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HomeMy WebLinkAbout24 - Adoption of Ordinance No. 97-4 Granting Non-Exclusive Solid Waste FranchisesPU City Council Agenda Item No. January 27, 1997 TO: Mayor and City Council FROM: General Services Director SUBJECT: Adoption of Ordinance No. 97- 4 Granting Non -Exclusive Solid Waste Franchises Recommendation Adopt proposed Ordinance No. 97- 4 granting Non -Exclusive Solid Waste Franchises to Zakaroff Services and Tight Quarters, Inc. History On January 13, 1997, Council approved Resolution of Intention No. 97- 1 scheduling a public hearing for January 27, 1997 to consider the granting of Non -Exclusive Solid Waste Collection Franchises to two private solid waste haulers: Zakaroff Services and Tight Quarters, Inc. On January 13, 1997, Council approved the introduction of proposed Ordinance No. 97- 4 granting Non -Exclusive Solid Waste Franchises to Zakaroff Services and Tight Quarters, Inc. DiscuSginn If Ordinance No. 97 - 4 is adopted by City Council, Staff will immediately request an acceptance of the Franchise from the proposed franchisees. Ordinance No. 97 - 4, and the City Charter, requires that the proposed franchisee file an acceptance of the franchise with the City Clerk within 10 days from the date of adoption of the Ordinance. Very respectfully, David E. Niederhaus DEN/pp of fA REPORT FOR THE CITY COUNCIL AGENDA For Agenda January 27, 1997 Date A. Title of report: Adoption of Ordinance No. 97 - 4 Granting Non -Exclusive Solid Waste Franchises B. Report initiated by: City Council City Manager Other General Services Director Date Date Date January 16, 1997 C. Does the report include a resolution, ordinance, agreement or other legal matter? Yes X No D. a) Does the report recommend an expenditure? b) Were the funds budgeted in the approved budget? Yes No X (a) Has it been approved by the Administrative Services Director? Yes N/A No E. List any other departments the report affects: 1. Administrative Services Department 2. Has it been discussed with each? Yes X No F. List any attachments: A. Ordinance with original agenda item (recycled) B. C. D. G. Evaluate the potential environmental impact of his Agenda Item: 1. No potential impact X 2. Categorically exempt Class 3. Negative declaration 4. Environmental Impact Report Submitted by: ,�� , ,��_�� , Date: January 16, 1997 David E. Niederhaus, Director City Council Agenda Item No. January 13, 1997 TO: Mayor and City Council FROM: General Services Director SUBJECT: Resolution of Intention to Grant Nonexclusive Commercial Solid Waste Collection Franchises Recommendation Approve the attached Resolution of Intention to grant Non -Exclusive Solid Waste Collection Franchises to two private solid waste haulers: Zakaroff Services and TightQuarters, Inc. History On October 9, 1995, in preparation for the regulation of solid waste activities through the use of a Commercial Solid Waste Collection Franchise System, Council directed staff to proceed with the preparation of a Resolution of Intention for subject franchise in accordance with Sections 413 and 1300-1306 of the City Charter. On October 19, 1995, a Resolution of Intention was approved by Council. At that time, the Resolution affected all private solid waste haulers interested in a franchise. No restrictions were made to the number of haulers granted franchises. However, a new resolution must be approved by Council should any new haulers request to operate in the City. The City now has two new solid waste haulers interested in being granted a franchise. Article XIII of the Charter addresses the procedure associated with the granting of franchises. One of the requirements is that a Resolution of Intention must be adopted and contain the name(s) of the proposed grantee(s), the character of the franchise, and the terms and conditions upon which it is proposed to be granted. The Resolution must also designate the time and place at which the resolution would be subject to public comment. Discussion The attached resolution, similiar to the Resolution of Intention approved by Council on October 19, 1995, provides the reasons for the necessity of a franchise, the terms and conditions of the franchise, and a listing of all current solid waste haulers interested in obtaining a franchise. In addition, the resolution designates January 13, 1997 as the date of public review. The following terms and conditions of the resolution necessitate a further explanation as follows: a. Implementation Date (February 1, 1997) - The earliest possible date following the Charter requirements to grant franchises. b. Monthly Franchise Fee (6.5% to 10.5%) - The funds are placed in the General Fund and will be used for: future recycling needs such as update of the Source Reduction and Recycling Element, future waste audits, commercial recycling programs, and administrative expenses; and additionally for General Fund expenses such as road maintenance, sweeping, and etc. The fee percentage increases 1% per year to a maximum of 10.5%. The fee is currently 6.5%. c. Term (10 years) - A term of 10 years allows stability for the haulers to amortize new equipment and facilities and become more efficient. d. City Environmental Liability Fund - Franchisee shall pay to the City Environmental Liability Fund 5.5% of gross receipts for all commercial solid waste handling services provided by the Franchisee in the City during the prior reporting period. Funds will be used to fund insurance premiums for City protection from liability associated with the disposal of solid waste. e. Location of Disposal (City future option) - The City reserves the right to designate the location of disposal. If the Council approves the attached Resolution of Intention to grant Non - Exclusive Solid Waste Collection Franchises to Zakaroff Services and Tight Quarters, Inc., staff will prepare an agenda item recommending the award of the two franchises for the January 27, 1997 Council Meeting. Very respectfully, I� .Nie er aus DEN/pp Attachment: Resolution of Intention RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO CONDUCT A PUBLIC HEARING TO CONSIDER THE GRANTING OF NON-EXCLUSIVE FRANCHISES FOR ADDITIONAL COMMERCIAL SOLID WASTE HAULERS WITHIN THE CITY OF NEWPORT BEACH WHEREAS, the City Council finds and determines that the collection of solid waste generated within the City is a vital public service and that the storage, accumulation, collection, and disposal of solid waste and recyclables is a matter of great public concern because improper control of such matters would subject the City to potential liability, damages and penalties and may create a public nuisance, air pollution, fire hazard, rat and insect infestation, and other problems affecting the public health, safety and welfare. WHEREAS, non-exclusive franchises for the use of public streets to provide commercial solid waste hauling services will promote the public health, safety, and welfare by among other things prorating perrranence and stability among those businesses wishing to provide such service and accountability to the City for compliance with current and future state mandates. WHEREAS, pursuant to Article XIII of the City Charter and pursuant to Sections 49500 through 49523 of the Public Resources Code, the City is authorized to enter into non-exclusive franchise agreements for commercial solid waste collection services with private solid waste haulers. NOW, THEREFORE, be it resolved by the City Council of the City of Newport Beach that: 1. A public hearing shall be conducted on January 13, 1997, at 7:00 p.m., or as soon thereafter as practical in the City Council Chambers, 3300 Newport Boulevard, Newport Beach, California, to consider the granting of a franchise to each of the below listed solid waste haulers pursuant to the following terms and conditions: a. Implementation date: February 1, 1997. b. Monthly franchise fee: 6.5% of gross monthly receipts for the first year increasing by 1% per year with a cap of 10.5%. C. Term: Ten years with renewal rights upon mutual agreement of the franchisee and City. d. Bin rates: No set rates. e. Franchisee shall indemnify and hold harmless City from environmental liability for the franchisee's operations in the City and pay to the City Environmental Liability Fund 5.5% of gross receipts for all commercial solid waste handling services provided by the Franchisee in the City during the prior reporting period. f. Franchisee shall indemnify and hold harmless City from penalties and damages for failure to meet current and future state recycling requirements. g. Location of disposal: City right to designate location of landfill. h. Billing and collection responsibility: Private haulers. i. No revocation of franchise unless there is a default under the agreement. j. Minimum hauler qualifications -- Liability insurance, suitable equipment, knowledge of solid waste regulations, load check programs, etc. k. Public education requirements provided by haulers to customers on recycling and source reduction. 1. City authority to annually audit hauler's financial records relating to the payment of fees required under the franchise. M. Compliance with all State, Federal laws and regulations, terms and conditions of franchise agreement, City Charter and Municipal Code. 2. The City proposes to offer a non-exclusive solid waste collection franchise to each of the following listed solid waste haulers who are presently licensed and permitted to conduct solid waste collection activities in the City. Persons who have an interest in or objection to the proposed franchises may appear before the City Council and be heard on the date and time listed in Paragraph 1 above. a. Zakaroff Services, Rouben Kandilian, President b. Tight Quarters, Inc., Telford T. Cottam, President 3. This Resolution of Intention shall be published in the City's official newspaper within 15 days of its adoption and at least 10 days prior to January 13, 1997. ATTEST: CITY CLERK Adopted this 13th day of January, 1997 MAYOR REPORT F0%.j UNCIL AGENDA _b For Agenda January 13, 1997 Date A. Title of report: Resolution of Intention to Grant Nonexclusive Commercial Solid -Waste Collection Franchises B. Report initiated by: City Council City Manager Other General Services Director Date Date Date December 23 1996 C. Does the report include a resolution, ordinance, agreement or other legal matter? Yes X No D. a) Does the report recommend an expenditure? b) Were the funds budgeted in the approved budget? Yes No X (a) Has it been approved by the Administrative Services Director? Yes N/A No E. List any other departments the report affects: 1. Administrative Services Department 3. 2. 4. Has it been discussed with each? Yes X No F. List any attachments: A. Resolution of Intention B. C. D. E. F. G. Evaluate the potential environmental impact of his Agenda Item: 1. No potential impact X 2. Categorically exempt Class 3. Negative declaration 4. Environmental Impact Report Submitted by: 5 � 1 —A '_' Date: December 23, 1996 David E. Niederhaus, Director