HomeMy WebLinkAboutAGENDA REPORT 1991 0320 CC REG ITEM 11BThe Honorable City Council
March 14, 1991
Page 2
The City of Simi Valley regulates commercial hauling through a
permit system; a maximum of 15 permits is issued at no charge to
haulers. A hauler may purchase more than one permit, depending
upon availability. Haulers are required to have a current business
license, but there are no franchise fees.
The County of Ventura is beginning negotiations with all
residential and commercial haulers, and expects to have franchise
agreements in place by July 1, 1991. Haulers will operate
throughout the county's unincorporated area without zone
restrictions, and franchise fees have yet to be determined.
Commercial Recycling
In order to eventually comply with AB939 waste reduction mandates,
commercial recycling must be implemented. Several Moorpark
businesses are already participating in recycling programs with
local haulers and with companies that provide only recycling
services. Items currently being recycled include California
redemption materials, paper, scrap metal and used motor oil.
Commercial recycling presents difficulties in terms of space
availability. Current regulations require that refuse containers
be screened by concrete walls, and most existing enclosures are
just large enough for the bins required for disposal. City staff
has developed informal policies to require future commercial
developments to provide additional space for recycling activities
through the conditioning process, but retrofitting current refuse
enclosures will take some time.
In addition, staff is uncertain of the recyclable waste stream
produced by commercial (excluding apartment and condominum
complexes) and industrial sectors. A study to determine Moorpark's
commercial and industrial waste stream is currently underway and
results should be available in the near future. This information
will assist staff in designing commercial and industrial recycling
programs.
Draft Franchise Agreement
The Budget and Finance Committee has reviewed a draft commercial
franchise agreement. The proposal will be in accordance with the
City's Municipal Solid Waste ordinance and will contain relevant
sections (e.g., insurance, bonding, reporting, etc.) from the
recently executed residential franchise agreements. The commercial
franchise agreements are directed at companies that collect, haul
and dispose of rubbish in landfills on an ongoing or temporary
basis. The City may also want to regulate those companies that
provide only recycling services to businesses. For AB939
The Honorable City Council
March 14, 1991
Page 3
reporting, the City will need statistics on all diverted and
disposed material.
The following major components are included in the draft agreement.
1. Number of Franchises
A maximum of four franchises will be offered for
collection, transportation and disposal of refuse on an
ongoing (once per week or more) basis. These franchises
will include the ability to service the previously
referenced special services. An unlimited number of
franchises will be offered for collection,
transportation, and disposal of refuse on a temporary
basis. A grantee's parent, subbsidiary, or affilitate
company is prohibited from receiving a commercial
franchise.
At this time, haulers who collect only recyclables will
not be franchised. Staff will continue to monitor their
activities and may return to the City Council at a later
time with a recommendation.
2. Length of Term
The term for ongoing service agreements shall be three
years. Nine months prior to the end of the agreement,
the grantee may apply for an extension. The term for
temporary service agreements shall be one year.
3. Costs
Haulers who receive a franchise for ongoing service shall
pay $4000 to the City for the cost of preparing the
agreement. (Any hauler receiving a franchise for ongoing
service after December 1991 shall pay $8000). Haulers
who receive a franchise for temporary service shall pay
500 to the City.
4. Franchise Fee
A franchise fee of 10 percent (payable quarterly) shall
be due from all haulers.
5. Zones
All haulers will operate city -wide, exclusive of any zone
system to maximize competition.
6. Rates
The City will set maximum rates for commercial hauling,
to be in effect for the term of the agreement. Haulers
are not prohibited from negotiating lower rates with
customers.
The Honorable City Council
March 14, 1991
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7. Reporting Requirements
Haulers will be required to maintain statistics and
provide information relative to AB939 requirements on
City- designed forms;
8. Commercial Recycling
A recycling program shall begin at multi - family locations
no later than 180 days after the execution of the
agreement. A recycling program shall begin at other
commercial locations no sooner than 180 days but no later
than 365 days after the execution of the agreement at the
City's sole determination. This time is needed for staff
and the refuse haulers to determine which materials will
be collected and the method of collection.
Staff Recommendations
1. Concur with proposed commercial franchise agreement outline.
2. Direct staff to prepare the commercial refuse franchise
agreement.
3. Direct the Budget and Finance Committee to review the
commercial refuse franchise agreement and to return to the
Council with recommendations for awarding a maximum of four
4) commercial franchises consistent with this report.
commerco