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HomeMy WebLinkAboutReso 016-93 Garbage 3rdAmendRESOLUTION NO. 16 - 93 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING THIRD AMENDMENT TO FRANCHISE AGREEMENT BETWEEN THE CITY OF DUBLIN AND OAKLAND SCAVENGER COMPANY WHEREAS, Oakland Scavenger Company (OSC) collects and disposes of waste generated within the City of Dublin pursuant to a Franchise Agreement dated March 10, 1986; and WHEREAS, the agreement was previously amended on March 13, 1989 and January 13, 1992; and WHEREAS, during the past several years, State Legislation including AB 939 has increased the responsibility of cities in managing the provision of waste planning and handling; and WHEREAS, the increasing mandates have resulted in increased demands for Staff time, consultants, conducting special studies, and implementation of new programs and services; and WHEREAS, the performance of these obligations has also impacted the City financially due to the lack of a designated revenue source for these purposes; and WHEREAS, the Total Franchise Fees and "Other Surcharges" currently levied by other jurisdictions serviced by Oakland Scavenger Company range from 5.5% to in excess of 20%; and WHEREAS, the average fees levied by the agencies surveyed equals 12.4%; and WHEREAS, the City of Dublin currently levies only a 4.8% Franchise Fee; and WHEREAS, the collection of an additional 2% Waste Management Administrative Fee would continue to place the City of Dublin well below the average fees collected by other jurisdictions; and WHEREAS, the collection of such a fee would result in the City of Dublin having the second lowest combined fees of the 13 agencies serviced by Oakland Scavenger Company; and WHEREAS, the proposed garbage rate structure to be considered at a public hearing on January 11, 1993 will accommodate the payment by the Company of this additional fee; and WHEREAS, in order to collect such a fee an amendment to the franchise agreement is required. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve the "Third Amendment dated January 11, 1993 to Agreement dated March10, 1986 between City of Dublin and Oakland Scavenger Company" (Exhibit A), attached hereto and by reference made a part hereof. BE IT FURTHER RESOLVED that the Mayor is hereby authorized to execute the agreement on behalf of the City of Dublin. PASSED, APPROVED AND ADOPTED this 11th day of January, 1993. AYES: Councilmembers Burton, Houston, Howard, Moffatt, and Mayor Snyder NOES: None ABSENT: None ATTEST Mayor a: ~esol 6. agenda#11 THIRD AMENDMENT DATED JANUARY 11, 1993 TO AGREEMENT DATED MARCH 10, 1986 BETWEEN CITY OF DUBLIN AND OAKLAND SCAVENGER COMPANY REGARDING WASTE COLLECTION AND DISPOSAL This amendment is by and between City of Dublin, hereinafter "CITY" and Oakland Scavenger Company, hereinafter "COMPANY." RECITALS W~EREAS, the CITY and COMPANY have entered into a franchise agreement dated March 10, 1986, hereinafter "AGREEMENT" for waste collection and disposal; and WHEREAS, the AGREEMENT is dated the 10th day of March 1986; and WHEREAS, CITY and COMPANY have executed a First Amendment to said AGREEMENT; and WHEREAS, said amendment is dated March 13, 1989 and it provides for a change in the government locations receiving services pursuant to AGREEMENT; and WHEREAS, CITY and COMPANY entered into a Second Amendment dated January 13, 1992; and WHEREAS, said second amendment provided for the COMPANY to obtain delinquent amounts collected by the CITY; and WHEREAS, in recent years State Mandates in the area of waste management have increased demands on CITY resources; and WHEREAS, the CITY is desirous of a stable revenue source to meet the obligations of the increased State Mandates; and WHEREAS, the COMPANY has indicated a willingness to provide for the collection of a 2% Administrative Fee which will be remitted to the CITY; and WHEREAS, the fee shall be collected and disbursed in a manner similar to the Franchise Fee identified in Section 3.6 of AGREEMENT. NOW, THEREFORE, CITY and COMPANY do hereby agree that the AGREEMENT Between the City of Dublin and Oakland Scavenger Company regarding Waste Collection and Disposal shall be amended as follows: The AGREEMENT shall be amended to add Section 3.9 to the AGREEMENT to read as follows: 3.9 CITY Administrative Fee In addition to the Franchise Fee enumerated in Section 3.6 of this AGREEMENT, COMPANY shall pay to the CITY two percent (2%) of the gross revenue derived by the COMPANY from Collection services provided in the CITY under this agreement. The computation of these fees shall be conducted in the same manner as Franchise Fees described in Section 3.6. The CITY shall utilize fees collected pursuant to this clause to fund administrative costs associated with management of the CITY's solid waste system. These costs may include but are not limited to: Staff salaries and benefits, consultants, implementation of waste management programs and activities and other related items as deemed necessary by the CITY. For CITY: COMPANY' For ive A Waste Management Company Vice President PSR/lss a: agmt-osc. psr#]3