Report to Mayor and City Council
Tuesday, June 21, 2022
Consent
SUBJECT:
Title
APPROVE AND AUTHORIZE THE CITY MANAGER TO WAIVE PENALTY FEE RELATED TO LATE FRANCHISE PAYMENT (CITY COUNCIL)
Body
I. SUMMARY
The City of Carson has a franchise agreement with Waste Resources Technologies, Inc. ("WRT") for Integrated Solid Waste Management Service for commercial and resident accounts. During the beginning of the COVID-19 pandemic in 2020, Waste Resources Technologies failed to make required quarterly franchise payments in a timely manner; therefore, resulting in $141,874.14 in assessed penalty fees. WRT's representatives are requesting the Mayor and the City Council's approval for a full waiver of the penalty fees due to a loss in revenue during year 2020 COVID-19 pandemic.
II. RECOMMENDATION
Recommendation
REQUEST direction from the City Council regarding waiving penalty fees.
Body
III. ALTERNATIVES
TAKE another action deemed appropriate by the City Council.
IV. BACKGROUND
The City of Carson has a franchise agreement with Waste Resources Technologies, Inc. ("WRT") for Integrated Solid Waste Management Service for commercial and resident accounts. During the beginning of the COVID-19 pandemic in 2020, Waste Resources Technologies failed to make required quarterly franchise payments in a timely manner; therefore, resulting in assessed penalty fees.
According to the franchise agreement, WRT is to make quarterly franchise payments to the City, which are due within 30-days from the end of each calendar quarter. Upon the expiration of any 30-day period, a delinquent assessment of five percent (5%) per month shall be levied against any unpaid balance. Because WRT did not make timely franchise payments, $141,874.14 in penalty fees were assessed (Exhibit 1).
WRT's representatives are requesting the City Council to approve a full waiver of the penalty fees due to a loss in revenue during year 2020. WRT stated that because of the pandemic, accounts we...
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