HomeMy WebLinkAbout04-74 - Adopting Solid Waste Hauling Franchise Fee and Related Computation & Collection ProceduresRESOLUTION NO. 04-74
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA, CALIFORNIA, ADOPTING A SOLID WASTE
HAULING FRANCHISE FEE AND RELATED COMPUTATION
AND COLLECTION PROCEDURES
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY
RESOLVE AS FOLLOWS:
WHEREAS, the City Council of the City of Costa Mesa adopted Ordinance No.
04-12 on November 15, 2004, that requires solid waste enterprises operating within the
City to obtain a City franchise and pay a franchise fee; and
WHEREAS, Ordinance No. 04-12 also provides in Municipal Code section 8-
87(c) that the amount of the franchise fee will be set by City Council resolution and the
City Council hereby desires to set said fee amount and adopt related procedural
provisions for the fee's computation and collection.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF COSTA MESA AS FOLLOWS:
SECTION 1. FRANCHISE FEE.
a. There is hereby enacted a franchise fee in the amount of 12% of the
annual gross receipts of a franchisee from its business conducted in the
City of Costa Mesa. For the purpose of this resolution, gross receipts
means and includes all monies, fees, charges, consideration, and revenue
received by, or imputed to the franchisee and any affiliates, parent
companies, subsidiaries and/or subcontractors of the franchisee, in
connection with, arising from, or in any way attributable to the services
carried out by or on behalf of the franchisee pursuant to a franchise granted
under section 8-87.
b. This fee shall be paid quarterly by each franchisee to the City Finance
Department ("Department"). Each payment shall be due within 30 days of
the end of each calendar quarter, i.e. payments for the four quarters shall
be due on April 30, July 30, October 30, and January 30 of each calendar
year. Franchisees shall include with each payment the financial data
requested by the Department for verifying that the amount of the fees paid
complies with this resolution.
c. The franchisee shall pay a penalty for any late payment of a franchise fee
in the amount of 5% of the delinquent franchise fee owed, plus an
additional 1 1/2 % of the fee for each month, or any portion of a month,
that the payment is late.
d. To prevent the franchise fee from being applied to more than the actual
gross receipts of a franchisee, no franchisee shall itemize the amount of
the franchise fee as a separate amount or line -item in its bills to
customers.
SECTION 2. FINANCIAL AUDITS OF FRANCHISEES.
a. The Department may order a financial audit of any franchisee pursuant to
Costa Mesa Municipal Code ("CMMC") section 8-87(f). The City Aud.it shall
include a review of the franchisee's cash receipts records, solid waste
tonnage collection, diversion, and other related records, as well as those of
each of its parent, subsidiary and/or affiliate companies, as appropriate, to
determine the franchisee's gross receipts, the accuracy of franchise fees
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paid, and such other information as shall be deemed appropriate by the City
Finance Director to evaluate the franchisee's compliance with section 8-87.
In connection with a City Audit, franchisees shall make available for review
at their business offices detailed account records, such as the names and
addresses of customers.
b. If a City Audit determines 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.
c. A franchisee shall reimburse the City for the cost of a City Audit if the
audit determines that the franchise fee for the audited period(s) has been
underpaid in excess of five percent (5%) of the total required fee. Such
reimbursement shall be paid by the franchisee within thirty (30) days of
the date the City notifies the franchisee in writing of the amount of the
City's cost of the audit.
SECTION 3. REPEAL OF PRIOR RESOLUTION. City Council resolution No.
00-72 setting a fee for City's costs for the preparation, adoption and implementation of
its source reduction and recycling element and household hazardous waste element is
hereby repealed. The costs for these city services will now be paid for from the solid
waste hauling franchise fee revenue.
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SECTION 4. EFFECTIVE DATE OF FRANCHISE FEE. This franchise fee shall
commence on January 1, 2005, and the first quarter fees shall be due to the City on
April 30, 2005. Failure to pay any franchise fees or penalties assessed to a franchisee
shall constitute grounds for revocation of the franchise pursuant to CMMC section 8-79.
PASSED AND ADOPTED this 15th day of November, 2004.
Mayor of the City of Costa Mesa
ATTEST:
r7
Deputy bily Clerk o the City of Costa Mesa
APPROVED AS TO FORM
City Attorney
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STATE OF CALIFORNIA)
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, JULIE FOLCIK, Deputy City Clerk and ex -officio Clerk of the City Council of the
City of Costa Mesa, hereby certify that the above and foregoing Resolution
No. 04-74 was duly and regularly passed and adopted by the said City Council at
a regular meeting thereof held on the 15th day of November, 2004, by the following roll
call vote:
AYES: Monahan, Cowan, Scheafer
NOES: Mansoor, Steel
ABSENT: None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of
the City of Costa Mesa this 16th day of November, 2004.
Dep City Clerk and ex -officio Clerk of
the City Council of the City of Costa Mesa
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