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HomeMy WebLinkAboutOrdinance 5395 06/22/1987 ORDINANCE NO. 5395 (SPECIAL) AN ORDINANCE REGARDING THE EXCLUSIVE GARBAGE COLLECTION FRAN- CHISE OF THE CITY OF SPRINGFIELD, REQUIRING THE FRANCHISEE TO PROVIDE THE OPPORTUNITY TO RECYCLE IN ACCORDANCE WITH ORS 459 . 165-459 . 200 AND 459 .250 , EXTENDING THE FRANCHISE TO PROVIDE FOR A FIVE YEAR ROLLING RENEWAL, AMENDING ORDINANCE NO. 3164 (SPECIAL) AND ORDINANCE NO. 2366 (SPECIAL) AND DECLARING AN EMERGENCY. THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD DOES ORDAIN: Section 1 : Previous Ordinances . Ordinance no. 2366 ( Special ) approved February 10 , 1969 granted to Springfield Sanitary Service , an Oregon corporation doing business in Springfield, Oregon , the exclusive right, franchise and privilege of collecting and hauling over the streets of the City of Springfield, all garbage and refuse as defined in Article 4-2-1 of the Springfield Code , 1965 and that franchise was extended by Ordinance no . 3164 (Special ) approved May 5 , 1975 for the period from March 1 , 1979 until March 1 , 1989 . Sani-Pac Oregon Ltd. is the successor business entity to Springfield Sanitary Service. Unless specifically amended or modified herein, those previous ordinances shall remain in full force and effect. Section 2 : Grant of Franchise. It is hereby granted to Sani- Pac Oregon Ltd. , an Oregon corporation, doing business in Spring- field, Oregon, hereinafter referred to as "Franchisee" , the exclusive right , franchise and privilege of collecting and hauling over the streets within the City of Springfield all garbage and refuse as defined in Article 4-2-1 of the Springfield Code 1965 . Section 3 : Exceptions to Grant of Franchise. (1 ) The exclusive right , privilege , and franchise granted under Section 2 is subject to the following exceptions : (a) A person may transport solid waste which such person produces , directly to an authorized disposal site or recycling or resource recovery facility; Provided How- ever , the solid waste produced by tenant , licensee , occu- pant or person other than the owner of the leased, occupied or licensed premises may be considered produced by the landlord or property owner ; but provided further , owners or groups of owners may not join for the purpose of commer- cially transporting solid waste from properties of differ- ing ownership. (b) A person may contract with the State or a federal agency to provide service to such agency under a written contract with such agency. 1 Ordinance No. 5395 Page 2 (c ) A person may engage in the practice of towing or otherwise removing damaged, discarded or abandoned vehicles or parts thereof, so long as such activity is conducted in compliance with applicable state and local laws . (d) A person may engage in the practice of pumping, transportation, and disposal of septic tank and cesspool pumpings or other sludge , provided such activity is conduc- ted in compliance with applicable state and local laws . (e) A person who engages in an occupation , such as gardener , landscaper , grounds keeper , or construction contractor for a property owner or tenant in the City and who produces thereby small volumes of solid waste as a result of such work for a property owner or tenant in the City may transport such solid waste in such person' s own equipment where the solid waste produced is incidental to the particular job the person is performing. Section 4: Fee . In consideration of the granting of the priv- ilege , right and franchise , the Franchisee hereby agrees to pay the City of Springfield a franchise fee equal to three percent of its gross receipts less that portion of user fees collected for remittance to Lane County and that franchise fee is to be computed from an annual certified financial statement from the franchise holder , setting forth the number of residential and commercial accounts in its franchise area and the receipts received therefrom. City shall have upon reasonable notice right of access to Fran- chisee ' s accounts and records relating to the collection of solid waste in Springfield. Section 5: Additional Fee , Free Service to City. As further and additional compensation, the Franchisee shall remove all garbage and miscellaneous refuse from the following administrative buildings and offices of the City of Springfield: the City Hall/Library/Museum complex, maintenance shops , fire stations , the police and court administration buildings, and other administrative offices . Section 6 : Opportunity to Recycle Must be Provided. As a condition of the rights , privilege and franchise given hereunder , the Franchisee shall be required to provide all customers within the City of Springfield with the opportunity to recycle and must. comply with the requirements of Senate Bill 405 ( 1983) as now incor- porated in the Oregon Revised Statutes Chapter 459 . 165-459 . 200 and 459 .250 together with all applicable rules and regulations promul- gated thereunder by the State of Oregon Department of Environmental Quality. Section 7 : Term. The rights , privilege and franchise herein granted to Franchisee shall be commenced on the 1st day of October , 1987 , and shall be considered as a continuing five (5) year fran- chise. That is beginning on October 1 of each year , the franchise 2 Ordinance No. 5395 Page 3 will be considered renewed for an additional one ( 1 ) year term, unless at least thirty ( 30) days prior to October 1 of any year the City shall notify Franchisee in writing of the intent to terminate the franchise. Upon the giving of such notice of termination , the Franchisee shall have a franchise which will terminate five ( 5) years from the date of notice of termination. After such notifica- tion the City may extend the term or reinstate the continuing renewal upon mutual agreement with the Franchisee. Nothing in this section restricts the City of suspending, modifying or revoking the franchise for cause pursuant to Section 14 of this franchise. Section 8 : Annexed Areas . The rights and privileges of this franchise shall not extend to any future additions to the City of Springfield except that this franchise shall automatically extend to include annexed areas to the City of Springfield at such time as the Franchisee shall have as customers 100% of the customers having garbage collection service in said area ; said area shall thereupon be covered and governed by this franchise held by the Franchisee and granted hereby. Section 9 : Termination by Franchisee. In the event the Fran- chisee shall desire to terminate service given under the terms of this franchise , then it shall give not less than two years ' notice of the intent to terminate service and obligations under the fran- chise. In the event of a voluntary termination of service by the Franchisee , the City shall have a right and option to purchase all or any part of the equipment of the Franchisee at a price which will be agreed upon between the parties . If the parties cannot agree to a purchase price , then the same shall be submitted to arbi- tration. Each party shall select one arbitrator and the two arbitra- tors selected shall select a third party, and the three arbitrators shall determine a fair and equitable price to be paid by the City to the Franchisee for all equipment to be purchased. The costs of arbitration shall be borne equally. Section 10 : Indemnification. Franchisee shall defend, indem- nify and hold harmless the City from and against any and all claims , suits , causes of action, loss or liability arising out of or related to any activity of Franchisee , its agents and employees in the per- formance of this franchise. Section 11 : Emergency Service by City. The Franchisee agrees as a condition of holding the franchise , that whenever the City Council determines that the failure of service or threatened failure of service would result in the creation of an immediate and serious health hazard, the City may, after a minimum of twenty-four (24) hours ' written notice to the Franchisee , and a public hearing if requested by the Franchisee , authorize City personnel or other per- sons to temporarily provide the service or to use and operate the land, facilities and/or equipment of Franchisee. The City may authorize expenses which are necessary to provide the service which Franchisee is required to provide under this franchise. The City shall return any seized property and the business of Franchisee , upon abatement of the actual or threatened interruption of service. 3 Ordinance No. 5395 Page 4 If City is required to perform the services pursuant to this Paragraph, City may bill Franchisee for the cost of providing the same and Franchisee shall reimburse the City for the actual cost of providing the services within ten ( 10) days after receipt of the City' s bill . In the event Franchisee fails to reimburse the City within ten ( 10) days after receipt of the City' s cost bill , City may employ all rights and remedies to which it may be entitled under law to secure payment of the cost bill . Franchisee shall be entitled to all customer account income arising from the provision of the service by the City or other per- sons pursuant to this Section. Section 12 : Franchisee Assistance to Beautification Activities. Franchisee agrees , as a condition to holding the franchise , to assist City in clean-up and beautification activities by supplying free drop-boxes to City on the following terms : ( 1 ) Franchisee agrees to provide a total of ten (10) drop-boxes to City during each calendar year for a period not to exceed seventy-two (72) hours for each drop-box, which shall be used by City for refuse collection. (2) Franchisee , upon forty-eight (48) hours ' notice by City, shall deliver each box to the site specified by City, and at the end of the seventy-two (72) hour period, Fran- chisee shall have the right to remove the drop-box and dispose of the material contained in the drop-box at a location of Franchisee ' s choice. ( 3) City shall be responsible for obtaining a waiver of dump fees from Lane County, or paying of such dump fees if Lane County will not waive the dump fees for the ten (10) drop-boxes . All other costs of delivery and removal of the boxes shall be Franchisee ' s costs . (4) Franchisee ' s responsibility for the delivery and removal of the ten ( 10) drop-boxes shall be limited to the period from November 1 through March 31 of the following calendar year , during the -term of Franchisee ' s franchise. It is understood that if the City requests five (5) or fewer drop-boxes at any one time , Franchisee will probably be able to provide that number at any time during the calendar year. Section 13: Sanitary Trucks. All trucks for the collection of garbage and refuse used and operated by the Franchisee shall be packer-type enclosed trucks , and shall be designed to be water- tight and drip-proof, so that no garbage or waste water may at any time spill or drip upon the streets of the City. All equipment used by the Franchisee shall be kept and maintained in a clean and unoffen- sive manner and shall be thoroughly washed, at least once a week or as often as directed by the health officer of the City. It is under- 4 Ordinance No. 5395 Page 5 stood and agreed that the Franchisee shall add to its equipment as it may become necessary in order to properly and in a sanitary manner collect the garbage and refuse within the City limits and to trans- port the same as herein provided, and there shall at all times be sufficient equipment to comply with the terms of this franchise. All storage , collection, transportation and disposal of solid waste shall conform to the applicable requirements of Oregon Revised Chapter 459 and regulations promulgated thereunder by the State Department of Environmental Quality. Section 14: Termination by City for Cause. In addition to the provision for termination of the franchise as provided in Section 7 , it is also understood and a condition of this franchise that should the Franchisee fail , neglect or refuse to perform any of the terms , provisions or stipulations of this agreement by him to be performed, then after providing appropriate notice to the Fran- chisee and time to correct the failure or in the event of neglect or refusal to perform by Franchisee , the City shall have the right to cancel this agreement and franchise. Such cancellation may be car- ried out by the City in the event that there are any repeated uncor- rected violations of this franchise , and such cancellation shall be accomplished in the following manner : The City Manager shall keep a record in writing of repeated uncorrected violations, and shall at such time as in his discretion the same is warranted, call for an explanation thereof by the Franchisee to the Common Council and thereupon, if the Common Council at its own sole discretion shall deem it in the best interests of the City that this franchise be cancelled, then the same shall be forthwith cancelled by the Council by nothing further than a resolution to that effect , and such find- ings and actions on the part of the Council shall be conclusive. It is further understood that continued repeated violations even though corrected, shall constitute evidence of bad faith on the part of the Franchisee , and shall in and of itself be sufficient basis for the City Manager to call upon the Franchisee for an explanation before the Council in the manner above stated to the end that this franchise may thereupon be cancelled. Section 15 : Rates . Rates for the collection of garbage and refuse within the City limits shall be paid and collected as provided in Article 4-2-5 of the Springfield Code 1965 . Section 16: Rate Stability. ( 1 ) The Franchisee may, not later than June 30th of any calendar year , apply for an adjustment in rate. (2) In determining rates the City may give due consider- ation to all relevant factors including, but not limited to , the following: (a) Rates charged by collection services in other Oregon cities ; 5 Ordinance No. 5395 Page 6 (b) The most recent January Consumer Price Index (CPI-W) for Portland, Oregon; (c) The current schedule of any rates required by Lane County; and (d) Proposals made by Franchisee regarding an appro- priate rate schedule. ( 3) Non-scheduled services may be provided for a reason- able charge by Franchisee . (4) Rate adjustments may be made not more often than once per calendar year , provided, however : (a) A supplemental rate adjustment may be requested when the cost of service is increased or decreased by governmental or environmental regulations in compliance therewith; and (b) Disposal cost established by a unit of local government having jurisdiction may be immediately passed on to customers . Section 17 : Annual Report . The Franchisee shall submit not later than August 15th of each year during the term of this franchise to the City of Springfield an annual report regarding the franchise operations which shall include the following: (1 ) Activities in compliance and furtherance of the oppor- tunity to recycle ; (2) Number of customers and changes in number of customers from previous report ; ( 3) Number of delinquent accounts and methods for collec- tion; (4) Number of complaints received regarding service and the resolution of those complaints ; (5) Any changes in equipment or disposal and dumping facility or sites ; (6) Summary of assistance to City beautification efforts ; and (7) Accidents or problems encountered in providing the franchise service. Section 18 : Transfer. Franchisee shall not transfer this franchise in any way or any interest therein or transfer any owner- ship interest in the franchise , including but not limited to the 6 Ordinance No. 5395 Page 7 transfer of Franchisee stock without the prior written approval of the City, which consent shall not be withheld if the proposed trans- feree meets all the requirements imposed by this franchise and appli- cable requirements of the municipal code relating to sanitation. Section 19 : Insurance. Franchisee shall provide a certificate of insurance to the City demonstrating comprehensive general liabil- ity and automobile liability coverage in the combined single limit of $2 ,000 , 000 bodily injury and property damage with the City as a named additional insured. Section 20 : Emergency Clause. The Common Council of the City of Springfield does hereby declare that the pickup and collection of garbage and refuse in the City of Springfield is a measure affect- ing the general welfare and health of the City of Springfield and declares therefore that the same constitutes an emergency and that this ordinance shall take effect immediately upon its passage by the Common Council and approval by the Mayor. Adopted this 22nd day of ,lunP , 1987 , by a vote of 6 for and p against. Adopted by the Mayor of the City of Spri g' ield this 22nd day of June , 1987. A hyo i /i ATTEST: (/ rCity Recorder ACCEBD this 22nd day of June , 1987 Franchisee REVIEWED & APPROVED ATO FORM DATE: e \`‘v1 OFFICE OF CITY ATTORNEY CITY OF SPRINGFIELD 7