Thousand Oaks Municipal Code Art. 3 Franchise and Permit System

The City Council, pursuant to the California Public Resources Code, does hereby determine that the collection, processing and/or disposal of Solid Waste, Organic Waste, and Recyclable Materials shall be provided within the City through the issuance of Exclusive or Limited Franchises or Permits, with or without public bidding, in accordance with the terms of this Chapter. The receipt of services is voluntary and not required of any property within City, and any owner or Service Recipient of property within City has the opportunity to avoid the services available under this Agreement either through self-hauling or use of property in such a manner that Solid Waste is not generated. However, all residents and businesses must manage their Organic Waste and Recyclable Materials in a manner consistent with State Law. The use of public waste containers for disposal of Solid Waste generated at residential or commercial premises is prohibited.

(Ord. 1688-NS, eff. December 17, 2021)

(a) Authorization to grant Franchises and Permits. The City Council may grant, at its discretion, Exclusive or Limited Franchises to designated Contractors. The collection of a franchise fee from these designated Contractors may be in lieu of all other business tax certificate fees required by the City as determined by the Director of Finance. The City Manager, or designee, may grant Commercial Recycling Permits to those applicants meeting the Permit criteria. The City Council may establish by resolution standards regarding the collection, transporting, processing, and/or disposal of Solid Waste, Organic Waste, and Recyclable Materials generated from residential, commercial and industrial premises.

(b) Collection by Contractor or Permittee. So long as any such Exclusive or Limited Franchise or Permit remains in force, collection and handling of material provided for in this Chapter shall be made by the Contractor or Permittee in accordance with the terms and conditions of this Chapter, the rules and regulations adopted by the City, the terms and conditions of the Franchise Agreement, and the terms and conditions of the Permit.

(c) Unlawful collection. Except as expressly provided in this Chapter, it is unlawful for any person to collect or transport Solid Waste, Organic Waste, and Recyclable Materials within the City unless such person is a designated Contractor with an Exclusive or Limited Franchise, or a Permittee, or the material collected is exempted under subsections (c)(1) through (10) of this section. It is unlawful for any person to knowingly authorize, allow or enter into any agreement for the collection or transportation of Solid Waste, Organic Waste, and Recyclable Materials by a person who is not a Contractor or Permittee, except as follows:

(1) Green Waste removed from a premise by a contracted gardening, landscaping, or tree trimming business or by a public agency representative as an incidental part of a landscape maintenance service rather than as a separate transportation service, or Green Waste delivered by a generator to a processing facility;

(2) Debris removed from a premise by a licensed land clearing contractor using its own employees and equipment, when transport is provided as an incidental part of a total service offered by that contractor rather than as a separate transportation service;

(3) Hazardous or dangerous materials, liquid and dry caustics, acids, biohazardous, flammable, and explosive materials, pesticides, and similar substances;

(4) Infectious medical waste as defined in the most current California Health and Safety Code;

(5) Source separated Recyclable Materials delivered by the generator to a facility for recycling under the California Beverage Container and Recycling Litter Reduction Act, California Public Resources Code §§ 14500 et seq.

(6) Source separated Recyclable Materials or Organic Waste delivered by the generator to a facility for Recycling or Composting ("Self-haul");

(7) Source separated Edible Food Waste removed from residential or commercial premises and donated for human consumption ("Food Recovery");

(8) By-products of sewage treatment, including sludge, biosolids, grit and screenings;

(9) Solid Waste generated at any residential or commercial premises and which is transported personally by the owner or occupant of such premises to a licensed disposal facility or disposed of in a manner consistent with the provisions of the Municipal Code and other applicable laws.

(10) Source separated Organic Waste byproducts generated from food or beverage processing intended to be used as animal feed and which meet the criteria of Public Resource Code section 40059.4 and AB 3036.

(Ord. 1688-NS, eff. December 17, 2021)

The City may issue the following types of Franchises or Permits:

(a) Exclusive Franchise. An Exclusive Franchise will be issued for ongoing regularly scheduled weekly collection of residential, commercial and industrial Solid Waste, Organic Waste, and/or Recyclable Materials from a Designated Zone as defined in this Chapter.

(b) Limited Franchise. A Limited Franchise will be issued for temporary collection of Solid Waste, Organic Waste, Construction and Demolition Waste, and/or Recyclable Materials from a Designated Zone as defined in this Chapter and shall require a valid Encroachment Permit.

(c) Commercial Recycling Permit. A Permit may be issued for the collection of commercial and industrial Recyclable Materials, including Organic Waste from within the Commercial zones as defined in this Chapter. The Permittee may charge service recipients a fee for the collection, transportation, or processing of such materials only if the Exclusive Franchise hauler is unable, or declines, to collect and recycle the materials. A list of such materials is provided in the Exclusive Franchise Agreement and updated annually.

(d) Emergency Permit. In emergencies, such as the breakdown of equipment, or other unforeseen or unpreventable circumstances where, in the judgment of the City Manager or designee, the particular situation justifies such action, limited or temporary permits to private persons or businesses to perform any of the services covered by this Chapter may be issued by the City Manager or designee. These services shall be subject to such reasonable fees, charges and conditions as the circumstances may warrant and as the parties involved may agree upon.

Emergency Permits shall not exceed six (6) months in duration unless approved by the City Council.

(Ord. 1688-NS, eff. December 17, 2021)

The City Manager or designee shall investigate the information required by this Chapter and verify that the Contractor or Permittee is capable of complying with the provisions of this Chapter and the rules and regulations of the City. The City Manager or designee shall notify the City Council of the findings prior to approval or denial of the Exclusive or Limited Franchise.

(Ord. 1688-NS, eff. December 17, 2021)

(a) Franchise issuance and term. An issuance of Exclusive or Limited Franchises, pursuant to this Chapter shall only be effective when approved by the City Council and when a separate written agreement is signed by the Contractor and the City. Each Franchise shall terminate as referenced in the Exclusive or Limited Franchise agreement.

(b) Permit issuance and term. A Commercial Recycling Permit application shall be completed by a Permit applicant and approved by the City prior to offering service in the City. The issuance of a Commercial Recycling Permit pursuant to this Chapter shall only be effective when approved by the City Manager or designee. Each Permit shall expire annually on December 31, in conjunction with the City Business Tax Certificate (Business License), as referenced in the terms of the Permit.

(Ord. 1688-NS, eff. December 17, 2021)

(a) The Contractor shall not assign its rights or delegate or otherwise transfer its obligations under an Exclusive or Limited Franchise granted pursuant to this Chapter in whole or in part to any other person without the prior written consent of the City. Any such assignment made without the consent of the City shall result in the revocation of the Exclusive or Limited Franchise. Permits issued under this Chapter may not be transferred or assigned.

(b) For purposes of this section, "assignment" shall include, but not be limited to:

(1) A sale, exchange or other transfer of substantially all of Contractor's assets dedicated to service under this Chapter to a third party;

(2) A sale, exchange or other transfer of 30 percent or more of the outstanding common stock of Contractor;

(3) Any reorganization, consolidation, merger, recapitalization, stock issuance or re-issuance, voting trust, pooling agreement, escrow arrangement, liquidation or other transaction to which Contractor or any of its shareholders is a party which results in a change of ownership or control of thirty (30) percent or more of the value or voting rights in the stock of Contractor;

(4) Any combination of the foregoing, whether or not in related or contemporaneous transactions, which has the effect of any such transfer or change of ownership. For purposes of this section, the term "proposed assignee" shall refer to the proposed transferee(s) or other successor(s) in interest pursuant to the assignment. Assignment shall not include the gifting or sale of ownership interest to a spouse or lineal family members nor shall it include a transfer by bequest to a spouse or lineal family members.

(c) If Contractor requests City Council consideration of and consent to an assignment, the City Council may deny or approve such request. No request by Contractor for consent to an assignment need be considered by the City Council unless and until Contractor has met the following requirements:

(1) Contractor shall pay to City the cost for administrative staff time and attorney fees to investigate the suitability of any proposed assignee, and to review, evaluate and process any documentation required as a condition for approving any such assignment. Contractors possessing a Limited Franchise who request an assignment or transfer of Franchise must apply for a termination of the Franchise and reapply for a new Franchise under a new name.

(2) Contractor shall furnish City Manager or designee with audited financial statements of the proposed assignee's operations for the immediately preceding three (3) operating years unless an exception is granted by the City Manager or designee.

(3) Prior to consideration by the City Council, the Exclusive Franchise Contractor shall furnish the City Manager or designee with satisfactory written proof the proposed assignee has at least ten (10) years of solid waste management experience on a scale equal to or exceeding the scale of operations conducted by Contractor under this Chapter; that in the last five (5) years, the proposed assignee has not received any citations or other censure from any federal, state, or local agency due to any significant failure to comply with federal, state, or local laws and that the assignee has provided the City Manager or designee with a complete list of such citations and censures; that the proposed assignee has at all times conducted its operations in an environmentally safe and conscientious fashion; that the proposed assignee conducts its solid waste management practices in accordance with sound waste management practices in full compliance with all federal, state, and local laws regulating the collection and disposal of solid waste, including hazardous waste as identified in Title 22 of the California Code of Regulations; and, of any other information required by the City Council to ensure the proposed assignee can fulfill the terms of this Chapter in a timely, safe and effective manner. Proposed assignees must be approved by the City Council.

(Ord. 1688-NS, eff. December 17, 2021)

An Exclusive or Limited Franchise may be revoked at the option of the City Council, per the terms of the Franchise Agreement. A Permit may be revoked at the option of the City Manager or designee if he/she determines that the Permittee has not complied with either the provisions of this Chapter, State statute on solid waste collection, the terms of the Permit, or the City's rules and regulations.

Unless otherwise specifically stated in the Franchise Agreement, non-compliance shall be handled as follows:

The City Manager or designee shall issue a written notice of noncompliance to Contractor or Permittee specifying the nature of Contractor or Permittee's noncompliance and require compliance within 30 days. If the City Manager or designee finds that, for health and safety reasons, compliance cannot be delayed for 30 days, the City Manager or designee shall order that the Contractor or Permittee shall immediately commence and diligently pursue correction. If said noncompliance is not corrected within said 30 day period, or if Contractor fails to immediately commence and diligently pursue correction as directed, as the case may be, then the Contractor or Permittee shall be given a minimum of five (5) days written notice of a hearing before the City Manager or designee, at which time the City Manager or designee shall make findings, and by written decision, either take no action, revoke or add conditions to Contractor or Permittee's Franchise or Permit. Should revocation be ordered, Contractor or Permittee shall be given a maximum of 90 days to cease operations within the City and remove all containers in service.

Within five (5) days of written notice of cancellation, Contractor or Permittee may appeal the City Manager or designee's decision to the City Council. Any appeal request shall state in full all grounds for appeal. Action on the Contractor or Permittee's appeal shall be set on a City Council agenda; however; such appeal shall not act as a stay on the ordered compliance. The City Council shall announce its decision and thereafter adopt a resolution setting forth such decision. All City decisions shall be served on Contractor or Permittee in person or by certified return-request United States mail, postage prepaid. Service by mail shall be deemed complete two (2) business days after the date of mailing.

(Ord. 1688-NS, eff. December 17, 2021)

(a) Collection charge. A charge for the collection of Solid Waste, Organic Waste, and Recyclable Materials shall be imposed by the City or Contractor on the Service Recipient, or assigned responsible party of each Residential and Commercial Premises or entity subscribing to Solid Waste, Organic Waste, and Recyclable Materials collection service. The City Council shall establish fees, by resolution, to be charged for the collection, transportation, and disposal of Solid Waste, the collection, and processing of Organic Waste and Recyclable Materials, and the service of planning and administering the City's solid waste programs and franchises contemplated under this Chapter.

(b) Where allowed under this Chapter, Permittee shall only charge a fee when the Exclusive Franchise hauler is unable, or declines, to collect and recycle the Recyclable or Organic Materials. A list of such materials is provided in the Exclusive Franchise Agreement and updated annually.

(c) Rate adjustments. Service rates shall be adjusted annually in accordance with the procedures described in the Exclusive Franchise Agreement. No fees shall be charged to Service Recipients other than those approved by resolution of the City Council.

(Ord. 1688-NS, eff. December 17, 2021)