TO: Board of Directors
FROM: Steve Lederer, Agency Manager
REPORT BY: Steve Lederer, Agency Manager
SUBJECT: Memorandum of Understanding Extending the $300,000 Commitment Towards a Future Public Benefit Project
RECOMMENDATION
title
MOU EXTENDING THE $300,000 COMMITMENT TOWARDS A FUTURE PUBLIC BENEFIT PROJECT
DISCUSSION AND REQUESTED ACTION: Authorize the Agency Manager to sign the attached memorandum of understanding, extending the time frame to implement a public benefit project using the $300,000 designated in Section 4.1 of the Franchise Agreement.
body
BACKGROUND
Section 4.1 of the Amended and Restated Franchise Agreement between the Agency and the Contractor dated October 19, 2020 (“Franchise Agreement”) states in relevant part:
[I]f the terms and obligations contained in the Fourth Amendment to Agency Agreement #95-06 regarding ‘Phase Two’ of a Construction and Demolition Debris Program (CDP), or of another similar program that is reasonably satisfactory to the Agency, are not satisfied by June 30, 2025, Contractor shall repay to the Agency its payment for costs associated therewith in the amount of three hundred thousand dollars ($300,000) no later than thirty (30) days after receiving notice from the Agency.
Back in 2020 when the Franchise Agreement was last updated, the agreement included a provision for the Landfill to make $300,000 worth of improvements at their main gate that would benefit service to the public. Since that agreement was signed, the Company has made the decision to close the Landfill, rendering these potential improvements moot.
The purpose of this agenda item is to authorize the Agency Manager to sign a memorandum of understanding that requires the company to continue to hold the $300,000 (with interest), and to propose, for the Board’s approval, a future project that will benefit the public using these funds.
FISCAL & STRATEGIC PLAN IMPACT
|
Is there a Fiscal Impact? |
No |
|
Is it currently budgeted? |
No |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: This action is not a Project subject to CEQA. If a specific project is proposed in the future, CEQA will be applicable at that time.