HomeMy WebLinkAbout2015-03-10 - AGENDA REPORTS - CROWN DISPOSAL TO RECOLOGY LA (2)Agenda Item: 5
CITY OF SANTA CLARITA
Q) AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: March 10, 2015
SUBJECT: RESOLUTION AUTHORIZING THE TRANSFER OF THE
FRANCHISEE ASSIGNMENT OF TEMPORARY BIN AND ROLL-
OFF SERVICE FROM CROWN DISPOSAL CO., INC., TO
RFCOLOGY LOS ANGELES
DEPARTMENT: Public Works
PRESENTER: Travis Lange
RECOMMENDED ACTION
City Council approve a resolution authorizing the reassignment of a temporary bin and roll -off
service franchise from Crown Disposal Co., Inc., to Recology Los Angeles.
BACKGROUND
On December 4, 2014, the City of Santa Clarita (City) was informed of an agreement between
Crown Disposal Co., Inc. (Crown Disposal), for the sale of all, or substantially all, of its assets to
Recology Inc. In addition to the sale, Crown Disposal asked to exercise the transfer of their
franchise assi.-nment to Recology Los Angeles.
Pursuant to the California Integrated Waste Management Act of 1989, and in an effort to achieve
the 50 -percent diversion requirement of Assembly Bill 939 and the Construction and Demolition
Materials Management Ordinance 15.46 of the City, the City Council awarded franchise
agreements to ten waste haulers for the purpose of providing temporary bin and roll -off service
within the City. The program has been successful in helping the City achieve the state -mandated
50 -percent diversion.
The existing franchise agreement requires the City Council approve a resolution authorizing the
reassignment of the franchise to Recology Los Angeles as an approved franchised hauler.
Recology Inc. is the parent to over 40 subsidiaries, including Recology Los Angeles. These
subsidiaries partner with 119 communities in California, Washington, Oregon, and Nev�da to
provide service to over 7-10,000 residential and 95,000 commercial customers. Recology Inc. and
its subsidiaries currently provide an array of waste collection and processing services to 120
Page I
V1b Packet Pg.
municipalities, including temporary bin and roll -off service to the cities of San Francisco, Dixon,
Gilroy, San Bruno, Vallejo, Mountain View, Vacaville, American Canyon, Chico, and Oroville.
In addition, Recology Inc. operates:
a I I transfer stations (6 company-owned)
0 10 Material Recovery Facilities (MRFs)
0 9 compost facilities
Following the purchase of Crown Disposal, Recology Los Angeles will operate the Sun Valley
MRF and the Lamont composting facility, the largest permitted compost facility in California.
In 2013, Recology Inc. helped the City of San Francisco achieve an 80 -percent total diversion
rate, diverting 63 percent ofthe City of San Francisco's waste stream.
Recology Inc. and six,jurisdictions it services in Yuba and Sutter Counties achieved a 70 -percent
diversion rate in 2013, for the fifth consecutive year. Approximately 43 percent of the diverted
material was organics collected through Recology Inc.'s food scraps and yard trimmings
collection program.
Staff has contacted several references to ensure Recology Los Angeles can perform and meet the
requirements of the temporary bin and roll -off franchise. The existing franchise agreement will
expire December 2015.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
There is no budget impact.
ATTACHMENTS
Resolution
Notice of Sale
Contract for Crown Disposal Co., Inc. (available in the City Clerk's Reading File)
First Amendment to Contract (available in the City Clerk's Reading File)
Second Amendment to Contract (available in the City Clerk's Reading File)
Page 2
Packet Pg
RESOLUTION 15-
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA CLARITA, CALIFORNIA, APPROVING THE TRANSFER OF
EXCLUSIVE FRANCHISEE RIGHTS FOR TEMPORARY BIN AND ROLL -OFF BOX
SOLID WASTE MANAGEMENT SERVICE FROM CROWN DISPOSAL CO., INC., TO
RECOLOGY LOS ANGELES DUE TO SALE OF BUSINESS
WHEREAS, Article XI, § 7 of the California Constitution authorizes cities to protect
public health and safety by taking measures in furtherance of their authority over police and
sanitary matters; and
WHEREAS, the Legislature of the State of California, by enactment of the California
Integrated Waste Management Act of 1989, ("AB 939" or the "Act"), established a solid waste
management process, which requires cities and other local jurisdictions to implement plans for
source reduction, reuse, and recycling as integrated waste management practices for solid waste
.0
attributed to sources within their respective jurisdictions; and
WHEREAS, California Public Resources Code § 40059 provides that aspects of solid
0
waste handling of local concern include, but are not limited to, frequency of collection. means of
>1
M
collection and transportation, level of services, charges and fees, and nature, location and extent
0
6
of providing solid waste services, and whether the services are to be provided by means of
nonexclusive, partially exclusive, or wholly exclusive franchise, contract, license or otherwise,
which may be granted by local government under terms and conditions prescribed by the
governing body of the local agency; and
N
WHEREAS, the Santa Clarita Municipal Code implements Article XI, § 7 of the
California Constitution and California Public Resources Code § 40059 in the City of Santa
0
Clayita ("City"); and
WHEREAS, the City is obligated to protect the public health and safety of the residents
of the City and arrangements made by solid waste enterprises and recyclers for the collection of
E
Temporary Bin and Roll -Off Solid Wastes should be made in a manner consistent with the
exercise of the City's police power for the protection of public health and safety; and
WHEREAS, on February 17, 2006, the City entered into a Temporary Bill and Roll -Off
Box Solid Waste Agreement (Contract No. 06-00025) (such agreement, as amended by the First
and Second Amendments referred to in the last recital hereof, the "Agreement") with Crown
Disposal Co., Inc.; and
WHEREAS, Crown Disposal Co., Inc., is selling substantially all of its assets to
Recology Los Angeles or an affiliate there of, and
WHEREAS, the Ngreement between the City and Crown Disposal Co., Inc., requires in
Section 23, a resolution of the City Council approving any transfer by Crown Disposal Co., Inc.;
and
I Packet Pg. 39 1
WHEREAS, the City and Recology Los Angeles are mindful of the provisions of the
laws governing the safe collection', transport, recycling, and disposal of Temporary Bin and Roll -
Off Solid Waste, including the AB 939, the Resource Conservation and Recovery Act .
("RCRA"), 42 U.S.C. §§ 6901 et seq., and the Comprehensive Environmental Response,
Compensation and Liability Act ("CERCLA"), 42 U.S.C. §§ 9601 ef seq.; and
WHEREAS, the City and Recology Los Angeles desire to leave no doubts as to their
respective roles and to make it clear that by allowing the transfer from Crown Disposal Co., Inc.,
to Recology Los Angeles, the City is not thereby becoming a "generator" or an "arranger" as
those terms are used in the context of CERCLA § I 07(a)(3) and that it is Recology Los Angeles,
an independent entity, not the City, which will arrange to collect Temporary Bin and Roll -Off
Solid Waste from Premises in the City of Santa Clarita, transport for recycling and disposal and
dispose of Temporary Bin and Roll -Off Solid Wastes, which may contain small amounts of
household products with the characteristics of hazardous wastes, collect and compost Green
Waste and collect and recycle Recyclable Solid Wastes from Premises in the City of Santa
Clarita, and collect and recycle or dispose of Construction and Demolition Materials; and
WHEREAS, Recology Los Angeles agrees to abide by the Agreement and by those
amendments to Contract 06-00025 set forth in the First Amendment approved by Santa Clarita
City Council on June 9, 2009 (Resolution 09-41), and the Second Amendment approved by
Santa Clarita City Council on December 9, 2010 (Resolution 10-89).
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Transfer of Franchise
City hereby consents to the assignment of the Agreement, and the franchise provided for therein,
from Crown Disposal Co., Inc., to Recology Los Angeles effective as of the date hereof. Upon
the date hereof. Recology Los Angeles shall be successor in interest to Crown Disposal Co.,
Inc.'s franchise and shall with those other solid waste enterprises granted similar franchises, have
an exclusive duty, right, and privilege to collect, transport, process, recycle, compost, retain, and
dispose of all Temporary Bin and Roll -Off Solid Waste, as defined in the Agreement, produced,
generated, and/or accumulated at premises in the City, except as provided below or elsewhere in
the Agreement. The collection and disposal of residential solid waste from sing-le-farilily and
multi -family residences or other similar places is not within the scope of the Agreement, but is
within the scope of a separate "Residential Agreement." The collection and disposal of
Construction and Demolition Materials from residential and commercial Premises through the
use of roll -off or other bins is within the scope of the Agreement. However, accumulation,
collection, and recycling or disposal of Construction and Demolition Materials by a licensed
contractor, e.g., a roofing contractor, performing work within the scope of the contractor's
license, e.g., removing a roof and installing a new roof, using equipment owned or ]eased by the
contractor, is not within the scope of the Agreement.
SECTION 2. Term of Franchise
Recology Los Angeles accepts and acknowledges that collection services under the
aforementioned franchise and the Agreement shall be provided for a period terminating at
midnight on December 3 1, 2015, unless sooner terminated.
Packet Pg. 40
.2
0
>1
0
r
0
0
E
SECTION 3. Cash Bond
City has on file a cash bond from Crown Disposal Co., Inc., as required by Section 18 of the
Agreement. That bond shall remain with the City until Recology Los Angeles deposits with the
City a cash bond meeting the requirements of Section 18. After the deposit of Recology Los
Angeles' bond, City shall within a reasonable period return Crown Disposal Co., Inc.'s bond, or
Crown Disposal Co., Inc., may terminate the same.
SECTION 4. Bin Labeling
Notwithstanding anything to the contrary in Section 22.E ofthe Agreement, Recology Los
Angeles will not be obligated to pay the City liquidated damages if a Bin is out of compliance
with Section 7 of the Agreement at any time within the 90 -day period following the effective
date of assignment of the Agreement.
SECTION 5. Remainder of Agreement Intact
Except as specifically identified in this resolution, the terms of the Agreement (including the
First Amendment and Second Amendment) remain in full force and effect. The City Clerk shall
certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this day of 2015.
MAYOR
ATTEST:
CITY CLERK
DATE:
Packet Pg. 41
'F
.2
"5
0
>1
0
.2
0
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES ss.
CITY OF SANTA CLARITA
1. Kevin Tonoian, City Clerk of the City of Santa Clarita, do hereby certify that the
foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a
regular meeting thereof, held on the day of 2015, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
CITY CLERK
I Packet Pg.
'F
.2
'5
0
>1
0
.2
0
0
0
E
9189 DE GARMO AVENUE - Mailing Address: PO. BOX 1081 - SUN VALLEY CALIFRONIA 91352
(818) 767-0675 - (323) 875-0587 - FAX# (818) 768-3930
Wand Deliver]
City Manager
City of Santa Clarita
23920 Valencia Blvd., Suite 300
Santa Clarita, CA 91355
Benjamin Lucha
Environmental Projects Development
Coordinator
City of Santa Clarita
23920 Valencia Blvd., Suite 300
Santa Clarita, CA 91355
December 4, 2014
City Attorney
City of Santa Clarita
c/o Burke, Williams & Sorensen, LLP
444 South Flower Street, Suite 2400
Los Angeles, CA 90071-2953
Re: Request for Consent to Assignment of Temporary Bin and Roll -Off Box Solid
Waste Franchise Agreement between The City of Santa Clarita and Crown
Disposal Company, Inc., Contract No. 06-00025 (the "Agreemeaf ')
Dear Sir/Madam,
We wish to inform you that Crown Disposal Company, Inc. ("Crown ") has entered into
an agreement dated as of October 22, 2014, to sell all or substantially all of its assets to Recology
Los Angeles or an affiliate thereof ("Recoloe'), who will continue Crown's operations (the
"Transaction").
The purpose of this letter is to request that the City of Santa Clarita provide its consent
for Crown to assign the Agreement to Recology. Upon the assignment of the Agreement,
Recology,Aill be subject to the applicable terms and conditions of the Agreement and will
continue to perform the obligations thereunder. This request is made pursuant to the Agreement,
and the fees that must be paid in connection with a request for assignment are enclosed herewith.
At your earliest convenience, please countersign this letter agreement to indicate your
consent of the assignment of the Agreement and send a copy of the signed document to Lisa
Whiting at Lewitt Hackman Shapiro Marshall & Harlan, via e-mail at
lwhiting@lewitthackman.com or via mail at 16633 Ventura Boulevard, Eleventh Floor, Encino,
CA 91436, Attn: Lisa Whiting. Your consent will become effective as of the closing of the
Transaction and will have no effect unless the closing of the Transaction occurs. We expect the
Transaction to close in January 2015. Time is of the essence in obtaining a response to this
request, accordingly, please do not hesitate to contact me at (818) 767-0675 regarding this
matter.
I 5.1b I
'F
2
0
>1
Im
0
0
We appreciate your prompt consideration of tMs request.
'est Reg s,
J o
o Richairdsoin
Senior Vice President
cc: BLUCHA(i�,santa-claritaxom
cnewton@bwslaw.com
Donald Gambelin, Recology
ACKNOWLEDGED AND AGREED:
CITY OF SANTA CLARITA
BY:
NAME:
TITLE:
Packet Pg. 44
'F
.2
0
>1
. 46
z
E