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Home My WebLink About51-93 Aft • 111 • Resolution No. 51-93 RESOLUTION OF THE TOWN OF LOS ALTOS HILLS EXTENDING THE MEMORANDUM OF UNDERSTANDING WITH THE LOS ALTOS GARBAGE COMPANY WHEREAS, on March 3 , 1993 , the Town of Los Altos Hills ("Town") and Los Altos Garbage Company ("Company") entered into a Memorandum of Understanding regarding the collection of solid waste within the Town; and WHEREAS, the Memorandum of Understanding expires July 31, 1993 ; and WHEREAS, Town is currently negotiating with Company to enter into a new agreement, but these negotiations will not be completed by July 31, 1993 ; NOW, THEREFORE, BE IT RESOLVED by the City Council of the Town of Los Altos Hills that the Memorandum of Understanding is amended by the Amendment attached hereto as Exhibit A. Regularly passed and adopted this 21st day of July, 1993 . ATTEST: City erk PB\MAS\149490JJ.W50 07/14/93 • • •• AMENDMENT NO. 1 This Amendment No. 1 ("Amendment") is made and entered into as of July 21 , 1993 , as an amendment to the Memorandum of Understanding ("Memorandum") entered into as of March 3 , 1993 , by and between the Town of Los Altos Hills ("Town") and Los Altos Garbage Company, a California corporation ("LAGCO") . RECITALS A. Town and LAGCO entered into a Memorandum on March 3 , 1993 , which expires by its terms on July 31, 1993 . B. While a new franchise agreement is being negotiated by Town and LAGCO, the parties desire to amend the Memorandum to extend its term through September 30, 1993 . AGREEMENT Section 1. Section 9 of the Memorandum is hereby amended to read as follows: Section 9 . Termination. This Memorandum of Understanding shall be effective from March 3 , 1993, through the earlier of (i) September 30, 1993 , or (ii) the date a new franchise agreement is approved by LAGCO and the Town's City Council. Section 2 . No other changes. Except for what is set forth herein, no other changes or amendments are made to the Memorandum and all sections of the Memorandum, as amended herein, are hereby ratified and confirmed. IN WITNESS, HEREOF, the parties have executed this Amendment No. 1 on the dates set forth below. Dated: July 21, 1993 LOS ALTOS GARBAGE COMPANY, a California corporation By: Dated: July 21, 1993 TOWN OF LOS ALTOS HI LS/ By: Mayor City erk PB\MAS\149490JK.W50 07/13/93 • : • • Memorandum of Understanding This Memorandum of Understanding ("Memorandum") is entered into as of March 3 , 1993 by and between the Town of Los Altos Hills, a general law city ("Town") and the Los Altos Garbage Company, a California corporation ("LAGCO") . RECITALS A. Town and LAGCO are parties to a franchise agreement ("Franchise Agreement") regarding LAGCO's providing garbage and related services to property within the Town. B. The Franchise Agreement will terminate on March 18, 1993, and Town and LAGCO desire to negotiate a new franchise agreement. C. While a new franchise agreement is being negotiated by Town and LAGCO, the parties desire to enter into this Memorandum of Understanding which extends and amends in some ways the Franchise Agreement. AGREEMENT Section 1. Mandatory Service. Solid waste service is mandatory for all improved properties within the Town limits, except that those residents that have received an exemption by the City Manager shall be exempt from garbage pick-up and will pay the baseline service only. No further exemption shall be granted by the City Manger. Section 2 . Rate Increase. The rates for residential services and commercial uses are set out in Exhibit A attached hereto and incorporated herein by this reference, and these rates shall be in effect from March 1, 1993 through the term of this Memorandum. LAGCO shall bill for its services on a quarterly basis. Section 3 . Yardwaste Program. The yardwaste site on Purissima Road shall be operated by LAGCO and open exclusively to Town residents 4 days per week, year-round, on days acceptable to the Town. There shall be no gate fee for the yardwaste site. Section 4. Reimbursement. (a) LAGCO shall project the tonnage of all solid waste hauled from properties within the Town. LAGCO shall reimburse the Town for either thisprojected tonnage or the actual tonnage hauled from properties within the Town, whichever is greater, except that, EXHIBIT A 411 411 for debris .boxes onlythe actual tonnage shilli reimbursed to Town. Reimbursement shall be $34 . 00 per ton and shall be paid to the Town on a monthly basis. (b) LAGCO shall reimburse the Town at $34 . 00 per ton plus an administration fee of two percent (2%) of the $34 . 00 per ton for the actual tonnage removed from properties outside the Town pursuant to any agreement between the Town and the County of Santa Clara. This reimbursement shall be paid monthly. Section 5. LAGCO Service Fee. (a) In 1993 LAGCO shall receive an annual fee for all of its services to improved property within the Town of seven percent (7%) of (i) operating costs and (ii) disposal costs. "Operating Costs" for the purpose of this section, are defined as normal, operating costs, but do not include amortization nor any money used for donations, travel or entertainment. (b) In subsequent years, LAGCO shall receive an annual fee for all its services to property within the Town of seven percent (7%) of (i) operating costs and (ii) the 1993 actual disposal costs, as adjusted by the Consumer Price Index. (c) The seven percent (7%) annual service fee, as calculated in 5 (b) , shall be made annually in advance when the rates are set by the City Council. If LAGCO fails to attain an actual seven percent (7%) service fee, LAGCO shall receive no additional compensation and if, through LAGCO's efficiencies, LAGCO realizes a greater service fee than seven percent (7%) , no additional reimbursement to Town is required. Section 6. Franchise Fee. In 1993 and in subsequent years the Town shall receive from LAGCO an annual franchise fee calculated as follows: • For rate setting purposes -- ten percent (10%) of all operational and disposal expense projected by LAGCO and the Town. • For remittance purposes -- ten percent (10%) of all Los Altos Hills cash receipts generated (less returned checks) , Town expenses, and LAGCO fees. Section 7. Town Expenses. LAGCO shall reimburse to Town all Town expenses related to solid waste disposal ("Town Expenses") . These Town Expenses shall include, but are not limited to, the following: (a) Household hazardous waste fees; - 2 - • • , • (b) _ Town overhead related to solid waste issues, including, but not limited to, Town personnel expenses; (c) Town notices and mailings related to solid waste issues; (d) AB 939 compliance expenses; (e) Reimbursement to the solid waste fund; The amount of Town Expenses shall be fixed at the time rates are set and reimbursement of all Town Expenses by LAGCO shall be made to the Town on a monthly basis based on dividing the total Town Expenses by twelve (12) . The Town shall have the unilateral right to raise Town Expenses and the solid waste rates to cover these Town Expenses. Section 8. Records. LAGCO shall make available all records related to its operations and services in the Town on a separate and distinct basis from its operations in other jurisdictions. Section 9. Termination. This Memorandum of Understanding shall be effective from March 1, 1993 through the earlier of (i) July 31, 1993 or (ii) the date a new franchise agreement is approved by LAGCO and the Town's City Council. Section 10. Assistance. LAGCO shall provide such personnel, resources and services necessary to assist the Town in meeting all reporting and compliance requirements under present and future solid waste laws, and may include any additional expenses incurred in this process as future operating expenses. Section 11. No Obligation. This Memorandum in no way obligates Town or LAGCO to enter into an agreement in the future or extend this Memorandum beyond July 31, 1993 . However, if Town and " LAGCO doenterinto an agreement in the future, Town and LAGCO -agree to include the following provisions: (a) LAGCO shall implement a detailed reporting system acceptable to the Town. (b) At the direction of the Town, an annual audit shall be performed by a certified public accountant selected by the Town to ascertain compliance with the franchise agreement. LAGCO will make all financial statements, internal audits and any other information requested available to the auditor. Town and LAGCO shall work out a schedule for the annual audit and rate review . PB\MAS\149490GW.002 03/03/93 - 3 rWl dela process, so that At annual audit does not u � y the rate review process, (c) Any request from LAGCO for a rate adjustment shall not be considered until the previous year' s audit has been completed and approved by the Town' s City Manager. Section 12 . Franchise Agreement. All provisions of the Franchise Agreement that are not amended by this Memorandum shall remain in full force and effect during the term of this Memorandum. Section 13 . Presentation. Before July 31, 1993 , LAGCO and the City Manager shall present a program to the City Council for cardboard recycling, expansion of plastic recycling and delivery to the Town of compost material. IN WITNESS THEREOF, the parties have executed this Memorandum on the dates set forth below. Date: /442,04 ,S / /193 LOS ALTOS GARBAGE COMPANY, a California corporation By: U Date: /0/ /113 7 S TOWN OF LOS ALTOS HILLS „,_ By• a Attes : City Clerk • PB\MAS\149490GW.002 - 4 03/03/93