1999 AGN JUN 01 I19 - Laserfiche WebLink

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: Cdy of Cotton Agenda Report Council Meeting of June 1, 1999 Page 2 inconsistencies, factual emors and practical enforcement problems with the City's conVact with Colton Disposal. The City Attomey has recommended that the Ciry consider entering into a restated contract that will acknowledge the existing obligations of the parties under the 1996 conVact, but will also reflect the operetional realities of the service provided. In preparing the Restated Agreement, the City Attomey reviewed at least eight (8) different solid waste contracts, including contracts held by Colton Disposal's competitors. The proposed Restated Contract is based on the other conVacts and reflects more of an industry standard contract. The amended and restated agreement consists of rivo components, (1) the restated agreement and (2) the memorandum of understanding ("MOU") for the development of the facility. The MOU is attached as an exhibit to the restated agreement. THE RESTATED AGREEMENT In addition to the City Attomey's review of the existing agreement and the discovery of inconsistencies, factual errors and practical enforcement problems with the Colton Disposal conUad, the Solid Waste Ad-Hoc Committee has negotiated the following deal points with Colton Disposal that will benefit the community. Community Berrefits ♦ No rate increases (residential or commercial) unbl July 2001 (waive 1998, 1999 and 2000 annual rate increases). The rate increases would othervvise be automatic under the tertns of the existlng contract. This represents a savings of over $85,000 to the residential and commercial rate payers. • Immediate payment of $80,000 to the City of Colton as required under the ewsting conVact. This amount will be placed in an escrow account to potentially offset future environmental and development costs for the Colton Disposal Faciiity. If the Facility is not constructed, this money will defauk into the City's General Fund. ♦ The City has obtained expanded free services for an additional 11 City sites. These sites are listed in an exhibR to the restated agreement. The value of the expanded free senice has been estimated at $11,000 per year. ♦ Atfhough the e�dsting agreement does not provide for it, the Restated Agreement will provide for 4x per year Bulky Item Pidc-up per customer per year as part of the basic rate. There will not be any additional charges to customers for this service. ♦ Provide 35 Discretionary 'Roll OR' Containers per year. ♦ If the Facility is consUucted, the City will receive a minimum of $35,000 in revenue (or 50% of recycling revenue whichever is greater) to the City of Colton to be used at its discretion.