This chapter is adopted by the people of Monterey Park for the
purpose of requiring the city council to award solid waste franchises
on a competitive basis.
(Ord. 2081 § 3, 2011)
Beginning either on August 31, 2017 or upon the date any existing
solid waste franchise is terminated, whichever is sooner, the city
council must utilize this chapter for granting solid waste franchises.
No solid waste franchise agreement in effect as of March 8, 2011 may
be renewed or extended. However, the franchisee of any such franchise
agreement may participate in the competitive bidding process set forth
in this chapter.
(Ord. 2081 § 3, 2011)
Unless the contrary is stated or clearly appears from the context,
the following definitions govern the construction of the words and
phrases used in this chapter. Words and phrases not given a meaning
by this chapter have the meaning set forth in the Act and the regulations
promulgated to implement the Act, if defined therein, and if not,
to the definitions found in RCRA and the regulations promulgated to
implement RCRA, as amended.
means the California Integrated Waste Management Act of 1989
codified in part at California Public Resources Code Sections 40000,
et seq., as amended.
means the right and privilege granted by the city:
means the Resource Conservation and Recovery Act as set forth
at 42 U.S.C. Sections 6901, et seq., as amended.
(Ord. 2081 § 3, 2011)
Unless it chooses to provide solid waste hauling services itself,
the city must contract for and grant a franchise. Only persons with
a franchise may engage in the business of solid waste collection,
hauling, and disposal.
(Ord. 2081 § 3, 2011)
(a)
The
city must advertise for applications for a solid waste franchise by
notice. The advertisement must be placed in a timely manner so as
to allow for the orderly granting of a franchise in coordination with
the termination of services under any existing franchise. Such notice
must be posted at least one hundred twenty days before the expiration
of any current franchise, state the duration (not to exceed seven
years), terms, conditions, character and regulations under which the
city proposes to consider granting a solid waste franchise. Nothing
in this chapter is intended to, nor does it, preclude the city from
providing solid waste services by itself.
(b)
A
notice inviting applications must be published three days in a newspaper
of general circulation and published and circulated in the city. Nothing
precludes the city from publishing additional notice in other media.
(c)
A
notice inviting applications will also state the time and place that
sealed applications will be received and the time and place that said
applications will be publicly opened.
(d)
The
city council may require applicants to secure applications and performance
in a manner approved by the city council and in a form approved by
the city attorney. Unsuccessful applicants are entitled to the return
of bid security within sixty days after the date the city council
awards a solid waste franchise.
(e)
The
city manager is authorized to promulgate administrative rules and
procedures needed to implement this chapter.
(Ord. 2081 § 3, 2011)
Applications for obtaining a franchise must contain all of the
following information:
(a)
The
names and addresses of persons authorized to act on behalf of the
applicant with respect to the application.
(b)
Except
for publicly traded companies, applicants must provide the following:
(1)
The names and addresses of the ten largest holders of an ownership
interest in the applicant;
(2)
The names and addresses of all persons owning ten percent or more
in the applicant;
(3)
All of applicant's officers and directors and persons in the applicant's
direct ownership chain;
(4)
The corporate parent of the applicant.
(c)
A
demonstration of the applicant's technical ability to meet the obligations
of the franchise, including identification of key personnel.
(d)
A
description of the applicant's previous experience in solid waste
handling and disposal.
(e)
Identification
of California cities and counties where the applicant or its principals
own, or have an interest in, solid waste handling and disposal. If
an applicant does not currently have operations in California, it
must provide the information for its operations in other states. However,
all applicants must have solid waste handling and disposal experience
in California within the previous five years.
(f)
Identification
of the area of the city to be used by the proposed enterprise, including
a description of the proposed franchise area.
(g)
The
proposed rate structure for the proposed enterprise which is responsive
to the type of service and rate structure set forth in the request
for applications, including the method, if any, by which rates would
be increased over the life of the franchise.
(h)
Pro
forma financial projections for the term of the proposed enterprise,
including a statement of projected income and a schedule of planned
capital additions, with all significant assumptions explained in notes
or supporting schedules.
(i)
Applications
must be submitted to the city clerk's office in a sealed envelope
and be clearly marked as a bid along with the bidder's name and project
number written on the outside of the envelope. The purchasing officer
will open properly submitted applications at the time and place stated
in the notice inviting applications. A written record and tabulation
must be made at the time all applications are received and then opened.
(j)
Any
other information as may be reasonably necessary to demonstrate compliance
with the requirements of applicable law.
(k)
An
affidavit or declaration of the applicant or its authorized officer
certifying the truth and accuracy of the information in the application,
acknowledging the enforceability of application commitments, and certifying
that the application meets all requirements of applicable law. If
the applicant is a subsidiary of a corporate parent, the corporate
parent is also required to execute the affidavit or declaration and
execute a franchise agreement as a guarantor.
(Ord. 2081 § 3, 2011)
(a)
Review.
Applications must be evaluated based upon the proposed monthly rates
for service pursuant to the franchise; compliance with bid specifications
including, without limitation, financial and technical responsibility;
proposed diversion rate; proposed franchise fee; and any other reasonable
and material criteria identified in the notice soliciting applications,
the Monterey Park Municipal Code, or any other rule or regulation
promulgated to implement this chapter. The city council is prohibited
from utilizing criteria that is not material, reasonable or that results
in disqualifying multiple bidders that have three or more solid waste
franchises in California.
(b)
Public
Hearings. Before deciding whether to grant one or more solid waste
franchises, the city council may hold one or more public hearings
or implement other procedures for obtaining public input.
(c)
Minor
Irregularities. The city council may waive any minor irregularities
in applications submitted to the city pursuant to this chapter.
(d)
Award.
The city council must award the residential solid waste franchise
to a single franchisee but may, at its discretion, award the commercial
solid waste franchise to up to three franchisees. The city council
must award any franchise based upon the applicant proposing the lowest
proposed monthly rates to the customer. Such rates cannot be increased
on an annual basis by percentage greater than the percentage increase
in the consumer price index ("CPI") for all urban consumers as calculated
by the United States Department of Labor, Bureau of Labor Statistics,
for the Los Angeles-Riverside-Orange County area, all items.
(e)
Exception—Findings.
If the council determines that it is going to award the franchise
to other than the lowest bidder, the council must make findings that
the lowest bidder either cannot meet material requirements of the
franchise or materially failed to file a responsive bid.
(g)
Failure
to Execute Franchise. If a successful applicant refuses to comply
with, or fails to execute, a franchise agreement with the city within
twenty days after being awarded the contract, the city may cancel
the award and retain any bid security. Compliance with franchise requirements
includes, without limitation, submission of insurance documentation.
Should this occur, the city council may award the franchise to the
next lowest responsible applicant.
(Ord. 2081 § 3, 2011)
