HomeMy WebLinkAbout03 - Termination of Non-Exclusive Commercial Solid Waste Franchise AgreementCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 3
June 24, 2003
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: General Services Department
David E. Niederhaus, Director, 949- 644 -3055
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 Browning Ferris Industries?
RECOMMENDATION:
Adopt attached Resolution No. 2003 -_ terminating the solid waste franchise
agreement between the City of Newport Beach and Browning Ferris Industries.
DISCUSSION:
Background:
Per Chapter 12.60.030 of the Newport Beach Municipal Code, the City currently has
solid waste non - exclusive franchise agreements with twenty -two solid waste hauling
firms. One of the twenty -two firms has requested that the City terminate their solid
waste franchise. The firm desiring to terminate their franchise agreement is Browning
Ferris Industries
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 Browning Ferris Industries of current nor previous franchise fee obligations.
Environmental Review: N/A
Prepared by:
Submitted by:
Termination of Franchise
June 24, 2003
Page 2
Jerem F,jammond, David E. Niederhaus,
Mana ement Assistant Director
Attachments: (1) Proposed Resolution No. 03- _ terminating the Franchise
Agreement with Browning Ferris Industries
(2) Agreement to Surrender Commercial Solid Waste Collection
Franchise Agreement between the City of Newport Beach and
Browning Ferris Industries
RESOLUTION NO. 2003-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH TERMINATING THE
COMMERCIAL SOLI) WASTE COLLECTION
FRANCHISE AGREEMENT BETWEEN THE CITY OF
NEWPORT BEACH AND BROWNING FERRIS
INDUSTRIES
WHEREAS, on October 19, 1995, the City of Newport Beach granted a Non - exclusive
Franchise to Browning Ferris Industries for commercial solid waste collection services
( "Franchise Agreement'); and,
WHEREAS, on May 28, 2003, the City was notified that Browning Ferris Industries is
no longer operating within the City of Newport Beach; and,
WHEREAS, Browning Ferris Industries 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
NOW, THEREFORE, be it resolved by the City Council of the City of Newport Beach
that:
1. The City Council hereby approves the termination of the Franchise Agreement with
Browning Ferris Industries. The Agreement to Surrender the Commercial Solid Waste
Collection Franchise Agreement between the City of Newport Beach and Browning Ferris
Industries attached hereto as Exhibit "A ", is hereby approved and the City Manager is
authorized to execute the Agreement as written.
Adopted this _ day of 2003
"CITY"
CITY OF NEWPORT BEACH,
A Municipal Corporation
EXHIBIT "A"
AGREEMENT TO SURRENDER
COMMERCIAL WASTE COLLECTION FRANCHISE AGREEMENT
BETWEEN THE CITY OF NEWPORT BEACH AND BROWNING FERRIS
INDUSTRIES
This Agreement is entered into on this day, the , day of
2003 and executed by and between the CITY OF NEWPORT BEACH, a municipal
corporation ( "CITY ") and BROWNING FERRIS INDUSTRIES ( "FRANCHISEE ").
RECITALS
Pursuant to City Ordinance No. 95 -118, CITY and FRANCHISEE entered into a
Commercial Solid Waste Collection Franchise Agreement dated October 19, 1995
( "AGREEMENT ").
On May 28, 2003, CITY was notified that FRANCHISEE is no longer operating
within the CITY.
NOW THEREFORE, CITY and FRANCHISEE agree as follows:
1. The AGREEMENT is hereby terminated effective June 24, 2003 and shall
be of no further force and effect.
2. By signing this agreement, FRANCHISEE agrees to surrender all rights to
do business as Browning Ferris Industries 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 June 24, 2003 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 June 24, 2003.
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:
Homer Bludau
City Manager
ATTEST
LaVonne Harkless
City Clerk
"FRANCHISEE"
Browning Ferris Industries
By: _
Name:
Title:
Date:
APPROVED AS TO FORM:
Robin L. Clauson
Assistant City Attorney
1
1
May 28, 2003
Mr. Jeremy Hammond
Management Assistant
General Services Division
CITY OF NEWPORT BEACH
P.O. Box 1768, 3300 Newport Blvd.
Newport Beach, CA 92659
Dear Mr. Hammond:
This letter is to notify you that we no longer are servicing the City of Newport Beach
with refuse collection. We request that you terminate our franchise agreement with your
City effective immediately.
Thank you for your immediate attention to this matter.
Cordially,
Gerald Perissi
General Manager
Waste Systems of North America, Inc. • 14905 S. San Pedro Street • Gardena, California 90248
Phone 310- 323 -0763 Ext. 220 • Fax 310 -323 -6063