HomeMy WebLinkAbout15 - Interior Removal Specialist Non-Exclusive Solid Waste Collection FranchiseCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
COUNCIL AGENDA
i6
9 -a s - O b
Agenda Item No. 9
June 27, 2006
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: General Services Department
Mark Harmon, Director, 949 - 644 -3055, mharmon ar7citv.newport-
beach.ca.us
SUBJECT: Award of Non - Exclusive Solid Waste Collection Franchise to
Interior Removal Specialist, Inc.
ISSUE:
Should the City Council adopt the attached Resolution of Intention (Resolution
No. 2006 -_) to award a Non - exclusive Solid Waste Franchise to Interior
Removal Specialist, Inc. and to conduct a public hearing on July 25, 2006?
RECOMMENDATION:
Adopt the attached Resolution of Intention (Resolution No. 2006 -_) to award a
Non - exclusive Solid Waste Franchise to Interior Removal Specialist, Inc. and to
conduct a public hearing on July 25, 2006.
Introduce the attached Ordinance No. 2006 -_ granting a Non - exclusive Solid
Waste Franchise to Interior Removal Specialist, Inc. for a first reading. It is
recommended that Council adopt the Ordinance granting the franchise at the
conclusion of the July 25, 2006 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.
4
Award of Non - Exclusive Solid Waste Collection Franchise to Interior Removal
Specialist, Inc
June 27, 2006
Page 2
The City's integrated solid waste management program is structured to ensure
the health and safety of all residents and business owners. In addition, AB939
requires cities in California to divers: 50% of municipal solid waste from the landfill
each year. Since this mandate was initiated in 2000, the City has met the
statewide requirements in 2001, 2002, 2003, and 2004. If the City fails to
achieve the 50% diversion rate, a fine of up to $10,000 can be imposed by the
California Integrated Waste Management Board.
The City utilizes a non - exclusive franchise system to manage commercial solid
waste collection. This system helps the City in its efforts to meet AB939
requirements and also establishes a competitive commercial solid waste
collection system for businesses in the City. Additionally, the franchise system
stipulates a franchise fee in the amount of 16% of gross monthly paid receipts be
paid to the City. These funds are used to fund environmental insurance
premiums, maintenance of city infrastructure, and administrative costs tied to
managing the franchise system.
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 -two 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: Interior Removal Specialist, Inc. The application submitted by
Interior Removal Specialist, 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 July 25, 2006,
the franchise with Interior Removal Specialist, Inc. will take effect August 24,
2006 and will expire on March 1, 2:007 at the end of the City's one -year extension
of the franchise program that initially began in 1996.
Environmental Review:
N/A
Award of Non - Exclusive Solid Waste Collection Franchise to Interior Removal
Specialist, Inc
June 27, 2006
Page 3
Public Notice:
The Resolution of Intention will be published in the City's official newspaper
within 15 days after its adoption and at least 10 days prior to the public hearing to
award the Franchise.
Prepared by:
Andrea M. Riles
Management Assistant
Submitted by:
Director
Attachments:
(1) Resolution No. 2006 - Resolution of Intent to conduct a
public hearing to consider the granting of a Non - Exclusive Solid
Waste Franchise to Interior Removal Specialist, Inc.
(2) Ordinance No. 2006 - _Ordinance granting a Non - Exclusive
Solid Waste Franchise to Interior Removal Specialist, Inc.
RESOLUTION NO. 2006-
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 INTERIOR REMOVAL
SPECIALIST 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 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; and,
WHEREAS, Interior Removal Specialist, Inc., a 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
that:
1. A public hearing shall be conducted on July 25, 2006, 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: August 24, 2006.
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: August 24, 2006 to March 1, 2007 with renewal rights upon
mutual agreement of the franchisee and City.
e. The City shall not set the Franchisee's bin rates.
Franchisee shall indemnify and hold City harmless from penalties and damages
for failure to meet current and fixture 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.
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.
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 tc offer a non - exclusive solid waste collection franchise to the
following applicant 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 franchise may appear before the City Council and be heard on the date
and time listed above;.
a. Interior Removal Specialist, Inc.
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 July 25, 2006.
Adopted this 27'h day June, 2006
ATTEST:
CITY CLERK
MAYOR
ORDINANCE NO. 2006-
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH GRANTING A NON - EXCLUSIVE SOLID
WASTE FRANCHISE TO INTERIOR REMOVAL SPECIALIST
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 July 25, 2006, to consider the granting of a franchise to Interior Removal Specialist, 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 12.63.020 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) Interior Removal Specialist, 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 Waste Collection Franchise
Agreement between the City ofNeuport Beach and Interior Removal Specialist, Inc. is hereby
adopted, approved and incorporated into this Ordinance by reference, shall commence at 12:01
a.m., on August 24, 2006 and expire on March 1, 2007. 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 the 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% of 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 filing 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 each 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 Section 15301 and 15308 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 Manger 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, clause or phrase of 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 phrase 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 27`" day of June 2006, and adopted on the 25`h day of July
2006 by the following vote to wit:
AYES, COUNCIL MEMBERS
NOES, COUNCIL MEMBERS
ABSTAINED, COUNCIL MEMBERS
ABSENT, COUNCIL MEMBERS
15 VNWGI IS
ATTEST:
CITY CLERK
RESOLUTION NO.' 2006-5 v
A RESOLUTION OF THE CITY COUNCIL OF THE CITY _ dL g b
OF NEWPORT BEACH DECLARING ITS INTENTION
TO CONDUCT A PUBLIC HEARING TO CONSIDER
THE GRANTING OF A NON - EXCLUSIVE SOLID
WASTE FRANCHISE TO INTERIOR REMOVAL
SPECIALIST 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 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; and,
WHEREAS, Interior Removal Specialist, Inc., a private firm 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
A public hearing shall be conducted on July 25, 2006, 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: August 24, 2006.
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: August 24, 2006 to March 1, 2007 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.
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.
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. The City proposes to offer a non - exclusive solid waste collection franchise to the
following applicant 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
franchise may appear before the City Council and be heard on the date and time listed
above.
a. Interior Removal Specialist, Inc.
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 July 25, 2006.
Adopted this 27h day June, 2006.
ATTEST:
MAYOR
party to or interested in the below entitled 2005Aatt 790 ., r as lSoon thereafter as practical
in the City Council Chambers, ,T300 Newport
matter. I am a principal clerk of the Boulevard. Newport Beach, California, to consider the
NEWPORT BEACH - COSTA MESA granting el a franchise pursuant to the applicants listed and
Rem 2 below a p,nstrant to the following terms and
DAILY PILOT, .a newspaper of general coa Fran
. c
a. Franchise effective doe: August monthly recce
b. A Franchise fee: 16`.b of gross monthly receipts.
C. portion the Franchise fee, 5.5°h, shall 69
circulation, printed and published in the earmarked for the purposes of
indemnifying and holding the City harmless from
City of Costa Mesa, County of Orange, environmental liability associated with the
Franchisees operations in the City. This portion of
State of California, and that attached the franchise fee shall be paid into the City's
Notice is a true and complete co as Env. Term oft Franchise: e: August p copy 1, �7 with renewal arghts uulxm mutuual �eewmem
was printed and published on the The City, shall not set the Franchisee's bin ratps
following dates: from`mppuzl esaand damag a or failure ely form e�
current and future state recycling requirementst wim
respect to the portion of the commercial solid wart'
stream collected by Franchisee.
JulyJul01 2006 g. Designated disposal faafty:..City'maintains th
, right to designate disposal facilities to be used by
Franchisee. '
h. Franchisee shall be responsible for all billinji
and collection fgr its accounts.
I. Franchise shall not be revoked unless Mere is
default under the agreement
I. Prior to obtaining a Solid Waste Franchise, the
applicants shall satisfy the City's minimum
qualifications regarding liability insurance, equipment
knowledge, of sold Waste regulations, load dorJ
programs, etc.
k. Fraroisee shall meet Citys' requirements to
saure reduction public
education activities.
the foregoing is true and correct. 1. City has authority to annually audit Franchisee's
financial records relating to the payment of fm
' I m. Franchisee shall comply with all State, Federa
laws and regulations, terms and condtions of the
Executed on July 06, 2006 at franchise agreement, City Charter and Municipal Code
2. The City proposes to offer a non - exclusive sole
Costa Mesa, California. listed below that are presently the
licensed and Wmlter
to conduct business in the City. Persons who haw
an interest in or objection to the proposed franchist
may appear before the City Council and be heart
doe
on the and time laced above.
a. Interior Removal Specialist, Inc.
3. This Resolution of Intention shall be published
Signature in the City's official newspaper within 15 days a
its adoption and at least 10 days pror to July, 25
2006.
Adopted this 27th day June, 2006.
Don Webb, MAVOF
ATTEST: ed New or backless, CRY CLERK
Published Newport BeaclJCOSta Mesa Daily Pild
.... A
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH DECLARING ITS INTENTION
TO CONDUCT A PUBLIC NEARING TO CONSIDER THE
Authorized to Publish Advertisements of all kinds including public notices by F
GRANTING OF A NON-EXCLUSIVE SOLID WASTE
Decree of the Superior Court of Orange County, California. Number A -6214, W
WHEREAS, the City Council finds and determines
September 29, 1961, and A -24831 June 11, 1963. t
that the collection of solid waste generated within
the City is a vital public service and that the
R E C E j V F
FD s
storage, accumulation, collection and disposal of
public concern because impropef control of such
matters Would subject the City to potential liability,
PROOF OF PUBLICATION d
damages and penalties and may create a public
'06., �O .
.�� o
nuisance, air pollution, f
WHEREAS, non-exclusive franchises for -the use
of public sheets to provide commercial solid waste
hauling services will promote the public- health.
STATE OF CALIFORNIA) OFFICE OF THE CI Y
Y CLERK s
safety and o a promoting permanence and
stability among g those businesses wishing to provide
CITY OF HEWPOR R
REACH
Such service and accountability to the n for
COUNTY OF ORANGE ) W
and,
e, the t
authorized a
for commercial w
I am a Citizen of the United States and a �
Services f
resident of the County aforesaid; I am
private firm has submitted an application ist requesting
a Nonexclusive Solid Waste Franchise that satisfies
over the age of eighteen years, and not a t
the City's THEREFORE, requirements. bit
NOW, The C
City f b
' I m. Franchisee shall comply with all State, Federa
laws and regulations, terms and condtions of the
Executed on July 06, 2006 at franchise agreement, City Charter and Municipal Code
2. The City proposes to offer a non - exclusive sole
Costa Mesa, California. listed below that are presently the
licensed and Wmlter
to conduct business in the City. Persons who haw
an interest in or objection to the proposed franchist
may appear before the City Council and be heart
doe
on the and time laced above.
a. Interior Removal Specialist, Inc.
3. This Resolution of Intention shall be published
Signature in the City's official newspaper within 15 days a
its adoption and at least 10 days pror to July, 25
2006.
Adopted this 27th day June, 2006.
Don Webb, MAVOF
ATTEST: ed New or backless, CRY CLERK
Published Newport BeaclJCOSta Mesa Daily Pild