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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"
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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 .
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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