9.50.070 Franchise Responsibilities and Requirements
A. Access for Inspections and Delivery of Notices. Franchisees shall make all company premises, facilities and records related to their solid waste, recyclable materials and yard debris collection services (including, but not limited to: offices, storage areas, financial records, nonfinancial records, records pertaining to the origin of any solid waste collected by the franchisee, receipts for sale or delivery of collected recyclable materials, customer lists, and all records related to vehicle maintenance and safety which are required under ODOT motor carrier requirements and regulations and ORS Chapter 767) available for inspection by the City Manager or the City Manager’s designee within twenty-four (24) hours of notice by registered mail. Such inspections are only for purposes of enforcing this chapter and are restricted to normal business hours. During normal business hours, the franchisee shall make all company premises and facilities accessible to City employees for delivery of any written notices. Collection vehicles must be accessible for inspection during the normal operating hours for collection, in addition to normal business hours. Where receptacles are stored in the public right-of-way or when the City is inspecting a situation where the franchisee is allegedly commingling recyclable materials or yard debris with solid waste, the need for twenty-four (24) hour notice does not apply to inspection of receptacles or vehicles.
B. Indemnification, Bond, and Insurance.
1. A franchisee shall pay, save harmless and indemnify the City from any loss, damage, penalty or claim against the City on account of or in connection with any activity of the franchisee in the operation of the franchisee’s solid waste collection business, including activity by any approved subcontractor providing solid waste management collections and services. If such suit shall be filed against the City either independently or jointly with the franchisee or its subcontractor to recover for any claim or damages, the franchisee upon notice to it by the City shall defend the City against the action, and in the event of a final judgment being obtained against the City, either independently or jointly with the franchisee or its subcontractor, the franchisee will pay said judgment and all costs and hold the City harmless therefrom.
2. A franchisee shall furnish a performance bond, in a form approved by the City Attorney, by an acceptable surety company in the amount of $25,000.00, but may, in lieu of a bond, furnish an irrevocable letter of credit or assign a savings account or deposit in any federally insured financial institution in the amount of $25,000.00 on a form approved by the City Attorney. The security shall guarantee faithful performance of all the obligations contained herein with the premium for such bond or cost of such assignment to be paid by the franchisee furnishing the bond, letter of credit or making the assignment.
3. A franchisee shall maintain commercial general liability insurance on an occurrence basis in such forms and with such companies as shall be approved by the City Attorney, which will cover the franchisee’s business operation, including each vehicle operated by it. The insurance coverage shall include not less than $2,000,000.00 for one (1) person, nor less than $5,000,000.00 for bodily injury due to each occurrence, and not less than $2,000,000.00 for damage to property due to each occurrence and coverage of at least $5,000,000.00 in the aggregate per occurrence. All such insurance coverage shall provide a thirty (30) day notice to the City Manager or the City Manager’s designee in the event of material alteration or cancellation of any coverage afforded in the policies prior to the date the material alteration or cancellation shall become effective. Copies of all policies required hereunder shall be furnished to and filed with the City Manager or the City Manager’s designee prior to the commencement of operations or the expiration of prior policies, as the case may be. The franchisee shall furnish proof annually to the City Manager or the City Manager’s designee that the insurance remains in effect.
4. The provisions of this section, any bonds accepted by the City pursuant thereto, and any damage recovered by the City hereunder shall not be construed to excuse unfaithful performance by the franchisee or limit the liability of the franchisee under this chapter or the franchisee for damages, either to the full amount of the bond, or otherwise. (Ord. 3192 § 88, amended, 11/17/2020; Ord. 3172 § 7, added, 02/05/2019)