HomeMy WebLinkAboutNotice of Termination of Rainbow/Republic Services Evergree APPienvo .p-o
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City of Huntington Beach
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File #: 19-409 MEETING DATE: 4/1/2019
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Council Members
SUBMITTED BY: Erik Peterson, Mayor
Lyn Semeta, Mayor Pro Tern
DATE: April 1, 2019
Subject:
Notice of Termination of Rainbow/Republic Services Evergreen Contract
Statement of Issue:
The City of Huntington Beach is under contract ("Contract") with Rainbow Disposal/Republic Services
("Republic") for refuse collection and other services. This Contract has not been substantially revised
since 2006 and contains an "evergreen" clause that in essence requires a 15-year notice of
cancellation. On May 15, 2017, Mayor Erik Peterson and Mayor Pro Tern Lyn Semeta brought an H-
Item before the City Council seeking a review of the Contract. The City Council took action on the H-
Item and established an Ad Hoc Committee.
The Ad Hoc Committee gave direction to staff to attempt to negotiate a revised contract. Evergreen
clauses put cities at a disadvantage as they renew automatically and hamper a city's ability to obtain
competitive pricing and terms. Despite multiple attempts to come to new terms, no agreement has
been reached for a new or revised contract.
It is in the best interests of the City and the taxpayers to give notice of cancellation of the Contract.
Such cancellation does not preclude the parties from attempting to negotiate new terms and enter
into a mutually agreeable new contract.
Recommended Action:
Direct the City Manager to prepare a letter of written notification to Republic Services of the City's
intent to terminate the current franchise agreement pursuant to the terms of the agreement, and
present that termination letter to the City Council for approval at the next-scheduled City Council
Meeting.
City of Huntington Beach Page 1 of 1 Printed on 3/27/2019
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CITY OF HUNTINGTON BEACH
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City Council Interoffice Communication
To: Honorable Council Members
From: Erik Peterson, Mayor
Lyn Semeta, Mayor Pro Temcj
Date: March 25, 2019
Subject: City Council Member Item for the April 1, 2019, City Council
Meeting- Notice of Termination of Rainbow/Republic Services
Evergreen Contract
STATEMENT OF ISSUE:
The City of Huntington Beach is under contract ("Contract") with Rainbow Disposal/Republic
Services ("Republic") for refuse collection and other services. This Contract has not been
substantially revised since 2006 and contains an "evergreen" clause that in essence requires a
15-year notice of cancellation. On May 15, 2017, Mayor Erik Peterson and Mayor Pro Tern Lyn
Semeta brought an H-Item before the City Council seeking a review of the Contract. The City
Council took action on the H-Item and established an Ad Hoc Committee.
The Ad Hoc Committee gave direction to staff to attempt to negotiate a revised contract.
Evergreen clauses put cities at a disadvantage as they renew automatically and hamper a city's
ability to obtain competitive pricing and terms. Despite multiple attempts to come to new terms,
no agreement has been reached for a new or revised contract.
It is in the best interests of the City and the taxpayers to give notice of cancellation of the
Contract. Such cancellation does not preclude the parties from attempting to negotiate new
terms and enter into a mutually agreeable new contract.
RECOMMENDED ACTION:
Direct the City Manager to prepare a letter of written notification to Republic Services of the
City's intent to terminate the current franchise agreement pursuant to the terms of the
agreement, and present that termination letter to the City Council for approval at the next-
scheduled City Council Meeting.
xc: Fred Wilson, City Manager
Lori Ann Farrell Harrison, Assistant City Manager
Robin Estanislau, City Clerk
Michael Gates, City Attorney
Switzer, Donna
From: Estanislau, Robin
Sent: Sunday, March 31, 2019 9:04 PM
To: philburtis
Cc: Switzer, Donna
Subject: Re: Supplemental Communication, Apr 1 Council Meeting, Agenda item 14 (19-409)
Received ... thank you.
Sent from my iPad
On Mar 30, 2019, at 1:39 PM, philburtis <philburtis@gmail.com>wrote:
Please document that I endorse item Agenda item 14 (19-409) to prepare a letter of notice of termination
of evergreen contract to Rainbow(AKA Republic Services). Long over due.
Phil Burtis
40+ year resident
SUPPLEMENTAL
COMMUNICATION
Meeting Date; 4/!//`7
Agenda Item No.; /I/ (//— g)
1