HomeMy WebLinkAbout23 - Non-Exclusive Solid Waste FranchiseIr r ': yyi tis:.i.silH
CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. . 4
September 9, 2008
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: General Services Department
Mark Harmon, Director, 949 - 644 -3055
mharmonOcitv.newoort- beach.ca.us
SUBJECT: Award of Non - Exclusive Solid Waste Collection Franchise to
GB Services, Inc.
ISSUE:
Should the City Council consider the award of a Non - exclusive Solid Waste
Franchise to GB Services, Inc.?
RECOMMENDATION:
Adopt the attached Resolution of Intention (Resolution No. 2008---) to conduct
a public hearing on October 14, 2008 to consider the award of a Non - exclusive
Solid Waste Franchise to GB Services, Inc.
Introduce the attached Ordinance No. 2008 -_ granting a Non - exclusive Solid
Waste Franchise to GB Services, Inc. for a first reading. It is recommended that
Council adopt the Ordinance granting the franchise at the conclusion of the
October 14, 2008 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 GB Services, Inc.
September 9, 2008
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 divert 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 2004, and 2005. 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 -six 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. This policy permits competitive, service - oriented refuse operations.
Staff recently received a franchise application from the following solid waste
hauling firm: GB Services, Inc. The application submitted by GB Services, Inc.
meets the minimum City qualifications per Section 12.63.050 (Application for a
Franchise) of the Municipal Code.
GB Services, Inc. was originally founded in 1956 and incorporated in 2007. It is
located in Montebello, CA and they currently operate nine vehicles. All vehicles
and employees are fully enrolled in the Department of Motor Vehicles' Employer
Pull Notice Program. They are currently do business in the cities of Commerce,
Vernon, Los Angeles, Montebello, as well as in Orange and Riverside Counties.
GB Services, Inc. has submitted all necessary documents and insurance
requirements to meet the City's qualifications.
Pending completion of the public hearing and Council approval on October 14,
2008, the franchise with GB Services, Inc. will take effect November 13, 2008
and will expire on March 1, 2017, at the end of the City's ten -year franchise term
that began in 2007.
Award of Non - Exclusive Solid Waste Collection Franchise to GB Services, Inc.
September 9, 2008
Page 3
Environmental Review
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 Manager is authorized to execute and the City Clerk to file a Notice of
Exemption with the Orange County Clerk.
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.
Prepared by: Submitted by:
Andrea M. Riles Mark Harmon
Management Assistant Director
Attachments:
(1) Resolution No. 2008 - Resolution of Intent to Conduct a
Public Hearing to Consider the Granting of a Non - Exclusive
Solid Waste Franchise to GB Services, LLC
(2) Ordinance No. 2008 - _Ordinance Granting a Non - Exclusive
Solid Waste Franchise to GB Services, LLC
RESOLUTION NO. 2008-
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 GB SERVICES, INC
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, GB Services, Inc., 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 October 14, 2008, 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 applicant listed under
Item 2 below pursuant to the following terms and conditions:
a. Franchise effective date: November 13, 2008.
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: October 14, 2008 to March 1, 2017 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, ordinance or applicable law.
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.
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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. GB Services, Inc.
3. This Resolution of Intention shall be published in the City's official
ATTEST:
CITY CLERK
newspaper within 15 days of its adoption and at least 10 days prior to
October 14, 2008
ADOPTED this 9"' day of September 2008
M
MAYOR
ORDINANCE NO. 2008-
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH GRANTING A NON - EXCLUSIVE SOLID
WASTE FRANCHISE TO GB SERVICES, INC.
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 October 14, 2008, to consider the granting of a franchise to GB Services,
Inc.
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 enterprise listed below (hereinafter,
"Franchisee ") a non - exclusive franchise to operate, maintain, and provide solid waste
1
handling services along, across and over the public streets, alleys, public ways and
public places dedicated for public use in the City:
(a) GB Services, Inc.
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 GB Services, Inc. is
hereby adopted, approved and incorporated into this Ordinance by reference, shall
commence at 12:01 a.m., on November 13, 2008 and expire on March 1, 2017. 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 of the 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 to 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
(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 X1 I 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
9
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 Manager 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
The Mayor shall sign and the City Clerk shall attest to the passage of this
Ordinance. The City Clerk shall cause the same to be published once in the official
newspaper within fifteen (15) days after its adoption. This Ordinance was introduced at
a regular meeting of the City Council of the City of Newport Beach, held on the 9thth day
of September 2008, and adopted on the 14th day of October 2008 by the following vote
to wit:
AYES, COUNCIL MEMBERS
NOES, COUNCIL MEMBERS
ABSTAINED, COUNCIL MEMBERS
ABSENT, COUNCIL MEMBERS
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1 Mal
ATTEST:
CITY CLERK
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Authorized to Publish Advertisements of all kinds including public notices by
Decree of the Superior Court of Orange County, California. Number A -6214,
September 29, 1961, and A -24831 June 11, 1963.
PROOF OF PUBLICATION
STATE OF CALIFORNIA)
) SS.
COUNTY OF ORANGE )
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:
September 13, 2008
I declare, under penalty of perjury, that
the foregoing is true and correct.
Executed on September 15, 2008 at
Costa Mesa, California.
MEMO 11 ;;ii 1111111111111111111111 1111111111
i
RECEIVED
70 SEP 17 PM 1
RESOLUTION NO. 2008-77
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DE[IARRIG
ITS INTENTION TO CONDUCT A PUBLIC HEAIBNG TO CONSIDER THE GRANTING OF A
NON - EXCLUSIVE SOLID WASTE FRAKNISE TO GB SERVICES, BIC
HERPAS, the City Council finds and determines that the collection
lid waste generated within the City is a vital public service and If
storage, accumulation, collection and disposal of sof d waste a
:yclables is a matter of great public concern because improper cont
such matters would subject the City to potential liability, damages a
rallies and may create a public nuisance, air pollution, fire ham
estation and other problems affecting the public health. safety a
.lfare; and,
HEREAS, non - exclusive franchises for the use of public streets to provi
mmercial solid waste. hauling services will promote the public heat
lety and welfare by promoting permanence and stability among the
sinesses wishing to provide such service and accountability to the C
compliance with current and future state mandates: and,
HEREAS, pursuant to Article XIII of the City Charter and pursuant
ctions 49500 through 49523 of the Public Resources Code, the City
thorized to enter into non - exclusive franchise agreements for commerc
lid waste collection services with private solid waste haulers: and,
HEREAS, GB Services, Inc.. a private firm has submitted an applicati
westing a Non - exclusive Solid Waste Franchise that satisfies the Cit
�W, THEREFORE, be it resolved by the City Council of the City
wport Beach that:
A pubRe bast" shit be earducaad on October 14, 1008, r 7M P.
as soon thereafter as practical in the City Council Chambers, 3
wport Boulevard, Newport Beach, California, to consider the granting
franchise to the applicant listed under Item 2 below pursuant to
owing terms and conditions:
ranchise effective date: November 13, 2008.
aanchise fee: 16% of gross monthly receipts.
A portion of the Franchise fee, 5.5 %, shall be earmarked for the purpo
indemnifying and holding the City harmless from environmental kabi
mciated with the Franchisee's operations in the City. This portion of
inchise fee shall be paid into the City's Environmental Liability Fund.
Term of Franchise: October 14, 2008 to Mach 1, 2017 with rate
his upon mutual agreement of the franchisee and City.
the City shall not set the Franchisee's bin rates.
Franchisee shall indemnify and hold City harmless from penalties
pages for failure to meet current and future state recycling requireme
h respect to the portion of the commercial solid waste stream collet
Franchisee.
Designated tlisposal facility: City maintains the right to designate dispc
.ifibes to be used by Franchisee.
Franchisee shall be responsible for all billing and collection for
:cants.
4anchise shall not be revoked unless there is default under the agreemi
linance or applicable law.
Prior to obtaining a Solid Waste Franchise, the applicants shall sat
City's minimum qualifications regarding liability insurance. equipmr
owledge of solid waste regulations, load check programs, etc.
Franchisee shall meet City's requirements to implement recycling
area reduction public education activities.
,ity has authority to annually audit Franchisee's financial records relal
the payment of fees required under the franchise.
Franchisee shall comply with all State. Federal laws and regulatic
ms and conditions of the franchise agreement, City Charter and Munic
de.
The City proposes to offer a non - exclusive solid waste collection franc)
the following applicant listed below that are presently licensed
rmrtted to conduct business in the City. Persons who have an inter
or objection to the proposed franchise may appear before the City Cou
d be heard on the date and time listed above.
GB Services. Inc.
This Resolution of Intention shall be published in the City's offi
wspaper within 15 days of its adoption and at least 10 days prior
tuber 14.2008
iOPTED this Bin day of September 2008
Edward D. Se
CLERK
shed Newport Beach /Costa Mesa Daily Pilot September 13, 2008