Resolution No. 79401
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RESOLUTION NO. 7940
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON TERMINATING THE NON-EXCLUSIVE SOLID WASTE
FRANCHISE GRANTED TO P.J.B. DISPOSAL CO. 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 Franchise
Agreement for Solid Waste Management Services dated on or about
April 13, 1999, ("Agreement") by and between the City of Vernon and
P.J.B. Disposal Co. ("PJB Disposal"); and
WHEREAS, on or about April 9, 1999, Peter James Bresson, the
owner of PBJ Disposal, submitted to the City, in lieu of a performance
bond for compliance with requirements of Section 5.3 of the Agreement,
a five (5) year Time Certificate of Deposit (No. A10101) with Sanwa
Bank (now known as United California Bank) for the sum of Ten Thousand
Dollars.and No Cents ($10,000.00); and
WHEREAS, the City of Vernon has retained the services of MSW
Consultants for services relating to franchise fees and compliance with
the Integrated Waste Management Act and its amendments (AB 939); and
WHEREAS, by letter dated July 28, 2001, MSW Consultants
notified the City that an audit had been conducted and that PJB
Disposal owed the City franchise fees for the year 2000 in the sum of
Six Hundred Fifty -Six Dollars and Eleven Cents ($656.11); and
WHEREAS, by letter dated August 1, 2001, Lewis Pozzebon,
Director of Environmental Health, notified PJB Disposal of delinquent
franchise fees for the year 2000 in the sum of Six Hundred Fifty -Six
Dollars and Eleven Cents ($656.11) plus a penalty for a total fee of
Seven Hundred Twenty -One Dollars and Seventy -Three Cents ($721.73), to
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be payable within 30 days; and
WHEREAS, Section 3.1 of the Agreement requires the payment of
franchise fees; and
WHEREAS, Section 3.2 of the Agreement specifies that "If the
franchise fee payment is not received by the City on or before last day
of any month following the end of a calendar quarter, Franchisee shall
pay to the City a late payment fee in an amount equal to ten percent
(100) of the amount owing for that quarter. Franchisee shall pay an
additional ten percent (100) owing on any unpaid balance for each month
following the initial thirty (30) day period the franchise fee remains
unpaid;" and
WHEREAS, on or about October 9, 2001, City staff were advised
that PBJ Disposal had filed for bankruptcy and its accounts sold to
other solid waste companies; and
WHEREAS, City staff have ascertained that there is no
activity at PJB Disposal's facility located at 1514 Orange Street in
Alhambra; and
WHEREAS, on November 8, 2001, Lewis Pozzebon, Director of
Environmental Health, sent a Notice of Delinquent Solid Waste Franchise
Report for the Third Quarter (July -September) of 2001; and
WHEREAS, by certified letter dated January 24, 2002, Lewis
Pozzebon, Director of Environmental Health, advised PJB Disposal that:
• it was not in compliance with the terms of its Agreement,
specifically Sections 3.1 and 4.4 relating to the
submittal of timely quarterly reports and franchise fees;
• it had until February 7, 2002 to comply with the City's
directive to pay the required fees and file its reports;
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1 • its failure to comply with the City's directive might
2 result in a revocation of its franchise; and
3 • the City might seek security through the Certificate of
4 Deposit; and
5 WHEREAS, delivery of the certified letter was confirmed on
6 February 1, 2002; and
7 WHEREAS, by letter dated March 7, 2002, Bruce V. Malkenhorst,
8 City Administrator, notified PJB Disposal of the City's intent to
9 terminate the franchise agreement pursuant to Section 12.50 of the
10 Vernon City Code and that a hearing to consider the termination was
11 scheduled for April 3, 2002, at approximately 5 p.m.; and
12 WHEREAS, the written notice to PBJ Disposal cited the reasons
13 for the proposed termination as failure to make timely submissions of
14 franchise fee payments and quarterly reports pursuant to Sections 3.2
15 and 4.4 of the Agreement; and
16 WHEREAS, Section 6.1 of the Agreement provides that PJB
17 Disposal is in default of the Agreement if it fails to perform (Sec.
18 6.1.A), fails to make timely franchise fee payments (Sec. 6.1.B), or
19 fails to submit timely reports (Sec. 6.1.C); and
20 WHEREAS, Section 6.2 of the Agreement provides that upon an
21 event of default by PJB Disposal, the City may terminate the Agreement;
22 and
23 WHEREAS, City staff have advised that, under Section 6.1 of
24 the Agreement, PJB Disposal is in default of the Agreement as it has
25 not paid the required franchise fee payments for 2000 and 2001 nor has
26 it submitted the required quarterly reports for the third and fourth
27 quarters of 2001; and
28 WHEREAS, by letter dated March 27, 2002, Bruce V.
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Malkenhorst, City Administrator/City Clerk, has recommended that the
Non -Exclusive Franchise Agreement for Solid Waste Management Services
with PJB Disposal be terminated and approval be granted to secure fees
owing for the years 2000 and 2001 from the Certificate of Deposit; and
WHEREAS, the Director of Environmental Health has determined
that the total amount due and owing by PJB Disposal to the City is
Three Thousand One Hundred Twenty -Seven Dollars and Sixty -Four Cents
($3,127.64) for 2000 and 2001; and
WHEREAS, on April 3, 2002, a duly noticed hearing on the
proposed franchise termination was conducted by the City Council of the
City of Vernon, at which time PJB Disposal 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 PJB Disposal's franchise termination.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
Ifinds 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:
(a) PJB Disposal has failed to pay the required franchise
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fee payments and applicable late fees for 2000 and 2001 and as of
March 1, 2002, the total sum of Three Thousand One Hundred Twenty -Seven
Dollars and Sixty -Four Cents ($3,127.64) is due and owing;
(b) PJB Disposal has failed to submit timely quarterly
reports for the third and fourth quarters of 2001;
(c) PJB Disposal has failed to promptly and faithfully
perform its obligations under the Agreement; and
(d) PJB Disposal is in default of the Agreement pursuant
to Section 6.1 of the Agreement.
SECTION 3: The franchise granted to PJB Disposal is hereby
declared terminated pursuant to Section 12.50(b) of the Vernon City
Code, effective April 3, 2002.
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:
P.J.B. Disposal Co.
Attn: Peter James Bresson, Owner
P.O. Box 105
Monterey Park, CA 91754
SECTION 5: The City Council of the City of Vernon hereby
hereby authorizes the City Administrator to execute any and all
documents necessary for the purpose of securing the Certificate of
Deposit funds for, and on behalf of, the City of Vernon.
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SECTION 6: 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 3rd day of April, 2002.
ATTEST:
IBRUCE V. MALKENHORST, City Clerk
r
EONIS C. MAL URG, Ma r
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution No.
7940, was duly adopted by the City Council of the City of Vernon at a
regular meeting of the City Council duly held on Wednesday, April 3,
2002, and thereafter was duly signed by the Mayor of the City of
Vernon.
(SEAL)
BRUCE V. MALKENHORST, City Clerk
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SUPPORTING
DOCUMENTS
CITY. COUICIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro-Tem
WM. `BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator/City Clerk
FAX (323) 826-1438
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
April 17, 2002
P.J.B. Disposal Co.
Attn: Peter James Bresson, Owner
P.O. Box 105
Monterey Park, CA 91754
Re: Resolution No. 7940
Non -Exclusive Solid Waste Franchise
Dear Mr. Bresson:
EDUARDO OLIVO
City Attorney
FAX: (562) 869-1883
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 826-1435
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 826-1425
STEVEN E. PARKER
Fire Chief
FAX: (323) 826-1407
BRUCE W. OLSON
Police Chief
FAX: (323) 826-1481
Transmitted herewith is a duplicate original copy of the above
referenced approved by the Vernon City Council on April 3, 2002.
If you have any questions regarding this matter, please call Mr. Lewis
Pozzebon at (323) 583-8811 ext. 229.
Very truly yours,
444
lly iron
Assistant Chief Deputy City Clerk
NG:mt
CC: Lewis Pozzebon
Martha Valenzuela
Resolution No. 7940
CIT'i COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro-Tem
WM. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator/City Clerk
FAX (323) 826-1438
City Council
City of Vernon
Honorable Members:
EDUARDO OLIVO
City Attorney
FAX: (562) 869-1883
KEVIN WILSON
D' e or of Community Services & Water
[:;
FAX: (323) 826-1435
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 826-1425
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
March 27, 2002
STEVEN E. PARKER
Fire Chief
FAX: (323) 826-1407
BRUCE W. OLSON
Police Chief
FAX: (323) 826-1481
On April 13, 1999, PJB Disposal Co., (PJB) entered into a Non-
exclusive Franchise Agreement for Solid Waste Management Services with
the City of Vernon. On October 9, 2001, the department was informed
that PJB had filed bankruptcy. Health Department records indicate
that PJB has failed to provide:
• Franchise fees for the years 2000 and 2001, Section 3.2.
• Quarterly reports for the 3rd and 4th quarter of 2001, Section 4.4.
This has been reviewed by the City Attorney and it is hereby
recommended that the Non-exclusive Franchise Agreement with PJB
Disposal Co., be terminated and approval be granted to the department
to secure fees from the Certificate of Deposit.
Very truly yours,
Bruce V. Malkenhorst
City Administrator/City Clerk
BVM/gm
Memo
(17o: Bruce V. Malkenhorst, City Administrator
From: Lewis Pozzebon, Director, Environmental Health �c
Date: 3/6/2002
Re: Report on PJB Disposal Co. and Recommendation to set a Public Hearing for
Termination of Solid Waste Franchise Agreement
PJB Disposal Co. (PJB) entered into a non-exclusive franchise agreement with the City of
Vernon on April 13, 1999. On August 1, 2001 our department notified PJB by letter that,
according to an audit conducted by the City's consultant, MSW Consultants, PJB owed the
City $721.73 in franchise fees for Year 2000. On October 9, 2001 our department received
information that PJB had entered bankruptcy. We have also been advised that PJB
accounts have been sold to other solid waste companies. Dave Davis, MSW Consultants,
has attempted to contact PJB on behalf of the City, including visiting the former PJB facility
in Alhambra. Mr. Davis has had no success reaching Peter Bresson, PJB's owner, and
reported that there is no activity at the facility.
On November 8, 2001, we sent a Notice of Delinquent Solid Waste Franchise Report for the
Third Quarter (July — September) 2001. On January 24, 20024 certified mail letter was sent
to PJB which included a final deadline of February 7, 2002 for compliance. A U.S. Postal
Service certified mail receipt card was returned to our office confirming delivery of the letter
on February 1, 2002.
Section 3.1 of the Solid Waste Non-exclusive Franchise Agreement requires the payment of
franchise fees. Section 4.4 of the Agreement requires the submission of quarterly reports.
To date we have not received the required franchise fees for 2000, franchise fees or
quarterly reports for the 3rd and 0 quarters of 2001. Based on the facts above, I am
recommending that a public hearing be set for the regular City Council Meeting scheduled
for April 3, 2002 to consider the termination of the Solid Waste Management Non-exclusive
Franchise Agreement with PJB Disposal Co. and approval of the City Council to secure fees
due to the City from the Certificate of Deposit being held by United California Bank.
I have prepared a notice to PJB Disposal Co. and a notice of public hearing for your
signatures (attached).
Please let me know if further action is required.
Attachments
Xc: City Attorney
1/mydoGSw/memosKranchise/terminatm cound pub
' 2 �
NOTICE OF PUBLIC HEARING
The City of Vernon will conduct a Public Hearing which you may attend.
PLACE: Vernon City Hall
City Council Chambers
4305 S. Santa Fe Avenue
Vernon, CA 90058
DATE & TIME: Wednesday, April 3, 2002, at 5:00 p.m. or as soon thereafter as the matter
maybe heard.
PURPOSE: To consider the termination of the Non -Exclusive Franchise for Solid
Waste Management Services Agreement between the City of Vernon and
PJB Disposal Co. dated April 13, 1999.
Bruce V. Malkenhorst
City Clerk
Date:
1/mydocJsw/fiwwhise/public notice pjb
CITY COINCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro—Tem
WM. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator / City Clerk
FAX (323) 826-1438
e
F
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
March 7, 2002
Mr. Peter J. Bresson
PJB Disposal Co.
P.O. Box 105
Monterey Park, CA 91754
EDUARDO OLIVO
City Attorney
FAX: (562) 9274722
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 826-1435
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 826-1425
STEVEN E. PARKER
Fire Chief
FAX: (323) 826-1407
BRUCE W. OLSON
Police Chief
FAX: (323)826-1481
Subject`. Notice of Initiation of a Proceeding to Terminate Non-exclusive Franchise Agreement
for Solid Waste Management Services Pursuant to Section 12.50 of the Vernon City Code
Dear Mr. Bresson:
Please be advised that on Wednesday, April 3, 2002 at 5:00 p.m., 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 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 by failing: to make timely submissions of
franchise fee payments and quarterly reports pursuant to Sections 3.2 and 4.4. You are now in
default under Sections 6.1.13, and 6.1.C. 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
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/mydoc/sw/city council hearing letter pjb
c
Memo
Bruce V. Malkenhorst, City Administrator
rom: Lewis Pozzebon, Director, Environmental Health
Date: 3/28/2002
Re: Outstanding Fees Due From PJB Disposal Co. / Peter James Bresson
The following is an accounting of the Solid Waste Non-exclusive Franchise fees due to the
City of Vernon from PJB Disposal Co. as of March 1, 2002:
Underpaid Franchise Fees for Year 2000 $656.11
Late fees @ 10% per month since Aug. 2001 (70 %) $459.28
Subtotal $1115.39
Third Quarter, 2001 Franchise Fee
Late fees @ 10% per month since Nov. 2001 (50%)
Subtotal
TOTAL
0 Page 1
$1341.50
670.75
$2012.25
$3127.64