HomeMy WebLinkAbout07 - Termination of Non-Exclusive Commercial Solid Waste Franchise with CST EnvironmentalTO:
FROM:
Mayor and City Council
General Services Director
City Council Agenda
Item No. 7
February 12, 2002
SUBJECT: Termination of Non - exclusive Commercial Solid Waste Franchise Agreement
with CST Environmental, Inc.
Recommendations
Adopt attached Resolution No. 2002 -_ terminating the solid waste franchise agreement
between the City of Newport Beach and CST Environmental, Inc.
Backeround
Per Chapter 12.60.030 of the Newport Beach Municipal Code, the City currently has solid waste
non - exclusive franchise agreements with eighteen solid waste hauling firms. One of the eighteen
firms has requested that the City terminate their solid waste franchise. The firm desiring to
terminate their franchise agreement is CST Environmental, Inc.
Discussion
Per Chapter 12.63.130 of the City Municipal Code, the City Council has sole authority to
terminate and assign any non - exclusive commercial solid waste collection franchise.
Staff, with the assistance of the Assistant City Attorney, has prepared a resolution and agreement
to terminate the Franchise. Approval of the attached document will in no way relieve CST
Environmental, Inc. of current nor previous franchise fee obligations.
Very respectfully,
David E. Niederhaus
Attachments: (1) Proposed Resolution No. 02-
CST Environmental, Inc.
F:1Usem \GSWHannnond\Smfr Repom1021202CSM mination.dm
terminating the Franchise Agreement with
(2) Agreement to Surrender Commercial Solid Waste Collection Franchise
Agreement between the City of Newport Beach and CST Environmental, Inc.
F.\ Users \GSWHammond\SMfF Report \02 I 202CSTTe ination.doc
RESOLUTION NO. 2002-
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 CST ENVIRONMENTAL, INC.
WHEREAS, on February 13, 2001, the City of Newport Beach granted a Non - exclusive
Franchise to CST Environmental, Inc. for commercial solid waste collection services
("Franchise Agreement"); and,
WHEREAS, on December 21, 2001, the City was notified that CST Environmental,
Inc. is no longer operating within the City of Newport Beach; and,
WHEREAS, CST Environmental, Inc. has requested, in writing, that the City terminate
the Franchise Agreement; and,
WHEREAS, the City Council has been presented with an agreement to terminate the
Franchise Agreement; and
that:
NOW, THEREFORE, be it resolved by the City Council of the City of Newport Beach
1. The City Council hereby approves the termination of the Franchise Agreement with
CST Environmental, Inc. The Agreement to Surrender the Commercial Solid Waste Collection
Franchise Agreement between the City of Newport Beach and CST Environmental, 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 2002
"CITY"
CITY OF NEWPORT BEACH,
A Municipal Corporation
1
Dated: BY:
MAYOR
ATTEST:
CITY CLERK
F:\ Users \GSVVHartunend\Resoluuon\ Council- F.,hiseRes_CSTTe m.dm
2
EXHIBIT "A"
AGREEMENT TO SURRENDER
COMMERCIAL WASTE COLLECTION FRANCHISE AGREEMENT
BETWEEN THE CITY OF NEWPORT BEACH AND CST ENVIRONMENTAL,
INC.
This Agreement is entered into on this day, the _ day of
2002 and executed by and between the CITY OF NEWPORT BEACH, a municipal
corporation ( "CITY ") and CST ENVIRONMENTAL, INC. ( "FRANCHISEE ").
RECITALS
Pursuant to City Ordinance No. 95 -63, CITY and FRANCHISEE entered into a
Commercial Solid Waste Collection Franchise Agreement dated February 13, 2001
( "AGREEMENT ").
On December 21, 2001, CITY was notified that FRANCHISEE is no longer
operating within the CITY.
NOW THEREFORE, CITY and FRANCHISEE agree as follows:
1. The AGREEMENT is hereby terminated effective December 31, 2001 and
shall be of no further force and effect.
2. By signing this agreement, FRANCHISEE agrees to surrender all rights to
do business as CST Environmental, Inc. to operate commercial solid waste collection
services within the City limits.
3. FRANCHISEE shall be liable for payment to the CITY of all applicable
fees associated with the FRANCHISEE's performance of solid waste collection services
performed during the term of this AGREEMENT through January 30, 2002 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 this 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 Quarterly Disposal Report for the fourth
quarter activity performed from October 2001 through December 2001.
S. FRANCHISEE agrees that it has removed, or will remove within fifteen
days after City Council approval of this agreement all equipment from FRANCHISEE's
service locations within the City limits.
6. FRANCHISEE agrees that it will obtain a new franchise agreement with
the CITY prior to initiating future solid waste collection services within the City limits.
WITNESS THE EXECUTION OF THIS AGREEMENT ON THE DATE
WRITTEN BELOW EACH SIGNATUE:
Dated:
ATTEST
LaVonne Harkless
City Clerk
APPROVED AS TO FORM:
Robin L. Clauson
Assistant City Attorney
"CITY"
CITY OF NEWPORT BEACH,
A Municipal Corporation
Homer Bludau
City Manager
"FRANCHISEE"
CST /Environmental, Inc.
I
By:" IzJ�
Name: Subhas Khara
Title: President
Date: January-28. 2002