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Home My WebLink About22 - Terminating Non -Exclusive Commercial Solid Waste Franchises - Amended PagesMay 12, 2020 Item No. 22 ORDINANCE NO. 2020-14 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, TERMINATING THOSE CERTAIN 2017 NON-EXCLUSIVE FRANCHISE AGREEMENTS FOR COMMERCIAL SOLID WASTE AND DIVERTIBLE MATERIALS HANDLING SERVICES WITHIN THE CITY OF NEWPORT BEACH WHEREAS, pursuant to Article XIII (Franchises) of the Charter of the City of Newport Beach ("City Charter"), Chapter 12.63 (Solid Waste Management) of the Newport Beach Municipal Code ("NBMC"), and California Public Resources Code Sections 40059, 49300, and 49500 through 49523, the City authorized to enter into non-exclusive franchise agreements for Commercial Fra nch isle rvices with private solid waste haulers; WHEREAS, in 2017, the City Council adoptod a mo?tefranchise -exclusive commercial solid waste franchise agreement for private solid waste had, thereafter, entered into franchise agreements with several commercial solid w haulers ("2017 Franchise"), effective through November 8, +ab WHEREAS, Section 18.C.4 of the 2chise requires a collision avoidance system that can detect adjacent pedestriansyclists be installed on the vehicles by January 1, 2019; WHEREAS, Section 9 of thebol7 Franchise requires each franchisee to obtain and maintain policies of insurance o the types and amounts determined by the City and allows for the City to modify the types and amounts of insurance by providing the franchisee with ninety (90) days advance written notice of the change; WHEREAS, on or about September 20, 2019, the City provided ninety (90) days advance written notice to all franchisees regarding a change to the insurance requirements set forth in the 2017 Franchise, along with a notification that the franchisees had not adhered to Section 18.C.4 of the 2017 Franchise by providing proof of compliance with the auto collision avoidance system installation requirement; WHEREAS, on or about January 30, 2019, the City provided a second written notice to franchisees in default under Sections 9 and 18.C.4 of the 2017 Franchise, requesting that all documentation be received by February 10, 2020, and informing the franchisees that failure to comply would result in City staff initiating the process for the City Council to consider terminating their respective 2017 Franchise; Ordinance No. 2020-14 Page 2 of 4 WHEREAS, some franchisees have not complied with either Sections 9 and/or 18.C.4, and City staff is recommending to the City Council that it terminate these franchisees' 2017 Franchise; WHEREAS, Section 23(B) of the 2017 Franchise authorizes termination by the City if the franchisee has defaulted in the performance of any obligation; WHEREAS, NBMC Section 12.63.140(D) provides that the City Council shall have the right to terminate the 2017 Franchise if the City Council finds, after notice and a hearing, that a franchisee has violated any provision of the franchise agreement; WHEREAS, NBMC Section 12.63.140(B) provides terminate a nonexclusive franchise shall be mailed to the fra for termination, and shall give the franchisee notice of the hearing before the City Council, which shall be convened nc and no more than sixty (60) days after the date of the notia with the consent of the parties; WHEREAS, on or about April 7, Sections 9 and/or 18.C.4 written notice Beach City Council Chambers located 92660, the City Council of the City of Ne Franchise Agreement for the violations at a notice of intent to tisee, stating the grounds ne, date and place of a sss than fifteen (15) days subject to a continuance d franchisees in default of n April 28, 2020 at 7:00 pm in the Newport 0 Civic Center Drive, Newport Beach, CA Beach will consider termination of the 2017 forth in the notice; WHEREAS, at the April 28, 2020 City Council meeting, the City Council continued the public hearing to May 12, 2020. A notice of time, place and purpose of the public hearing was given in accordance with the Government Code Section 54950 et seq. ("Ralph M. Brown Act") and by publication in accordance with Charter Section 1301; WHEREAS, the continued public hearing was held telephonically due to the Declaration of a State of Emergency and Proclamation of Local Emergency related to COVID-19 on May 12, 2020, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, CA. A notice of time, place and purpose of the continued public hearing was given in accordance with the Government Code Section 54950 et seq. ("Ralph M. Brown Act"). Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing; and WHEREAS, having considered all oral and documentary evidence presented at the public hearing, the City Council determines that the franchisees in violation of Sections 9 and/or 18.C.4 of the 2017 Franchise shall be terminated. Ordinance No. 2020-14 Page 3 of 4 NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The 2017 Franchise held with each entity listed below is hereby terminated based on noncompliance with providing proof of the installation of an auto collision avoidance system pursuant to Section 18.C.4 of the 2017 Franchise: a. CAF Services, Inc.; b. Genesis Dispatch, Inc.; c. Goodwin Enterprises, Inc.; rl Interior Removal gpeoielic# Inn e. Vey DiGpeGel A. Reoyolino Inn €d. Praisler Hauling & Demolition, Inc.; and g -LS Jade Corporation. Section 2: The 2017 Franchise held with each entity d below is hereby terminated for noncompliance with providing proof f inse rsuant to Section 9 of the 2017 Franchise and noncompliance with provi p o installation of an auto collision avoidance system pursuant to Section 18. f 017 Franchise: a. A2Z Recycling Services Inc.; N b. G.B. Services, Inc.; dk d -c. RB Holt Inc.; and r e -d. Skyline Construction Services DBA SCOR Industries. Section 3: The City ncil of the City of Newport Beach finds that this ordinance is not a pro' ubj the California Environmental Quality Act ("CEQA") in ec accordance with Ss 15 0(c)(2), 15060(c)(3), 15061(b)(3) and 15308 of the California Code of Regulations Title 14, Division 6, Chapter 3. The City Council further finds that adoption of this ordinance is categorically exempt under Section 15321, which exempts enforcement actions by regulatory agencies. Application of Section 15321 is appropriate because the franchisees set forth above have not complied with the terms of the 2017 Franchise. Section 4: The recitals provided above are true and correct and are incorporated into the substantive portion of this ordinance. Ordinance No. 2020-14 Page 4 of 4 Section 6: 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, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional. Section 6: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause this ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This ordinance shall be effective thirty (30) calendar 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 12th day of May, 2020, and adopted on the 26th day of May, 2020, by the following vote to -wit: AYES: NAYS: ABSEi` Fill i1*11II LEILANI I. BROWN. CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE AARON C. HARP, CITY ATTORNEY