HomeMy WebLinkAbout2020-70 - Declaring Its Intention to Conduct a Public Hearing to Consider Granting Non-Exclusive Commercial Solid Waste and Divertible Materials Handling FranchisesRESOLUTION NO. 2020-70
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, DECLARING ITS
INTENTION TO CONDUCT A PUBLIC HEARING TO
CONSIDER GRANTING NON-EXCLUSIVE COMMERCIAL
SOLID WASTE AND DIVERTIBLE MATERIALS HANDLING
FRANCHISES
WHEREAS, the City Council of the City of Newport Beach ("City") finds and
determines that the collection of municipal solid waste and divertible materials, including
recyclable materials, food scraps, green waste, wood waste, construction and demolition
debris, and all other materials that can be diverted from landfill disposal (collectively
"Commercial Solid Waste") generated within the City is a vital public service;
WHEREAS, the City Council further finds and determines that the collection,
transportation, storage, and disposal of municipal solid waste and the collection,
transportation, processing, and diversion of processable municipal solid waste and
divertible materials ("Commercial Franchise Services") is a matter of great public concern
because improper control of such matters subjects 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;
WHEREAS, the non-exclusive franchises for the use of public streets to provide
Commercial Franchise Services promotes the public health, safety and welfare by
providing permanence and stability among those businesses wishing to provide such
service and accountability to the City for compliance with current and future state
mandates;
WHEREAS, in 2017, the City Council adopted a model non-exclusive commercial
solid waste franchise agreement for private solid waste haulers and, thereafter, entered
into franchise agreements with a number of commercial solid waste franchise haulers
("2017 Franchise"), effective through November 8, 2024;
WHEREAS, although the 2017 Franchise does not expire until November 8, 2024,
on October 22, 2019, the City Council approved a new model franchise agreement in
compliance with Assembly Bill 1826 and Assembly Bill 341 ("2020 Franchise"), that
expires in the year 2027;
WHEREAS, the City has since received applications from 2017 Franchise holders
and new applicants that wish to perform work under the 2020 Franchise;
Resolution No. 2020-70
Page 2 of 6
WHEREAS, pursuant to Article XIII of the 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, or any successor
statutes, the City is authorized to enter into non-exclusive franchise agreements for
Commercial Franchise Services with private solid waste haulers;
WHEREAS, pursuant to City Charter Section 1301 (Granting of Franchise), the
City Council, prior to granting any franchise, shall pass a resolution declaring its intention
to grant same, stating the name of the proposed grantee(s), the character of the franchise,
and the terms and conditions upon which it is proposed to be granted; and
WHEREAS, such resolution shall fix and set forth the day, hour and place when
and where any persons having any interest therein or any objection to the granting thereof
may appear before the City Council and be heard thereon.
NOW, THEREFORE, be it resolved by the City Council of the City of Newport
Beach that:
Section 1: The City Council hereby declares its intention to grant non-exclusive
franchises, subject to the following general terms and conditions ("Non-exclusive
Franchise"):
a. Effective date. October 8, 2020;
b. Franchise fees. Sixteen percent (16%) of gross monthly receipts. Five and
one-half percent (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. One-half percent (0.5%) shall be attributable to the maintenance and
implementation of the City's Source Reduction and Recycling Element;
C. Term. October 8, 2020 to October 7, 2027;
d. Rates. The City shall not set franchisees' bin rates;
e. Indemnification. Franchisees shall indemnify and hold City harmless from
penalties and damages for failure to meet state recycling requirements with respect to the
portion of the Commercial Solid Waste stream collected by franchisees;
Resolution No. 2020-70
Page 3 of 6
f. Diversion requirements. Franchisees shall divert a minimum of fifty-five
percent (55%), subject to increase as required by state law, of all processable municipal
solid waste, recyclable materials, food scraps and green waste collected by franchisee.
Franchisees shall divert a minimum of sixty-five percent (65%), subject to increase as
required by state law, of all construction and demolition debris collected by franchisees;
g. Disposal requirements. Franchisees shall dispose of Commercial Solid
Waste, not otherwise diverted, in Orange County landfills pursuant to the City's waste
disposal agreement with the County of Orange. City maintains the right to designate
disposal facilities to be used by franchisees;
h. Billing. Franchisees shall be responsible for all billing and collection for its
accounts;
i. Termination. Franchise shall not be revoked unless franchisee has
defaulted in the performance of any obligation of the 2020 Franchise, and the Franchise
may be terminated pursuant to Newport Beach Municipal Code Section 12.63.140;
j. Application requirements. Prior to obtaining the 2020 Franchise,
franchisees shall designate the specific Commercial Franchise Services for which it
desires to apply and shall demonstrate competence in and compliance with the City's
insurance, equipment, and diversion requirements with respect to those Commercial
Franchise Services;
k. Public education. Franchisees shall meet City's requirements to implement
recycling, diversion and source reduction public education activities;
I. Recycling/diversion programs. Franchisees shall implement and provide
recycling and diversion programs for all customers subject to California State Assembly
Bills 939, 341, and 1826, and the California Green Building Standards Code, codified in
the California Code of Regulations Title 24, Part 11, ("CALGreen");
M. Hauler representative. Franchisees shall designate a representative to
assist in implementing State -imposed recycling and diversion programs; and
n. Compliance. Franchisees shall comply with all state, federal laws and
regulations, terms and conditions of the franchise agreement, the City Charter and the
Newport Beach Municipal Code.
Resolution No. 2020-70
Page 4 of 6
Section 2: The City intends to grant the 2020 Franchise to the following entities
(collectively, "Proposed Grantees"), which currently hold a 2017 Franchise and are
presently licensed and permitted to conduct business in the City:
a. Arakelian Enterprises, Inc. dba Athens Services;
b. CR&R Incorporated;
C. Direct Disposal;
d. Haul -Away Rubbish Service Co.;
e. Interior Removal Specialist, Inc.;
f. JD Demolition and Grading, Inc.;
g. Rainbow Disposal Co., Inc.;
h. Tight Quarters, Inc.
i. Universal Waste Systems, Inc.
j. Ware Disposal, Inc.; and
k. Waste Management Collection and Recycling, Inc. dba Waste Management
of Orange County.
Should any of the above entities be granted a 2020 Franchise, and accept such 2020
Franchise, the respective entity's 2017 Franchise shall be abandoned at such time the
2020 Franchise is granted pursuant to City Charter Section 1303.
Section 3: The City intends to grant the 2020 Franchise to the following entities
(collectively, "Proposed Grantees"), which do not currently hold a franchise with the City:
a. American Wrecking Inc.;
b. Dallaco, Inc. dba Pacific Coast Environmental;
c. Kevin Ray Demolition Inc.; and
d. L.A.L. Services, Inc.
Resolution No. 2020-70
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Section 4: The City Council shall conduct a public hearing on August 25, 2020
at 5:00 p.m., or as soon thereafter as is practical, in the City Council Chambers located
at 100 Civic Center Drive, Newport Beach, California, to consider granting the Proposed
Grantees the 2020 Franchise. Persons who have an interest in or objection to the
granting of the 2020 Franchise to the Proposed Grantees may appear before the City
Council and be heard at that date and time.
Section 5: The City Council of the City of Newport Beach finds the adoption of
this resolution is categorically exempt from the California Environmental Quality Act
("CEQA") under Sections 15301 and 15308 of the California Code of Regulations set forth
in Title 14, Division 6, Chapter 3 which exempts "existing operations and facilities" and
"actions by regulatory agencies for protection of the environment." Application of Sections
15301 and 15308 is appropriate because the resolution does not change nor expand
existing solid waste operations and facilities within the City. This resolution is also
consistent with the goals of California State Assembly Bills 939, 341, and 1826, The
California Solid Waste ManagementAct, CALGreen, as well as the objectives of the City's
Source Reduction and Recycling Element,
Section 6: The recitals provided above are true and correct and are
incorporated into the substantive portion of this resolution.
Section 7: If any section, subsection, sentence, clause or phrase of this
resolution 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 resolution. The City
Council hereby declares that it would have passed this resolution, 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.
Resolution No. 2020-70
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Section 8: Pursuant to City Charter Section 1301, this resolution shall be
published in the City's official newspaper within fifteen (15) days of its adoption and at
least ten (10) days prior to August 25, 2020.
ADOPTED this 28th day of July, 2020.
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Will O'Neill
Mayor
ATTEST:
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Leilani I. Brown
City Clerk
APPROVED AS TO FORM: cq
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CITY/ATTORNEY'S OFFICE
Aaron C. Harp
City Attorney
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; the foregoing resolution, being Resolution
No. 2020-70, was duly introduced before and adopted by the City Council of said City at a regular
meeting of said Council held on the 28th day of July, 2020; and the same was so passed and adopted by
the following vote, to wit:
AYES: Mayor Will O'Neill, Mayor Pro Tem Brad Avery, Council Member Joy Brenner, Council
Member Diane Dixon, Council Member Duffy Duffield, Council Member Jeff Herdman,
Council Member Kevin Muldoon
NAYS: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 291h day of July, 2020.
C �
Le ani I. Brown
City Clerk
Newport Beach, California