Resolution No. 84551
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RESOLUTION NO. 8455
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON TERMINATING THE NON-EXCLUSIVE SOLID WASTE
FRANCHISE GRANTED TO SOUTHERN CALIFORNIA
ENVIRONMENTAL, INC. BY THE CITY OF VERNON PURSUANT
TO RESOLUTION NO. 7494
WHEREAS, on February 15, 2000, the City Council of the City
of Vernon adopted Resolution No. 7494 approving a Non -Exclusive
Franchise Agreement for Solid Waste Management Services dated on or
about February 15, 2000, ("Agreement") by and between the City of
Vernon and Southern California Environmental, Inc. ("SoCal
Environmental" or "Franchisee"); and
WHEREAS, Section 3.2 of the Agreement requires the Franchisee
to make timely franchise fee payments; and
WHEREAS, Section 4.4 of the Agreement requires the Franchisee
to submit quarterly reports accompanying its franchise fee payment;
and;
WHEREAS, Section 5.3 of the Agreement requires the Franchisee
to maintain a performance bond during the entire term of the Agreement;
and
WHEREAS, SoCal Environmental failed to provide a valid
faithful performance bond in accordance with the Agreement after being
advised in writing of its failure to comply; and
WHEREAS, by letter dated March 8, 2004, SoCal Environmental
was notified of an administrative hearing to be held on March 23, 2004,
and after failing to appear, was notified by letter dated March 24,
2004, of the City's intent to seek termination of the Agreement; and
WHEREAS, by letter dated May 19, 2004, Bruce V. Malkenhorst,
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City Administrator, notified SoCal Environmental of the City's intent
to terminate the Agreement pursuant to Section 12.50 of the Vernon City
Code and that a hearing to consider the termination was scheduled for
June 2, 2004, at approximately 5 p.m.; and
WHEREAS, the written notice to SoCal Environmental cited the
reasons for the proposed termination as failure to perform, failure to
make timely franchise fee payments and failure to submit timely reports
pursuant to Sections 6.1.A, 6.1.B and 6.1.0 of the Agreement,
respectively; and
WHEREAS, Section 6.1 of the Agreement provides that SoCal
Environmental is in default of the Agreement if it failed to perform
any material obligation under the Agreement (Sec. 6.1.A), failed to
make timely franchise fee payments within three (3) months of the last
day of the month following the calendar quarter for which they are due
as required by the Agreement (Sec. 6.1.B) and failed to submit timely
quarterly reports within three (3) months of the last day of the month
following the calendar quarter for which they are due as required by
the Agreement (Sec. 6.1.C); and
WHEREAS, Section 6.2 of the Agreement provides that upon an
event of default by SoCal Environmental, the City may terminate the
Agreement; and
WHEREAS, City staff have advised that, under Section 6.1 of
the Agreement, SoCal Environmental is in default of the Agreement as it
failed to maintain a performance bond; and
WHEREAS, by letter dated May 25, 2004, Bruce V.
Malkenhorst, City Administrator/City Clerk, recommended that the Non -
Exclusive Franchise Agreement for Solid Waste Management Services with
Southern California Environmental, Inc. be terminated; and
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1 WHEREAS, on June 2, 2004, a duly noticed hearing on the
2 proposed franchise termination was conducted by the City Council of the
3 City of Vernon, at which time SoCal Environmental was given an
4 opportunity to be heard; and
5 WHEREAS, the City Council heard and considered all evidence,
6 both written and oral, presented in support and in opposition to SoCal
7 Environmental's franchise termination.
8 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
9 CITY OF VERNON AS FOLLOWS:
10 SECTION 1: The City Council of the City of Vernon hereby
11 finds and determines that the recitals contained hereinabove are true
12 and correct.
13 SECTION 2: The City Council of the City of Vernon further
14 finds that all persons have had the opportunity to be heard or to file
15 written objections to the proposed franchise termination, and having
16 not heard or reviewed any such oral and written objections, determines
17 that there are compelling reasons to justify the termination of the
18 Non -Exclusive Franchise Agreement for Solid Waste Management Services
19 approved by Resolution No. 7494 as follows:
20 (a) SoCal Environmental failed to submit timely reports;
21 (b) SoCal Environmental failed to submit timely franchise
22 fee payments;
23 (c) SoCal Environmental failed to provide a valid faithful
24 performance bond; and
25 (D) SoCal Environmental is in default of the Agreement
26 pursuant to Section 6.1 of the Agreement.
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SECTION 3: The franchise granted to SoCal Environmental is
hereby declared terminated pursuant to Section 12.50(b) of the Vernon
City Code, effective June 2, 2004.
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:
Southern California Environmental, Inc.
Attn: Mark Sahagian
25422 Trabuco Road, #105-409
Lake Forest, CA 92630
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.
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 2nd day of June, 2004.
ATTEST:
BRUCE V. MALKENHORST, City Clerk
•,LEONIS C. MALB RG, Ma or
- 4 -
1 STATE OF CALIFORNIA )
2 ) ss
COUNTY OF LOS ANGELES )
3
4 I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
5 hereby certify that the foregoing Resolution, being Resolution No.
6 8455, was duly adopted by the City Council of the City of Vernon at a
7 regular meeting of the City Council duly held on Wednesday, June 2,
8 2004, and thereafter was duly signed by the Mayor of the City of
9 Vernon.
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BRUCE V. MALKENHORST, City Clerk
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SUPPORTING
DOCUMENTS
CITY 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
Chief Executive Officer of
Light & Power
FAX: (323) 826-1438
City Council
City of Vernon
Honorable Members:
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
May 25, 2004
ERIC T. FRESCH
City Attorney
FAX: (323) 826-1439
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 826-1435
STEVEN E. PARKER
Fire Chief
FAX: (323) 826-1407
BRUCE W. OLSON
Police Chief
FAX: (323) 826-1481
LEWIS J. POZZEBON
Director of Environmental Health
FAX: (328-4320
L212. do
On February 15, 2000, Southern California Environmental, Inc., entered
into a Non -Exclusive Franchise Agreement for Solid Waste Management
Services with the City of Vernon. The Health Department's records
indicate that Southern California Environmental, Inc., continues to be
out of compliance with the terms and conditions of the agreement on
the following items:
• Failure to maintain a variable performance bond
• Failure to submit timely reports
• Failure to submit franchise fee payments
This has been reviewed by the City Attorney and it is hereby
recommended that the Non -Exclusive Solid Waste Franchise Agreement
with Southern California Environmental, Inc., be terminated.
Very truly yours,
'0001< _
Bruce V. Malkenhorst
City Administrator/City Clerk
BVM/gm
J
Me 0-
Environmental Heal
To: Bruce V. Malkenhorst, City Administrator
From: Lewis Pozzebon, Director
Date: 5/18/2004
Re: Termination of Non-exclusive Solid Waste Franchise Agreement for
Southern California Environmental, Inc.
On February 15, 2000, Southern California Environmental, Inc. 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 submit timely reports;
■ Failure to submit franchise fee payments.
Based of these facts, I recommend that you schedule a hearing for the City Council
to consider terminating Southern California Environmental, Inc.'s agreement. If you
concur, Section 12.50 of the Vernon City Code requires that the company be given
notice of the hearing and the hearing must be scheduled not less than ten (10) nor
more than thirty (30) days from the date of the notice. For your consideration,
attached is a hearing notice modeled on one provided by the City Attorneys office.
The Health Department can provide cites for the any speck violations mentioned in
the notice, and will post notices of the public hearing if it is placed on a City Council
agenda.
Attachment
Xc, with attachment: City Attorney, Eric Fresch
4cdd: sw/socalenv. memo
Memo
To: Nelly Giron
Environmental Health
From: Dan Downing, Chief Deputy Director
Date: May 20, 2004
Re: Termination of Non-exclusive Sold Waste Agreement with Southern Califomia
Environmental, Inc.
Attached are the public hearing notice for the subject termination and the affidavit of
posting for the public hearing notice.
Cc: Eric Fresch, City Attorney (with attachments)
4cdd: mydocs/sw/SoCalMemo
City of Vernon
4305 Santa Fe Avenue
Vernon, California 90058
(323) 583-8811
NOTICE OF PUBLIC HEARING TO CONSIDER THE TERMINATION
OF A CITY OF VERNON STANDARD NON-EXCLUSIVE FRANCHISE
AGREEMENT FOR SOLID WASTE MANAGEMENT SERVICES FOR
SOUTHERN CALIFORNIA ENVIRONMENTAL, INC.
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, June 2, 2004 at 5:00 p.m. or as soon
thereafter as the matter may be heard.
PURPOSE: To consider the termination of a City of Vernon Standard
Non-exclusive Franchise Agreement for Solid Waste
Management Services for Southern California
Environmental, Inc.
Supporting evidence will be available for public review during normal
business hours in the Vernon Health Department, located at 4305 S. Santa Fe Ave.,
Vernon, California, from May 20, 2004 to June 2, 2004.
The public is also invited to submit written comments prior to the hearing.
You may submit written comments on the proposed resolution until 5:00 p.m. on
June 2, 2004. Comments received after that date may not receive full
consideration.
Dated: May 20, 2004
9
fr
Lewis Pozzebon
Health Officer
Date: S j Z- "1_->
4cdd:mydocs/SotWste/SoCa]HearNot
AFFIDAVIT OF POSTING
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF VERNON )
I, Lewis Pozzebon, Director of Environmental Health of the City of Vernon, do hereby
certify that I did, on the 20th day of May 2004 at 9:30 AM, post three (3) copies of -
NOTICE OF PUBLIC HEARING, to be held on June 2, 2004, (see attached copy)
considering a Resolution to accept the termination of a City of Vernon Standard Non-
exclusive Franchise Agreement for Solid Waste Management Services for Southern
California Environmental, Inc.
One in each of the following places to wit: At the northwest corner of 38th Street and
Santa Fe Avenue; the northeast corner of Leonis Boulevard and Pacific Boulevard; and on the
bulletin board in the lobby of the City Hall of the City of Vernon, all in said City, there being no
newspaper of general circulati d and published in the City of Vernon.
SIGNED: DATED: 5 Z
Lewis Pozzebon _ rector, Environtnental Health
State of California )
) ss.
County of Los Angeles )
On May 20, 2004 before me, Marisol Trujillo
Notary Public, personally appeared Lewis Pozzebon, personally known to me (or known to me
on the basis of satisfactory evidence) to be the person whose name is subscribed to the within
instrument and acknowledged to me that he executed the same in his authorized capacity, and
that by his signature on the instrument the person, or the entity upon which the person acted,
executed the instrument.
WITNESS my hand and official seal
4cdd:mydocs/SolWast/SoCalAffidavit
MARISOL TRUJILLOO
��"n • Comm. A 1352112 Ilk
Vl NOTARY PUBLIC-CALIFORNIA V+
Los Angeles County
My Comm. Expires Aprili8,2008 "s