R 3587
RESOLUTION NO. 3587
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE CONSENTING TO THE ASSIGNMENT OF THE
SOLID WASTE AND GREEN WASTE, AND THE RESIDENTIAL
CURBSIDE AND COMMERCIAL RECYLING COLLECTION
FRANCHISE AGREEMENTS TO WASTE CONNECTIONS, INC.
WHEREAS, public health and safety demand the orderly and periodic collection and
disposal of solid waste from properties within the City of Arroyo Grande ("City"); and
WHEREAS, South County Sanitary Service, Inc. ("SCSSI") is the holder of two
exclusive franchise agreements ("Franchise Agreements") with the City, the first dated
November 12, 1997, as amended, to provide collection, transportation and disposal
services for solid waste and green waste, and the second dated August 24, 1999, for
the collection, processing and marketing of residential and commercial recycling
materials; and
WHEREAS, by a letter dated January 16, 2002, SCSSI notified the City that SCSSI
had entered into a stock purchase agreement with Waste Connections, Inc. (WCI");
and
WHEREAS, the sale of common stock of SCSSI which may result in a change of
control of SCSSI constitutes an assignment within the meaning of Article 13 of the
Franchise Agreements; and
WHEREAS, Article 13 of the Franchise Agreements requires the prior written consent
of the City as a condition precedent to the effectiveness of a proposed assignment of
the Franchise Agreements to WCI; and
WHEREAS, SCSSI and WCI have requested that City consent to the assignment; and
WHEREAS, the Integrated Waste Management Authority contracted Hilary Theisen
Consulting ("Consultant") to review the business practices of WCI; and
WHEREAS, upon review of WCl's operational experience and financial stability, the
Consultant concluded that WCI satisfies the franchise assignment criteria.
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RESOLUTION NO. 3587
PAGE 2
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo
Grande does hereby consent to the assignment of the Franchise Agreements, subject
to the following conditions:
1. WCI shall agree to be bound by the requirements of Chapter 8.32 of the Arroyo
Grande Municipal Code.
2. Upon the consummation of the transaction between SCSSI and WCI, WCI shall
unconditionally accept, on behalf of SCSSI, the duties and obligations
contained in the Franchise Agreements.
3. The assignment of the Franchise Agreements shall not become effective until
WCI accepts in writing the conditions of this Resolution. Such acceptance shall
be filed with the Director of Administrative Services within thirty (30) days after
the date of the approval of this Resolution.
On motion of Council Member Ferrara, seconded by Council Member Dickens, and
on the following roll call vote, to wit:
AYES: Council Members Ferrara, Dickens, Lubin, Runels, and Mayor Lady
NOES: None
ABSENT: None
the foregoing Resolution was passed and adopted this 9th day of April, 2002.
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RESOLUTION NO. 3587
PAGE 3
M1CH~El AIff:1!l:
ATTEST:
2/GL-
ORE, DIRECTOR OF ADMINISTRATIVE SERVICES!
DEPUTY CITY CLERK
APPROVED AS TO CONTENT:
~d/ .
ST EN ADAMS, CITY MANAGER'
APPROVED AS TO FORM:
TORNEY
,
RESOLUTION NO. 3587
OFFICIAL CERTIFICATION
I, KELLY WETMORE, Director of Administrative Services/Deputy City Clerk of
the City of Arroyo Grande, County of San Luis Obispo, State of California, do
hereby certify under penalty of perjury, that Resolution No. 3587 is a true, full,
and correct copy of said Resolution passed and adopted at a regular meeting of
the City Council of the City of Arroyo Grande on the 9th day of April. 2002.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this--12th
day of April, 2002.
J Ii
I I i i , . ' ~UIJ/U!-
W~ MORE, DIRECTOR OF ADMINISTRATIVE SERVICES!
DEPUTY CITY CLERK
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