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st, CITY OF COLTON INTEROFFICE MEMORANDUM Office of the City Attorney TO: Mayor Gaytan, Members of the City Council, Interim City Manager FROM:. Julie Hayward Biggs, City A SUBJECT: Extension of Jack's Disposal Franchise Agreement DATE: October 9, 1997` INTRODUCTION As you may be aware, Jack's Disposal, Inc. ("Jack's") has requested that its franchise agreement and permit to provide refuse hauling services within the City of Colton be extended to be co -terminus with the franchise agreement awarded to Taormina Industries, Inc. in May of 1996 [Exhibit A]. Taormina, conversely, has asserted any extension of Jack's franchise would be a breach of Taormina's-contract with the City [Exhibit B]. In order to determine the City's legal position, I have reviewed both franchise agreements and related correspondence. My legal opinion is that the City needs to take no action at the present time. QUESTIONS PRESENTED 1. What is the status of Jack's franchise agreement at the present time, and what provisions are there in that Agreement relating to extension of the initial term? 2. Has any action taken by the City with regard to auditing Jack's resulted in any. findings that allow or require termination of Jack's at the present time? 3. What does the Taormina franchise agreement provide with regard to Jack's disposal and any exclusive right granted to Taormina? 4. Do the representations of previous or current, members of the City Council give rise to any claim by Taormina should the City Council elect not to terminate Jack's disposal or to allow Jack's franchise agreement to be automatically extended without action of the Council?