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Home My WebLink About06 - Termination of Solid Waste Franchise AgreementCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 6 January 26, 2010 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: General Services Department Mark Harmon, Director, 949 - 644 -3055, mharmon @newportbeachca.gov 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 Greenleaf Grading Company? RECOMMENDATION: Adopt attached Resolution No. 2010 - terminating the solid waste franchise agreement between the City of Newport Beach and Greenleaf Grading Company. DISCUSSION: Background: Per Chapter 12.60.030 of the Newport Beach Municipal Code, the City currently has solid waste non- exclusive franchise agreements with 29 solid waste hauling firms. One of the firms has requested that the City terminate their solid waste franchise. Greenleaf Grading Company has given City staff notice that the owner of the family run company has retired, and consequently, the business is no longer in operation. 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 Greenleaf Grading Company of current nor previous franchise fee obligations. According to the City's Revenue Division, Greenleaf Grading Company currently does not owe any franchise fees. Environmental Analysis: Not a project under CEQA. Prepared by: r Andrea Riles, Management Assistant Submitted by: Mark Harmon, Director Termination of Franchise January 26, 2010 Page 2 Attachments: (A) Proposed Resolution No. 2010- — terminating the Franchise Agreement with Greenleaf Grading Company (B) Agreement to Surrender Commercial Solid Waste Collection Franchise Agreement between the City of Newport Beach and Greenleaf Grading Company RESOLUTION NO. 2010- 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 GREENLEAF GRADING COMPANY WHEREAS, on March 1, 2007, the City of Newport Beach granted a Non - exclusive Franchise to Greenleaf Grading Services for commercial solid waste collection services ( "Franchise Agreement'); and, WHEREAS, on October 5, 2009 and November 17, 2009, the City was notified by telephone and letter that Greenleaf Grading Company is retiring and no longer operating within the City of Newport Beach; and, WHEREAS, Greenleaf Grading Company 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 Greenleaf Grading Company. The Agreement to Surrender the Commercial Solid Waste Collection Franchise Agreement between the City of Newport Beach and Greenleaf Grading Company attached hereto as Exhibit "A," is hereby approved and the City Manager is authorized to execute the Agreement as written. Adopted this _ day of 2010 I EXHIBIT "A" AGREEMENT TO SURRENDER CON11MERCIAL WASTE COLLECTION FRANCHISE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND GREENLEAF GRADING COMPANY This Agreement is entered into on this day, the _ day of 2010 and executed by and between the CITY OF NEWPORT BEACH, a municipal corporation ( "CITY ") and GREENLEAF GRADING COMPANY ( "FRANCHISEE "). RECITALS Pursuant to City Ordinance No. 01 -87, CITY and FRANCHISEE entered into a Commercial Solid Waste Collection Franchise Agreement dated March 1, 2007 ( "AGREEMENT "). On November 17, 2009 CITY was notified by letter that FRANCHISEE is retiring and no longer operating within the CITY. NOW THEREFORE, CITY and FRANCHISEE agree as follows: 1. The AGREEMENT is hereby terminated, retroactively effective on November 17, 2009 and shall be of no further force and effect. 2. By signing this agreement, FRANCHISEE agrees to surrender all rights to do business. as Greenleaf Grading Company 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 November 17, 2009 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 November 17, 2009. 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: City Manager ATTEST City Clerk "FRANCHISEE" Greenleaf Grading Company By: _ Name: Title: Date: APPROVED AS TO FORM: 1 � imam � '� 64 Attorney EXHIBIT "A" AGREEMENT TO SURRENDER COMMERCIAL WASTE COLLECTION FRANCHISE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND GREENLEAF GRADING COMPANY This Agreement is entered into on this day, the _ day of 2010 and executed by and between the CITY OF NEWPORT BEACH, a municipal corporation ( "CITY ") and GREENLEAF GRADING COMPANY ( "FRANCHISEE "). RECITALS Pursuant to City Ordinance No. 01 -87, CITY and FRANCHISEE entered into a Commercial Solid Waste Collection Franchise Agreement dated March 1, 2007 ( "AGREEMENT "). On November 17, 2009 CITY was notified by letter that FRANCHISEE is retiring and no longer operating within the CITY. NOW THEREFORE, CITY and FRANCHISEE agree as follows: 1. The AGREEMENT is hereby terminated, retroactively effective on November 17, 2009 and shall be of no further force and effect. 2. By signing this agreement, FRANCHISEE agrees to surrender all rights to do business as Greenleaf Grading Company 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 November 17, 2009 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 November 17, 2009. 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: in City Manager ATTEST City Clerk "FRANCHISEE" Greenleaf Grading Company By: _ Name: Title: Date: APPROVED AS TO FORM: A jjrj,, City Attorney EXHIBIT "A" AGREEMENT TO SURRENDER COMMERCIAL WASTE COLLECTION FRANCHISE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND GREENLEAF GRADING COMPANY This Agreement is entered into on this day, the day of 2010 and executed by and between the CITY OF NEWPORT BEACH, a municipal corporation ( "CITY ") and GREENLEAF GRADING COMPANY ( "FRANCHISEE "). RECITALS Pursuant to City Ordinance No. 01 -87, CITY and FRANCHISEE entered into a Commercial Solid Waste Collection Franchise Agreement dated March 1, 2007 ( "AGREEMENT "). On November 17, 2009 CITY was notified by letter that FRANCHISEE is retiring and no longer operating within the CITY. NOW THEREFORE, CITY and FRANCHISEE agree as follows: 1. The AGREEMENT is hereby terminated, retroactively effective on November 17, 2009 and shall be of no further force and effect. 2. By signing this agreement, FRANCHISEE agrees to surrender all rights to do business as Greenleaf Grading Company 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 November 17, 2009 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 November 17, 2009. 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: Dated: ATTEST City Clerk APPROVED AS TO FORM: City Attorney go "CITY" CITY OF NEWPORT BEACH, A Municipal Corporation City Manager "FRANCHISEE" Greenleaf Grading Company By: _ Name: Title: Date: (1) Company Name: City of Newport Beach General Services Department Non - Exclusive Solid Waste Collection Franchise Reporting Form G r&CZp IPaV G i� , I•ILI1 (!0, Report for Month[Year October 2009 Address; '77o2 ku 4mh Di. Yval. a" c vs n, ) W�, c&r< )Itm I0h9 e, i btl: hi�� Print NameMtle; LI A G , � Su T Signature: Date; //-1-7-09 By my signature, the information submitted below is, certifie to be correct and the proper back up information, per the franchise agreement, is included with this report. Diversion Rate (b +c) 1110g, . a Tonnage Landfilled During Reporting Month b) Tonnage Recycled During Reporting Month c Total Tonnage Hauled During Reporting Month Diversion Rate (b +c)