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HomeMy WebLinkAbout93-006 Zanker Road Resource Management 93-006 ZANKER ROAD RESOURCE MANAGEMENT i FIRST AMENDMENT TO AGREEMENT FOR PROCESSING OF YARDWASTE INTO COMPOST CITY OF CUPERTINO THIS AGREEMENT is made, entered and is effective this 1st _ d..y of October 1996, by and between the CITY OF CUPERTINO, CALIFORNIA, a California municipal corporation, (hereinafter "City") and ZANKER ROAD RESOURCE MANAGEMENT, LTD. , a California limited partnership (hereinafter "Contractor") . RECITALS A. On or about February 9, 1993 , City and Contractor entered into an agreement for processing of yard waste into compost; S. The parties hereto desire to amend some of the provisions of said agreement; In consideration of the mutual promises, covenants and conditions contained in this First :amendment to Agreement and for other good and valuable consideration, City and Contractor hereby agree that the following sections of the aforesaid agreement dated February 9, 1993 are amended to read as follows: (1) Section 2 . 3 is hereby amended in its entirety to read as follows: "Receipt of Compost. City shall be responsible for hauling and distribution of a portion of compost generated by Contractor at the Processing Facility for Yardwaste delivered pursuant to this Agreement. Contractor shall load the finished compost into City supplied trucks and shall weigh the compost hauled away by City. The amount of compost to be hauled and distributed by City shall be equal, on a monthly basis, to fifteen percent (15%) of the weight of Yardwaste delivered to the Processing Facility in accordance with this Agreement. City shall pick up and haul away said compost on a regularly scheduled basis as such compost is available. Contractor will notify City when the compost is available for pickup and the City shall have one hundred eighty (180) days from the first of the month following the month in which the Yardwaste is delivered to Contractor to pickup and haul away said compost. In the event City does not pickup and haul away said compost with said one hundred eighty (180) day period, City shall lose the right to receive the compost not picked up and that compost will be retained by Contractor, free of charge. All compost delivered to the City pursuant to this Agreement shall. be Contractor' s 7-Best Premium Compost Blend. " (2) Section. 2 . 5 is hereby added to said agreement to read as follows: 112 . 5 Purchase of Additional Compost City shall have the right to purchase from Contractor, on a monthly basis, additional compost up to ten percent (10%) of the weight of Yardwaste delivered to the Processing Facility in accordance with this Agreement . The price paid for said additional compost shall be $5 per ton which amount shall be adjusted in accordance with Section 5. 3 hereof. City shall give Contractor at least two weeks advance notice of its desire to purchase additional compost. " (3) Section 2 . 6 is hereby added to said agreement to read as follows: 112 . 6 Reduction of Compost The City may elect, upon thirty (30) days prior notice to Contractor, to retain only ten percent ( 10%) of the compost rather than the fifteen percent (1.6%) provided for in paragraph 2 . 3 hereof. In the evrnt oZ said reduction, Contractor shall reduce its then existing Tipping Fee by fifty cents ($ . 50) per ton for such period of time as City is receiving only ten percent (100) of the compost generated from its Yardwaste . City shall be entitled to a reduction up to three times per year during the term of this Agreement or any extension hereof . " (4) Section 2 . 7 is hereby added to said agreement to read as follows: 112 .7 Exclusive Contractor Subject to requirements of City' s franchise with its solid waste hauler, City will exclusively utilize the Contractor for all recycling and processing services for it' s curbside generated yard wastes, for the term of this Agreement and for any extensions thereof. " (5) Section 2 . 8 is hereby added to said agreement to read as follows: 2 o "Exchange of Compost for Other Products City shall have the right to acquire other products produced by Contractor in lieu of any portion of the fifteen percent (15%) of the compost City is entitled to receive pursuant to paragraph 2. 3 hereof. The amount to be exchanged shall be based on the then existing unit prices charged by Zanker for its Z-Best Premium Compost Blend and the current price charged for other products to for which the compost is to be exchanged. (For example: If the City wishes to exchange 100 tons of compost which is then selling at $20 per ton, the City would be entitled to acquire $2,000 worth of other products produced by Zanker at their then current price. So if gypsum was selling for $20 per ton, City would be entitled to receive 100 tons of gypsum) . " (6) Section 4.2 is amended in its entirety to read as follows: "Section 4.2 . Term. This agreement shall continue for five (5) years from the date of this Agreement and City shall have an option to renew this agreement for two additional terms of five (5) years provided that City and Contractor agree on the Tipping Fee to be charged for said extension or extensions. " (7) Section 5. 1 is hereby amended in its entirety to read as follows: 115. 1 Tipping Fee The Tipping Fee for the delivery of Yardwaste to the Processing Facility (including processing and ultimate conversion to compost or other usable materials at the Processing Facility) initially shall be $24 . 00 per Ton, commencing as of the date of this Agreement, which amount shall be adjusted in accordance with Section 5. 3 hereof. " (8) Section 5. 3 is amended in part to read as follows: 115. 3 Annual Adjustment of Tipping Fee Section 5.3 is hereby amended to change the beginning date to October 1, 1997 , and component "D" in the adjustment formula shall be revised to read as follows: 'D = Eighty percent (800) of the net percentage change in the Consumer Price Index (CPI) , all urban consumers (CPI-U) , for San Francisco-Oakland, California, published by the U.S. Department of Labor, Bureau of Labor Statistics' . " 3 e O (9) Section 7 . 3 is hereby added to said agreement to read as follows: "'7.3 Credit for Compost On the date of this Agreement, Contractor shall credit City with the sum of $5 per ton in exchange for all compost that City has accumulated under this Agreement up to the date of this Agreement" . WHEREFORE, the parties hereto have set their hand and seal on the date affixed next to their signature. Dated: October 11. 1996 , 1996 CITY OF CUPERTINO, a municipal corporation, By: ak 1 It -Mayor ZANKER ROAD RESOURCE MANAGEMENT, LTD. , a California limited partnership By: ZANKER ROAD RESOURCE RECOVERY, INC. , a California corporation, General Partner Richard A. Cristina, President 4 P. PUBLIC WORKS FEB 8 1993 AGREEMENT FOR PROCESSING OF YARDWASTE INTO COMPOST BETWEEN THE CITY OF CUPERTINO AND ZANKER ROAD RESOURCE MANAGEMENT, Ltd, TABLE OF CONTENTS SECTION PAGE rFCITALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i I . DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 . 1 City. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 .2 Contaminated Yardwaste . . . . . . . . . . . . . . . . . . 2 1 .3 Contractor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 . 4 Debris Box . . . . . . . . . . . . . . . . . . . . . . 2 1 . 5 Designated Hauler . . . . . . . . . . . . . . . . . . . . . . . 2 1 . 6 Hazardous Material . . . . . . . . . . . . . . . . . . . . . . 3 1 .7 Processing Facility . . . . . . . . . . . . . . . . . . . . . 3 1 . 8 Tipping Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1 . 9 Ton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1 .10 Yardwaste. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2 . CITY` S RESPONSIBILITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2 .1 Delivery of Municipal Yardwaste. . . . . . . . . 4 2 .2 Unauthorized Waste . . . . . . . . . . . . . . . . . . . . . . 5 2 . 3 Receipt of Compost . . . . . . . . . . . . . . . . . . . . . . 5 2 .4 Purchase of Wood Chips/Ground Cover . . . . . 5 3 . CONTRACTOR' S RESPONSIBILITIES. . . . . . . . . . . . . . . . . . . . . 6 3 . 1 Receipt of Municipal Yardwaste . . . . . . . . . . 6 3 .2 Operational Requirements . . . . . . . . . . . . . . . . 7 3 .2 . 1 Hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 .2 .2 Scales, Cubic Yard Conversion. . . . 7 3 .2 . 3 Records . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3 . 3 Designated Haulers . . . . . . . . . . . . . . . . . . . . . . 8 3 . 3 . 1 Acceptance of Waste . . . . . . . . . . . . . . 8 3 . 3 . 2 City Designation. . . . . . . . . . . . . . . . . 8 3 .4 Compliance with Laws and Regulations . , . . 8 3 . 5 Permits, Licenses, Approvals . . . . . . . . . . . . 9 3 . 5 . 1 Contractor to Obtain . . . . . . . . . . . . . 9 3 .6 Inspection of Operations. . . . . . . . . . . . . . . . 9 3 . 7 Safety Provisions . . . . . . . . . . . . . . . . . . . . . . . 9 4 . TERM OF AGREEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 4 . 1 Effective Date of Performance. . . . . . . . . . . 10 4 . 2 Term. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 i . COMPENSATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 5 . 1 Tipping Fee. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . 10 5 . 2 Hazardous Material Cost . . . . . . . . . . . . . . . . . 10 5 .3 Annual Adjustment of Tipping Fee . . . . . . . . 11 5 . 4 Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 5 .4 . 1 Monthly Invoice and Report . . . . . . . 13 5 .4 .2 Time of City 's Payment . . . . . . . . . . . 13 5 . 5 Full Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 5 . 6 Additional Governmental Charges. . . . . . . . . 14 6 . ASSURANCE OF PERFORMANCE. . . . . . . . . . . . . . . . . . . . . . . . . . 14 6 . 1 Force Majeure. . . . . . . . . . . . . . . . . . . . . . . . . . . 14 6 . 1 .1 Events Resulting in Force Majeure 14 6 . 1 .2 Suspension of Obligations. . . . . . . . 15 6 . 1. 3 Alternative Disposal Arrangements 15 6 .2 Insurance Requirements . . . . . . . . . . . . . . . . . . 16 6 . 3 Hold Harmless and Indemnification . . . . . . . 16 6 .3 .1 By Contractor . . . . . . . . . . . . . . . . . . . . 16 6 .3 .2 By City. . . . . . . . . . . . . . . . . . . . . . . 17 6. 3 . 3 Negligence Defined. . . . . . . . . . . . . . . 18 6 .3 .4 Notice and Access . . . . . . . . . . . . . . . . 18 6. 3 .5 Insurance Coverage. . . . . . . . . . . . . . . 19 6 .3 . 6 Survival . . . . . . . . . . . . . . . . . . . . . . . . . 19 7 . GENERAL PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 7 . 1 Independent Contractor . . . . . . . . . . . . . . . . . . 19 7 . 2 City War.•ranty . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 7 .3 Venue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 7 . 4 Savings Clause. . . . . . . . . . . . . . . . . . . . . . . . . . 21 7 . 5 Section Headings . . . . . . . . . . . . . . . . . . . . . . . . 21 7 .6 Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 7 . 7 Assignability. . . . . . . . . . . . . . . . . . . . . . . . . . . 22 7 . 8 Notices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 7 . 9 Waiver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 7 . 10 Law to Govern . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 7 . 11 Attorney' s Fees . . . . . . . . . . . . . . . . . . . . . . . . . 23 7 .12 Entirety. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 EXHIBITS "A" Unincorporated Geographic Area of Santa Clara County "B" Equivalent Weight of Municipal Solid Waste "C" Report of Refuse Received at the Recyclery/Zanker Road Processing Facility "D" Insurance Requirements ii . AGREEMENT FOR PROCESSING OF YARDWASTE INTOCOMPOST THIS AGREEMENT is made and entered into this day of 1993, by and betwee,� the CITY OF CUPERTINO, CALIFOR IA, a California municipal corporation (herein "City" ) , and ZANKER ROAD RESOURCE MANAGEMENT , Ltd . , a California Limited Partnership ( herein "Contractor " ) . R E C I T A L S : WHEREAS, City desires to contract for "recycling" of its residential yardwaste into compost and other usable materials in order to avoid landfilling of this material ; and WHEREAS, Contractor owns and operates the Zanker Road class III landfill ( the "Processing Facility" ) and is in the business of accepting yardwaste and converting it into compost and other usable materials . NOW THEREFORE, in consideration of the mutual promises, covenants and conditions contained in this Agreement , and for other good and valuable consideration, the par ;::ies to this Agreement hereky agree as follows . 1 . -rF.CT:CN 1 . Definitions . The following capitalized names and terms shall have the respective meanings indicated : 1 . 1 City 'City° means the City of Cupertino, California, a municipal corporation organized under the laws of the State of California, all of the geographic area lying within the municipal boundaries of the City and all of the geographic area lying within such unincorporated areas of Santa Clara County, California as are set forth and described in Exhibit °A' , attached hereto and made a part hereof . 1.2 Contaminated Yardwaste "Contaminated Yardwaste" means any material, other than hazardous materials, not normally produced from gardens or landscapes such as, but not limited to, brick, rocks, gravel, large quantities of dirt, concrete, sod, non- organic wastes, oil, and wood or wood products. Also included are stumps and diseased elms and other, diseased trees and fibrous materials, such as palm branches. 1 . 3 Contractor 'Contractor° means Zanker Road Resource Management, Ltd. , a California limited partnership, its successors and assigns . 1 . 4 Debris Box •Debris Box' means a roll-off waste container used to collect, without compaction, construction debris and similar materials . 2 . 1 . 5 Desionated Hauler "Designated Hauler " means the waste haulers named by City pursuant to subsection 3 . 3 . 2 to deliver yardwaste to the Processing Facility. 1.6 Hazardous Material "Hazardous Material" means a waste, or combination of materials, which because of its quantity, concentration, or physical , chemical , or infectious characteristics, may either : (a ) Cause or significantly contribute to an increase in mortality or an increase in serious irreversible, or incapacitating reversible illness . (b) Pose a substantial present or potential hazard to human health or environment when improperly treated, stored, tLansported, or disposed of, or otherwise managed . 1 .7 Processing Facility "Processing Facility" means the equipment and property used by Contractor to process yardwaste at the Zanker Road Class III Landfill located at 705 Los Esteros Road, San Jose, California, 95134 , or the equipment and property used by the Contractor to process yardwaste at the Owens-Corning landfill site located on Los Esteros Road, San Jose, California , 95134 , if and when said Owens-Corning site is fully permitted. 3 . 1 . 8 Tipping Fee "Tipping Fee" means the amount , as set forth in Section 5 , payable by City to Contractor for each Ton of Yardwaste delivered to the Processing Facility pursuant to this Agreement . 1 .9 Ton "Ton" means a short Ton of 2 , 000 pounds avoirdupois . 1 . 10 Yardwaste "Yardwaste" means all materials containing not less than 99% by weight, per load, of plant debris, including grass clippings, leaves, prunings, branches, brush, tree trunks not exceeding six ( 6 ) inches in diameter , and other forms of organic waste generated from landscapes and gardens . SECTION 2 . CITY ' S RESPONSIBILITIES 2 . 1 Delivery of Municipal Yardwaste Subject to the other provisions of this Agreement, during the term of this Agreement , City will deliver or cause delivery of Yardwaste to the Processing Facility for conversion into compost and other usable materials in accordance with thi= Agreement . 4 . 2 .2 Unauthorized Waste City and City's Designated Hauler shall use reasonable business efforts to prevent delivery to the Processing Facility by City or City's Designated Haulers of Contaminated Yardwaste or Hazardous Materials. Minimal amounts of such material are expected to be mixed with delivered Yardwaste, however, this minimal amount shall not exceed one percent by weight, per load. City shall pay Contractor a cleanup charge of $40 (forty dollars) per ton for the entire truckload of Contaminated Yardwaste or Hazardous Materials whenever said one percent limnit is exceeded as shown in the following example: Example: Eight ton load with over one percent Contaminated Yardwaste ( 8 tons x $40 .00 = $320 .00 for this load ) . Contractor shall notify City and Designated Hauler by phone or Facsimile within 24 hours of finding a load of Contaminated Yardwaste and shall provide information regarding time of day received, truck number and type of contamination . A representative of tre Designated Hauler , and the City if it desires, shall be provided a reasonable opportunity to examine the contamin< _ed load prior to the cleanup charge being levied . 2 . 3 Receipt of Compost City shall be responsible for hauling and distribution of a portion of compost generated by Contractor «t the Processing Facility for Yardwaste delivered pursuant to this Agreement . Contractor shall load the finished compost into City supplied trucks and shall weigh the compost hauled away by City. 5 . The amount of compost to ce '..auiec and districutec City seal: to equal , on an.. annual basis , to the lesser of ( a ) twenty-five ( 25% ) Fercent cf the weight of Yardwaste delivered to the Processing Facility in accorcance with this Agreement or ( b ) ene hundred ( 100% ) percent of the compost produced from the Yardwaste delivered to the Processing Facility in accordance with this Agreement . City shall pick up and haul away said compost on a regularly scheduled basis as such compost is available . The process time to convert the Yardwaste to compost is approximately ninety ( 90 ) days . Contractor will notify City when the compost is available for pickup and the City shall have thirty ( 30 ) days to pickup and haul away said compost . 2 .4 Purchase of Wood Chips/Ground Cover In order to fulfill the requirement of AB 939, City shall have the option, on reasonable notice, to purchase up to one hundred percent ( 100% ) of the wood chips/ground cover produced from the yard waste delivered to the Processing Facility in accordance with this Agreement, at the same price and on the same terms that Contractor is selling said material to its customers . SECTION 3 . CONTRACTCR"S RESPONSIBILITIES 3 . 1 Receipt of. Municipal Yardwaste During the term of this Agreement , Contractor shall receive all Yardwaste delivered to the Processing Facility in accordance with Lhis Agreement . 6 . 3 .2 Operational Recuirements 3 . 2 . 1 Hours Contractor shall operate the Processing Facility for the receipt of Yardwaste from the Designated Haulers from at least 6 :00 a .m. to 5 :00 p.m. Monday through Friday and from 8 :00 a .m. to 4 : 00 p .m. on Saturday, except that the Processing Facility may be closed on Christmas Day, the fourth Thursday of November and New Year 's Day . 3 .2.2 Scales; Cubic Yard Conversion} Contractor shall operate and maintain a scale or scales to weigh awl Yardwaste delivered by Designated to the Processing Facility. In the event that the scales are temporarily out of service to weigh Yardwaste delivered to the Processing Facility, then, for the pur- poses of this Agreement, the ton equivalent of cubic yards of waste, measured at the entrance of the Processing Facility, shall be as set forth in Exhibit "B" , attached hereto and made a part hereof. Upon reaGonable prior notice, City or City's designated representative shall have a right to inspect said scales at any time during normal business hours provided that such representative does not interfere with work being performed by Contractor. 7. 3 .2 . 3 Records Contractor shall maintain daily records for each Designated Hauler necessary to compile the monthly report to be provided by Contractor pursuant to subsection 5 .4 . 1 . Upon reasonable prior notice, City or City's designated representative shall have the right to inspect such records and the record keeping procedures at any time during normal business hours provided that such representative does not interfere with work being performed by Contractor . 7A. 3 .3 Designated Haulers 3 .3 . 1 Acceptance of Waste Subject to provisions of this Agreement, Contractor shall accept all Yardwaste from City 's Designated Haulers and shall charge City the Tipping Fee and other charges that are provided in this Agreement . 3 . 3 . 2 City Designation City shall designate those waste haulers responsible for delivery of Yardwaste to the Processing Facility, provided that those so designated shall agree to observe all rules and regulations at the Processing Facility and to operate according to safe industry practices. 3 .4 Compliance with Laws and Regulations Subject to the other terms and conditions of this Agreement , Contractor agrees that, in the operation of the Processing Facility and the performance of services under this Agreement, Contractor will qualify under, and comply with , any and all federal, state and local laws and regulations now in force and which may hereafter , during the term of this Agreement, be e:iacted and become effective, which are applicable to Contractor , its employees, agents, or subcontractors, if any, concerning the operation of the Processing Facility. However , Contractor shall have the right to contest in good faith the application of such law or regulation to Processing Facility and Contractor shall not be deemed in breach of this Agreement during such good faith contest for failure to comply. 8 . 3 . 5 Permits, Licenses , Approvals 3 . 5 . 1 Contractor to Obtain Subject to the other terms and conditions of this Agreement, Contractor shall be responsible, at its sole expense, -Ior obtaining and maintaining all necessary permits, licenses and approvals from any and all governmental entities having jurisdiction over the Processing Facility in order that Contractor may operate the Processing Facility in accordance with the terms and conditions of this Agreement and any laws or regulations applicable to the Processing Facility. 3 .6 Inspection of Operations The designated representative of City shall have the right to observe and review Contractor ' s operations and enter Contractor ' s premises at the Processing Facility for the purpose of such observation and review during normal operating hours , subject to reasonable notice. This provision shall not be construed as giving to City any right to exercise control over the business or operation of Contractor or to direct any operations of Contractor or to direct in any respect the manner in which the business and operations shall be conducted . 3 . 7 Safety Provisions Contractor shall operate the Processing Facility in compliance with all applicable federal, state and local laws and regulations pertaining to safety. 9 . SECTION 4 . TERM OF AGREEMENT 4 . 1 Effective Date of Performance Performance hereunder shall be deemed to have commenced on February 9 , 1993 . 4 .2 Term This Agreement shall continue in full force and effect for five years from the effective date of performance. SECTION 5 . COMPENSATION 5 .1 Tipping Fee The Tipping Fee for the delivery of Yardwaste to the Processing Facility ( including processing and ultimate conversion to compost or other usable materials at the Processing Facility) initially shall be $28 . 50 per Ton which amount shall be adjusted in accordance with Section 5 .3 . 5 . 2 Hazardous Material Costs In the event City or Designated Hauler delivers to the Processing Facility Yardwaste which contains Hazardous Material , City shall pay to Contractor the sum of $40 per ton for said Hazardous Material load as provided in paragraph 2 .2 hereof . In addition to said $40 per ton charge, City shall arrange for the prompt pickup and proper disposal of said Hazardous Material . 10 . 5 .s Annual Adjustment of Tipping Fee and Other Charges The Tipping Fee and other charges provided for in this Agreement shall be adjusted as of January 1 of each year , begir ing as of January 1 , 1994 , ( the "Rate Adjustment Date" ) in accordance with the following formisla : P = A ( . 1 x B + . 1 x C + . 8 x D) A = The Tipping Fee. As of the date of this Agreement, the Tipping Fee is $28 . 50 . B = The net percentage change in the Employment Cost Index (Compensation ) , Private Industry Workers - Non-manufacturing, published by the U.S. Department of Labor , Bureau of Labor Statistics. C = The net percentage change in the Gross National Product Implicit Price Deflator for Producer ' s Durable Equipment ( non-residential ) , published quarterly by the U.S . Department of Commerce, Bureau of Economic Analysis . D = The net percentage change in the Consumer Price Index (CPI ) , All Urban Consumer (CPI-U) , for San Francisco-Oakland, California, published by the U.S. Department of Labor , Bureau of Labor Statistics . P = The amount of adjustment to the Tipping Fee for the new twelve ( 1.2 ) month period. 11 . All "net percentage charges" , as that phrase is used above, are to be computed a: the difference between the applicable index values for the month of September immediately prior to the current Rate Adjustment Date and for the month of September immediately prior to the last Rate Adjustment Date (September 1992 in the case of the first adjustment hereunder ) , divided by the index value for the month of September immediately prior to the last Rate Adjustment Date . Contractor shall notify City in writing of any adjustment under this Section at the earliest practicable time. On the next billing date after the receipt- of Contractor ' s statement showing adjustment under this Section, City shall pay to Contractor or Contractor_ shall credit to City, as the case may be, a lump sum equal to any increase or decrease applicable to that period which has elapsed during which the new Tipping Fee is effective. Thereafter , the Tipping Fee charged by Contractor shall not be modified to reflect any change under this Section until a subsequent adjustment statement is received by City. Adjustment to the Tipping Fee will only be made in units of one cent ($0.01 ) . Fractions less than one cent ($0 . 01 ) will not be consic' -red in making adjustment . Should the indices named in this Section not be published for September of any given year , the calculations shall be performed using the index value as published for the last month immediately preceding the September in question (ot , in the case of a quarterly published index, the index value for the quarter including the September in question ) . Should the indices named in this Section be discontinued , successor indices shall replace same . Successor indices shall be those indices which are most closely equivalent to the discontinued indices as recommended by the publishing agency. 12 . 5 . 4 Payment 5 . 4 . 1 Monthly Invoice and Repert On or before the tenth ( loth) day of each month, Contractor shall submit to City an invoice for the preceding month. Said invoice shall state the Tipping Fee and other charges then in effect and the amount due for the invoice month calculated in accordance with the provisions of this Agreement . At the time Contractor submits the monthly invoice, Contractor shall also submit to City a report stating, for each Designated Hauler , the information in substantially the form of the sample report form attached hereto as Exhibit "C" and made a part hereof . 5 . 4 .2 Time of City' s Payment City shall review the monthly invoice and the monthly report received from Contractor . City shall have ten ( 10 ) working days from receipt of the report to request reasonable additional information regarding the report . Such request shall be in writing and shall specify the information requested. Contractor shall have ten ( 10 ) working days from the date of the request to supply to City the requested additional information. City shall remit payment to contractor with thirty ( 30 ) days of receipt of the requested information, or , if no additional information is requested, within thirty ( 30) days of receipt of the invoice and report . 13 . 5 . 5 Full Pavment Contractor hereby agrees to accept payments from City as described above as full compensation for services rendered under this Agreement . 5 .6 Additional Governmental Charges In the event that any governmental agency imposes upon the Contractor any additional regulations which result in additional expenses, charges , fees, or taxes to the Contractor , and which relate specifically to the conversion of City' s Yardwaste into compost and other usable materials, such expenses, charges, fees , or taxes shall be added to the Tipping Fee on a prorata basis, based on the percentage that the total tonnage of Yardwaste delivered to the Processing Facility pursuant to this Agreement bears to the total tonnage of Yardwaste delivered to the Processing Facility from all sources . SECTION 6 . ASSURANCE OF PERFORMANCE 6 . 1 Force Majeure 6 . 1 . 1 Events Resultir.a in Force Majeure The obligations of City and Contractor are subject to riots , wars, civil disturbance;, insurrections, acts of terrorism at the Processing Facility, epidemics, landslides, hurricanes, earthquakes, lightning, floods, washouts, explosions, fires, acts of God, government orders and regulations and other similar catastrophic events which are beyond the reasonable control of City or Contractor, as the case may be. 14 . It i-- specifically understood that "other similar catastrophic events" does not include, among other things, strikes, lockouts , other labor disturbances or breakage or accidents to machinery, equipment or plants . 6 . 1 .2 Suspension, of Obligations In the event either party is rendered unable, wholly or in part, by the occurrence of any event described in subsection 6 .1 . 1 to carry out any of its obligations , then the obligations of such party, to the extent affected by such occurrence and to the extent that due diligence is being used to resume performance at the earliest practicable time, shall be suspended during the continuance of any inability so caused but for no longer. period . Any time that such a party intends to rely upon the occurrence of an event described in subsection 6 . 1 . 1 to suspend obligations as provided in this Section 6 , such party shall notify the other party as soon as reasonably possible, setting forth the particulars of the situation . Notice shall again be given when the effect of the occurrence of such event has ceased. 6 . 1 . 3 Alternative Disposal Arrangements In the event that Contractor fails or is unable to accept any Yardwaste which it is obligated to accept and process under t-he terms of this Agreement because of any event other than described in subsection 6 .1 . 1 whose occurrence materially and adversely affects Contractor ' s ability to accept and process such Yardwaste at the Processing Facility, 15 . Contractor shall transport such Yardwaste to an alternate processing facility selected by Contractor at no additional cost to City for hauling/processing or in the alternative, at Contractor 's option, shall reimburse City for any and all extra costs incurred by City for hauling/processing, over and above the Tipping Fee, to use such other location . Where City hauls or arranges for hauling of said waste, it is understood that these costs may include costs incurred by the City which are payable by it to Designated Haulers for using an alternate site. 6 .2 Insurance Requirements Contractor shall obtain and shall maintain throughout the term of this Agreement at least the minimum insurance policies , with at least the required coverage limits and endorsements, as is set forth in Exhibit "D" , entitled "INSURANCE REQUIREMENTS" , attached hereto and made a part hereof . Within ( 30 ) days of the effective date of this Agreement , Contractor shall submit proof of the aforesaid coverage in the form of Certificates of Insurance, with copies of all required endorsements attached thereto, to City. 6 . 3 Hold Harmless and Indemnification 6 . 3 . 1 By Contractor Contractor agrees to protect , defend , hold harmless and indemnify City, its Council , officers, employees, and agents from and against any and all liability, including but not limited to, contractual liability, losses, penalties, claims, demands, damages to property ( real and/or personal ) , environmental contamination, including attorneys fees, and personal injury to or death of any person or persons, and all expenses resulting from any claim or cause of action of any nature, 16 . including clean up or remedial action sought by private or governmental parties, occurring by reason of : ( i ) Contractor 's sole negligence; ( ii ) Contractor ' s comparative share of the joint negligence of the parties; ( iiiMo ntractor ' s breach of this Agreement ; or ( iv) Contractor 's operation of the Processing Facility. 6 .3 .2 By City City agrees to protect, defend, hold harmless and indemnify Contractor and its affiliated corporations, and their officers, employees, partners and shareholders, directors and agents from and against any and all liability, including but not limited to, contractual liability, losses, penalties, claims, demands , damages to property ( real and/or personal ) , environmental contamination, including attorneys fees, and personal injury to or death of any person or persons, and all expenses resulting from any claim or cause of action of any nature, including clean up or remedial action sought by private or governmental parties, occurring by reason of: M City ' s sole negligence; ( ii ) City's comparative share of the joint negligence of the parties; 17 . (iii) City's breach of this Agreement; or (iv) Delivery by City of materials or substances to the Processing Facility which are Contaminated Yardwaste or Hazardous Material. This provision applies only to such material as is shown to have originated in Cupertino and is further subject to Section 2.2. 6 .3 . 3 Negligence Defined For purposes of Sections 6 . 3 .1 and 6 . 3 .2 , "negligence" shall be deemed to include both negligent acts and errors and omissions, and the negligence of a party shall include the negligence of its respective officers, employees or agents ( including subcontractors ) . 6 .3 .4 Notice and Access The party claiming a right to indemnity shall: ( i ) give written notice thereof within a reasonable period following the earlier of actual or constructive notice of the event or occurrence as to which the right to indemnification is or may be asserted, provided, that any delay in or failure to give such notice shall not alter any obligation of indemnity herein, except to the extent the indemnifying party is materially prejudiced thereby; and 18. ( ii ) allow the other party ( including their employees, agents and counsel ) reasonable access to any of its employees, property and records reasonably related to the matter giving rise to the claim for indemnification (excluding records protected by the privilege applicable to communications between attorney and client and the work product of attorneys) for the purpose of conducting an investigation of such claim and taking such other steps as may be necessary to preserve evidence of the occurrence on which the claim is based. 6 . 3 . 5 Insurance Coverage Provision of the insurance coverages set forth in Section 6 .2 does not relieve Contractor or its subcontractor from liability under the above hold harmless/indemnification clause. 6 . 3 .6 Survival The indemnities contained in this Section 6 shall survive expiration or termination of this Agreement . SECTION 7 . GENERAL PROVISIONS 7 .1 Independent Contractor It is expressly understood and agreed that Contractor shall perform all work and services described herein as an independent contractor and not as an officer , agent, servant or employee of City; 19 . that Contractor small have exclusive control of ana the exclusive right to �-cn� 1 the details of the services and work performed hereunder and all persons performing the same ; that Contractor shall be solely responsible for the acts and omissions of its officers, agents, employees, contractors and subcontractors, if any; and that nothing herein shall be construed as creating a partnership or joint venture between City and Contractor . No person performing any of the work or services described hereunder shall be considered an officer , agent, servant or employee of City, nor shall any such person be entitled to any benefits available or granted to employees of City. 7 .2 City Warranty City warrants to -Contractor that ( i ) City has full power in accordance with applicable law to enter into this Agreement ; ( ii ) the entering into this Agreement will not constitute a violation or breach by City (a ) of any contract or other instrument to which the City is a party, ( b) of any judgement , order , writ, injunction or decree issued against or imposed upon City, or (c ) that will result, to the actual knowledge of the City, in a violation of any applicable law, order, rule or regulation of any governmental authority; and 20 . ( iii ) this Agreement constitutes a valid and indir.g obligation of City in accordance with its terms, including, without limitation, for the full period of the term of this Agreement notwithstanding the future change of electea or appointed City officials or the City' s failure to budget and appropriate sufficient funds for this Agreement . 7 .3 Venue The parties agree that should any action, whether real or asserted, at law or in equity, arise out of the terms and conditions of this Agreement , venue for said action shall be in Santa Clara County, California . 7 . 4 Savings Clause If any nonmaterial provision of this Agreement shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this Agreement and this Agreement shall be enforced as if such invalid and unenforceable provision had not been contained herein. 7 . 5 Section Headings The Section and paragraph headings contained herein and the table cf contents attached hereto are for convenience in reference and are not intended to define or limit the scope of any provision of this Agreement . 21. e ' 1 .6 Anendment This Agreement may be amended only by written agreement duly authorized and executed by the parties hereto . 7 . 7 Assignability This Agreement is assignable with the written consent of both parties and shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, successors in interest, and assigns . Such consent shall not be withheld unreasonably, nor shall such consent be required in the event of any of the following : ( i ) an assignment by operation of law or ( ii ) an assignment to a subsidiary of Contractor . 7 . 8 Notices Notices by either party to this Agreement to the other party shall be deemed given if personally served or if sent by express mail or deposited in the United States Mail as certified mail , return receipt requested, postage prepaid, addressed to the other party as designated below, or to such other place designated in writing . Such notice shall be deemed effective on the date personally served or when actually received . Notice that a party intends to rely upon the occurrence of an event described in subsection 6 . 1 . 1 hereof to suspend obligations under this Agreement may be given verbally; provided that written notice is provided immediately following such verbal notification. To City: City Manager 10300 Torre Avenue Cupertino, CA 95014 22 . To Contractor : Zanker Road Resource Management, Ltd. 625 Charles Street San Jose, CA 95112 7 . 3 Waiver_ A waiver of any breach of any provision of this Agreement shall not constitute or operate as a waiver of any other breach of such provision or of any other provision, nor shall any failure to enforce any provision hereof operate as a waiver of such provision or of any other provision. 7 . 10 Law to Govern It is understood and agreed by the parties that the law of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this Agreement and shall govern the interpretation of this Agreement. 7 . 11 Attorney ' s Fees In the event 1Pgal action is instituted to enforce this Agreement the prevailing party shall be entitled to reasonable attorneys ' fees and actual costs incurred in connection with such action. 7 .12 Entirety The parties agree that this Agreement represents the full and entire agreement between the parties to this Agreement with respect to matters covered herein. 23 . THE PARTIES TO THIS AGREEMENT hereby indicate their acknowledgment and acceptance of the terms and conditions stated herein by the following signatures of their duly authorized representatives . APPROVED AS TO FORM AND CITY OF CUPERTINO, CALIFORNIA, LEGALITY: a municipal corporation, By: Charles Kilian By: Nick Szabo ' Name Name. A r Title. City Attorney TitlLI/ y r 10300 Torre Avenue ATTEST: Cupertino, California 95014 BY:,� t 'City, Name: Roberta Wolfe Title: City Clerk It Alec Zanker Road Resource Management, Ltd. , a California Limited Partnership Zanker Road Resource Recovery, Inc. , a California corporation, general partner Name: w=f _ Title: President 625 Charles Street San Jose, CA 95112 ATTEST: By: �v �r 'Contractor' Name: Title: — G 24 . EXHIBIT "A" UNINCORPORATED GEOGRAPHIC AREA OF SANTA CLARA COUNTY INCLUDED WITHIN DEFINITION OF CITY See Attached Map �,_!: ti ��r�44U?, _"�•• S I l � � �(3i�::L II� ��'� 'i..rt ,I �f�1 I 8' JFJ ;�19W t r:i l ii,.�d T (may Fr i{ F It" _ c.,, �.• . i �F�'.� �y.. �('� ��} ,l ` i� o �_ �'ti� �. t { ily...�_, � In*"ljssr-�i .S r Lo n/r �1 '�0. � J(Y'c• CtCtttiYYKjR•��� +a. ml _ ) {� '� ' 1 t • } ��� ��. �� -) • �� � l r,,� �1 I �1' fir, ±!f 'I: I '\ r\ ("., A,,�► J�, n I ILA[ EXHIBIT A CUPERTINO BOUNDARY MAP ` AGREEMENT FOR PROCESSING OF YARDWASTE INTO COMPOST, ZANKER ROAD RESOURCE MANAGEMENT, LTD. AND CITY OF CUPERTINO 4 i EXHIBIT "B" EQUIVALENT WEIGHT OF YARDWASTE Typc of. Vehicle/Container Ton Equivalent Per Cubic Yard 1 . Compacted Yardwaste a . Front Loader or Side Loader Vehicle . 375 Ton/Cubic Yard b. Rear Loader Vehicle . 375 Ton/Cubic Yard 2 . Debris Box ( Loose Yardwaste) . 10 Ton/Cubic Yard a 3y�t1 —✓"Noy J S 1 '�`4a� yso') 3y�N so Son SO EXt?IBIS "U° INSURANCE REQUIREMENTS A. ( 1 ) An EXTENDED BROAD FORM MINIMUM COMPPEHENSIVE GENERAL LIABILITY INSURANCE POLICY covering Bodily Injury and Property Damage with a combined singie limit of at least Two Million Dollars ( $2 ,000 ,000 ) per occurrence providing the following coverages : (a ) Premises Operations (b) Independent Contractors ( c) Contractual Liability ( for liability of others assumed by the Subcontractor in the contract between the Subcontractor and Contractor ) . ( d) Property Damage Liability arising out of the 'XCU' hazards ( explosion, collapse and underground damage ) . (e ) Completed Operations - Products ( f ) Broad Form Property Damage Endorsement ( g) Personal Injury Endorsement (2 ) A WORKERS' COMPENSATION AND EMPLOYERS ' LIABILITY POLICY ( if required by State law) written in accordance with the laws of the State of California and providing the following coverages for any and all employees of Contractor : (a ) Statutory workers ' Compensation Coverage A ( statutory limit) . ( b ) Employees ' Liability Insurance -- Coverage B. Not less than: $100 , 000 each accident/BI , $500 , 000 Policy limit BI by disease and $100, 000 each employee BI by disease . ( 3 ) A COMPREHENSIVE VEHICLE POLICY with a minimum combined limit of not less than One Million Dollars ($1, 000,000 ) for bodily injury and property damage, applicable to vehicles used pursuit of any of the activities associatea with this Agreement and providing the following coverages (without deductibles) : (a ) All owned vehicles ( b) Employer ' s Non-ownership Liability (c) Hired vehicles or motorized equipment EXHIBIT "D' (Continued ) ( 4 ) ENDORSEMENTS AND CLAUSES . All of the following clauses and endorsements, of similar provisions, are required to be made a part of each of the above required policies : (a) A 'Cross Liability" or 'Severability of Interest" clause; and ( b) City, its employees, officers, agents and contractors are hereby added as insureds with respect to all exposures or occurrences arising out of Contractor ' s obligations or performance under this Agreement; and (c) This policy shall be considered primary insurance as respects any other valid and collectible insurance City may possess, including any self-insured retention City may have, and any other. insurance City possesses shall be considered excess insurance only; and (d) NO CANCELLATION OR NON-RENEWAL OF THIS POLICY OR MODIFICATION OF THE COVERAGE AFFORDED UNDER THIS ENDORSEMENT SHALL BE EFFECTIVE UNTIL WRITTEN NOTICE HAS BEEN GIVEN AT LEAST THIRTY ( 30 ) DAYS PRIOR TO THE EFFECTIVE DATE OF SUCH MODIFICATION OR CANCELLATION TO THE CITY OF LOS ALTOS, CALIFORNIA. ATTENTION: CITY MANAGER. B. PROOF OF INSURANCE COVERAGE AND COVERAGE VERIFICATION. A copy of the Certificate of Insurance and completed coverage verification shall be provided to City by each of the Contractor ' s insurance companies as evidence of the stipulated coverages within thirty (30 ) days of the effective day of this Agreement . The Certificate(s) of Insurance and coverage verification shall be mailed to City. RESOLUTION NO. 8831. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AUTHORIZING EXECUTION OF AGREEMENT BETWEEN ZANKER ROAD RESOURCE MANAGEMENT, LTD. AND THE CITY OF CUPERTINO PROVIDING FOR THE PROCESSING OF YARD WASTE INTO COMPOST WHEREAS, there has been presented to the City Council a proposed agreement between Zanker Road Resource Management, Ltd. and the City of Cupertino providing for the processing of yard waste into compo-st; and WHEREAS, the provisions, tc, ms and coiaditions of said agreement have been reviewed and approved by the Director of Public Works and the City Attorney; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino hereby approves the aforementioned agreement and authorizes the Mayor and the City Clerk to execute said agreement on behalf of the City of Cupertino. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 16th day of y February , 1993 by the following vote: Vote Members of the City Council AYES: Dean, Goldman, Koppel, Sorensen, Szabo NOES: None etfE t. 7❑ CERTIFY -'rt,;,'i" ^t :'/iTNIN id i'(idUNIENT ISA'TRuE A.ND CORRECT COPY ABSENT: None OF THE ORMINAI_ ON TILL IN THIS OFFICE. ATTEST ABSTAIN: None CITY CLCR [3F- THE CITY OF CLIPERT NO BY *U Y ATTEST: APPROVED: /s/ Dorothy Cornelius /s/ Nick Szabo City Clerk Mayor, City of Cupertino 705 Los Esteros Road San Jose, CA 95134 n e r Phone: 408-263-2385 Road Landfill Fax: 408-263-2393 March 10, 1993 City of Cupertino 10300 Torre Avenue Cupertino, Ca.95014 Attention: Dorothy Cornelius, City Clerk Department of Public' Works Agreement between the City of Cupertino and Zanker Road Resource Management Limited. Enclosed please find one ( 1 ) signed copy of the Agreement by and between the City of Cupertino and Zanker Road REsource Management Limited which has been fully executed. Sincerely, 4�-r r Hazel Rundquist Enc. printed can reeve ec paper. 4 Out of Cie perti"o 10300 Torre Avenue Cupertino.CA 95014-3255 Telephone:1408)252-4505 FAX:(408)252-0753 DEPARTMENT OF THE CITY CLERK March 2, 1993 Rich Cristina Christina and Hall 625 Charles Street San Jose, CA 95112 AGREEMENT BETWEEN THE CITY OF CUPERTINO AND ZANKER ROAD RESOURCE MANAGEMENT, LTD. We are enclosing to you two (2) copies of the Agreement by and between the City of Cupertino and Zanker Road Resource Management, Ltd. , which has been fully executed by City Officials, along with two (2) certified copies of Resolution No. 8831, which was enacted by the City Council of the City of Cupertino, at their regular meeting of Tuesday, February 16, 1993. Would you please after completion by Zanker return one (1) copy to this office. Thank you for your cooperation. Sincerely, or DOROTHY CORNELIUS CITY CLERK CITY OF CUPERTINO DC/so encl. cc: Department of Public Works RIESOL.UTION NO. 8831 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AUTHORIZING EXECUTION OF AGREEMENT BETWEEN ZANKER ROAD RESOURCE MANAGEMENT, LTD. AND THE CITY OF CUPERTINO PROVIDING FOR THE PROCESSING OF YARD WASTE INTO COMPOST WHEREAS, there has been presented to the City Council a proposed agreement between Zanker Road Resource Management, Ltd. and the City of Cupertino providing for the processing of yard waste into compost; and WHEREAS, the provisions, terns and conditions of said agreement have been reviewed and approved by the Director of Public Works and the City Attorney; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino hereby approves the aforementioned agreement and authorizes the Mayor and the City Clerk to execute said agreement on behalf of the City of Cupertino. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 16th day of February , 1993 by the following vote: Vote Memh;;rs of the City Council AYES: Dean, Goldman, Koppel, Sorensen, Szabo NOES: None ABSENT: None ABSTAIN: None ATTEST: APPROVED: Lt�( �Q,V City Clerk Mayor,City of Cupertino v CITY OF CU'PER•s INO INTERDEPARTMENTAL Date FEBRUARY 18, 1993 To CITY CLERK From PUBLIC WORKS--SUMI Q Information MESSAGE: AGREEMENT FOR PROCESSING OF YARDWASTE INTO COMPOST 0 Implement ZANKER ROAD RESOURCE MANAGEMENT, LTD. (CC 2116193_ 0 Investigate LJ Discuss TRANSMITTED ARE TWO SETS OF A R EHM WHICH RF4UIRE ENE UJION U See me BY BOTH CUPERTINO AND ZANKER. AFTER ACTION BY CITY, FORWARD CJ Reply BOTH COPIES TO ZANKER FOR ITS ACTION: AFTER WHICH A FULLY EXECUTED COPY WILL BE RETURNED TO THE rITY. CONTACT PERSON FOR ZANKER IS: RICH CRISTINA CRISTINA AND HALL 625 C:HARi FS STRFFT Reply• SAN JOSE CA 95112 am _ attach. SIGNED: DATE Forward part 1 Retain part 2 Y