HomeMy WebLinkAbout20 - Non-Exclusive Solid Waste Collection FranchiseCOUNCIL AGENDA
CITY OF NEWPORT BEACH NO. I'D q - I j -� j
CITY COUNCIL STAFF REPORT
Agenda Item No. 3
August 24, 2004
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: General Services Department
David E. Niederhaus, Director, 949- 644 -3055
SUBJECT: Award of Non-Exclusive Solid Waste Collection Franchise to Direct
Disposal, Inc.
ISSUE:
Should the City Adopt the attached Resolution of Intention (Resolution No. 2004 -_) to
award a Non - exclusive Solid Waste Franchise to Direct Disposal, Inc. and to conduct a
public hearing on July 13, 2004?
RECOMMENDATION:
Adopt the attached Resolution of Intention (Resolution No. 2004 -_) to award a Non-
exclusive Solid Waste Franchise to Direct Disposal, Inc. and to conduct a public hearing
on September 14, 2004.
That the attached Ordinance No. 2004 -_ granting a Non - exclusive Solid Waste
Franchise to Direct Disposal, Inc. be introduced for a First Reading. It is recommended
that Council adopt the Ordinance granting the franchise at the conclusion of the
September 14, 2004 public hearing.
DISCUSSION:
Background:
Solid waste is collected, recycled, and disposed of by either City crews or commercial
solid waste haulers. City crews collect approximately 75% of all residential solid waste
while private haulers collect the remainder of the residential wastestream and all
commercial solid waste.
The City has an integrated solid waste management program wherein all solid waste
collection is monitored to ensure the health and safety of all residents and business
owners. A secondary consideration is the achievement of the State recycling mandates
(AB939), which include a 25% recycling rate by December 31, 1995, and a 50%
Franchise Award
August 24, 2004
Page 2
recycling rate by December 31, 2000. The 1995 mandate was achieved. The City was
found to have met the 2001 recycling mandate by the California Integrated Waste
Management Board and the 2002 rates are still under review.
If the City fa Is to continue to achieve the 50% recycling rate on an annual basis, a fine
of up to $10,000 per day can be imposed by the State for failure to make a good faith
effort at recycling.
One of the ways that staff has developed to manage solid waste operations and ensure
meeting the recycling mandate is through the issuance of non - exclusive solid waste
franchises to solid waste haulers and demolition contractors who apply to operate in the
City. In addition to mandating the recycling requirements for the private haulers, the
franchise stipulates a franchise fee in the amount of 16% of gross monthly paid receipts
to be paid to the City which funds environmental insurance premiums, staff work, and
road and alley repairs.
Article XIII of the City Charter (Granting of Franchises) and Chapter 12.63 of the
Municipal Code (Solid Waste Management) establish requirements and procedures to
grant a franchise to provide solid waste handling services within the City. There are
currently twenty solid waste franchisees operating under separate agreements to collect
and transport solid waste generated within the City limits. There is no limit on the
number of franchises that Council may approve. Such a policy permits competitive,
service - oriented refuse operations.
Staff recently received a franchise application from the following solid waste hauling
firm: Direct Disposal, Inc. The application submitted by Direct Disposal, Inc. meets the
minimum City qualifications per Section 12.63.050 (Application for a Franchise) of the
Municipal Code.
Pending completion of the public hearing and Council approval on September 14, 2004,
the franchise with Direct Disposal, Inc. will take effect October 14, 2004 and will expire
on January 9, 2006 at the end of the City's ten -year franchise program that began in
1996.
Prepared by:
Jere ' Hammond,
Man gement Assistant
Submitted by:
David E. Niederhaus,
Director
Attachments:
Franchise Award
August 24, 2004
Page 3
(1) Resolution No. 2004 -_ Resolution of Intent to conduct a public
hearing to consider the granting of a Non - Exclusive Solid Waste
Franchise to Direct Disposal, Inc.
(2) Ordinance No. 2004 - _Ordinance granting a Non - Exclusive Solid
Waste Franchise to Direct Disposal, Inc.
RESOLUTION NO. 2004-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH DECLARING ITS INTENTION
TO CONDUCT A PUBLIC HEARING TO CONSIDER
THE GRANTING OF A NON - EXCLUSIVE SOLID
WASTE FRANCHISE TO DIRECT DISPOSAL, INC.
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, infestation, and other problems affecting
the public health, safety and welfare; and,
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
promoting permanence and stability among those businesses wishing to provide such service and
accountability to the City for compliance with current and future state mandates, and,
WHEREAS, pursuant to Article XM of the City Charter and pursuant to Sections 49500
through 495 =3 of the Public Resources Code, the City is authorized to enter into non - exclusive
franchise agreements for c ommercial s olid w aste c ollection s ervices w ith p rivate s olid n' aste
haulers; and,
WHEREAS, Direct Disposal, Inc. and private firnn, has submitted an application
requesting a Non - exclusive Solid Waste Franchise that satisfies the City's application
requirements.
that:
NOW, THEREFORE, be it resolved by the City Council of the City of Newport Beach
1. A public hearing shall be conducted on September 14, 2004. 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 the applicants listed under Item 2 below
pursuant to the following terms and conditions:
a. Franchise effective date: October 14, 2004.
b. Franchise fee: 16% of gross monthly receipts.
c. A portion of the Franchise fee, 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.
d. Term of Franchise: October 14, 2004 to January 9, 2006 with renewal rights
upon mutual agreement of the franchisee and City.
e. The City shall not set the Franchisee's bin rates.
f. Franchisee shall indemnify and hold City harmless from penalties and damages
for failure to meet current and future state recycling requirements with respect
to the portion of the commercial solid waste stream collected by Franchisee.
g Designated disposal facility: City maintains the right to designate disposal
facilities to be used by Franchisee.
h. Franchisee shall be responsible for all billing and collection for its accounts.
i. Franchise shall not be revoked unless there is default under the agreement.
j. Prior to obtaining a Solid Waste Franchise, the applicants shall satisfy the City's
minimum qualifications regarding liability insurance, equipment, knowledL e of
solid waste regulations, load check programs, etc.
k. Franchisee shall meet City's requirements to implement recycling and source
reduction public education activities.
1. City has authority to annually audit Franchisee's financial records relating to the
payment of fees required under the franchise.
m. Franchisee shall comply with all State, Federal laws and regulations, tertus and
conditions of the franchise agreement, City Charter and Municipal Code.
2
2. The City proposes to offer a non - exclusive solid waste collection franchise to the
following ap.�licants listed below that are presently licensed and pennitted to conduct business 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 above.
a. Direct Disposal, Inc. Daniel Agajanian, Owner
3.
This Resolution of Intention shall be published in the Citys official newspaper
within 15 days of its adoption and at least 10 days prior to September 14, 2004.
ATTEST:
CITY CLERK
Adopted this 24`h day August, 2004
MAYOR
ORDINANCE NO. 2004-
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH GRANTING A NON- EXCLUSIVE SOLID
WASTE FRANCHISE TO DIRECT DISPOSAL, INC. TO
PROVIDE SOLID WASTE COLLECTION SERVICES UPON
THE CITY STREETS AND WITHIN THE CITY OF
NEWPORT BEACH
The City Council of the City of Newport Beach does ordain as follows:
SECTION 1: Findings
A. Article XIII of the City Charter and Sections 49500 through 49523 of the Public
Resources Code authorize the City to enter into non - exclusive franchise agreements for
commercial solid waste handling services with private solid waste enterprises.
B. The City Charter and Chapter 12.63 establish requirements and procedures to
grant a franchise to provide solid waste handling services within the City of Newport Beach.
C. In compliance with the City Charter a duly noticed public hearing was held on
September 9, 2003, to consider the granting of a franchise to Direct Disposal, Inc.
D. Having considered all oral and documentary evidence presented at the public
hearing, the City Council has determined that the granting of a non - exclusive franchise is in the
public interest.
SECTION 2: Definitions
All words, terms, phrases in this Ordinance shall have the meanings set forth in
Section 13.63.020 of Chapter 12.63 of the Newport Beach Municipal Code.
SECTION 3: Franchise Agreements
A. Grant of Franchises
There is hereby granted to the enterprises listed below (hereinafter, "Franchisee ") a
non - exclusive franchise to operate, maintain and provide solid waste handling services along,
across and over the public streets, alleys, public ways and public places dedicated for public use
in the City:
(a) Direct Disposal, Inc.
B. Non- exclusive Grant
The right to use City streets, alleys, public ways and places for the purposes set forth
in this Ordinance, shall not be exclusive and the City reserves the right to grant a similar use of
streets, alleys, public ways and places to any person at any time during the term of this franchise.
C. Term of Franchises
The term of the franchise per Section 2 of the Franchise Agreement ( "Agreement ")
attached hereto as Exhibit A, Commercial Solid Maste Collection Franchise Agreement between
the Citt' of .Neivport Beach and Direct Disposal, Inc. is hereby adopted, approved and
incorporated i nto this O rdinance by reference, sh all c ommence at 12:01 a .m., o n o ctober 14,
2004 and expire on January 9, 2006. The franchise shall take effect on the date specified above
provided that the grantee has filed written notice of acceptance in accordance with the
requirement of Section 4 of this Ordinance.
D. Franchise Fees
(1) During the term of the Agreement, Franchisee shall pay to City franchise fees for
the privilege of providing commercial solid waste handling services in the City of Newport
Beach and use of public streets, right of ways and places for such purposes. Fees shall be in the
following amounts:
Franchisee shall pay to the City 10.5°% (ten and one -half percent) of the Franchisee's
gross receipts. Franchise fee payments shall be paid quarterly and shall be computed and paid on
the basis of paid receipts received by the Franchisee for all solid waste handling services
provided by tl,.e Franchisee within the City.
One -half of one percent (0.5 %) of the franchise fee shall be attributable to the
maintenance and implementation of the City's Source Reduction and Recycling Element
(SRRE), and shall be separately accounted for, and used only for the costs stated in Public
Revenue Code Section 41901 or any successor provisions.
(2) Franchisee shall pay to the City Environmental Liability Fund, on a quarterly
basis, 5.5% cf gross receipts for all commercial solid waste handling services provided by the
Franchisee in the City. Payment shall be made concurrently with the payment of the franchise
fee and the f'.ing of reports specified in Section 4 and Section 6 of the Agreements.
E. Inclusion of Franchise Documents
Franchisee shall comply with and shall be bound by all of the terms, provisions and
conditions contained in the City Charter, this Ordinance, Chapter 12.63 of the Newport Beach
Municipal Code and the Franchise Agreement.
SECTION 4: Effective Date
This Ordinance shall become effective 30 days from and after the date of its adoption;
provided, however, franchises granted by this Ordinance shall not become effective unless and
until the grantee files written acceptance of the franchise with the City Clerk, and delivers to the
City all bonds and insurance policies required to be furnished in accordance with the
requirements of Chapter 12.63 of the Newport Beach Municipal code and the Franchise
Agreement. The written acceptance shall be in form and substance as prescribed by the City
Attorney and shall operate as an acceptance of e ach and every term, condition and limitation
contained in this Ordinance, the Franchise Agreement, Article XIII of the City Charter, and
Chapter 12.63 of the Newport Beach Municipal Code. The grantee shall file written acceptance
of the franchise no later than ten (10) days after the adoption of this Ordinance.
SECTION 5: CEQA Exemption
The City Council of the City of Newport Beach finds that this Ordinance is
categorically exempt under the California Code of Regulations Sections 15301 and 1�3US
defined as "existing operations and facilities" and as "actions by regulatory agencies for
protection of the environment" respectively. Use of the above exemption classifications are
appropriate because this Ordinance does not change nor expand existing solid waste operations
and facilities within the City. The Ordinance is also consistent with the goals of California State
Assembly Bill 939, The California Solid Waste Management Act as well as the objectives of the
City's Source Reduction and Recycling Element (SRRE). The City Manager is authorized to
execute and the City Clerk to file a Notice of Exemption with the Orange County Clerk.
SECTION 6: Severability
If any section, subsection, sentence, c lause or p lease o f this Ordinance 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 Ordinance. The City Council hereby declares
that it would have passed this Ordinance, and each section, subsection. clause or phase thereof.
irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases
be declared unconstitutional.
SECTION 7: Adoption of Ordinance
This Ordinance was introduced at a regular meeting of the City Council of the City of
Newport Beach, held on the 24`h day of August 2004, and adopted on the 14`h day of September
2004, by the following vote to wit:
AYES, COUNCIL MEMBERS
NOES, COUNCIL MEMBERS
ABSTAINED, COUNCIL MEMBERS
ABSENT, COUNCIL MEMEBERS
MAYOR
ATTEST:
CITY CLERK.
1 0 0
RESOLUTION NO. 2004-76
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH DECLARING ITS INTENTION
TO CONDUCT A PUBLIC HEARING TO CONSIDER
THE GRANTING OF A NON - EXCLUSIVE SOLID
WASTE FRANCHISE TO DIRECT DISPOSAL, INC.
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, infestation, and other problems affecting
the public health, safety and welfare; and,
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
promoting permanence and stability among those businesses wishing to provide such service and
accountability to the City for compliance with current and future state mandates; and,
WHEREAS, pursuant to Article = 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; and,
WHEREAS, Direct Disposal, Inc. and private firm, has submitted an application
requesting a Non - exclusive Solid Waste Franchise that satisfies the City's application
requirements.
NOW, THEREFORE, be it resolved by the City Council of the City of Newport Beach
RIM
1. A public hearing shall be conducted on September 14, 2004, at 7:00 p.m., or as soon
thereafter as practical in the City Council Chambers, 3300 Newport Boulevard, Newport Beach,
C, ,
04 �d s-t,r-ti.A g -as Jy
California, to consider the granting of a franchise to the applicants listed under Item 2 below
pursuant to the following terms and conditions:
a. Franchise effective date: October 14, 2004.
b. Franchise fee: 16% of gross monthly receipts.
c. A portion of the Franchise fee; 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.
d. Term of Franchise: October 14, 2004 to January 9, 2006 with renewal rights
upon mutual agreement of the franchisee and City.
e. The City shall not set the Franchisee's bin rates.
f. Franchisee shall indemnify and hold City harmless from penalties and damages
for failure to meet current and future state recycling requirements with respect
to the portion of the commercial solid waste stream collected by Franchisee.
g. Designated disposal facility: City maintains the right to designate disposal
facilities to be used by Franchisee.
h. Franchisee shall be responsible for all billing and collection for its accounts.
i. Franchise shall not be revoked unless there is default under the agreement.
j. Prior to obtaining a Solid Waste Franchise, the applicants shall satisfy the City's
minimum qualifications regarding liability insurance, equipment, knowledge of
solid waste regulations, load check programs, etc.
k. Franchisee shall meet City's requirements to implement recycling and source
reduction public education activities.
1. City has authority to annually audit Franchisee's financial records relating to the
payment of fees required under the franchise.
m. Franchisee shall comply with all State, Federal laws and regulations, terms and
conditions of the franchise agreement, City Charter and Municipal Code.
2
2. The City proposes to offer a non - exclusive solid waste collection franchise to the
following applicants listed below that are presently licensed and permitted to conduct business 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 above.
a. Direct Disposal, Inc. Daniel Agajanian, Owner
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 September 14, 2004.
Adopted this 24th day August, 2004
ATTEST:
al�o //�_ vc��Z)a'
CITY CLERK
3
MAYOR
STATE OF CALIFORNIA }
COUNTY OF ORANGE
CITY OF NEWPORT BEACH ;
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. 2004.76 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 24th
day of August, 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 25th day of August, 2004.
(Seal)
6�9&9�" A,
City Clerk
Newport Beach, California
Authorized to Publish Advertisements of all kinds including public notices by
Decree of the Superior Conrr of Orange County, California. Number A -6214,
September 29, 1961, and A -24831 June 11, 1963.
PROOF OF PUBLICATION
STATE OF CALIFORNIA)
) ss.
COUNTY OF ORANGE )
1 am a Citizen of the United States and a
resident of the County aforesaid; I am
over the age of eighteen years, and not a
party to or interested in the below entitled
matter. I am a principal clerk of the
NEWPORT BEACH - COSTA MESA
DAILY PILOT, a newspaper of general
circulation, printed and published in the
City of Costa Mesa, County of Orange,
State of California, and that attached
Notice is a true and complete copy as
was printed and published on the
following dates:
August 28, 2004
I declare, under penalty of perjury, that
the foregoing is true and correct.
Executed on August 28, 2004
at Costa Mesa, California.
Signature
f: IVE:D
'04 SEP -3 A10 :03
OFFICE OF THE CiTY CLERK,
CITY OF "EWFORT BEACli
RESOLUTION NO. 2004-76
RESOUITHIN OF THE CRY COUNCIL OF THE CRY OF NEWPORT BEACH DECURO
S RNTENTION,TO CONDUCT A PUBLIC HEARING TO CONSIDER THE GRANTING OF
*EXCWSNE SOLID WASTE FRANCHISE TO DIRECT DISPOSAL, BFC
WHEREAS. the City Council finds and determines that the collection
slid waste generated within the City is a vital public service and th
e storage, accumulation, collection, and disposal of Solid waste ai
cyclables is a matter of great public concern because improper contr
such matters would. subject the City to potential liability, damag
,d penalties and may create a public nuisance, air.pollulion, fire hazer
testation, and other problems affecting the public health, safety at
elfare; and,
WHEREAS, non - exclusive franchises for the use of public streets
'ovide commercial solid waste hauling services will promote the publ
:alth, safely, and welfare by promoting permanence and stability amen
lose businesses 'wishing to provide such service and accountability
e City for compliance with current and future stale mandates; and,' -
WHEREAS, pursuant to Article XIII of the City Charter.and yurivant
actions 49500 through 49523 of the Public Resources Code, the, City
iplication requesting a Non- exclusive Solid Waste Franchise that satisfl
ie City's application requirements.
NOW. 'THEREFORE, be it resolved by the City: Council of the City
!wporl Beach that:
1. A public hearing shall be conducted on September 14, 2004, at 7:
m., or as soon thereafter as practical: in the City Council Chambe
300 .Newport Boulevard, Newport Beach, California, to consider f
'anting of a franchise -to the applicants listed tinder Item .2 bel
rrsuant to the following terms and conditions:
a. Franchise effective date: October 14, 2004.
b. Franchise fee: 16% of gross monthly receipts.
c. A portion of the Franchise fee, 5.5 %,. shall be earmarked for I
rrposes of indemnifying and holding the City harmless from envifonmen
ibility associated with the Franchisee's operations %in the City. TI
j4tion of the Franchise fee shall be paid into the City's Environmen
ability Fund.
d. Term of Franchise: October 14. 2004 to January 9, 2006 with cener
ghts upon mutual agreement of the franchisee and City.
e. The City shall not set the Franchisee's bin rates. :
I. Franchisee shall indemnify and hold. City harmless from penalties a
images for failure to meet current and future state recycling requiremei
ith respect to the portion of the commercial solid waste stream collect
,Franchisee.
g. Designated disposal facility: City maintains the right to design
sposal facilities to be used by Franchisee.
h. franchisee shall he responsible for all billing and collection for
:counts.
i. Franchise shall not be revoked unless there is default under I
j. Prior to obtaining a Solid Waste Franchise, the applicants shelf sati,
te City's minimum qualifications regarding liability insurance. equipme
,owledge of solid waste regulations, load check programe,.e .
k. Franchisee shall meet City's requirements to implement recycling a
,urce reduction public education activities.
I. City has authority to annually audit Franchisee's financial recur
m. Franchisee shall comply with all State, Federal laws and regutations,
ums and conditions of the franchise agreement, City Charter and
unicipal Code.
2. The City proposes to offer a non - exclusive solid waste collection
anchise to the following applicants listed below that are presently
sensed and permitted to conduct business in the City. Persons who
eve an interest in or objection to the proposed franchises may appear
!fore the City Council and be heard on the dale and time listed above.
a. Direct Disposal. Inc. Daniel Agaianian, Owner
3. This Resolut m of Intention shall be published in the City's official
lwspaper within 15 days'of its adoption and at least 10 days prior to
!ptember 14,2004.
dopted this 24th day August. 2004
/S Tod W. Ridgeway, MAYOR
ATTEST: / / LaVenne g. Narklass, CITY CLERK