1997 AGN MAY 19 - Laserfiche WebLink

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hauling needs as well as the requirements established by the State of Califomia (AB 939 and future legislation). Facility (Section 4.02b) Contractor shall provide irrevocable letter of credit issued by a bank satisfactory to the City in the amount of $100,000. A payment of $55,000 must be made if all required environmental review and required permits for the sotid waste facility are not received by July 1, 1999; and $45,000 if construction has not been completed and processing and transfer operations have not commenced on or before December 31, 2000. The existing agreement requires a$20,000 payment if the Contractor has not acquired a site for the facility by January 1, 1997. The amendment changes the site acquisition date to November 1, 1997. This has been discussed previously and was written about in the local newspapers. Recovered Material Revenues and Market Risk Allocation (Section 4.02c.) Effective July 1, 1997, Taormina shall guarantee a minimum of $41,000 in annual recycling income to the City. This income shall substantially assist in offsetting the expense of a Code Enforcement Officer to support local health and safety code compliance. The Code Enforcement Officer shall be funded according to the following schedule. Juty 1, 1997 - June 1, 1998 -$41,000 annually July 1, 1998 - June 1, 1999 -$43,050 annually July 1, 1999 - June 1, 2000 -$45,202 annually July 1, 2000 - June 1, 2001 -$47,462 annually July 1, 2001 - Term of Franchise $49,835 annually Effective July 1, 1998 an adjustment will be made to the residential rate reflecting a $0.30 adjustment for recycling income to the City. No adjustment to the service rate shall be made prior to July 1, 1998. Rates - Escalation (Section 10.11) There are no changes to this section. Escalation formula effective July 1, 1998 continues to be based upon 80% of the US Cities CPI Index. The service fee shall only be escalated if the Contractor is in compliance with this agreement. Removal of Transition Language We are proposing that Transition Language be removed throughout the agreement. The "transition" period referred to in the present agreement was the period in time befinreen July 1, 1996 and September 30, 1996. Transition language refers primarily to the transition from the City providing manual collection services to the Contractor providing automated and manual residential and commercial collection services.