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HomeMy WebLinkAbout1177_1 r� ORDINANCE NO. 1177 (1990 SERIES) AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO MODIFYING A FRANCHISE GRANTED TO SAN LUIS GARBAGE COMPANY FOR COLLECTING AND DISPOSING OF 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 ( "the 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 the City; and WHEREAS, the City has granted San Luis Garbage Company ( "the Franchisee ") an exclusive franchise for the collection and disposal of solid waste within the San Luis Obispo city limits; and WHEREAS, the Franchisee has provided solid waste collection and disposal service within the City for more than 40 years without interruption; and WHEREAS, during public comment periods concerning solid waste collection and disposal, most respondents have expressed a high level of satisfaction with the service provided by the Franchisee; and WHEREAS, continuing the franchise held by the Franchisee would ensure the continuation of effective and efficient solid waste collection and disposal service; and WHEREAS, the City wants to improve and expand various recycling services in San Luis Obispo by implementing the recommendations of its adopted Recycling Improvement Plan; and WHEREAS, the City has determined that the Franchisee can provide needed recycling services quickly and efficiently; BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. The exclusive franchise granted to the Franchisee for the collection and disposal of solid waste shall continue subject to the following amended terms and conditions: A. The franchise shall begin on March 1, 1987 and shall end on June 30, 1997. B. The Franchisee shall comply with all pertinent provisions of the Charter of the City of San Luis Obispo, and all n 1 1 � 7 ordinance No. 1177 Page 2 (1990 Series) pertinent ordinances and resolutions of the City of San Luis Obispo. The 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 collection and disposal and the City's right to set rates. The City reserves the right to revise any of its laws and regulations pertaining to solid waste collection and disposal in order to protect public health, safety and welfare. The Franchisee shall comply with all existing and future county, state and federal laws and regulations. C. The Franchisee shall acquire and maintain for the full term of the franchise registration to haul hazardous waste to a certified disposal site. D. The Franchisee shall pay the City six 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. The 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 the City or a customer, the Franchisee shall collect any solid waste which the Franchisee may have failed to collect at the regularly scheduled time. G. If the Franchisee cannot collect an article of solid waste because it is too heavy, too large or incorrectly packaged, the Franchisee shall attach a tag explaining why that article could not be collected. H. The Franchisee shall ensure that while on duty each collection worker wears a clean uniform with conspicuous insignia displaying the Franchisee's company name and the worker's name or identification number. I. The 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. The Franchisee shall contract with the operator of a disposal site to provide a place for City customers to dispose of solid waste from 8:00 a.m. to 3:00 p.m. each day of the week. K. Twice each year, during two months designated by the City, the Franchisee shall conduct a "residential cleanup week" r Ordinance N0.1177 (1990 Series) Page 4 income statements. If the Franchisee willfully and persistently fails to collect recyclable materials the City shall notify the Franchisee in writing of the failure. If the Franchisee does not correct the failure within 20 days after receiving notice, the City may by resolution of the city council terminate any provisions of this paragraph and award a franchise or contract to another organization for collection of recyclable materials. If implementing long -term solid waste planning requires reorganization of recycling activities within the City, the City may by resolution of the city council modify or terminate any provisions of this paragraph. Nothing in this ordinance shall preclude any organization from collecting recyclable materials from commercial or multi -unit residential customers within the City. Nothing in this ordinance shall preclude the City from awarding franchises or contracts to other organizations for collection of recyclable materials from commercial or multi -unit residential customers within the City. M. If waste -to- energy facilities become feasible in San Luis Obispo County during the term of the franchise, the Franchisee shall cooperate with the agencies and enterprises involved in order to recover potentially valuable resources and reduce waste deposited at landfills. N. The solid waste franchise shall automatically extend to any area annexed to the City, except that the 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 the City, the Franchisee shall promptly extend routes and service and, if necessary, hire additional workers and obtain additional equipment. O. The 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. The Franchisee shall staff this office from 8:00 a.m. to 5:00 p.m. Monday through Friday except legal holidays observed by the City. P. The Franchisee shall prepare and keep current a flier acceptable to the City which summarizes solid waste regulations, fees, telephone numbers and other pertinent information. The Franchisee shall print whatever copies of this flier are needed. The Franchisee shall distribute copies of this flier to all new Ordinance No. 1177 (1990 Series) Page 3 and collect additional solid waste from residential customers within the City during regularly scheduled service at no additional charge to those customers. The 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 set out without prior arrangement with the Franchisee. L. The Franchisee, as the City's authorized recycling agent, shall collect for recycling the following materials from single - family residential customers once each week: • newspapers • aluminum cans with California redemption value • glass bottles and jars • plastic beverage containers with California redemption value To encourage separation of recyclable materials, the Franchisee shall distribute distinctive bins to all single- family residential customers and to any multi -unit residential and commercial customers who request them. After receiving permits for its Tank Farm Road recycling yard from the County of San Luis Obispo, the Franchisee shall collect for recycling the following materials from commercial customers: • newspapers • aluminum cans with California redemption value • glass bottles and jars • plastic beverage containers with California redemption value • cardboard • office paper Beginning January 1, 1991, the Franchisee shall submit quarterly reports of its recycling activities, including levels of participation, amounts of waste diverted from the landfill, and Ordinance No. 1177 (1990 Series) Page 5 customers and shall annually mail copies of this flier to all of its current customers. Q. The 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 the City has requested such inspection with reasonable notice. R. In its accounting records, the Franchisee shall discreetly maintain and clearly identify all items of revenue and expense pertaining to the City's franchised operations. The Franchisee shall allow City officials to inspect these records during the required office staffing hours after the City has requested such inspection with reasonable written notice. The Franchisee shall allow the City to audit these records for the purpose of preparing financial statements certified -to reflect generally accepted accounting principles. S. The City's public works director shall administer the solid waste franchise and supervise the Franchisee's compliance with the franchise terms and conditions. If a disagreement arises between the Franchisee and a customer, the City's public works director shall conduct an investigation, decide the matter and give due notice and documentation of that decision. T. The Franchisee shall continue to collect and dispose of solid waste throughout the term of its franchise without interruption. U. The 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. V. If the Franchisee willfully and persistently fails to perform according to the franchise terms and conditions, the City shall notify the Franchisee in writing of the failure. If the Franchisee does not correct the failure within 20 days after receiving notice, the City may by resolution of the city council terminate the franchise. W. If there is an interruption of service, the City shall be entitled to temporarily possess and use the Franchisee's equipment and disposal site privileges in order to continue service. When this temporary possession and use begins, the City shall promptly notify in writing the Franchisee and any holders of contracts on the equipment. When this temporary possession Ordinance No. 1177 (1990 Series) Page 6 and use end, the City shall notify in writing the Franchisee and any holders of contracts on the equipment. If the Franchisee fails to take possession of the equipment within 15 days after notification that the temporary possession and use has ended, the Franchisee shall in effect have abandoned the equipment and waived all interest in the equipment, and the City shall be free to use and dispose of the equipment without liability or compensation to the Franchisee. (1) Throughout paragraph W "interruption of service" shall mean (a) any period during which the Franchisee's operations are diminished or discontinued by circumstances beyond its control or (b) any period after the City has terminated the franchise and until the City can reasonably acquire other suitable equipment. (2) Throughout paragraph W "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 W "equipment" shall mean all vehicles and equipment used by the Franchisee to perform the services specified in the franchise at any time 90 days before an interruption of service begins. (4) If the Franchisee holds title to the required equipment without encumbrance, then the City shall pay the Franchisee a reasonable rent for possession and use of the equipment. These rental payments may be applied against any sums owed to the City by the Franchisee after temporary possession and use end. (5) If another party holds title to or security interest in the required equipment, the 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 the Franchisee enters into during the term of the franchise shall provide for temporary possession and use by the City during an interruption of service without breach of contract or penalty so long as the City makes specified payments within 15 days after they come due. (6) The City shall pay disposal site fees required during temporary possession and use of the Franchisee's equipment and disposal site privileges. B. The City shall retain its rights to acquire the Ordinance No. 1177 (1990 Series) Page 8 the request and recommend council action. SECTION 2. Ordinance No. 1084 (1986 Series) is rescinded. SECTION 3. Resolution No. 3223 (1977 Series) is rescinded. SECTION 4. A summary of this ordinance, approved by the city attorney, together with the ayes and noes, shall be published at least five days before its final passage in the Telegram- Tribune, a newspaper published and circulated in the City, and this ordinance shall go into effect at the expiration of thirty days after its final passage. A copy of the full text of this ordinance shall be on file in the city clerk's office on and after the date following introduction to print and shall be available to the public. INTRODUCED TO PRINT by the meeting held on August 7, 1990, Councilman Roalman , San Luis Obispo city council at a on motion of seconded by Councilwoman Rapp.a , and on the following roll call vote: AYES: Councilmembers Roalman, Rappa, Pinard, and Mayor Dunin NOES: None ABSENT: Councilman Reiss 04104YER RON DUNIN ATTES • CITY VLERK PAMELA GES APPROVED: CITY AD INISTRATIVE OFFICER IT TT E DIRECTOR OF FINANCE CD:z � PUBLIC WORKS DIRECTOR RD . r Ordinance No. 1177 (1990 Series) Page 7 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. Y. The Franchisee shall maintain the following insurance coverage, naming the City and its officials and its employees as insureds and providing that the insurance shall not be cancelled without 30 days notice to the City: • comprehensive general liability with a $1,000,000 combined single 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. The Franchisee shall provide the City evidence of the required insurance. 2. The Franchisee shall not transfer or assign its franchise without the City's prior written approval. AA. The Franchisee may request an ordinary adjustment of solid waste collection and disposal rates not oftener than once every two years. The 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) The City may consider a request outside of the schedule stipulated in this paragraph upon demonstration by the Franchisee to the satisfaction of the city council that it has incurred extraordinary and consequential cost increases. Upon receiving a request, the City's city administrative officer may appoint an ad hoc technical advisory committee to evaluate , � l Ordinance No. 1177 (1990 Series) FINALLY PASSED this 21st _ day of — August 19 9Q on motion of Councilman Roalman Councilwoman Pinard vote: AYES: NOES: ABSENT: seconded by and on the following roll call Councilmembers Roalman, Pinard, Reiss and 'Mayor Ron Dunin None Councilwoman Rappa 4 Ron Dunin ATTEST: - -- L)IA City C Voges 0