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HomeMy WebLinkAbout12. OB-2 - SECOND READING AND ADOPTION OF ORDINANCE NO. 18-011 CITY COUNCIL AGENDA REPORT MEETING DATE: JANUARY 2, 2018 ITEM NUMBER: OB-2 SUBJECT: SECOND READING AND ADOPTION OF AN ORDINANCE AMENDING ARTICLE 1 (SOLID WASTE COLLECTION) OF CHAPTER IV (GARBAGE, RUBBISH AND WEEDS) OF TITLE 8 (HEALTH AND SANITATION) OF THE COSTA MESA MUNICIPAL CODE TO MEET NEW STATE MONITORING AND REPORTING REGULATIONS DATE: DECEMBER 14, 2017 FROM: PUBLIC SERVICES DEPARTMENT / ADMINISTRATION DIVISION PRESENTATION BY: RAJA SETHURAMAN, PUBLIC SERVICES DIRECTOR FOR FURTHER INFORMATION CONTACT: AMBER HASTON, MANAGEMENT ANALYST, (714) 754-5024 RECOMMENDATION: Give second reading to and adopt Ordinance No. 18-01 (Attachment 1), to be read by title only, and further reading waived, amending Article 1 (Solid Waste Collection) of Chapter IV (Garbage, Rubbish, and Weeds) of Title 8 (Health and Sanitation) of the Costa Mesa Municipal Code. BACKGROUND: At the December 5, 2017 City Council meeting, the City Council introduced and gave the first reading to Ordinance No. 18-01, amending provisions of the Municipal Code relating to waste hauling, and adopted Resolution No. 17-77, establishing fees in connection with waste hauling. The City Council directed that staff modify Ordinance No. 18-01 to remove language in the proposed ordinance that permitted bin confiscation from private property. The requested changes are incorporated into the attached revised Ordinance No. 18-01 and reflected in redline in Attachment 2. The Agenda Report presented by staff at the December 5, 2017 City Council meeting is included as Attachment 3. ANALYSIS: The revisions requested by City Council relate to the bin confiscation procedure that will be adopted through the proposed ordinance. Council directed that the ordinance be revised to limit bin confiscation to bins placed illegally in the public right-of-way. The revised Ordinance addresses this request. ALTERNATIVES CONSIDERED: At the December 5, 2017 City Council meeting, Council Member Foley requested that staff evaluate an alternative approach to enforcing bin confiscation through the use of City staff resources, such as Code Enforcement Officers, and contracting with a third party for the limited purpose of impounding the illegal bins. Public Services staff, in consultation 2 with the Code Enforcement Division and the Police Department, evaluated this alternative and concluded it is not feasible with current resources and staff levels. The Code Enforcement Division’s scope does not include the enforcement of code violations in the public right-of-way. While the Police Department’s scope does allow for enforcement of code violations in the public right-of-way, the enforcement of illegal bin placement adds a new functional responsibility to their activities. Public Services, which also has the authority to enforce code violations in the public right-of-way, also does not have adequate staffing to undertake illegal bin enforcement activities. Consequently, the proposed alternative is not feasible at this time. Please note that the Request for Proposals (RFP) and subsequent contract for the illegal bin confiscation services will outline the process and procedure on communication and verification by City staff of potentially illegal bins prior to confiscation. This process will provide City oversight and ensure the contracted hauler does not confiscate anything beyond that which the contracted hauler is permitted to confiscate. Accordingly, staff recommends moving forward with the proposed ordinance in its current form. FISCAL REVIEW: The proposed changes to the Municipal Code, including the elimination of the B-Tier franchise and establishing a Contractor Self-Haul Permit, are revenue neutral. The proposed revisions were reviewed and approved by the Finance and Pension Advisory Committee on November 8, 2017. LEGAL REVIEW: The City Attorney’s Office has reviewed and approved the proposed ordinance as to form. CONCLUSION: At the December 5, 2017 City Council meeting, City Council gave first reading to Ordinance No. 18-01, and directed staff to make revisions relating to the bin confiscation procedure. The revisions are incorporated into the attached ordinance. Staff is requesting that City Council give second reading to and adopt Ordinance No. 18-01. AMBER HASTON RAJA SETHURAMAN Management Analyst Public Services Director ATTACHMENTS: 1. 2. 3. Proposed Ordinance No. 18-01 Redline Version of the Ordinance Agenda Report from December 5, 2017 DISTRIBUTION: City Manager Assistant City Manager City Attorney Finance Director Building Official City Clerk Staff ATTACHMENT 1 ORDINANCE NO. 18-01 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AMENDING ARTICLE 1 (SOLID WASTE COLLECTION) OF CHAPTER IV (GARBAGE, RUBBISH AND WEEDS) OF TITLE 8 (HEALTH AND SANITATION) OF THE COSTA MESA MUNICIPAL CODE WHEREAS, the 2016 California Green Building Standards Code ("CalGreen Code") expands the number and type of projects the City is required to administer, monitor, and report on to the State, including the tracking of all new construction, permitted additions and alterations to non-residential buildings, and additions and alterations to residential buildings that increase a structure's conditioned area; and WHEREAS, permitting self -hauling by contractors will create an easier and more cost- effective option for contractors to legally haul construction and demolition materials generated within the City, while aiding the City in meeting State -mandated administration, monitoring, and reporting requirements for such diversion; and WHEREAS, in 2016, 23,557.60 tons of City waste was taken to Orange County landfills by non -franchised hauling activity; and WHEREAS, establishing a mechanism through which containers used for illegal hauling activities can be confiscated, and imposing fees for such confiscation, will aid in deterring illegal hauling in the City; and WHEREAS, Assembly Bill (AB) 341 (Mandatory Commercial Recycling) and Assembly Bill (AB) 1826 (Mandatory Commercial Organics Recycling) establish monitoring and reporting requirements, and penalties for failing to comply with such requirements; and WHEREAS, establishing administrative penalties will support the City's compliance efforts with AB 341, AB 1826, and CalGreen Code monitoring and reporting requirements; and WHEREAS, this Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), the CEQA Guidelines, and the City's environmental procedures, and has been found to be exempt pursuant to Section 15061(b)(3) (General Rule), in that the City Council hereby finds that it can be seen with certainty that there is no possibility that the passage of this Ordinance will have a significant effect on the environment. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Sections 8-76, 8-77, 8-78, 8-79, 8-81, 8-82, 8-83, 8-84, and 8-87 of Article 1 (Solid Waste Collection) of Chapter IV (Garbage, Rubbish and Weeds) of Title 8 (Health and Sanitation) of the Costa Mesa Municipal Code are hereby amended as follows: A. Section 8-76 shall be amended to read as follows: Sec. 8-76. - Definitions. The following terms as used in this article shall, unless the context already indicates otherwise, have the respective meanings herein set forth: (a) Collection: The operation of gathering together and transporting solid waste to the point of disposal. (b) County: County of Orange. (c) Commercial units: Any commercial business establishment including, but not limited to, hotels, motels, offices and professional buildings, and retail establishments of all kinds, including supermarkets, filling stations, department and variety stores. (d) Contractor Self -Haul: The act of hauling solid waste, subject to this article, by construction and demolition contractors as an ancillary function to their primary business activity. (e) Disposal: The complete operation of treating and disposing of the accumulations of refuse and of the product or residue arising from such treatment. (f) Disposal station: A facility established, maintained and operated by the City or the County for the disposal of refuse. (g) For -hire hauling: A business relationship that provides compensation for the hauling of solid waste subject to this article. (h) Garbage: Solid waste as defined in California Public Resources Code Sections 40191 and 49503. (i) Multifamily residential units: A permanent building containing two (2) or more dwelling units including, but not limited to, mobile home parks. (j) Hazardous waste: (1) All waste defined or characterized as hazardous waste by the Federal Solid Waste Disposal Act (42 U.S.C. § 3251 et seq.), as amended, including the Resource Conservation and Recovery Act of 1976 (42 U.S.C. § 6901 et seq.), and all future amendments thereto, or regulations promulgated thereunder; and (2) All waste defined in California Public Resources Code Section 40141 or characterized as hazardous waste by the Principal agencies of the State of California (including without limitation the Department of Health Services and the California Waste Management Board) having jurisdiction over hazardous waste generated by facilities within such state; provided that the term "hazardous waste": a. Is intended to mean and include those substances which are not normally expected to be disposed of by generally accepted sanitary landfill disposal methods; b. Shall include radioactive wastes; and c. Shall be construed to have the broader, more encompassing definition where there exists a conflict in the definitions employed by two (2) or more governmental agencies having concurrent or overlapping jurisdiction over hazardous waste. (k) Illegal hauling: The act of performing for -hire hauling of any solid waste material subject to _T this article without obtaining a City -issued permit. (1) Industrial units: Any business establishment engaged in manufacturing, warehousing, construction, and/or demolition. (m) Infectious waste: Solid waste capable of producing an infection or pertaining to or characterized by the presence of pathogens or medical waste as regulated by the Medical Waste Management Act (California Health and Safety Code Section 25015 et seq.). It includes but is not limited to certain wastes generated by medical practitioners, hospitals, nursing homes, medical testing labs, mortuaries, taxidermists, veterinarians, veterinary hospitals, medical testing labs, and any waste which includes animal wastes or parts from slaughterhouses or rendering plants. (n) Intermediate processing facility: A solid waste transfer or processing station or facility as defined in California Public Resources Code Section 40200. (o) Material recovery facility: A solid waste facility where source -separated recyclables are processed and recovered. (p) Permittee: Any person or solid waste enterprise who collects, hauls or disposes of any form of solid waste, hazardous waste or infectious waste for compensation pursuant to a permit issued under this section. (q) Public highway: Any public street, alley, road, public place or highway open to and used by the traveling public and not used as a private right-of-way. (r) Recycling: The process of collecting, sorting, treating, and reconstituting materials that would otherwise become solid waste, and returning them to the economic mainstream as defined in California Public Resources Code Section 40180. (s) Recyclable material: Solid waste material that through a process of collecting, sorting, cleansing, treating and reconstituting is returned to the economic mainstream in the form of raw material for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace. (t) Refuse: Solid waste as defined in California Public Resources Code Sections 40191 and 49503. (u) Residential units: All those dwelling units not included in the definition of multifamily residential units unless otherwise designated by the city. (v) Scavenge: The unauthorized removal of any recyclable materials as defined by California Public Resources Code Sections 41950 and 41951 or solid waste without a permit under this article. (w) Solid waste: All solid waste as defined in California Public Resources Code Sections 40191 and 49503. (x) Solid waste enterprise: A solid waste enterprise as defined in California Public Resources Code Section 49504. (y) Solid waste handling services: A solid waste handling service as defined in California Public Resources Code Section 49505. (z) Transfer station: A solid waste transfer or processing station or facility as defined in California Public Resources Code Section 40200. (aa) Organic waste: Organic material including food waste, green waste, landscape and pruning waste, nonhazardous wood waste, and food -soiled paper waste that is mixed with food waste. B. Section 8-77 shall be amended to read as follows: Sec. 8-77. — Permit. (a) No person, contractor, or solid waste enterprise shall charge a fee or accept any form of compensation to collect any solid waste, hazardous waste or infectious waste upon, along or across any public highway in the city from any commercial, industrial or multifamily residential units, or residential units without first applying for and receiving all permits required from the city. In addition to the permit required under this article, a business license must be obtained prior to doing business within the city, and a separate vehicle permit for each and every vehicle used for collecting solid waste, hazardous waste or infectious waste and setting of containers within the city right-of-way. The permittee shall place each permit issued pursuant to this article in the lower right front window of the vehicle so that it is clearly visible from the street. (b) The city shall develop and implement a procedure for evaluating the performance of any and all permittees operating under the provisions of this article. Permitted haulers shall submit reports on their hauling activity, as required by the director of public services. These reports shall be submitted in the format and frequency established by the director of public services. Failure to provide said reports, by their established due date, will result in an administrative penalty. If said reports are not submitted within forty-five (45) days of the imposition of an administrative penalty, along with payment of said penalty, the hauler's permit will be revoked as provided in section 8- 79. Failure to meet minimum diversion rates will result in the revocation of the permit as provided in section 8-79. (c) Any person, contractor or solid waste enterprise who is issued a permit pursuant to this article shall comply with all of the regulations in this article including but not limited to the source reduction and recycling provisions of section 8-84. (d) Any person, contractor or solid waste enterprise desiring to obtain a permit to remove or convey any solid waste, hazardous waste or infectious waste upon or along any public highway within the city from any commercial, industrial or residential multifamily unit(s), or residential unit(s), shall sign and file an application with the city and pay a permit application fee established by resolution of the city council. To the extent permitted by law, the information submitted in the application shall be kept confidential. (e) Each permit application shall be filed with the public services department and shall include the following information: (1) The name and address of the applicant. (2) The number and type of vehicles to be used by the applicant. (3) Additional information, as established by the director of public services, to assist the city's D� administration and oversight authority as established by State law. (4) For hazardous waste and infectious waste, written proof that the person or solid waste enterprise has obtained all necessary permits from the county, State of California and federal agencies for the collection of such waste and has insurance coverage for the transport and disposal of such waste. (f) For -hire haulers shall be required to obtain a "solid waste franchise" permit. This permit will allow for the provision of recurring and temporary services in all areas franchised by the City of Costa Mesa. In addition to the requirements established for all permit applicants herein, the solid waste franchise permit applicant shall also be required to submit: (1) A written source reduction and recycling plan with details and time frame for implementation on how the permittee will provide the programs to its customers, as required by the City of Costa Mesa Source Reduction and Recycling Element, which include but are not limited to all of the following: a. Reduction of solid waste to maintain a fifty percent (50%) diversion rate through source reduction, recycling and composting, and a sixty-five percent (65%) diversion rate for construction and demolition waste. b. Economic incentives to achieve the diversion rates set forth in subparagraph a. herein. c. Technical, instructional, promotional, and educational programs to achieve the diversion rates set forth in subparagraph a. herein. d. Composting programs to facilitate the achievement of the diversion rates set forth in subparagraph a. herein. e. Special waste programs. f. Organic waste recycling programs. In order to comply with the requirements of Chapter 12.9 of Part 3 of Division 30 of the Public Resources Code, the director of public services shall require a permit applicant to demonstrate its ability to provide organics recycling services as a condition of permit issuance. g. Other information or additional financial information, including, but not limited to, the right to audit financial records, or require a performance bond, or other suitable evidence of financial responsibility, if at any time such information is found to be necessary by the city council. The permittee will provide a certified copy of the permittee's last fiscal year's financial report, audited by a certified public accountant. All financial information contained in the permit application made to the city pursuant to this article shall be deemed to be confidential and shall be retained by the city for its use and, under no circumstances, will such information be released to anyone other than the permittee without the consent of the permittee. (g) The Costa Mesa Sanitary District ("CMSD") will continue its franchise for all single-family residential and multi -family residential receiving curbside service. No other permittee will be allowed to operate in areas governed by the CMSD. (h) Contractor self -haul permit applicants must comply with items (a) through (e) of this section and shall also provide per -project forms, as required by the director of public services, and subsequently submit all waste disposal and diversion tickets associated with their project(s) at the time prescribed by the director of public services. Failure to submit both the required form and all associated weight tickets shall subject the permittee to an administrative penalty as outlined in section 8-84. C. Section 8-78 shall be amended to read as follows: Sec. 8-78. — Issuance or denial of permit. (a) When an application has been made to the city for a permit pursuant to this article, it shall be the duty of the director of the public services department to consider the matter; and he or she shall have the right to grant, condition or deny the permit request, and such decision shall be subject to an appeal to the city council pursuant to Chapter IX of Title 2 of this Code. In granting, conditioning or denying the permit request, the director of public services and the city council may take into consideration factors, including, but not limited to, the following: (1) The ability of the permittee to comply with the solid waste handling service standards enumerated in this article. (2) The ability of the permittee to comply with the equipment standards enumerated in this article. (3) The ability of the permittee to comply with the provisions regarding insurance or bonds enumerated in this article. (4) The ability of the permittee to provide programs and comply with the City of Costa Mesa Source Reduction and Recycling Element and implement the source reduction and recycling plan proposed by the permittee pursuant to paragraph (f) of section 8-77. (b) The decision by the city council on a permit application shall be final. (c) No permit granted pursuant to this article shall be assigned or transferred without the consent of the director of public services. The term of the solid waste franchise permit shall be for a period of seven (7) years, provided that on each anniversary date of a permit it shall be automatically extended for one (1) additional year so that the term remains seven (7) years unless at least sixty (60) days prior to the anniversary date either the city or permittee notifies the other in writing that the permit will not be renewed in which case the term shall not be extended for an additional year and will have only six (6) years remaining and shall not be automatically extended thereafter. Nothing in this subdivision shall prevent the city from terminating a solid waste franchise permit before the end of its term pursuant to the provisions of section 8-79. No permit granted pursuant to this article shall limit the right of the city to grant an exclusive or nonexclusive franchise for solid waste handling services in the city. A permit issued under this article shall not grant the permittee rights under California Public Resources Code Section 49520, where at the time the permit is granted the permittee did not have a right to continue service under such section. D. Section 8-79 shall be amended to read as follows: Sec. 8-79. — Revocation of permit. (a) In the event that any person, contractor or solid waste enterprise holding a permit to collect solid waste, hazardous waste, or infectious waste upon or along any public highway within the city from any commercial, industrial, or multifamily residential unit(s), or residential unit(s) violates to any of the conditions of such permit, the requirements of section 8-87, the provisions of this article, or any other ordinance, statute, or regulation relating to the collection, storage, or disposal of solid waste, hazardous waste, or infectious waste, or collects such solid waste in an unlawful, improper, or unsanitary manner, the director of public services may revoke such permit issued to such person, contractor, or solid waste enterprise as provided by this section. (b) The director of public services may revoke a permit by issuing a written order to the permittee and the order shall state the grounds for such revocation, and that if proof of compliance is not provided to the director of public services within thirty (30) calendar days from the date of the written order, the permit will be revoked forty-five (45) calendar days from the date the written order was mailed. The order shall be mailed by certified mail to the permittee. The written order shall be subject to an appeal to the city council pursuant to Chapter IX of Title 2 of this Code. Upon revocation of a permit, the permittee shall cease all services subject to the permit within seventy-five (75) calendar days from the date the order is mailed. The director may adopt regulations to implement the provisions of this section. (c) If a solid waste franchise permittee fails to comply with the requirements of section 8-84, including, but not limited to, the achievement of diversion requirements, the following procedure will be followed: (1) The director will determine whether the permittee has made a good faith effort to comply with the conditions of the permit and the requirements of this article. The director will consider evidence submitted by the permittee concerning this matter and the permittee has the burden of establishing that it has made reasonable and feasible good faith efforts to achieve compliance. Evidence to be considered on this issue includes, but is not limited to, how close to compliance the particular deficiency is, the efforts the permittee has taken to meet the requirement, the expense required to provide the permittee with the means for compliance, the results of similar permittees in meeting the requirement, the availability of new technologies which the permittee could utilize to satisfy the requirement, the plans submitted by the permittee showing what steps it plans to take to enable it to fully comply with the requirement and the time that will take, whether permittee has already taken reasonable steps to alter its operations in time to meet the requirement, and what impact the permittee's failure has on the city's overall compliance with the state requirements for solid waste reduction and diversion. The permittee's good faith efforts must conform to any guidelines established by the city and/or the state in this regard. (2) The provisions of this subsection authorizing the director to consider the good faith efforts of a permittee shall only be applicable so long as the state authorizes and grants a comparable good faith exception concerning the city's responsibilities under state law. (3) If the director determines that a good faith effort has been made by the permittee, the director may decide not to revoke the permit. If the permit is not revoked, the director may impose new conditions to the permit, such as: (i) the permittee must prepare a full compliance plan to show how it intends to meet the diversion requirement, (ii) the plan must be submitted within 30 days and approved by the director, (iii) the permittee must comply with that plan, or (iv) any other conditions that the director concludes are appropriate and will help meet the requirements of state law and the city ordinance. (4) If a permit is not revoked because the director determines that a good faith effort had been made, the permit revocation process may be commenced again at any time the director determines new grounds therefor exists, including, but not limited to, noncompliance with any new conditions placed upon the permit at the time the good faith determination was made. (d) If a permit is revoked, no permit shall be thereafter granted to such person to collect solid waste, hazardous waste or infectious waste in the city until such time as the permittee can prove the ability to comply with this article. E. Subsection (f) of Section 8-81 shall be amended to read as follows: (f) Solid waste franchise permittees shall maintain a place of business at some fixed place and shall maintain a telephone, listed in the telephone directory in his or her own name or in the firm name by which he or she is most commonly known. At all times during the hours between 8:00 a.m. and 5:00 p.m. of each day upon which collections are made, said office must be staffed to receive complaints regarding collection. An emergency number shall be made available to city hall for the hours between 5:00 p.m. and 8:00 a.m. and for days upon which collections are not made. F. Subsection (a) of Section 8-82 shall be amended to read as follows: (a) The permittee shall at all times keep fully insured, at his or her own expense, all persons employed by him or her in connection with the contract or permit workers' compensation insurance as required by the State of California, and shall hold the city free and harmless from all liabilities that may arise by reason of the injuries to any employee of the permittee who is injured while performing any work or labor necessary to carry out the provisions of a contract or permit. The permittee, during the life of the permit, shall keep on file with the city clerk evidence that the permittee is fully and properly insured as required by State law. G. Section 8-83 shall be amended to read as follows: Sec. 8-83. - Regulations. (a) It shall be unlawful for any person to place, deposit, dump or cause to be placed, deposited or dumped any solid waste, hazardous waste or infectious waste in or upon any private property or in or upon any public property which the public is admitted by easement or license without the consent of the owner, or in or upon any public highway, street, alley, sidewalk, gutter, parkway or upon any private road, alley, sidewalk, gutter or driveway in common use, or upon any public property other than property designated or set aside as a disposal station for such purpose by resolution of the city council or county board of supervisors. (b) It shall be unlawful for any person to place, deposit or dump solid waste, hazardous waste or infectious waste of any kind whatsoever upon any private or public property within a distance of one thousand (1,000) feet from any public highway in the city, or within a distance of five hundred (500) feet from any established residence or dwelling house within the city, or to cause or suffer or permit such solid waste, hazardous waste or infectious waste to be placed, deposited or dumped upon any public or private property within a distance of one thousand (1,000) feet of any public highway or within a distance of five hundred (500) feet of any established residence or dwelling house in the city, without first having obtained a use permit pursuant to the zoning laws of the city, county, and State of California, or pursuant to any other zoning law that may be hereafter adopted in the place and stead of said zoning laws of the city. The provisions of this subsection shall not apply to solid waste, hazardous waste or infectious waste placed into a container for pickup by a solid waste enterprise operating pursuant to a permit issued under this article. (c) No person shall burn any solid waste, hazardous waste or infectious waste within the city without having first complied with all rules and regulations of the city, the county, the South Coast Air 100 Quality Management District and the state. (d) No person shall scavenge or bury any solid waste, hazardous waste or infectious waste within the city. (e) Special arrangements must be made and permits issued by the county, State of California, and federal agencies for the disposal of any of the following items: Ammunition; explosives; industrial waste; chemicals; infectious; hazardous and radioactive waste; acids; drugs; medicines; human feces; unwrapped animal feces; and items which are too large for the collection equipment or which may damage the collection machinery such as large pieces of metal, machine parts, logs and tree stumps. (f) Branches of trees, hedges, etc., shall be cut in lengths of not over four (4) feet and placed in containers or tied into bundles not exceeding fifty (50) pounds. All vacuum cleaner dust sweepings or ashes shall be wrapped and placed in the container. Newspapers and magazines may be bundled in bundles not exceeding fifty (50) pounds maximum. All metal containers may be placed in an enclosed container or wrapped in bundles not exceeding fifty (50) pounds maximum. In areas of curbside refuse collection, the requirements of this subsection are superseded by any requirements of the CMSD. (g) It shall be unlawful for a person, contractor or solid waste enterprise to commingle solid waste collected from within the jurisdiction of the City of Costa Mesa with solid waste collected from any other jurisdiction. A violation of this subsection shall result in the revocation of the permit pursuant to section 8-79. (h) For any type of solid waste collection in the city, it shall be unlawful for any person to use the services offered by a person, service, or enterprise that has not obtained all the required permits from the city pursuant to this article. (i) It shall be unlawful for any person, contractor or solid waste enterprise to place solid waste collection containers on public property without the appropriate city permit. For the first violation of this subsection, the city will impound container(s) of non -permitted persons, contractors or solid waste franchises forty-eight (48) hours after such container(s) are observed by the city or the city's agent. For the second violation of this subsection, the city will impound containers of non -permitted persons, contractors or solid waste enterprises previously noticed or impounded twenty-four (24) hours after such container(s) are observed the city or the city's agent. Any subsequent violations shall be subject to immediate confiscation. Permitted haulers shall place signage and/or markings on their containers to clearly identify them as property of the permitted hauler, as required by the city. When a container that does not contain signage or markings to clearly identify it as the property of a permitted hauler is observed, a notice shall be placed upon the container to inform its owner that illegal hauling has been established. The owner of that container will have forty-eight (48) hours to remove said container or place signage identifying it as property of the permitted hauler so that the city or city's agent can determine if it is the property of a permitted hauler. If containers placed in violation of this section are not removed within the time periods set forth herein, an impound fee, per container, shall be imposed to cover the costs of impound, disposal of materials, container storage, and an administrative penalty fee for city enforcement and administration. The impound fee shall be established by city council resolution. If the owner of the impounded container does not pay the full impound fee to the city within ninety (90) days of impound, the impounded container shall become the property of the city to satisfy the impound fee. The city reserves the right to, on an annual basis, enter into an impound services agreement, in accordance with the city's procurement policies. The selected solid waste enterprise shall be a solid waste franchise permittee and shall be authorized to enforce the city's franchise by confiscating any roll -off containers or trash bins used for illegal hauling within city limits. The contracted solid waste enterprise shall be authorized to collect the impound fee set forth herein. The owner of the container shall pay the impound fee in order to remove the property out of impound. If the owner does not pay within ninety (90) days of impound, the contracted solid waste enterprise shall keep the impounded container to satisfy its service and hauling charges. (j) All businesses as defined by Public Resources Code section 42649.1 generating four (4) cubic yards of trash per week, and all multi -family properties of five (5) units or more, must arrange for the collection and recycling of solid waste as follows: (1) Source separate recyclable materials from solid waste and subscribe to a basic level of recycling service that includes collection, self -hauling, or other arrangements for the pickup of the recyclable materials with a permittee. (2) Subscribe to a recycling service with a permittee that may include mixed waste processing that yields diversion results comparable to source separation. (k) On or before April 1, 2016, all businesses as defined by Public Resources Code section 42649.8 et seq., including multi -family residential dwellings of five (5) or more units, must arrange for recycling services specifically for the organic waste that they generate in the manner specified in subsection (k) as follows: (1) On and after April 1, 2016, a business that generates eight (8) cubic yards or more of organic waste per week shall arrange for recycling services specifically for organic waste; (2) On and after January 1, 2017, a business that generates four (4) cubic yards or more of organic waste per week shall arrange for recycling services specifically for organic waste; (3) On and after January 1, 2019, a business that generates four cubic yards or more of commercial solid waste, as defined in Public Resources Code section 42649.1, per week, shall arrange for recycling services specifically for organic waste; and (4) On or after January 1, 2020, if the state Department of Resources Recycling and Recovery determines that statewide disposal of organic waste has not been reduced to fifty (50) percent of the level of disposal during 2014, a business that generates two (2) cubic yards or more per week of commercial solid waste shall arrange for the organic waste recycling services specifically for organic waste, unless the department of resources recycling and recovery determines that this requirement will not result in significant additional reductions of organics disposal. (1) All businesses as defined by Public Resources Code section 42649.8 et seq. including multi- family residential dwellings of five (5) or more units located within the city shall do one or more of the following, except that a multifamily residential dwelling is not required to arrange for the organic waste recycling for food waste: (1) Source separate organic waste from other waste and subscribe to a basic level of organic waste recycling service that includes collection and recycling of organic waste with a permittee that recycles organic waste; (2) Recycle its organic waste onsite or self -haul its own organic waste for recycling; (3) Subscribe to a mixed waste processing service from a permittee that recycles organic waste; and/or (4) Donate or sell organic waste to a person or entity authorized by law to receive such waste. (m) Property management companies that contract for trash service for any commercial, institutional, or multi -family properties subject to this article are required to contract or otherwise make available recycling services to comply with this section. H. Section 8-84 shall be amended to read as follows: Sec. 8-84. - Source reduction and recycling. (a) This section is enacted for the purpose of compliance with the California Integrated Waste Management Act of 1989 in accordance with California Public Resources Code Sections 40000 et seq. ("Act"). The city has adopted a source reduction and recycling element and household hazardous waste element pursuant to said Act which provides for the imposition and collection of charges to fund the preparation, adoption and implementation of said elements. Such charges shall be determined, fixed and established by the city council by resolution. Such charges may be changed by the city council from time to time by resolution. (b) A solid waste franchise permittee, as a condition of the permit, shall comply with the following source reduction and recycling requirements: (1) The permittee shall take all necessary steps to cause the industrial, commercial, multifamily residential units, and residential units who produce solid waste subject to the permit and the Act to divert solid waste as required by California Public Resources Code Section 41870 through source reduction, recycling and composting. (2) The permittee shall provide quarterly reports to the public services department, on the form and in the format required by the city, summarizing its progress in diverting solid waste generated by its customers in the city as required by California Public Resources Code Sections 41870 and 41821. The quarterly reports shall identify the tonnage collected, tonnage recycled, tonnage composted, percentage of waste recycled and/or composted, materials recycled, and the facilities receiving all waste generated. In addition, quarterly reports shall provide the level of customer specific data required to enable the city to be in compliance with State -mandated reporting requirements. Quarterly reports shall be due 30 days after the calendar quarter's end. Late reports shall be subject to a fine, which shall be established by city council resolution. All requested report data shall be provided. Incomplete reports shall not be accepted and shall be considered as late reports until they are fully completed. (3) As a permittee of the city, the permittee shall be an authorized recycling agent of the city and shall become the owner of all solid waste and recyclable materials, and hazardous waste and infectious waste collected pursuant to the permit. The permittee is solely responsible for arranging for the collection, transportation, recycling, and disposal of all solid waste, hazardous waste or infectious waste collected pursuant to the permit. The recyclables become the property of the permittee once placed in the collection bin. (4) The permittee shall collect a source reduction and recycling fee as imposed by resolution of the city council pursuant to the California Public Resources Code Section 41902 and this section. (c) A contractor self -haul permittee, as a condition of the permit, shall comply with the following requirements to show compliance with section 8-84: (1) Apply for per -project permits. These per -project permits are required for each job performed during the calendar year in which the permittee is authorized by the city to haul the solid waste they generate. (2) Pay required per -project fees, which shall be established by city council resolution. (3) Complete and submit all required forms. (4) Divert sixty-five percent (65%) of the solid waste generated by the contractor's business activity on that project, or present the city with evidence showing the maximum amount of solid waste was diverted from landfills. (5) Pay any penalty assessed by the city for failure to provide required reports, weight tickets, or other requested substantiation of compliant hauling activity requested by the city. These penalties are as follows: (A) A penalty amount equal to three times the established per -project fee, for failure to submit any required form or weight ticket for that project. (B) A penalty amount equal to two times the established per -project fee, for failure to achieve a sixty-five percent (65%) diversion rate or provide substantiation that the maximum solid waste possible was diverted from landfill. It shall solely be at the city's discretion, to determine if the maximum solid waste possible was diverted from landfill. (d) Failure of the permittee to comply with the provisions of this section shall subject the permittee to additional civil penalties as determined and approved by city council pursuant to California Public Resources Code Section 41954. (e) Notwithstanding the provisions of section 8-83, a person or entity owning or occupying an industrial, commercial, multifamily residential, or residential unit shall be permitted to create and use compost, as defined in California Public Resources Code Section 40116, on the private or public property that such person or entity owns or occupies. (f) The requirements of this section shall not apply to the solid waste handling services provided by the solid waste enterprise under contract with the CMSD, provided the CMSD establishes source reduction and recycling standards that are compliant with all State mandates upon the waste collected under the CMSD's contract. I. Section 8-87 shall be amended to read as follows: Sec. 8-87. - Franchise fee. (a) Grant of franchise. The city hereby grants a solid waste hauling franchise to any solid waste enterprise upon the issuance to it of a permit issued pursuant to section 8-77 of this article. The term of the franchise shall run concurrently with the term of the permit and shall end upon the 19 termination of the permit. The valid possession of such a permit shall be deemed to make a solid waste enterprise a franchisee under this section. (b) Franchise fee. Every holder of a franchise issued pursuant to this section ("franchisee") shall pay a franchise fee as set by city council resolution based on the percentage of quarterly gross receipts. The purpose of the franchise fee is to provide funds to the city to pay for the maintenance and rehabilitation of the public highways in the city and for other general revenue purposes. Franchisees shall pay an annual minimum franchisee fee in the amount of ten thousand dollars ($10,000.00). This fee shall be prorated in the amount of two thousand five hundred dollars ($2,500.00) per quarter beginning with the quarter in which the franchise is granted. Such annual minimum franchisee fee payments shall be paid to the city upon issuance of a permit pursuant to section 8-77 of this article and, thereafter, by January 1 of each calendar year. Failure to timely pay franchise fees shall result in a penalty in the amount of five percent (5%) of the delinquent franchise fee owed, plus an additional one and one-half percent (1.5%) of the fee for each month, or any portion thereof, that payment is late. Failure to timely pay franchise fees may also result in the commencement of permit revocation proceedings. The annual minimum franchisee fee shall be credited only toward the franchise fees that accrue during the same calendar year in which the minimum fee is paid. (c) Quarterly franchise fee reports and payments. Every franchisee is required to submit a quarterly franchise fee report and pay the established franchise fee on all gross receipts for that quarter. Pre -paid franchise fees are used to satisfy this quarterly obligation up to the full pre -payment amount. Failure to submit payment and the required report within forty-five (45) days of the end of each calendar quarter shall result in a fine, which shall be established by city council resolution, for each non -submittal. Submission of an incomplete report shall constitute a failure to submit a report and shall be subject to the same fine as that for non -submittal. (d) Records requirements. Every franchisee shall maintain all records relating to its solid waste handling services pursuant to this section, including, but not limited to, customer lists, billing records, services requests, cash receipts records, records demonstrating compliance with the requirements of section 8-84(b) of this article, and other documents and materials that reasonably relate the franchisee's compliance with this section. Upon five (5) business days' notice, such records shall be made available for city inspection at the franchisee's regular place of business. If the franchisee's regular place of business is not located within the county, the franchisee shall make such records available for city inspection at a location within the county, as determined by the city. (e) Audit requirements. An independent auditing firm shall perform an audit, at the city's expense, of any franchisee's records (the "city audit") to ensure compliance with the provisions of this section on an annual and/or as -needed basis, to be determined by the city. The scope of the city audit shall be set by city council resolution. If a city audit determines that a franchisee has not paid its full franchise fee, the city shall invoice the franchisee for the amount of the net deficiency plus a penalty fee equal to twenty percent (20%) of the net deficiency. (f) Exemption for CMSD. The franchise fee imposed pursuant to this section shall not be imposed upon any solid waste enterprise that has a franchise or contract with the Costa Mesa Sanitary District for any revenue the solid waste enterprise earns under that franchise or contract. Section 2. Compliance with CEQA. Adoption of this Ordinance is exempt from the California Environmental Quality Act ("CEQA") under CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment. 6) Section 3. Inconsistencies. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. Section 4. Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Costa Mesa hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional. Section 5. Effective Date. This Ordinance shall take effect thirty (30) days after its final passage. Section 6. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted in the manner required by law. PASSED AND ADOPTED this _ day of , 2018. ATTEST: Brenda Green, City Clerk Sandra L. Genis, Mayor APPROVED AS TO FORM: Thomas Duarte, City Attorney 0)6 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, BRENDA GREEN, City Clerk of the City of Costa Mesa, do hereby certify that the foregoing ordinance was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the _ day of , 2018, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this day of , 2018. BRENDA GREEN, CITY CLERK (SEAL) I� ATTACHMENT 2 ORDINANCE NO. 18-01 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AMENDING ARTICLE 1 (SOLID WASTE COLLECTION) OF CHAPTER IV (GARBAGE, RUBBISH AND WEEDS) OF TITLE 8 (HEALTH AND SANITATION) OF THE COSTA MESA MUNICIPAL CODE WHEREAS, the 2016 California Green Building Standards Code ("CalGreen Code") expands the number and type of projects the City is required to administer, monitor, and report on to the State, including the tracking of all new construction, permitted additions and alterations to non-residential buildings, and additions and alterations to residential buildings that increase a structure's conditioned area; and WHEREAS, permitting self -hauling by contractors will create an easier and more cost- effective option for contractors to legally haul construction and demolition materials generated within the City, while aiding the City in meeting State -mandated administration, monitoring, and reporting requirements for such diversion; and WHEREAS, in 2016, 23,557.60 tons of City waste was taken to Orange County landfills by non -franchised hauling activity; and WHEREAS, establishing a mechanism through which containers used for illegal hauling activities can be confiscated, and imposing fees for such confiscation, will aid in deterring illegal hauling in the City; and WHEREAS, Assembly Bill (AB) 341 (Mandatory Commercial Recycling) and Assembly Bill (AB) 1826 (Mandatory Commercial Organics Recycling) establish monitoring and reporting requirements, and penalties for failing to comply with such requirements; and WHEREAS, establishing administrative penalties will support the City's compliance efforts with AB 341, AB 1826, and CalGreen Code monitoring and reporting requirements; and WHEREAS, this Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), the CEQA Guidelines, and the City's environmental procedures, and has been found to be exempt pirsuant to Sec_.tion 15061(b)(3) (General Rule). in that the City Council hereby finds that it can be seen with certainty that there is no possibility that the passage of this Ordinance will have a significant effect on the environment. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Sections 8-76, 8-77, 8-78, 8-79, 8-81, 8-82, 8-83, 8-84, and 8-87 of Article 1 (Solid Waste Collection) of Chapter IV (Garbage, Rubbish and Weeds) of Title 8 (Health and Sanitation) of the Costa Mesa Municipal Code are hereby amended as follows: A. Section 8-76 shall be amended to read as fuiiows: Sec. 8-76. - Definitions. The following terms as used in this article shall, unless the context already indicates otherwise, have the respective meanings herein set forth: (a) Collection: The operation of gathering together and transporting solid waste to the point of disposal. (b) County: County of Orange. (c) Commercial units: Any commercial business establishment including, but not limited to, hotels, motels, offices and professional buildings, and retail establishments of all kinds, including supermarkets, filling stations, department and variety stores. (d) Contractor Self -Haul: The act of hauling solid waste, subject to this article, by construction and demolition contractors as an ancillary function to their primary business activity. (e) Disposal: The complete operation of treating and disposing of the accumulations of refuse and of the product or residue arising from such treatment. (f) Disposal station: A facility established, maintained and operated by the City or the County for the disposal of refuse. (g) For -hire hauling: A business relationship that provides compensation for the hauling of solid waste subject to this article. (h) Garbage: Solid waste as defined in California Public Resources Code Sections 40191 and 49503. (i) Multifamily residential units: A permanent building containing two (2) or more dwelling units including, but not limited to, mobile home parks. Q) Hazardous waste: (1) All waste defined or characterized as hazardous waste by the Federal Solid Waste Disposal Act (42 U.S.C. § 3251 et seq.), as amended, including the Resource Conservation and Recovery Act of 1976 (42 U.S.C. § 6901 et seq.), and all future amendments thereto, or regulations promulgated thereunder; and (2) All waste defined in Caiifor i iia Public Resources Code Section 40141 or characterized as hazardous waste by the Principal agencies of the State of California (including without limitation the Department of Health Services and the California Waste Management Board) having jurisdiction over hazardous waste generated by facilities within such state; provided that the term "hazardous waste": a. Is intended to mean and include those substances which are not normally expected to be disposed of by generally accepted sanitary landfill disposal methods; b. Shall include radioactive wastes; and c. Shall be construed to have the broader, more encompassing definition where there exists a conflict in the definitions employed by two (2) or more governmental agencies having concurrent or overlapping jurisdiction over hazardous waste. (k) Illegal hauling: The act of performing for -hire hauling of any solid waste material subject to Me this article without obtaining a City -issued permit. (1) Industrial units: Any business establishment engaged in manufacturing, warehousing, construction, and/or demolition. (m) Infectious waste: Solid waste capable of producing an infection or pertaining to or characterized by the presence of pathogens or medical waste as regulated by the Medical Waste Management Act (California Health and Safety Code Section 25015 et seq.). It includes but is not limited to certain wastes generated by medical practitioners, hospitals, nursing homes, medical testing labs, mortuaries, taxidermists, veterinarians, veterinary hospitals, medical testing labs, and any waste which includes animal wastes or parts from slaughterhouses or rendering plants. (n) Intermediate processing facility: A solid waste transfer or processing station or facility as defined in California Public Resources Code Section 40200. (o) Material recovery facility: A solid waste facility where source -separated recyclables are processed and recovered. (p) Permittee: Any person or solid waste enterprise who collects, hauls or disposes of any form of solid waste, hazardous waste or infectious waste for compensation pursuant to a permit issued under this section. (q) Public highway: Any public street, alley, road, public place or highway open to and used by the traveling public and not used as a private right-of-way. (r) Recycling: The process of collecting, sorting, treating, and reconstituting materials that would otherwise become solid waste, and returning them to the economic mainstream as defined in California Public Resources Code Section 40180. (s) Recyclable material: Solid waste material that through a process of collecting, sorting, cleansing, treating and reconstituting is returned to the economic mainstream in the form of raw material for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace. (t) Refuse: Solid waste as defined in California Public Resources Code Sections 40191 and 49503. (u) Residential units: All those dwelling units not included in the definition of multifamily residential units unless otherwise designated by the city. (v) Scavenge: The unauthorized removal of any recyclable materials as defined by California Public Resources Code Sections 41950 and 41951 or solid waste without a permit under this article. (w) Solid waste: All solid waste as defined in California Public Resources Code Sections 40191 and 49503. (x) Solid waste enterprise: A solid waste enterprise as defined in California Public Resources Code Section 49504. (y) Solid waste handling services: A solid waste handling service as defined in California Public 110 Resources Code Section 49505. (z) Transfer station: A solid waste transfer or processing station or facility as defined in California Public Resources Code Section 40200. (aa) Organic waste: Organic material including food waste, green waste, landscape and pruning waste, nonhazardous wood waste, and food -soiled paper waste that is mixed with food waste. B. Section 8-77 shall be amended to read as follows: Sec. 8-77. — Permit. (a) No person, contractor, or solid waste enterprise shall charge a fee or accept any form of compensation to collect any solid waste, hazardous waste or infectious waste upon, along or across any public highway in the city from any commercial, industrial or multifamily residential units, or residential units without first applying for and receiving all permits required from the city. In addition to the permit required under this article, a business license must be obtained prior to doing business within the city, and a separate vehicle permit for each and every vehicle used for collecting solid waste, hazardous waste or infectious waste and setting of containers within the city right-of-way. The permittee shall place each permit issued pursuant to this article in the lower right front window of the vehicle so that it is clearly visible from the street. (b) The city shall develop and implement a procedure for evaluating the performance of any and all permittees operating under the provisions of this article. Permitted haulers shall submit reports on their hauling activity, as required by the director of public services. These reports shall be submitted in the format and frequency established by the director of public services. Failure to provide said reports, by their established due date, will result in an administrative penalty. If said reports are not submitted within forty-five (45) days of the imposition of an administrative penalty, along with payment of said penalty, the hauler's permit will be revoked as provided in section 8- 79. Failure to meet minimum diversion rates will result in the revocation of the permit as provided in section 8-79. (c) Any person, contractor or solid waste enterprise who is issued a permit pursuant to this article shall comply with all of the regulations in this article including but not limited to the source reduction and recycling provisions of section 8-84. (d) Any person, contractor or solid waste enterprise desiring to obtain a permit to remove or convey any solid waste, hazardous waste or infectious waste upon or along any public highway within the city from any commercial, industrial or residential multifamily unit(s), or residential unit(s), shall sign and file an application with the city and pay a permit application fee established by resolution of the city council. To the extent permitted by law, the information submitted in the application shall be kept confidential. (e) Each permit application shall be filed with the public services department and shall include the following information: (1) The name and address of the applicant. (2) The number and type of vehicles to be used by the applicant. (3) Additional information, as established by the director of public services, to assist the city's administration and oversight authority as established by State law. (4) For hazardous waste and infectious waste, written proof that the person or solid waste enterprise has obtained all necessary permits from the county, State of California and federal agencies for the collection of such waste and has insurance coverage for the transport and disposal of such waste. (f) For -hire haulers shall be required to obtain a "solid waste franchise" permit. This permit will allow for the provision of recurring and temporary services in all areas franchised by the City of Costa Mesa. In addition to the requirements established for all permit applicants herein, the solid waste franchise permit applicant shall also be required to submit: (1) A written source reduction and recycling plan with details and time frame for implementation on how the permittee will provide the programs to its customers, as required by the City of Costa Mesa Source Reduction and Recycling Element, which include but are not limited to all of the following: a. Reduction of solid waste to maintain a fifty percent (50%) diversion rate through source reduction, recycling and composting, and a sixty-five percent (65%) diversion rate for construction and demolition waste. b. Economic incentives to achieve the diversion rates set forth in subparagraph a. herein. c. Technical, instructional, promotional, and educational programs to achieve the diversion rates set forth in subparagraph a. herein. d. Composting programs to facilitate the achievement of the diversion rates set forth in subparagraph a. herein. e. Special waste programs. f. Organic waste recycling programs. In order to comply with the requirements of Chapter 12.9 of Part 3 of Division 30 of the Public Resources Code, the director of public services shall require a permit applicant to demonstrate its ability to provide organics recycling services as a condition of permit issuance. g. Other information or additional financial information, including, but not limited to, the right to audit financial records, or require a performance bond, or other suitable evidence of financial responsibility, if at any time such information is found to be necessary by the city council. The permittee will provide a certified copy of the permittee's last fiscal year's financial report, audited by a certified public accountant. All financial information contained in the permit application made to the city pursuant to this article shall be deemed to be confidential and shall be retained by the city for its use and, under no circumstances, will such information be released to anyone other than the permittee without the consent of the permittee. (g) The Costa Mesa Sanitary District ("CMSD") will continue its franchise for all single-family residential and multi -family residential receiving curbside service. No other permittee will be allowed to operate in areas governed by the CMSD. (h) Contractor self -haul permit applicants must comply with items (a) through (e) of this section and shall also provide per -project forms, as required by the director of public services, and subsequently submit all waste disposal and diversion tickets associated with their project(s) at the time prescribed by the director of public services. Failure to submit both the required form and all associated weight tickets shall subject the permittee to an administrative penalty as outlined in section 8-84. C. Section 8-78 shall be amended to read as follows: Sec. 8-78. — Issuance or denial of permit. (a) When an application has been made to the city for a permit pursuant to this article, it shall be the duty of the director of the public services department to consider the matter; and he or she shall have the right to grant, condition or deny the permit request, and such decision shall be subject to an appeal to the city council pursuant to Chapter IX of Title 2 of this Code. In granting, conditioning or denying the permit request, the director of public services and the city council may take into consideration factors, including, but not limited to, the following: (1) The ability of the permittee to comply with the solid waste handling service standards enumerated in this article. (2) The ability of the permittee to comply with the equipment standards enumerated in this article. (3) The ability of the permittee to comply with the provisions regarding insurance or bonds enumerated in this article. (4) The ability of the permittee to provide programs and comply with the City of Costa Mesa Source Reduction and Recycling Element and implement the source reduction and recycling plan proposed by the permittee pursuant to paragraph (f) of section 8-77. (b) The decision by the city council on a permit application shall be final. (c) No permit granted pursuant to this article shall be assigned or transferred without the consent of the director of public services. The term of the solid waste franchise permit shall be for a period of seven (7) years, provided that on each anniversary date of a permit it shall be automatically extended for one (1) additional year so that the term remains seven (7) years unless at least sixty (60) days prior to the anniversary date either the city or permittee notifies the other in writing that the permit will not be renewed in which case the term shall not be extended for an additional year and will have only six (6) years remaining and shall not be automatically extended thereafter. Nothing in this subdivision shall prevent the city from terminating a solid waste franchise permit before the end of its term pursuant to the provisions of section 8-79. No permit granted pursuant to this article shall limit the right of the city to grant an exclusive or nonexclusive franchise for solid waste handling services in the city. A permit issued under this article shall not grant the permittee rights under California Public Resources Code Section 49520, where at the time the permit is granted the permittee did not have a right to continue service under such section. D. Section 8-79 shall be amended to read as follows: Sec. 8-79. — Revocation of permit. (a) In the event that any person, contractor or solid waste enterprise holding a permit to collect solid waste, hazardous waste, or infectious waste upon or along any public highway within the city from any commercial, industrial, or multifamily residential unit(s), or residential unit(s) violates any of the conditions of such permit, the requirements of section 8-87, the provisions of this article, or any other ordinance, statute, or regulation relating to the collection, storage, or disposal of solid waste, hazardous waste, or infectious waste, or collects such solid waste in an unlawful, improper, or unsanitary manner, the director of public services may revoke such permit issued to such person, contractor, or solid waste enterprise as provided by this section. (b) The director of public services may revoke a permit by issuing a written order to the permittee and the order shall state the grounds for such revocation, and that if proof of compliance is not provided to the director of public services within thirty (30) calendar days from the date of the written order, the permit will be revoked forty-five (45) calendar days from the date the written order was mailed. The order shall be mailed by certified mail to the permittee. The written order shall be subject to an appeal to the city council pursuant to Chapter IX of Title 2 of this Code. Upon revocation of a permit, the permittee shall cease all services subject to the permit within seventy-five (75) calendar days from the date the order is mailed. The director may adopt regulations to implement the provisions of this section. (c) If a solid waste franchise permittee fails to comply with the requirements of section 8-84, including, but not limited to, the achievement of diversion requirements, the following procedure will be followed: (1) The director will determine whether the permittee has made a good faith effort to comply with the conditions of the permit and the requirements of this article. The director will consider evidence submitted by the permittee concerning this matter and the permittee has the burden of establishing that it has made reasonable and feasible good faith efforts to achieve compliance. Evidence to be considered on this issue includes, but is not limited to, how close to compliance the particular deficiency is, the efforts the permittee has taken to meet the requirement, the expense required to provide the permittee with the means for compliance, the results of similar permittees in meeting the requirement, the availability of new technologies which the permittee could utilize to satisfy the requirement, the plans submitted by the permittee showing what steps it plans to take to enable it to fully comply with the requirement and the time that will take, whether permittee has already taken reasonable steps to alter its operations in time to meet the requirement, and what impact the permittee's failure has on the city's overall compliance with the state requirements for solid waste reduction and diversion. The permittee's good faith efforts must conform to any guidelines established by the city and/or the state in this regard. (2) The provision s of this subsection authorizing the direCtnr 4n rnncirrler the goon' faith efforts of a permittee shall only be applicable so long as the state authorizes and grants a comparable good faith exception concerning the city's responsibilities under state law. (3) If the director determines that a good faith effort has been made by the permittee, the director may decide not to revoke the permit. If the permit is not revoked, the director may impose new conditions to the permit, such as: (i) the permittee must prepare a full compliance plan to show how it intends to meet the diversion requirement, (ii) the plan must be submitted within 30 days and approved by the director, (iii) the permittee must comply with that plan, or (iv) any other conditions that the director concludes are appropriate and will help meet the requirements of state law and the city ordinance. (4) If a permit is not revoked because the director determines that a good faith effort had been made, the permit revocation process may be commenced again at any time the director determines new grounds therefor exists, including, but not limited to, noncompliance with any new conditions placed upon the permit at the time the good faith determination was made. (d) If a permit is revoked, no permit shall be thereafter granted to such person to collect solid waste, hazardous waste or infectious waste in the city until such time as the permittee can prove the ability to comply with this article. E. Subsection (f) of Section 8-81 shall be amended to read as follows: (f) Solid waste franchise permittees shall maintain a place of business at some fixed place and shall maintain a telephone, listed in the telephone directory in his or her own name or in the firm name by which he or she is most commonly known. At all times during the hours between 8:00 a.m. and 5:00 p.m. of each day upon which collections are made, said office must be staffed to receive complaints regarding collection. An emergency number shall be made available to city hall for the hours between 5:00 p.m. and 8:00 a.m. and for days upon which collections are not made. F. Subsection (a) of Section 8-82 shall be amended to read as follows: (a) The permittee shall at all times keep fully insured, at his or her own expense, all persons employed by him or her in connection with the contract or permit workers' compensation insurance as required by the State of California, and shall hold the city free and harmless from all liabilities that may arise by reason of the injuries to any employee of the permittee who is injured while performing any work or labor necessary to carry out the provisions of a contract or permit. The permittee, during the life of the permit, shall keep on file with the city clerk evidence that the permittee is fully and properly insured as required by State law. G. Section 8-83 shall be amended to read as follows: Sec. 8-83. - Regulations (a) It shall be unlawful for any person to place, deposit, dump or cause to be placed, deposited or dumped any solid waste, hazardous waste or infectious waste in or upon any private property or in or upon any public property which the public is admitted by easement or license without the consent of the owner, or in or upon any public highway, street, alley, sidewalk, gutter, parkway or upon any private road, alley, sidewalk, gutter or driveway in common use, or upon any public property other than property designated or set aside as a disposal station for such purpose by resolution of the city council or county board of supervisors. (b) It shall be unlawful for any person � to place, deposit or dump solid waste, hazardous waste or infectious waste of any kind whatsoever upon any private or public property within a distance of one thousand (1,000) feet from any public highway in the city, or within a distance of five hundred (500) feet from any established residence or dwelling house within the city, or to cause or suffer or permit such solid waste, hazardous waste or infectious waste to be placed, deposited or dumped upon any public or private property within a distance of one thousand (1,000) feet of any public highway or within a distance of five hundred (500) feet of any established residence or dwelling house in the city, without first having obtained a use permit pursuant to the zoning laws of the city, county, and State of California, or pursuant to any other zoning law that may be hereafter adopted in the place and stead of said zoning laws of the city. The provisions of this subsection shall not apply to solid waste, hazardous waste or infectious waste placed into a container for pickup by a solid waste enterprise operating pursuant to a permit issued under this article. (c) No person shall burn any solid waste, hazardous waste or infectious waste within the city without having first complied with all rules and regulations of the city, the county, the South Coast Air Quality Management District and the state. (d) No person shall scavenge or bury any solid waste, hazardous waste or infectious waste within the city. (e) Special arrangements must be made and permits issued by the county, State of California, and federal agencies for the disposal of any of the following items: Ammunition; explosives; industrial waste; chemicals; infectious; hazardous and radioactive waste; acids; drugs; medicines; human feces; unwrapped animal feces; and items which are too large for the collection equipment or which may damage the collection machinery such as large pieces of metal, machine parts, logs and tree stumps. (f) Branches of trees, hedges, etc., shall be cut in lengths of not over four (4) feet and placed in containers or tied into bundles not exceeding fifty (50) pounds. All vacuum cleaner dust sweepings or ashes shall be wrapped and placed in the container. Newspapers and magazines may be bundled in bundles not exceeding fifty (50) pounds maximum. All metal containers may be placed in an enclosed container or wrapped in bundles not exceeding fifty (50) pounds maximum. In areas of curbside refuse collection, the requirements of this subsection are superseded by any requirements of the CMSD. (g) It shall be unlawful for a person, contractor or solid waste enterprise to commingle solid waste collected from within the jurisdiction of the City of Costa Mesa with solid waste collected from any other jurisdiction. A violation of this subsection shall result in the revocation of the permit pursuant to section 8-79. (h) For any type of solid waste collection in the city, it shall be unlawful for any person to use the services offered by a person, service, or enterprise that has not obtained all the required permits from the city pursuant to this article. (i) It shall be unlawful for any person, contractor or solid waste enterprise to place solid waste collection containers on public eF private property without the appropriate city permit. For the first violation of this subsection, the city will impound container(s) of non -permitted persons, contractors or solid waste franchises forty-eight (48) hours after such container(s) are observed by the city or the city's agent. For the second violation of this subsection, the city will impound containers of non -permitted persons, contractors or solid waste enterprises previously noticed or impounded twenty-four (24) hours after such container(s) are observed the city or the city's agent. Any subsequent violations shall be Subject to immediate confiscation. Permitted haulers shall place signage and/or markings on their containers to clearly identify them as property of the permitted hauler, as required by the city. When a container that does not contain signage or markings to clearly identify it as the property of a permitted hauler is observed, a notice shall be placed upon the container to inform its owner that illegal hauling has been established. The owner of that container will have forty-eight (48) hours to remove said container or place signage identifying it as property of the permitted hauler so that the city or city's agent can determine if it is the property of a permitted hauler. If containers placed in violation of this section are not removed within the time periods set forth herein, an impound fee, per container, shall be imposed to cover the costs of impound, disposal of materials, container storage, and an administrative penalty fee for city enforcement and administration. The impound fee shall be established by city council resolution. If the owner of the impounded container does not pay the full impound fee to the city within ninety (90) days of impound, the impounded container shall become the property of the city to satisfy the impound qO fee. The city reserves the right to, on an annual basis, enter into an impound services agreement, in accordance with the city's procurement policies. The selected solid waste enterprise shall be a solid waste franchise permittee and shall be authorized to enforce the city's franchise by confiscating any roll -off containers or trash bins used for illegal hauling within city limits. The contracted solid waste enterprise shall be authorized to collect the impound fee set forth herein. The owner of the container shall pay the impound fee in order to remove the property out of impound. If the owner does not pay within ninety (90) days of impound, the contracted solid waste enterprise shall keep the impounded container to satisfy its service and hauling charges. Q) All businesses as defined by Public Resources Code section 42649.1 generating four (4) cubic yards of trash per week, and all multi -family properties of five (5) units or more, must arrange for the collection and recycling of solid waste as follows: (1) Source separate recyclable materials from solid waste and subscribe to a basic level of recycling service that includes collection, self -hauling, or other arrangements for the pickup of the recyclable materials with a permittee. (2) Subscribe to a recycling service with a permittee that may include mixed waste processing that yields diversion results comparable to source separation. (k) On or before April 1, 2016, all businesses as defined by Public Resources Code section 42649.8 et seq., including multi -family residential dwellings of five (5) or more units, must arrange for recycling services specifically for the organic waste that they generate in the manner specified in subsection (k) as follows: (1) On and after April 1, 2016, a business that generates eight (8) cubic yards or more of organic waste per week shall arrange for recycling services specifically for organic waste; (2) On and after January 1, 2017, a business that generates four (4) cubic yards or more of organic waste per week shall arrange for recycling services specifically for organic waste; (3) On and after January 1, 2019, a business that generates four cubic yards or more of commercial solid waste, as defined in Public Resources Code section 42649.1, per week, shall arrange for recycling services specifically for organic waste; and (4) On or after January 1, 2020, if the state Department of Resources Recycling and Recovery determines that statewide disposal of organic waste has not been reduced to fifty (50) percent of the level of disposal during 2014, a business that generates two (2) cubic yards or more per week of commercial solid waste shall arrange for the organic waste recycling services specifically for organic waste, unless the department of resources recycling and recovery determines that this requirement will not result in significant additional reductions of organics disposal. (1) All businesses as defined by Public Resources Code section 42649.8 et seq. including multi- family residential dwellings of five (5) or more units located within the city shall do one or more of the following, except that a muitifamiiy residential dwelling is not required to arrange for the organic waste recycling for food waste: (1) Source separate organic waste from other waste and subscribe to a basic level of organic waste recycling service that includes collection and recycling of organic waste with a permittee that recycles organic waste; Ui) (2) Recycle its organic waste onsite or self -haul its own organic waste for recycling; (3) Subscribe to a mixed waste processing service from a permittee that recycles organic waste; and/or (4) Donate or sell organic waste to a person or entity authorized by law to receive such waste. (m) Property management companies that contract for trash service for any commercial, institutional, or multi -family properties subject to this article are required to contract or otherwise make available recycling services to comply with this section. H. Section 8-84 shall be amended to read as follows: Sec. 8-84. - Source reduction and recycling. (a) This section is enacted for the purpose of compliance with the California Integrated Waste Management Act of 1989 in accordance with California Public Resources Code Sections 40000 et seq. ("Act"). The city has adopted a source reduction and recycling element and household hazardous waste element pursuant to said Act which provides for the imposition and collection of charges to fund the preparation, adoption and implementation of said elements. Such charges shall be determined, fixed and established by the city council by resolution. Such charges may be changed by the city council from time to time by resolution. (b) A solid waste franchise permittee, as a condition of the permit, shall comply with the following source reduction and recycling requirements: (1) The permittee shall take all necessary steps to cause the industrial, commercial, multifamily residential units, and residential units who produce solid waste subject to the permit and the Act to divert solid waste as required by California Public Resources Code Section 41870 through source reduction, recycling and composting. (2) The permittee shall provide quarterly reports to the public services department, on the form and in the format required by the city, summarizing its progress in diverting solid waste generated by its customers in the city as required by California Public Resources Code Sections 41870 and 41821. The quarterly reports shall identify the tonnage collected, tonnage recycled, tonnage cosi posted, percentage of waste recycled and/or composted, materials recycled, and the facilities receiving all waste generated. In addition, quarterly reports shall provide the level of customer specific data required to enable the city to be in compliance with State -mandated reporting requirements. Quarterly reports shall be due 30 days after the calendar quarter's end. Late reports shall be subject to a fine, which shall be established by city council resolution. All requested report data shall be provided. Incomplete reports shall not be accepted and shall be considered as late reports until they are fully completed. (3) As a permittee of the city, the permittee shall be an authorized recycling agent of the city and shall become the owner of all solid waste and recyclable materials, and hazardous waste and infectious waste collected pursuant to the permit. The permittee is solely responsible for arranging for the collection, transportation, recycling, and disposal of all solid waste, hazardous waste or infectious waste collected pursuant to the permit. The recyclables become the property of the permittee once placed in the collection bin. (4) The permittee shall collect a source reduction and recycling fee as imposed by resolution of the city council pursuant to the California Public Resources Code Section 41902 and this section. (c) A contractor self -haul permittee, as a condition of the permit, shall comply with the following requirements to show compliance with section 8-84: (1) Apply for per -project permits. These per -project permits are required for each job performed during the calendar year in which the permittee is authorized by the city to haul the solid waste they generate. (2) Pay required per -project fees, which shall be established by city council resolution. (3) Complete and submit all required forms. (4) Divert sixty-five percent (65%) of the solid waste generated by the contractor's business activity on that project, or present the city with evidence showing the maximum amount of solid waste was diverted from landfills. (5) Pay any penalty assessed by the city for failure to provide required reports, weight tickets, or other requested substantiation of compliant hauling activity requested by the city. These penalties are as follows: (A) A penalty amount equal to three times the established per -project fee, for failure to submit any required form or weight ticket for that project. (B) A penalty amount equal to two times the established per -project fee, for failure to achieve a sixty-five percent (65%) diversion rate or provide substantiation that the maximum solid waste possible was diverted from landfill. It shall solely be at the city's discretion, to determine if the maximum solid waste possible was diverted from landfill. (d) Failure of the permittee to comply with the provisions of this section shall subject the permittee to additional civil penalties as determined and approved by city council pursuant to California Public Resources Code Section 41954. (e) Notwithstanding the provisions of section 8-83, a person or entity owning or occupying an industrial, commercial, multifamily residential, or residential unit shall be permitted create to `^ and �� use compost, as defined in California Public Resources Code Section 40116, on the private or public property that such person or entity owns or occupies. (f) The requirements of this section shall not apply to the solid waste handling services provided by the solid waste enterprise under contract with the CMSD, provided the CMSD establishes source reduction and recycling standards that are compliant with all State mandates upon the waste collected under the CMSD's contract. Section 8-87 shall be amended to read as follows: Sec. 8-87. - Franchise fee. (a) Grant of franchise. The city hereby grants a solid waste hauling franchise to any solid waste enterprise upon the issuance to it of a permit issued pursuant to section 8-77 of this article. The term of the franchise shall run concurrently with the term of the permit and shall end upon the a_a termination of the permit. The valid possession of such a permit shall be deemed to make a solid waste enterprise a franchisee under this section. (b) Franchise fee. Every holder of a franchise issued pursuant to this section ("franchisee") shall pay a franchise fee as set by city council resolution based on the percentage of quarterly gross receipts. The purpose of the franchise fee is to provide funds to the city to pay for the maintenance and rehabilitation of the public highways in the city and for other general revenue purposes. Franchisees shall pay an annual minimum franchisee fee in the amount of ten thousand dollars ($10,000.00). This fee shall be prorated in the amount of two thousand five hundred dollars ($2,500.00) per quarter beginning with the quarter in which the franchise is granted. Such annual minimum franchisee fee payments shall be paid to the city upon issuance of a permit pursuant to section 8-77 of this article and, thereafter, by January 1 of each calendar year. Failure to timely pay franchise fees shall result in a penalty in the amount of five percent (5%) of the delinquent franchise fee owed, plus an additional one and one-half percent (1.5%) of the fee for each month, or any portion thereof, that payment is late. Failure to timely pay franchise fees may also result in the commencement of permit revocation proceedings. The annual minimum franchisee fee shall be credited only toward the franchise fees that accrue during the same calendar year in which the minimum fee is paid. (c) Quarterly franchise fee reports and payments. Every franchisee is required to submit a quarterly franchise fee report and pay the established franchise fee on all gross receipts for that quarter. Pre -paid franchise fees are used to satisfy this quarterly obligation up to the full pre -payment amount. Failure to submit payment and the required report within forty-five (45) days of the end of each calendar quarter shall result in a fine, which shall be established by city council resolution, for each non -submittal. Submission of an incomplete report shall constitute a failure to submit a report and shall be subject to the same fine as that for non -submittal. (d) Records requirements. Every franchisee shall maintain all records relating to its solid waste handling services pursuant to this section, including, but not limited to, customer lists, billing records, services requests, cash receipts records, records demonstrating compliance with the requirements of section 8-84(b) of this article, and other documents and materials that reasonably relate the franchisee's compliance with this section. Upon five (5) business days' notice, such records shall be made available for city inspection at the franchisee's regular place of business. If the franchisee's regular place of business is not located within the county, the franchisee shall make such records available for city inspection at a location within the county, as determined by the city. (e) Audit requirements. An independent auditing firm shall perform an audit, at the city's expense, of any franchisee's records (the "city audit") to ensure compliance with the provisions of this section on an annual and/or as -needed basis, to be determined by the city. The scope of the city audit shall be set by city council resolution. If a city audit determines that a franchisee has not paid its full franchise fee, the city shall invoice the franchisee for the amount of the net deficiency plus a penalty fee equal to twenty percent (20%) of the net deficiency. (f) Exemption for CMSD. The franchise fee imposed pursuant to this section shall not be imposed upon any solid waste enterprise that has a franchise or contract with the Costa Mesa Sanitary District for any revenue the solid waste enterprise earns under that franchise or contract. Section 2. Compliance with CEQA. Adoption of this Ordinance is exempt from the California Environmental Quality Act ("CEQA") under CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment. IN Section 3. Inconsistencies. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. Section 4. Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Costa Mesa hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional. Section 5. Effective Date. This Ordinance shall take effect thirty (30) days after its final passage. Section 6. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted in the manner required by law. PASSED AND ADOPTED this _ day of , 2018. ATTEST: Sandra L. Genis, Mayor APPROVED AS TO FORM: Brenda Green, City Clerk Thomas Duarte, City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, BRENDA GREEN, City Clerk of the City of Costa Mesa, do hereby certify that the foregoing ordinance was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the _ day of , 2018, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this day of , 2018. BRENDA GREEN, CITY CLERK (SEAL) ATTACHMENT 3 CITY COUNCIL AGENDA REPORT MEETING DATE: DECEMBER 5, 2017 ITEM NUMBER: SUBJECT: AN ORDINANCE AMENDING ARTICLE 1 (SOLID WASTE COLLECTION) OF CHAPTER IV (GARBAGE, RUBBISH AND WEEDS) OF TITLE 8 (HEALTH AND SANITATION) OF THE COSTA MESA MUNICIPAL CODE, AND RESOLUTION ESTABLISHING FEES RELATING TO THE SAME TO MEET NEW STATE MONITORING AND REPORTING REGULATIONS DATE: NOVEMBER 22, 2017 FROM: PUBLIC SERVICES DEPARTMENT / ADMINISTRATION DIVISION PRESENTATION BY: RAJA SETHURAMAN, PUBLIC SERVICES DIRECTOR FOR FURTHER INFORMATION CONTACT: AMBER HASTON, MANAGEMENT ANALYST, (714) 754-5024 RECOMMENDATION: 1. Introduce and give first reading to Ordinance No. 17-xx (Attachment 1), to be read by title only, and further reading waived, amending Article 1 (Solid Waste Collection) of Chapter IV (Garbage, Rubbish and Weeds) of Title 8 (Health and Sanitation) of the Costa Mesa Municipal Code. 2. Adopt Resolution No. 17-xx (Attachment 2), establishing fees in connection with waste hauling. BACKGROUND: In 1993, the City of Costa Mesa established a permit system for the management of solid waste hauling for commercial and multi -family (5 or more units) complexes. Since its inception and evolution into a non-exclusive franchise, the City's hauling permit system structure has experienced difficulty incorporating all waste haulers into its franchise, including contractors that elect to self -haul the waste they generate from their primary business activity. Consequently, the current permit system structure does not facilitate necessary legal hauling activity or provide sufficient enforcement, which results in significant non -permitted and illegal hauling. The Costa Mesa Municipal Code currently indicates that only a permitted hauler (automatically included in the City franchise in either the A -Tier or B -Tier) can perform for -hire hauling. A -Tier franchised haulers may place, collect, transport, remove, recycle, and dispose of any type of solid waste material generated by commercial, single-family residential, multi -family residential or industrial units within the City's waste disposal jurisdiction, except for areas that receive single-family residential and multi -family residential curbside service under the Costa Mesa Sanitary District's franchise. The B -Tier franchised haulers may only operate affixed container vehicles to collect and transport non-putrescible and inert waste generated at construction and demolition sites and cannot provide drop-off containers or bins at these sites. By not providing a legal and cost-effective way for contractors to self -haul, the City continues to notice an increase in illegal hauling activity citywide to Orange County landfills based on the quarterly tonnage data provided to the City by the County of Orange. Assembly Bill 939 (AB 939), The Integrated Waste Management Act of 1989, requires the City to divert 50 percent of all waste from Orange County landfills. In addition, Senate Bill 1374 (SB 1374) requires the City to track and report on the construction and demolition waste and includes the 50 percent waste diversion from the landfill requirement on a per -project basis. As a result, the tonnage illegally hauled to Orange County landfills is not reflected in the City's annual report CalRecycle and does not contribute to the City's 50 percent recycling mandate. U-3? '�, ;.. , . , ; : n ■ fps-, _t If •�� � ! Ir•i , r � r �.-� ��5 -i •4 ' - - _ , � , - +, � •'-`; r-� � �-r�_ =y. �� I � I — -Li >�x n �•,4�•ru:�_ : _�� � r �' . - r ^ti, ` _ �. � ' i jjT n •571_ �-� � ra_dr _77, Y�- 1 7 1 ••.+TL f ''�. r'_� 'n r'!�r �'nfa'_■�15. •lr .r. �'f'''., �T• ''+� - �•- - '• - ��-r, }n �, � • V••�7r f I'.� ' �' I! -r.-! •_: • 1'+.� °r •t •a; i �I .L •.� - - 'Lam" ,yai '+' -1.5.. -ti y*'� 7 -iit 4 r '.a' . Fr 4.'■t.•� 7 .�•� J ' S _ _L.—�,LLtir - -.T •.� _ T+ .' 44~ - _ , - , `rte - - - - f' - • -nr ' ' __ — __ - - - OFO *mow *Mwn•. fl00 Lon M 77. ._v_ Qw * ' iwM r egi ti T *3 -dil7A y r' MI JEL 10 MOW Ir mom - A -9690t —I 77 l ! L --- The 2016 California Green Building Standards Code ("CALGreen Code") sets forth new recycling requirements for construction and demolition projects and expands the number and type of projects the City is required to administer, monitor, and report on to the State of California ("State"). The mandate includes tracking of all new construction, permitted additions and alterations to non- residential buildings, and additions/alterations to residential buildings that increase a structure's constructed area. The new CALGreen Code does not provide a dollar value limitation. Additionally, Sections 4.408 and 5.408 of the CALGreen Code requires the recycling and/or salvaging for reuse, a minimum of 65 percent of the non -hazardous construction and demolition project waste. ANALYSIS: The new State monitoring and reporting regulations along with necessary improvements to the City's current waste hauling franchise and the permit system can be addressed by way of three proposed revisions to the City's Municipal Code: (1) Legalize and Monitor Contractor Self -Haul and Eliminate the B -Tier Franchise, (2) Effectively Deter Illegal Hauling in a No Cost Manner, and (3) Establish Administrative Penalties. (1) Legalize and Monitor Contractor Self -Haul and Eliminate the B -Tier Franchise Contractor self -haul is the ability for contractors to haul the materials they generate, from their primary business activity, generally at a lower cost than a third -party waste hauler. Per the current Municipal Code, only a permitted hauler (automatically included in the City franchise per the current Code) can perform for -hire hauling. A -Tier haulers must pay an annual $610 permit fee and pre -pay $10,000 as a non-refundable franchise fee deposit. B -Tier haulers (affixed container vehicles) must pay a $610 annual permit fee and $1,500 of non-refundable franchise fees. The Municipal Code does not currently provide a mechanism for contractors to self -haul. Legalizing and tracking this beneficial activity via a separate permit that is not a part of the City's waste hauling franchise would provide businesses and residents with a cost-effective way for their contractors to self -haul while providing the City with the ability to track the waste generated from each project. This proposed permit provides designated self -haul contractors with a lower permit fee of $200 instead of the $610 permit fee required for franchised haulers and eliminates the required pre- payment of $1,500 to $10,000 of non-refundable franchise fees as reflected below in Table 1. It also eliminates the City's need to audit the financial records of such contractors to ensure the appropriate 16% franchise fees on gross receipts were paid. The contractors would pay on a project -by -project basis. Coinciding with this new contractor self -haul permit would be the elimination of the current B -Tier franchise, as virtually all current affixed container hauling would consequently transition to this new contractor self -haul permit. Table 1 Fee Type Annual Franchised Waste Proposed Contractor Hauler Permit and Self -Hauler Permit Fees Franchise Fees Permit Fee $610 $200 Pre -Payment of Franchise $10,000 (A -Tier) None Fees $1,500 (B -Tier) Percentage of Revenue 16% None from Gross Receipts The proposed self -haul permit provides an abbreviated permit process, only requiring a list of the vehicles contractors wish to use and that the City is listed as an additional insured on the permitted contractor's insurance policy. The $200 permit fee recovers staff time for reviewing the permit 2 ip '.T,:Lj'•IT' �� �r�'L I'.�Llr •7}•'i!}1-}-''S'� ■:+'?d. �I�=5 r�1'iY■-Q•'IL I_ .'�5 'i I�, !}�•n'. r 'I%i„"'TR„� _ _ MWWWAPO • F #meq f 1to xr r4 -ink" rr + MR ( qua - --� - - r - ---- - ' -fi�}w. F�Rf*'r wmkon bft..V� R� • 00 11f1*mq Lir wo la bmwo r' -- - - ] "T aL ir:. 41b 7�2 �■..ri•rL�ir. 1� th, f'f f 1 : til i���t - - - - f 1�� -ter .• 0 • ter• ,'""�f'r T %'+'+� 1 - ijftn a *q .gip w m OW+O e¢ -ow #PSI ow omqcp - �Grrr+�q kW"", ww 6* qw,xWwwwwo v WW* . � � � � . �— ■ �+ �F �� --�� •�._ r � tip-• � -ri _ _l * , rr� - - - � �•`_'�,L-��rl � 1 i ' _ n APg71— I ' ' rh 7"T'� 5 I ■rr: _ _ r '■•�rj 4—_ -�-� � � � 4 -'I. -- ' LI, _ +I _ � :1_.'�LLA•��+,yJ J.. ..t _ ? �_�.�m �lk' I'_ r''• T±R, IY, _ _��ti,r�•�+�6 �4'•.. ,Ir■ . � � .� __ '_ • �a� .+�L 1rti_4'1 a �L'' - - -I +- _"[�4'-_' AZT' X11 •j_ J-_��L1 — � �.•�. � _ __ � - � L—•�'Y �-" - 1MLLWJI.11'ai.Ly ip '.T,:Lj'•IT' �� �r�'L I'.�Llr •7}•'i!}1-}-''S'� ■:+'?d. �I�=5 r�1'iY■-Q•'IL I_ .'�5 'i I�, !}�•n'. r 'I%i„"'TR„� _ _ MWWWAPO • F #meq f 1to xr r4 -ink" rr + MR ( qua - --� - - r - ---- - ' -fi�}w. F�Rf*'r wmkon bft..V� R� • 00 11f1*mq Lir wo la bmwo r' -- - - ] "T aL ir:. 41b 7�2 �■..ri•rL�ir. 1� th, f'f f 1 : til i���t - - - - f 1�� -ter .• 0 • ter• ,'""�f'r T %'+'+� 1 - ijftn a *q .gip w m OW+O e¢ -ow #PSI ow omqcp - �Grrr+�q kW"", ww 6* qw,xWwwwwo v WW* . � � � � . �— ■ �+ �F �� --�� •�._ r � tip-• � -ri _ _l * , rr� - - - � �•`_'�,L-��rl � 1 i ' _ n APg71— I ' ' rh 7"T'� 5 insurance and vehicle requirements. It also covers staff time to track the annual self -haul contractors. Finally, similar to the other franchise fees, the $200 permit fee also was developed to cover the wear and tear on the City's roadway generated by hauling waste material. Once permitted, contractors could then haul the waste they generate on jobsites throughout the year by paying a per -project fee. The proposed fee structure is as shown below in Table 2: Table 2 Project Valuation Fees Projects of $20,000 or less: $160 flat fee Projects of $20,001 to $100,000: $160 fee, plus $3 for each additional $1,000 in value above $20,000, or fraction thereof, up to and including $100,000 Projects of $100,001 to $500,000: $400 fee, plus $2 for every $1,000 in value above $100,000, or fraction thereof, up to and including $500,000 Project valued at or greater than $500,001: $960 fee, plus $0.50 for every $1,000 in value above $500,000, or fraction thereof The above fees were developed to directly cover the City's administrative costs in tracking and reporting on contractors' waste hauling and diversion activities. As projects increase in value, there is generally an increased volume of waste generated. Consequently, the increased waste generated and hauled requires additional staff time to thoroughly review waste and tonnage receipts to confirm the contractors met the required applicable waste diversion for their projects, which is 65 percent for all CALGreen Code projects. In addition to the smaller fee payment, these contractors would be required to submit their hauling receipts and a one-page report to substantiate their waste diversion. While some Orange County cities opt to require a Construction and Demolition Waste Reduction and Recycling Plan, the one- page report provides a simpler format for the contractor to complete and the City to review while still assisting the City in meeting its State -mandated administration and monitoring of construction and demolition project diversion. Contractors could still opt to use a City franchised waste hauler to avoid any per -project fees, contractor hauling permit costs and reporting requirements. (2) Effectively Deter Illegal Hauling in a No Cost Manner During the calendar year 2016, a total of 23,557.60 tons out of approximately 100,000 tons of City waste was taken to Orange County landfills by non -franchised hauling activity. Contracted container confiscation is an effective and low-cost measure to minimize illegal hauling and is employed effectively in the neighboring cities of Huntington Beach and Fountain Valley. The Costa Mesa Municipal Code would be revised to support the following: 1. A City -franchised hauler is authorized, via a RFP process and subsequent contract, to identify and place a 48-hour notice on any illegal container found in the City (by that hauler and/or the City). The hauler will be required to email the City the date, time, and location of notice placed on the identified container to establish record of removal request. 2. If the container at issue is not removed within this 48-hour period, the contracted hauler is then authorized to remove that container and dump its contents at its designated facility. This establishes a collection cost, negotiated as part of the City's selection process, which must be paid by the owner of the illegally placed container in order to get his/her/its equipment out of impound. 3. A City -established impound fee must be paid by the owner of that illegally placed container. 4. If the owner of this container fails to pay impound fee, the owner's equipment is forfeited to the contracted hauler. 3 MEME 10.111 1■'r' ■ yArW -1OF�'%'tirr J - �NON. i-rmA ■ -1 rr ■ r ti ■■1■ MOMMEN MOM. ■ MEME NEE mom mom '1 T■Tmlm r17 - — - - -M•r - - - - — OW ■ ■ ■ 1• A' ■ girr 7 : ■ 1 TI r '.INm mmqwmyl%r 1.� �1 MIM E'r ■ ■ 1■ fWIN J`' r ■ i•■ MPO■ sm A■10%7.ItiM�Ml ■ii` MM1■. LL - -- 1W-W�JNNN- -�''rr-r ��w �i'AkAwsL& -Ed r -'. 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This confiscation program is effective as the contracted hauler can identify and tag these containers while performing regular collection activities. The City can monitor this activity effectively through email, requiring minimal staff time. The City would also require payment from the contracted hauler of the administrative penalty. The bin confiscation program is proposed to include a not -to -exceed penalty of $1,000 that encompasses a disposal fee (which will vary depending on the amount of waste in the container), an impound fee (which will be negotiated with the contracted hauler), and a City administrative fee. The City administrative fee would directly recover the City's cost in the process to confirm the permitted haulers and bins throughout the City. (3) Establish Administrative Penalties The City has a number of administration and oversight obligations under State solid waste management regulations and law. All obligations are currently unfunded mandates which the City is effectively meeting while maintaining a competitive system. With increased State monitoring and reporting requirements under AB 341 (Mandatory Commercial Recycling), AB 1826 (Mandatory Commercial Organics Recycling), and the CALGreen Code, the City needs to utilize administrative penalties to support compliance efforts and establish effective programs. AB 939 provides local agencies with the ability to develop and implement fees to recoup program costs. Establishing reasonable forms of administrative enforcement also demonstrates to the State that the City is effectively responding to recent mandates and implementing measures to administer an effective overall program. Consequently, the proposed administrative penalties include: $150 for each calendar month that a required tonnage report from a franchised waste hauler is late. This tonnage report is required on a quarterly basis. A $150 fine was previously established, by ordinance, by City Council for late franchised hauler quarterly franchise fee statements. Although the $150 fine was previously codified for late quarterly franchise fee reports, the proposed ordinance would provide that such a fine be established by City Council resolution and would further provide consistency for both quarterly reports required by the franchised waste haulers by imposing the same fine for late tonnage reports. The proposed resolution would re-establish the $150 fine for late quarterly franchise fee reports and impose the same fine for late quarterly tonnage reports. 2. Three -times the project fee for failure of an approved self -haul contractor to submit required weight tickets and diversion reporting forms. SB 1374 requires the City to track and monitor construction and demolition waste to the State, including reporting on the required waste diversion percentage per -project. Without establishing a penalty for submittal of such weight tickets and diversion reporting forms, the City will not have the ability to provide administrative enforcement over the Contractor Self -Haul Permit and Per -Project Permit or provide the State with the required information in its annual report. Two-times the project fee for failure to achieve a 65 percent diversion rate or provide substantiation that the maximum solid waste possible was diverted from the landfill. The new CALGreen Code requires CALGreen projects to divert 65 percent of waste generated from the landfill. The unfunded mandate delegates the administrative oversight and enforcement of this requirement to local agencies. Without implementing a fine, the City is limited in its ability to enforce this requirement. 4 -y'ti�' A. r -14.. �--' ,- _ i,•J _ ti.„ ,N�-'.�-L`r��: L ; • �.'.f i ,i'y,n�-' ,. 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The proposed revisions to the Municipal Code are reflected in redline in Attachment 3 The City notified the Building Industry Association (BIA) and the Chamber of Commerce of the proposed Municipal Code revisions. The City has worked closely with the BIA to ensure the proposed Municipal Code revisions are business friendly and cost-effective. Staff has modified some provisions related to bin confiscation based on feedback from the BIA to necessitate a feasible program that still meets the City's need to provide sufficient enforcement and deter illegal hauling. Attachment 4 includes the letter of support received from the BIA. ALTERNATIVES CONSIDERED: One alternative that may be considered is restructuring the B -Tier franchise to include all temporary for -hire hauling in lieu of only hauling by way of affixed container vehicles. Restructuring this tier would include the addition of roll -off service providers, who would have the ability to legally provide hauling services for construction and demolition projects. However, the B -Tier franchise fees will continue to be impractical and costly for many self -haul contractors. Restructuring the B -Tier franchise would also add a number of unreliable waste haulers to the franchise that would impact the Finance and Public Services Departments staff time in tracking the waste haulers and hauling activity including the submittal of quarterly franchise fee statements and tonnage reports. Staff does not recommend this option. FISCAL REVIEW: The proposed changes, including the elimination of the B -Tier franchise and establishing a Contractor Self -Haul Permit, are revenue neutral. During calendar year 2016, the City received $61,123.31 from the B -Tier franchised waste haulers, which includes the tier permit fees, franchise fees, and non-refundable franchise pre -payments. The proposed Contractor Self -Haul Permit and Per -Project Permit fees are projected to generate a minimum of $52,584 in City revenue. This projection is based on the 305 pool/spa and roofing permitted projects completed during calendar year 2016. These permitted projects were primarily selected from the 1,612 construction and demolition related permits issued as these contractors generally request a self -haul option due to the lower project value and relatively small quantity of waste materials generated. Additionally, the City is anticipating an increase in City revenue by reducing the extent of illegal hauling citywide. The proposed revisions were reviewed and approved by the Finance and Pension Advisory Committee on November 8, 2017. LEGAL REVIEW: The City Attorney's Office has reviewed and approved the proposed ordinance and proposed resolution as to form. CONCLUSION: New State monitoring and reporting regulations along with the City's current waste hauling franchise and permit systems inability to facilitate necessary legal hauling activity and provide sufficient enforcement require the City to revise its Municipal Code. Adoption of the proposed Ordinance and proposed Resolution will provide a business friendly, cost-effective, and legal solution for contractor's that opt to self -haul the construction and demolition materials they generate from their primary business activity. It will also effectively deter illegal hauling with minimal fiscal impact to the City and provide the City with administrative penalties to sufficiently enforce the waste hauling franchise and permit system provisions while demonstrating compliance with State law. \J � 5 rl ■ ■ _ `9111E JLr FIN — Mrl ITS L r 1 Tr ENE N m,•` � ITS ` it 1■@1161114 ■ IIIIIIINI_ FWW Em '"IIiiiNE■ _—�JiJmommol METr•T■MEN NEE ITr•T77, 0110111 m Yir ,■r` . i IIII lid ` a a .dmX. er. ■ ■-4. ■l rm 11-111 Ar ■ Y MEEFM IN 1 gaqft —7=--•r—r• 1 7MENE, ME MIPMEMEMEMI ME NMI 4,00 ME NET 9111100010 MEN _ ■ A 0 r L ■ • SO _■_ ■ 0 _ ■MOM=1111■ 1M1 ■ ■ 1 0 ■ ■ ■ ME i i__■ rl .mmftME■s WL" Em ��w �Mm_ mll.•`IiI.rFIN _Sl _ m� NOM i-iIEiiiinE Lm gm IM m Ammommim• 71'7•TI' r 1'J—i-.00_ ■ r .tom L■ AL momill■•i ilk_■-tit■ommommJx EmLmmm_on- 717�� _ • —momm" a it EmM­­FEEE 1— -, ti El –a -' r. Iti J . INE i'tiI • 1 ! 1Tr E 77 -1 !7 T —■— �_— — —mmmMm. ■ . r — I omm%,. mm ■ .■r I 1. 1111.11111 ■i" 10 Y`^"I ■1 =mm Iwo J`immm4 —W _ J ■ NO NO NO ME ti =14 1 . ■ i ■ �J �7 ME . � � Emmor M --1 7 on A L 10999 ■ NO -- 4AMBERON Management Analyst ISSAM SHAHROURI Building Official � 441-- ars —aRAJA Public Services Director Interim Finance Director ATTACHMENTS: 1. Proposed Ordinance No. 17-xx 2. Proposed Resolution No. 17-xa 3. Redline Version of the Amended Code Sections 4. Letter of Support from the Building Industry Association DISTRIBUTION: City Manager Assistant City Manager City Attorney Interim Finance Director Building Official City Clerk Staff File --.,,- - ' - _ -,ice' .J r-.� ,' -- - . �_ — -•r.— - r --':�'�'�''nr��i — --_ -I '---' ..L. —.J ..R'f ti'f! _• L' ,, n '_r_ ti �r._- "� 'f'•'if'. i+'.• y,' -y r ''_ i'- .' _rt_- _ �� ' _i _� _J _J "_ ,•L� ■�-y'__ � _• _.' __ __ � — �-_ _ _.�� .. __ _ ,.. , __mow • _. 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ATTACHMENT 1 ORDINANCE NO. 17 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AMENDING ARTICLE 1 (SOLID WASTE COLLECTION) OF CHAPTER IV (GARBAGE, RUBBISH AND WEEDS) OF TITLE 8 (HEALTH AND SANITATION) OF THE COSTA MESA MUNICIPAL CODE WHEREAS, the 2016 California Green Building Standards Code ("CalGreen Code") expands the number and type of projects the City is required to administer, monitor, and report on to the State, including the tracking of all new construction, permitted additions and alterations to non-residential buildings, and additions and alterations to residential buildings that increase a structure's conditioned area; and WHEREAS, permitting self -hauling by contractors will create an easier and more cost- effective option for contractors to legally haul construction and demolition materials generated within the City, while aiding the City in meeting State -mandated administration, monitoring, and reporting requirements for such diversion; and WHEREAS, in 2016, 23,557.60 tons of City waste was taken to Orange County landfills by non -franchised hauling activity; and WHEREAS, establishing a mechanism through which containers used for illegal hauling activities can be confiscated, and imposing fees for such confiscation, will aid in deterring illegal hauling in the City; and WHEREAS, Assembly Bill (AB) 341 (Mandatory Commercial Recycling) and Assembly Bill (AB) 1826 (Mandatory Commercial Organics Recycling) establish monitoring and reporting requirements, and penalties for failing to comply with such requirements; and WHEREAS, establishing administrative penalties will support the City's compliance efforts with AB 341, AB 1826, and CalGreen Code monitoring and reporting requirements; and WHEREAS, this Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), the CEQA Guidelines, and the City's environmental procedures, and has been found to be exempt pursuant to Section 15061(b)(3) (General Rule), in that the City Council hereby finds that it can be seen with certainty that there is no possibility that the passage of this Ordinance will have a significant effect on the environment. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Sections 8-76, 8-77, 8-78, 8-79, 8-81, 8-82, 8-83, 8-84, and 8-87 of Article 1 (Solid Waste Collection) of Chapter IV (Garbage, Rubbish and Weeds) of Title 8 (Health and Sanitation) of the Costa Mesa Municipal Code are hereby amended as follows: A. Section 8-76 shall be amended to read as follows: Sec. 8-76. - Definitions. The following terms as used in this article shall, unless the context already indicates otherwise, have the respective meanings herein set forth: (a) Collection, The nnarnfinn of gatharing tngathar and trwnspr ::ng S011d ::°wcte tP the pal st nf disposal. (b) County: County of Orange. (c) Commercial units: Any commercial business establishment including, but not limited to, hotels, motels, offices and professional buildings, and retail establishments of all kinds, including supermarkets, filling stations, department and variety stores. (d) Contractor Self-Haul: The act of hauling solid waste, subject to this article, by construction and demolition contractors as an ancillary function to their primary business activity. !al r)icnneah Tho rmmnlata nnarnfinn of trantinn and rlicnncinn of tha asci imi do innc of rafi ica and of the product or residue arising from such treatment. (f) Disposal station: A facility established, maintained and operated by the City or the County for the disposal of refuse. (g) For -hire hauling: A business relationship that provides compensation for the hauling of solid waste subject to this article. (h) Garbage: Solid waste as defined in California Public Resources Code Sections 40191 and 49503. (i) Multifamily residential units: A permanent building containing two (2) or more dwelling units including, but not limited to, mobile home parks. Q) Hazardous waste: (1) All waste defined or characterized as hazardous waste by the Federal Solid Waste Disposal Act (42 U.S.C. § 3251 et seq.), as amended, including the Resource Conservation and Recovery Act of 1976 (42 U.S.C. § 6901 et sea.); and all future amendments thereto, or regulations promulgated thereunder; and (2) All waste defined in California Public Resources Code Section 40141 or characterized as hazardous waste by the Principal agencies of the State of California (including without limitation the Department of Health Services and the California Waste Management Board) having jurisdiction over hazardous waste generated by facilities within such state; provided that the term "hazardous waste": a. Is intended to mean and include those substances which are not normally expected to be disposed of by generally accepted sanitary landfill disposal methods; b. Shall include radioactive wastes; and c. Shall be construed to have the broader, more encompassing definition where there exists a conflict in the definitions employed by two (2) or more governmental agencies having concurrent or overlapping jurisdiction over hazardous waste. (k) Illegal hauling: The act of performing for -hire hauling of any solid waste material subject to this article without obtaining a City -issued permit. (1) Industrial units: Any business establishment engaged in manufacturing, warehousing, construction, and/or demolition. (m) Infectious waste: Solid waste capable of producing an infection or pertaining to or characterized by the presence of pathogens or medical waste as regulated by the Medical Waste Management Act (California Health and Safety Code Section 25015 et seq.). It includes but is not limited to certain wastes generated by medical practitioners, hospitals, nursing homes, medical testing labs, mortuaries, taxidermists, veterinarians, veterinary hospitals, medical testing labs, and any waste which includes animal wastes or parts from slaughterhouses or rendering plants. (n) Intermediate processing facility: A solid waste transfer or processing station or facility as defined in California Public Resources Code Section 40200. (o) Material recovery facility: A solid waste facility where source -separated recyclables are processed and recovered. (p) Permittee: Any person or solid waste enterprise who collects, hauls or disposes of any form of solid waste, hazardous waste or infectious waste for compensation pursuant to a permit issued under this section. (q) Public highway: Any public street, alley, road, public place or highway open to and used by the traveling public and not used as a private right-of-way. (r) Recycling: The process of collecting, sorting, treating, and reconstituting materials that would otherwise become solid waste, and returning them to the economic mainstream as defined in California Public Resources Code Section 40180. (s) Recyclable material: Solid waste material that through a process of collecting, sorting, cleansing, treating and reconstituting is returned to the economic mainstream in the form of raw material for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace. (t) Refuse: Solid waste as defined in California Public Resources Code Sections 40191 and 49503. (u) Residential units: All those dwelling units not included in the definition of multifamily residential units unless otherwise designated by the city. (v) Scavenge: The unauthorized removal of any recyclable materials as defined by California Public Resources Code Sections 41950 and 41951 or solid waste without a permit under this article. (w) Solid waste: All solid waste as defined in California Public Resources Code Sections 40191 and 49503. (x) Solid waste enterprise: A solid waste enterprise as defined in California Public Resources Code Section 49504. (y) Solid waste handling services: A solid waste handling service as defined in California Public 9 Resources Code Section 49505. (z) T nnSfer station: A solid �,r.aste transfer or processing station or facility as defined in California Public Resources Code Section 40200. (aa) Organic waste: Organic material including food waste, green waste, landscape and pruning waste, nonhazardous wood waste, and .food -soiled paper waste that is mixed with food waste. B. Section 8-77 shall be amended to read as follows: Sec. 8-77. — Permit. (a) No person, contractor, or solid waste enterprise shall charge a fee or accept any form of compensation to collect any ,olid ,Y.�aste, hazardous ..paste or infentinuc .vaste upon, along or across any public highway in the city from any commercial, industrial or multifamily residential units, or residential units without first applying for and receiving all permits required from the city. In addition to the permit required under this article, a business license must be obtained prior to doing business within the city, and a separate vehicle permit for each and every vehicle used for collecting solid waste, hazardous waste or infectious waste and setting of containers within the city right-of-way. The permittee shall place each permit issued pursuant to this article in the lower right front window of the vehicle so that it is clearly visible from the street. (b) The city shall develop and implement a procedure for evaluating the performance of any and all permittees operating under the provisions of this article. Permitted haulers shall submit reports on their hauling activity, as required by the director of public services. These reports shall be submitted in the format and frequency established by the director of public services. Failure to provide said reports, by their established due date, will result in an administrative penalty. If said reports are not submitted within forty-five (45) days of the imposition of an administrative penalty, along with payment of said penalty, the hauler's permit will be revoked as provided in section 8- 79. Failure to meet minimum diversion rates will result in the revocation of the permit as provided in section 8-79. (c) Any person, contractor or solid waste enterprise who is issued a permit pursuant to this article shall comply with all of the regulations in this article including but not limited to the source reduction and recycling provisions of section 8-84. (d) Any person, contractor or solid waste enterprise desiring to obtain a permit to remove or convey any solid waste, hazardous waste or infectious waste upon or along any public highway within the city from any commercial, industrial or residential multifamily unit(s), or residential unit(s), shall sign and file an application with the city and pay a permit application fee established by resolution of the city council. To the extent permitted by law, the information submitted in the application shall be kept confidential. (e) Each permit application shall be filed with the public services department and shall include the following information: (1) The name and address of the applicant. (2) The number and type of vehicles to be used by the applicant. (3) Additional information, as established by the director of public services, to assist the city's (9) administration and oversight authority as established by State law. (4) For hazardous waste and infectious waste, written proof that the person or solid waste enterprise has obtained all necessary permits from the county, State of California and federal agencies for the collection of such waste and has insurance coverage for the transport and disposal of such waste. (f) For -hire haulers shall be required to obtain a solid waste franchise permit. This permit will allow for the provision of recurring and temporary services in all areas franchised by the City of Costa Mesa. In addition to the requirements established for all permit applicants herein, the solid waste franchise permit applicant shall also be required to submit: (1) A written source reduction and recycling plan with details and time frame for implementation on how the permittee will provide the programs to its customers, as required by the City of Costa Mesa Source Reduction and Recycling Element, which include but are not limited to all of the following: a. Reduction of solid waste to maintain a fifty percent (50%) diversion rate through source reduction, recycling and composting, and a sixty-five percent (65%) diversion rate for construction and demolition waste. b. Economic incentives to achieve the diversion rates set forth in subparagraph a. herein. c. Technical, instructional, promotional, and educational programs to achieve the diversion rates set forth in subparagraph a. herein. d. Composting programs to facilitate the achievement of the diversion rates set forth in subparagraph a. herein. e. Special waste programs. f. Organic waste recycling programs. In order to comply with the requirements of Chapter 12.9 of Part 3 of Division 30 of the Public Resources Code, the director of public services shall require a permit applicant to demonstrate its ability to provide organics recycling services as a condition of permit issuance. g. Other information or additional financial information, including, but not limited to, the right to audit financial records, or require a performance bond, or other suitable evidence of financial responsibility, if at any time such information is found to be necessary by the city council. The permittee will provide a certified copy of the permittee's last fiscal year's financial report, audited by a certified public accountant. All financial information contained in the permit application made to the city pursuant to this article shall be deemed to be confidential and shall be retained by the city for its use and, under no circumstances, will such information be released to anyone other than the permittee without the consent of the permittee. (g) The Costa Mesa Sanitary District ("CMSD") will continue its franchise for all single-family residential and multi -family residential receiving curbside service. No other permittee will be allowed to operate in areas governed by the CMSD. (h) Contractor self -haul permit applicants must comply with items (a) through (e) of this section and (Do shall also provide per -project forms, as required by the director of public services, and subsequently submit all waste disposal and diversion tickets associated with their project(s) at the time prescribed by the director of public services. Failure to suhmit hnth the required form and all associated weight tickets shall subject the permittee to an administrative penalty as outlined in section 8-84. C. Section 8-78 shall be amended to read as follows: Sec. 8-78. — Issuance or denial of permit. (a) When an application has been made to the city for a permit pursuant to this article, it shall be the duty of the director of the public services department to consider the matter; and he or she shall have the right to grant, condition or deny the permit request, and such decision shall be subject to an appeal to the city council pursuant to Chapter IX of Title 2 of this Code. In granting, nnnrli+inninn nr rlcniAr%n +ho ncrmi+ roni ioc++ho rliror+nr of ni ihlir coniirac nnrl +ha rihi rni mril V%J1 KAl LIWI 111 I1, VI M1 I ly 111y La LI - F -I 11 IIL . 1-L, U w 4.1 -WO V. 1 L - V I- - - '. - -7 Wv .+ may take into consideration factors, including, but not limited to, the following: (1) The ability of the permittee to comply with the solid waste handling service standards enumerated in this article. (2) The ability of the permittee to comply with the equipment standards enumerated in this article. (3) The ability of the permittee to comply with the provisions regarding insurance or bonds enumerated in this article. (4) The ability of the permittee to provide programs and comply with the City of Costa Mesa Source Reduction and Recycling Element and implement the source reduction and recycling plan proposed by the permittee pursuant to paragraph (f) of section 8-77. (b) The decision by the city council on a permit application shall be final. (c) No permit granted pursuant to this article shall be assigned or transferred without the consent of the director of public services. The term of the solid waste franchise permit shall be for a period of seven (7) years, provided that on each anniversary date of a permit it shall be automatically extended for one (1) additional year so that the term remains seven (7) years unless at least sixty (60) days prior to the anniversary date either the city or permittee notifies the other in writing that the permit will not be renewed in which case the term shall not be extended for an additional year and will have only six (6) years remaining and shall not be automatically extended thereafter. Nothing in this subdivision shall prevent the city from terminating a solid waste franchise permit before the end of its term pursuant to the provisions of section 8-79. No permit granted pursuant to this article shall limit the right of the city to grant an exclusive or nonexclusive franchise for solid waste handling services in the city. A permit issued under this article shall not grant the permittee rights under California Public Resources Code Section 49620, where at the time the permit is granted the permittee did not have a right to continue service under such section. D. Section 8-79 shall be amended to read as follows: Sec. 8-79. — Revocation of permit. (a) In the event that any person, contractor or solid waste enterprise holding a permit to collect solid waste, hazardous waste, or infectious waste upon or along any public highway within the city from any commercial, industrial, or multifamily residential unit(s), or residential unit(s) violates 6A any of the conditions of such permit, the requirements of section 8-87, the provisions of this article, or any other ordinance, statute, or regulation relating to the collection, storage, or disposal of solid waste, hazardous waste, or infectious waste, or collects such solid waste in an unlawful, improper, or unsanitary manner, the director of public services may revoke such permit issued to such person, contractor, or solid waste enterprise as provided by this section. (b) The director of public services may revoke a permit by issuing a written order to the permittee and the order shall state the grounds for such revocation, and that if proof of compliance is not provided to the director of public services within thirty (30) calendar days from the date of the written order, the permit will be revoked forty-five (45) calendar days from the date the written order was mailed. The order shall be mailed by certified mail to the permittee. The written order shall be subject to an appeal to the city council pursuant to Chapter IX of Title 2 of this Code. Upon revocation of a permit, the permittee shall cease all services subject to the permit within seventy-five (75) calendar days from the date the order is mailed. The director may adopt regulations to implement the provisions of this section. (c) If a solid waste franchise permittee fails to comply with the requirements of section 8-84, including, but not limited to, the achievement of diversion requirements, the following procedure will be followed: (1) The director will determine whether the permittee has made a good faith effort to comply with the conditions of the permit and the requirements of this article. The director will consider evidence submitted by the permittee concerning this matter and the permittee has the burden of establishing that it has made reasonable and feasible good faith efforts to achieve compliance. Evidence to be considered on this issue includes, but is not limited to, how close to compliance the particular deficiency is, the efforts the permittee has taken to meet the requirement, the expense required to provide the permittee with the means for compliance, the results of similar permittees in meeting the requirement, the availability of new technologies which the permittee could utilize to satisfy the requirement, the plans submitted by the permittee showing what steps it plans to take to enable it to fully comply with the requirement and the time that will take, whether permittee has already taken reasonable steps to alter its operations in time to meet the requirement, and what impact the permittee's failure has on the city's overall compliance with the state requirements for solid waste reduction and diversion. The permittee's good faith efforts must conform to any guidelines established by the city and/or the state in this regard. (2) The provisions of this subsection authorizing the director to consider the good faith efforts of a permittee shall only be applicable so long as the state authorizes and grants a comparable good faith exception concerning the city's responsibilities under state law. (3) If the director determines that a good faith effort has been made by the permittee, the director may decide not to revoke the permit. If the permit is not revoked, the director may impose new conditions to the permit, such as: (i) the permittee must prepare a full compliance plan to show how it intends to meet the diversion requirement, (ii) the plan must be submitted within 30 days and approved by the director, (iii) the permittee must comply with that plan, or (iv) any other conditions that the director concludes are appropriate and will help meet the requirements of state law and the city ordinance. (4) If a permit is not revoked because the director determines that a good faith effort had been made, the permit revocation process may be commenced again at any time the director determines new grounds therefor exists, including, but not limited to, noncompliance with any new conditions placed upon the permit at the time the good faith determination was made. (9) (d) If a permit is revoked, no permit shall be thereafter granted to such person to collect solid waste, hazardous waste or infectious waste in the rite until gi irh time ac the nermittaa ran nrnva the ability to comply with this article. E. Subsection (f) of Section 8-81 shall be amended to read as follows: (f) Solid waste franchise permittees shall maintain a place of business at some fixed place and shall maintain a telephone, listed in the telephone directory in his or her own name or in the firm name by which he or she is most commonly known. At all times during the hours between 8:00 a.m. and 5:00 p.m. of each day upon which collections are made, said office must be staffed to receive complaints regarding collection. An emergency number shall be made available to city hall for the hours between 5:00 p.m. and 8:00 a.m. and for days upon which collections are not made. F Si ihsartinn (nl of RPrtinn R -R9 shall ha amanriPri to nnnri as fniinws- (a) The permittee shall at all times keep fully insured, at his or her own expense, all persons employed by him or her in connection with the contract or permit workers' compensation insurance as required by the State of California, and shall hold the city free and harmless from all liabilities that may arise by reason of the injuries to any employee of the permittee who is injured while performing any work or labor necessary to carry out the provisions of a contract or permit. The permittee, during the life of the permit, shall keep on file with the city clerk evidence that the permittee is fully and properly insured as required by State law. G. Section 8-83 shall be amended to read as follows: Sec. 8-83. - Regulations. (a) It shall be unlawful for any person to place, deposit, dump or cause to be placed, deposited or dumped any solid waste, hazardous waste or infectious waste in or upon any private property or in or upon any public property which the public is admitted by easement or license without the consent of the owner, or in or upon any public highway, street, alley, sidewalk, gutter, parkway or upon any private road, alley, sidewalk, gutter or driveway in common use, or upon any public property other than property designated or set aside as a disposal station for such purpose by resolution of the city council or county board of supervisors. (b) It shall be unlawful for any person to place, deposit or dump solid waste, hazardous waste or infectious waste of any kind whatsoever upon any private or public property within a distance of one thousand (1,000) feet from any public highway in the city, or within a distance of five hundred (500) feet from any established residence or dwelling house within the city, or to cause or suffer or permit such solid waste, hazardous waste or infectious waste to be placed, deposited or dumped upon any public or private property within a distance of one thousand (1,000) feet of any public highway or within a distance of five hundred (500) feet of any established residence or dwelling house in the city, without first having obtained a use permit pursuant to the zoning laws of the city, county, and State of California, or pursuant to any other zoning law that may be hereafter adopted in the place and stead of said zoning laws of the city. The provisions of this subsection shall not apply to solid waste, hazardous waste or infectious waste placed into a container for pickup by a solid waste enterprise operating pursuant to a permit issued under this article. (c) No person shall burn any solid waste, hazardous waste or infectious waste within the city without having first complied with all rules and regulations of the city, the county, the South Coast Air a�. Quality Management District and the state. (d) No person shall scavenge or bury any solid waste, hazardous waste or infectious waste within the city. (e) Special arrangements must be made and permits issued by the county, State of California, and federal agencies for the disposal of any of the following items: Ammunition; explosives; industrial waste; chemicals; infectious; hazardous and radioactive waste; acids; drugs; medicines; human feces; unwrapped animal feces; and items which are too large for the collection equipment or which may damage the collection machinery such as large pieces of metal, machine parts, logs and tree stumps. (f) Branches of trees, hedges, etc., shall be cut in lengths of not over four (4) feet and placed in containers or tied into bundles not exceeding fifty (50) pounds. All vacuum cleaner dust sweepings or ashes shall be wrapped and placed in the container. Newspapers and magazines may be bundled in bundles not exceeding fifty (50) pounds maximum. All metal containers may be placed in an enclosed container or wrapped in bundles not exceeding fifty (50) pounds maximum. In areas of curbside refuse collection, the requirements of this subsection are superseded by any requirements of the CMSD. (g) It shall be unlawful for a person, contractor or solid waste enterprise to commingle solid waste collected from within the jurisdiction of the City of Costa Mesa with solid waste collected from any other jurisdiction. A violation of this subsection shall result in the revocation of the permit pursuant to section 8-79. (h) For any type of solid waste collection in the city, it shall be unlawful for any person to use the services offered by a person, service, or enterprise that has not obtained all the required permits from the city pursuant to this article. (i) It shall be unlawful for any person, contractor or solid waste enterprise to place solid waste collection containers on public or private property without the appropriate city permit. For the first violation of this subsection, the city will impound container(s) of non -permitted persons, contractors or solid waste franchises forty-eight (48) hours after such container(s) are observed by the city or the city's agent. For the second violation of this subsection, the city will impound containers of non -permitted persons, contractors or solid waste enterprises previously noticed or impounded twenty-four (24) hours after such container(s) are observed the city or the city's agent. Any subsequent violations shall be subject to immediate confiscation. Permitted haulers shall place signage and/or markings on their containers to clearly identify them as property of the permitted hauler, as required by the city. When a container that does not contain signage or markings to clearly identify it as the property of a permitted hauler is observed, a notice shall be placed upon the container to inform its owner that illegal hauling has been established. The owner of that container will have forty-eight (48) hours to remove said container or place signage identifying it as property of the permitted hauler so that the city or city's agent can determine if it is the property of a permitted hauler. If containers placed in violation of this section are not removed within the time periods set forth herein, an impound fee, per container, shall be imposed to cover the costs of impound, disposal of materials, container storage, and an administrative penalty fee for city enforcement and administration. The impound fee shall be established by city council resolution. If the owner of the impounded container does not pay the full impound fee to the city within ninety (90) days of impound, the impounded container shall become the property of the city to satisfy the impound fee. The city reserves the right to, on an ar.nual bass, enter intn an imrnni ind cerviCeg aI. eemar�t in accordance with the city's procurement policies. The selected solid waste enterprise shall be a solid waste franchise permittee and shall be authorized to enforce the city's franchise by confiscating any roll -off containers or trash bins used for illegal hauling within city limits. The contracted solid waste enterprise shall be authorized to collect the impound fee set forth herein. The owner of the container shall pay the impound fee in order to remove the property out of impound. If the owner does not pay within ninety (90) days of impound, the contracted solid waste enterprise shall keep the impounded container to satisfy its service and hauling charges. Q) All businesses as defined by Public Resources Code section 42649.1 generating four (4) cubic yards of trash per week, and all multi -family properties of five (5) units or more, must arrange for the collection and recycling of solid waste as follows: (1) Source separate recyclable materials from solid waste and subscribe to a basic level of recycling service that includes collection, self -hauling, or other arrangements for the pickup of the recyclable materials with a permittee. (2) Subscribe to a recycling service with a permittee that may include mixed waste processing that yields diversion results comparable to source separation. (k) On or before April 1, 2016, all businesses as defined by Public Resources Code section 42649.8 et seq., including multi -family residential dwellings of five (5) or more units, must arrange for recycling services specifically for the organic waste that they generate in the manner specified in subsection (k) as follows: (1) On and after April 1, 2016, a business that generates eight (8) cubic yards or more of organic waste per week shall arrange for recycling services specifically for organic waste; (2) On and after January 1, 2017, a business that generates four (4) cubic yards or more of organic waste per week shall arrange for recycling services specifically for organic waste; (3) On and after January 1; 2019, a business that generates four cubic yards or more of commercial solid waste, as defined in Public Resources Code section 42649.1, per week, shall arrange for recycling services specifically for organic waste; and (4) On or after January 1, 2020, if the state Department of Resources Recycling and Recovery determines that statewide disposal of organic waste has not been reduced to fifty (50) percent of the level of disposal during 2014, a business that generates two (2) cubic yards or more per week of commercial solid waste shall arrange for the organic waste recycling services specifically for organic waste, unless the department of resources recycling and recovery determines that this requirement will not result in significant additional reductions of organics disposal. (1) All businesses as defined by Public Resources Code section 42649.8 et seq. including multi- family residential dwellings of five (5) or more units located within the city shall do one or more of the following, except that a multifamily residential dwelling is not required to arrange for the organic waste recycling for food waste: (1) Source separate organic waste from other waste and subscribe to a basic level of organic waste recycling service that includes collection and recycling of organic waste with a permittee that recycles organic waste; (2) Recycle its organic waste onsite or self -haul its own organic waste for recycling; (3) Subscribe to a mixed waste processing service from a permittee that recycles organic waste; and/or (4) Donate or sell organic waste to a person or entity authorized by law to receive such waste. (m) Property management companies that contract for trash service for any commercial, institutional, or multi -family properties subject to this article are required to contract or otherwise make available recycling services to comply with this section. H. Section 8-84 shall be amended to read as follows: Sec. 8-84. - Source reduction and recycling. (a) This section is enacted for the purpose of compliance with the California Integrated Waste Management Act of 1989 in accordance with California Public Resources Code Sections 40000 et seq. ("Act"). The city has adopted a source reduction and recycling element and household hazardous waste element pursuant to said Act which provides for the imposition and collection of charges to fund the preparation, adoption and implementation of said elements. Such charges shall be determined, fixed and established by the city council by resolution. Such charges may be changed by the city council from time to time by resolution. (b) A solid waste franchise permittee, as a condition of the permit, shall comply with the following source reduction and recycling requirements: (1) The permittee shall take all necessary steps to cause the industrial, commercial, multifamily residential units, and residential units who produce solid waste subject to the permit and the Act to divert solid waste as required by California Public Resources Code Section 41870 through source reduction, recycling and composting. (2) The permittee shall provide quarterly reports to the public services department, on the form and in the format required by the city, summarizing its progress in diverting solid waste generated by its customers in the city as required by California Public Resources Code Sections 41870 and 41821. The quarterly reports shall identify the tonnage collected, tonnage recycled, tonnage composted, percentage of waste recycled and/or composted, materials recycled, and the facilities receiving all waste generated. In addition, quarterly reports shall provide the level of customer specific data required to enable the city to be in compliance with State -mandated reporting requirements. Quarterly reports shall be due 30 days after the calendar quarter's end. Late reports shall be subject to a fine, which shall be established by city council resolution. All requested report data shall be provided. Incomplete reports shall not be accepted and shall be considered as late reports until they are fully completed. (3) As a permittee of the city, the permittee shall be an authorized recycling agent of the city and shall become the owner of all solid waste and recyclable materials, and hazardous waste and infectious waste collected pursuant to the permit. The permittee is solely responsible for arranging for the collection, transportation, recycling, and disposal of all solid waste, hazardous waste or infectious waste collected pursuant to the permit. The recyclables become the property of the permittee once placed in the collection bin. (4) The permittee shall collect a source reduction and recycling fee as imposed by resolution of the city council pursuant to the California Public Resources Code Section 41902 and this section. (c) A contractor self -haul permittee, as a condition of the permit, shall comply with the following requirements to show compliance with section 8-84: (1) Apply for per -project permits. These per -project permits are required for each job performed during the calendar year in which the permittee is authorized by the city to haul the solid waste they generate. (2) Pay required per -project fees, which shall be established by city council resolution. (3) Complete and submit all required forms. (4) Divert sixty-five percent (65%) of the solid waste generated by the contractor's business activity on that project, or present the city with evidence showing the maximum amount of solid waste was diverted from landfills. (5) Pay any penalty assessed by the city for failure to provide required reports, weight tickets, or other requested substantiation of compliant hauling activity requested by the city. These penalties are as follows: (A) A penalty amount equal to three times the established per -project fee, for failure to submit any required form or weight ticket for that project. (B) A penalty amount equal to two times the established per -project fee, for failure to achieve a sixty-five percent (65%) diversion rate or provide substantiation that the maximum solid waste possible was diverted from landfill. It shall solely be at the city's discretion, to determine if the maximum solid waste possible was diverted from landfill. (d) Failure of the permittee to comply with the provisions of this section shall subject the permittee to additional civil penalties as determined and approved by city council pursuant to California Public Resources Code Section 41954. (e) Notwithstanding the provisions of section 8-83, a person or entity owning or occupying an industrial, commercial, multifamily residential, or residential unit shall be permitted to create and use compost, as defined in California Public Resources Code Section 40116, on the private or public property that such person or entity owns or occupies. (f) The requirements of this section shall not apply to the solid waste handling services provided by the solid waste enterprise under contract with the CMSD, provided the CMSD establishes source reduction and recycling standards that are compliant with all State mandates upon the waste collected under the CMSD's contract. Section 8-87 shall be amended to read as follows: Sec. 8-87. - Franchise fee. (a) Grant of franchise. The city hereby grants a solid waste hauling franchise to any solid waste enterprise upon the issuance to it of a permit issued pursuant to section 8-77 of this article. The term of the franchise shall run concurrently with the term of the permit and shall end upon the 0 termination of the permit. The valid possession of such a permit shall be deemed to make a solid waste enterprise a franchisee under this section. (b) Franchise fee. Every holder of a franchise issued pursuant to this section ("franchisee") shall pay a franchise fee as set by city council resolution based on the percentage of quarterly gross receipts. The purpose of the franchise fee is to provide funds to the city to pay for the maintenance and rehabilitation of the public highways in the city and for other general revenue purposes. Franchisees shall pay an annual minimum franchisee fee in the amount of ten thousand dollars ($10,000.00). This fee shall be prorated in the amount of two thousand five hundred dollars ($2,500.00) per quarter beginning with the quarter in which the franchise is granted. Such annual minimum franchisee fee payments shall be paid to the city upon issuance of a permit pursuant to section 8-77 of this article and, thereafter, by January 1 of each calendar year. Failure to timely pay franchise fees shall result in a penalty in the amount of five percent (5%) of the delinquent franchise fee owed, plus an additional one and one-half percent (1.5%) of the fee for each month, or any portion thereof, that payment is late. Failure to timely pay franchise fees may also result in the commencement of permit revocation proceedings. The annual minimum franchisee fee shall be credited only toward the franchise fees that accrue during the same calendar year in which the minimum fee is paid. (c) Quarterly franchise fee reports and payments. Every franchisee is required to submit a quarterly franchise fee report and pay the established franchise fee on all gross receipts for that quarter. Pre -paid franchise fees are used to satisfy this quarterly obligation up to the full pre -payment amount. Failure to submit payment and the required report within forty-five (45) days of the end of each calendar quarter shall result in a fine, which shall be established by city council resolution, for each non -submittal. Submission of an incomplete report shall constitute a failure to submit a report and shall be subject to the same fine as that for non -submittal. (d) Records requirements. Every franchisee shall maintain all records relating to its solid waste handling services pursuant to this section, including, but not limited to, customer lists, billing records, services requests, cash receipts records, records demonstrating compliance with the requirements of section 8-84(b) of this article, and other documents and materials that reasonably relate the franchisee's compliance with this section. Upon five (5) business days' notice, such records shall be made available for city inspection at the franchisee's regular place of business. If the franchisee's regular place of business is not located within the county, the franchisee shall make such records available for city inspection at a location within the county, as determined by the city. (e) Audit requirements. An independent auditing firm shall perform an audit, at the city's expense, of any franchisee's records (the "city audit") to ensure compliance with the provisions of this section on an annual and/or as -needed basis, to be determined by the city. The scope of the city audit shall be set by city council resolution. If a city audit determines that a franchisee has not paid its full franchise fee, the city shall invoice the franchisee for the amount of the net deficiency plus a penalty fee equal to twenty percent (20%) of the net deficiency. (f) Exemption for CMSD. The franchise fee imposed pursuant to this section shall not be imposed upon any solid waste enterprise that has a franchise or contract with the Costa Mesa Sanitary District for any revenue the solid waste enterprise earns under that franchise or contract. Section 2. Compliance with CEQA. Adoption of this Ordinance is exempt from the California Environmental Quality Act ("CEQA") under CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment. O -S, Section 3. Inconsistencies. Any provision of the Costa p�Mesa Municipal Code or appendices thereto In VVnslstent with the provision- of this lJ OIwlnanye, LW Lh 4�^Lx nt of J1J 11 inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. Section 4. Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Costa Mesa hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional. Cne-+inn r. �ffci+fivc rh+o Thio nrr:irn-nnnc chill +-nIec cffcr+ +hirfv 14M rlwc nf+cr 40 find V LSV&LVLL V. L=11LS LIVL LJGLV. I IIID VI VIIIGIIVL.r J11G11 LG1\V l..IIVVL L1111 Lr `VV� GGyJ GILL..1 1LJ IIIIUI passage. Section 6. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted in the manner required by law. PASSED AND ADOPTED this _ day of 2017. ATTEST: Sandra L. Genis, Mayor APPROVED AS TO FORM: Brenda Green, City Clerk Thomas Duarte, City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, BRENDA GREEN, City Clerk of the City of Costa Mesa, do hereby certify that the foregoing ordinance was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the day of , 2017, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this day of 12017. BRENDA GREEN, CITY CLERK (SEAL) t:;', �-��_ -___f _' '': .- r . _ ��—_� TI •'� :��__ _ r_ �.r5•_~ ,_� •_ 'Y,,_ — I 2. !6k -ik J.. .. ..�,-*' �■,''^.. '� �'S� �Ai�: '.r,�°...�A.. .Iti,�4�` r. �hL ■� •P.-1 �_' _ r X91 'ti '.1r_ '�f d�'Nn� - - _ - - - _ _ .. -'1 �•' .� -_ L'L-.� 7- _ - .,_"�-'_ 4 �..rJ qtr .I.. __ I'' _ S ''r — _ T 5 1�. ,'F'�•.. _ r'� �L r4r.' 4 4'ti U e _ �••ry� ; rV. %... 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I_ I' •, •L- .- a ' 1' :�y��i.•r ._ 1 _ , � -6 f�. .J.■ �•' _ _- r -_7 i- - _ ATTACHMENT 2 RESOLUTION NO. 17-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ESTABLISHING AND ADOPTING FEES IN CONNECTION WITH WASTE HAULING THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY RESOLVES AS FOLLOWS: WHEREAS, the City Council of the City of Costa Mesa has established various schedules of rates, fees, and charges for services provided by the City; and WHEREAS, pursuant to the provisions of the California Constitution and the laws of the State of California, the City is authorized to adopt and implement rates, fees, and charges for municipal services; provided, however, that such rates, fees, and/or charges do not exceed the estimated reasonable cost of providing such services; and WHEREAS, California Government Code section 66016 requires notice to be given and data be made available at specified times prior to the adoption of new rates, fees, and charges, or prior to adoption of increases in existing rates, fees, and charges; and WHEREAS, California Government Code section 66018 requires notice to be published in accordance with California Government Code section 6062a and data be made available concerning rates, fees, and charges prior to conducting a public hearing with respect to the adoption of new rates, fees, and charges, or the adoption of increases in rates, fees, and charges for which no other procedure is provided by law; and WHEREAS, pursuant to California Government Code sections 66016 and 66018, the City Council has held at least one public hearing, as part of a regularly scheduled meeting, at which oral and written presentations could be made with respect to the fees, rates, and charges contemplated by this Resolution; and WHEREAS, the City Council desires to establish fees associated with waste hauling, as set forth herein; and WHEREAS, the proposed fees will allow the City to recover the reasonable costs incurred by the City in providing the services, including labor costs for application processing and review and administrative costs for tracking and reporting waste hauling and diversion activities; and WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa as follows Section 1: The City Council hereby finds and determines that based upon the data, information, analysis, and oral and written documentation presented to the City Council concerning the rates, fees, and charges described in Exhibit "A," attached hereto and incorporated herein by this reference, the rates, fees, and charges set forth in Exhibit "A" do not exceed the established reasonable cost of providing the service for which the rates, fees, or charges are levied. 5'� Section 2: The rates, fees, and charges set forth in Exhibit "A" are hereby adopted and approved as the rates, fees, and charges for the services identified for each such rate, fee, and/or charge. Section 3: The rates, fees, and charges set forth in Exhibit "A" shall be effective and implemented commencing upon the effective date of Ordinance No. 17-xx, which amends Article 1 of Chapter IV of Title 8 of the Costa Mesa Municipal Code. Section 4: The City Clerk shall certify to the passage and adoption of this Resolution and shall enter it into the book of original resolutions. PASSED AND ADOPTED this 5th day of December, 2017. ATTEST: Brenda Green, City Clerk Sandra L. Genis, Mayor APPROVED AS TO FORM: Thomas Duarte, City Attorney 55. STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, BRENDA GREEN, City Clerk of the City of Costa Mesa, do hereby certify that the foregoing resolution was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 5th day of December, 2017, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this day of 12017. BRENDA GREEN, CITY CLERK (SEAL) e EXHIBIT A WASTE HAULING FEES A. Fee to Process and Review Contractor Self -Haul Permit Application ■ Contractor Self -Haul Permit Fee: $200 B. Per -Project Permit Fees for Permitted Self -Haulers Projects valued at $20,000 or less: Projects valued at $20,001 through $100,000: Projects valued at $100,001 through $500,000 Project valued at or greater than $500,001: C. Illegal Container Impound Fee ■ Not -to -exceed $1,000 per container $160 flat fee $160 fee, plus $3 for each additional $1,000 in value above $20,000, or fraction thereof, up to and including $100,000 $400 fee, plus $2 for every $1,000 in value above $100,000, or fraction thereof, up to and including $500,000 $960 fee, plus $0.50 for every $1,000 in value above $500,000, or fraction thereof D. Late Submittal of Quarterly Franchise Fee Reports and/or Quarterly Tonnage Reports ■ $150 for each calendar month, or portion thereof, that a complete report is not timely submitted. C4) ATTACHMENT 3 ARTICLE 1. SOLID WASTE COLLECTION 8-76. Definitions. The following terms as used in this article shall, unless the context already indicates otherwise, have the respective meanings herein set forth.- (a) orth:(a) Collection: The operation of gathering together and transporting solid waste to the point of disposal. (b) County: County of Orange. (c) Commercial units: Any commercial business establishment including, but not limited to, hotels, motels, offices and professional buildings, and retail establishments of all kinds, including supermarkets, filling stations, department and variety stores. (d) Contractor Self -Haul: The act of hauling solid waste subject to this article, by construction and deconstruction contractors as an ancillary function to their primary business activity. (e) Disposal: The complete operation of treating and disposing of the accumulations of refuse and of the product or residue arising from such treatment. (fe) Disposal station: A facility established, maintained and operated by the City or the County for the disposal of refuse. (g) For -hire hauling: A business relationship that provides compensation for the hauling of solid waste subject to this article. (h#) Garbage: Solid waste as defined in California Public Resources Code Sections 40191 and 49503. Qg) Multifamily residential units: A permanent building containing two (2) or more dwelling units including, but not limited to, mobile home parks. Q#) Hazardous waste: (1) All waste defined or characterized as hazardous waste by the Federal Solid Waste Disposal Act (42 U.S.C. 3251 et seq.), as amended, including the Resource Conservation and Recovery Act of 1976 (42 U.S.C. § 6901 et seq.), and all future amendments thereto, or regulations promulgated thereunder; and (2) All waste defined in California Public Resources Code Section 40141 or characterized as hazardous waste by the Principal agencies of the State of California (including without limitation the Department of Health Services and the California Waste Management Board) having jurisdiction over hazardous waste generated by facilities within such state; provided that the term "hazardous waste": a. Is intended to mean and include those substances which are not normally expected to be disposed of by generally accepted sanitary landfill disposal methods; b. Shall include radioactive wastes; and C. Shall be construed to have the broader, more encompassing definition where there exists a conflict in the definitions employed by two (2) or more governmental agencies having concurrent or overlapping jurisdiction over hazardous waste. A) fkl illegal haulina: The act of performing for -hire hauling of any solid waste material siihiect to this article without obtaining a City -issued permit. (l+) Industrial units: Any business establishment engaged in manufacturing, warehousing, construction, and/or demolition. (mf) Infectious waste: Solid waste capable or producing an infection or pertaining to or characterized by the presence of pathogens or medical waste as regulated by the Medical Waste Management Act (California Health and Safety Code Section 25015 et seq.). It includes but is not limited to certain wastes generated by medical practitioners, hospitals, nursing homes, medical testing labs, mortuaries, taxidermists, veterinarians, veterinary hospitals, medical testing labs, and any waste which includes animal wastes or parts from slaughterhouses or rendering plants. (nk) intermediate processing facility: A solid waste transfer or processing station or facility as defined in California Public Resources Code Section 40200. (gl) Material recovery facility: A solid waste facility where source -separated recyclables are processed and recovered. (gm) Permittee: Any person or solid waste enterprise who collects, hauls or disposes of any form of solid waste, hazardous waste or infectious waste for compensation pursuant to a permit issued under this section. (qn) Public highway: Any public street, alley, road, public place or highway open to and used by the traveling public and not used as a private right-of-way. (r$) Recycling: The process of collecting, sorting, treating, and reconstituting materials that would otherwise become solid waste, and returning them to the economic mainstream as defined in California Public Resources Code Section 40180. (sp) Recyclable material: Solid waste material that through a process of collecting, sorting, cleansing, treating and reconstituting is returned to the economic mainstream in the form of raw material for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace. (tq) Refuse_- Solid waste as defined in California Public Resources Code Sections 40191 and 49503. (ur) Residential units: All those dwelling units not included in the definition of multifamily residential units unless otherwise designated by the city. (_vs) Scavenge:.- The unauthorized removal of any recyclable materials as defined by California Public Resources Code Sections 41950 and 41951 or solid waste without a permit under this article. (wt) Solid waste:.. All solid waste as defined in California Public Resources Code Sections 40191 and 49503. (xtr) Solid waste enterprise:.. A solid waste enterprise as defined in California Public Resources Code Section 49504. (yu) Solid waste handling services:.. A solid waste handling service as defined in California Public Resources Code Section 49505. (zw) Transfer station:.. A solid waste transfer or processing station or facility as defined in California Public Resources Code Section 40200. Sal (aax) Organic waste:- Organic material including food waste, green waste, landscape and pruning waste, nonhazardous wood waste, and food -soiled paper waste that is mixed with food waste. 8-77. Permit. (a) No person, contractor, or solid waste enterprise shall charge a fee or accept any form of compensation to collect any solid waste, hazardous waste or infectious waste upon, along or across any public highway in the city from any commercial, industrial or multifamily residential units, or residential units without first applying for and receiving all permits required from the city. In addition to the permit required under this article, a business license must be obtained prior to doing business within the city, and a separate vehicle permit for each and every vehicle used for collecting solid waste, hazardous waste or infectious waste and setting of containers within the city right-of-way. The permittee shall place each permit issued pursuant to this article in the lower right front window of the vehicle so that it is clearly visible from the street. (b) The city shall develop and implement a procedure for evaluating the performance of any and all permittees operating under the provisions of this article. Permitted haulers shall submit quaFterly reports on their hauling activity, as required by is -the director of public services. These reports will be submitted in the format and frequency established by the director of public services. ewe6 the Fight to Fandemly 6e!eGt tFUGks to have weighed by a state GeFtified faGillty to for P-Rd-Wroer R;aFkets. Failure to provide said reports by their established due datew+#h thirty (30) days will result in an administrative penalty. If said reports are not submitted within forty-five (45) days of imposition of the administrative penalty along with payment of said penalty, the hauler's permit on e#eGt of the firne of the vielatie , will be revoked as provided in section 8-79. Failure to meet minimum diversion rates will result in the revocation of the permit as provided in section 8-79. (c) Any person, contractor or solid waste enterprise who is issued a permit pursuant to this article shall comply with all of the regulations in this article including but not limited to the source reduction and recycling provisions of section 8-84. (d) Any person, contractor or solid waste enterprise desiring to obtain a permit to remove or convey any solid waste, hazardous waste or infectious waste upon or along any public highway within the city from any commercial, industrial or residential multifamily unit(s), or residential unit(s), shall sign and file an application with the city and pay a permit application fee established by resolution of the city council. To the extent permitted by law, the information submitted in the application shall be kept confidential. (e) Each permit application shall be filed with the public services department and shall include the following information: L (1) The name and address of the applicant. (2) The type ef selid waste, hazardous waste eF iRfeGtieus waste te be GE)IleGted iR resideRtea;.number and type of vehicles to be used by the applicant. rnoirlonfiol -41- r iAenfial Add '14i -I ;-for oration, as established by the director of public services, to assist the City's administration and oversight authority as established by State law. (4) For hazardous waste and infectious waste, written proof that the person or solid waste enterprise has obtained all necessary permits from the county, State of California and federal nnennies fnr the milartinn of ciirh was#e and has inciirnnre rnyera^e fnr the transport and disposal of such waste. (f) For -hire haulers, shall be required to obtain a "solid waste franchise" permit. This permit will allow for the provision of recurring and temporary services in all areas franchised by the City of Costa Mesa. In addition to the requirements established for all permit applicants herein, the solid waste enterprise permit applicant shall also be required to submit: (15) A written source reduction and recycling plan with details and time frame for implementation on how the permittee will provide the programs to its customers as required by the City of Costa Mesa Source Reduction and Recycling Element which include but are not limited to all of the following: a. Reduction of solid waste to maintain a fiftyep rcent (50�o perseRt diversion rate through source reduction, recycling and composting, and a sixty-five percent (65%) diversion rate for construction and demolition waste.- b. Economic incentives to achieve the diversion rates set forth in subparagraph (�4a. herein C. Technical, instructional, promotional, and educational programs to achieve the diversion rates set forth in subparagraph k54a. herein. d. Composting programs to facilitate the achievement of the diversion rates set forth in subparagraph (5}a. herein. e. Special waste programs. f. Organic waste recycling programs. In order to comply with the requirements of Chapter 12.9 of Part 3 of Division 30 of the Public Resources Code, the director of public services nay -shall require a permit applicant_, cooking an A Tier ►aide. oto demonstrate theiritsability to provide organics recycling services as a condition of permit issuance. q. OARy—$ther information or additional financial information frem the neer: tee -including, but not limited to, the right to audit financial records, or require a performance bond, or other suitable evidence of financial responsibility, if at any time such information is found to be necessary by the city council. The permittee will provide a certified copy of the permittee's last fiscal year's financial report, audited by a certified public accountant. All financial information contained in the permit application made to the city pursuant to this article shall be deemed to be confidential and shall be retained by the city for its use and, under no circumstances, will such information be released to anyone other than the permittee without the consent of the permittee. (q�) The Costa Mesa Sanitary District ("CMSD") will continue its franchise for all single-family residential and multi -family residential receiving curbside service. No other permittee will be allowed to operate in areas governed by the CMSD. (h) Contractor self -haul permit applicants must comply with items (a) through (e) of this section and shall also provide per-proiect forms, as required by the director of public services and subsequently submit all waste disposal and diversion tickets associated with their prolect(s) at the time prescribed by the director of public services. Failure to submit both the required form and all associated weight tickets shall subject the permittee to an administrative penalty as outlined in Section 8-84. 8-78. Issuance or denial of permit. (a) When an application has been made to the city for a permit pursuant to this article, it shall be the duty of the director of the public services department to consider the matter; and he or she shall have the right to grant, condition or deny the permit request, and such decision shall be subject to an appeal to the city council pursuant to Chapter IX of Title 2 of this Code. In granting, conditioning or denying the permit request, the director of public services and the city council may take into consideration factors, including, but not limited to, the following: (1) The ability of the permittee to comply with the solid waste handling service standards enumerated in this article. (2) The ability of the permittee to comply with the equipment standards enumerated in this article. (3) The ability of the permittee to comply with the provisions regarding insurance or bonds enumerated in this article. (4) The ability of the permittee to provide programs and comply with the City of Costa Mesa Source Reduction and Recycling Element and implement the source reduction and recycling plan proposed by the permittee pursuant to paragraph (5) of subsection (e) of section 8-77. (b) The decision by the city council on a permit application shall be final. (c) No permit granted pursuant to this article shall be assigned or transferred without the consent of the director of public services. The term of the solid waste franchise permit shall be for a period of seven (7) years, provided that on each anniversary date of a permit it shall be automatically extended for one (1) additional year so that the term remains seven (7) years unless at least sixty (60) days prior to the anniversary date either the city or permittee notifies the other in writing that the permit will not be renewed in which case the term shall not be extended for an additional year and will have only six (6) years remaining and shall not be automatically extended thereafter. Nothing in this subdivision shall prevent the city from terminating a solid waste franchise permit before the end of its term pursuant to the provisions of section 8-79. No permit granted pursuant to this article shall limit the right of the city to grant an exclusive or nonexclusive franchise for solid waste handling services in ti ie city. r, permit pit issued under this article shall not grant the permittee rights under California Public Resources Code Section 49520, where at the time the permit is granted the permittee did not have a right to continue service under such section 8-79. Revocation of permit. (a) In the event that any person, rnntrartnr or solid waste enterprise holding a permit to collect solid waste, hazardous waste, or infectious waste upon or along any public highway within the city from any commercial, industrial, or multifamily residential unit(s), or residential unit(s) violates any of the conditions of such permit, the requirements of section 8-87, the provisions of this article, or any other ordinance, statute, or regulation relating to the collection, storage, or disposal of solid waste, hazardous waste, or infectious waste, or collects such solid waste in an unlawful, improper, or unsanitary manner, the director of public services may revoke such permit issued to such person, contractor or solid waste enterprise as provided by this section. (b) The director of public services may revoke a permit by issuing a written order to the permittee and the order shall state the grounds for such revocation, and that if proof of compliance is not provided to the director of public services within thirty (30) calendar days from the date of the written order, the permit will be revoked forty-five (45) calendar days from the date the written order was mailed. The order shall be mailed by certified mail to the permittee. The written order shall be subject to an appeal to the city council pursuant to Chapter IX of Title 2 of this Code. Upon revocation of a permit, the permittee shall cease all services subject to the permit within seventy-five (75) calendar days from the date the order is mailed. The director may adopt regulations to implement the provisions of this section. (c) Regarding the failure of a solid waste franchise permittee to comply with the requirements of section 8-84, including, but not limited to, the mainteRaRGe ef the fifty (50-) achievement of diversion requirements, as FequiFed in +c S961FGo the following procedure will be followed: (1) The director will determine whether the pefmiteepermittee has made a good faith effort to comply with the conditions of the permit and the requirements of this article. The director will consider evidence submitted by the perrniteepermittee concerning this matter and the perrnfteepermittee has the burden of establishing that it has made reasonable and feasible good faith efforts to achieve compliance. Evidence to be considered on this issue includes, but is not limited to, how close to compliance the particular deficiency is, the efforts the permiteepermittee has taken to meet the requirement, the expense required to provide the permiteepermittee with the means for compliance, the results of similar permittees in meeting the requirement, the availability of new technologies which the perm+teepermittee could utilize to satisfy the requirement, the plans submitted by the peFmiteepermittee showing what steps it plans to take to enable it to fully comply with the requirement and the time that will take, whether peFm4eepermittee has already taken reasonable steps to alter its operations in time to meet the requirement, and what impact the permittee's failure has on the city's overall compliance with the state requirements for solid waste reduction and diversion. The permittee's good faith efforts must conform to any guidelines established by the city and/or the state in this regard. (2) The provisions of this subsection authorizing the director to consider the good faith efforts of a permittee shall only be applicable so long as the state authorizes and grants a comparable good faith exception concerning the city's responsibilities under state law. (3) If the director determines that a good faith effort has been made by the peFrniteepermittee, the director may decide not to revoke the permit. If the permit is not revoked, the director may impose new conditions to the permit, such as: (i) the perrniteepermittee must prepare a full compliance plan to show how it intends to meet the diversion requirement, (ii) the plan must be submitted within 30 days and approved by the director, (iii) the perrniteepermittee must comply with that plan, or (iv) any other conditions that the director concludes are appropriate and will help meet the requirements of state law and the city ordinance. (4) If a permit is not revoked because the director determines that a good faith effort had been made, the permit revocation process may be commenced again at any time the director determines new grounds therefor exists, including, but not limited to, noncompliance with any new conditions placed upon the permit at the time the good faith determination was made. (d) If a permit is revoked, no permit shall be thereafter granted to such person to collect solid waste, hazardous waste or infectious waste in the city until such time as the permittee can prove the ability to comply with this article. 8-80. Equipment requirements. (a) Vehicles used by the permittee for solid waste handling services shall be approved by the director of public services or his or her designee and shall be in safe and operable condition. Vehicles shall be painted with the firm name on each side at a minimum of three- inch -high letters. No materials shall leak, fall or be spilled from any such vehicle or bin attached thereto. Vehicles shall be equipped with shovels and brooms to clean up spillage. Equipment bodies shall be of metal and watertight. Vehicles must pass city approved inspections and meet applicable air quality and vehicle emissions standards. Truck bodies shall be closed when used to transport solid waste, hazardous waste or infectious waste contents to places of disposal or separation for recycling. The maximum gross weight imposed by the wheels of any one (1) axle shall not exceed twenty thousand (20,000) pounds. Vehicles shall be operated in such a manner as to minimize their exterior noise levels in the city. Vehicles must conform to the California Vehicle Code and all other applicable laws and are subject to inspection at any time by the city or the California Highway Patrol. (b) Each vehicle required to have a permit, pursuant to this article, must pass a California Highway Patrol Biannual Inspection of Terminals for each vehicle or other inspection approved by the director of public services. Proof of inspection is required to be submitted to the public services department twice per year. Failure to pass the vehicle inspection may result in denial or revocation of the permit. (c) Each container of a residential unit utilizing curbside service shall comply with the requirements of the CMSD. (d) Containers to be used by industrial and commercial units and multifamily units not utilizing curbside service shall be provided by the permittee. Containers shall have the name and the phone number of the permittee clearly visible on two (2) sides in letters not less than three (3) inches in height. Containers shall be of a design and size to contain all the contents therein in such manner as to promote good housekeeping conditions. The owner of such containers shall maintain them in a safe and sanitary condition. The director of public services shall have the authority to approve new containers at any time. (e) All permittees shall maintain their containers to present a well -kept appearance and ensure that the container area is left clean of debris and refuse after pickup or delivery. Users shall be responsible for the cleanliness of the containers and sanitary conditions of the surrounding area between services. 8-81. Service standards. (a) In all areas of the city pickup shall be at least once per week. Pickups shall not be made between the hours of 8:00 p.m. and 7:00 a.m., unless otherwise approved by the director of public services or CMSD. No collection will be allowed on Sundays or between the hours of 8:00 p.m. and 7:00 a.m. on weekdays or weekends unless requested and specifically approved by the director of public services. In the event of a holiday, pickups shall be completed one (1) day later than the regularly scheduled collection day. The following are considered to be holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas Day. (b) The schedule for collection from commercial and industrial units shall be determined by the permittee and occupants of such units and subject to review by the director of public services. (c) The permittee shall provide all multi -family residential units a container or containers that have a minimum storage capacity of one-half ('/2) cubic yard of refuse per dwelling unit per week. The minimum service standards are subject to review by the director of public services. (d) All collections of refuse from multi -family residential units of five (5) or more dwelling units shall be made from private property except where the director of public services has made a written determination that there is a physical limitation or documented safety issue(s) that prevents collection service from private property. (e) The permittee shall be allowed, unless specifically forbidden to do so by the owners or occupants, to enter private courts or places or other private property to make collections under a contract or permit, except in drive-in eating places and drive-in markets where refuse is kept in a paved service yard and where the same shall be picked up from such service yard when deposited there. (f) Solid waste franchise T 4c -permittees shall maintain a place of business at some fixed place and shall maintain a telephone, listed in the telephone directory in his or her own name or in the firm name by which he or she is most commonly known. At all times during the hours between 8:00 a.m. and 5:00 p.m. of each day upon which collections are made, said office must be staffed to receive complaints regarding collection. An emergency number shall be made available to city hall for the hours between 5:00 p.m. and 8:00 a.m. and for days upon which collections are not made. (g) If for some reason refuse is not collected, the permittee will leave a tag at least two (2) inches by six (6) inches explaining why on the receptacle or bundle. The condition referred to on said tag must be corrected within one (1) week. The permittee shall be required to maintain daily logs of all tags issued stating the location, and the reason for refusing collection. (h) The permittee shall, in person or by his agent, visit the office of the director of public services at such times as the director of public services shall designate for the purpose of discussing any matters or subject relating to, and any complaints which may concern the performance of his or her permit. The permittee shall report back to the director of public services within the next working day regarding any action or procedure taken with reference to complaints or other matters discussed. (i) In the event of a natural disaster, earthquake, storm, fire or other extraordinary occurrence that may tend to generate abnormal amounts of refuse, the city may require additional collection upon agreement between the city manager and the permittee. Q) In the event that service is interrupted due to labor disputes or other events impacting the health, safety and welfare of the citizens of the city, the city shall have the right to take over and operate any and all equipment of the permittee in order to continue service pursuant to the terms of the contract or permit if it is determined by the city manager to be necessary to the health, safety and welfare of the citizens of the city. If necessary, in the judgment of the city manager, city employees may operate said equipment. 8-82. Insurance and bonds. (a) The permittee shall at all times keep fully insured, at his or her own expense, all persons employed by him or her; in connection with the contract or permit workers' compensation insurance as required by the State of California, Workers' Gompensation lnsuFanGe and Safety AGt of the state, and shall hold the city free and harmless from all liabilities that may arise by reason on the injuries to any employee of the permittee who are injured while performing any work or labor necessary to carry out the provisions of a contract or permit. The permittee, during the life of the permit, shall keep on file with the city clerk evidence that the permittee is fully and properly insured as required by sasfa aPAState law. (b) If necessary, in the judgment of city council, the permittee shall deposit with the city a cash deposit or a performance bond guaranteeing the performance of any permit which he may have with the city. The cash deposit or bond shall be in the amount and in a form approved by the city attorney. (c) The permittee shall indemnify the city, its officers and employees, against, and hold the city, its officers and employees, harmless from, any claims asserted against the permittee on account of the negligence of the permittee or its employees, by employees of the permittee or by third parties, arising out of personal injuries or property damage, including hazardous material clean up costs and penalties, suffered by any such persons on account of the operations of the permittee hereunder. The permittee shall provide and maintain in effect, bodily injury, property damage and environmental liability insurance with limits in an C4 b amount approved by the city attorney and as set forth in the permit granted. The permittee shall have the city, its officials an' employees named as an additional insured under each of the aforementioned policies, and such policies shall be endorsed to require thirty (30) days written notice to the city prior to any cancellation thereof. The permittee shall furnish to the city certificates evidencing that the insurance required hereunder is in effect and such certificates shall be in a form approved by the city's risk management office. 8-83. Regulations. (a) It shall be unlawful for any person to place, deposit, dump or cause to be placed, deposited or dumped any solid waste, hazardous waste or infectious waste in or upon any private property or in or upon any public property which the public is admitted by easement or license without the consent of the owner, or in or upon any public highway, street, alley, sidewalk, gutter, parkway or upon any private road, alley, sidewalk, gutter or driveway in common use, or upon any public property other than property designated or set aside as a disposal station for such purpose by resolution of the city council or county board of supervisors. (b) It shall be unlawful for any person to place, deposit or dump solid waste, hazardous waste or infectious waste of any kind whatsoever upon any private or public property within a distance of one thousand (1,000) feet from any public highway in the city, or within a distance of five hundred (500) feet from any established residence or dwelling house within the city, or to cause or suffer or permit such solid waste, hazardous waste or infectious waste to be placed, deposited or dumped upon any public or private property within a distance of one thousand (1,000) feet of any public highway or within a distance of five hundred (500) feet of any established residence or dwelling house in the city, without first having obtained a use permit pursuant to the zoning laws of the city, county, and State of California, or pursuant to any other zoning law that may be hereafter adopted in the place and stead of said zoning laws of the city. The provisions of this subsection shall not apply to solid waste, hazardous waste or infectious waste placed into a container for pickup by a solid waste enterprise operating pursuant to a permit issued under this article. (c) No person shall burn any solid waste, hazardous waste or infectious waste within the city without having first complied with all rules and regulations of the city, the county, the South Coast Air Quality Management District and the state. (d) No person shall scavenge or bury any solid waste, hazardous waste or infectious waste within the city. (e) Special arrangements must be made and permits issued by the county, State of California, and federal agencies for the disposal of any of the following items: Ammunition; explosives; industrial waste; chemicals; infectious; hazardous and radioactive waste; acids; drugs; medicines; human feces; unwrapped animal feces; and items which are too large for the collection equipment or which may damage the collection machinery such as large pieces of metal, machine parts, logs and tree stumps. (f) Branches of trees, hedges, etc., shall be cut in lengths of not over four (4) feet and placed in containers or tied into bundles not exceeding fifty (50) pounds. All vacuum cleaner dust sweepings or ashes shall be wrapped and placed in the container. Newspapers and magazines may be bundled in bundles not exceeding fifty (50) pounds maximum. All metal containers may be placed in an enclosed container or wrapped in bundles not exceeding fifty (50) pounds maximum. In areas of curbside refuse collection, the requirements of this subsection are superseded by any requirements of the CMSD. (g) It shall be unlawful for a person, contractor or solid waste enterprise to commingle solid waste collected from within the jurisdiction of the City of Costa Mesa with solid waste collected from any other jurisdiction. A violation of this subsection shall result in the revocation of the permit pursuant to section 8-79. (i) It shall be unlawful for any person contractor or solid waste enterprise to place solid waste collection containers on public or private property without the appropriate city permit. For the first violation of this subsection the city will impound container(s) of non -permitted persons, contractors or solid waste franchises forty-eight (48) hours after such container(s) are observed by the city or the city's agent. For the second violation of this subsection, the city will impound containers of non -permitted persons contractors or solid waste enterprises previously noticed or impounded twenty-four (24) hours after such container(s) are observed the city or the city's agent Any subsequent violations shall be subject to immediate confiscation. Permitted haulers shall place signage and/or markings on their containers to clearly identify them as property of the permitted hauler, as required by the city. When a container that does not contain signage or markings to clearly identify it as the property of a permitted hauler is observed a notice shall be placed upon the container to inform its owner that illegal hauling has been established The owner of that container will have forty-eight (48) hours to remove said container or place signage identifying it as property of the permitted hauler so that the city or city's agent can determine if it is the property of a permitted hauler. If containers placed in violation of this section are not removed within the time periods set forth herein an impound fee per container, shall be imposed to cover the costs of impound, disposal of materials container storage and an administrative penalty fee for city enforcement and administration. The impound fee shall be established by city council resolution If the owner of the impounded container does not pay the full impound fee to the city within ninety (90) days of impound the impounded container shall become the property of the city to satisfy the impound fee. The city reserves the right to on an annual basis enter into an impound services agreement, in accordance with the city's procurement policies. The selected solid waste enterprise shall be a solid waste franchise permittee and shall be authorized to enforce the city's franchise by confiscating any roll -off containers or trash bins used for illegal hauling within city limits. The contracted solid waste enterprise shall be authorized to collect the impound fee set forth herein The owner of the container shall pay the impound fee in order to remove the property out of impound If the owner does not pay within ninety (90) days of impound, the contracted solid waste enterprise shall keep the impounded container to satisfy its service and hauling charges. (h) For any type of solid waste collection in the city, it shall be unlawful for any person to use the services offered by a person, Service, or enterprise that has not obtained all the required permits from the city pursuant to this article. (i) All businesses as defined by Public Resources Code section 42649.1 generating four (4) cubic yards of trash per week, and all multi -family properties of five (5) units or more, must arrange for the collection and recycling of solid waste as follows: (1) Source Separate recyclable materials from SOild waste and Subscribe to a basic level of recycling service that includes collection, self -hauling, or other arrangements for the pickup of the recyclable materials with a permittee. (2) Subscribe to a recycling service with a permittee that may include mixed waste processing that yields diversion results comparable to source separation. On or berme April 1, 2016, all businesses as defined by Public Resources Code section 42649.8 et seq., including multi -family residential dwellings of five (5) or more units, must arrange for recycling services specifically for the organic waste that they generate in the manner specified in subsection (k) as follows: (1) On and after April 1, 2016, a business that generates eight (8) cubic yards or more of organic waste per week shall arrange for recycling services specifically for organic waste; (2) On and after January 1, 2017, a business that generates four (4) cubic yards or more of organic waste per week shall arrange for recycling services specifically for organic waste; (3) On and after January 1, 2019, a business that generates four cubic yards or more of commercial solid waste, as defined in Public Resources Code section 42649.1, per week, shall arrange for recycling services specifically for organic waste; and (4) On or after January 1, 2020, if the state Department of Resources Recycling and Recovery determines that statewide disposal of organic waste has not been reduced to fifty (50) percent of the level of disposal during 2014, a business that generates two (2) cubic yards or more per week of commercial solid waste shall arrange for the organic waste recycling services specifically for organic waste, unless the department of resources recycling and recovery determines that this requirement will not result in significant additional reductions of organics disposal. (k) All businesses as defined by Public Resources Code section 42649.8 et seq. including multi -family residential dwellings of five (5) or more units located within the city shall do one or more of the following, except that a multifamily residential dwelling is not required to arrange for the organic waste recycling for food waste: (1) Source separate organic waste from other waste and subscribe to a basic level of organic waste recycling service that includes collection and recycling of organic waste with a permittee that recycles organic waste; (2) Recycle its organic waste onsite or self -haul its own organic waste for recycling; (3) Subscribe to a mixed waste processing service from a permittee that recycles organic waste; and/or (4) Donate or sell organic waste to a person or entity authorized by law to receive such waste. (1) Property management companies that contract for trash service for any commercial, institutional, or multi -family properties subject to this article are required to contract or otherwise make available recycling services to comply with this section. 8-84. Source reduction and recycling. (a) This section is enacted for the purpose of compliance with the California Integrated Waste Management Act of 1989 in accordance with California Public Resources Code Sections 40000 et seq. ("Act"). The city has adopted a source reduction and recycling element and household hazardous waste element pursuant to said Act which provides for the imposition and collection of charges to fund the preparation, adoption and implementation of said elements. Such charges shall be determined, fixed and established by the city council by resolution. Such charges may be changed by the city council from time to time by resolution. (b) A solid waste franchise permittee, as a condition of the permit, shall comply with the following source reduction and recycling requirements: (1) The permittee shall take all necessary steps to cause the industrial, commercial, multifamily residential units, and residential units who produce solid waste subject to the permit and the Act to divert solid waste as required by California Public Resources Code Section 41870 through source reduction, recycling and composting. (2) The permittee shall provide FeGyGlinn element and submit quarterly reports to the public services department, on the form and in the format required by the city, summarizing its progress in diverting solid waste generated by its customers in the city as required by California Public Resources Code Section 41870 and 41821. The quarterly reports must identify the tonnage collected, tonnage recycled, tonnage composted, percentage of waste recycled and/or composted, materials recycled, and the facilities receiving all waste generated. In addition quarterly reports must provide the level of customer specific data required to enable the city to be in compliance with State -mandated reporting requirements. Quarterly reports are due 30 days after the calendar quarter's end. Late reports are subject to a fine which shall be established by city council resolution. All requested report data must be provided. Incomplete reports will not be accepted and will be considered as late reports until they are fully completed. (3) As a permittee of the city, the permittee shall be an authorized recycling agent of the city and shall become the owner of all solid waste and recyclable materials, and hazardous waste and infectious waste collected pursuant to the permit. The permittee is solely responsible for arranging for the collection, transportation, recycling, and disposal of all solid waste, hazardous waste or infectious waste collected pursuant to the permit. The recyclables become the property of the permittee once placed in the collection bin. (4) The permittee shall collect a source reduction and recycling fee as imposed by resolution of the city council pursuant to the California Public Resources Code Section 41902 and this section. (c) A contractor self -haul permittee, as a condition of the permit shall comply with the following requirements to show compliance with section 8-84: (1) Apply for per -project permits. These per -project permits are required for each lob Pei -formed duriiiq the calendar near in which) the permittee is authorized by the city to haul the solid waste they generate. (2) Pay required per -project fees, which shall be established by city council resolution (3) Complete and submit all required forms. (4) Divert sixty-five percent (65%) of the solid waste generated by the contractor's business activity on that project or present the city with evidence showing the maximum amount of solid waste was diverted from landfills. (5) Pay any penalty assessed by the city for failure to provide required reports weight tickets, or other requested substantiation of compliant hauling activity requested by the city. These penalties are as follows: (A) A penalty amount equal to three times the established per -project fee for failure to submit any required form or weight ticket for that project. (B) A penalty amount equal to two times the established per-proiect fee_ for failure to achieve a sixty-five percent (65%) diversion rate or provide substantiation that the maximum solid waste possible was diverted from landfill. It shall solely be at the city's discretion, to determine if the maximum solid waste possible was diverted from landfill. (__Failure of the permittee to comply with the provisions of this section shall subject the permittee to additional civil penalties as determined and approved by city council pursuant to California Public Resources Code Section 41954. (ed) Notwithstanding the provisions of section 8-83, a person or entity owning or occupying an industrial, commercial, multifamily residential, or residential unit shall be permitted to create and use compost, as defined in California Public Resources Code Section 40116, on the private or public property that such person or entity owns or occupies. (fe) The requirements of this section shall not apply to the solid waste handling services provided by the solid waste enterprise under contract with the CMSD, provided the CMSD establishes source reduction and recycling standards that are compliant with all State mandates upon the waste collected under the CMSD's contract. 8-85. Disposal of heavy objects. Every person occupying or having charge or control of any premises in the city shall, at least once within each calendar month, collect and dispose of all waste material and debris, and all other material not included in the meaning of waste material as defined in section 8-76, which may have accumulated on his premises; provided that building or construction waste or debris will be removed upon completion of construction operations. All such waste and debris shall be removed to such dump grounds as may be provided or designated by the city or county. 8-86. Solid waste hauler permittees to comply with solid waste agreement with Orange County. Notwithstanding the provisions of this article, any person or solid waste enterprise holding a permit issued pursuant to this article shall be required as a condition of that permit to comply with the provisions of the solid waste agreement between the County of Orange and the City of Costa Mesa, and as amended, which agreement is attached as Appendix A to Title 8 and incorporated herein by this reference. The provisions of this section shall be effective July 1, 1997. 8-87. Franchise fee. (ab) Grant of franchise. The city hereby grants a solid waste hauling franchise to any solid waste enterprise upon the issuance to it of a permit issued pursuant to section 8-77 of this article. The term of the franchise shall run concurrently with the term of the permit and shall end upon the termination of the permit. The valid possession of such a permit shall be deemed to make a solid waste enterprise a franchisee under this section. (Glass 8) may be issued URdeF this seGti0R. (1) He! by GGMMeFGial, GiRgle family resideRtial, MUIti family FesideRtial 9F industrial wRits within -R fr;-;nG-hi,-;ee6 aFe Ret allowed to pFavide GIMP Off GentaiReFs OF biRs at these sites 0 any etheF site within the Gity'S waste disposal jurisdiGtiE)R. Class 13 franGhisees-afe (bd) Franchise fee. Every holder of a franchise issued pursuant to this section ("franchisee") shall pay a franchise fee as set by city council resolution based on the percentage of aRRual-quarterly gross receipts. The purpose of the franchise fee is to provide funds to the city to pay for the maintenance and rehabilitation of the public highways in the city and for other general revenue purposes. F -franchisees shall pay an annual minimum franchisee fee in the amount of ten thousand dollars ($10,000.00). This fee shall be prorated in the amount of two thousand five hundred dollars ($2,500.00) per quarter beginning with the quarter in which the franchise is granted. Glass 9 fFaRGhiGee6 shall pay whiGh shall Rot be prerat Such annual minimum franchisee fee payments shall be paid to the city upon issuance of a permit pursuant to section 8-77 of this article and, thereafter, by January 1 of each calendar year. Failure to timely pay franchise fees shall result in a penalty in the amount of five percent (5%) ^eFGeRt of the delinquent franchise fee owed, plus an additional one and one-halferp cent (1.5Do peFseRt of the fee for each month, or any portion thereof, that payment is late. Failure to timely pay franchise fees may also result in the commencement of permit revocation proceedings. The annual minimum franchisee fee shall be credited only toward the franchise fees that accrue during the same calendar year in which the minimum fee is paid. (e) Quart-ri fFranchise fee reports and payments. Every franchisee is required to submit a quarterly franchise fee report and pay the established franchise fee on all gross receipts for that quarter. Pre-paid franchise fees are used to satisfy this quarterly obligation up to the full pre-payment amount. Failure to submit payment and the requireda report within forty-five (45) days of the end of each calendar quarter shall result in a fine, which shall be established by city council resolution for each non-submittal. Submission of an incomplete report shall constitute a failure to submit a report and shall be subject to the same fine as that for non-submittal. (f) Records requirements. Every franchisee shall maintain all records relating to its solid waste handling services pursuant to this section, including, but not limited to, customer lists, billing records, services requests, cash receipts records, records demonstrating compliance with the requirements of section 8-84(b) of this article, and other documents and materials that reasonably relate the franchisee's compliance with this section. Upon five (5) business days' notice, such records shall be made available for city inspection at the franchisee's regular place of business. If the franchisee's regular place of business is not located within the county, the franchisee shall make such records available for city inspection at a location within the county, as determined by the city. (g) Audit requirements. An independent auditing firm shall perform an audit, at the city's expense, of any `franchisee's records (the "city audit") to ensure compliance with the provisions of this section on an annual and/or as-needed basis, to be determined by the city. The scope of the city audit shall be set by city council resolution. If a city audit determines that a franchisee has not paid its full franchise fee, the city shall invoice the franchisee for the amount of the net deficiency plus a penalty fee equal to twentyep rcent (20%) PeFGent of the net deficiency. (h) Exemption for CMSD. The franchise fee imposed pursuant to this section shall not be imposed upon any solid waste enterprise that has a franchise or contract with the Costa Mesa Sanitary District for any revenue the solid waste enterprise earns under that franchise or contract. ATTACHMENT 4 BuildingIndustry Association of Southern California, Inc. It ORANGE COUNTY CHAPTER BIR December 5, 2017 Mayor Sandra Genis City of Costa Mesa 77 Fair Drive Costa Mesa, CA 92626 Re: Waste Hauling Requirements Dear Mayor and Council: On behalf of our membership, we appreciate the opportunity to offer comments on the proposed municipal code revisions for Permitted Waste Hauling Requirements. As you are aware, the Building Industry Association of Southern California, Orange County Chapter (BIA/OC) is a non-profit trade association of over 1,100 member companies employing over 100,000 people affiliated with the home building industry. Our mission is to champion housing as the foundation of vibrant and sustainable communities. Per the staff report, the proposed revisions provide lower permit fees and eliminate the required pre -payment of non-refundable franchise fees. It also eliminates certain City audit requirements which we believe will streamline operations and cut overhead. BIA/OC is always seeking ways to simplify the process of home creation and we appreciate Costa Mesa's efforts here. Thank you for your thoughtful consideration. Respectfully, Steven C. LaMotte Chapter Executive Officer PRESIDENT PHIL BODEM MERITAGE HOMES VICE PRESIDENT MIKE GARTLAN KB HOME TREASURER RICK WOOD TRI POINTE HOMES SECRETARY SUNTI KUMJIM MBK HOMES IMMEDIATE PAST PRESIDENT JIM YATES RANCHO MISSION VIEJO TRADE CONTRACTOR V.P. 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