HomeMy WebLinkAbout30 - OB-2 - Attachment 2 - 1/2/2018ATTACHMENT
ORDINANCE . 18-01
ORDINANCEAN THE CITYCOUNCIL OF THE CITY OF COSTA
MESA, CALIFORNIA, 1 ICL 1(SOLID WASTE
COLLECTION) _, F -CHAPTER I(GARBAGE, RUBBISH AND
WEEDS) OF TITLE (HEALTH I I ) 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 grange 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 CEA 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 . Sections -76, 8-77, 8-7, 8-79, 8-81, 8-2, -3, 8-4, 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.
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.
(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 US.0§ 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 ac t es wit n suc state;
foll.
provided that the term "hazardous waste .
2. 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.
1 11 1 1 � ii I � 1 111,091 ��I 1 111
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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.
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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:
(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 • waste upon, along •
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 • 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
(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 sourot
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 • 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 tht-
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.
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 • circumstances, will suc in ormat on e re .. `# o anyone
other than the permittee without the consent of the permittee.
(9) The Costa Mesa Sanitary District ("CMsb") will continue its franchise for all single-family
residential and multi -family residential receiving curbside service. No ♦ 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
E
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 (� of section 8-77.
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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 w t n t e c ty
from any commercial, industrial, or multifamily residential unit(s), or residential unit(s) violates
0
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, (1i) 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.
E 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 carryout 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.
GSection 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 withir
the city,
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.
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:
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(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
• after January 1, 2019, a • 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 permiftee 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.
K Section 8-84 shall be amended to read as follows:
See. 8-84. - Source reduction and recycling.
(b) A solid waste franchise permittee, as a condition of the permit, shall comply with the following
• reduction and recycling «•
(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 allthorized 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.
I
(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.
(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.
1,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 prov e 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.
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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 ane -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) Quarterty 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 C SD. 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.
ecin 2. Com /lance with CEQA, Adoption of this Ordinance is exempt from the
California Environmental Quality Act ("CEQX) 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.
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. agyffg!2�L. If any section, subsection, sentence, clause, phrase or portion
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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.
NO �## 10
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PASSED AND ADOPTED this _ day of _, 2018.
F."11111111403
W =00:11 off -ANN tol MCI V I&
Brenda Green, City Clerk Thomas Duarte, City Attorney
N
STATE OF CALIFORNIA
COUNTY OF ORANGE ss
CITY OF COSTA MESA
1, 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.
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