HomeMy WebLinkAboutAgenda Statement 1989/10/03 Item 8 COUNCIL AGENDA STATEMENT
Item
Meeting Date $1126169- 10/W29
ITEM TITLE: Public Hearing: To consider granting a franchise for refuse
collection and disposal to EDCO Disposal Corporation
Ordinance a 3.35--
3 Js- Granting to EDCO Disposal Corporation,
its successors and assigns, a franchise to collect and dispose
of refuse and to use the public streets and places within the
City of Chula Vista for said purpose
SUBMITTED BY: Stephanie Pope Principal Management Assistant
REVIEWED BY: City Manager!/ (4/5ths Vote: Yes No x )
On September 5, 1989, the City Council approved an ordinance amending the
exclusive franchise with Laidlaw Waste Systems for trash collection within the
City of Chula Vista. The amendment allowed a single exception to the
agreement's exclusivity, permitting the Sweetwater Union High School District
to award a contract for trash collection services to school sites within the
City of Chula Vista to a contractor other than Laidlaw Waste Systems, Inc.
when the contract was competitively bid. Since the School District has
awarded a contract to EDCO Disposal Corporation through a competitively bid
process, a resolution was adopted concurrently with the ordinance amendment
which gave notice of intent to grant a trash franchise to EDCO Disposal
Corporation and set a public hearing for September 19, 1989, which was
continued to this meeting.
RECOMMENDATION: Adopt the ordinance and award the limited franchise.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The adoption of this ordinance is the final step in the resolution of a
dispute between EDCO (and the Sweetwater Union High School District) and the
City of Chula Vista about the ability of the School District to award a
competitively bid contract for trash collection services and to not use the
services of the City's exclusive franchise operator. All parties have agreed
to the provisions of this limited franchise, and some of the more pertinent
points are:
1 . The purpose of the ordinance granting the franchise to collect and dispose
of refuse is clearly defined to be only within the boundaries of the
Sweetwater Union High School District facilities within the City of Chula
Vista.
2. The term of the franchise will coincide with the term of the contract
between the School District and EDCO, no longer than three years.
Page 2, Item '
Meeting Dated i0/3/ '
3. EDCO Disposal Corporation will pay to the City franchise fees of 6-1/2% of
the gross annual receipts. In April 1990, the franchise fees will
increase by 1/2% annually up to a maximum of 8%. These fees are
consistent with those paid by Laidlaw Waste Systems, Inc.
In all other respects, the franchise provisions parallel those of the
franchise agreement with Laidlaw and will authorize EDCO to operate as a City
trash franchise within the limitations agreed to by EDCO, Laidlaw, the School
District and the City.
FISCAL IMPACT: Due to the nature of the competitive bidding process, the
franchise fees received by the City from Laidlaw as a result of losing the
Sweetwater Union High School District account will be replaced by very
slightly lower franchise fees to be obtained as a result of this franchise
with EDCO. The specific amount is undetermined at this time.
WPC 2942A
)2a,e4nol Atadi)(13
gwzityll/
by the City Council of by the City Council of
Chula Vista, California Chula Vista, California
Dated 9- a&-$q Dated