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Ord. 2647 - Solid Waste Franchise COUNCIL BILL NO. 3301 ORDINANCE NO. 2647 AN ORDINANCE REGULATING SOLID WASTE MANAGEMENT INCLUDING, WITHOUT LIMITATION, GRANTING AN EXCLUSIVE SOLID WASTE FRANCHISE TO UNITED DISPOSAL SERVICE, INC., AN OREGON CORPORATION, dba REPUBLIC SERVICES OF MARION COUNTY - WOODBURN; ESTABLISHING SERVICE STANDARDS AND ESTABLISHING PUBLIC RESPONSIBILITY; REPEALING ORDINANCE 2554 AS AMENDED BY ORDINANCE 2635; PRESCRIBING PENALTIES; AND STATING AN EFFECTIVE DATE WHEREAS, Oregon Revised Statutes (ORS) Chapter 459 grants to the City of Woodburn ("City") the authority to regulate solid waste collection and mandates the development of a recycling program; and WHEREAS, the City desires to ensure efficient and comprehensive solid waste management and collection services are available to all residents, business and organizations within the City; and WHEREAS, the City council has determined that public health, safety, and well-being require an exclusive franchise be awarded to a qualified company for the collection, transportation, processing and disposal of solid waste, recyclables, yard debris, and food scraps; and WHEREAS, at the January 13, 2025, meeting of the City Council, a public hearing was held resulting in an extension of the existing franchise through February 26, 2026, in order to allow the existing Franchisee and the City time to negotiate an updated franchise agreement; and WHEREAS, at the May 11 , 2026, meeting of the City Council, a public hearing on this Franchise Agreement was held, resulting in a vote authorizing the City Manager to enter into this Franchise Agreement; NOW THEREFORE, THE CITY OF WOODBURN ORDAINS AS FOLLOWS: Section 1. Introduction. This Ordinance shall be known as the "Solid Waste Management Ordinance," hereinafter referred to as "this Ordinance." Section 2. Purpose & Goals. In order to protect the health, safety, and welfare of the people of the City of Woodburn, it is the public policy of the City of Woodburn to regulate and to provide a solid waste management program. This regulation will: Page 1 Council Bill No. 3301 Ordinance No. 2647 1 A. Ensure the safe and sanitary accumulation, storage, collection, transportation and disposal or resource recovery of solid wastes. Ensure that the community has an ongoing resource recovery and disposal service, and ensure that waste shed recycling goals are met. B. Promote technologically and economically feasible resource recovery including source separation, recycling and reuse, and separation by and through the collector. Research, develop and promote waste reduction strategies. C. Ensure efficient, economical, and comprehensive solid waste service. Maximize collection services to reduce the adverse environmental impacts of individual collection and disposal efforts. Minimize duplication of services or routes to conserve energy and material resources, to reduce air pollution and truck traffic, and to increase efficiency, thereby minimizing consumer cost, street wear, and public inconvenience. D. Protect and enhance the public health and the environment. E. Protect against improper and dangerous handling of hazardous and infectious wastes. F. Ensure service rates and charges that are just, reasonable, and adequate to provide necessary public services. G. Provide for charges to the users of solid waste services that are reasonable, equitable, and adequate to provide necessary service to the public, justify investment in solid waste management systems, and provide for equipment and systems modernization to meet environmental and community service requirements. H. Prohibit discrimination on the basis of race, color, creed, religion, sex, age, and national origin, source of income, political affiliation, disability, sexual orientation, or marital status. I. Work in cooperation with the City of Woodburn, Marion County, and local industries to reduce the quantity of waste produced, increase recycling, generate efficiencies, and conserve resources. J. Demonstrate a responsive, customer-service oriented business philosophy. Page 2 Council Bill No. 3301 Ordinance No. 2647 2 Section 3. Scope. The services defined, regulated, and authorized in this Ordinance are applicable only within the City limits of the City of Woodburn and all future annexations during the term of this Ordinance. Section 4. Definitions. A. For the purpose of the ordinance, the following terms shall have the following meaning: 1 . Allowable Expenses. Those expenses incurred by Franchisee of this Franchise that are allowed by the City as reimbursable by the Customer, as enumerated below. Allowable Expenses are allowable only to the extent that such expenses are known and measurable, calculated according to Generally Accepted Accounting Principles (GAAP) on an accrual basis, and comply with the Cost Allocation methodology contained within this Ordinance for the Franchisee's operations within the City, do not exceed the fair market value of comparable goods or services, and are commercially reasonable and prudently incurred by the Franchisee solely in the course of performing its obligations under the Franchise. See the definition for "Cost Allocation" regarding how certain overall costs are to be proportionally allocated. Excepting expressly unallowable costs as listed in subsection 56 below, Allowable Expenses include the following: a. Costs of complying with all laws, regulations, or orders applicable to the obligations of Franchisee under federal, state, or local law, including this Ordinance, as well as costs for financial reporting, accounting, and regulatory processes associated with or required by this Franchise or under law, as now or hereafter amended ; b. Costs of collection, transportation, transfer, and disposal, including tipping fees, excise taxes, and DEQ-imposed fees and taxes; c. Labor costs, including operational and supervisory labor, payroll taxes, workers' compensation, and benefits, as well as third-party transportation costs; d. Vehicle registration fees, motor fuel, oil, tires, repairs, and maintenance; e. New vehicle and equipment purchases, amortized according to applicable historical trends and Franchisee's fixed asset policy, excluding vehicles or equipment that are part of a pilot project or Page 3 Council Bill No. 3301 Ordinance No. 2647 3 experimental technology, except as otherwise authorized by City Council; f. Expenses of maintaining other capital assets, including rental charges and/or operating lease payments and repair and maintenance, including container maintenance and repair costs; g. Performance of bonds and insurance in at least the amounts and coverages required by the City; h. All administrative and management costs and expenses reasonably allocated for the Services required under this Franchise, including, but not limited to, compensation, management fees, and benefits for officers and employes, payroll taxes, data processing, billing, equipment or facility rental or lease costs, supplies, finance and accounting, administration, human resource and labor management, rate analysis, and regulatory compliance; i. Utilities; j. Training, worker safety, and employee development expenses; k. Depreciation and amortization of capital assets, including any necessary stand-by or back-up equipment used on a regular and ongoing basis in the provision of Services under this Franchise over standardized economic useful lives of the various assets; I. Outside professional fees and costs, limited to two percentage points of revenue, unless an extraordinary circumstance exists; m. Interest expense, other than interest paid with respect to route or Franchise acquisitions, that is not in excess of market rates ordinarily charged for the various types of financing required for purchases or leases; n. Direct write-off charges for bad debts; o. Franchise Fees assessed by the City; and p. Expenses relating to public education and outreach. Allowable Expenses, as defined above, shall be reasonable if they are comparable with the expenses incurred by similarly situated solid waste and recycling collection companies in Marion County, Oregon. If there is any disagreement or discrepancy regarding what is considered an "Allowable Expense" or"Unallowable Expense," or the amount of an "Allowable Expense," Franchisee and the City will work together Page 4 Council Bill No. 3301 Ordinance No. 2647 4 to resolve the discrepancy. If no resolution is reached, the parties will agree to mediate the discrepancy, in addition to any other legal or equitable remedies that may be available to the parties. 2. Annual Franchise Report. The report submitted by the Franchisee to the City concurrent with the Franchisee's submittal of information to the Marion County Cost of Service Analysis (COSA) process, but no later than June 30th of each year, as more particularly described in Section 15 herein. 3. Applicable Law. Any applicable law (whether statutory or common), including ordinances, regulations, rules, governmental orders, governmental decrees, judicial judgments, and requirements of any kind and nature promulgated or issued by any governmental authority claiming or having jurisdiction. 4. Bin. Container provided by Franchisee, used by customers for the containment and disposal of recyclable material. 5. Cart. Container provided by Franchisee, used by a customer for the containment and disposal of solid waste or recyclable material. The customer's use of a cart requires automated collection service. 6. City. The City of Woodburn, Oregon, and the area within its boundaries including its boundaries as extended in the future and all property owned by the City, outside City limits. 7. City Manager. The City Manager or his/her designee. 8. City Council. The Woodburn City Council which serves as the legislative body of the City. 9. Commercial. Stores, offices, including manufacturing and industry offices, restaurants, warehouses, schools, colleges, universities, hospitals, and other non-manufacturing entities. "Commercial" does not include other manufacturing activities or business, or processing activities in residential dwellings. 10.Compact and Compaction. The process of, or to engage in the shredding of material, or the manual or mechanical compression of material. Page 5 Council Bill No. 3301 Ordinance No. 2647 5 11 .Compensation. Consideration of any kind paid for solid waste management services, including but not limited to, the direct payment of money, including the proceeds from resource recovery or the provision of solid waste services to customers. 12.Container. Can, cart, bin, drop box, receptacle, or other vessel used for the disposal of solid waste, recyclable material or yard waste with food waste that has been approved by the City Manager and into which solid waste, recyclable material or yard debris with food waste may be placed for collection. 13.Cost of Service Analysis (COSA). A comprehensive evaluation of a waste management system's revenues and expenses used to determine the actual cost of providing specific services—such as collection, disposal, and recycling. The primary goal is to ensure that rates are set fairly and transparently, aligning customer charges with the true cost of service. This process may result in adjustments to the system's fee structure to promote equity and financial sustainability. As part of the analysis, service cost allocation is conducted to identify the cost of serving different customer classes (e.g., residential, commercial, industrial) and to equitably distribute costs across multiple jurisdictions served by the same provider. 14.Cost Allocation. The following allocation methodology will be used to determine certain Allowable Expenses attributable to Service rendered for the City: a. Operational cost: The Franchisee will perform an annual survey or report to calculate the time spent in each jurisdiction Franchisee services by Residential, Multifamily, and Commercial route. The annual total hours and total cost will be used to proportionately allocate Franchisee's overall operational costs, such as labor and benefits, fuel, oil, maintenance, vehicle and container leases, vehicle licenses, capital assets, utilities, and training, for Residential, Multifamily, and Commercial Service within the City (e.g., labor costs as an Allowable Expense should represent a proportionate share of Service within the City compared to Franchisee's services utilized by other cities and counties). b. Direct cost: The entire cost of Franchise Fees and other expenses directly related to Service within the City and that are not attributable to Franchisee's services Page 6 Council Bill No. 3301 Ordinance No. 2647 6 performed in other jurisdictions will be used to determine the Allowable Expenses attributable to Service rendered in the City. 15.CPI. The All Urban Consumers for West-Size Class B/C Consumer Price Index, as defined by the United States Bureau of Labor Statistics for the most recent twelve-month period reported by the Bureau as of September 1 for the applicable current year, rounded to the nearest hundredth percent, or other index that replaces this index. 16.Cure Period. The thirty (30) day period Franchisee has from date of Written Notice to correct any default pursuant to Section 18 of this Agreement. In the case of default by Franchisee, if Franchisee notifies the City that it cannot, in good faith, cure the default within the thirty (30) day Cure Period, then the City may elect to extend the cure period to an agreed upon time period. 17.Customer(s). Individuals, groups, businesses, corporations, or other recognized entities receiving Service from the Franchisee within the City. 18.DEQ. State of Oregon Department of Environmental Quality. 19.Dispose or Disposal. The accumulation, storage, discarding, collection, removal, transportation, recycling or resource recovery of solid waste. 20.Drop Box. A single container designed for storage and collection of large volumes of solid waste or wastes or recyclable materials, which is usually ten cubic yards or larger in size, and provides for transportation of large volumes of solid waste or recyclable materials and is transported to a disposal or processing site for transfer, landfilling, recycling, materials recovery or utilization and then emptied and returned to either its original location or to some other location. 21 .EPA. United States Environmental Protection Agency. 22.Extraordinary Rate Increases. Service Rate charged by Franchisee to its Customers sought to be increased by Franchisee under Section 8 of this Ordinance. Page 7 Council Bill No. 3301 Ordinance No. 2647 7 23.Franchise. A contract with the City allowing Franchisee to use any City-owned public right-of-way to collect, transport, process and dispose of Waste and to perform other responsibilities set out in this Ordinance. 24.Franchise Fee. The fee to be paid to the City by the Franchisee as set in Section 7 of this Ordinance. 25.Franchisee. The entity granted the Franchise by this Ordinance. This particular Franchisee referred to hereinafter in this Ordinance is UNITED DISPOSAL SERVICE, INC., AN OREGON CORPORATION, dba REPUBLIC SERVICES OF MARION COUNTY - WOODBURN. 26.Generator. The person who produces solid waste or recyclable material to be placed, or that is placed for collection and disposal. As used in this Ordinance, "generator" does not include any person who manages an intermediate function resulting in the alteration or compaction of the solid waste or recyclable material after it has been produced by the generator and placed for collection. 27.Gross Revenue. For any period of time: a. Gross accrual-based billings by the Franchisee to Customers for Services provided under this Franchise; and, b. The allocated gain on the sale of fixed assets, the depreciation or amortization from which was an Allowable Expense under the terms of this Ordinance, and refunds, sales proceeds, or other reimbursements for any other expense that was an Allowable Expense under this Ordinance. 28. Hazardous Waste. Includes, but is not limited to: a. Discarded, useless or unwanted materials or residues resulting from any substance or combination of substances intended for the purpose of defoliating plants or for the preventing, destroying, repelling or mitigating of insects, fungi, weeds, rodents or predatory animals, including but not limited to defoliants, desiccants, fungicides, herbicides, insecticides, nematocides and rodenticides. b. Residues resulting from any process of industry, manufacturing, trade or business or government or from Page 8 Council Bill No. 3301 Ordinance No. 2647 8 the development or recovery of any natural resources, if such residues are classified as hazardous by order of the Oregon Environmental Quality Commission, after notice and public hearing. For purposes of classification, the Oregon Environmental Quality Commission must find that the residue, because of its quantity, concentration, or physical, chemical or infectious characteristics may: i. Cause or significantly contribute to an increase in mortality or an increase in serious irreversible or incapacitating reversible illness; or ii. Pose a substantial present or potential hazard to human health or the environment when improperly treated, stored, transported, or disposed of, or otherwise managed. c. Discarded, useless or unwanted containers and receptacles used in the transportation, storage, use or application of the substances described in (a) and (b) of this subsection. d. To the extent not covered by the preceding subsections, any amount of waste listed or characterized as hazardous by the EPA or the State of Oregon pursuant to the Resource Conservation and Recovery Act and by any other applicable law, including but not limited to ORS Chapter 466. 29.Holidays. Legal holidays observed by the City of Woodburn. 30.Household Hazardous Waste. Any discarded or unwanted chemical, material, substance, or product that is or may be hazardous or toxic to the public or the environment, is commonly used around households and is generated by the household. 31 .Infectious Waste. Biological waste, cultures and stocks, pathological waste, and sharps, or as infectious waste is defined in ORS 459.386. 32.Mixed Recycling. The process where two or more types of recyclable materials are collected together (i.e., not separated) in a combination allowed by the City Manager, and as approved by the Oregon Department of Environmental Quality. Page 9 Council Bill No. 3301 Ordinance No. 2647 9 33.Multifamily. Any multi-dwelling building or group of buildings that contain five or more dwellings on a single lot. 34.Operating Margin. Gross Revenues minus Allowable Expenses within the applicable calendar year. For clarity, Franchisee may not include any Unallowable Expenses as "Allowable Expenses" when calculating its Operating Margin. 35.Organic Materials. Materials which can be biologically synthesized by plants or animals from simpler substances, are no longer suited for their intended purpose, and are readily broken down by biological processes into soil constituents. "Organic Materials" includes, but is not limited to, food waste, paper, and putrescible materials which are generally a source of food for bacteria. For Residential and Multifamily Customers, "Organic Materials" include Yard Debris; for Commercial Customers, "Organic Materials" do not include Yard Debris, Other Materials, Bulky Waste, tires, Infectious Waste, Unacceptable Waste, and Household Hazardous Waste. 36.Persons. Any individual, partnership, business, association, corporation, cooperative, trust, firm, estate, joint venture or other private entity or any public agency. 37.Pilot Program. A program which allows Franchisee to offer services on a trial basis for six months or less and to determine rates for such services outside the approved rate structure. City Council approval is required prior to implementation of a pilot program. 38.Placed for Collection. To put solid waste, recyclable material or yard debris with food waste out for collection by Franchisee, as provided by this Ordinance. 39.Public Place. Any City-owned Park, place, facility or grounds within the City that is open to the public, but does not include a street or bridge. 40.Public Rights-of-Way. Streets, roads, highways, bridges, alleys, sidewalks, trails, paths, park strips and all other public ways or areas, including subsurface and air space over these areas. Page 10 Council Bill No. 3301 Ordinance No. 2647 10 41 .Putrescible Material, means organic materials that can decompose, which may create foul-smelling, offensive odors or products. 42.Quarterly Franchise Fee Report. The report submitted by Franchisee to the City at the end of each quarter, as more particularly described in Section 15 of this Ordinance. 43.Recyclable Material, means any material or group of materials that can be collected and sold for recycling as defined by the Recycling Modernization Act (Senate Bill 582) and the Oregon Department of Environmental Quality. 44.Recycling. Any process by which solid waste is transformed into new or different products in such a manner that the original products may lose their original identity. As used in this Ordinance, recycling includes the collection, transportation and storage of solid waste, done in order to place the solid waste in the stream of commerce for recycling; or for resource recovery. 45.Residential. A single-family dwelling unit, duplex, triplex, or quadplex, an attached or detached Accessory Dwelling Unit (ADU), or any other residential dwelling unit constituting middle housing as defined by ORS 197A.420. 46.Resource Recovery. The process of obtaining useful material or energy resources from solid waste, including reuse, recycling, and other material recovery or energy recovery of or from solid wastes. 47.Service. The collection, transportation, storage, transfer, or disposal of or resource recovery from solid waste by Franchisee. It also includes, without limitation, collection or source-separated materials for compensation. "Service" includes the providing of "Special Service" as defined below. 48.Service Rates. The amount approved by the City Council for services rendered and charged by Franchisee, including the franchise fee, to users of the service as established and adjusted pursuant to Section 8 of this Ordinance. 49.Solid waste. All useless or discarded putrescible and non- putrescible materials, including but not limited to garbage, Page 11 Council Bill No. 3301 Ordinance No. 2647 11 rubbish, refuse, ashes, paper, and cardboard, sewage sludge, septic tank and cesspool pumpings or other sludge, useless or discarded commercial, industrial, demolition, and construction materials, discarded or abandoned vehicles or parts thereof, discarded home and industrial appliances, manure, vegetable or animal solid and semisolid materials, dead animals and infectious waste as defined in ORS 459.386. Solid waste does not include: a. Hazardous waste as defined in ORS 466.005; b. Materials used for fertilizer or other productive purposes or which are salvageable as such materials are used on land in agricultural operations and the growing or harvesting of crops and the raising of animals; c. Woody biomass that is combusted as a fuel by a facility that has obtained a permit described in ORS 468A.040. 50.Solid Waste Management. The business of collection, transportation, storage, treatment, utilization, processing, disposal, recycling and resource recovery of solid waste. 51 .Source Separation. The separation of waste materials by the generator in preparation for recovery by recycling or reuse. 52.Special Service. The collection of bulky waste, including furniture, appliances and large quantities of waste. 53.Total Source Separation. The complete separation by the source generator or producer of the waste by type or kind of waste from all other types or kinds of waste. 54.Train System. A group of small containers (typically 1-2 cubic yard capacity) placed in various locations around a customer's property, by the customer and once full, either linked together or placed upon a trailer for transport and disposal to a larger container or compactor on the premises. 55.Unacceptable Waste. Unacceptable waste means: (1 ) oils, fats, other liquids, and semi-solid wastes; (2) Hazardous Waste and household hazardous waste; and (3) any radioactive, volatile, corrosive, flammable, explosive, biomedical, biohazardous, or toxic wastes, pollutants or contaminants as defined by applicable law or any otherwise regulated waste. Page 12 Council Bill No. 3301 Ordinance No. 2647 12 56.Unallowable Expenses. Includes the following: a. All political contributions; b. Charitable expenses that are not expressly approved by the City as an Allowable Expense; c. Fines and penalties incurred by Franchisee, including, without limitation, judgments for violation of applicable laws; d. Payments for services provided by individuals related by blood or marriage or by affiliated companies to Franchisee to the extent that such payments exceed the reasonable cost that would be charged by an independent third party to provide the substantially equivalent service; e. Accruals for future unknown regulatory changes; f. Costs associated with purchase of other companies, including, but not limited to, employee stock ownership plan payments, goodwill, amortization of goodwill, and premiums on key-person life insurance policies; g. Principal or interest payments on the acquisition of any new service routes; h. The purchase of equipment and/or facilities to the extent of the portion of the price that reflects goodwill or a premium in excess of fair market value at the time of acquisition; i. State and federal income taxes, and any federal, state, local or other taxes or fees not expressly listed as an Allowable Expense; j. Fees paid to a Franchisee's Board of Directors; k. Attorney's fees and related expenses resulting from: i. Any judicial proceeding in which the City and Franchisee are adverse parties; ii. Any judicial proceeding in which Franchisee is ruled to be liable due to willful misconduct, gross negligence, or in violation of law or regulation; I. Operation of community access recycling depot not physically located or operated in conjunction with Franchisee's transfer station; m. Recycling operations expenses already calculated and incorporated into Franchisee's tipping fees; n. Costs or expenses incurred for providing service to another jurisdiction, or, when such costs or expenses are incurred for providing Service to multiple jurisdictions, any costs or expenses above the proportional share attributable to Service within the City; Page 13 Council Bill No. 3301 Ordinance No. 2647 13 o. Donated Services, including the "Woodburn Clean-Up Day" and any donated services provided to the City for City events such as the Fiesta Mexicana, except for Disposal costs associated with these Services; p. Any other expenses defined as "unallowable" and approved by mutual consent of Franchisee and the City. If there is any disagreement or discrepancy regarding what is considered an "Allowable Expense" or"Unallowable Expense," Franchisee and the City will work together to resolve the discrepancy. If no resolution is reached, the parties will agree to mediate the discrepancy, in addition to any other legal or equitable remedies which may be available to the parties. 57.Written Notice. Any notice provided in writing pursuant to this Ordinance. Any applicable time period begins to run the next day after personal delivery of the Written Notice or three (3) days after mailing of Written Notice. 58.Waste. Material that is no longer usable or that is no longer wanted by the source generator of the material, which material is to be utilized or disposed of by another person. For the purpose of this paragraph, "utilized" means the productive use of wastes through recycling, reuse, salvage, resource recovery, composting, energy recovery, or land filling for reclamation, habilitation or rehabilitation of land. "Waste" includes Solid Waste, Recyclable Materials, Other Materials, Organic Materials (and thus, food waste and Yard Debris), and Bulky Waste. Even though materials which would otherwise come within the definition of "waste" may from time to time have value and thus be resource-recovered does not remove them from this definition. Source-separated wastes are "wastes" within this definition. 59.Yard Debris With Food Waste. Grass clippings, leaves, tree and shrub prunings of no greater than four inches in diameter, or similar yard and garden vegetation. Breads/Grains, coffee grounds, tea bags, coffee filters, dairy products (no liquids), eggshells, bones, fruits/vegetables, meats/proteins, and seafood & shells can also be included. Some paper (paper napkins, paper towels, greasy pizza box). Yard debris with food waste Page 14 Council Bill No. 3301 Ordinance No. 2647 14 does not include dirt, sod, stumps, logs or tree/shrub prunings larger than four inches in diameter. Section 5. Franchise Award. A. Exclusive Franchise. Subject to the conditions and reservations contained in this ordinance, the City Council hereby grants to UNITED DISPOSAL SERVICE, INC., AN OREGON CORPORATION, dba REPUBLIC SERVICES OF MARION COUNTY - WOODBURN, the exclusive right, privilege, and franchise to collect, dispose, sell and transport solid waste and recyclable material generated as of the effective date of this ordinance within the corporate limits of the City of Woodburn and in any area that may thereafter be annexed to the City. B. Exceptions. Unless accepted by subsections below, or granted an exclusive franchise pursuant to this Ordinance, no person shall solicit customers for service, or advertise the providing of service, or provide service in the City. Nothing in this ordinance requires a franchise for the following: 1 . The collection, transportation and reuse of repairable or cleanable discards by a private charitable organization regularly engaged in such activity. 2. The collection, transportation, and reuse or recycling of totally source-separated materials or operation of a collection center for totally source-separated materials by a religious, charitable, benevolent or fraternal organization, provided the organization is using the activity for fund raising. Organizations engaged in these activities shall make periodic reports in a form as the City Manager may reasonably require. 3. The collection, transportation or redemption of returnable beverage containers under ORS Chapter 459A and that portion commonly known as the "Bottle Bill." 4. The generator or producer who transports and disposes of waste created as an incidental part of regularly carrying on the business of auto wrecking to the extent licensed by the state of Oregon. 5. The operation of a janitorial service; septic tank pumping, sludge collection or disposal service; or gardening or landscape maintenance service. "Janitorial service" does not include primarily collecting wastes generated by a property owner or occupant. Page 15 Council Bill No. 3301 Ordinance No. 2647 15 6. The transporting of Solid Waste generated by a Person to an authorized disposal site or Resource Recovery facility. The Solid Waste generated by a tenant, licensee, occupant, or Person other than the owner of the premises is generated by such Person, and not by the property owner (e.g., a tenant may dispose of the tenant's own Solid Waste, but an owner cannot dispose of the tenant's Solid Waste by any means other than the Franchisee's Service); 7. Contracting with a state or federal agency to provide service to such agency under a written contract with such agency. 8. A contractor registered under ORS Chapter 701 for hauling waste created in connection with the demolition, construction, or remodeling of a building structure or in connection with land clearing and development. Such waste shall be generated by the contractor in connection with the contractor's construction site and hauled in equipment owned by the contractor and operated by the contractor's employees. 9. Government employees providing solid waste and recycling collection services to City operations and facilities. Section 6. Franchise Term. A. This franchise ordinance and the rights and privileges granted herein shall take effect February 23, 2026, and remain in effect for a term of five (5) years. B. Upon an affirmative finding based on its annual review of the material submitted pursuant to Sections 8 and 15 of this Ordinance, at the end of the franchise term, the Council may extend the term of the franchise for one (1 ) subsequent term of up to five (5) years. C. The City Council may choose not to extend a franchise after five (5) years under this section for any reason. If the City Council chooses not to extend a franchise, at least six (6) months before the date that the franchise would otherwise expire, the City Council shall provide Franchisee with written notice of the City Council's intent not to extend the franchise. Franchisee shall have thirty (30) days from the date of the notice to request a public hearing. If, following the public hearing, the City Council reaffirms the decision not to extend the franchise term, the franchise shall expire at the end of its existing term. Nothing in this subsection shall prevent a Franchisee from applying for a new franchise. Page 16 Council Bill No. 3301 Ordinance No. 2647 16 D. Prior to the issuance or extension of a franchise, the City Council shall provide notice and opportunity for public comment. E. If the City Manager determines service standards are not being met, the City Manager may re-open this franchise for renegotiation. F. The terms of the franchise must be unconditionally accepted by UNITED DISPOSAL SERVICE, INC., AN OREGON CORPORATION, d/b/a REPUBLIC SERVICES OF MARION COUNTY - WOODBURN in writing, and signed by an officer of the corporation within thirty (30) days after the date this ordinance is passed by the City. If UNITED DISPOSAL SERVICE, INC., AN OREGON CORPORATION, d/b/a REPUBLIC SERVICES OF MARION COUNTY - WOODBURN fails to do so, this ordinance shall be void. Section 7 - Franchise Fee A. Franchise Fee. In consideration of the rights and privileges granted by this ordinance, Franchisee shall pay to the City of Woodburn, five percent (5%) per annum of the Gross Revenue collected by the Franchisee for Service within the City. The Franchise Fee is an Allowable Expense and, as such, will be included in determining Franchisee's Operating Margin. 1 . If Franchisee is prohibited by state or federal law from paying a fee based on gross revenue or the City is prohibited by state or federal law from collecting such a fee, or if any legislation reduces the actual or projected amount of compensation collected in any given year, the City Manager may renegotiate the compensation section of this franchise agreement. 2. Franchisee shall not separately identify its franchise fee on billing statements to customers unless it separately identifies all costs which constitute five percent (5%) or more of the costs paid by the revenues received from customers. B. Franchise Fee Payment. The compensation required in this section shall be due quarterly, on or before the 30th day of the month following last business day of every quarter. Franchisee shall furnish with each payment a statement, executed by an officer of Franchisee, showing the amount of gross revenue of Franchisee within the City for the period covered by the payment computed on the basis as determined by this Section. There will be a reconciliation of final Gross Revenue on the quarterly report ending December 31 of each year for the prior calendar year. Page 17 Council Bill No. 3301 Ordinance No. 2647 17 C. Late Payments; Interest. Should Franchisee fail or neglect to make the quarterly payment on the payment date stated in Subsection B above, the City will provide written notice of failure of payment to Franchisee, either by personal delivery or certified mail. Franchisee will have ten (10) calendar days from the Written notice to remit payment to the City. If Franchisee fails to pay within the ten (10) calendar days, the City may charge interest retroactive to the payment due date, at a rate of twelve percent (12%) per annum, and may, at its option, either continue the Franchise in force and proceed by suit or action to collect the payment, but without waiving its right to collect earned Franchise payments and interest. D. Nothing contained in this franchise shall give Franchisee any credit against any ad valorum property tax levied against real or personal property within the City, or against any local improvement assessment or any business tax imposed on Franchisee, or against any charges imposed upon Franchisee including permit and inspections fees or reimbursement or indemnity paid to the City. Section 8 - Establishment and Modification of Service Rates A. Rates established by City Council are fixed rates and Franchisee shall not charge more or less than the fixed rate unless changed pursuant to the terms authorized in this Section. Franchisee shall not charge rates not in the rate schedule. B. Franchisee shall provide to the City Manager a copy of the published rate schedule which shall contain the rates and charges made for all its operations. The rate schedule shall be kept current. C. Rates for a given service must be established under the provisions of these guidelines before such service can be provided to customers unless services are being offered under a pilot program. If the City Manager determines Franchisee is providing services for a fee without following these guidelines, the City Manager may require Franchisee to continue providing such services at no charge to the customer until such time as the rates are approved as described under this Section. If rates are not subsequently approved, Franchisee may discontinue service and shall take full responsibility in explaining to customers as to why the service is no longer being provided. Page 18 Council Bill No. 3301 Ordinance No. 2647 18 D. Franchisee may not give any rate preference to any person, locality, or type of solid waste collected, transported, stored, disposed of or resource recovered. This Section shall not prohibit uniform classes of rates based on length of haul, time of haul, type or quantity of solid waste handled, and location of customers, so long as such rates are reasonably based on the cost of service and approved by City Council in the same manner as other rates. E. Service Rate Adjustment. The City Council reserves the right to examine the Rate Structure of Franchisee, to require specific services, and to approve rate changes which, in the discretion of the City Council, are reasonably required. It is the goal of Council to provide Franchisee with a target Operating Margin of ten percent (10%) of Gross Revenues, but no less than eight percent (8%) and no greater than twelve percent (12%). If, at any time during the term of this Franchise, the Franchisee believes that their operating margin will be less than 8% of Gross Revenues, then the Franchisee may request a rate adjustment. Such requests shall be made in writing to the City Manager or their designee at least ninety (90) days prior to the desired implementation date of the proposed rate change. In determining whether to approve a rate adjustment, City Council shall consider the following: 1 . The cost of service; 2. The anticipated increase in the cost of service; 3. The need for equipment replacement and the need for additional equipment to meet service needs, compliance with federal, state and local law, ordinances, or technological change; 4. The Franchisee's investment, the value of the business and the necessity that the franchisee have a reasonable rate of return; 5. The rates charged in other similarly sized cities for similar services in comparable service areas; 6. The public interest in assuring reasonable rates to enable the Franchisee to provide efficient and beneficial services to customers; 7. The local wage scales, cost of management facilities, landfill and dumping fee charges; 8. Any profit or cost savings resulting from recycling, and any additional costs resulting from recycling; 9. Any increase or decrease in the franchise fee; 10.Any other information Council determines is necessary to sufficiently review the rate adjustment request. Page 19 Council Bill No. 3301 Ordinance No. 2647 19 All rate adjustment requests shall be examined by Council in a public hearing, subject to applicable notice requirements and affording due process. All Council approved rate adjustments shall require thirty (30) days notice to customers prior to taking effect. 1 1 .The above information shall be based on Franchisee's year-end financial statements which shall include a statement of income and schedule of expenses for the previous three years and a forecast for the current year. Resources allocated from regional or national corporate offices or affiliates must be distributed to appropriate expense line items and must also be disclosed in a schedule describing total allocations in their distribution to individual expense line items. 12.The above information shall be considered preliminary and shall match the numbers submitted by Franchisee to the Marion County COSA process. Marion County shall verify the numbers submitted by Franchisee. Any Service Rate Adjustment shall be based upon the verified numbers provided by Marion County. 13.Franchisee will provide any relevant updates relating to operations and customer experience to the City during or before consideration of any Service Rate Adjustment. 14.The City has authority to commission reviews or analysis of Franchisee's Annual Franchise Reports and other documents supporting a Service Rate Adjustment to validate rate adjustment requests. The City has further authority to review Franchisee's books, records, and accounts to verify the accuracy of Franchise Fees paid to the City, Franchisee's Operating Margin, and/or any Extraordinary Rate Increases as provided in Sections 8 and 15 of this Ordinance. 15.Excepting an Extraordinary Rate Increase as outlined in this Section, rates shall be subject to review and change only one (1 ) time in a calendar year. The City Manager or designee must update the City's rate schedule to reflect any amendments to Service Rates. F. Extraordinary Rate Increase. In the event an extraordinary or unanticipated event, including a change in law, a change in disposal site, an adjustment to the disposal rate, or a mandate from a government entity to provide a new type of service, causes an increase greater than two percent (2%) in Franchisee's annual cost for Allowable Expenses, and is projected to decrease Franchisee's Operating Margin below eight percent (8%) of Gross Revenues, then Franchisee may submit a written request to the City Manager or designee for an Page 20 Council Bill No. 3301 Ordinance No. 2647 20 Extraordinary Rate Increase. The written request must include Franchisee's calculations, and supporting documentation, of the impact of the change. Any requested Extraordinary Rate Increase must be approved by Council through a resolution. Franchisee's request for approval of an Extraordinary Rate Increase shall not be unreasonably withheld or delayed so long as Franchisee's request meets the requirements of this Section. This Section is not to be construed as to require the City to accept that Franchisee's calculations are correct or to allow an Extraordinary Rate Increase if the City finds that Franchisee's request does not meet the requirements of this Section. The City may undertake any review of Franchisee's books, records, and accounts necessary to evaluate the validity of Franchisee's request for an Extraordinary Rate Increase. G. Nothing in this section prohibits Franchisee from volunteering services at a reduced cost for a civic, community, benevolent or charitable program. Cash or in-kind contributions to such organizations shall be the sole responsibility of Franchisee and shall not be a factor in determining rates or increase the total amounts paid by ratepayers for which Franchisee serves under this agreement and shall not reduce the total amount of revenue paid to the City. Contributions shall not be taken into consideration in the rate approval process. Section 9. Franchisee Responsibility. A. The Franchisee must collect the Solid Waste at the various residences, business establishments, and other places within the corporate limits of the City where such Service is required or requested and haul such Solid Waste from the City authorized by the most recent rate schedule approved by the Council. In so doing, the Franchisee shall abide by the Service Standards established in Section 11 of this Ordinance. Service provided under this Franchise is subject to the supervision of the City Manager or their designee. B. Service Interruption or Termination. The Franchisee shall not terminate service to any or all of its Customers served under this Franchise except in accordance with the provisions of this Ordinance. Service may be interrupted or terminated when: 1 . The street or road access is unavoidably blocked through no fault of the Franchisee and there is no reasonable alternate route to serve all or a portion of its Customers. In either event, the City will not be liable for any such blocked access; or Page 21 Council Bill No. 3301 Ordinance No. 2647 21 2. Adverse weather conditions render providing Service unduly hazardous to persons or equipment providing such Service or if such interruption or termination is caused by an act of God or a public enemy. Section 10. Sale, Transfer, Lease & Sub-Contract A. The Franchisee shall not: 1 . Sell, assign, transfer, lease or dispose of either in whole or in part, in any manner, nor shall title pass thereto, either legal or equitable, or any right, interest or property therein, pass to or vest in any person or entity without approval by Council as a result of a resolution passed by Council. The Council will approve the assignment or transfer if the new Franchisee meets all applicable requirements met by the original Franchisee. A pledge of this Franchise as security will not be considered a transfer or assignment for the purpose of this Section. a. Franchisee shall promptly notify the City of any actual or proposed change in, transfer of, or acquisition by any other party of control of the Franchisee. The word "control" as used herein is not limited to majority stockholders, but includes actual working control in whatever manner exercised. Every change, transfer or acquisition of control of the Franchisee shall make this Franchise subject to cancellation unless and until the City Council has consented thereto. b. The parties to the sale or transfer of this franchise agreement shall make a written request to the City Council for its approval and furnish all information reasonably required for City Council consideration. c. The City Council's approval shall be based upon the financial responsibility of the party whom the franchise is proposing for sale, assignment or transfer. In reviewing a request for sale or transfer, the City Council may inquire into the financial capability, technical ability, legal qualifications, demonstrated ability, and experience of the prospective controlling party or transferee to comply with the terms of the franchise as determined by the City, and must agree to comply with all provisions of the franchise agreement. d. The City shall be deemed to have approved the proposed transfer or assignment in the event that its Page 22 Council Bill No. 3301 Ordinance No. 2647 22 decision is not communicated in writing to the franchisee within (ninety) (90) days following receipt of written notice of the proposed transfer. e. Within thirty (30) days of any transfer or sale, if approved or deemed granted by the City Council, Franchisee shall file with the City a copy of the deed, agreement, lease, bill of sale, stock power or other written instrument evidencing such sale or transfer of ownership or control, certified and sworn to as correct by the Franchisee and the transferee. The City shall treat such instrument or other documentation as confidential, as permitted by applicable law, if Franchisee requests confidential treatment for any such document in writing. B. Subcontracts. The Franchisee may subcontract with others to provide specialized service or temporary service under this Ordinance only upon prior written consent of the City, which written consent will not be unreasonably withheld. Such subcontract will not relieve the Franchisee of total responsibility for compliance with this Ordinance. Section 11. Service Standards. A. City Authority. The City reserves the right to determine the services authorized by this franchise agreement. B. Separation of Waste. The City Council reserves the right to require the separation of component parts or materials in or from solid wastes, and to require the deposit thereof in containers or places and to prescribe the method of disposal or resource recovery. C. Collection Standards. Collection of solid waste and recyclable material shall be performed in such a way as to comply with all Federal, State and local environmental regulations. In so doing, Franchisee shall: 1 . Provide solid waste and recycling collection services to all persons living within or conducting business within the City limits by providing sufficient collection vehicles, containers, facilities, personnel, and finances necessary to provide all types of service. When necessary, and with prior approval from City Council, Franchisee may subcontract with others to provide certain types of specialized service in accordance with the provisions of this Ordinance. 2. Collect putrescible material at least once each week. Page 23 Council Bill No. 3301 Ordinance No. 2647 23 3. Perform collections twice weekly in the business districts of the City, except Sundays and holidays. Downtown business district collection hours are 4:30 am to 6:30 am. Collection hours shall be scheduled to minimize noise and disruption to residents in or near the downtown business district. 4. Perform curbside collections of solid waste at least once weekly in residential districts or as often as required by ORS 459 and ORS 459.A. Collection hours shall be between the hours of 6:00 am and 5:30 pm, Monday through Friday. All collections shall be made as safely, efficiently and quietly as possible. 5. Perform curbside collections of recyclable materials at least bi- weekly or as often as required by ORS 459 and ORS 459.A. Collection of recyclable materials shall be made subject to the same requirements and within the same hours as those made for solid waste. 6. Provide collection of residential solid waste carts recyclable materials, and yard debris with food waste carts on the same day of the week. Franchisee shall not go into garages or other buildings to make pick-ups at residences, nor shall Franchisee go into closed areas, through enclosed gates, or up or down stairs to make pick-ups. 7. Provide will-call service for container service for residential and commercial customers within forty-eight (48) hours of initial request for service. 8. Use due care to prevent solid waste from being spilled or scattered during collection. If any solid waste or recyclable material is spilled during collection, Franchisee shall promptly clean up all spilled materials. All cart and container lids must be replaced after contents are emptied and the cart or container shall be returned to its original position so as to not jeopardize the safety of motorist, pedestrians or bicyclists. Franchisee shall also collect any solid waste or recyclable materials that may have been spilled or scattered prior to collection, in the immediate area of carts. 9. Use reasonable care in handling all collection containers and enclosures. Damage caused by the negligence of Franchisee's employees to private property, including landscaping, is the responsibility of Franchisee and shall be promptly addressed with the property owner. 10.Ensure that all solid waste and recycling collection operations shall be conducted as quietly as possible and shall conform to applicable Federal, State, County and City noise emission standards. Unnecessarily noisy trucks or equipment are Page 24 Council Bill No. 3301 Ordinance No. 2647 24 prohibited. The City Manager may conduct random checks of noise emission levels to ensure such compliance. 11 .Determine, with approval of the City Manager, the maximum allowable capacity of carts or containers. If Franchisee refuses to service an overweight cart or container, a notice describing the problem must be provided. The notice shall include the name of Franchisee, employee, alternative solutions to resolve the problem and a local phone number for additional information. Franchisee must provide double the customer's subscribed service level at no additional charge on the customer's next scheduled collection day, if a special pick-up has not been requested in the meanwhile. If a special pick-up has been requested, Franchisee may charge the normal will-call rate. 12.Refuse specific residential collections, if access to a cart or container, is blocked by a vehicle. For the purposes of this section, "blocked"shall be defined as parked immediately in front of, or at the curb within ten feet to either side of such containers. If Franchisee refuses to service a cart or container for this reason, a notice describing the problem must be provided. The notice shall include the name of Franchisee, employee, reason for collection refusal, solution for resolving the problem and a local phone number for additional information. Franchisee must provide double the customer's subscribed service level at no additional charge on the customer's next scheduled collection day, if a special pick-up has not been requested in the meanwhile. If a special pick-up has been requested, Franchisee may charge the normal will-call rate. 13.Give a vacation credit for Customers who stop service for a minimum period of three (3) weeks and shall give up to four (4) vacation credits per calendar year. Vacation credits will not be applied to Multi-Family Customers or Commercial Customers. 14.Notify, in the event of permanent changes to the collection schedule, all affected customers within fourteen (14) calendar days of any change. Franchisee shall not permit any customer to go more than seven (7) calendar days without service in connection with a collection schedule change. 15.Have the option to limit acceptable methods of payment. Franchise must, however, at a minimum, accept cash, personal checks, cashiers checks, money orders, and bank drafts, and provide for online payment with a credit card. 16.Have the option to refuse collection service upon non-payment of a billing or portion of a billing after account becomes forty-five (45) days past due, or upon refusal to pay required advance Page 25 Council Bill No. 3301 Ordinance No. 2647 25 payments, delinquent charges, or charges associated with starting a new service. Franchisee may withhold collection services, providing at least a ten (10) day notice is given to subscriber. 17.Continue collection services except in situations beyond Franchisee's control, including street or road blockages, riots, terrorist attacks, compliance with applicable laws or governmental orders, inclement weather conditions, fires, floods, or other natural or man-made disasters. Adverse labor relations issues such as strikes or walk-outs shall be within the control of the Franchisee and shall not prevent collection and disposal services as required by this ordinance. 18.Franchisee shall dispose of solid waste in the nearest disposal site permitted by the Oregon Department of Environmental Quality unless extraordinary circumstances apply. City Council reserves the right to approve any disposal site used by Franchisee. 19.Have the right to refuse collection, storage, transport, disposal, or resource recovery of unacceptable waste, except as otherwise provided for in this ordinance. D. Recycling Standards. 1 . Franchisee shall aggressively seek markets for reusable, recyclable, and recoverable materials and purchase such materials from others. 2. Franchisee shall coordinate recycling efforts with other solid waste collection efforts in the Marion County Waste shed to further enhance recycling and recovery efforts and to meet waste shed recovery goals as mandated by the state. 3. The City Manager reserves the right to require specific materials to be separated, collected and recycled. 4. Franchisee shall provide other recycling services as required by Oregon Revised Statute 459.A, City Council, ordinance, or municipal code. 5. Franchisee shall recycle additional materials when economically feasible. 6. Recycling Services shall include the following: a. For residential customers with regular weekly solid waste service, provide on-route residential recycling service including one (1 ) 95-gallon roll cart, one (1 ) recycle bin, and one (1 ) 65-gallon yard debris with food waste cart. b. For customers in single-family households, the materials collected for recycling shall include all materials on the Uniform Statewide Collection List as approved by DEQ. Page 26 Council Bill No. 3301 Ordinance No. 2647 26 Recycling materials shall be picked up curbside once every other week on a designated collection day. Batteries, motor oil, cooking oil, latex paint, and anti- freeze, shall also be collected every other week, but shall be segregated from other recyclable materials in a bin provided by the Franchisee for that purpose. c. For apartments and other multi-family households and units requesting such service, the materials collected for recycling shall include all materials on the Uniform Statewide Collection List as approved by DEQ. Recycling materials in carts shall be collected once a week and recycling material in containers shall be collected up to three (3) times a week. Batteries, motor oil, cooking oil, latex paint, and anti-freeze, shall also be collected every other week, but shall be segregated from other recyclable materials in a bin provided by the Franchisee for that purpose. Materials shall be collected curbside or in a designated collection center in cooperation with the building owner or manager. d. Yard debris with food waste carts for residential customers shall be picked up weekly on the same day as solid waste collection. Yard debris with food waste must be disposed of at a compost/mulch facility registered with the Oregon Department of Environmental Quality. e. Recycling-only customers shall be offered bins and be provided biweekly recycling service at a rate established by the City Council. f. Commercial recycling service includes carts, recycle bins, and cardboard recycling containers and shall be provided at no additional charge. g. For commercial customers, the materials collected for recycling shall include all materials on the Uniform Statewide Collection List as approved by DEQ. Recycling material shall be collected once a week for carts and up to three (3) times a week for containers. Batteries, motor oil, cooking oil, latex paint, and anti-freeze, shall also be collected every other week, but shall be segregated from other recyclable materials in a bin provided by the Franchisee for that purpose. h. For large quantities of cardboard, the frequency of pickup-service shall be determined by agreement between the generator and the collector. Agreements shall give due consideration to the volume of the Page 27 Council Bill No. 3301 Ordinance No. 2647 27 material, storage capacity of generator, and generator's location. i. Franchisee must provide notice to customer if recyclable material placed at curbside is not collected due to improper preparation. Notice must include adequate explanation of refusal for collection, and local phone number for additional information. Franchisee shall leave notice securely attached to the customer's bin or the customer's front door. Franchisee shall collect any properly prepared material that is accessible. The purpose of the notice is to educate residents and increase program participation, and shall be written in such a manner as to accomplish this purpose. j. Franchisee shall operate and maintain at least one (1 ) collection center within the City limits that permits residents to deliver recyclables to the site. Collection center shall be open to the public between the hours of 8 am to 5 pm Monday through Friday, and 8 am to Noon on Saturdays. Said site shall accommodate at a minimum all recyclable materials collected at curbside, as well as scrap metal and other types of glass and plastic. Materials such as Styrofoam, textiles, and electronics shall be recycled when it is technologically or economically feasible to do so. k. Franchisee shall facilitate a reuse program referring useable items to local thrift shops, resale shops, non-profit groups or others who may have a legitimate use for the item. Maintain a list of businesses and groups that submit requests for needed items, and provide this information to others as requested. I. Franchisee shall Research and develop improved recycling and reuse systems. E. Public Education and Outreach Standards. Franchisee shall provide the following public education and promotion of activities for waste reduction, recycling, reuse, and source separation, and cooperate with other persons, companies, or local governments providing similar services. Franchisee shall: 1 . Provide a recycling information center within City limits, with local telephone access and information concerning collection schedules, recycling locations, recyclable material preparation, conservation measures, reuse programs, and waste reduction strategies. Recycling information booths at appropriate Page 28 Council Bill No. 3301 Ordinance No. 2647 28 community events shall also be provided by Franchisee to promote and increase recycling awareness and participation. 2. Provide recycling notification and educational packets for all new residential, commercial, and industrial collection service customers specifying the collection schedule, materials collected, proper material preparation, reuse programs, waste reduction strategies and recycling benefits. 3. Provide regular informational and promotional communications to all solid waste customers and City residents regarding collection services, schedules, and program updates. Communications shall include information about materials collected, waste reduction strategies, reuse opportunities, proper handling and disposal of special wastes, and notice of community solid waste events. Information shall be distributed using a variety of methods to ensure broad access, including digital or community outreach channels identified by the City and printed materials, as needed. 4. Maintain a website that allows customers to access information regarding franchised solid waste and recycling services and applicable rates charged for such services. 5. Perform waste audits for those commercial and industrial customers requesting one. 6. Coordinate with the Woodburn School District and local private schools to assist in promoting awareness of recycling and waste reduction strategies to children, and to cooperate with the district in their recycling efforts and programs. 7. Promote solid waste reduction and recycling education per ORS 459 and ORS 459A and provide for the opportunity to recycle in collaboration with the County and City. 8. Provide the City Manager with sufficient copies of all promotional fliers and other related information as requested. 9. Franchisee will make all reasonable efforts to participate in City sponsored outreach events when requested by the City and to conduct other educational outreach programs when requested by other organizations or persons. F. Community Service Standards. 1 . Franchisee shall, upon request from the City, provide for storm debris collection of tree limbs, leaves, and other storm detritus. Such requests by the City shall be limited to clean up activities that are necessary following a significant weather event or other unusual or extraordinary event or circumstance. Franchisee may charge a fee for such service. Page 29 Council Bill No. 3301 Ordinance No. 2647 29 2. Franchisee shall provide an annual residential cleanup, collecting scrap and recyclable material, yard debris and appliances, at no additional charge; however, Franchisee may charge, as a pass-through cost, the CFC evacuation fee on appliances. 3. Franchisee shall provide collection and recycling of holiday trees placed at curbside for a period of three (3) weeks, beginning December 26th of each year, at no additional charge. 4. Franchisee shall provide twice weekly solid waste collection and disposal service of public litter containers, in the central business district of the City, including the Woodburn Downtown Plaza, except holidays. 5. Franchisee shall provide once weekly solid waste collection and disposal service for all City accounts at no charge to the City. G. Additional Services. Where a new service or a substantial expansion of an existing service is proposed by the City Manager, another person, or the Franchisee, the following shall apply: 1 . If service is proposed by the City Manager, Franchisee shall receive prior written notice of the proposed service and justification by the City Manager. If service is proposed by Franchisee or another person, the City Manager must be notified in writing prior to any consideration by the City. 2. The City may hold a public hearing on the proposed service and justification. 3. In determining whether the service is needed, the City shall consider the public need for the service, the effect on rates for service and the impact on other services being provided or planned, the impact on any city, county or regional solid waste management plan, and compliance with any applicable statutes, ordinances or regulations. 4. If the City determines the service is needed, Franchisee shall have the option to provide the service on a temporary basis through a pilot program to determine if the service is functional on a permanent basis or Franchisee may agree to provide the service on a permanent basis within a specified time. 5. If Franchisee rejects the service, the City may issue a franchise or permit to another person or entity to provide only that service. The provider of the limited service shall comply with all applicable provisions of this ordinance. H. Special Service Equipment. If a customer requires an unusual service, and that service necessitates added or specialized equipment, Page 30 Council Bill No. 3301 Ordinance No. 2647 30 Franchisee may require a contract with the customer to finance and assure amortization of such equipment. The purpose of this subsection is to ensure that such excess or specialized equipment does not become a charge against other ratepayers. I. Equipment and Facility Standards. 1 . All equipment shall be kept well painted, and properly maintained in good condition. Vehicles and containers used to transport solid waste shall be kept clean to ensure no contamination to the environment or the City's storm water system. 2. All vehicles and other equipment shall be stored in a safe and secure facility in accordance with applicable zoning and environmental regulations. 3. Trucks shall be equipped with a leak proof metal body of the compactor type including front, rear, or automatic loading capabilities. 4. Pick-up trucks, open bed trucks or specially designed, motorized local collection vehicles used for the transporting of solid waste must have a leak proof metal body and an adequate cover over the container portion to prevent scattering of the load. 5. All fuel, oil, or vehicle fluid leaks or spills which result from Franchisee's vehicles must be cleaned up immediately. All vehicles must carry an acceptable absorbent material for use in the event of leaks or spills. Damages caused by fuel, oil, or other vehicle fluid leaks or spills from Franchisee's vehicles or equipment shall be at Franchisee's expense. 6. All vehicles used by Franchisee in providing solid waste and recycling collection services shall be registered with the Oregon Department of Motor Vehicles and shall meet or exceed all legal operating standards. In addition, the name of Franchisee, local telephone number and vehicle identification number shall be prominently displayed on all vehicles. 7. All collection vehicles shall not exceed safe loading requirements or maximum load limits as determined by the Oregon Department of Transportation. Franchisee shall endeavor to purchase and operate equipment that minimizes damage to City streets. 8. Franchisee shall provide and maintain equipment that meets all applicable laws, ordinances, municipal codes, and regulations or as directed by the City Manager. 9. Franchisee shall provide and replace as necessary, garbage collection carts, yard debris with food waste carts, and recycle Page 31 Council Bill No. 3301 Ordinance No. 2647 31 bins at no charge to the public. Cart sizes offered for solid waste disposal include 20, 32, 65, and 90 gallon capacity. Yard debris with food waste carts shall be 65-gallon capacity. Recycle carts are 95-gallon capacity. Solid waste, yard debris with food waste, and recycling carts shall be leak-proof, rigid, and of rodent proof construction and not subject to cracking or splitting. The City Manager has the right to approve all containers provided by Franchisee for use in the City and may require additional or alternative container sizes. Customers may, at their election, change their cart size once each calendar year at no cost. For each subsequent change within the same calendar year, Franchisee may charge a fee, to recover the administrative costs of such change, as approved by the City Council. 10.Franchisee shall clean containers used by commercial customers once annually if requested by customer for no additional charge. If Franchisee determines such containers are becoming a health hazard, requiring more frequent cleaning, such service shall be an additional maintenance charge to the waste producer or generator. 11 .In cooperation with the Woodburn Police Department, Franchisee shall remove graffiti from all containers or facilities within ten (10) business days of the time Franchisee is notified of such need. Notification may be verbal, or in writing. 12.All surface areas around Franchisee's site facilities including vehicle and equipment storage areas, service shops, wash stations, transfer sites, collection centers, and administrative offices must be kept clean to eliminate direct site run-off into the City's storm water and open drainage system. J. Safety Standards. 1 . Franchisee shall operate within guidelines of the Oregon Refuse and Recycling Association, Oregon Department of Transportation, Oregon Public Utility Commission, Oregon Occupational Health and Safety Administration, Department of Environmental Quality, Woodburn Municipal Code and all other rules and regulations as they apply. 2. Franchisee shall provide suitable operational and safety training for all of its employees who maintain, use, or operate vehicles, equipment, or facilities for collection of waste or who are otherwise directly involved in such collection. Employees involved in collection services shall be trained to identify, and not to collect, unacceptable waste. Employees who do handle such unacceptable waste shall be properly trained. Page 32 Council Bill No. 3301 Ordinance No. 2647 32 K. Right of Way Standards. Franchisee shall ensure proper and safe use of public right-of-ways and provide compensation to the City in consideration of the grant of authority to operate a solid waste collection and disposal system in the City of Woodburn as directed by this Agreement. L. Customer Service Standards. Franchisee shall: 1 . Provide sufficient collection vehicles, carts, bins, containers, drop boxes, facilities, personnel, and finances, to provide the services set forth in this franchise agreement. 2. Sufficiently staff, operate and maintain a business office and operations facility within the City. 3. Establish minimum office hours of 8:00 am through 5:00 pm, Monday through Friday, not including holidays. 4. Ensure a responsive, customer service oriented business. Provide customers with a local telephone number, listed in a local directory, to a business office. Adequately staff operations to provide prompt response to customer service requests or inquiries and respond promptly and effectively to any complaint regarding service. Calls received by 1 :00 pm by office staff shall be returned the same business day as call received, and by noon of the following business day if call is received after 1 :00 pm. Franchisee shall promptly respond to all written complaints about service or rates. 5. Train collection crews prior to their beginning solid waste and recycling collection, and office staff prior to having public contact. The scope of the training shall include, but is not limited to, acceptable safety practices, acceptable standards of service to the public, courteous customer service, and accuracy and completeness of information. 6. Require all employees of Franchisee and all employees of persons under contract with Franchisee under this franchise agreement to present a neat appearance and conduct themselves in a courteous manner. Franchisee shall require its drivers and all other employees who come into contact with the public, to wear suitable and acceptable attire that identifies Franchisee. 7. Designate at least one (1 ) qualified employee as supervisor of field operations. The supervisor shall devote an adequate portion of his/her workday in the field checking on collection operations, including responding to issues. Page 33 Council Bill No. 3301 Ordinance No. 2647 33 8. Maintain a written log of all oral and written complaints or service issues registered with Franchisee from customers within the City. Franchisee shall record the name and address of complainant, date and time of issue, nature of issue, and date of resolution. The City Manager or their designee may require more immediate reports documenting complaints and resolutions. Section 12. Public Responsibility. A. Removal of Solid Waste Prohibited. No Person, except the immediate generator of solid waste, may remove any product placed in a cart, container, drop box, or other receptacle, except to the extent allowed by applicable law. No person, other than the immediate generator of solid waste, may remove or take possession of any solid waste, whether bundled, tied, or loose, placed by the source of the product for collection by the Franchisee. Nor may any person, other than the immediate generator of solid waste, interfere with (e.g.) crush, or manipulate in any way, solid waste. This provision does not: 1 . Apply to a government employee acting to remove solid waste or waste because of a present or imminent danger; 2. Prohibit any person transporting solid waste through the City that is not collected within the City; 3. Require Franchisee to store, collect, transport, dispose of, or resource recover any unacceptable waste; provided, however, that Franchisee may engage in a separate business of handling such wastes separate and apart from this Franchise and Chapter; or prevent the City from conducting an annual clean-up campaign for the collection of recyclable materials, organic materials, solid waste, or other materials from the residences in the City, or in any other way providing for the beauty of the City and the safety and convenience of its citizens. 4. Prohibit the purchase of materials for fair market value as authorized in this ordinance. B. Unauthorized Use. No person is permitted to place any material in a container, drop box, or other receptacle not provided for such person's use without the permission of the person receiving the service from the Franchisee. C. Title. Title to solid waste shall pass to Franchisee when loaded into Franchisee's collection vehicle or otherwise received by Franchisee. Title to and liability for any unacceptable waste shall at no time pass to Franchisee. Franchisee shall have the right to revoke acceptance of Page 34 Council Bill No. 3301 Ordinance No. 2647 34 any solid waste at any time such solid waste is discovered to be or contain unacceptable waste. D. Unacceptable waste. No person shall place hazardous wastes or unacceptable waste for collection or disposal by Franchisee at the curbside. Hazardous waste and unacceptable waste shall be disposed of only at collection events for this specific purpose. E. Accumulation of Waste. No person shall accumulate or store waste that is unsightly or in violation of the City's nuisance ordinance, or in violation of regulations of the Oregon Environmental Quality Commission. F. Approved Containers. No customer shall use any waste collection container unless it is supplied by or approved by Franchisee. G. Safe Loading Requirements. No stationary compactor, cart or container for residential, commercial or industrial use shall exceed the safe loading requirements designated by Franchisee. H. Access to Container. No container shall be located behind any locked or latched gate or inside of any building or structure unless authorized by Franchisee. No person shall block the access to a container. I. Safe Access. Each customer shall provide safe access to the solid waste or solid waste container without hazard or risk to Franchisee. J. Cart Placement. Placement of carts must be within three (3) feet of curb but shall not restrict access to bicycle lanes or sidewalks and shall not be blocked by vehicles or other items. Items not for collection must be at least three (3) feet from carts. Placement of carts is limited to a time period of twenty four (24) hours prior to pick-up and twenty four (24) hours after pick-up. Carts within alleys shall be placed to accommodate collection vehicles. K. Clean Carts and Surrounding Areas. Generators or producers of waste shall clean carts and shall keep the area around carts and containers free of accumulated wastes. L. Stationary Compactor. No person shall install a stationary compacting device for handling of solid wastes unless it complies with all applicable federal, state, and local laws and regulations. Franchisee shall not service any such device unless these requirements are adhered to at all times. Page 35 Council Bill No. 3301 Ordinance No. 2647 35 M. Train System. No person shall install or operate a "train system" for the purpose of solid waste collection under this franchise agreement. N. Penalties. In addition to, and not in lieu of any other available legal remedies, any violation of Section 12 of this Ordinance constitutes a Class 2 Civil Infraction, which shall be processed according to the procedures contained in the Woodburn Infraction Ordinance. Each day of continued violation is a separate offense and is separately punishable, but may be joined in a single prosecution. Section 13. City Responsibility. A. Emergency Service. In the event the Council finds an immediate and serious danger to the public creating a hazard or serious public nuisance, the Council may, after a minimum of twenty-four (24) hours' actual notice to the Franchisee, and a public hearing if Franchisee requests it, authorize another person or entity to temporarily provide service under this Ordinance, or the City may provide such service. Franchisee will make all reasonable efforts to assist the City in such emergency situations. In the event the power under this Section is exercised, the usual charges for Service will prevail, and the Franchisee is entitled to collect such usual charges but shall reimburse the City for its actual cost, as determined by the City. B. City Collection. Nothing herein contained is to be construed in any way as to prevent the City from conducting a semi-annual clean-up campaign for the collection of brush, cleaning out of garages or basements, or any other facility or location in the City so as to prevent public nuisances and so as to provide for the beauty of the City and the safety of its citizens. C. City Enforcement of Franchise violations by Customers. The City, through its appropriate officers, shall take all appropriate steps to protect the exclusive right of Franchise hereby granted to the Franchisee. 1 . The City has authority to enforce this Ordinance, and any other rules and regulations adopted pursuant thereto. The City Manager or Designee may entitle appropriate city employees, including police officers, and others to enter premises to ascertain compliance with this Ordinance. No premises shall be entered without first attempting to obtain the consent of either Page 36 Council Bill No. 3301 Ordinance No. 2647 36 the owner or person in control thereof, if different. If consent cannot be obtained, the City representative shall secure a search warrant from the appropriate court before attempting to gain entry and shall have recourse to every other remedy provided by law to secure such entry. 2. City shall seek to enforce the rights the City has granted to Franchisee hereunder, however the City shall not be obligated to instigate litigation to protect the rights of Franchisee. Franchisee may independently enforce its rights under this Ordinance against third party violators, including but not limited to seeking injunctive relief, and the City shall use good faith efforts to cooperate in such enforcement actions brought by Franchisee without obligating the City to join any such litigation. Notwithstanding the foregoing, the City shall enforce its municipal ordinances in the ordinary course against third parties providing authorized Service and shall, if necessary, pass such additional ordinances as may be required to maintain the exclusiveness of the Franchise. 3. Damages and Penalties. The City may prosecute in the Woodburn Municipal Court, any person's violation of or non- compliance with this Ordinance. Any person who provides services in violation of the Franchise or this Ordinance shall also be liable to Franchisee and the City, as applicable, for each of their damages, including without limitation, the following: a. Lost customer revenue due to Franchisee; b. Franchise fees owed to City; c. Other appropriate legal or equitable remedy available to Franchisee and/or the City; and d. Reasonable Attorney's fees, expenses and costs incurred by Franchisee in enforcing this Ordinance, including any attorney fees incurred at trial or on appeal. The burden of proof is on the City to prove an infraction by a preponderance of the evidence. Any violation or non- compliance with this Ordinance by Franchisee will be enforced pursuant to the terms of this Ordinance. D. City Enforcement of Franchise violations by Franchisee. 1 . The City Manager shall have the right to observe and inspect all aspects of collection operations, facilities, services, and records which are subject to the provisions of this franchise, to ensure compliance. Page 37 Council Bill No. 3301 Ordinance No. 2647 37 2. If Franchisee at any time fails to promptly and fully comply with any obligation of this agreement after receiving a written notice and a reasonable opportunity to comply, the City Manager may elect to perform the obligation at the expense of Franchisee. 3. If Franchisee defaults in any of the terms required to be performed by it under the terms of this franchise, and the default continues for ten (10) days after written notification by the City Manager, this franchise may, at the option of the Council, become null and void. 4. The City Manager reserves the right to make such further regulations as may be deemed necessary to protect the interests, safety, welfare and property of the public and carry out purposes stated in Section 2 of this franchise agreement. The City Manager or Franchisee may propose amendments to this franchise. Proposals shall be in writing and shall be afforded an adequate review process. After review of the proposed amendments to the franchise, the Council may adopt the amendments. 5. All remedies and penalties under this franchise agreement, including termination, are cumulative, and the recovery or enforcement of one is not a waiver or a bar to the recovery or enforcement or any other recovery, remedy or penalty. In addition, the remedies and penalties set out in this ordinance are not exclusive, and the City reserves the right to enforce the penal provisions of any other ordinance, statute or regulation, and to avail itself of any all remedies available at law or in equity. Failure to avail itself of any remedy shall not be construed as a waiver of that remedy. Specific waiver of any right by the City for a particular breach shall not constitute a general waiver of the City's right to seek remedies for any other breach, including a repetition of the waived breach. 6. For violations of this Ordinance occurring without just cause, the City Manager or their designee may assess penalties against Franchisee as follows: a. For failure to adhere to any of the material provisions of this Ordinance as outlined in Section 17, Two Hundred Fifty Dollars ($250.00) per day for each provision not fulfilled. b. For failure to comply with Oregon Occupational Safety and Health Administration and Oregon Department of Transportation safety requirements or Oregon Department of Environmental Quality rules and regulations, the penalty shall be Two Hundred Fifty Dollars ($250.00) per day, per occurrence. Page 38 Council Bill No. 3301 Ordinance No. 2647 38 c. For failure to comply with any provision of this franchise, for which a penalty is not otherwise specifically provided, the penalty shall be One Hundred Twenty Five Dollars ($125.00) per day, per occurrence. d. For failure to comply with reasonable requests of the City Manager related to service, the penalty shall be One hundred Dollars ($100.00) per day per request. 7. Procedure for Imposition of Penalties. a. Whenever the City Manager finds that Franchisee has violated one (1 ) or more terms, conditions or provisions of this franchise, a written notice, or a verbal notice followed by a written notice, shall be given to Franchisee informing it of such violation or liability. If the violation concerns requirements mandated by the Oregon Occupational Health and Safety Administration or the Oregon Department of Environmental Quality, a verbal notice followed by a written notice may be given. For these safety or public health violations, Franchisee shall have twenty four (24) hours from notification to correct the violation. For all other violations and liabilities the written notice shall describe in reasonable detail the specific violation so as to afford Franchisee an opportunity to remedy the violation. Franchisee shall have ten (10) days subsequent to receipt of the notice in which to correct the violation. Franchisee may, within five (5) days of receipt of notice, notify the City Manager that there is a dispute as to whether a violation or failure has, in fact, occurred. Such notice by Franchisee to the City Manager shall specify with particularity the matters disputed by Franchisee. b. The City Council shall hear Franchisee's dispute at its next regularly or specially scheduled meeting. The Council shall supplement its decision with written findings of fact. c. If after hearing the dispute the claim is upheld by the Council, Franchisee shall have ten (10) days from such a determination to remedy the violation or failure. Penalties shall accrue from time of initial notification until such time as the violation or failure is resolved to the satisfaction of the City Manager. d. Franchisee shall be liable for full payment of all penalties imposed under this section. Page 39 Council Bill No. 3301 Ordinance No. 2647 39 E. Non-enforcement by the City. Franchisee shall not be relieved of its obligation to comply with any of the provisions of this franchise by reason of any failure of the City Manager to enforce prompt compliance. F. Annexation. Immediately upon the annexation to the City of additional territory, the City shall take such steps as may be necessary to give the Franchisee the exclusive right to collect Solid Waste within the annexed area. The City shall notify any other solid waste collector to cease collection on or before ninety (90) days from the date of such notice. Franchisee shall endeavor to arrive at a mutually satisfactory agreement with any other solid waste collector who has been serving any such newly annexed area concerning appropriate compensation for the cessation of its solid waste collection services. In the event the Franchisee and other solid waste collector cannot reach an agreement, the matter may be submitted to an arbitration board. The arbitration board will consist of one arbitrator selected by the Franchisee, one selected by the City, and one selected by the solid waste collector in the newly annexed area. The decision of the arbitration board will be binding on all parties to the arbitration, and the award of the arbitrators will be final. In the event of arbitration, it is contemplated that the award will include payment of money by the Franchisee to the solid waste collector in the newly annexed area. Section 14. Insurance and Bonds. A. Insurance. The Franchisee shall obtain, at Franchisee's expense, and keep in effect during the term of this Franchise: 1 . Commercial General Liability Insurance. Franchisee shall carry Commercial General Liability insurance with the following minimum coverages: Bodily Injury and Property Damage Each Occurrence - $2,000,000; Personal Injury Each Occurrence - $2,000,000; Products & Completed Operations Aggregate - $3,000,000; General Aggregate-$3,000,000. All of the foregoing coverage must be carried and maintained at all times during the term of this Franchise. 2. Workers Compensation Insurance. Franchisee and any subcontractor of Franchisee that provides work, labor, or materials under this Franchise and is subject to the Oregon Workers Compensation Law shall comply with ORS 656.017, which requires them to provide workers compensation coverage that satisfies Oregon law for all their subject workers under ORS Page 40 Council Bill No. 3301 Ordinance No. 2647 40 656.126. Out-of-state subcontractors must provide Oregon workers compensation coverage for their workers who work at a single location within Oregon for more than thirty (30) days in a calendar year. This shall include Employer's Liability Insurance with coverage limits of not less than $1 ,000,000 for each accident. 3. Contractor's Pollution Liability Coverage. Franchisee shall carry sudden and accidental and gradual release contractor's pollution liability coverage that will cover, among other things, any spillage of paints, fuels, oils, lubricants, de-icing, anti-freeze, or other hazardous materials, or disturbance of any hazardous materials, in accordance with DEQ and EPA clean-up requirements. The coverage shall be in the amount of $1,000,000 for each occurrence (each contamination incident) and $3,000,000 general aggregate. 4. Business Automobile Liability Insurance. Franchisee shall provide the City an ACORD 25 Certificate of Insurance evidencing Franchisee has business automobile liability coverage for all owned, hired, and non-owned vehicles. The combined single limit per occurrence shall not be less than $1 ,000,000. 5. Insurance Carrier Rating. Coverages provided by Franchisee must be underwritten by an insurance company with an A.M. Best Rating of A- VIII or better. The City reserves the right to reject any or all insurance carrier(s) with a financial rating that is lower than A- VIII by A.M. Best. 6. Certificates of Insurance. As evidence of the insurance coverage required by this Franchise, Franchisee shall furnish an ACORD 25 Certificate of Insurance to the City. This franchise shall not be effective, and services shall not be performed hereunder, until the required certificate(s) of insurance evidence the coverage required herein have been received and approved by the City. The Commercial General Liability Policy shall name the City of Woodburn, its officers, officials, employees and agents as Additional Insureds as respects to operations performed under this franchise agreement via blanket-form endorsement. Franchisee shall be financially responsible for all pertinent deductibles, self-insured retentions and/or self-insurance. Franchisee shall obtain a blanket-form notice of cancellation endorsement from its insurance carrier(s), on the policies required herein, except Workers Compensation and Employer's liability, requiring the insurance carrier(s)' authorized representative to notify the City thirty (30) days prior to any cancellation or material change in such insurance coverage, as provided above. Page 41 Council Bill No. 3301 Ordinance No. 2647 41 B. Bonds. The Franchisee shall furnish a bond to the City in the amount of $1 ,000,000, to ensure the faithful performance by the Franchisee of the Service the Franchisee is required to provide under this Ordinance. The bond will provide for liquidated damages as provided in Section 18 of this Ordinance. Section 15. Inspection, Delivery of Notices, Review of Records and Reports. A. Access for Inspection and Delivery of Notices. Franchisee must make all of Franchisee's premises, facilities, equipment, and records related to its solid waste, recyclable materials, organic materials, and other materials (including, but not limited to, offices, storage areas, financial records, non-financial records, records pertaining to the origin of any solid waste collected by Franchisee, receipts for sale or delivery of collected recyclable materials, Customer lists, and all records relating to vehicle maintenance and safety that are required under Oregon Department of Transportation motor carrier requirements and regulations and Oregon Revised Statutes Chapter 767) available for inspection by the City Manager or Designee within forty-eight (48) hours of written notice by certified mail or personal delivery. Such inspections are only for purposes of enforcing this Ordinance and are restricted to normal business hours. During normal business hours, Franchisee must make all company premises and facilities accessible to the City for delivery of any written notices. Where receptacles are stored in the public right-of-way, or when the City is inspecting a situation where the Franchisee is allegedly commingling recyclable materials, organic materials, and other materials with solid waste, the need for 48-hour prior written notice does not apply to inspection of receptacles or vehicles. B. Quarterly Franchise Fee Reports. Franchisee must complete and remit to the City Manager or designee a Quarterly Franchise Fee Report no later than the date the quarterly Franchise Fee payment is due. The Quarterly Franchise Fee Report must include a statement of gross revenue for that quarter covered by the tendered franchise fee. Such statements are public records. Franchisee must maintain books and records disclosing the receipts derived from service conducted within the City, which must be open at reasonable times for review by the City Manager or Designee within forty-eight (48) hours of written notice by certified mail or by personal delivery. Intentional misrepresentation of gross revenue constitutes a material breach of the Franchise and Page 42 Council Bill No. 3301 Ordinance No. 2647 42 this Ordinance and is cause to initiate the process to terminate the Franchise, in addition to any other legal or equitable remedies available to the City. C. Annual Franchise Reports. Each year, concurrent with the date upon which Franchisee reports its year-end financial information to the Marion County COSA process, but in no case later than June 30th, Franchisee must complete and remit to the City Manager or designee an Annual Franchise Report, which must include the following information: 1 . Total Franchise payments remitted and basis for calculations. 2. Year-end financial statements of Franchisee for service within the City limits only, including: Statement of income and schedule of expenses for the previous three (3) years, and a forecast for the current year. 3. Information about Customer counts, services provided, disposal volumes, and recycling activities for all Customer classifications and for all programs identified in this Ordinance for the prior calendar year. This information shall include, but is not limited to, current and previous year's total of residential, commercial and industrial customers within City limits, including tons of solid waste generated, number of recycling customers within City limits, and percentage of materials recycled. 4. A synopsis of Franchisee's operations during the prior calendar year, including: a description of the measures the Franchisee has taken to make its operations more efficient, a listing of efficiency measures which it intends to take in the next calendar year, a composite table showing the type and number of customer service complaints and a description of the measures that the Franchisee has taken or is planning to take to correct the cause of commonly reported complaints, and such other information as requested by the City Manager or Designee. 5. A description and quantification of communication, outreach, and educational activities performed by Franchisee during the prior calendar year. 6. A summary of food waste contamination instances, including information regarding the fees assessed and any rejected loads (e.g., amount of food waste disposed of as solid waste) during the prior calendar year. 7. The quantities of solid waste, recyclable materials, organic materials, and other materials by Customer classification collected within the City during the prior calendar year, the Page 43 Council Bill No. 3301 Ordinance No. 2647 43 locations to which these materials were delivered, the number of Customer accounts, and other information requested by the City Manager or designee and mutually agreed upon by Franchisee. 8. A summary of communication, marketing, and educational outreach conducted by Franchisee during the prior calendar year. 9. The number of Customer complaints and a summary of the type of complaints received during the prior ,calendaryear, along with a summary of Franchisee's response to these Customer complaints. This information shall, at a minimum include a summary of the customer survey results as required in Section 11 of this Ordinance, and a summary of annual customer service reports are required in Section 15 of this Ordinance. 10.A summary of industry trends and the direction of Franchisee over the next several years. 11 .Any other information pertaining to performance standards as specified in the franchise agreement. 12.At City request, Franchisee shall make an annual presentation to City Council which shall include the information outline above. D. Franchisee may identify specific information submitted to the City in Quarterly Franchise Fee Reports, Annual Franchise Report, and any other documents or information provided to the City as "CONFIDENTIAL," and it will not be subject to public disclosure except as required by applicable federal or state law. If the City receives a request for disclosure of information marked as "CONFIDENTIAL" pursuant to this Ordinance, the City Manager or designee will notify Franchisee within seven (7) calendar days after receiving the request to allow Franchisee an opportunity to defend against the requested disclosure through appropriate legal action. The City is not obligated to defend against the disclosure of any information marked "CONFIDENTIAL" by Franchisee. E. No later than forty-eight (48) hours after written notice, Franchisee must make available for inspection, copying, and review by the City Manager or Designee, at any time during normal business hours, all records in Franchisee's possession that the City Manager or Designee deems relevant to verifying the accuracy of Franchise Fees paid to the City, regulating service rates, or carrying out any responsibility that Franchisee or the city has under this Ordinance. Page 44 Council Bill No. 3301 Ordinance No. 2647 44 F. No more often than once during any calendar year, the City may perform a review of the books, records, and accounts of Franchisee for the prior year through a certified public accountant, or such other professional chosen by the City, to verify the accuracy of Franchise Fees paid to the City, Franchisee's Operating Margin, and/or any Extraordinary Rate Increases. 1 . In the event such review discloses any difference in payment due to either the City or Franchisee, the review will be submitted to the Council. The Council may accept, reject, or modify the findings in the review. If the Council orders, by resolution, payment to the City or Franchisee, such payment owed is due and payable within thirty (30) calendar days of the date of the resolution. 2. If the review discloses a discrepancy in Franchisee's actual Allowable Expenses upon which an Extraordinary Rate Increase is approved by the Council through resolution was based, Service Rates may be adjusted to reflect the Service Rates authorized under Section 8, through resolution of the Council, within forty- five (45) calendar days of the date of the resolution. 3. If Franchisee owes the City a payment of the Franchise Fee under (F)(1 ) of this Section, and the payment is more than one percent (1%) of the annual Franchise Fee, Franchisee will reimburse the City all its actual costs for the review and the City may request an additional review during the next calendar year, with all actual costs of such additional review paid by Franchisee. The City may also charge interest retroactive to the payment due date, at a rate of twelve percent (12%) per annum. 4. City and Franchisee are not required to make payments to the other for years that previously have been, or could have been, reviewed by the City. Prior review years may not be reopened based on findings made in connection with the review of a subsequent year unless the City finds evidence implicating intentional misrepresentation by Franchisee. Section 16. Dispute Resolution A. Dispute Resolution with Customers. 1 . Any Customer who is aggrieved or adversely affected by any application of the franchise or policy of the Franchisee shall first attempt to settle the dispute by notifying the Franchisee of the nature of the dispute and affording Franchisee the opportunity to resolve the dispute. Page 45 Council Bill No. 3301 Ordinance No. 2647 45 a. Upon receipt of any notice of dispute from a Customer about any bill, charge, service, or customer service issue, Franchisee will thoroughly investigate the matter and promptly report the results of its investigation to the Customer. Except in the event a Customer has attempted to improperly dispose of Hazardous Waste in violation of federal, state, or local laws or regulations, Franchisee will not refuse Service to any Customer during a time of dispute. b. If Franchisee is not able to resolve a dispute with the Customer, the Customer may contact the City Manager or Designee, who will act as an informal mediator in an attempt to resolve the matter. The City Manager or their Designee may require a written description of the dispute form either party, to mediate the dispute. c. If the City Manager or Designee is unable to resolve the dispute, the Customer or Franchisee may appeal to the City Council who shall hear the dispute. The decision of the City Council shall be binding. d. If the dispute remains unresolved, either party may seek a write of review with Marion County Circuit Court to resolve the dispute. B. Dispute Resolution with the City. During all disputes arising under this Ordinance, the City and Franchisee will continue to perform their respective obligations under this Franchise unless and until the Franchise is terminated. Notwithstanding any other section of this Ordinance, Franchisee and the City will make good faith efforts to resolve any disputes, including, upon mutual agreement, undergoing mediation. Section 17. Suspension, Modification, or Revocation of Franchise. A. City Right to Revoke. 1 . In addition to all other rights which the City has pursuant to law or equity, the Council reserves the right to revoke, terminate, or cancel this franchise, and all rights and privileges pertaining thereto, in the event that Franchisee violates any of the following provisions of this franchise which are deemed to be material and to the performance of the franchise, and fails to cure such violation: a. Establishment and Modification of Service Rates b. Service Standards. Page 46 Council Bill No. 3301 Ordinance No. 2647 46 c. Insurance and bonds d. Review of Records and Reports e. Franchise Responsibility. f. Sale, Transfer, Lease, and Subcontract 2. The Council further reserves the right to revoke, terminate, or cancel this franchise, and all rights and privileges pertaining thereto, in the event that: a. Franchisee practices any fraud upon City or Customer. b. Franchisee becomes insolvent, unable or unwilling to pay its debts, or is adjudged bankrupt. c. Franchisee misrepresents a material fact in the negotiation of, or renegotiation of the franchise. d. Franchisee is found to be in default of the Franchise as defined in Section 18 of this Ordinance. B. Continuity of Service. 1 . Upon expiration, termination, or revocation of this Franchise, the City Manager may require Franchisee to continue to operate the system for an extended period of time, not to exceed twelve (12) months. Franchisee shall, as trustee for its successor in interest, continue to operate under the terms and conditions of this Franchise. In the event Franchisee does not so operate, the City Manager may take such steps as deemed necessary to assure continued service to subscribers. Costs associated with such actions shall be the sole responsibility of Franchisee. C. Modification or Amendment. If is the intent of the parties that this Agreement may be amended from time to time to conform to any changes in the controlling federal or state law or other changes material to this agreement. Each party agrees to negotiate in good faith with the other party concerning such proposed amendments. 1 . This Agreement may be amended or terminated by the mutual consent of the parties and their successors-in interest. 2. To the extent any lawful City rule, ordinance or regulation is adopted on a jurisdiction-wide basis and is generally imposed on similarly situated persons or entities, the rule, ordinance or regulation shall apply without need for amendment of this Agreement. City shall provide Franchisee notice of any such change in law prior to its adoption. Section 18. Default. Page 47 Council Bill No. 3301 Ordinance No. 2647 47 A. Default. Franchisee is in default of the franchise upon failure to comply with written notice from the City to provide necessary service or to otherwise fail to comply with the provisions of this Ordinance, state law and regulations, or federal law and regulations after Written Notice and reasonable opportunity to comply. B. Timing after Notice. No later than the end of the cure period, the Franchisee shall comply with the written notice and this Franchise or else request a public hearing before the Council. In the event of a public hearing, the Franchisee and other interested persons will have an opportunity to present information and oral or written testimony. If the Franchisee fails to comply within the specified time or fails to comply with the order of the Council entered upon the basis of findings at the public hearing, the Council, in its sole and absolute discretion, may suspend, modify, or revoke the Franchise or make such action contingent upon continued noncompliance with this Ordinance. The Franchisee has the right to seek review of any such action by the Council from the Marion County Circuit Court, pursuant to ORS 34.010 through ORS 34.102. C. Liquidated Damages. The Franchisee's insurance bond provided for in Section 14 of this Ordinance, will provide that, in the event of default, the City will be entitled to One Thousand Dollars ($1 ,000) as liquidated damages for each day that Franchisee is in default after the Cure Period for failure of the Franchisee to perform as required. The Franchisee and the City agree that this amount of liquidated damages is a reasonable forecast of just compensation for the harm caused by any breach by Franchisee and that the extent of damages will be impractical or impossible to calculate due to the variety of Services provided by the Franchisee and the vast number of Customers that rely on the Services. D. Costs of Temporary Replacement Services. In the event of default uncured after the Cure Period, in lieu of liquidated damages, the City may obtain replacement Service from another party, and Franchisee must reimburse the City for all reasonable costs incurred by the City, including City staff time and resources, due to Franchisee's breach of this Franchise, and must pay to the City any Franchise Fees owed. Section 19. General Provisions. Page 48 Council Bill No. 3301 Ordinance No. 2647 48 A. Written Notice. All notices, reports, or demands required to be given in writing under this franchise shall be deemed to be given when a registered or certified mail receipt is returned indicating delivery as follows: If to the City: City of Woodburn 270 Montgomery Street Woodburn, Oregon 97071 Attn: Heather Pearson, city Recorder If to Franchisee: United Disposal Service, inc P.O. Box 608 Woodburn, Oregon 97071 Attn: John Olivares, General Manager B. Indemnity and Hold Harmless. The Franchisee agrees to indemnify, defend and hold harmless the City, its officers, employees, volunteers and agents from any and all claims, demands, action, or suits arising out of or in connection with the City Council's grant of this franchise. Franchisee shall be responsible to defend any suit or action brought by any person challenging the lawfulness of this franchise or seeking damages as a result of or arising in connection with its grant; and shall likewise be responsible for full satisfaction of any judgment or settlement entered against the City in any such action. The City shall tender the defense to the Franchisee, and Franchisee shall accept the tender whereupon the City shall assign to Franchisee, complete responsibility of litigation including choice of attorneys, strategy and any settlement. 1 . Franchisee's costs incurred in satisfying its obligations as defined above shall not decrease the total amount of compensation paid to the City and shall not increase the total amounts paid by the ratepayers for which Franchisee serves under the authority of the franchise agreement. All such expenses shall be the sole responsibility and burden of Franchisee. 2. Damages and penalties under this Section include, but shall not be limited to, damages arising out of personal injury, property damage, copyright infringement, defamation, theft, and fire. C. Rules of Construction. This ordinance shall be construed liberally in order to effectuate its purposes. Unless otherwise specifically Page 49 Council Bill No. 3301 Ordinance No. 2647 49 prescribed in this ordinance, the following provisions shall govern its interpretation and construction. 1 . The singular may include the plural number, and the plural may include the singular number. 2. "May" is permissive and "shall" is mandatory. D. Calculation of time. Time shall be computed so as to execute the first and include the last day of the prescribed or fixed period of time unless stipulated otherwise in this agreement. When the last day of the period falls on Saturday, Sunday, or a legal holiday, that day shall be omitted from the computation. E. Severability. If any portion or phrase of this ordinance is for any reason held invalid or declared unconstitutional by any court, such portion shall be deemed a separate and independent provision; and such holding shall not affect the constitutionality of the remaining portion hereof. The council hereby declares that it would have passed this ordinance and each portion and phrase hereof, irrespective of the fact that any one (1 ) or more portions or phrases be declared illegal, invalid or unconstitutional. If, for any reason, the franchise fee under Section 5 of this ordinance is invalidated or amended by the act of any court or governmental agency, the City Manager may either renegotiate the compensation section of this agreement or adopt the highest reasonable franchise fee allowed by such court or other governmental agency as the franchise fee charged by this ordinance. F. Forum. Any litigation between the City and the Franchisee arising under, relating to, or regarding this Franchise will occur in Marion County Circuit Court. G. Written Acceptance. Within fourteen (14) days after this Ordinance becomes effective, Franchisee shall provide the City Recorder a written acceptance of this Franchise. A failure on the part of Franchisee to provide such written acceptance within such time shall be deemed an abandonment and rejection of the rights and privileges conferred hereby, and the Ordinance granting this Franchise shall thereupon by null and void. Such acceptance must be unqualified and will be construed as acceptance of all the terms and conditions contained in this Franchise. H. Repealing Clause. This ordinance shall repeal Ordinance 2552 as amended by Ordinance 2554 and 2635. If any portion of this ordinance is void for any reason, the remaining portions shall remain in full effect. Page 50 Council Bill No. 3301 Ordinance No. 2647 50 This ordinance shall be in full force and effect as of the date indicated below, but this ordinance shall be void unless Franchisee files with the City Recorder, within thirty (30) days, Franchisee's unconditional written acceptance of the terms, conditions, and obligations to be complied with or performed by it under this ordinance. Page 51 Council Bill No. 3301 Ordinance No. 2647 51 Approved as to form:____________________.--- _ City At r ey Date APPROVED: Mayor Passed by the Council: 2.0 Submitted to the Mayor: ZL) Approved by the Mayor: t .., Z YZ- c' Filed in the Office of the Recorder: ATTEST_____________________ Recorder City of Woodburn ACCEPTED BY FRANCHISEE this day of , 2026: By United Disposal Service, Inc. dba Republic Services of Marion County-Woodburn Page 52 Council Bill No. 3301 Ordinance No. 2647 52 Approved as to forr a:.. _ :...... ........._. f ' City At y Date ED ._. � Mayor Passed by the Council: Lew" a i .N L. : Submitted to the Mayor: Approved d by that ,Mayor: I Filed in the Office of the Recorder: a : , ... .. . ATTESTJ �� " a Recorder Cuty of Woodburn ACCEPTED BY FRANCHISEE this JLday of .. 2026: United Disp sal Sore .a,- nc, dba Repu iac Serves of Marion County-Woodk urn Page 52 Council Bill No, 3301 Ordinance No. 2M7 52 Approved as to form: " City Ajfrfy Date APPROVED, .... layar Passed by the Council . kZ 4 . A Submitted to the Mayor: Approved by the Mayor: Filed in the Office of the Reorder; _ ATTEST "fit„' d1 Recorder City of Woodburn ACCEPTED BY FRANCHISEE this " .day of . .... ...__� 2C26: Uri ed DispSsaI ...Sery .__. dba Repu lic Servi ;es of Marion County-Woodburn Page 52 Council Bull No, 3301 Ordinance No. 2647 52