5.5. SR 08-19-1996 - Laserfiche WebLink

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TRANSFER OF CITY OF ELK RIVER AGREEMENT FOR GARBAGE, REFUSE AND RECYCLING CONTRACT AGREEMENT made as of the date of its execution between the CITY OF ELK RIVER, MINNESOTA, a Minnesota municipal corporation ("City") and RANDY'S SANITATION, a Minnesota corporation ("Randy's"). WHEREAS, on November 1, 1993 the City entered into an AGREEMENT FOR GARBAGE, REFUSE AND RECYCLING COLLECTION ("Contract") with East Tonka Sanitation, Inc. ("East Tonka") for collection of garbage and recyclables in one of the City's three residential collection districts; and WHEREAS, the Contract expires on October 31, 1996; and WHEREAS, Minn. Stat. §§ 115A.46, subd. 5 and 115A.471, known as the "Public Entities" law requires that the waste collected under contract by the City be managed consistent with the Sherburne County Solid Waste Management Plan ("Plan"); and WHEREAS, in performing collection services under the Contract East Tonka has, consistent with the Plan, delivered the collected solid waste to the Elk River Refuse-Derived Fuel CRDF") plant owned and operated by NRG Energy, Inc., a subsidiary of Northern States Power; and WHEREAS, East Tonka and the two other solid waste haulers under contract with the City to perform residential collection services have contracts with Sherburne County to deliver solid waste to the RDF plant; and WltEREAS, on luly 9, 1996, East Tonka and Randy's executed a Letter of Intent for Randy's to purchase East Tonka and the Letter of Intent specified that sale and transfer of the contract would be contingent upon approval of the transfer by the City; and WHEREAS, the Contract, under Section IV.E.8., provides that the City must approve in writing any assignment or transfer of East Tonka's rights and obligations and that the City shall be entitled to, among other items, require that any proposed transferee shall have the qualifications and financial responsibility to fulfill the obligations under the Contract; and WHEREAS, on July 29, 1996, Randy's submitted information to the City to demonstrate its qualifications and financial responsibility to perform the Contract and requested approval by the City of the transfer of the Contract from East Tonka to Randy's; and WHEREAS, Randy's has an internal policy that prevents the release of company financial statements and proposes, in the alternative, to post a performance bond to the City in the amount of $100,000; and .WHEREAS, Randy's does not have a contract with Sherburne County that obligates Randy's to deliver waste to the RDF plant. KDJ 251557