Diamond Bar Municipal Code Div. 2 Franchises

(a) The city council may authorize, by franchise, a solid waste enterprise to provide solid waste collection services for customers at residential and commercial premises. In the sole discretion of the city council, the collection services may be authorized on an exclusive or nonexclusive basis, with or without competitive bidding, and may relate to any class or type of solid waste within all or any part of the territory of the city.

(b) Except as otherwise provided for in this chapter, no person shall collect and/or dispose of solid waste in the city without having first been awarded a solid waste collection franchise and entered into a franchise agreement with the city. All such collectors shall comply with all of the requirements of this chapter. The city retains the rights and power that it has under applicable laws and nothing in a franchise agreement may be construed to waive any of the city's governmental rights or police powers.

(Ord. No. 04(2021), § II(Exh. A), 12-7-21)

(a) The nature, scope of services, party obligations and restrictions, term and duration of the franchise shall be set forth in a franchise agreement entered into between a collector and city, and the agreement may also include any requirements, conditions, policies and procedures as may be mutually agreed upon by the parties to the franchise agreement and which will, in the judgment and discretion of the city council, best serve the public interest and protect the public health, safety and welfare.

(b) The city and collector may mutually agree to extend the franchise term on such terms and rates as the parties may agree. Nothing contained in this chapter shall obligate the city to extend the term of any franchise.

(Ord. No. 04(2021), § II(Exh. A), 12-7-21)

(a) If the city council finds that it is in the public interest to issue a solid waste franchise, the city council may approve a franchise and the corresponding agreement, and the applicant shall be entitled to exercise all of the franchise rights provided for therein upon its written acceptance of the terms and conditions in the agreement.

(b) No solid waste enterprise shall be awarded a franchise for the collection of solid waste unless the enterprise successfully demonstrates it has sufficient equipment available to meet the dates and times of regularly scheduled pick-ups without interruption due to equipment failure. This requirement shall be maintained throughout the term of any franchise agreement. The city may also require that collection vehicles be liquefied natural gas (LNG), compressed natural gas (CNG) vehicles, or other available low-emission technology.

(Ord. No. 04(2021), § II(Exh. A), 12-7-21)

Except as otherwise set forth in a franchise agreement, any assignment or transfer of the franchise without the city's prior written approval is ineffective, will make a solid waste franchise subject to revocation and to any other remedies available under this chapter, and will be considered to impair the city's assurance of due performance. The granting of approval for a transfer in one instance will not render unnecessary approval of any subsequent transfer. This restriction includes the sale of the franchise, relinquishment of the franchise or transfer of ownership of the franchise or the conveyance of the collector's stock to a new controlling interest. The city may, in its discretion, require a transfer fee, in an amount set forth in the franchise agreement.

(Ord. No. 04(2021), § II(Exh. A), 12-7-21)

Any franchise awarded pursuant to this chapter shall be for an initial term of not more than ten years, with the possibility of renewal at the option of the city council.

(Ord. No. 04(2021), § II(Exh. A), 12-7-21)

The city manager may enter into a temporary agreement for solid waste collection services with a different solid waste enterprise during any period of time that:

(1) A franchise has been suspended under the provisions of this chapter;

(2) A franchise has been terminated, until such time as a new franchise with a different solid waste enterprise can be negotiated and approved by the city council; or

(3) The collector refuses or is unable to collect solid waste, provided such arrangement is agreed to in the franchise agreement.

(Ord. No. 04(2021), § II(Exh. A), 12-7-21)

(a) The city may in its discretion, and as set forth in a franchise agreement, collect from a collector a franchise fee for the privilege of operating a solid waste collection service within the city, and any other fee related to the solid waste collection services allowed under law, the agreement or this Code.

(b) A franchise fee is not a payment in lieu of any tax, fee, or other assessment of general applicability.

(Ord. No. 04(2021), § II(Exh. A), 12-7-21)

(a) The city manager, without a hearing, may suspend a franchise for not more than 45 calendar days, if the manager finds that continued operation by a collector will constitute an immediate threat to the public health, safety or general welfare of the city, due to a default in the franchise agreement, or for inability to perform pursuant to the terms of the franchise agreement. The city manager shall provide any required notice of a proposed suspension and an opportunity to cure a default as may be provided for in the franchise agreement, as applicable. If the collector fails to cure or if time to cure is not required under the agreement, the city manager shall provide written notice of interim suspension to the collector setting forth the grounds for the suspension. The interim suspension will go into effect immediately upon delivery of the written notice to a collector.

(b) A collector may appeal the interim suspension to the city council, provided a written appeal is submitted to manager within five calendar days after notice of interim suspension has been sent to the collector. Appeals shall include a general statement specifying the basis for the appeal and the specific aspect of the manager's ruling being appealed.

(c) The interim suspension shall remain in effect during the processing of the appeal to the council.

(d) The city council shall hold a hearing on the appeal. Notice of such hearing shall be sent to a collector not less than ten calendar days prior to the hearing. The city council may affirm the action of the manager, refer the matter back to the manager for further consideration, or overturn the decision of the city manager. The council may terminate the interim suspension or extend the period of the interim suspension and/or may initiate proceedings for revocation of the franchise. The council shall base its action upon the standards delineated in subsection (a) above and section 8.16.110 below.

(Ord. No. 04(2021), § II(Exh. A), 12-7-21)

(a) After a hearing, the city council may revoke; modify the rights, obligations and conditions of a franchise; or impose a penalty on the collector in an amount provided for in the franchise agreement if a collector has violated any provision of this chapter, the franchise agreement or any other applicable law, ordinance, or regulation related to the collection services provided in the city.

(b) It is unlawful for any person or solid waste enterprise to operate under a franchise that has been revoked or suspended.

(Ord. No. 04(2021), § II(Exh. A), 12-7-21)

The city shall serve a written notice of the city council franchise revocation or modification hearing on a collector not less than 15 calendar days prior to such hearing.

(Ord. No. 04(2021), § II(Exh. A), 12-7-21)

The city shall serve written notice to a collector of the city council's ruling and such notification shall be made within ten calendar days of the hearing. The notice of ruling shall include, without limitation, the effective date of any revocation, modification or penalty. The decision of the city council shall be final.

(Ord. No. 04(2021), § II(Exh. A), 12-7-21)

Upon revocation of a franchise by the council, a collector shall cease operations in the city within the period of time determined by the council but in no event shall the collector operate for more than 45 calendar days after notice of revocation.

(Ord. No. 04(2021), § II(Exh. A), 12-7-21)