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Resolution No. 95511 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Rv 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 9551 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON TERMINATING THE NON-EXCLUSIVE SOLID WASTE FRANCHISE GRANTED TO ALTA RUBBISH HAULING SERVICE BY THE CITY OF VERNON PURSUANT TO RESOLUTION NO. 7494 WHEREAS, on February 15, 2000, the City Council of the City of Vernon adopted Resolution No. 7494 approving a Non -Exclusive Franchise Agreement for Solid Waste Management Services dated February 15, 2000, (the "Agreement") by and between the City of Vernon and Alta Rubbish Hauling Service ("Alta" or "Franchisee"); and WHEREAS, Section 3.1 of the Agreement provides for the payment of franchise fees; and WHEREAS, Section 3.2 of the Agreement provides for the payment of late fees if the franchise fee payment is not received by the City within the specified time; and WHEREAS, Section 4.4 of the Agreement provides that a franchise quarterly report is due on the last day of the month following the end of a calendar quarter; and WHEREAS, by letter dated December 3, 2007, Lewis J. Pozzebon, Director of Environmental Health and Health Officer, notified Alta that the quarterly reports for the second and third quarters of 2007 were late, the franchise fees and the late payment fees for said quarters were due and that the failure to submit the timely reports and fees constituted an event of default under the Agreement unless cured by December 27, 2007; and WHEREAS, by letter dated January 28, 2008, Eric Fresch, City Administrator, notified Alta of the City's intent to terminate the 1 Agreement pursuant to Section 12.50 of the Vernon City Code at a 2 hearing to consider the termination scheduled for February 19, 2008, 3 at approximately 10 a.m.; and 4 WHEREAS, the written notice to Alta cited the reasons for 5 the proposed termination as failure to make timely submissions of the 6 franchise fee payments and quarterly reports pursuant to Sections 3.2 7 and 4.4 of the Agreement; and 8 WHEREAS, Section 6.1 of the Agreement provides that Alta is 9 in default of the Agreement if it fails to perform (Sec. 6.1.A) and 10 fails to make timely franchise fee payments (Sec. 6.1.B); and 11 WHEREAS, Section 6.2 of the Agreement provides that upon an 12 event of default by Alta, the City may terminate the Agreement; and 13 WHEREAS, based upon past reports submitted, Alta would owe 14 approximately Two Hundred Twenty Dollars ($220.00) per quarter of 15 arrears plus late fees; and 16 WHEREAS, on February 19, 2008, a duly noticed hearing on the 17 proposed franchise termination was conducted by the City Council of 18 the City of Vernon, at which time Alta was given an opportunity to be 19 heard; and 20 WHEREAS, the City Council has heard and considered all 21. evidence, both written and oral, presented in support and in 22 opposition to Alta's franchise termination. 23 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE: 24 CITY OF VERNON AS FOLLOWS: 25 SECTION 1: The City Council of the City of Vernon hereby 26 finds and determines that the recitals contained hereinabove are true 27 and correct. 28 SECTION 2: The City Council of the City of Vernon further 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S Ifinds that all persons have had the opportunity to be heard or to file written objections to the proposed franchise termination, and having heard and reviewed no such oral and writtenobjections, determines that there are compelling reasons to justify the termination of the Non -Exclusive Franchise Agreement for Solid Waste Management Services approved by Resolution No. 7494 as follows: (a) Alta has failed to pay the required franchise fee payments and applicable late fees since the first quarter of 2007 and based upon the first quarter would owe approximately Two Hundred Twenty Dollars ($220.00) per quarter of 2007 plus late fees; (b) Alta has failed to submit timely quarterly reports for the second, third and fourth quarters of 2007; (c) Alta has failed to promptly and faithfully perform its obligations under the Agreement; and (d) Alta is in default of the Agreement pursuant to Section 6.1 of the Agreement. SECTION 3: The franchise granted to Alta is hereby declared terminated pursuant to Section 12.50(b) of the Vernon City Code, effective February 19, 2008. SECTION 4: The City Council of the City of Vernon hereby directs the City Clerk, or her designee, to send a copy of this resolution within 30 days of the conclusion of the hearing to: Alta Rubbish Hauling Service Attn. Sal Altadonna 770 S. Lincoln Avenue Walnut, CA 91789 SECTION 5: The City Council of the City of Vernon hereby authorizes the City Administrator, or his designee, to execute any and all documents necessary for the purpose of securing the Performance - 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Bond funds for, and on behalf of, the City of Vernon. SECTION 6: The City Clerk of the City of Vernon shall. certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 19th day of February, 2008. ATTEST: k� - — DIIANUELA GIRON, City Clerk i Name: Leonis C. Malburg Title: Mavor. - 4 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 9551, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, February 19, 2008, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. (SEAL) MANUELA GIRON, ity Clerk - 5 - 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 March 4, 2008 Mr. Sal Altadonna Alta Rubbish Hauling Service 770 S. Lincoln Avenue Walnut, CA 91789 Re: Termination of the Non -Exclusive Solid Waste Franchise Dear Mr. Altadonna: Transmitted herewith is a copy of Resolution No. 9551 regarding the above -referenced, which was approved by City Council on February 19, 2608. If you have any questions regarding this matter, please call Mr. Lewis Pozzebon, at (323) 583-8811 ext. 229. �,_, Very truly yours, t 4/,Ielly Giron City Clerk NG:dr c: Lewis Pozzebon Resolution No. 9551 E fusivefy Industfiaf