Mission Viejo Municipal Code Div. 2 Fees, Franchises, Permits and Licenses

(a) Pursuant to Division 30, Part 3, Chapter 8 of the Public Resources Code, Sections 41900 et seq., the city may levy fees upon solid waste collectors and premises for planning and program development and administration regarding solid and household hazardous waste, recyclable solid wastes and/or organic waste planning, and for access to collection service, for collection service, inspection, auditing, transfer and disposal and the planning for and response to releases and spills of solid wastes which have the characteristics of hazardous substances. Such fees may include charges for the use of disposal facilities and may include costs of preparing and implementing source reduction and recycling elements, household hazardous waste elements and integrated waste management plans. The city may determine to collect all or part of such charges on the tax roll, whether or not delinquent, the water bill, or by such other means as the council may elect.

(b) The city council, by resolution, may waive permit fees for authorized recycling agents and collectors of green wastes.

(Ord. No. 96-155, § 1, 1-8-96; Ord. No. 21-340, § 2, 7-13-21)

(a) The city council may award one or more franchises for collection of solid wastes from all or a portion of single family residential properties in the city. Any such franchise shall be granted by the city council by resolution upon a determination that the public convenience and necessity are served by the award of a franchise and following the competitive processes described in this chapter. Any such franchise granted by the city council shall not exceed a maximum term of ten years.

(b) The franchise(s) shall be granted on such terms and conditions as the city council shall establish in its sole discretion, following a competitive process. At a minimum, the competitive process will include:

(1) The preparation by the city of a "Request for Proposals" specifying the city's baseline technological requirements for integrated waste management service, including disposal, recycling, greenwaste diversion, reporting and auditing requirements.

(2) Publication in a newspaper of general circulation within the county of the existence of the request for proposals and the procedure for obtaining the request for proposals and submitting a proposal.

(3) Distribution of the request for proposals to all integrated waste management service providers who express an interest and to such other providers the city staff determines may be capable of meeting the requirements of the request for proposal.

(4) Objective review by the city staff of all proposals to determine those proposals which meet the city's technological criteria.

(5) An invitation to all proposers who have been determined by the city to have met the city's technological criteria to submit sealed, competitive itemized cost proposals.

(6) Award of the franchise to the proposer(s) who submit(s) the most competitive proposal(s).

(c) At a minimum, the franchise shall provide as follows:

(1) Residential collection rates by categories (e.g., curbside and on-premises collection).

(2) A franchise fee to be paid to the city for a residential franchise of a percentage of gross revenues.

(3) The franchisee shall be required to cooperate with city in solid waste generation studies and the preparation of waste stream audits, and to implement measures to achieve the city's solid waste diversion goals mandated by the California Integrated Waste Management Act of 1989, and to protect, defend, indemnify and hold the city harmless if those goals are not met for the waste stream covered by the franchise.

(4) Such other provisions as the city council may determine to be necessary or convenient for the protection of the interests of the citizens.

(Ord. No. 96-155, § 1, 1-8-96; Ord. No. 2000-204, § 1, 4-17-00)

(a) Following the competitive process required by this chapter, for the award of one or more franchises for collection of residential solid wastes, any franchise granted by the city council shall be granted in writing, by resolution, upon a determination that the public health, safety and well-being so require, with the following terms in addition to those specified in section 6.10.304, above:

(1) The solid waste collector shall pay the city fees to reimburse the cost of administering the residential solid waste program;

(2) Discounts for senior citizens and for single billing of multiple residential units;

(3) To the extent reasonable and feasible to protect the city from exposure to liability, as determined by the city council, the solid waste collector shall be required to protect, defend, indemnify and hold the city harmless from liability, including, specifically, liability under the Resource Conservation and Recovery Act of 1976 ("RCRA") (42 U.S.C. §§ 6901 et seq.) and the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §§ 9601 et seq., as they may be amended from time to time and all regulations implementing these acts; and

(4) The solid waste collector(s) awarded a franchise shall be required by the council to reimburse the city for the expenses of awarding the license in an amount to be determined by the city council.

(b) Each franchise, contract, license or permit for the collection of residential solid wastes issued or awarded by the city shall be in writing, expressly adopted by the city council, by resolution, as a franchise, contract, license or permit with a solid waste enterprise named in that franchise, contract, license or permit, shall meet all requirements of this chapter for indemnifications and insurance, and shall be signed by the mayor, approved as to form by the city attorney, and filed with the city clerk. No solid waste enterprise or any other person or entity shall infer the existence of any other form of franchise, contract, license or permit not meeting all the foregoing requirements.

(c) Notwithstanding any other provision of this Code, "Encroachment Permits" issued by the city engineer or the city engineer's designee do not authorize the holder to provide solid waste handling services and do not constitute a "franchise, contract, license or permit" to provide such services. No solid waste enterprise or any other person or entity shall draw any inference from the issuance of an "encroachment permit" that it constitutes any authority to provide solid waste handling services.

(Ord. No. 96-155, § 1, 1-8-96)

(a) The city council may award one or more franchises for refuse collection from commercial properties, which includes all properties other than single-family residential properties such as commercial, manufacturing, industrial, governmental, institutional, and multifamily residential properties. Such franchises shall be granted by the city council by resolution, upon a determination that the public convenience and necessity are served by the award of the franchise and following the competitive processes described in this chapter.

(b) The franchise shall be granted on such terms and conditions as the city council shall establish in its sole discretion. Any such franchise granted by the city council shall not exceed a maximum term of ten years.

(c) The franchise(s) shall be granted on such terms and conditions as the city council shall establish in its sole discretion, following the competitive process outlined in this chapter. At a minimum, the competitive process will include:

(1) The preparation by the city of a request for proposals, specifying the city's baseline technological requirements for integrated waste management service, including disposal, recycling, organic waste diversion, reporting and auditing requirements.

(2) Distribution of the request for proposals to all integrated waste management service providers who express an interest.

(3) Publication in a newspaper of general circulation within the County of Orange of the existence of the request for proposals and the procedure for obtaining the request for proposals and submitting a proposal.

(4) Objective review by the city staff of all proposals to determine those proposals which meet the city's technological criteria.

(5) An invitation to all proposers who have been determined by the city to have met the city's technological criteria to submit sealed, competitive itemized cost proposals.

(6) Award of a franchise to the proposer(s) who submit(s) the most competitive proposal(s).

(d) At a minimum, the franchise shall provide as follows:

(1) Commercial collection rates set according to different classes of commercial rates, based on volume, frequency of collection, and waste stream composition.

(2) A franchise fee for commercial franchises of a percentage of gross revenue.

(3) Commercial solid waste collectors shall be required to cooperate with the city in solid waste generation studies, waste stream audits, and implementing measures to achieve the city's source reduction, recycling, and waste stream diversion goals and to implement measures to achieve the city's solid waste diversion goals mandated by the California Integrated Waste Management Act of 1989 (Public Resources Code § 40050 et seq.); and to protect, defend, indemnify and hold the city harmless if those goals are not met for the waste stream covered by the franchise.

(Ord. No. 96-155, § 1, 1-8-96; Ord. No. 2000-204, § 2, 4-17-00; Ord. No. 21-340, § 2, 7-13-21)

(a) Following the competitive process required by this chapter, for the award of one or more franchises for collection of commercial solid wastes, and for the award of a franchise or permit for the collection of construction and demolition waste, any franchise or permit granted by the city council shall be granted in writing, by resolution, upon a determination that the public health, safety and well-being so require, with the following terms in addition to those specified in section 6.10.309, above:

(1) The solid waste collector shall be required to reimburse the city for the expenses of awarding the franchise in an amount to be determined by the city council;

(2) The solid waste collector shall be required to protect, defend, indemnify and hold the city harmless from liability, including, specifically, liability under the Resource Conservation and Recovery Act of 1976 ("RCRA") (42 U.S.C. §§ 6901 et seq.), the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §§ 9601 et seq., and the California Health and Safety Code, as they may be amended from time to time and all regulations implementing these acts;

(3) The solid waste collector shall pay the city five percent of gross revenue;

(4) The solid waste collector shall comply with the rules and regulations of the city implementing the city's source reduction, recycling, and waste stream diversion goals upon the adoption or amendment of such rules and regulations.

(b) Each franchise, contract, license or permit for the collection of commercial solid waste or construction and demolition waste issued or awarded by the city shall be in writing, expressly adopted by the city council, by resolution, as a franchise, contract, license or permit with a solid waste enterprise named in that franchise, contract, license or permit, shall meet all requirements of this chapter for indemnifications and insurance, and shall be signed by the mayor, approved as to form by the city attorney, and filed with the city clerk. No solid waste enterprise or any other person or entity shall infer the existence of any other form of franchise, contract, license or permit not meeting all the foregoing requirements.

(c) Notwithstanding any other provision of this Code, "Encroachment Permits" issued by the city engineer or the city engineer's designee do not authorize the holder to provide solid waste handling services and do not constitute a "franchise, contract, license or permit" to provide such services. No solid waste enterprise or any other person or entity shall draw any inference from any "encroachment permit" that it constitutes any authority to provide any solid waste handling services.

(Ord. No. 96-155, § 1, 1-8-96)

(a) Each solid waste collector, including each solid waste enterprise which is an applicant for or holder of an "encroachment permit" issued by the city engineer, and each solid waste enterprise asserting a right to collect solid waste pursuant to a "continuation" right based on Public Resources Code §§ 49520 et seq., but excepting each solid waste enterprise granted a written franchise by the city in accordance with the procedural requirements of 6.10.305(b) or 6.10.310.(b), shall apply for and possess a current city-issued annual solid waste collector's license or other form of city-issued solid waste collection authorization (collectively "solid waste collector's license") for the collection of solid waste, not later than December 31st, annually.

(b) Each solid waste collector shall comply with all requirements set forth in the solid waste collector's license and this chapter. These requirements include, but are not limited to, submission of an application for a solid waste collector's license, payment of an application fee, and, if a license is granted, a license fee, adherence to a schedule of fees to be charged to service recipients for specific services (as may be adopted by the city council), and meet or exceed all standards required by the city for a solid waste collector franchised by the city, including indemnification, minimum levels of insurance, cash bonds, and any other requirements that the city council may impose.

(c) In the case of a solid waste enterprise which asserts that it has a right to collect solid waste pursuant to a "continuation" right based on Public Resources Code §§ 49520 et seq., (a "Continuation Claim Hauler") the city council may approve the issuance of a temporary continuation claim hauler solid waste collector's permit, which shall expire on December 31st of the year of issuance, or the resolution of "continuation" rights, whichever occurs first.

(d) Each solid waste collector shall display a current city-issued decal on each collection vehicle operated in the city.

(e) Any person or entity, including each applicant for or holder of an "encroachment permit" issued by the city engineer, and each continuation claim hauler not otherwise expressly licensed or authorized in a written document approved by the city council, which engages in collection of commercial solid waste or construction and demolition waste in the city or which places a commercial bin or construction bin for the accumulation of solid waste in the city, or permits a commercial bin to remain in the city, without first having obtained a license issued by the city, shall be guilty of a misdemeanor punishable as provided generally for violations of the Mission Viejo Municipal Code. Each day in which a person or entity engages in the collection of commercial solid waste in the city or places a commercial bin for the accumulation of solid waste, or permits a commercial bin to remain, in the city without a franchise, permit, license or other authorization granted by the city, or fails to display a current city-issued decal, shall be a separate offense.

(Ord. No. 96-155, § 1, 1-8-96)

(a) Any franchise, permit, license, or other city-issued authorization (collectively referred to as "license") issued under this chapter is subject to revocation or suspension for cause.

(b) In addition to the grounds provided elsewhere in this chapter, the following shall constitute cause for the revocation or suspension of a solid waste collector's or authorized recycling agent's license:

(1) When the continuance of the operations of the licensee under such license shall be contrary to the public health, safety, well-being, peace, welfare or morals, or shall be found to constitute a public nuisance;

(2) If the holder of the license violates any federal or state law, the regulations of the California Integrated Waste Management Board, a local enforcement agency, this Code, or any condition of the license;

(3) If the holder of a license practices, or attempts to practice, any fraud or deceit upon the city, or makes or uses any false, fictitious or fraudulent statements or representations, or practiced any fraud or deceit or made any false, fictitious or fraudulent statements or representations in connection with the issuance or renewal of the license;

(4) If the holder of the license becomes insolvent, unable or unwilling to pay its debts, or a receiver or trustee is appointed to take over and conduct the business of the licensee whether in a receivership, reorganization or bankruptcy proceeding;

(5) If the holder of the license fails to provide or maintain in full force and effect the workers compensation, liability insurance and indemnification coverages and cash bond(s) required; or

(6) If the holder of the license violates any order or ruling of any regulatory body with respect to solid waste collected within the City of Mission Viejo, except that such order or ruling may be contested by appropriate proceedings conducted in good faith, in which case no violation shall be deemed to have occurred until a final decision adverse to the holder of the license is entered;

(Ord. No. 96-155, § 1, 1-8-96)

(a) If city's AB 939 Coordinator determines that the performance of an entity holding a franchise, permit, license or other form of city-issued authorization (collectively "licensee") may not be in conformity with reasonable industry standards which obtain in Southern California or the California Integrated Waste Management Act including, but not limited to, requirements for implementing diversion, source reduction and recycling, or any other applicable federal, state or local law or regulation, including but not limited to, the laws governing transfer, storage or disposal of solid and hazardous waste, or this chapter, the AB 939 Coordinator shall advise the holder of the license in writing of such suspected deficiencies. The AB 939 Coordinator, in any written notification of deficiencies, shall set a reasonable time within which the licensee is to correct the deficiencies and respond. Unless otherwise specified, a reasonable time for response and correction of deficiencies shall be 30 days from the receipt of such written notice by the holder of the license.

(b) At the expiration of the time set for response from the licensee, the city's AB 939 Coordinator shall review the record, including any written response from the licensee to the notice of deficiencies and resolve the matter in favor of the licensee, order remedial action to cure any breach, terminate the license, and inform the licensee in writing, of the resolution. A decision or order of the city's AB 939 Coordinator shall be final and binding unless the licensee files a "notice of appeal" with the city clerk (with copy to the city manager and city attorney) within 30 days of receipt of the decision or order of the city's AB 939 coordinator. A "notice of appeal" shall state the legal basis and all legal and factual contentions of the licensee and shall include all evidence, including affidavits, documents, photographs and videotapes. A "notice of appeal" shall not be accepted by the clerk for filing unless accompanied by a "notice of appeal filing fee" in an amount to be set by the city council, by resolution.

(c) Within 30 business days of receipt by the city clerk of a notice of appeal, the city manager shall decide the matter in favor of the licensee, order remedial actions to cure any breach, terminate forthwith the license or other form of authorization, refer the matter to the city council or refer the matter to a referee and inform the licensee, in writing, of the resolution and the basis for the resolution. The decision or order of the city manager shall be final and binding unless the licensee files a "notice of appeal to the city council" with the city clerk (and serves a copy, by mail, on the city manager and the city attorney) within 30 days of receipt of the decision or order of the city manager. A "notice of appeal to the city council" shall state the legal basis and all factual and legal contentions of the appellant and shall include all evidence, including affidavits, documents, photographs and videotapes. A "notice of appeal to the city council" shall not be accepted by the clerk for filing unless accompanied by a "notice of appeal filing fee" in an amount to be set by the city council, by resolution.

(d) If a matter is referred by the city manager to the city council, or a "notice of appeal to the city council" is timely filed, the city council may set the matter for an administrative hearing and act on the matter or refer the matter to a referee. If the city council elects to hear the matter, the city clerk shall give 14 days written notice of the time and place of the administrative hearing. At the hearing, the city council shall consider the administrative record, including the notice of deficiency, the licensee's response, the statement of resolution by the city manager and the licensee's "notice of appeal to the city council" and shall give the licensee, or its representatives and any other interested person, a reasonable opportunity to be heard. The proceedings before the council shall be an informal administrative hearing and the rules of evidence, as generally applied in judicial proceedings, shall not be applicable.

(e) Based on the administrative record, the council shall determine by resolution whether the decision or order of the city manager or AB 939 coordinator should be upheld. A tie vote of the city council shall be regarded as upholding the action of the city manager or AB 939 Coordinator. If, based upon the record, the city council determines that the performance of the licensee is in breach of any material provision of any applicable federal, state or local statute or regulation, or other cause for termination of the license, the city council, in the exercise of its sole discretion, may order remedial actions to cure the breach, or terminate forthwith the license or other form of authorization. The decision of the city council shall be final and conclusive.

(f) Termination shall become effective upon the date specified in the written notice to the holder of the franchise, permit, license or other authorization by the city. Such notice shall state the grounds for termination.

(Ord. No. 96-155, § 1, 1-8-96)

A franchise, permit, license or other form of city-granted solid waste collection authorization shall not be transferable, except as follows:

(a) A franchise, permit, license or other form of city-granted solid waste collection authorization (collectively "license") shall not be transferred, sold, sublet or assigned, nor shall any of the rights or privileges therein be leased, assigned, sold or transferred, either in whole or in part, nor shall title thereto, either legal or equitable, or any right, interest or property therein, pass to or vest in any person, either by act of the holder of the license nor by operation of law without the prior written consent of the city expressed by resolution. For purposes of this chapter, any sale, dissolution, merger, consolidation or other reorganization of the holder of the license or the sale or other transfer of an accumulative ten percent or more of the voting stock of a corporate licensee by any person, or group of persons acting in concert, who already own less than 50 percent of the voting stock of the holder of the license shall be deemed a change in control. Any attempt of the holder of the license to assign the license without the prior written consent of the city shall be void.

(b) An application for a transfer of a license shall be made in a manner prescribed by the city manager. The application shall include a license transfer application fee in an amount to be set by city by resolution of the council, to cover the anticipated cost of all reasonable and customary direct and indirect administrative expenses including consultants and attorneys, necessary to analyze the application and to reimburse city for direct and indirect expenses. In addition, the holder of the franchise, permit, license or other authorization granted by city shall reimburse the city for all reasonable consultants', attorneys' and staff costs not covered by the license transfer application fee, whether or not the city approves the application for transfer. The city's request for reimbursement shall be supported with evidence of the expenses and costs incurred. The holder of the license and the applicant for transfer shall be jointly and severally liable for the payment of any reasonable consultants', attorneys' and staff costs not covered by the license transfer application fee.

(c) The applicant for a transfer of a license shall have the burden of demonstrating that it has the operational and financial ability to meet all obligations of the franchise, license, permit or other form of city authorization.

(d) The city shall not unreasonably withhold its consent to a transfer of the license.

(e) Notwithstanding the above, the holder of a license shall be entitled to pledge, encumber, or grant any security interest in the license provided that the holder shall first notify and obtain city consent to such transaction, subject to the following conditions:

(1) Any consent so granted shall not be deemed a consent to the exercise by such pledgee, encumbrancer, or secured party of any rights of the holder under the franchise, permit, license or other authorization unless so noted by the city;

(2) Any consent so granted shall not be deemed a consent to any subsequent transfer or assignment. Any subsequent transfer or assignment shall be deemed an assignment of the franchise, permit, license or other authorization within the meaning of this section and shall be void without the prior written consent of the city expressed by resolution; and

(3) The pledgee, encumbrancer or secured party shall execute and deliver to city a written instrument, in a form satisfactory to the city attorney, expressing agreement to be bound by the provisions of the franchise, permit, license or other authorization.

(Ord. No. 96-155, § 1, 1-8-96)

(a) Each person required by this chapter to arrange for solid waste collection shall be liable for the fees and charges for such collection.

(b) To protect public health, safety and well-being and to control the spread of vectors, the owner, occupant, or other person responsible for day-to-day operation of every premises in the city shall make arrangements for collection, recycling and disposal of solid wastes generated or accumulated on those premises in accordance with the requirements of this chapter. The city may include the fees and charges (plus any interest or penalties) for solid waste and recycling on the water bill, the property tax roll for the premises, or by separate bill from the city or a solid waste collector. The fees and charges (plus any interest or penalties) on the water bill, the property tax roll for the premises, or separate bill shall be due and payable on the date stated on the water bill, the property tax roll for the premises, or separate bill. The owner and occupant of each premises in the city each shall be jointly and severally liable for the payment of the fees and charges (plus any interest or penalties) for solid waste and recycling.

(c) If solid waste and recycling service fees and charges (and any applicable interest or penalties) are not paid within 30 days of the date payment was due, solid waste and recycling service may be discontinued. Liability for service access fees continues, whether or not collection services have been discontinued.

(d) Upon written notice from the owner, occupant, or other person responsible for day-to-day operation of a premises in the city to discontinue solid waste collection services, there shall be refunded any advance collection fees.

(Ord. No. 96-155, § 1, 1-8-96)

(a) Requirements for haulers.

(1) Exclusive franchised hauler providing residential, commercial, or industrial organic waste collection services to generators within the city's boundaries shall meet the following requirements and standards as a condition of approval of a contract, agreement, or other authorization with the city to collect organic waste:

a. Through written notice to the city annually on or before March 15 identify the facilities to which they will transport organic waste including facilities for source separated recyclable materials and source separated green container organic waste.

b. Transport source separated recyclable materials and source separated green container organic waste to a facility, operation, activity, or property that recovers organic waste as defined in 14 CCR, Division 7, Chapter 12, Article 2.

c. Obtain approval from the city to haul organic waste, unless it is transporting source separated organic waste to a community composting site or lawfully transporting C&D in a manner that complies with 14 CCR Section 18989.1 and this article.

(2) Exclusive franchised hauler authorized to collect organic waste shall comply with education, equipment, signage, container labeling, container color, contamination monitoring, reporting, and other requirements contained within its franchise agreement entered into with the city.

(Ord. No. 21-340, § 2, 7-13-21)