HomeMy WebLinkAboutAGENDA REPORT 1998 0107 CC REG ITEM 10G „4 . 384 (+1-)•
ITEM I 0 ' &•
City ` OF MooxPAxx,CALIFORNIA
of Moorpark
City Council Meetir;;
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AGENDA REPORT AcrioN: kdo �f lee: .
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BY: 07 196)0,--
TO:: The Honorable City Council
FROM: John Brand, Senior Management Analyst
DATE: December 19, 1997 (CC meeting of January 7, 1998)
SUBJECT: Consideration of Resolution No. consenting to the transfer of operations
due to the merger between Ojai/Rubbish Control,Inc. and Republic Industries.
BACKGROUND
In December, 1995, the City Council awarded exclusive Franchise Agreements for solid waste
services which, among other things, requires the consent of the City Council for any transfer of solid
waste operations within the City to another enterprise. Although Ojai/Rubbish Control is not a
signatory to the agreement, they have continued to operate within the City under certain provisions
of the state Public Resources Code, and they must abide by the current Franchise Agreement.
The Agreement (Section 17A. Franchise Transfer Fees) states, ” Any application for a franchise
transfer shall be made in a manner prescribed by the City Manager. The application shall include a
deposit of$5,000, to cover the estimated cost of all direct and indirect expenses, including CITY
staff, consultants' and attorneys', reasonably incurred by City to adequately analyze the application.
Any costs incurred by the CITY in excess of$5,000 shall be reimbursed by GRANTEE. In the event
that the CITY's costs are less than$5,000, CITY shall refund remaining deposit to GRANTEE." On
December 19, 1997, Rubbish Control Inc., submitted a $5,000 deposit to the City.
Additional requirements for the transfer may include such things as an updated certificate of
insurance, and a letter from Republic Industries acknowledging the terms of the current franchise
agreement; of the Moorpark Municipal Code; and of the limited duration operations may continue
in the City. The final requirement is the payment of a transfer fee. The Agreement (Section 17B.
Franchise Transfer Fees) states, "Upon approved transfer of this Agreement, GRANTEE shall pay
to CITY a transfer fee in the amount of$25,000 or 5 percent of gross revenue from the last twelve
months, whichever is greater." Based on their monthly reports, staff anticipates that $25,000 shall
be the greater amount, and therefore the amount due and payable to complete the transfer.
RECOMMENDATION
Staff recommends approval of Resolution No. , consenting to the merger between Ojai/Rubbish
Control, Inc and Republic Industries, contingent upon the completion of all of the requirements for
a transfer in the current exclusive Franchise Agreements, subject to final language approval by the
City Manager and City Attorney, and to the final satisfaction and a determination of completeness
by the City Manager.
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