HomeMy WebLinkAboutReso 42-15RESOLUTION NO.42-15
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
APPROVING THE SECOND AMENDMENT TO THE GARBAGE,
RECYCLING AND GREENWASTE SERVICES FRANCHISE AGREEMENT WITH
MORRO BAY GARBAGE SERVICE TO MODIFY THE SECURITY REQUIREMENT
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City Council adopted Resolution No. 48-01 approving the Garbage,
Recycling and Greenwaste Services Franchise Agreement with Morro Bay Garbage Service
(MBGS) for collection services effective January 1, 2002 and setting the initial rates for
collection for residential and commercial customers (the "Agreement"); and
WHEREAS, on May 27, 2008, by Resolution No. 24-08, the Agreement was extended
by an amendment to the Agreement (the "Amendment"); and
WHEREAS, the Agreement and Amendment are herein referred to as the "Amended
Agreement;" and
WHEREAS, MBGS has requested a modification to the form of security required in the
Amended Agreement.
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Morro
Bay approves the Second Amendment to the Amended Agreement, attached hereto.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held on the 23d day of June, 2015 by the following vote:
AYES: Irons, Headding, Johnson, Makowetski, Smukler
NOES: None
ABSENT: None
A� I. C-4� -
J IE L. IRONS, Mayor
ATTEST:
lZt iS—O N, City Clerk
Exhibit A
Second Amendment to MBGS Amended Agreement
(Immediately behind this page)
CITY OF MORRO BAY
SECOND AMENDMENT TO CONTRACT FOR SOLID WASTE SERVICES
(W This Amendment No. 2 to that certain agreement for solid waste services ("this Amendment) is made and
entered into this 23`d day of June, 2015 by and between the City of Morro Bay, a municipal corporation ("City")
and Morro Bay Garbage Service, a California corporation ("MBGS") (sometimes collectively the "Parties").
RECITALS
A. Effective January 1, 2002, the Parties entered into an agreement for MBGS to provide solid waste services
for City (the "Agreement") that was amended effective May 27, 2008, by that certain letter amendment
dated August 5, 2009, and signed on behalf of MBGS on September 1, 2009, that extended that term of the
Agreement through December 31, 2023 and added section 5.2.1 to and amended section 7.2 of the
Agreement (collectively the "Amended Agreement").
B. The Amended Agreement requires MBGS to provide a cash security of $250,000 (the "Security") as the
guarantee MBGS will satisfactorily perform its obligations pursuant to .the Amended Agreement,
C. MBGS has requested City to substitute a performance bond for the Security MBGS has already provided.
D. The Parties desire to amend the Amended Agreement to allow MBGS to replace the Security with a
performance bond.
Now, therefore, the Parties agree as follows:
1. Section 10.5 of the Amended Agreement shall be amended in its entirety to read as follows:
10.5 SECURITY
At any time, Contractor may provide file with the City a performance bond, as approved by the City
Attorney, in an amount of not less than $350,000 to replace the cash deposit of $250,000 (the "Cash
Deposit") Contractor previously provided to the City as security for Contractor's performance pursuant
to this Agreement. If a satisfactory performance bond is provided by Contractor, then the City, within
30 days after approval of that performance bond shall return to Contractor the Cash Deposit. The
performance bond shall remain in effect for the term of this Agreement, as may be extended and until
90 days after the termination of this Agreement. If this Agreement refers to a security fund or
something similar, then it shall be deemed to mean the performance bond provided pursuant to this
section.
2. Except as specifically provided herein, all provisions of the Amended Agreement shall continue in full
force and effect.
3. The effective date of this Amendment No. 2 shall be July 1, 2015.
IN WITNESS WHEREOF, the Parties hereto have caused this Amendment No. 2 to be executed.
CITY OF MORRO BAY
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Attest:
Jamie L. Irons, Mayor
Dana Swanson, City Clerk
MBGS
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Michael Dean, Division Vice President