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HomeMy WebLinkAbout06 - Termination and Assignment of Non-Exclusive Commercial Solid Waste FranchisesCity Council Agenda Item No. 6 November 9, 1998 TO: Mayor and City Council FROM: General Services Director SUBJECT: Termination and Assignment of Non- Exclusive Commercial Solid Waste Franchises Recommendations Adopt attached Resolution No._ terminating the commercial solid waste franchise agreement between the City of Newport Beach and Western Waste Industries and assign the City's franchise agreement with Waste Management of Orange County, Inc. to Waste Management of Orange County, Inc, a Division of Waste Management Collection and Recycling, Inc. Approve the attached Agreement to terminate and surrender the commercial solid waste collection franchise agreement between the City of Newport Beach and Western Waste, and to assign the Waste Management of Orange County Franchise to Waste Management of Orange County, Inc., a Division of Waste Management Collection and Recycling, Inc. Backeround The solid waste industry has experienced numerous ownership changes in recent years including the acquisition of Western Waste by USA Waste in 1996 and the merger of USA Waste and Waste Management, Inc. in July 1998. In a letter dated September 11, 1998, Waste Management of Orange County notified the City that Western Waste operations have merged into the existing Waste Management facilities effective September 1, 1998 and that the consolidated operations will conduct business as Waste Management of Orange County. The City was further notified that, in December 1997, Waste Management of Orange County, merged with Waste Management Collection and Recycling, Inc. As a result of the changes described above, Waste Management has requested that the City terminate its solid waste franchise agreement with Western Waste; and, assign the existing Waste Management of Orange County, Inc. franchise to Waste Management of Orange County, Inc., a Division of Waste Management Collection and Recycling, Inc. Discussion Per Chapter 12.63.130 of the City Municipal Code, the City Council has sole authority to terminate or assign any non - exclusive commercial solid waste collection franchise. Staff has prepared a resolution and an agreement to terminate the Western Waste franchise and to assign the Waste Management franchise to its new corporate name. Approval of the attached documents will in no way relieve Western Waste nor Waste Management of any current or outstanding franchise fee obligations. F:\ Users\ GSV \MEldridgeWOVEMBER98 \C..cil -WMI Wgr.d. Very respectfully, David E. Niederhaus DEN /me Attachments: (A) Proposed Resolution No. 98- — terminating the Western Waste Franchise and assigning the Waste Management franchise to Waste Management of Orange County, a Division of Waste Management Collection and Recycling, Inc. (B) Agreement to Surrender the Solid Waste Franchise Agreement with Western Waste, and to assign the Waste Management franchise to Waste Management of Orange County, a Division of Waste Management Collection and Recycling, Inc. F: \U.m\GSV\ME1dridge\N0VEMBER 98 \Counci1- WMI_Wgr.dm RESOLUTION NO.98- 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 WESTERN WASTE AND ASSIGNING THE COMMERCIAL SOLID WASTE FRANCHISE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND WASTE MANAGEMENT OF ORANGE COUNTY WHEREAS, on January 2, 1996, the City of Newport Beach entered into commercial solid waste collection services Franchise Agreements with Western Waste and Waste Management of Orange County; and WHEREAS, the City was notified that Western Waste has merged with another company and is no longer operating separately within the City of Newport Beach and that Western Waste and Waste Management of Orange County operations have transferred to, and are now operating as Waste Management of Orange County, a division of Waste Management Collection and Recycling, Inc. Waste Management of Orange County has agreed to assume all of the terms and conditions and responsibilities of the Western Waste Franchise Agreement and the Waste Management of Orange County Agreement; and WHEREAS, the City Council has been presented with an agreement to terminate the Western Waste Franchise Agreement and assign the Waste Management of Orange County Agreement; and NOW THEREFORE, the City Council resolves as follows: 1. The City Council hereby approves the termination of the Franchise Agreement with Western Waste. 2. The City Council hereby approves the assignment of the Waste Management of Orange County Franchise Agreement to Waste Management of Orange County, a division of Waste Management Collection and Recycling, Inc.. 3. The Agreement to Terminate the Commercial Solid Waste Collection Franchise Agreement Between the City of Newport Beach and Western Waste and to assign the Waste Management of Orange County Franchise to Waste Management Collection and Recycling, 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 1998. Dated: ATTEST LaVonne Harkless, City Clerk M "CITY" CITY OF NEWPORT BEACH, a Municipal Corporation Thomas Cole Edwards, Mayor F:\Cat\SharedWa%Resolution \Solid WasteHaulers \Western\102S9S.doc 2 AGREEMENT TO TERMINATE COMMERCIAL SOLID WASTE COLLECTION FRANCHISE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND WESTERN WASTE AND TO ASSIGN THE WASTE MANAGEMENT OF ORANGE COUNTY FRANCHISE TO WASTE MANAGEMENT COLLECTION AND RECYCLING, INC. This Agreement is entered into on this day, the _ day of November, 1998 and executed by and between the CITY OF NEWPORT BEACH, a municipal corporation ( "CITY "), and Waste Management of Orange County, a division of Waste Management Collection and Recycling, Inc., with regards to the following: RECITALS A. On January 2, 1996, the CITY entered into a Commercial Solid Waste Collection Franchise Agreement with Western Waste ( "WESTERN WASTE FRANCHISE "). On January 2, 1996, the CITY entered into a Commercial Solid Waste Collection Franchise with Waste Management of Orange County ( "WASTE MANAGEMENT FRANCHISE "). Both franchises will be referred to herein collectively as "FRANCHISES." B. Since January, 1998, Western Waste has been merged with USA Waste Services of California, Inc., a wholly owned subsidiary of USA Waste Systems, Inc. Since June 1, 1998, Western Waste has operated as USA Waste of California. Since December, 1997, Waste Management of Orange County has been merged with Waste Management Collection & Recycling, Inc., a wholly owned subsidiary of Waste Management of North America, Inc., which is a wholly owned subsidiary of Waste Management, Inc. C. On September 11, 1998, Waste Management of Orange County notified the CITY that USA Waste Systems, Inc. and Waste Management, Inc., had merged and would now operate under the name of Waste Management, Inc. The CITY was requested to cancel the WESTERN WASTE FRANCHISE and assign the WASTE MANAGEMENT FRANCHISE. D. The CITY desires to clarify the operations of the FRANCHISES and to terminate unnecessary agreements. NOW THEREFORE, the CITY and Waste Management of Orange County a division of Waste Management Collection and Recycling, inc. (hereinafter "WMOC") agree as follows: 1. WMOC hereby stipulates that the above - referenced recitals are true and accurate representations of the corporate status of Western Waste and Waste Management of Orange County. WMOC agrees that Western Waste and Waste Management of Orange County operations have been merged with and transferred to the corporate entity, Waste Management Collection & Recycling, Inc., and WMOC has authorization and legal standing to execute this Agreement, and to surrender the WESTERN WASTE FRANCHISE and to assume all responsibility of the FRANCHISES. 2. The WESTERN WASTE FRANCHISE is hereby terminated effective October 30, 1998, and shall be of no further force and effect. 3. By signing this Agreement, WMOC and Western Waste have surrendered all rights to operate commercial solid waste collection services under the name of Western Waste in the CITY limits. 4. CITY hereby consents to the assignment of the Waste Management Franchise to Waste Management of Orange County, a division of Waste Management Collection and Recycling, Inc. WMCO agrees to the following conditions of assignment: (a) All terms and conditions of the Waste Management Franchise shall remain in full force and effect and the full and complete obligation of WMOC. WMOC agrees to fully comply with all terms and conditions of the Franchise. (b) WMCO agrees that all solid waste collected by WMCO will be disposed of per the provisions of the Franchise Agreement at a location identified by City. (c) WMCO agrees that the Franchise Agreement shall terminate on December 31, 2005 and no extension of the Agreement is granted by this Assignment. 5. WMOC shall be liable for payment to CITY of all applicable fees associated with both the WESTERN WASTE FRANCHISE and the WASTE MANAGEMENT FRANCHISE and solid waste collection services performed under the FRANCHISES during the term of the Agreement through and including October 30, 1998. Liability shall include, but not be limited to, the following: (a) All current and outstanding franchise fees; (b) All applicable charges associated with late payment of franchise fees pursuant to Section 4 of the Franchises; 9 (c) All applicable charges associated with reporting delinquencies pursuant to Section 6 of the Franchises; (d) Any outstanding Disposal Reports per Section 6 of the Franchises. 6. The Board of Directors of WMCO has authorized execution of this Agreement, which authorization has been documented and provided to City prior to execution of this Agreement. WITNESS THE EXECUTION OF THIS AGREEMENT ON THE DATE WRITTEN BELOW EACH SIGNATURE: CITY OF NEWPORT BEACH, a Municipal Corporation Dated: By: Dennis Danner, Interim City Manager Dated: WASTE MANAGEMENT OF ORANGE COUNTY 0 Name Title APPROVED AS TO FORM: ROBIIN CLAUSON Assistant City Attorney F:\cat\shared\Ag \Solid Waste \Western \Term102898.doc C