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HomeMy WebLinkAboutStaff Report 4.A - Attachment 1 11/19/2012 ATTACHMENT 1 . ORDINANCE NO. N.C.S. APPROVING A NEWTRANCHISE AGREEMENT BETWEEN THE CITY OF PETALUMA.AND:PETALUMA REFUSE AND RECYCLING, INCORPORATED, AN AFFILIATE OF THE RATIO GROUP OF COMPANIES, INC. FOR SOLID WASTE, RECYCLABLE MATERIALS AND YARD TRIMMINGS SERVICES AND STREET SWEEPINGSERVICES, AND AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE THE FRANCHISE AGREEMENT AND RELATED DOCUMENTS WHEREAS, on September 13, 2005, the City entered into an exclusive Franchise Agreement("Agreement") with GreenWaste Recovery; Inc., ("Green Waste") commencing on January 1, 2006, for collection of solid waste, recyclable materials and yard trimmings, pursuant to Resolution No. 2005-141 N.C.S.; and WHEREAS, on July 6, 2009, the City Council amended the Agreement(the First Amendment) to modify the Rate.Periods originally specified in the Agreement and to extend the Term of the Agreement six months to June 30, 2016; and WHEREAS, on January 4, 2010, the City Council approved assignment of the Agreement with Green Waste Recovery to Petaluma Refuse and Recycling, Incorporated (PR & R), an affiliate of The Ratto Group of Companies, Inc.by adoption of Ordinance No. 2361; and WHEREAS, on November 21, 2011, the City Council adopted Ordinance No. 2421 amending Chapter 8.16 entitled "Garbage and Rubbish.Disposal" to add section 8.16.065, "Award of franchises.without.competitive bidding." which provides that the City Council may enter into an exclusive franchise for garbage and rubbish collection if the Council finds that the benefits of doing so outweigh the potential benefits of using the competitive process otherwise required by Chapter 8.16; and WHEREAS, PR & R°has offered benefits and financial incentives to the City as part of a new franchise agreement that are not provided in the existing franchise agreement; and WHEREAS, the City and PR &R wish to terminate the existing franchise agreement and enter into a new 15-year franchise agreement without engaging in competitive bidding, rather than renew the existing franchise agreement pursuant to Chapter 8.16 and City of Petaluma Charter Section 51; and WHEREAS, the City Council finds that the following benefits to the public are offered by the new franchise agreement and outweigh the potential benefits to the public of following the competitive bidding procedures in Section 8.16.070: o PR & R will pay 5500,000 to the city during the first three months of the new franchise agreement term. o PR &..R will pay the full cost of the City's consultants, legal advisers and staff costs necessary to perform due diligence related to the existing and proposed services, including a contract;compliance review, and negotiation of a new franchise agreement, estimated at,$T06,000. o The new franchise agreement delays rate increases that would have occurred under the prior franchise agreement, resulting in savings to ratepayers of approximately $410,000 per year, or $6.15 million over the fifteen year life of the agreement. o The City's share of revenues under the new franchise agreement will be approximately $22.2 million in standard franchise fees, $15.3 million from the streets impact portion of the franchise fee and $620,000 for PR & R-paid compliance costs, totaling approximately $38.1 2 million.. o The City's share of revenues under the new franchiseagreement will show an increase of approximately $12.4 million over the fifteen year life of the,agreement, compared to existing•franchise fees and payments; and WHEREAS, the new franchise agreement continues the same services for solid waste disposal, recycling and related services provided for by the previous franchise agreement, requires the same diversion percentage of waste from landfills, directs garbage and rubbish hauled from City sources to the same landfill, continues the composting of greenwaste and directs the hauling of greenwaste to the same composting site, and uses the same trucks and equipment as used by the existing.solid.waste,recycling and disposal service, thereby making no changes to the services which would have physical environmental impacts as defined by the California Environmental Quality Act ("CEQA"); and, therefore, adoption of this ordinance is not a "project" under CEQA and/or is categorically exempt pursuant to Title 14, Chapter 3, California Code of Regulations ("CEQA Guidelines") section 1.5301, as the operation, maintenance, repair, permitting, leasing or licensing of existing public or private structures, facilities or mechanical equipment with negligible or no expansion of use; PR &.RPR& R NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Petaluma as follows: Section 1. The above recitals are hereby incorporated as findings and declared toihe true and correct. Section 2. The City Council approves a new Franchise Agreement between-the City of Petaluma and Petaluma Refuse and Recycling, Incorporated (PR& R), an affiliate of The Ratto Group of Companies, Inc. for Solid Waste, Recyclable Materials, and Yard Trimmings Services and Street Sweeping Services, and authorizes and directs the City Manager to execute on behalf of the City a Franchise Agreement substantially in accordance with Attachment 2 to this ordinance, which is hereby made a part of this ordinance for all purposes, and any related documents necessary and appropriate to implement such new Franchise Agreement in accordance with the requirements of the Petaluma City Charter and the Petaluma Municipal,Code, and in the interests of the City and its citizens. Section 3. The new Franchise Agreement approved pursuant to this ordinance shall replace and succeed the Franchise.Agreement as assigned to PR &IR on January 4, 2010, by Ordinance No. to 2361, and such Franchise Agreement as assigned on January 4, 2010 shall terminate, subject to this ordinance and"any implementing documents related to the new Franchise Agreement executed on behalf of the parties pursuant to this ordinance. Section 4. If any section, subsection, sentence, clause, phrase or word of this ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this ordinance. The City of the City of Petaluma hereby declares that it would have passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid. Section 5. This ordinance or a synopsis of it shall be posted and/or published for the period and in the manner required by City charter. Section 6. This ordinance shall become effective thirty (30) days after the date of its adoption by the Petaluma City Council. 2006153.1 II