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HomeMy WebLinkAbout02/04/1997, C-4 - RESOLUTION OF INTENT TO GRANT SAN LUIS GARBAGE A FRANCHISE FOR SOLID WASTE COLLECTION AND DISPOSAL SERVICES Meeti�Date couml L February 4 1997 j acEnda RepoRt ��em Num6er CITY OF SAN LUIS 0BISSP0 FROM: John Moss, Utilities Director ' PREPARED BY: Ron Munds,Utilities Conservation Coordinatoz SUBJECT: Resolution of Intent to Grant San Luis Garbage a Franchise for Solid Waste Collection and Disposal Services CAO RECOMMENDATION Adopt a resolution declaring the City's intent to grant a franchise to San Luis Garbage for solid waste collection and disposal services, and set a public hearing for March 4, 1997 to introduce to print an ordinance to grant the franchise. DISCUSSION At the January 3, 1995 City Council meeting, Council directed staff to re-negotiate with San Luis Garbage Company to provide franchised solid waste collection and disposal services within the City. According to Chapter X of the City Charter, before granting any franchise, the City Council must first pass a resolution declaring its intention to grant the same. Additionally, the resolution must state the character of the franchise and the terms and conditions upon which it is proposed to be granted. A public hearing to pass an ordinance to grant the franchise must be set no less than twenty (20) days nor more than sixty (60)days after the passage. The attached resolution satisfies the requirements of the City Charter by providing the following information: ■ Type: Exclusive ■ Term: Maximum 15 year term* ■ Franchise fee: 6% of gross revenue ■ Agreement Highlights: • Semi-Annual clean-up weeks for single and multi-family properties • Flexibility to add or change solid waste collection programs • Periodic performance evaluations • . Performance incentives • Regulatory reporting requirements • Public education • CERCLA and Integrated Waste Management Act indemnification • Assignment of contract provisions *The term and negotiated operating ratio options will be presented to Council for consideration at the time of the first reading of the ordinance. FISCAL IMPACT There are no new fiscal impacts associated with this action. A base year solid waste rate review will be presented to Council in July 1997. RESOLUTION NO. (1997 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO DECLARING THE CITY'S INTENT TO GRANT AN EXCLUSIVE FRANCHISE TO SAN LUIS GARBAGE AND SETTING A PUBLIC HEARING FOR MARCH 4, 1997 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, it has been determined that an exclusive franchise granted to a private company is the most effective and efficient way to collect and remove solid waste with the City; and WHEREAS,the City has granted San Luis Garbage Company (Franchisee)an exclusive franchise for the collection and disposal of solid waste within the City; and WHEREAS,the Franchisee has provided solid waste services within the City for more than 45 years without interruption; and WHEREAS, at the January 3, 1995 the Council directed staff to re-negotiate a long tern franchise agreement the Franchisee; and WHEREAS, City staff and San Luis Garbage Company have now developed the franchise agreement for the City Council's consideration to provide these services. This agreement contains the following key provisions: ■ Type: Exclusive ■ Term: Maximum 15 year term ■ Franchise fee: 6% of gross revenue ■ Agreement Highlights: • Semi-Annual clean-up weeks for single and multi-family properties • Flexibility to add or change solid waste collection programs • Periodic performance evaluations • Performance incentives • Improved reporting • Public education • CERCLA and Integrated Waste Management Act indemnification • Assignment of contract provisions C- L1-2 NOW, THEREFORE, BE IT RESOLVED,that the City Council of the City of San Luis Obispo hereby declares: 1. A public hearing will be held on March 4, 1997 at 7 pm in City/County Library community Room at which time it is the intention of the City Council to grant up to a maximum 15 year franchise to San Luis Garbage Company. 2. Any persons having any interest in the franchise or any objection to the granting of the franchise may appear before the Council and be heard thereon. 3. The City Clerk will publish this resolution at least once within fifteen days of its passage in a newspaper in the City of San Luis Obispo. Upon motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted this day of 1997. Mayor Allen Settle ATTEST: City Clerk APPROVED AS TO FORM: Wme C 3