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HomeMy WebLinkAbout03 - Temporary Extension of Nonexclusive Solid Waste FranchisesJanuary 10, 2017 Agenda Item No. 3 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Mike Pisani, Municipal Operations Director - 949-644-3055, mpisani@newportbeachca.gov TITLE: Temporary Extension of Nonexclusive Solid Waste Franchises ABSTRACT: The proposed action would extend the 37 nonexclusive solid waste franchises scheduled to expire on March 1, 2017 to November 8, 2017, in order to allow staff to continue to evaluate franchise revisions in light of new State regulations. RECOMMENDATION: a) Find that the adoption of the temporary extension is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Introduce Ordinance No. 2017-1, An Ordinance of the City Council of the City of Newport Beach, California, Temporarily Extending Nonexclusive Solid Waste Franchises from March 1, 2017 to November 8, 2017 to Ensure Adequate Provision of Solid Waste Collection Services within the City of Newport Beach, and pass to second reading on January 24, 2017. FUNDING REQUIREMENTS: There is no fiscal impact related to this item. If approved, haulers would continue to pay franchise fees at the rates delineated in their current agreements. DISCUSSION: The City utilizes a nonexclusive solid waste franchise system for the collection of commercial solid waste in the city. Under the franchise system, 37 haulers are authorized to collect waste and in return, they abide by certain conditions of their franchises and pay a franchise fee based upon a percentage of revenues. Franchises for 23 haulers were granted by the City Council in 2007 for a 10 year term and are set to expire on March 1, 2017. Additional haulers have been added since that time, for shorter periods with the same expiration date. 3-1 Temporary Extension of Nonexclusive Solid Waste Franchises January 10, 2017 Page 2 CalRecycle, the state agency regulating solid waste handling and disposal, has added significant new regulations over the past few years, primarily having to do with mandatory commercial recycling and organics recycling from businesses generating large amounts of this waste stream. The Municipal Code and franchise agreements currently do not adequately address penalties for non-compliance, nor do they reflect the level of reporting CalRecycle requires City staff to compile from its haulers. Staff is working on revisions to the Municipal Code sections regarding solid waste handling and the solid waste franchises to rectify these issues, but will not have the requisite outreach to the haulers completed prior to the March 1, 2017 expiration of the franchises. Consequently, staff is proposing to extend the current franchises to November 8, 2017, in order to develop franchise and Municipal Code language that will best serve the needs of the city's residents, businesses, and visitors, while complying with newly adopted state regulations. A draft ordinance is attached to the extension the current solid waste franchises. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A - Draft Ordinance 3-2 ATTACHMENT A C RDINA N CE NO. 2(117• AN O RDINA N CE C19 THE CITY COUNCIL CFI THE CITY OF NBWRORT BEACH, CALIRORNIA, TBMRORARILJY EXTENDING NCNEXCLUSIVE SOLJID WASITE FRANCHISES FROM MARCH 1, 20'7 to NOVEMBER 8, 20171 TO ENSURE ADEQUATE PROVISION CFI SOLJID WASTE CCL IJECTION SERVICES WITHIN THE CITY OR NEWRORT BEACH WHEREAS, ArticlE XIII cf tr E Ciiy C1artEr erid SEctions 4950CI 11- rough 49524 of the Publics REsounces CodE a0l-orizE the City of Newport Beacir Q"City"; tc enter inlc ricnexclusive frarichise agreements fcr ccmmercial sclid waste handling servicEs with private sclid wasle enterprises; WHEREAS, the City Charleii and Newport Beacl• Municipal CodE ("NEMC") Chapler '12.63 establish rEquiiiements and piiocedLres tc giiant a franchise tc provide sclid v%aste handling sErviices within the City; WHEREAS, the City CcLncil ccmplied with slate law, the City Cf arter and the N BIV C in granting ric nexclL sive francr ise agreE m ents fcr ccmmercial solid wastE handling servicies is the privatE sclid waste entE rprisE s listed cin Exhibit A, w r ich is atilached hereto anc inccrperatec f erein by referErice; WHEREAS, the currerill nc nexclL sive solid waste franchise agreements are set tc expire cri March 1, 20'17; and WHEREAS, the City desires to iemperarily extenc the term cf solid wastE frarichise agreemEriis tc November 8, 2017, tc allow City staff time is evalLate the existing haulers and agreements to erasure they are best sENiirig the neEc s of ll -e City's residents, bL sinesses, and visitors. NOW THERERORE, tr e Ciiy COL ncil of the City cf Newport Beach ordains as fc Ilcw s: Section 1: The Ciiy Council authorizes the City NanagEr or his or hen designee, to E)ecute ari amendmerii, in a form substarilially similar to tr a eltached Bxhibil E, which is incc rporaled herein by referEnce, extenc ing ll a term cf Exislling nonexclusive franalr isE agreem eriis for commercial sclid waste handling services tc November 8, 20'17. All other provisions of the nonexclusive colic wasle franchise agreements shall remain unalr anged. Section 2: In ire event of any conflict bEtween any ncnexclusivE sclid waste francf• ise agrEem ent expiratic ri iermi provided in this ordinance and any cthE r previously adcpled ordinance, the expiration term in this cndinancE shall prevail. 3-3 Section 3: The recitals prcvic ed in this c rdiriancie area true and cierrect and are inccnrlerated into tl'ei subslantivei perlion of this ordirianciei. Section 4: If any se cation, subse cation, sente rice, clay se c n pr rase of this c rdiriancie is fc r any reason he Id to be invalic or uncc nstitutic nal, such decision shall not affect the validity cr ccrislitLtienalily of the remaining perlions of this crdinancei. Thea City Ceuricil hereby declares That ii we uld have passed this c rc inance and each sectic n, sLbsecticn, senlence, clause or phrases herecf, innespective of tree fact that any crie (11) c r more sectic ris, subsections, sentences, clauses c r pr rases be c e clare d invalid c r unccrisliftlicnal. Sectie n 5: The City Cc L ncil firic s the introducilion and adeplion of this orc iriancei is not sub'ect to the California E nvinonmerile I Quality Act ("CEC X" PL rsuaril to Section 15060i1c;i12) (the activity will nct result in a direct er neascriably fereseeatle indirect pr ysical change in tl• a einvinonme ri1; and 1506011c)113) (the acfti%ily is riot a projecl as defiried in Section 15378) of tre CECA Guicelines, California Ccde cf Regi lations, -nille 14, Charller 3, becac sea it has ne potential to have a signiiiciant effecl cn 1he envirenmeint. Section 6: The Maycn shall sign and the City Clerk shall atlesl tc the passage cf this c nc inancei. The City Clle 0 shall cac se 11' a erdinaricei, ora sc rr rr aryi 1 a reef, to be rlublished purse ant to Clity Clharlem Se cation 414. This ordirianae was intrcc LIM at a regular rreeting of the Clity Cleuricil of thea City cf Ne"port Beacir held cri Ire day of , 20'17, anc adopted en the day of , 2017, by the following vete, to -wit: AYES, CCUNCILMBMMRS N C ES, CC UNCIIL MEMBERS ABSEIN-n CCUNCILMEMBERS lu1_WOU ATTEST: KEVIN MULDCCN L BILAN 1 1. BRCWN, CMY CL BRK K 3-4 APPROVED AS TO FORM: CITY AT 'S OFFICE AAROPM HARP, CITY ATTORNEY Exhibits: (A) List of Current Solid Waste Franchise Haulers; and (B) Draft Amendment Extending Commercial Solid Waste Collection Nonexclusive Franchise Agreements until November 8, 2017, 3-5 No. Name 1 A2Z Recycling Services, Inc. 2 American Wrecking, Inc. 3 Athens Services 4 California Waste Services, LLC. 5 CR&R 6 Cousyn Grading and Demolition 7 Direct Disposal 8 'Ecology Auto Parts, Inc. 9 GB Services, Inc. 10 Genesis Dispatch, Inc. 11 Goodwin Enterprises 12 Hartfield Construction Corp. 13 Haul Away Rubbish Service Co_, Inc. 14 IRS Demolition 15 James Blomberg 16 JB Services 17 JD Demolition and Grading, Inc. 18 Kevin Ray Demolition 19 Key Disposal, Inc. 20 The Lane Company 21 Newport Coast Demolition 22 Praisler Hauling & Demolition, Inc. 23 Progressive Land Clearing, dba Thomas Demolition 24 Rainbow Disposal 25 RB Holt (Pacific Earthworks) 26 Robert's Waste Recycling, Inc. 27 Roche Excavating 28 Skyline Construction Services, Inc. dba Scor Industries 29 Southern California Environmental 30 Tierra Verde Industries 31 Tight Quarters, Inc. 32 Tim Greenlead Engineering 33 United Pacific Waste 34 Universal Bobcat & Hauling 35 Universal Waste Systems Inc. 36 Ware Disposal 37 Waste Management of DC 3-6 AMEN DMENT NO. CN E IC CIC MM13RCIIAU SIC UID WA SIVE CIC UUEC111C N NCN13XCUUSIV13 FRANCHISIE AGREEMENT BETWEEN IIHE CITY C F N EWPC RT BEACH All THIN AMENDMENT INC. ONB -nO CCMMBRCIAL 8CLIEI WA�EMB COLLECTION NONEXCLUSIVE FRPhCFISEI AGRBBMBNT ("Amendment No. Cne"; is miade and eriiered inter as of this day of , 2017 ("Effective Elate"), by and ketwee n the CI -1Y OF NBWPC RT BEACH, a Califcuinia mL niciipal cupciralioin and charier city ("Cily'", and , a ij"Franchisee";, wl-cse address is , and is made with refererice to the fcillciwing: RECITA USI A. C n , 20_, Clity and Fuarichisee entered intci a h cinexcic sive Franchise Agreerrieni for ccimimercial sclid waste ccdlecticin services in the Ciiy ("Ag re eme rill"). B. The Agreemerii is set to expire on March 'I, 2017. C. The parlies desire IC enler inlci this Amendmient No. Cne 10 extend the term cf the Agueemerill to Nc%err ber El, 2017. NOW, TH EREFC RE, it is muk ally agueed by and between the undersigned parties as follows: 1. 11ERM Section _ cd the Agreement is amendec in its entirely and replaced with the following: "The term of this Agreement shall ccim m ence on 1e Bffecilive Dale, and shall terminate on NoVemker 81, 2017 Q"Teumiinatiori [late"), unless lerminaled earlier as sell forth he nein ("Term"). 2. IN11EG RAVED CC N TRACH EXCe pil as expressly micidified he nein, all other previsions, to um s, and clove riants set forth in lllla Agreemienl shall remain unchanged and shall be in full force and effecil. [SIGNAIIURES CN NEXII PAGE] Page 1 3-7 IN WITNESS WHBRECF, the partieis have cased ll -is Amendmient No. Cnei to be executed cin the dates written beilciw. APPROVED ASI TC FC RM: CITM ATTCRNEY'SI OFFICE Date: 0 Aaron C. Harp City Altonney A'flTSST: Date: Leilani L Brown City CIE 6 C ITYI C F NBWPC RT BEACH, a California miunic ipal c orporation Date: By: Dai e K ifIl City M anagE r FRANCHISEE: , a [late: M ❑ate: M [END CF SIGNATURBSI] 11 Flage 2 3-8