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.
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• 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��
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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.
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• 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
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"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.
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•
•
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(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
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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