HomeMy WebLinkAbout4.7 Garbage Franchise Oakland Scavenger CITY OF DUBLIN ,
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: May 26, 1987
SUBJECT Garbage Franchise with Oakland Scavenger Company.
EXHIBITS ATTACHED None
01(
RECOMMENDATION Council take no action.
FINANCIAL STATEMENT: None
DESCRIPTION The City of Dublin has issued a franchise to the
Oakland Scavenger Company (OSC) for the garbage pick-up services . Last
calendar year , the owners of OSC stock entered into a transaction with Waste
Management Incorporated to relinguish their interest and rights to OSC.
The Joint Rate Refuse Committee (JRRC) , which is composed of the cities in
the area that also have franchises with OSC, first believed that the
transaction was, in fact , a sale of the assets, liability and equity of OSC
to Waste Management Inc. If that were true, the transaction would need to
receive the approval of the City Councils .
The JRRC requested the legal opinion of the law firms of Meyers, Nave,
Riback and West on the transfer. Their opinion stated that the deal is a
nontaxable stock transfer of like stock for like stock (IRC 1036) . Such a
transfer does not trigger the right for City Council to approve it , because
the franchise remains , in fact , between each City and OSC. It is simply the
ownership of the company that has changed. All rights and obligations of
the franchise remain in force .
This is presented for Council information and consistant with the attorney ' s
opinion, Staff recommends that no action be taken.
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ITEM NO. 24 7