HomeMy WebLinkAboutORD 90-26 ORDINANCE NO. )
ENTITLED AN ORDINANCE GRANTING A FRANCHISE TO
REM WASTE CONTROL, INC. TO OPERATE A SOLID
WASTE COLLECTION AND TRANSPORTATION SERVICE IN
THE CITY OF BEAUMONT; PROVIDING THE TERMS,
CONDITIONS, OBLIGATIONS AND LIMITATION OF SUCH
SERVICE; PROVIDING INDEMNITY TO THE CITY;
RETAINING AUTHORITY TO REGULATE RATES
PROVIDING FOR FRANCHISE PAYMENTS AND PROVIDING
FOR SEVERABILITY.
WHEREAS, REM Waste Control, Inc. (the "Company") has
requested a franchise to operate a solid waste collection and
transportation service within the City of Beaumont, Texas (the
"City") ; and,
WHEREAS, the City desires to grant such franchise;
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY OF BEAUMONT:
Section 1.
Grant of Authoritv
There is hereby granted by the City to Rem Waste Control,
Inc. the right and privilege to operate and maintain within the
City a solid waste collection and transportation service (the
"service") . For purposes of this franchise, the term "solid waste
collection and transportation service" shall mean the business of
collection, hauling or transporting any garbage, rubbish, waste or
refuse from locations within the City, and the disposal of such
material in accordance with law. The franchise granted herein is
nonexclusive, and franchises may be granted to other persons for
service.
Section 2.
Term of Franchise
The franchise herein granted shall take effect and be in
force sixty (60) days after the final passage hereof as required
by law and upon the filing by the Company of an acceptance with the
City Clerk, and shall continue in force and effect until five years
thereafter. The acceptance required hereunder must be in writing
and filed with the City Clerk within thirty (30) days after final
passage hereof. Upon the expiration of the term hereof, this
franchise shall continue on a month-to-month basis until terminated
by either party or extended or replaced.
Section 3 .
Rates
The Company shall establish rates for service which are
uniform as to customer class based upon such criteria as type of
waste, container size, frequency of collection, and distance of
travel. The Company shall file its initial rates for service with
its acceptance as required herein. Such rates shall, unless
modified by the City, be effective with the effective date of this
franchise. Any modification in rates by the Company shall first
be filed with the City Clerk and City Attorney and shall be
effective thirty (30) days after such filing unless modified by
City as provided herein. Nothing herein shall prevent the Company
from charging uniform rates which are less than the rates filed
with the City. The City shall have the right to establish rates
charged by Company for services performed hereunder, after notice
and hearing. Rates established by the City shall be sufficient to
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allow the Company an opportunity to earn a reasonable return on its
invested capital used in providing such services.
Section 4.
Franchise Fee
The Company shall pay to the City, on or before the
fifteenth (15th) day of each month, a sum equal to seven percent
(7%) of the gross revenues received for service in the previous
month as payment for the use of the City's streets, alleys and
rights-of-way. The payments herein provided do not relieve Company
from the payment of ad valorem taxes, special assessments, charges,
or other fees applicable to the public generally. City shall have
the right, at any reasonable time, to audit the books and records
of the Company and the Company is hereby required to make such
books and records available at the request of City. Upon written
acceptance, the Company shall furnish to the City a listing of
customers served, including customer name, address, frequency of
pick-up, size of container or type of service and charge for same.
The following reports shall be filed monthly with the City Manager
or his designee along with the street rental payment required
herein:
1) A listing of all new accounts served, including customer
name, address, frequency of pick-up, size of container
or type of service and charge for same.
2) Names and addresses of customers dropped from service for
any reason and the reason, if available, that such
customer was dropped from service.
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3) A statement under oath of all revenues derived from solid
waste collection and transportation services.
4) A listing of all vehicles used in providing service and
all vehicles which have been added to or removed from
providing such service. Such listing shall include state
license number, year, make, model, and manufacturer's
rated capacity for each vehicle.
Section 5.
Indemnity and Insurance
The Company shall, at all times during the effective period
of this franchise, carry liability insurance as provided herein.
The Company covenants and agrees at all times to indemnify and save
harmless the City, its officers, agents, employees, and any member
of the public against any and all injuries, damages, claims, causes
of action or loss of compensation arising or resulting from
Company's operations under this franchise, whether or not such loss
was caused by the negligence of the City, its agents, servants or
employees. Upon notice given Company by City, Company must defend,
at its own expense, any action or suit brought against the City
because of any work or other acts done by the Company under the
terms of this franchise. Counsel chosen by Company to defend City
must be satisfactory to City. Company will pay any final judgment
which might be obtained against City by reason of any work or acts
done hereunder by Company, its agents, servants or employees, and
Company will pay all damages occurring to any person or property,
public or private, resulting from any fault or neglect on its part
or on the part of its agents or employees.
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The Company agrees to carry insurance as follows:
1) Workers Compensation
The Company shall furnish the City Clerk a certificate of
insurance indicating workers compensation coverage as required
by the State of Texas.
2) Automobile Liability Insurance
The Company shall carry, in its own name, a policy in
comprehensive form to insure the automobile liability of its
operation with limits of not less than Five Hundred Thousand
Dollars ($500, 000. 00) per occurrence for bodily injury and,
in addition, not less than One Hundred Thousand Dollars
($100, 000. 00) property damage. This policy shall name City
as an additional insured and provide for thirty (30) days
notice to City prior to cancellation. A certificate of
insurance certifying such coverage shall be filed with the
City Clerk before the effective date of this franchise, and
it shall be maintained in force during the term of the
franchise.
3) General Liabilitv
The Company shall carry, in its own name, a comprehensive
liability insurance policy including contractual coverage for
operations other than automobile with limits of not less than
Five Hundred Thousand Dollars ($500, 000. 00) per occurrence for
bodily injury, and One Hundred Thousand Dollars ($100, 000. 00)
per occurrence for property damage. The policy shall name the
city as named insured and provide for thirty (30) days notice
to City prior to cancellation. A certificate of insurance
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certifying such coverage shall be filed with the City Clerk
before the effective date of this franchise and maintained in
force during the term of the franchise.
Section 6.
Compliance with Laws and Ordinances
The Company shall, at all times during the term of this
franchise, be subject to all lawful exercise of police power by the
City and to such reasonable regulations as the City shall hereafter
by ordinance provide. In addition, the Company will observe all
city, county, state and federal laws regulating the collection and
disposal of solid waste.
Section 7.
Service Standard and Equipment
The Company shall maintain and operate its collection
system and equipment in good order to render efficient service
subject to the terms of this franchise. All vehicles, containers,
and equipment used for the collection and transportation of solid
waste shall be constructed, operated and maintained to prevent loss
of liquid or solid waste material and to minimize health and safety
hazards to solid waste management personnel and the public. Such
vehicles, containers, and equipment used shall be maintained in a
clean, sanitary condition and free from odors at all times. All
vehicles and equipment shall comply with federal, state, and local
regulations. Collection vehicles and all bulk, commercial, and
roll-off type containers shall be painted and numbered and shall
have the Company's name and telephone number painted in letters of
a contrasting color. Such containers may not be placed on any
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street or right-of-way within the City. All collections shall be
made directly from the premises of the customer and any emptied
containers returned directly to such premises.
Section 8 .
Providing Service
The Company shall provide service to any person, firm,
corporation, association or entity inside the City of Beaumont who
requests such service and is not delinquent in the payment of
collection charges due the Company.
Section 9.
Office
The Company shall establish and maintain an office with
telephone service and shall keep said office open for business from
9: 00 a.m. to 5: 00 p.m. each and every day except Saturday, Sunday
and holidays.
Section 10.
Interruption of Service
In the event that service shall be interrupted for any
reason for more than forty-eight (48) hours, the City shall have
the right to make temporary independent arrangements for the
purposes of continuing this necessary service to its residents in
order to provide or protect the public health and safety. If the
interruption in service mentioned herein continues for a period of
seventy-two (72) hours, then the City shall have the right to
terminate the rights and privileges granted in this franchise.
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Section 11.
Termination
In the event that any provision of this franchise is
violated by the Company, the City may serve written notice upon the
Company of its intention to terminate this franchise. The notice
shall contain the reasons for such intention to terminate the
franchise. Unless within ten (10) days after mailing such notice
by City to the Company, such violation shall cease, or satisfactory
arrangements for correction be made by Company, the City Council
may, after a public hearing in which Company is provided an
opportunity to present evidence concerning such violation, declare
the franchise terminated and serve written notice upon the Company
of the termination and the termination of the franchise shall be
effective upon the mailing of such notice. Company shall be liable
to the City for any excess costs, expenses, and revenues occasioned
by the City taking over service, and in such event, the City may
take possession and utilize in prosecuting the work, such
appliances, equipment and sites as may have been used by the
Company and are necessary therefore. After issuance by the City
of its notice of intention to terminate the franchise, the Company
shall not remove from the City or a company-controlled site outside
the City, any of its equipment normally used in the prosecution of
the work until arrangements to continue the work have been
completed by the City.
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Section 12.
First Option to Purchase Equipment
Time for Exercising Option. Within sixty (60) days after
notice of termination of this franchise by either party or within
sixty (60) days prior to expiration of this franchise term or any
subsequent renewal term, the City and Company hereby agree that the
City shall have the first option to purchase from the Company or
the City shall have the option to provide for the purchase by a
subsequent provider or service all or part of Company's refuse
collection vehicles and equipment used in the performance of this
franchise. However, the City shall not be required to exercise
this option. The purchase price shall be the fair market value or
at a value agreed upon by the City Council and the Company in
writing. The City shall have the right, within five (5) years of
the expiration of the term hereof but prior to the last twelve (12)
months, to purchase or cause to be purchased the property of the
franchise holder, as provided herein.
Fair Market Value. The fair market value shall be the
appraised market value as determined by a board of three (3)
qualified appraisers of truck equipment none of whom shall be
employees of the City or the Company, one to be selected by the
Company, one to be selected by the City, and a third to be selected
by the other two appraisers. The opinion of the majority of the
board as to the market value of each collection vehicle shall be
final and shall establish the amount for each vehicle which the
City shall pay therefor.
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Appraisers Fees. The charges for service by the
appraiser for the City shall be borne by the City and the charge
for services by the appraiser selected by the Company shall be
borne by the Company. The charge for services by the third
appraiser shall be borne equally by the City and the Company.
As referred to herein, charge for services refers only
to the actual charge for appraisals and the City shall not be
responsible for any costs for travel or subsistence for either the
appraiser for Company or the third appraiser if such are selected
from outside Jefferson County.
If No Agreement as to Fair Market Value. If, on the
expiration or termination date of the contract, for any reason, the
appraised value of the vehicles shall not have been determined, the
City shall be entitled to immediate possession and use of said
vehicles and the Company shall immediately surrender possession of
the same to the City. The City agrees to pay the Company a fair
rental value for use of the vehicles. The fair rental value shall
be based on the actual average daily maintenance and operating cost
for each vehicle during the twelve (12) months previous to the
expiration date of the contract, and is not to include any initial
or depreciation costs.
Should any collection vehicle used in the performance of
the contract and to be purchased by the City not be fully paid for
and the City should make payments as due on any collection vehicle,
then all amounts, both for payments and interest, paid by the City
shall be deducted from the total price due the Company for the
purchase of such vehicle.
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Titles to Collection Vehicles. The Company agrees to
deliver to the City good and sufficient title to such collection
vehicles upon receiving payment as determined by the aforesaid
appraisal and to pay all attorney's fees and charge for
transferring titles.
Section 13 .
Subordination Agreement
Company agrees to make any lien on the equipment of
Company in providing service subordinate to the rights of City
under this franchise.
Section 14 .
Transfer of Franchise Rights
Franchise rights granted hereunder shall not be
transferred to another without the approval of City. A single
transfer or a series of transfers of Company's stock which
constitute a transfer of a majority interest in Company is subject
to the prior approval of City Manager.
Section 15.
Notices
Where written notices are provided for in this ordinance,
same shall be sufficient to notify Company when provided by
certified mail to the address furnished by Company to City. Notice
to City is sufficient if mailed by certified mail to P. 0. Box
3827, Beaumont, Texas 77704.
Section 16.
If any section, sentence, clause, paragraph or phrase of
this ordinance, other than Section 4, is for any reason held to be
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invalid or illegal, such invalidity shall not effect the remaining
portions of this ordinance. If Section 4 hereof is held to be
invalid for any reason, the ordinance shall be immediately invalid.
Section 17.
It is agreed by City and Company that venue of any legal
proceedings under this franchise contract shall be in Jefferson
County, Texas.
Section 18 .
Vehicle Permits
Twenty (20) days prior to the effective date of this
franchise, the Company shall furnish to the City a list of all
vehicles to be providing solid waste collection and disposal
service under this franchise. Such list shall include state
license number, year, make, model and manufacturer's rated capacity
for each vehicle. Vehicles not having a valid City of Beaumont
landfill permit will not be allowed to operate under this agreement
nor utilize the city refuse disposal facility. If at any time a
vehicle or equipment is found to be in noncompliance with Section
7 of this franchise, the Company will be notified of its violation
and said equipment or vehicle shall be removed from service upon
receipt of written notification.
Failure to comply with this provision or to falsify the
information concerning the location of the service of the vehicle
shall be a material breach of this franchise. Should City decide
not to terminate this franchise because of any violation of this
Section, Company's disposal fee at City's landfill shall be doubled
for all of Company's vehicles for a period of sixty (60) days.
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PASSED BY THE CITY COUNCIL of the City of Beaumont on
first reading this the /3,t, day of , 1990.
PASSED BY THE CITY COUNCIL of the City of Beaumont on
second reading this the o�Ot,171 day of ,uit 1990.
PASSED BY THE CITY COUNCIL of the City of Beaumont on
final reading this the / 7Z:4v day of � �_Qi , 1990.
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ACCEPTANCE:
By:
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