Sonora Municipal Code § 7.16 Franchise Requirements

A. Applications for a new franchise or modification of an existing franchise shall be made to the city administrator which shall include all the following information:

1. Name and description of the applicant;

2. Permanent home and business address and full local address of applicant;

3. Facts showing that the applicant is able to render efficient service;

4. Such other applicable facts or information as needed by the city administrator.

B. The city administrator may, at his/her option, require photographing and fingerprinting of the persons making application.

C. If an application is received for a new franchise, any competing applications must be submitted within forty-five days thereafter.

(Ord. 692 § 4 (part), 1994.; Repealed & Replaced by Ord. 882 on 4/18/2022)

Upon application for a franchise as provided for in this title, each applicant shall provide to the city administrator a franchise operating plan. An application for modification shall include only revisions to appropriate sections of the plan.

(Ord. 692 § 4 (part), 1994.; Repealed & Replaced by Ord. 882 on 4/18/2022)

The components of the operating plan, as specified in other parts of this title, may include any or all of the following:

A. A detailed description of the manner in which the proposed service will be conducted, including an estimate of the various numbers of units of measure which describe the size and effect of the proposed service. Units of measure may include the number of households serviced by collection, number of users seeking service at a proposed facility, number of yards and density or tonnage of solid waste or recyclables as input and output for a proposed service. The detailed description must also contain the applicant's proposed arrangements for disposal of all solid waste collected or transported either to him/her or by him/her, or as a result of processing or handling, including solid wastes resulting from the collection and transport of recyclables, at an approved disposal site or his/her arrangements for other authorized disposal;

B. A complete description of all trucks and equipment that the applicant owns or has under its control which it proposes to use for providing services under the requested franchise and the address or location and the zoning designations of the parcel or parcels where the trucks and operating equipment will be kept. This description of trucks and equipment must be augmented by evidence showing that the applicant owns or has under his control, in good mechanical condition, sufficient trucks and equipment to adequately conduct the business being proposed. The evidence may be provided in a manner such as an inventory of trucks and equipment which lists the year, make and model, license number, VIN or serial number, registered owner and working condition;

C. A detailed cost projection for operating the applicable service, the profit margin estimated for that service and the cost and revenue basis for the profit margin. The plan shall be based on the projected services to all customers, at the current or anticipated service levels, on a monthly or annual basis. The cost and revenue estimates shall be based entirely on the services for which the application is made, and shall not include cost or revenues from any other services, except cost allocations for assets or labor shared with any other service or business may be included using generally accepted accounting principles. The revenue estimate shall include the proposed rates which will be applicable to all customers of the proposed service;

D. A description of the recordkeeping systems to be used by the applicant to account for the types and quantities of materials to be included in the proposed service recorded separately from the types and quantities of materials included in other services which are not a part of the application;

E. If the applicant is proposing or is obligated to provide residential or commercial recyclables collection services, the following shall additionally pertain to the plan:

1. For residential services the plan must include a description of the means for source separation and collection and the estimated quantities to be collected annually of, at a minimum, the following recyclables:

a. Newspaper,

b. Cardboard,

c. Aluminum cans and containers,

d. Other metal containers including tin/steel cans,

e. Glass, and

f. Plastic.

2. For commercial services the plan must include a description of the proposed means for source separation and collection and the estimated quantities to be collected annually, at minimum, of the following recyclables:

a. Newspaper,

b. Cardboard,

c. Office paper,

d. Construction and demolition debris and wood wastes.

3. For commercial or residential recyclables collection services, a description of any and all actions to be taken in the event markets for each recyclables designated for collection become unavailable;

F. Identification of the collection area or modification of the collection area in which the applicant is requesting to operate. Such identification shall be in the form of a map depicting existing and proposed boundaries, accompanied by a written description;

G. Presentation of all facts which the applicant believes will show that the public health, safety, welfare, convenience and necessity require the authorization of the requested activity;

H. Any additional components required by the city administrator.

(Ord. 692 § 4 (part), 1994.; Repealed & Replaced by Ord. 882 on 4/18/2022)

A. Upon receipt of a completed application, including a franchise operating plan, the city administrator shall determine if the application and plan and proposed service conform to the requirements of this title. The city administrator shall determine whether the applicant has the necessary equipment and facilities to adequately provide the service applied for and if the applicant meets all the other requirements of this title. The city administrator shall forward the application and plan to the LEA for review and comment. Upon completion of the investigation, the city administrator shall recommend to the council that the application and plan be approved or denied for the requested franchise. If the recommendation is to approve the application or modification, a proposed franchise agreement also will be forwarded to the council for consideration during the public hearing provided for in subsection B of this section.

If the council overturns the recommendation of denial, it may approve, or approve with modifications, the application and plan and return the matter to the city administrator for negotiation of a proposed franchise agreement which will include the modifications determined by the council. A franchise shall be approved by the council only if it determines the public health, safety, welfare, convenience and necessity so require.

B. The council shall hold a public hearing, after having given notice as provided in Government Code sections 66016 and 66018. Following the hearing the council may establish charges if it will further the purposes of this title.

(Ord. 692 § 4 (part), 1994.; Repealed & Replaced by Ord. 882 on 4/18/2022)

A franchise shall contain at least the following components:

A. An identification of the collection area, if any, covered by the agreement;

B. A description of the rights granted and the obligations assumed under the agreement;

C. A requirement that the franchisee comply with the terms of the approved franchise operating plan;

D. Adequate insurance to protect the city's interests;

E. Adequate security to protect the city against financial losses if there is any failure or deficiency in performance by the franchisee;

F. Provisions for the term of the agreement, renewal and termination;

G. Hold harmless and indemnification provisions;

H. A prohibition against assignment or transfer without the consent of the council;

I. Provisions directing the delivery of waste by collection franchises;

J. Provisions allowing disposers and arrangers to select a disposal site, but if a less expensive (total cost) alternative exists, a customer rate reduction will be implemented unless consent for use of the more expensive site is granted;

K. Franchise fees;

L. Customer rates;

M. Liquidated damages and other remedies for fee delinquencies and performance deficiencies;

N. Dispute resolution and remedies;

O. Provisions requiring operations to be consistent with the source reduction and recycling element;

P. Provisions for buy-out.

(Ord. 692 § 4 (part), 1994.; Repealed & Replaced by Ord. 882 on 4/18/2022)

A. The franchise operator shall maintain detailed books and records of all receipts and expenditures received or incurred in the operation of such business, including all fees collected for services rendered. The records shall include cost accounting components using generally accepted accounting principles reflecting the cost allocation of any assets or labor shared with services or businesses other than the service authorized by the franchise. Upon reasonable notice during normal business hours, the city, its officers and employees, authorized by the city administrator, shall be entitled to inspect, audit and copy such books and records including books and records of any business or service which shares assets or labor with the franchise operator. Items requested by franchisee to be considered confidential are subject to the public records act as it may be amended.

B. The franchise operator providing recyclables collection services shall submit the annual recycling report described in Section 7.20.070. In addition, the report shall contain the following:

1. An estimate of the percentage of services (%P) participating in the recycling collection program and the basis for the estimate, defined as shown:

%P = (Services participating/total services) x 100;

2. An estimate of the total percentage (%T) of the waste stream being diverted through the recycling collection program and the basis for the estimate, defined as shown:

%T = (Recyclables collected/total wastes collected) x 100;

3. A summarized accounting of operational costs incurred in the performance of collection, processing and marketing of recyclables including the cost of recycling containers, collection methods, etc.;

4. A summarized accounting of revenues received from the sale of recyclables;

5. Statement of net operating profits or losses (Net) from the recycling operations, defined as follows:

Net = Revenue from sales - operational costs.

(Ord. 692 § 4 (part), 1994.; Repealed & Replaced by Ord. 882 on 4/18/2022)

A. A franchisee, at its expense, shall annually provide the city administrator, at his/her option, with a copy of a reviewed financial statement or an unqualified audit within one hundred twenty days after the close of its fiscal year. The reviewed financial statement or unqualified audit shall be prepared by a certified public accountant or licensed public accountant. The accountant shall be independent of the franchisee and shall have no financial interest whatsoever in the business of the franchisee. The city finance director or designee shall specify the form and detail of either the annual reviewed financial statement or unqualified audit. In the event of failure to provide any such report, the administrator may employ a qualified accountant to prepare the report and the franchisee, in such case, shall be liable for and pay the costs and expenses incurred.

B. The city administrator shall review the financial information and if it appears a rate modification may be in the public interest, a recommendation may be forwarded to the city pursuant to Chapter 7.28. Additionally, the city administrator may recommend any modification to the franchise agreement as provided therein.

(Ord. 692 § 4 (part), 1994.; Repealed & Replaced by Ord. 882 on 4/18/2022)

A. If the franchisee is found to in violation of any of the provisions of this title, the city administrator shall notify the franchisee of such violation in writing. The franchisee shall respond in writing to the city administrator within five working days of receipt of the complaint and shall address the complaint to the satisfaction of the administrator. The city administrator may, from time to time, extend to the franchisee additional time necessary to rectify the complaint. This remedy shall be in addition to any other enforcement provisions contained in the franchise agreement or this title.

B. Upon written notification by the city administrator that its obligation to provide services under Section 7.12.030(A) is no longer deferred, the franchisee shall, within seven days, commence providing the service.

(Ord. 692 § 4 (part), 1994.; Repealed & Replaced by Ord. 882 on 4/18/2022)

The franchisee shall pay an annual fee on or before July 1st of each year in an amount set forth by city resolution. In addition to the annual fee, the franchisee shall pay a franchise fee as provided in the franchise agreement. The franchise fee may be reviewed and modified by the council from time to time upon recommendation of the city administrator after a public hearing thereon pursuant to Section 7.16.040(B).

(Ord. 692 § 4 (part), 1994.; Repealed & Replaced by Ord. 882 on 4/18/2022)

A franchise is considered to be in the nature of personal services contract on behalf of the citizens of the city, and cannot be transferred or assigned without the written consent of the council.

(Ord. 692 § 4 (part), 1994.; Repealed & Replaced by Ord. 882 on 4/18/2022)