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HomeMy WebLinkAboutAgenda Statement 1987/05/05 Item 7a,b,c COUNCIL AGENDA STATEMENT Item 7a, b , c Meeting Date 5/5/87 ITEM TITLE: Ordinanceal'G i Amending Section 8.24.070 of the the Chula Vista Municipal Code entitled Garbage and Rubbish Collection Prohibited When Burning Prohibited Resolution (30/`/ of the City Council of the City of Chula Vista consenting to the assignment of the trash collection contract from Chula Vista Sanitary (GSX) to Laidlaw Waste Systems, Inc. Resolution /30 ) Approving the agreement with Laidlaw Waste Systems, Inc. for the provision of data processing services SUBMITTED BY: Assistant City Manage' REVIEWED BY: City Manager( (4/5ths Vote: Yes No X ) The ordinance amending Chapter 8.24 relating to garbage and litter control within the City and the two resolutions are at least directly or indirectly related to the sale of Chula Vista Sanitary Service, Inc. (GSX) to Laidlaw Waste Systems, Inc. late last year. The City Council should be aware that the new company, Laidlaw, intends to discontinue the historical name of Chula Vista Sanitary Service, Inc. , and adopt and utilize the trade name of Laidlaw Waste Systems. For at least one year, however, both names (Laidlaw and CVSS). will appear on the quarterly bills in order to eliminate any confusion on the part of customers. RECOMMENDATION: That City Council place the ordinance on first reading amending Section 8.24.070 of the Municipal Code and adopt the resolution consenting to the assignment of the trash collection contract and adopt the resolution approving an agreement with Laidlaw Waste Systems, Inc. for the provision of data processing services. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Early this year, Laidlaw Waste Systems, Inc. requested, as required under the Municipal Code, that City Council consent to an assignment of the trash collection contract from Chula Vista Sanitary, Inc. (GSX) to Laidlaw Waste Systems, Inc. In addition, they brought to our attention what they perceive to be a vagueness in our Municipal Code- in that it is not clear that a franchisee had exclusive rights to collect all residential , commercial and industrial refuse. It was their position that if the collection of industrial waste was not the exclusive right of the franchisee that some question could arise over whether or not other collectors could enter the City and engage in the collection of industrial waste without being subjected to the payment of a . .................. . . Page 2, Item 7a, b , c Meeting Date 5/5/87 franchise fee. Inasmuch as a review of the Code provisions revealed some degree of uncertainty although historically Chula Vista Sanitary, Inc. has had exclusive rights to collect all industrial waste and has always paid the franchise fees for the revenue generated by industrial collections, for the sake of clarity, the subject ordinance by amending Section 8.24.070 will make it clearer that industrial waste is included in the franchisee's exclusive franchise. The resolution of the City Council consenting to the assignment of the trash collection contract to Laidlaw Waste Systems, Inc. is required under the Municipal Code. The final resolution approving an agreement with Laidlaw Waste Systems, Inc. provides for the City to continue to provide data processing services as has been provided to Chula Vista Sanitary Service, Inc. since 1974. That service as in the past provides for the preparation of billing statements for Laidlaw's countywide customers including all of those customers within the City of Chula Vista except commercial customers. The Laidlaw Waste Systems, Inc. , upon assumption of contract responsibilities, will be our second largest data processing account among the outside users. The City of El Cajon is 1 arger. Laidlaw Waste Systems, Inc. had originally intended to discontinue the contractual relationship but, through staff contact and negotiations, they have agreed to remain with us under the terms and conditions outlined in the agreement. The new contract will be effective for an initial five year period beginning July 1 , 1987 and contains a contract provision for administratively adjusting the rates on an annual basis without necessity of formally changing the contract. FISCAL IMPACT: The ordinance amending the Municipal Code has no financial impact nor does the resolution of the City Council consenting to the assignment of the contract. The resolution approving the data processing service contract produced an annual revenue of approximately $29,900. The direct cost of supplies and communications link to the City in providing the contract service is estimated at approximately $15,725 annually, leaving a net revenue of approximately $14,175 per year. WPC 1503A by the City Council of Chula Vista, California Dated,- � _ COUNCIL AGENDA STATEMENT Item 7a, b, c Meeting Date 5/5/87 ITEM TITLE: Ordinance Amending Section 8.24.070 of the the Chula Vista Municipal Code entitled Garbage and Rubbish Collection Prohibited When Burning Prohibited Resolution X30/q of the City Council of the City of Chula Vista consenting to the assignment of the trash collection contract from Chula Vista Sanitary (GSX) to Laidlaw Waste Systems, Inc. Resolution 600/.O Approving the agreement with Laidlaw Waste Systems, Inc. for the provision of data processing services SUBMITTED BY: Assistant City Manage' REVIEWED BY: City Manager (4/5ths Vote: Yes No X ) The ordinance amending Chapter 8.24 relating to garbage and litter control within the City and the two resolutions are at least directly or indirectly related to the sale of Chula Vista Sanitary Service, Inc. (GSX) to Laidlaw Waste Systems, Inc. late last year. The City Council should be aware that the new company, Laidlaw, intends to discontinue the historical name of Chula Vista Sanitary Service, Inc. , and adopt and utilize the trade name of Laidlaw Waste Systems. For at least one year, however, both names (Laidlaw and C V S S). will appear on the quarterly bills in order to eliminate any confusion on the part of customers. RECOMMENDATION: That City Council place the ordinance on first reading amending Section 8.24.070 of the Municipal Code and adopt the resolution consenting to the assignment of the trash collection contract and adopt the resolution approving an agreement with Laidlaw Waste Systems, Inc. for the provision of data processing services. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Early this year, Laidlaw Waste Systems, Inc. requested, as required under the Municipal Code, that City Council consent to an assignment of the trash collection contract from Chula Vista Sanitary, Inc. (GSX) to Laidlaw Waste Systems, Inc. In addition, they brought to our attention what they perceive to be a vagueness in our Municipal Code—in—that—it----is— not—clear- that- a-- franchisee had exclusive rights to collect all residential , commercial and industrial refuse. It was their position that if the collection of industrial waste was not the exclusive right of the franchisee that some question could arise over whether or not other collectors could enter the City and engage in the collection of industrial waste without being subjected to the payment of a Page 2, Item 7a, b, c Meeting Date 5/5/87 franchise fee. Inasmuch as a review of the Code provisions revealed some degree of uncertainty although historically Chula Vista Sanitary, Inc. has had exclusive rights to collect all industrial waste and has always paid the franchise fees for the revenue generated by industrial collections, for the sake of clarity, the subject ordinance by amending Section 8.24.070 will make it clearer that industrial waste is included in the franchisee's exclusive franchise. The resolution of the City Council consenting to the assignment of the trash collection contract to Laidlaw Waste Systems, Inc. is required under the Municipal Code. The final resolution approving an agreement with Laidlaw Waste Systems, Inc. provides for the City to continue to provide data processing services as has been provided to Chula Vista Sanitary Service, Inc. since 1974. That service as in the past provides for the preparation of billing statements for Laidlaw's countywide customers including all of those customers within the City of Chula Vista except commercial customers. The Laidlaw Waste Systems, Inc. , upon assumption of contract responsibilities, will be our second largest data processing account among the outside users. The City of El Cajon is larger. Laidlaw Waste Systems, Inc. had originally intended to discontinue the contractual relationship but, through staff contact and negotiations, they have agreed to remain with us under the terms and conditions outlined in the agreement. The new contract will be effective for an initial five year period beginning July 1 , 1987 and contains a contract provision for administratively adjusting the rates on an annual basis without necessity of formally changing the contract. FISCAL IMPACT: The ordinance amending the Municipal Code has no financial impact nor does the resolution of the City Council consenting to the assignment of the contract. The resolution approving the data processing service contract produced an annual revenue of approximately $29,900. The direct cost of supplies and communications link to the City in providing the contract service is estimated at approximately $15,725 annually, leaving a net revenue of approximately $14,175 per year. WPC 1503A v I' by the City Council of Chula Vista, California Dated