HomeMy WebLinkAboutORD 18-038ORDINANCE NO. 18-038
ENTITLED AN ORDINANCE GRANTING A FRANCHISE FOR SOLID
WASTE COLLECTION AND TRANSPORTATION SERVICES TO DSC
CARTING, LLC.
WHEREAS, DSC Carting, LLC (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 Authority
There is hereby granted by the City to DSC Carting, LLC 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 in 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 one (1) year 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.
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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 modifications 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 on 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 ($100,00.00)
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.
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Providinq Services
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
satisfactorily 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:
DSC Carting, LLC
1701 W. Willow Street
Lafayette, LA 70583
Notice to City is sufficient if mailed by certified mail to:
City Manager
City of Beaumont
P.O. Box 3827
Beaumont, TX 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 affect 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 City and Company that venue of any legal proceedings under this
franchise agreement 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.
The meeting at which this ordinance was approved was in all things conducted in strict
compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551.
PASSED BY THE CITY COUNCIL of the City of Beaumont on first reading this the
17th day of July, 2018.
It ft,j� - M or Becky Ames -
The meeting at which this ordinance was approved was in all things conducted in strict
compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551.
PASSED BY THE CITY COUNCIL of the City of Beaumont on second reading this the
24th day of July, 2018.
The meeting at wh
r Becky Ames -
approved was in all things conducted in strict
compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551.
PASSED BY THE CITY COUNCIL of the City of Beaumont on final reading this the
21st day of August, 2018.
NON
ACCEPTANCE:
DSC Cartin , L
By: �^^
(Company)ccaner/Re resentative)
yor Becky Ames -