Solid Waste Collection Annual Franchise Agreement Bond - City of Daphne, AL in Alabama

Brief Summary

Commercial garbage in Daphne has to be hauled by a licensed, franchised contractor or by the owner in city-approved vehicles. If you want that franchise, the City of Daphne expects a surety bond backing your annual franchise agreement before you start running routes.

The City of Daphne grants franchises to private haulers for the collection of garbage and trash, and its code requires commercial premises to use a licensed, franchised contractor unless they haul their own waste in approved vehicles. This bond is posted by the hauler with the City of Daphne as obligee and guarantees the hauler will meet the terms of its annual solid waste collection franchise agreement.

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How to Apply for a Solid Waste Collection Annual Franchise Agreement Bond:

• Apply to the City of Daphne for a solid waste collection franchise.
• Get the required bond amount and any required bond form from the city before ordering the bond.
• Have the legal company name exactly as it will appear on the franchise agreement.
• Provide owner information and, for larger amounts, company financial statements for underwriting.
• Pay the premium and receive the executed bond.
• Deliver the bond to the City of Daphne with the signed franchise agreement and keep it in force for each annual term.

Detailed Information About the Alabama Solid Waste Collection Annual Franchise Agreement Bond:

Why haulers need a franchise

Chapter 12, Article III of the Daphne Code defines a contractor as the City of Daphne Solid Waste Department or any person, firm or corporation the city has granted a franchise to collect garbage or trash. Sec. 12-33 then requires all occupants of commercial premises to have their garbage removed by a licensed, franchised contractor or to haul it themselves in vehicles approved by the code enforcement officer. Residents may also use a franchised contractor. In practice, a private company collecting garbage for Daphne businesses needs that franchise.

What the bond guarantees

The franchise is granted through an annual agreement with the city. The surety bond is the hauler's financial promise to the City of Daphne that it will perform under that agreement, which covers things like keeping service going for its customers and paying what it owes the city. If the hauler defaults and the city suffers a loss, the city can claim against the bond. The hauler then reimburses the surety for any claim paid.

Service rules the city enforces

The code sets curbside timing for collection, requires removal before accumulations become a sanitary nuisance, and lets the Solid Waste Department clean up after a contractor who leaves trash at a contracted site for more than seven days and bill the property owner. A hauler that leaves that kind of mess creates exactly the problem the bond exists to cover.

Before you file

The code does not set a bond amount or publish a bond form. The amount and wording come from the franchise agreement itself. Confirm the required amount, form and filing steps with the City of Daphne before the bond is issued.

Premium

The surety prices the premium based on the bond amount the city sets, the owner's credit and the company's financial strength.

Eligibility and Requirements for a Alabama Solid Waste Collection Annual Franchise Agreement Bond:

• City of Daphne named as obligee.
• Bond amount as set in the city's franchise agreement.
• Company name on the bond matching the franchise agreement.
• A current City of Daphne business license.
• Renewal or continuation of the bond each year the franchise is in effect.

Alabama Solid Waste Collection Annual Franchise Agreement Bond FAQs:

Official and Additional Resources for the Alabama Solid Waste Collection Annual Franchise Agreement Bond: