HomeMy WebLinkAbout07-91 - Adopting a Solid Waste Hauling Franchise Fee, Computation and Collection ProceduresRESOLUTION NO. 07-91
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF COSTA MESA, CALIFORNIA, ADOPTING A SOLID
WASTE HAULING FRANCHISE FEE AND RELATED
COMPUTATION AND COLLECTION PROCEDURES.
THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY RESOLVES AS
FOLLOWS:
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS
FOLLOWS:
WHEREAS, the City Council of Costa Mesa adopted Ordinance No. 04 — 12 on
November 15, 2004, that requires solid waste enterprises operating within the City to
obtain a City franchise and pay a franchise fee; and
WHEREAS, the City Council adopted Resolution 04-74 on November 15, 2004, setting
related procedural provisions for sanitation franchise fee's computation and collection;
and
WHEREAS, the City Council has adopted Ordinance No. 07-20 setting the penalties for
late or incorrect payment of franchise fees, and
WHEREAS, the City Council desires to clarify the due dates of the quarterly franchise
fee payments. and remove references to penalties and late payment fees which are set
by Ordinance.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
COSTA MESA AS FOLLOWS:
SECTION 1. FRANCHISE FEE
a. There is hereby enacted a franchise fee in the amount of 12% of the annual
gross receipts of a franchisee from its business conducted in the City of Costa
Mesa. For the purpose of this resolution, gross receipts means and includes
all monies, fees, charges, consideration, and revenue received by, or imputed
to the franchisee and any affiliates, parent companies, subsidiaries and/or
subcontractors of the franchisee, in connection with, arising from, or in any
way attributable to the services carried out by or on behalf of the franchisee
pursuant to a franchise granted under section 8-87.
b. This fee shall be paid quarterly by each franchisee to the City Finance
Department ("Department"). Each payment shall be due within 30 days of the
end of each calendar quarter, i.e. payments for the four quarters shall be due
on April 30, July 31, October 31, and January. 30 of .each calendar year..
Whenever the last day of a fixed and final period falls on a Saturday, Sunday
or other legal Holiday, the due date will be extended to 5:00 pm of the next
business day. Franchisees shall include with each payment the financial
data requested by the Department for verifying that the amount of the fees
paid complies with this resolution.
c. To prevent the franchise fee from being applied to more than the actual gross
receipts of a franchise, no franchisee shall itemize the amount of the
franchise fee as a separate amount or line -item in its bill to customers.
SECTION 2. FINANCIAL AUDIT OF FRANCHISEES
a. The Department may order a financial audit of any franchisee pursuant to
Costa Mesa Municipal Code ("CMMC") section 8 — 87 . The City Audit shall
include a review of the franchisee's cash records, solid waste tonnage
collection, diversion, and other related records, as well as those of each of its
parent, subsidiary and/or affiliate companies, as appropriate, to determine the
franchisee's gross receipts, the accuracy of franchise fees paid, and such
other information as shall be deemed appropriate by the City Finance Director
to evaluate the franchisee's compliance with section 8 — 87. In connection
with a City Audit, franchisees shall make available for review at their business
offices detailed account records, such as the names and addresses of
customers.
b. A franchisee shall reimburse the City for the cost of a City Audit if the audit
determines that the franchise fee for the audited period (s) has been
underpaid in excess of five percent (5%) of the total required fee. Such
reimbursement shall be paid by the franchisee within thirty (30) days of the
date the City notifies the franchisee in writing of the amount of the City's cost
of the audit.
SECTION 3. REPEAL OF PRIOR RESOLUTION.
City Council resolution No. 00 — 72 setting a fee for City's costs for the preparation,
adoption and implementation of its source reduction and recycling element and
household hazardous waste element is hereby repealed. The costs for these city
services will now be paid for from the solid waste hauling. franchise revenue.
SECTION 4. EFFECTIVE DATE OF FRANCHISE FEE
This franchise fee shall commence on January 5, 2008, and the first quarter fees shall
be due to the City on April 30, 2008. Failure to pay any franchise fees or penalties
assessed to a franchise shallconstitute grounds for revocation of the franchise pursuant .
to CMMC section 8 — 79.
PASSED AND ADOPTED this 4th day of December, 2007.
ATTEST:
Julie 0olcik, City Clerk
Allan k Mansoor, Mayor
APPROVED AS TO FORM:
Kimberly Hall Barlow, City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, JULIE FOLCIK, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY
that the above and foregoing is the original of Resolution No. 07-91 and was duly
passed and adopted by the City Council of the City of Costa Mesa at a regular meeting
held on the 4th day of December, 2007, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS: MANSOOR, BEVER, DIXON, FOLEY, LEECE
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 5th day of December, 2007.
0�4j-�;�D
JULI FOLCIK, CITY CLERK
(SEAL')