RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMMERCE, CALIFORNIA AUTHORIZING A CONTRACT INCREASE FOR ATHENS SERVICES FOR THE 2022-2023 FISCAL YEAR WHEREAS, the current exclusive franchise agreement for residential refuse and recycling services was entered into on July 1, 2014 to provide services to residential units and the City’s facilities and on October 16, 2018, the City approved a First Amendment to the Agreement between the City of Commerce and Calmet Services (Calmet), Inc. for residential and recycling services to extend the Agreement term by four years to June 30, 2023; and WHEREAS, on January 11, 2022, the City Council approved the Assignment of the Exclusive Franchise Agreement between the City and Calmet to Athens Services; and WHEREAS, on April 12, 2022, the City received a letter from Calmet requesting a rate increase with the expectation that it would be implemented July 1, 2022. However, due to the Athens assignment of Calmet around this same time and planned transition with potential changes to the requested rate increase, staff did not bring forth to Council an item for consideration until which time the rate adjustment could be discussed with Athens and substantiated; and WHEREAS, the Agreement allows for an annual review by City and Contractor during the term of the Agreement with respect to the service and rate structure and rate adjustment and for negotiations in good faith to reach an equitable adjustment in the service and/or contract rates with final decision by the City Council; and WHEREAS, in addition, Athens Services submitted a letter to the City Manager on January 17, 2023 requesting an extension, staff is requesting the City Council’s approval to continue engaging in negotiation discussions to potentially bring an amendment to the agreement to the City Council in the near future; and WHEREAS, staff recommends that the City Council authorize a 9.57% contract increase for Athens for the 2022-2023 fiscal year, which equates to $86,383.53 from the current monthly rate of $78,839.36 under the existing residential waste hauling services agreement.
NOW, THEREFORE, THE CITY COUNCIL DOES HEREBY RESOLVE, DECLARE AND DETERMINE AS FOLLOWS:
Section 1. Authorizes a 9.57% contract increase for Athens for the 2022-2023 Fiscal Year, which equates to $86,383.53 from the current monthly rate of $78,839.36 under the existing residential waste hauling services agreement.
Section 2. The Mayor is authorized to execute the resolution and amendment for and on behalf of the City of Commerce.
PASSED, APPROVED AND ADOPTED this 21st day of February, 2023. _______________________________
Oralia Y. Rebollo Mayor
ATTEST:
_________________________________
Lena Shumway
City Clerk
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