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HomeMy WebLinkAboutOrd 1990-2427 ORDINANCE NO. 2427 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 l: 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 Material s" 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. 2427 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 2: That a new Section 21 is added to Ordinance No. 1993 to read as follows: Section 21. Residential Curbside Recycling Services Grantee agrees to implement 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. Grantee shall collect the Franchised Recyclables once each week, regardless of weather conditions. 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. 2427 Page 3 2. Containers Grantee shall purchase and distribute recycling containers to be used by each eligible residential customer 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 recycl able material exceeds the capacity of the one container, additional containers shall be provided at no cost to the resident. Replacement of containers that are stolen and/or damaged shall 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 resident, Grantee shall, where possible, provide collection within 24 hours. If unable to accommodate 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. Public 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 Ordinance No. 2427 ' Page 4 Curbside Recycling Program if needed. The Grantee also agrees to assist in developing incentives to increase participation and tonnage collected, and to encourage involvement of community and youth groups. The Grantee and the City agree that the main purpose of an aggressive public education program is to increase participation and diversion. Beginning in the second year, if, in the City's judgment, it is reasonably determined that the public education effort has not resulted in high enough program interest, the Grantee will perform reasonable public education activities at the City's direction at a cost not to exceed $.10 of the monthly billing. 6. Local ~anager - The Grantee shall at all times during the term of this agreement have a local manager charged with the responsibility for supervision of the recycling operations and obligations of the Grantee. C. Obligations of City - The City shall have lead responsibility for directing the development and expenditures of the Public Awareness _ Program as provided in paragraph B.(5). The City also 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 receiving said recycling service 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. Ordinance No. 2427 Page 5 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 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 100%. 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 costs of the program when award is noticed or during the next rate review procedure if the award takes place once a specific rate has been determined, 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 $1.10 per month, billed quarterly in the same manner as the trash collection fee. The monthly fee of $1.10 per residence will be the established fee for the period beginning February l, 19gl 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 sate of material s 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. Ordinance No. 2427 ' Page 6 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 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 day 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 sold, 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. Overall 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 shall submit a fiscal year-end annual report to include but not be limited to the following: Ordinance No. 2427 Page 7 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. 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 (1/2%) 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 be to the year 2002, subject to a two year notice of cancellation by the City without cause which cannot be tendered sooner than the end of the third year. The services remain cancellable for cause at any time. 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 Ordinance No. 2427 Page 8 of the California Integrated Waste Management Act of 1989 (AB 939). Both parties hereby agree that the City may not go out to bid for the expansion of this recycling program to other land uses (e.g., multiple family, commercial, industrial) or other recyclable materials (e.g., yard waste, etc.) until after the City has met and conferred with Grantee with regard to its intent to do so. If separate amendments to the agreement for refuse collection and disposal are not negotiated between the City and the Grantee, the City may go out to separate bid. SECTION 3: 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 Ordinance No. 2427 Page 9 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 4th day of December, 1990, by the following vote: AYES: Councilmembers: McCandliss, Malcolm, Moore, Nader, Rindone NOES: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None / ~a 1 L M y .e . cCandliss, Mayor 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 Ordinance No. 2427 had its first reading on November 27, 1990, and its second reading and adoption at a regular meeting of said City Council held on the 4th day of December, 1990. Executed this 4th day of December, 1990.