HomeMy WebLinkAbout2021-68 - Declaring Its Intention to Conduct a Public Hearing to Consider Granting Non-Exclusive Commercial Solid Waste and Divertible Materials Handling FranchisesRESOLUTION NO. 2021-68
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, DECLARING ITS
INTENTION TO CONDUCT A PUBLIC HEARING TO
CONSIDER GRANTING NON-EXCLUSIVE COMMERCIAL
SOLID WASTE AND DIVERTIBLE MATERIALS HANDLING
FRANCHISES
WHEREAS, the City Council of the City of Newport Beach ("City") finds and
determines that the collection of municipal solid waste and divertible materials, including
recyclable materials, food scraps, green waste, wood waste, construction and demolition
debris, and all other materials that can be diverted from landfill disposal (collectively
"Commercial Solid Waste") generated within the City is a vital public service;
WHEREAS, the City Council further finds and determines that the collection,
transportation, storage, and disposal of municipal solid waste and the collection,
transportation, processing, and diversion of processable municipal solid waste and
divertible materials ("Commercial Franchise Services") is a matter of great public concern
because improper control of such matters subjects the City to potential liability, damages
and penalties, and may create a public nuisance, air pollution, fire hazard, infestation and
other problems affecting the public health, safety and welfare;
WHEREAS, the non-exclusive franchises for the use of public streets to provide
Commercial Franchise Services promotes the public health, safety and welfare by
providing permanence and stability among those businesses wishing to provide such
service and accountability to the City for compliance with current and future state
mandates;
WHEREAS, on October 22, 2019, the City Council approved a new model
franchise agreement in compliance with Assembly Bill 1826 and Assembly Bill 341 ("2020
Franchise"), that expires in the year 2027;
WHEREAS, the City has since received applications from new applicants that wish
to perform work under the 2020 Franchise;
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WHEREAS, pursuant to Article XIII (Franchises) of the City Charter, Chapter 12.63
(Solid Waste Management) of the Newport Beach Municipal Code ("NBMC"), and
California Public Resources Code Sections 40059, 49300, and 49500 through 49523, or
any successor statutes, the City is authorized to enter into non-exclusive franchise
agreements for Commercial Franchise Services with private solid waste haulers;
WHEREAS, pursuant to City Charter Section 1301 (Resolution of Intention. Notice
and Public Hearing), the City Council, prior to granting any franchise, shall pass a
resolution declaring its intention to grant same, stating the name of the proposed
grantee(s), the character of the franchise, and the terms and conditions upon which it is
proposed to be granted; and
WHEREAS, such resolution shall fix and set forth the day, hour and place when
and where any persons having any interest therein or any objection to the granting thereof
may appear before the City Council and be heard thereon.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council does hereby declare its intention to grant non-
exclusive franchises, subject to the following general terms and conditions ("Non-
exclusive Franchise"):
a. Effective date. September 14, 2021;
b. Franchise fees. Sixteen percent (16%) of gross monthly receipts. Five and
one-half percent (5.5%), shall be earmarked for the purposes of indemnifying and holding
the City harmless from environmental liability associated with the franchisee's operations
in the City. This portion of the franchise fee shall be paid into the City's Environmental
Liability Fund. One-half percent (0.5%) shall be attributable to the maintenance and
implementation of the City's Source Reduction and Recycling Element;
C. Term. September 14, 2021 to October 7, 2027;
d. Rates. The City shall not set franchisees' bin rates;
e. Indemnification. Franchisees shall indemnify and hold City harmless from
penalties and damages for failure to meet state recycling requirements with respect to the
portion of the Commercial Solid Waste stream collected by franchisees;
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f. Diversion requirements. Franchisees shall divert a minimum of fifty-five
percent (55%), subject to increase as required by state law, of all processable municipal
solid waste, recyclable materials, food scraps and green waste collected by franchisee.
Franchisees shall divert a minimum of sixty-five percent (65%), subject to increase as
required by state law, of all construction and demolition debris collected by franchisees;
g. Disposal requirements. Franchisees shall dispose of Commercial Solid
Waste, not otherwise diverted, in Orange County landfills pursuant to the City's waste
disposal agreement with the County of Orange. City maintains the right to designate
disposal facilities to be used by franchisees;
h. Billing. Franchisees shall be responsible for all billing and collection for its
accounts;
i. Termination. Franchise shall not be revoked unless franchisee has
defaulted in the performance of any obligation of the 2020 Franchise, and the Franchise
may be terminated pursuant to Newport Beach Municipal Code Section 12.63.140 (Solid
Waste Management - Termination);
j. Application requirements. Prior to obtaining the 2020 Franchise,
franchisees shall designate the specific Commercial Franchise Services for which it
desires to apply and shall demonstrate competence in and compliance with the City's
insurance, equipment, and diversion requirements with respect to those Commercial
Franchise Services;
k. Public education. Franchisees shall meet City's requirements to implement
recycling, diversion and source reduction public education activities;
I. Recycling/diversion programs. Franchisees shall implement and provide
recycling and diversion programs for all customers subject to California State Assembly
Bills 939, 341, and 1826, and the California Green Building Standards Code, codified in
the California Code of Regulations Title 24, Part 11, ("CALGreen");
M. Hauler representative. Franchisees shall designate a representative to
assist in implementing State -imposed recycling and diversion programs; and
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n. Compliance. Franchisees shall comply with all state, federal laws and
regulations, terms and conditions of the franchise agreement, the City Charter and the
Newport Beach Municipal Code.
Section 2: The City intends to grant the 2020 Franchise to the following entities
(collectively, "Proposed Grantees"), which do not currently hold a franchise with the City:
a. Greenstone Materials, Inc
b. Roche Excavating, Inc.
Section 3: The City Council shall conduct a public hearing on August 24, 2021
at 5:00 p.m., or as soon thereafter as is practical, in the City Council Chambers located
at 100 Civic Center Drive, Newport Beach, California, to consider granting the Proposed
Grantees the 2020 Franchise. Persons who have an interest in or objection to the
granting of the 2020 Franchise to the Proposed Grantees may appear before the City
Council and be heard at that date and time.
Section 4: The City Council finds the adoption of this resolution is categorically
exempt from the California Environmental Quality Act ("CEQA") pursuant to Sections
15301 and 15308 of the California Code of Regulations set forth in Title 14, Division 6,
Chapter 3 which exempts "existing operations and facilities" and "actions by regulatory
agencies for protection of the environment." Application of Sections 15301 and 15308 is
appropriate because the resolution does not change nor expand existing solid waste
operations and facilities within the City. This resolution is also consistent with the goals
of California State Assembly Bills 939, 341, and 1826, The California Solid Waste
Management Act, CALGreen, as well as the objectives of the City's Source Reduction
and Recycling Element.
Section 5: The recitals provided above are true and correct and are
incorporated into the operative portion of this resolution.
Section 6: If any section, subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this resolution. The City
Council hereby declares that it would have passed this resolution, and each section,
subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses, or phrases be declared invalid or
unconstitutional.
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Section 7: Pursuant to City Charter Section 1301, this resolution shall be
published in the City's official newspaper within fifteen days of its adoption and at least
ten days prior to August 24, 2021.
ADOPTED this 27th day of July, 2021.
Biyd Aver
May
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY TORNEY'S OFF
A26oh C. Harp
City Attorney
STATE OF CALIFORNIA
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; the foregoing resolution, being Resolution
No. 2021-68 was duly introduced before and adopted by the City Council of said City at a regular meeting
of said Council held on the 27th day of July, 2021; and the same was so passed and adopted by the
following vote, to wit:
AYES: Mayor Brad Avery, Mayor Pro Tem Kevin Muldoon, Council Member Noah Blom,
Council Member Joy Brenner, Council Member Diane Dixon, Council Member
Duffy Duffield, Council Member Will O'Neill
NAYS: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 28th day of July, 2021.
Leilani I. Brown
City Clerk
Newport Beach, California