HomeMy WebLinkAboutAgenda Statement 1985/02/05 Item 13 . COUNCIL AGENDA STATEMENT
Item 13
Meeting Date 2/5/85
ITEM TITLE: Resolution //9i0 - of Intention to Grant a Five Year Extension to
a Franchise for Refuse Collection and Disposal to Chula Vista
Sanitary Service
SUBMITTED BY City Attorney (4/5ths Vote: Yes No X )0
Chula Vista Sanitary Service has requested a five year extension
on their franchise . This resolution would set a public hearing
to consider said extension.
RECOMMENDATION Adopt the resolution setting a public hearing
for March 5, 1985
BOARD/COMMISSION RECOMMENDATION: N/A
DISCUSSION:
The City Manager has received a written request from Dick Chase Jr. ,
President of Chula Vista Sanitary Service, to extend the term of the
trash franchise for an additional five years . The franchise would
currently terminate on September 4 , 1987 .
At the time the franchise was last considered, the proposal was for
a ten-year term. In Mr. Chase ' s letter, he justifies his request
based upon the large investment required for an operation such as
Chula Vista Sanitary Service . The Sanitary Service has plans to
expand their operation in the near future and they feel that the
costs associated with developing a new facility requires a longer
term franchise . A copy of the letter from Mr. Chase is attached as
Exhibit A.
Based upon the information provided by Mr. Chase, it is my recom-
mendation that Council set this matter for hearing to determine
whether the extension of the franchise is warranted.
FISCAL IMPACT: N/A
be
, ,j
Form A-113 (Rev. 11/79)
EXHIBIT
. ,
CHULA VISTA SANITARY SERVICE, INC. A
311 F Street
Post Office Box 967 SCA
Chula Vista, California 92012 SERVICES
(619)427-7700
November 29, 1984
Mr. John Goss
City Manager
City of Chula Vista
276 Fourth Avenue
Chula Vista CA 92010
Re: Request for Extension of Franchise to Collect and
Dispose of Refuse Within the City of Chula Vista
Dear Mr. Goss :
As you know the City Council adopted Ordinance No. 1993 on
August 3 , 1982, pursuant to the authority of Article XII of
Charter of the City of Chula Vista, granting a franchise to
the Chula Vista Sanitary Service to collect and dispose of
refuse in the City of Chula vista. The term of that franchise
is a five year period terminating September 4, 1987. The
proposal submitted was for a ten year term which conformed
to terms of contracts previously granted to this company by
the City of Chula Vista. It was also consistent with the
Contract terms granted by the Cities of Imperial Beach and
Oceanside which provide for the extension of terms at five
year intervals at the option of the company.
The rationale for a reasonably long term contract or franchise
in a public service business such as ours is obvious from
a simple economic analysis. The investment of literally mil-
lions of dollars in sophisticated rolling stock, repair and
maintenance facilities and communications equipment requires
some assurance of a reasonable return over more than a short
five year term.
The nature of the refuse collection and disposal business
has drastically changed since our predecessor was granted
a refuse collection and disposal contract in 1947 operating
two pick-up trucks.
Not only are the public health considerations more complicated
by virtue of population growth and disposal problems but over-
riding environmental concerns must be weighed. The business
has naturally extended to include all forms of removal and
disposition of all types of waste encompassing street cleaning
to energy recovery.
ONV
Mr . John Goss
City of Chula Vista
November 29 , 1984
Page 2
In order to effectively meet these demands , the state legisla-
ture, as recently approved by the Federal court, has delegated
to the cities the authority and duty to contract for and regu-
late the conduct of such activities .
However, such a complex public health and environmental protec-
tion function cannot be performed without the expenditure
of significant sums invested not only in the items previously
mentioned but the repair, maintenance, administration and
storage facilities to support and coordinate the services.
The Chula Vista Sanitary Service will close escrow in less
than 120 days on property for the location of such a facility.
We are prepared to expend in excess of 1.7 million dollars
to develop a state-of-the-art center that will serve the people
of Chula Vista. This new facility is essential at this time
to meet the expanded needs that will be generated by the Bay-
front and Eastlake developments and the general growth to
be expected in Chula Vista.
Consequently, it is necessary that we request at this time,
a reasonable extension of our franchise for an additional
five years to September 4, 1992 , and if the Franchisee is
not in breach of this ordinance and has performed in a satisfac-
tory manner, the Franchisee shall have the option to twice
extend this franchise for additional five (5) year periods.
Therefore, we respectfully request that you undertake the
notice requirement imposed by Article XII of the Charter to
set a hearing at the earliest possible date to consider the
amendment of Ordinance No. 1993 , Sec. 3 , to extend our fran-
chise. It would be both desirable and fair to schedule said
hearing at the same time as our request for a hearing on a
proposed rate adjustment to - afford a full opportunity to all
of our citizens to examine and understand the complexities
of refuse collection and disposal and to provide their opinion.
Very truly yours,
4AC 52 Me
•
Dick F. Chase Jr.
President
cc: Eugene Asmus , Asst. City Manager
Tom Herron, City Attorney
Lyman Christopher, Finance Director
City Council Members
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