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HomeMy WebLinkAboutReso 1989-15288 RESOLUTION NO. 15288 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA OF INTENTION TO GRANT A FRANCHISE FOR REFUSE COLLECTION AND DISPOSAL TO EDCO DISPOSAL CORPORATION The City Council of the City of Chula Vista does hereby resolve as follows: WHEREAS, EDCO Disposal Corporation requested that a ~rancnise be granted to it of the character and for the purposes mentioned in the ~orm 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 ~e public health, safety, and well being require a wholly ~xclusive 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 EDCO Disposal Corporation 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", 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: -1- NOTICE OF INTENTION TO GRANT FRANCHISE NOTICE IS HEREBY GIVEN that EDCO Disposal Corporation L~as 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 Sweetwater Union High School District facilities in the City of Chula Vista. If said franchise shall De granted to it, said EDCO Disposal Corporation, its successors and assigns, hereinafter designated Grantee, shall during the life thereof pay to said City 6-1/2% of the gross annual receipts of said Grantee arising from the use, operation, and possession of said franchise. Said percentage shall be paid from September 1, 1989 on a quarterly basis. Beginning April 1, 1990, the franchise fee shall increase one-half o£ one percent (1/2%) annually throughout the term of the franchise. The first quarterly payment shall be maOe on October 1, 1989 and shall be £or the period commencing September 1, 1989. 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, ~rom September 1, 19~9, or the term of EDCO Disposal Company's contract with the Sweetwater Union High School District, whichever is shorter. Notice is hereby further given that any and all persons .aving any objections to the granting of said franchise may appear before said Council in the Council Chambers of said City at the hour o£ 7:00 p.m. on Tuesday, the 26th of September, 1989, 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 on file in the office of the City Clerk by order of the City Council of the City of Chula Vista. B~A. iUthelet, City Clerk Presented and Approved as to form by 6187a EXHIBIT "A" ORDINANCE NO. AN ORDINANCE OF THE CITY OF CHULA VISTA GRANTING TO EDCO DISPOSAL CORPORATIONt ITS SUCCESSORS AND ASSIGNS, A FRANCHISE TO COLLECT AND DISPOSE OF REFUSE 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 1. Definitions. Whenever in this ordinance the words or phrases hereinafter in this section defined are used, they shall have the respective meanzng assigned to them in the following definitions (unless in the given instance, the context wherein they are used snail clearly import a different meaning): (a) "Grantee" shall mean the EDCO Disposal Corporation 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 pursuant to its contract with Sweetwater Union High School District for collection and disposal of refuse of District facilities only. SECTION 2. Purpose. The franchise to collect and dispose of refuse from Sweetwater Union High School District facilities within the City ot Chula Vista and to use for such purposes the public streets, ways and places within said City is hereDy granted to BDCO Disposal Corporation, its successors and assigns. SECTION 3. Term. Said franchise shall De for the term of three (3) years ~om and after SeptemDer it 1989 or the term of Grantee's 3ntract with Sweetwater Union High School District, whichever is shorter, or until the state or some municipal or public --orporation duly authorized by law shall purchase by voluntary reement all property actually used and useful in the exercise of said franchise, or until said franchise shall De forfeited for noncompliance with its terms as provided herein. During such term Grantee shall have the exclusive right to collect and dispose of all refuse created, accumulated or produced at Sweetwater Union High School District facilities within the City of Chula Vista. SECTION 4. Consideration. The Grantee of said franchise shall during the term thereof pay to the City six and one-half percent (6-1/2%) of the gross annual receipts of said Grantee. City is authorized to increase said fee up to a maximum amount of eight percent (8%). Beginning April 1, 1990, the franchise fee shall be increased by one-half percent (1/2%) and one-half percent (1/2%) each year thereafter until it reaches the maximum of eight percent (8%). SECTION 5. 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 October 1, 1989, and monthly thereafter, a duly verified statement showing in detail the total gross receipts of such Grantee during the preceding ~onth or fractional month from the collection and disposal of ~.fuse within said City. Grantee shall pay to said City within _lfteen (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 Dy such statement. Any neglect, omission or refusal Dy 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. SECTION 6. Compliance with Laws. Grantee snail comply with all laws and regulations of the State of California and the City of Chula Vista. Further, Chapter 8.24 of the Cnula 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 applicaDle 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 7. Obligations of Grantee. Grantee undertakes and agrees, for the consideration ereinafter mentioned, to furnish: all labor, equipment, and vehicles (including adequate equipment and vehicles in a standby ~apacity to provide the service herein required in the event of a eakdown of equipment); insurance and bonds necessary to insure une 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 Sweetwater Union High 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 snail De, at all times during the term of this franchise performed to the satisfaction of the City Manager or his delegate who shall nave the right to issue oraers, 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 De 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 3ith Sweetwater Union High School District. Collection vehicles, ~ntainers, and other contractor furnished equipment must comply .lth 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 De 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 De liable for all expenses incurred in connection therewith. Such remedy of City shall De 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 Dy City or by others as aforesaid shall not De deemed an election of remedies which shall preclude City from availing itself of additional remedies for Grantee's breach of contract. SECTION 8. Rates for Collection. City and Grantee mutually agree that the rates to be ' ~id Dy Sweetwater Union High School District shall be those staDlished by tne competitively bid contract awarded to Grantee by said District. SECTION 9. Insurance. Grantee agrees, at Grantee's own expense, to carry ~omprenensive public liability and automobile liability insurance coverage during the full term of this franchise, with City also nameO 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 De 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 snail guarantee payment of any final juOgment 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 ~surance required hereunder or the failure of Grantee to provide uch other insurance as hereinabove provided, prior to the effective hate 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. SECTION 10. 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 De recovered from, or obtainable against City, or such officers or employee, for, or by reason of, or Wrowing out of or resulting from the exercising by Grantee of any or all of the rights or privileges granted hereby, or by reason f any act or acts of Grantee or its servants or agents in xercising the franchise granted hereby, and Grantee shall defend any suit that may be instituted against City, Or any officer or ~mployee thereof, by reason of or growing out of or resulting om the exercise Dy 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 11. Obligations of City. Except as herein otherwise provided, Grantee shall have the sole right to pick up, gather, and remove refuse generated by Sweetwater Union High School facilities within the City until such time as this franchise is terminated as herein provided. City will not let any contract to, or enter into any contract with, any other person, firm, or corporation for the performance of the services herein required to be performed by Grantee, except as expressly otherwise herein provided, as long as this franchise is in effect City shall protect Grantee's rights to such exclusive contract by proper ordinances, and by reasonable enforcement thereof. Grantee hereby expressly acknowledges the exclusive franchise of City for all residential, commercial, and industrial refuse other than that covered by this agreement. SECTION 12. Miscellaneous. The failure of either party at any time to require ~erformance 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 De given to Grantee under or with respect of this franchise shall be deemed to nave been given when aelivered 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: EDCO Disposal Corporation 6670 Federal Blvd. Lemon Grove, CA 92045 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 De adjusted Dy City, and this franchise shall be reviewed and revised accordingly. SECTION 13. Forfeiture. This franchise is granted upon each and every condition -5- herein contained, and snail ever he strictly construed against ~ranteeo Nothing shall pass by the franchise granted hereby to antee unless it be granted in plain and unambiguous terms. ~ach 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, anO 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 Oy 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 torfeiture, shall De deemed to be cumulative. SECTION 14. Authority for Grant. Notwithstanding any other provision herein contained, this franchise is granted solely and exclusively under Sections j200, 1201, 1202, 1203, 1204, 1205 and 1206 of Article XII of ]e Charter of the City of Chula Vista and no other authority. SECTION 15. 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 16. Operative Date. The operative date of this ordinance shall be September 1, 1989. SECTION 17. 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 De made within thirty (30) days after the City shall nave furnished such Grantee with a written statement of such expense. SECTION 1~. Written Acceptance. The franchise granted hereby shall not become effective ntil written acceptance thereof shall have been filed by the rantee with the City Clerk. SECTION 19. Publication. The City Clerk shall cause this ordinance to be Fublished once within fifteen (15) days after its passage in the Cnula Vista Star News, a newspaper of general circulation puDlished and circulated in said City. Presented and Approved as to form by Assistant City Attor~y_j 6188a Resolution 15288 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 5th day of September, 1989 by the following vote: AYES: Councilmembers: Malcolm, McCandliss, Moore, Nader, Cox NOES: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None Gre R. Cox, Mayor ATTEST: . . rkC t 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. 15288 was duly passed, approved, and adopted by the City Council of the City of Chula Vista, California, at a regular meeting of said City Council held on the 5th day of September, 1989. Executed this 5th day of September,1989. ever y ~. u ~ et, City Clerk ......... I"2_