HomeMy WebLinkAboutRainbow Disposal Company, Inc. dba Rainbow Environmental Services - 2013-06-17 Dept.ID ED 13-16 Page 1 of 3
Meeting Date:6/17/2013
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CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 6/17/2013
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Bob Hall, Assistant City Manager
SUBJECT: Approve and authorize execution of an Agreement with Rainbow Disposal
Company, Inc. dba Rainbow Environmental Services for Public Recycling
Program
Statement of Issue: Authorize execution of an Agreement with Rainbow Disposal Company, Inc.
dba Rainbow Environmental Services for implementation of a public recycling program in
Huntington Beach. The Program, which will provide more opportunities to recycle and will generate
increased revenue to the General Fund.
Financial Impact: The City will not expend funds for this program. Rainbow will purchase and
install the recycling receptacles at their cost. Service and maintenance of the receptacles will be
applied to the existing Franchise Service Cap under which Rainbow currently services downtown
for trash collection. Rainbow will also be responsible for sale of advertising on each receptacle,
and will provide a share of the net revenues with the City of Huntington Beach. Any costs for
maintenance and service incurred above the Franchise Service Cap will be applied to the net profit
generated by the advertising. At no time will the City expend funds for the service or maintenance
of this program, including such instances when the annual service cost exceeds both the Franchise
Service Cap and the net profit.
Recommended Action:
A) Approve and authorize the Mayor and City Clerk to execute the "Agreement and License to
Install Waste Receptacles" between Rainbow Disposal Company, Inc. dba Rainbow Environmental
Services and the City of Huntington Beach; and,
B) Authorize the City Manager to execute all documents in furtherance of this Agreement.
Alternative Action(s):
Do not approve the Agreement and direct staff accordingly.
Analysis: On November 7, 2011, the City Council approved an Agreement with Rainbow Disposal
Company, Inc., dba Rainbow Environmental Services ("Rainbow") and Greener Corners, LLC for
the implementation and operation of a public recycling program for a five-year period. The City's
vision for the program was to a) increase the awareness and practice of recycling behavior by
installing recycling containers in high traffic pedestrian areas, b) utilize public-private partnerships to
promote environmental stewardship and public recycling education; and 3)to generate a new
source of General Fund revenue.
HB -239- Item 15. - 1
Dept. ID ED 13-16 Page 2 of 3
Meeting Date:6/17/2013
The containers-were to be designed and manufactured by Greener Corners, and contents collected
by Rainbow, who also planned to enter into a separate Agreement with Greener Corners to install
and maintain the receptacles. Greener Corners was also to sell the advertising space and provide a
share of the revenues generated from the advertising back to the City. Numerous delays prevented
the program from being implemented as planned, and a Notice of Breach of Contract and Intent to
Terminate Agreement was issued by the City to Greener Corners on October 8, 2012, who
subsequently replied by delivering a letter of withdrawal from the Agreement on October 23, 2012.
On November 19, 2012, the City Council approved the termination of the entire Agreement.
Rainbow presented a proposal to the City in February 2013 to design, manufacture, install, and fully
service recycling receptacles equipped with advertising panels, and within the conditions of the
approved entitlement. Rainbow has the exclusive right in Huntington Beach to collect and manage
refuse and recyclables and currently has 91 trash-only, concrete cans within the proposed service
area for this program. Approximately 25% of the existing cans are proposed for replacement with
the new receptacles, and there will be 26 new service locations, bringing the total number of
receptacles to 117: 45 combined trash/recycling receptacles, and 72 trash-only cans. The
approved locations are shown on the attached Exhibit A to the Agreement. The locations have been
distributed into four zones on and around Main Street, the Pier, Pier Plaza, and along the bluff top
from Sea Point to Beach Boulevard.
A prototype receptacle has been created, which meets the size, color and content requirements of
the Coastal Development Permit, and is shown in photographs on Attachment 2. Each receptacle
and advertising panel will be coated with a special substance to prevent, or increase the quick
removal, of vandalism, including stickers and graffiti. The inside of the receptacle is fitted with a
barrier designed to prevent scavenging for recyclables.
Advertising opportunities will be solicited and managed by Rainbow. Approval of advertising will
occur through the Environmental Education Committee operated by Rainbow, based on the
conditions of the approved entitlement, Huntington Beach Municipal Code Chapter 12.36, the City's
Coastal Element, and the Downtown Specific Plan. Ads can have a limited commercial component
and must promote environmental stewardship in some fashion, an example of which is, "Don't
Trash the Beach...A Message from Your Friends at XYZ Company."
The City will not expend any funds for this program. Service costs for each new receptacle are
based on $3.00 per occurrence, per receptacle, which will be applied to the existing Franchise
Service Cap under which Rainbow currently provides services to the City. If service costs should
exceed the amount available under the Service Cap, the costs will then be applied to any net
revenues generated by advertising. In the event there are insufficient net revenues, Rainbow will
absorb all excess costs.
Rainbow has conducted market research to determine the rates to be charged for advertising at
various times of the year. The City is projected to receive 48% to 70% of net advertising revenues,
depending on whether net revenues exist for distribution and whether service costs exceeded the
annual Service Cap. Payments to the City will be made on a quarterly basis. The formula is shown
on Exhibit B attached to the Agreement. Rainbow projects that net revenue to the City for the first
year of the program is anticipated to be between approximately$210,000 and $295,000, but these
projections may be revised based on the market response to the program.
Starting with the date of execution of the Agreement, and continuing for two full years, the City will
provide a maximum share of 10% of revenues it receives from this program only as a commission
payment to Active Network, which initially brought the recycling program to the City under the
agreement to provide services, as approved by the City Council in March 7, 2011. In the event no
revenues are received, no payment will be made to Active Network.
Item 15. - 2 HB -240-
Dept.ID ED 13-16 Page 3 of 3
Meeting Date:6/17/2013
Environmental Status: A Coastal Development Permit was issued for the approved receptacle on
May 8, 2012.
Strategic Plan Goal:
Enhance economic development
Attachment(s):
1. Agreement and License to Install Waste Receptacles
2. Prototype Photographs
xs -241- Item 15. - 3
ATTACHMENT # 1
Item is. - a „d -242-
AGREEMENT AND LICENSE
`A / TO INSTALL WASTE RECEPTACLES
This Agreement and License (License or Agreement), made and entered into this
day of e_._ , 20_ by and between Rainbow Disposal Company,
Inc., a California corporation dba Rainbow Environmental Services (hereinafter"Rainbow" or
"Licensee"), and the City of Huntington Beach, a municipal corporation of the State of
California(hereinafter"City").
RECITALS
A. City desires to conduct a public service advertising campaign utilizing trash receptacles as
the medium whereby the advertisements will be placed, and
B. Rainbow has an exclusive agreement to collect and dispose of refuse in the City, and
C. Rainbow and City desire to provide for waste receptacles to be placed on City property for
the purpose of collecting waste as well as providing public service advertising.
D. Licensee represents that Licensee is able and willing to provide such services and to comply
with the applicable regulations pertaining to transit advertising services, including but not
limited to Huntington Beach Municipal Code Chapter 12.36 entitled "Benches, Telephone
Booths, and Other Public Service Items" (hereinafter"Chapter 12.36"), and
E. In undertaking the performance of this License, Licensee represents that it is capable and that
any services performed by Licensee under this License will be performed in compliance with
such standards as may reasonably be expected from a professional in the field. In addition,
Licensee has the financial, legal and technical ability to provide the services, facilities and
equipment as set forth in this Agreement granting this License, and
F. The terms and conditions of this License are reasonable to meet the future public service
advertising related needs and interests of the community taking into account the cost of
meeting such needs and interests,
NOW THEREFORE, in consideration of the mutual and respective promises, and
subject to the terms and conditions hereinafter set forth, the parties agree as follows:
1. TERM �F-
This License shall colp7ence on the date first written above and terminate five (5)
years thereafter on--1j- ,- 7 /�unless terminated earlier in accordance with this
Agreement. The term may be extended for one additional five (5) year term upon mutual,
written agreement of the parties.
2. GRANT OF AUTHORITY, LIMITS AND RESERVATIONS
(a) Grant of Authority. City hereby grants to Licensee, subject to the
terms and conditions of this License and all applicable laws and regulations pertinent thereto,
the right, privilege, and authority to operate and maintain trash receptacles and advertising
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thereto within the City as further defined herein. The license areas contemplated by this
Agreement consist of all property within the boundaries of the City of Huntington Beach as it
exists on the effective date of the Agreement, and as the boundaries may exist during the
license period, through any annexation. A map of the specific area and locations of waste
receptacles subject to this License including ingress and egress routes ("License Area") is
attached hereto as Exhibit A and incorporated by this reference. Any modification to the
License Area described in this paragraph must be approved in writing by the City Manager or
his/her designee.
(b) Scope of License. The License is intended to convey limited rights and
interests only as to those Rights-of-Way or public property in which City has an actual
interest. It is not a warranty of title or interest in any Right-of-Way or public property; it does
not provide Licensee any interest in any particular location within the Right-of-Way or public
property; and it does not confer rights other than as expressly provided in the grant. The
License does not deprive City or Rainbow (by virtue of its exclusive franchise with the City)
of any powers, rights, or privileges it now has or may later acquire in the future to use,
perform work on, or to regulate the use of, and to control the Right-of-Way or property,
including without limitation the right to perform work on its roadways, Right-of-Way or
appurtenant drainage facilities, including but not limited to, constructing, altering, removing,
paving, widening, grading, or excavating.
(c) Exercise of Authority under License. This License only authorizes Licensee to
provide waste receptacles with advertising. Neither this License nor the grant of the license
shall be interpreted to prevent City from imposing additional conditions consistent with
applicable law; including additional compensation conditions for use of the Rights-of-Way or
property should Licensee provide services other than those contemplated herein.
(d) Licensee Bears Its Own Costs. Unless otherwise expressly provided by
applicable law or in this License, all acts that Licensee is required to perform must be
performed at Licensee's own expense.
(e) Advertising Receptacle services. City and Licensee will meet and create a
schedule whereby Licensee will operate the specific services described in Exhibits A and 1B
attached hereto and incorporated herein by reference. In addition to the services and
guidelines established in Exhibits A and B, the following applies:
1. Licensee, through the Environmental Education Team, shall approve all
advertising. All advertising shall conform to the requirements of Huntington Beach
Municipal Code 12.36. Any proposed advertising shall not:
a) Display the words "STOP," "DRIVE-IN," "DANGER," or any other
word, phrase, symbol or character which may interfere with, mislead,
confuse, or direct vehicular traffic;
b) Comprise of rotating, revolving, or flashing lighting devices;
c) Promote material which the City in its sole discretion determines is
offensive to community standards of good taste;
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d) Promote companies whose business is substantially derived from the
sale or manufacture of tobacco products or alcoholic beverages;
sexually-oriented businesses; is in violation of any State and/or Federal
law; any other industry, business or product which City determines, in
its sole discretion, is not in the best interest of City and/or not
consistent with the goals of the Program. Any exceptions to the
foregoing must be approved by a majority of the City Council;
(e) Contain "on-site business identification signs," "off-site business
identification signs," or"political advertisements."
For the purpose of this Agreement "on-site business identification
signs" are defined as waste receptacle ad panels immediately adjacent to the
business which is the subject of the receptacle advertisement. "Off-site
identification signs" are defined as ad panels that give specific,direction to an
advertiser's place of business other than the site's address. Restrictions include,
but are not limited to indications such as: directional arrows; "one block,"
"next right," etc. The City Manager or his/her designee will make the final
determination on unacceptable advertising. In the event that an advertisement
is determined to be unacceptable, Licensee agrees to remove said advertising
within twenty-four(24) hours of official notification.
3. COMPENSATION TO CITY
For each year during the term of this Agreement, Licensee agrees to pay to City a
percentage of net advertising revenues as set forth in Exhibit "B," attached hereto and
incorporated by reference. If at any time during the Term, Licensee and City agree to
decrease the number of authorized waste receptacles, Rainbow shall not decrease the
percentage of revenue to be provided by City.
Licensee shall pay quarterly the contracted percentage of net advertising revenues.
Payments shall be made to the City Treasurer, P.O. Box 711, Huntington Beach, CA 92648.
If the payment required by this section is not received by the Finance Department
within fifteen (15) calendar days after the end of the month for which the payment is paid, or
the next business day if the fifteenth day falls on a weekend or holiday, Licensee shall pay the
following late charge and penalty: 1) a late charge of ten percent (10%) shall be applied to
any outstanding balance after any payment hereunder is due but unpaid; and 2) one and one-
half percent (1-1/2%) penalty per month shall be added for each month such payment
hereunder is due but unpaid.
Within sixty(60) days of the end of each contract year Licensee shall deliver to City a
Statement of Accounts for the preceding contract year, showing all waste receptacle locations,
the advertiser or advertisers at each advertising receptacle during the preceding contract year,
the gross advertising revenues received for each advertising panel at each advertising
receptacle and the applicable Percentage Revenue for that year. The Statement of Accounts
shall be prepared or approved by an officer of the corporation or by a certified public
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accountant according to customary accounting practices and shall be accompanied by a
certificate of an authorized officer of Licensee attesting to the truth and accuracy of the
information relied upon by the accountant, according to the certifying officer's best
knowledge. In the event that the Statement of Accounts for a year indicates an underpayment
of revenue to the City, Licensee shall pay the difference to City at the time of filing the
Statement of Accounts.
City and its authorized agents shall be granted reasonable access during Licensee's
normal business hours to all of Licensee's books, documents, papers, and records that relate to
this Agreement.
4. WASTE RECEPTACLE DESIGN STANDARDS
(a). Waste Receptacles shall meet the minimum design requirements as defined by
City. Waste receptacle design and locations shall be consistent with the Conditional Use
Permit and Coastal Development Permit issued on May 2, 2012. Waste receptacles may be
smaller in size than previously approved, but modifications to colors, number of repository
openings, placement and size of advertising panels and content requirements shall remain
within the parameters of the approved entitlements.
(b). All work performed in relation to this agreement within City boundaries shall
conform to City standards, including the latest edition of Standard Specifications for Public
Works Construction(Green Book).
(c). Each Waste Receptacle site design shall be compatible with the landscaping in
its vicinity, in a manner satisfactory to City. Locations shall not be added or reduced without
written consent of both parties.
(d). Licensee shall permanently affix in a conspicuous area on each Waste
Receptacle an owner identification tag which includes Licensee's business name and 24 hour
service telephone number.
5. WASTE RECEPTACLES MAINTENANCE AND REPAIR
Licensee shall, at its sole expense, purchase, install and maintain all waste receptacles
in a neat, attractive, safe, and sanitary manner in accordance with City guidelines and to the
satisfaction of the City Manager or his/ her designee. This includes, but is not limited to,
removal of litter, graffiti, and debris, cleaning of all visible surfaces, emptying trash
receptacles, and supplying replacement receptacles when deemed necessary. All waste
receptacles will remain the property of Licensee at all times.
A service schedule shall be established by Licensee and approved in writing by both
parties. The service schedule shall cover regular daily service schedule, service for spillage,
replacement of receptacles, and vandalism, including graffiti and stickers.
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Fees for service of the waste receptacles shall be based upon the established service
schedule and shall have a fixed service rate per receptacle.
Licensee shall process and receive all revenues for commodities collected in recycling
receptacles.
The schedule for calculation of costs will run concurrent with the existing City
Accounts schedule, operating from February 1 —January 31 of each year.
Costs for service shall be applied in the following order:
o First, against funds remaining under the existing service cap.
o Second, against net profit to City.
At no time, unless mutually agreed in writing, shall City pay for costs of service,
including such instances in which the annual service cost exceeds both the service cap and the
net profit.
In the event Licensee fails to correct, repair, replace, or remove a waste receptacle as
required by this Agreement, City may, at its sole discretion, cause the correction, repair,
replacement, or removal of the waste receptacle. Any costs incurred by City shall be paid
directly to City by Licensee within fifteen (15) days following receipt by Licensee of City's
invoice. If payment is not received by the due date, a late charge of 1.5% per month,
compounded monthly, will be added. If payment is not received within 30 days of the due
date, the Licensee will be in default and the Agreement may be terminated immediately.
7. SITE RELOCATION
City will have the right to require the Licensee to relocate waste receptacles at its sole
expense, for City's convenience. Licensee shall not relocate or remove waste receptacles
without City's permission. City may require or permit waste receptacles to be removed or
relocated if it has been demonstrated to be incapable of proper maintenance due to excessive
vandalism or any other reasonable cause. "Excessive vandalism" is defined as damage
inflicted to an individual receptacle during any consecutive six (6) month period, which
requires cumulative expenditures for replacement and repair that exceed the original cost of
construction and installation of the receptacle.
8. INDEPENDENT CONTRACTOR
Licensee shall, during the entire term of this License, be construed to be an
independent contractor and not an employee of City. This License is not intended nor shall it
be construed to create an employer-employee relationship, a joint venture relationship, or to
allow City to exercise discretion or control over the professional manner in which Licensee
performs the services which are the subject matter of this License; however, the services to be
provided by Licensee shall be provided in a manner consistent with any applicable standards
and regulations governing such services. Licensee shall pay all salaries and wages, employer's
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social security taxes, unemployment insurance and similar taxes relating to employees and shall
be responsible for all applicable withholding taxes.
9. CONFLICT OF INTEREST CLAUSE
Licensee covenants that it presently has no interests and shall not have interests, direct
or indirect, which would conflict in any manner with performance of services specified under
this License.
10. WAIVER
The failure of City or Licensee on one or more occasions to exercise a right or to
require compliance or performance under this License, or any other applicable law shall not
be deemed to constitute a waiver of such right or a waiver of compliance or performance,
unless such right has been specifically waived in writing. Any waiver of a breach is not a
waiver of any other breach, whether similar to or different from that waived.
11. NOTICE
Any notice, tender, demand, delivery, or other communication pursuant to this License
shall be in writing and shall be deemed to be properly given if delivered in person or mailed
by first class or certified mail, postage prepaid, or sent by telefacsimile or other telegraphic
communication in the manner provided in this Section, to the following persons:
To City: To Licensee:
City of Huntington Beach Rainbow Disposal:
Assistant City Manager Bruce Shuman, President/CEO
2000 Main Street P.O. Box 1026
Huntington Beach, CA 92647 Huntington Beach, CA 92647-1027
A party may change its address by giving notice in writing to the other party.
Thereafter, any notice, tender, demand, delivery, or other communication shall be addressed
and transmitted to the new address. If sent by mail, any notice, tender, demand, delivery, or
other communication shall be effective or deemed to have been given three (3) days after it
has been deposited in the United States mail, duly registered or certified, with postage
prepaid, and addressed as set forth above. If sent by telefacsimile, any notice, tender,
demand, delivery, or other communication shall be effective or deemed to have been given
twenty-four (24) hours after the time set forth on the transmission report issued by the
transmitting facsimile machine, addressed as set forth above. For purposes of calculating
these time frames, weekends, federal, state, County or City holidays shall be excluded.
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12. EXCLUSIVITY AND AMENDMENT
This License represents the complete and exclusive statement between City and
Licensee, for the performance of this License and supersedes any and all other licenses, oral
or written, between the parties for the same purpose. In the event of a conflict between the
terms of this License and any attachments hereto, the terms of this License shall prevail. This
License may not be modified except by written instrument signed by City and by an
authorized representative of Licensee. The parties agree that any terms or conditions of any
purchase order or other instrument that are inconsistent with, or in addition to, that terms and
conditions hereof, shall not bind,or obligate Licensee nor City. Each party to this License
acknowledges that no representations, inducements, promises or Licenses, orally or otherwise,
have been made by any party, or anyone acting on behalf of any party, which is not embodied
herein.
13. ASSIGNMENT
Inasmuch as this License is intended to secure the specialized services of Licensee,
Licensee may not assign, transfer, delegate, or subcontract any interest herein without the
prior written consent of City at City's sole and absolute discretion, and any such assignment,
transfer, delegation or subcontract without City's prior written consent shall be considered
null and void. Nothing in this License shall be construed to limit City's ability to have any of
the services which are the subject to this License performed by City personnel or by other
Licensees retained by City.
14. TERMINATION; REMOVAL OF RECEPTACLES
A. For Convenience. City may terminate this agreement for convenience, in
City's sole discretion, upon 90 days prior written notice to Licensee. Following such notice
of termination for convenience, all waste receptacles shall be removed by Licensee at its sole
cost and expense.
B. For Cause or Breach. If Licensee fails to obtain or maintain the insurance
coverage required by this Agreement, or fails to provide proof of coverage within three (3)
days following City's written demand, City may immediately terminate this Agreement. If
City determines in its sole discretion that Licensee has otherwise breached or failed to
adequately perform its obligations under this Agreement, and that cause exists to terminate
this Agreement, City shall provide Licensee with written notice of such breach or default. If
the breach or default is capable of being cured within thirty (30) days, Licensee shall have
such period to effect a cure prior to City terminating this Agreement. If the breach or default
is such that it is not reasonably capable of being cured within thirty (30) days, and Licensee
(i) initiates corrective action within said period, and (ii) diligently, continually, and in good
faith works to effect a cure as soon as possible, then Licensee shall have an additional sixty
(60) days to cure the breach or default prior to termination of this Agreement by City. If
Licensee fails to take corrective action or cure the default within such time, City may
terminate this Agreement and shall give Licensee notice thereof.
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C. In the event waste receptacles are removed as a result of termination for
convenience or by cause or breach, Licensee shall replace previously-removed trash-only
containers and continue to provide service under the existing service cap at the rate for trash-
only containers.
15. DISCRIMINATION
Licensee shall not discriminate because of race, color, creed, religion, sex, marital
status, sexual orientation, age, national origin, ancestry, or disability, as defined and
prohibited by applicable law, in the recruitment, selection, training, utilization, promotion,
termination or other employment related activities. Licensee affirms that it is an equal
opportunity employer and shall comply with all applicable federal, state and local laws and
regulations.
16. JURISDICTION - VENUE
This License and all questions relating to its validity, interpretation, performance, and
enforcement shall be governed and construed in accordance with the laws of the State of
California. This License has been executed and delivered in the State of California and the
validity, interpretation, performance, and enforcement of any of the clauses of this License
shall be determined and governed by the laws of the State of California. Both parties further
agree that Orange County, California, shall be the venue for any action or proceeding that
may be brought or arise out of, in connection with or by reason of this License.
17. PROFESSIONAL LICENSES
Licensee shall, throughout the term of this License, maintain all necessary licenses,
permits, approvals, waivers, and exemptions necessary for the provision of the services
hereunder and required by the laws and regulations of the United States, the State of
California, the City of Huntington Beach and all other governmental agencies. Licensee shall
notify City immediately and in writing of her inability to obtain or maintain such permits,
licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of
this License.
18. INDEMNIFICATION, DEFENSE, HOLD HARMLESS
Licensee 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 Licensee's employees and damage to Licensee's property,
arising directly or indirectly out of the obligations or operations herein undertaken by
Licensee, caused in whole or in part by any negligent act or omission of Licensee, 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
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misconduct of City. Licensee will conduct all defenses at its sole cost and expense and City
shall approve selection of Licensee'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 Licensee.
19. INSURANCE
(a) General Public Liability Insurance / Motor Vehicle Coverage. In addition to
workers' compensation and employer's liability insurance as required herein and Licensee's
covenant to defend, hold harmless and indemnify City, Licensee shall obtain and furnish to
City, a policy of general public liability insurance, including motor vehicle coverage covering
the Project/Service. This policy shall indemnify Licensee, 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 Project/Service, 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 One Million
Dollars ($1,000,000) per occurrence. If coverage is provided under a form which includes a
designated general aggregate limit, the aggregate limit must be no less than One Million
Dollars ($1,000,000) for this Project/Service. 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 to the
Project/Service shall be deemed excess coverage and that Licensee'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.
(b) Workers' Compensation and Employer's Liability Insurance. Pursuant to
California Labor Code Section 1861, Licensee acknowledges awareness of Section 3700 et
seq. of this Code, which requires every employer to be insured against liability for workers'
compensation; Licensee covenants that it will comply with such provisions prior to
commencing performance of the work hereunder.
Licensee shall obtain and furnish to City workers' compensation and
employer's liability insurance in an amount of not less than the State statutory limits.
Licensee shall require all subcontractors to provide such workers'
compensation and employer's liability insurance for all of the subcontractors' employees.
Licensee shall furnish to City a certificate of waiver of subrogation under the terms of the
workers' compensation and employer's liability insurance and Licensee shall similarly require
all subcontractors to waive subrogation.
(c) Certificates of Insurance, Additional Insured Endorsements. Prior to
commencing performance of the work hereunder, Licensee shall furnish to City certificates of
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insurance subject to approval of the City's Attorney evidencing the foregoing insurance
coverages as required by this Agreement; the certificates shall:
1. provide the name and policy number of each carrier and policy;
2. state that the policy is currently in force; and
3. promise to provide that such policies will not be canceled or modified
without thirty(30) days' prior written notice of City.
Licensee shall maintain the foregoing insurance coverages in force until the
work under this Agreement is fully completed and accepted by City.
The requirement for carrying the foregoing insurance coverages shall not
derogate from the Licensee'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. Licensee shall pay, in a prompt
and timely manner, the premiums on all insurance hereinabove required.
Licensee shall provide a separate copy of the additional insured endorsement to
each of Licensee'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. COMPLIANCE WITH LAW
Licensee shall comply with all statutes, ordinances, regulations, and requirements of
all governmental entities, federal, state, county and municipal, relating to this License whether
such statutes, ordinances, regulations, and requirements are now in force or hereinafter
enacted. The judgment of any court of competent jurisdiction, or the admission by Licensee
in a proceeding brought against Licensee by any government entity,that Licensee has violated
any such statute, ordinance, regulation, or requirement shall be conclusive as between City
and Licensee and shall be ground for termination of this License by City.
21. MISCELLANEOUS PROVISIONS
(a) Each undersigned represents and warrants that its signature hereinbelow has the
power, authority and right to bind their respective parties to each of the terms of this License, and
shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or
damages to City in the event that such authority or power is not, in fact, held by the signatory or
is withdrawn.
(b) All Exhibits referenced herein and attached hereto shall be incorporated as if fully
set forth in the body of this License.
10
12-3200.001/93076.docx
IN WITNESS WHEREOF, the parties hereto have executed this License the date and
year first above written.
RAINBOW DISPOSAL COMPANY, INC., CITY OF HUNTINGTON BEACH, a '
a California corporation dba RAINBOW munic' al corporation of the State of California
ENVIRONMENTAL SERVICES
.ter � Mayor
Ir print name
ITS: (circle one airma residentNice President �
I)
CijVC1erk b nj I"
By: _ INITIA VIEWED AND APPROVED:
print name
ITS: (circle one)Secretary/ hief Financial y Manager
i ffice /Asst. Secretary-Treasurer
APPROVED AS TO FORM:
(-,,4 City Attorn:y I�
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Exhibit B: AGREEMENT AND LICENSE TO INSTALL WASTE RECEPTACLES
Revenue Share Calculation
1. Number of Initial Combination Receptacles by Advertising Zone:
Zone#1 Zone#2 Zone#3 Zone#4 Total
23 9 7 6 45
2.Calculation of Revenue Share with City of Huntington Beach:
GROSS ADVERTISING REVENUES:* $ XXXX
Less: Projected 30%for Discounts/Vacancies XXXX
Equals Net Advertising Revenues $ XXXX
EXPENSES:
Sales Administration/Commissions(30%total) $ XXXX
Annual Straight Line Depreciation on Combined Cans(7 Years) XXXX
Equals Total Expenses ($XXXX)
GROSS ADVERTISING REVENUES LESS EXPENSES: $ XXXX
Less Net Increase beyond Service Cap(if any)** XXXX
REVENUE TO CITY OF HUNTINGTON BEACH: XXXX
* Gross revenues derived from advertising only; revenue share not provided for commodities.
** Charged first to existing Franchise Cap;only excess charges beyond the Cap will be charged to this
revenue share calculation.
Exhibit B-Share Formula 6/3/2013
Exhibit B: AGREEMENT AND LICENSE TO INSTALL WASTE RECEPTACLES
Projected Revenues and Expenditures-Year 1
1. Number of Initial Combination Receptacles by Advertising Zone:
Zone 1 Zone 2 Zone 3 Zone 4 TOTAL
#of Combination Receptacles 23 9 7 6 45
High Season Revenue(5 months) $ 207,000 $ 72,000 $ 52,500 $ 39,000
Low Season Revenue(7 months) $ 144,900 $ 50,400 $ 36,750 $ 27,300
Estimated Gross Annual Revenue $ 351,900 $ 122,400 $ 89,250 $ 66,300 $ 629,850
2. Calculation of Revenue Share with City of Huntington Beach:
GROSS ADVERTISING REVENUES:* $ 629,850
Less Projection for Discounts/Vacancies(30%) $ 188,955
Projected Net Advertising Revenues $ 440,895
EXPENSES:
Sales Administration/Commissions(30%) $ 188,955
Annual Straight Line Depreciation on Combined Cans(7 Years) $ 12,857
Total Expenses $ 201,812
PROJECTED TOTAL NET REVENUES: $ 239,083
Net Increase in Service** $ 85,748
PROJECTED NET REVENUE TO CITY OF HUNTINGTON BEACH $ 153,335
* Gross revenues derived from advertising only; revenue share not provided for commodities.
** Charged first to existing Franchise Cap; only excess charges beyond the Cap will be charged to this
revenue share calculation.
6/3/2013
Exhibit B-Zones 1-4,Year 1
ATTACHMENT #2
Attachment 2
Receptacle Prototype
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xB -261- Item 15. - 23
City Of Huntington Beach
2000 Main Street ® Huntington Beach, CA 92648
- (714) 536-5227 + www.huntingtonbeachea.gov
FB 7 ,gag aQ ® Office of the City Clerk
` Joan L. Flynn, City Clerk
June 19, 2013
Rainbow Disposal
Attn: Bruce Shuman, President/CEO
P. O. Box 1026
Huntington Beach, CA 92647-1027
Dear Mr, Shuman:
Enclosed please find a copy of"Agreement and License To Install Waste Receptacles"
for implementation of a public recycling program in Huntington Beach.
Sincerely,
Joan L. Flynn
City Clerk
JF:pe
Enclosure
Sister Cities: Anjo, Japan ® Waitakere, New Zealand