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Home My WebLink About03 - Termination and Assignment of Non - Exclusive Commercial Solid Waste FranchisesCity Council Agenda Item No. 3 December 14, 199E TO: Mayor and City Council FROM: General Services Director SUBJECT: Termination and Assignment of Non - Exclusive Commercial Solid Waste Franchises. Recommendations Adopt attached Resolution No._ terminating the solid waste franchise agreement between the City of Newport Beach and Haul Away Containers and assigning the City's franchise agreement with Orco Disposal to CR &R, Incorporated. Approve the attached Agreement to surrender the franchise agreement between the City of Newport Beach and Haul Away Containers. Approve the attached Assignment of the Orco Disposal Franchise Agreement to CR &R, Incorporated. Background Per City Ordinance No. 95 -63, the City currently has solid waste non - exclusive franchise agreements with 15 commercial haulers. Although 2 of the 15 franchisees, namely Orco Disposal and Haul Away, are both owned by CR &R Incorporated, both haulers are franchised under separate agreements. In a letter dated September 29, 1998, CR &R notified the City that they are no longer doing business as Orco Disposal nor Haul Away, and that all waste hauling operations are functioning as CR &R. CR &R has requested that the City consolidate the two existing franchises to reflect the operational changes that are currently in effect. 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, including the Assistant City Attorney, has prepared a resolution terminating the Haul Away Franchise Agreement and assigning the Orco Disposal Franchise Agreement to CR &R. Approval of the attached documents will in no way relieve neither Orco Disposal nor Haul Away Containers of current nor previous franchise fee obligations. F: \Users \GSVNME1dddgeW OVEM8ER 98 \Council- CR &RMsignmadoc Very respectfully, David E. Niederhaus DEN /me Attachments: (A) Proposed Resolution No. 98- terminating the Haul Away Franchise Agreement and Assigning the Orco Disposal Franchise Agreement to CR &R, Incorporated. (B) Agreement to Surrender the Solid Waste Franchise Agreement with Haul Away Containers. (C) Assignment of Solid Waste Franchise Agreement to CR &R. FAUSERSMV\MEIdridgc \OCTOBER 98\Counci1- CR &RAssignm1.doc RESOLUTION NO. 98- 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. F: \UwwGSVWE1dndS6N0VEMBER 98 \Council- CR&RPssib mLdoc 2. The City Council hereby approves the assigmnent 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. ADOPTED this _ day of '1998. Dated: ATTEST LaVonne Harkless, City Clerk FAUsers \GSV\MEI &idgeWOVEMBER 98 \Counci1- CR &RAssig .t.dm LE "CITY" CITY OF NEWPORT BEACH, a Municipal Corporation 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 _ day of , 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 November 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 November 30, 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. FRANNCHISEE 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. \ '.MIS 1\SYS\UscmNGSNMEIdndge \NOVEMBER 98 \Counci1- CR&RAssignmt.doc 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 LaVonne Harkless City Clerk APPROVED AS TO FORM: Robin L. Clauson Assistant City Attorney rAUSERSOSV W EIdndgc \OCTOBER 98\Counci1- CR&RAsslgmv1.duc in "CITY" CITY OF NEWPORT BEACH, a Municipal Corporation Dennis Danner Interim City Manager -'FRANCHISEE" CR&RqZorporated dba Haul Away Containers By: L,4"Ic) =-- Names: Title: C��si o-, Pr ¢.si Cjcl�f' Date: io %9 EXHIBIT "B" ASSIGNMENT OF SOLID WASTE FRANCHISE AGREEMENT This Assignment is made and entered into this day of , 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: \Use" \GSV\MEldddge\NOVE4IBER 98\Counci1 -CR 4RAssignmtdm (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 Assiaunent. CITY OF NEWPORT BEACH, A Municipal Corporation Dated: S Dennis Danner Interim City Manager ATTEST: By: LaVonne Harkless City Clerk CR &R orporated M- Name: C , vicJ *=. Title: D; V1 si on Pr¢siden-- APPROVED AS TO FORM: By: Robin L. Clauson Assistant City Attorney F. \Cat\Sl,..d\Resnl nti..l \Solid W as teHaulen \HaulAway \Resolution I00698.doc \\ MIS_ i\ SYS\USL'RS \GSV\MEldHdgc \OCTODER 9MCuuncil-CR&RAssignm6duc