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Resolution No. 76101 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 pxz 23 24 25 26 mm RESOLUTION NO. 7610 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON TERMINATING THE NON-EXCLUSIVE SOLID WASTE FRANCHISE GRANTED TO KIRK SANFORD HAULING/GREENDAY DISPOSAL AND RECYCLING BY THE CITY OF VERNON PURSUANT TO RESOLUTION NO. 7314 WHEREAS, on April 13, 1999, the City Council of the City of Vernon adopted Resolution No. 7314 approving a Non -Exclusive Solid Waste Franchise Agreement ("Agreement") by and between the City of Vernon and Kirk Sanford Hauling/Greenday Disposal and Recycling ("Kirk [Sanford"); and WHEREAS, by letter dated July 11, 2000, Lewis Pozzebon, Director of Environmental Health, advised Kirk Sanford that it was failing to comply with the terms and conditions of the Non -Exclusive Franchise Agreement for Solid Waste Management Services dated April 1, 1999 ("Agreement") and that such failure to comply with the Agreement could result in the City proceeding with a termination of the jAgreement; and WHEREAS, Lewis Pozzebon, Director of Environmental Health, has advised the City Administrator that Kirk Sanford has violated the terms and conditions of the Agreement by failing (i) to maintain a valid health permit as required by Section 2.4 of the Agreement, (ii) to maintain adequate insurance coverage as required by Section 5.2 and (iii) to maintain a viable performance bond as required by Section 5.3 of the Agreement; and WHEREAS, on August 17, 2000, the City Clerk sent Kirk Sanford a Notice of Initiation of a Proceeding to Terminate a City of Vernon Standard Non -Exclusive Franchise Agreement for Solid Waste Management Services Pursuant to Section 12.50 of the Vernon City Code advising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Kirk Sanford that a hearing to consider the termination of the Agreement was scheduled for September 5, 2000, at approximately 5 p.m.; and WHEREAS, on September 5, 2000, a duly noticed hearing on the proposed franchise termination was conducted by the City Council of the City of Vernon, at which time Kirk Sanford was given an opportunity to be heard; and WHEREAS, the City Council has heard and considered all evidence, both written and oral, presented in support and in opposition'' to the franchise termination; and WHEREAS, Section 2.4 of the Agreement required Kirk Sanford to obtain a Health Permit annually; and WHEREAS, the issuance of a Health Permit requires the payment of a Permit Fee; and WHEREAS, Kirk Sanford failed to pay its Permit Fee; and WHEREAS, Section 5.2 of the Agreement requires the maintenance of minimum insurance coverage during the term of the Agreement; and WHEREAS, Kirk Sanford had allowed some of its insurance coverage to expire and has not provided the City with proof that it currently has insurance coverage; and WHEREAS, Section 5.3 of the Agreement requires that a $10,000 performance bond be maintained; and WHEREAS, Kirk Sanford's performance bond expired on December 31, 1999, and proof of a new bond or extension of the current bond has not been provided to the City; and WHEREAS, Section 6.1 of the Agreement provides that Kirk Sanford is in default of the Agreement if it fails to perform any of - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 the material obligations under the Agreement (Sec. 6.1.A), fails to maintain coverage (Sec. 6.1.E), or fails to secure and maintain a Health Permit (Sec. 6.1.G); and WHEREAS, pursuant to Vernon City Code Section 12.50(a), the City Council may terminate a franchise if it has been determined that the franchisee has violated or has failed to comply with any of the terms or conditions of the franchise. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY JOF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true land correct. SECTION 2: The City Council of the City of Vernon further finds that all persons have had the opportunity to be heard or to file written objections to the proposed franchise termination, and having heard and reviewed no such oral and written objections, determines that there are compelling reasons to justify the termination of the Non - Exclusive Franchise Agreement for solid waste management services approved by Resolution No. 7314 as follows: (i) Kirk Sanford failed to maintain a valid health permit as required by Section 2.4 of the Agreement; (ii) Kirk Sanford failed to maintain adequate insurance coverage as required by Section 5.2 of the Agreement; and (iii) Kirk Sanford failed to maintain a viable performance bond as required by Section 5.3 of the Agreement. SECTION 3: The City Council of the City of Vernon hereby declares the franchise granted to Kirk Sanford terminated pursuant to Section 12.50(a) of the Vernon City Code, effective September 5, 2000. - 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 4: The City Council of the City of Vernon hereby directs the City Clerk, or his designee, to send a copy of this resolution within 30 days of the conclusion of the hearing to: Kirk Sanford Hauling/Greenday Disposal and Recycling Attn: Kirk Sanford, Owner 10691 Keel Avenue Garden Grove, CA 92843 SECTION 5: The City Clerk of the City of Vernon shall certify) to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 5th day of September, 2000. LEONIS C. MAtIBURG, M yor ATTEST: BRUCE V. MALKENHORST, City Clerk - 4 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA COUNTY OF'LOS ANGELES )ss I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 7610, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, September 5, 2000, and thereafter was duly signed by the Mayor of the City of Vernon. (SEAL) Y BRUCE V. MALKENHORST, City Clerk - 5 - SUPPORTING DOCUMENTS CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro -Tern WM. 'BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL MCCORMICK Councilman BRUCE V. MALKENHORST City Administrator / City Clerk FAX (323) 581-7924 City Council City of Vernon Honorable Members: CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 August 16, 2000 EDUARDO OLIVO City Attorney FAX: (562) 927-8722 KEVIN WILSON Director of Community Services & Water FAX: (323) 588-2761 KENNETH J. DeDARIO Director of Municipal Utilities FAX: (323) 583-1983 DAVE TELFORD Fire Chief FAX: (323) 581-1385 BRUCE W. OLSON Police Chief FAX: (323) 583-5236 On April 1, 1999, Kirk Sanford Hauling/Greenday Disposal and Recycling entered into a City of Vernon Non-exclusive Franchise Agreement for Solid Waste Management Services with the City of Vernon. According to Health Department records, the company is currently out of compliance with the terms and conditions of the agreement. Despite repeated efforts by the Health Department to bring the company into compliance, the follow specific violations remain: • Failure to maintain a viable performance bond • Failure to maintain a valid health permit • Failure to maintain adequate insurance coverage Based on the above listed facts it is hereby recommended that the Kirk Sanford Hauling/Greenday Disposal and Recycling Non-exclusive Franchise Agreement be terminated. Very truly yours, 7 p L� /J Bruce V. Mal enhorst �0 City Clerk BVM/ng Memo Environmental Health To: Bruce V. Malkenhorst, City Administrator From: Lewis Pozzebon, Director Date: 08/17/00 Re: Revised Hearing Notices et40100Ae Attached are revised hearing notices regarding the hearings to consider the termination of the solid waste franchises of u / Greenday Disposal and Recycling, and Southern California Environmental, Inc. These notices cite the correct franchise agreement sections with which the companies are not in compliance and in default. The original notices, mailed out August 15, 2000, cited agreement sections that were on a sample notice form and not pertinent to these companies. I recommend that these revised notices be mailed to the companies involved so they are aware of the exact non-compliance issues for which the hearings are to be held. Attachments 4clp:sw/hearnot.rev NOTICE OF INITIATION OF A PROCEEDING TO TERMINATE A CITY OF VERNON STANDARD NON-EXCLUSIVE FRANCHISE AGREEMENT FOR SOLID WASTE MANAGEMENT SERVICES PURSUANT TO SECTION 12.50 OF THE VERNON CITY CODE 0 Revised 8/17/00 A %\ AT �h Kirk Sanford Hauling/Greenday Disposal and Recycling Attn: Kirk Sanford, Owner 10691 Keel Avenue Garden Grove, CA 92843 Please be advised that on September 5, 2000 at 5:00 P.M. or as soon thereto as possible, the City Council of the City of Vernon will hold a hearing to consider whether or not to terminate your franchise pursuant to Section 12.50 of the Vernon City Code. The hearing will be held in the City of Vernon Council Chambers at 4305 Santa Fe Avenue, Vernon, California 90058. The reason for the proposed termination of your franchise is that you have failed to comply with the terms and conditions of the franchise agreement. Specifically, you have failed to do the following: obtain a health permit as required by Section 2.4 of the agreement; maintain insurance coverage as required by Section 5.2; and keep a performance bond in force as required by Section 5.3. You are now in default under the following agreement sub -sections: 6.1 A., Failure to Perform; 6.1.E:, Failure to Maintain Coverage; and 6.1.G., Failure to Secure and Maintain Health Permit. You may present evidence in writing and through testimony of your employees and others relevant to the proposed termination. At that time, the City Council may request additional information from you. The hearing may be continued or adjourned to a stated time and place without further notice. Bruce V. Malkenhorst City Administrator i a Me o p�' VLY IMO A Environmental Health Depa ment To -,� Bruce V. Malkenhorst, City Administrator From: �" Lewis Pozzebon, Director Date: 08/08/00 Re: Termination of Non-exclusive Solid Waste Franchise Agreement for Kirk Sanford Hauling / Greenday Disposal and Recycling On April 1, 1999, Kirk Sanford Hauling / Greenday Disposal and Recycling entered into a City of Vernon Non-exclusive Franchise Agreement for Solid Waste Management Services with the City of Vernon. According to Health Department records, the company is currently out of compliance with the terms and conditions of the agreement. Despite repeated efforts by our department to bring the company into compliance, the following specific violations remain: ■ Failure to maintain a viable performance bond; ■ Failure to maintain a valid health permit; ■ Failure to maintain adequate insurance coverage. Based of these facts, I recommend that you schedule a hearing for the City Council to consider terminating Kirk Sanford Hauling / Greenday Disposal and Recycling's agreement. If you concur, Section 12.50 of the Vernon Ci Code re wires that the company be given notice of the hearing and t era ion, a ached is a sample hearing notice provided bythepity Attorneys office. The Health Department can provide cites for the any specific violations mentioned in the notice. Attachment Xc, with attachment: City Attorney, Eddie Olivo 4cl p: sw/kirksanford. memo NOTICE OF INMATION OF A PROCEEDING TO TERMINATE SOLID WASTE MANAGF.M ENT NON-EXCLUSIVE FRANCHISE PURSUANT (61 TO S};MON 12.50 OF THE VERNON CITY CODE /� � � � � P To:Kirk Sanford Hauling Greenday Disposal and Recycling i vine of franchisee KirC Sanford Owner [address of franchisee] 10691 Keel Avenue Garden Grove, CA 92843 Please be advised that on 09/05/00 at 5 : 00 p.m. or , the: �- [date] [time] as soon thereto as City Council of the City of Vernon will hold a hearing to consider whether or not to possible. tcrminatc your franchise pursuant to Section 12.50 of the Vernon City Code. The hearing will be ]field at 4305 Santa Fe Avenue, Vernon, California 90058. The reason for the proposed termination of your fi•anchise is that you have tailed , to comply with the terms and conditions of the franchise by failing to make the franchise fee payments as required by Section 11 of the Agreement. You arc now in default tinder Section 6.1.B. Since you are in default, the City may terminate your franchise. You may present evidence in writing and through testimony of your employees and others relevant to the proposed termination. At that time, the City Council may request additional inforination from you, The hearing may be continued or adjourned to a stated time and place without further notice. Bruce V. Malkenhorst City Administrator ATTACJIMh;N"I' A