Franchise Provisions

 

§ 50.30 Grant of Franchise and Term of Franchise

There is hereby granted to Sanitary Disposal, Inc., an Oregon corporation, the exclusive right, franchise and privilege of using the streets of the city to provide solid waste management service for commercial, industrial and residential establishments within the city. The rights, privileges and franchise herein granted shall begin on August 9, 1994, and shall be considered as a continuing five-year franchise. That is, beginning January 1 of each year, the franchise will be considered renewed for an additional five-year term, unless at least 30 days prior to January 1 of any year either party shall notify the other party in writing of intent to terminate further renewals of the franchise. Upon the giving of notice of termination, the franchisee shall have a franchise which will terminate five years from the date of the notice of termination of renewals. The Council may later extend the term or reinstate continuing renewals upon mutual agreement with the franchisee. Nothing in this section restricts the Council from suspending, modifying or revoking the franchise for cause pursuant to §50.32 of this chapter. The franchise may be transferred only upon approval of the City Council. The sale of shares, merger, consolidation, reorganization or restructuring in which the current shareholders are no longer the principal owners and managers shall be treated as a transfer of interest requiring approval.

(Ord. 1851, passed 8-8-94)

§ 50.31 Responsibility of Franchisee

(A) The franchisee shall provide collection service to any resident of the city as long as the resident pays for the service.

(B) The franchisee shall make available solid waste management service as defined in §50.01 of this chapter to customers in the city not less than once per week.

(C) The franchisee shall use proper and suitable equipment for the hauling, removal and transportation of solid waste. All equipment for transporting solid waste on public roadways within the city shall be covered, and all equipment for handling the waste material shall be equipped with a metal body, water tight and drip proof to the greatest extent practicable. All equipment shall be kept clean at all times, and sufficient equipment shall be kept on hand to properly and adequately remove all solid waste, subject to the terms of this chapter.

(D) Lids shall be replaced on all receptacles by the collector after emptying the receptacle.

(E) The franchisee shall use a disposal facility site that is approved by the Department of Environmental Quality (DEQ) and the city.

(F) The franchisee shall, without charge to the city, pick up, carry away and dispose of any and all waste materials placed by the city in suitable containers which hold solid waste generated by the city. It is understood, however, that the franchisee may impose reasonable charges to the city for extraordinary disposal activities such as the removal of demolition materials.

(G) The franchisee may subcontract with others to provide a portion of the service where the franchisee does not have the necessary equipment or service capability. A subcontract shall not relieve the franchisee of total responsibility for providing and maintaining service and from compliance with this chapter. Franchisee shall provide written notice to the city of its intention to subcontract any portion of the service and receive city approval prior to entering into an agreement. The subcontractor shall comply with all provisions of this chapter.

(H) The franchisee, in conjunction with the city, shall develop and implement an “opportunity to recycle” program that meets the mandated state recycling program requirements.

(I) The franchisee shall permit inspection by the city of the franchisee's facilities, equipment and personnel at reasonable times. The franchisee shall keep proper books and records covering his solid waste collection, removal, disposal and recycling operations, which books and records shall be open to inspection by the city at reasonable times.

(J) The franchisee shall comply with all laws relating to solid waste management service.

(K) The franchisee shall submit a certificate of public liability insurance with a 30 day notice of cancellation clause, acceptable to the city, which will cover its business operation including each vehicle operated by the franchisee. The insurance coverage shall be in amounts not less than the minimum requirements of the Oregon Tort Claims Act as now enacted or hereafter amended. The insurance shall indemnify and save the city against liability or damage which may arise or occur from an injury to persons or property as a result of the franchisee's operation of the solid waste business. The city shall be named as an additional insured.

(L) The franchise granted under this chapter shall be conditioned upon the franchisee indemnifying and saving the city against any liability or damage which may arise or occur to the city of from any injury to persons or property as a result of the franchise holder's operations under this chapter.

(M) The franchisee shall provide a performance bond in the amount of $5,000, with a surety licensed to do business in the state of Oregon, conditioned upon the full and faithful performance of this agreement and franchise and this chapter. In the event that the Council finds that the franchisee has adequate experience and otherwise meets the requirements to guarantee service, it may waive, by resolution, all or part of the bond requirements.

(Ord. 1851, passed 8-8-94) Penalty, see § 50.99

§ 50.32 Suspension, Modification or Revocation of Franchise

(A) Failure to provide necessary service or otherwise comply with the provisions of this chapter after written notice and a reasonable opportunity to comply shall be grounds for modification, suspension or revocation of the franchise.

(B) After written notice from the Council that the grounds exist, the franchisee shall have 20 days from the date of mailing of the notice in which to comply or request a public hearing before the Council.

(C) At the public hearing, the franchisee and other interested persons shall have an opportunity to present oral, written or documentary evidence to the Council.

(D) If the franchisee fails to comply within the time specified or if the Council hearing is held, with the order of the Council entered upon the basis of findings at the public hearing, the Council may suspend, modify or revoke the franchise or make the action contingent upon continued noncompliance.

(Ord. 1851, passed 8-8-94)

§ 50.33 Interruption of Franchisee's Service

The franchisee agrees, as a condition of this franchise, that whenever the City Council finds that the failure of service or threatened failure of service would result in creation of an immediate and serious health hazard or serious public nuisance, the City Council may, after a minimum of 24 hours actual notice to the franchisee and a public hearing if the franchisee requests it, provide or authorize another person to temporarily provide the service or to use and operate the land, facilities and equipment of the franchisee to provide emergency service. If a public hearing is requested by the franchisee, it may be held immediately by the City Council after compliance with the minimum notice requirements for the meetings established by the Oregon Public Meetings Law. The City Council shall return any seized property and business upon abatement of the actual or threatened interruption of service and after payment to the city for any net cost incurred in the operation of the solid waste service.

(Ord. 1851, passed 8-8-94)

§ 50.34 Termination of Service by Franchisee

The franchisee shall not terminate service to all or a portion of the customers unless:

(A) The street or road access is blocked, and there is no alternate route and provided that the franchisee shall restore service not later than 24 hours after street or road access is opened;

(B) As determined by the franchisee, excessive weather conditions render providing service unduly hazardous to persons providing service or to the public or termination is caused by accidents or casualties caused by an act of God, a public enemy or a vandal, or road access is blocked;

(C) A customer has not paid for provided service after a regular billing and after a written notice to the customer, which notice shall be sent not less than 15 days after the first regular billing;

(D) Ninety days written notice is given to the City Council and to affected customers, and written approval is obtained from the City Council; or

(E) The customer does not comply with the service standards of §50.17 of this chapter.

(Ord. 1851, passed 8-8-94)

§ 50.35 Binding Arbitration

In the event that an irreconcilable difference arises between the city and franchisee on their respective duties and responsibilities under the franchise or ordinance, an arbitration board shall be chosen, consisting of three persons, one chosen by the city, one by the franchisee and one chosen by the two appointed arbiters who must be approved by both the city and the franchisee. The arbiters shall choose a time, date and place within 30 days of appointment of the last arbiter, to hear both sides of the dispute and promptly render a decision that is binding on both the city and the franchisee. Where good cause is shown and recorded in the minutes, the time for decision may be extended as absolutely necessary. Procedure chosen may be that of the American Arbitration Association or that specified in ORS Chapter 36 for court supervised arbitration. Costs shall be split equally between the city and franchisee unless the arbitrators make an award of costs including, without limitation, arbiters' time.

(Ord. 1851, passed 8-8-94)

§ 50.36 Amendments

The city or the franchisee may propose amendments to this franchise. Proposed amendments shall be in writing and shall be delivered to the city and the franchisee. The City Council shall hold a public hearing on the proposed amendments. Franchisee shall be given at least 30 days written notice of the hearing. The City Council may, after public hearing, adopt the amendments. The franchise shall be amended upon acceptance of the amendments by franchisee.

(Ord. 1851, passed 8-8-94)