HomeMy WebLinkAbout1997-05-27; City Council; Resolution 97-4630 0
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RESOLUTION NO. 97-463
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, CONSENTING TO THE
TRANSFER OF STOCK OF COAST WASTE
MANAGEMENT TO USA WASTE SERVICES, INC.
WHEREAS, Coast Waste Management, Inc. ("Coast Waste Management")
locally owned and operated waste services company which has for many y
provided solid waste services to Carlsbad and its residents and businesses pursua
that certain REFUSE AND RECYCLABLES COLLECTION SERVICES CONTR
dated August 1991 (the "Contract"), a copy of which is on file in the Office of the
Clerk; and
WHEREAS, said contract was entered into in August of 1991 between the
and Coast Waste Management for an original 19 month term, with year-to-
extensions thereafter, and with an extension from February 28, 1997, to April 30, 1
an extension again to May 31, 1997, and an extension to June 30, 1997, with
contract scheduled to terminate on the close of business June 30, 1997; and
WHEREAS, Coast Waste Management has proposed a stock transfer with
Waste as set forth in the materials on file herein provided by Coast Waste Managel
and USA Waste and as addressed in the staff report and in the report of the (
outside consultant, Hilton, Farnkopf, & Hobson, and said stock transfer requires
consent of the City pursuant to the terms of said contract; and
WHEREAS, Coast Waste Management and USA Waste understand that the
contract rights existing expire on June 30, 1997 unless Carlsbad, in its sole discre
determines to further extend the contract; and
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WHEREAS, the City Council has duly considered the request of Coast v\
Management and of USA Waste for approval of the proposed stock transfer, has
considered the staff report and recommendation, and has duly considered the re
analysis, and recommendation of the outside consulting firm of Hilton, Farnkc
Hobson; and
WHEREAS, this action is exempt from CEQA because it can be seen
certainty that there is no possibility of a significant environmental effect resulting
consent to the stock transfer because the same waste service activities will con
whether or not the stock transfer is approved, as only the operator and contracting
will change; and
WHEREAS, this matter was duly considered at a public meeting of the
Council held on May 27, 1997, at which Coast Waste Management, USA Waste,
interested members of the public were heard and at which City staff and the (
outside consultant were present to answer questions and make their reports; and
WHEREAS, having considered all of the information on file herein,
representations and assurances of Coast Waste Management and USA Waste
public comments received at the public meeting, and the reports of the staff and ou
consultant, the City Council finds, subject to the terms and conditions hereof,
approval of the stock transfer is consistent with the above-referenced contract and
furtherance of the public health, safety, and general welfare; and
WHEREAS, the City Council further finds that, subject to the terms
conditions hereof, Coast Waste Management under its new ownership by USA VI
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can and will provide good quality service to the City and its residents and busines:
reasonable rates.
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4 NOW, THEREFORE, BE IT HEREBY RESOLVED AS FOLLOWS:
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1. The foregoing recitals are true and correct.
2. Consent to Stock Transfer.
Pursuant to section 12.0 of the REFUSE AND RECYCLABLES COLLEC
SERVICES CONTRACT dated August 1991 as extended through June 30, 199
City Council hereby grants its consent to the stock transfer between Coast \
Management and USA Waste resulting in the ownership of Coast Waste Managt
by USA Waste, in conformance with and in reliance on the representations of
Waste Management and USA Waste on file herein and subject to the foll
conditions which the City Council finds and determines are necessary to (1) ensur
the level of service to Carlsbad and its residents and businesses is not allovl
decline; (2) ensure that the cost to ratepayers does not increase as a result of the
transfer; (3) ensure that there is a clear understanding on the part of all parties th
rights under the contract expire on June 30, 1997, unless further extended in thc
discretion of Carlsbad; (4) ensure that the public health, safety, and general welfa
protected:
a. The Contract Term; Termination.
The rights of Coast Waste Management under its new ownership b!
Waste pursuant to Resolution are limited to the rights set forth in the above-refer
REFUSE AND RECYCLABLES COLLECTION SERVICES CONTRACT as extc
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through June 30, 1997, and Coast Waste Management and USA Waste
represented to Carlsbad that they understand, acknowledge, and agree that nc
Coast Waste Management nor USA Waste has any rights under said contract, ex1
or implied, extending beyond June 30, 1997. Coast Waste Management and
Waste have further represented to Carlsbad that they understand, acknowledge,
agree that Carlsbad, in its sole discretion, may or may not determine to extend
contract beyond June 30, 1997, and that Carlsbad has made no represent:
express or implied, that it will extend said contract beyond June 30, 1997. Coast V
Management and USA Waste have further represented to Carlsbad that
understand, acknowledge, and agree that unless extended in writing all rights 1
said contract shall automatically expire effective June 30, 1997.
b. Possible Longer Term Agreement; Possible New Franchise.
Carlsbad, Coast Waste Management, and USA Waste have
preliminary discussions about the possibility of negotiating a longer term cor
relationship and about the possibility of revising the terms of the contract. Coast VI
Management and USA Waste have represented to Carlsbad that they undersl
acknowledge, and agree that no promise in this regard has been made by Carls
express or implied, and that such discussions about a longer term relationship at
revisions to the contract may or may not occur in the future. Coast Waste Managel
and USA Waste have further represented to Carlsbad that they acknowk
understand, and agree that any such discussions which may have occurred in the
or which may occur in the future, have not and will not alter the fact that, ur
extended by Carlsbad as provided herein, all contract rights in Coast v\r
Management and USA Waste will expire as of June 30, 1997.
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C. Service to Customers.
In adopting this Resolution, the City Council acknowledges that (
Waste Management has, historically, provided good service to Carlsbad ar
residents and businesses under the above-referenced contract, and Carlsbad ex1
and will insist that the customer services provided by Coast Waste Management I
its new ownership by USA Waste will continue to provide as good or better servi
customers.
d. Financial and Other Reporting.
In adopting this Resolution, the City Council acknowledges that C
Waste Management has, from time to time in the past, been deficient in its finz
reporting and other permitting and reporting obligations under the contrac
distinguished from its delivery of services to customers. In adopting this Resolutior
City Council is relying on the representations of Coast Waste Management and
Waste that Coast Waste Management, under its new USA Waste ownership
improve reporting and eliminate such deficiencies in the future by providing all fina
and other reports required by the contract in a timely manner.
e. Rates.
In adopting this Resolution, the City Council relies on the representai
understanding, acknowledgment, and agreement of Coast Waste Management
USA Waste that there will be no request for an increase in rates as a result of the :
transfer and change in ownership of Coast Waste Management. Further, the
Council relies on the representations, understanding, agreement, and acknowledgl
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of Coast Waste Management and USA Waste that, in the event that Carlsbad i
discretion determines to extend the existing contract beyond June 30, 1997, there
be no request for rate increases prior to June 1, 1998, except (1) periodic request
increases in conformance with an accepted inflation index; (2) requests to pass thrc
any increase in landfill disposal charges; (3) requests to pass through any increa:
taxes or fees directly applicable to the performance of services under the contrac
(4) reflecting other significant and unforeseen cost increases which the City Co
reasonably determines are beyond the control of Coast Waste Management ar
USA Waste. Coast Waste Management and USA Waste represent, underst
acknowledge, and agree that the foregoing restrictions on rate increases shall 2
notwithstanding any provisions of section 6.0 of the above-referenced contract tc
contrary.
PASSED AND ADOPTED THIS 27th DAY OF May , 1997, BY
THE FOLLOWING VOTE:
AYES: Council Members Lewis, Finnila, Nygaard, Kulchin, and Hall
NOES: None
ABSENT: None
ABSTAl N: None
CLAUDE E~LEWIS, MAYOR
ATTEST:
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~ ALETHA L. RAUT
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