Loading...
HomeMy WebLinkAbout07 - Termination of Non-Exclusive Commercial Solid Waste Franchise with CST EnvironmentalTO: FROM: Mayor and City Council General Services Director City Council Agenda Item No. 7 February 12, 2002 SUBJECT: Termination of Non - exclusive Commercial Solid Waste Franchise Agreement with CST Environmental, Inc. Recommendations Adopt attached Resolution No. 2002 -_ terminating the solid waste franchise agreement between the City of Newport Beach and CST Environmental, Inc. Backeround Per Chapter 12.60.030 of the Newport Beach Municipal Code, the City currently has solid waste non - exclusive franchise agreements with eighteen solid waste hauling firms. One of the eighteen firms has requested that the City terminate their solid waste franchise. The firm desiring to terminate their franchise agreement is CST Environmental, Inc. 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 and agreement to terminate the Franchise. Approval of the attached document will in no way relieve CST Environmental, Inc. of current nor previous franchise fee obligations. Very respectfully, David E. Niederhaus Attachments: (1) Proposed Resolution No. 02- CST Environmental, Inc. F:1Usem \GSWHannnond\Smfr Repom1021202CSM mination.dm terminating the Franchise Agreement with (2) Agreement to Surrender Commercial Solid Waste Collection Franchise Agreement between the City of Newport Beach and CST Environmental, Inc. F.\ Users \GSWHammond\SMfF Report \02 I 202CSTTe ination.doc RESOLUTION NO. 2002- 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 _ day of 2002 "CITY" CITY OF NEWPORT BEACH, A Municipal Corporation 1 Dated: BY: MAYOR ATTEST: CITY CLERK F:\ Users \GSVVHartunend\Resoluuon\ Council- F.,hiseRes_CSTTe m.dm 2 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. S. 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: Dated: ATTEST LaVonne Harkless City Clerk APPROVED AS TO FORM: Robin L. Clauson Assistant City Attorney "CITY" CITY OF NEWPORT BEACH, A Municipal Corporation Homer Bludau City Manager "FRANCHISEE" CST /Environmental, Inc. I By:" IzJ� Name: Subhas Khara Title: President Date: January-28. 2002