HomeMy WebLinkAboutOrd 1990-2410 NOT APPROVED
ORDINANCE NO. 2410
AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING
ORDINANCE NO. 1993 BY MODIFYING THE TERMS OF LAIDLAW
WASTE SYSTEMS, INC. FRANCHISE TO COLLECT RECYCLABLE
MATERIALS WITHIN THE CITY OF CHULA VISTA AND TO RESELL
SAID MATERIALS
The City Council of the City of Chula Vista does ordain as follows:
SECTION I: That Sections 1 and 2 of Ordinance No. 1993 are amended to
read as follows:
Section 1. 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 Laidlaw Waste Systems, 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 establishing within said City.
(d) "Gross Receipts" shall mean all gross operating revenues received by
Grantee from the collection and disposal of refuse or collection and sale
of recyclable materials.
(e) "Recyclable Materials" or "Recyclables" shall mean newsprint, glass,
aluminum and metal cans, mixed plastics (to include PET and HDPE), and
other such materials as mutually agreed upon in writing by the Grantee
and the City, which are collected by the Grantee pursuant to Section 21.
Ordinance No. 2410 '
Page 2
Section 2. Purpose.
The franchise to collect and dispose of refuse and to collect recyclable
materials 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
Laidlaw Waste Systems, Inc., its successors and assigns.
SECTION II: That a new Section 21 is added to Ordinance No. 1993 to read
as follows:
Section 21. Residential Curbside Recycling Services
Grantee agrees to cooperate with the City in implementing residential
curbside recycling services to all single family homes as follows:
A. Exclusivity The City grants to Grantee the exclusive right to
collect Recyclable Materials deposited at the curbside of single-
family dwellings in such containers ("Designated Recycling
Container"; or alternatively ("Container") as are herein required
to be provided within the City limits, to include all residences
receiving refuse collection and disposal services described in the
following paragraph B.(1). This does not exclude duly licensed
non-profit organizations and community groups from conducting
recycling programs for the purpose of raising funds, nor does it
exclude private individuals from selling or otherwise disposing of
their own recyclable material. However, once materials have been
placed at the curb in a Designated Recycling Container provided by
the Grantee, the material ("Franchised Recyclables") becomes one of
the subject matters of this grant of franchise.
B. Obligations of Grantee
(1) Collection - Grantee shall collect and remove all Franchised
Recyclables which are placed in a Designated Recycling
Container at the curbside on public streets, from all
single-family residences, and all multi-family residences
where such collection at multi-family residences can be
accommodated. Grantee shall collect the Franchised
Recyclables once each week, regardless of weather
conditions. To the extent possible, collection will be on
the same day of the week as the regularly scheduled trash
collection day. Grantee and City will mutually agree to any
changes in collection day. Grantee will notify residents of
any changes in the collection day by distributing a flyer no
later than two weeks prior to the affected day.
Ordinance No. 2410
Page 3
(2) Containers - Grantee shall purchase and distribute recycling
containers to be used by each eligible resident included in
the program. The type and cost of container to be used, or
changes of container type shall be approved by the City prior
to purchase and distribution. Grantee shall retain ownership
of the containers. Each residence eligible to participate in
the program will receive one container. If Grantee
determines that the volume of recyclable material exceeds the
capacity of the one container, additional containers may be
provided at no cost to the resident. Replacement of
containers that are stolen and/or damaged may be made at no
cost to the resident at Grantee's discretion. Grantee will
be responsible for keeping records and making them available
to the City regarding additional containers requested, and
the reason for the request, e.g. damaged, stolen, needed to
handle residence recyclables beyond capacity of one container.
(3) Transportation of Materials Grantee shall transport
collected recyclable materials to a central collection point
and shall retain responsibility for the sale of such
materials in a timely and efficient manner, so as to yield
the highest possible market value for the material.
(4) Missed Pick-Ups - In case of a missed pick-up called in by a
G shall, where possible, provide collection
resident, rantee
within 24 hours. If unable to acconmnodate due to inadequate
notice, the materials shall be picked up on the next
scheduled collection day and resident is to be so notified.
Information on missed pick-ups shall be logged by Grantee and
shall be available to the City.
(5) P.H~lic Awareness Program The Grantee will prepare an
Introductory Packet of information regarding the Citywide
Single-Family Curbside Recycling Program, approved in advance
by the City, and will distribute such packet with the
recycling containers to each eligible residence. The packet
shall include, but not be limited to: a) An informational
brochure that details the program elements and describes how
they can participate; and b) doorknob hangers or other
methods encouraging use of the recycling container and
explaining the program.
The Grantee will assist with media events, make presentations
to community groups and businesses on an as needed basis, and
attend County wide meetings related to recycling, speaking on
the City's Curbside Recycling Program if needed. The Grantee
Ordinance No. 2410
Page 4
also agrees to assist in developing incentives to increase
participation and tonnage collected, and to encourage
involvement of community and youth groups.
n local manager charged with the
responsibility for supervision of the recycling operations
and obligations of the Grantee.
C. Obligations of City The City shall participate in the Public
Awareness Program as provided in paragraph B.(5) and agrees to take
such steps as may be reasonably necessary to protect recyclable
materials placed at the curbside for collection by Grantee under
the terms of this Agreement and shall deliberate upon the merits of
enacting and reasonably enforcing an anti-scavenging ordinance.
D. Funding and Rates for Collection
(1) Funding Sources - The residential curbside collection program
will be funded by four sources: a monthly recycling fee to
all eligible residents; revenue from the sale of collected _
recyclable material; savings in disposal cost of material
diverted from the landfill; and grant funds when available
and awarded.
(a) A monthly recycling fee charged to eligible residents
is the primary source of funding for this program. In
general, it will be allocated equally among the
customer base and will be determined by the Grantee's
operating expenses directly attributable to the
recycling program, less: revenue received from the
sale of collected recyclable material, the savings
realized in disposal costs of material diverted from
the landfill, and application of grant funds. Specific
fee information is outlined in paragraph D.(2) below.
(b) All collected recyclable material will be sold at fair
market value and revenues obtained from such sales
shall be retained by Grantee as an offset against
operating expenses.
(c) Recyclable materials collected in the program will be
diverted from disposal in the landfill, thereby
resulting in a cost savings to Grantee ("Landfill
Diversion Credit"). On a monthly basis, Grantee will
determine the recycled material tonnage collected and
the resulting Landfill Diversion Credit and will credit '
Ordinance No. 2410
Page
this savings during the first year of operation as an
offset against operating expenses. When reevaluating
program costs in subsequent years, the City agrees to
consider Landfill Diversion Credits of less than lO0~.
The amount will be subject to negotiation and the
intent is to provide an economic incentive for the
Grantee towards increased participation and program
Success.
(d) Any grant funds received will be applied to the capital
costs of the program when received or during the next
rate review procedure, with the intent of directly
reducing the monthly fee to the homeowner.
(2) Rates for Collection - It is the City's intent to ensure that
the rates charged to the citizens for the recycling program
are appropriate and equitable. Based on experience gained in
the City's pilot curbside and other recycling programs, the
recycling fee for the first period of operations will be
$1.25 per month, billed quarterly in the same manner as the
trash collection fee. The monthly fee of $1.25 per residence
will be the established fee for the period beginning January
l, 1991 through March 31, 1992.
Specific rate review procedures will be prepared by the City
and will be used with the concurrence of the Grantee in
consideration of all requests for rate adjustments by the
Grantee. Rate review will include adjustments for actual
sale of materials and landfill diversion credits in previous
period compared to original estimated amounts. Shortfalls or
overages will be used in determining rates for upcoming
periods. Rate review will be conducted annually beginning in
January 1992, and will be concluded prior to the notification
deadline for the 45 day notice of the annual CPI increase for
refuse collection as referenced in Section 9 of the franchise
as amended by Ordinance No. 2104, Rates for Collection. An
increase in rates for recycling services will be subject to
the same limitations and conditions for refuse collection
rates listed in Section 9.
By amending Chapter 8.24 of the Chula Vista Municipal Code,
the City may establish a program for preferential rates for
senior citizens or other classifications which are deemed to
be in the public interest. The program parameters and rate
structure will be determined by the City with the concurrence
of the Grantee. All changes to a preferential rate will be
Ordinance No. 2410 "
Page 6
subject to the rate review and notification procedures
referenced in this paragraph as well as the limitations and
conditions for refuse collection rates listed in Section of
Ordinance No. 2104.
E. Reports Grantee shall file with the City written quarterly and
annual reports of Grantee's performance under this agreement as
follows:
(1) quarterly Project Reports - Within fifteen (15) working days
after the last davy of each quarter, Grantee shall submit a
quarterly project report to include but not be limited to the
following:
(a) Summaries of tonnage of all recyclable materials
recovered, by material.
(b) Summaries of tonnages of all recyclable materials sol d,
by material.
(c) Market price for all recyclable materials collected
from the curbside and sold by Grantee. The weight
receipts shall be available for inspection by the City.
(d) Resident participation rates in terms of weekly set-out
counts,
(e) Overa]l assessment of performance during the quarter.
(f) Discussion of problems and noteworthy experiences in
program operation.
(g) Recommendations to increase tonnage of recyclable
materials recovered.
(2) Annual Report - On or before July 31 of each year of the term
of this agreement, Grantee sha]l submit a fiscal year-end
annua] report to include but not be limited to the fol]owing:
(a) A collated summary of the information contained in the
quarterly reports, and a summary of the participation
rates and tonnages of recovered material.
(b) A report of public awareness activities and their
impact on participation and recovered volumes.
Ordinance No. 241 0
Page 7
{c) A report of highlights and other noteworthy
experiences, measures taken to resolve problems,
increase efficiency and household participation.
{d) Additional information as necessary to meet State
and/or Federal mandated reporting requirements.
F. Performance Standards This Agreement for curbside recycling
services is subject to the performance standards and franchise
conditions detailed in Section 14 Forfeiture of the franchise,
{Ordinance No. 1993). While it is the 'intent of Section 21 to
describe specific recycling collection services to be provided by
the Grantee in addition to existing refuse collection and disposal
services, Grantee agrees that acceptable performance of recycling
services will be considered severable from this agreement.
G. Additional Franchise Fee - The Grantee, as part of the
consideration of this agreement, agrees to pay to the City an
additional franchise fee at a rate consistent with that paid for
refuse collection and detailed in Section 4 Consideration of the
franchise, as amended by Ordinance 2104. This rate will begin at
seven percent {7%) of the annual receipts collected by said Grantee
within the City of Chula Vista from residents for the recycling
program within the City. Beginning April 1, 1991, the franchise
fee shall be increased by one-half percent {1/2%) and one-half
percent 11/2%) each April thereafter until it reaches a maximum of
ten percent. It is understood that any increase in the franchise
fee by the City shall be cause for the Grantee to increase charges
in order to "pass through" the cost of the franchise fee.
H. Term - It is the intent of the City that the term for the provision
of Residential Curbside Recycling Services shall coincide with the
term for refuse collection services outlined in Section 3 of
Ordinance 2104, given acceptable performance pursuant to paragraph
F of this section.
I. Recycling Program Expansion - It is the City's intention to develop
a comprehensive recycling program to reduce the amount of material
being disposed of in County landfills and to comply with the
mandates of the California Integrated Waste Management Act of 1989
(AB 939). Both parties hereby agree to expand the recycling
program within eighteen months to include yard wastes (composting),
multi-family units, and commercial and industrial waste streams.
It is further agreed that separate amendments to the agreement for
refuse collection and disposal will be negotiated between the City
and the Grantee to implement these programs. If City and Grantee
cannot mutually agree on the terms of said amendments, City retains
the right to put these elements out to bid.
Ordinance No. 2410 --
Page 8
SECTION III: This ordinance shall take effect and be in full force and
effect on the thirtieth day from and after its adoption.
Presented by Approved as to form by
Stephanie Popek Bruce M. Boogaard
Principal Management Assistant City Attorney