HomeMy WebLinkAbout07 - Termination of Non-Exclusive Commerical Solid Waste Franchise Agreement with A-Trojan DisposaCity Council Agenda
Item No. 7
February 8, 1998
TO: Mayor and City Council
FROM: General Services Director
SUBJECT: Termination of Nan - Exclusive Commercial Solid Waste Franchise Agreement
with A- Trojan Disposal.
Recommendations
Adopt attached Resolution No. 99 -- terminating the solid waste franchise agreement between
the City of Newport Beach and A -Trojan Disposal..
Approve the attached Agreement to surrender the franchise agreement between the City of
Newport Beach and A -Trojan Disposal.
Background
Per City Ordinance No. 95 -63, the City currently has solid waste non - exclusive franchise
agreements with 13 commercial haulers. In a letter dated January 18, 1999, A -Trojan notified the
City that A -Trojan was acquired by USA Waste, and requested that the City terminate the A-
Trojan Franchise Agreement. Previously, USA Waste merged with Waste Management, one of
the thirteen current franchised commercial haulers.
Discussion
Per Chapter 12.63.130 of the City Municipal Code, the City Council has sole authority to
terminate and assign any non - exclusive commercial solid waste collection franchise.
Staff, with the assistance of the Assistant City Attorney, has prepared a resolution to terminate
the A -Trojan Franchise. Approval of the attached documents will in no way relieve A- Trojan of
current nor previous franchise fee obligations.
Very respectfully,
David E. Niederhaus
DEN /me
F ; %USERWSV\M E2dridgcV ANUARY 99%Co=ci1- ATmjan.doc
Attachments: (A) Proposed Resolution No. 99- _ terminating the A -Trojan Disposal
Franchise Agreement.
(B) Agreement to Surrender the
Disposal.
FAUSERS\GSV\MEIdndgeVANUARY 99 \Council- ATmjan.doc
Solid Waste Franchise Agreement with A -Trojan
2
RESOLUTION NO. 99-
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 A- TROJAN DISPOSAL.
WHEREAS, on November 27, 1995, the City of Newport Beach granted a Non-
exclusive Franchise to A- Trojan Disposal for commercial solid waste collection services
( "Franchise Agreement "); and
WHEREAS, on January 18, 1999, the City was notified that A -Trojan Disposal has been
purchased by USA Waste and is no longer operating within the City of Newport Beach; and
WHEREAS, A- Trojan Disposal 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
NOW THEREFORE, the City Council resolves as follows:
1. The City Council hereby approves the termination of the Franchise Agreement
with A -Trojan Disposal. The Agreement to Surrender the Commercial Solid Waste Collection
Franchise Agreement Between the City of Newport Beach and A -Trojan Disposal attached
hereto as Exhibit "A ", is hereby approved and the City Manager is authorized to execute the
Agreement as written.
ADOPTED this _ day of 1999.
Dated:
%%WS- 1\SYMUSBR=SV EldndguUANUARY 9910....61- ATnj.n.dx
IN
"CITY"
CITY OF NEWPORT BEACH,
a Municipal Corporation
Dennis D. O'Neil
Mayor
03
ATTEST
LaVonne Harkless, City Clerk
Fol
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EXHIBIT "A"
AGREEMENT TO SURRENDER
COMMERCIAL SOLID WASTE COLLECTION FRANCHISE AGREEMENT
BETWEEN THE CITY OF NEWPORT BEACH AND A- TROJAN DISPOSAL
This Agreement is entered into on this day, the _ day of , 1999 and
executed by and between the CITY OF NEWPORT BEACH, a municipal corporation ( "CITY "),
and A- TROJAN DISPOSAL ( "FRANCHISEE ").
RECITALS
Pursuant to City Ordinance No. 95 -63, CITY and FRANCHISEE entered into a
Commercial Solid Waste Collection Franchise Agreement dated January 1, 1996
( "AGREEMENT ").
On January 18, 1999, CITY was notified that FRANCHISEE is no longer in operation
and was purchased by USA WASTE on October 22, 1998.
NOW THEREFORE, CITY and FRANCHISEE agree as follows:
1. The AGREEMENT is hereby terminated effective January 30, 1999 and shall be of
no further force and effect.
2. By signing this agreement, FRANCHISEE agrees to surrender all rights to do
business as A -Trojan Disposal 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 FRANCHISEE's performance of solid waste collection services performed
during the term of the AGREEMENT through January 30, 1999 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 the 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 a Quarterly Disposal Report for third quarter activity performed
from July 1998 through September 1998.
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
in the City limits.
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0ah -26 -99 04:06P
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 SIGNATURE:
Dated
ATTEST
LaVonnc Harklcss
City Clerk
APPROVED AS TO FORM:
Robin L. Clauson
Assistant City Attorney
"CITY"
CITY OF NEWPORT BEACH,
a Municipal Corporation
By•
Dennis Danner
Interim City Manager
"FRANCHISEE"
Title: \P rCC,
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