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HomeMy WebLinkAbout1997-05-27; City Council; Minutes (2)* 0 0 MINUTES MEETING OF : CITY COUNCIL (Regular Meeting) DATE OF MEETING: May 27,1997 TIME OF MEETING: 6:OO p.m. PLACE OF MEETING: City Council Chambers ~~ ~~~ CALL TO ORDER Mayor Lewis called the Meeting to order at 6:OO p.m. ROLL CALL was taken by the City Clerk, as follows: Present: Mayor Lewis, Mayor Pro Tem Finnila, Council Members Nygaard, Kulchin, and Hall CLOSED SESSION: 41 1. PENDING LITIGATION. Council adjourned to Closed Session at 6:Ol p.m. pursuant to Government Code Section 54956.9(a), to discuss the City v. County, Case No. N66415 pending litigation; and the Coast Waste Management v. County, Case No. 94-1823-S(BTM) pending litigation. Council reconvened at 6:55 p.m., with all Council Members present, and Mayor Lewis announced that Council had heard the items and instructed the attorney and staff concerning the matters. DEPARTMENTAL AND CITY MANAGER REPORTS: 55 2. AB #14,179 - CONSENT TO ASSIGNMENT OF SOLID WASTE SERVICES. 45 Assistant City Manager Frank Mannen, gave the staff report noting USA Waste is buying out Coast Waste Management. However, Coast Waste Management will continue as a company and will continue to hold the contract to collect city trash and haul it to the transfer station for disposal. That contract with Coast Waste Management has been under a series of short-term extensions, and is currently extended to the end of June, 1997, and the city has been holding discussions with Coast Waste Management to consider the possibility of further renewal or extension of that contract. In essence, what is being transferred by this proposed action is the stock of Coast Waste Management and their interest in that hauling contract. Mr. Mannen introduced Mr. Dwight Worden, attorney who has been handling the legal aspects of this transaction as well as other ongoing negotiations with the County and Coast Waste in resolving a settlement for the ongoing use of the Palomar Transfer Station. Mr. Mannen also pointed out that the right of Coast Waste to continue to use that Palomar Transfer Station is defined in that Settlement Agreement which is finished and ready for signature. He also stated that the City is looking for assurances fi-om Coast Waste that they will, in fact, sign that Settlement Agreement as it is now constituted. Arie de Jong, President of Coast Waste Management, 5960 El Camino Real, Carlsbad, explained how and why there is going to be a merger of Coast Waste Management and USA Waste Services. He referenced the Settlement Agreement, and stated he had agreed to sign it, and he would sign it. He stated he is not completely satisfied with the Agreement; however, he would make the commitment to Council that he would sign the agreement in the very near future. * e 0 May 27, 1997 CITY COUNCIL Page 2 He concluded by expressing appreciation to Council and stated that he would still be around; however, it would be in the capacity as a consultant. In response to Council query, Mr. de Jong responded that it is his understanding that his function with USA Waste would be as a consultant more at a district level and Mr. Pawelski will remain active in the technical operations of the business. Mr. de Jong stated that he will maintain his position as a consultant for a minimum of 5 years. None of the employees, however, have any guarantees as to how long they will be employed. Mr. de Jong stated that if USA Waste is not successful in acquiring the county landfill, it should not create any problems since they have several other landfill sites in Arizona and California. In response to Council query, Mr. Mark Empey, of Best, Best & Krieger, Attorney representing USA Waste Services, PO Box 1555, Rancho Mirage, CA., addressed Council. Mr. Empey stated that Coast Waste is going to remain as a corporate structure, exactly as it is today. Additionally, Mr. Empey responded that Liberty Recycling, as well as some other names, are really Coast Waste and not separate individual legal entities right now. However, under USA, they would be the same company. Additionally, Mr. Empey responded that they are aware of the demand note. He added that they have spoken to Mr. Worden and they understand that the note is an obligation of Coast Waste and will be assumed by USA when they acquire the Coast Waste stock. Also, Mr. Empey said USA Waste expects to run Coast Waste for the next 5 years basically the same as it is run right now. It is expected to be the same people, the same operations, and the same business. In response to additional questions, Mr. Empey stated that USA Waste has the equipment and resources to transfer the trash to other areas or states, should that be necessary. The economics of such action remains unclear, but it could be done if necessary. As further clarification, Mr. Empey stated that Coast Waste would technically become a subsidiary of USA Waste; however, it would continue to exist in it’s current state. Mr. Empey pledged that the City would continue to enjoy the same level of high service as it has in the past, and it is hope of USA Waste that the transfer of ownership will be transparent.. Rick Acufia, Operations Manager for all of San Diego operations for USA Waste, stated customer service and safety are at the top of his list of priorities. He stated that he and Mr. Pawelski will, more than likely, interface with staff and Council more than anyone else from their organization. He further stated that since his responsibilities will sometimes require him to be away, Mr. Pawelski will be empowered to speak for him and the company. In response to an earlier question regarding employment contracts, Mr. Acufia stated that he didn’t have a contract, nor would Conrad. They each do the best job possible, and if they continue to do that, then they continue to work the next day and the day after that. Conrad Pawelski, representing Coast Waste Management, presented the note for the Collection and Transferring Reserve Funds that were accumulated over the past two years to the city (and it was placed on file in the City Clerk’s Office). Mr. de Jong stated that there is a possibility of some adjustment to the numbers contained in the Note, and whatever the true numbers turn out to be, he indicated they would agree to that adjustment. Referring to Page No. 6 of Resolution No. 97-463, Item #4, Mayor Pro Tem Finnila stated that she would like to change the wording to say“. . . reflecting other significant unforeseen cost increases which the City Council determines are beyond the control of Coast Waste Management and or USA Waste.’’ e 0 May 27,1997 CITY COUNCIL Page 3 Mr. Empey suggested that if the word “reasonably” is added, he would agree to the language addition. ACTION: On motion by Mayor Pro Tem Finnila, Council adopted Resolution No. 97-463, consenting to the assignment of the stock of Coast Waste Management to USA Waste Services, Inc., with the amendment of item (4) on page 6 to read “reflecting other significant and unforeseen cost increases which the City Council reasonably determines are ...”. AYES: Lewis, Finnila, Nygaard, Kulchin, and Hall ADJOURNMENT: By proper motion, the Regular Meeting of May 27, 1997, was adjourned at 7:33 p.m. to the Southwest Quadrant Community Forum in the Council Chambers at 1200 Carlsbad Village Drive. Respectfully submitted, d.JLtL&. Q! ALETHA L. RAUTENKRANZ City Clerk