HomeMy WebLinkAboutReso 1991-16149 RESOLUTION NO. 16149
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA OF INTENTION TO GRANT A FP~ANCHISE FOR REFUSE
COLLECTION AND DISPOSAL TO SOUTH BAY CITIES, INC. FOR
CHULA VISTA ELEMENTARY SCHOOL FACILITIES.
The City Council of the City of Chula Vista does hereby resolve as follows:
WHEREAS, South Bay Cities, Inc., requested that a franchise be granted to
it of the character and for the purposes mentioned in the form of notice
hereinafter set forth; and,
WHEREAS, in the opinion of said Council, the public good requires that
consideration of the granting of such franchise be undertaken; and,
WHEREAS, the City of Chula Vista wishes to determine the frequency and
means of collection, level of service, charges and fees, nature, location, and
extent of providing refuse collection within the City; and,
WHEREAS, it is in the opinion of this City Council that the public health,
safety, and well being require a wholly exclusive franchise without competitive
bidding for such services with the exception of the services to be provided under
contractual terms and conditions in substantially the form attached hereto; and,
WHEREAS, the proposed franchise with Bay Cities Services, Inc. is marked
as Exhibit "A", and attached hereto and incorporated herein by reference as if
set forth in full.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista intends to consider the granting of said franchise, being the ordinance
marked Exhibit "A", or a variant thereof; that hearing of objections to the
granting thereof will be held at the time and place specified in the form of
notice hereinafter set forth which the Clerk of the City is hereby directed to
publish at least once within fifteen days after the passage of this resolution,
in the Chula Vista Star News, a newspaper of general circulation within said
City, and that said notice shall be in the following words and figures:
NOTICE OF INTENTION TO GRANT FRANCHISE
NOTICE IS HEREBY GIVEN that Bay Cities Services, Inc. has filed its
application with the Council of the City of Chula Vista requesting said Council
to grant it a franchise for a period of three years, pursuant to the terms and
conditions of Article XII of the Charter of the City of Chula Vista, to collect
refuse at Chula Vista Elementary School District facilities in the City of Chula
Vista. If said franchise shall be granted to it, said Bay Cities Services, Inc.,
its successors and assigns, hereinafter designated Grantee, shall during the life
thereof pay to said City g% of the gross annual receipts of said Grantee arising
from the use, operation, and possession of said franchise. Said percentage shall
Resolution No. 16149
Page 2
be paid from May 1, 1991 on a quarterly basis. Beginning May 1, 1992, the
franchise fee shall increase one-half of one percent (1/2~) annually throughout
the term of the franchise to a maximum of 104. The first quarterly payment shall
be made on August 1, 1991 and shall be for the period commencing May 1, 1991.
Subsequent quarterly payments shall be made at three month intervals thereafter
for the life of the franchise. In the event such payments shall not be made,
said franchise shall be forfeited. Said City Council proposes to grant said
franchise as requested for a period of three years, from May 1, 1991 of the Bay
Cities Services, Inc.'s contract with the Chula Vista ElementarySchool District,
whichever is shorter.
Notice is hereby further given that any and all persons having any
objections to the granting of said franchise may appear before said Council in
the Council Chambers of said City at the hour of 6:00 p.m., or as soon thereafter
as the matter may be called, on Tuesday, May 21, 1991, and be heard thereon.
Notice is hereby further given that at any time not later than the hour so
set for hearing objections any person interested may make written protest stating
objections against the granting of said franchise, which protest must be signed
by the protestant and delivered to the City Clerk of said City and the Council
shall at the time set for hearing said objections, proceed to hear and pass upon
all protest so made. For further particulars, reference is hereby made to said
Exhibit "A", which is the form of franchise ordinance proposed by staff on file
in the office of the City Clerk by order of the City Council of the City of Chula
Vista. Reference to said form of franchise ordinance shall not preclude the City
Council from amending, modifying same, or issuing a completely different
franchise.
Beverly A. Authelet, City Clerk
Resolution No. 16149
Page 3
Exhibit A to Resolution of Intention
Discussion Draft
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF CHULA VISTA GRANTING TO BAY
CITIES SERVICES, INC., ITS SUCCESSORS AND ASSIGNS, A
FRANCHISE TO COLLECT AND DISPOSE OF REFUSE FROM CHULA
VISTA ELEMENTARY SCHOOL FACILITIES AND TO USE THE PUBLIC
STREETS AND PLACES WITHIN THE CITY OF CHULA VISTA FOR
SAID PURPOSE.
The City Council of the City of Chula Vista does ordain as follows:
SECTION I. Definitions.
Whenever in this ordinance the words or phrases hereinafter in this
section defined are used, they shall have the respective meaning assigned to them
in the following definitions (unless in the given instance, the context wherein
they are used shall clearly import a different meaning):
(a) "Grantee" shall mean the Bay Cities Services, Inc. and its lawful
successors or assigns.
(b) "City" shall mean the City of Chula Vista, a municipal corporation
of the State of California in its present incorporated form or in any
later reorganized, consolidated, enlarged or reincorporated form
(c) "Streets" shall mean the public streets, ways, alleys and places as
the same now or may hereafter exist within said city, including state
highways now or hereafter established within said city.
(d) "Gross Receipts" shall mean all gross operating revenues received by
Grantee from the collection and disposal of refuse within the City of
Chula Vista pursuan( to its contract with Chula Vista Elementary School
District for collection and disposal of refuse of District facilities
only.
SECTION II. Purpose.
The franchise to collect and dispose of refuse from Chula Vista Elementary
School District facilities within the City of Chula Vista and to use for such
purposes the public streets, ways and places within said City is hereby granted
to Bay Cities Services, Inc., its successors and assigns.
Resolution No. 16149
Page 4
SECTION III. Term.
Said franchise shall be for the term of three (3) years from and after
June 1, 1991 or the term of Grantee's contract with Chula Vista Elementary School
District, or until the state or some municipal or public corporation duly
authorized by law shall purchase by voluntary agreement all property actually
used and useful in the exercise of said franchise, or until said franchise shall
be forfeited for noncompliance with its terms as provided herein, whichever is
shorter. During such term Grantee shall have the exclusive right to collect and
dispose of all refuse created, accumulated or produced at Chula Vista Elementary
School District facilities within the City of Chula Vista.
To the extent that this franchise is terminated according to the
provisions hereof sooner than the time within which Grantee may otherwise he
entitled by law to notice of termination, Grantee hereby waives any right to said
notice or any claim to damages for failure to receive said notice. In the event
that said waiver may be found to be invalid by a court of law, notice to Grantee
is hereby given that this franchise is terminated on April 30, 1994, or at the
end of such later period of time as the law may require notice to be given as
measured from the effective date of this Ordinance.
SECTION IV. Consideration. -
The Grantee of said franchise shall during the term thereof pay to the
City 7 and 1/2 percent (7 1/24) of the gross annual receipts of said Grantee.
City is authorized to increase said fee up to a maximum amount of ten percent
(10%). Beginning April 1, 1992, the franchise fee shall be increased by one-half
percent (1/24) and one-half percent (1/24) each year thereafter until it reaches
the maximum of ten percent
SECTION V. Reports, Dates of Payment and City Audit.
The Grantee shall file with the Director of Finance of said City on a
monthly basis commencing on June 1, 1991, and monthly thereafter, a duly verified
statement showing in detail the total gross receipts of such Grantee during the
preceding month or fractional month from the collection and disposal of refuse
within said City. Grantee shall pay to said City within fifteen (15) days after
the time of filing of such statement, in lawful money of the United States, the
aforesaid percentage of its gross receipts for such month, or such fractional
month, covered by such statement. Any neglect, omission or refusal by Grantee
to file such verified statement or to pay such percentage at the time and in the
manner specified shall be grounds for the declaration of a forfeiture of this
franchise and all rights of Grantee hereunder. Attorneys fees shall be awarded
to the prevailing party in any litigation brought to enforce any provision of
this section.
Resolution No. 16149
Page 5
SECTION VI. Compliance with Laws.
Grantee shall comply with all laws and regulations of the State of
California and the City of Chula Vista. Further, Chapter 8.24 of the Chula Vista
Municipal Code is expressly made a part of this franchise and incorporated it
herein by reference as if set forth in full. Grantee and City agree to be bound
by all applicable provisions of such ordinance, or any amendments thereto, or
other ordinances that might affect the collection or disposal of refuse in the
City. It is understood that said ordinances are intended to be minimum standards
and that higher standards and regulations may be required under the franchise.
SECTION VII. Obligations of Grantee.
Grantee undertakes and agrees, for the consideration hereinafter
mentioned, to furnish: all labor, equipment, and vehicles {including adequate
equipment and vehicles in a standby capacity to provide the service herein
required in the event of a breakdown of equipment); insurance and bonds necessary
to insure the efficient and timely picking up, collecting, removing and disposing
of refuse; and to collect, pick up, remove and dispose of, all refuse which is
generated or accumulated by or upon all property of Chula Vista Elementary School
District within the City during the time that this franchise is in effect, except
as herein otherwise provided and subject to and in accordance with the terms and
provisions hereof.
The collection and removal of said refuse by Grantee shall be, at all
times during the term of this franchise performed to the satisfaction of the City
Manager or his delegate who shall have the right to issue orders, directions and
instructions to Grantee from time to time with respect to the collection,
transportation, and removal of refuse, the performance of Grantee's services
hereunder, and the Grantee's compliance with the provisions of the ordinances of
the City of Chula Vista as they now exist or may from time to time be amended,
and Grantee agrees to comply therewith. Such collection and removal of refuse
shall be done in a prompt, thorough, lawful and workmanlike manner.
Grantee shall provide collection vehicles and equipment in amounts
adequate to perform in accordance with its contract with Chula Vista Elementary
School District. Collection vehicles, containers, and other contractor furnished
equipment must comply with the standards set forth in the Chula Vista Municipal
Code.
All refuse collected by Grantee shall become the property of Grantee
immediately upon the collection thereof, and shall be forthwith removed and
transported by Grantee to an approved place of disposal, which shall be provided,
arranged for or furnished by Grantee.
In the event, Grantee fails, refuses, or neglects to collect and dispose
of refuse set out or placed for collection at the time and in the manner herein
required, City may collect and dispose of the same or cause the same to be
collected and disposed of and Grantee shall be liable for all expenses incurred
Resolution No. 16149
Page 6
in connection therewith. Such remedy of City shall be cumulative and in addition
to any and all other remedies it may have in the event of such failure, refusal
or neglect of Grantee. The collection and disposal of refuse by City or by
others as aforesaid shall not be deemed an election of remedies which shall
preclude City from availing itself of additional remedies for Grantee's breach
of contract.
SECTION VIII. Rates for Collection.
City and Grantee mutually agree that the rates to be paid by Chula Vista
Elementary School District shall be those established by the competitively bid
contract awarded to Grantee by said District.
SECTION IX. Insurance.
Grantee agrees, at Grantee's own expense, to carry comprehensive public
liability and automobile liability insurance coverage during the full term of
this franchise, with City also named as an additional insured thereunder,
covering liability for bodily injuries, death and property damage, arising out
of or in connection with the operations of Grantee, under this franchise in an
amount not less than $1,000,000 for injuries including death to any one person
and in an amount not less than $5,000,000 for any one accident or occurrence, and
property damage in an amount not less than $200,000. Grantee further agrees to
carry, at Grantee's own expense, workers' compensation insurance in accordance
with the laws of the State of California. All of said insurance policies, or
certificates thereof, shall be deposited by Grantee with the City Manager
together with endorsements or statements from the insuring companies providing
that such policies will not be subject to cancellation, modification or reduction
of the limits of the policy until ninety {90) days after written notice to the
City by registered or certified mail. Such policies shall guarantee payment of
any final judgment rendered against Grantee or the City within the coverage
provided, irrespective of the financial condition of, or any acts or omissions
of, said Grantee. All of said policies shall be subject to the approval of the
City Attorney.
In the event of the termination or cancellation of the insurance required
hereunder or the failure of Grantee to provide such other insurance as
hereinabove provided, prior to the effective date of such cancellation or
termination, this franchise may be suspended or terminated forthwith by City, by
written notice thereof to Grantee. Any such suspension shall be for such period
or periods as the City Manager from time to time may determine. No liability or
obligation shall be incurred by City in favor of Grantee by virtue of any such
notice or notices or from any such suspension or termination. In the event of
such suspension or termination by City upon the failure of Grantee to secure and
maintain on file said insurance during the full term of this franchise, Grantee
shall be liable for any and all damages suffered by City arising out of such
suspension or termination.
Resolution No. 16149
Page 7
SECTION X. Hold Harmless.
Grantee of the franchise granted hereby shall indemnify, save and hold
harmless, City and any officers and employees thereof against and from all
damages, judgments, decrees, costs and expenditures which City, or such officer
or employee, may suffer, or which may be recovered from, or obtainable against
City, or such officers or employee, for, or by reason of, or growing out of or
resulting from the exercising by Grantee of any or all of the rights or
privileges granted hereby, or by reason of any act or acts of Grantee or its
servants or agents in exercising the franchise granted hereby, and Grantee shall
defend any suit that may be instituted against City, or any officer or employee
thereof, by reason of or growing out of or resulting from the exercise by Grantee
of any or all of the rights or privileges granted hereby, or by reason of any act
or acts of Grantee, or its servants or agents, in exercising the franchise
granted hereby.
SECTION XI. Possessory Interest Tax.
To the extent that anything herein contained may require Grantee to pay
a possessory interest tax, the obligation to pay and to provide sufficient
resources to pay said tax shall be solely the obligation of Grantee, and Grantee
shall hold the City harmless with regard thereto.
SECTION XII. Obligations of City.
Grantee hereby expressly acknowledges the authority of the City to
exclusively franchise solid waste removal and disposition for all refuse
generated on all other land uses within the City, including but not limited to
residential, commercial, and industrial, other than that covered by this
agreement.
SECTION XIII. Miscellaneous.
The failure of either party at any time to require performance by the
other of a provision hereof, shall in no way affect the right of such party
entitled to performance to enforce the same thereafter. Nor shall the waiver of
either party of any breach of any provisions hereof be construed to be a waiver
of such provisions or of any succeeding breach thereof.
Any notice that may be given to Grantee under or with respect of this
franchise shall be deemed to have been given when delivered to Grantee or to an
officer of Grantee, personally or when sent to Grantee by registered or certified
mail, postage prepaid, addressed to Grantee at:
Bay Cities Services, Inc.
[insert address]
Resolution No. 16149
Page 8
City reserves the right to determine, in the exercise of its powers to
provide for the public health and welfare, whether technological or other changes
materially affect the necessity of or level of the service provided for
hereunder, and, in such case, the level of service hereunder shall be adjusted
by City, and this franchise shall be reviewed and revised accordingly.
SECTION XIV. Forfeiture.
This franchise is granted upon each and every condition herein contained,
and shall ever be strictly construed against Grantee. Nothing shall pass by the
franchise granted hereby to Grantee unless it be granted in plain and unambiguous
terms. Each of said conditions is a material and essential condition to the
granting of the franchise. If Grantee shall fail, neglect or refuse to comply
with any of the conditions of the franchise granted hereby, and if such failure,
neglect or refusal shall continue for more than thirty (30) days after written
demand by the City Manager for compliance therewith, then City, by the City
Council, in addition to all rights and remedies allowed by law, thereupon may
terminate the right, privilege and franchise granted in and by this ordinance,
and all the rights, privileges and the franchise of Grantee granted hereby shall
thereupon be at an end. Thereupon and immediately, Grantee shall surrender all
rights and privileges in and to the franchise granted hereby. No provision
herein made for the purpose of securing the enforcement of the terms and
conditions of the franchise granted hereby shall be deemed an exclusive remedy
or to afford the exclusive procedure for the enforcement of said terms and
conditions, but the remedies and procedure outlined herein or provided, including
forfeiture, shall be deemed to be cumulative.
SECTION XV. Authority for Grant.
Notwithstanding any other provision herein contained, this franchise is
granted solely and exclusively under Sections 1200, 1201, 1202, 1203, 1204, 1205
and 1206 of Article XII of the Charter of the City of Chula Vista and no other
authority.
SECTION XVI. Effective Date.
This ordinance shall become effective thirty days after its final passage
unless suspended by a referendum petition filed as provided by law.
SECTION XVII. Operative Date.
The operative date of this ordinance shall be 1, 1991.
Resolution No. 16149
Page 9
SECTION XVIII. Publication Costs.
The Grantee of said franchise shall pay to the City a sum of money
sufficient to reimburse it for all publication expenses incurred by it in
connection with the granting thereof; such payment to be made within thirty (30)
days after the City shall have furnished such Grantee with a written statement
of such expense.
SECTION XIX. Written Acceptance.
Notwithstanding the aforereferenced effective date, the franchise granted
hereby shall not become effective until written acceptance thereof shall have
been filed by the Grantee with the City Clerk.1
SECTION XX. Publication.
The City Clerk shall cause this ordinance to be published once within
fifteen (15) days after its passage in the Chula Vista Star News, a newspaper of
general circulation published and circulated in said City.
Presented and Approved as to form by
Bruce M. Boogaard
City Attorney
Resolution No. 16149
Page 10
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula
Vista, California, this 7th day of May, 1991 by the followin9 vote:
AYES: Councilmembers: Moore, Nader, Rindone
NOES: Councilmembers: None
ABSENT: Councilmembers: Malcolm
ABSTAIN: Councilmembers: None
Mayor, Pro-Tempore
ATTEST:
Beverly ~. Authelet, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do
hereby certify that the foregoing Resolution No. 16149 was duly passed, approved,
and adopted by the City Council held on the 7th day of May, 1991.
Executed this 7th day of May, 1991.
~ / -
Beverly A~'Authelet, City Clerk