HomeMy WebLinkAboutOrdinance #3744 ORDINANCE NO. 3 7 4 4
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH GRANTING TO
RAINBOW DISPOSAL AND RAINBOW TRANSFER AND RECYCLING COMPANIES
A FRANCHISE TO COLLECT REFUSE
The City Council of the City of Huntington Beach does hereby ordain as follows:
SECTION 1. The Rainbow Disposal and Rainbow Transfer and Recycling Companies
are hereby awarded a franchise to collect refuse within the City of Huntington Beach. The terms
and conditions of the franchise awarded by this ordinance are contained in the "Revised and
Restated Refuse Collection and Disposal Services Franchise Agreement By and Between The
City of Huntington Beach and the Rainbow Disposal and Rainbow Transfer and Recycling
Companies," a copy of which is attached hereto as Exhibit "A" and incorporated by reference
herein as though fully set forth in this Section 1.
SECTION 2. The City Clerk shall certify to the passage of this ordinance and cause same
to be published within fifteen days of its adoption in a newspaper of general circulation.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on July 17 , 2006.
Mayor
ATTEST APPROVED AS TO FORM:
Ci lerk ,J ity Attorney
REVIEWED AND APPROVED: 5ATED AND APPROVED:
(-4�
ity Admfhistrator Dire`c r of Public Works
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EXHIBIT A
REVISED AND RESTATED
REFUSE COLLECTION AND DISPOSAL SERVICES FRANCHISE AGREEMENT BY
AND BETWEEN THE CITY OF HUNTINGTON BEACH AND THE RAINBOW
DISPOSAL AND RAINBOW TRANSFER AND RECYCLING COMPANIES
THIS REVISED AND RESTATED FRANCHISE AGREEMENT is made and
entered into this f�T�`day of �G�/ 2006, by and
between the CITY OF HUNTINGTON BEACH, a California municipal
corporation, hereinafter referred to as "CITY, " and the RAINBOW
DISPOSAL COMPANY, INC. , joined by RAINBOW TRANSFER AND
RECYCLING, INC. , both California corporations, hereinafter
referred to collectively as "CONTRACTOR. "
WHEREAS, CITY and CONTRACTOR have previously entered into a
franchise agreement, dated February 5, 1990, wherein CONTRACTOR
was awarded the right to provide refuse collection and disposal
services for CITY; and
CITY and CONTRACTOR have adopted several supplemental
agreements, addendums, and amendments to the 1990 Franchise
Agreement; and
CITY and CONTRACTOR are desirous of revising and restating
the 1990 Franchise Agreement to include all previously adopted
supplemental agreements, addendums and amendments as are still
appropriate, and to provide for additional new matters to be
included within this Revised and Restated Agreement,
NOW, THEREFORE, the parties hereto do hereby agree as
follows :
1 . DEFINITIONS
"AGREEMENT" shall mean this franchise agreement, entered
into between CITY and CONTRACTOR.
"BASIC LEVEL OF SERVICE" shall mean the amount of refuse
generated by an average family within a UNIT OF SERVICE.
"CITY COUNCIL" shall mean the City Council of the City of
Huntington Beach, California.
"COMMERCIAL SERVICE" shall mean collection service pursuant
to an agreement between CONTRACTOR and his CUSTOMER by which
dumpsters or drop-off-bodies are rented to CUSTOMER.
"CUSTOMER" shall mean a user of CONTRACTOR' S services .
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"DIRECTOR" shall mean the Director of Public Works of CITY
or his designated representatives .
"REFUSE" means garbage and solid waste.
"RESIDENTIAL UNIT OF SERVICE" shall mean each single-family
residence and each dwelling unit within a duplex, a triplex, or
a fourplex receiving noncommercial refuse collection service.
2 . LEGAL COMPLIANCE
A. This AGREEMENT shall be governed by the laws and
regulations of the State of California, the County of Orange,
and CITY both as to interpretation and performance . Specific
reference is made to Chapter 8 . 21 of the Huntington Beach
Municipal Code as it now exists or may be amended.
B. If any provision of this AGREEMENT shall be declared
illegal, void or unenforceable, the other provisions shall not
be affected but shall remain in full force and effect .
C. CONTRACTOR shall, at its own expense, secure or cause
to be secured any and all permits and approvals which may be
required by any governmental agency affected by the work to be
performed by CONTRACTOR pursuant to this Agreement, including
but not limited to, necessary zoning entitlements, building
permits and all approvals required under the California
Environmental Quality Act ("CEQA") .
3 . TERM; ANNUAL EXTENSION OF TERM
A. The term of this AGREEMENT is fifteen (15) years .
B. Subject to DIRECTOR' S annual evaluation, as provided in
Section 3 (C) herein, the term of this AGREEMENT shall be
annually extended one (1) year, on the 1st of July of each
succeeding year, commencing July 1, 2007 . Such annual extension
may also be terminated by either party in their sole discretion,
without cause, by notification in writing (the "Notice of
Termination of Annual Extension. " ) The Notice of Termination of
Annual Extension will not terminate the entire AGREEMENT, but
rather, will serve to only terminate the annual one-year
extension of this AGREEMENT, and the AGREEMENT shall remain in
effect, from the effective date of such notice, for the balance
of the fifteen-year term outstanding. Any Notice of Termination
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of Annual Extension shall not be effective until three years
after the date of such Notice .
C. Sixty (60) days prior to the date for each annual one-
year extension described in Paragraph 3 (B) herein, DIRECTOR
shall perform an evaluation of the services provided by
CONTRACTOR. Said evaluation may consider the kind and number of
complaints made against CONTRACTOR by its CUSTOMERS and the
condition of CONTRACTOR' S facility and equipment . If
deficiencies are discovered, DIRECTOR will provide CONTRACTOR
with a written list of same and require corrective action prior
to the effective date of the extension. Until the deficiencies
are corrected to the satisfaction of DIRECTOR, an annual
extension of this AGREEMENT may be held in abeyance .
D. CITY reserves the right to cancel this AGREEMENT upon
thirty (30) days written notice to CONTRACTOR, in the event that
CONTRACTOR shall be in default, following notice and reasonable
opportunity to cure, in any material terms, covenants or
conditions set forth in this AGREEMENT, or in the event that
CONTRACTOR shall fail to comply and abide by all of the
requirements and provisions of Chapter 8 . 21 of the Huntington
Beach Municipal Code, as the same now exists, or may hereafter
be amended.
E. Any termination of this AGREEMENT for cause, or because
of expiration of the term, or otherwise, shall constitute a
discontinuation of the right of CONTRACTOR to provide refuse
disposal services within CITY.
4 . EXCLUSIVENESS OF CONTRACT
A. CONTRACTOR shall have the exclusive duty, right and
privilege to collect, remove and retain all REFUSE; residential,
commercial, or industrial, including construction, originating
within CITY limits as they may now or hereinafter exist .
B . This AGREEMENT shall not prohibit collectors of REFUSE
originating outside the city from hauling said refuse over city
streets, provided such collectors comply with any governing laws
or ordinances .
5 . SUPERVISION OF AGREEMENT
A. Performance of each of the provisions of this AGREEMENT
shall be under the supervision of DIRECTOR. CONTRACTOR shall
furnish DIRECTOR every reasonable opportunity of ascertaining
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whether or not the work herein assigned is performed in
accordance with the requirements of this AGREEMENT.
B. CONTRACTOR shall designate a person to serve as agent
and liaison between CONTRACTOR and CITY, and shall maintain a
toll free telephone for communication with CITY' S staff .
C. DIRECTOR may inspect CONTRACTOR' S operations and
equipment at any reasonable time . CONTRACTOR shall admit
DIRECTOR to make such inspections at any reasonable time and
place .
6 . SERVICE STANDARDS; COLLECTIONS
A. During the term hereof, CONTRACTOR shall provide the
BASIC LEVEL OF SERVICE to each RESIDENTIAL UNIT OF SERVICE
within CITY. This shall include the normal amount of plant
clippings and trimmings generated by a RESIDENTIAL UNIT OF
SERVICE .
B. CONTRACTOR shall be responsible for picking up plant
prunings and trimmings that are securely bundled in lengths not
in excess of four (4) feet and that weigh no more than forty
(40) pounds until such time as automated collection service is
implemented and made available to the CUSTOMER. Thereafter,
plant prunings and trimmings generated by a RESIDENTIAL UNIT OF
SERVICE must be placed unbundled in the appropriate greenwaste
container for collection. CUSTOMER shall be required to place
all materials set out for collection in the appropriate
automated container in an appropriate manner consistent with the
"Implementation and Administrative Regulations, " a copy of which
is attached hereto as Exhibit "D, " as hereinafter defined, as
they currently exist or may be amended from time to time .
C. CONTRACTOR agrees that upon removing REFUSE from
receptacles, said receptacles will be replaced, including the
lids alongside thereof; and that no REFUSE will be allowed to
spill while handling same, and proper care will be used in the
handling of said receptacles .
D. CONTRACTOR shall, at all times during the term of this
AGREEMENT, keep and maintain in good operating order, and in
good appearance, sufficient trucks and other equipment to
properly and adequately provide the services described herein.
E . CONTRACTOR shall maintain a local telephone number to
which all service complaints from CUSTOMERS may be directed. The
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telephone shall be staffed from 8 : 00 a.m. until 5 : 00 p.m. Monday
through Friday and from 8 : 00 a.m. until noon Saturday.
F. Each quarter, upon request, CONTRACTOR shall provide
DIRECTOR a written summary report of all complaints received and
the action taken in response to said complaints.
G. CONTRACTOR shall make at least one (1) weekly collection
at all places of residence and commercial and industrial
establishments qualifying for the minimum can collection service
on a schedule approved by CITY. Extended commercial and
industrial service accounts shall be collected at a frequency
for which they shall contract, provided it is adequate in the
opinion of DIRECTOR to maintain the premises so served in a
healthful and unlittered condition.
H. At no cost to CITY, CONTRACTOR shall supply and unload
dumpsters and drop-off bodies at CITY owned or operated
facilities as requested by DIRECTOR, and shall empty the 40-
gallon trash cans in the downtown commercial area at the
frequency set forth in the "Downtown Commercial Area Collection
Matrix, " a copy of which is attached hereto as Exhibit "C. "
Exhibit "C" may be amended from time to time upon mutual
agreement of CONTRACTOR and DIRECTOR. CONTRACTOR shall pay for
the deposit of CITY generated REFUSE, including street
sweepings, grass clippings and tree trimmings, at Rainbow
Transfer. However, the total dollar value of all such services
provided by CONTRACTOR to CITY shall not exceed $870, 000 during
the calendar year 2006 . This figure shall be adjusted in
subsequent years by an amount equal to CONTRACTOR' S annual rate
increase, as shown in Sections 11 and 12 herein.
I . Upon the request of a CUSTOMER, CONTRACTOR shall make up
to four (4) special collections each year of large household
items such as furniture, water heaters, strollers, bicycles,
bundled tree branches, large boxes, additional bags of household
waste (weighing less than 40 lbs each) , and similar household
items, at no cost to the homeowner. Each CUSTOMER shall be
limited to a maximum of ten (10) such bulky items on any single
special collection occasion. Items not acceptable for collection
under this paragraph include construction debris, as well as
other items as determined by CONTRACTOR with approval by
DIRECTOR.
J. The hours of collection shall be 6 : 30 A.M. to 6 :30 P.M.
except on advance specific waiver of DIRECTOR.
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K. Should CONTRACTOR fail to collect and dispose of REFUSE
set out or placed for collection as herein provided, or at the
times herein required, CITY may, after notification to
CONTRACTOR and within a reasonable time not to exceed twenty-
four (24) hours, collect and dispose of said REFUSE at
CONTRACTOR' S sole cost and expense .
L. Collection of REFUSE shall not be required on Sundays or
on the following legal holidays : New Year' s Day, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day, and Christmas
Day; excepting in cases of emergency and upon the express
direction of DIRECTOR. Whenever a regular collection day falls
on such a holiday, then collection shall be made on the day
following. Should a holiday fall on a Sunday, then the following
Monday shall be observed as the holiday. Any additional holidays
requested by CONTRACTOR shall be submitted in writing to CITY
for approval .
M. All COMMERCIAL SERVICE containers shall be of a design
and size sufficient to contain their contents, at all times, in
such a manner as to promote the best possible housekeeping
conditions . All containers supplied by CONTRACTOR shall, at all
times, be maintained in a well-kept appearance. CUSTOMERS shall
be responsible for the cleanliness, sanitation and deodorizing
of such containers .
N. CONTRACTOR shall not, nor shall it permit any agent,
employee or subcontractor employed by it, to request, solicit,
demand, or accept, either directly or indirectly, any
compensation or gratuity for the collection of REFUSE as herein
defined, except such compensation as may be herein provided to
be paid by CITY. It is further provided, however, that
CONTRACTOR may make available special storage and loading
containers, provide additional collections not required by these
specifications, or pick up REFUSE at points other than as
required in these specifications, at the request of the person
or business being served. CONTRACTOR may make a direct charge in
each instance for such additional service under a written
agreement which shall be subject to the approval of DIRECTOR,
and at such rates as are reasonable, just and uniform for all
persons or businesses being served. All charges for such
services shall be collected by CONTRACTOR.
O. CONTRACTOR is authorized to implement a system of
automated collection for residential CUSTOMERS now receiving
manual collection services . CONTRACTOR shall retain the
discretion to determine the features of the automated
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residential collection program, subject to the provisions of
Paragraph 5, requiring that performance of each of the
provisions of this AGREEMENT shall be subject to the approval
the DIRECTOR. CONTRACTOR shall develop Implementation and
Administrative Regulations that are necessary and convenient for
the implementation and administration of the automated
collection program, along with an enumeration of any incidental
container-related charges that may be assessed. The regulations
and incidental container-related charges, the initial terms of
which are attached hereto as Exhibit "D, " shall be subject to
the approval of DIRECTOR. The parties envision and intend that
the standard level of service for residential accounts receiving
automated collection services shall be three (3) ninety-five
(95) gallon containers, one (1) each for the deposit of
greenwaste, commingled recyclables, and refuse . Automated
containers shall be supplied by CONTRACTOR. A CUSTOMER or
CONTRACTOR, as the case may be, may elect to reduce the number
of containers or the size of containers without cost, provided
that in all cases, each CUSTOMER receiving service shall have at
least one (1) container each for the deposit of refuse and
recyclables . Upon the request of any CUSTOMER, CONTRACTOR shall
supply an additional container of appropriate size for
greenwaste or recyclables without additional charge . Additional
containers for the deposit of refuse shall also be delivered
upon request by a CUSTOMER, in exchange for a one-time delivery
and handling charge which is to be approved by DIRECTOR.
CONTRACTOR shall replace lost or damaged containers without
charge, unless it is determined that damage thereto is the
result of negligence or intentional misuse by the CUSTOMER, in
which case CONTRACTOR shall be authorized to charge a
replacement or repair fee as authorized by DIRECTOR.
7 . RESIDENTIAL HAZARDOUS WASTES
CONTRACTOR shall provide a residential hazardous waste
transfer station at CONTRACTOR' S current site . Said station will
be a regional facility and be made available free of charge to
the residents of CITY, unless current funding sources do not
continue. In the event these funding sources are not available,
CONTRACTOR may levy user fees to individual users as approved by
CITY. In the event governmental regulations or operational costs
make it impractical to operate such a station, CONTRACTOR and
CITY shall have the right to terminate operation of the facility
by mutual agreement .
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8 . RECYCLING PROGRAM
CONTRACTOR shall provide a solid waste processing facility
designed to specifically recycle residential and commercial
waste .
A. COMPENSATION
1 . CITY shall collect and pay to CONTRACTOR, for operation
of a solid waste processing facility, the sum of Three Dollars
($3 . 00) per month for each RESIDENTIAL UNIT OF SERVICE rendered
in CITY.
2 . CONTRACTOR may collect a monthly fee for the operation
of said facility from COMMERCIAL UNITS OF SERVICE in an amount
not to exceed a rate schedule approved by CITY.
B. ADJUSTMENT
1 . CITY and CONTRACTOR agree to meet at least sixty (60)
days prior to June 30 of each year of this AGREEMENT to review
the compensation for the operation of the solid waste processing
facility and to make such adjustments as are deemed necessary.
Changes in compensation for each subsequent year shall not
exceed the percentage of increase or decrease in the Los
Angeles-Anaheim-Riverside All Urban Consumer Price Index (CPI)
or any relevant successor for the Orange County area, from March
to March of the preceding twelve (12) months .
2 . No more than one negotiated rate change shall be made in
any twelve (12) month period. However, either CITY or CONTRACTOR
may propose modification of an established rate in order to
assure the overall fairness of the rate structure.
3 . Should a dispute arise over the setting of a new rate or
rate schedule, CITY and CONTRACTOR agree to continue the
compensation plan then in effect until the dispute is resolved
with the provision that the settlement be retroactive to the
beginning of the payment period.
C. REPORTING REQUIREMENTS
1 . CONTRACTOR shall, as part of this AGREEMENT, maintain
such records on the composition and disposition of materials
collected at the solid waste processing facility as may be
required for reporting purposes by the California Integrated
Waste Management Board.
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2 . CONTRACTOR also agrees to provide CITY with such
statistical data on the operation of the facility and/or the
materials processed by same as CITY may deem necessary.
D. OTHER PROVISIONS
1 . CONTRACTOR shall be free to establish service rates for
refuse processed by the facility but collected outside the CITY
limits so long as those rates are never less than the rates
charged for this same service to service users within CITY.
2 . CONTRACTOR shall become owner of all solid waste
delivered to the facility and shall have the exclusive right to
market all recyclable materials reclaimed therein.
3 . CONTRACTOR shall, at all times, be solely liable for any
and all expenses incurred pursuant to the marketing of said
materials.
4 . CONTRACTOR warranties the ability of the facility to
meet the diversion quota established for same in the CITY' S
Integrated Waste Management Plan in conjunction with other
diversionary and reduction programs . Should CONTRACTOR fail to
meet the quota, then CONTRACTOR shall be liable, to the maximum
extent permitted by law, to pay any fine or penalty levied
against CITY by the California Integrated Waste Management Board
for failure to perform, subject to the provisions of California
Public Resources Code Section 40059 . 1 . The parties intend that
the provisions of this subparagraph shall apply to any
modification in the level of diversion required under Section
41780 of the Public Resources Code.
5 . Upon implementation of automated residential collection,
CONTRACTOR shall incorporate such enhancements to its solid
waste processing facility as necessary in order to process
source-separated recyclables from the residential waste stream.
CONTRACTOR shall continue to process commingled residential and
commercial waste at its facility.
9 . LABOR RELATIONS
A. CONTRACTOR shall, at all times during the term of this
AGREEMENT, abide by all laws and regulations of the State of
California regarding the employment of labor.
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B. In the event that there occurs any period in which
CONTRACTOR fails to maintain required REFUSE collection and
disposal services pursuant to this AGREEMENT by reason of a
strike by CONTRACTOR' S employees or similar labor dispute, CITY
shall have the exclusive right of first refusal to rent and
operate any or all trucks, trailers, tractors, bulldozers, other
equipment and facilities used by CONTRACTOR in the performance
of the work specified in this AGREEMENT. Such rental shall be
upon a reasonable basis until other arrangements can be made by
CITY. In determining the rental amount to be paid CONTRACTOR,
the parties shall take into consideration the cost, age, and
condition of the equipment thus utilized so as to afford
CONTRACTOR fair and just compensation for such use . All money
due CONTRACTOR for such rental may at the option of CITY be
applied to the reduction of any lien or encumbrance on the
rented chattels .
10 . UNIT OF SERVICE COUNT
A. An annual count of the RESIDENTIAL UNITS OF SERVICE
shall be agreed upon by CITY and CONTRACTOR. Said count shall
include all single family, duplex, triplex, and fourplex
residential units that are provided noncommercial trash service.
Groups of more than four (4) residential units are deemed to be
nonresidential and will be charged in accordance with COMMERCIAL
SERVICE provisions below. This annual residential count shall be
the basis for determining the number of dwelling units for which
CITY shall compensate CONTRACTOR.
B . CONTRACTOR agrees to submit to DIRECTOR, on a monthly
basis, a list of all residential units which have either: (1)
contracted for COMMERCIAL SERVICE, or (2) discontinued
COMMERCIAL SERVICE with CONTRACTOR. Such listing shall be kept
confidential by CITY.
C. CITY shall bill all single family, duplex, triplex and
fourplex units that are provided noncommercial trash service by
CONTRACTOR; CONTRACTOR shall bill those units that are provided
COMMERCIAL SERVICE by CONTRACTOR.
D. DIRECTOR shall multiply the established rate per
RESIDENTIAL UNIT OF SERVICE by the total monthly count of all
single family, duplex, triplex and fourplex units that are
provided noncommercial trash service to arrive at the monthly
payment to CONTRACTOR. It is recognized that the total number of
UNITS OF SERVICE will vary from month to month. Therefore, the
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number of UNITS OF SERVICE in any month shall be determined as
above .
E. DIRECTOR is responsible for authorizing the Finance
Department to make monthly payments to CONTRACTOR based upon the
total monthly count of all single family, duplex, triplex and
fourplex residential units that are provided noncommercial trash
service . CITY shall compensate CONTRACTOR no later than fifteen
(15) days after the end of the month in which service was
rendered.
11 . COMPENSATION - RESIDENTIAL
A. CITY shall pay to CONTRACTOR for services provided under
the terms of this AGREEMENT, the sum of $17 . 22 per month for
each RESIDENTIAL UNIT OF SERVICE rendered in CITY, which amount
includes the recycling compensation in Paragraph 8 .A. 1 herein,
and excludes CITY' S administrative charge .
B. Changes in compensation for each subsequent year will be
based on the formula provided below and shall take effect on
July 1st of each succeeding year beginning on July 1, 2007 . A
change in compensation will be determined by the three factors
in the following formula:
1 . The percentage of increase in the Los Angeles-Anaheim-
Riverside All Urban Consumer Price Index (CPI) or any relevant
successor for the Orange County area from March to March of the
preceding twelve (12) months . This factor shall constitute
seventy-six percent (760) of a rate adjustment .
2 . The County of Orange landfill tipping fees . This factor
shall constitute sixteen percent (160) of a rate adjustment, and
be based upon the tipping fee adopted by said County for the
subsequent fiscal year.
3 . The average per gallon price of diesel fuel as paid by
CONTRACTOR during the March to March time frame noted above .
This factor shall constitute eight percent (80) of a rate
adjustment . An example of this formula is provided on the
attached Exhibit "B. " No more than one negotiated rate change
shall be made in any twelve (12) month period. However, either
DIRECTOR or CONTRACTOR may propose modification of an
established rate in order to assure the overall fairness of the
rate structure to both CITY and CONTRACTOR. In the event that
CONTRACTOR converts to alternative fueled vehicles, the factor
shall be based on a CNG/diesel fuel equivalent .
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C. In the event CONTRACTOR becomes obligated in the
performance of this AGREEMENT to pay any fees or charges not
presently required, such as those imposed by toll roads, for the
transit of REFUSE to landfills; or if CONTRACTOR is required to
travel additional distances to an approved landfill site due to
the closing of an existing facility; or if the County of Orange
raises the landfill tipping fee more than once during a year,
then the parties agreed to negotiate in good faith for an
adjustment in the existing monthly unit rate prior to the
implementation of such charges .
D. As an inducement to enable CITY to effectively monitor
and respond to instances of illegal container interference (HBMC
8 . 21 . 110) or illegal scavenging (HBMC 8 . 21 . 220) , CONTRACTOR
agrees to annually reimburse CITY, in an initial amount of
Seventy-five Thousand Dollars ($75, 000 . 00) , for the hiring of
additional staff dedicated exclusively to the enforcement of
CITY' S Municipal Code provisions set forth above . Said payment
shall be made on an annual basis commencing with the first month
following the date of hiring said personnel . Upon notice from
DIRECTOR, CONTRACTOR agrees to increase the reimbursement set
forth in this paragraph commensurate with increased costs to
CITY for future cost-of-living adjustments received by all
employees within the employee ' s bargaining group.
12 . COMPENSATION - COMMERCIAL
A. CONTRACTOR shall establish and publish a schedule of
rates for all COMMERCIAL SERVICE accounts based on frequency of
collection per week and size of container. Said schedule shall
be shown as Exhibit "A" of this AGREEMENT for which the current
rates are shown that are in effect as of the date of this
AGREEMENT.
B. CONTRACTOR shall be exclusively responsible for making
contracts for COMMERCIAL SERVICE with CUSTOMERS within CITY. All
charges will be billed to and collected from each CUSTOMER by
CONTRACTOR.
C. Changes in compensation for COMMERCIAL SERVICE for each
subsequent year will be based on the formula provided below and
shall take effect on July 1st of each succeeding year. A change
in compensation will be determined by three factors in the
following formula:
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1 . The percentage of increase in the Los Angeles-Anaheim-
Riverside All Urban Consumer Price Index (CPI) or any relevant
successor for the Orange County area from March to March of the
preceding twelve (12) months . This factor shall constitute
seventy-six percent (760) of a rate adjustment .
2 . The County of Orange landfill tipping fees . This factor
shall constitute sixteen percent (160) of a rate adjustment, and
be based upon the tipping fee adopted by said County for the
subsequent fiscal year.
3 . The average per gallon price of diesel fuel as paid by
CONTRACTOR during the March to March time frame noted above .
This factor shall constitute eight percent (81) of a rate
adjustment .
An example of this formula is provided on the attached Exhibit
"B . " No more than one negotiated rate change shall be made in
any twelve (12) month period. However, either CITY or CONTRACTOR
may propose modification of an established rate in order to
assure the overall fairness of the rate structure to both CITY
and CONTRACTOR.
13 . COMMERCIAL SERVICE FRANCHISE FEE
A. CONTRACTOR shall pay CITY a franchise fee of five
percent (50) of its paid gross receipts from COMMERCIAL SERVICE.
However, in all instances, the fee shall be added to the rate
schedule only after the compensation formula has been applied.
B. Said payment shall be made on a monthly basis and be
received by CITY no later than fifteen (15) days after the end
of each calendar month in which CONTRACTOR' S invoices were
issued. Any late payments shall be assessed in accordance with
Chapter 3 .48 of the Huntington Beach Municipal Code .
14 . TRANSFER STATION USER FEE
A. CONTRACTOR shall pay CITY a transfer station user fee of
two percent (20) of all paid receipts for refuse deposited at
the transfer station, as reimbursement to CITY for damage caused
to CITY' S roadways by CONTRACTOR' S collection and transfer
vehicles . Fees shall be deposited in the General Fund and then
budgeted for infrastructure purposes . 41 gID6
B . Said payment shall be made on a monthly basis and be W
received by CITY no later than fifteen (15) days after the end 7110�
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of each calendar month in which CONTRACTOR' S invoices were
issued. Any late payments shall be assessed in accordance with
Chapter 3 .48 of the Huntington Beach Municipal Code .
15 . PERFORMANCE BOND
CONTRACTOR shall, at all times, during the life of
AGREEMENT keep on file with CITY a bond in the sum of One
Million Dollars ($1, 000, 000 . 00) to the effect that CONTRACTOR
will faithfully perform this AGREEMENT.
16 . INDEMNIFICATION, DEFENSE, HOLD HARMLESS
CONTRACTOR hereby agrees to protect, defend, indemnify and
hold harmless CITY, its officers, elected or appointed
officials, employees, agents, and volunteers from and against
any and all, claims, damages, losses, expenses, judgments,
demands defense costs, and consequential damage or liability of
any kind or nature, however caused, including those resulting
from death or injury to CONTRACTOR' S employees and damage to
CONTRACTOR' S property, arising directly or indirectly out of the
obligations or operations herein undertaken by CONTRACTOR,
caused in whole or in part by any negligent act or omission of
the CONTRACTOR, any subcontractors, anyone directly or
indirectly employed by any of them or anyone for whose acts any
of them may be liable, including but not limited to concurrent
active or passive negligence, except where caused by the active
negligence, sole negligence, or willful misconduct of the CITY.
CONTRACTOR will conduct all defense at its sole cost and expense
and CITY shall approve selection of CONTRACTOR' S counsel . This
indemnity shall apply to all claims and liability regardless of
whether any insurance policies are applicable . The policy limits
do not act as a limitation upon the amount of indemnification to
be provided by CONTRACTOR.
17 . WORKERS' COMPENSATION AND EMPLOYER' S LIABILITY
INSURANCE
Pursuant to California Labor Code Section 1861, CONTRACTOR
acknowledges awareness of Section 3700 et seq. of this Code,
which requires every employer to be insured against liability
for workers' compensation; CONTRACTOR covenants that it will
comply with such provisions prior to commencing performance of
the work hereunder.
CONTRACTOR shall obtain and furnish to City workers'
compensation and employer' s liability insurance in an amount of
not less than the State statutory limits .
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CONTRACTOR shall require all subcontractors to provide such
workers' compensation and employer ' s liability insurance for all
of the subcontractors ' employees. CONTRACTOR shall furnish to
CITY a certificate of waiver of subrogation under the terms of
the workers' compensation and employer ' s liability insurance and
CONTRACTOR shall similarly require all subcontractors to waive
subrogation.
18 . INSURANCE
In addition to the workers' compensation and employer' s
liability insurance and CONTRACTOR' S covenant to defend, hold
harmless and indemnify CITY, CONTRACTOR shall obtain and furnish
to CITY, a policy of general public liability insurance,
including motor vehicle coverage covering all operations to be
performed under this Agreement . This policy shall indemnify
CONTRACTOR, its officers, employees and agents while acting
within the scope of their duties, against any and all claims
arising out or in connection with the operations to be performed
under this Agreement, and shall provide coverage in not less
than the following amount : combined single limit bodily injury
and property damage, including products/completed operations
liability and blanket contractual liability, of Ten Million
Dollars ($10, 000, 000) per occurrence . If coverage is provided
under a form which includes a designated general aggregate
limit, the aggregate limit must be no less than Ten Million
Dollars ($10, 000, 000) for operations to be performed under this
Agreement . This policy shall name CITY, its officers, elected
or appointed officials, employees, agents, and volunteers as
Additional Insureds, and shall specifically provide that any
other insurance coverage which may be applicable shall be deemed
excess coverage and that CONTRACTOR' S insurance shall be
primary.
Under no circumstances shall said above-mentioned insurance
contain a self-insured retention, or a "deductible" or any other
similar form of limitation on the required coverage.
19. CERTIFICATES OF INSURANCE; ADDITIONAL INSURED
ENDORSEMENTS
Prior to commencing performance of the work hereunder,
CONTRACTOR shall furnish to CITY certificates of insurance
subject to approval of the City Attorney evidencing the
foregoing insurance coverage as required by this Agreement; the
certificates shall : a) provide the name and policy number of
each carrier and policy; b) state that the policy is currently
in force; and c) promise to provide that such policies will not
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be canceled or modified without thirty (30) days prior written
notice of CITY.
CONTRACTOR shall maintain the foregoing insurance coverage
in force during the entire term of this Agreement .
The requirement for carrying the foregoing insurance
coverage shall not derogate from the CONTRACTOR' S defense, hold
harmless and indemnification obligations as set forth under this
Agreement . CITY or its representative shall at all times have
the right to demand the original or a copy of all the policies
of insurance . CONTRACTOR shall pay, in a prompt and timely
manner, the premiums on all insurance hereinabove required.
CONTRACTOR shall provide a separate copy of the additional
insured endorsement to each of CONTRACTOR' S insurance policies,
naming CITY, its officers, elected and appointed officials,
employees, agents and volunteers as Additional Insureds, to the
City Attorney for approval prior to any payment hereunder.
20 . TRANSFER
A. CONTRACTOR shall not sell, assign, or transfer this
AGREEMENT or any interest therein, or permit same to be
transferred by operation of law, without first obtaining the
consent of CITY. Any such unauthorized transfer shall allow
CITY, at its option, to terminate this AGREEMENT.
B. Until the adoption of any ordinance to the contrary by
CITY, CONTRACTOR may sell or otherwise dispose of refuse
materials after the same have been collected.
21 . FINANCIAL RECORDS
At the request of DIRECTOR, CONTRACTOR shall make his
complete financial records available for examination by CITY or
its designated agents . Such records shall be kept confidential .
22 . ALTERNATIVE FUELS FUELING STATION
In the event CONTRACTOR shall construct and operate an
alternative fuels fueling station at CONTRACTOR' S operations
yard, CONTRACTOR agrees to provide CITY with unlimited access
thereto and to make available such fueling station or facility
at rates favorable to the CITY, the precise amount of which
shall be agreed upon by the parties, which shall be at
CONTRACTOR' S cost, which will include facility operating
expenses .
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23 . FLOW CONTROL
Upon thirty (30) days written notice, CITY has the right to
direct that One Hundred Percent (100%) of the refuse collected
pursuant to this Franchise be delivered to any of the landfills
owned by the County of Orange located within the boundaries of
the County.
24 . DIRECT PAYMENT PERMIT
CONTRACTOR will apply for a Direct Payment Permit from the
California Board of Equalization and designate the City of
Huntington Beach as the point of sale for all purchases
including, but not limited to, the purchase of construction
goods and materials, to the extent permitted by law.
25 . WATER QUALITY COMPLIANCE GRANT
CONTRACTOR agrees to annually pay CITY a cash grant of
One Hundred Fifty Thousand Dollars ($150, 000 . 00) for programs
and projects to further CITY' S compliance with the Federal Clean
Water Act (NPDES) . Said payment shall be made on an annual basis
commencing on July 1, 2007, and continuing each subsequent July
1 thereafter. CONTRACTOR agrees to annually increase the cash
grant set forth in this section commensurate with any percentage
of increase in the Los Angeles-Anaheim-Riverside All Urban
Consumer Price Index (CPI-U) or any relevant successor for the
Orange County area from March to March of the preceding twelve
(12) months .
REST OF PAGE INTENTIONALLY LEFT BLANK
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25 . ENTIRETY
The foregoing, and Exhibits "A, " "B, " "C, " and "D" attached
hereto, sets forth the entire AGREEMENT between the parties .
IN WITNESS WHEREOF, the parties hereto have caused this
AGREEMENT to be executed on the day, month and year first above
written at Huntington Beach, California.
RAINBOW DISPOSAL COMPANY, INC. , CITY OF HUNTINGTON BEACH
a California corporation a California municipal
corporation
Presi t Mayor
Secretary CitfjClerk 0�'0
RAINBOW TRANSFER AND RECYCLING, APPROVED AS TO FORM:
INC. , a California corporation
r
ty Attorney pb
Pres ' nt �4466- �(1k�
REVIEWED AND APPROVED:
Secretary
ity Administrator
TED AND AP ROVED:
Director of Public Works
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EXHIBIT A
EXHIBIT A
DUMPSTER SERVICE RATE SCHEDULE
RAINBOW DISPOSAL COMMERCIAL SERVICE RATES
CITY OF HUNTINGTON BEACH, EFFECTIVE JULY 1, 2006
Standard Service (shown in dollars per month) :
1 Cubic 2 Cubic 3 Cubic
Bin Size : Yard Yard Yard
Pickups 1 x Week $ 65 . 35 $106 . 76 $135 . 15
Per Week: 2 x Week $103 . 75 $155 . 50 $206 . 96
3 x Week $131 . 33 $198 . 35 $285 . 30
4 x Week $146 . 37 $235 . 09 $341 . 12
5 x Week $172 . 19 $289 . 84 $435 . 88
6 x Week $199 . 73 $334 . 16 $510 . 79
*Contractor may make extra charges for special or additional
services in accordance with Section 8 . 21 . 170 (b) of the
Huntington Beach Municipal Code .
Compacted Service (3 Cubic Yard Only Add 25% for 4 Cubic Yard) :
(Pickups per week shown over Cost per month)
1 x Week 2 x Week 3 x Week 4 x Week 5 x Week 6 x Week
$273 . 04 $420 . 17 $583 . 04 $700 . 64 $894 . 69 $1, 049 . 16
Temporary Service:
Service Size Service Time Service Rate
3 Cu. Yd. Rent-A-Bin Two (2) days $ 51 . 00 per load
3 Cu. Yd. Rent-A-Bin Weekend $ 62 . 00 per load
40 Yard Drop Off Box* Four (4) days $ 380 . 00 per load
10 Yard Drop Off Box** Four (4) Days $ 402 . 00 per load
*Highside (6 tons max. ) . **Lowside (8 tons max. ) . Any
container that exceeds these tonnage limitations is subject to
additional dump fees, and the customer may have to order an
additional container to comply with State of . California weight
limitation laws . (Extra days for 40 and 10-yard DOB' s are
$15 . 00 each. ) It is the customer' s responsibility to reload any
containers which is overweight or is not level full . Rental
charges will stay in effect until container is reloaded and
removed.
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EXHIBIT B
EXHIBIT B
EXAMPLE OF FORMULA
For the purpose of illustration and by way of example only,
assume that : On May 1, 2007, the CPI increase for the period
March 1, 2006, through March 1, 2007, is determined to be 5 . 0o;
Landfill Tipping fees were increased during said period from
$22 . 00 to $23 . 00 per ton (a 4 . 55% increase) ; and the Diesel Fuel
Price increased during said period from $2 . 317 to $2 . 640 per
gallon (a 13 . 94o increase) . The following is a statement of the
Formula for an increase in the charges based upon the foregoing
illustration:
(76o x 5 . 0o) + (16o x 4 . 550) + (81 x 13 . 940)
equals : 3 . 80% + 0 . 730 + 1 . 12% = 5 . 650
Thus the collection charges would be increased, commencing on
July 1, 2007, by an additional 5 . 650 .
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EXHIBIT C
EXHIBIT C
DOWNTOWN COMMERCIAL AREA COLLECTION MATRIX
Month Mon. Tues. Wed. Thurs. Fri. Sat. Sun.
January 1 1 1 (+1 1 (+1 1
February 1 1 1 (+l) 1 (+1) 1
March 1 1 1 (+1) 1 (+l) 1 (+1)
Easter Week l a 1 2 + ) +1)"
April 1 1 1 (+1) 1 (+1) 1 (+1)
May 1 1 1 2 (+1) 2 (+1) 2 (+1)
June 1 1 1 1 2 (+1) 2 (+1) 2 (+1
July 1 1 I 1 2 (+1) 2 (+1) 2 (+1)
August 1 1 1 1 2 (+1) 2 (+1) 2 (+1
September 1 1 1 1 2 (+1) 2 (+1) 2 (+1)
October 1 1 2 (+1) 2 (+1) 2 (+1)
November 1 1 1 (+1) 1 (+1)
December 1 1 1 (+1) 1 (+1)
Notes :
• Numbers shown in the matrix indicate the number of times each
day that Rainbow will empty 96 designated refuse containers
along the public sidewalks in the Downtown Pier Commercial
area on, and in the vicinity of, Main Street .
• Additional pick-ups previously donated by Rainbow Disposal are
noted in parentheses and are incorporated into the regular,
permanent schedule per the amended franchise for which
monetary consideration has been provided by an increase in the
City' s refuse cap allowance (Franchise Paragraph 6 .H. ) against
which Rainbow will charge the agreed-upon unit charge per
container.
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EXHIBIT D
EXHIBIT D
IMPLEMENTATION AND ADMINISTRATIVE REGULATIONS
FOR AUTOMATED RESIDENTIAL REFUSE COLLECTION
Adopted July 3, 2006
Revised ,
(Terms are in effect as of July 3, 2006
and subject to change)
1. STARTING/CHANGING SERVICE
A. New Single-family Residential Customer:
1 . Customer must contact City of Huntington Beach
("City") to establish City residential trash service .
2 . Customer will contact Rainbow to order carts and
schedule delivery.
3 . City will provide Rainbow Disposal ("Rainbow")
written confirmation of each new service order by 8 : 00 a.m. of
the following workday.
4 . Rainbow will confirm each scheduled delivery
against city report to confirm that service is authorized prior
to delivering carts .
5 . Rainbow will provide City with list of all cart
deliveries for new service one time weekly, by 9 : 00 a.m. each
Monday, for all orders originating the prior week.
B . Change Service Type (Commercial to Residential and Vice
Versa) :
1 . Owner of any single-family residence, duplex,
triplex, or fourplex must first contact City to initiate a
change from Commercial to Residential collection, and vice
versa.
a. All dwelling units within a duplex, triplex,
or fourplex must utilize the same type of service, either
Commercial or Residential, and the same size cart for all
dwelling units within a building. Under no circumstances will
property owner be allowed to mix and match services or sizes .
2 . Customer must then contact Rainbow directly to
establish or discontinue Commercial service and to schedule cart
delivery.
3 . City will provide written confirmation by 8 : 00
a.m. of the following workday of residential service changes to
Rainbow. Rainbow will not initiate such changes without written
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notification from City that residential service has been
established or cancelled.
2 . BASIC SERVICE LEVEL
The Basic Level of Service is one set of three (3) 95-
gallon carts per household, provided by Rainbow. Carts remain
the property of Rainbow.
A. One (1) each Recyclable (Blue) cart, to be used ONLY
for the following materials :
1 . Newspaper
2 . Cardboard
3 . Magazines
4 . Telephone books
5 . Junk mail
6 . Office paper, computer paper, other white and
colored paper
7 . Chipboard (cardboard of same type used for 12-
pack cartons)
8 . School notebooks / tablets
9 . Empty food containers
a. Plastic bottles and jars
b. Metal cans—aluminum, tin, and steel
C . Glass bottles and jars
B. One (1) each Green Waste (Green) cart to be used ONLY
for the following materials :
1 . Grass
2 . Leaves
3 . Branches
4 . Flowers
5 . Shrubbery
6 . Potted plant soil, houseplants
C. One (1) each Trash (Brown) cart to be used for the
disposal of the following materials :
1 . Plastic film, wraps, bubble wrap, and bags
2 . Odd plastics, such as toys, Plexiglas
3 . Contaminated paper, pizza boxes, diapers,
sanitary napkins, other bathroom waste
4 . Sheet or plate glass
5 . Full or unopened food containers
6 . Foam items, such as Styrofoam, packing peanuts
and similar packing materials, closed cell foam,
upholstery foam
7 . Animal waste, rodent bedding, and cat litter
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8 . Palm fronds
9 . Any remaining items not eligible for placement in
Recyclable or Green Waste carts
D. Customer may elect to forego delivery of Green Waste
cart if their residence has no vegetation and/or is subject to
Association or other similar landscape maintenance and such cart
is not necessary.
E. Customer must place carts for collection each week on
scheduled collection day, subject to requirements of HBMC
8 . 21 . 100 - Containers Location.
F. Carts placed for collection must be placed with lids
completely closed. Customers placing cart (s) for collection
with lids open or ajar may be served written warning by Rainbow
with the affixing of a label to the cart (s) indicating the
violation. Warnings must be documented by Rainbow with digital
photography and/or written log noting date of warning, service
address, and serial number of cart .
G. To accommodate need for greater or lesser waste
capacity, Customer may elect to change service to include
Optional Service Levels described herein.
H. Service Level changes will be permitted one time per
household per year.
3 . BULKY ITEM COLLECTION
Residential Customer may schedule up to four (4) special
collections each year of large household items . Items
qualifying for collection under this program include :
A. Furniture, mattresses and box springs, area rugs
(rolled and secured, not to exceed 6' in length)
B . Household appliances - range, oven, cooktop,
refrigerator, dishwasher, water heater, clothes washer or dryer,
trash compactor
C. Pool equipment .
D. Moving boxes and shipping cartons in excess of
Recycling cart capacity.
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E. Bagged trash in excess of Trash cart capacity - not to
exceed 40 lbs . per bag.
F. Securely bundled palm fronds, or tree
trimmings/branches in excess of Green Waste cart capacity - not
to exceed 4 ft . in length and 40 lbs . per bundle .
G. Universal and hazardous waste items are not eligible .
H. Remodeling items such as intact vanity cabinets,
sinks, toilets, bathtubs, intact windows and doors; cast iron
tubs are not eligible .
I . Construction and demolition waste is not eligible,
including items such as roofing, lumber, concrete, masonry,
stucco, tile, carpet cuts, remnants, or pull-ups .
4 . OPTIONAL SERVICE LEVEL 1 : CART SIZE
Two (2) alternate cart sizes will be available to
households, upon request, to accommodate Trash, Green Waste, and
Recyclables :
a. 65-gal .
b. 35-gal .
A. If customer elects Level 1 service change, an
appropriate number of carts will be provided by Rainbow to
accommodate normal household accumulation of trash.
B. Depending upon size of household, demonstrated
capacity needs and size of container selected, one household may
be allowed up to three (3) carts of each type .
5 . OPTIONAL SERVICE LEVEL 2 : ADDITIONAL GREEN WASTE &
RECYCLING CARTS
Customer may request one (1) additional cart each for
Recycling and Green Waste .
A. Additional carts must be of the same size as other
carts assigned to household.
B. The additional Green Waste and Recyclable carts will
provided at no charge .
C. No additional monthly rate will apply for collection
of additional Green Waste and/or Recyclable carts .
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D. Rainbow may repossess Level 2 Green Waste and
Recycling carts if customer does not utilize the cart or does
not use cart for intended material .
1 . Households utilizing Level 2 Recycling and/or
Green Waste carts, which are found to contain improper
materials, may be served written warning by Rainbow prior to
repossession with the affixing of a label to the cart (s)
indicating the violation. Warnings must be documented by
Rainbow with digital photography and/or written log noting date
of warning, service address, and serial number of cart .
2 . After not less than two (2) warnings in a six (6)
month period, Rainbow may repossess the cart (s) . Upon
repossession of cart (s) , Rainbow must deliver a notification in
writing to resident, either by posting notice at the premises or
by regular mail, and provide copy of said notice to Department
of Public Works .
E. Level 2 Green Waste and Recycling carts need not be
placed for collection every week, and, at the discretion of the
resident, may be placed for collection only when full, provided
that material contained therein is not odorous or harbors
harboring insects or vermin.
6 . OPTIONAL SERVICE LEVEL 3 : ADDITIONAL TRASH CART
A. Customer may request one additional cart for Trash,
subject to a one-time delivery and handling charge of $75 .
Additional cart must be same size as other Trash carts assigned
to household.
B . No additional monthly rate will apply for collection.
C. A maximum of one additional Trash cart will be issued
per household.
7 . CART MAINTENANCE AND REPAIRS
Carts assigned to households remain the property of Rainbow
Disposal .
A. Rainbow shall repair or replace carts damaged by
ordinary wear and usage at no charge to customer.
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B. Stolen carts will be replaced at no charge to
customer. Incidents of repeated, frequent theft of carts from
the same household may be subject to replacement charge.
C . Carts damaged by intentional abuse or misuse will be
repaired or replaced by Rainbow Disposal at the expense of the
customer.
1 . Repairs will be charged at a rate of $25 per
repair.
2 . Replacement charge, based upon the size of the
cart, is as follows :
a. 95-gal . - $75 . 00
b. 65-gal . - $70 . 00
C . 35-gal . - $65 . 00
D. Resident shall make reimbursement payments for
intentional damage directly to Rainbow Disposal .
8 . SCAVENGING
Recycling (Blue) cart shall be affixed with a semi-
permanent label placed on the underside of the lid, providing a
Public Works Department telephone number for customers to call
to report scavenging. Label shall instruct customer NOT to
report such activities to other City departments . In
particular, customers should not call the either the Police
Department or 9-1-1 emergency dispatch except in the event of a
life-threatening emergency. Label may be generic in that it may
contain clearly marked contact phone numbers for other cities
served by Rainbow in addition to the City of Huntington Beach
Public Works phone number.
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Ord. No. 3744
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN, the duly elected, qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of Huntington
Beach is seven;that the foregoing ordinance was read to said City Council at a re ular
meeting thereof held on the 3rd day of July,2006, and was again read to said City
Council at a regular meeting thereof held on the 17th day of July,2006, and was passed
and adopted by the affirmative vote of at least a majority of all the members of said City
Council.
AYES: Bohr, Green, Coerper, Sullivan, Hardy, Hansen, Cook
NOES: None
ABSENT: None
ABSTAIN: None
I,Joan L.Flynn,CITY CLERK of the City of Huntington
Beach and ex-officio Clerk of the City Council,do hereby
certify that a synopsis of this ordinance has been
published in the Huntington Beach Fountain Valley
Independent on July 27,2006
In accordance with the City Charter of said City -ILM")
Cio Clerk and ex-officio erk
Join L Flynn,Qfty Clerk of the City Council of the City
Deputy City Clerk of Huntington Beach, California