HomeMy WebLinkAboutORD 91-48 ORDINANCE NO.
ENTITLED AN ORDINANCE GRANTING A
FRANCHISE TO EASTEX WASTE SYSTEMS
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, Eastex Waste Systems(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:
Grant of Authority
Section 1.
There is hereby granted by the City to Eastex Waste Systems 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.
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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, 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 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) Upon written request and within thirty (30) days of receipt, the Company
shall furnish to the City adequate reconciliation of reported revenues which
would include: a listing of names and addresses of all customers served,
frequency of pick-up, size of container or type of service and charge for
same, and date service was initiated and discontinued.
Section 5.
Indemnity, Insurance and Bond
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 the part of its agents or employees.
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 Liability
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 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 Eauipment
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 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.
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.
Section 12.
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.
Section 13.
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 City Manager, P. O. Box 3827,
Beaumont, Texas 77704.
Section 14.
If any section, sentence, clause, paragraph or phrase of this ordinance, other than
Section 4, is for any reason held to be 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 15.
It is agreed by the City and Company that venue of any legal proceedings under this
franchise contract shall be in Jefferson County, Texas.
Section 16.
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.
PASSED BY THE CITY COUNCIL of the City of Beaumont on first reading
this the2;i w day of 1991.
PASSED BY THE CITY COUNCIL of the City of Beaumont on second reading
on this the -�day of ,care 1991.
PASSED BY THE CITY COUNCIL of the City of Beaumont on final reading
this the IRX20.day of 222ga .y- , 1991.
- Mayor -
ACCEPTANCE:
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