HomeMy WebLinkAboutAgenda Statement 1989/09/12 Item 12 COUNCIL AGENDA STATEMENT
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Meeting Dater 1 r! Nl 8 1
ITEM TITLE: Ordinance a 332'Amending Ordinance No. 1993 Relating to
Laidlaw Waste Systems, Inc. Trash Franchise
Resolution Giving Notice of Intent to Grant a Trash
Franchise to EDCO Disposal Corporation and Setting a Public
Hearing Thereon
SUBMITTED BY: `Assistant City Attorney
Assistant City Manager
(4/5ths Vote: Yes No X )
Effective September 1, 1989, Sweetwater Union High School District has awarded
a contract for trash collection services at all of its facilities throughout
the district, including those within the City of Chula Vista. Previously, the
City's exclusive franchisee, Laidlaw Waste Systems, Inc. (successor in
interest to Chula Vista Sanitary Service), provided trash collection services
to school sites of the Sweetwater Union High School District within the City
of Chula Vista. The proposed amendment will modify the provision for
exclusive service in the City to authorize a single exception, the contractor
selected by Sweetwater Union High School District following a competitively
bid contract process. The exception will require that that contractor also be
an authorized City trash franchisee.
RECOMMENDATION: (1) Place the ordinance on first reading
(2) Adopt the resolution giving notice of intention to
grant EDCO a franchise and setting a public hearing
BOARDS/COMMISSIONS RECOMMENDATION: N/A
DISCUSSION:
In 1982, the City Council entered into an exclusive franchise agreement with
Chula Vista Sanitary Service, and subsequently approved transfer of the
franchise to Laidlaw Waste Systems, Inc. The franchisee has served the school
facilities in the Sweetwater Union High School District pursuant to said
franchise agreement at the rates approved by the City Council in that
franchise agreement.
Currently, Laidlaw does not have a franchise in the City of National City, in
which other school facilities of the Sweetwater Union High School District are
present. In August, 1989, the Sweetwater Union High School District Board
awarded a competitively bid contract for trash removal services in all of its
facilities to EDCO Disposal Corporation, which has an exclusive trash
franchise in the City of National City. There is a dispute between EDCO (and
the Sweetwater Union High School District) on the one hand and the City of
Chula Vista, on the other hand about the ability of the school district to
award a contract for trash collection services and not use the services of the
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City's exclusive franchise operator. Rather than engender litigation between
public entities, the recommendation is to modify the provisions of the
franchise agreement with Laidlaw to acknowledge one exception to Laidlaw's
otherwise exclusive franchise. This would cause the least possible disruption
to the efficient collection and disposal of refuse in the City, as well as
minimize the adverse economic impact on Laidlaw, the exclusive franchisee. It
also honors the legal principle established in the City Charter and in
Municipal Code provisions relating to franchises, that the company awarded the
contract by the school district following a competitive bid process will be
required to obtain a City franchise, and pay a franchise fee based on those
contractual services. We have advised EDCO of the City's Charter requirements
and this proposal, and they have agreed to apply for a franchise under the
stated conditions.
Adoption of the Resolution of Intention will initiate the Charter-prescribed
process to grant EDCO the second, limited franchise. It will set a public
hearing to consider first reading of the EDCO franchise ordinance on
September 19, 1989.
FISCAL IMPACT: None by this action. Franchise fees lost from Laidlaw by
Laidlaw losing the Sweetwater Union High School District account will be
replaced by very slightly lower franchise fees to be obtained ultimately from
EDCO, assuming they apply for and obtain a franchise and collect the franchise
fee as they have agreed.
6158a
by the City Counci of
Chula Vista, California
Dated