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HomeMy WebLinkAboutAGENDA REPORT 2018 0321 CCSA REG ITEM 10Q CITY OF MOORPARK, CALIFORNIA City of Moorpark of March 21, 2018 ACTION A proved staff recommendation Item: 10.Q. Adopted Reso No 2018-3691 By M.Benson MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Brian Chong, Assistant to the City Manager DATE: March 9, 2018 (CC Meeting of 3/21/2018) SUBJECT: Consider Resolution Amending the City of Moorpark Franchise Agreements with G.I. Industries for both Residential and Commercial Solid Waste Services, and Authorize the City Manager to Execute the Amendments to the Agreements to Extend Term to June 30, 2018 BACKGROUND AND DISCUSSION In 2002, the City approved both a Residential Franchise Agreement and a Commercial Franchise Agreement for each of G I Industries and Moorpark Rubbish Disposal, LLC (Franchise Agreements) for solid waste services Since then, the Council has approved multiple extensions to the Franchise Agreements Meanwhile, negotiations for a new long-term replacement Franchise Agreement have continued On December 6, 2017, the City Council consented to the transfer of the Franchise Agreements held by Moorpark Rubbish Disposal, LLC to G I Industries, which was in the process of acquiring Moorpark Rubbish Disposal, LLC At the same time the City Council approved the transfer, the City Council also approved extension of the Moorpark Rubbish Disposal, LLC Franchise Agreements through December 31 , 2027, to facilitate the G I Industries acquisition of the company However, the City's current Franchise Agreements with G I Industries were only extended to March 31 , 2018 To continue solid waste services within its franchise area beyond that date, the Franchise Agreements must be extended The attached draft resolution would extend the G I Industries Franchise Agreements for an additional three months, until June 30, 2018, while negotiations continue Staff is actively negotiating terms of a new Franchise Agreement with G I Industries at this time 164 Honorable City Council March 21, 2018 Regular Meeting Page 2 The existing Franchise Agreements for both franchisees will be superceded by a new Franchise Agreement, pursuant to a Memorandum of Understanding with G.I. Industries approved by the City Council at the same time as the extensions, when the new Franchise Agreement becomes effective. FISCAL IMPACT No fiscal impact. STAFF RECOMMENDATION 1. Adopt Resolution No. 2018-____, Amendment to City of Moorpark Franchise Agreements between the City of Moorpark and G.I. Industries, for Providing Commercial Solid Waste and Recycling Services and Residential Solid Waste and Recycling Services to Extend Term to June 30, 2018. 2. Authorize the City Manager to execute the amendments to the Franchise Agreements subject to final language approval of the City Manager. Attachment 1: Draft Resolution Attachment 2: G.I. Industries Commercial Agreement Amendment No. 20 Attachment 3: G.I. Industries Residential Agreement Amendment No. 21 165 ATTACHMENT 1 RESOLUTION NO. 2018- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING THE FRANCHISE AGREEMENTS BETWEEN THE CITY OF MOORPARK AND G.I. INDUSTRIES, FOR PROVIDING RESIDENTIAL SOLID WASTE SERVICES AND COMMERCIAL SOLID WASTE SERVICES TO EXTEND TERMS WHEREAS, the City provides residential and commercial solid waste and recycling collection services; and WHEREAS, on September 18, 2002, the City Council granted two exclusive Franchise Agreements with G.I. Industries and two exclusive Franchise Agreements with Moorpark Rubbish Disposal, LLC, for the collection, transportation, recycling, and disposal of residential solid waste and commercial solid waste in designated areas within the City limits; and WHEREAS, the Franchise Agreements included an expiration date of December 31, 2010, with an option to extend the term for up to an additional two (2) years, and Franchise Agreements were extended for six (6) months to June 30, 2011 with the adoption of Resolution Numbers 2010-2977, 2010-2978, 2010-2979, and 2010-2980, extended for another six (6) months to December 31, 2011 with the adoption of Resolution Number 2011-3024, and extended again for two (2) months to February 29, 2012 with the adoption of Resolution Number 2011-3076, and extended again for another two (2) months to April 30, 2012 with the adoption of Resolution Number 2012- 3085, and extended again for another five (5) months to September 30, 2012 with the adoption of Resolution Number 2012-3102, and extended again for another three (3) months to December 31, 2012 with the adoption of Resolution Number 2012-3125; and extended again for another six (6) months to June 30, 2013 with the adoption of Resolution Number 2012-3147; and extended again for another six (6) months to December 31, 2013 with the adoption of Resolution Number 2013-3194; and extended again for another six (6) months to June 30, 2014 with the adoption of Resolution Number 2013-3234; and extended again for another six (6) months to December 31, 2014 with the adoption of Resolution Number 2013-3293; and extended again for another six (6) months to June 30, 2015 with the adoption of Resolution Number 2014- 3329; and extended again for another six (6) months to December 30, 2015 with the adoption of Resolution Number 2015-3403; and extended again for another three (3) months to March 31, 2016 with the adoption of Resolution Number 2015-3461; and extended again for another three (3) months to June 30, 2016 with the adoption of Resolution No. 2016-3491; and extended again for another six (6) months to December 31, 2016 with the adoption of Resolution No. 2016-3510; and extended again for another six (6) months to June 30, 2017 with the adoption of Resolution No. 2016-3544; and extended again for another four (4) months to October 31, 2017 with the adoption of Resolution No. 2017-3606; and extended again for another two (2) months to December 31, 2017, with the adoption of Resolution No. 2017-3637; and extended 12853-0058\2143587v1.doc 166 Resolution No. 2018- Page 2 again for another three (3) months to March 31, 2018, with the adoption of Resolution No. 2017-3657; and WHEREAS, the Franchise Agreements state that annual rate adjustments shall be effective each January 1 during the term of the Franchise Agreements; and WHEREAS, the City Council declares its intention to further extend the term of the Franchise Agreements. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The G.I. Industries Franchise Agreements for Residential Solid Waste Services and for Commercial Solid Waste Services, Section 2, shall be amended to include “The collection services to be provided pursuant to this Agreement shall begin on October 1, 2002, and end on June 30, 2018, unless sooner terminated.” SECTION 2. The G.I. Industries Franchise Agreements for Residential Solid Waste Services and for Commercial Solid Waste Services, Exhibit G.A, shall be amended to include “Consideration for the rate adjustment scheduled to be effective January 1, 2012 shall be deferred until a date no later than June 30, 2018.” With the exception of the change to the above noted document, all other provisions contained in the Franchise Agreements shall remain in full force and effect. SECTION 3. These extensions shall become effective upon: (i) execution of the amendment by both parties; and (ii) execution of waivers and releases from Moorpark Rubbish Disposal, LLC, and from G.I. Industries of all existing and potential claims against the City related to or that arise from the Franchise Agreements extended by this Resolution. SECTION 4. The City Clerk shall certify to the adoption of the resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 21st day of March, 2018. Janice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk 167 ATTACHMENT 2 AMENDMENT NO. 20 FRANCHISE AGREEMENT BETWEEN THE CITY OF MOORPARK AND G.I. INDUSTRIES FOR MULTI-FAMILY AND COMMERCIAL SOLID WASTE SERVICES THIS AMENDMENT NO. 20 TO THE MULTI-FAMILY AND COMMERCIAL FRANCHISE AGREEMENT, made and entered into this _____ day of _______________, 2018, by and between the City of Moorpark, a municipal corporation located in the County of Ventura, State of California, hereinafter referred to as “City” and G.I. Industries, a corporation, hereinafter referred to as “Grantee” as an amendment to the Multi-Family and Commercial Franchise Agreement between the City and G.I. Industries, dated October 1, 2002. W I T N E S S E T H WHEREAS, the City provides commercial – industrial solid waste and recycling collection services; and WHEREAS, on September 18, 2002, the City Council granted exclusive franchise agreements with G.I. Industries and Moorpark Rubbish Disposal for the collection, transportation, recycling, and disposal of solid waste in residential and commercial – industrial areas within City limits; and WHEREAS, the Franchise Agreement includes an expiration date of December 31, 2010, with an option to extend the term for up to an additional 2 years, and the Franchise Agreement was extended for 6 months to June 30, 2011 with the adoption of Resolution No. 2010-2979; for an additional 6 months to December 31, 2011 with the adoption of Resolution No. 2011-3024; for an additional 2 months to February 29, 2012 with the adoption of Resolution No. 2011-3076; and for an additional 2 months to April 30, 2012 with the adoption of Resolution No. 2012-3085; and for an additional 5 months to September 30, 2012 with the adoption of Resolution No. 2012-3102; and for an additional 3 months to December 31, 2012 with the adoption of Resolution No. 2012- 3125; and for an additional 6 months to June 30, 2013 with the adoption of Resolution No. 2012-3147; and for an additional 6 months to December 31, 2013 with the adoption of Resolution No. 2013-3194; and for an additional 6 months to June 30, 2014 with the adoption of Resolution No. 2013-3234; and for an additional 6 months to December 31, 2014 with the adoption of Resolution No. 2014-3293; and for an additional 6 months to June 30, 2015 with the adoption of Resolution No. 2014-3329; and for an additional 6 months to December 31, 2015 with the adoption of Resolution No. 2015-3403; and for an additional 3 months to March 31, 2016 with the adoption of Resolution No. 2015- 3461; and for an additional 3 months to June 30, 2016 with the adoption of Resolution No. 2016-3491; and for an additional 6 months to December 31, 2016 with the adoption of Resolution No. 2016-3510; and for an additional 6 months to June 30, 2017 with the adoption of Resolution No. 2016-3544; and for an additional 4 months to October 31, 2017 with the adoption of Resolution No. 2017-3606; and for an additional 2 months to December 31, 2017 with the adoption of Resolution No. 2017-3637; and for an 168 City of Moorpark, G.I. Industries Multi-Family and Commercial Franchise Agreement Amendment 20, Page 2 of 3 additional 3 months to March 31, 2018 with the adoption of Resolution No. 2017-3657; and WHEREAS, the City Council declares its intention to further extend the term of the Franchise Agreement. NOW, THEREFORE, in consideration of the mutual covenants, benefits, and premises herein stated, the parties hereto agree to amend the aforesaid Agreement as follows: Section 2, Term, Part A, shall be amended, to read, in its entirety, as follows: “A. TERM. The collection services to be provided pursuant to this Agreement shall begin on October 1, 2002, and end on June 30, 2018, unless sooner terminated. GRANTEE’s duty to provide indemnification shall survive the end of the period during which collection services are to be provided.” I. Exhibit G, Rate Adjustment Schedule, Part A, shall be amended to include: “Consideration for the rate adjustment scheduled to be effective January 1, 2012 shall be deferred until a date no later than June 30, 2018.” II. Remaining Provisions: All other provisions of the aforesaid Agreement shall remain in full force and effect. 169 City of Moorpark, G.I. Industries Multi-Family and Commercial Franchise Agreement Amendment 20, Page 3 of 3 In WITNESS WHEREOF, the parties hereto have caused this Amendment No. 20 to be executed by their duly authorized officers the day and year first above written. CITY OF MOORPARK: G.I. INDUSTRIES: __________________________ ____________________________ Troy Brown, City Manager Mike Smith, Director of Operations Date ______________________ Date ______________________ ATTEST: ____________________________ Maureen Benson, City Clerk 170 ATTACHMENT 3 AMENDMENT NO. 21 FRANCHISE AGREEMENT BETWEEN THE CITY OF MOORPARK AND G.I. INDUSTRIES FOR RESIDENTIAL SOLID WASTE SERVICES THIS AMENDMENT NO. 21 TO THE RESIDENTIAL FRANCHISE AGREEMENT, made and entered into this ____ day of _______________, 2018, by and between the City of Moorpark, a municipal corporation located in the County of Ventura, State of California, a corporation, hereinafter referred to as “City” and G.I. Industries, a corporation, hereinafter referred to as “Grantee” as an amendment to the Residential Franchise Agreement between the City and G.I. Industries, dated October 1, 2002. W I T N E S S E T H WHEREAS, the City provides residential solid waste and recycling collection services; and WHEREAS, on September 18, 2002, the City Council granted exclusive franchise agreements with G.I. Industries and Moorpark Rubbish Disposal for the collection, transportation, recycling, and disposal of solid waste in residential and commercial – industrial areas within City limits; and WHEREAS, on December 9, 2009, Amendment No. 1 was signed to increase the franchise fee to 6%; and WHEREAS, the Franchise Agreement includes an expiration date of December 31, 2010, with an option to extend the term for up to an additional 2 years, and the Franchise Agreement was extended for 6 months to June 30, 2011 with the adoption of Resolution No. 2010-2977; for an additional 6 months to December 31, 2011 with the adoption of Resolution No. 2011-3024; for an additional 2 months to February 29, 2012 with the adoption of Resolution No. 2011-3076; and for an additional 2 months to April 30, 2012 with the adoption of Resolution No. 2012-3085; and for an additional 5 months to September 30, 2012 with the adoption of Resolution No. 2012-3102; and for an additional 3 months to December 31, 2012 with the adoption of Resolution No. 2012- 3125; and for an additional 6 months to June 30, 2013 with the adoption of Resolution No. 2012-3147; and for an additional 6 months to December 31, 2013 with the adoption of Resolution No. 2013-3194; and for an additional 6 months to June 30, 2014 with the adoption of Resolution No. 2013-3234; and for an additional 6 months to December 31, 2014 with the adoption of Resolution No. 2014-3293; and for an additional 6 months to June 30, 2015 with the adoption of Resolution No. 2014-3329; and for an additional 6 months to December 31, 2015 with the adoption of Resolution No. 2015-3403; and for an additional 3 months to March 31, 2016 with the adoption of Resolution No. 2015- 3461; and for an additional 3 months to June 30, 2016 with the adoption of Resolution No. 2016-3491; and for an additional 6 months to December 31, 2016 with the adoption of Resolution No. 2016-3510; and for an additional 6 months to June 30, 2017 with the adoption of Resolution No. 2016-3544; and for an additional 4 months to October 31, 2017 with the adoption of Resolution No. 2017-3606; and for an additional 2 months to 171 City of Moorpark, G.I. Industries Residential Franchise Agreement Amendment 21, Page 2 of 3 December 31, 2017 with the adoption of Resolution No. 2017-3637; and for an additional 3 months to March 31, 2018 with the adoption of Resolution No. 2017-3657; and WHEREAS, the City Council declares its intention to further extend the term of the Franchise Agreement. NOW, THEREFORE, in consideration of the mutual covenants, benefits, and premises herein stated, the parties hereto agree to amend the aforesaid Agreement as follows: I. Section 2, Term, Part A, shall be amended, to read, in its entirety, as follows: “A. TERM. The collection services to be provided pursuant to this Agreement shall begin on October 1, 2002, and end on June 30, 2018, unless sooner terminated. GRANTEE’s duty to provide indemnification shall survive the end of the period during which collection services are to be provided.” II. Exhibit G, Rate Adjustment Schedule, Part A, shall be amended to include: “Consideration for the rate adjustment scheduled to be effective January 1, 2012 shall be deferred until a date no later than June 30, 2018.” III. Remaining Provisions: All other provisions of the aforesaid Agreement shall remain in full force and effect. 172 City of Moorpark, G.I. Industries Residential Franchise Agreement Amendment 21, Page 3 of 3 In WITNESS WHEREOF, the parties hereto have caused this Amendment No. 21 to be executed by their duly authorized officers the day and year first above written. CITY OF MOORPARK: G.I. INDUSTRIES: __________________________ ____________________________ Troy Brown, City Manager Mike Smith, Director of Operations Date ______________________ Date ______________________ ATTEST: ____________________________ Maureen Benson, City Clerk 173