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HomeMy WebLinkAbout03 - Solid Waste Franchise Agreements. City Council Agenda Item No. 3 November 22,1998 TO: Mayor and City Council FROM: General Services Director SUBJECT: Termination of Nan- exclusive Commercial Solid Waste Franchise Agreements with ZakaroffServices, Orange Disposal, and Alliance Waste & Recycling. Recommendations Adopt attached Resolution No. 99 -- terminating the solid waste franchise agreements between the City of Newport Beach and Zakaroff Services, Orange Disposal, and Alliance Waste & Recycling. Approve each of the attached agreements to terminate the franchise agreements between the City of Newport Beach and Zakaroff Services, Orange Disposal, and Alliance Waste & Recycling. 0 Background Per Chapter 12.60.030 of the Newport Beach Municipal Code, the City currently has solid waste non - exclusive franchise agreements with eighteen solid waste hauling firms. Three of the eighteen firms have requested that the City terminate their solid waste franchises. The three firths desiring to terminate their franchise agreements are Zakaroff Services, Orange Disposal and Alliance Waste. Waste Management of Orange County, a current franchised hauler, has acquired both Orange Disposal and Alliance. Similarly, Zakaroff was also acquired by another current franchisee, Briggeman Disposal. Discussion Per Chapter 12.63.130 of the City Municipal Code, the City Council has sole authority to terminate and assign any non - exclusive commercial solid waste collection franchise. Staff, with the assistance of the Assistant City Attorney, has prepared a resolution and agreements to terminate the Franchises. Approval of the attached documents will in no way relieve Zakaroff Services, Orange Disposal, nor Alliance Waste of current nor previous franchise fee obligations. Very respectfully, David E. Niederhaus F: Usca1GSV1ME1dndgc\N0VEMBER 99\Comd1- Fo;hTc=doc Attachments: (1) Proposed Resolution No. 99- _ terminating the Franchise Agreements with Zakaroff Services, Orange Disposal, and Alliance Waste & Recycling. (2) Agreement Between the City of Newport Beach and Briggeman Disposal Services, Inc. to terminate the Commercial Solid Waste Collection Franchise Agreement between the City of Newport Beach and Zakaroff Services. (3) Agreement Between the City of Newport Beach and Waste Management of Orange County, Inc., a Division of Waste Management Collection and Recycling, Inc. to terminate the Commercial Solid Waste Collection Franchise Agreement between the City of Newport Beach and Orange Disposal Services. (4) Agreement Between the City of Newport Beach and Waste Management of Orange County, Inc., a Division of Waste Management Collection and Recycling, Inc. to terminate the Commercial Solid Waste Collection Franchise Agreement between the City of Newport Beach and Alliance Waste and Recycling. E FAUscMM V\ME1dridge\OCTOBER 99\CD=i1- FrohTe=.d. RESOLUTION NO. 99-- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH TERMINATING /ASSIGNING THE COMMERCIAL SOLID WASTE COLLECTION FRANCHISE AGREEMENTS BETWEEN THE CITY OF NEWPORT BEACH AND ZAKAROFF SERVICES, BRIGGEMAN DISPOSAL, ORANGE DISPOSAL, AND ALLIANCE WASTE & RECYCLING. WHEREAS, on January 27, 1997, the City Council adopted Ordinance 97-4 granting a Non - exclusive Solid Waste Franchise to Zakaroff Services; and WHEREAS, on November 27, 1995, the City Council adopted Ordinance 95 -64 granting a Non - exclusive Solid Waste Franchise to Orange Disposal Service: and WHEREAS, on September 22, 1997, the City Council adopted Ordinance 97 -32 granting a Non - exclusive Solid Waste Franchise to Alliance Waste and Recycling; and WHEREAS, on October 20, 1999 the City was notified that Zakaroff Services was no longer operating within the City of Newport Beach, and has been acquired by Briggeman Disposal; and WHEREAS, On November 15, 1999 was informed that both Briggemen Disposal and Zakaroff Services were wholly owned by Consolidated Disposal Services LLC., dba Briggemen Disposal WHEREAS, on October 4, 1999 the City was notified that Orange Disposal was acquired by Waste Management of Orange County, and is no longer operating within the City of Newport Beach; and WHEREAS, on April 15, 1999, the City was notified that Alliance Waste & Recycling has been acquired by Waste Management of Orange County, and is no longer operating within the City of Newport Beach; and WHEREAS, Orange Disposal, and Alliance Waste & Recycling have requested that the City terminate their respective Franchise Agreement and Consolidated Disposal Services has asked that the Briggeman Disposal Franchise and Zakaroff Services Franchise be assigned to Consolidated Disposal Services., LLC. Dba Briggeman Disposal Services; and WHEREAS, the City Council has been presented with agreements to terminate/ assign the Franchise Agreements; NOW THEREFORE, the City Council resolves as follows: 1. The City Council hereby approves the termination of the Orange Disposal and Alliance Waste Franchise Agreements. The City Council approves the assignment of the Zakaroff Services and Briggeman Disposal Franchises to Consolidated Disposal Services, LLC., dba Briggeman Disposal Services. 2. Each of the following Agreements is hereby approved and the City Manager is authorized to execute each Agreement as written: a. Agreement to assign the Commercial Solid Waste Collection Franchise Agreements between the City of Newport Beach and Zakaroff Services and Briggeman Disposal Services, Inc to Consolidated Disposal Services, LLC. Dba Briggeman Diposal Services (Exhibit A). b. Agreement Between the City of Newport Beach and Waste Management of Orange County, Inc., a Division of Waste Management Collection and Recycling, Inc. to terminate the Commercial Solid Waste Collection Franchise Agreement between the City of Newport Beach and Orange Disposal Services (Exhibit B). c. Agreement Between the City of Newport Beach and Waste Management of Orange County, Inc., a Division of Waste Management Collection and Recycling, Inc. to terminate the Commercial Solid Waste Collection Franchise Agreement between the City of Newport Beach and Alliance Waste and Recycling (Exhibit Q. ADOPTED this _ day of 1999. "CITY" CITY OF NEWPORT BEACH, a Municipal Corporation Dated: By: Dennis D. O'Neil Mayor ATTEST LaVonne Harkless, City Clerk FAUSERSIGSV\MEldridgcWOVERfER 99WC d- FmchRmI m.doc EXHIBIT A REVISED AGREEMENT TO ASSIGN-THE COMMERCIAL SOLID WASTE COLLECTION FRANCHISE AGREEMENTS BETWEEN THE CITY OF NEWPORT BEACH AND ZAKAROFF SERVICES AND BRIGGEMAN DISPOSAL SERVICES, INC. TO CONSOLIDATED DISPOSAL SERVICES, LLC., DBA BRIGGEMAN DISPOSAL SERVICES, INC. This Agreement is entered into on this day, the _ day of , 1999 and executed by and between the CITY OF NEWPORT BEACH, a municipal corporation ( "CITY"), AND CONSOLIDATED DISPOSAL SERVICES, LLC., DBA BRIGGEMAN DISPOSAL SERVICES ( "CONSOLIDATED DISPOSAL "). RECITALS A. On January 27, 1997, the CITY entered into a Commercial Solid Waste Collection Franchise Agreement with Zakaroff Services ( "ZAKAROFF FRANCHISE "). On March 22, 1999, the CITY entered into a Commercial Solid Waste Collection Franchise with Briggeman Disposal Services. Inc. ( "BRIGGEMAN FRANCHISE "). The two franchises will be referred to herein collectively as "FRANCHISES ". B. On October 20, 1999 Zakaroff Services notified the City that it was acquired by Briggeman Disposal Services, Inc. and that it is no longer operating within the City of Newport Beach. The CITY was requested to terminate the Zakaroff Franchise. C. On November 15, 1999 the CITY was informed by Consolidated Services that Briggeman Disposal Services, Inc., is a wholly owned entity of Consolidated Disposal Services, LLC and that the BRIGGEMAN FRANCHISE should be assigned to Consolidated Disposal Services, LLC., DBA Briggeman Disposal Services. D. The CITY desires to clarify the operations of both the ZAKAROFF FRANCHISE and BRIGGEMAN FRANCHISE and to terminate unnecessary agreements. NOW THEREFORE, the CITY and CONSOLIDATED DISPOSAL agree as follows: CONSOLIDATED DISPOSAL hereby represents and agrees that the above - referenced recitals are true and accurate representations of the corporate status of Zakaroff Services and Briggeman Disposal Services, Inc. CONSOLIDATED DISPOSAL agrees that the Zakaroff Services and Briggeman Disposal Services, Inc. corporate entities operations have been merged with and transferred to the corporate entity, Consolidated Disposal Services, LLC., and that Consolidated Services operates within the City under DBA, Briggeman Disposal and that CONSOLIDATED DISPOSAL has authorization and legal standing to execute this Agreement, and to request assignment of the FRANCHISES and to assume all responsibility of the FRANCHISES. 2. Except for obligations of CONSOLIDATED DISPOSAL described below, the FRANCHISES are hereby assigned to CONSOLIDATED DISPOSAL effective November 22, 1999. 3. By signing this Agreement, CONSOLIDATED DISPOSAL and Zakaroff Services shall have surrendered all rights to operate commercial solid waste collection services under the name of Zakaroff Services in the CITY limits. 4. By signing this Agreement, Briggeman Disposal Services, Inc. has surrendered all rights to operate commercial solid waste collection services within the CITY limits and will hereafter operate all commercial solid waste collection services under the name of Consolidated Disposal Services, LLC., DBA Briggeman Disposal. 5. CITY hereby consents to the assignment of the FRANCHISES to Consolidated Disposal Services, LLC. DBA Briggeman Disposal (hereinafter referred to as Franchise Agreement) CONSOLIDATED DISPOSAL agrees to the following conditions of assignment: (a) All terms and conditions of the Franchises shall remain in full force and effect and the full and complete obligation of CONSOLIDATED DISPOSAL. CONSOLIDATED DISPOSAL agrees to fully comply with all terms and conditions of the Franchise Agreement. (b) CONSOLIDATED DISPOSAL agrees that all solid waste collected by CONSOLIDATED DISPOSAL will be disposed of per the provisions of the Franchise Agreement at a location identified by the City. (c) CONSOLIDATED DISPOSAL agrees that the Franchise Agreement shall terminate on December 31, 2005 and no extension of the Agreement is granted by this Assignment. (d) CONSOLIDATED DISPOSAL shall pay to CITY any and all deficient franchise fees, or other fees, or penalties, or obligations incurred under the FRANCHISES, as provided in #6 below. 6. CONSOLIDATED DISPOSAL shall be liable for payment to CITY of all applicable fees and penalties associated with the ZAKAROFF FRANCHISE and the BRIGGEMAN FRANCHISE and all solid waste collection services performed by or under the name of Zakaroff Disposal Services, Briggeman Disposal Services, Inc., or any other predecessor or subsidiary entities under the FRANCHISES during the term of the FRANCHISES through and including November 22, 1999. - CONSOLIDATED DISPOSAL' 'agree§ that liability shall include, but not be limited to the following: (a) All current and outstanding franchise fees; (b) All applicable charges associated with late payment of franchise fees pursuant to Section 4 of the FRANCHISES: (c) All applicable charges associated with reporting delinquencies pursuant to Section 6 of the FRANCHISES; 7. CONSOLIDATED DISPOSAL agrees to submit any outstanding Disposal Reports per Section 6 of the FRANCHISES. 8. The Board of Directors of CONSOLIDATED DISPOSAL has authorized execution of this Agreement, which authorization has been documented and provided to City prior to execution of this Agreement. WITNESS THE EXECUTION OF THIS AGREEMENT ON THE DATE WRITTEN BELOW EACH SIGNATURE: Dated: APPROVED AS TO FORM: ROBIN CLAUSON Assistant City Attorney Dated: F:\ users\ cm \sharedWg\BriggemanDisposal.doc 11 -18 -99 CITY OF NEWPORT BEACH, a Municipal Corporation Homer Bludau City Manager CONSOLIDATED DISPOSAL SERVICES, LLC., DBA BRIGGEMAN DISPOSAL SERVICES, INC. M Name: EXHIBIT (B) AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND WASTE MANAGEMENT OF ORANGE COUNTY, A DIVISION OF WASTE MANAGEMENT COLLECTION AND RECYCLING, INC. TO TERMINATE THE COMMERCIAL SOLID WASTE COLLECTION FRANCHISE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND ORANGE DISPOSAL. This Agreement is entered into on this day, the _ day of , 1999 and executed by and between the CITY OF NEWPORT BEACH, a municipal corporation ( "CITY "), AND WASTE MANAGEMENT OF ORANGE COUNTY, A DIVISION OF WASTE MANAGEMENT COLLECTION AND RECYCLING, INC. ( "WMOC"). RECITALS A. On November 27, 1995, the CITY entered into a Commercial Solid Waste Collection Franchise Agreement with Orange Disposal Services ( "ORANGE DISPOSAL FRANCHISE "). B. On January 2, 1996 the CITY entered into a Commercial Solid Waste Collection Franchise with Waste Management of Orange County, Inc. which was assigned to "Waste Management of Orange County, Inc, a Division of Waste Management Collection and Recycling, Inc. on June 14, 1999 ( "WASTE MANAGEMENT FRANCHISE "). C. On October 4, 1999 Orange Disposal Services notified the City that it was acquired by WMOC, and that it is no longer operating within the City of Newport Beach. The CITY was requested to terminate the ORANGE DISPOSAL Franchise. D. The CITY desires to clarify the operations of both the ORANGE DISPOSAL FRANCHISE and WASTE MANAGEMENT FRANCHSE and to terminate unnecessary agreements. NOW THEREFORE, the CITY and WMOC agree as follows: 1. WMOC hereby represents and agrees that the above - referenced recitals are true and accurate representations of the corporate status of ORANGE DISPOSAL and WMOC, and that WMOC has authorization and legal standing to execute this Agreement, and to surrender the ORANGE DISPOSAL FRANCHISE and to assume all responsibility of the ORANGE DISPOSAL FRANCHISE. 2. Except for obligations of WMOC described below, the ORANGE DISPOSAL FRANCHISE is hereby terminated effective November 22, 1999. 3. By signing this Agreement, WMOC shall have surrendered all rights to operate commercial solid waste collection services under the name of Orange Disposal Services in the CITY limits. 4. WMOC shall be liable for payment to CITY of all applicable fees and penalties associated with the ORANGE DISPOSAL FRANCHISE and all solid waste collection services performed by or under the name of Orange Disposal Services or any other predecessor or subsidiary entities under the ORANGE DISPOSAL FRANCHISE during the term of Franchise through and including November 22, 1999. WMOC agrees that liability shall include, but not be limited to, the following: (a) All current and outstanding franchise fees; (b) All applicable charges associated with late payment of franchise fees pursuant to Section 4 of the ORANGE DISPOSAL FRANCHISE; (d) All applicable charges associated with reporting delinquencies pursuant to Section 6 of the ORANGE DISPOSAL FRANCHISE; 5. WMOC agrees to submit any outstanding Disposal Reports per Section 6 of the ORANGE DISPOSAL FRANCHISE. 6. The Board of Directors of WMOC has authorized execution of this Agreement, which authorization has been documented and provided to City prior to execution of this Agreement. WITNESS THE EXECUTION OF THIS AGREEMENT ON THE DATE WRITTEN BELOW EACH SIGNATURE: ATTEST LaVonne Harkless City Clerk Dated: APPROVED AS TO FORM: ROBIIN CLAUSON Assistant City Attorney CITY OF NEWPORT BEACH, a Municipal Corporation Homer Bludau City Manager 0 WASTE MANAGEMENT OF ORANGE COUNTY, • INC., A DIVISION OF WASTE MANAGEMENT COLLECTION AND RECYCLING, INC. Na F1Usem\GSVWEIddd9eW0VEMBER 99\Cound1- FranchAss1gnmldoc 10 EXHIBIT (C) AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND WASTE MANAGEMENT OF ORANGE COUNTY, A DIVISION OF WASTE MANAGEMENT COLLECTION AND RECYCLING, INC. TO TERMINATE THE COMMERCIAL SOLID WASTE COLLECTION FRANCHISE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND ALLIANCE WASTE AND RECYCLING. This Agreement is entered into on this day, the _ day of , 1999 and executed by and between the CITY OF NEWPORT BEACH, a municipal corporation ( "CITY "), AND WASTE MANAGEMENT OF ORANGE COUNTY, A DIVISION OF WASTE MANAGEMENT COLLECTION AND RECYCLING, INC. ( "WMOC"). RECITALS A. On September 22, 1997, the CITY entered into a Commercial Solid Waste Collection Franchise Agreement with Alliance Waste and Recycling ( "ALLIANCE FRANCHISE "). B. On January 2, 1996 the CITY entered into a Commercial Solid Waste Collection Franchise with Waste Management of Orange County, Inc. which was assigned to "Waste Management of Orange County, Inc, a Division of Waste Management Collection and Recycling, Inc. on June 14,' 1999 ( "WASTE MANAGEMENT FRANCHISE "). C. On April 15, 1999 Alliance Waste and Recycling ( "ALLIANCE ") notified the City that it was acquired by WMOC, and that it is no longer operating within the City of Newport Beach. The CITY was requested to terminate the ALLIANCE FRANCHISE. D. The CITY desires to clarify the operations of both the ALLIANCE FRANCHISE and WASTE MANAGEMENT FRANCHSE and to terminate unnecessary agreements. NOW THEREFORE, the CITY and WMOC agree as follows: 1. WMOC hereby represents and agrees that the above - referenced recitals are true and accurate representations of the corporate status of ALLIANCE and WMOC, and that WMOC has authorization and legal standing to execute this Agreement, and to surrender the ALLIANCE FRANCHISE and to assume all responsibility of the ALLIANCE FRANCHISE. 2. Except for obligations of WMOC described below, the ALLIANCE FRANCHISE is hereby terminated effective November 22, 1999. 3. By signing this Agreement, WMOC shall have surrendered all rights to operate commercial solid waste collection services under the name of Alliance Waste and Recycling in the CITY limits. 4. WMOC shall be liable for payment to CITY of all applicable fees and penalties associated with the ALLIANCE FRANCHISE and all solid waste collection services performed by or under the name of Alliance Waste and Recycling or any other predecessor or subsidiary entities under the ALLIANCE FRANCHISE during the term of Franchise through and including November 22, 1999. WMOC agrees that liability shall include, but not be limited to, the following: (a) All current and outstanding franchise fees; (b) All applicable charges associated with late payment of franchise fees pursuant to Section 4 of the ALLIANCE FRANCHISE; (e) All applicable charges associated with reporting delinquencies . pursuant to Section 6 of the ALLIANCE FRANCHISE; 5. WMOC agrees to submit any outstanding Disposal Reports per Section 6 of the ALLIANCE FRANCHISE. 6. The Board of Directors of WMOC has authorized execution of this Agreement, which authorization has been documented and provided to City prior to execution of this Agreement. Ll • 0 WITNESS THE EXECUTION OF THIS AGREEMENT ON THE DATE WRITTEN BELOW EACH SIGNATURE: Dated: ATTEST LaVonne Harkless City Clerk Dated: APPROVED AS TO FORM: CITY OF NEWPORT BEACH, a Municipal Corporation M Homer Bludau City Manager WASTE MANAGEMENT OF ORANGE COUNTY, INC., A DIVISION OF WASTE MANAGEMENT COLLECTION AND RECYCLING, INC. M Name: Title: ROBIIN CLAUSON Assistant City Attorney F:\ Users \GSVV0EldddgeW OVEMBER 99 \Counci1- FranchAssignmldac