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HomeMy WebLinkAbout09142015 City Council Work Session Notes - Garbage Policy WORK SESSION NOTES ON as IUGt £ C Purpose: 6of lla Q �,� Coilf( (i4( j -dog! : -1 (lj Present: Council Members Present: V {a v n rr / ��nne �grnha� � is) ,u �r � �!rr �a , t v►� , tr(k a&t' Uj IBJ >T� Called by: l dU Time: CJ :00 Date: q- K. /5 *********************xx.x*****************>;cxxxxxx**** if frin4\ < L& ats- U bi, v{ v--11 IA. or a. v - Mime fl�,mti ra _ - CCil��iLIe `LKG+w2 /�7 I fl(C-0114)1?1� ✓ VfDdfi/I f 'ws1P COW) b101/ w/ 1tiuH1 akra'Yst Poor ,dna r 1)1 J ) 4 City Council Work Session on Refuse Ordinance Fact Sheet September 14, 2015 • The City of Seward maintains a Certificate of Public Convenience and Necessity No. 618 through the Regulatory Commission of Alaska for refuse services within Seward City limit boundaries (attachment',"). • Alaska Statute requires the regulation of public utilities''', including refuse. The Regulatory Commission of Alaska is assigned responsibility for regulating public utilities. • Regulation under the Regulatory Commission of Alaska is intended to allow and regulate an exclusive franchise for a geographical area'. In other words,there is no other contractor with a valid permit,to provide refuse services within the Seward City Limits. • The City has contracted with a private contractor to provide refuse services since at least 1974 when it contracted with Herman Leirer dba Seward Service, rather than invest in the equipment and personnel to provide this service. • The City's current waste management contract was approved by the Seward City Council on August 13, 2012 via Resolution 2012-068". The contract period is from January 1,2013 to December 31, 2019,with an option to extend for three additional years'. The franchise agreement was approved by Seward City voters on October 2, 2012' by a vote of 246 to 114,or 68%approval. • Seward City Code mandates payment for refuse services (SCC 14.05.010). • Seward City Code authorizes discontinuation of utility service based on nonpayment of any bills for utility service (SCC 14.01.065(a)(5)). Recent customer complaints: 1. Objection to the City's mandatory garbage service for those who prefer not to have the service,especially by those who do not live in Seward other than seasonally. 2. Objection to the City having the ability to disconnect other utility services for unpaid refuse bills. 3. Request for waivers from the mandatory service for certain demographics (i.e. individuals on fixed income, individuals on disability,seasonal residents). City Council asked for proposed revisions to the City's refuse Ordinance. Draft Ordinance attached. Changes include: 1)clarifies refuse billing is not required on vacant lots; and 2) mandatory refuse service does not preclude individuals from disposing of their own refuse but still requires payment for refuse service. Previous discussion items included whether to exempt any demographic group from requirement to pay for refuse;whether to eliminate mandatory garbage service requirements;whether to allow customers to request a three-month "vacation status"from refuse billing;and whether the City could shut off other utilities for refusal to pay. There appeared to be no consensus to change these other provisions. 'Regulatory Commission of Alaska Certificate of Public Convenience and Necessity No.618 "Regulatory Commission of Alaska Order Approving Application for Certificate and Closing Docket, U-99-22 Order No. 1 dated July 25,2000. "'Alaska Statute 42.05 Alaska Public Utilities Regulatory Act "/Regulatory Commission of Alaska Map of Refuse Utility Service Area Seward City Council Resolution 2012-068 approved August 13,2012 "'City of Seward refuse franchise agreement with Alaska Waste effective January 1,2013 ""Proposition language: "Do you approve a seven-year franchise agreement with Alaska Waste...for the collection and disposal of garbage and refuse? The franchise agreement contains an option to extend for up to an additional three years. The agreement allows for costs to be adjusted annually based on 140%of the consumer price index. The agreement provides an opportunity for period rate reviews with all other consumer rates to be set by resolution of the City Council." Sponsored by: Hunt Introduction: Public Hearing: Enactment: CITY OF SEWARD, ALASKA ORDINANCE 2015-XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING PORTIONS OF SEWARD CITY CODE § 14.05.101 REFUSE SERVICE PROVIDED AND REQUIRED, TO CLARIFY THAT REFUSE BILLING IS NOT REQUIRED ON VACANT LOTS AND THAT MANDATORY REFUSE SERVICE DOES NOT PRECLUDE INDIVIDUALS FROM DISPOSING OF THEIR OWN REFUSE, BUT STILL REQUIRES PAYMENT FOR REFUSE SERVICE WHEREAS,the Seward City Code provides for mandatory refuse service in order to protect public health and hygiene,remove incentives to dump trash in public receptacles or in trash cans of other paying customers, equitably share the cost of this public health service, and reduce the likelihood of trash being otherwise improperly disposed; and WHEREAS, the City of Seward maintains a Certificate of Public Convenience and Necessity with the Regulatory Commission of Alaska, for the purpose of regulating refuse service within the prescribed boundaries of the Seward City Limits; and WHEREAS,the City has,for decades,contracted out refuse collection and disposal through a competitive bid process resulting in a franchise agreement with a private sector refuse company as allowed by City Code,to avoid the need to equip and operate this service utilizing public employees; and WHEREAS, past practice has been to exempt vacant lots from payment of refuse charges and Codification of this practice will exempt properties which have no commercial or residential structures. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, HEREBY ORDAINS that: Section 1. Seward City Code Section 14.05.010 is amended as follows: (Deletions are Bold StrikethFoughs; Additions are Bold Underline) 14.05.010.- Refuse service provided and required. (a) Every person occupying and/or owning any house, apartment building, duplex, triplex, condominium,townhome,mobile home park or home outside of a mobile home park, trailer, other residential or commercial dwelling or commercial building, including Z CITY OF SEWARD,ALASKA ORDINANCE 2015-XXX buildings under construction, within the city shall use the system of refuse disposal provided in this chapter,unless the person utilizes a carrier holding a valid permit from the Regulatory Commission of Alaska. (b) The city shall either provide or contract for collection and disposal of refuse. The public works department of the city or the contractor shall prescribe routes and days for collection. When such routes or days are established or changed,reasonable notice thereof shall be given to affected customers. No other carrier other than one authorized by the Regulatory Commission of Alaska may collect,dispose,or remove refuse from any premises in the city. Nothing in the preceding sentence is-seetion shall be deemed to prohibit an occupant and/or owner from removing or causing the removal of refuse accumulated on the premises occupied by him and disposing of the same in a lawful manner. Disposing of one's own refuse does not eliminate the requirement to pay for solid waste service. Section 2. This ordinance shall take effect 10 days following its enactment. PASSED AND APPROVED by the City Council of the City of Seward,Alaska, this day of , 2015. THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) 3 u�atory Commission o fAIask egs Certificate of Public Convenience and Necessity No. 618 Having found that the grantee of this certificate is fit,willing,and able to provide the utility services applied for and that such services are required for the convenience and necessity of the public, the Regulatory Commission of Alaska,pursuant to the authority vested in it by AS 42.05, hereby issues this certificate of Public Convenience and Necessity to CITY OF SEWARD authorizing it to operate a public utility,as defined by AS 42.05.990(4)(F)for the purpose offurnishing REFUSE SERVICE This Certificate is issued under, and subject to, the provisions of AS 42.05 and all rules, regulations, and orders from time to time promulgated by the Commission governing the rates, charges, services,facilities, and practices of utility operations of the kind authorized herein. The specific nature,scope, terms, conditions,and limitations of the authority granted by this Certificate, as amended to date,are set forth in the appendix hereto and in the following order(s)of the Commission which, by this reference,are incorporated in and made a part hereof as though fully set forth herein. Docket No. Date of Order U-99-22(1) July 25,2000 (Chronology and service area description shown on the attached Appendix A) IN WITNESS THEREOF,the undersigned members of the Commission have executed this Certificate of Public Convenience and Necessity at Anchorage,Alaska on this I7th day of January 2003. Regulatory Commission of ✓Ilaska • (CHAIR) (COMMISSIONER) (COMMISSIONER) (COMMISSIONER) APPENDIX A Certificate of Public Convenience and Necessity No.618 Granted to CITY OF SEWARD (Refuse Utility) DESCRIPTION OF SERVICE AREA: T1 N R1W Sections: 28, 33, 34, and the SWY2 of Sections 27 and 35 drawn on a diagonal from the NW to the SW corner of those sections T1S R1 E Sections: 7, 8, 9, 16, and 17 T1S R1W Sections: 1, 2, 3,4, 9, 10, 15, and 16 (All of the above in reference to the Seward Meridian) CHRONOLOGY: Certificate Granted: 07/25/00 (U-99-022(1)) Appendix A-Certificate No.618 Issued January 15, 2003 Page 1 of 1 Note:The service area description and history log in this document are for reference only. The controlling document is the Commission Order which modified the Certificate and Appendix A. S 1 STATE OF ALASKA 2 THE REGULATORY COMMISSION OF ALASKA 3 Before Commissioners: G. Nanette Thompson, Chair 4 Bernie Smith Patricia M. DeMarco 5 Will Abbott 6 James S. Strandberg 7 In the Matter of the Application by CITY OF ) SEWARD for a Certificate of Public ) U-99-22 8 Convenience and Necessity for Refuse Utility ) Operations ) ORDER NO. 1 9 ) 10 ORDER APPROVING APPLICATION FOR CERTIFICATE AND 11 CLOSING DOCKET 12 BY THE COMMISSION: 13 Background 14 On March 3, 1999, the City of Seward (Seward) filed an application for a 15 16 certificate of public convenience and necessity for its refuse utility. On March 26, 1999, the application was noticed to the public with a closing date of .Co M 17 R v April 27, 1999, for the submission of comments in support of, or in opposition to, the Q lop_ 18 • ai 19 application. No comments were received in response to the notice. N- oco rn Seward made additional filings at the request of the Commission Staff ( N 20 E ' QE -E (Staff) on March 30, 1999, April 14, 1999, June 23, 2000, and July 3, 2000. O < ats 21 �� RI 22 Staff reviewed the filings in this proceeding and, on July 6, 2000, Nc4 co• a) 23 submitted its analysis and recommendation (Report) thereon. Staffs Report sets out • a a in detail the history of the proceeding, the public noticing of the application, and Staffs c 2 25 findings and recommendations regarding disposition of the application. Staff 26 recommended that the Commission approve Seward's application, and approve the U-99-22(1) - (7/25/00) Page 1 of 3 4° 11 I I service area described in Attachment JAK-1 to Staffs Report. A copy of Staffs Report 2 is attached to this Order as an Appendix. 3 Discussion 4 Based on its review of the record in this proceeding, the Commission 5 finds that the public convenience and necessity require the provision of refuse public 6 utility service within the areas described in Staff's report and that Seward is fit, willing, 7 and able to furnish the proposed service. Accordingly, the Commission will approve 8 Seward's application and accept the map and service area filed by Seward. 9 With approval of the application, there are no outstanding substantive or 10 procedural issues to be disposed of in this proceeding, and there are no allocable 11 costs under AS 42.05.651 and 3 AAC 48.157. Therefore, this Docket should be 12 closed. 13 14 ORDER 15 THE COMMISSION FURTHER ORDERS: 16 1. The application filed by the City of Seward for a certificate of public Y o M 17 convenience and necessity to furnish refuse public utility service to the area described u Lc) ? 18 in Attachment JAK-1 of the Appendix attached hereto is approved. c - 19 ozaso . ami N rn 20 > � "EmQQ E r 21 E° N 22 O �tcp U 3 cN 23 )N- CD ‘" 0 24 25 26 U-99-22(1) - (7/25/00) Page 2 of3 -3" 12 1 1 2. Docket U-99-22 is closed. 2 DATED AND EFFECTIVE at Anchorage, Alaska, this 25th day of July, 2000. 3 BY DIRECTION OF THE COMMISSION 4 (Commissioner Will Abbott, not participating.) 5 6 7 8 9 - 10 11 12 13 14 15 16 Yo c 17 01 co Q0_1?o� 18 ocnrn� 19 c �Q'r� o yiaCicYnel 20 > co I= QQ E r 21 0 X N V r C N oc22 p O -6 co v� QN 23 c cc rn 24 25 26 U-99-22(1) - (7/25/00) Page 3 of 3 13 0 STATE OF ALASKA The Regulatory Commission of Alaska 1016 West Sixth Avenue, Suite 400 Anchorage, Alaska 99501 MEMORANDUM TO: Commissioners: DATE: July 24, 2000 G. Nanette Thompson, Chairman Bernie Smith Patricia M. DeMarco Will Abbott James S. Strandberg FROM: James Keen, Utility Engineer Subject: U-99-22, In the Matter of the Application by CITY OF SEWARD for a Certificate of Public Convenience and Necessity for Refuse Utility Operations - Staff Recommendation. Statement of Case Before the Commission is an application by the City of Seward(Seward)to obtain a Certificate of Public Convenience and Necessity for authority to provide refuse utility service within city limits. Recommendation The Commission Staff(Staff)recommends that: 1) The Commission approve the refuse application made by Seward to acquire a Certificate of Public Convenience and Necessity. a) The Commission find that refuse utility service is required for the public convenience and necessity in the area Seward is requesting. b) The Commission find that Seward is fit,willing, and able to provide the proposed service. 2) The Commission accept the tariff filed by Seward, and 3) The Commission approve the service area included as attachment JAK-1 to this recommendation Memorandum—U-99-22,City of Seward—Refuse Utility • ORDER U-99-22(1) July 24,2000 APPENDIX Page 1 of 6 "-ge 1 of 7 61 14 Procedural History On March 11, 1999, Seward filed an application for a certificate of public convenience and necessity for its refuse utility. This application was noticed to the public with a closing date of April 27, 1999, for the submission of comments in support of, or in opposition to, the application. No comments were received in response to the notice. Seward made additional filings on March 30, 1999, supplying technical information requested by Staff and on April 19, 1999, supplying a USGS Service Area Map requested by Staff. On June 23, 2000, Seward filed a copy of its FY99 annual financial report. Finally,on July 3, 2000, Seward filed a verification of its service area based upon the service area proposed by Staff. Issues 1) Whether Seward should be granted a certificate of Public Convenience and Necessity a) Whether granting of the certificates is required for the public convenience and necessity b) Whether Seward is fit,willing, and able to provide refuse utility service in the requested area. 2) Whether the tariff filed in conjunction with this proceeding should be accepted. 3) Whether the service area requested by Seward be approved. 4) Whether any conditions should be placed on the certificate Analysis Public Convenience and Necessity Is granting a certificate required for the Public Convenience and Necessity? According to AS 42.05.221, a public utility may not operate and receive compensation for providing a commodity or service without first having obtained from the Commission a certificate declaring that public convenience and necessity require or will require the service. The following is an excerpt from Seward's Statement of Public Benefit. Seward has been providing garbage service since at least 1974 when it contracted with Herman E. Leirer d/b/a Seward Service. In 1990,Herman Leirer sold his business to Jason McDonald d/b/a Jason Enterprises. The City assigned the remainder of the contract to Jason McDonald until October 1992 when the City entered into a Franchise Contract with Jason Enterprises. The contract was extended in September 1997 to December 31, 1998. In June of 1998,Jason McDonald sold his business to USA Waste of Alaska, Inc and the City assigned the contract to them. Memorandum—U-99-22,City of Seward—Refuse Utility ORDER U-99-22(1) July 24,2000 APPENDIX Page 2 of 6 Page 2 of 7 )0 15 The City of Seward has a long history of providing refuse services to its residents. The service has been provided on a contract basis in order to provide good services while maintaining control of the refuse utility. The City is able to handle billing,customer request and complaints, as well as discontinuing customers, all at a central location. This arrangement has provided an excellent service to the community while maintaining a reasonable rate for the services. The City and its citizens are concerned about the appearance of its community and have thus provided regulations that require all residents to utilize and pay for the service. This in turn has provided the revenues sufficient to provide a good service to the community and help beautify the community at the same time. Based on the above, Staff believes the Commission should find the public convenience and necessity requires the proposed service within the city limits of Seward. Fitness.Willingness, and Ability Is Seward fit,willing and able to provide refuse utility service in the requested service area? AS 42.05.241 states that a certificate may not be issued unless the Commission finds that the applicant is fit,willing, and able to provide the utility services applied for and that the services are required for the convenience and necessity of the public. Managerial and Technical Fitness As explained above, Seward contracts out the refuse utility service to USA Waste(USA) for its residents. The resumes of the key management personnel indicate that they have a strong background in city and financial management that will enable them to competently manage the service. In addition,the Commission has found USA to be technically competent to provide refuse service in the service area previously served by Jason Enterprises'. USA will be utilizing a 1996 Peterbilt 320 Refuse truck and a 1982 International Harvester Rolloff Truck to provide service in Seward. All refuse collected in Seward is currently being delivered to the Kenai Borough Solid Waste Transfer Facility, located in Seward. The refuse is then transferred to the Kenai Peninsula Borough Baling facility in Soldotna. Finally, the bales are disposed of in the Kenai Borough landfill facility located near Soldotna. The Kenai Peninsula Borough holds the required permit from the Alaska Department of Environmental Conservation(ADEC). The ADEC does not require the refuse hauling vehicles to have a permit. Based on the above, Staff recommends the Commission finds Seward managerially and technically fit,willing, and able to provide the requested service. Financial Fitness 'USA Waste was granted a conditional transfer of Certificates of Public Convenience and Necessity 211,previously held by Jason Enterprises,in Order U-98-171(1). Memorandum—U-99-22,City of Seward—Refuse Utility ORDER U-99-22(1) July 24,2000 APPENDIX Page 3 of 6 Page 3 of 7 16 Staff recommends that Seward's audited financial statement for FY 99, as filed in Docket U-99- 22,be used as an indicator of its financial fitness because the financials have been independently audited and show the financial results of the utility combined with the other accounts from the city. As Seward will not be subject to economic regulation under AS 42.05.711(b), it will not be required to develop cost based rates and can develop rates that do not follow the traditional rate making methodologies. Based upon the financial statements provided, Seward does not subsidize its refuse utility service from other general fund accounts. Seward charges its customers for refuse pick-up according to the rate table below. Compared to rates charged by other Alaskan refuse utilities, Seward's rates are very reasonable. Businesses—Basis for Monthly Fee No. Pickups per First Can Each Additional Week Can 1 $8.65 $3.90 2 $17.30 $7.80 3 $26.80 $11.70 4 $34.60 $15.60 5 $43.25 $19.50 6 $51.90 $23.40 Offices, wastepaper $5.40 $3.25 only(1 Pickup) Residential—Basis for Monthly Fee Dwelling Type Monthly Rate Pack-Ont Service Fee Single Family Residence $10.85 $14.05 Apartments(more than 2 units $9.90 $2.60/dwelling unit having common cans, each unity billed individually) Apartments(more than 2 units $9.25 $2.60/dwelling unit having common cans,with a single billing to the Landlord) According to Seward's audited financial statements for FY99,the city received $43,975 in revenue. This sum is 12.5%of the Total Revenues collected by Seward. The other 87.5%of the revenue is paid to USA Waste. Seward does not keep track of billing expenses directly attributed to its refuse utility and was therefore unable to accurately calculate Total Operating Expenses. Memorandum—U-99-22,City of Seward—Refuse Utility ORDER U-99-22(1) July 24,2000 APPENDIX Page 4 of 6 Page 4 of 7 12 17 As a whole,the financial fitness of the City of Seward is strong. Seward had total Assets, Liabilities, and Capital of$184,137,950, $24,613,264, and$159,524,686 respectively. Total Revenues for the city were $7,322,027, and Total Expenditures were$7,052,277,providing a Net Profit of$269,750. After net funds transferred to and from other accounts were considered,the net excess of revenues added to the fund balance totaled$419,955. This indicates that the overall city is lucrative and self-sustaining. Staff concludes that the self-sustaining city funds, in conjunction with the general authority of the City to levy taxes, shows the applicant to be financially fit. Based upon the above, Staff believes the Commission should find that Seward is overall fit, willing, and able to provide the proposed service. Tariff Should the tariff filed in conjunction with this proceeding be accepted? The Commission,according to AS 42.05.711 (b), does not economically regulate Seward because it is a public utility owned by a political subdivision of the state. However, a copy of its tariff for the refuse utility was filed with the Commission for review. Staff reviewed the submitted tariff and found it to be sufficient and accurate. Based on the above, Staff recommends that the tariff submitted by Seward be accepted. Service Area&Map Should the service area description and map filed in conjunction with this proceeding be approved? The service area request submitted by Seward includes the area surrounding and within the City limits of Seward on both the East and West banks of Resurrection Bay. Seward has expanded its city limits since the original service area was granted to USA. Part of Seward's new corporate city limits includes a small area of land within the approved service area of USA. Seward determined that rather than forcing this area of land to be annexed by the city so that it could control refuse development,it would continue to allow USA to maintain control of the refuse market in that area. A USGS map delineating the requested area was submitted and reviewed by Staff. Staff finds this request to be reasonable and recommends the service area included as attachment JAK-1 be approved. Conditions What conditions,if any,will be imposed upon Seward? Seward has fulfilled all of the requirements for certification and therefore does not need any conditions to be imposed. Conclusion Memorandum—U-99-22,City of Seward—Refuse Utility ORDER U-99-22(1) July 24,2000 APPENDIX Page 5 of 6 Page 5 of 7 I3 18 For the reasons stated above, Staff believes that refuse utility service is required for the public convenience and necessity in the area Seward is requesting and that Seward is fit, willing, and able to provide the proposed service. Therefore, Staff recommends that the application for a certificate of public convenience and necessity for the refuse utility be approved. Memorandum—U-99-22,City of Seward—Refuse Utility ORDER U-99-22(1) July 24,2000 APPENDIX Page 6 of 6 Page 6 of 7 I � 19 "APPENDIX A" Certificate of Public Convenience And Necessity No. ?granted to THE CITY OF SEWARD (Refuse Utility) DESCRIPTION OF SERVICE AREA: T1N R1W Sections: 28, 33, 34, and the SW Y2 of Sections 27 and 35 drawn on a diagonal from the NW to the SW corner of those sections T1S R1E Sections: 7, 8, 9, 16, and 17 T1S R1W Sections: 1,2, 3,4, 9, 10, 15, and 16 (All of the above in reference to the Seward Meridian) CHRONOLOGY: Original Certificate granted ??, (U-99-22-(?)) ORDER U-99-22(1) APPENDIX Page 7 of 7 S 20 Chapter 42.05 ALASKA PUBLIC UTILITIES REGULATORY ACT Sec. 42.05.010. -42.05.131. Establishment of Public Utilities Commission. [Repealed,Sec. 5 ch 113 SLA 1970;Sec. 24 ch 25 SLA 1999]. Repealed or Renumbered Sec.42.05.141.General powers and duties of the commission. (a)The Regulatory Commission of Alaska may do all things necessary or proper to carry out the purposes and exercise the powers expressly granted or reasonably implied in this chapter, including (1) regulate every public utility engaged or proposing to engage in a utility business inside the state, except to the extent exempted by AS 42.05.711; (2) investigate, upon complaint or upon its own motion,the rates,classifications, rules, regulations, practices, services, and facilities of a public utility and hold hearings on them; (3) make or require just,fair, and reasonable rates, classifications, regulations, practices, services, and facilities for a public utility; (4) prescribe the system of accounts and regulate the service and safety of operations of a public utility; (5) require a public utility to file reports and other information and data; (6)appear personally or by counsel and represent the interests and welfare of the state in all matters and proceedings involving a public utility pending before an officer, department, board, commission, or court of the state or of another state or the United States and to intervene in, protest, resist,or advocate the granting, denial, or modification of any petition, application, complaint,or other proceeding; (7) examine witnesses and offer evidence in any proceeding affecting the state and initiate or participate in judicial proceedings to the extent necessary to protect and promote the interests of the state. (b)The commission shall perform the duties assigned to it under AS 42.45.100-42.45.190. (c) In the establishment of electric service rates under this chapter the commission shall promote the conservation of resources used in the generation of electric energy. (d)When considering whether the approval of a rate or a gas supply contract proposed by a utility to provide a reliable supply of gas for a reasonable price is in the public interest,the commission shall (1) recognize the public benefits of allowing a utility to negotiate different pricing mechanisms with different gas suppliers and to maintain a diversified portfolio of gas supply contracts to protect customers from the risks of inadequate supply or excessive cost that may arise from a single pricing mechanism; and (2)consider whether a utility could meet its responsibility to the public in a timely manner and without undue risk to the public if the commission fails to approve a rate or a gas supply contract proposed by the utility. Sec.42.05.145.Telecommunications regulation policy; restriction on regulation of telephone directories. (a) A utility that provides local exchange or interexchange telecommunications service in the state affects the public interest. Regulation of these utilities shall,consistent with this chapter, seek to maintain and further the efficiency, availability, and affordability of universal basic telecommunications service. (b) Notwithstanding other provisions of this chapter,the commission may not regulate the production and distribution of telephone directories. Sec. 42.05.150. (Repealed,Sec. 5 ch 113 SLA 1970]. Repealed or Renumbered Sec.42.05.151. Regulations and hearing procedures. (a)The commission may adopt regulations, not inconsistent with the law, necessary or proper to exercise its powers and to perform its duties under this chapter. (b)The commission shall adopt regulations governing practice and procedure, consistent with due process of law, including the conduct of formal and informal investigations, pre-hearing conferences, hearings, and proceedings, and the handling of procedural motions by a single commissioner.The regulations must provide for the hearing or, when a hearing is not required, other consideration of a matter in accordance with AS 42.04.080.Technical rules of evidence need not apply to investigations, pre-hearing conferences, hearings, and proceedings before the commission.The commission shall provide for representation by out-of-state attorneys substantially in accordance with Rule 81,Alaska Rules of Civil Procedure. (c)The commission, each commissioner,or an employee authorized by the commission may administer oaths, certify to all official acts, and issue subpoenas,subpoenas duces tecum, and other process to compel the attendance of witnesses and the production of testimony, records, papers,accounts, and documents in an inquiry, investigation, hearing, or proceeding before the commission in any part of the state. Each commissioner is authorized to issue orders on procedural motions.The commission may petition a court of this state to enforce its subpoenas, subpoenas duces tecum, or other process. Sec. 42.05.160. (Repealed,Sec.5 ch 113 SLA 1970]. Repealed or Renumbered Sec.42.05.161.Application of Administrative Procedure Act. (a)The administrative adjudication procedures of AS 44.62 J (Administrative Procedure Act) do not apply to adjudicatory proceedings of the commission except that final administrative determinations by the commission are subject to judicial review under that Act as provided in AS 42.05.551(a). (b)AS 44.62 (Administrative Procedure Act)applies to regulations adopted by the commission. Sec.42.05.170.(Repealed,Sec.5 ch 113 SLA 1970]. Repealed or Renumbered Sec.42.05.171. Formal hearings.A formal hearing that the commission has power to hold may be held by or before a hearing panel appointed under AS 42.04.080, a hearing examiner, or an administrative law judge designated for the purpose by the chair of the commission. In appropriate cases, a formal hearing may be held before an arbitrator or mediator designated for the purpose by the commission. The testimony and evidence in a formal hearing may be taken by the panel, by the hearing examiner, by the arbitrator, by the mediator, or by the administrative law judge to whom the hearing has been assigned. A decision of a hearing examiner,an arbitrator, a mediator, or an administrative law judge is not final until approved by the commission.A commissioner who has not heard or read the testimony, including the argument, may not participate in making a decision of a hearing panel. A party may file a petition for reconsideration of, or an administrative appeal of, a decision by a hearing examiner, an arbitrator, a mediator, or an administrative law judge that has been approved by the commission, or a decision of a hearing panel. The full commission shall act on the petition for reconsideration or the appeal. In determining the place of a hearing,the commission shall give preference to holding the hearing at a place most convenient for those interested in the subject of the hearing. Sec.42.05.175.Timelines for issuance of final orders. (a)The commission shall issue a final order not later than 180 days after a complete application is filed for an application (1)for a certificate of public convenience and necessity; (2)to amend a certificate of public convenience and necessity; (3)to transfer a certificate of public convenience and necessity; and (4)to acquire a controlling interest in a certificated public utility. (b) Notwithstanding a suspension ordered under AS 42.05.421,the commission shall issue a final order not later than 270 days after a complete tariff filing is made for a tariff filing that does not change the utility's revenue requirement or rate design. (c) Notwithstanding a suspension ordered under AS 42.05.421, the commission shall issue a final order not later than 450 days after a complete tariff filing is made for a tariff filing that changes the utility's revenue requirement or rate design. (d)The commission shall issue a final order not later than 365 days after a complete formal complaint is filed against a utility or, when the commission initiates a formal investigation of a utility without the filing of a complete formal complaint, not later than 365 days after the order initiating the formal investigation is issued. (e)The commission shall issue a final order in a rule-making proceeding not later than 730 days after a complete petition for adoption, amendment,or repeal of a regulation under AS 44.62.180-44.62.290 is filed or, when the commission initiates a rule- making docket, not later than 730 days after the order initiating the proceeding is issued. (f)The commission may extend a timeline required under this section if all parties of record consent to the extension or if,for one time only, before the timeline expires, the (1) commission reasonably finds that good cause exists to extend the timeline; (2) commission issues a written order extending the timeline and setting out its findings regarding good cause; and (3)extension of time is 90 days or less. (g)The commission shall file quarterly reports with the Legislative Budget and Audit Committee identifying all extensions ordered under(f)of this section during the previous quarter and including copies of the written orders issued under(f)(2) of this section. (h) If the commission does not issue and serve a final order regarding an application or suspended tariff under section (a), (b), or (c) of this section within the applicable timeline specified, and if the commission does not extend the timeline in accordance with (f) of this section,the application or suspended tariff filing shall be considered approved and shall go into effect immediately. (i) In adjudicated docket matters that come before the commission under state law or federal law and are not subject to a timeline under federal law or(a)- (e) of this section,the commission shall issue a final order not later than 180 days after the filing of an initiating petition. If the matter is commenced on the commission's own motion, the commission shall issue a final order not later than 365 days after the issuance of an order opening the docket.This subsection does not apply to a complaint against a utility, a petition to revoke a certificate of public convenience and necessity, or a functionally equivalent filing. (j) If the commission does not issue and serve a final order governed by(i) of this section within the applicable timeline specified, including any extension granted by the commission in accordance with (f)of this section, the initiating petition shall be considered approved and shall take effect immediately, or, if the matter was commenced by the commission,the docket shall be closed with no action taken. (k) If proceedings subject to different timelines under this section are consolidated or if a single proceeding implicates more than one timeline,the latest applicable deadline for the issuance of a final order shall apply. (I)The commission may not evade the requirement of this section by terminating a proceeding in a docket and opening a proceeding in another docket on substantially the same matter. ) " (m) For purposes of this section, "final order" means a dispositive administrative order that resolves all matters at issue and that may be the basis for a petition for reconsideration or request for judicial review. (n) For purposes of this section, an application,tariff filing, formal complaint, or petition is complete if it complies with the filing, format, and content requirements established by statute, regulation, and forms adopted by the commission under regulation. Sec. 42.05.180. [Repealed,Sec.5 ch 113 SLA 1970]. Repealed or Renumbered Sec.42.05.181. Notice and hearing before final orders.A final order of the commission compelling affirmative action, denying a right or privilege, or granting a right or privilege over protest of the public utility or any party of record may not be entered without giving the interested party reasonable notice and an opportunity to be heard. Sec.42.05.190. [Repealed,Sec. 5 ch 113 SLA 1970]. Repealed or Renumbered Sec.42.05.191.Contents and service of orders. Every formal order of the commission shall be based upon the facts of record. However, the commission may,without a hearing, issue an order approving any settlement supported by all the parties of record in a proceeding, including a compromise settlement. Every order entered pursuant to a hearing must state the commission's findings,the basis of its findings and conclusions,together with its decision.These orders shall be entered of record and a copy of them shall be served on all parties of record in the proceeding. Sec.42.05.193. -42.05.196. [Repealed,Sec. 5 ch 113 SLA 1970]. Repealed or Renumbered Sec.42.05.200. [Repealed,Sec.5 ch 113 SLA 1970]. Repealed or Renumbered Sec.42.05.201. Publication of reports,orders,decisions,and regulations.All reports, orders, decisions, and regulations of the commission shall be in writing.The commission shall apprise all affected utilities and interested parties of these reports, orders, decisions, and regulations as they are issued and adopted, and, when appropriate to do so, shall publish them in a manner that will reasonably inform the public or the affected consumers of any public utility service.The commission may set charges for costs of printing or reproducing and furnishing copies of its reports, orders, decisions and regulations.The publication requirement, as it pertains to regulations,does not supersede the requirements of AS 44.62 (Administrative Procedure Act). Sec.42.05.210.[Repealed,Sec.5 ch 113 SLA 1970]. Repealed or Renumbered Sec.42.05.211.Annual report.The commission shall, by November 15 of each year, publish an annual report reviewing its activities during the previous fiscal year and notify the legislature that the report is available.The report must address the regulation of public utility service in the state as of June 30 and must contain details about the commission's compliance with the requirements of AS 42.05.175(a) - (e),with the timeline extensions made by the commission under AS 42.05.175(f), and with other performance measures established by the commission. Sec.42.05.220. [Repealed,Sec. 5 ch 113 SLA 1970]. Repealed or Renumbered Article 02.CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY Sec.42.05.221.Certificates required. (a)A public utility may not operate and receive compensation for providing a commodity or service without first having obtained from the commission under this chapter a certificate declaring that public convenience and necessity require or will require the service. Where a public utility provides more than one type of utility service,a separate certificate of convenience and necessity is required for each type. A certificate must describe the nature and extent of the authority granted in it, including, as appropriate for the services involved, a description of the authorized area and scope of operations of the public utility. (b)All certificates of convenience and necessity issued to a public utility before July 1, 1970, remain in effect but they are subject to modification where there are areas of conflict with public utilities that have not previously been required to have a certificate or where there is a substantial change in circumstances. (c)A certificate shall be issued to a public utility that was not required to have one before July 1, 1970, and that is required to have one after that date, if it appears to the commission that the utility was actually operating in good faith on that date.Such a certificate is subject to modification where there are areas of conflict with other public utilities or where there has been a substantial change in circumstances. (d) In an area where the commission determines that two or more public utilities are competing to furnish identical utility service and that this competition is not in the public interest,the commission shall take appropriate action to eliminate the competition and any undesirable duplication of facilities.This appropriate action may include, but is not limited to,ordering the competing utilities to enter into a contract that,among other things, would: (1)delineate the service area boundaries of each in those areas of competition; (2)eliminate existing duplication and paralleling to the fullest reasonable extent; (3) preclude future duplication and paralleling; (4) provide for the exchange of customers and facilities for the purposes of providing better public service and of eliminating duplication and paralleling; and (5) provide such other mutually equitable arrangements as would be in the public interest. (e) If the commission employs professional consultants to assist it in administering this section, it may apportion the expenses relating to their employment among the competing utilities. (f)[Repealed,Sec. 12 ch 136 SLA 1980]. G Cr 20 21 • (T-2 24 19 21 22 1. A i Regulatory Commission 29 28 i'.,\,\ 27 26 25 30 29 28 27 of Alaska 1 �� RAFT 4416..\.--L.-2.-- \- - A 0411.`— `. — APPENDIXDA �r Certificate of Public Convenience ;,' lI and Necessity No. 618 Granted to 32 33 '.J `� �►D 7 T01N �, R01E 32 33 34 CITY OF SEWARD(Refuse Utility) dd ` I ' Service Utility Type: �, , Refuse 11 616 �...- Illy , Legend r 'Pi rols 4 2 T010 ROIE 5 4 3 F 101 W 6 MillService Area IIJ / i 7 6 gIIIIII 10i / P sewurd 11 12 10 J ' 4 „, ..,,a1lEanaa Canada _. _ I 1 Q ..p..„',.,...- ...,,g„,„r � ` npra• . t 4.8 Juneau 118 15 14 13 1er�1 17 16 j 15 2•- r _ `4h. .....`' Miles �__,.. s Scale:1:40,400 Alaska Albers Equal Area Conic 20 21 22 23 14 19 20 21 22 1983 North American Datum map:RCA_Se rvkeAreas 11o17L Certa_v02.nod Dale'.April 18,2008 ( 0 \ File.SA_0818_20080418 Author:RDI-0WS Sponsored by: Hunt !him CITY OF SEWARD,ALASKA RESOLUTION 2012-068 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A FRANCHISE FOR THE COLLECTION AND DISPOSAL OF GARBAGE AND REFUSE WITH ALASKA WASTE-KENAI PENINSULA, LLC, SUBJECT TO APPROVAL BY THE VOTERS OF SEWARD AT THE OCTOBER 2,2012 REGULAR CITY ELECTION WHEREAS, the Seward City Charter ("Charter") and Code of Ordinances ("Code") provides for the sanitary,economic,and efficient collection and disposal of garbage,rubbish,and waste material in the City and its service area,and permits,pursuant to such Charter and Code and voter approval,the use of a contractor to provide such services;and WHEREAS, the City of Seward ("City")currently contracts with Waste Connections of Alaska,Inc. dba Alaska Waste—Kenai Peninsula LLC, for the collection and disposal of garbage and refuse,with said contract set to expire December 31,2012;and WHEREAS, the City solicited a request for proposals to provide solid waste collection services,and received three responsive and responsible proposals,and based on the scoring of those proposals, the administration recommends approval of a contract with Alaska Waste — Kenai Peninsula,LLC,subject to voter approval at an election to be held on October 2,2012,and subject to successful negotiations between the City and the proposer; and WHEREAS,the administration recommends entering into a seven-year contract with an option to extend for up to three additional years, subject to approval by the City Council; and WHEREAS,this franchise agreement provides for automatic annual adjustments in the Rate Schedule based on 140%of the CPI',with such automatic increases not subject to further approval, and with all other changes to rates and conditions of service subject to City Council review and approval; and WHEREAS,the agreement provides for new services such as a bulky-item curbside pickup service for appliances and furniture, and through a levelized rate schedule, encourages the use of bear- resistant containers and bear-resistant dumpster lids to reduce bear/human/garbage encounters,and includes a franchise fee to be paid to the City,equal to 3% of the gross revenues collected by the contractor;and 1 Consumer Price Index(CPI)means the consumer price index(CPI-U),all items, 1982-1984=100 for urban wage earners and clerical workers,Anchorage,Alaska area,as published by the U.S.Department of Labor,Bureau of how Labor Statistics(initial release). The 2014 Rate Schedule will be adjusted utilizing the CM data from the calendar year 2012. 20 CITY OF SEWARD,ALASKA RESOLUTION 2012-068 WHEREAS,approval of a seven-year franchise,with an option to extend for an additional term of up to three years,provides sufficient incentive for the contractor to make improvements to the local fleet of available equipment,trucks,and container inventories,and to address issues such as the availability of bear-resistant garbage cans and bear-resistant dumpster lids,and to consider future options for the community to encourage and facilitate recycling efforts;and WHEREAS, granting of a franchise for a public utility requires the affirmative vote of a majority of electors voting on a proposition to approve such a franchise,and WHEREAS, the Seward City Council finds that it is in the public interest to provide for quality,local garbage and refuse collection and disposal services, and therefore opts to place this proposition before the voters of Seward at the regular election of October 2,2012. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA,that: Section 1. A franchise agreement between the City of Seward and Alaska Waste—Kenai Peninsula LLC, for the collection and disposal of garbage and refuse,a copy of which is attached hereto and incorporated herein by reference, is hereby approved subject to voter approval, in accordance with Section 4 below. Section 2. The city manager is authorized to finalize and execute such additional documents as necessary to finalize the franchise agreement and to agree to revisions to the documents so long as the essential terms and conditions of the franchise agreement are not substantially changed. Section 3. The city manager is authorized to include collection of a franchise fee in the amount of 3% of gross revenues collected from the franchisee, and that amount is considered adequate compensation for the maintenance and use of City streets and alleys in the conduct of this contract. The City Council will also retain rate approval as provided in the City Charter and Code. Section 4. At the regular municipal election to be held on October 2,2012,the City shall submit to the qualified voters of the City the question of approval of the franchisee agreement noted above. An affirmative vote of a majority of the qualified electors voting on the proposition shall be required for approval of the franchise agreement. J 2j CITY OF SEWARD,ALASKA RESOLUTION 2012-068 Lime Section 5. The proposition shall be substantially in the following form: Proposition No.2 FRANCHISE AGREEMENT FOR THE COLLECTION AND DISPOSAL OF GARBAGE AND REFUSE Do you approve a seven-year franchise agreement with Alaska Waste—Kenai Peninsula, LLC for the collection and disposal of garbage and refuse? The franchise agreement contains an option to extend for up to an additional three years. The agreement allows for costs to be adjusted annually based on 140% of the Consumer Price Index. The agreement provides an opportunity for periodic rate reviews with all other consumer rates to be set by resolution of the City Council. Yes No A"Yes"vote approves a seven-year franchise agreement with Alaska Waste— Kenai Peninsula, LLC for the collection and disposal of garbage and refuse, with options to extend the agreement for up to three additional years. A"No"vote does not approve a seven-year franchise agreement with Alaska Waste—Kenai Peninsula,LLC for the collection and disposal of garbage and refuse,with options to extend the agreement for up to three additional years. Section 6. This resolution shall take effect immediately upon adoption. The franchise agreement shall not be effective until it has been approved by a majority of the electors voting on a proposition to approve the same. The franchise agreement shall go into effect January 1,2013 or as soon thereafter as practicable. PASSED AND APPROVED by the City Council of the City of Seward, Alaska,this 13th day of August,2012. THE CITY OF SEWARD,ALASKA David Seawa "(Mayo L.. 22 CITY OF SEWARD,ALASKA RESOLUTION 2012-068 J AYES: Valdatta, Bardarson,Keil, Shafer, Casagranda,Terry, Seaward NOES: None ABSENT: None ABSTAIN: None ATTEST: cuitmda, ohanna Kinney,CMC ity Clerk (City Seal) 44s'41 of SEWq�pis _.. ..... FO�•‘ 11 5 . i SEAL t • -I - --- if i kt...* -11r -80...0.- 0i �� • , -I 23 a Council Agenda Statement of SFw Meeting Date: August 13, 2012 eqpa Through: James Hunt, City Manager s•':> 4.Asto" From: Kristin Erchinger, Finance Director Agenda Item: Approving Franchise Agreement for Solid Waste Collection Services with Alaska Waste-Kenai Peninsula, LLC BACKGROUND &JUSTIFICATION: The City of Seward, through its Charter and its Code of Ordinances, provides for the collection and disposal of garbage and rubbish. To that end, the City previously applied for, and was granted, a Certificate of Public Convenience and Necessity by the Regulatory Commission of Alaska, for its refuse utility(Certificate U-99-22). Since at least the early 1970s, the City has utilized a private contractor to provide refuse services in Seward. The City Code requires that a franchise for a public utility be approved by a majority of voters in a regular City election. Over the past 38 years, the City has issued Requests for Proposals for solid waste collection four times, as follows: 1974, one respondent; 1980, one respondent; 1983, two respondents; 1987, one respondent. In 1987, the City contracted with Seward Service (Herman Leirer), and the business was subsequently assigned five times, as follows: in 1989 to Jason Enterprises; in 1998 to USA Waste of Alaska; in 1999 to Peninsula Sanitation, a division of Waste Management, Inc.; in 2005 to Alaska Pacific Environmental Services Anchorage, LLC dba Alaska Waste - Kenai Peninsula LLC; and in 2012 to Waste Connections of Alaska, Inc. The most recent franchise agreement was approved by the voters on October 5, 2010 for a period of two years, with a request by the City Council to solicit Requests for Proposal at the end of the term. The current contract for refuse services expires December 31, 2012. The City solicited a Request for Proposals for solid waste collection services and received three responses. All three proposals were considered responsive and responsible. The following criteria and associated weightings were used to score the proposals: Proposed rates = 30%; Firm's technical qualifications(fleet, container inventory, etc.)=20%; Firm's experience= 15%; Bear Awareness = 10%; Litigation History = 10%; Contract exceptions = 10%; and Customer service and billing =5%. The proposals received the following overall scores: Alaska Waste-Kenai Peninsula, LLC Score= 88.52 Alaska Pacific Environmental Services I, LLC Score= 71.78 Mid State Truck and Trailer, LLC Score= 70.50 Based on the scoring of criteria, the administration recommends approving a franchise for the collection and disposal of garbage and refuse with Alaska Waste - Kenai Peninsula, LLC ("Alaska Waste"), subject to approval by the voters of Seward at the October 2, 2012 regular City election, and subject to successful contract negotiations. 2 L A few highlights from the successful proposal: The RFP allowed for a new fee to be implemented,based on standard waste management industry practice. That fee would have been a fuel adjustment factor to be added to the bill each month based as a percentage of the services charges on the bill (excluding taxes and surcharges), with an option to escalate each year based on a percentage of the Producer Price Index for No. 2 Diesel Fuel. Alaska Waste opted not to propose adding a new fuel adjustment factor, but to instead include all cost escalations as a percentage of the annual Consumer Price Index ("CPI"). Their proposal includes the following: 1) initial rates are increased from the current Rate Schedule by approximately 25% for regular cans and 7% for bear-resistant cans, effective January 1, 2013; 2) the Rate Schedule has been amended to add a monthly charge for renting a dumpster from the Contractor (rent has been charged previously,but that item was omitted from the schedule); 3)annual increases to the Rate Schedule will be equal to 140%of the Consumer Price Index over the life of the contract; 4) a new `bulky item pickup" service will be implemented at a minimum cost of$42.18 per item (small appliances, furniture, etc.); 5) incentivizes the use of bear-resistant garbage cans by charging the same $2.00 per month charge for a leased bear-resistant can or a regular can; 6) adds lockable dumpster lids; 7) continues the current practice of the contractor bearing responsibility for billing customers and providing direct customer service; 8) the contractor agrees to make available bear-resistant garbage cans and bear-resistant dumpster lids for sale or lease, to anyone interested in obtaining one; and 9) provides for a seven-year term with options to extend for an additional term of up to three years at the discretion of the City Council. Alaska Waste's base price for monthly service will be$26.91 (up from the current $21.53), and this represents the median quoted rate (quotes ranged from $20.88 to $41.75) of the three proposals. Waste Connections of Alaska, Inc. (dba Alaska Waste — Kenai Peninsula, LLC) became the City's current refuse franchisee, upon completion of a buyout of the City's previous contractor, and upon the City Council's approval of consent to a change in ownership, approved by Resolution in February, 2012. Since that time, the contractor has provided safe and reliable service to the residents of Seward, and the City has received very few calls regarding service. The contractor has been responsive to City staff and we have developed a positive working relationship. The administration recommends approval of this franchise agreement, for final approval by the voters of Seward at the October election. CONSISTENCY CHECKLIST: Yes No N/A 1 Comprehensive Plan: Page 11- Community Appearance, Page 13-City X Government, Page 26-Public Facilities. 2. Strategic Plan: Page 4-Nautural, Promote a Safe Community-Page 18 X 3. Other(list): X ZS CONTRACTUAL AGREEMENT FOR THE COLLECTION AND DISPOSAL OF GARBAGE,RUBBISH AND WASTE MATERIAL IN THE CITY OF SEWARD,ALASKA THIS AGREEMENT (the "Agreement") is dated as of the 5 day of ('Jt v2rn bee, 2012, by and between the City of Seward, Alaska, a municipal corporation organized under and operating pursuant to the laws of the State of Alaska, hereinafter referred to as the "City" and Alaska Waste- Kenai Peninsula, LLC,hereinafter referred to as"CONTRACTOR". WHEREAS, the City, by its charter (the "Charter") and ordinances of the Seward City Code (the "Code"), provides for the sanitary, economic, and efficient collection and disposal of garbage, rubbish, and waste material in the City and its service area, and has, by such Charter and Code,made regulations regarding such collection and disposal; and WHEREAS, the City seeks a CONTRACTOR to provide dependable, economic, and efficient service to the business, industrial, residential, and public districts of the City and its service area through periodic and regularly scheduled collection of garbage, rubbish, and waste material in accordance with the Charter and Code and within the terms of a previous agreement; and WHEREAS, the City and CONTRACTOR agree to consider, over the course of this contract, alternative means to reduce the environmental impact of waste, to include recycling efforts,measures to reduce human/bear encounters, and other such potential initiatives; and NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE CITY AND CONTRACTOR THAT: 1. Engagement. This Agreement, a franchise contract for collecting and disposing of the garbage, rubbish and waste materials of businesses, residences, and public entities of and within the City and its service area, is hereby awarded to CONTRACTOR, subject to approval by the voters under Charter Section 13.6. 2. Compliance. CONTRACTOR will comply with the terms and provisions of all Charter and Code provisions and will follow regulations of the City in connection therewith. Charter Section 13.5 is incorporated herein by this reference. To the extent that any provisions of this Agreement conflict with the Charter or Code, the Charter and Code shall govern. 3. Service. (a) CONTRACTOR will provide continuous and uninterrupted service to the public in all sections of the City and its service area in accordance with the terms of this Agreement throughout the entire period hereof except as provided in paragraph 13 herein. (b) The City and CONTRACTOR agree to the terms and conditions of CONTRACTOR' Service Policies, and CONTRACTOR agrees to perform according to said Service Policies, which are attached hereto as Exhibit 1. (c) Should the City adopt service policies whose effect is to impose requirements or restrictions on Contractual Agreement Between The City of Seward and Alaska Waste-Kenai Peninsula, LLC Page I of I I 2?- CONTRACTOR performance which will cause CONTRACTOR additional costs to provide service, the City shall provide CONTRACTOR the opportunity to determine its additional costs and to request a rate adjustment in the manner provided by Charter and Code. (d) CONTRACTOR agrees to collect and transport all garbage, rubbish and waste material collected within the City and its service area to a site and facility designated by the Kenai Peninsula Borough and to comply with the regulations established for such facility. 4. Term of Agreement. (a) This Agreement is effective upon execution by both Parties and as of the date first above written. The collection services provided under this Agreement shall commence at 12:01 a.m. on January 1, 2013 or as soon thereafter as practicable, and shall continue for a minimum term of seven (7) years, expiring no earlier than 11:59 p.m. December 31, 2019, unless earlier terminated under the provisions of the Charter or this Agreement. (b) Unless this Agreement is terminated pursuant to the provisions of the Charter, paragraph 15 of this Agreement, or any other provision of this Agreement, the Parties agree that this Agreement may be renewed for up to three (3) additional years on the same terms and conditions as provided herein; provided, however, 1) CONTRACTOR first notifies the City of its desire to renew this Agreement under the same terms and conditions and provides written notice to the City in accordance with this Agreement at least one hundred eighty (180) days prior to the expiration of the current term; 2) CONTRACTOR is not in default under any term or provision of this Agreement; and 3)the City Council, at the time the renewal is requested, approves the renewal. The maximum term of this contract shall be ten(10) years. Following the termination of this Agreement for any reason prior to the expiration of the initial term or renewal term, CONTRACTOR shall continue to provide the services under this Agreement, at the City's election, until 11:59 p.m. on the last day of the first full month following the date the City gives CONTRACTOR notice of termination. 5. Insurance. a. Coverage Requirements. Without limiting its Indemnities, CONTRACTOR will secure and maintain insurance coverage meeting the requirements in this Section. Each liability policy must provide contractual liability coverage for Contractor's Indemnities, including any necessary endorsement, schedule or documentation. CONTRACTOR agrees that, at its sole cost and expense, it will obtain and maintain public liability insurance, insuring against all liabilities, claims and demands for injuries, loss and/or damage which result from the performance of services pursuant to this Agreement as follows: (i) General Liability Insurance. Written on ISO policy form CG 00 01 (occurrence) or its equivalent (and not CG 00 02 claims made) with limits of not less than the following: General Aggregate: $4 million Contractual Agreement Between The City of Seward and Alaska Waste-Kenai Peninsula,I.LC Page 2 of 11 2�' Products/Completion Operations Aggregate: $4 million Personal and Advertising Injury: $1 million Each Occurrence: $2 million (ii) Automobile Liability Coverage. Insurance meeting the following requirements: 1. Written on ISO policy forms CA 00 12 or CA 00 20 (or equivalent) with a limit of liability not less than $2 million for each accident 2. Endorsed to delete the pollution and/or the asbestos exclusion and include pollution liability (using form CA 99 48 or its equivalent) for accidental spills and discharges while transporting and/or processing materials; and 3. Covering all Vehicles that drive on public roads. If Contractor is subject to federal regulations, Contractor will also maintain any other coverage necessary to satisfy state or federal financial responsibility requirements. (iii) Liability coverage for pollution conditions resulting from transported cargo. With a limit of not less than $2 million per occurrence covering loss (including cleanup costs) the CONTRACTOR. becomes legally obligated to pay as a result of claims for bodily injury, property damage, and cleanup costs (including expenses required by environmental laws or incurred by federal, state, city, or third parties) resulting from pollution conditions caused by transported cargo (including waste). For the purpose of this subsection, "pollution conditions" includes the dispersal, discharge, release, or escape of any solid, liquid, gaseous or thermal irritant or contaminant (such as smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, medical waste, and waste materials) into or upon land, any structure on land, the atmosphere, or any watercourse or body of water (including groundwater), provided the conditions are not naturally present in the environment in the amounts or concentrations discovered. CONTRACTOR'S general liability policy may be endorsed to provide for this pollution liability coverage. (iv) Workers Compensation and Employers' Liability. Insurance providing the following: 1. Workers' compensation benefits required by applicable law (including the State Labor Code or by any other state labor law),and for which Contractor is responsible; and Contractual Agreement Between The City of Seward and Alaska Waste-Kenai Peninsula,LLC Page 3 of 11 2.9 2. Employers' Liability coverage with limits of not less than the following: Each accident: $1 million Disease—policy limit: $1 million Disease—each employee: $1 million b. Insurer qualifications. Contractor will secure insurance provided by an insurer meeting the following qualifications: (i) is acceptable to the City of Seward, (ii) is an admitted company in State, (iii) has a size category of VII or larger by A.M. Best Company, Inc., and (iv) has a rating of A or better by A.M. Best Company, Inc. c. Evidence of coverage. Contractor will provide Certificates of Insurance, endorsements, schedules and other evidence of insurance coverage requested by the City, at the following times: (i) on or before the contract commencement date, (ii) promptly upon renewal of policies,and (iii) within ten (10)days of request by the City. 1. All insurance required herein shall name the City as an additional insured. All insurance premiums shall be the obligation of and shall be paid by CONTRACTOR. A valid Certificate of Insurance shall be delivered to the City's Finance Director at the signing of this Agreement. Each insurance policy shall contain a clause whereby the insurance company agrees to give written notice to the City prior to any cancellation of such policies of insurance in accordance with the applicable provisions of such policies. The amount of the insurance policy deductibles are subject to approval by the City. d. Certificates of Insurance. Contractor will provide certificates (or other evidence of coverage)containing the following information: (i) Contract name, explicitly identifying this Agreement. (ii) Types, policy numbers, policy effective/expiration dates, and limits. (iii) 30 days' cancellation notice: Containing express condition that the City of Seward must receive written notification by mail in advance of cancellation for all policies evidenced on the certificate of insurance in accordance with the applicable provisions of such policies. (iv) Deductibles and self-insured retentions. Identifying any deductible and self-insured retention, and upon City request, the CONTRACTOR will reduce any self-insured retention as it Contractual Agreement Between The City of Seward and Alaska Waste-Kenai Peninsula,LLC Page 4 of l I 30 applies to the City or provide a letter of credit, certificate of deposit or other financial assurance acceptable to the City, guaranteeing payment of all retained losses and related costs and expenses related to investigations, claims administration, and legal defense. (v) Claims made. If the City waives the prohibition on procuring claims made policies and insurance coverage is written on a claims-made form, then evidence that the "retro date" is before the Agreement commencement date. CONTRACTOR must maintain that coverage for at least five (5) years after the termination date of this Agreement (or longer as required under this Agreement). Promptly upon request, CONTRACTOR must provide City with evidence of this coverage. THIS PROVISION SURVIVES THE TERMINATION OF THIS AGREEMENT. e. Endorsements. CONTRACTOR must provide copies of the following endorsements or other documentation with respect to CONTRACTOR and its subcontractors: (i) Additional insured. Endorsements to each liability policy, explicitly adding City and its "officers, agents, and employees" as additional insured. (ii) Waiver of subrogation; (iii) Insurance is primary and not contributing with any other insurance or self-insurance programs maintained by City. (iv) Excluding any "insured v. insured" clause in a liability policy with respect to City as an additional insured; and (v) Providing dedicated limits under a liability policy in favor of City as an additional insured. f. Schedules. Contractor must provide schedules or other evidence that liability policies of CONTRACTOR provide contractual liability coverage for Indemnities, such as listing this Agreement as an "insured contract". g. Notice of Claims. If any person makes a claim against CONTRACTOR in excess of the amount of any deductibles or self-insured retentions, CONTRACTOR will promptly notify City of the claim. 6. Contractor Indemnity, Defense and Release a. To the extent allowable under applicable law, CONTRACTOR will indemnify and hold harmless, defend with counsel approved by the City, and release the City, its officials, employees, agents, and contractors from and against all liabilities and losses paid, incurred or suffered by, or asserted against, the City or any of its related parties, including any claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs or expenses (including, without limitation, reasonable attorney, consultant and expert fee, court costs and litigation expenses) of whatever kind or nature, known or unknown, Contractual Agreement Between The City of Seward and Alaska Waste-Kenai Peninsula,LLC Page 5 of 1 I 31 contingent or otherwise, to the extent arising out of or in any way resulting from operations under this Agreement or the use of any of the City's property except to the extent such damages arise from the negligence or willful acts or omissions of the City, its officials,employees, agents,or contractors. b. CONTRACTOR indemnification and defense of the City, its officials, employees, agents, and contractors shall extend to any claims arising out of or in any way related to this Agreement and the presence, disposal, release or threatened release of any hazardous material, in each case only to the extent caused by the Contractor or arising from the Contractor's operations hereunder, which is on, from or affecting public or city land, soil, water, ground water, vegetation, building, personal property, persons, animals, or otherwise including any personal injury (including wrongful death) or property damage to the extent arising out of or related to any such hazardous materials, and any lawsuit brought or threatened, settlement reached or government order relating to such hazardous materials (except for damages arising from the negligence or willful acts or omissions of the City, its officials, employees, agents, contractors or any other third parties that are unrelated to the Contractor). c. CONTRACTOR shall furnish to the City's Finance Director a performance bond in the sum of Twenty-Five Thousand Dollars ($25,000) conditioned upon the covenants, agreements, stipulations and conditions thereof. The executed performance bond shall be attached to this Agreement and incorporated hereto and made a part hereof. 7. Fees Established. CONTRACTOR shall be entitled to receive the fees specified in the Rate Schedule for Garbage and Refuse Services attached hereto as Exhibit 2, as may be amended from time to time according to the terms of the Charter, Code, and this Agreement. 8. Record of Services. On a monthly basis, CONTRACTOR shall supply the City with an accurate record of the gross revenues billed and collected, for the purposes of paying the 3%franchise fee identified in Section 10. 9. Customer Contact Point. CONTRACTOR shall serve as the primary point of customer contact and shall receive customers' applications for service, provide the customer with information regarding services available and fees for such services, and receive customer complaints regarding service. The City will accept and forward any customer complaints that are brought to the City's attention, on to CONTRACTOR. 10. Franchise Fee. The Seward City Charter §13.5(7) requires that a franchise contribute to the cost of maintaining local roads, alley ways, etc. which the franchise may use in the conduct of its business. The franchise fee imposed under this section shall be three percent (3%) of CONTRACTOR' gross revenues actually collected Contractual Agreement Between The City of Seward and Alaska Waste-Kenai Peninsula,LLC Page 6 of I I 3L within the corporate limits of the City for each month. The fee shall be due and payable on the 20th day of the following month, and if not paid timely, shall be subject to penalties and interest as provided in Seward City Code§14.01.055. 11. Rate Adjustment. The City and CONTRACTOR agree that the Rate Schedule will be adjusted beginning on January 1 in the second full calendar year of the Term (in this case,January 1,2014)and each subsequent January 1, equal to the following: a. The Rate Schedule in effect during the prior contract year (or portion thereof, plus or minus the percentage of the Consumer Price Index (CPI) bid in response to the RFP; in this case, 140%of the annual CPI.I b. The rate adjustment proposed in this Section 11 is subject to approval by the Seward City Council, of a Refuse Tariff adjustment which is to be proposed to the Council upon approval of this Agreement. Said Refuse Tariff adjustment will propose that the CPI increase become an automatic adjustment effective January 1St each year beginning January 1, 2014 without need of further City Council approval, and that all other amendments to the Rate Schedule shall require further Council approval. 12. Independent Contractor. It is specifically acknowledged and agreed that when fulfilling its obligations pursuant to this Agreement, CONTRACTOR is an independent contractor and the City has no control or right to control CONTRACTOR operations, equipment and/or personnel except as expressly set forth in this Agreement. 13. Force Majeure. If the failure of CONTRACTOR to perform under this Agreement is due to any fault of the City, acts of God, fuel or repair supplies, fire, explosion, tempest, weather, war, strikes,earthquakes or accidents directly or indirectly affecting CONTRACTOR performance ("Excuses") and the Excuse is beyond the reasonable control of CONTRACTOR or not the result of CONTRACTOR act, or omission, or negligence, then the failure of CONTRACTOR to timely perform under this Agreement shall not constitute a default or breach under this Agreement, and no penalties or damage shall be payable to the City by CONTRACTOR or its agents, and the time for CONTRACTOR performance under this Agreement shall be extended from time to time and as often as such events occur by a period of time equal to the time lost. 14. Arbitration. If a dispute arises between the parties concerning their respective rights under this Agreement (excluding rate adjustments), and where commercially reasonable and practicable, the parties shall seek to resolve the dispute by using an appropriate form of alternative dispute resolution prior to initiating litigation proceedings. If the parties are unable to reach resolution within sixty (60) days Consumer Price Index(CPI)means the consumer price index(CPI-U),all items, 1982-84-100 for urban wage earners and clerical workers,Anchorage,Alaska area,as published by the U.S.Department of Labor/Bureau of Labor Statistics(initial release). Note: The 2014 Rate Schedule will utilize CPI Data from the calendar year 2012. Contractual Agreement Between The City of Seward and Alaska Waste-Kenai Peninsula,LLC Page 7 of I I 33 following notice of a written claim, either party may initiate litigation proceedings. Rate adjustments shall not be the subject of or subject to arbitration. 15. CONTRACTOR Default. Subject to the provisions of Charter Section 13.5, if CONTRACTOR is in default under this Agreement and the default is not excused or the fault of the City, then CONTRACTOR shall have ten (10) business days following written notification given according to paragraph 19 hereunder, in which to cure the default. If the default has not been cured at the end of the ten (10) business days, this Agreement shall terminate. The City may also terminate this Agreement for the violation of any of its provisions, for the misuse or non-use hereof, for failure to comply with any provision hereof, or any regulation imposed under authority of the Charter or Code. 16. Equipment and Services. (a) CONTRACTOR shall provide sufficient equipment to provide uninterrupted service to its customers and at its sole cost and expense, shall maintain and keep that equipment in good repair and operating condition and shall provide all fuel, lubricants, tires and other materials and supplies necessary for the operation of that equipment. (b) CONTRACTOR shall furnish trained and competent personnel at its sole cost and expense as well as all employee required or necessary to adequately furnish services pursuant to this Agreement. At all times CONTRACTOR shall be solely responsible for the supervision of its equipment and personnel. (c) CONTRACTOR shall perform all services in a courteous, professional and competent manner. CONTRACTOR shall not litter in the process of collecting refuse, nor allow any refuse to flow or fall from any equipment used when performing services. CONTRACTOR shall repair or replace, at its sole cost and expense, any container(s) damaged as a result of any act, conduct or omission by CONTRACTOR when performing services pursuant to this Agreement except for reasonable wear and tear. (d) CONTRACTOR shall provide a toll free number to the City and its customers located in the City to call CONTRACTOR' principal place of business. (e) CONTRACTOR shall ensure that all required customers have signed up for refuse collection services as required by Seward City Code §14.05.010 (a), by coordinating new customer service with the City of Seward or by advertising, or any other reasonable means, and shall ensure that customers have a convenient means by which to establish new service. 17. Violations Reporting. CONTRACTOR shall report to the City violations of local, state, or federal Iaw relating to the collection and disposal of garbage, rubbish and waste material in the City and its service area. 18. Additional or Special Pick Up. CONTRACTOR shall respond to customer requests for additional or special pick up (non-scheduled service) within twenty-four (24) hours of such request unless prevented by weather, blocked access, or other reasons beyond the reasonable control of CONTRACTOR. Sunday shall not be counted when computing the twenty-four (24) hour response period. Unless excused by weather, blocked access, or other reasons beyond the reasonable control of Contractual Agreement Between The City of Seward and Alaska Waste-Kenai Peninsula,LLC Page 8of11 3'} CONTRACTOR, if CONTRACTOR fails to respond within twenty-four (24) hours the next pick up will be at no cost. 19. Customer Billing and Collections. Invoicing and billing of all customers will be the responsibility of the Contractor. The customer will be invoiced for collection services, waste disposal, container rental, taxes and fees, and any additional selected services. All invoices will include service address, coverage of dates invoiced, and the rate for the customer's level of service. Contractor shall be responsible for collections of all fees and taxes due the Contractor from customers. Contractor may elect to forward to the City information for all customers for whom reasonable efforts to collect have been unsuccessful for a period of at least 120 days, and the City may elect to begin enforcement proceedings. The City may use all legal rights to seek recovery, including the right to place a lien upon the real property of those customers to satisfy payment of outstanding bills. The Contractor is required to enforce collections through reminder letters and assessment of late fees and interest, prior to the City's assuming the debt for the purposes of enforcement. The City has no obligation to pursue such enforcement action, but may elect to do so in order to ensure compliance with the provisions of Seward City Code mandating participation in refuse collections. 20. Notices. Any notice or demand which under the terms of this Agreement or any state statute, Charter provision, or Code provision may or must be given or made by the parties hereto shall be in writing and given and made by personal delivery or by mailing by certified mail or registered mail,addressed to the other party as follows: Contractual Agreement Between The City of Seward and Alaska Waste-Kenai Peninsula,MC Page 9 of l l 3S City of Seward Alaska Waste - Kenai Peninsula, LLC City Manager Attn: Matt O'Connell,Division Manager P.O. Box 167 6301 Rosewood St., Seward, Alaska 99664 Anchorage AK 99518 Either party may, however, designate in writing such new or other address to which such notice or demand shall thereafter be so given, made or mailed. Any notice given under this Agreement by mail shall be deemed delivered when deposited in a United States general or branch post office, enclosed in a registered or certified prepaid wrapper addressed as set forth above. 21. interpretation. This Agreement, together with the Charter and Code, contains the entire agreement between the Parties. There is no other understanding, oral or written, which in any manner changes or enlarges what is set forth in this Agreement. 22. Assignment. CONTRACTOR shall not sell, assign, sublet or allow another to use this Agreement (the franchise contract) without prior approval by resolution of the City Council. This provision is subject to Charter Section 13.8. 23. Time of the essence. Time is of the essence of each and every provision of this Agreement. 24. Binding Effect. This Agreement shall extend to and be binding upon the heirs, administrators, executors, successors, and assigns of the respective Parties. 25. Headings. Headings used in this Agreement are for convenience only and shall not affect the construction of this Agreement. 26. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Alaska, excluding any conflict of law, rule or principle, which might refer such construction to the laws of another state or jurisdiction. 27. Modification. Except for rate adjustments in Section 11, no modifications, changes, or amendments may be made to this Agreement by either Party except in a written instrument executed by each party or as may be required by the applicable provisions of the City Charter, City Code, or Alaska Statutes. 28. Waiver. The failure of either Party to insist upon strict performance of any provision of this Agreement shall not constitute a waiver of or estoppel against asserting the right to require that performance in the future. A waiver or estoppel in any one instance shall not constitute a waiver of or estoppel against asserting the right to require that performance in the future. A waiver or estoppel in any one instance shall not constitute a waiver or estoppel with respect to a later breach or a similar nature or otherwise. A course of performance established by a party shall also not estop the other party from complaining of a later breach similar in nature. Contractual Agreement Between The City of Seward and Alaska Waste-Kenai Peninsula,LLC Page 10 of I I 3la 29. Construction. The rule of contract construction that ambiguities, if any, in a writing be construed against the drafter shall not apply to this Agreement. 30. Severability. In the event that any term, condition, or provision of this Agreement is declared by a court of competent jurisdiction to be void or unenforceable, the remaining terms, conditions, and provisions of this Agreement shall remain valid and enforceable as if such void of unenforceable term, condition, or provision was omitted from the Agreement when the Agreement was first executed. IN WITNESS WHEREOF, the Parties have executed this Agreement the day and year set opposite their respective signatures. By: City of Seward Alaska Waste—Kenai Peninsula, LLC /..►_i/ a4_-- ) m Hunt, City Manager Matt O'Connell, Division Manager Date: 11I2)apt O. ATTEST: • ( 4 ef it it ,iri i" -, Y.i i. Jo anna Kinney, C (City Seal) f? : \ El e • SEALw. • ® : • —.®—, een , • • t``•sC. OF M. jt,, , Contractual Agreement Between The City of Seward and Alaska Waste-Kenai Peninsula,LLC Page I 1 of 11 3� Final Certificate of Results Regular Municipal Election Tuesday,October 2,2012 Page 2 Proposition 1. ESTABLISHING AND ADOPTING A FINANCIAL DISCLOSURE FORM AND GUIDELINES FOR THE CITY OF SEWARD AND EXEMPTING MUNICIPAL OFFICIALS FROM THE REQUIREMENT OF STATE FINANCIAL DISCLOSURE LAWS - Shall the City of Seward establish and adopt its own financial disclosure form and provisions for the Mayor, City Council, Planning and Zoning Commission, and the City Manager by requiring substantially the same information as the Alaska Public Offices Commission required prior to 2007, and be exempt from Alaska Statute 39.50, the Alaska Public Officials Financial Disclosure Law? Election Day Votes After Canvass Votes Total Votes YES 204 21 225 NO 120 14 134 Proposition 2. FRANCHISE AGREEMENT FOR THE COLLECTION AND DISPOSAL OF GARBAGE AND REFUSE - Do you approve a seven-year franchise agreement with Alaska Waste — Kenai Peninsula, LLC for the collection and disposal of garbage and refuse? The franchise agreement contains an option to extend for up to an additional three years. The agreement allows for costs to be adjusted annually based on 140% of the Consumer Price Index. The agreement provides an opportunity for periodic S rate reviews with all other consumer rates to be set by resolution of the City Council. Election Day Votes After Canvass Votes Total Votes YES 219 27 246 NO 107 7 114 A total of 338 people voted at this election plus 38 counted absentee votes = 376 Total. Upon completion of the canvass, it is our opinion that the attached summary of election returns compiled above, accurately reflect the final totals for the Regular City Election held October 2, 2012. Dated this 4th day of October, 2012. f•- ,$ 3$ Seward, AK Code of Ordinances Page 1 of 3 Chapter 14.05.-Garbage and Refuse] Footnotes: ---(3)--- State Law reference—See AS 29.35.050 for state provisions allowing municipalities to provide for a system of garbage and solid waste services; see AS 29.35.060 for state provisions allowing municipalities to grant franchises;see§7.10.210 et seq.as to garbage disposal in trailer courts. 14.05.010. - Refuse service provided and required. (a) Every person occupying and/or owning a building or building site within the city shall use the system of refuse disposal provided in this chapter, unless the person utilizes a carrier holding a valid permit from the Regulatory Commission of Alaska. (b) The city shall either provide or contract for collection and disposal of refuse.The public works department of the city or the contractor shall prescribe routes and days for collection. When such routes or days are established or changed, reasonable notice thereof shall be given to affected customers. No other carrier other than one authorized by the Regulatory Commission of Alaska may collect, dispose, or remove refuse from any premises in the city. Nothing in this section shall be deemed to prohibit an occupant and/or owner from removing or causing the removal of refuse accumulated on the premises occupied by him and disposing of the same in a lawful manner. (Ord.415, 1975; Ord. 428, 1976; Ord. 504, 1982; Ord. No. 2012-008, § 1, 9-10-2012) 14.05.015. - Deposit of refuse. (a) No person shall place or deposit any refuse in or upon any public alley, street or highway, sidewalk, park or other public place in the city except as herein expressly authorized. No person shall place any refuse on land of another. (b) Dumpsters or trash receptacles located on public property may only be used for depositing small quantities of refuse generated in connection with public activities such as picnicking, camping, touring, pleasure boating, sport fishing, or other outdoor recreation. No person shall deposit refuse generated by residential, commercial, or industrial uses in or near any dumpster or trash receptacle located on public property. No person shall deposit refuse in or near any dumpster or trash receptacle located on public property contrary to any instructions posted on or near the dumpster or trash receptacle. (c) No person shall deposit refuse in a private dumpster without the owner's consent. Owners of dumpsters may post signage on or near privately owned dumpsters stating that unauthorized use is a violation of the City Code. (d) Violation of this section is subject to a fine of$100.00 for each offense. (Ord. 504, 1982; Ord. 96-28) 14.05.020. -Transportation. No person shall transport refuse within the city unless it is transported in a covered or enclosed vehicle or one which is loaded in such manner as to prevent any of the contents from escaping. (Ord. 417, 1976; Ord. 504, 1982) 14.05.025. - Use of containers and placement. (a) 39 about:blank 9/11/2015 Seward, AK Code of Ordinances Page 2 of 3 Every person occupying and/or owning a building in the city shall provide containers suitable for collection of refuse.All refuse such as vacuum cleaner dust, nonexplosive liquids, sweepings and other refuse that poses a hazard to collection or risk of spillage in normal collection shall be individually packaged prior to placement in a container. (b) Customer containers shall be placed abutting a dedicated public right-of-way. Only city containers may be placed upon the public right-of-way. (Ord. 504, 1982; Ord. No. 2012-008, § 2, 9-10-2012) 14.05.030. -Container specifications generally. (a) All containers shall conform to the following minimum specifications: (1) Shall not exceed ninety-six gallons capacity; (2) Shall not exceed two hundred twenty pounds when filled; (3) Shall not exceed sixty-five pounds empty weight; (4) Shall be watertight with an animal-proof lid and of adequate durability for continued use. No corrugated cardboard box shall be used except as herein provided. No fifty or fifty-five gallon steel petroleum drums or the like shall be permitted,whether cut down or otherwise altered. (b) Certain bulk rubbish and waste material containers may be approved by the public works department of the city. Such containers shall be kept in a clean and sanitary condition and shall be provided with tight lids. (Ord. 504, 1982; Ord. 95-06; Ord. No. 2012-008, § 3, 9-10-2012) 14.05.035. - Container racks. Containers or container racks shall be designed so as to prevent the upsetting or spillage by wind, weather, animals, or accident.Violation of this section due to bear attractants is subject to a fine of one hundred dollars for each offense.The fine for the first offense only will be waived upon proof of purchase or lease of the appropriate containment measure(e.g. locking dumpster lid, bear-resistant dumpster, or bear-resistant garbage can), provided the containment measure is in place within thirty days of the date of the violation. More than one violation of this section by dumpster customers will require the occupant and/or owner to obtain a locking dumpster lid or bear-resistant dumpster for the period May through October. In addition to the one hundred dollar fine, more than one violation of this section by customers utilizing garbage cans will require the occupant and/or owner to purchase or lease a bear-resistant garbage can. (a) Containers or container racks shall not be placed on the public right-of-way. (Ord. 504, 1982; Ord. 95-06; Ord. No. 2012-008, §4, 9-10-2012) 14.05.040. - Frequency of collection. All garbage and rubbish receptacles shall be emptied and cleaned at least weekly.All waste material must be removed at least once each month. Building or construction waste and debris shall be removed weekly and upon completion of construction. (Ord. 504, 1982) 14.05.045. - Brush,tree trimmings, etc. about:blank 9/11/2015 Seward, AK Code of Ordinances Page 3 of 3 Brush, trees, lawn cuttings or similar materials shall be securely bound in bundles not to exceed two feet in diameter.They may be placed in disposable cardboard containers. Branches or logs shall not be more than three inches in diameter or more than four feet in length. Containers shall not exceed 65 pounds in weight. (Ord. 504, 1982) 14.05.050. - Large boxes, crates, etc. Large appliance cartons,shipping crates or small non-bulky items or furniture and similar materials shall be disassembled prior to collection. (Ord. 504, 1982) Lt1 about:blank 9/11/2015 Seward, AK Code of Ordinances Page 1 of 1 14.01.065. - Discontinuance of service and remedies by city. (a) Termination of service. Upon five days'written notice,the city reserves the right to discontinue or reduce any one or more utility services for any one or more of the following reasons: (1) Intent to defraud the city of payment for all or any part of such use; (2) Use in an illegal manner or for the furtherance of an illegal purpose or for any purpose other than that described in the application for service; (3) Resale or redistribution of a utility service; (4) Tampering with any utility service connection or property of the city; (5) Nonpayment of any bills for utility services; (6) Refusal of reasonable access to the premises for inspection, repair, maintenance, replacement or operation; (7) Noncompliance with any requirement imposed by the code or by resolution; (8) Failure to repair any defect or break in utility service,to the extent it is the customer's obligation to do so; (9) Other equipment or structures which by their proximity or nature introduce a safety hazard; (10) Such other reason or condition as the city may deem appropriate. (b) Lien on property. Charges levied in accordance with this title shall be a debt due to the city and a lien upon the property which has been benefitted by the services. Change of ownership or occupancy of premises delinquent shall not be the cause for reducing or eliminating any applicable penalties. (c) Expenses. The expense of discontinuance, reduction, removal or closing, as well as the expense of restoring service, shall be a debt due to the city(and a lien upon the property)and may be recovered by civil action in the name of the city against customer,the person, or both. (d) Criminal penalties. Any person who shall continue any violation other than an obligation to pay money beyond written notice and reasonable time to cure shall be guilty of a misdemeanor in addition to being liable in damages and, upon conviction thereof, shall be fined in an amount not exceeding$25.00 for each violation. Each day in which any such violation shall continue shall be deemed separate offense. (e) Safety. Conditions which cause a clear and immediate safety hazard to customers or other personnel shall be cause for immediate disconnection of service without notification. (Ord. 504, 1982; Ord. 610, 1988; Ord. 95-06) 142- about:blank 9/11/2015 q//ii/ , A J RECEIVED exvi /Apky1 C--e- SEP 082015 September 8, 2015 OFFICE OF THE CITY CLERK The purpose of this correspondence is to protest the garbage /trash services being forced upon me. I am retired and spend a great amount of my time traveling. I DO NOT desire this service or expense. I question the legality of this mandate and also consider the ethical aspect of this decision offensive. This is particularly the case since I already have a service available that my borough property taxes pay for, and have opted to use it for more than 5 years. I reside less than a mile from the transfer station which I use to recycle. I spent more than 20 years on active duty in the US Army, to ensure that our freedoms of choice are preserved. How does the City Council find it appropriate to take my choices away by mandating a service I DO NOT want from a specific vendor? What's next? - mandate a specific cable service or cell phone provider? The only rationale I have been provided, is that a small number of irresponsible residents create an unhealthy and unsightly environment. If this is the case, do your job and enforce the existing laws that apply - don't mandate that everyone should pay the bill! I would also like to share some of the reasons that I "CHOSE" to utilize the Borough Facility: * close proximity • disposal of recycling materials * negates the storage of garbage and dragging of cans approximately 100 yards • cleaning up of messes created by wind, birds, dogs, bears,etc. • spending of more than $350 per year that I DO NOT need or desire * inconvenience of stopping and starting of service each time I travel As I am sure the council is aware, there are a significant number of residents who are disgruntled with the mandate. This includes a number of seasonal resident being forced to participate. I believe the city council should immediately remove this mandate and represent the people of Seward! Z71 ------) • rd Oren 415 Afognak email: noren richard@yahoo.com cell: (907) 360-5625 ct ( I ( 'AI5 Brenda BaIlou UCC-'✓ICe— From: Richard Noren <noren_richard@yahoo.com> Sent: Tuesday, September 08, 2015 2:29 PM RECEIVED To: Brenda Ballou Subject: Fwd: garbage pickup SEP Q 82015 OFFICE OF THE CITY CLERK Sent from my iPhone Begin forwarded message: From: Molly<molquill@a,aol.com> Date: September 8, 2015 at 12:25:12 PM AKDT To: "noren richardAyahoo.com" <noren richardAyahoo.com> Subject: garbage pickup To whom it may concern I am writing today to express my concern and dissatisfaction with the recent decision to impose a mandatory garbage pickup on the citizens of Seward. I have heard many reasons as to why this might have occurred. Whatever the reason I am against being forced to use a service for which I have no use. I live fairly close to the transfer station and take my garbage directly there. I am not a full time resident and would be paying for a service that I do not use, not to mention I have no need to drag a garbage can around and cleanup after wildlife that gets into the can. If there are issues with certain citizens not taking care of garbage on their property then use existing city code to fix the problem. If this is just another attempt at more money for the general fund then it is an appalling tactic. Please reconsider your decision and reverse this requirement. The current system of deposing of my garbage works fine and is not broken. Do not try and fix it. Fredrick Ramsey 2311 Afognak Seward AK NOTE: This message was trained as non-spam. If this is wrong, please correct the training as soon as possible. Spam Not spam Forget previous vote °I ) ILI S Johanna Kinney From: David Squires Sent: Thursday, September 03, 2015 3:15 PM To: Johanna Kinney Subject: RE: Questions for 9/14 work session Johanna, Can you put it with the Council packet? David From: Johanna Kinney Sent: Monday, August 31, 2015 4:48 PM To: Jim Hunt; Ron Long; Kris Erchinger; Will Earnhart (wearnhart(aakatty.com) Cc: Brenda Ballou; David Squires Subject: FW: Questions for 9/14 work session Hi All, Some questions Council Member Squires is intending to ask at the work session on September 14th. He wanted me to distribute ahead of time so staff could be prepared to answer them, which is helpful. Thanks, yon <1, From: David Squires Sent: Monday, August 31, 2015 4:44 PM To: Johanna Kinney Subject: Questions for 9/14 work session Johanna, Here are some questions for staff concerning the 9/14 work session. Other Council members may be interested in these questions too. 1. Under Section 14.05.010 (a), does the City or the contractor hold a valid permit from the Regulatory Commission of Alaska? 2. Under Section 14.05.010(b), if the occupant and/or owner uses the procedure stated in the last sentence and KPB or the contractor holds a valid permit from the RCA, why does the occupant and/or owner need to use the City provided service? 3. Is the City using Section 14.01.065 a 5 to shut off the electric and/or water (utilities) for non-payment for garbage collection? 4. If the answer to the above question is yes; then I assume the garbage collection is a utility and therefore can have a discontinuance, temporary shut-off and restoration of service? 5. What impacts is there to the budget if residents can discontinue service or temporary shut off the service? (Under Section 14.01.060 B the temporary shutoff three months or less shall be charged in an amount set by resolution.) I think Will is scheduled to be at this meeting, he may be interested in these questions also. David 1 Brenda Ballou From: Will Earnhart <wearnhart@akatt A C/Lcc Sent: Friday, September 04, 2015 7:46 To: Johanna Kinney;Jim Hunt; Ron L Cc: Brenda Ballou; David Squires; Dc Subject: RE: Questions for 9/14 work ses5 / 9 Na/(7..) Short answers from legal: 1. Alaska Waste holds the current tariff. Seward has the cei „H.-E.C.-TE 1-800-247-8683•www.essvote.com ity and Convenience,) which establishes the exclusive franchise. 2. The last sentence in 14.05.010(b) simply makes it clear a landowner can bring garbage to the dump or use some other method, as long as it complies with the law; they don't have to wait for scheduled service. Regulation under the RCA is intended to allow and regulate an exclusive franchise for the geographical area. In other words, there is no other contractor with a valid permit. 3. The City can terminate all utility services, but has generally not utilized this procedure for other than possibly as a threat to bring an account current after repeated refusals to enter into a payment agreement. 4. 14.01.060(b)only requires that temporary shut offs of less than three months require a fee, (set by resolution.) Longer shut offs would be managed by city or contractor policy. I'm not sure how this would apply to other utilities that are not mandatory, such as electrical. 5. I don't know the budget implications, but they are believed to be negligible. William A. Earnhart wearnhart@akatty.com WOHLFORTH I BRECHT I CARTLEDGE A Professional Corporation 900 West 5th Avenue, Suite 600 Anchorage,AK 99501 Phone: 907.276.6401 Direct: 907.339.3602 Fax: 907.276.5093 NOTICE: This communication is confidential, it is intended only for the named recipient(s) above and may contain information that is privileged, attorney work product or otherwise protected by applicable law. If you are not the intended recipient or believe that you may have received this communication in error, please notify the sender and delete this e-mail. Unintended recipients of this e-mail should not print, copy, retransmit, disseminate or otherwise use the information. ANY FEDERAL TAX ADVICE CONTAINED IN THIS MESSAGE SHOULD NOT BE USED OR REFERRED TO IN THE PROMOTING, MARKETING OR RECOMMENDING OF ANY ENTITY, INVESTMENT PLAN OR ARRANGEMENT, AND SUCH ADVICE IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY A TAXPAYER FOR THE PURPOSE OF AVOIDING PENALTIES UNDER THE INTERNAL REVENUE CODE. From: Johanna Kinney [mailtojkinney@cityofseward.net] Sent: Monday, August 31, 2015 4:48 PM To: Jim Hunt; Ron Long; Kris Erchinger; Will Earnhart Cc: Brenda Ballou; David Squires Subject: FW: Questions for 9/14 work session Importance: High Hi All, Some questions Council Member Squires is intending to ask at the work session on September 14`h. He wanted me to distribute ahead of time so staff could be prepared to answer them, which is helpful. Thanks, From: David Squires Sent: Monday, August 31, 2015 4:44 PM To: Johanna Kinney Subject: Questions for 9/14 work session Johanna, Here are some questions for staff concerning the 9/14 work session. Other Council members may be interested in these questions too. 1. Under Section 14.05.010 (a), does the City or the contractor hold a valid permit from the Regulatory Commission of Alaska? 2. Under Section 14.05.010(b), if the occupant and/or owner uses the procedure stated in the last sentence and KPB or the contractor holds a valid permit from the RCA, why does the occupant and/or owner need to use the City provided service? 3. Is the City using Section 14.01.065 a 5 to shut off the electric and/or water (utilities) for non-payment for garbage collection? 4. If the answer to the above question is yes; then I assume the garbage collection is a utility and therefore can have a discontinuance, temporary shut-off and restoration of service? 5. What impacts is there to the budget if residents can discontinue service or temporary shut off the service? (Under Section 14.01.060 B the temporary shutoff three months or less shall be charged in an amount set by resolution.) I think Will is scheduled to be at this meeting, he may be interested in these questions also. David NOTE: This message was trained as non-spam. If this is wrong, please correct the training as soon as possible. Spam Not spam Forget previous vote 2 Johanna Kinney From: David Squires Sent: Friday, September 04, 2015 4:16 PM To: Kris Erchinger; 'Will Earnhar;Jim Hunt; Ron Long Cc: Donna Charter;Johanna Kinney; Brenda Ballou Subject: RE: Questions for 9/14 work session Kris&Will, Thank-you both for your answers. Kris another question comes to mind is on the shut off process. How much staff time is spent on a possible disconnect, who puts on the notice to disconnect on the door and what is your estimate of the amount of funds used in a disconnect process? If we can come up with a fee for discontinuing a service would it be a benefit to the City? I know these questions seem silly but I have been asked by residents these questions and I do not have the answers for them. Be advised I have told everyone who has asked me questions on this item to come to the work session to ask their question(s) so they get it straight from the proper source. David From: Kris Erchinger Sent: Friday, September 04, 2015 1:23 PM To: 'Will Earnhart'; Jim Hunt; Ron Long Cc: David Squires; Donna Charter Subject: RE: Questions for 9/14 work session The City has disconnected electric service for two customers this summer for failure to pay refuse charges. In both of these cases,the individuals were offered the opportunity first to make a payment agreement with Alaska Waste,which they both refused. Then the City sent them a letter stating that if they would enter into an agreement with Alaska Waste to deal with their past due bill,the City would not intervene to add the charges to their utility bill. They still refused, so the amount was added to the utility bill and a late letter sent. No response, so we communicated with them in order to attempt to get them to enter into a payment agreement to cover their past due bill,to avoid adverse action. Both individuals stated that they had no intention of paying now or in the future. Based on refusal to pay— which is handled differently than inability to pay, where we work out a payment agreement—we sent out door hangers warning of our intent to disconnect. No response. We made numerous phone calls in advance of disconnecting service. Still no response. Service was disconnected based on our standard practice. Both bills have since been paid in full and utility service restored. Without this ability to disconnect service, I estimate that 30+customers would not have paid their bills. If service were not mandatory, there would be more than 100 customers(this is the approximate amount of customers who have indicated that they do not want to pay)who would elect not to pay,which would cause the City to have to renegotiate the tariff with the contractor, necessitating an increase in bills for those who agree to pay in order to cover the contractor's sunk and operating costs. Ultimately, it could threaten the viability of a refuse contract with a contractor. If that were to occur,the City would have to consider the cost of entering the refuse business. Thanks, Kristin Erchinger From:Will Earnhart [mailto:wearnhart@akatty.com] Sent: Friday, September 04, 2015 7:46 AM To:Johanna Kinney<jkinney@cityofseward.net>;Jim Hunt<jhunt@cityofseward.net>; Ron Long <rlong@cityofseward.net>; Kris Erchinger<kerchinger@cityofseward.net> Cc: Brenda Ballou<bballou@cityofseward.net>; David Squires<dlsquires@cityofseward.net>; Donna Charter <dcharter@akatty.com> Subject: RE:Questions for 9/14 work session 1 Short answers from legal: 1. Alaska Waste holds the current tariff. Seward has the certificate of need (Certificate of Public Necessity and Convenience,) which establishes the exclusive franchise. 2. The last sentence in 14.05.010(b)simply makes it clear a landowner can bring garbage to the dump or use some other method, as long as it complies with the law; they don't have to wait for scheduled service. Regulation under the RCA is intended to allow and regulate an exclusive franchise for the geographical area. In other words, there is no other contractor with a valid permit. 3. The City can terminate all utility services, but has generally not utilized this procedure for other than possibly as a threat to bring an account current after repeated refusals to enter into a payment agreement. 4. 14.01.060(b)only requires that temporary shut offs of less than three months require a fee, (set by resolution.) Longer shut offs would be managed by city or contractor policy. I'm not sure how this would apply to other utilities that are not mandatory, such as electrical. 5. I don't know the budget implications, but they are believed to be negligible. William A. Earnhart wearnhart@akatty.com WOHLFORTH I BRECHT I CARTLEDGE A Professional Corporation 900 West 5th Avenue,Suite 600 Anchorage,AK 99501 Phone: 907.276.6401 Direct:907.339.3602 Fax: 907.276.5093 NOTICE: This communication is confidential, it is intended only for the named recipient(s) above and may contain information that is privileged, attorney work product or otherwise protected by applicable law. If you are not the intended recipient or believe that you may have received this communication in error, please notify the sender and delete this e-mail. Unintended recipients of this e-mail should not print, copy, retransmit, disseminate or otherwise use the information. ANY FEDERAL TAX ADVICE CONTAINED IN THIS MESSAGE SHOULD NOT BE USED OR REFERRED TO IN THE PROMOTING, MARKETING OR RECOMMENDING OF ANY ENTITY, INVESTMENT PLAN OR ARRANGEMENT, AND SUCH ADVICE IS NOT INTENDED OR WRITTEN TO BE USED,AND CANNOT BE USED, BY A TAXPAYER FOR THE PURPOSE OF AVOIDING PENALTIES UNDER THE INTERNAL REVENUE CODE. From: Johanna Kinney [mailto:jkinney@cityofseward.net] Sent: Monday, August 31, 2015 4:48 PM To: Jim Hunt; Ron Long; Kris Erchinger; Will Earnhart Cc: Brenda Ballou; David Squires Subject: FW: Questions for 9/14 work session Importance: High Hi All, Some questions Council Member Squires is intending to ask at the work session on September 14th. He wanted me to distribute ahead of time so staff could be prepared to answer them, which is helpful. Thanks, 2 From: David Squires Sent: Monday, August 31, 2015 4:44 PM To: Johanna Kinney Subject: Questions for 9/14 work session Johanna, Here are some questions for staff concerning the 9/14 work session. Other Council members may be interested in these questions too. 1. Under Section 14.05.010 (a), does the City or the contractor hold a valid permit from the Regulatory Commission of Alaska? 2. Under Section 14.05.010(b), if the occupant and/or owner uses the procedure stated in the last sentence and KPB or the contractor holds a valid permit from the RCA, why does the occupant and/or owner need to use the City provided service? 3. Is the City using Section 14.01.065 a 5 to shut off the electric and/or water(utilities) for non-payment for garbage collection? 4. If the answer to the above question is yes; then I assume the garbage collection is a utility and therefore can have a discontinuance, temporary shut-off and restoration of service? 5. What impacts is there to the budget if residents can discontinue service or temporary shut off the service? (Under Section 14.01.060 B the temporary shutoff three months or less shall be charged in an amount set by resolution.) I think Will is scheduled to be at this meeting, he may be interested in these questions also. David NOTE: This message was trained as non-spam. If this is wrong, please correct the training as soon as possible. Spam Not spam Forget previous vote 3