HomeMy WebLinkAbout03/04/1997, 2 - ORDINANCE GRANTING A SOLID WASTE COLLECTION AND DISPOSAL FRANCHISE TO SAN LUIS GARBAGE COMPANY. council March 4 2t-
CITY
997
aGEnaa uEpo�t_ . �N� -
C I T Y OF SAN LUIS OBISPO
FROM: John Moss,Utilities Director ��,,,,n�
Prepared By: Ron Munds,Utilities Conservation CoordinatodJv
SUBJECT: Ordinance Granting a Solid Waste Collection and Disposal
Franchise to San Luis Garbage Company.
CAO RECOMMENDATION
1) Introduce to print an ordinance granting a fifteen year franchise for solid waste collection and
disposal services to San Luis Garbage Company.
2) Direct San Luis Garbage Company to collect waste from downtown trash cans and park bins
for$36,000 per year as summarized in Alternative 2.
REPORT-IN-BRIEF
At the January 3, 1995 City Council meeting,Council directed staff to re-negotiate a long term
franchise agreement for solid waste collection and disposal services with San Luis Garbage
Company. Through work with a consultant and San Luis Garbage Company, staff has developed
the attached franchise agreement(Exhibitl). Key provisions of the agreement are: 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.
Historically,the City has entered into ten year agreements for the collection and disposal of solid
waste. A fifteen year franchise is being recommended which will result in a net savings to rate
payer of approximately $42,000 per year. Additionally, staff is recommending as an option that
San Luis Garbage Company assume the collection and disposal of downtown trash cans and park
bins for a cost of$36,000 per year.
DISCUSSION
Background
At the January 3, 1995 City Council meeting,Council directed staff to re-negotiate a long term
franchise agreement for solid waste collection and disposal services with San Luis Garbage
Company. As part of the franchise development process,Council authorized staff to solicit
proposals for franchise development and legal services. Hilton,Farnkopf and Hobson was selected
to assist staff with the development of the agreement.
The City's solid waste management policies and procedures have evolved significantly over the last
three years. In 1994,the Council adopted the Rate Setting Manual for Integrated Solid Waste
Management Rates which provides an in depth process for determining objective rates for solid
waste services. This was the first step in a process to bring the City up to date in the area of solid
waste management. In 1996 the City developed and executed separate contracts for residential
recycling and green waste collection. These contracts are for five years with the option to extend
for two additional years. The new franchise agreement represents the culmination of this portion of
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Council Agenda Report-Solid Waste Franchise Agreement
Page 2
the updating process and a major step forward in defining liabilities and performance of the
franchisee and providing the City with a legally defensible agreement.
Franchise Agreement Provision Review
Attachment 1 is the agreement the City is currently operating under with San Luis Garbage
Company. Though it has served its purpose through the term of the franchise,the new agreement
presented in Exhibit 1 is far superior in defining several service,liability and operating issues. The
following is a summary of the new franchise agreement by corresponding Article number:
Article 1. Definitions
This sections defines the terms used in the agreement to provide accurate meaning to the provisions
in the contract.
Article Z Representation and Warranties of the Franchisee
This section outlines the required legal status of the franchisee in regards to transacting business for
the City. Additionally,the section contains the certification requirements of the franchisee in
regards to its ability to comply to all applicable laws and financially perform the services.
Article 3. Term ofAgreement
This section explains the effective date and length of the agreement.
Article 4.Scope of Agreement
This section explains what the franchisee can and cannot exclusively collect. A key provision of
this section is eliminating the City as an arranger for the collection and disposal of solid waste
within the meaning of the Comprehensive Environmental Response,Compensation and Liability
Act(CERCLA). Additionally,the franchisee assumes ownership of the solid waste once it is
placed in containers and properly presented for collection. This is done in an effort to limit the
City's liability in the event there is a contamination problem at the landfill where City solid waste is
disposed.
Article S Direct Services
This section outlines the work to be provided by the franchisee for residential, commercial and
public facilities solid waste collection and the handling of hazardous waste. Key provisions of this
section are the inclusion on multi-family properties in the semi-annual clean-up weeks and
provisions to add new programs or change existing programs with a complete proposal to account
for program implementation and cost at the time the program change is approved. Additionally,
this section provides the City with ability to direct portions of the waste stream if future conditions
in solid waste management require such action.
Article 6. Collection Service Standards
The majority of this section deals with operational issues such as vehicle capacity,number and
condition of vehicles, container requirements,personnel and service complaints logging and
resolution. A key provision of this section is the ability of the City to request a performance audit
and hold a public hearing to review the franchisee service and performance.
Council Agenda Report-Solid Waste Franchise Agreement
Page 3
Article 7 Other Services•Billing Reporting Record%ening and Public Education
Key to this section is the enhanced regulatory reporting requirements to insure timely submittal to
the City of progress towards meeting the Integrated Waste Management Act(AB 939)solid waste
reduction goals and the cooperative public information program which takes advantage of multiple
opportunities to educate the public in regards to solid waste issues. Other section provisions
explain the billing procedures,payment responsibilities and record keeping requirements which
includes the City's right to audit those records.
Article 8.Payments to City
This section outlines the franchisee's franchise fee amount and method of payment. Additionally,
this Article provides for the option of adding an AB 939 fee to recover costs associated with City's
implementation of solid waste programs. Staff is currently evaluating the addition of an AB 939
fee and its potential for cost recovery for solid waste programs as part of the rate setting process for
implementation in January of 1998. During the rate review, staff will present a full analysis to
Council for their consideration.
Article 9.Service Rates and Review
This section spells out how and when the franchisee will be compensated for collection services
and how the solid waste rate is determined for that service.
Article 10 Indemnity Insurance and Performance Bond
This section covers the insurance and performance bond requirement required of the franchisee.
The performance bond requirement has been substantially increased from the current level of
$50,000 to$500,000 to more accurately reflect the cost to the City if the franchisee is not able for
any reason to perform the services required under this agreement. This represents a net increase of
approximately$14,000 per year to the solid waste rate base for the additional performance bond
requirement. A key provision of this section is the indemnification requirements to hold harmless
the City in terms of CERCLA,the Integrated Waste Management Act(AB 939)and other general
liability claims related to providing service under this agreement.
Article 11. City's Right to Perform Service
This section provides the City the right,under specified conditions and noticing,to perform or
cause to be performed solid waste collection and disposal services if for any reason the franchisee
fails,refuses or is unable to perform the services required by this agreement.
Article 12. Default and Remedies
This section defines what constitutes a default to the provisions of the agreement and the actions
available to the City relative to the termination of the contract. Additionally,a key provision of this
section is the ability of the City to levy liquidated damages for not meeting performance standards
relating to quality and reliability of service,responsiveness to customers and the timeliness of
submission of reports.
Article 13.Assignment
This section contains explicit assignment provisions and criteria which enables the City to approve
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Council Agenda Report-Solid Waste Franchise Agreement
Page 4 -pix, .. ;, .
or disapprove any assignment of the contract. Additionally,if an assignment occurs,provisions
have been included which will protect the customer rate base from rate increases as a result of the
assignment and the new franchisee's operations.
Article l4.Agreements ojthe Parties
This section pontains.27 provisions which could be termed miscellaneous to the agreement. Terms
covered range from subcontracting to non-discrimination.
Contract Term
For the past forty.years the City has entered into ten Y=agreements with San Luis Garbage
Company for refuse service. Staff is recommending a fifteen year term for this agreement for the
following reasons:
1. The operating ratio savings to the rate base and ultimately the rate payer of approxi bately
$42,000 per year(the operating natio will be discussed further in the Fiscal Impact section).
2. The past relationship with San Luis Garbage Company.
3. Past and current excellent level of service and performance provided by San Luis Garbage
Company.
In recommending a fifteen year term for the agreement, it is recognized that by extending the
contract period there is the potential for San Luis Garbage Company to sell the business. Staff has
included explicit assignment provisions which will protect the City's interest now and into the
future if this were to occur as noted in Article 13.
A survey of length of solid waste franchise agreement in communities outside the county indicated
a range from seven to ten years. One community surveyed used an evergreen contract which
automatically rolls over the five term of the agreement unless a council action initiates the final
term(five years). Locally,the south county cities are currently negotiating eight year agreements
while Morro Bay recently agreed to a 10 year contract and Atascadero a ten year evergreen
agreement.
CONCURRENCES
The Finance and Public Works Departments concur with the information and recommendations in
this report.
FISCAL EMPACT
Approval of this request will grant a franchise to San Luis Garbage for solid waste collection
services. The projected annual cost of this franchise is $5.5 million. Over the recommended 15
year term,this amounts to about$82.5 million.
The City receives franchise fees,based on six percent of the hauler's gross cash receipts for
customers within the city limits. This is about$218,000 annually (1997 dollars).
Operating Ratio
San Luis Garbage Company is willing to reduce its annual profit in return for a longer term.
Under the recommended term of 15 years,the operating ratio would be modified from the current .
level of 92%to 93%of allowable costs. In dollars,this one percent change to the operating ratio
is equivalent to a reduction of about$42,000 a year in profit.
of—A1
Council Agenda Report-Solid Waste Franchise Agreement
Page 5
How does operating ratio relate to profit? The operating ratio establishes revenue requirements
based on allowable costs. The equation for the operating profit is:
Step 1.
Allowable costs
Divided by Operating Ratio
Equals Allowable Revenues
rt
Step 2.
Allowable Revenues
Minus Allowable Costs
Equals Allowable operating profit
Therefore,the operating ratio effectively determines profit.
It is important to remember that profit is not allowed on a certain type of costs ("pass-through"
costs) such as tipping fees and regulatory charges. Also, some costs are not allowed in the rate
model, at all. Examples of these types of costs are income taxes, charitable and political
contributions and entertainment expenses. Costs such as these, if incurred,must be paid for
through other means, such as"profit".
Current operating ratio standard. In the first base year, which was 1995,the operating ratio was
set at 92 percent. In successive base years (every third year)the operating ratio could range from
90 to 94 percent,to stabilize rate adjustments and offer an incentive to reduce costs. In any
succeeding base year, if the company earns an operating ratio outside this range,then 92 percent
would be re-established.
Proposed operating ratio standard. In the base year of 1998,the operating ratio will be set at 93
percent. In the succeeding base years (every third year),the operating ratio would range from 92
to 94 percent. In any succeeding base year, if the company earned an operating ratio outside this
range,the 93 percent would be re-established.
The table below compares present and proposed operating ratios:
CurrentlRecommended Operating Ratios
Operating Effective Annual Est Approved Range
Ratio Profit Profit in Successive
Percentage (1997 dollars) Base Years
Current o 3 , o - o
ecomme e o o o- o
Alternative 1-Ten Year Franchise Agreement
If Council determines that a fifteen year franchise is not feasible,a ten year agreement would be
recommended. This would be consistent with past practices and allow for continuity in
providing solid waste service to the City. Under a 10 year franchise scenario the City would
retain the current 92%operating ratio with a 2 percentage point swing.
Alternative 2- Option for Collection of Public Waste in the Downtown and Parks
During the development of the franchise agreement, the issue regarding the collection of
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Council Agenda Report-Solid Waste Franchise Agreement
Page 6
downtown waste containers and park bins was discussed. Public Works Department now picks
up and disposes of waste from garbage cans in the downtown and the parks on weekdays and
occasionally on Sunday if needed. At the same time San Luis Garbage Company picks up waste
from dumpsters in some parks once a week. For$36,000 of additional recognized franchise cost
each year San Luis Garbage Company has offered to pick up waste from downtown garbage cans
six days each week and from larger dumpsters (to be located in all parks)twice a week. This
arrangement would require park maintenance workers to empty park cans into dumpsters.
A field worker currently picks up waste from downtown and park cans using a 1-ton trash
compactor truck. He then hauls this waste to the trash transfer station at the Corporation Yard
and dumps it into a dropbox, which is also used for that facility's waste. Four days a week a
maintenance worker hauls this dropbox to the landfill with a dropbox truck. Public Works
estimates that waste from downtown and park cans totals about 400 tons per year and that this
amount accounts for three quarters of the annual dropbox tonnage. Annual costs for picking up
and disposing of waste from downtown and park cans are shown in the following table:
Field Worker Labor- 1,000 hours @ $7.30/hour $7,300
Maintenance Worker Labor- 312 hours @ $25.89/hour* 8,100
Amortization of Compactor Truck- $47,500 cost/17 years 2,800
Fuel for Compactor Truck 1,000
Fuel for Dropbox Truck 400
Landfill Tipping Fees- 400 tons @$40.00/ton 16,000
Collection Fees for Park Dumpsters 1,800
* This cost is not avoidable. All other costs could be eliminated if San Luis
Garbage Company picked up waste from the downtown and parks.
Public Works recommends having San Luis Garbage Company pick up waste from downtown
cans and park dumpsters and adding this cost to eligible franchise costs. This arrangement would
allow Public Works to save up to $29,300 each year and redirect labor to improve other
maintenance activities. One critical task not assignable to San Luis Garbage Company would be
cleaning and sanitizing the decorative containers which cover the downtown and park cans.
Currently the field worker which picks up waste from the downtown and park cans also cleans
and sanitizes the downtown cans. Park maintenance workers now clean and sanitize the park
cans. Public Works would have to decide the best way to continue this work.
ATTACHMENTS
Attachment 1- Ordinance#1177,current enabling ordinance
Attachment 2- Solid Waste Granting Ordinance
Exhibit 1- Solid Waste Franchise Agreement. The agreement is available for Council and
public review through the City Clerk's Office.
ORDINANCE NO. 1177 (1990 SERIES)
AN ORDINANCE OF THE CITY OF SAN LIIIS OBISPO
MODIFYING A FRANCHISE GRANTED TO SAN LIIIS 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 I. 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
0 1177
Ordinance No. 1177 (1990 Series)
Page 2
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.
P. 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.
Q. 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.
H. Twice each year, during two months designated by the
City, the Franchisee shall conduct a "residential cleanup week"
J
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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
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Ordinance No. 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
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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.
A. 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.
X. The City shall retain its rights to acquire the
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 $11000, 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.
Z. 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
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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 San Luis Obispo city council at a
meeting held on August 7, 1990, on motion of
Councilman Roalman , seconded by
Councilwoman Rappa , and on the following roll call
vote:
AYES: Councilmembers Roalman Ra
ppa, Pinard, and Mayor Dunin
NOES: None
ABSENT: Councilman Reiss
J
YOR RON D N
ATTES
CITY VLERX PAMELA GES
APPROVED:
CITY AD NISTRATIVE OFFICER DIRMTOR OF FINANCE
IT TT NE PUBLIC WORKS DIRECTOR
Ordinance No. 1177 (1990 Series)
FINALLY PASSED this 21st day of August
19 9Q on motion of Councilman Roalman seconded by
Councilwoman Pinard and on the following roll call
vote:
AYES: Councilmembers Roalman, Pinard, Reiss and Mayor Ron Dunin
NOES: None
ABSENT: Councilwoman Rappa
ayor Ron Dunin
ATTEST:
City C erk Pam Voges/
Attachment 2
ORDINANCE NO. (1997 SERIES)
AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO
GRANTING A FIFTEEN YEAR FRANCHISE TO SAN LUIS GARBAGE
COMPANY FOR COLLECTING,PROCESSING 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 with the City of San Luis Obispo(City);and
WHEREAS, the City has 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 current franchisee, San Luis Garbage Company, has provided solid waste
collection and disposal service within the City for more than 45 years without interruption; and
WHEREAS,continuing the franchise held by San Luis Garbage Company would ensure the
continuation of effective and efficient solid waste collection,processing and disposal service;
BE IT ORDAINED by the City Council of the City of San Luis Obispo as follows:
SECTION 1. An exclusive franchise shall be granted San Luis Garbage Company for
services to collect, process and dispose of solid waste subject to the terms and conditions presented
in Exhibit 1, Solid Waste Franchise Agreement.
SECTION 2. Ordinance No. 1177 (1990 Series)shall be repealed upon the effective date of
this ordinance.
SECTION 3. A synopsis of this ordinance,approved by the City Attorney, together with the
names of the Council Member voting for and against, shall be published at least five days prior to
its final passage, in the Telegram-Tribune, a newspaper published and circulated in this City. This
ordinance shall go into effect at the expiration of thirty(30)days after its final passage.
INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis Obispo
at a meeting held on the day of on motion of
,
the following roll call vote: seconded by and on
AYES:
NOES:
ABSENT:
ATTEST-
City Clerk —- — — Mayor Allen Settle
APPROVED AS TO FORM:
ty me
3. SIGN.REGULATIONS.UPDATE. (JONAS%424 2 min.)
.Public hearing to consider revisions to the City's sign regulations.
0 RECOMMENDATION: This item continued to a date yet to be
determined.
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MAR-04-1997 16:30 FROM CITY OF PISMO BERCH TO SLO CITY P.01
City of B_. o Beach
760 Mattie Road-Post Office Box 3
Pis=Anch,CaUbmia93448EPSIN AGENDA
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Mareh 4, 1997 -
TO: Mayors, San Luis Obispo Cities
City Managers, San Luis Obispo Cities
FROM: John Brown, Mayor
City Of PiSMO Beach
BE: Joint San Luis Obispo Cities Meeting
ACTION: Please respond by Tuesday, Mareh 11
1. Is the evening of Thursday, May 1, 18879 aeeeptable
to your City as the date for the next joint San Luis
Obispo Cities meeting?
2. Suggested agenda litems?
Respond by Friday,March 14 to Jeri Young,Pismo Beach City Manager's Secretary
By Phone 773-4657
By FAX 773-7006
MEETING
AGENDA C C_.
LT-JL ITEM #
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Housing Authority 487 Leff Street Po ice Box 1289 San Luis Obispo CA 93406-1289
of the City of (805) 543-4478 fax
San Luis Obispo ( �:. 92
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February 28, 1997. uti a Director-Secretary
Nl? n Moylan
Mayor Allen K. Settle
Members of the City Council
City of San Luis Obispo alrj t`
990 Palm Street
..San Luis Obispo, CA 93401
Dear Mayor Settle and Members of the City Council:
In my position I consider myself an advocate for low and moderate
income residents of our community. From that perspective your
staff's recommended use of this year's available Community
Development Block Grant and HOME Program funding contain several
questionable expenditures .
While I may address the Council at it's meetings of March 4 and
following: please permit me to make written comments on the
Street Drainage Improvements
This proposed expenditure mystifies me as on page 1-3 of staff's
memo to you Council Goals and Priorities are discussed. Nowhere
within those goals is a public works project which should be paid
for out of general fund financing mentioned. Moreover when staff
was asked as to the three proposed work locations only one, Branch
and Hutton, was in .a neighborhood which I would characterize as a
low and moderate income neighborhood.
The other two are both in the vicinity of CalPoly in neighborhoods
which the Census might describe as low and moderate income because
students generally meet appropriate income limits. Although most
of them probably come from middle to upper income families.
But the broader. question here is shouldn't low and moderate income
individuals and families be entitled to the same basic services
that the rest of the residents of the community are entitled to?
Why should this type of work be charged to a Federal set-aside of
funds which is suppose to make them more productive members of our
community through the provision of services that are not normally
provided by the community?
Revolvina Loan Fund
The issue to be addressed here is targeting, as was discussed in my
letter to you of February 21 . Exhibit A of the staff report
describes this fund as enhancing "local job growth for low and
r v.
moderate income wage earners" . By definition a one-person family
can have an income of $24, 550 a year and a four-person family can
have an income of $35, 050 and still qualify for assistance under
this loan program.
Is this the population we want to serve? Given this albatross
called Welfare Reform that is about to come down on us we should
ask the Economic Vitality Corporation to make a commitment that the
recipients of this funding target jobs and training to present
welfare clients . Not verbal promises, but guarantees . Such
commitments should be in writing and enforced.
If the Economic Vitality Corporation doesn't agree to this
condition the request should not be. approved.
Program Administration
Here is where I go a little bit ballistic. I have been a bureaucrat
for the past thirty years and I say that without shame. Thus I
understand what your staff is attempting to do. But it's simply not
right, and as, elected representatives of all the people of the City
a major part of your job is to bring fairness to the table.
At a Council .Meeting three years ago then Mayor Pinard and staff
began a dispute as to what percentage of funding should be set-
aside for administrative costs . Staff's position was .that they
could justify 20% as an administrative overhead amount. Mayor
Pinard's response was that of course they could, when you pick a
number anybody can justify it. Mayor Pinard was never more right.
Now three years later we are seeing an attempt at an end-run of the
policy. Staff tells us, page 1-7, that the City's bean counters are
telling us that our actual City administrative costs have averaged
20 percent over the last three years . Sure they have, and I 'm a
leading candidate for sainthood.
But then we get the coup de grace, ' In essence, the General Fund
has subsidized the CDBG program' s. administrative costs" Why of
. course it has . Especially when the CDBG program has replaced a
general fund commitment to the Homeless Shelter, is now being asked
to do public works general fund construction, has supported the
City's recreation department's programs, is scheduled to be used to
improve the County Historical Museum, etc. And it might be added
the City has gotten administrative funding from CDBG to carry out
those City jobs . Some might call that double-dipping.
One of the reasons for the national success of the CDBG program
these past 23 years has been its flexibility and I fully understand
that all benefits of the program will not accrue just to the low-
income members of the community. And I don't blame your staff for
attempting to improve the city' s financial condition. But I think
it is your job as elected members of the community to stop this end
run in it's tracks .
Acquisition and Rehabilitation of Affordable Rental Housing
I support the funding of this proposed acquisition, just not the
amount requested. We have historically stood before your Council,
the Planning Commission and anybody else who would listen and tell
them ,we can do affordable housing in this community if we have a
contribution equal to approximately $20, 000 per unit.
Our request to you this year is for $15, 000 per unit for a site in
the Margarita area. A couple of years ago we supported the AIDS
Support Network's request to acquire a nine-unit complex with a
CDBG grant of just over $200, 000. Other illustrations could be used
to illustrate the point.
Now People's Self-Help is asking for $200, 000 for a five-unit
development. I would suggest that amount is excessive and the grant
should be reduced by at least 25%, this would acknowledge the extra
need to complete rehabilitation needed to house special need
clients. As an aside the use of a sharp pencil by your staff in
these recommendations should be part of the program. I would submit
that the process being used to disseminate these funds in this
County does not champion the use of sharp pencils . Nor does it
provide for the necessary monitoring to assure the funds are used
to the maximum advantage ofthe community and low-income persons .
Back to People's Self-Help' s proposal . I know that since the
request is for HOME funding you don't have direct control of these
funds . ..If you agree with my suggestion of a lesser amount, I would
encourage you to ask the County to transfer the saved funds to a
Tenant Based Rental Assistance Program proposed by the San Luis
Obispo Supportive Housing Consortium. The Consortium asked the
County for $250, 000 for this program, but County staff has
recommended an expenditure of just $100, 000 .
My position is that, with the coming of Welfare Reform, anything we
can do to provide basic shelter for our special needs population
should be done. A tenant based program provides immediate help. And
its immediate help that people need. The homeless problem will get
worse before it gets better.
As you know from previous encounters I sometimes get emotional and
less than diplomatic over these issues but I hope you consider
these meanderings constructive, not destructive.
Sincerely,
George J. Moylan
Executive Director
/: John Dunn
Arnold Jonas
i1 RECE� MEETING AGENDA
LL0 DATE�Z ITEM #Z
Lt1:1 !FEB 1-4
1997
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Housing Authority MCI^487 Leff Street Post Office Box 1289 San Luis Obispo CA 93406-1289
of the Cit of '4
Y (805) 543-4478 fax (805) 543-4992
San Luis Obispo .
]ffCOUNCIL Gr�DD DIR
IRExecutive Director-Secretary
�/ George J.Moylan
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February 21, 1997 16 ACAO ❑ FIRE CHIEF..
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Mayor Allen K. Settle ErCLERKORIG ❑ POLICE CHF
Members of. the City Council : ❑ MGMT TEAM ❑ REC DIR
City of San Luis . Obispo O C RW FILE ❑ UTIL DIR
990 Palm Street ' ❑ PERS DIR
San Luis Obispo, CA 93401
Dear Mayor Settle and Members of the City Council:.
With the new round of Community Development Block Grant and HOME
Program funding coming before you soon I felt a need to update you
on what is transpiring with respect to prior year grants .
Brizzolara Street
We. optioned this. property.: last-.fall and have.,been working with the
City and it's 'consultant in -preparing the Section 108 Loan
documents .- -Simultaneously we have commissioned and completed an
Archaeological Resource Inventory, have had a topographical survey
completed and have. agreed on a preliminary site layout. We also
have had one-to-one contact with all current residents of the units
explaining their relocation rights-.
We would like to take full control of the site as -soon as possible,
but given the timing constraints of the 108 Loan program that may
not be imminent. We will be working with your staff, the consultant
and the Department of Housing and Urban Development on that issue.
There are many benefits to us, current tenants and the community
through an early exercise of our option.
The preliminary development plans are to build 32 units, mostly 1-
bedroom, for occupancy by disabled and elderly clients in a two-
story format. We would . construct four separate buildings with a
central community/laundry room. The.development, would be similar in
many ways. to the very successful Marvin Gardens, and we think a
welcomed addition to theneighborhood and community.'
We have met with First Bank of. San Luis Obispo and it appears bond -
financing• could be. a reality for 'the development...:V addi,ng _to-;it's
financial feasibilit
y
Bea'60% icth%Leff .IStr.e.e
You -set-aside.for-us :funding:which-.would assist ,us in-acquir.ing the
Sandercock Transfer 'Co sitt e across- from us; move , our
Sandercock Transfer Co. site across the street from us, move our
maintenance operations to the main building on that site, demolish
a second barn-like structure and develop additional housing. We
have completed plans for our office remodel and those plans have
received city approval .
However, the major obstacle remaining is the acquisition of a
replacement site by Sandercock. Our relationship with the company
has been excellent and we have a verbal agreement with them, but
they obviously need a new site before we can complete our
negotiations with them.
With the advent of Welfare Reform we are re-thinking the issue of
developing additional housing on the site occupied by the barn-like
structure. Perhaps constructing a building that could be used for
child care and job training would better meet our future needs . As
you know, with the Economic Opportunity Commission as a partner, we
run a very successful Head Start program adjacent to this site.
We could easily expand the existing program into a much larger Head
Start/childcare/job training program.
Speaking about Welfare Reform, an alert to you. There is already a
cottage industry of consultants, job trainers, child care
providers, etc. growing up around this major change in the way
welfare is managed in the United States . Since welfare is largely
a County issue the Board of Supervisors is likely to feel most of
the political pressure from this new industry. However, you will be
susceptible to it from several directions, most specifically in the
area of Community Development Block Grant funding. My warning to
not to buy generic jobs or child care programs . Invest your money
in programs which will specifically benefit mothers, fathers and
children who receive support from what this state is calling the
Temporary Assistance for Needy Families (TANF) program. And be sure
you know, and can trust, those you are buying the programs from.
My understanding is that California must create 400, 000 jobs for
TANF families or begin losing a percentage of its Federal block
grant funding for welfare each and every year it doesn't meet it' s
goal. We can't afford to use CDBG funds to create new jobs for
other than TANF recipients . Specifically target our local
entitlements to help create job opportunities for TANF recipients .
Blackstone Hotel
It was just about a year ago that the Council decided to ask the
private sector to re-develop this property. We haven't heard of any
progress since and frankly don't think there will be any. At best
the Blackstone is a difficult project. With a national and regional
economy still burdened by many weak sectors it is practically an
impossibility for the private sector.
Add-in earthquake concerns, footprint size, condition of the
building, difficulty of the site, potential business relocations,
etc. and the Blackstone becomes one difficult rehabilitation.
Yet because of the three basic criteria of real estate valuation,
i.e. location, location, location, a redeveloped Blackstone could
have a major impact on our historic downtown.
However, given all of that our conclusion is that the
rehabilitation will not be completed unless the owner of the
building would donate the second and third floors of the building
to a public agency or a non-profit. Thus a $3 million dollar job
becomes a $2 million dollar job and suddenly you have a viable
redevelopment.
Sincerely,
George J. Moylan
Executive Director
cc: John Dunn
Arnold Jonas