HomeMy WebLinkAbout04 - Solid Waste Franchise FeesCouncil Agenda
Item No. 4
January 22, 2002
TO: Mayor and City Council
FROM: General Services Director
SUBJECT: Amendment to the Newport Beach Municipal Code allowing the City Council to
waive the collection of certain Solid Waste franchise fees
Recommendation
That the attached Ordinance No. 2002 - amending Section 12.63.140 of Title 12 of the
Newport Beach Municipal Code be introduced for a First Reading. It is recommended that
Council adopts the Ordinance amending the Section at the conclusion of the February 12, 2002
public hearing.
Background
One of the ways that staff has developed to manage solid waste operations and ensure meeting
the State recycling mandate is through the issuance of non - exclusive solid waste franchises to
solid waste haulers and demolition contractors who apply to operate within the City. In addition
to mandating the recycling requirements for private haulers, the franchise stipulates a franchise
fee to be paid to the City which funds environmental insurance premiums, administrative work,
and road and alley repairs associated with the franchise operation.
Waste Management of Orange County (WMOC), a current franchised hauler, will be entering
into an agreement with the City to provide residential refuse and recycling services to the
recently annexed Newport Coast area.
Discussion
In its agreement with WMOC, the City of Newport Beach will pay for residential refuse
collection for the residents of Newport Coast. As a franchised hauler, WMOC is required to pay
a franchise fee to the City. The current fee is 16% of the haulers gross paid receipts.
Most franchised haulers, including WMOC, add this fee to their customer invoices. Given that
the City will be the customer in this case, staff is recommending that WMOC and other
franchised haulers contracted with the City to provide solid waste collection services, be
exempted from the payment of franchise fees on receipts associated with a City contract.
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Section 12.63.140 of the Newport Beach Municipal Code lists various exclusions to the Solid
Waste Management Ordinance. The attached proposed amendment to Section 12.63.140 of Title
12 will waive the payment of franchise fees under contracts approved by the City Council to
provide solid waste services for the City.
Very respectfully,
David E. Niederhaus
Attachment: (1) Ordinance No. 2002 -_ amending Section 12.63.140 of Title 12 of the
Newport Beach Municipal Code Pertaining to Exclusions of the Solid
Waste Management Ordinance
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ORDINANCE NO. 2002-
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH AMENDING SECTION 12.63.140 OF
TITLE 12 OF THE NEWPORT BEACH MUNICIPAL CODE
PERTAINING TO EXCLUSIONS OF THE SOLID WASTE
MANAGEMENT ORDINANCE
WHEREAS, the City of Newport Beach adopted Municipal Code Chapter 12.63
requiring solid waste haulers to be franchised by the City of Newport Beach.
WHEREAS, Chapter 12.63.070 of the Newport Beach Municipal Code provides for the
imposition and collection of franchise fees.
WHEREAS, staff has determined that the imposition of a franchise fee on a hauler
working under a City contract providing solid waste handling services is not necessary
since this cost would be passed on to the City.
THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DOES ORDAIN AS
FOLLOWS:
SECTION 1.
Subsection C is hereby added to Section 12.63.140 of Title 12 of the Newport Beach
Municipal Code as follows:
12.63.140 Exclusions.
C. Franchise Fee Exclusion. Payment of franchise fees pursuant to Section 12.63.070
are waived under any contract approved by the City Council to provide commercial solid
waste handling services for the City.
SECTION 2.
That 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 hereof, irrespective of the fact that any one or more sections, subsections,
sentences, clauses and phrases be declared unconstitutional.
SECTION 3.
This Ordinance shall be published once in the official newspaper of the City, and the
same shall be effective thirty (30) days after the date of its adoption.
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This Ordinance was introduced at a regular meeting of the City Council of the City of
Newport Beach held on the day of , 2002, and was adopted
on the day of , 2002, by the following vote to wit:
AYES, COUNCIL MEMBERS
NOES, COUNCIL MEMBERS
ABSTAINED, COUNCIL MEMBERS
ABSENT, COUNCIL MEMBERS
ATTEST:
CITY CLERK
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