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HomeMy WebLinkAbout98-78 - Solid Waste Franchise Agreements• RESOLUTION NO. 98- 78 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 HAUL AWAY CONTAINERS AND ASSIGNING THE COMMERCIAL SOLID WASTE FRANCHISE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND ORCO DISPOSAL TO CR &R, INC. WHEREAS, on January 2, 1996, the City of Newport Beach entered into two (2) Franchise Agreements for commercial solid waste collection services. The first was issued to Haul Away Containers ( "Haul Away "), which was a Doing Business As (dba) of CR &R, Incorporated ( "CR &R" ). The second was issued to Orco Disposal ( "Orco ") which was also a dba of CR &R, Incorporated. Since 1996, Haul Away and Orco have operated separately within the City of Newport Beach; and • WHEREAS, the City was notified that Haul Away and Orco are no longer operating separately within the City of Newport Beach, and that all Haul Away and Orco operations have been transferred to, and are now operating as CR &R; and WHEREAS, CR &R has requested that the City consolidate the Haul Away and Orco Franchise Agreements into one agreement issued to CR &R. CR &R agrees to assume all of the conditions and responsibilities of the Franchise Agreements; and WHEREAS, the City Council has been presented with an agreement to terminate the Haul Away Franchise Agreement; and WHEREAS, the City Council has also been presented with an agreement to assign the Orco Franchise Agreement to CR &R. NOW THEREFORE, the City Council resolves as follows: 1. The City Council hereby approves the termination of the Franchise Agreement with Haul Away Containers. The Agreement to Surrender the Commercial Solid Waste Collection Franchise Agreement Between the City of Newport Beach and Haul Away Containers • attached hereto as Exhibit "A ", is hereby approved and the City Manager is authorized to execute the Agreement as written. FdUsen \GS V\ME1Mdge\NO V EMBER 98 \Counci1- CR &RAssignmadoc • 2. The City Council hereby approves the assignment of the Orco Disposal Franchise to CR &R. The Agreement to Assign the Orco Disposal Solid Waste Franchise Agreement to CR &R attached hereto as Exhibit `B ", is hereby approved and the City Manager is authorized to execute the Assignment as written. C ADOPTED this 14thiay of December , 1998. Dated: December 15, 1 ATTEST "CITY" CITY OF WPORT BEACH, a Muni I Corporation n By: 'r LaVonne Harkless, City Clerk �4FORN�� F: UsewGMMEldridge \NOVEMBER 9B \Co=i1- CR &RAS ig=LdD Mayor • EXHIBIT "A" AGREEMENT TO SURRENDER COMMERCIAL SOLID WASTE COLLECTION FRANCHISE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND HAUL AWAY CONTAINERS This Agreement is entered into on this day, the 1A day of ,�b� c e b& ` , 1998 and executed by and between the CITY OF NEWPORT BEACH, a municipal corporation ( "CITY "), and CR &R Incorporated ( "CR &R), dba Haul Away Containers ( "FRANCHISEE "). RECITALS Pursuant to City Ordinance No. 95 -63, CITY and FRANCHISEE entered into a Commercial Solid Waste Collection Franchise Agreement dated January 2, 1996 ( "AGREEMENT "). On September 29, 1998, CITY was notified that FRANCHISEE is no longer conducting business as Haul Away Containers and is operating solely as CR &R Incorporated effective immediately. NOW THEREFORE, CITY and FRANCHISEE agree as follows: • 1. The AGREEMENT is hereby terminated effective September 30, 1998 and shall be of no further force and effect. 2. By signing this agreement, FRANCHISEE agrees to surrender all rights to do business as Haul Away containers to operate commercial solid waste collection services within the City limits. 3. CR &R 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 October 31, 1998 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 Haul Away equipment from FRANCHISEE's service locations in the City limits. F: \Users \GS V\MEldridge \OCTOBER MC..il- CR &RAssig.Ldo • 6. FRANCHISEE agrees that it will obtain a new franchise agreement with the CITY prior to initiating future solid waste collection services as Haul Away Containers within the City limits. WITNESS THE EXECUTION OF THIS AGREEMENT ON THE DATE WRITTEN BELOW EACH SIGNATURE: Dated: ATTEST al is 159 LaVonne Harkless City Clerk • APPROVED AS TO FORM: Robin L. Clausen • Assistant City Attorney F: \Users \CSVWEIdndge \OCTOBER 98 \Couch- CR &RAssig` t.doc "CITY" CITY OF NEWPORT BEACH, a Municipal Corp tion By: Denms Danner Interim City Manager "FRANCHISEE'_' CR &R Inc orated dba Haul Away ain�� By: Names: Oa Ad �—=7. �Prl,r on Title: O, iston Pr¢cidm�} Date-. rr /rc0198 • EXHIBIT `B" ASSIGNMENT OF SOLID WASTE FRANCHISE AGREEMENT This Assignment is made and entered into this i vii, day of dec ro&r, 1998 by and between the City of Newport Beach, a municipal corporation, hereinafter referred to as "City" and CR &R Incorporated ( "CR &R" ), dba Orco Disposal, hereinafter referred to as the "Franchisee." RECITALS A. On January 2, 1996 Orco Disposal entered into a Franchise Agreement for commercial solid waste collection services with the City of Newport Beach ( "Agreement "); and B. Franchisee has ceased operations as Orco Disposal and all solid waste collection functions are now operating under CR &R. C. Section 18 of the Agreement provides that Franchisee may not assign, sell or transfer its authority to perform any portion of the solid waste collection services under the Agreement without prior express written consent of the City Council • D. Franchisee desires to obtain City Council approval of the assignment of the Agreement to CR &R Incorporated. NOW THEREFORE, it is mutually agreed by and between the undersigned parties as follows: Assignment City hereby consents to the assignment of the Agreement from Orco Disposal to CR &R Incorporated. 2. Conditions of Assignment CR &R Incorporated agrees to the following conditions of assignment: (a) All terms and conditions of the Agreement shall remain in full force and effect and the full and complete obligation of CR &R Incorporated. CR &R agrees to fully comply with all terms and conditions of the Agreement. (b) CR &R agrees that all solid waste collected by CR &R will be disposed of per the provisions of the Agreement at a location identified by City, which is currently any Orange County landfill. (c) CR &R agrees that the Agreement shall terminate on December 31, 2005 and • no extension of the Agreement is granted by this Assignment. F:\Usem\GSV\MEI&ndge\OCTOBER 98 \Counci1- CR &RAssignmLdm • • • (d) CR &R shall pay to City any and all deficient franchise fees, or other fees or obligations incurred by Orco Disposal under the Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Assignment. Dated: / a - / 5 Cie ATTEST: By: Cl LaVonne Harkless City Clerk am APPROVED AS TO FORM: By: OL= Robin L. Clausen Assistant City Attorney F:\Cat \.ShamMesolu6on \.Solid W aswHauleMV43ulA wayUResoludon100698.do F:\Usera \GSVWEIdridge \0CT0BER 98\Couacil- CR&RAssignmt.dx CITY OF NEWPORT BEACH, A Municipal Corporation Dennis Danner Interim City Manager CR &R, Incorporated By: Name: -0^-v;8 a�. Title: p;vlsior--� Prasidmnf- • • • STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, LAVONNE M. HARKLESS, 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. 98 -78, 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 14th day of December, 1998, and that the same was so passed and adopted by the following vote, to wit: Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: None Absent: None Abstain: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 151h day of December, 1998. (Seal) f / / City Clerk of the City of Newport Beach, California