HomeMy WebLinkAbout10-20-2015 Item 08 - Ordinance Adoption for Granting a Franchise to San Luis Garbage Company for Food and Green Waste
Meeting Date: 10/20/2015
FROM: Carrie Mattingly, Utilities Director
Prepared By: Ron Munds, Utilities Services Manager
SUBJECT: ADOPTION OF AN ORDINANCE GRANTING A FRANCHISE TO SAN
LUIS GARBAGE COMPANY FOR FOOD AND GREEN WASTE
COLLECTION SERVICES
RECOMMENDATION
Adopt Ordinance No. 1624 (2015 Series) entitled “An Ordinance of the City Council of the City
of San Luis Obispo, California, granting a franchise to San Luis Garbage Company for food and
green waste collection, processing and/or disposal within the City of San Luis Obispo.”
DISCUSSION
Background
On October 6, 2015 the City Council voted 4 to 0 to introduce Ordinance No. 1624 (2015
Series). Ordinance No. 1624 grants San Luis Garbage Company a twenty year franchise
agreement to collect food and green waste within the City. The twenty year term would
commence upon commercial operation or the proposed composting facility at San Luis
Garbage’s property off of Santa Fe Road. The franchise stipulates that if the proposed
composting facility is not constructed (or substantially completed) and operational by January 1,
2020, the term of the agreement will remain at the current term to August 2025. All other
provisions in the agreement will remain intact if the facility does not move forward. The new
Ordinance will become effective on November 20, 2015, 30 days after its adoption.
ALTERNATIVE
The City Council could choose not to adopt the ordinance and direct staff to return to the Council
with different alternatives for the collection and diversion of food and green waste within the
City.
Attachments:
a - Ordinance
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O 1624
ORDINANCE NO. 1624 (2015 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, GRANTING A FRANCHISE TO SAN LUIS
GARBAGE COMPANY FOR FOOD AND GREEN WASTE COLLECTION,
PROCESSING AND/OR DISPOSAL WITHIN THE CITY OF SAN LUIS
OBISPO
WHEREAS, the public health, safety and welfare demand the orderly and periodic
collection of food and green waste from properties within 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 food and green waste within
the City; and
WHEREAS, the current franchisee, San Luis Garbage Company (“SLGC”), has provided
reliable service within the City for more than 50 years without interruption; and
WHEREAS, on July 14, 2015, SLGC submitted a letter to the City requesting
modifications and a ten year extension to the City’s Green Waste Franchise in order for SLGC to
expand its organics waste diversion program. Specifically, SLGC intends on entering into an long-
term agreement with Hitachi Zosen Inova U.S.A. LLC (“HZI”) for the development, construction
and operation of a Kompogas plant (the “Kompogas Plant”) capable of processing the City’s
food and green waste; and
WHEREAS, the City Council finds that a Kompogas Plant would provide the City and
the community at large with state of the art facility that meet both existing and future state
mandated composting regulations, decrease the City’s carbon footprint through the reduction of
greenhouse gas emissions and generate reusable byproducts from the harvested methane gas
produced by the facility; and
WHEREAS, in order for HZI to finance the Kompogas Plant, HZI requires a twenty year
commitment for the delivery of organic waste from the date of operation of said facility; and
WHEREAS, by this Ordinance, the City intends on granting an exclusive franchise to San
Luis Garbage Company in order to facilitate the finance and development of the Kompogas Plant
and to ensure the continuation of effective and efficient green waste processing and/or disposal
service.
NOW, THEREFORE BE IT ORDAINED by the City Council of the City of San Luis
Obispo as follows:
SECTION 1. Ordinance No. 1551 (2010 Series) shall be repealed and the October 6, 2010
Agreement between the City of San Luis Obispo and San Luis Garbage Company for the Collection
and Disposal of Residential Green Waste shall be terminated upon the effective date of this
Ordinance.
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Ordinance No. _____ (2015 Series) Page 2
O 1624
SECTION 2. An exclusive franchise is hereby granted to San Luis Garbage Company for
services to collect, process, and dispose of food and green waste subject to the terms and conditions
set forth in the Agreement between the City of San Luis Obispo and San Luis Garbage attached
hereto as Exhibit A and incorporated herein by this reference.
SECTION 3. If any subdivision, paragraph, sentence, clause, or phrase of this ordinance
is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such
invalidity or unenforceability shall not affect the validity or enforcement of the remaining
portions of this ordinance, or any other provisions of the City’s rules and regulations. It is the
City’s express intent that each remaining portion would have been adopted irrespective of the
fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared
invalid or unenforceable.
SECTION 4. A summary of this ordinance, approved by the City Attorney, together with
the names of the Council members voting for and against it, shall be published at least five days
prior to its final passage, in the Tribune, a newspaper published and circulated in this City. This
ordinance will go into effect at the expiration of thirty (30) days after its final passage.
INTRODUCED on the 6th day of October, 2015, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the ____ day of ____, 2015, on the following vote:
AYES:
NOES:
ABSENT:
____________________________________
Mayor Jan Marx
ATTEST:
____________________________________
Jon Ansolabehere
Interim City Clerk
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Ordinance No. _____ (2015 Series) Page 3
O 1624
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
______________________________
Jon Ansolabehere
Interim City Clerk
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Newspaper of the Central Coast
B 1 N I
EREIC'EIVED
2015
CLERK
3825 South Higuera • Post Office Box 112 • San Luis Obispo, California 93406 -0112 • (805) 781 -7800
In The Superior Court of The State of California
In and for the County of San Luis Obispo
AFFIDAVIT OF PUBLICATION
eCI�'YOF
8� LICINI0►Bi',9PO
A D # 2021320
ORDINANCE NO. 1624 (2015 Series)
CITY OF SAN LUIS OBISPO
OFFICE OF THE CITY CLERK
AN ORDINANCE OF THE CITY OOUNCIL
OF THE CITY OF SAN LUIS OBISPO,
CALIFORNIA, GRANTING A TWENTY -
Y�AR FRANCHISE TO SAN LUIS GAR -
BAGS COMPANY FOR FOOD AND
STATE OF CALIFORNIA
GREEN WASTE COLLECTION, PROC.
ESSING AND /OR DISPOSAL WITHIN
THE CITY OF SAN LUIS OBISPO
SS.
County of San Luis Obispo
I am a citizen of the United States and a resident of the
County aforesaid; I am over the age of eighteen and not
interested in the above entitled matter; I am now, and at
all times embraced in the publication herein mentioned
was, the principal clerk of the printers and publishers of
THE TRIBUNE, a newspaper of general Circulation,
printed and published daily at the City of San Luis
Obispo in the above named county and state; that notice
at which the annexed clippings is a true copy, was
published in the above -named newspaper and not in any
supplement thereof — on the following dates to wit;
OCTOBER 14, 2015 that said newspaper was duly and
regularly ascertained and established a newspaper of
general circulation by Decree entered in the Superior
Court of San Luis Obispo County, State of California, on
June 9, 1952, Case #19139 under the Government Code
of the State of California.
I certify (or declare) under the penalty of perjury that the
foregoing is true and correct.
V `p
�� 1 �
(Signs re of Principal Clerk)
DATED: OCTOBER 14, 2015
AD COST: $151.80
NOTICE IS HEREBY GIVEN that the City
Council of the City of San Luis Obispo. Call.
famla, a1 Its Regular Meeting of October 6,
2015, inlraduced the above titled ordinance
upon a motion by Council Member Rivolre,
second by Council Member Christianson,
and on the following roll call vote:
AYES: Coun @II Member Carpenter,
Chrlsttanson, Rivoire, and
Vice Mayor Ashbaugh
NOES: None
ABSENT: Mayor Manx
g7rdln8nce NQ-_ 1-624 -015 . This Is
a City Ordinance to grant a twenty -year
franchise agreement to San Luis Garbage
Company for food and green waste collec-
tion, processing and /or disposal within the
City of San Luls Obispo.
A full and complete copy of the aforemen-
tioned Ordinance is available for Inspection
and copy In the City Clerk's Office, located
at 990 Palm Street, San Luis Oblspo, Cali-
fornia, or you may call (805) 781 -7100 for
more Information_
NOTICE IS HEREBY FURTHER GIVEN
that the City Council of the City of San Luis
Obispo will consider adopting the afore-
mentioned Ordinance at Its Regular Meet -
Ing of October'20, 2015 at 6:00 p.m., which
will be held In the Council Chamber, locat-
ed at 990 Palm Street, San Luls Obispo,
California.
Anthony J. Melia
City Clerk
47o100sr 14. 2015 2021320