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HomeMy WebLinkAboutORD 91-45 ORDINANCE NO. 91- s� ENTITLED AN ORDINANCE GRANTING A FRANCHISE TO WASTE MANAGEMENT - GOLDEN TRIANGLE 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, Waste Management - Golden Triangle (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 Waste Management - Golden Triangle 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. ,,� 9`- -�/? . C71 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 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 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 then day of 1991. PASSED BY THE CITY COUNCIL of the City of Beaumont on second reading on this the d&,v of , 1991. PASSED BY THE CITY COUNCIL of the City of Beaumont on final reading this the 2i,day ofY7cz , 1991. - Mayor - ACCEPTANCE: Waste Management-Golden Triangle BY: Wayne Colicher NATIONAL GUARANTY INSURANCE COMPANY " 'J 199 Main St., 5th Floor Courthouse Plaza` Burlington, VT 05401 Performance Bond Bond No.PB90-0075 Amount $50,000.00 KNOW ALL MEN BY THESE PRESENTS, That we,WASTE MANAGEMENT - GOLDEN TRIANGLE, A DIVISION OF TEXAS WASTE SYSTEMS, INC. , 2175 West Cardinal Drive, Beaumont, Texas 77705 hereinafter called the Principal), as Principal, and the NATIONAL GUARANTY INSURANCE COMPANY, Burlington, Vermont, a Corporation duly organized under the laws of the State of Vermont, (hereinafter called the Surety), as Surety, are held and firmly bound unto CITY OF BEAUMONT, P.O. BOX 3827, Beaumont, Texas 77704 (hereinafter called the Obligee), in the Sum of Fifty Thousand and 00/100----------------------------- °-----'---------Dollars ($50,000.00-------), for the payment of which we, the said Principal and the said Surety, bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. Sealed with our seals and dated this 5th day of April 1990 THE CONDITION OF THIS OBLIGATION IS SUCH, that whereas the Principal entered into a certain Contract with the Obligee, dated March 25 , 1988 for commercial and roll-off trash removal in accordance with the terms and conditions of said Contract, which is hereby referred to and made a part hereof as if fully set forth herein. NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if the above bounden Principal shall well and truly keep, do and perform each and every, all and singular, the matters and things in said Contract set forth and specified to be by said Principal kept, done and performed, at the times and in the manner in said Contract specified, or shall pay over, make good and reimburse to the above named Obligee, all loss (over) - and damage which said Obligee may sustain by reason of failure or default on the part of said Principal so to do, then this obligation shall be null and void; otherwise shall remain in full force and effect, subject, however, to the following conditions: NOTWITHSTANDING ANYTHING CONTAINED IN THE CONTRACT TO THE CONTRARY, THE LIABILITY OF THE PRINCIPAL AND SURETY UNDER THIS BOND IS LIMITED TO THE ORIGINAL TERM OF THE CONTRACT FROM March 25, 1990 TO March 25, 1991 ANY EXTENSIONS OR RENEWALS OF THE REFERENCED CONTRACT SHALL BE COVERED UNDER THIS BOND ONLY WHEN CONSENTED TO IN WRITING BY THE SURETY. Any suit under this bond must be instituted before the expiration of two (2) years from the date on which final payment under the Contract falls due. No right of action shall accrue on this bond to or for the use of any person or corporation other than the Obligee named herein or the heirs, executors, administrators or successors of the Obligee. WASTE MANAGEMENT - GOLDEN TRIANGLE, A DIVISION OF TEXAS WASTE SYSTEMS, INC. Principal By: avid I. Kopp, Assist Secretary National Guaranty Insurance Company By: &4to A dA ie Bouch r, Attorney-in-Fact 4l1L t t m a s� POWER OF ATTORNEY Know all Men by These Presents that the National Guaranty Insurance Company, 199 Main Street, Burlington, Vermont Corporation (the "Corporation"), has constituted and appointed and does hereby constitute and appoint Malcolm Cutts-Watson, Julie Boucher, Brenda Owen and Lisa Paradis of Burlington, Vermont each its true and lawful Attorney-in-Fact to execute under such designation in its name and to affix its corporate seal to deliver for and on its behalf as surety thereon or otherwise, bonds of any of the following classes, to-wit: 1. Surety bonds to the United States of America or any agency thereof,including lease and miscellaneous surety bonds required or permitted under the laws, ordinances or regulations of any State, City, Town, Village, Board or any other body or organization, public or private. 2. Bonds on behalf of contractors in connection with bids, proposals or contracts. The foregoing powers granted by the Corporation shall be subject to and conditional upon the written direction of any officer (or any designee of any such officer) to execute and deliver any such bonds. IN WITNESS WHEREOF, the Corporation has caused these presents to be signed by its Vice President/Underwriting and its Secretary, and its corporate seal to be hereto affixed this 15th day of June 1969 Witness: National Guaranty Insurance Company �Z Vice President Un a sting