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HomeMy WebLinkAbout1084ORDINANCE NO. 1084 (1986 SERIES) AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO GRANTING TO SAN LUIS GARBAGE COMPANY A FRANCHISE FOR COLLECTING SOLID WASTE WITHIN THE CITY OF SAN LUIS OBISPO WHEREAS, public health and safety demand the orderly and periodic collection and disposal of solid waste from properties within the City of San Luis Obispo ( "CITY "); and WHEREAS, CITY officials and staff have determined that an exclusive franchise granted to a private company is the most effective and efficient way to collect and remove solid waste within CITY; and WHEREAS, San Luis Garbage Company has provided solid waste collection and disposal service within CITY for more than 40 years without interruption; and WHEREAS, during public comment periods concerning solid waste collection and disposal, most respondents expressed a high level of satisfaction with the service provided by San Luis Garbage Company; and WHEREAS, renewing the franchise held by San Luis Garbage Company would ensure the continuation of effective and efficient solid waste collection and disposal service; BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. That San Luis Garbage Company ( "FRANCHISEE ") be granted a franchise for the collection and disposal of solid waste within CITY limits subject to the following terms and conditions: A. The franchise shall begin on March 1, 1987 and end on June 30, 1997. B. FRANCHISEE shall comply with all pertinent provisions of the Charter of the City of San Luis Obispo, and all pertinent ordinances and resolutions of the City of San Luis Obispo. FRANCHISEE shall particularly note Article X of the Charter of the City of San Luis Obispo regarding licenses and franchises and Chapter 8.04 of the San Luis Obispo Municipal Code regarding solid waste disposal and CITY's right to set rates. CITY reserves the right to revise any of its laws and regulations pertaining to solid waste disposal in order to protect public health, safety and welfare. FRANCHISEE shall comply with all existing and future county, state and federal laws and regulations. 0 1084 Ordinance No. 1084 (1986 Series) Page 2 C. FRANCHISEE shall acquire and maintain for the full term of the franchise registration to haul hazardous waste to a certified disposal site. D. FRANCHISEE shall pay CITY five percent of its gross cash receipts for collection and disposal of solid waste within the CITY, with payments due on the 15th day of each month for receipts from the previous month. E. FRANCHISEE shall not collect solid waste in residential areas between the hours of 8:30 p.m. and 6:30 a.m. F. Within 24 hours of notice from CITY or customer, FRANCHISEE shall collect any solid waste which FRANCHISEE may have failed to collect at the regularly scheduled time. G. If FRANCHISEE cannot collect an article of solid waste because it is too heavy, too large or incorrectly packaged, FRANCHISEE shall attach a tag explaining why that article could not be collected. H. FRANCHISEE shall ensure that while on duty each collection worker wears a clean uniform with conspicuous insignia displaying FRANCHISEE's company name and the worker's name or identification number. I. FRANCHISEE shall keep a fleet of collection trucks adequate to perform the service specified in the franchise and shall maintain that fleet according to the stipulations of Municipal Code Sections 8.04.030 and 8.04.090. J. FRANCHISEE and its affiliates shall maintain the disposal site required by Municipal Code Section 8.04.060 according to all applicable county, state and federal regulations at a location not more than 15 miles from the city limits of the City of San Luis Obispo. FRANCHISEE shall ensure that the required disposal site be open to CITY customers during the following hours on all days except Christmas Day and New Years Day: Monday through Saturday - 7:00 a.m. to 4:30 p.m. Sunday or legal holiday - 7:00 a.m. to 3:00 p.m. FRANCHISEE may modify these hours with the consent of CITY's city administrative officer. At the entrance to the disposal site, FRANCHISEE shall ensure that a sign is posted which specifies rates, hours and applicable regulations. Ordinance No. 1084 (1986 Series) Page 3 K. In June of each year, beginning on the first Monday after the second Saturday and continuing through the following Friday, FRANCHISEE shall conduct a "residential cleanup week" and collect additional solid waste from residential customers within CITY during regularly scheduled service at no additional charge to those customers. FRANCHISEE shall not be required to collect the following additional solid waste: -loose material not placed in suitable containers or tied securely together - bundles of loose material weighing more than 75 pounds - bundles of loose material exceeding four feet in length, width or depth - individual articles weighing more than 100 pounds - individual articles shaped so awkwardly that two workers cannot lift them. - sofas, overstuffed chairs, mattresses and major appliances without prior arrangement with FRANCHISEE. L. FRANCHISEE shall collect for recycling the following materials from residential customers once each week: - newspapers packed in brown grocery bags or tied with twine - aluminum cans placed in appropriate containers -glass bottles and jars placed in appropriate containers By January 1, 1988 FRANCHISEE and CITY staff shall prepare a recycling improvement plan subject to review and approval by the Council of the City of San Luis Obispo. This plan shall include elements on public information and financing. M. The dumping privileges provided without charge for CITY -owned vehicles at the designated landfill in previous franchise ordinances shall be incrementally eliminated in the following steps: (1) From March 1, 1987 through June 30, 1987 CITY shall continue to pay no disposal fee. (2) From July 1, 1987 through June 30, 1988 CITY shall pay 25 percent of the applicable disposal fee. (3) From July 1, 1988 through June 30, 1989 CITY shall pay 50 percent of the applicable disposal fee. (4) From July 1, 1989 through June 30, 1990 CITY shall pay 75 percent of the applicable disposal fee. (5) From July 1, 1990 onward CITY shall pay the full disposal fee. Ordinance No. 1084 (1986 Series) Page 4 Although the landfill is owned and operated by an affiliate of FRANCHISEE, disposal fees incurred by CITY under this paragraph shall be billed by and paid to FRANCHISEE. N. With CITY approval, FRANCHISEE shall cumulatively spend or contribute toward the following activities an amount equal to the additional revenue received under the provisions of paragraph M: - operating losses incurred by the residential recycling service - capital acquisitions for the residential recycling service - capital improvements to recycling facilities - expansion of recycling services, including collection of used motor oil - publicity for recycling services - publicity for residential cleanup week -other innovative solid waste management services 0. If waste -to- energy facilities become feasible in San Luis Obispo County during the term of the franchise, FRANCHISEE shall cooperate with the agencies and enterprises involved in order to recover potentially valuable resources and reduce waste deposited at landfills. P. The solid waste franchise shall automatically extend to any area annexed to CITY, except that CITY may permit a firm franchised by the County of San Luis Obispo before the annexation to continue serving the area for a period not to exceed five years. When required to serve new portions of CITY, FRANCHISEE shall promptly extend routes and service and, if necessary, hire additional workers and obtain additional equipment. Q. FRANCHISEE shall maintain an office with telephone within the San Luis Obispo city limits where customers may apply for service, pay bills and register complaints. FRANCHISEE shall staff this office from 8:00 a.m. to 5:00 p.m. Monday through Friday except legal holidays observed by CITY. R. FRANCHISEE shall prepare and keep current a flier acceptable to CITY which summarizes solid waste regulations, fees, telephone numbers and other pertinent information. FRANCHISEE shall print whatever copies of this flier are needed. FRANCHISEE shall distribute copies of this flier to all new commercial customers and shall annually mail copies of this flier to all of its current commercial customers. CITY shall distribute copies of this flier to all new residential customers and shall annually mail copies of this flier to all current Ordinance No. 1084 (1986 Series) Page 5 residential customers. S. FRANCHISEE shall maintain copies of all written service complaints and summaries of all oral service complaints and shall allow CITY officials to inspect these records during the required office staffing hours after CITY has requested such inspection with reasonable notice. T. In its accounting records, FRANCHISEE shall discretely maintain and clearly identify all items of revenue and expense pertaining to CITY's franchised operations. FRANCHISEE shall allow CITY officials to inspect these records during the required office staffing hours after CITY has requested such inspection with reasonable written notice. U. CITY's city administrative officer shall administer the solid waste franchise and supervise FRANCHISEE's compliance with the franchise terms and conditions. If a disagreement arises between FRANCHISEE and a customer, CITY's city administrative officer shall conduct an investigation., decide the matter and give due notice and documentation of that decision. V. FRANCHISEE shall Continue to collect and dispose of solid waste throughout the term of its franchise without interruption. W. FRANCHISEE shall furnish and maintain a cash or surety bond in the amount of $50,000 to ensure the faithful performance of its franchise obligations and its compliance with applicable laws and regulations. X. If FRANCHISEE willfully and persistently fails to perform according to the franchise terms and conditions, CITY shall notify FRANCHISEE in writing of the failure. If FRANCHISEE does not correct the failure within 20 days after receiving notice, CITY may by resolution of the city council terminate the franchise. Y. If there is an interruption of service, CITY shall be entitled to temporarily possess and use FRANCHISEE's equipment and disposal site privileges in order to continue service. When this temporary possession and use begins, CITY shall promptly notify in writing FRANCHISEE and any holders of contracts on the equipment. When this temporary possession and use end, CITY shall notify in writing FRANCHISEE and any holders of contracts on the equipment. If FRANCHISEE fails to take possession of the equipment within 15 days after notification that the temporary possession and use has ended, FRANCHISEE shall in effect Ordinance No. 1084 (1986 Series) Page 6 have abandoned the equipment and waived all interest in the equipment, and CITY shall be free to use and dispose of the equipment without liability or compensation to FRANCHISEE. (1) Throughout paragraph Y "interruption of service" shall mean (a) any period during which FRANCHISEE's operations are diminished or discontinued by circumstances beyond its control or (b) any period after CITY has terminated the franchise and until CITY can reasonably acquire other suitable equipment. (2) Throughout paragraph Y "contract" shall mean any conditional sales contract, mortgage, encumbrance, lease, rental agreement or other agreement which provides for retention of title to the equipment or grants a security interest in the equipment. (3) Throughout paragraph Y "equipment" shall mean all vehicles and equipment used by FRANCHISEE to perform the services specified in the franchise at any time 90 days before an interruption of service begins. (4) If FRANCHISEE holds title to the required equipment without encumbrance, then CITY shall pay FRANCHISEE a reasonable rent for possession and use of the equipment. These rental payments may be applied against any sums owed to CITY by FRANCHISEE after temporary possession and use end. (5) If another party holds title to or security interest in the required equipment, CITY shall pay that party whatever installment payments come due during the interruption of service in order to possess and use the equipment. To facilitate application of this provision, all contracts for equipment acquisition which FRANCHISEE enters into during the term of the franchise shall provide for temporary possession and use by CITY during an interruption of service without breach of contract or penalty so long as CITY makes specified payments within 15 days after they come due. (6) CITY shall pay disposal site fees required during temporary possession and use of FRANCHISEE's equipment and disposal site privileges. Z. CITY shall retain its rights to acquire FRANCHISEE's property by purchase or eminent domain as described in Article X, Section 1005 of the Charter of the City of San Luis Obispo. AA. FRANCHISEE shall maintain the following insurance coverage, naming CITY and its officials and its employees as insureds and providing that the insurance shall not be cancelled without 30 days notice to CITY: - comprehensive general liability with a $1,000,000 combined single Ordinance No. 1084 (1986 Series) Page 7 limit per occurrence for bodily injury, personal injury and property damage. - automobile liability with a $1,000,000 combined single limit per accident for bodily injury and property damage - workers' compensation with limits as required by the Labor Code of the State of California and employers liability with limits of $1,000,000 per accident. FRANCHISEE shall provide CITY evidence of the required insurance. BB. FRANCHISEE shall not transfer or assign its franchise without CITY's prior written approval. CC. FRANCHISEE may request an ordinary adjustment of solid waste collection and disposal rates not oftener than once every two years. FRANCHISEE must submit a request by February 28 in one year for two later adjustments: one on July 1 of the same year and one on July 1 of the following year. The request shall include the following information tabulated over five years (actual for the three previous calendar years and estimated for the current and following calendar years): - statement of assets and liabilities - statement of revenue and expense - statement of changes in working capital -rate of return on capital investment (with calculations) -ratio of operating expenses to operating revenue - "operating ratio" (with calculations) CITY may consider a request outside of the schedule stipulated in this paragraph upon demonstration by FRANCHISEE to the satisfaction of the Council of the City of San Luis Obispo that it has incurred extraordinary and consequential cost increases. Upon receiving a request CITY's city administrative officer may appoint an ad hoc technical advisory committee to evaluate the request and recommend council action. SECTION 2. A summary of this ordinance, approved by the city attorney, together with the ayes and noes, shall be published at least five (5) days prior to its final passage in the Telegram- Tribune, a newspaper published and circulated in said City, and the same shall go into effect at the expiration of thirty (30) days after its said final passage. A copy of the full text of this ordinance shall be on file in the office of the City Clerk on and after the date following introduction and passage to print and shall be available to any interested member of the public. Ordinance No. 1084 (1986 Series) Page 8 INTRODUCED AND PASSED TO PRINT Luis Obispo at a meeting held on the on motion of Councilman Settle and on the following roll call vote AYES: Counci.lmembers Settle, Raj NOES: None ABSENT: None by the Council of the City of San 2nd day of December 1986, m seconded by Counci woan a—ipa ipa, Dovey, Griffin and Mayor Dunin OR ATTEST: CITY CLERK PAMELA VO APPROVED: V CITY 9M�INITR TIVE FF ER CITY ATT NEY NANCE DIRECTOR PUBLIC WORKS DIRECTOR • ORDINANCE NO. 1084 (1986 Series) FINALLY PASSED this 16th day of December , 1986, . on motion of Councilwoman Rappa , seconded by Councilwoman Dovey , and on the following roll call vote: AYES: Councilmembers Rappa, Dovey, Griffin, Settle and Mayor Dunin NOES: None ABSENT: None 'Mayor Ron Dunin ATTEST: Ci y Clerk Pamela Vo s t� •