1994 AGN AUG 02 I29 - Laserfiche WebLink

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AGENDA REPORT CITY OF COLTON For City Council Meeting of August 2, 1994 July 27, 1994 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Julie Hayward Biggs, City Attor e Y// f f SUBJECT: REFUSE PERMITS/ BFI As the City Council requested at the July 19, 1994 City Council meeting, I have reviewed our files regarding Refuse Collection permits as they apply to Browning-Ferris Industries, Inc. ("BFI"). The Council has asked that the history of our current Refuse Collection ordinance be reviewed along with the status of our current refuse collection permits of record. Background In late 1989, the City requested a legal opinion from Best, Best & Krieger regarding the City's ability to terminate then existing refuse collection franchises. The inquiry arose as a result of the City's action in August of 1989 to increase City refuse hauling rates. At that time it was noted that while the City held the exclusive right to collect residential refuse, the City had to compete for commercial and industrial business. Due to regulations that applied to the City's refuse collection service and not to private haulers, the City could not effectively compete in this area and was losing virtually all new commercial and industrial business to private haulers operating under a City franchise. It was determined that the best interests of the City were not being served because the City was limited to cost intensive residential refuse collection and was squeezed out of the more lucrative commercial and business accounts, including apartment building accounts. Essentially, the City had cut-off its own potential sources of revenue by granting private franchises to independent haulers. Termination of Refuse Collection Franchises Best, Best & Krieger advised the City by memorandum dated October 10, 1989, that it could terminate existing refuse collection franchises, but that a five year notice period was required under applicable California law. Based upon that advice, City Manager Leslie Keane presented a report to the City Council on October 17, 1989. At the meeting, the City Council adopted staff's recommendations establishing a policy to disallow new refuse collection franchises and directing staff to give appropriate notice to existing refuse haulers that their franchises would be terminated in five years. Staff was also directed to return to the City Council in "November of 1993, or thereabouts," with a report and recommendations regarding