Chapter 30.50
COMMERCIAL HAULER REQUIREMENTS
Sections:
30.50.010 Franchise agreement required.
30.50.020 Authorized hauler qualifications.
30.50.030 Franchise agreement.
30.50.040 Requirements for authorized haulers.
30.50.041 Requirements for service agreements.
30.50.050 Inspection of equipment and facilities.
30.50.070 Vehicle inspections.
30.50.080 Transportation requirements.
30.50.100 Commercial hauler fee.
30.50.110 Commercial hauler fees for cleanup companies.
30.50.140 Time and manner of payment.
30.50.170 Credit for overpayment.
30.50.220 Liability for damages to the City or for operating without a contract.
30.50.010 Franchise agreement required.
A. No person or entity shall engage in the business of collecting, transporting, or disposing of solid waste kept, accumulated, or generated in the City by commercial generators or engage in the business of soliciting accounts or invoicing commercial generators for solid waste service in the City unless authorized to do so under a valid franchise agreement with the City. The City may, in its discretion, authorize one (1) or more persons or entities for the collection, transportation, or disposal of commercial solid waste kept, accumulated, or generated in the City or to engage in the business of soliciting accounts or invoicing commercial generators for solid waste service in the City. Each and every such authorization shall be a franchise agreement describing the terms, conditions, restrictions, and limitations as may be deemed necessary or convenient for the preservation, protection, or enhancement of the public peace, health, safety, and general welfare; provided, that no franchise shall be granted without reserving to the City adequate compensation for the privilege conferred and the administrative costs of providing regulatory oversight and providing all necessary programs to meet the requirements of all applicable solid waste laws and regulations.
B. No person or entity may haul commercial solid waste on City streets, alleys, highways, or other public pavement except the following and his or her (or its) employees:
1. An authorized hauler with a binding franchise agreement that is in full force and effect and is not expired or terminated;
2. Any person or entity authorized to self-haul or back-haul pursuant to EGMC Section 30.40.060;
3. Any owner or operator of an industrial plant hauling solid waste that, in the judgment of the City, cannot be handled by standard solid waste collection equipment or may involve significant health, operating or handling hazards;
4. Any person or entity hauling deceased animals, bones, meat scraps, or fat, oil, and/or grease from food processing plants for rendering;
5. Any person or entity transporting solid waste comprised of raw materials to be reused for new manufactured products and not for disposal;
6. Any person or entity transporting source-separated organic waste to a community composting site; or
7. A landscape company or any of its employees transporting green waste generated or collected through landscaping activities. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.020 Authorized hauler qualifications.
The following persons or entities are referred to in this title as “authorized haulers”:
A. Each person or entity that is obligated under this chapter, and as may be amended or replaced, or who has a binding franchise agreement with the City; and
B. Each person or entity that collects solid waste from a multifamily property comprised of five (5) or more units; and
C. Each person or entity, including cleanup companies, that removes C&D debris from premises in the City, regardless of the type of collection containers (including, without limitation, pens, bins, drop boxes, debris boxes or roll-off containers) or transport vehicles (including without limitation pickup trucks, solid waste collection vehicles, or flat-bed trucks); and
D. Each person or entity that supplies goods (including, without limitation, containers and vehicles) or services (including, without limitation, account solicitation, billing, invoicing, subcontracting, brokering, disposal, or any solid waste handling services) to persons or entities described under the items listed in subsections (A) through (C) of this section, whether pursuant to arrangements that are formal or informal, written or otherwise. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.030 Franchise agreement.
A. All commercial hauler franchise agreements pursuant to this title shall be in writing and approved by the City Manager.
B. Each franchise agreement shall be on a form provided by the City and shall include information related to the business identification, business operations, facilities and equipment, financial resources, diversion plan, reporting requirements, and insurance. The franchise agreement may be revised periodically to adjust for changes in law, regulations, industry changes, and/or City policy, as determined by the City Manager. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.040 Requirements for authorized haulers.
A. Authorized haulers shall provide collection service for garbage, recyclable materials, and organic waste to each of their customers except those commercial generators that have submitted and received City approval of an alternative compliance form demonstrating either:
1. An approved waiver from the City for recycling requirements pursuant to EGMC Section 30.60.050 and/or an approved waiver for organic waste service requirements pursuant to EGMC Section 30.61.050; or
2. An approved service exemption due to self-hauling/back-hauling pursuant to EGMC Section 30.40.060; or
3. Compliance is achieved because the commercial generator subscribes to solid waste service from multiple haulers.
B. Prior to the start of service, the hauler shall provide all new customers with information regarding their obligation to separate recyclables and organic waste from other solid waste pursuant to EGMC Chapters 30.60 and 30.61 and, if the customer has not subscribed to recycling and/or organic waste collection service, the requirement to complete and submit an alternative compliance form pursuant to subsection (A) of this section.
C. Authorized haulers shall maintain a list of any and all commercial generators that the hauler is providing garbage collection services to but is not also providing recycling and organic collection services to that commercial generator and shall provide this list to the City upon request. Authorized haulers shall report monthly to the City any customers receiving garbage collection service that have not also subscribed to recycling and organic waste and have not submitted an approved alternative compliance form pursuant to subsection (A) of this section. The report shall include the business name of the customer, the name and contact information for the business owner or representative, and documentation detailing that the hauler has provided the information required in subsection (B) of this section.
D. Authorized haulers shall offer separate collection containers for garbage, recyclable materials, and organic waste in sizes and quantities sufficient to accommodate the volume and types of waste generated by each of its solid waste customers. Containers shall meet the provisions of EGMC Section 30.40.040.
E. If requested by a customer, authorized haulers shall equip and provide collection containers with locks and/or other suitable features to prevent illegal dumping and/or theft of recyclable materials.
F. Authorized haulers shall conduct all activities in accordance with all applicable State and local laws and best management practices.
G. Authorized haulers shall:
1. Haul all source-separated recyclable materials collected from commercial generators in the City only to a recycling center, materials recovery facility, or other similar facility that will recover the material and prevent disposal in a landfill; and
2. Haul all source-separated organic waste collected from commercial generators in the City only to an organic waste processing facility able to process organic waste such that it constitutes a reduction in landfill disposal pursuant to 14 CCR 18983.1(b);
Authorized haulers may first transport solid waste to a transfer station or similar; however, in no event shall the final disposition of recyclable materials or organic waste be at a landfill, with the exception of residual waste generated from the processing of recyclable materials and organic waste.
H. Authorized haulers, upon request, shall provide the Recycling And Waste Division with a copy of a service agreement or other document (e.g., receipt from a recycling facility) demonstrating that a commercial generator’s recyclable materials and organic waste are being taken to a facility that diverts them from landfill disposal. The service agreement or other documents shall be available for inspection by the Recycling and Waste Division at an authorized hauler’s place of business during normal business hours.
I. Authorized haulers shall provide access, during normal business hours, to all relevant records to the City or a professional auditor authorized to work on behalf of the City for the purpose of auditing any and all of an authorized hauler’s records. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.041 Requirements for service agreements.
A. Authorized haulers shall execute a written service agreement with all commercial generators before the authorized hauler begins to collect solid waste.
B. Service agreements shall incorporate, but are not limited to, the following terms and conditions:
1. Be clearly labeled as a service agreement;
2. Describe the solid waste collection services to be provided by the authorized hauler and the cost for providing such services to the customer;
3. A description of when and how rates may be escalated during the term of the agreement, if at all, as well as a description and the applicable rate for any additional fees that may be charged such as late payment fees, contamination fees, or overage fees;
4. Include service for garbage, recyclable materials, and organic waste. The agreement must specify that separate collection containers must be used for each waste type and whether containers will be provided by the authorized hauler or the customer. If all three (3) services are not provided to a customer, the service agreement must require the customer to provide evidence of an approved alternative compliance form pursuant to EGMC Section 30.50.040(A);
5. Clearly state the initial term and renewal terms;
6. Allow for any term that is mutually agreed to by the customer and the authorized hauler, but not in conflict with the hauler’s franchise granted by the City and/or applicable law, and the franchise shall be referenced in, and remain in full force and effect throughout the term of, the agreement;
7. May contain automatic renewal for successive periods of no longer than one (1) year, unless either party gives written notice of termination by certified or registered mail at least sixty (60) days prior to termination date of the current agreement;
8. May be amended as mutually agreed upon by the customer and the authorized hauler;
9. Customers are to receive a written notice of price increases not less than thirty (30) days prior to the effective date of such price increase;
10. Authorized haulers shall respond to customer inquiries regarding the service agreement within thirty (30) days;
11. Include language stating that collection containers will be removed from the property of a customer within thirty (30) days of final termination of services to the customer;
12. Not require customers to pay over three (3) months’ liquidated damages during the renewal term and over six (6) months’ liquidated damages during the initial term of the service agreement;
13. Not require a customer to give an authorized hauler the exclusive right to provide recycling and organic waste collection services as a condition of a service agreement;
14. Not require customers to give notice of any offer by a competitor or require customers to give authorized haulers the right to respond to such an offer; and
15. Franchises shall be in full force and effect for the service agreement to be effective.
C. The requirements for service agreements contained in this section shall be incorporated into all new service agreements upon enactment of this chapter. Existing service agreements between an authorized hauler and a customer, executed before the effective date of this chapter, may remain in force for the remainder of the existing contract term; provided, that such existing service agreements comply with applicable law with the recycling programs required by EGMC Chapters 30.60 and 30.61 and the edible food recovery requirements of EGMC Chapter 30.62.
D. National contracts or agreements (contracts or agreements between waste management companies and businesses that operate multiple locations in more than one (1) jurisdiction) shall be exempt from the requirements of contract length and renewal terms. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.050 Inspection of equipment and facilities.
The City may inspect any equipment, vehicles, collection vehicle loads, containers, and facilities (including, without limitation, operations and maintenance, and solid waste handling) used by an authorized hauler in connection with operating, conducting business or providing services within the City or handling solid waste collected within the City. The authorized hauler shall provide the City or its designee access to, or arrange to provide access to, facilities or equipment for the purposes of conducting inspections to verify compliance with all applicable sections of this title. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.060 Vehicles.
A. Specifications. An authorized hauler will ensure that each vehicle used for solid waste handling is kept clean and well maintained and meets the following specifications (and as may be verified or determined by the Recycling and Waste Division):
1. The storage vessels, tanks, receptacles or beds of a vehicle that holds solid waste shall be leak-resistant and made of metal or other nonabsorbent material that is impervious to liquid, and shall comply with 14 CCR 17341, as may be amended;
2. The vehicle shall be designed and constructed to minimize health and safety hazards to solid waste handling personnel and the public, and shall comply with 14 CCR 17342, and as may be amended;
3. The vehicle shall be durable, easily cleaned, and sanitized, designed for safe handling, and constructed to prevent loss of solid waste during collection or transportation (such as by having covers), and shall comply with 14 CCR 17341, as may be amended;
4. The vehicle shall have an enclosed solid waste storage or holding compartment;
5. The vehicle shall be originally constructed for, or specifically modified for, solid waste handling;
6. The vehicle shall be equipped with audible and automatic back-up warning devices; and
7. Any vehicle used for solid waste collection shall be a packer-type truck, and any vehicle used for the collection of roll-off containers shall be a flat-bed truck designed for roll-off collection, unless some other type of truck is more suitable to the varying terrain, type of solid waste or any other special conditions and is approved by the City Manager.
B. Equipping. An authorized hauler shall ensure that each vehicle used for solid waste handling is equipped with a shovel, broom, fire extinguisher, and absorbent materials for any spills, such as oil or hydraulic fluid.
C. Signs. An authorized hauler shall permanently display, in a prominent place on either the rear or both exterior sides of each vehicle used for solid waste handling, the following information, in letters at least two (2") inches high, and in a contrasting color to the body of the truck:
1. Name and phone number of the hauler, and any additional identification that complies with 14 CCR 17344, as may be amended;
2. A unique vehicle identification number; and
3. Any other information as may be determined by the City.
D. Cleaning. An authorized hauler shall keep each vehicle used for solid waste handling clean and neatly painted, and the storage vessels, tanks, receptacles, or beds shall be disinfected and sanitary. All cleaning, disinfecting, and sanitizing shall be done in a manner that prevents the propagation or attraction of flies, rodents, or other vectors, or the creation of nuisances and that complies with 14 CCR 17341, as may be amended.
E. Maintenance. An authorized hauler shall maintain each vehicle used for solid waste handling in good mechanical condition and in a manner that minimizes health and safety hazards to solid waste handling personnel and the public, and that complies with 14 CCR 17341 and 17342, as may be amended.
F. Parking and Storage. When a vehicle used for solid waste handling is not in service, the authorized hauler that owns or operates that vehicle may not park it on a public street or in a residential area of the City, except in an emergency, and shall comply with 14 CCR 17343, as may be amended.
G. Time of Collection. No vehicles used for solid waste handling may enter a residential neighborhood to service customers prior to 6:00 a.m. nor after 5:00 p.m. If containers used by a commercial generator back up to a residential neighborhood, then the same residential hauler restrictions in EGMC Chapter 30.30, or in the residential franchise agreement, apply to the authorized commercial hauler, as well.
H. Servicing of Schools. No solid waste vehicle shall remove solid waste from any location within two hundred (200' 0") feet of a public or private preschool, elementary, junior high, or high school, during the forty-five (45) minutes before the commencement of the regular school day and forty-five (45) minutes following the conclusion of the regular school day, where such locations are accessible to, and used by, children as routes to or from school. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.070 Vehicle inspections.
A. General Provisions. All vehicles and other equipment used in the collection, transportation, and disposal of solid waste from commercial generators shall be inspected annually. No vehicle shall be used in the collection and transportation and disposal of commercial solid waste within the City unless it carries a current, unrevoked sticker issued by the City authorizing such activities. An authorized hauler shall make its solid waste equipment available for inspection as requested by the City, and shall also comply with 14 CCR 17345, as may be amended.
B. Vehicle Inspections. Commencing on January 1, 2020, all authorized haulers shall submit triennially a vehicle inventory that lists (on a form provided by the City) all vehicles to be used within City limits. All authorized haulers shall also submit triennially a vehicle inspection report for all vehicles to be used by the hauler. This requirement can be met by submitting a current vehicle inspection report from Sacramento County’s Environmental Management Department (EMD) or the California Highway Patrol (Department of Transportation, Basic Inspection of Terminals (BIT)). All vehicles and containers used in the collection, removal, transportation, or storage of commercial solid waste in the City shall be subject to inspection by the City for the purposes of determining whether or not the vehicles and containers comply with 14 CCR 17341 through 17345, and as may be amended.
C. Inspection Certification. Each authorized hauler will be issued a vehicle sticker triennially for each inspected vehicle. The City’s vehicle sticker is evidence that the vehicle passed a triennial review of inspections and that the hauler is authorized by the City. Stickers will be mailed to each authorized hauler with specific instructions for displaying it on the vehicle. It is unlawful for any vehicle not clearly displaying a current sticker to collect commercial solid waste in the City.
D. Vehicle Exchange. If at any point during the triennial inspection cycle, an authorized hauler places a new vehicle into service in the City or replaces an existing vehicle, that authorized hauler shall notify the City in writing within thirty (30) days of placing the new vehicle into service. The new vehicle shall be placed on the same triennial inspection schedule as all other vehicles and shall be subject to the provisions of EGMC Section 30.50.060 and this section. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.080 Transportation requirements.
A. No Escaping Contents. Any person or entity transporting solid waste in the City shall ensure that no material drops, sifts, leaks, blows, spills, or otherwise escapes from the vehicle transporting that solid waste, and shall also be in compliance with California Vehicle Code Section 23114(a), and as may be amended.
B. Covered Loads. Anyone transporting solid waste shall cover or otherwise secure the transported load of solid waste and shall be in compliance with California Vehicle Code Section 23114(e), and as may be amended, with respect to aggregate material and California Vehicle Code Section 23115(a), and as may be amended, with respect to garbage, refuse, trash, and similar or related materials. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.090 Containers.
A. Specifications. An authorized hauler that provides containers, such as bins, dumpsters, or roll-off containers, to a commercial generator shall ensure that the containers are kept clean and well maintained and meet the following specifications (and as may be verified or determined by the Recycling and Waste Division):
1. Durable;
2. Constructed of structural steel plate, with all seams welded;
3. Nonabsorbent, watertight (to keep rainwater out of the container), and leak-resistant (to keep any liquid inside the container); a drainage plug is permissible;
4. Easily cleaned, and having an interior surface that is smooth and without projections;
5. Designed for safe handling;
6. Equipped with a noncombustible lid;
7. Adequately protected from fire;
8. Vector-resistant (including rodents, insects, and other vermin);
9. Complies with the container color and/or label requirements in EGMC Section 30.40.040(C);
10. Provide sufficient capacity to contain all solid waste in the appropriate container, with the exception of cardboard boxes, which may be separately bundled for collection if placed inside a solid waste enclosure; and
11. In compliance with 14 CCR 17315 and 17341, and as may be amended.
B. Labels. An authorized hauler that provides containers, such as bins, dumpsters, or roll-off containers, to its customers shall ensure that the containers are labeled pursuant to 14 CCR 17316 and 18984.8, as may be amended. Labels must be legible and display plainly and visibly, the following information (and as may be verified or determined by the Recycling and Waste Division):
1. The name of the hauler, in lettering no less than three (3") inches high on the outside of each container;
2. The telephone number of the hauler, in lettering no less than three (3") inches high on the outside of each container;
3. The information required in EGMC Section 30.40.040(C)(2); and
4. Labeling on each container prohibiting scavenging. All labels shall provide adequate notice to institute enforcement actions under PRC Section 41950(b), as may be amended, and shall be in substantially the following form:
The recyclables in this container are the property of an authorized hauler or recycler. It is illegal to remove recyclables from this container under the City of Elk Grove Municipal Code and Section 41950 of the California Public Resources Code. Only the authorized hauler or recycler may collect this recyclable or solid waste material. Persons other than the authorized hauler that remove materials from this container are subject to enforcement under the Elk Grove Municipal Code.
C. Maintenance and Cleaning. An authorized hauler shall maintain containers that it furnishes in the following manner:
1. In good condition (ordinary wear and tear excepted), unless the authorized hauler furnishes them under other terms, conditions, or agreements in compliance with 14 CCR 17314, and as may be amended from time to time;
2. In a clean and sound condition free from putrescible residue, and in compliance with 14 CCR 17315, and as may be amended from time to time, and free of graffiti.
D. Placement. An authorized hauler shall plan with each of its customers the location to store and set out containers in order to minimize traffic, aesthetic and other problems, both on the premises and for the general public. An authorized hauler shall comply with 14 CCR 17314, and as may be amended from time to time.
E. Noncompliance. The City may place a tag on a container that does not comply with the requirements of this section, describing the nature of the noncompliance and stating the date by which the hauler shall remedy the noncompliance. If the hauler does not remedy the noncompliance by the stated date, the City may consider the container to be solid waste and may then remove and discard it (or recycle any recyclables including the container). The City may charge the hauler for the City’s cost of removal and discard or recycling. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.100 Commercial hauler fee.
A. Authorized haulers shall pay to the City the commercial hauler fee based on gross receipts in the amount prescribed from time to time by resolution of the City Council and in accordance with the terms of this chapter. Any commercial hauler fees paid by an authorized hauler shall be in addition to any license fee, special license fee, business tax, vehicle inspection fee or other fee prescribed by the City.
B. “Gross receipts” includes all, total, aggregate, whole or entire revenue and income received by the authorized hauler for services rendered within the City without offsets or deductions such as costs, expenses, charges, losses, fees, fines, or penalties, and without regard to the identity of the customer to which that revenue or income is attributable, whether Federal, State, or local governmental entities, including, without limitation, school districts. “Gross receipts” excludes all that revenue and income for services comprised of the collection of source-separated material that is diverted from a landfill including recyclable materials and organic waste. “Gross receipts” shall not include an allocable portion of this revenue attributable to the residual waste that may result from the processing of source-separated recyclable materials and organic waste. Source-separated material cannot be mixed for further sorting at a third-party facility. Any revenue received for the collection and disposal of source-separated recyclable material or organic waste that is delivered to a landfill for disposal rather than a recycling facility or organic waste processing facility for recovery shall be included in the calculation of gross receipts.
C. Clean soil/dirt with less than five (5%) percent contamination, which can be easily cleaned, shall not be considered source-separated material that has been diverted from a landfill. Source-separated clean loads of soil/dirt do not count toward either diversion or disposal in the quarterly reports of diversion submitted to the City. Authorized haulers may consider dirt/soil to be source-separated material that is diverted only if the individual load of mixed construction and demolition debris is sorted and processed, and the resulting soil is used for beneficial reuse. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.110 Commercial hauler fees for cleanup companies.
Cleanup companies generally provide a range of temporary services, therefore the traditional formula of reporting gross revenue subject to the commercial hauler fee does not apply well to a cleanup type of business. The City shall establish a gross revenue estimate due the City based on the weight (tonnage) of solid waste hauled by a cleanup company for the month. Cleanup companies will establish gross revenue based on tons disposed, which will not be linked to the actual revenue they may receive during the monthly reporting period. The method for determining that estimate will be set by resolution of the City Council. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.120 Disputes.
A. At the direction of the City, authorized haulers claiming that specified gross receipts should be excluded from the calculation of commercial hauler fees will sort source-separated materials or characterize or analyze those source-separated materials by weight, in a manner satisfactory to the City in order to establish, to the satisfaction of the City, that they are source-separated materials as defined in EGMC Section 30.10.010(S).
B. Disputes over whether certain gross receipts are excluded from the calculation of commercial hauler fees will be resolved by the Director of Public Works. The Director of Public Works’ decision may be appealed in writing to the City Manager, or the City Manager’s designee, explaining the basis of the appeal, within twenty (20) days of the Director of Public Works’ decision, and accompanied by a prepayment of the City’s projected costs and expenses of conducting the appeal, including related staff time and any consultant fees. The burden of proof will be on the authorized hauler challenging the Director of Public Works’ decision. The City Manager, or City Manager’s designee, will hear the appeal and render a written decision that will be final. The City will return any excess prepayments to the authorized hauler within thirty (30) days of rendering the written decision on the appeal, or the authorized hauler will reimburse the City any additional costs and expenses within thirty (30) days of the City’s documented request following the decision on the appeal. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.130 Customer invoices.
Authorized haulers may not separately itemize commercial hauler fees in an amount greater than that set by resolution of the City Council on their bills, invoices, or other documentation that the authorized haulers distribute to their customers or to the general public. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.140 Time and manner of payment.
A. Authorized haulers shall pay the commercial hauler fees monthly, due and payable on or before the first day of the second (2nd) month immediately following the month in which they received gross receipts from their customers. For example, for gross receipts received in July, authorized haulers shall remit the corresponding monthly commercial hauler fee on or before September 1st.
B. Authorized haulers shall pay the commercial hauler fees via electronic funds transfer (EFT) whenever feasible; electronic payment instructions can be obtained by contacting the City’s Finance Department. All other payments shall be directed to the following address with a memorandum stating “Commercial Hauler Fees”:
City of Elk Grove
Attention: Finance Department
8401 Laguna Palms Way
Elk Grove, CA 95758
C. The City may direct payment to another address without amendment to this section by written direction by the City to the authorized haulers. The commercial hauler fees will be deemed paid at the following times:
1. On the date of personal delivery during hours that City Hall is open for business to the public;
2. The date of postmark of mailed delivery with the United States Postal Service; or
3. Another date that is proven to the satisfaction of the City that the commercial hauler fees were deposited via EFT, personally delivered to City Hall, deposited in the mail, or sent using another delivery service on or before the date the payment is due. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.150 Payment security.
A. For existing authorized haulers, payment security to secure payment of the commercial hauler fees to the City shall be required upon occurrence of any of the following within the preceding twelve (12) month period:
1. Delinquency of payment to the City of commercial hauler fees, assessment of fees for late payments, penalties, and/or interest;
2. Delinquency of payment to the City of costs associated with authorized hauler audits; or
3. Delinquency of any other payments owed to the City related to commercial hauler authorization.
B. For new authorized haulers with no prior history with the City, the authorized hauler shall be required to provide a payment security to the City unless the authorized hauler applicant provides the City with a written credit reference from another city or public entity demonstrating no instances of late or nonpayment for the twelve (12) consecutive months preceding the hauler’s application to the City. The reference must be from a city or public entity in the same geographic region.
C. The payment security must be approved by the City Manager or his/her designee and shall be in the form of a cash deposit, a certificate of deposit or such other form as may be approved by the City Manager, in an amount equal to the greater of the following amounts:
1. One-half (0.5) of the amount of commercial hauler fees received from the authorized hauler in the prior calendar year;
2. The total amount of commercial hauler fees received during the preceding one hundred eighty (180) days; or
3. For newly authorized haulers only, the amount of payment security shall be ten (10%) percent of half (0.5) of the projected gross revenue for the first twelve (12) months following authorization, or another calculation as may be approved by the City Manager.
D. Any payment security collected by the City shall be returned to the authorized hauler if that hauler has paid all amounts owed to the City, including, but not limited to, commercial hauler fees, authorized hauler audit fees, commercial hauler authorization fees, late report fees, and late payment fees and interest, and meets either of the following criteria:
1. The authorized hauler ceases doing business in the City and provides documentary evidence to the City to that effect; or
2. The authorized hauler is not required to provide a payment security under subsection (A) of this section. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.160 Late payment fees.
A. If an authorized hauler does not fully and timely pay its commercial hauler fees in accordance with EGMC Section 30.50.140, the authorized hauler shall pay a late fee and, if applicable, an outstanding balance fee, in an amount set by resolution of the City Council. Late fees apply, without limitation, to instances where the failure to fully and timely pay fees due was discovered during a review of the authorized hauler’s monthly or quarterly reports, during an on-site review of the authorized hauler’s records, or during a professional audit pursuant to EGMC Section 30.50.200.
B. As a result of a professional audit, if it is determined that an authorized hauler did not fully and timely pay its commercial hauler fees in accordance with EGMC Section 30.50.140, the authorized hauler shall pay the unpaid commercial hauler fees plus a late fee as set by resolution of the City Council, plus interest at a rate set by resolution of the City Council, or the maximum amount permitted by law. Late fees apply, without limitation, to instances where the failure to fully and timely pay was discovered following an audit of the authorized hauler’s records or reports in accordance with EGMC Section 30.50.200. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.170 Credit for overpayment.
If an authorized hauler believes it has paid commercial hauler fees in excess of the amount owed the City, it may request a refund by application in form and manner satisfactory to the City. Upon submission of both request and documentation satisfactory to the City, the City may refund the excess amount or credit it against future payments of commercial hauler fees. Authorized haulers may not credit or offset any claimed excess payments of commercial hauler fees to future payments of fees or other amounts due the City without first obtaining the written consent of the City Manager. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.180 Records.
A. Authorized haulers shall maintain accurate and complete books and accounts of all gross receipts and records documenting and supporting those books and accounts and shall maintain driver dispatch logbooks that track the jurisdiction, job site, material type and container volume for the bins collected by load.
B. Authorized haulers shall maintain records of the hauler’s operations and business conducted, and the types of service provided in the City including, without limitation, the types and amount (by weight and/or volume) of all solid waste material that the hauler collects in the City; the materials recovered, transferred, processed, and disposed; and all facilities where the hauler delivers the solid waste.
C. Authorized haulers shall maintain records of all dump tags, driver dispatch log books and/or other documentation used by the hauler to record the revenue received for all solid waste hauled to landfills, and report to the City whether or not that documentation is tracked using unique numbers in consecutive order to allow receipts, adjustments and cancellations to be properly controlled and then reconciled to cash receipts and cancellations in the hauler’s general ledger and permit fee reports.
D. Authorized haulers shall maintain records of any and all contamination monitoring activities completed including inspection records, remote monitoring records, and the amount and type of any contamination fees charged.
E. Authorized haulers shall provide copies of records or make such records available for viewing upon request during normal business hours. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.190 Reporting.
A. Monthly Revenue Reporting. Authorized haulers shall report monthly the total gross receipts and commercial hauler fee due the City each month in the form and manner satisfactory to the City. The City reserves the right to require authorized haulers to provide any and all such documentation that it deems necessary to support the reported commercial hauler fee due the City along with each monthly revenue report. The monthly revenue report is due on or before the first (1st) day of the second (2nd) month immediately following the month in which the hauler received the gross receipts from their customers. For example, the January monthly revenue reporting form is due on or before March 1st. Payment of the commercial hauler fee shall accompany the monthly revenue report.
1. Together with the monthly revenue report and the payment of the commercial hauler fees, the person submitting the payment and the chief financial officer of the authorized hauler, or another person acceptable to the City Manager, shall submit the following representation and warranty:
I represent and warrant, under penalty of perjury of the laws of the State of California, that I am familiar with the financial transactions of [INSERT NAME OF AUTHORIZED HAULER] and am responsible for keeping and maintaining its financial records, including gross receipts thereof as defined in EGMC Section 30.50.100(B), and I have reviewed the information presented in this statement, and that, to the best of my knowledge and belief after inquiry, the statement is true, correct, and complete.
2. The City may rely upon documentation as well as representations and warranties filed by authorized haulers, but that documentation and those representations and warranties will not be deemed conclusive as to the information presented or statements made therein. Authorized haulers’ submission of documentation and representations and warranties does not preclude the City from taking additional measures and actions to determine and collect commercial hauler fees due and payable.
B. Monthly Contamination Monitoring Reporting. Authorized haulers shall submit a report monthly detailing all contamination monitoring activities undertaken by the authorized hauler including, but not limited to, number and location of inspections, remote monitoring findings by customer or container, copies of any notices issued to customers, and the amount of any contamination or overage fees charged to customers listed by customer name.
C. Monthly Noncompliant Customer Reporting. Authorized haulers shall submit a report monthly listing any and all commercial generators that the hauler is providing garbage collection services to but is not also providing recycling and organic collection services pursuant to EGMC Section 30.50.040(C).
D. Quarterly Tonnage Reporting. Authorized haulers shall report quarterly a summary of the quarterly revenue received and hauler fees paid. Authorized haulers shall also report quarterly on the total tonnage of solid waste collected in the City and the total tonnage of material diverted of each waste type (e.g., mixed recyclables, green waste, food waste, etc.) for purposes of calculating the diversion rate for the hauler. The quarterly report shall be submitted in a form and manner satisfactory to the City and is due on or before the first (1st) day of the second (2nd) month immediately following the end of the quarter (the first (1st) quarter is January through March, the second (2nd) quarter is April through June, the third (3rd) quarter is July through September, and the fourth (4th) quarter is October through December). All tonnages and the calculated diversion rate shall be rounded off to the nearest tenth (10th).
E. Annual Customer Information Reporting. Authorized haulers shall report the following information in a form and manner satisfactory to the City annually on or before February 1st of each year; the City may require the information to be reported more frequently to meet State requirements:
1. A list of all customers serviced in the City including the following information for each customer:
a. Name of customer or business receiving service;
b. Address of service location;
c. Mailing address of customer if different than service location;
d. Name and phone number of each customer or entity’s point of contact; and
e. Weekly service volume for each waste type.
2. A list of all solid waste disposal, materials recovery, organic waste processing, or other facilities to which the hauler delivered materials directly or to which materials collected in the City were ultimately delivered for processing, recovery or disposal in the prior calendar year including the following information for each facility:
a. Facility name and location;
b. The Recycling and Disposal Reporting System (DRS) number of each facility;
c. Written notice from each facility that accepts organic waste collected in plastic bags indicating that the facility can process and remove plastic bags when recovering organic waste; and
d. Written notice from each organic waste processing facility that accepts compostable plastic material for processing indicating that the facility can process and recover that material.
F. Annual Customer Compliance Reporting. Annually, on February 1st of each year, authorized haulers shall submit a report in a form and manner satisfactory to the City detailing each customer’s compliance with the requirements of EGMC Chapters 30.60 and 30.61 and 14 CCR 18984.9 and 18984.10 during the prior calendar year. Reports shall include the following information for all customers serviced by the authorized hauler located in the City:
1. Identify the total number of customer accounts in the City and the total number of covered generators;
2. Identify the number of covered generators that:
a. Subscribe to recycling service;
b. Do not subscribe to recycling service;
c. Subscribe to organic waste recycling service;
d. Do not subscribe to organic waste recycling service;
3. The total weekly yardage of solid waste collection service for each service type (garbage, recyclable materials, and organic waste) provided to covered generators during the reporting period.
G. Delinquent Report Fees. If any report required by this chapter is not filed, and fully accurate, by the due date specified for each report, the report shall be deemed delinquent, and the authorized hauler shall pay to the City a delinquent report charge in amounts set by resolution of the City Council.
H. An authorized hauler’s failure to file the reports required by this chapter shall constitute cause for termination or suspension of its authorization.
I. The Recycling and Waste Division shall provide and establish guidelines, forms, and other appropriate material to assist authorized haulers and self-haulers/back-haulers in preparing the reports required by this chapter.
J. Authorized haulers shall submit any additional reports as requested by the City, at the time, in the manner, and in form and substance satisfactory to the City. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.200 Audit.
The City, or its contracted auditor, may audit the books, accounts and records of authorized haulers and authorized haulers shall provide the City, or its contracted auditor, with copies requested thereof within two (2) weeks of the City’s or auditor’s request or access thereto at locations within the County. The City or its contracted auditor may elect to perform an on-site review of all internal controls over accounting for disposal tonnages, including the handling of dump tags/dispatch logs or other documentation used by authorized haulers to determine revenue for solid waste hauling and the corresponding hauler fees paid to the City. Records may include, without limitation, financial and operating records with respect to gross receipts, detailed lists of all transactions linked to the driver dispatch log, as well as customer subscriptions and accounts establishing a location within the City, and any other records described in EGMC Sections 30.50.180 and 30.50.190. If the City’s audit demonstrates to the satisfaction of the City that the amount of commercial hauler fees remitted by the authorized hauler to the City was in error, then within thirty (30) days following the City’s submission of the results of the audit to the authorized hauler, the authorized hauler shall pay the City the following amount:
A. The understated or unpaid commercial hauler fees; plus
B. The late fees required by EGMC Section 30.50.160. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.210 Insurance.
A. Each authorized hauler shall maintain, at its own expense, insurance coverage as specified in the franchise agreement, or as established by the City Manager. All such insurances shall remain in effect, uninterrupted, throughout the term of the commercial hauler authorization.
B. The minimum insurance coverage shall include the following items, in amounts determined by the City Manager: Insurance Services Office commercial general liability coverage, Insurance Services Office covering automobile liability, worker’s compensation insurance as required by the Labor Code of the State of California and employer’s liability insurance.
C. Each authorized hauler shall serve the City with notice, in writing by certified mail, within two (2) days of any notices received from any insurance carriers providing insurance coverage, as required, that relate to the suspension, voidance, cancellation, termination, reduction in coverage or limits, nonrenewal, or material changes of coverage, proposed or otherwise.
D. Any act, omission or circumstance which results in the authorized hauler being out of compliance with the requirements of this section shall constitute grounds for the immediate suspension of the right to collect solid waste, without advance notice or hearing, pending reestablishment of compliance by the authorized hauler with the requirements hereof. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]
30.50.220 Liability for damages to the City or for operating without a contract.
A. Haulers authorized under this chapter shall be liable to the City for all damages proximately caused or resulting from the failure of the authorized hauler to faithfully observe and perform any provisions of such authorization and/or any provision of this chapter. If legal proceedings are necessary to enforce the provisions of the authorization against any authorized hauler, said hauler shall be liable for the value of the services, fees and costs of attorneys and of other personnel as well as the expenses of the City that are necessary to gain compliance, provided the City is the prevailing party in that matter.
B. Except as provided in EGMC Section 30.50.010(B), any person or entity providing services consisting of collecting, transporting, or disposing of solid waste in the City without the benefit of a valid authorization with the City shall be subject to criminal prosecution for violation of this title, as further set forth in EGMC Title 1, and shall be liable to the City for the value of the services, fees and costs of attorneys, other personnel, and expenses of the City. Such person or entity shall also be liable for the fees the City would have been entitled to if said person or entity had been the duly authorized hauler under contract with the City. [Ord. 27-2021 §3 (Exh. A), eff. 11-26-21]