Sec. 23C-4-5. Required terms and conditions of agreement with contract agent.

For the collection and disposal of garbage, wet garbage, rubbish, refuse and yard refuse, a contract for a period not to exceed ten years may be entered into by the city in accordance with the subject to the provisions of this chapter and as follows:
(a) Rates. The contract agent shall collect and dispose of the garbage, wet garbage, rubbish, refuse and yard refuse in the city in the manner provided in this chapter and shall not charge any amounts in excess of the rates specified by the city council.
(b) Security to Assure Faithful Performance. The contract agent shall furnish, at discretion of the city manager, either a cash or surety bond to the city in a reasonable sum, not less than twenty-five thousand dollars, conditioned upon the faithful performance of the duties required by this chapter. Such bond, at the sole discretion of the city manager, may be executed for a term less than the term of the contract with the contract agent so long as such term is no less than one year and, in the event the contract agent cannot or will not renew such bond, city shall have the right to terminate contract agent's services after city has given to the contract agent thirty calendar days advance written notice of the same.
(c) Insurance. The contract agent shall procure for the period covered by the contract, full compensation insurance with an industrial carrier as defined by and in accordance with the provisions of the California Workmen's Compensation Act in existence on May 26, 1913, as it may be amended from time to time. The contract agent also shall carry public liability insurance to the extent of five hundred thousand dollars for the death or injury of one person; five hundred thousand dollars for the death or injury of more than one person; five million dollars excess liability; and property damage insurance to the extent of one hundred thousand dollars upon each truck or other vehicle used by him in carrying out the work called for in the contract, and such insurance shall cover both the city, as an additional insured, and the contract agent.
(d) Audit. Upon request of the city manager or the city council, the contract agent may be required to retain and pay a certified public accountant selected by city to audit operations of the contract agent within the city in accordance with generally accepted accounting principles or to submit an annual financial statement prepared by a certified public accountant in accordance with generally accepted accounting principles covering the operations of the contract agent within the city.
(e) Terms and Conditions Subject to Discretion of the City Council. Prior to execution, the city council may include in said contract any terms or conditions it deems necessary to protect the interests of the city.
(f) Extension of Contract. The city council may grant extensions of any contract entered into pursuant to this chapter upon such terms and conditions as the council may deem to be in the best public interest. (Ord. No. 1038, § 3 (part).)