City of Santa Rosa v. Industrial Waste & Debris Box Rentals, Inc.

Opinion

KING, J.

In this case we hold that where a county adopts a plan to issue licenses to trash collection companies which give each company the sole right to collect trash in an area of the county, such a license is an “exclusive franchise or contract” within the meaning of Health and Safety Code section 4272.

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Thus, such a license ends upon the completion of its specified term

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and the licensee has no entitlement to the additional five-year continuation rights section 4272 gives to the holders of nonexclusive licenses.

Industrial Waste & Debris Box Rentals, Inc. (Industrial) appeals from a judgment terminating its right to collect trash in a newly annexed portion of the City of Santa Rosa (City) after October 11, 1983. We affirm the judgment.

On February 16, 1983, the City annexed an area on its southern border. Two trash collection companies claim the right to collect in this area. One company, Redwood Empire Disposal, Inc. (Redwood), claims the exclusive right to collect in the area after October 11, 1983, because it holds an exclusive franchise to collect within the City limits. The other company, Industrial, was collecting in the area at the time of trial under a written agreement with the County of Sonoma (County), Although this agreement expired on October 11, 1983, Industrial claims it may continue to collect in the area for five years after the date of annexation under the continuation rights provided in section 4272.

Section 4272 provides: “Where a local agency has authorized by franchise, contract, license, or permit, a solid waste enterprise to provide solid waste handling services and such services have been provided for more than three previous years, the solid waste enterprise may continue to provide such services up to five years after mailed notification to such enterprise . . . except that if the solid waste enterprise has an

exclusive franchise or contract

then the solid waste enterprise shall continue to provide such services and shall be limited to the unexpired term of the contract or franchise or five years, whichever is less.” (Italics added.)