HomeMy WebLinkAbout2002-19 - Terminating CST Franchise AgreementRESOLUTION NO. 2002-19
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH TERMINATING THE
COMMERCIAL SOLID WASTE COLLECTION
FRANCHISE AGREEMENT BETWEEN THE CITY OF
NEWPORT BEACH AND CST ENVIRONMENTAL, INC.
WHEREAS, on February 13, 2001, the City of Newport Beach granted a Non - exclusive
Franchise to CST Environmental, Inc. for commercial solid waste collection services
( "Franchise Agreement'); and,
WHEREAS, on December 21, 2001, the City was notified that CST Environmental, Inc.
is no longer operating within the City of Newport Beach; and,
WHEREAS, CST Environmental, Inc. has requested, in writing, that the City terminate
the Franchise Agreement; and,
WHEREAS, the City Council has been presented with an agreement to terminate the
Franchise Agreement; and
that:
NOW, THEREFORE, be it resolved by the City Council of the City of Newport Beach
1. The City Council hereby approves the termination of the Franchise Agreement with
CST Environmental, Inc. The Agreement to Surrender the Commercial Solid Waste Collection
Franchise Agreement between the City of Newport Beach and CST Environmental, Inc. attached
hereto as Exhibit "A ", is hereby approved and the City Manager is authorized to execute the
Agreement as written.
Adopted this 12th day of February, 2002.
"CITY"
CITY OF NEWPORT BEACH,
A Municipal Corporation
L-31
EXHIBIT "A"
AGREEMENT TO SURRENDER
COMMERCIAL WASTE COLLECTION FRANCHISE AGREEMENT
BETWEEN THE CITY OF NEWPORT BEACH AND CST ENVIRONMENTAL,
INC.
This Agreement is entered into on this day, the _ day of
2002 and executed by and between the CITY OF NEWPORT BEACH, a municipal
corporation ( "CITY ") and CST ENVIRONMENTAL, INC. ( "FRANCHISEE ").
RECITALS
Pursuant to City Ordinance No. 95 -63, CITY and FRANCHISEE entered into a
Commercial Solid Waste Collection Franchise Agreement dated February 13, 2001
( "AGREEMENT ").
On December 21, 2001, CITY was notified that FRANCHISEE is no longer
operating within the CITY.
NOW THEREFORE, CITY and FRANCHISEE agree as follows:
1. The AGREEMENT is hereby terminated effective December 31, 2001 and
shall be of no further force and effect.
2. By signing this agreement, FRANCHISEE agrees to surrender all rights to
do business as CST Environmental, Inc. to operate commercial solid waste collection
services within the City limits.
3. FRANCHISEE shall be liable for payment to the CITY of all applicable
fees associated with the FRANCHISEE's performance of solid waste collection services
performed during the term of this AGREEMENT through January 30, 2002 including but
not limited to the following:
a. Current and outstanding Franchise Fees
b. All applicable charges associated with late payment of Franchise
Fees pursuant to Section 4 of this AGREEMENT
C. All applicable charges associated with report delinquencies
pursuant to Section 6 of the AGREEMENT
4. FRANCHISEE agrees to submit any outstanding Disposal Reports per
Section 6 of the AGREEMENT including Quarterly Disposal Report for the fourth
quarter activity performed from October 2001 through December 2001.
5. FRANCHISEE agrees that it has removed, or will remove within fifteen
days after City Council approval of this agreement all equipment from FRANCHISEE's
service locations within the-City limits.
6. FRANCHISEE agrees that it will obtain a new franchise agreement with
the CITY prior to initiating future solid waste collection services within the City limits.
WITNESS THE EXECUTION OF THIS AGREEMENT ON THE DATE
WRITTEN BELOW EACH SIGNATUE:
"CITY"
CITY OF NEWPORT BEACH,
A Municipal Corporation
Dated: By:
Homer Bludau
City Manager
ATTEST
LaVonne Harkless
City Clerk
"FRANCHISEE"
CSTIEnviror mental, Inc.
1
By:I IzJ�
Name:
Subhas Khara
Title: President
Date: January 23 2002
APPROVED AS TO FORM:
Robin L. Clauson
Assistant City Attorney
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, LEILANI I. BROWN, Deputy City Clerk of the City of Newport Beach, California,
do hereby certify that the whole number of members of the City Council is seven; that the foregoing
resolution, being Resolution No. 2002 -19 was duly and regularly introduced before and adopted by
the City Council of said City at a regular meeting of said Council, duly and regularly held on the
12th day of February, 2002, and that the same was so passed and adopted by the following vote, to
wit:
Ayes:
Heffernan, O'Neil, Bromberg, Adams, Mayor Ridgeway
Noes:
None
Absent:
Glover, Proctor
Abstain:
None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 13th day of February, 2002.
(Seal)
Deputy City Clerk
Newport Beach, California