HomeMy WebLinkAboutReso 2014-129 RESOLUTION ?�O. 2014-129
RESOLUTIOI� OF THE CIT1' COUt�'CIL OF THE CITY OF
CHLiLA \JISTA OF ITS I.\'TENTION TO CONSIDER
GRA_�rTR�'G .A l�'ASTE A4ANAGENIENT FRAT�'CHISE
RENEWAL TO ALLIED R'ASTE SERV'ICES (DBA REPUBLIC
SERVICES OF CHliLA V1STA) OI�' THE TERI�4S PRESEI�TTED
UI�TTIL JUNE 30. 2024. WITH TWO OPTIOI�'S TO EJ{TEND
UI�'TIL JU`I�'E 30. 2031 AI�'D JUI�TE 30. 2039. RESPECTIVELY.
SUBJECT TO THE CITl"S DETERMII�'ATIOI�' OF
SATISFACTORY PERFORMANCE AND SETTING THE
PtiBLIC HEARIi�'G TO COI�'S[DER SAME FOR JULY 22. 2014
�i'HEREAS. in 1999. the Cirv eranted an Amended and Restated Solid Waste and
Rec��cline Franchise Agreement to Republic; and
\�1'HEREAS. concurrently a mutuall}� beneficial Ota}� Landfill Expansion Agreement �ti�as
appro��ed; and
W'HEREAS: �vith the passage of time (completed milestones; operational chanees; etc.).
gro„4h of the Ciq� and changes in pendine regulations. City staff and Republic ha��e neeotiated
updates to the language with enhancements to components; and �
N'HEREAS; the follo���ine represents a summar} of the scope of the ne�+� proposal ��ith
other kev provisions of the franchise remainine:
l. Term:
The proposed Franchise Rene���al tal:es the last ��ear of the current agreement
alone ���ith the t��-o. eieht vear contract extensions and restructures them so that
Republic may commit the capital necessar}� to meet the needs of our gro���ing
Cin� and be in compliance ��ith State solid ���aste and ereenhouse 2as emissions
reduction requirements.
The initial term shall commence September 201� and end June 30, 2024; unless
estended or earlier terminated per the terms of the agreement. Republic N�ill
have the first option to extend the term for another seven (7) ��ears (2031) on the
same terms and conditions, pro��ided the Cit�� Manaser reasonablv determines
that Republic has satisfactorilv performed and is invfull compliance �vith the
agreement and applicable IaH�. Cit�� also can eztend the term in iu discretion if
for an}� reason Republic elects not to.
The Citv is pro��ided one (1) additional eight (8) ��eaz extension option at iu sole
discretion subject to earlier termination b}� Republic in the e��ent the Ota��
Landfill closes.
Resolution No. 2014-129
Pa�e No. 2
2. Franchise Fee and Bonus Pavments:
In consideration of the City's grant of the Franchise Renewal, Republic will pay
to the Cit�� 20% of Republirs gross receipts as a Franchise Fee. (The pre��ious
Franchise Fee was 10%). City reserves the option to increase the Franchise Fee
to 2�% commencing July 1, 2015 if either party extends the Franchise until
2031. Per industry standard, Republic has the right to pass through this
franchise fee to ratepa}�ers. Republic must also pay the City an annual "bonus
fee." This pro��ision is canied o��er from the ]999 agreement. The wrrent fee
is $962,823.86. The fee increases by 3% per year. Republic is prohibited from
passing through the bonus fee to ratepa}�ers.
3. Free Disposal for City Business:
The Cin� ���ill not be charged disposal for materials generated by city crew;
contractors or sub-contractors performing work for the Cit}� and taken to the
Otay Landfill up to a maximum of 5% of the total materials collected (the total
tonnage of solid �vaste, recyclable materials and green waste) in the City. Any
amount over the �% will be billed to the City. This is an increase in free tonnage
that was pre��iously based upon 5% of the amount of solid waste onl}� collected
in the City. Within this �% cap on tonnage, the Franchise Renewal also allows
City-designated educational; medical or sports oriented non-profits building
facilities within the City to take advantage of this fee disposal benefit for their
construction and demolition disposal.
4. New Recycline Programs:
Pilot programs and innovative ser��ices which may entail new collection
methods or processes may be directed by the City to meet applicable la���s.
�. Bulk�� Waste Items:
Residents may call in 24 hours in advance of their service day to get ne�t day
service on free bulky item collection. This was previously a 48-hour
requirement.
6. Customer Service:
Telephones ti�ill be attended bv live customer service representatives from 8:00
am to 6:00 pm Monda�� through Friday; and 8:00 am to noon on Saturday. This
increased the available time from 5:30 pm to 6:00 pm is to allo�� time for
residents to return home and call in anv service issues.
7. Recvcline Education:
Republic �i�ill pay $110.000 annually for the Recycling Education Prooram and
will escalate this amount 1% per year. This is a $41,000 increase over the
e�istine contract.
Resolution \o. 2014-129
PaQe I�'o. 3
S. Rate Adjustment Formula:
The rates for Large Quantin� Generators and Small Quantin� Generators ���ill
tal:e effect beginning Julv 1; 201�, and September l. 201�. respectiveh� and
each annual anni��ersar�� thereafter.
The Alaximum Rates for General Sen�ices shall increase in an amount not to
eaceed the product of the pre�ious ��eaz's Rate multiplied by 100 percent (up
from 66.7% under the 1999 aereement) of the Consumer Price Index for the
previous calendaz veaz increase. The CPI of the San Dieeo .qrea for All Urban
Consumers (all items) ���ill be used. (Rate x CPI = Adjusted Rate.)
Sienificant ratepayer protections from the 1999 aereement remain unchansed.
For e�ample at no time wil] the Small Quantit}� Generator rate exceed 90% of
the average for San Diego Counn� for the same level of sen�ice; afrer
sovemmental pass throush fees have been removed. Moreover, if Republic
offers a lo"�er rate �a�thin the Counrv. under a franchise for similaz ser��ices. it is
required to offer that lo�ver rate in Chula Vista.
9. Otav Landfill Aereement:
In tandem N�ith the Franchise Rene���al. an Amended and Restated Otav Landfill
Espansion Aereement has been negotiated �vith Republic and its affiliate. Otav
LandfilL Inc. This aareement pro��ides additional benefits to the citizens of
Chula Vista. A default b}� Republic under the Landfill Aereement will also
constitute a default under the Franchise Renewal.
• Free Compost Material for Chula Vista Residents—
Republic ���ill pro��ide three: free. compost events per calendar year to
Small Quantit�� Generators. Each event H�ill be provided 1�0 cubic
yards of compost free to Citv residents and nomlandscapin�, Small
Quantit}� Generator businesses on a first come. first serve basis. up to
1�0 cubic ��ards per event.
• Landfill Capacit�� for Chula Vista Residents—
As the landfill begins to reach capacit}�, Republic ���ill hold back space
within the landfill to guarantee Chu]a Vistans ��=ill ha��e landfill space
until. at a minimum. ��eaz 2028.
• Future Resource Reco��erv Park—
Upon closure of the Ota�� Landfill. a minimum of 20 acres up to 30
acres «�ill be develop for a Resource Reco��ery Pazk for solid ���aste
handlino; transfer and/or processina to serve the Citv and other
jurisdictions. A Resource Recover}� Pazk mav co-locate reuse;
rec}�cling composting processing and related manufacturine and retail
businesses in a central location N�ith the aoal to �i�ork to�vards zero
discarded materials to landfill disposal.
Resolution No. 2014-129
Paee No. 4
• Landscapine—
Upon closure the landfill �n�ill be contoured to resemble the
surrounding mountains. The slopes of the ]andfill �ill be re-veeetated
N�th the goa] of creatina a habitat for nati��e species; plants and
wildlife. ]t wil] not look like an enaineered mountain.
V�'HEREAS, in accordance with Section 1201 of the City Charter. the Cin� Council shall
adopt a resolution declarine its intention to grant a franchise and shall schedule a public hearins
for the consideration of such erant.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, that it does set a public hearing for 2:00 pm on July 22, �014 in the Council Chambers,
276 Fourth Ave, Chula Vista, CA at which the City Council intends to consider �ranting to
Republic Semices a Waste Management Franchise renewal on the terms and conditions set forth
above as more specificall}� provided in the Franchise Renewal Agreement.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that the
City Clerk is hereby authorized and directed to publish, at least once within fifieen days after the
passage of this resolution and at least ten days priar to the date of the hearing, appropriate notice
of such hearing.
Presented by Approved as to form by
�
Richard A. H pk s Gl n R. Go �ins
Director of Public V✓orks Cit� ttomev
Resolution No. 2014-]29
Pase ?�io. �
PASSED. APPROVED. and ADOPTED b�� the Cin� Council of the Cit�� of Chula \%ista.
Califomia this 8th da� of Jul�� 201� b�� the folloti�ine vote:
.AI'ES: Councilmembers: Aeuilar. Bensoussan. Ramirez. Salas and Coa
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
(����.�
Chervl Cox. A9a��
ATTEST:
�(�� .�� . �
Donna R. I�'oms. C 4 Cih� Clerk
STATE OF CALIFORI�'IA )
COUTTY OF SAI� DIEGO )
CITY OF CHULA \'ISTA )
I. Donna R. Noms. Cin Clerk of Chula Vista. Califomia. do herebv certifi� that the foreeoine
Resolution I�'o. 2014-129 ��as dul�� passed, appro��ed, and adopted b}� the City Council at a
reaulaz meetina of the Chula Vista Citv Council held on the 8th da�� of Jul�� 201�.
Executed this 8th dav of Jul�� 2014.
��..'
�
Donna R. Noms. CMC. Citv Clerk