consent and approval shall be void and
I
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shall, at the option of City, terminate this Franchise and the
license and privileges granted herein. This contract shall not,
nor shall any interest therein, be assignable, as to the interests
of the Company, by operation of law, without the written consent of
said Council- expressed by ordinance or resolution.
ARTICLE 12. LEGAL LIABILITY, INSURANCE, BONDS
12.10 Public Liability Insurance. Company and his subcontractors, if
any, shall, at their sole cost and expense, obtain and maintain in
full force and effect throughout the entire term of this Franchise
agreement, public liability insurance, approved by the City Manager
of the City of Cupertino and approved as to form by the City Attorney of
said City. Such policy or policies shall insure said Company and his
subcontractors and the City, its officers, agents and employees, and
each of them against liability for bodily injury or death to and of
any person or persons and for any property damage, arising or resulting
lting
from the operations of the Company or his subcontractors in conducting
the business hereinabove licensed and authorized. Minimum bodily injury
or death coverage provided by said insurance shall be One Hundred Thousand
($100,000.00) Dollars for bodily injury or death of each person and Five
Hundred Thousand ($500,000-00) Dollars for bodily injury or death of two
or more persons, per each occurrence; property damage coverage shall be a
minimum of Fifty Thousand ($50,000.00) Dollars per each occurence.
Policies or certificates of said insurance, approved as above mentioned,
shall be filed with the City Clerk of said City within ten days after
date of this contract. The policy of insurance shall contain a provision
stating that said insurance is primary coverage and will not be cancelled
by the insurer except after filing with the City Clerk of City twenty (20)
days' written notice of any cancellation so proposed. Copies of such
policy or policies or certificates evidencing the same shall be on file
at all times in the office of the City Clerk.
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ARTICLE 12. LEGAL LIABILITY, INSURANCE, BONDS
12.10 Public Liability Insurance. Company and his subcontractors,
if any, shall, at their sole cost and expense, obtain and
maintain in full force and effect throughout the entire term
of this Franchise agreement, public liability insurance,
approved by the City Manager of the City of Cupertino and
approved as to form by the City Attorney of said City.
Such policy or policies shall insure said Company and his
subcontractors and the City, its officers, agents, and
employees, and each of them against liability for bodily
injury or death to and of any person or persons and for any
property damage, arising or resulting from the operations of
the Company or his subcontractors in conducting the business
hereinabove licensed and authorized. Minimum bodily injury
or death coverage provided by said insurance shall be One
Hundred Thousand ($100,000.00) Dollars for bodily injury or
death of each person and Five Hundred Thousand ($500,000.00)
Dollars for bodily injury or death of two or more persons,
per each occurrence; property damage coverage shall be a
minimum of Fifty Thousand (50,000.00) Dollars per each
occurrence. Policies or certificates bf said insurance,
approved as above mentioned, shall be filed with the City Clerk
of said City within ten days after date of this contract. The
policy of insurance shall contain a provision stating that said
insurance is primary coverage and will not be cancellable by the
insurer except after filing with the City Clerk of City twenty (20)
days' written notice of any cancellation so proposed. Copies ok
such policy or policies or certificates evidencing the same shall be
on file at all times in the office of the City Clerk.
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12.30 Faithful Performance Bond. Upon execution of this Franchise
agreement Company shall furnish to the City and shall file with
the City Clerk of the City a corporate surety bond, approved by
the City Manager of the City of Cupertino and approved as to form
by the City Attorney of said City, executed by the Company as
principal and by a corporate surety as surety, in the sum of
Five Thousand ($5,000.00) Dollars, conditioned upon the faithful
performance, by Company and his subcontractors, if any, of this
agreement. In lieu of such bond, Company may provide the City
with such other security for faithful performance as may be
approved by the City Manager.
12.40 Workman's Compensation Insurance. Company and his subcontractors,
if any, shall obtain and maintain in full force and effect
throughout the entire term of this Franchise agreement full
Workman's Compensation Insurance in accordance with the provisions
and requirements of Division IV of Workman's Compensatinn and
Insurance of the Labor Code of the State of California and other
applicabl6.laws. Certificates of such insurance, approved by the
City Manager and approved as to form by the City Attorney, shall
be filed with the City Clerk of the City. Company shall
immediately inform City of any cancellatinn, withdrawal and/or
change of any such insurance.
12.50 Company to Protect and'Hold Harmless the City. Company shall
protect and save harmless the City, its officers, agents and
employees, for and from any and all loss, liability, claims, demands,
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actions or suits, of any and every kind and description,
arising or resulting from or in any way connected with any
operations of the Company or its subcontractors in exercising
any license or privilege granted to him by this Franchise
agreement or by any ordinance of the City, or arising or
resulting from the failure of Company of his subcontractors to
comply in all respects with the provigions and requirements
of this Franchise agreement, of all applicable ordinances of
the City and of all other applicable laws. Company shall, upon
demand of City, at Company's sole cost and expense, defend, and --"provide
attorneys to defend the City, its officers, agents and employees
against any and all claims, actions or suits brought against City,
its officers, agents and employees, arising or resulting from or
in any way connected with the above -mentioned operations of Company
or his subcontractors or his subcontractor's failure to comply with
this Franchise agreement and with the ordinances and laws hereinabove L
mentioned.
12.60 Waivers. The waiver by City of any breach or violation of any term, cc
covenant or condition of this agreement or of any provision, ordinance
or law shall not be deemed to be a waiver of such term, covenant,
condition, ordinance or law, or of any subsequent breach or
,,violation of the same of or of any other term, covenant, condition,
ordinance or law. The subsequent acceptance by City of any license
fee or of any other moneys which may become due 'hereunder to the
City shall not be deemed to be a waiver of any preceding breach
or violation by Company of any term, covenant or condition of this
agreement or of any applicable law or ordinance.
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12.70 Performance a Condition. This Franchise agreement and the license
and privileges herein granted to Company is and are conditioned
upon the faithful performance by the Company and by each and every
one of his subcontractors, if any; of each and all of the covenants
and provisions herein agreed to be performed by the Company or
required to be performed by his subcontractors: and payment of all
license fees and other moneys herein agreed to be paid by the Company.
ARTICLE 13. DISASTER OPERATIONS
13.10 q2jp2nyL Availability of Personnel and Equipment. In event of
wartime, natural, physical or other disaster in or proximate
to the City limits resulting in the declaration of a State of
Emergency by the City Manager or City Council Company shall make
available to the City at no cost to the City, all trucks,
equipment and personnel normally performing services under this
Franchise agreement,for emergency operations conducted or directed
by the City emergency organization.
13.20 Temporary Possession and Employment. City shall have the right
to take possession of all such equipment provided by Company,
and to temporarily employ all Company personnel so provided
as emergency operations forces of the City, under the direction
and control of the City disaster operation chief.
13.30 Use of Additional Equipment. Company shall make available, in
addition to the equipment and personnel above) equipment. and
personnel from those company operations and resources not
serving the City of Cupertino, to the extent necessary to conduct
effective refuse, waste and debris removal during any declared State
of Emergency to the specifications of the Disaster Operations Chia . f.
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13.40 Reimbursement. City shall not be required to compensate
Company in any manner or form for Company provision of
vehicles, personnel or equipment normally performing
services under this franchise contract within the City
limits, when made available during a declared State of
Emergency. When additional vehicles, personnel or equip-
ment are provided during an emergency, City shall compensate
Company for actual expenses incurred by Company in providing
additional vehicles, upon submission by Company to City of
detailed records of costs and expenses actually born by Company,
and upon approval by the Federal government of City's reimburse-
ment of expenses incurred by Company during disaster.
14.10 Enforcement Responsibility. The administration and enforcement of
this Franchise agreement shall be the responsibility of the City
Manager or designated representatives of that office.
14.20 Development Review. City shall provide Company with plans for
proposed development within the City for Company review of
adequacy of vehicle access, container storage access, siting, etc.
Company shall review all development plans for refuse service
problems and submit, in writing, all foreseeable problems to the
Director of Planning and Development of the City.
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14.30 Liquidated Damages. Inasmuch as breach of the service and
sanitation requirements of this Franchise agreement or any
rules or regulations established by the City Manager will cause
serious and substantial damage to the City and because of the
nature of this agreement it would be impracticable or extremely
difficult to fix the actual damage sustained by the City by such
breach, it is agreed that in case of breach of the service or
sanitation requirements of this Franchise agreement or any rules
or regulations of the City Manager the Company on their part
will pay to City as liquidated damages, and not as a penalty, the
amount set forth in Schedule A attached hereto and made a part
hereof, such sums being agreed on by the parties hereto as the amount
which the City will be damaged by the breach of such service or
sanitation requirements. The foregoing remedy is nonexclusive and
shall not deprive the City either of its right of cancellation,
as set forth in Article 8, Section 8.10, or to pursue any other
remedy in law or equity available to it for breach of contract.
14.40 Service Inspection by City. To ensure that the laws governing
the performance of the Franchise Agreement are complied with, a
representative of the City may inspect the Franchise operations
during the term of this Agreement. The City may make inspections
of the equipment and facilities at any reasonable hour. At City's
request, Company shall make designated personnel available to ac-
company City inspectors.
14.50 Subcontractor. Company shall not subcontract all or any portion
of the work or business of this Franchise without the written
consent of the City Manager.
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ARTICLE 15. PREVIOUS AGREEMENTS SUPERSEDED
15.10 This franchise agreement revises and supersedes the franchise
agreement between the City and Cupertino Garbage Company for the
collection and transportation of refuse produced and accumulated
in the City of Cupertino, dated November 15, 1965.
IN WITNESS 1,91EREOF, the parties above executed this agreement this
5th day of January , 1976, first above written.
Approv as to form:
City Attorney
CITY OF CUPERTINO
By
Mayor
By
City Cl k
LOS ALTOS GARBAGE COMPANY
V
SCHEDULE A
LIQUIDATED DAMAGES
The following are the charges for verified violations of franchise provisions
to be used by the City Manager for each separate violation.
Early starts
$25.00
Equipment not washed as per specifications $5.00
Noise Ordinance violations
$25.00
Failure to collect misses within 24 hours $15.00
If City equipment is used to pick up misses or
respond to complaints, the minimum charge shall- be $25.00
Repetition of complaints on a route after notification
of unnecessary noise, failure to replace cans in
designated position, spillage, not closing gate,
crossing planted areas or similar violations $10.00
Litter or debris from collection operations or
refuse transport $10.00
For any violations not listed above, the amount of
liquidated damages shall be as determined by the
City Manager on the basis of similarity of the
violation to those listed above.
City of Cupertino
Loa Altos Garbage Company
Effect of
Bate Increase over Duration of Agreement
Cupertino Only
I980
I981
1982
Operating Expense
$825,I72
$ 924,193
$I,035,096
Operating Revenues Required
90% Ratio
916,857
1,026,88I
I,150,I07
93% Ratio
887,281
993,756
1,113,006
95% Ratio
868,602
972,835
1,089,575
Operating Profit
98% Ratio
9I,685
102,688
I15,0I1
93% Ratio
62,109
69,563
77,910
95% Ratio
43,420
48,642
54,479
Portoec/s Capital
289,954
289,954
289,954
Rate of Return
Profit to Purtnec/s Capital
90% Ratio
31.6
35.4
39.7
93% Ratio
21.4
24.0
26^9
95% Ratio
15,0
16.8
I8.8
Estimated Bate of Qetoco
Profit to Capital
44.6
10.5
(27.8)
Profit (Loss)
129,328
30,307
(80,596)
Notes:
Assumed a 12% rate of inflation on expenses.
15% Rate increase effective 2-I-80
Exhibit I