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Home My WebLink About15 TRASH INITIATIVE 07-17-06AGENDA REPORT MEETING DATE: JULY 17, 2006 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: OFFICE OF THE CITY ATTORNEY AND THE PUBLIC WORKS DEPARTMENT SUBJECT: PROPOSED INITIATIVE AMENDING SECTION 4333 OF THE TUSTIN CITY CODE, PERTAINING TO SOLID WASTE FRANCHISES TO BE SUBMITTED TO THE VOTERS IN CONJUNCTION WITH THE GENERAL MUNICIPAL ELECTION ON NOVEMBER 7, 2006; AND AMENDING RESOLUTION (1) CALLING AND GIVING NOTICE OF A GENERAL MUNICIPAL ELECTION (2) REQUESTING THE COUNTY OF ORANGE BOARD OF SUPERVISORS TO CONSOLIDATE THE GENERAL MUNICIPAL ELECTION WITH THE STATEWIDE GENERAL ELECTION (3) AUTHORIZING THE COUNTY OF ORANGE ELECTION DEPARTMENT TO CANVASS THE ELECTION RETURNS; AND (4) PROVIDING FOR EXPENSES OF THE ELECTION SUMMARY Council requested for its consideration a draft ordinance that would amend the existing City Code provision that essentially requires Council to award solid waste hauling contracts to the "lowest responsible bidder" without consideration of the level of services to be provided. The proposed ordinance would require the Council to adopt rules and regulations designed to secure the best level of services at the lowest price practicable. This ordinance must be submitted to the voters for approval. If the Council approves the proposed Resolution No.. 06-95 ordering the submission of the proposed initiative ordinance to the voters, Council should also adopt the amended Resolution No. 06-96 calling for an election November 7, 2006. RECOMMENDATION It is recommended that the City Council consider and adopt the resolution ordering the submission of the proposed initiative ordinance amending Section 4333 of the Tustin City Code to the voters in conjunction with the November 7, 2006 General Municipal Election and the amended resolution calling for an election on November 7,2006. FISCAL IMPACT There is no fiscal impact associated with this action. DISCUSSION Section 4333 of the Tustin City Code currently provides that at least every seven (7) years a contract for the collection and disposal of solid waste and for the collection of recyclable material must be competitively bid "in accordance with California Public Contracts Code Section 20162 et seq." The reference to the Public Contracts Code is to the lowest responsible bidder provisions applicable to public works contracts. This requirement was adopted by voter initiative. Thus, the contract term cannot be extended without voter approval (or amendment or repeal of Ordinance No. 1130 by the voters). This is the reason why the current contract with Federal Disposal Services (FDS) has a term of seven years and contains no provision for an extension. The current contract will expire on September 30, 2007. FDS has suggested the City Council consider .adopting an ordinance for submission to the voters that would allow the City to award a Solid Waste Disposal Franchise on a "best value" basis rather than the current lowest responsible bid" basis. This office and staff believes there is merit to this proposal and consistent with the direction of the City Council at its meeting of July 3, 2006, we have prepared an ordinance that would allow the City to use alternative procedures designed to secure the best level of service at the lowest price practicable rather than the current "lowest responsible bid" procedure. In the event the ordinance is adopted by the voters, the City Attorney and staff propose to present to the City Council an open competitive alternative process based upon objective criteria adopted by the City Council in a public hearing. The criteria would allow the City to rank a potential contractor based upon proposal price, experience, qualifications, financial strength, and regulatory compliance. We would anticipate that this alternative would also include a requirement for each potential contractor to identify programs for meeting stated service and recycling goals with emphasis on price and cost savings for the City, its residents, and its businesses. The proposed ordinance would allow the Council to award a contract for up to ten years, rather than the current seven years maximum. The City Attorney and staff has also reviewed the FDS request to allow an extension to the existing contract by three years in order to provide time to further implement the existing Solid Waste Programs. Staff is not recommending approval of the FDS request due to the need to conduct time consuming and complex contract extension negotiations and also due to staff's desire to add new services and make changes to existing programs which can be accomplished in a more cost effective manner utilizing a bid or proposal process. If the initiative is approved, there will be sufficient time to place a new contract out for proposal and to ensure a seamless transition between service providers, if any contractor transition is necessary. The Consultant Services Agreement with EcoNomics, Inc. for preparing the new contract documents is on this City Council meeting agenda. Staff will be ready to present a new contract scope of work for proposal or bid later this fall. If the initiative is approved, staff will also be prepared to present new proposal evaluation criteria, prior to the approval of the new contract scope of work. Additionally, staff is in the process of rewriting the entire Solid Waste Collection Ordinance (Title 4, Chapter 3 of the City Code, commencing with Section 4300). The current Ordinance is out of date and does not reflect current contracting conditions and Solid Waste Programs. Staff believes that the completion of both of these City Code revisions will make the entire Solid Waste Program more effective. On June 5, 2006, the City Council adopted a resolution calling for a General Municipal Election on November 7, 2006. If the Council approves the resolution ordering the submission of the proposed initiative measure to the voters, it would be appropriate to adopt the amended resolution calling for a General Municipal Election on November 7, 2006 to ensure that the ballot measure is specifically include. Staff recommends that the City Council consider and adopt the proposed Resolution No. 06-95 ordering the Proposed Initiative Ordinance No. 1316, amending Section 4333 of the Tustin City Code, be submitted to the voters in conjunction with the General Municipal Election on November 7, 2006 and that the Council adopt the amended Resolution No. 06- 96 calling for the General Municipal Election on November 7, 2006. Douglas Holland City Attorney Joe Meyers Public Works Administrative Services Manager DH:JM:CC Solid Waste initiative 7-17-06 & Reso 06-95 & 06-96 RESOLUTION NO. 06-95 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ORDERING PROPOSED INITIATIVE ORDINANCE NO. 1316, AMENDING SECTION 4333 OF THE TUSTIN CITY CODE, PERTAINING TO SOLID WASTE FRANCHISES, BE SUBMITTED TO THE VOTERS IN CONJUNCTION WITH THE GENERAL MUNICIPAL ELECTION ON NOVEMBER 7, 2006 THE CITY COUNCIL OF THE CITY OF TUSTIN RESOLVES AND ORDERS: The following proposed Initiative Ordinance No. 1316 is ordered to be submitted to the electors of the City of Tustin at the general municipal election to be held on November 7, 2006 [The changes are shown in underlining and strikeouts to make reviewing the proposed Municipal Code amendment easier; the underlining and strikeouts will not be a part of the Municipal Code if the proposed Initiative Ordinance is approved by the City's electors]: INITIATIVE ORDINANCE NO. 1316 AN INITIATIVE ORDINANCE OF THE CITY OF TUSTIN AUTHORIZING THE CITY COUNCIL TO ISSUE FRANCHISES FOR SOLID WASTE HANDLING SERVICES ON A COMPETITIVE BASIS NOW, THEREFORE, the People of the City of Tustin ordain: 1. Section 4.333 of the Tustin City Code be amended to read: 4333 CONTRACTS FOR REMOVAL AUTHORIZED. The Council may enter into contracts for the collection and disposal of solid waste material, and may establish such rules for the regulation thereof as it may from time to time deem best and necessary. The terms, as set forth in Part 4, shall be the minimum terms of any contract approved by the City Council. At least every SS'lSA (7) ten (10) years City contracts for the collection and disposal of solid waste and for the collection of recyclable material shall be competitively bid in asser-Glanss with Califernia PlJl3lic CeAtrasts CaGle Sestion 2Q162 et seEl. accordino to rules and reoulations adopted bv the Citv Council and desioned to secure the best level of services at the lowest price practicable. This requirement shall apply upon the termination of each City contract for the collection and disposal of solid waste material that is in effect as of the effective date Elf this OrGlinaAse Na. 11 dQ Section. 2. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this article or any part thereof is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this article or any part thereof. The people declare that they would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that anyone or more section, subsection, subdivision, paragraph, sentence, clause or phrases be declared unconstitutional. 3. This Initiative Ordinance shall take effect ten (10) days following the date on which the City Council of the City of Tustin declares that this Initiative Ordinance was adopted by a majority of the voters voting on the measure at the special municipal election held on November 7,2006. 4. This Initiative Ordinance No. 1316 shall be submitted to the electors in the form of a proposition printed on the ballot as follows: INITIATIVE ORDINANCE NO. 1316: "Shall Section 4333 of the Tustin City Code be amended to require the City Council to competitively bid solid waste hauling contracts according to rules and regulations designed to secure the best level of services at the lowest price practicable?" Followed by the words "Yes" and "No." 5. The returns of said election shall be canvassed and declared as provided by law, and if a majority of the votes cast at such election are in favor of such proposition, the proposed Initiative Ordinance shall be ratified. 6. The procedure for voting for or against this proposed Initiative Ordinance shall be the procedure provided by or pursuant to law for voting upon measures at a general municipal election as provided in the California Constitution and the California Elections Code and copies of this proposed Initiative Ordinance shall be distributed to the qualified electors of the City in the manner, time, and form required by law. 7. The City Attorney's impartial analysis and written arguments for and against the proposed Initiative Ordinance shall be prepared in accordance with law. 8. The City Clerk shall certify to the passage and adoption of this Resolution and shall enter this Resolution into the book of original Resolutions. Approved and adopted this 17th day of July, 2006. Doug Davert, Mayor ATTEST: Pamela Stoker, City Clerk RESOLUTION NO. 06-96 AN AMENDED RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA (1) CALLING AND GIVING NOTICE OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 7, 2006, (2) REQUESTING THE COUNTY OF ORANGE BOARD OF SUPERVISORS TO CONSOLIDATE THE GENERAL MUNICIPAL ELECTION WITH THE STATEWIDE GENERAL ELECTION (3) AUTHORIZING THE COUNTY OF ORANGE ELECTION DEPARTMENT TO CANVASS THE ELECTION RETURNS; AND (4) PROVIDING FOR EXPENSES OF THE ELECTION The City Council of the City of Tustin hereby resolves as follows: SECTION 1: That a General Municipal Election be held on November 7, 2006, for the purpose of electing two (2) members of the City Council for full terms of four years each years and for presentation of a ballot measure to the electorate. SECTION 2: That the County of Orange Board of Supervisors is hereby requested to order consolidation of the General Municipal Election with the Statewide General Election on November 7, 2006, and to issue instructions to the County of Orange Election Department to take any and all steps necessary for the holding of the consolidated election. SECTION 3: That the County of Orange Election Department is hereby authorized to canvass the election returns. SECTION 4: That the City Council acknowledges and agrees to payment of the expenses of the election, excluding a separate sample ballot. SECTION 5: That the Office of the City Clerk is hereby directed to file a certified copy of this Resolution with the County of Orange Board of Supervisors and the County of Orange Election Department. PASSED AND ADOPTED at a regular meeting of the City Council held on the 1ih day of July, 2006. Doug Davert, Mayor ATTEST: Pamela Stoker, City Clerk