HomeMy WebLinkAbout1996-03-26 - AGENDA REPORTS - RESID REFUSE FRANCHISE AGMT (2)AGENDA REPORT
City Manager Approv
Item to be presented
Lvnn M. Harris
CONSENT CALENDAR
DATE: March 26, 1996
SUBJECT: NOTIFICATION OF ANNUAL AUTOMATIC EXTENSION OF
RESIDENTIAL REFUSE FRANCHISE AGREEMENTS
DEPARTMENT: Public Works
BACKGROUND
The City's residential franchise agreements with Blue Barrel Disposal Company, Atlas Refuse
Removal Company and Santa Clarita Disposal Company for residential refuse service each have a
provision that automatically extends the term for twelve (12) months each year. This provision of
the agreement is commonly referred to as an "evergreeen" provision.
The residential agreements have a six (6) year term which began on April 15, 1991, The applicable
section of the agreement has been attached for your reference:. In April of this year, the agreements
will be extended to April 14, 2002 due to the automatic annual extension. The "evergreen" provision
insures that the agreements will always have a remaining term of six (6) years. The automatic twelve
(12) month extension for the residential franchise agreement is activated each April, which is the
anniversary of the agreements' adoption.
This item is intended for informational purposes only_ A detailed analysis of the "evergreen"
provision will be presented as part of the integrated waste management evaluation to be discussed
at the May 7, 1996 Study Session of the City Council.
RECOMMENDATION
Receive and file this report.
ATTACHMENT
Page 9 of the Residential Refuse Franchise Agreement
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Agenda Item:
rate of , the cash bond may be assessed by the City upon five (5) days -
prior written notice to the Grantee for purposes including, but not limited tot
(a) Failure of Grantee to pay the City sums due under the
terms of the Franchise Agreamentp
(b) Reimbursement of costs borne by the City to correct
Franchise Agreement violations not corrected by Grantee,
after due notice/ and
(c) Monetary remedies or damages assessed against Grantee
due to breach of Franchise Agreement;
(2) The Grantee shall deposit At sum of money sufficient to
restore the cash bond to the original amount within thirty (30) days after
notice from the City that any amount has been withdrawn from the cash bond.
B. IIBIUMCe Coverage
Contemporaneously with the execution of this Franchise Agreement, the
Grantee shall deposit copies of insurance policies or endorsements evidencing
the existence of policies of insurance required pursuant to this Franchise
Agreement.
SECTION 10 - TE MI,EXTrySIONS
A. The term of this Agreement shall be for a period of six (6) years
commencing on April 15, 1991, and ending on April 14, 1997. At the conclusion
of the first twelve (12) months of the term hereof and at the conclusion of
each twelve (12) -month period thereafter, this Agreement shall be extended
twelve (12) additional months so that the term of this Agreement shall, at all
times, remain at six (6) years, unless terminated by notice, as set forth in
Section 10.B., below, or terminated for default.
B. Should either party desire termination of the automatic twelve
(12) -month extension provision, such party shall give written notice to the
other party of such termination, at least thirty (30) days prior to the end of
each twelve (12) -month period. Such notice shall terminate this automatic
twelve (12) -month extension provision, and this Agreement shall then remain in
effect for the balance of the six (6) -year term, unless earlier terminated for
default.
SECTION 11 - FRANCHISE TRaMSFERASLB CITY CONSENT RE UIRED
A. The franchise granted by this Franchise Agreement shall not be
transferred, sold, hypothecated, sublet or assigned, nor shall any of the
rights or privileges herein be hypothecated, leased, assigned, sold or
transferred, either in whole or .in part, nor shall title thereto, either legal
or equitable, or any right, interest or property therein, pass to or vest in
any person, except the Grantee, either by act of the Grantee or by operations
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WPS/RCY/AGR245459f