1997 AGN OCT 21 I24 - Laserfiche WebLink

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MEMORANDUM Office of the City Attorney October 9, 1997 Page 4 documents and other information. After some further communication with Jack's, MRC issued a letter dated October 31, 1996, confirming that Jack's was in full compliance with the franchise agreement and making some recommendations for changes to reporting systems to assure abetter review of operations in the future. A letter received in November of 1996, confirmed several accounts that had not been, previously listed by Jack's in materials received by the City. These accounts should now be included in the City's records of accounts serviced by Jack's. During late 1996, and continuing through early April of 1997, MRC worked with Jack's toward establishing appropriate reporting systems. In January, Jack Avakian informed MRC that he was meeting with someone at the City of Colton regarding the matter. In March of 1997, after no further progress with MRC and with Jack's no 'longer returning calls from MRC, Daryl Parrish confirmed to MRCthat Jack's had met in January with Mayor Gaytan. Despite attempts by MRC to get resolution of this issue through the Assistant City Manager and through Jack's directly during the remainder of the month of March and until April 17, 1997, no response was forthcoming from ` any quarter. At that point, MRC suspended' its efforts [Exhibit C]. Although it may be argued that the failure of Jack's to implement the required documentation systems violates the franchise agreement, no action was taken by former City Manager Freeman or Assistant City Manager Parrish to put Jack's on notice of such violation. The City may now give Jack's such notice, and that would seem to be appropriate at this time. Jack's, of course, will still have time to cure the violation under the franchise. In. short, it is unlikely that the City has grounds to find Jack's in non -curable' default under the franchise agreement at the present time. Extension of Jack's Franchise Agreement Jack's franchise agreement provides as possible with regard to its term and any extension thereof: "I. Term In accord with the provisions of Code Section 5.02.650, this Permit shall be for the initial term of seven (7) years, commencing on the effective date of this Permit [July 1, 1992]. The City shall have the option to extend this Permit for an additional seven (7) year period. City shall give written notice to Permittee sixty (60) days prior to the expiration of the initial term or any extended term of the City's election to exercise its