HomeMy WebLinkAboutAgenda Report - September 4, 1991 (95)OF
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AGENDA TITLE: Amendment to Sanitary City Franchise Agreement
Ng; Wi DATE: September 4, 1991
PREPARED BY: City Attorney
RECOrHENOED ACTION: Council consideration of proposed amendment attached.
BACKGROUND INFORMATION: California Waste Removal Systems has requested pev the
attached letter dated Nle 21, 1991 that the franchise
agreement between that firm and the City be modified.
As specified in the letter, California Waste would like to change the dates for
its annual rate review and adjustment.
At present, the agreement calls for rate review in June with any adjustments
granted by the Council becoming effective July 1 of each year. Because of
California Waste's accounting practices and methods, this presents a time
problem since their fiscal year ends Harch 31 and annual statements are usually
not available until near the end of June.
California Waste would prefer that the agreement be modified to require review
of rates in September with any new rates becoming effective October 1.
FUNDING: None required
Respectfully submitted,
Bob McNatt
City Attorney
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Attachment
CCCOM301/TXTA.07A
APPROVED ti
THOMAS A PETERSON «,...
City Manager
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Way 21, 1991
Hr. Ton Peterson
City Manager
City of Lodi
Call Box 3086
Lodi, CA 95241
Re: Annual Rate Review
Dear Hr. Poteraon(
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In review of our contract it states that the rates estab-
lished
stab-
1ished shall be reviewed annually during the month of June, and
if appropriate, adjusted effective July 1.
He Would like to request an amendment to our present fran-
chise agreement to extend the time frame on the entire rate
review process. We cake this request for the following reasons•
1. Technically, it is extremely difficult for our outside
accountants to produce audited financial statements by June let
of each year. Our fiscal year ends Harsh 31st each year, and it
takes a considerable amount of time to closeout the year and hake
a 60 day turnaround for finalized, audited financial statements
by June let of each year. This year's statements will not be
readily available until the end of the June. As a result, each
year we come to the City asking for an extension of time.
2. In light of the new requirements of AB939, the City of
Lodi may wake a drametic operational change in refuse collection,
and this will effect the ;atet
3. Finally, due to recent levelopments with regard to the
industrial customers coning under the franchise, this too will
effect the rate.
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Tho above three varlables provide for a complex determina-
tion of rates which in turn necessitates a longer time period
than one month to review as requited in the prcacnt contract.
Therefore, we would like to propose that the contract be amended
to review the rates through the month of September, and new rate8
be put into effect October let of each year.
Please consider our request, and I Will contact you to
discuss it further.
Ver t my ours,
avid Vaccarezzf3/l
President Ir
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ORDINAKCE NO. 1522
AN ORDINANCE OF THE LODI CITY COUNCIL
AMENDING THE CITY'S EXCLUSIVE FRANCHISE
FOR WASTE DISPOSAL SERVICES
W BEAS on September 28, 1988 under Ordinance 1433, the
Lodi City Council granted to Lodi City Sanitary Disposal Company,
Inc. the exclusive right to collect all residential and
cosrmercial waste within the City limits; and
WHEREAS, it now appears necessary and desirable to modify
that agreement by changing the date for rate review and
adjustment;
NOW, THEREFORE, the Lodi City Council ordains as follow;:
SECTION 1. The agreement entered into between the City and
Lodi Sanitary City Disposal Company, Inc. on
September 7, 1988 is hereby amended as described in
the Addendum To The Agreement attached hereto.
SECTION 2. All ordinances and parts of ordinances in conflict
herewith are repealed insofar as such conflict may
exist.
SECTION 3. This ordinance shall be published one time in the
Lodi Isms Sentinel, a daily newspaper of general
circulation printed and published in the City of
Lodi and shall be enforce and shall take effect
thirty days from and after its passage and approval.
Approved this 7th day of September 1991
David me an
Mayor
Attest :
Alice M. Reimche
City Clerk
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CCCOM301/TXTA.07A
State of California
County of San Joaquin, ss.
I, Alice M. Reimche, City Clerk of the City of Lodi, do hereby
certify that Ordinance No. 1522 was introduced at a regular
meeting of the City Council of the City of Lodi held September 4,
1991 and was thereafter passed, adopted and ordered to print at a
regular meeting of said Council held on September 1991.
Ayes: Council Members
Noes : Counci 1 Members
Absent: Council Members
I further certify that Ordinance No. 1522 was approved and signed
by the Mayor on the date of its passage and the same has been
published pursuant to law.
Alice M, Reimche
Ci ty Clerk
Approved as to Form:
Bobc att
City Attorney
CCCOM301/TXTA.07A
MODIFICATION TO AGREEMENT
THS MODIEUAHON TO THE AGREEMENT DATED SEPTEMBER 7, 1988 (The
Agreement) is entered into this day of 1991 by and between the
parties to the original agreement. All terms of the original agreement., save
and except those additions, deletions, and modifications specified herein shall
continue.
RECITALS
Paragraph 25 of the original Agreement (Collection Rates) shall be modified to
read as follows:
The City shall have the right to determine the rates
contractor nny charge to customers for refuse collection
and transportation services. The rates established
shall be reviewed annually during the month of September
and, if appropriate, adjusted effective October 1. In
its determination of any appropriate rate adjustments,
the City Council nny consider, by not be limited to, the
change in the Consumer Price Index and/or other indices
deemed appropriate for the past twelve months, and/or
any extraordinary in:.reases or decreases in the cost of
equipment, insurance, fuel, Federal, State and/or local
government taxes, fees, assessments, or other special
costs.
N VMNESS WHEREOF the parties hereto have set their
hands the date and year first mentioned above.
CITY OF LODI
fi ama s A. Peterson
City Manager
Approved As To Form. :
Bob M c N a t t, City Attorney
CCCOM301/TXTA.07A
LODI SANITARY CITY DISPOSAL COMPANY
I)ave Vaccarezza
President
Attest:
T ice M. Hennc e, City Clerk