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ORD 1493 05/18/2025 Waste ConnectionORDINANCE NO. %y 93 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CIBOLO, TEXAS, AMENDING ORDINANCE 1134 AND GRANTING WASTE CONNECTIONS OF TEXAS, LLC, DBA VAQUERO, AN EXCLUSIVE FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS IN THE CITY OF CIBOLO ,TEXAS; PRESCRIBING THE TERMS, CONDITIONS, FEES, OBLIGATIONS, AND LIMITATIONS TO OCCUPY PUBLIC PROPERTY WHICH SUCH FRANCHISE SHALL BE EXERCISED; AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT, PROVIDING A SEVERABILITY AND REPEALER CLAUSE, AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Cibolo, Texas, is a Home Rule Municipality located in Guadalupe County, Texas, created in accordance with provisions of the Texas Local Government Code and operating pursuant to its adopted City Charter and all applicable laws and enabling legislation of the State of Texas; and WHEREAS, Texas Health and Safety Code Chapters 361and 363 provides for the regulation and disposal of municipal solid waste and authorizes a municipality to contract for the operation of a solid waste management system to ensure public health, safety, and welfare; and, WHEREAS, the City of Cibolo, Texas, is governed by a Home Rule Charter that was approved by the Citizens of Cibolo in a duly called election held on September 11, 2024; and WHEREAS, the City of Cibolo, Texas, Section 10.01 of the Home Rule Charter authorizes the City Council to establish franchises for public services and utilities and Section 10.02 permits franchises to be granted by ordinance for a term of up to ten (10) years from the date of the grant, renewal, or extension; and WHEREAS, in 2017, Republic Services acquired Bexar Waste and assumed the remainder of the ten-year franchise agreement awarded to Bexar Waste on July 28, 2015, by Ordinance 1134 and assigned to Republic Services (aka BFI Waste) on June 27, 2017, by motion, expiring on July 28, 2025; and, WHEREAS, the rates and service options specific by Ordinance 1134 expire on July 28, 2025; and WHEREAS, the City determined that it was in the best interests of the City and its citizens to solicit proposals for the award of a new franchise agreement for the collection, transportation, and disposal of Municipal Solid Waste and Recyclable Materials within the corporate limits in order to ensure the public health, safety, and welfare; and, WHEREAS, on May 13, 2025, the City Council conducted a public meeting to consider the matter; and, WHEREAS, having completed the competitive proposal process, the City has determined that it is in the best interest of the City and its citizens and to promote public health, safety and general welfare to award a franchise agreement to Waste Connections of Texas, LLC. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CIBOLO, TEXAS, THAT: Section 1. Incorporation. That the recitals contained in the preamble hereto are hereby found to be true and such recitals are hereby made a part of this ordinance for all purposes and are adopted as part of the judgment and findings of the City Council. Section 2. Ordinance Provisions. The Exclusive Franchise Agreement for the Collection, Transportation, and Disposal of Municipal Solid Waste and Recyclable Materials in the City of Cibolo, Texas (hereinafter the "Agreement"), attached hereto, upon execution, as Exhibit A and incorporated herein for all purposes is hereby approved; and the City Manager is hereby authorized, on behalf of the City, to execute the Agreement and any other ancillary instruments and documents as may be reasonably necessary to effectuate the intent of this Ordinance. Section 3. Cumulative Clause. This Ordinance shall be cumulative of all provisions of ordinances of the City of Cibolo, Texas, except where the provisions of the Ordinance are in direct conflict with the provisions such ordinances, in which event the conflicting provisions of such ordinances are hereby repealed. Any renumbering shall be made as necessary in the City's Code of Ordinances as necessary. Section 4. Severability. It is hereby declared to be the intention of the City Council that the phrases, clauses, sentences, paragraphs, and sections of this Ordinance are severable, and if any phrase, clause sentence, paragraph or section of this Ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this Ordinance, since the same would have been enacted by the City Council without the incorporation in this Ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. Section 5. Public Meeting. That it is officially found, determined and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code. Section 6. Effective Date. This ordinance shall take effect immediately from and after its passage and any publication requirements. PASSED, APPROVED and ADOPTED ON this /3day of 2025. ATTEST: Peggy Cimics, City Secretary CITY OF CIBOLO, TEXAS Mark Allen, Mayor Exhibit "A" Exclusive Franchise Agreement for the Collection, Transportation and Disposal of Municipal Solid Waste and Recyclable Materials in the City of Cibolo, Texas MUNICPAL SOLID WASTE AND RECYCLABLE MATERIALS COLLECTION, TRANSPORTATION, AND DISPOSAL FRANCHISE AGREEMENT (Residential, Commercial, and Industrial Customers) This Exclusive Franchise Agreement for the Collection, Transportation, and Disposal of Municipal Solid Waste and Recyclable Materials ("Agreement"), is entered as of the Effective Date by and between the City of Cibolo (hereinafter called "C"), a Texas home rule municipality, and Waste Connections of Texas (hereinafter called "Contractor"), a Texas corporation, acting by and through their duly qualified representatives. (City and Contractor collectively referred to herein as "Parties" and individually as "Party.") RECITALS WHEREAS, City has found and determined that the public health and safety of the City will be promoted and preserved by establishing an arrangement for the collection, transportation, and disposal of Municipal Solid Waste and Recyclable Materials kept and accumulated by residential commercial (non-residential) developments; and WHEREAS, Contractor is engaged in the business of collection, transportation, and disposal of Municipal Solid Waste and Recyclable Materials and is familiar with City's requirements and its Solid Waste and Recycling services; and WHEREAS, City has determined Contractor to be qualified to provide Municipal Solid Waste and Recyclable Materials collection, transportation, and disposal service upon the terms and conditions and for the consideration set forth in this Agreement; and WHEREAS, City has determined through a competitive process in accordance with State law that the Contractor provides the best value for Municipal Solid Waste and Recycling services for City's residents and businesses; and WHEREAS, City desires to grant to Contractor the exclusive right to operate and maintain the service of collection, transportation, and disposal of residential and commercial Municipal Solid Waste and Recyclable Materials, over, upon, along, and across City's present and future streets, alleys, bridges, and public properties subject to the terms of this Agreement; and WHEREAS, Contractor desires to operate and maintain the service of collection, transportation, and disposal of residential and commercial Municipal Solid Waste and Recycling Material, over, upon, along, and across City's present and future streets, alleys, bridges, and public properties subject to the terms of this Agreement; and WHEREAS, Contractor has agreed to reimburse City for the development of the RFP 25- 502-12 and other Agreement Documents in accordance with Section 8.1(f) of this Agreement; and NOW, THEREFORE, for and in consideration of the mutual covenants, promises, and undertakings herein contained and other good and valuable consideration, the receipt and FRANCinSE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS sufficiency of which are hereby acknowledged and confessed, the Parties agree as follows: I. GRANT OF CONTRACT AND FRANCHISE; TERM 1.1 Grant of Agreement and Franchise. To the extent allowed by law, City hereby grants to Contractor: (a) The sole right, duty, and privilege within City's incorporated limits to conduct business for the purpose of collection, transportation, and disposal of Municipal Solid Waste Materials, Construction and Demolition Debris, and Recyclable Materials during the Term of this Agreement from all Residential, Commercial, and Industrial Customers located within City's incorporated limits; and (b) The sole right, duty, and privilege to collect Municipal Solid Waste and Recyclable Materials during the Term of this Agreement from all Municipal Facilities. 1.2 Initial Term. The Initial Term of this Agreement shall commence on July 28, 2025 (the "Commencement Date") and shall end on July 27, 2030, at 23:59 hours (the "Expiration Date"), unless otherwise terminated earlier or extended as provided herein. 1.3 Extension Term. City may extend the Initial Term for one (1) additional five (5) year term beginning July 28, 2030, upon the same terms and conditions set forth in this Agreement. Notice of the extension of the Term of this Agreement for the Extension Term must be delivered in writing by City to Contractor between July 28, 2029, and August 30, 2029. Notwithstanding anything regarding City's exercise of the Extension Term, the Parties agree that City may, at any time prior to or after the expiration of the Initial Term and, if applicable, the Extension Term, solicit bids or proposals for contracting for the collection, transportation, and disposal of Municipal Solid Waste, Construction, and Demolition Debris, and Recyclable Materials or such other services provided for herein for a period commencing after the Expiration Date, as originally established and/or extended by the Extension Term, if applicable. [This Area Intentionally Left Blank] Page 2 of 47 FRANCHISE AGREEMENT FOR THE "COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLo, TEXAS II. DEFINITIONS The words and phrases used in this Agreement shall have the following meanings unless the context indicates a different meaning: "Agreement Administrator" means City's City Manager or the City Manager's designee responsible for actively interacting with Contractor to achieve this Agreement's objectives; monitoring this Agreement to ensure Contractor compliance; receiving and maintaining Contractor reports; addressing Agreement related problems on behalf of City; incorporating necessary modifications or changes into this Agreement; mediating and expediting timely resolution of customer/Contractor issues, and other duties necessary to implement this Agreement. "Agreement Documents" means, collectively, (a) this Agreement, all Exhibits attached hereto, and any amendments to this Agreement; (b) the RFP #25-502-12, and (c) Contractor's Proposal, including Best and Final Offer. "Agreement Year" means each twelve-month period during the Term of this Agreement beginning on August 1st "Bag" means a plastic sack designed to store refuse with sufficient wall strength to maintain physical integrity when lifted by the top. "Brown Kraft Bag" means a heavy brown paper bag with a capacity of approximately 30 gallons used for disposal of Yard Waste. "Brush" means any cuttings or trimmings from trees, shrubs, lawns, and similar materials not exceeding four (4) feet in length or four inches (4") in diameter. The term 'Brush" specifically excludes debris resulting from the services of a Commercial Service Provider. "Bulky Waste" means large rubbish items including, but not limited to, White Goods, bicycles, furniture, rugs, mattresses, televisions, fence material, auto parts, and other similar oversized items which are customary to ordinary housekeeping operations of a Residential Unit. "Business Day" means a day that is not a Saturday, Sunday, or Holiday. "City" The City of Cibolo, Texas. "City Facility" means a property owned, leased, and/or operated by City. "Collection" means the act of removing from a Customer's property (i) Waste in any form for transport to a Disposal Facility, (ii) Recyclables for transport to a Recycling Facility, and/or (iii) Composting Materials for transport to a Composting Facility, if composting is included in the scope of services. "Collection Area" means that portion of City's corporate limits in which Contractor provides collection services as described in the Agreement Documents. "Commercial Unit" means a commercial business or establishment, including, but not limited Page 3 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS to, a store, office, restaurant, warehouse, and other nonmanufacturing facility, premises, location, or entity, public or private, within City's corporate limits. "Commercial Waste" means all types of Solid Waste generated by Commercial Units, excluding Residential Waste and Industrial Waste. "Commercial Service Provider" means a person or business entity that provides for compensation tree limb cutting and removal, or complete tree and stump removal services. "Compactor Unit" means a mechanical unit that receives, compacts, and reduces the volume of municipal waste, refuse, or garbage, whether stationary or mobile. "Construction and Demolition Debris" means non -compatible waste building materials resulting from construction, remodeling, repair, or demolition operations at a Residential Unit, Municipal Facility, or large commercial and industrial unit, including but not limited to carpet, cartons, concrete, excelsior, gypsum board, metal, paper, plastic, rubber, and wood products. Construction debris does not include Hazardous Waste. "CPI" means the Consumer Price Index, U.S. City Average, All Urban Consumers, Garbage and Trash Collection, Not Seasonally Adjusted. Base Period December 1983=100), https:Ilwww.bls..zovinews.releaselepi.tO2.htin published by the United States Department of Labor, Bureau of Labor Statistics ("BLS"); or, if the BLS ceases to publish the CPI, such other index the Parties agree provides an equally authoritative measure of inflation and the change in the purchasing power of the U.S. dollar as it relates to the provision of solid waste collection services in the United States. "Container" means a receptacle with a capacity of at least 18 gallons but not greater than 96 gallons, constructed of plastic, metal, or fiberglass, having handles of adequate strength for lifting, the mouth of which has a diameter greater than or equal to that of the base. "Contractor's Proposal" means Contractor's response to the RFP 25-502-12released by City on February 19, 2025, and submitted March 20, 2025, , the original of which is retained in the office of City's City Secretary in hardbound or electronic format and is incorporated herein by reference. "Curbside" means (i) in the case of a street or highway with a defined asphalt or concrete curb establishing a vertical boundary separation between a roadway and an adjacent lot or tract, the area within three (3) feet of the curb that provides primary access to the Unit as designated by City; and (ii) in the case of a street or highway that is not constructed with a curb, the area within three (3) feet of the edge of the paved area of the street or highway that provides primary access to the Unit as designated by City; and (iii) with respect to a Unit where the placement of Waste for collection at defined in (i) or (ii), whichever is applicable, interferes with or endangers the movement of vehicles or pedestrians, such other place as close to the Unit's adjacent roadway as approved by the Agreement Administrator. "Customer" means the owner or tenant of a Unit located within City and identified by City as being eligible for and in need of the services provided by Contractor under this Agreement. Page 4 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CM OF CIBOLO. TEXAS "Detachable Container" (also referred to as "dumpster") means a watertight, all -metal container, equipped with a tight -fitting metal or plastic cover, and plugged to prevent drainage of leachate. The term shall also apply to containers of larger sizes (i.e., "roll -offs"). "Disposal Facility" means a Class 1 Municipal Solid Waste landfill permitted by the TCEQ identified in Contractor's response to the RFP or such other permitted Class 1 Municipal Solid Waste landfill as may be approved by City during the tern of this Agreement, which approval shall not be unreasonably withheld, delayed, or denied. "Disaster Event" means an event or occurrence, including, but not limited to, wildfires, storms, floods, fires, tornados, earthquakes, train derailments, airplane crashes, and similar events determined by the City Manager to have caused widespread damage and destruction to personal property. "Disaster Debris" means Waste Materials, including building materials, sediments, vegetative debris, personal property, and other materials resulting from a Disaster Event that are generated by anyone affected by a Disaster Event. "Emergency and Disaster Management Plan" means The Contractor's operational policies and procedures that will be implemented to collect, remove and properly dispose of Disaster Debris when an event or occurrence is determined by City to be a Disaster Event or an Emergency Event, and when Contractor is selected to provide such additional services as those with rates in in Exhibit A. "Disposal" means the disposition, injection, dumping, spilling, leaking, or placing of Solid Waste into or on the land or water in a manner that the Solid Waste or a constituent of the Solid Waste enters the environment, is emitted into the air, or is discharged to the waters of the State of Texas. "Excluded Waste" means Large Dead Animals, Hazardous Waste, Offal Waste, Stable Matter, Vegetable Waste, Construction and Demolition Debris, Special Waste, and other types of Waste expressly excluded from this Agreement. "Food Waste" means vegetable and other food scraps, including meat, dairy products, grease, and bones; paper which has been contaminated with food, fat or grease; and compostable paper including paper towels, paper plates, tissue, and waxed paper. "Garbage" means Municipal Solid Waste (MSW) consisting of putrescible or animal and vegetable waste materials resulting from the handling, preparation, cooking, and consumption of food, including waste materials from markets, storage facilities, handling and sale of produce and other food products, and all Dead Animals of less than ten pounds (10 lbs.) in weight, except those slaughtered for human consumption. "Generator" means a person or municipality that produces or creates Municipal Solid Waste. "Hazardous Waste" means any Solid Waste identified or listed as hazardous waste by the administrator of the Environmental Protection Agency under the Federal Solid Waste Disposal Act as amended by RCRA, (42 U.S.C. 56901, et, seq., as amended). Page 5 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIDOLO. TEXAS "Holiday" means New Year's Day, Thanksgiving Day, and Christmas Day. "Household Hazardous Waste" or "HHW" means items that have been segregated from residential garbage and are designated as hazardous by the United States Environmental Protection Agency or the State of Texas and shall include, but not be limited to, outdoor insecticides and fertilizers, automotive products, household insecticides and maintenance chemicals, paint products and other items including electronics, small batteries, vehicle batteries, and lamps. "Industrial Unit" means an industrial business or establishment, including manufacturing facilities, premises, locations, or entities, public or private, within the corporate limits of City. "Industrial Waste" means Solid Waste resulting from or incidental to any process of industry or manufacturing, mining, or agricultural operations. "Large Dead Animals" means animals or portions thereof equal to or greater than 10 pounds in weight that have expired from any cause, except those slaughtered or killed for human use. "Medical Waste" means Waste generated by healthcare -related facilities and associated with healthcare activities, not including Garbage or Rubbish generated from offices, kitchens, or other non -health-care activities. The term includes Special Waste from health care -related facilities which is comprised of animal waste, bulk blood, and blood products, microbiological waste, pathological waste, and sharps as those terms are defined in 25 TAC §1.132 (relating to Definitions). "Municipal Solid Waste (MSW): means wastes consisting of everyday items such as product packaging, grass clippings, furniture, clothing, bottles and cans, food scraps, newspapers, appliances, consumer electronics, and batteries. These wastes come from homes; institutions such as schools and hospitals; and commercial sources such as restaurants and small businesses. Municipal Solid Waste does not include municipal wastewater treatment sludges, industrial process wastes, automobile bodies, combustion ash, or construction and demolition debris. The term does not include source -separated recyclable materials. "Non-Recyclables" means any materials in the Single Stream Materials or Recyclables that are not Recyclables. "Offal Waste" means waste animal (land or marine) matter from establishments such as butcher shops, slaughterhouses, food processing, and packing plants, rendering plants, and fertilizer plants. "Overage": As to Residential Units, any Waste, Recyclables, Brush or Bulky Waste placed curbside for collection above the volumes permitted by this Agreement that the Customer has not requested the Contractor collect for a fee as an Unusual Accumulation, and as to Commercial Units, any Waste located outside the Dumpster or equipment regularly used for such waste collection service or more than the applicable weight limits of the Dumpster or equipment. The Contractor shall have the right to take a digital photo of the Overage. Page 6 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID HASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS "Performance Bond" means a corporate surety bond that guarantees compensation to City if it must assume the obligations and/or duties of Contractor to continue the service as defined in the Agreement Documents. "Permit" means a permit issued by the State of Texas to operate a municipal solid waste landfill or processing facility, or to beneficially use municipal waste. The term includes a general permit, permit -by- rule, permit modification, permit reissuance, and permit renewal. "Poly Cart" means a 95 -gallon poly cart plastic container provided by Contractor, clearly marked for MSW or Recycling, equipped with wheels, handles, and a tight -fitting cover, capable of being mechanically unloaded into Contractor's collection vehicles. The terms "Cart" and "Wheeled Container" shall be considered interchangeable. "Processing" means recycling of Single Stream Materials at a properly permitted Recycling Facility. "Recyclable Material" or "Recyclables" means a material that has been recovered or diverted from the non -hazardous waste stream for purposes of reuse, recycling, or reclamation, a substantial portion of which is consistently used in the manufacture of products that may otherwise be produced using raw or virgin materials. Recyclable Material is not Solid Waste. However, Recyclable Material may become Solid Waste at such time, if any, as it is abandoned or disposed of rather than recycled, whereupon it will be Solid Waste, with respect to the party abandoning or disposing of such material. " "Residential Recyclables" include, but are not limited to, juice boxes, glass containers (clear, brown, green), tin -steel cans, paper board, cardboard, magazines, aluminum cans, newspapers, junk mail, phone books, office paper, and plastics all codes (#1 through 47, except for # 6, which is Styrofoam products). "Recycle" or "Recycling" means the collection, separation, recovery, and sale or reuse of metals, glass, paper, leaf waste, or, plastics, and other materials which would otherwise be disposed or processed as municipal waste or the mechanized separation and treatment of municipal waste and creation and recovery of reusable materials other than a fuel for the operation of energy. "Recycling Facility" means a facility employing a technology that is a process that separates or classifies municipal waste and creates or recovers reusable materials that can be sold to or reused by a manufacturer as a substitute for or a supplement to virgin raw materials. The term "Recycling Facility" shall not mean transfer stations, municipal solid waste landfills, composting facilities, or resource recovery facilities. "Refuse" means the same as Rubbish. "Request for Proposal" or "RFP" means City's "Request for Proposals #25-502-12 for Solid Waste and Recycling Services "issued by City on February 19, 2025, a true and correct copy of which is on file in the office of City's City Secretary and incorporated herein by reference. Page 7 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLo. TEXAS "Residential Construction Debris" means waste building materials generated by the homeowner at their residence resulting from construction, remodeling, repair, or demolition operations. The term Residential Construction Debris does not include dirt, concrete, rocks, bricks, roofing shingles, or waste generated as a result of contractor services used for the activities herein described. "Residential Curbside Recycling" means the collection of Recyclable Materials placed at Curbside by Customers residing in Single -Family Structures for collection, the delivery of such materials to a Recycling Facility, and the subsequent recycling of the collected materials. "Residential Unit" means a residential dwelling occupied by a person or group of persons comprising not more than four families. A Residential Unit shall be deemed occupied when either water or domestic light and power services are being supplied to the Residential Unit. Each condominium dwelling, whether of single or multi-level construction, consisting of four units, shall be treated as a separate Residential Unit. "Residential Waste" means all Refuse, Garbage, Rubbish, Brush and Bulky, and other Solid Waste generated by a Customer at a Residential Unit. "Roll -off Container" means a Container provided to a Commercial Unit or Industrial Unit by Contractor measuring 20, 30, or 40 cubic yards, intended for high-volume refuse generating Commercial Units or Industrial Units, and capable of collection and transport to a Municipal Solid Waste Landfill by loading of the Container onto the rear of transporting vehicle, but excluding a Stationary Compactor. "Rubbish" means non-putrescible Solid Waste (excluding ashes), consisting of both combustible and noncombustible waste materials. Combustible rubbish includes paper, rags, cartons, wood, excelsior, furniture, rubber, plastics, yard trimmings, leaves, or similar materials; noncombustible rubbish includes glass, crockery, tin cans, aluminum cans, metal furniture, and similar materials that will not bum at ordinary incinerator temperatures (1,600 degrees Fahrenheit to 1,800 degrees Fahrenheit). "Small Business Garbage Generator" means a commercial business, which generates no more than one (1) cubic yard of Solid Waste per week. "Solid Waste" means Garbage, Rubbish, Refuse, sludge from a wastewater treatment plant, water supply treatment plant, or air pollution control facility, and other discarded material, including solid, liquid, semi- solid, or contained gaseous material resulting from industrial, municipal, commercial, mining, and agricultural operations and from community and institutional activities. The term does not include: a) Solid or dissolved material in domestic sewage, or solid or dissolved material in irrigation return flows, or industrial discharges subject to regulation by permit issued under Texas Water Code, Chapter 26; b) Solid, dirt, rock, sand, and other natural or man-made inert solid materials used to fill land if the object of the fill is to make the land suitable for the construction of surface improvement; c) Waste materials that result from activities associated with the exploration, development, or production of oil or gas or geothermal resources and other substance or material regulated by the Railroad Commission of Texas under Natural Resources Code, §91.101, unless the waste, substance, or material results from activities associated with gasoline plants, natural gas liquids processing plants, pressure maintenance plants, or re - Page 8 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS pressurizing plants and is hazardous waste as defined by the administrator of the EPA under the federal Solid Waste Disposal Act, as amended by RCRA, as amended (42 USC, SS6901 et seq.), or d) Unacceptable Waste. "Special Waste" means Waste that requires special handling and management due to the nature of the waste, including, but not limited to, the following: (A) containerized waste (e.g. a drum, barrel, portable tank, box, pail, etc.), (B) waste transported in a bulk tanker, (C) liquid waste, (D) sludge waste, (E) waste from an industrial process, (F) waste from a pollution control process, (G) Residue and debris from the cleanup of a spill or release of a chemical, or (H) any other waste defined by Texas law, rule or regulation as "Special Waste". "Stable Matter" means all manure and other waste matter normally accumulated in or about a stable, or any animal, livestock, or poultry enclosure, and resulting from the keeping of animals, poultry, or livestock. "Structure" means all single-family homes, multi -family dwellings, and Small Businesses, included in the specifications, and City Facilities that City may at its sole discretion include in this Agreement. "Unacceptable Waste" means any Waste, the acceptance, and handling of which by Contractor would cause a violation of any permit, or any legal or regulatory requirement, substantial damage to Contractor's equipment or facilities, or present a danger to the health or safety of the public or Contractor's employees, including, but not limited to, Hazardous Waste, Special Waste (except as otherwise provided herein), untreated Medical Waste, Dead Animals weighing ten pounds (10 lbs.) or greater, solid or dissolved material in domestic sewage, or solid or dissolved material in irrigation return flows, or industrial discharges subject to regulation by permit, soil, dirt, rock, sand, and other natural or man-made inert solid materials used to fill land if the object of the fill is to make the land suitable for the construction of surface improvements. "Unit" means, collectively, Residential Units, Commercial Units, and Industrial Units. "Unusual Accumulation" means any Residential Unit Waste placed curbside for collection which does not meet the specifications defined by this Agreement for regular garbage, bulky waste, and brush waste. Contractor has the right to take photographic evidence of Unusual Accumulations, and the option to provide for the collection of Unusual Accumulations for a fee after inspection and pricing by Contractor supervision. "Vegetable Waste" means putrescible solid waste resulting from the processing of plants for food by a commercial establishment such as canneries. This definition does not include waste products resulting from the preparation and consumption of food in food service establishments. "Waste" or "Waste Materials" means all Residential Waste, Commercial Waste, and Industrial Waste to be collected by Contractor pursuant to this Agreement. The tern "Waste" specifically excludes Unacceptable Waste. "White Goods" means refrigerators, stoves and ranges, water heaters, clothes washers and dryers, freezers, swing sets, bicycles (without tires) scrap metal, copper, and other similar domestic and commercial large appliances. Page 9 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLo. TEXAS "Yard Waste" means accumulations of lawn, grass, or shrubbery cuttings or clippings, dry leaf takings, small tree branches (not to exceed 4 feet in length, nor 4 inches in diameter), bushes or shrubs, green leaf cuttings, fruits, or other matter usually created by Refuse in the care of lawns and yards, except large branches, trees, bulky or non-combustible materials not susceptible to normal loading and collection in "load packer" type sanitation equipment used for regular collections from domestic households. Notwithstanding the foregoing, all trees, shrubs, and brush trimmings must be stacked, or tied together in a manner to allow an employee to reasonably lift the bundle into the truck, and no such bundle or stack shall exceed forty (40) pounds in weight. 3.1 Base Rates. For the services provided by Contractor pursuant to this Agreement, Contractor is authorized to charge and shall receive from City the rates set forth on Exhibit A attached hereto and incorporated herein by reference (`'Base Rates" ). The Base Rates are subject to adjustment from time to time as provided in Section 3.2., below. 3.2 Modification of Rates. Base Rates charged by Contractor for services will remain fixed and will not be adjusted until August 1, 2026. Commencing on August 1, 2026, and continuing annually on the fust day of each Agreement Year thereafter, Contractor may adjust the Base Rates (each an "Annual Adiustment"), subject to the following: (a) Not later than the later of (i) June I It prior to the effective date of the Annual Adjustment, and (ii) the fifth (5a') business day after publication of the CPI described in Section 3.2(b)(1), below, Contractor must provide City written notice of the new schedule of Base Rates for the immediately following Agreement Year based on the Annual Adjustment, which notice must include a copy of the new Base Rates schedule (the "Adiustment Notice"); (b) Each Annual Adjustment shall not result in an increase in the Base Rates exceeding the lesser of: (1) The percentage increase in the CPI for the twelve-month period ending on the April 30a' immediately prior to the effective date of the Annual Adjustment; and (2) Five Percent (51/o) of the then current Base Rates; (c) If the percentage change in the CPI for the twelve-month period ending on the May 31st before the effective date of the Annual Adjustment would result in a decrease in the Base Rates, the Base Rates shall remain unchanged for the immediately following Agreement Year; (d) If Contractor fails to timely deliver the Adjustment Notice as provided in Section 3.2(a), the Base Rates shall not be adjusted for the immediately following Agreement Year; and (e) If no Annual Adjustment is applied to an Agreement Year following Contractor's Page 10 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS failure to timely deliver an Adjustment Notice to City, the Annual Adjustment for the following Agreement Year shall continue to be based on the percentage change in CPI for the twelve- month period ending on the May 31s' prior to the first day of the next Agreement Year (i.e., there is not "catch-up" for the missed increase). 3.3 Regulatory Rate Adiustment. Contractor may petition City at any time for additional payment rate adjustments on the basis of certain unusual and unanticipated changes in the cost of operations, including, but not limited to, new or revised Federal or State laws, ordinances, or regulations that place a direct fee or tax per ton on municipal solid waste generated by City. The increase per month shall be calculated using the annual reported waste generation data per account in City. City shall have the right, as a condition for its approval, to demand inspections by itself or by an independent auditor of pertinent records that demonstrate the need for an adjustment to the payment rates. If City shall fail to approve such requested increase within thirty (30) days after receipt of such request, Contractor shall have the right to terminate the Agreement not earlier than 180 days after providing written notice to City. 3.4 Notwithstanding anything herein to the contrary, Contractor may pass through and the customers shall pay to Contractor any documented increases in disposal fees, increases in Contractor's costs due to changes in local, state or federal rules, ordinances or regulations applicable to Contractor's operations or the services provided hereunder, and any increases in and newly imposed taxes, fees or other governmental charges assessed against or passed through to Contractor (other than income or real property taxes). IV. SERVICE SPECIFICATIONS 4.1 General/ Service Agreements. The work to be performed by Contractor pursuant to this Agreement consists of collection, transportation, and disposal, at its own expense, of Municipal Solid Waste and Recyclable Materials collected from Residential Units, Commercial Units, and Industrial Units, plus Construction and Demolition Debris, within the corporate limits of City as the present and future boundaries exist, and the furnishing of all labor, methods or processes, tools, equipment and transportation necessary to meet the requirements of this Agreement. 4.2 Residential Municipal Solid Waste Collection. (a) Contractor will provide one (1) time per week collection of Acceptable Waste with the Contractor supplying one 95 -gallon poly cart per residence. (b) The Cart will be placed at the curb by 7:00 a.m. on the designated collection day. Residents are required to place their cart(s) next to the curb in front of the residence for pickup. It is the City's intention to continue all residential collection at the same location residence has used for set -out in the past. (c) All materials to be collected shall be placed within the Cart. Collections shall be made from Residences on a regular schedule on the same day and at approximately the same time each week. This service will be provided Monday through Friday. Page I1 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS (d) Contractor is not responsible for collecting Carts weighing more than 170 pounds. Contractor shall collect Carts/Containers that are placed Curbside or at the front of the home in the area of the drainage ditch (the exception being for Special Needs). Contractor shall be responsible for providing notice first to the Customer and then to City staff if they believe the cart is notprepared and/or located correctly by a Customer. However, City shall be the sole and final judge as to such conditions and locations. (e) Collection of waste materials should not start before 7:00 AM or continue after 7:00 PM on the same day. Exceptions to collection hours shall be affected only upon the mutual agreement of City and Contractor, or when Contractor reasonably determines that an exception is necessary to complete collection on an existing collection route due to unusual circumstances. (f) Residential Unit and Municipal Facilities collection routes shall be established by Contractor. Contractor shall submit a map designating the Residential Unit and Municipal Facilities collection routes to City at least two (2) weeks in advance of the commencement date for such route collection activity. Contractor shall communicate route day changes via direct mailings at its own expense, a map of the Residential Unit collection routes of such size to clearly show all pertinent information. Contractor may from time to time make changes in routes or days of collection affecting Residential Units or municipal facilities provided such changes in routes or days of collection are submitted to City at least two (2) weeks in advance of the commencement date for such changes. Contractor shall properly give written notice to the affected Residential Units. 4.3 Residential Collection not covered under the Base Rates. The following are not covered under the MSW Base Rates: (a) The collection or disposal of Excluded Materials, and (b) The collection or disposal of any increased volume resulting from a flood, hurricane, tornado, ice storm, or similar or different Act of God over which Contractor has no control. In the event of such a flood, hurricane, tornado, ice storm, or other Act of God, Contractor and City may negotiate the work to be performed by Contractor under the Disaster Management Plan provided by Contractor, utilizing the rates for equipment, labor, and disposal rates provided in Exhibit A to this Agreement. 4.4 Residential Collection of Recyclable Materials. (a) Contractor will provide one (1) time per week collection of Recyclable Materials, on the same day that MSW is collected with the Contractor supplying one 95 - gallon poly cart per residence. (b) Recyclable Materials must be placed in the Residential Unit's Contractor -supplied Recycling Cart. Contractor shall not be required to collect any Recyclable Materials from a Residential Unit that are not placed in the Residential Unit's designated Recycling Container. Contractor may, but is not required to, treat as trash any Page 12 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO, TEXAS Recyclable Materials placed at the Curbside but not in the Recycling Container. 4.5 Changes in Recycling Market Conditions. If market conditions develop that limit or inhibit Contractor from selling some or all of the collected Contractor may give written notice to City of (i) a need to redefine Acceptable Recycling Material and Non- Recyclables, (ii) update the Processing facility's Average Commodity Mix, (iii) suspend or discontinue any or all Recycling services, or (iv) dispose of Acceptable Recycling Material (as currently defined) at the Disposal Facility and update the pricing to City accordingly. Such actions may be reversed, upon approval from City, if market conditions dictate. 4.6 Acceptable Recycling Material. Recyclables that are eligible for collection ("Acceptable Recycling Materials") must be dry, loose (not bagged), un -shredded, and empty, and shall include only the following: Aluminum cans Newspaper PET bottles with the symbol #I —with screw Mail tops only Mirrors, window, or auto glass HDPE plastic bottles with the symbol #2 Uncoated paperboard (ex. cereal (milk, water bottles detergent, shampoo boxes; food and snack boxes) bottles etc. PP plastic bottles and tubs with symbol # 5 Uncoated printing, writing, and - empty office paper Steel and tin cans Old corrugated containers/cardboard uncoated Glass food and beverage containers — Magazines, glossy inserts, brown, clear, or green and pamphlets Plastics not listed above including but not Cartons, Aseptic Containers limited to those with symbols #3, #4, #7 (bedding, 4.7 Non-Recyclables. Waste that is not eligible for recycling and shall not be treated and collected as Acceptable Recycling Materials ("Non-Recyclables") include, but are not limited, to the following: Plastic bags and bagged materials (even Microwavable trays if containing Rec clables Porcelain and ceramics Mirrors, window, or auto glass Light bulbs Coated cardboard Soiled paper, including paper plates, cups, and pizza boxes Expanded polystyrene and #6 plastics Coat hangers Glass and metal cookware/bake ware Household appliances and electronics Hoses, cords, wires Yard waste, construction debris, and wood Flexible plastic or film packaging and Needles, syringes, IV bags, or other multi- laminated materials medical supplies Food waste and liquids, containers Textiles, cloth, or any fabric containing (bedding, such items I pillows, sheets, etc. Page 13 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO, TEXAS Excluded Materials or containers Napkins, paper towels, tissue, paper which contained Excluded Materials plates, paper cups, and plastic utensils Any paper Recyclable materials or pieces Propane tanks, batteries of paper Recyclables less than 4" in size in any dimension 4.8 Residential Brush/Bulk Collection: Contractor will collect Brush and Bulky Materials once every other week on the same day the Residential Unit receives MSW and Recycling collection. Contractor shall not be obligated to collect Brush Materials set out for collection that: (a) Contains limbs exceeding four (4) feet in length or four (4") in diameter; (b) Is not stacked at the curb in such a manner that Contractor's employee can reasonably and safely lift the material into the collection vehicle; (c) Is not Debris resulting from the services of a Commercial Tree Service Provider; (d) Does not consist of more than three (3) cubic yards of Brush and Bulky materials per collection; (e) Is a White Good or other appliance designed to contain freon or other refrigerant materials that has not been tagged certifying that all refrigerants have been removed by a certified refrigerant technician prior to their placement for collection as required by Section 4.12. 4.9 Household Hazardous Waste Collection. Contractor shall provide a program to collect Household Hazardous Waste from Residential Customers at their residences on a call-in basis subject to the following: (a) Contractor shall establish a toll-free telephone number to which Residential Customers may call to request HHW collection; (b) Contractor must provide a container/bag into which Customers may place HHW items in advance of the collection; (c) Contractor may require Customers to place the HHW materials inside the provided bag/container except for large electronics, which the Customer shall be permitted to place for collection on the Customer's front doorstep, in front of the Customer's garage, or some location away from the curb or public street; (d) Contractor may limit the collection of HHW at the Residential Unit from all Residential Customers requesting HHW collection to a single day during each calendar month, which date must be provided to the requesting Customer at the time the request for HHW collection is made; (e) In no case shall a Customer be required to wait more than 31 days from the date the request for collection is made before Contractor collects the Customer's HHW; Page 14 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS (f) Contractor shall seek to have collected HHW recycled if the technology exists; and (g) Not less than one time per month on approximately the same day of each month, Contractor shall collect and dispose of small used, household batteries deposited by in the "battery buckets" located at City Hall and at City's Public Works office. 4.11 White Goods. White Goods such as a freezer, refrigerator, water cooler, dehumidifier, air conditioner, and any other appliances containing refrigerants must be tagged certifying that all refrigerants have been removed by a certified refrigerant technician prior to their placement for collection. Contractor shall not accept for collection refrigerators or other devices known to contain chloroflouro-carbons (CFCs) unless the Residential Customer establishes the item is free of CFCs by providing a written certification of CFC removal and may be lawfully disposed or recycled at Disposal Facilities. 4.12 Residential Unusual Accumulation Collection. When a Customer desires a collection of more material than the weekly limit for MSW or Brush and Bulk, the Customer may request an Unusual Accumulations Collection, which Contractor may perform subject to Customer's payment of a fee for such collection to Contractor reflecting a cost per hour for the use of the Collection vehicle, plus applicable disposal, as set forth in Exhibit A hereto. Any additional fees that might be charged by Contractor to a Customer for services that will be rendered over and above the requirements of the Agreement will be determined after visual inspection by Contractor's supervisor, and such fees must be approved by the Customer prior to commencing work. 4.14 Emergency & Disaster Debris Collection, When City determines that an event or occurrence is a Disaster Event, City may request Contractor to collect Disaster Debris placed for collection from within the Collection Area. Notwithstanding Section 1.1 to the contrary, City shall have the right to contract with a third -party to provide Disaster Debris Collection in addition to or in lieu of Contractor providing collection services. If City elects to use the services of Contractor to collect these additional materials resulting from the Disaster Event, City shall grant Contractor variances in routes and Exhibits, as deemed necessary. 4.15 Residential Carts. Contractor agrees to provide one (1) new Poly Cart for placement of Waste ("Waste Cart") and one (1) new Cart for Recyclable Materials ("Recycling Cart') to each Residential Unit (Waste Carts and Recycling Carts collectively being "Carts") not later than five (5) days prior to the Commencement Date. Upon written notice from City, Contractor agrees to provide one (1) new Waste Cart and one (1) new Recycling Cart to new Residential Units constructed within City during the Term of the Agreement. New Carts will be delivered to the Residential Unit with written instructions for proper use, including information regarding any actions taken by a Resident that may void manufacturer warranties, such as the placement of hot ashes in the Cart. New Recycling Carts and replacement lids for existing Recycling Carts will have recycling guidelines heat molded on the top of the lid determined by Contractor subject to City's approval, which approval shall not be unreasonably withheld or delayed. (a) Contractor shall not be required to collect any Waste or Recyclable Materials that are not placed in the designated Cart or within bags as provided in Section 4.2, Page 15 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIAIS: CITY OF CIBOLO. TEXAS bags of Waste Materials exceeding ten (10) placed for collection on a single collection day, any Waste or Recyclable Materials from a Cart that weighs more than 170 pounds, or a Cart and/or bags that are not properly placed Curbside; provided, however, prior to refusing to collect any Waste from a Residential Customer because such Waste is not properly prepared (i.e. placed in a Poly Cart or bagged) and/or placed at Curbside, Contractor shall notify the Residential Customer and then the City Administrator if it believes the Waste is not prepared and/or located correctly by the Residential Customer, in which case the City Administrator shall be the sole and final judge as to whether or not such Waste was properly placed for collection and should be collected; and (b) Carts shall remain at the location of the Residential Unit where delivered by Contractor. Should a Cart be lost or stolen from a Residential Unit, Contractor shall provide a replacement Cart. The City or Contractor shall assess a $75.00 charge to the Resident for new replacement carts and shall look solely to the Resident to pay such charge. If a Cart is damaged while at a Residential Unit, the Residential Customer shall contact Contractor directly to request a replacement Cart. Contractor shall replace a damaged Cart with a reconditioned Cart at no additional charge. Contractor will be responsible forpromptly responding to requests from and delivering Carts to Residential Customers who need a damaged Cart replaced. Contractor shall deliver a reconditioned Cart not later than five (5) business days after written notice from City or the Customer. Reconditioned Carts must be cleaned prior to delivery to the Customer. Damaged Carts shall be removed at the same time a reconditioned or replacement Cart is delivered. 4.16 Special Needs Waste Placement for Collection Assistance, If the City Administrator determines that all residents of a Residential Unit are physically disabled or because of age or verified physical limitations cannot safely move their Carts to the curb for collection, Contractor personnel will collect the Carts at the side yard or garage door and return to the same place once emptied ("Special Needs Collection"). All requests for Special Needs Collection will be considered by Contractor and the decision on whether to provide Special Needs Collection to a Customer forwarded by Contractor to the City Administrator and Residential Customer. The City Administrator may either approve or reject a Contractor's determination to not provide Special Needs Collection for a qualified Residential Customer. The rate for Special Needs Collection shall be the same as a regular collection. 4.17 Right to Reiect Unacceptable Waste. Contractor may, in its sole discretion, reject Unacceptable Waste placed curbside for collection by a Customer, in which case neither title to, nor liability for, such Unacceptable Waste shall pass to Contractor. 4.18 Adding Residential Customers. Contractor will establish New Residential Customer Service not later than the next collection day for the subject Residential Unit following receipt of the written request for such commencement of service from City. 4.19 Small Businesses Garbage Collection. Collections from all Small Business Garbage Generators shall be performed at least weekly on the same day and at approximately the Page 16 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS same time each week using 95 -gallon Carts provided by Contractor. If a Small Business Garbage Generator elects to receive Recycling Service, Contractor shall provide one 95 - gallon Recycling Cart to be collected once per week on the same day as the collection of the Waste Cart. Contractor is not responsible for collecting Carts weighing more than 170 pounds from Small Business Garbage Generators. Contractor shall notify the Small Business Garbage Generator and the City Administrator if Contractor believes the Small Business Garbage Generator's Waste is not prepared and/or located in an area accessible to the Collection Vehicle; provided; however, the City Administrator's determination shall final as to such conditions and locations and whether the collection should proceed. 4.20 Front End Loader and Roll Off Container Collection. (a) Prior to the beginning of the Agreement, Contractor shall provide new Dumpsters for Garbage Collection to all Facilities receiving Dumpster collection service under the Agreement. Dumpsters will be standard Containers capable of being serviced by front load, collection vehicles, and/or roll -off vehicles compatible with compactor and open -top containers. Dumpsters shall be located on the premises in a manner satisfactory to City or site manager and convenient for collection by Contractor. City, whose decision shall be final and binding, shall mediate any disagreements over Container placement and collection. (b) Contractor is notrequired to collect from Dumpsters if access across the Customer's private property is blocked. (c) Establishments generating putrescible waste materials will receive a minimum of two (2) days per week collection. Contractor shall make collections at all commercial establishments subject to the terms of the Agreement and at sufficient additional intervals necessary to perform adequate services and to protect the environment. Where the refuse is exclusively non-putrescible in nature, one (1) weekly collection is permitted. (d) Contractor shall not be required to perform during emergencies resulting from Acts of God or where proper payment has not been received. (e) Within the Collection Area, the collection shall be performed Monday through Saturday between the hours of 5:00 am. and 7:00 pm. within the confines of the current ordinances of City. Collections shall be made on a regular schedule on the same day and at approximately the same time each week. (f) Dumpsters will be located at a place convenient and safely serviceable to the Contractor and the Commercial Customer. (g) Contractor nor City shall be responsible for damage which is not negligently or willfully caused by the Contractor to any private pavement or accompanying sub- surface, or any drive approach connecting said private pavement to a public street or,alley, of any route reasonably necessary to perform the services in the Agreement. Page 17 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS (h) Detachable Containers supplied by Contractor shall be painted a uniform color, bear the name and telephone number of the Contractor, and bear a serial number coded for Container size. Detachable Containers (Dumpsters) placed for the collection of wet or odorous wastes shall be painted or changed out at least once every 2-1/2 years. Contractor is responsible for removing graffiti from its Detachable Containers. Collection drivers shall regularly note Containers containing graffiti. Contractor personnel shall then remove reported graffiti. Contractor shall remove any graffiti reported by City within five (5) business days of notification. (i) Damage to Detachable Containers on Customers' premises is at Contractor's risk, as between those parties and without affecting the risk or liability of others. (j) Contractor shall be responsible for the repair of all Contractor Detachable Containers damaged due to the Contractor's negligence. Contractor shall repair or replace within one (1) business day any Detachable Container that City determines does not comply with ordinance standards or constitutes a health or safety hazard. (k) No commercial container, dumpster, or roll -off container should be overloaded to the point where the lid or covers will not close, or the tarp will not properly cover the load. Contractor may decline to empty an overloaded container until the Customer unloads the dumpster or roll -off container to the point where the lid(s) will close, or where the load may be safely tarped before transport. (1) Contractor shall not litter premises in the process of making collections, but Contractor shall not be required to collect any waste material that has not been placed in approved containers or a manner herein provided, including any waste material that is not properly contained in accordance with the Agreement. During hauling, all waste material must be contained, tied, or enclosed so that leaking, spillage, or blowing is minimized. In the event of spillage by Contractor, Contractor shall be required to clean up the litter caused by the spillage. Contractor shall be responsible for closing the doors of a container enclosure after servicing the dumpster within that enclosure. (m) Where dumpster overflow occurs, windblown litter shall be the responsibility of the Customer to clean and remove. Where windblown litter occurs due to negligence of Contractor during the act of lifting and emptying a container, the Contractor shall perform the necessary clean-up of the windblown litter. [This Area Intentionally Left Blank] Page 18 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO, TEXAS 4.21 Detachable Containers -Generally. (a) Prior to the Commencement Date, Contractor shall provide New Detachable Containers and, if applicable, New Compactor Units, to all Commercial and Industrial Units receiving collection service under the Agreement. (b) Detachable Containers will be standard Containers capable of being serviced by front load, collection vehicles, and/or roll -off vehicles compatible with compactor and open -top containers. (c) Detachable Containers shall be painted a uniform color, bear Contractor's name and telephone number, and bear a serial number coded for Container size. (d) Detachable Containers (Dumpsters) placed for the collection of wet or odorous wastes shall be painted or changed out at least once every 2-1/2 years, upon Customer or City request. (e) Contractor -Owned Roll -Off Compactor containers shall be steam cleaned or changed out, at least once each year or as directed by City for an agreed-upon fee between the Customer and Contractor. (f) Detachable Containers shall be located on the Customer's property at a location approved by the City Manager and convenient for collection by Contractor. The City Manager, whose decision shall be final and binding, shall mediate any disagreements over Detachable Container placement and collection. (g) Contractor is not required to collect from Detachable Containers if access across the Customer's private property is blocked. 4.21 Commercial Unit Collection. Subject to the limitations of collection days and times in Section 5.2, Contractor shall make at least two (2) weekly collections at all Commercial Units on a regular schedule on the same days and approximately the same times each week subject to the terms of the Agreement Documents and at sufficient additional intervals necessary to perform adequate services and to protect the environment unless otherwise approved in advance by City. If a Commercial Unit's Waste is exclusively non-putrescible and of sufficiently low volume such that the Waste generated by the Commercial Customer does not exceed the volume of the Commercial Customer's Containers between collections, once -a -week collection is permitted. Contractor shall not be required to perform the collection of Commercial Units during emergencies resulting from Acts of God or when the Commercial Customer has failed to pay Contractor for the services received. Dumpsters will be located at a place convenient and safely serviceable to the Contractor and the Commercial Unit Customer. 4.22 Detachable Container Maintenance. (a) Contractor shall be responsible for the maintenance and repair of Contractor's Detachable Containers damaged due to Contractor's negligence. (b) Contractor shall repair or replace not later than one (1) business day any Page 19 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS Detachable Container after the City Administrator notifies Contractor of a determination that the Detachable Container does not comply with ordinance standards or constitutes a health or safety hazard. (c) Contractor shall graffiti from its Detachable Containers not later than five (5) business days after notification by City or a Customer of the existence of the graffiti. Contractor shall keep a record of the locations of Detachable Containers containing graffiti, take a photograph of the graffiti prior to its removal, and provide such location information and photographs to City as part of the Monthly Report. (d) Each Detachable Container to be placed at a City Facility is subject to inspection by City and approval as to appearance and condition before placement at any City Facility. A Detachable Container shall be reconditioned and repainted, if necessary, before being located at a City Facility that has not used it earlier. Contractor shall clean and/or repaint a Detachable Container showing excessively damaged paint and/or an accumulation of waste residue within the Detachable Container not later than thirty (30) days after delivery of a written request by City. 4.23 Overloaded Containers. No commercial container, dumpster, or roll -off container should be overloaded to the point where the lid or covers will not close, or the tarp will not properly cover the load. At Contractor's election, Contractor may decline to empty an overloaded container until the Customer unloads the dumpster or roll -off container to the point where the lid(s) will close, or where the load may be safely tarped prior to transport or collect such overloaded container and Customer shall pay additional charges each time that a container is overloaded (by weight or volume). 4.24 Stationary Compactor Units. The purchase, lease, installation, maintenance, and repair of Stationary Compactor Units or any related parts or accessories, as well as the Detachable Container, will be by agreement between Contractor and the property owner and/or authorized property manager of the property where the Stationary Compactor Unit(s) will be placed. Contractor's agreement with Customers using Stationary Compactor Units shall provide for the collection and transport of the Compactor Unit's Detachable Container. The rental of a Detachable Container shall be in accordance with the Roll -Off Rates set forth in Exhibit A attached hereto. 4.25 Excluded Waste. (a) Contractor has no obligation to collect Excluded Waste pursuant to this Agreement. Unless otherwise provided in this Agreement, City has no obligation to pay Contractor for the collection of Excluded Waste. (b) If Excluded Waste is discovered before it is collected by Contractor, Contractor may refuse to collect the entire bin, container, bag, or bundle of waste containing the Excluded Waste. Contractor shall contact City upon the discovery of Excluded Waste that has been placed for collection. City shall be responsible for taking any appropriate action to ensure that such Excluded Waste is removed and properly disposed of by the depositor or generator of the Excluded Waste. Page 20 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLo. TEXAS (c) If any Excluded Waste is not discovered by Contractor before it is collected, Contractor may, in its sole discretion, remove, transport, and dispose of such Excluded Waste at a location authorized to accept such Excluded Waste in accordance with all applicable laws and charge the generator of such Excluded Waste all direct and indirect costs incurred due to removal, remediation, handling, transportation, delivery, and disposal of such Excluded Waste. City will reasonably assists Contractor in determining the identity of the depositor or generator of the Excluded Waste to enable Contractor to collect from the depositor or generator the cost incurred by Contractor in connection with such Excluded Waste. (d) Contractor releases and holds City harmless from any liability for any cost incurred by Contractor in connection with such Excluded Waste, except to the extent that such Excluded Waste is determined to be deposited or generated by City. V. COLLECTION OPERATIONS — GENERAL PROVISIONS 5.1 Disposal and Processing: Contractor shall deliver all Waste collected pursuant to this Agreement to a Disposal Facility. All Customers must comply with any description of and/or procedures with respect to removal of contaminants or preparation of recyclable materials as reasonably provided by Contractor. If any customer fails to do so, Contractor may decline to collect such materials without being in breach of the Agreement. Contractor shall not be responsible for and has not made any representation regarding the ultimate recycling of such recyclable materials by any third -parry facilities. 5.2 Hours of Collection. (a) Unless otherwise agreed by the Agreement Administrator in accordance with Section 5.2(c), collection of Waste from Residential Customers shall not start before 7:00 A.M. Central Time or continue after 7:00 P.M. Central Time on the same day in any residentially zoned area of City's corporate limits or otherwise within 500 feet of a Residential Unit Collection from Residential Units shall not occur on Sundays unless authorized in writing by the Agreement Administrator following a weather-related event (e.g. winter storm event) or other circumstance that has resulted in Contractor being unable to perform regular collections on schedules days. (b) Unless otherwise agreed by the Agreement Administrator in accordance with Section 5.2(c), collection of Waste from Commercial and Industrial Customers shall be performed on a regular schedule on the same days and approximately the same times each week, Monday through Saturday between the hours of 5:00 A.M. Central Time and 7:00 P.M. Central Time; provided, however, unless otherwise approved by the Agreement Administrator, which approval shall not be unreasonably withheld, collection from a Commercial or Industrial Customer shall not occur before 7:00 A.M. Central Time if the location where the collection will occur is within 500 feet of a Residential Unit. (c) Notwithstanding the foregoing to the contrary, collection on all routes will be completed no later than 7:00 P.M. Central Time each service day unless: Page 21 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLIDHASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS (1) Contractor provides written notice to the City Administrator with a description and justification of the unusual circumstances prior to the collection that justifies a later completion time for the route or Customer identified in the request, and (2) The City Administrator determines that the collection will not result in a violation of City's ordinances, including those regarding excessive noise; and (3) The City Administrator approves the later completion time in writing. 5.3 Collection Routes. Contractor shall work with City staff to develop routes prior to the Commencement Date. Contractor may request changes to collection routes that are determined to be more efficient than those that would otherwise be in effect on the Commencement Date or to which the Parties later agree; provided, however, no change in collection routes shall be made unless: (a) such change has been approved in writing by the City Administrator, which shall not be unreasonably withheld or delayed; and (b) if the change will require a change in the days Waste Materials and/or Recyclable Materials are collected from a Residential Customer, Contractor has provided written notice to each Residential Customer whose collection dates will change not later than fifteen (15) days prior to the date the new collection dates become effective. 5.4 Holidays. Contractor may, at Contractor's option, suspend collection on a Holiday. If Contractor elects not to provide collection services on a Holiday, Contractor shall notify City not less than two (2) weeks in advance of the Holiday of the dates that collection will occur for those Customers whose regular collection day falls on the Holiday on which a collection did not occur, provided such delayed collection shall be not later than the next business day following the Holiday unless otherwise agreed by the Agreement Administrator. 5.5 Complaints. Customer complaints, including complaints for missed collections, shall be directed to Contractor. At the end of each business day and, in the case of complaints received on a Saturday, Sunday, or a Holiday, on the immediately following business day. Contractor shall email to City a summary of Customer complaints received on that day setting forth at least the following relating to each complaint: (a) The address of the Customer making the complaint; (b) The time the call or e-mail was received from the Customer; (c) Whether the Customer is a Residential, Commercial, or Industrial Customer; and (d) A summary of the follow-up action taken by Contractor to resolve open complaints from the same orprior days, including the date of the original complaint, the date(s) Page 22 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS and time(s) of subsequent communications with the Customer regarding the complaint, the name of Contractor's employee(s) who interacted with the Customer regarding the complaint, a summary of the contents of the communications between Contractor's employee(s) and the Customer, and the date when Contractor has deemed the complaint to be resolved and closed. 5.6 Collection Vehicles and Equipment. All vehicles, facilities, equipment, and property used in the performance of this Agreement shall be provided by Contractor and comply with the following: (a) All vehicles shall be not older than four (4) model years on the Commencement Date and not older than ten 10 model years at any time during the term of this Agreement; (b) All vehicles shall be kept in good operating order and a clean and sanitary condition with the interior of the cab free of clutter; (c) All collection equipment shall be operated and maintained in compliance with all applicable state and federal safety standards; (d) Contractor shall obtain and maintain current all required operating permits and registrations for the collection vehicles; (e) Collection vehicles shall be painted in Contractor's color schemes. Vehicle numbers, at least six-inch (6.0") high shall be painted on each side of the rear of the vehicle in a contrasting color from the body color; (f) No advertising shall be permitted on the collection vehicle other than the name and address of Contractor; (g) Contractor shall place the appropriate customer service telephone number on all collection trucks; (h) The type, number, and capacity of collection vehicles shall be sufficient to service all Structures at the frequency and level of collection specified in the Agreement and capable of handling, in the safest and most efficient method available, the Carts, Containers, and material specified for each structure on its route; (i) All vehicles shall be operated in conformity with applicable federal and state laws and regulations; (j) All vehicles used by Contractor's management personnel, including route supervisors, shall be equipped with cell phones with voice mail so they can be contacted by City; (k) Collection vehicles will be equipped with two-way communication devices so that Contractor's staff and the driver may communicate during the route collection; and (1) All collection vehicles shall be equipped with Global Position System ("GPS") Page 23 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICiPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS tracking equipment to allow for tracking and locating collection vehicles, which tracking information can be stored and retrieved by Contractor and is provided to City upon written request Contractor shall furnish to City an inventory of all equipment and vehicles to be used pursuant to this Agreement (the "Equipment Inventory"). Contractor shall provide City with an updated Equipment Inventory not later than ten (10) business days after Contractor adds and/or deletes a vehicle or piece of equipment that is being used in City unless the addition or deletion is only for a temporary period to allow for the repair of a vehicle or piece of equipment on the Equipment Inventory that has been temporarily removed from service. Contractor may use replacement and/or additional equipment and vehicles for a period not exceeding fifteen (15) consecutive days or sixty (60) days during any Agreement Year without updating the Equipment Inventory if the use of such equipment and/or vehicles is reasonably necessary to maintain a consistent level of collection services as required by this Agreement during a period of an abnormally high volume of Waste needing to be collected or to cover extra collections as the result of a Holiday collection schedule. Contractor may include on the Equipment Inventory equipment or vehicles Contractor intends to regularly use for collection during such temporary periods of high volume or during Holiday collection schedules provided such equipment and/or vehicles are identified as "standby" or "reserve" equipment or vehicles on the Equipment Inventory. Notwithstanding anything herein to the contrary, in the event that a container becomes lost, unsightly, unsanitary, broken, or unserviceable because of the acts or omissions of a customer (excluding normal wear and tear), the customer will be charged for the resulting repairs or replacement and such amounts will be paid to Contractor upon demand. Any equipment furnished hereunder by Contractor shall remain the property of Contractor; however, customers shall have care, custody and control of the equipment while at the service locations. Customers shall use the equipment only for its proper and intended purpose. Customers shall not overload (by weight or volume), move, alter or install any devices on the equipment, and shall not manually or mechanically compact any materials inside the equipment, except inside compactor receiver boxes specially designed for such purpose, and shall not allow any third party to take any such actions. Customers shall pay additional charges each time that a container is overloaded (by weight or volume). Customers must provide unobstructed access to the equipment on the scheduled collection day. The word "equipment" as used in this Agreement shall mean all containers used for the storage of non -hazardous solid waste. 5.7 Spillage: Contractor shall not litter premises in the process of making collections. In the event of spillage by Contractor, Contractor will be responsible for the cleanup of any spills including, but not limited to, garbage, fuel, oil, and other fluids from Contractor's vehicles or resulting from the collection of Waste Material. Contractor shall not be responsible for the collection of any scattered Waste that has not been caused by Contractor's employees. 5.8 Point of Contact: All dealings and contacts between Contractor and City shall be directed between the Public Sector representative of Contractor, or such other individual identified by Contractor, and the Agreement Administrator. Page 24 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO, TEXAS 5.9 Contractor's Employees. (a) Contractor's officers, employees, or agents assigned to perform collection services to Customers pursuant to this Agreement shall: (1) at all times when collecting Waste Materials and/or Recyclable Materials, wear uniforms and carry identification cards and/or badges bearing the name and photo of the officer or employee and identifying the person as an officer or employee of Contractor, (2) possess at all times the appropriate State of Texas operator's license for the vehicle being operated when driving any vehicles used in connection with the performance of this Agreement; (3) never identify themselves, or in any way represent themselves, as being employees or agents of City; (4) not possess or consume alcoholic beverages or controlled substances while on duty or in the course of performing duties under this Agreement, and Contractor shall maintain and enforce a policy consistent with this prohibition; (5) interact with Customers and other members of the public in a neat, orderly, courteous, helpful, and impartial manner and refrain from belligerent behavior and/or profanity when interacting with Customers; (6) conduct collection serves with as little noise and as little disturbance to Customer as reasonably possible taking into consideration the noise customarily generated by the normal operation of Collection Vehicles and other collection equipment; (7) not disturb or otherwise unreasonably interfere with a Customer's property that is adjacent to where the Customer's container(s) are located for collection; and (8) take reasonable precautions to prevent damage to property, including lawns, shrubs, flowers, and other plants while performing Collection Services. (b) Contractor shall be solely responsible for managing and disciplining Contractor's employees. If Contractor receives a report alleging one or more of Contractor's employee(s) was wanton, discourteous, belligerent, profane, or in any way intimidating, either physically or verbally, or appeared to be under the influence of drugs or alcohol, Contractor shall submit a written report to City providing the details of the incident, which report shall include: the nature of the incident, time, date, and location of the incident; name, address, and telephone number of the person alleging the violation; the name and title Contractor's officer(s) and/or employee(s) involved in the incident; and what disciplinary action, if any, was taken by Contractor. If an employee of Contractor is the subject of repeated allegations or a single egregious allegation of the type described above, such Page 25 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS employee shall be removed from an assignment from providing Collection Services under this Agreement not later than ten (10) days after receipt of City's written request for such removal, which removal shall continue for the duration of the Term of this Agreement (including Initial Term and any Extended Term) unless otherwise agreed in writing by the Agreement Administrator. VI. REPORTING REQUIREMENTS 6.1 Reports Generally; Format. Contractor shall provide to City the reports or notifications to the City's Agreement Administrator described in this Article VI in addition to any daily reports required by this Agreement. If not established by an outside authority, the Parties shall agree on the required report format, provided each report contains at least the information required by Article VI. All information provided in the reports delivered by Contractor to City pursuant to this Article VI becomes the property of City. City shall have the right to use the data from the reports provided by Contractor for whatever purposes City deems appropriate. 6.2 Monthly Reports. Not later than the tenth (10th) of each month during the term of this Agreement, Contractor shall deliver to the City Administrator in the agreed format a report relating to the collection activity during the prior calendar month ("Monthly Reports"). Monthly Reports shall include route -by -route information regarding Participation Rates, Recycling Rates, and Tonnage Collected and contain, as a minimum, the following information: (a) Number of Residential Units served. (b) Number of Commercial Units served. (c) Tonnage of Waste collected during the month and delivered to the Disposal Facility, broken down by collection from Residential Units, Commercial Units, and Industrial Units; (d) Tonnage of Residential Recycling Materials collected and delivered to the Disposal Facility; (e) Tonnage of Residential Bulk and Brush collected; (f) Tonnage of Waste collected from Commercial Units; (g) Tonnage of Waste collected from Roll Off Units; (h) Residential Recycling Participation Rate, being the percentage of Residential Units participating in recycling collection services; (i) Summary of motor vehicle accidents or moving violations involving Contractor's vehicles occurring while providing services under the Agreement during the month; Page 26 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS (j) Summary of property damage claims or personal injury claims received by Contractor during the month as a result of providing services under the Agreement, even if the events giving rise to such claim occurred in a prior month; and (k) List of Customer complaints received by Contractor either directly or forwarded by City, arranged and listed by category, including the date the complaint was received, the address of the complainant, the address of the property about which the complaint was made (if different than Customer's address, name of the complainant, nature of the complaint, how the complaintwas resolved, the date the complaint was resolved when the complainant was contacted about the resolution of the complaint, and if the complaint has not been resolved as of the date of the Monthly Report, when and how Contractor expects the complaint to be resolved. 6.3 Annual Reports. No later than November I" after the end of each Agreement Year, Contractor shall submit to the Agreement Administrator an annual report (the "Annual Report') covering the immediately preceding Agreement Year and include at least the following information: (a) A collated summary of the information contained in the monthly reports, including reconciliation of any and/or adjustments from prior reports; (b) A discussion of highlights and other noteworthy experiences, along with measures to resolve problems, increase efficiency, and increase participation; (c) A description of all public information programs undertaken with audiences reached and media used; and (d) With respect to the final Annual Report, including all information required for the Monthly Report relating to the last calendar month prior to the date of termination of the Agreement. The obligation to submit the Annual Report for the last Agreement Year shall survive the termination or expiration of this Agreement. City may withhold payment of balances due to Contractor at the end of the Agreement until such final report is received and accepted by City. Contractor shall cooperate fully with providing information relevant to reporting requirements. The reporting requirements are part of the material consideration and failure to comply with reporting requirements shall constitute a material default and shall be subject to penalties and/or termination of this Agreement. VII. PUBLIC EDUCATION CAMPAIGN SERVICE AND CITY FACILITY SERVICE 7.1 Public Education Campaign. To inform and educate Residential Customers regarding Contractor's commencement of services under this Agreement, Contractor shall, at Contractor's cost: (a) Distribute a professionally prepared brochure to each Residential Unit at least one (1) time approximately four (4) weeks prior to the Commencement Date, which Page 27 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS brochure shall, at a minimum, describe the upcoming changeover in the provider of Waste Material, Recyclable Material, Bulk and Yard Waste, and Door -to -Door Household Hazardous Waste collection services to Residential Customers, the date Contractor will start providing such services, Contractor's contact information to be used by Residential Customers wishing to ask questions or lodge complaints, and any other relevant information necessary to enhance community education; (b) Provide to City a sufficient number of additional copies of the above-described brochure to allow City to provide to people requesting such information; (c) Coordinate with and supply all information reasonably requested by City's Director of Marketing & Communication and Public Works Director to facilitate City's efforts to notify Residential Customers of this transition and 7.2 City Facilities and Special Events. Contractor agrees to provide Dumpster(s) and/or Roll - Offs for the Special Events and at City Facilities set forth in Exhibit B attached hereto and incorporated herein by this reference. The type of equipment and frequency of collection is set out in Exhibit B and may be adjusted as agreed to by City and Contractor. Necessary increases in service as agreed to between City and Contractor to existing City Facilities will be added to the Exhibit and serviced at no charge. Any additional events not listed in Exhibit B or necessary increases in service to events listed in Exhibit B will be serviced by Contractor at a charge. VIII. CONTRACTOR RESPONSIBILITIES 8.1 Generally. In providing the Collection Services required by this Agreement, Contractor's responsibilities shall include: (a) Furnishing all skill, labor, equipment, materials, supplies, and utility services required for providing all services in accordance with this Agreement; (b) All actions and activities of its subcontractors; (c) Supplying all records and information required by this Agreement; (d) Securing at Contractors expense all governmental permits and licenses and required regulatory approvals, including those required by City ordinances; (e) Paying all applicable taxes and Franchise fees; (f) Paying to City not later than the thirtieth (30a') day after the Effective Date the one-time reimbursement of City's costs for the development of the RFP and the Agreement Documents including, but not limited to, this Agreement. The estimated costs to be incurred is $39,940, but the actual amount incurred will constitute the amount to be reimbursed; (g) Complying with applicable laws and regulations; Page 28 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS (h) Performing all work in a timely, thorough, and professional manner; (i) Disposing of all collected MSW at a permitted MSW Landfill; (j) Processing and marketing Recyclable Materials collected by Contractor from Residential Units; (k) All wage increases for Contractor's collectors or other employees, any benefits or added costs resulting from changes in technology, laws, and regulations, labor practices, availability of equipment, and other business risks that may affect the performance of this Agreement; and (1) Collecting all missed collections for any service provided within 24 hours after being notified of the missed collections, including picking up on Saturday if notified of a missed collection on a Friday; provided, however, missed pick-ups for which Contractor receives a notification on a Saturday will be collected on the immediately following Monday. 8.2 Contractor's Office and Customer Support. (a) Contractor shall maintain an office or such other facilities through which it can be contacted by direct visit or by local (toll-free) call from anywhere in the City on regular collection days, as follows: (i) Monday through Friday between 7:00 A.M. and 7:00 P.M. Central Time; and (ii) Saturday between 9:00 A.M. and 3:00 P.M. Central Time; (b) Such office shall be staffed by a responsible person in charge and an adequate number of additional staff available to answer the phone from 7:00 a.m. to 7:00 p.m. on regular collection days; and (c) When the collection is postponed one day for scheduled or unscheduled reasons, Contractor's customer service personnel must be available to answer phones on all days during which collection service is provided. An informative recording answering frequently asked questions shall be available at all other hours, thereby providing a 24-hour, 7 -day per week customer service line. 8.3 Newsworthy and Emergency Notifications. Contractor must contact Agreement Administrator as soon as reasonably practical and, in no case, later than 24 hours after the occurrence of one of the following: (a) any news coverage or sudden event involving Contractor that could impact the service Contractor provides to City pursuant to this Agreement; (b) any news coverage or sudden event involving Contractor that is reasonably anticipated to result in Customer phone calls to City; (c) an environmental emergency or incident, including spills, that involves Contractor, a related business of Contractor, or one or more of Contractor's Page 29 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CiBoLO. TEXAS employees that occurs within City; (d) a motor vehicle accident involving Contractor that occurred while providing services under the Agreement; (e) personal injury accidents involving Contractor which occurred while providing services under the Agreement; and/or (1) property damages involving Contractor that occurred while providing services under the Agreement. 8.4 Street Damages. Contractor shall be responsible for the repair of damage to paved surfaces on public streets, alleys, bridges, or easements when such damage is caused by Contractor's negligent or inappropriate operation of its collection equipment. Contractor shall not be responsible for normal wear and tear of public rights of way or regular maintenance of such rights of way. Substantiation of cause shall be determined by the mutual agreement of City and Contractor. At no time shall Contractor operate a vehicle in City's Limits that: (a) is loaded to the extent that the load exceeds the weight allowed by law for the rating of said vehicle; or (b) is loaded to the extent that the combined weight of the load and vehicle exceeds the weight allowed on the public streets, alleys, thoroughfares, bridges, or easements on which the vehicle is traveling if such street, alley, or bridge has received a weight limitation rating. Contractor shall, not later than forty-five (45) days following written demand, reimburse City for all costs related to City's repair of damages determined to be Contractor's responsibility. Notwithstanding anything in this Section 8.4 to the contrary, Contractor shall not be responsible for damage which is not negligently or willfully caused by Contractor to any private pavement or accompanying sub -surface, or any drive approach connecting said private pavement to a public street or alley, of any route reasonably necessary to perform the services in the Agreement. 8.5 City Facilities. Contractor shall not charge City for collection services from City Facilities as described in Exhibit `B" or from any additional City Facilities that City may add. 8.6 Enforcement. Contractor has the right to seek an injunction against any third party which is believed to be infringing upon the rights of Contractor to this Agreement, including Contractor's right to be the sole provider of Municipal Solid Waste, Construction and Demolition Debris, and Recyclable Materials collection within City per this Agreement. 8.7 Damage to Property, Contractor shall take all necessary precautions to protect public and private property during the performance of this Agreement. Contractor shall repair or replace any private or public property which is damaged by Contractor's officers or employees. Such property damages shall be resolved by Contractor either by repair or Page 30 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS replacement, at no charge to the property owner, within forty-eight(48) hours of the earlier of knowledge of or notice to Contractor of such damage unless a longer period of time is approved in writing by the City Administrator and any replacement of property shall be accomplished with property of the same or equivalent value at the time of the damage. If Contractor fails to address the repair and replacement of damaged property within forty- eight (48) hours of earlier knowledge of or notice to Contractor of such damage orthe longer period of time approved in writing by the City Administrator, the City Administrator may, but shall not be obligated to, cause the repair or replacement of such damaged property and the cost of doing so shall be deducted from any payment to be made to Contractor by City. Notwithstanding anything to the contrary, Contractor shall not be liable for any damages to pavement, curbing, or other driving surfaces to the extent that such damages result solely from the normal and legally allowable weight of its trucks and equipment on the surfaces as necessary to perform the Services. IX. LIQUIDATED DAMAGES 9.1 Generally. Acceptable performance standards pursuant to this Agreement include the provision of daily services' on a timely basis with minimal interruptions, Contractor being environmentally responsible while providing such daily services, and Contractor responding promptly to both residential and commercial Customers and resolving any complaints relating to the failure to promptly and correctly providing such daily services. For failure in meeting acceptable performance standards, Contractor will be liable to City for Liquidated Damages as set forth in Section 9. City may charge Liquidated Damages to Contractor as set forth in Section 9.2 on a monthly basis and shall, at the end of each month during the term of the Agreement, notify Contractor in writing of the amount of Liquidated Damages assessed for such month, if any. If Contractor wishes to contest any Liquidated Damages assessment, Contractor will request in writing a meeting with the City Manager or designee to attemptto resolve the issue. The decision of the City Manager shall be final. 9.2 Liquidated Damages Assessed. City may assess liquidated damages to Contractor as follows: (a) Missed collection: $100 per missed collection in excess of five (5) missed collections on the same collection day. A missed collection occurs when a Customer reports a missed collection, the address was not reported by Contractor as an unacceptable set -out, and Contractor cannot provide data demonstrating the collection vehicle traveled on the street and collections occurred on the street on the day on which the complaint relates; (b) If a missed collection has not been collected within the time required by Section 8.1(1): $100 per occurrence per day. (c) $500 per incident for Contractor failing to collect Waste on a block containing Residential Units. A missed Residential Unit block is where three (3) Residential Units on one side of a street between cross streets, or an entire cul-de-sac, report a missed collection. A missed Residential Unit block occurs when the addresses Page 31 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS reporting missed collections were not reported by Contractor as unacceptable setouts, and Contractor cannot provide data demonstrating the collection vehicle traveled on the block during the day of the complaint: (d) Commencement of residential collection prior to 7:00 a.m., or operating within City after 7:00 p.m. except as expressly permitted: $250 per route per occurrence; (e) Commencement of commercial collection within 500 feet of a Residential Unit prior to 7:00 a.m., commencement in other areas prior to 5:00 a.m., or operating within City after 7:00 p.m. except as expressly permitted: $250 per route per occurrence; (fl Failure to complete a majority (50%) of the collections on a given day: $5,000 for each incident (unless Contractor has reported to City that collections cannot be made due to unsafe conditions (roadway freezing, etc.); (g) Failure to maintain a vehicle in a manner consistent with the Agreement: $100 for each incident; (h) Failure to clean up spilled Solid Waste or Recyclables resulting from Contractor loading and/or transporting within two (2) hours of notification: $250 per impacted address; (i) Failure to resolve properly reported bona fide Customer complaints within one business day: $200 for each incident; (j) Failure to submit an accurate Monthly or Annual report in the specified format, as required by the Agreement: $250 per report per calendar day delinquent; (k) Failure to submit accurate accounting invoices and/ or complaint reports in the specified format: Non-payment until an accurate accounting is submitted; (1) Failure to return carts and containers to approximately original collection location: $50 each incident, for each affected address; (m) Failure to leave a public education notice when material that is inappropriately prepared is not collected: $50 each incident; (n) Failure to be prepared to perform services on or after the Commencement Date: $ 3,000 per calendar day on and after the Commencement Date the services are not being performed by Contractor; (o) Failure to deliver or replace carts for any reason within five (5) business days of written notification: $50 per incident per affected address: (p) Contractor commingling Recyclable Materials with MSW: $ 1,000 for each incident. Page 32 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS (q) Disposal of Recyclable Materials to a site other than a proper recycling facility: $ 2,000 for each incident. 9.3 Liquidated Damages and Not Penalty. Because Contractor's failure to perform the specific tasks described in Section 9.2 and the damages that would be incurred by City being required to assist Customers in handling and resolving complaints (which Residential Customers are citizens and/or property owners located in City's Limits), cannot be reasonably estimated and calculated by the Parties, and because the precise nature and amount of damages that may be incurred cannot be reasonably foreseen by the Parties, City and Contractor agree that the amount assessed in accordance with Section 9.2 constitute liquidated damages and not a penalty. X. CITY'S REPRESENTATIONS AND WARRANTIES 10.1 Representations and Warranties. City hereby makes the following representations and warranties to and for the benefit of, Contractor: (a) City is a home rule municipality duly organized and validly existing under the Constitution and laws of the State of Texas, with full legal right, power, and authority to enter into and perform its obligations under this Agreement. (b) City has duly authorized the execution and delivery of this Agreement, and this Agreement constitutes a legal, valid, and binding obligation of City that is enforceable against City according to its terms. (c) To the best of City's knowledge, information, investigation, or belief, no action, suit, or proceeding, at law or in equity, before or by any court or governmental authority, commission, Council, agency, or instrumentality is pending against City wherein an unfavorable decision, ruling or finding, in any single case or in the aggregate, would materially adversely affect the performance by Contractor of its obligations hereunder or in connection with the obligations, undertakings, and transactions contemplated hereby, or which, in any way, would adversely affect the validity or enforceability of this Agreement or any other contract or instrument entered into by City in connection with the obligations, undertakings, transactions contemplated hereby. (d) To the best of City's knowledge, information, investigation, or belief, as of the Commencement Date, City has the legal right and authority to grant this exclusive franchise and shall defend, and use reasonable efforts to uphold this Agreement, and City's right to adopt and/or enforce this exclusive franchise if City's right to adopt and/or enforce this exclusive franchise or enter into this. Agreement is ever challenged, litigated or disputed during the term of the Agreement. City acknowledges that this is an essential term of the Agreement that Contractor is relying upon in entering into the Agreement. Contractor's sole and exclusive remedy with respect to a determination after the Effective Date that City's legal rights and authority as set forth in this paragraph (d) are not accurate shall be as set forth in Section 17.05, below. Page 33 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO, TEXAS XI. CUSTOMER BILLING AND PAYMENTS TO CONTRACTOR 11.1 Residential Customer Billine; Payment for Service. (a) City shall be solely responsible for billing and bill collection services to Residential Units during the term of this Agreement; (b) City will be obligated to pay for Residential Collection services provided by City to collect on Residential Units; (c) Not later than the tenth (I Oa') day of each calendar month during the Term of this Agreement, City shall provide to Contractor a report showing the count of Residential Units billed for collection services and other services provided to Residential Units located within the City during the immediately prior calendar month; and (d) Based on the number of Residential Units reported by City, Contractor shall deliver to City an invoice setting forth sums due by City to Contractor for services rendered to Residential Customers under this Agreement, excluding the ten percent (10%) franchise fee. (e) The Contractor and City may modify theprocess forpayment described in this section to improve accuracy of billing and speed of payment. 11.2 Commercial Customer Billing. (a) Contractor shall be solely responsible for billing and bill collection services to Commercial Units and Industrial Units during the term of this Agreement; (b) Contractor will be obligated to pay for Commercial Collection services provided by Contractor to collect on Commercial Units or Industrial Units. (c) Not later than the tenth (10') day of each calendar month during the Term of this Agreement, Contractor shall provide to City a report showing the individual billings to Commercial Units and Industrial Units for collection and other services provided to Commercial and Industrial Customers located within the City during the immediately prior calendar month, including the services rendered, the rate for such service, and the amount of payments received by Contractor for such services during the calendar month covered by the report. (d) Based on the number of, rates for services, and amount of payments received by Contractor to Commercial Units or Industrial Units reported by Contractor, City shall deliver to Contractor an invoice setting forth the ten percent (10%) franchise fee sum due by Contractor to City for services rendered to Commercial Units or Industrial Units under this Agreement. (e) The Contractor and City may modify the process for payment described in this section to improve accuracy of billing and speed of payment. 11.3 Non-Payine Customers. City shall notify Contractor in writing of any Residential Unit (Customer) that has failed to pay City for Municipal Soild Waste and Recycling Services. Page 34 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUMCIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CDIOLO, TEXAS I Upon written direction from City, Contractor shall cease servicing such delinquent Residential Unit until notified by City to resume service. Contractor shall have the right to cease servicing any Commercial Unit or Industrial Unit that is delinquent in payment to Contractor. XII. TITLE TO WASTE MATERIAL Title to Solid Waste Materials and Recyclable Materials shall pass to Contractor when placed in Contractor's collection vehicle. Title to and liability for any Unacceptable Waste shall remain with the Customer, Generator, or depositor of such waste and shall at no time pass to Contractor. City will provide all reasonable assistance to Contractor to investigate and determine the identity of the depositor or Generator of the Unacceptable Waste and to collect the costs incurred by Contractor in connection with such Unacceptable Waste. City is not responsible for costs associated with Unacceptable Waste, except to the extent that such Unacceptable Waste was placed for collection by City in violation of this Agreement. All containers, trucks, and any other equipment that Contractor furnishes under this Agreement shall remain Contractor's property. XIV. RECORDKEEPING / RIGHT TO INSPECT Contractor shall maintain all records generated in connection with the performance of its obligations and/or provision of Services under this Agreement for a period of at least four (4) years after submission of the last Monthly Report. City retains the right to examine, inspect, audit, and copy, regardless of location, all documents, records, files, data, and information generated or utilized by Contractor in the performance of its obligations and/or provision of Services under this Agreement. In addition to the Monthly Reports and Annual Reports, City may request periodic reports pursuant to services rendered regarding information not contained in the Monthly Reports or Annual Reports. Such reports must be provided in a reasonable and timely manner, but in no case later than fifteen (15) business days following receipt of the written request unless the request specifies a later deadline. City may withhold making payments due to Contractor pursuant to this Agreement if any report required to be made pursuant to this Agreement has not been delivered to City on or before the fifth (5th) business day following the date that such report is required to be delivered to City pursuant to this Agreement and may continue to be withheld until the second business day after such report is delivered. 15.1 Termination by Default. If either party notifies the other party of a failure of such party to perform a material provision of this Agreement and such party has failed to cure such failure on or before the thirtieth (30th) day following such notice, or if such failure can be Page 35 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS cured, but cannot be reasonably cured within said thirty (30) days, then by the date such failure should reasonably be cured, but in no case later than ninety (90) days after delivery of the notice from the non -defaulting party, the non defaulting party may terminate this Agreement by delivery of written notice to the defaulting party. Upon such termination under this section 15. 1, in the event such termination occurs during the Initial Term, City, as its sole and exclusive remedy, may exercise its rights under Contractor's performance bond, if applicable, and procure the services of another waste collection services provider to complete the work covered under this Agreement for the remainder of the time period covered by the Initial Term. Except for such right during the Initial Term, following any such termination, neither Party shall have any further obligation under this Agreement, but the Parties expressly reserve all claims for damages resulting from said uncured default and claims for personal injuries or property damage and the right to be indemnified therefor as expressly provided in this Agreement and arising prior to such termination date. 15.2 Termination for Insolvency, Bankruptcy, Assignment to Creditors. City may, without further notice,. terminate this Agreement immediately if Contractor (i) petitions for reorganization under the Bankruptcy Code or is adjudged bankrupt; (ii) becomes insolvent or a receiver is appointed due to insolvency; (iii) makes a general assignment or sale of its assets or business for the benefit of creditors if Contractor ceases providing the collection of Waste Materials pursuant to this Agreement and Contractor (if Contractor is a debtor- in-possession) or the trustee of the bankruptcy estate fails to ratify and continue performance of this Agreement within the required period set forth in the Bankruptcy Code. 15.3 Termination by Mutual Agreement. If City and Contractor mutually agree in writing, this Agreement may be terminated on the terms and date stipulated in the writing. 15.4. Termination for Non -Appropriation of Funds. Contractor acknowledges and understands that City is prohibited by law from entering into contractual obligations for the expenditure of funds beyond the current fiscal year. City may, upon written notice to Contractor, terminate this Agreement on any September 30' occurring during the Term of this Agreement if City fails to appropriate funds in City's Annual Budget for the immediately following fiscal year commencing October 1St for the purpose of providing residential solid waste collection services to Residential Customers. This Agreement is not, and shall not be construed, as (a) an obligation payable in any fiscal year beyond the fiscal year for which funds are lawfully appropriate; or (b) an obligation creating a pledge of, or a lien on, City's tax or general revenues resulting in the creation of a debt. 15.6 Right of Contractor to Terminate. If City is temporarily or permanently enjoined by a court of competent jurisdiction from entering this Agreement or otherwise granting to Contractor an exclusive contract and franchise for the Residential Waste Collection services to be provided herein, or an amendment to State law makes this Agreement unlawful to the extent that the Agreement grants an exclusive contractual right to Contractor to perform Residential Waste Collection services, Contractor may, upon not less than ten (10) days written notice to City: (a) to terminate this Agreement, in which case Contractor shall refund to City any Page 36 of 47 FRANCHISE AGREEMENT FOR TEE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS installment of the fees paid by City in advance of the provision of services, if any, prorated for the remaining portion of the month after the date of termination; or If such injunction is applicable to any services provided under this Agreement other than Residential Municipal Solid Waste and Recyclable Materials services, Contractor shall have the right to terminate the provision of such other services pursuant to this Agreement but shall not be authorized to terminate the provision of Residential Municipal Solid Waste and Recyclable Materials services, or continue providing such services on a non- exclusive basis. Following any termination pursuant to this Section 15.6, neitherParty shall have any further obligation under this Agreement other than for claims for personal injuries or property damage and the right to be indemnified therefor as expressly provided in this Agreement and arising prior to such termination date. XVI. DEFENSE OF SUITS If any action in court is brought against City, or any officer or agent of City, for the failure, omission, or neglect of Contractor to perform any of the covenants, acts, matters, or things under this Agreement; or for injury or damage caused by the alleged negligence of Contractor or his/her subcontractors or his/her or their agents, or in connection with any claim based on lawful demands of subcontractors, workmen, material men, or suppliers Contractor shall indemnify and save harmless City and its officers and agents, from all losses, damages, costs, expenses, judgments, or decrees arising out of such action. XVII. OSHA, HEALTH, AND ENVIRONMENTAL LAWS Contractor shall comply with the federal Occupation Safety and Health Act of 1970, as amended ("OSHA") and the regulations promulgated under the Act and with standards and regulations issued to implement these statutes from time to time. Contractor is also responsible for meeting all pertinent local, state, and federal health and environmental laws, regulations, and standards. va 11 a Ieftei WAMN0 18.1 Insurance Types and Limits. During the Term of this Agreement, Contractor shall maintain in full force and effect insurance coverage with the minimum limits as follows: (a) Commercial General Liability insurance for bodily injury, death, and property damage insuring against all claims, demands or actions relating to Contractor's performance of services pursuant to this Agreement, with a minimum combined single limit of not less than $1,000,000 per occurrence and not less than $2,000;000 aggregate, for injury to persons (including death), and for property damage via blanket form endorsement; (b) Automobile liability insurance with not less than $1,000,000 combined single limit, covering any vehicles owned and/or operated by Contractor, its officers, agents, and employees, and used in the performance of this Agreement via blanket form endorsement; and Page 37 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS (c) Statutory Worker's Compensation Insurance or equivalent or other State -approved program covering all of Contractor's employees involved in the provision of services under this Agreement All insurance companies providing the required insurance shall either be authorized to transact business in Texas and rated at least "A" by AM Best or other equivalent rating service or approved by the City Manager. Provided Contractor maintains at least the types of coverage and minimum coverage limits described above, Contractor shall secure and maintain throughout the Term of this Agreement insurance of such types and in such amounts as may be necessary to protect itself and the interest of City against all hazards or risks of loss as hereinafter specified. It shall be the responsibility of the Contractor to maintain adequate insurance coverage at all times. Failure of the Contractor to maintain adequate coverage shall not relieve Contractor of any contractual responsibility or obligation. 18.2 Required Endorsements. All insurance and certificate(s) of insurance shall be endorsed to contain the following: (a) Name City, its officers, agents, and employees as additional insureds as to all applicable coverage with the exception of Workers Compensation Insurance; (b) Provide for a waiver of subrogation against City for injuries, including death, property damage, or any other loss to the extent the same is covered by the proceeds of insurance; and (c) No insurance policy shall not be canceled, non -renewed, or coverage thereunder reduced unless City has received notice of cancellation, non -renewal, or reduction in coverage, in each such case (except for notice of cancellation due to non- payment of premiums) such notice to be sent to City not later than thirty (30) calendar days (or the maximum period of calendar days permitted under applicable law, if less than thirty (30) calendar days) prior to the effective date of such cancellation, non -renewal, or reduction in coverage, as applicable. If any insurance policy required to be carried by or on behalf of Contractor pursuant to this Agreement is to be canceled due to non-payment of premiums, the requirements of the preceding sentence shall apply except that the notice shall be sent to City on the earliest possible date but in no event less than ten (10) calendar days prior to the effective date of such cancellation. A certificate of insurance evidencing the required insurance shall be submitted to City prior to the Commencement Date and not later than thirty (30) days prior to the commencement of the Extension Term. Contractor shall deliver to City a performance bond in the amount equal to one hundred Page 38 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS percent (100%) of the annual value of the Agreement, executed by a good and sufficient corporate surety eligible to conduct business in Texas, and conditioned that Contractor shall well, truly, and faithfully perform its obligations under this Agreement and shall satisfy all claims and demands of any kind incurred under the Agreement, including, but not limited to, the payment of all amounts owed by Contractor to City or landfills, and Contractor shall fully indemnify and save harmless City from all costs and damage which City may suffer by Contractor's failure to pay such amounts owed and shall reimburse and repay City all outlay and expense which City may incur in making good any such payment default, then the obligation shall be void; otherwise, to remain in full force and effect. Said performance bond will be renewed annually for the term of the Agreement. The performance bond shall be in a form reasonably acceptable to City. Contractor shall pay any and all premiums for the bond. A certificate from the surety showing that the bond premiums are paid in full shall be submitted to City on an annual basis for the Term of the Agreement. XX. INDEMNITY CONTRACTOR AGREES TO AND SHALL INDEMNIFY, DEFEND, AND HOLD CITY AND CITY'S ELECTED AND APPOINTED OFFICERS, EMPLOYEES, AND AGENTS(COLLECTIVELY, THE "CITY INDEMNITEES"), FREE AND HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, LIABILITIES, DEMANDS, LOSSES, DAMAGES, COSTS OR EXPENSE OF ALL TYPES TO ANY PERSON OR ENTITY (INCLUDING, BUT NOT LIMITED TO, ALL CLAIMS FOR MONETARY DAMAGES, CLAIMS AT LAW, CLAIMS IN EQUITY, AND REASONABLE ATTORNEYS' FEES) TO THE EXTENT ARISING OUT OF, RESULTING FROM, OR OCCURRING IN CONNECTION WITH CONTRACTOR'S PERFORMANCE OF THE SERVICES UNDER THIS CONTRACT WHICH ARE CAUSED IN WHOLE OR IN PART BY ANY NEGLIGENT, STRICT LIABILITY OR OTHER WILLFUL MISCONDUCT OR VIOLATION OF LAW OF CONTRACTOR, ANY SUBCONTRACTOR OR SUPPLIER OF CONTRACTOR, THEIR RESPECTIVE AGENTS OR EMPLOYEES OR ANY OTHER PARTY FOR WHOM ANY OF THEM MAY BE LIABLE. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS CONTRACT, TO THE EXTENT THAT ANY EMPLOYEE OR CONTRACTOR ASSERTS A CLAIM AGAINST ONE OR MORE OF THE CITY INDEMNITEES THAT WOULD HAVE BEEN BARRED UNDER WORKERS' COMPENSATION INSURANCE, CONTRACTOR SHALL BE SOLELY RESPONSIBLE FOR AND SHALL DEFEND, INDEMNIFY AND HOLD THE CITY INDEMNITEE(S) FREE AND HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, LIABILITIES, DEMANDS, LOSSES, DAMAGES, COSTS OR EXPENSE FOR ANY SUCH CLAIMS NOTWITHSTANDING THE FACT THAT CONTRACTOR IS A NON -SUBSCRIBER TO WORKERS' COMPENSATION INSURANCE IN THE STATE OF TEXAS. THE INDEMNITY AND HOLD HARMLESS PROVISIONS OF THIS CONTRACT SHALL ALSO APPLY TO CLAIMS ARISING FROM ACCIDENTS TO CONTRACTOR, ITS AGENTS, OR EMPLOYEES, WHETHER OCCASIONED BY CONTRACTOR OR ITS EMPLOYEES. IN THE EVENT OF JOINT OR CONCURRENT NEGLIGENCE OF BOTH CONTRACTOR AND ONE OR MORE OF THE CITY INDEMNITEES, RESPONSIBILITY, IF ANY, SHALL BE APPORTIONED COMPARATIVELY IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT, HOWEVER, WAIVING ANY GOVERNMENTAL IMMUNITY AVAILABLE TO CONTRACTOR OR CITY UNDER TEXAS LAW, IT BEING THE INTENT THAT CITY Page 39 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO, TEXAS SHALL BE RESPONSIBLE FOR THE NEGLIGENCE APPORTIONED TO THE CITY (INDEMNITEE(S) AND CONTRACTOR SHALL HAVE NO INDEMNIFICATION OBLIGATIONS UNDER THIS CONTRACT TO THE EXTENT OF THE CITY INDEMNITEE'S NEGLIGENCE. CONTRACTOR'S INDEMNIFICATION OBLIGATION PURSUANT TO THIS ARTICLE XVII SHALL NOT BE LIMITED IN ANY WAY BY ANY LIMITATION ON THE AMOUNT OR TYPE OF DAMAGES, COMPENSATION OR BENEFITS PAYABLE UNDER THE WORKERS' OR WORKMEN'S COMPENSATION ACTS, DISABILITY ACTS OR OTHER EMPLOYEE BENEFIT ACTS OR TO THE LIMITS OF ANY INSURANCE COVERAGE. XXI. MISCELLANEOUS 21.1 Entire Agreement; Priority of Documents. This Agreement, along with the Agreement Documents, constitutes the sole and only agreement between the Parties and supersedes any prior understandings and/or written or oral agreements between the Parties with respect to this subject matter of this Agreement. Any irreconcilable conflict between or among any of the Agreement Documents shall be resolved in the following order ofpriority from first to last unless the provision in the lower priority Agreement Document indicates otherwise by use of the phrase "notwithstanding anything in the Agreement Documents to the contrary" or similar phrase: (i) this Agreement, including any subsequent amendments to this Agreement, (ii) the RFP 425-502-12; and (iii) Contractor's Response to the RFP. 21.2 Assignment. Contractor may not assign this Agreement without City's prior written consent. In the event of an assignment by Contractor to which City has consented, the assignee shall agree in writing with City to personally assume, perform, and be bound by all the covenants, and obligations contained in this Agreement. Notwithstanding the foregoing, Contractor may assign this Agreement upon written notice, but without the City's consent, to a parent company or any of Contractor's subsidiaries or to any person or entity who purchases any operations from Contractor, but only so long as such person or entity agrees to assume all of Contractor's obligations and liabilities regarding the performance of this Agreement. In addition, Contractor may make a collateral assignment of this Agreement to any lender as security for a loan made by a lender to Contractor without the consent of City. 21.3 Successors and Assigns. Subject to the provisions regarding assignment, this Agreement shall be binding on and inure to the benefit of the Parties to it and their respective successors and assigns. 21.4 Governing Law. The laws of the State of Texas shall govern this Agreement; and the venue for any action concerning this Agreement shall be in the state district courts of Denton County, Texas. The Parties agree to submit to the personal jurisdiction of said Court. 21.5 Amendments. This Agreement may be amended only by the written agreement of the Parties. 21.6 Severability. If any one or more of the provisions contained in this Agreement, inclusive of the Agreement Documents, shall for any reason be held to be invalid, illegal, or Page 40 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLrDWASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions, and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained in it. 21.7 Independent Contractor. All services to be performed by Contractor pursuant to this Agreement shall be in the capacity of an independent contractor, and not as an agent or employee of City. Contractor shall supervise the performance of its services and shall be entitled to control the manner and means by which its services are to be performed, subject to the terms of this Agreement. 21.8 Notice. Any notice required or permitted to be delivered hereunder may be sent by first- class mail or overnight courier to the address specified below, or to such other address as either Party may designate in writing, and shall be deemed received three (3) days after being placed in the U.S. mail, first-class postage prepaid or on the date of confirmed delivery by overnight courier as evidenced on the receipt therefor: If intended for City: City Manager City of Cibolo, TX 200 S Main St Cibolo, TX 78108 If intended for Contractor: Title: With Copy to: Director of Public Works City of Cibolo, Texas 200 S Main St. Cibolo, TX 78108 With Copy to: Title: Address: Address: 21.9 Counterparts. This Agreement may be executed by the Parties in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument. Each counterpart may consist of any number of copies hereof each signed by less than all, but together signed by all of the Parties. 21.10 Compliance with Federal, State & Local Laws. The Parties shall comply in the performance of Services under the terms of this Agreement with all applicable laws, ordinances and regulations, judicial decrees or administrative orders, ordinances, and codes of federal, state, and local governments, including all applicable federal clauses. 21.11 Force Maieure. No Party will be liable for any default or delay in the performance of its obligations under this Agreement, including any obligation of Contractor to pay liquidated damages pursuant to Sections 9.01 and 9.02, if and to the extent such default or delay is caused, directly or indirectly, by a Disaster Event, riots, civil disorders, acts of terrorism, Page 41 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIDOLo. TEXAS compliance with laws or governmental orders, inability to access a container, fires, inclement weather, acts of God, epidemic or pandemic, or any similar cause beyond the reasonable control of such Party, provided the non-performing Party is without fault in causing such default or delay. The non-performing Party agrees to provide written notice of the Force Majeure delay to the other Party as soon as possible but in no event later than 24 hours after the earlier of the Party's first knowledge of or the first occurrence of the Force Majeure and further agrees to use commercially reasonable efforts to recommence performance as soon as possible. 21.12. Proposal Representations. Contractor expressly acknowledges that City has entered this Agreement in express reliance on the truth of the statements and representations set forth in the Proposal (response to RFP) submitted to City by Contractor and agrees that the representations made by Contractor in the Proposal are true and correct as of the Effective Date. 21.13 Confidentiality Regarding Waste Material. Contractor has no confidentiality obligation with respect to any Waste Materials or Recyclable Materials collected pursuant to this Agreement. 21.14 No Waiver for Delay. The failure or delay on the part of either Party to exercise any right, power, privilege, or remedy under this Agreement shall not constitute a waiver thereof. No modification or waiver by either Party of any provision shall be deemed to have been made unless made in writing. Any waiver by a Party for one or more similar events shall not be construed to apply to any other events whether similar or not. 21.15 Effective Date. The Effective Date of this Agreement is the date upon which it is signed by the authorized representatives of both Parties (the "Effective Date"). 21.16 Non-discrimination. In the provision of services hereunder or the performance of this Agreement, Contractor shall not discriminate against any person because of race, sex, age, creed, color, religion, or national origin. 21.17 Compliance with Federal Immigration Laws. Contractor agrees at all times to comply with Federal Immigration laws with respect to employment and to make available during Contractor's regular business hours on request of City, employee documentation verifying an employee's status to be employed by an employer in the United States. Contractor agrees to verify current and future employee's status by utilizing the E -Verify internet- based system as operated by the United States Department of Homeland Security, or I-9 verification. 21.18 Statutory Verifications. Contractor verifies that: (a) To the extent this Agreement constitutes a contract for goods or services within the meaning of Section 2271.002 of the Texas Government Code, as amended, solely for purposes of compliance with Chapter 2270 of the Texas Government Code, and subject to applicable Federal law, the Consultant represents that neither the Consultant nor any wholly owned subsidiary, majority-owned subsidiary, parent company or affiliate of Consultant (i) boycotts Israel or (ii) will boycott Israel Page 42 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO. TEXAS through the term of this Agreement. The terms "boycotts Israel" and "boycott Israel" as used in this paragraph have the meanings assigned to the term "boycott Israel" in Section 808.001 of the Texas Government Code, as amended. (b) To the extent the Agreement constitutes a governmental contract within the meaning of Section 2252.151 of the Texas Governmental Code, as amended, solely for the purposes of compliance with Chapter 2252 of the Texas Governmental Code, and except to the extent otherwise required by applicable federal law, Consultant represents that the Consultant nor any wholly owned subsidiary, majority-owned subsidiary, parent company or affiliate of Consultant is a company listed by the Texas Comptroller Public Accounts under Sections 2270.020 1, or 2252.153 of the Texas Government Code. (c) The Consultant hereby verifies that it and its parent's company, wholly or majority- owned subsidiaries, and other affiliates, if any, do not boycott energy companies and will not boycott energy companies during the term of the Agreement. The foregoing verification is made solely to comply with Section 2274.002, Texas Government Code, and to the extent such section is not inconsistent with a governmental entity's constitutional or statutory duties related to the issuance, incurrence, or management of debt obligations or the deposit, custody, management, borrowing or investment of funds. As used in the foregoing verification, "boycott energy company" means, without an ordinary business purpose, refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm, or limit commercial relations with a company because the company: (A) engages in the exploration, production, utilization, transportation, sale, ormanufacturing offossil- based energy and does not commit or pledge to meet environmental standards beyond federal and state law: or (B) does business with a company described as by the preceding statement in (A). (d) The Consultant hereby verifies that it and its parent company, wholly- or majority- owned subsidiaries, and other affiliates, if any, do not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association and will not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association during the term of this Agreement. The foregoing verification is made solely to comply with Section 2274.002, Texas Government Code. As used in the foregoing verification, "discriminate against a firearm entity or firearm trade association" means: (i) refuse to engage in the trade of any goods or services with the entity or association based solely on its status as a firearm entity or firearm trade association; (ii) refrain from continuing an existing business relationship with the entity or association based solely on its status as a firearm entity or firearm trade association; or (iii) terminate an existing business relationship with the entity or association based solely on its status as a firearm entity or firearm trade association; but does not include (a) the established policies of a merchant, retail seller, or platform that restrict or prohibit the listing or selling of ammunition, firearms, or firearm accessories; or (b) a company's refusal to engage in the trade of any goods or services, decision to refrain from continuing an existing business relationship, or Page 43 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIROLO. TEXAS decision to terminate an existing business relationship to comply with federal, state, or local law, policy, or regulations or a directive by a regulatory agency; or for any traditional business reason that is specific to the customer or potential customer and not based solely on an entity's or association's status as a firearm entity or firearm trade association. 21.19 Form 1295. In compliance with the State of Texas Government Code, Section 2252.908, if applicable, the City requires that Contractor must complete the online Form 1295 — "Certificate of Interested Parties" — and must provide a signed and notarized printed copy of the form and a separate certification of filing. The form can be found at www.ethics.state.tx.us. Form 1295 is also required for any and all contract amendments, extensions, or renewals. Prior to execution of this Agreement and any payment to Contractor hereunder, Contractor shall provide proof of submission to the City Secretary that the appropriate Form 1295 documentation has been submitted. Signatures on Following Page Page 44 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO, TEXAS SIGNED AND AGREED on CITY OF CIBOLO, TEXAS APPROVED AS TO FORM AND LEGALITY: City Attorney By: Wayne Reed, City Manager ATTEST: Bv: Peggy Cimics, City Secretary SIGNED AND AGREED on 2025. 2025. WASTE CONNECTIONS OF TEXAS, LLC By: Print Name: Title: ATTEST: By: _ Name: Title: Exhibits: A. Base Rates B. City Facilities Page 45 of 47 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO, TEXAS Exhibit A Base Rates for July 28, 2025 — July 31, 2026 — Per Section 3.1 Residential Service Single Cart Service Service Includes: 1 - 95 gallon Solid Waste Cart (Serviced Weekly), I - 95 gallon Recycle Cart (Serviced Every Other Week) 3 Cubic Yard Bulk Pickup (Serviced Every Other Week) Weekly Recycle Service (Optional) Household Hazardous Waste at home pickup (Optional) Additional 95 gallon Solid Waste Cart Additional 95 gallon Recycle Cart Holiday Special Collection (two additional Municipal Solid Waste Collections in late December and early January) Unusual Accumulation Waste Collection To be calculated using 0.05% of homes - at 15 minutes each and 3yds/collection, to be determined by estimated time not portal to portal. Rate per hour for vehicle (any type) and Crew Disposal fee per yard collected (not per ton) Small Commercial $ 17.77 $ 0.63 $ 1.50 $ 7.45 $ 3.00 $ 0.00 Case-by-case $ 200.00 $ 50.00 One 95 -gallon Solid Waste Cart 1 x week $ 28.00 One 95 -gallon Solid Waste Cart 2 x week $ 40.00 One 95 -gallon Solid Waste Cart 3 x week $ 56.00 Due to potential safety concerns related to a commercial site or concerns for security of provider's equipment/property, provider may provide multiple carts in lieu of a front load container. Customer will be charged for the front load equivalent (2 carts equal I yard) rather than for each individual cart, if lower. A-1 FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CIBOLO, TEXAS Exhibit A Base Rates for July 28, 2025 - July 31, 2026 - Per Section 3.1 Commercial Front Load Times serviced weekly Ix 2x 3x 4x 5x 6x Uu 2yard $91.10 $129.73 $168.36 $206.98 $245.65 $284.34 $55.00 3 yard $102.54 $147.87 $193.20 $238.53 $283.85 $329.18 $65.00 4 yard $116.16 $168.19 $220.21 $272.24 $324.25 $376.28 $75.00 6 yard $139.29 $204.71 $270.13 $335.54 $400.96 $466.37 $85.00 8 yard $165.12 $244.07 $322.73 $401.54 $480.35 $559.17 $85.00 Recycle -6Yard $132.20 $194.30 $256.39 $318.48 $380.58 $442.40 $85.00 Casters (per month, per container) $ 15.00 Locks (per collection, per container) $ 10.00 Delivery Daily Rental Haul Rate Enclosures (per collections, per container) $ 5.00 121.00 $ 5.00 Overage (per yard) $ 35.00 $ 55.00 $ Emergency or Disaster Management $ 5.00 $ 375.00 Rate per hour for Roll Off truck and $ 200.00 $ 123.00 $ Container $ 395.00 $ 55.00 Rate per hour for Grapple Truck $ 200.00 Rate per hour for Rear Load Truck and Crew $ 250.00 Disposal Fee per ton collected $ 60.00 ROLL -OFF CONTAINERS Temporary - Roll -Off Relocate/Block Fee 20 yard 30 yard 40 yard Permanent - Roll -Off Relocate/Block Fee 20 yard 30 yard 40 yard Roll -Off- Compactor Wash Out Fee 30 yd SC** 35 yd SC** 40yd Receiving Container*** Overage (per ton) $ 80.00 M $ 75.00 Delivery Daily Rental Haul Rate Disposal /ton $ 121.00 $ 5.00- $ 355.00 $ 55.00 $ 122.00 $ 5.00 $ 375.00 $ 55.00 $ 123.00 $ 5.00 $ 395.00 $ 55.00 $ 75.00 Delivery Daily Rental Haul Rate Disposal /ton $ 121.00 $ 5.00 $ 355.00 $ 55.00 $ 122.00 $ 5.00 $ 375.00 $ 55.00 $ 123.00 $ 5.00 $ 395.00 $ 55.00 $ 250.00 Monthly Rental Haul Rate Disposal Ron $ 550.00 $ 525.00 $ 55.00 $ 550.00 $ 535.00 $ 55.00 $ 250.00 $ 545.00 $ 55.00 $ 80.00 M FRANCHISE AGREEMENT FOR THE COLLECTION, TRANSPORTATION, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RECYCLABLE MATERIALS: CITY OF CI IOLO. TEXAS Exhibit B City Facility Service at No Charge Per Section 8.5, the Contractor shall provide containers and weekly collection of Municipal Solid Waste and recyclable Materials from the following municipal facilities. Buildin Address Service Frequency City Municipal Complex 00S. Main 200S * 10 -yard Garbage Front Load Twice Street- 8- yard Recycle Front Load Weekly Noble Group Complex 203 S. Main 10 -yard Garbage Front Load Twice 8- yard Recycle Front Load Street Weekly 108 Cibolo 2 -yard Garbage Front Load Twice Cibolo Animal Services Drive Weekly 4300 1 Twenty -yard Roll Off As Needed Future Cibolo Animal Haeckerville Twice Services Road 4 -yard Garbage Front Load Weekly City Hall Annex 201 Loop 539 2 - 95 Gallon Toter - Garbage Once . 95 Gallon Toter - Recycle Weekly Cibolo Fire Station #1 204 Loop 539 2 - 95 Gallon Toter - Garbage Once 95 Gallon Toter - Rec cle Weekl 3864 Cibolo 2 - 95 Gallon Toter - Garbage .Cibolo Fire Station 42 Valley Once Dr 95 Gallon Toter -Recycle Weekly 1842 Wiedner 2 - 95 Gallon Toter - Garbage Once Cibolo Fire Station #3 95 Gallon Toter - Recycle Road Weekly Cibolo Fire Station #4 1805 Bolton 2 - 95 Gallon Toter - Garbage Once 95 Gallon Toter - Recycle Road Weekly Cibolo Public Works 6- Yard Garbage Front Load Twice 6 -Yard Recycle Front Load 108 Cibolo Weekly Cibolo Public Drive 2 Forty -yard Rolloff Dumpsters As Needed Drainage Crrewew #100 Cibolo Public Works 4 Twenty Yard Rolloff Dumpsters 3 times monthl 4 Yard Garbage Front Load Twice. Niemietz Park 618 FM 78 6 Yard Garbage Front Load Weekly 6 Yard Garbage Front Load Twice 203 S. Main Weekly Cibolo Event Center Twice Street 6 -Yard Recycle Front Load Week Cibolofest 200 S Main 30 Yard Rolloff Dumpster Once A Street Year E