HomeMy WebLinkAbout14 - Newport Coast Demolition Non-Exclusive Solid Waste Collection FranchiseCOUNCIL AGENDA
CITY OF NEWPORT BEACH No. . 11
CITY COUNCIL STAFF REPORT 9 ,d S _0 0
Agenda Item No. e
June 27, 2006
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: General Services Department
Mark Harmon, Director, 949 - 644 -3055, mharmon(a) city. newport-
beach.ca.us
SUBJECT: Award of Non - Exclusive Solid Waste Collection Franchise to
Newport Coast Demolition
ISSUE:
s. Should the City Council adopt the attached Resolution of Intention (Resolution
No. 2006 -_) to award a Non - exclusive Solid Waste Franchise to Newport
Coast Demolition 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 Newport Coast Demolition and to
conduct a public hearing on July 25, 2006.
Introduce the attached Ordinance No. 2006 -_ granting a Non - exclusive Solid
Waste Franchise to Newport Coast Demolition 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.
Award of Non - Exclusive Solid Waste Collection Franchise to Newport Coast
Demolition
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 diVOrt 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: Newport Coast Demolition. The application submitted by Newport
Coast Demolition 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 Newport Coast Demolition will take effect August 24, 2006 and
will expire on March 1, 2007 at the end of the City's one -year extension of the
franchise program that initially began in 1996.
Environmental Review:
NIA
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.
Award of Non - Exclusive Solid Waste Collection Franchise to Newport Coast
Demolition
June 27, 2006
Page 3
Prepared by:
axo4�,
Andrea M. Riles
Management Assistant
Submitted by:
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 Newport Coast Demolition
(2) Ordinance No. 2006 - _Ordinance granting a Non - Exclusive
Solid Waste Franchise to Newport Coast Demolition
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 NEWPORT COAST DEMOLITION
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 tho.,;e 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, Newport Coast Demolition 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.
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.
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. Newport Coast Demolition
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
CI 1 1 _R/:tw`(*AZ11 I 1
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH GRANTING A NON - EXCLUSIVE SOLID
WASTE FRANCHISE TO NEWPORT COAST DEMOLITION
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 Newport Coast Demolition.
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) Newport Coast Demolition
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 of Newport Beach and Newport Coast Demolition 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 ofthe 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 0 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 27th day of June 2006, and adopted on the 25th day of July
2006 by the following vote to wit:
AYES, COUNCIL MEMBERS
NOES, COUNCIL MEMBERS
ABSTAINED, COUNCIL MEMBERS
ABSENT, COUNCIL MEMBERS
MAYOR
ATTEST:
CITY CLERK
m
A,.a,Xt,.,a
RESOLUTION NO. 2006- 51 v l
C', vo) �P-A
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH DECLARING ITS INTENTION
TO CONDUCT A PUBLIC HEARING TO CONSIDER
A-_3 D. P.
I?- ( •LC4'•a. -)
THE GRANTING OF A NON - EXCLUSIVE SOLID
WASTE FRANCHISE TO NEWPORT COAST DEMOLITION
�,,a-8. J(--
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, Newport Coast Demolition 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.
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. 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. Newport Coast Demolition
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 27th day June, 2006..
ATTEST:
EZ D il, � WWII
• I'
Authorized to Publish Advertisements of all kinds including public notices try
Decree of the Superior Court of Orange County, California. Number A -6214,
September 29, 1961, and A -24831 June 11, 1963.
RECEIVED
PROOF OF PUBLICATION
'06 JUL 10 A9:47
STATE OF CALIFORNIA)®FFICE of THE CITY
YgY OF NEWPORT E
COUNTY OF ORANGE )
I 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:
July 01, 2006
I declare, under penalty of perjury, that
the foregoing is true and correct.
Executed on July 06, 2006 at
Costa Mesa, California.
Signature
ESOIUTION NO. 2006 -51
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF NEWPORT BEACH DECLARING ITS INTEN-
TION TO CONDUCT A PUBLIC HEARING TO
CONSIDER THE GRANTING OF A NON -EXCI ISWE
SOLID WASTE FRANCIRSE TO NEWPORT COAST
` DEMOLITION
p WHEREAS, the City Council finds and determine;
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 ?.
pubhe 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,
safely 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 %III of the City
Charter and pursuant to Sections 49500 through
49523 of the Public Resources Code. the CRy is
authorized to enter into non-exclusive franchise .
agreements for commercial solid .waste collection
services with private solid waste haulers; and,
WHEREAS„ Newport Coast Demolition a private
firm has submitted an application requesting a r.
Non - exclusive Solid Waste Franchise that satisfie
the City's application requirements.
NOW, THEREFORE, be it resolved ivy 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., a as soon thereafter as practical
in the CRy Council Chambers, 33DD Newport
Boulevard, Newport Beach, California, to consider the p
granting of a franchise to the applicants listed under
Rem 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 '71
earmarked for the purposes of indemnifying and
holding the Qty harmless from environmental liability
associated with the franchisees operations in the
City. This portion of the Franchise fee shall he paid
into the CRYs Environmental Liability Fund.
d. Term of Franchise: August 24, 2006 to March
1, 2007 with renewal rights upon mutual agreement
of the franchaee.and City.
e. The City shall not set the Franchisee's bin rates.
I. Franchisee shalt indemnify and hold City hannfess 'C
from penalties and damages for failure t� 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 s.
Frahchisee,
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 CtFKR
programs, etc. r
k. Franchisee shall meet City's requirements to ii
implement recycling and source reduction public `1
education activities.
I. City has authority to annually audit Franchisee's
financial records relating to the payment of feesG
required under the franchise.
m. Franchisee shall comply with all State. Federal v.
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 franGUse to the following applicant ';]
listed below that are presently licensed and Minified '..i
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 dale and time Paled above.
a. Newport Coast Demolition
3. This Resolution of Intention shall be published
in the Citys official newspaper within 15 days of
Rs adoption and at least 10 days prior to July 25; -
2006.
Adopted this 27th day June, 2006. }
Don Webb, MAYOR
ATTEST: LaVonne M. RarMess. CITY CLERK
Published Newport Beach /Costa Mesa Daily Pilo
July 1, 2006 Sa527