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Home My WebLink About2024-14 - Terminating a Non-Exclusive Franchise Agreement for Commercial Solid WasteORDINANCE NO. 2024-14 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, TERMINATING A NON-EXCLUSIVE FRANCHISE AGREEMENT FOR COMMERCIAL SOLID WASTE 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, on October 22, 2019, the City Council approved a new model franchise agreement in compliance with state law ("2020 Franchise Agreement"), that expires in the year 2027; WHEREAS, the City has identified violations of the 2020 Franchise Agreement related to subcontracting, delayed diversion reporting, diversion deficiencies and/or failing to retain required insurance from franchisee Key Disposal & Recycling, Inc. ("Franchisee"); Ordinance No. 2024-14 Page 2 of 4 WHEREAS, pursuant to Article XIII (Franchises) 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 and/or terminate non-exclusive franchise agreements for Commercial Franchise Services with private solid waste haulers; WHEREAS, pursuant to Section 12.63.140 (Termination) of the NBMC, the City transmitted a notice of intent to terminate the non-exclusive franchise to the Franchisee that stated the City Council's intent to hold a hearing, along with the time, date and place of hearing to be held within fifteen (15) days and sixty (60) days of the date of notice; WHEREAS, the City Council held a hearing on March 26, 2024, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act") and Section 1301 of the City Charter. Evidence, both written and oral, was presented to, and considered by, the City Council at this hearing; WHEREAS, at the hearing, the City Council granted an extension to April 9, 2024, for Franchisee to resolve violations of the 2020 Franchise Agreement; WHEREAS, the City requested an additional continuance to May 14, 2024, for Franchisee to resolve outstanding violations of the 2020 Franchise Agreement; WHEREAS, the City worked with Franchisee from March 26, 2024 to April 29, 2024, to gain compliance however, Franchisee was unable to resolve all of the outstanding violations of the 2020 Franchise Agreement; WHEREAS, the City Council held a hearing on May 14, 2024, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with the Ralph M. Brown Act and Section 1301 of the City Charter. Evidence, both written and oral, was presented to, and considered by, the City Council at this hearing; WHEREAS, at the hearing, the City Council granted an extension to May 28, 2024 to allow the Franchisee to relinquish its "Tier 1" services; Ordinance No. 2024-14 Page 3 of 4 WHEREAS, pursuant to Section 12.63.140 (Termination) of the NBMC, the City Council finds, on the basis of the hearing, information, materials and testimony submitted that Franchisee has failed to comply with supplying records as requested, including a diversion plan and implementing a three -container source separation program; and WHEREAS, having considered all oral and documentary evidence presented at the hearing, the City Council determines that the termination of the 2020 Franchise Agreement with Key Disposal & Recycling, Inc. is in the public interest. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The 2020 Franchise Agreement with Key Disposal & Recycling, Inc. is hereby terminated. Section 2: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 3: 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 hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 4: The City Council finds the introduction and adoption of this ordinance 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, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Ordinance No. 2024-14 Page 4 of 4 Section 5: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the 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 28th day of May, 2024, and adopted on the 11th day of June, 2024, by the following vote, to -wit: AYES: Mayor O'Neill Mayor Pro Tern Stapleton, Councilmember Avery, Councilmember Blom Councilmember Grant, Councilmember Kleiman, Councilmember Weigand NAYS: ABSENT: ATTEST: r LEILANI I. BROWN CITY CLERK U APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE ~oRN►P AARON VARP, CITY TORNEY WILL O'NEILL, MAYOR 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; that the foregoing ordinance, being Ordinance No. 2024-14 was duly introduced on the 281h day of May, 2024, at a regular meeting, and adopted by the City Council at a regular meeting duly held on the 11th day of June, 2024, and that the same was so passed and adopted by the following vote, to wit: AYES: Mayor Will O'Neill, Mayor Pro Tern Joe Stapleton, Councilmember Brad Avery, Councilmember Noah Blom, Councilmember Robyn Grant, Councilmember Lauren Kleiman, Councilmember Erik Weigand NAYS: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 12th day of June, 2024. STATE OF CALIFORNIA } COUNTY OF ORANGE } CITY OF NEWPORT BEACH } M&k,4. Leilani I. Brown, MMC City Clerk City of Newport Beach, California CERTIFICATE OF PUBLICATION ss. I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that Ordinance No. 2024-14 has been duly and regularly published according to law and the order of the City Council of said City and that same was so published in The Daily Pilot, a newspaper of general circulation on the following dates: Introduced Ordinance: June 1, 2024 Adopted Ordinance: June 15, 2024 In witness whereof, I have hereunto subscribed my name this day of June, 2024. Leilani . Brown, MM City Clerk City of Newport Beach, California