HomeMy WebLinkAboutNov 26, 1980OFFICIAL PROCEEDINGS
SPECIAL CITY COUNCIL MEETING--COLUMBIA HEIGHTS CITY COUNCIL
NOVEMBER 26, 1980
RECEIVED
DEC- 8 1980
The meeting was called to order by Mayor Nawrocki at 11:O0 pm.
MANAGER City of
Columbia Heishts
Roll Call: Logacz, Norberg, Hentges, Nawrockl--present Heintz--absent
The purpose of this special meeting was to discuss the Garbage and Rubbish Contract.
Each Council member was given a packet containing materials formulated from data
gotten from various rubbish haulers. This data included Information as the specifics
of the services to be provided by individual haulers and price quotations for service.
Each member was also given comparison sheets stating monthly rates presently being paid
by fourteen suburbs of the metropolltan area.
The Mayor requested the present status of the contractor for the City of Columbia
Heights, Dick's Sanitary Service. He was advised by the City Manager that the garbage
pick up was one day behind the normal schedule. In the last two weeks the vendor has
verbally indicated that he would be terminating service at any time, so it has be~n
on a day to day basis that the continuation of service has been negotiated. It has
been the experience of the staff that the vendor appears anxious to get out of the
business. On numerous occasions in the recent past the City Manager has been contacted
by the vendor's creditors expressing their concern with his apparent inability to
meet his financial obligations. Foreclosures on some of the vendor's assets are a
consideration and Dick's Sanitary Service had indicated that if he is unable to sell
his business he may have to declare bankruptcy. Both his 1979 Federal Corporate Tax
return and his September 30th quarterly report have been reviewed by the City's
auditors. They suggest the business is on shakey ground.
It was stated that the Council still considers this vendores contract as being in
force and if at any time service is interrupted it would be considered a breach of
contract. The Mayor explained that the Council had asked for alternatives if service
were stopped but expects the present vendor to fulfill his contract with the City.
This position of the Council has been explained to the vendor by the City Manager on
those occasions when he has verbally informed the staff that service may be termi-
nated.
If Dick's Sanitary Service does default on the contract with the City the staff has
met with a number of other haulers who submitted their proposals for consideration.
Also explored as an alternative was for the City to supply its own hauling service
with rented and leased equipment.
MC5 Refuse, Inc. told the Council it was interested in buying Oickes Sanitary Service
and continuing service to the City of Columbia Heights with a one-year contractual
obligation.
RECESS: 11:45
RECONVENE: 12:30
Special Meeting-Columbia Heights City Council
November 26, 1980
page 2. (with corrections per City Attorney)
Whereas, Dick's Sanitary Service,Inc. financial condition is such that it cannot
meet its current financial obligations and cannot continue to provide service to
the residents of the City; and,
Whereas, the acquisition of Dick's by MCS would allow a financial structure that
will allow continuation of the contract between Dick's and the City for a short
period of time to allow continuity of service to the residents of the City; and,
Whereas, the City has explored competitive proposals from which to choose upon the
cessation of operations by Dick's due to its financial plight; and,
Whereas, the lowest cost alternative service to the residents of the proposals
received appears to be the agreement with Dick's Sanitary Servlce,lnc. it was
moved by Councilman Hentges, and seconded by Councilman Logacz to renegotiate
the contract between the parties to contain the following terms and conditions;
1. Dick's shall continue to provide service as provided in the contract of October
1980, except that for service provided after May 31, 1981, the monthly rate for the
two can per week residential service shall increase from $3.54 per month per home
to $3.95 per month per home. All other prices and services therein contained shall
remain the same.
2. The contract with Dick's commencing in 1980 shall terminate on November 30, 1981.
3. MCS shall acquire forthwith the stock of Dick's and shall be responsible for
and guarantee Dick's obligations under the contract commencing in 1980, as
modified by Council action.
4. Withing seven (7/ days after posting a performance bond to guarantee the
contract in a form approved by the City's Attorney and in an amount of not less
than fifty thousand dollars ($50,OOO.O0), the City will release to Dick's the
fifty thousand dollars ($50,000.00) cash bond posted in lieu of a performance
bond which is currently in the possession of the City.
5. No obligation on the part of Dick's under the contract commencing in 1980 shall
be released until such time as the stock of 0ick's is acquired by MCS.
Roll Call: Logacz, Norberg, Hentges--aye Nawrocki--nay
Motion by Logacz, second by Norberg to adjourn the meeting. , ///
Roll Call: Ail ayes ~~/~,
Adjournment: 12:45 am
BruCe G. Na~r~cki, Mayor
6-An~e Student, Co-~-ncil Secretary