HomeMy WebLinkAbout1996-03-12 - AGENDA REPORTS - WASTE SERVICES RESO 96 26 (2)AGENDA REPORT
City Manager Approval /y
Item to be presented by:
Lynn M. Harris
CONSENT CALENDAR
DATE: March 12, 1996
SUBJECT: RESOLUTION TO ESTABLISH ADMINISTRATIVE FEES RELATED TO
THE TRANSFER OF FRANCHISE TITLE FROM WESTERN WASTE
INDUSTRIES TO USA WASTE SERVICES, INC.
RESOLUTION NO. 96-26
DEPARTMENT: Public Works
At the February 27 ,1996 meeting of the City Council, staff was directed to discuss conditions related
to the approval of the merger between Western Waste Industries ( locally known as Blue Barrel
Disposal Company) and USA Waste Services. These discussions are ongoing and staff anticipates
that the conditions of approval will be finalized by the end of March 1996. Staff will return to the
City Council in late April to seek formal approval of the merger and authorization to transfer the
amended franchise agreement to the new parent company.
The existing franchise agreements provide for a franchise "transfer fee" to be assessed by the City to
cover anticipated costs of all direct and indirect administrative expenses related to the franchise
transfer including staff time, attorney services and consulting services. Section 12 of the residential
franchise agreement and Section 27 of the commercial franchise agreement indicate that the amount
of the transfer fee must beset by City Council Resolution (see attached Resolution No. 96-26). This
fee for special city services rendered is in conformance with the City Council's Cost Recovery Policy.
Staff anticipates that transfer fees of $5,000 per agreement should be adequate to recover the City's
related expenses. This equates to a combined transfer fee of $10,000 for the residential and
commercial franchise agreements. If the transfer fee proves inadequate, the agreements also provide
for an additional reimbursement of up to $5,000 per agreement for any City costs that are not covered
by the transfer fee.
Finalization of the conditions of approval and transfer of the franchise agreement will be contingent
upon payment of the established transfer fee.
IMMORMIME� •�
Adopt Resolution 96-26 establishing an administrative fee associated with transfer of the franchise
title from Western Waste Industries (parent company of Blue Barrel Disposal Company) to USA
Waste Services, Inc.
Resolution No. 96-26
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RESOLUTION NO. 96-26
A RESOLUTION OF THE CITY OF SANTA CLARITA, CALIFORNIA
ESTABLISHING FRANCHISE TRANSFER FEES
WHEREAS, on July 23, 1993, the City of Santa Clarita entered into an agreement ("Commercial
Agreement") with Blue Barrel Disposal for the collection, transportation, recycling, composting and
disposal of commercial solid waste handling within the City; and
WHEREAS, on February 20, 1991, the City of Santa Clarita entered into an agreement ("Residential
Agreement") with Santa Clara Valley Refuse Co., Inc. d.b.a. Blue Barrel Disposal for the collection,
transportation, recycling, composting and disposal of commercial solid waste, green wastes and
recyclables handling within the City; and
WHEREAS, the Commercial Agreement and Residential Agreement allow a transfer fee to be
collected by the City to recover the anticipated costs of all direct and indirect administrative expenses,
including consultants and attorneys, necessary to adequately analyze the request for franchise
transfer; and
WHEREAS, it has become necessary for the City to analyze arequest for franchise transfer on behalf
of Blue Barrel Disposal Company; and
WHEREAS, the City has incurred and reasonably anticipates to incur expenses in the amount of
$10,000;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Santa Clarita as
follows, attached hereto and incorporated herein by reference:
SECTION 1. The City Council hereby adopts the transfer fees in the amount of $10,000.
SECTION 2. The City Council hereby reserves the right to adjust the transfer fees set by resolution
to allow for the City to recover any additional costs associated with the application onto collect fees
not covered by the transfer fee as provided for in the Residential Agreement and Commercial
Agreement,
PASSED, APPROVED AND ADOPTED THIS day of 1996.
MAYOR
ATTEST:
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) §
CITY OF SANTA CLARITA )
I, Donna M. Grindey, City Clerk of the City of Santa Clarita, do hereby certify that the
foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular
meeting thereof; held on the day of , 19 by the following
vote of the Council:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
CITY CLERK
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