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HomeMy WebLinkAboutAGENDA REPORT 1995 1206 CC REG ITEM 11CTO: FROM: DATE: AGENDA REPORT CITY OF MOORPARK Honorable City Council Jill Rubin Myers, Solid waste Coordinator November 30 1995 (CC Meeting of December ITEM11,40so ') 6, 1995) SUBJECT: Consider Solid waste Exclusive Residential and Commercia Franchise Agreements with G.I. Rubbish and Moorpark Rubbish Disposal and Adopt Resolution 95- Establishing Service Rates, Rescinding Resolutions 94 -1091 and 95- 1105. SUMMARY The City Council is being asked to consider approving the proposed franchise agreements, subject to final language approval by the City Attorney and City Manager, with G.I. Rubbish and Moorpark Rubbish Disposal (Anderson) for exclusive collection, processing, and disposal of residential and commercial (including roll -off service) solid waste and recyclables. The proposed agreements will be provided under a separate cover. The City Council is also being asked to consider adopting Resolution 95- setting rates for January 1996 which include a reduction in the residential single - family rates, the establishment of a discounted "Super Recycler" rate, and setting of the commercial service rates. BACKGROUND As you are aware, Moorpark has a franchised system for solid waste collection services. In 1990, the City awarded exclusive franchise agreements to Moorpark Rubbish Disposal and G.I. Rubbish for residential service and each hauler services a designated residential area or zone. In 1991, the City awarded nonexclusive franchise agreements for commercial refuse collection. A commercial customer may select any of the four franchised commercial haulers (Moorpark Rubbish Disposal, E.J. Harrison and Sons, G.I. Rubbish, and Rubbish Control) to provide service. Service fees are negotiable, however, the City sets the maximum rates that a commercial hauler may charge. The commercial franchise agreements were originally due to expire on June 30, 1994 and the residential franchise agreements were originally due to expire on June 30, 1995. However, the City Council approved periodic extensions and the current expiration date for both agreements is December 8, 1995. The City also offers Temporary Refuse Collection Permits on an annual basis, October 1 - September 30. Temporary service is that 1 which is provided on a nonregularly scheduled basis. Service to construction, demolition, and landclearing projects would be typical types of temporary service. Four haulers currently hold Temporary Permits - Moorpark Rubbish Disposal, Browning- Ferris Industries (BFI), E.J. Harrison and Sons, and G.I. Rubbish. It is proposed to include temporary service in with commercial service for the new agreements. The California Public Resources Codes (PRC) notification to the existing commercial haulers has not yet been issued. PRC Sections 49520 and 49521, address the legal authority for local agencies to grant exclusive franchises and hauler notification requirements. The City Attorney has advised staff that when Moorpark changes from the current nonexclusive commercial franchise system to an exclusive commercial franchise system, the City must notify the other haulers of it's intent to award exclusive commercial franchises. In this case, E.J. Harrison and Rubbish Control may continue to provide services up to five years after receiving mailed notification, since they have been franchised in Moorpark for more than three years. These haulers will have to adhere to the negotiated franchise obligations and rate schedules set by the Council. The PRC notification will also apply to the franchised commercial hauler (E.J. Harrison) who has been issued a Temporary Collection Permit. A nonfranchised hauler, BFI, has been issued a Temporary Collection Permit. Because the current cycle of Temporary Collection Permits expired on September 30, 1995, and BFI has been permitted for less than three years (since 1994) , the five year PRC notice does not apply. BFI must discontinue providing service upon the expiration of the current Temporary Collection Permit cycle. The negotiation process between the Ad Hoc Negotiations Committee (Councilmembers Hunter and Wozniak) and the haulers continued through the Summer and into the Fall. Developments that have recently surfaced regarding G.I. Rubbish and its proposed sale proceedings delayed the Ad Hoc Committee's final recommendation. In an effort to conclude negotiations and ensure that Moorpark residents are able to take advantage of the negotiated reduced monthly rate without further delay, the Committee has negotiated a one -year term with G.I. Rubbish with no extension option, along with other terms and conditions that are the same as in the Moorpark Rubbish Disposal agreement. If the sale of G.I. Rubbish proceeds and the City is not satisfied with the purchaser's performance, due to the short term of the agreement, the City will be able to commence negotiations with another company within a year. Agreement Highlights Key components of the proposed agreement include a fixed term, one year term for G.I. Rubbish and a five year term for Moorpark 2 Rubbish with a possible three (3) year extension for Moorpark Rubbish Disposal, an annual index rate adjustment process, hauler performance measures, AB 939 indemnification, and various community benefit services offered by the haulers. As previously stated, it is proposed that the residential rates be decreased and that fixed commercial rates be established. Staff anticipates a slight increase in franchise revenues to the City, due to the setting of the commercial rates. The haulers project an increase in their commercial billing revenues and indicated that their increased commercial revenues allowed for the reduction in the residential service rates. The haulers have guaranteed the City that future franchise revenues will be no less than what we currently receive. The same agreement will apply to both haulers. Specific services are outlined in the "Scope of Services" exhibits of the attached agreement. Below, is a listing of the major issues to be included in the proposed agreement. These items differ from what is included in the current agreements. 1. Effective December 8, 1995, the term of the franchise will be approximately 1 year for G.I. Rubbish (through December 31, 1996) and 5 years for Moorpark Rubbish (through December 31, 2000). A three year renewal option may be exercised by the City for Moorpark Rubbish Disposal. 2. Effective January 1, 1996, the monthly rates for residential service will be $16.30 (20% discounted rate for senior citizens and super recycler rate), including green waste. Monthly Residential Rates (See agreement exhibit for detail) . Current Rate Regular 17.40 Senior Rate 14.10 Super Recycler n/a Proposed Rate Incl. Green Waste $16.30 $13.04 $13.04 Rate Reduction ($1.10) ($1.06) n/a Regular residential customers will be allowed to put out up to four - 45 gallon containers in any combination of solid waste and green waste. Unlimited recycling will continue. Super Recycler rates limit a residential customer to one solid waste container, one green waste container, and unlimited recycling. The Senior discounted rate (62 years and above) limit a residential customer to two solid waste containers, one green waste container, and unlimited recycling. It is also proposed to remove the discount for "Multi- family Zone" can rates. 3 3. Commercial rates will also be effective January 1, 1996 Monthly Commercial Rates: (see agreement rate schedule). Current Rates Hauler Proposed Not to Exceed Set Rates 1.5 cu (lx) $81 $83.20 3.0 cu (1x) $108 $93.60 1.5 cu (2x) $129.60 $145.59 3.0 cu (2x) $167.40 $166.39 A separate rate schedule is included for temporary /roll -off service. Haulers will submit a plan to the City for approval that identifies the designated commercial areas they plan to service, in an effort to reduce truck traffic. The proposed monthly commercial rates (itemized in detail in the attached resolution) are the same as the 1995 rates set for commercial service in Simi Valley. Commercial rates in Thousand Oaks vary as only the maximum amount is established. However, the monthly maximum amount for a three cubic yard bin serviced once weekly in Thousand Oaks is set at $94.40, compared to the haulers' proposed rate of $93.60. 4. The monthly commercial recycling and /or green waste collection rate will be discounted forty -four percent (44 %) from the commercial regular rate. 5. Annual Consumer Price Index (CPI) and Landfill Tipping Fee Adjustment: It is proposed that a simplified and more cost effective CPI index system, commonly used by other jurisdictions, be used to adjust the rates from 1997 forward. (1) CPI Formula: (Rate x 86 %) x CPI (2) Landfill tipping fee methodology: Residential Rate - $0.45 per $1.00 /ton landfill increase times current City residential recycling (less yard waste) diversion rate. (For example, a $1.00 landfill increase with a 25% diversion rate would equal: $.45 x 1 _ $ .45 x 25% _ $.45 - $ .11 = $0.34 rate increase.) Non - Residential Rate - $0.90 per $1.00 /ton landfill increase times current City nonresidential recycling diversion rate less yard waste, concrete, and asphalt. (For example, a $1.00 landfill increase with a 25% diversion rate would equal: $.90 x 1 = $ .90 x 25% _ $ .90 - $ .23 = $ .67 rate increase.) 4 Extraordinary costs adjustment language was provided and the haulers propose that the senior rate adjustment percentage be comparable to the percentage adjustment authorized for all other customers. Currently, the formula for determining an adjustment to the monthly residential refuse rate is calculated by combining three cost components - the Producer Price Index (PPI), Simi Valley Landfill Rate, and Diesel Fuel average cost per gallon. The above costs are weighted to reflect the representative portion of overall expenses for each hauler. 6. Franchise fees: The 16% franchise /AB 939 fee will be applied to all commercial revenue collected monthly. The franchise /AB 939 fee will not be applied on the landfill portion for roll - off service accounts. The existing commercial franchise /AB 939 fee is 18% (10% franchise fee and 8% AB 939 fee) . Of that 18 %, 10% was applied to the landfill portion of the roll -off rate. Of the proposed 16% franchise /AB 939 fee, eight percent (8 %) will continue to be designated as the AB 939 fee. The remaining eight percent (8 %) will be designated towards the franchise fee, resulting in a two percent (2 %) decrease from the current commercial franchise fee. The residential franchise fee will remain the same at 4% and the AB 939 fee of $1.00 per household will not change. 7. Submission of Franchise Fees: Haulers will remit franchise and AB 939 fees on a monthly basis, rather than the current quarterly basis. 8. Residential Billing Cycle: The haulers will modify the residential billing cycle. The bills will state that payment is due by the 25th of the second service month (currently, the bills state that payment is due by the 25th of the service month). A return envelope will be provided. Delinquent notices will be sent fifteen days after the end of the second month. Service may be cut -off at the end of the third month. 9. Green Waste Collection: Green waste collection will be implemented in January 1996. Targeted implementation is planned to coincide with the curbside christmas tree recycling program. Christmas tree recycling to include the provision of bins to multi - family complexes at a reduced rate and the continuation of one drop -off location to be provided, at no cost. Haulers will continue providing curbside christmas tree service at no cost. Residents may place trees outside a green waste recycling can. 10. Bulky Item /Clean -up Day: Haulers will provide at no cost, one curbside bulky item collection of up to two items per household, on an annual basis, effective January 1, 1996. The 5 haulers will also provide a Spring 1995 clean -up day at no cost. (The haulers provided at no cost a Fall 1995 clean -up day event under their existing agreement.) Staff to promote future "free" days at the Simi Valley Landfill, in place of clean -up events. Haulers may provide future clean -up day events at a cost to be determined. 11. AB 939 Indemnification: Haulers will indemnify the City against any and all fines levied by the State as a result of the failure of the hauler to meet the required AB 939 goals. 12. Complaint Reimbursement: In the event that the haulers can not resolve a legitimate service - related complaint and the customer contacts the City for resolution, the haulers will reimburse the City for all reasonable labor and materials directly expended by the City in resolving the complaint against the haulers. 13. Change in Scope: When new services are to be considered, the City may request to receive proposals from the haulers (within 120 days of notice) to determine potential costs to implement new waste reduction and efficiency programs. After "good faith" efforts, if the haulers are unable to develop and /or implement a City requested waste reduction program, the City may select an alternative service provider for that specific service request. 14. Flow Control: Due to recent Court decisions, the ability to control and direct solid waste to a designated facility as part of a franchise agreement is still allowed. 15. Promotion Assistance: At no cost, the haulers will purchase frames to be placed on the sides of the collection vehicles for program advertisements, assist with media promotion, and produce a newsletter. City will review all materials. 16. Compost Bin and Motor Oil Receptacle Distribution Program: At no additional cost to the City, haulers to promote and distribute as many compost bins and new reusable motor oil recycling bins each calendar year as requested by the City. 17. Identification of Non - recyclers: Within 90 days of the effective date of the Agreement, haulers will develop and implement, upon approval by the City, a program designed to encourage participation in the City's residential curbside recycling program for residents not participating as of the date of this agreement. Haulers will also work to reinforce participation with residents participating on a regular basis. Such efforts may include conducting periodic waste audits at identified residences, offering participation incentives, and sponsoring contests to award program participants. Haulers will also develop and implement a program to increase and reinforce recycling participation at multi - family residential complexes and commercial areas. Such programs will be conducted at a minimum of two times per year. 18. Multi- family Recycling Bins and Pails: Bins shall be specifically designed for recycling in order to reduce material theft and product contamination. Decals shall be affixed to such bins identifying materials to be deposited in City's program and /or other information pertaining to the contents of the bin. Haulers to provide, at no cost to City, individual recycling pails to multi - family residents upon request by the City. The City shall approve the size and type of recycling pail the hauler provides to residents. Recycling pails shall become the property of hauler. 19. Special Events. Haulers to jointly share equally in the costs to provide the equivalent of 200 cubic yards of solid waste collection and transportation service including all landfill fees, at no charge to the City, for community and special events (i.e., Hazardous Waste Collection Events, Labor Day in the Park, Fourth -of -July, non - profit litter reduction efforts, etc.) every calendar year, as directed by the City Manager. 20. Newspaper Drop -Off Program: (Continuation) Haulers responsible for maintaining cleanliness of site, including application of informative container decals and prompt removal of graffiti. 21. Collection from City Facilities: At no charge, haulers to furnish sufficient receptacles, as determined by the City, for collection of solid waste, source separated recyclable and compostable materials at every facility owned or operated by the City, in the hauler's service area, and remove the contents of these containers (at no cost) on a schedule approved by City. 22. Public Area Collection: At no cost, each hauler will provide solid waste and recyclables collection service from barrels not to exceed 45 gallons in capacity placed on public right - of -way at no more than 10 locations designated by the City (20 locations total). 23. Spill Clean Up. Haulers to clean -up all spills of discarded waste occurring during the collection process immediately upon the occurrence of the spill. Haulers to close any gates after making collections. The proposed agreement is in the process of its final review by the City Manager, City Attorney, and haulers. Staff feels that if the City Council concurs with the various points of the agreement as recommended by the Committee and staff, the agreement can be 7 approved on December 6, 1995 subject to final language approval by the City Manager and City Attorney. CONCLUSION Of the many objectives that were guiding principles in negotiating the proposed agreement, the Ad Hoc Committee was committed to negotiating an agreement that provided for the continuation of the current high level of service, a rate reduction to residents, increasing the provision of hauler services without additional charge to the community, and assurance that the City and haulers will meet waste reduction and other regulatory mandates. In concluding the negotiations, the haulers indicated that they agree to waive their 1995 request for a residential recycling rate increase of $0.15 per month. As you may recall, at the January 31, 1995 the Public Works, Facilities, and Solid Waste Committee (former Councilmember Montgomery and Councilmember Wozniak) meeting, the Committee suggested that the residential haulers forgo the requested monthly recycling rate increase until after the conclusion of the contract negotiations, recognizing that the haulers may have the opportunity, if necessary, to retroactively recapture all or part of their requested recycling fee increase. Again, the haulers chose to forgo their 1995 proposed increase. The attached resolution itemizes the proposed rate schedule, effective January 1, 1996. RECOMMENDATION (Roll Call Vote) The Ad Hoc Negotiations Committee and staff recommend that the City Council: 1. Approve the Solid Waste Exclusive Residential and Commercial Franchise Agreements with G. I. Rubbish for one year and Moorpark Rubbish Disposal for five years, subject to final language approval by the City Manager and City Attorney; 2. Adopt Resolution 95- Establishing Service Rates, Rescinding Resolutions 94 -1091 and 95 -1105; and 3. Issue PRC notification to the remaining commercial franchised haulers, E.J. Harrison and Rubbish Control, of the Council's intent to award exclusive franchises, effective December 8, 1995. 8 RESOLUTION NO. 95- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, RESCINDING RESOLUTIONS 94 -1091 AND 95 -1105, UPDATING SOLID WASTE COLLECTION FEES. WHEREAS, it is appropriate for the City to establish fees relative to collection and management of solid waste collection; and WHEREAS, the City provides residential and commercial solid waste and recycling collection services; and WHEREAS, on December 6, 1995, the City Council granted exclusive franchise agreements with G.I. Rubbish and Moorpark Rubbish Disposal for the collection, transportation, recycling, and disposal of solid waste in residential, commercial, and industrial areas within City limits; and WHEREAS, the City Council declares its intention of maintaining reasonable rates for collection, management, and disposal of solid waste and recyclables within the City limits; and WHEREAS, the City Council adopted Resolution 94 -1091 establishing solid waste collection fees; and WHEREAS, Resolution 95 -1105 amended Section 1 of Resolution 94 -1091 for the purpose of updating monthly multi - family can service rates in Zone III to equal the rates for single - family service as stated in Section 1 of Resolution 94 -1091, effective March 1, 1995; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS: SECTION 1. The monthly residential solid waste, recycling, and green waste collection rate, effective January 1, 1996 shall be as follows: Single Family Service (Individual can service) Senior Citizen Rate (20% discount on SF total rate) Super Recycler Rate (20% discount on SF total rate) Base Rate AB 939 Total $15.30 $ 1.00 $16.30 $12.04 $ 1.00 $13.04 $12.04 $ 1.00 $13.04 1 SECTION 2. The commercial, industrial, and multi- family solid waste, recycling, and composting bin collection rates, effective January 1, 1996 shall be as follows: 1. Solid Waste Bin Rates A. One (1) 1.5 cubic yard bin with following pickups per week: 1 x week $ 83.20 5 x week $322.78 2 x week $145.59 6 x week $395.17 3 x week $207.99 7 x week $457.58 4 x week $270.38 Non - contracted 1.5 Cubic Yard pickup: $ 31.20 (Special onetime pickup for permanent accounts) Compacted 1.5 Cubic Yard pickup: 2 X weekly pickup rate B. One (1) 3.0 cubic yard bin with following pickups per week: 1 x week $ 93.60 5 x week $384.78 2 x week $166.39 6 x week $457.58 3 x week $239.19 7 x week $530.36 4 x week $311.98 Non - contracted 3 Cubic Yard pickup: $ 36.39 Compacted 3 Cubic Yard pickup: 2 X weekly pickup rate 2. Recycling /Composting Bin Rates A. One (1) 1.5 cubic yard bin with following pickups per week: 1 x week $ 41.59 2 x week $ 83.20 3 x week $124.79 4 x week $166.39 5 x week $207.99 6 x week $249.58 7 x week $291.18 Non - contracted 1.5 cubic yard pickup: $ 26.00 (Special onetime pickup for permanent accounts) B. One (1) 3.0 cubic yard bin with following pickups per week: 1 x week $ 51.99 2 x week $104.00 3 x week $155.99 4 x week $207.99 5 x week $259.98 6 x week $311.98 7 x week $363.98 Non - contracted 3 Cubic Yard pickup: $ 31.20 (Special onetime pickup for permanent accounts) 2 C. One (1) 4.0 cubic yard bin with following pickups per week: 1 x week $ 62.39 2 x week $124.79 3 x week $187.18 4 x week $249.58 5 x week $311.98 6 x week $374.38 7 x week $436.77 Non - contracted 4 Cubic Yard pickup: $__26.39 (Special onetime pickup for permanent accounts) SECTION 3. The temporary bins and roll- off /drop box rates for solid waste, recycling, and composting bin services, effective January 1, 1996 shall be as follows: Temporary 3 Cubic Yard Bin Rate: $ 72.80 Redelivery and Reinstatement Rate: $ 25.00 $139.35 plus landfill/ Roll -off Disposal Rate: recycler fee Roll -off Recycling Rate: $139.35 (market value negotiable) Roll -off Compactor Rate: $278.70 plus landfill/ recycler fee Roll -off Recycling Compactor Rate: $278.70 (market value negotiable) SECTION 4. The annual solid waste management fee for exemption to the required solid waste collection service mandate shall be $22.00. SECTION 5. This Resolution hereby rescinds Resolutions 94- 1091 and 95 -1105 in their entirety. APPROVED and ADOPTED this day of December, 1995. ATTEST: City Clerk 3 Mayor L"w"M - MA 1 �14— A division of SEA /SUE, Inc. P.O. Box 307 Simi Valley, California 93062 Phone (805) 526 -1919 FAX (805) 526 -3318 December 1, 1995 Mr. John Wozniak, Councilmember Mr. Patrick Hunter, Councilmember Mr. Steven Kueny, City Manager Ms. Mary Lindley, Assistant to the City Manager Ms. Jill Myers, Solid Waste Coordinator 799 Moorpark Avenue Moorpark, California 93021 RE: Moorpark Rubbish Disposal Ladies and Gentlemen: C! ` � e It is our understanding that the Franchise Agreement between the City of Moorpark and Moorpark Rubbish Disposal For The Providing of Residential, Multifamily, and Commercial Solid Waste Services, dated as of December 8, 1995 will be voted upon by the City Council of the City of Moorpark on December 6, 1995. Upon review of the November 28, 1995 draft of the aforementioned agreement, we have noted several significant departures from the good faith negotiations that have been on going. Specifically, we take exception to the following issues: Section 8, Paragraph A City Attorneys Fees This paragraph states that Moorpark Rubbish Disposal (MRD) shall reimburse the City for any attorneys fees incurred by the City in developing this contract. This expenditure was never discussed in any of the meetings nor included in any of the previous contract drafts. Also, the provision as stated does not have a stated fee limitation. Given the rate reductions in this contract MRD cannot agree to a "blank check" for the City incurred legal fees. Section 14, Paragraph A Annual Rate And Service Charges Review. The second paragraph under this section states that MRD will conform to any lower rate secured by the City from the other GRANTEE, when that contract is renegotiated. This provision has apparently been added as a result of the situation involving the GI Rubbish Contract. In several conversations between members of the Ad Hoc Committee and City staff, MRD was assured that the problems involving GI would not in any way effect MRD. "Big enough to serve you, small enough to know you" A division of SEA /SUE, Inc. P.O. Box 307 Simi Valley, California 93062 Phone (805) 526 -1919 FAX (805) 526 -3318 December 1, 1995 Page 2 First, this paragraph directly opposes the assurances made to MRD by the City regarding the affect of GI Rubbish. Secondly, this changes the agreed upon rate structure from a five -year plus three -year rate to a one year rate. This constitutes a material change agreed rate structure. MRD agreed to the reduced rates as they are long -term rates of five to eight years. Had MRD known that the rate structure would only be effective for one year, MRD may not have agreed to the rates. Section 17, Paragraph A. Franchise Transfer Issues. As indicated during the negotiations, MRD is contemplating internal corporate restructuring. The City has agreed to provide for this restructuring and consequent transfer of the franchise as exempt from the transfer fees. Exhibit A, Franchise Area. The negotiations, rates and service levels all were based on a 50% ratio distribution of both residential and commercial service revenues. This was agreed to by the City and both Grantees. The Exhibit as shown is changed from 50% to 40% for MRD. This again constitutes a potentially material economic change to the contract. Exhibit 1, Rate Adjustment Schedule. A new sentence has been added to the second sentence which modifies the definition of the landfill rate used in computing the landfill component adjustment. This language modification is unacceptable for several reasons. First, the rates quoted and agreed to by the City and the Haulers does not contemplate any further reductions due to discounts or special negotiated terms that may exist now or in the future, except for the published rate changes. As noted in the paragraph below the rates calculated include significant estimates. Elimination of any fee reductions would require full renegotiation of the proposed rate structure. Second, it is not in the interest of the City or the customers for the contract to eliminate any inducement for the Hauler to reduce costs. By eliminating any form of negotiated benefit to the Hauler, the Hauler has NO reason to pursue any form of discount or other cost reduction. Accordingly, this language modification may in the long -term cause higher rates rather than help reduce them. "Big enough to serve you, small enough to know you" 0114MER i offit I VO4 i i ♦i A division of SEA /SUE, Inc. P.O. Box 307 Simi Valley, California 93062 Phone (805) 526 -1919 FAX (805) 526 -3318 December 1, 1995 Page 3 The rates previously agreed to by the City and MRD are based on the current landfill rate as a composite calculation. Since refuse is billed at the landfill by weight, but the customers are charged by a combination of frequency of service or cubic volume of waste (not weight) there is a degree of estimation in the corresponding conversion. The $15.30 base rate does not specifically break out landfill versus service. The agreed rate adjustment formula is essentially an estimated conversion from a per ton rate to a per household rate of the posted landfill rate. Also, the rates are calculated using total historical costs, any discounts or negotiated amounts that were present are included in the current rates. Accordingly, a change in the price structure would require us to reevaluate the agreed rates. As stated in discussions above, several of these items are potentially material to the contract. With the exception of the franchise transfer fees, none of the above items had been discussed during any of the meetings and negotiations. Accordingly, we must discuss these issues with yourselves and the Ad Hoc Committee before we can sign the agreement. In the event a meeting is declined and the City Council were to approve the contract as written, the City would be acting in bad faith. This could force us to seek legal remedies against the City. We have negotiated in good faith and have made significant concessions to the City to provide for a long -term mutually beneficial relationship. We look forward to receiving your response to this letter and meeting with you and the Ad Hoc Committee Monday, December 4, 1995 as requested. Respectfully Yours, Chuck Anderson P SIDENT UG . S fechuck VICE - PRESIDENT C.A. /J.R.S.:lk "Big enough to serve you, small enough to know you"