HomeMy WebLinkAboutOrdinance 6011 05/20/2002
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ORDINANCE NO. 6011 (SPECIAL)
AN ORDINANCE REGARDING THE EXCLUSIVE GARBAGE COLLECTION
FRANCHISE OF THE CITY OF SPRINGFIELD, TO PROVIDE FOR AN INCREASED
FRANCHISE FEE, AND RESTATING THE FRANCHISE, AMENDING ORDINANCE NO.
5395 (SPECIAL), AS AMENDED BY ORDINANCE NO. 5621 (SPECIAL).
THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD ORDAINS AS FOLLOWS:
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, and was further extended for a rolling
five year period by Ordinance 5395(Special), approved June 22, 1987, and thereafter further
amended by Ordinance No. 5621(Special), approved March 16, 1992, Sanipac, Inc, is the
successor business entity to Springfield Sanitary Service. This Ordinance fully restates the entire
franchise granted by the City of Springfield and all prior ordinances are hereby repealed and of
no further force and effect.
Section 2: Grant of Franchise.Jt is hereby granted to Sanipac, Inc., an Oregon corporation,
doing business in Springfield, 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 Section 4.400, et seq., of the Springfield Municipal Code. .
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, however, the
solid waste produced by tenant, licensee, occupant 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 commercially transporting solid waste from properties of differing 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.
( 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 conducted
in compliance with applicable state and local laws.
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(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 equip-
ment 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 privilege, right and franchise, the
Franchisee hereby agrees to pay the City of Springfield a franchise fee, payable quarterly, equal
to six percent of its gross receipts, effective July 1, 2002, and seven percent of its gross receipts,
effective January 1, 2003, less that portion of user fees collected for remittance to Lane County.
That franchise fee is to be computed from 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. Payments made hereunder shall be made on or before October 15,
January 15, April 15, and July 15. Such payments may be estimated based on information
available at the time payments are due and then adjusted following receipt, by the franchise
holder, of an audited annual financial statement. City shall have upon reasonable notice right of
access to Franchisee's accounts and records relating to the collection of solid waste in Spring-
field.
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, including, effective July 1, 2003, disposal at the Lane County land fill of
material removed from City streets by City street sweepers,
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 the opportunity to recycle and must comply with the requirements of ORS
459A.005-459A.085 and ORS 459.250, together with all applicable rules and regulations
promulgated thereunder by the State of Oregon Department of Environmental Quality utilizing at
the least the following program elements:
(a) Provision of at least one durable recycling container to each residential service
customer.
(b) On-route collection at least once each week of source separated recyclable material to
residential customers provided on the same day that solid waste is collected from each
customer.
(c) An expanded education and promotion program conducted to inform citizens of the
manner and benefits of reducing, reusing and recycling material. The program shall
include those elements provided in ORS 459A.OI0(2)(c)(A), (B), (C).
(d) Solid waste residential collection rates that encourage waste reduction, reuse and
recycling through reduced rates for smaller containers, including at least one rate for a
container that is 21 gallons or less in size. Based on the average weight of solid waste
disposed per container for containers of different sizes, the rate on a per pound disposed
basis shall not decrease with increasing size of containers, nor shall the rates per container
service be less with additional containers serviced, all as provided in Springfield Munici-
pal Code Section 4.408.
Section 7: Term. The rights, privilege and franchise herein granted to Franchisee shall be
commenced on the 1 st day of October, 1987, and shall be considered as a continuing five (5) year
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franchise. That is beginning on October 1 of each year, the franchise 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 notification 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 ofthis
franchise,
Section 8: Annexed Areas. The rights and privileges ofthis 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%
ofthe 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,
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Section 9: Termination by Franchisee.Jn the event the Franchisee shall desire to terminate service
given under the terms of this franchise, then it shall give not less than two years' notice ofthe intent
to terminate service and obligations under the franchise. 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 ofthe Franchisee at a price which will be agreed upon between the parties. Ifthe parties
cannot agree to a purchase price, then the same shall be submitted to arbitration. Each party shall
select one arbitrator and the two arbitrators 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, indemnify 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 performance of this franchise.
Section 11: Emergency Service bv 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 persons 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,
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 ofthe 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 persons pursuant to this Section.
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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 ofthe seventy-two (72) hour period, Franchisee 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 h through March 31 of the following
calendar year, during the term of Franchisee's franchise. It is understood that ifthe City
requests five (5) or fewer drop-boxes at anyone 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 unoffensive 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 understood 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 transport 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 ofthe
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 stipula-
tions of this agreement by him to be performed, then after providing appropriate notice to the
Franchisee 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 carried out by the City in the event that there are any repeated uncorrected 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 findings 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
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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 Section 4.408 of the Springfield Municipal Code.
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 consideration to all relevant factors
including, but not limited to, the following:
(a) Rates charged by collection services in other Oregon cities;
(b) The most recent January Consumer Price Index (CPI - Li) for Portland, Oregon;
(c) The current schedule of any rates required by Lane County; and
(d) Proposals made by Franchisee regarding an appropriate rate schedule.
(3) Non-scheduled services may be provided for a reasonable charge by Franchisee,
(4) Rate adjustments maybe 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 opportunity to recycle;
(2) Number of customers and changes in number of customers from previous report;
(3) Number of delinquent accounts and methods for collection;
(4) Number of complaints received regarding service and the resolution of those com-
plaints;
(5) Any changes in equipment or disposal and dumping facility or sites; and
(6) Summary of assistance to City beautification efforts;
(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 ownership interest in the franchise, including but not limited to the
transfer of Franchisee stock without the prior written approval of the City, which consent shall
not be withheld if the proposed transferee meets all the requirements imposed by this franchise
and applicable requirements ofthe municipal code relating to sanitation.
Section 19: Insurance. Franchisee shall provide a certificate of insurance to the City demonstrating
comprehensive general liability 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: Effective Date. This ordinance shall become effective July 1, 2002, except as
otherwise provided herein,
ADOPTED by the Common Council of the City of Springfield this 20 day of~, 2002, by a
vote of....6.. for and -1L against.
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. APPROVED by the Mayor of the City of Springfield this...21l..day of MRY ,2002.
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ATTEST:
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-~ . { i.? I"'\.~.h \~~ lOl,..tZ.Jk)VJ
---J u.'\h../ Ii '\ v , being first duly sworn, deposes and says that
Sidney W. Leiken, to me personally known and known by me to be the person described in the
foregoing instrument did sign this ordinance with his hand in my presence thisid{l...day of
""'d-,2002
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<JLc\'~ \I\A. ~-h.,~'l. LOtt ~)"i'-
CITY RECORDER AND
NOTARY PUBLIC FOR OREGON
f'\",\ COI'v'-Vll.'l5 Sto\.. f~~~~?>~ l~ \ tIS
OFFICIAL SEAL
JULIE M WILSON
NOTARY PUBLIC. OREGON
COMMISSION NO. 348848
MY COMMISSION EXPIRES AIIG. 13. 200S
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REVIEWED & APPROVED
A~ TO FORM \
_~ )~,~ ..) \.....CA \"'l""'\
DATE: 'i I '3c \ 2 (')0'-
OFFICE OF CITY ATTORNEY
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