South Valley Disposal - 1970 Franchise Agreement
A G R E E MEN T
THIS AGREEMENT, made and entered into this
1st day of
January, 1970, by and between the CITY OF GILROY, a municipal
corporation, in the County of Santa Clara, State of California,
hereinafter designated as "City", Party of the First Part, and
SOUTH VALLEY REFUSE DISPOSAL, INC., a California corporation,
Party of the Second Part, hereinafter sometimes designated as
"Contractor"
,
WIT N E SSE T H:
THAT whereas the parties hereto have heretofore entered
into an agreement or contract by the provisions of which the
party of the second part has the exclusive right, privilege,
franchise and obligation to collect, transport and dispose of
the garbage and refuse produced in the City of Gilroy; and
WHEREAS, the said agreement expired on the 12th day of
December, 1969, and the parties hereto desire to renew the said
agreement as of that date and provide for the mutual rights and
obligations of the parties hereto thereunder; and
WHEREAS, the Contractor has requested an increase in
the rates as fixed by the ordinances of the City of Gilroy
which it can charge for making the aforesaid collections and
the City is agreeable to the increase as hereinafter provided
and which will be established by an amendment to the present
garbage collection ordinance of the City,
NOW THEREFORE, IT IS AGREED by and between the parties
hereto as follows:
1. That the said Contractor shall have and is hereby
given the exclusive right, privilege and franchise of collecting
the garbage and refuse as the said terms are defined in
Section 12.1 of the Gilroy City Code, and all offal and debris,
produced and accumulated, for the period of five (5) years
from and after the 12th day of December, 1969, subject to the
right of the City to terminate the said rights of the
Contractor for breach of this agreement as hereinafter provided.
2. That the Contractor agrees to use its best endeavors
to make collection of the said garbage and refuse in accordance
with the provisions of Articles 1 and 2 of Chapter 12 of the
Gilroy City Code, and to perform the obligation of making the
said collection diligently and systematically, and to provide
the necessary equipment therefor.
3. The rates to be charged by the Contractor for making
the said collections of garbage and refuse, including garden
refuse, shall be as fixed by the ordinances of the City of
Gilroy, the applicable parts of which, by reference, are hereby
made a part of this agreement.
4. The Contractor, without any cost to the City for such
use, shall dispose of the garbage and refuse collected under the
provisions of this agreement in the dump area owned by it,
east of the Pacheco Pass Road opposite the intersection therewith
of Bloomfield Avenue, except during such periods as weather
conditions may prohibit, and during such periods the Contractor
may deposit said garbage and refuse on the City Dump formerly
used by the Contractor. In the event the Contractor desires to
sell the said new dump site during its useful life, the City
shall have and is hereby given the option of purchasing the same
for the same price and under the same terms and conditions it
is willing to accept from anyone else.
5. The Contractor further agrees to maintain the City
Dump area in good order and provide necessary equipment for
burial or other proper disposal of garbage, rubbish and refuse
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at the City Dump.
6. The Contractor also agrees, as a part of the
consideration for the awarding to it of the right, franchise
and privilege for collecting garbage in the City of Gilroy, to
collect for the City of Gilroy without any charge, refuse from
the City premises, buildings and installations, including the
Library, the City Parks, the City garbage cans, if any, along
City streets, the municipal buildings, and the City Hall Building.
The Contractor shall also collect and dispose of all refuse,
rags, solids, and rubbish from the City sewer line screenings
at the Sewer Farm property.
monthly
7. It is agreed that the/charges to be made by the
Contractor for the collections shall be as follows:
1. Rate for one (1) can service per week:
a. For residences, including garden refuse:
1970 1971 1972 1973 1974
$2.15 $2.25 $2.35 $2.45 $2.55
b. For businesses:
1970
$1:65
1971
$T:75
1972
~5
1973
$t9.5
1974
~5
2. Rate for each additional can:
1970 - 1974, $1.00 per can.
3. Bin rates for 5 year period:
1970 1971 1972 1973 1974
2 yard bin $17.33 $18.20 $19.11 ~07 $21.07
3 yard bin 24.99 26.24 27.55 28.93 30.38
4 yard bin 33.60 35.28 37.04 38.89 40.83
6 yard bin 48.93 51.38 53.95 56.65 59.48
4. City Dump Charges:
City will dump all of its materials that will
mulch (primarily leaves) in the area in front of
the existing dump. For any large amount of
materials dumped in the fill and cover hole
(excavated at Contractor's expense), City shall
pay the charge of 25~ per yard. This is intended
to help defray a portion of contractor's
equipment expenses.
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In consideration of the said rate increases, the
Contractor agrees that there shall be no request for increases
during the term of this contract.
8. The parties hereto do further agree that City shall
make the collections for the garbage, refuse and rubbish
disposal services performed by the Contractor, and as a part
of the City's collection system it shall bill monthly as a
separate item on the usual City's water bill or statement a
charge for all garbage, refuse and rubbish services performed
by the Contractor, and as the garbage, refuse and rubbish
service collections are received by the City it shall deposit
the same with other City funds and by the 10th day of each month
issue its check to the Contractor for all money collected for
the garbage collection service during the previous month.
9. The Contractor further agrees that on or before the
10th of each month, it will pay to the City ten (10%) percent of
all collections made by said City during the previous month for
said garbage collections made by the Contractor. It further
agrees that it will inform the Collection Division of the Depart-
. ment of Finance of the City of all billings for special customer
services performed by the Contractor prior to the 20th day of
the month so that these may be billed by the 1st of the
following month, and call at the City administrative offices
daily to obtain information on requests for garbage disposal
service or discontinuances thereof. The Contractor shall
furthermore investigate all complaints on garbage refuse and
other collection service and inform the Collection Division of
the City of the disposition of each complaint.
10. It is agreed that the City will not be held respon-
sible for any unpaid accounts for the garbage, refuse and
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other collection services rendered by the party of the second
part.
11. It is further understood and agreed, with reference
to the collection and disposal of garden refuse within the City
of Gilroy, as the same is provided for in Article 2 of Chapter 12
of the Gilroy City Code, as follows:
The Contractor agrees to:
1. Pick up and dispose of weekly all garden refuse
within the City limits of the City of Gilroy.
2. Establish routes for weekly pickup of the garden
refuse.
3. Inform each owner or tenant of the premises of
the day of the week the garden refuse of said
premises will be picked up.
4. Direct the placing of garden refuse by each
owner or tenant of the premises for the most
convenient pickup by the Contractor.
12. Should the Contractor fail, refuse or neglect to
provide satisfactory service or equipment in the making of the
garbage and refuse collections provided for in this agreement,
the City may, at its option, terminate this agreement, after
giving thirty (30) days' notice.
13. Upon the condition that the Contractor is not in
default in the performance of any conditions or provision of
this agreement binding upon it, it shall have and is hereby
given the option of extending this agreement for an additional
period of five (5) years after the termination of this
agreement, and for a second period of five years after the
expiration of the first option. Written notice of the intention
or desire of the party of the second part to exercise either
option shall be given to the City at least 180 days before the
expiration of the agreement then in effect.
14. The Contractor agrees that it will not transfer any
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right or privilege arising out of this agreement or its interest
in the agreement nor will any party transfer his interest
therein,without written consent of the City being first obtained.
15. The Contractor agrees to carry, during the life of
this agreement, public liability and property damage insurance
in the limits of $150,000-$300,000 and $25,000, respectively,
with both types of insurance protecting the City of Gilroy as
well as the Contractor, and the Contractor further agrees to hold
the City of Gilroy harmless from any damage or claims for
damage arising out of the operations of the Contractor in
carrying out the provisions of this agreement or because of
non-performance by it of any obligation placed upon it by this
agreemen t.
16. In the event of a strike of Contractor's employees,
it is agreed that City personnel can be used to provide emergency
garbage service. During such period of emergency, the Contractor
shall pay to the City a sum equal to the payroll cost, including
all fringe benefits, of all City personnel so employed, plus
an additional ten (10%) percent thereof to defray administrative
costs.
17. It is understood and agreed that this present agree-
ment supercedes the agreements heretofore made between the City
and the Contractor relating to the collection and disposal of
garbage, debris and other matter to be collected by the Contractor
and that this agreement is intended to cover the full understand-
ing of the parties to the contract.
IN WITNESS WHEREOF, the parties hereto have hereunto set
their hands the day and year first above written.
PARTY OF THE FIRST PART:
CITY OF GILI~O~;
By:7~,t~~, / ,/
Mayor
PARTY OF THE SECOND PART:
SOUTH VALLEY REFUSE DISPOSAL, INC.
BY t _----r ~..~~.-k:-<_-{ /
~a~~/LY7
Sec eta '
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