HomeMy WebLinkAboutOrd 2001-2844 ORDINANCE NO. 2844
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A FIRST AMENDMENT TO
THE AMENDED AND RESTATED SOLID WASTE DISPOSAL
AND RECYCLING SERVICES FRANCHISE AGREEMENT
WITH PACIFIC WASTE SERVICES, PROVIDING FOR A
"VARIABLE RATE" UNIT PRICING STRUCTURE FOR
RESIDENTIAL SOLID WASTE DISPOSAL AND RECYCLING
SERVICES; MODIFYING THE COMMERCIAL/INDUSTRIAL
RATE STRUCTURE TO CREATE ADDITIONAL WASTE
REDUCTION AND RECYCLING INCENTIVES FOR LARGE
COMMERCIAL AND INDUSTRIAL GENERATORS; AND
MAKING OTHER RELATED OR MINOR ADDITIONAL
FRANCHISE MODIFICATIONS
WHEREAS, City is a chartered city within the meaning of California Constitution Article
11, Sections 3 and 5 and has reserved its powers pursuant to California Public Resources Code
Section 40000 et seq. to grant an exclusive solid waste and recyclable franchise; and
WHEREAS, in 1982, pursuant to Article XII of the City Charter and Chapter 8.24 of the
Chula Vista Municipal Code, City granted a solid waste disposal franchise ("Original
Franchise") to Chula Vista Sanitary Service ("CVSS"); and
WHEREAS, since 1982, the original franchise has been amended as follows: (1)
Ordinance No. 2104, adopted February 28, 1985; (2) Ordinance No. 2332, adopted September
12, 1989; (3) Ordinance No. 2427, adopted December 4, 1990; (4) Ordinance No. 2429, adopted
December 11, 1990; (5) Ordinance No. 2475, adopted September 3, 1991; (6) Ordinance No.
2562, adopted July 20, 1993; (7) Ordinance No. 2569, adopted September 21, 1993; and (8)
Ordinance No. 2741 adopted August 11, 1998; and
WHEREAS, on May 12, 1987, pursuant to City Council Resolution No. 13019, City
approved an assignment of the original franchise to Laidlaw Waste Systems, Inc. ("Laidlaw");
and
WHEREAS, on June 17, 1997, pursuant to City Council Resolution No. 18705, City
conditionally approved Laidlaw's assignment of the original franchise, as amended, to Pacific.
One of the conditions of approval was that Pacific enter into negotiations with City staff
regarding various City issues with the franchise prior to September, 1997, when the City was
scheduled to consider Pacific's request for a five-year renewal; and
WHEREAS, on August 26, 1997, pursuant to City Council Resolution No. 18763, City
approved a month-to-month extension of the original franchise pending further City review and
consideration of Pacific's requested five-year renewal; and
WHEREAS, on August 8, 1998, the City Council approved a franchise renewal with
Pacific Waste on the terms and conditions of the current franchise agreement; and
WHEREAS, effective July 1, 1999 City and Pacific entered into that certain Amended
and Restated Solid Waste Disposal and Recycling Franchise Agreement ("original agreement").
The original agreement modified and extended Pacific's exclusive franchise for solid waste
Ordinance 2844
Page 2
disposal and recycling services ("Franchise") within the City. The City Council approved the
original agreement on July 13, 1999, pursuant to its adoption of Ordinance No. 2792.
WHEREAS, Section 7.3.3 of the original agreement required that City and Pacific work
together to develop a "Variable Rate Structure" for "Small Quantity Generator" customers based
on volume of waste generated and automated service. To the extent possible a Variable Rate
Structure was to (1) establish new rates that would not increase Pacific revenues above the then
established corresponding revenue Rate base; (2) give Pacific the benefit of operational
efficiencies: (3) give City the benefit of avoided disposal; and (4) establish operational and
recycling performance milestones that could result in Pacific sharing in the benefits of avoided
disposal. The final decision to implement a Variable Rate Structure was subject to City Council
approval in its sole discretion.
WHEREAS, Pacific and City staff have been negotiating the terms and conditions for a
Variable Rate Structure since shortly after the approval of those negotiations. These negotiations
resulted in the preparation of an amendment to the Franchise ("Amendment").
WHEREAS, this amendment was considered by the City Council at a properly noticed
public hearing on September 18, 2001. Any and all written and oral testimony with respect to
the amendment was heard and considered by the City Council and the City Council approved
placement of the amendment on first reading.
NOW, THEREFORE, the City Council of the City of Chula Vista does hereby ordain as
follows:
SECTION I: The First Amendment to Amended and Restated Solid Waste Disposal and
Recycling Franchise Agreement is hereby approved.
SECTION II: The Mayor of the City of Chula Vista is hereby authorized to execute the First
Amendment agreement on behalf of the City of Chula Vista in substantially the form presented,
with such minor, non-substantive, modifications as may be approved or required by the City
Attorney.
SECTION III: Staff is hereby authorized and directed to prepare and present to the City Council
for approval any and all necessary amendments to Chapters 8.24 and 8.25 of the Chula Vista
Municipal Code in order to implement the Variable Rate program provided for in the
Amendment.
SECTION IV: This ordinance shall take effect and be in full force on the thirtieth day from and
after its adoption.
SECTION V: The City Clerk is hereby directed to publish a summary of this ordinance in a
newspaper of general circulation circulated in the City of Chula Vista.
Ordinance 2844
Page 3
Presented by Approved as to form by
Michael~ql-eacham John M. Kaheny
Conservation Coordinator City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 25th day of September, 2001, by the following vote:
AYES: Councilmembers: Davis, Padilla, Rindone, Salas and Horton
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Shirley Horfon, Mayor
ATTEST:
Susan Bigelow, City Clerk ~
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Ordinance No. 2844 had its first reading at a regular meeting held on the 18th day of September,
2001 and its second reading and adoption at a regular meeting of said City Council held on the
25th day of September, 2001.
Executed this 25th day of September, 2001. ~t~t ~A~t~ -q~q~3_
Susan Bigelow, City Clerk ff