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Home My WebLink About01/03/1995, 3 - SOLID WASTE FRANCHISE RENEWAL�I� ^lu'1^I�IIII A MEETING DA Illpl �� °�u'� III city of San LUGS OBISpo - S TEM COUNCIL AGENDA REPORT -we NUMBER: FROM: John Moss, Utilities Director i Prepared by: Cyndi Butterfield, Solid Waste Coordinator SUBJECT: Solid Waste Franchise Renewal CAO RECOMM]MATION: By motion, direct staff to begin negotiation of terms for franchise renewal with San Luis Garbage Company. DISCUSSION The current Solid Waste franchise covers a 10 year period which ends in June 1997. San Luis Garbage Co. has submitted a request to begin franchise renewal negotiations. The Municipal Code Section 1003 states that a franchise can be renewed during the 3 years before it expires. Staff is supportive of this request from San Luis Garbage Company and is seeldng Council direction to begin negotiations of a new franchise agreement. Based on recommendations made by the consultant team from Ernst and Young and on needed modifications identified by Utilities staff, a draft update of the existing franchise was developed. Changes in the draft include: • Additions to protect the City from exposure to superfund liability • Sections to ensure flexibility to address upcoming recycling program needs • Strengthened reporting requirements and procedures • Improved performance reviews • The inclusion of the rate setting manual as a standard for rate increase requests. Many of these identified modifications are beyond the scope of an update of the existing franchise which would have to adhere to many of the existing terms. A renewal at this time would benefit the City since it would provide an opportunity to rewrite and renegotiate the entire agreement to meet current needs. Since the Garbage Company is initiating the renewal process due to their own specific and essential needs, the City can use this as a leveraging opportunity to bargain for comprehensive beneficial changes in a new long term agreement. Also, a renewal with the existing vendor would ensure the continuation of high quality, consistent service with rates that compare favorably with rates in other cities in the state. Renewal is also consistent with the City's goals to support local economic health through locally owned businesses. In addition to the changes identified above, staff goals include: • Development of a franchise that adheres to Council goals • A long term franchise to ensure continuation of collection and disposal services • Maximization of recycling services • Worldng toward recycling paying for itself 9 -1 city of San LUIS OBI Spo COUNCIL AGENDA REPORT Solid Waste Franchise Renewal Page 2 The success of a renegotiated franchise could affect the long term viability of our landfill resources. San Luis Garbage Company currently hauls solid waste collected in the City to Cold Canyon landfill. Construction of the landfill expansion is due to begin January 1, 1996. The landfill owners are targeting December 1995 to have their construction financing in place. In order to provide security for the lenders, the landfill owners need to show franchise agreements for the various haulers that use the landfill that extend through the life of the loan. The maximum maturity of the loan cannot exceed the term of the franchises held by the haulers that use the landfill. The landfill is a resource. Communities south of cuesta grade are dependent upon the expansion of the Cold Canyon landfill to secure nearby landfill space for the 15 year AB 939 planning period. The closest landfill space aside from Cold Canyon is Chicago Grade outside of Atascadero and Paso Robles landfill east of Paso Robles. Continued use and expansion of existing landfills, in lieu of creating new landfills, is a goal that greatly benefits all county residents and the environment. SUMMARY In adherence to the Municipal Code, San Luis Garbage has requested a franchise renewal prior to the end of the existing franchise in 1997. Staff find significant advantages to the City in developing a new franchise at this time that would encompass current solid waste needs. San Luis Garbage Company provides high quality, reliable service with rates that compare favorably with other cities in the state. They are a locally owned company. Local companies keep money cycling in our community. Renegotiation of a franchise agreement with San Luis Garbage Company is consistent with our goals for local economic enhancement, provision of high quality services to our citizens, and may serve to ensure maximum utilization of our landfill resources. FISCAL IMPACT There is no fiscal impact to the recommended action. P- AI 1 Direct staff to solicit proposals for Garbage franchise services from other haulers. For the reasons outlined in this report ' there are significant advantages to the City in renewal of an agreement with San Luis Garbage Company. Staff see no significant advantage to seeking proposals from other haulers. 3 - a• Y' J In The Superior Court of The State of California In and for the County of San Luis Obispo No. d.v1- 62763 -0 -6 City of SLO STATE OF CALIFORNIA, ss. County of San Luis Obispo AFFIDAVIT OF PUBLICATION I am a citizen of the United States and a resident of the County aforesmd; I am over the age of eighteen and not interested in the above - entitled matter I am now, and at all times embraced in the publication herein mention was, the principal clerk of the printers and publishers of the SAN LUIS OBISPO COUNTY TELEGRAM- TRIBUNE, a newspaper of general circulation, printed and published daily, Sundays ex- cepted, at the City of San Luis Obispo in the above named county and state; that notice at which the annexed clipping is a true printed copy, was published in the above -named newspaper and not in any supplement thereof — on the following dotes, to -wit: December 29 that said newspaper was duly and regularly ascertained and established a newspaper of general circulation by Decree entered in the Superior Court of San Luis Obispo County, State of California, on June 9, 1952, Case #19139 under the provisions of Chapter 1, Division 7, Title of the Government Code of the State of California. I certify (or declare) under penalty of perjury that the foregoing is true and correct. (Signature of Principal Clerk) Date December 29 19 _94 vwMITAMIRJi city of MWMaA san luis oBlspo' CITY COUNCIL PUBLIC NEARING On Tuesday, January 3,' 1995, the San Luis Obispo City Council will hold a public hearing to consider making minor corrections to the 1994 Uniform Building Code Fee Schedule as recommended, by the International Confer- ence of Building Officials (ICSO). The changes recom- mended by the ICBO will have no material impact on building permit fees. The meeting will begin at 7:00 p.m. in the Council Chambers of City Hall, 990 Palm Street. The report will be available for review In the City Clerk's Department on the Wednes- day before the meeting. For more Information, please call 781 -7103. The Council may also dis- cuss other hearings or busi- ness items before or after this Item. If you challenge the proposed action described above in court, you may be limited to raising only those Issues you or someone else raised at the public hearing described In this notice, or in written correspondence deliv- ered to the City Council at, or prior to, the public hearing. CITY OF SAN LUIS OBISPO Diane R. Gledwell, City Clerk Dec.29.1994 dvUM In The Superior Court of The State of California No. dv1- 62427 -9 -3 Ci. *_v of SLQ STATE OF CALIFORNIA, In and for the County of San Luis Obispo ss. AFFIDAVIT OF PUBLICATION County of San Luis Obispo I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen and not interested in the above - entitled matter ; I am now, and at all times embraced in the publication herein mention was, the principal clerk of the printers and publishers of the SAN LUIS OBISPO COUNTY TELEGRAM- TRIBUNE, a newspaper of general circulation, printed and published daily, Sundays ex- cepted, at the City of San Luis Obispo in the above named county and state; that notice at which the annexed clipping is a true printed copy, was published in the above -named newspaper and not in any supplement thereof — on the following dates, to -wit: December 24 that said newspaper was duly and regularly ascertained and established a newspaper of general circulation by Decree entered in the Superior Court of San Luis Obispo County, State of California, on June 9, 1952, Case #19139 under the provisions of Chapter 1, Division 7, Title of the Government Code of the State of California. I certify (or declare) under penalty of perjury that the foregoing is true and correct. �� rr (Signature of Principal Clerk) Date DP_cemlior 24 19 9t1 nnitltln)al�;ill city of san lugs osispo CITY COUNCIL PUBLIC HEARINGS On Tuesday, January 3, 1995, the San Luis Obispo City Council will hold a public hearing to consider making minor corrections to the 1994 Uniform Building Code Fee Schedule as recommended by the International Confer. ence of Building Officials (ICBO). The changes recom- mended by the ICBO will have no material impact on building permit fees. .The meeting will begin at 7:00 p.m. in the Council Chambers of City Hall, 990 Palm Street. The report will be available for review in the City Clerk's Department on the Wednes- day before the meeting. For more Information, please call 781 -7103. The Council may also dis- cuss other hearings or busi- ness items before or after those listed. If you challenge any one of the proposed actions described below in court, you may be limited to raising only thoselissues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to, the public hearing. CITY OF SAN LUIS OBISPO Diane R. Gladwell, City Clerk Dec 24,19% dv62427