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File #: 20-6866    Version: 1 Name:
Type: Ordinances and Action Items Status: Adopted
File created: 1/9/2020 In control: City Council
On agenda: 4/21/2020 Final action: 4/21/2020
Title: Subject: Authorization to execute a Fourth Amendment to Franchise Agreement including provisions to pursue sole negotiations for a new Franchise Agreement for solid waste collection services with Recology Cupertino; and, if negotiations are unsuccessful, an 18-month extension with a 5% increase on all rates effective February 1, 2021 and a 5% increase on all rates effective February 1, 2022 in order to allow time to identify another solid waste collector.
Attachments: 1. Staff Report, 2. A - Recology Fourth Amendment to Franchise Agmt (signed by Recology), 3. B - Franchise Negotiations Communications Protocol, 4. C - Draft Resolution, 5. D - Current Franchise Agreement with first three amendments, 6. E - Recology Letter regarding intention to Negotiate Dated January 29, 2020, 7. F - City of Cupertino letter to Recology regarding Intention to Negotiate dated March 25, 2020, 8. G - HF&H Summary of Findings Dated April 14, 2020

Title

Subject:  Authorization to execute a Fourth Amendment to Franchise Agreement including provisions to pursue sole negotiations for a new Franchise Agreement for solid waste collection services with Recology Cupertino; and, if negotiations are unsuccessful, an 18-month extension with a 5% increase on all rates effective February 1, 2021 and a 5% increase on all rates effective February 1, 2022 in order to allow time to identify another solid waste collector.

 

Recommended Action

1.                     Authorization of the City Manager to execute a Fourth Amendment to Franchise Agreement with Recology Cupertino for solid waste collection services (Attachment A) with provisions including:

1)                     Pursue negotiation of a new 10-year agreement with Recology Cupertino; and

2)                     If negotiations are unsuccessful or are not completed by the end of the current Franchise Agreement term on January 31, 2021, an eighteen (18) month extension to the Franchise Agreement with no changes in service with a 5% special maximum rate adjustment effective February 1, 2021 followed by a second 5% special maximum rate adjustment effective February 1, 2022; and

2.                     Adopt Franchise Negotiations Communications Protocol (Attachment B); and

3.                     Adopt Resolution No. 20-039, a resolution to negotiate a new Franchise Agreement and define a bridge term that includes a special maximum rate adjustment (Attachment C).