1998 AGN SEP 15 Misc Add 1 - Laserfiche WebLink

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SENT By : I REI I . & MANELLA NBO 1900 AVENUE OP rMr, STARS, $UITK 9.997c) LOS ANGELES. CALIFORNIA 90067-4270 TELEPHONE 43101 277-1010 FACSIMILE la+nl 409-7190 ; 9-15-9$ ; 15:02 ; I RRL & MANELLA Ivtscl—> U1 11 Lwl'j�, I V• • • �•� , „ ". I RELL & MANELLA LLP A 1M15TERE13 1,IMITED uA0141rry LAW PA0VNiP6"P INCLUDIN9 pWCVicNAL CORPORATIONS B40 NEWPORT CENTER DRIVL, SUITE, 400 NEWPORT BRACH, CALIFORNIA 92660-632 TELEPHONE 19491 760-0991 r AUUMnll.F 19491 760•%Z00 3:1.1 SCl1TFt HOPE STREE?, SUITE 3304 LOS ANOELES, CALIFORNIA P007I-3042 TELG1-'H0N F. 12131 640-1505 FACSIMILE 12131 PRO -0515 WR1TER'5 DIRt:c:r MIAI. NUMBER (949) 760-0991 agreenegrell.cam September 15,1998 Honorable Mayor and Members of the City Council of the City of Colton 650 North La Cadena Drive Colton, California 92324 Re. 'R enewal of Jack's Disposal Services Waste Collection Permit Mr. Mayor and City Council Members: We are counsel to Taormina Industries and understand that the City Council is considering formal action to award Jack's Disposal Service an extension of its franchi ato collect waste within the City of Colton. The purpose of this letter is to make sure that City Council is aware of the serious and costly consequences of that action. To put it succinctly, the City's cxlension of Jack's franchise would constitute, an unfettered breach of the exclusive waste collection contract between the City and Taormina. I am quite sure that your capable City A,ttormy has pointed out to you that the City would likely lose the lawsuit springing from such a breach and that the City would then be liable to Taormina for potentially millions in damages and attorneys' fees. There simply is no logical or legal basis for the City to breach its contract with Taormina by extending Jacks franchise. Taormina paid $2.5 million for the right to service the accounts that would be included in such an extension and fully intends to get what it paid for. To refresh the City Council's recollection, the agreement between Taormina and the City (the "Agreement') grants Taormina the exclusive right to collect waste within the City except for certain limited, pre-existing accounts served by Jacks Disposal Service until July 1999 under a separate franchise agreement. The accounts that may be served by Jack's until July 1999 are set forth in Exhibit 4.01 b#2 to the Agreement. Although Taot7mina believes that the Agreement is clear about Taormina aalso exclusivity, uncontrovertible evidence of the intended exclusivity of the Agreement exists outside of the Agreement itself. • For example, the Request for Qualifications prepared by the City in connection with its selection process specifically stated Colton intends to award a single franchise for residential and commercial refuse, recycling, and green collection." In addition, the City's Request for Proposal indicated that the only =counts excluded from the waste collection contract would be certain "listed accounts" served by Jack's until July 1, 1999. As further evidence of the exclusivity understood by the parties, in 66653.01 03