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Home My WebLink About06 - Solid Waste CollectionCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 6 February 27, 2007 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Attorney's Office Aaron Harp, Assistant City Attorney 949/644 -3131 or aharp @city.newport - beach.ca.us SUBJECT: COMMERCIAL EXPRESSING COMMERCIAL FRANCHISEES ISSUE: SOLID WASTE COLLECTION: RESOLUTION THE CITY'S INTENT TO GRANT NON - EXCLUSIVE SOLID WASTE COLLECTION FRANCHISES TO Should the City publish a notice that it intends to award Franchises and enter into franchise agreements with those Commercial Solid Waste Collection Companies listed in Exhibit A? RECOMMENDATION: Adopt the attached resolution expressing the City's intent to award Franchises and enter into franchise agreements with those Commercial Solid Waste Companies listed in Exhibit A. DISCUSSION: 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 waste stream 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 50% recycling rate. 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 Resolution of Intent — Solid Waste Franchise Agreement February 27, 2007 Page 2 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, among other things, 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 -five 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. All of the existing franchises are set to expire as of March 1, 2007. Pending completion of the public hearing and Council approval on March 13th and 27th, 2007, the franchises awarded to those persons and entities listed in Exhibit A will be applied retroactively to March 1, 2007 and will expire on March 1, 2012. Environmental Analysis: NIA Public Notice: This agenda item may be noticed according to the Brown Act (72 hours in advance of the public meeting at which the City Council considers the item). Prepared by: Submitted by: aw— C. w_ e-� C-�—� Aaron Harp, Ifd,,' Robin Clauson, Assistant City Attorney City Attorney Attachments: Exhibit "A" Resolution 2007- RESOLUTION NO. 2007- 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 NON - EXCLUSIVE COMMERCIAL SOLID WASTE COLLECTION FRANCHISES TO FRANCHISEES WHEREAS, the City Council finds and determines that providing for the collection of commercial solid waste within the City is a vital public service and is a matter of great public concern because solid waste haulers use the public right -of -way and improper solid waste management creates the potential for public nuisance, air pollution, fire hazards, rat and insect infestation and other problems affecting the public health, safety and welfare; and WHEREAS, non - exclusive franchises for use of the public right -of -way to provide commercial solid waste handling 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 XIII of the City Charter, Chapter 12.63 of the Newport Beach Municipal Code, and Sections 49300 and 49500 -49523 of the Public Resources Code, the City is authorized to grant a franchise to provide commercial solid waste handling services with private solid waste providers; and, WHEREAS, those persons and entities set forth in Exhibit A hereto ( "Franchisees ") have requested a non - exclusive franchise to provide commercial solid waste handling services. -11- NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: A public hearing shall be conducted on March 13, 2007, 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 non - exclusive franchises to the Franchisees pursuant to the following terns and conditions: a. Franchise effective date: Upon approval of the City Council, each franchise will be effective as of March 1, 2007. b. Franchise fee: Ten and a half percent (10.5 %) of gross receipts for all commercial solid waste handling services provided by the Franchisee in the City. C. Environmental liability fund fee: Five and a half percent (5.5 %) of gross receipts for all commercial solid waste handling services provided by the Franchisee in the City. d. Term of Franchise: From the effective date to March 1, 2012. e. Laws: Franchisee shall comply with all State, Federal and City laws and regulations, the terms and conditions of the franchise agreement, the City Charter, and the Newport Beach Municipal Code. Section 2: The City proposes to offer a non - exclusive franchise to Franchisees who are all presently licensed and permitted to conduct business in the City. Persons who have an interest in or objection to the proposed franchise may appear before the City Council and be heard on the date and time listed above. -2- Section 3: This Resolution of Intention shall be published in the City's official newspaper within fifteen (15) days of its adoption and at least ten (10) days prior to March 13, 2007. ADOPTED this day of 200_. ATTEST: LaVonne Harkless, City Clerk Steven Rosansky, Mayor -3- EXHIBIT A City of Newport Beach LICENSED & FRANCHISED COMMERCIAL SOLID WASTE HAULERS Russell Dix, General Manager Jerry Moffatt, Assistant Vice - President Republic Services /Consolidated Rainbow Disposal 12949 Telegraph Road Santa Fe 17121 Nichols Street Springs, CA 90670 Huntington Beach, CA 92647 Phone(714)238 -3300 Fax(714)238 -3304 Phone(714)847 -3581 Fax(714)841.4660 Don Shubin, President Federal Disposal PO Box 14730 Irvine, CA 92623 Phone(714)259.0908 George Lazaruk CR &R 11292 Western Avenue Stanton, CA 90680 Phone(714)890 -6300 Fax (714) 259 -0284 Fax (714) 890 -0961 Jesus Roberto Robert's Waste Recycling Inc. 926 W. Pomona Street Santa Ana, CA 92707 (714) 557 -2533 Fax (714) 664 -2946 Daniel Agajanian Direct Disposal 5901 Warner Ave 4229 Huntington Beach, CA 92649 Phone(323)262 -1604 Fax(714)849 -5056 Judith Ware, President Ware Disposal P.O. Box 8206 Newport Beach, CA 92658 Phone(714)834 -0234 Fax(714)664 -0696 David Ross, District Manager Waste Management of Orange County 1800 S. Grand Street Santa Ana, CA 92705 Phone(714)480 -2300 John Katangian, President Key Disposal, Inc. 1141 South Taylor Avenue Montebello, CA 90640 Phone(323)721 -5441 Fax (714) 559.1742 Fax(323)721 -8601 Newport Beach Municipal Code 12.63.030 Franchise to Operate Required - No person shall provide commercial solid waste handeling services or conduct a solid waste enterprise in the City without having first been awarded a franchise and entered into a franchise agreement with the City. 02)20!2007 EXHIBIT A City of Newport Beach OTHER FRANCHISED SOLID WASTE HAULERS (Construction & Demolition) Robert T. Hall, Vice President American Wrecking, Inc. 2459 Lee Ave. South El Monte, CA 91733 Phone(626)350 -8303 Bud Greenleaf, Owner Greenleaf Grading Company 7702 Yukon Drive Huntington Beach, CA 92648 Phone(714)842 -7655 Kevin Ray Kevin Ray Demolition Fax(626)350 -8322 David Lane, Owner The Lane Company 5113 W. Kent Ave. Santa Ana, CA 92704 Phone(714)775 -6905 Telford T. Cortaro, President Tight Quarters, Inc. 2031 S. Anne Street Santa Ana, CA 92704 Phone(714)557 -7901 Fax(714)241 -3820 David Thomas, President West Coast Land Clearing, Inc. 580 Explorer Street P. O. Box 90126 Brea, CA 92821 Long Beach, CA 90809 -0126 Phone(714)990 -8937 Fax(714)990 -8941 Phone(562)599 -2882 Fax(562)599 -2787 Nick Cousyn, Owner Rich B. Holt Cousyn Grading and Demolition Pacific Earthworks 2034 N. Capella Court 34249 Camino Capistrano # 216 Costa Mesa, Ca 92626 Capistrano Beach, CA 92624 Phone(714)557 -1566 Fax (714)557-1212 Phone(949)496 -1660 David Roche, Owner Roche Excavating 1051 East 6th Street Santa Ana, CA 92701 Phone(714)953.1650 Fax (714) 953 -1663 Tim Greenleaf Tim Greenleaf Engineering 18685 Main Street, Suite A -371 Huntington Beach, CA 92648 Phone(714)964 -1753 Fax(714)964 -1783 Mark Sahagian Southern California Environmental 25422 Trabuco Rd 9105-409 Lake Forest, CA 92630 Phone(949)770 -1768 Richard Ludt IRS Demolition 9309 Rayo Avenue South Gate, CA 90280 Phone(323)357.6900 Don Goodwin Goodwin Enterprises P.O. Box 7388 Capistrano Beach, CA 92624 Phone(949)498 -4680 John Thomas Progressive Land Clearing, dba Thomas Demolition 4505 Manhatten Beach Blvd. Lawndale, CA 90260 Phone(310)263 -0400 Jodi Preston Newport Coast Demolition 1278 Glenneyre St. # 198 Laguna Beach, CA 92651 Phone(949)645 -1479 John Branston JB Services PO Box 6982 Orange, CA 92863 Phone(714)547 -2555 Newport Beach Municipal Code 12.63.030 Franchise to Operate Required - No person shall provide commercial solid waste handeling services or conduct a solid waste enterprise in the City without having first been awarded a franchise and entered into a franchise agreement with the City. 02/20/2007