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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 �r/ 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 �-3 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 �'J 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 v 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 �- 9 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 ,�-l0 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 �-�3 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. f�� 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 (80S)773 •Fax(80�773-7006 "y" 7 ITEM #PAT I ir COUNCIL O CDDDI RPAO O FIN DIR CAO 13 FIRE CH I EF �TTORNEY ❑ PW DIR CLERWpJG ❑ POLICE CHF E3 MGMTTEAM ❑ REC DIR 13 C READ FILE O UTIL DIR�� ❑ PERS DIR 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 # l�, Q 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 3;4g t� 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 � Q . .� 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 2f'P AO FlN DIR,: .; February 21, 1997 16 ACAO ❑ FIRE CHIEF.. w Tmo Ey ❑ PW DIR 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