AgdaPkt 2010-03-08 - Laserfiche WebLink

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REPORT 6.38 age 1 To the Honorable !Mayorand ,CltyCouncl'l ,From C. Council Committee March 8, 2010 SUBJECT Franchise Collection Agreement RECOMMENDATION Adopt the attached Resolution approving the consent to assignment of the Franchise Collection Agreement with Allied Waste Industries, Inc. (Allied) to Republic Services, Inc. (RepubliC) pursuant to their merger. BACKGROUND On November 20, 2008, South Bayside Waste Management Authority (SBWMA), Counsel provided a memo to the Board discussing the pending merger of Allied with Republic. At that time, it was indicated that the "Consent to Assignment" provisions of both the Operation Agreement and the Disposal Agreement with Allied would require SBWMA Board's consent of the merger. Similarly, the "Consent to Assignment" provisions of each of the SBWMA Member Agency Franchise Collection Agreements would require each Member Agency's consent to the merger. SBWMA staff reviewed documentation provided by Allied last year. The merger of the two companies became effective on or about December 5, 2008. The merger was subject to a lawsuit outside of California and review by the Federal Department of Justice. All associated issues have been resolved and the merger is now final. Republic is the company which retained the majority of the directors; Republic's CEO remains as Chair of the Board and CEO, while Allied exists as wholly owned subsidiary of Republic. ALTERNATIVES Do not consent to the assignment which would result in having a franchise collection agreement with an incorrectly referenced entity. FISCAL IMPACT There is no fiscal impact to this action. ~1t~/2'~ Michael Gibbons Public Works Superintendent Peter Ingram ~~ ./ City Manager