HomeMy WebLinkAbout35- Public Services CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Pat Malloy, Director Subject: Franchise agreements between the
City of San Bernardino and Jack's
Dept: Public Services Disposal/Curran's Rubbish Disposal
for refuse disposal in the City of San
Date: April 13, 1995 Bernardino.
I
Synopsis of Previous Council Action:
None
Recommended Motion:
Adopt resolutions.
Signa
Contact person: Pat Malloy, Director of Public Services Phone 5140
Supporting data attached: Yes Ward: All
FUNDING REQUIREMENTS: Amount: N/A
Source:(Acct. No.) N/A
(Acct. Description) N/A
Finance:
Council Notes:
Agenda Item No. �
CITY OF SAN BERN RDINO - REQUEST I R COUNCIL ACTION
STAFF REPORT
JACK'S DISPOSAL AND CURRAN'S FRANCHISE AGREEMENTS
Section 8.24.190 of the San Bernardino Municipal Code states that it is unlawful for any person,
firm or corporation to collect refuse within the City of San Bernardino without having first
secured the necessary permits or contract agreements. Certain exceptions are allowed,
specifically, any refuse business that has been collecting accounts served since August 28, 1967,
may continue to serve those accounts.
Since that time, and as a result of new annexations, private refuse haulers have been operating
within the City without the proper permits or agreements. These refuse haulers include Jack's
Disposal Incorporated, Curran's, Browning Ferris Industries (Loma Linda Disposal) and Cal's
Disposal. These four (4) haulers have been operating in violation of City Ordinances.
In late 1994 the Public Services Director began meeting with representatives of Jack's Disposal
Service Incorporated and Curran's in order to develop franchise agreements between the City and
these two (2) firms. Currently, it is estimated that these companies are servicing approximately
450 commercial accounts and 240 residential accounts within the City. This service has resulted
in a loss of revenue for the City. Because it is difficult to establish the exact dates that each of
the accounts were established by each company and because of the historical relationship between
both Jack's Disposal and Curran's, and the City of San Bernardino, staff is recommending that
these agreements be adopted.
These agreements establish a base line of customers to be served by each company as represented
on January 1, 1994. According to the terms of the agreement Jack's Disposal and Curran's will
not be allowed to solicit or secure any new or additional customers within the City of San
Bernardino unless these customers are the result of an annexation of an area currently served by
each company. As part of each agreement, there is the payment of a franchise fee to the City
of 10% of each company's gross receipts for their operations within the City. At the end of the
second year of each agreement, provisions have been made to increase the franchise fee.to the
City to 11%. The term of this agreement is for an eight (8) year period, renewable annually.
This means that both companies will be able to serve those customers within the City on a
continuous and ongoing basis unless a notice of termination is given. If such a notice of
termination is given, the company notified will'have an additional eight (8) year period in which
to operate within the City.
Staff estimates that the City will receive approximately $50,000 per year in revenue as a result
of these agreements. This figure is conservative and will more likely exceed $75,000 per year.
Staff currently estimates that the level of Jack's business within the City is approximately
$500,000 per year.
Upon execution of these agreements, staff intends to approach the other haulers within the City `
and request them to execute the same or similar agreements. This action will allow the City to
secure its operational franchise for refuse collection within City boundaries.
15.0264