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HomeMy WebLinkAbout03 - Termination of Non-Exclusive Commercial Solid Waste Franchise AgreementCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 3 June 24, 2003 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: General Services Department David E. Niederhaus, Director, 949- 644 -3055 SUBJECT: Termination of Non - exclusive Commercial Solid Waste Franchise Agreement ISSUE: Should the City terminate the solid waste franchise agreement between the City of Newport Beach and Browning Ferris Industries? RECOMMENDATION: Adopt attached Resolution No. 2003 -_ terminating the solid waste franchise agreement between the City of Newport Beach and Browning Ferris Industries. DISCUSSION: Background: Per Chapter 12.60.030 of the Newport Beach Municipal Code, the City currently has solid waste non - exclusive franchise agreements with twenty -two solid waste hauling firms. One of the twenty -two firms has requested that the City terminate their solid waste franchise. The firm desiring to terminate their franchise agreement is Browning Ferris Industries 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 agreement to terminate the Franchise. Approval of the attached document will in no way relieve Browning Ferris Industries of current nor previous franchise fee obligations. Environmental Review: N/A Prepared by: Submitted by: Termination of Franchise June 24, 2003 Page 2 Jerem F,jammond, David E. Niederhaus, Mana ement Assistant Director Attachments: (1) Proposed Resolution No. 03- _ terminating the Franchise Agreement with Browning Ferris Industries (2) Agreement to Surrender Commercial Solid Waste Collection Franchise Agreement between the City of Newport Beach and Browning Ferris Industries RESOLUTION NO. 2003- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH TERMINATING THE COMMERCIAL SOLI) WASTE COLLECTION FRANCHISE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND BROWNING FERRIS INDUSTRIES WHEREAS, on October 19, 1995, the City of Newport Beach granted a Non - exclusive Franchise to Browning Ferris Industries for commercial solid waste collection services ( "Franchise Agreement'); and, WHEREAS, on May 28, 2003, the City was notified that Browning Ferris Industries is no longer operating within the City of Newport Beach; and, WHEREAS, Browning Ferris Industries has requested, in writing, that the City terminate the Franchise Agreement; and, WHEREAS, the City Council has been presented with an agreement to terminate the Franchise Agreement; and NOW, THEREFORE, be it resolved by the City Council of the City of Newport Beach that: 1. The City Council hereby approves the termination of the Franchise Agreement with Browning Ferris Industries. The Agreement to Surrender the Commercial Solid Waste Collection Franchise Agreement between the City of Newport Beach and Browning Ferris Industries attached hereto as Exhibit "A ", is hereby approved and the City Manager is authorized to execute the Agreement as written. Adopted this _ day of 2003 "CITY" CITY OF NEWPORT BEACH, A Municipal Corporation EXHIBIT "A" AGREEMENT TO SURRENDER COMMERCIAL WASTE COLLECTION FRANCHISE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND BROWNING FERRIS INDUSTRIES This Agreement is entered into on this day, the , day of 2003 and executed by and between the CITY OF NEWPORT BEACH, a municipal corporation ( "CITY ") and BROWNING FERRIS INDUSTRIES ( "FRANCHISEE "). RECITALS Pursuant to City Ordinance No. 95 -118, CITY and FRANCHISEE entered into a Commercial Solid Waste Collection Franchise Agreement dated October 19, 1995 ( "AGREEMENT "). On May 28, 2003, CITY was notified that FRANCHISEE is no longer operating within the CITY. NOW THEREFORE, CITY and FRANCHISEE agree as follows: 1. The AGREEMENT is hereby terminated effective June 24, 2003 and shall be of no further force and effect. 2. By signing this agreement, FRANCHISEE agrees to surrender all rights to do business as Browning Ferris Industries to operate commercial solid waste collection services within the City limits. 3. FRANCHISEE shall be liable for payment to the CITY of all applicable fees associated with the FRANCHISEE's performance of solid waste collection services performed during the term of this AGREEMENT through June 24, 2003 including but not limited to the following: a. Current and outstanding Franchise Fees b. All applicable charges associated with late payment of Franchise Fees pursuant to Section 4 of this AGREEMENT C. All applicable charges associated with report delinquencies pursuant to Section 6 of the AGREEMENT 4. FRANCHISEE agrees to submit any outstanding Disposal Reports per Section 6 of the AGREEMENT including Quarterly Disposal Report for the activity performed through June 24, 2003. 5. FRANCHISEE agrees that it has removed, or will remove within fifteen days after City Council approval of this agreement all equipment from FRANCHISEE's service locations within the City limits. 6. FRANCHISEE agrees that it will obtain a new franchise agreement with the CITY prior to initiating future solid waste collection services within the City limits. WITNESS THE EXECUTION OF THIS AGREEMENT ON THE DATE WRITTEN BELOW EACH SIGNATUE: "CITY" CITY OF NEWPORT BEACH, A Municipal Corporation Dated: By: Homer Bludau City Manager ATTEST LaVonne Harkless City Clerk "FRANCHISEE" Browning Ferris Industries By: _ Name: Title: Date: APPROVED AS TO FORM: Robin L. Clauson Assistant City Attorney 1 1 May 28, 2003 Mr. Jeremy Hammond Management Assistant General Services Division CITY OF NEWPORT BEACH P.O. Box 1768, 3300 Newport Blvd. Newport Beach, CA 92659 Dear Mr. Hammond: This letter is to notify you that we no longer are servicing the City of Newport Beach with refuse collection. We request that you terminate our franchise agreement with your City effective immediately. Thank you for your immediate attention to this matter. Cordially, Gerald Perissi General Manager Waste Systems of North America, Inc. • 14905 S. San Pedro Street • Gardena, California 90248 Phone 310- 323 -0763 Ext. 220 • Fax 310 -323 -6063