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Home My WebLink About04 - Terminate Commerical Solid Waste AgreementCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 4 March 23, 2004 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: General Services Department David E. Niederhaus, Director, 949 - 644 -3055, dniederhaus(cDcity.newport - beach.ca.us SUBJECT: Termination of Non - exclusive Commercial Solid Waste Franchise Agreement ISSUE: Should the City terminate the solid waste franchise agreement between the City of Newport Beach and C &N Waste Services? RECOMMENDATION: Adopt attached Resolution No. 2004-_ terminating the solid waste franchise agreement between the City of Newport Beach and C &N Waste Services. DISCUSSION: Background: Per Chapter 12.60.030 of the Newport Beach Municipal Code, the City currently has solid waste non - exclusive franchise agreements with twenty -two solid waste hauling firms. One of the twenty -two firms has requested that the City terminate their solid waste franchise. The firm desiring to voluntarily terminate their franchise agreement is C &N Waste Services (Attachment A). Per Chapter 12.63.130 of the City Municipal Code, the City Council has sole authority to terminate and assign any non - exclusive commercial solid waste collection franchise. Staff, with the assistance of the Assistant City Attorney, has prepared a resolution and agreement to terminate the Franchise. Approval of the attached document will in no way relieve C &N Waste Services of current nor previous franchise fee obligations. According to the City's Revenue Division, C &N Waste Services currently owes the City Termination of Franchise March 23, 2004 Page 2 $256.61 in franchise fees. This agreement will not be executed until these fees have been paid. Environmental Analysis: Not a project under CEQA. Prepared by: Submitted by: Jeremy;Hammond, David E. Niederhaus, Management Assistant Director Attachments: (A) C &N Waste Services letter requesting voluntary termination (B) Proposed Resolution No. 04- __ terminating the Franchise Agreement with C &N Waste Services (B) Agreement to Surrender Commercial Solid Waste Collection Franchise Agreement between the City of Newport Beach and C &N Waste Services Is L ..I 0 FOR JEREMY FAX (949)650 -0747 FROM NANCY AND CATHY ARAKELIAN OWNERS OF C&N WASTE INCORPORATED March 10, 2004 First and foremost Catherine and I want to commend the city of Newport Beach for bei democratic when it comes to competition, We appreciate having had the right to serve citizenry of Newport Beach. We decided to sell all assets having to do with waste collection a few months back to company you are no doubt familiar with, "CR &R." Catherine and I sold to CR &R because they have an excellent record for treating custome #'s right and they run a solid company that will continue to excel in the years to come. I We want to bring to your attention and to the attention of all citizens that our other cowl "Integrated Recycling / CALshred," is now our primary business and we are doing paper /document shredding and recycling. We can handle a wide variety of services, froi to a private residence for old file boxes of tax records that need shredding, to doing regu nthly services in offices all over Orange County. We offer locking in -house contain ve two beautiful recycle trucks that fit in aesthetically with the clean look of Newport and surrounding Orange County environs. Many citizens were refereed by the city of N Beach to call us as a choice when we did waste removal, and we would appreciate if the would please refer people to call us for recycling/shredding of office paper or home doc and warehouse document destruction. going and Thank you immensely and Catherine and I appreciate all Newport Beach has done for o family. We are two sisters trying our best to be entrepreneurs and offer a much needed s rvice and know we couldn't do it without cities like yours promoting good, healthy services t help the environment. Sincerely, Nancy and Catherine Arakelian r 1, RESOLUTION NO. 2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH TERMINATING THE COMMERCIAL SOLID WASTE COLLECTION FRANCHISE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND C &N WASTE SERVICES WHEREAS, on November 13, 2001, the City of Newport Beach granted a Non- exclusive Franchise to C &N Waste Services for commercial solid waste collection services ( "Franchise Agreement'); and, WHEREAS, on February 23, 2004 and March 10, 2004, the City was notified by telephone and letter that C &N Waste Services is no longer operating within the City of Newport Beach; and, WHEREAS, C &N Waste Services has requested, in writing, that the City terminate the Franchise Agreement; and, WHEREAS, the City Council has been presented with an agreement to terminate the Franchise Agreement; and that: NOW, THEREFORE, be it resolved by the City Council of the City of Newport Beach 1. The City Council hereby approves the termination of the Franchise Agreement with C &N Waste Services. The Agreement to Surrender the Commercial Solid Waste Collection Franchise Agreement between the City of Newport Beach and C &N Waste Services attached hereto as Exhibit "A ", is hereby approved and the City Manager is authorized to execute the Agreement as written. Adopted this _ day of , 2004 0 • 6. FRANCHISEE agrees that it will obtain a new franchise agreement with the CITY prior to initiating future solid waste collection services within the City limits. WITNESS THE EXECUTION OF THIS AGREEMENT ON THE DATE WRITTEN BELOW EACH SIGNATUE: "CITY" CITY OF NEWPORT BEACH, A Municipal Corporation Dated: By: Homer Bludau City Manager ATTEST LaVonne Harkless City Clerk 0 "FRANCHISEE" APPROVED AS TO FORM: Robin L. Clausen Assistant City Attorney • C &N Waste Seiwices By: Name: Title: Date: EXHIBIT "A" • AGREEMENT TO SURRENDER COMMERCIAL WASTE COLLECTION FRANCHISE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND C &N WASTE SERVICES This Agreement is entered into on this day, the day of 2004 and executed by and between the CITY OF NEWPORT BEACH, a municipal corporation ( "CITY ") and C &N WASTE SERVICES ( "FRANCHISEE "). RECITALS Pursuant to City Ordinance No. 01 -87, CITY and FRANCHISEE entered into a Commercial Solid Waste Collection Franchise Agreement dated November 13, 2001 ( "AGREEMENT "). On March 10, 2004, CITY was notified by letter that FRANCHISEE is no longer operating within the CITY. NOW THEREFORE, CITY and FRANCHISEE agree as follows: 1. The AGREEMENT is hereby terminated, retroactively effective on March 10, 2004 and shall be of no further force and effect. 2. By signing this agreement, FRANCHISEE agrees to surrender all rights to do business as C &N Waste Services to operate commercial solid waste collection services within the City limits. 3. FRANCHISEE shall be liable for payment to the CITY of all applicable fees associated with the FRANCHISEE's performance of solid waste collection services performed during the term of this AGREEMENT through March 10, 2004 including but not limited to the following: a. Current and outstanding Franchise Fees b. All applicable charges associated with late payment of Franchise Fees pursuant to Section 4 of this AGREEMENT C. All applicable charges associated with report delinquencies pursuant to Section 6 of the AGREEMENT 4. FRANCHISEE agrees to submit any outstanding Disposal Reports per Section 6 of the AGREEMENT including Quarterly Disposal Report for the activity performed through March 10, 2004. 5. FRANCHISEE agrees that it has removed, or will remove within fifteen days after City Council approval of this agreement all equipment from FRANCHISEE's • service locations within the City limits. "CITY" CITY OF NEWPORT BEACH, A Municipal Corporation Dated: By: ATTEST: CITY CLERK is MAYOR RESOLUTION NO. 2004- 25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH TERMINATING THE COMMERCIAL SOLID WASTE COLLECTION FRANCHISE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND C &N WASTE SERVICES WHEREAS, on November 13, 2001, the City of Newport Beach granted a Non - exclusive Franchise to C&N Waste Services for commercial solid waste collection services ( "Franchise Agreement"); and, WHEREAS, on February 23, 2004 and March 10, 2004, the City was notified by telephone and letter that C &N Waste Services is no longer operating within the City of Newport Beach; and, WHEREAS, C &N Waste Services has requested, in writing, that the City terminate the Franchise Agreement; and, WHEREAS, the City Council has been presented with an agreement to terminate the Franchise Agreement; and that: NOW, THEREFORE, be it resolved by the City Council of the City of Newport Beach 1. The City Council hereby approves the termination of the Franchise Agreement with C &N Waste Services. The Agreement to Surrender the Commercial Solid Waste Collection Franchise Agreement between the City of Newport Beach and C&N Waste Services attached hereto as Exhibit "A ", is hereby approved and the City Manager is authorized to execute the Agreement as written. Adopted this 23rd day of March, 2004. MAYOR ATTEST: EXHIBIT "A" • AGREEMENT TO SURRENDER COMMERCIAL WASTE COLLECTION FRANCHISE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND C &N WASTE SERVICES This Agreement is entered into on this day, the day of 2004 and executed by and between the CITY OF NEWPORT BEACH, a municipal corporation ( "CITY ") and C &N WASTE SERVICES ( "FRANCHISEE "). RECITALS Pursuant to City Ordinance No. 01 -87, CITY and FRANCHISEE entered into a Commercial Solid Waste Collection Franchise Agreement dated November 13, 2001 ( "AGREEMENT "). On March 10, 2004, CITY was notified by letter that FRANCHISEE is no longer operating within the CITY. NOW THEREFORE, CITY and FRANCHISEE agree as follows: 1. The AGREEMENT is hereby terminated, retroactively effective on March • 10, 2004 and shall be of no further force and effect. 2. By signing this agreement, FRANCHISEE agrees to surrender all rights to do business as C &N Waste Services to operate commercial solid waste collection services within the City limits. 3. FRANCHISEE shall be liable for payment to the CITY of all applicable fees associated with the FRANCHISEE's performance of solid waste collection services performed during the term of this AGREEMENT through March 10, 2004 including but not limited to the following: a. Current and outstanding Franchise Fees b. All applicable charges associated with late payment of Franchise Fees pursuant to Section 4 of this AGREEMENT C. All applicable charges associated with report delinquencies pursuant to Section 6 of the AGREEMENT 4. FRANCHISEE agrees to submit any outstanding Disposal Reports per Section 6 of the AGREEMENT including Quarterly Disposal Report for the activity performed through March 10, 2004. 5. FRANCHISEE agrees that it has removed, or will remove within fifteen • days after City Council approval of this agreement all equipment from FRANCHISEE's service locations within the City limits. 6. FRANCHISEE agrees that it will obtain a new franchise agreement with the CITY prior to initiating future solid waste collection services within the City limits. WITNESS THE EXECUTION OF THIS AGREEMENT ON THE DATE WRITTEN BELOW EACH SIGNATUE: "CITY" CITY OF NEWPORT BEACH, A Municipal Corporation Dated: By: Homer Bludau City Manager ATTEST LaVonne Harkless City Clerk "FRANCHISEE" C &N Waste Services By: Name: Title: Date: APPROVED AS TO FORM: Robin L. Clauson Assistant City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE CITY OF NEWPORT BEACH 1 I, LaVonne M. Harkless, City Clerk of the City of Newport Beach. California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing resolution, being Resolution No. 2004 -25 was duly and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council; duly and regularly held on the 23rd day of March, 2004, and that the same was so passed and adopted by the following vote, to wit: Ayes: Heffernan. Rosansky, Adams, Bromberg. Webb, Nichols, Mayor Ridgeway Noes: None Absent: None Abstain: None IN WITNESS WHEREOF. I have hereunto subscribed my name and affixed the official seal of said City this 24th day of March. 2004. (Seal) City Clerk Newport Beach, California