HomeMy WebLinkAbout07-19 - Amending Section 8-87 of Code Relating to Solid Waste Franchise FeesORDINANCE NO. 07-19
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF COSTA MESA, CALIFORNIA, AMENDING SECTION 8-
87 OF THE COSTA MESA MUNICIPAL CODE RELATING
TO SOLID WASTE FRANCHISE FEES.
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY
ORDAIN AS FOLLOWS:
Section 1. Section 8-87 of the Costa Mesa Municipal Code is hereby deleted in its
entirety and replaced by the following:
Sec. 8-87. Franchise fee
(a) Franchise required. No solid waste enterprise shall collect or haul
any solid waste along or across any public highway in the City of Costa
Mesa without first obtaining and maintaining in effect a solid waste hauling
franchise from the city for the use of such streets to conduct its business
activity.
(b) 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 tens 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.
(c) Franchise types. Franchises for solid waste hauling, generally
(Class A), and franchises for affixed container vehicle operators hauling
construction and demolition waste (Class B) may be issued under this
section.
(1) Holders of Class A franchises ("Class A franchisees") may operate
any type of solid waste collection vehicle licensed and permitted by the
State of California to collect, transport, remove, dispose and/or recycle
any type of solid waste material generated by commercial, multi -family
residential or industrial units within the city's waste disposal jurisdiction,
except as provided in section 8-77(e)(7) of this article. Such franchisees
have the exclusive right to place and collect bins and roll -off containers at
commercial and industrial locations, excepting recycling firms that collect
materials free of charge or pay net positive revenue (inclusive of hauling
fees) for the materials collected.
(2) Holders of Class B franchises ("Class B franchisees") may operate
only affixed container vehicles permitted by the State of California to
collect and transport non-putrescible and inert waste generated at
construction and deconstruction sites. Class B franchisees are not
allowed to provide drop-off containers or bins at these sites or any other
site within the city's waste disposal jurisdiction. Class B franchisees are
allowed to utilize sub -contractors to perform waste hauling services
provided that those sub -contractors only operate affixed container
vehicles.
(d) 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 annual 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. Class A franchisees shall pay an annual
minimum franchisee fee in the amount of ten thousand dollars ($10,000).
This fee shall be prorated in the amount of two thousand five hundred
dollars ($2,500) per quarter beginning with the quarter in which the
franchise is granted. Class B franchisees shall pay an annual minimum
franchisee fee in the amount of one thousand five hundred dollars
($1,500), which shall not be prorated. 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 1st 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.
(e) Franchise Fee Reports. Every franchisee is required to submit a
quarterly franchise fee report. Failure to submit a report within 45 days of
the end of each calendar quarter shall result in a fine of one hundred frfty,
dollars ($150) for each non -submittal. Submission of an incomplete report
shall constitute a failure to submit a report and shall be subject to the $150
fine 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
twenty percent (20%) of the net deficiency.
(h) Exemption. 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 eams under that franchise or contract.
Section 2. 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 3. Severability. If any chapter, article, section, subsection, subdivision,
sentence, clause, phrase, or portion of this Ordinance, or the application thereof to any
person, 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 portion of this Ordinance or its application to other persons. The City Council
hereby declares that it would have adopted this Ordinance and each chapter, article,
section, subsection, subdivision, sentence, clause, phrase or portion thereof,
irrespective of the fact that any one or more subsections, subdivisions, sentences,
clauses, phrases, or portions of the application thereof to any person, be declared
invalid or unconstitutional. No portion of this Ordinance shall supersede any local,
State, or Federal law, regulation, or codes dealing with life safety factors.
Section 4. This Ordinance shall take effect and be in full force thirty (30) days from
and after the passage thereof, and prior to the expiration of fifteen (15) days from its
passage shall be published once in the NEWPORT BEACH/COSTA MESA DAILY
PILOT, a newspaper of general circulation, printed and published in the City of Costa
Mesa or, in the alternative, the City Clerk may cause to be published a summary of this
Ordinance and a certified copy of the text of this Ordinance shall be posted in the office
of the City Clerk five (5) days prior to the date of adoption of this Ordinance, and within
fifteen (15) days after adoption, the City Clerk shall cause to be published the
aforementioned summary and shall post in the office of the City Clerk a certified copy of
this Ordinance together with the names and member of the City Council voting for and
against the same.
PASSED AND ADOPTED this 0 day of December, 2007.
ATTEST:
Jufle Folcik, City Clerk
AV/ 4�xz� -
Allan R. Mansoor, Mayor
APPROVED AS TO FORM:
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Kimberly Hall Barlow, City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, JULIE FOLCIK, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY
that the above and foregoing Ordinance No. 07-19 was duly introduced for first reading
at a regular meeting of the City Council held on the 20"' day of November, 2007, and
that thereafter, said Ordinance was duly passed and adopted at a regular meeting of the
City Council held on the 4h day of December, 2007, 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 5" day of December, 2007.
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JUf IE FOL IK, CITY CLERK
(SEAL)
I hereby certify that the above and foregoing is the original of Ordinance No. 07-19 duly
passed and adopted by the Costa Mesa City Council at the regular meeting held
December 4, 2007, and that Summaries of the Ordinance were published in the
Newport Beach -Costa Mesa Daily Pilot on November 26, 2007 and December 12, 2007.
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JULIr= FOLCIK, CITY CLERK
(SEAL)