Chapter 12.63 — SOLID WASTE MANAGEMENT4

The City Council finds and determines that it is necessary and appropriate to require those persons providing commercial solid waste handling services within the jurisdictional boundaries of the City to obtain a franchise because:

A. The City has the authority to enact ordinances regulating the collection of trash and garbage
within its corporate limits, including the right to gather and collect garbage itself, to grant
exclusive or nonexclusive franchises to collect solid waste, to regulate the activities of
private collectors, or any combination of these options.

B. It is necessary to regulate the collection of solid waste and to encourage recycling of solid
waste materials to meet the requirements of the California Integrated Waste Management
Act of 1989, California Public Resources Code, Division 30, Section 40000 et seq.

C. The collection of solid waste generated within the City is a vital public service and the
storage, accumulation, collection and disposal of solid waste and recyclables is a matter of
great public concern. Improper solid waste management would subject the City to potential
liability, damages and penalties, and may create a public nuisance, air pollution, fire
hazard, rat and insect infestation and other problems affecting the public health, safety and
welfare.

D. The use of heavily laden vehicles to collect solid waste and other activities related to the
collection of solid waste adversely impacts public streets, sidewalks, curbs and gutters and
other infrastructure that must be repaired, maintained and replaced.

E. The placement of commercial refuse containers on public streets and rights-of-way creates
a potential for property damage, and personal injury as well as City liability.

F. The disposal of solid waste can result in potential liability under Federal and State
environmental laws.

G. Nonexclusive franchises for the use of public streets to provide commercial solid waste
handling services are necessary to protect the members of the public, private property and
avoid City liability. Nonexclusive franchises will promote public health, safety and welfare
among other things promoting permanence and stability among those businesses wishing
to provide such service and accountability to the City for compliance with current and
future State mandates.
(Ord. 2007-5 § 1 (part), 2007; Ord. 2023-22 § 568, 2023)

For purposes of this chapter, certain terms are defined as follows:

“Back haul” means generating and transporting organic waste or retail waste to a destination owned and operated by the generator using the generator' s own employees and equipment, or as otherwise defined in 14 CCR Section 18982(a)( 66).

4. Prior ordinance history: Ords. 95-63, 95-67 and 2002-5.

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City of Newport Beach, CA § 12.63.020 NEWPORT BEACH CODE § 12.63.020

“Back hauler” means a person that back hauls.

“Collect” or “collection” means the operation of gathering together and/ or transporting by means of a motor vehicle, trailer, or other means, any solid waste or recyclable material.

“Commercial premises” means all occupied real property in the City including, without limitation, multi-unit residential developments (including housing projects containing or consisting of four or more attached units, whether apartment houses, condominiums, or mixed- use projects, mixed use condominiums and rental housing, and which use commercial solid waste containers), wholesale or retail establishments, restaurants, other food establishments, bars, stores, shops, offices, mechanized manufacturing facilities, repair, research and development or professional services, sports or recreational facilities, industrial facilities, and construction and demolition sites; but shall not include property occupied by governmental agencies which do not consent to their inclusion, and residential premises which receive solid waste collection services using residential solid waste containers.

“Commercial solid waste container” means any container for the temporary accumulation and collection of solid waste.

“Commercial solid waste handling services” means the collection, transportation, storage, transfer, disposal or processing of solid waste by private solid waste enterprises, and shall include, without limitation, the placement of commercial solid waste containers on public property.

“Container” means any vessel, tank, receptacle, box, bin, or cart used or intended to be used in the storage or collection of recyclable materials or in the process of recycling, or for the purpose of holding solid waste for storage or collection.

“Director” shall mean the Director of the Municipal Operations Department.

“Franchise fee” means the fee or assessment imposed by the City on the franchisee, which among other things, is intended to offset the City’s expenses related to the administration of the franchise agreement, the integrated waste management program, the maintenance and implementation of the City’s source reduction and recycling element, compliance with the California Integrated Waste Management Act, California Public Resources Code, Division 30, Section 40000 et seq., to compensate the City for damages to its streets, sidewalks, curbs and gutters and other infrastructure resulting from the franchisee’s exercise of its rights under the franchise, reporting requirements and other related expenses.

“Franchisee” means any person granted a franchise by the City Council pursuant to Article XIII of the City Charter and this chapter.

“Garbage” means kitchen and table wastes, and animal or vegetable wastes that result from the storage, preparation, cooking or handling of food or edible items.

“Green waste” means any debris that is composed of organic material or plantlike matter which is a result of seasonal variations, landscape or gardening activities. This waste is to include, without limitation, grass clippings, leaves, shrubs, trees, branches, stumps, flowers, plant stalks and wood.

“Gross receipts” means all money, whether paid by cash, check, debit or credit, or other consideration collected from customers by franchisee that relates in any way to commercial solid waste handling services, whether the commercial solid waste handling services occur wholly or partially within the City, including, but not limited to, collection, removal, and/or disposal of garbage, solid waste, construction and demolition debris, green waste, industrial waste, roofing

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City of Newport Beach, CA § 12.63.020 VEHICLES AND TRAFFIC § 12.63.020

materials, trash, litter, refuse and/or rubbish, as well as fuel surcharges. Gross receipts shall also include all money received by any person other than the franchisee, where the money was paid to the person to avoid the franchisee’s obligations under this chapter and/or the franchise. Gross receipts shall not include, or if included there shall be deducted (but only to the extent they have been included), the following: (1) if any sales taxes are levied on the franchisee’s commercial solid waste handling services in the City, the amount of State sales taxes collected in connection with the commercial solid waste handling services in the City and remitted to the State pursuant to State law; (2) the amount of documented bad debt write-offs due to uncollectible accounts for commercial solid waste handling services in the City, not to exceed three percent of gross receipts; and (3) revenues collected for commercial solid waste handling services provided on behalf of the City through a written contract.

“Hazardous waste” means any substance or waste materials or mixture of wastes defined as “hazardous,” a “hazardous substance” or “hazardous waste” pursuant to California Public Resources Code section 40141, the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. Section 6901 et seq., the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), 42 U.S.C. Section 9601 et seq., the Carpenter-Presley-Tanner Hazardous Substance Account Act (“HSAA”), codified at California Health and Safety Code Section 25300 et seq.; and all future amendments to any of them, or as defined by the Environmental Protection Agency, the California Legislature, the California Integrated Waste Management Board, the Department of Toxic Substances Control or other agency of the United States Government or the State of California empowered by law to classify or designate waste as hazardous. If there is a conflict in the definitions employed by two or more agencies having jurisdiction over hazardous or solid waste, the term “hazardous substance” or “hazardous waste” shall be construed to have the broader, more encompassing definition.

“Industrial waste” means solid waste originating from mechanized manufacturing facilities, factories, refineries, construction and demolition projects, publicly operated treatment works, or solid waste placed in commercial solid waste containers excluding hazardous waste.

“Permitted processing facility” means a processing facility for diverted materials that holds all required Federal, State, and local permits and is operating in accordance with all permit requirements. A permitted processing facility includes, but is not limited to, materials recovery facilities ( clean MRFs), mixed waste processing materials recovery facilities ( dirty MRFs), composting facilities, anaerobic digestion facilities, publicly owned treatment works that accept food scraps and/ or bioengineered feedstock for digestion, and processing facilities for construction and demolition debris.

“Recycling” means the process of collecting, sorting, cleansing, treating, and reconstituting materials that would otherwise become solid waste, and returning them to the economic mainstream in the form of raw material for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace.

“Recycling requirements” means the obligations imposed by or upon the City pursuant to State law, ordinance, resolution, policy, plan or program relative to recycling all, or a portion, of the solid waste stream generated within the City including, without limitation, State mandates to recycle fifty (50) percent of the solid waste generated within the City’s jurisdiction and the provision of City-approved recycling services to all customers.

“Rubbish” means and includes without limitation the following items: all waste and refuse capable of burning readily, including straw, packing materials, leather, rubber, clothing, bedding, books, rags and all other similar articles which will burn by contact with flames or ordinary temperature; ashes, crockery, china, pottery, metal wire and other similar materials which are

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City of Newport Beach, CA § 12.63.020 NEWPORT BEACH CODE § 12.63.050

rejected by the owner or producer thereof.

“Self hauler” means a person that transports solid waste they have generated to a permitted processing facility. Self hauler also includes a person who back hauls waste, or as otherwise defined in 14 CCR Section 18982(a)(66).

“Solid waste” means all putrescible and nonputrescible solid and semisolid wastes, generated in or upon, related to the occupancy of, remaining in or emanating from residential, commercial, and/or industrial premises, including, but not limited to, garbage, trash, refuse, paper, rubbish, ashes, industrial waste, green waste, demolition and construction wastes, discarded home and industrial appliances, manure, vegetable or animal solid or semisolid wastes, and other solid and semisolid wastes. This excludes liquid wastes, abandoned vehicles and hazardous, biohazardous and biomedical wastes.

“Solid waste enterprise” means any individual, firm, partnership, corporation, joint venture, limited liability company or other business entity providing commercial solid waste handling services in the City.

“Small hauler” means a property owner or lessee that transports a de minimis amount, which is defined as not greater than 50 cubic feet, of solid waste generated from a home or commercial renovation or construction project that does not require a building permit at the property owned or leased by him or her.

“SRRE” means the source reduction and recycling element of the integrated waste management document for the City prepared and updated pursuant to the California Public Resources Code. (Ord. 2007-5 § 1 (part), 2007; Ord. 2013-11 § 58, 2013; Ord. 2023-22 § 569, 2023; Ord. 2026-1, 2/10/2026)

No person shall provide commercial solid waste handling services or conduct a solid waste enterprise in the City without having first been awarded a franchise and entered into a franchise agreement with the City. The franchise agreement shall include terms and conditions for the commercial solid waste handling services in the City. The franchise shall be in addition to any business license or permit otherwise required by City. All franchisees shall comply with all of the requirements of the City Charter, the ordinance granting the franchise, the franchise agreement and this chapter. (Ord. 2007-5 § 1 (part), 2007)

Franchises shall be nonexclusive. No provision of this chapter shall be deemed to require or allow restricting the number of franchises to one or to any particular number. In granting any nonexclusive franchise, the City Council may prescribe such other and additional terms and conditions, to the extent such provisions do not conflict with the City Charter. (Ord. 2007-5 § 1 (part), 2007)

A. Required Forms. An application for a franchise shall be filed in the office of the Municipal Operations Department in writing on forms prescribed by the Municipal Operations Director.

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City of Newport Beach, CA § 12.63.050 VEHICLES AND TRAFFIC § 12.63.060

B. Required Information and Materials. The application for a franchise shall contain the
following information and materials:

1. The name and address of the applicant;

2. If the applicant is a partnership, the name and address of each partner shall be set forth
in the application. If the applicant is a corporation, the application shall state the
names and addresses of the corporation's directors, date and place of incorporation,
main offices, major stockholders and associates, and the names and addresses of the
parent and subsidiary companies;

3. A list of all vehicles, including license plate numbers and vehicle identification
numbers, to be used in connection with the commercial solid waste handling services;

4. Evidence that the applicant has or can provide all required insurance and affirmation
of indemnification;

5. Evidence that the applicant maintains books of account, income statements, tonnage
reports and supporting documents and all other documents that relate in any way to
commercial solid waste handling services or the conduct of a solid waste enterprise in
a manner acceptable to the City;

6. A report of solid waste handling activities for the prior calendar year to include
tonnage collected by activity, as specified by City, and the corresponding revenue for
each activity; the tonnage recycled or caused to be recycled by the applicant's
collection, transportation, and/or disposition of materials collected and categorized by
method of recycling, material type recycled, and the tonnage disposed by facility
utilized;

7. Such further information as the Municipal Operations Director may reasonably
require to evaluate and process the application.

C. Verification. Application for a franchise shall be verified and signed by a person or persons
authorized to execute documents on behalf of the entity.

D. Fees. Applications for a franchise shall be accompanied by a fee as established by
resolution of the City Council.

E. Waivers. The Municipal Operations Director may waive the submission of items deemed unnecessary. (Ord. 2007-5 § 1 (part), 2007; Ord. 2013-11 §§ 59—61, 2013; Ord. 2023-22 § 570, 2023; Ord. 2025-37, 1/13/2026)

A. Time Limits and Notification. Within 30 calendar days of the filing of an application, the Municipal Operations Department shall determine whether the application is complete and notify the applicant in writing if the application is determined to be incomplete.

B. Incomplete Applications. If the application is determined not to be complete, the Municipal
Operations Department shall notify the applicant in writing and shall specify those parts of
the application which are incomplete and shall indicate the manner in which they can be
made complete, including a list and thorough description of the specific information or

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City of Newport Beach, CA § 12.63.060 NEWPORT BEACH CODE § 12.63.090

materials needed to complete the application. Upon the receipt of the information or
materials needed to complete the application, or any resubmittal of the application, a new
30 day review period shall begin to determine the completeness of the application.

C. Extension of Time Limits. Extensions of the time limits of the review period are permitted
when mutually agreed upon by the Municipal Operations Department and the applicant.
(Ord. 2007-5 § 1 (part), 2007; Ord. 2013-11 § 62, 2013; Ord. 2023-22 § 571, 2023; Ord.
2025-37, 1/13/2026)

Upon receiving an application that contains all of the information described in this chapter which is both complete and in a form acceptable to the Municipal Operations Director, the Municipal Operations Director shall process the application in accordance with the provisions of this chapter and Article XIII of the City Charter for consideration by the City Council. (Ord. 2007-5 § 1 (part), 2007; Ord. 2023-22 § 572, 2023; Ord. 2025-37, 1/13/2026)

The City Council shall approve or conditionally approve an application for a franchise if, on the basis of the application, information materials, and testimony submitted, the City Council finds:

A. That the application complies with this chapter;

B. That the applicant or any person responsible for the management of the entity submitting
the application has not within the past three years: (1) had a franchise for commercial solid
waste handling services terminated by the City; and/or (2) received two or more
administrative citations within the past 12 months for operating a solid waste enterprise
within the City without a franchise;

C. That awarding the franchise is in accord with the objectives of this chapter;

D. That granting of such franchise will not, under the circumstances of the particular case,
materially affect adversely the health or safety of persons residing or working in the City
or be materially detrimental to the public welfare or injurious to property or public
improvements; and

E. That the applicant has sufficient experience, equipment or recycling plan to safely comply
with the requirements of the franchise agreement.
(Ord. 2007-5 § 1 (part), 2007; Ord. 2026-1, 2/10/2026)

A. Franchisee shall pay quarterly to the City during the term of the franchise a fixed percentage of the quarterly gross receipts of the franchisee derived from the franchisee’s solid waste handling services within the City. The franchisee fee and environmental liability fund fee shall be in the amounts and paid in the manner set forth in the ordinance granting the franchise or the franchise agreement.

B. Pursuant to California Public Resources Code, Division 30, Part 2, Chapter 8, Section
41900 et seq., the ordinance granting the franchise shall prescribe a specific percentage of
the fee for preparing, adopting and implementing an integrated waste management plan

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City of Newport Beach, CA § 12.63.090 VEHICLES AND TRAFFIC § 12.63.130

consistent with the SRRE. That portion of the fee shall be separately accounted for and
shall be used only for the costs stated in California Public Resources Code Section 41901.

C. Franchise fees and environmental liability fund fees shall be due and payable on the 30th
day of the month following the end of each quarter. The franchisee shall pay the required
fees to the City and deliver the payment to the City's Administrative Services Director.
Each payment shall be accompanied by a written statement, verified by the franchisee or a
duly authorized representative of the franchisee, showing in such form and detail as the
Administrative Services Director may prescribe, the calculation of the fees payable by the
franchisee and such other information as may be required as material to a determination of
the amount due.

D. No statement filed under this section shall be conclusive as to the matters set forth in such
statement, nor shall the filing of such statement preclude the City from collecting by
appropriate action the sum that is actually due and payable.

E. The franchise fee and environmental liability fund fee shall be in addition to any license
fee or business tax prescribed by the City for the same period.
(Ord. 2007-5 § 1 (part), 2007; Ord. 2013-11 § 63, 2013; Ord. 2023-22 § 573, 2023; Ord.
2025-37, 1/13/2026)

Any person providing commercial solid waste handling services or conducting a solid waste enterprise in the City of Newport Beach shall be responsible for any damages caused as a result of the person’s acts or omissions including, but not limited to, injuries to or death of any person or damage to public and/or private property. (Ord. 2007-5 § 1 (part), 2007)

To the maximum extent permitted by law, any person providing commercial solid waste handling services or conducting a solid waste enterprise in the City of Newport Beach shall indemnify, hold harmless, and defend the City, its officials, officers, employees, agents, consultants, volunteers, representatives, and attorneys from and against any costs, expenses, damages, and losses arising directly or indirectly from or caused by the persons’ acts or omissions, negligence, or violation of any Federal, State or local law, ordinance, statute, or regulation. (Ord. 2007-5 § 1 (part), 2007)

No person providing commercial solid waste handling services or conducting a solid waste enterprise shall deposit fifty (50) percent or more of the solid waste collected by the person in the City at any landfill. (Ord. 2007-5 § 1 (part), 2007)

Any franchisee providing commercial solid waste handling services or conducting a solid waste enterprise in the City shall keep and maintain books of account, income statements, tonnage

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City of Newport Beach, CA § 12.63.130 NEWPORT BEACH CODE § 12.63.150

reports and supporting documents and all other documents that relate in any way to business transactions conducted by the person in the City for a period of three years after said service was provided and shall make these records and documents available to the City upon request by the City Manager, Municipal Operations Director or Administrative Services Director. (Ord. 2007-5 § 1 (part), 2007; Ord. 2013-11 § 64, 2013; Ord. 2023-22 § 574, 2023; Ord. 2025-37, 1/13/2026)

A. The City Council shall have the right to terminate any nonexclusive franchise pursuant to this section.

B. A notice of intent to terminate a nonexclusive franchise shall be personally delivered or
mailed, at the discretion of the Municipal Operations Director, to the franchisee at the
franchisee's address of record, shall state grounds for suspension or termination and shall
give the franchisee notice of the time, date and place of a hearing before the City Council,
which shall be convened not less than 15 days and no more than 60 days after the date of
notice, subject to continuance with the consent of the parties.

C. The hearing shall be conducted and closed, and decision rendered thereon within sixty (60)
days after the date of the hearing.

D. The City Council shall have the right to terminate or suspend any nonexclusive franchise
agreement granted pursuant to this chapter if the Council finds, after hearing, that:

1. The franchisee has failed to comply with, or to do anything required of the franchisee
by this chapter, or that franchisee has violated any provision of the ordinance granting
the franchise, including, but without limitation, failure to timely pay all franchisee
fees, provide records in accordance with the City’s request, file required reports, or
has violated any provision of the franchise agreement or any Federal, State or local
law or regulation applicable to franchisee’s operations under the franchise; or

2. Any provision of this chapter or of the franchise agreement is repealed or becomes or
is declared to be invalid, and the City Council expressly finds that such provision
constitutes a material consideration to the grant or continuation of such nonexclusive
franchise.

E. The decision to suspend or terminate shall contain findings of fact, a determination of the
issues presented and shall be final as to the City but subject to judicial review pursuant to
California Code of Civil Procedure Section 1094.5. Any suspension of a nonexclusive
franchise shall state specific conditions upon which the nonexclusive franchise may be
reinstated or terminated.
(Ord. 2007-5 § 1 (part), 2007; Ord. 2013-11 § 65, 2013; Ord. 2023-22 § 575, 2023; Ord.
2025-37, 1/13/2026)

A. Gardener's Exclusion. No provision of this chapter shall prevent a gardener, tree trimmer or person providing a similar service from collecting yard waste, as an incidental portion of providing such gardening, tree trimming or similar service.

B. Commercial Recycler Exclusion for Source-Separated Recyclables. No provisions of this

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City of Newport Beach, CA § 12.63.150 VEHICLES AND TRAFFIC § 12.63.170

chapter shall prevent a recycling business from contracting to collect source-separated
recyclables that are donated or sold to that recycling business by a commercial enterprise.
"Source-separated recyclables" within the meaning of this subsection means recyclables
which have been separated by a commercial business on its premises from solid waste
for the purpose of sale or donation, which have not been mixed with or contain more
than incidental or minimal solid waste, and which do not have a negative market value
inclusive of collection, transportation, and disposition costs. This exclusion does not apply
if the material collected is hauled for a net fee. Any recycling business qualifying for the
exclusion shall meet all other requirements to operate in the City, including, but not limited
to, a business license.

C. Back Hauler, Self Hauler, and Small Hauler Exclusion. No provision of this chapter shall
apply to a back hauler, self hauler, or small hauler that meets the strict definition as those
terms are defined in § 12.63.020 (Definitions). Under no circumstances may a back hauler,
self hauler, or small hauler collect, transport or dispose of solid waste that has not been
generated by them and/or does not legally belong to them. All solid waste must be handled,
diverted and disposed of in a manner compliant with all Federal, State, or local laws related
to solid waste handling and disposal. This exclusion shall not apply to any person that has
obtained a building permit and is required to pay the demolition deposit under § 15.02.085.
Any person qualifying for this exclusion shall meet all other applicable requirements to
operate in the City.

D. Capital Improvement Project Exclusion. The provisions of this chapter shall not apply to
solid waste handling services on a Federal, County of Orange, State of California, or City
capital improvement project provided that the contractor complies with all Federal, State,
and local requirements related to handling and disposal of solid waste.
(Ord. 2007-5 § 1 (part), 2007; Ord. 2026-1, 2/10/2026)

In addition to all other rights reserved to the City under this chapter, the following shall apply:

A. There is reserved to the City every right and power, and the exercise thereof, which is
reserved or authorized by any provision of any lawful ordinance or resolution of the City,
whether enacted before or after the effective date of the ordinance codified in this chapter.

B. Neither the granting of any nonexclusive franchise nor any provision of any nonexclusive
franchise shall constitute a waiver of or a bar to the exercise of any governmental right or
power of the City.

C. There is expressly reserved to the City Council the power and authority to amend any
section of this chapter so as to require additional or greater standards on the part of the
franchisee.
(Ord. 2007-5 § 1 (part), 2007)

In addition to the penalties set forth in Chapter 1.04, any person providing commercial solid waste handling services or who conducts a solid waste enterprise in the City of Newport Beach without having first been awarded a franchise and entered into a franchise agreement with the City, shall be liable to the City for the amount of the franchise fee and the environmental liability

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City of Newport Beach, CA § 12.63.170 NEWPORT BEACH CODE § 12.63.180

fund fee set by resolution of the City Council, and a late charge of ten percent of the amount of the unpaid fees. If the unpaid fees are not paid within thirty (30) days of the due date, the person shall pay a second late charge in an amount equal to ten percent on both the amount of the fee outstanding and the first late charge. The second late charge shall be in addition to the first late charge. Interest on the unpaid fees and late charges shall accrue at the rate of one and one-half of one percent (1 1/2%) per month for each month or portion of a month that the amount remains unpaid. The amount of any fee, interest and late charge imposed by this section shall be deemed a debt to the City of Newport Beach. (Ord. 2007-5 § 1 (part), 2007)

Ownership and the right to possession of solid waste shall transfer directly from the person receiving commercial solid waste handling services to the person providing commercial solid waste handling services or who conducts a solid waste enterprise in the City of Newport Beach upon collection. At no time shall the City obtain any right of ownership or possession of solid waste, industrial waste or hazardous waste, green waste, other waste, rubbish, or garbage placed for collection and nothing in this chapter shall be construed as giving rise to any inference that City has any such rights. (Ord. 2007-5 § 1 (part), 2007)

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City of Newport Beach, CA § 12.64.010 VEHICLES AND TRAFFIC § 12.64.040