HomeMy WebLinkAboutItem No.35CITY OF LAKE ELSINORE
REPORT TO THE CITY COUNCIL
TO: Mayor and City Council
FROM: Ron Molendyk, City Manager
DATE: July 27, 1993
SUBJECT: Notice of Default, CR & R Inc.
BACKGROUND
The City Council of Lake Elsinore awarded an exclusive contract to
CR & R Inc. in June of 1992, to collect, recycle and dispose of all
refuse generated within the City. The contract also required that
CR & R perform citywide street sweeping services. It concluded
with a number of specific conditions and'performance guarantees.
Street sweeping services were undertaken by CR _& R near the end of
the year in preparation for the refuse recycling program:. CR & R
subcontracted with Appollo Sweeping to provide the service.
DISCUSSION
Appollo Sweeping began to sweep the city streets in late 1992 and
the recycling program began early in 1993. A- number of problems
were uncovered in both programs which were. difficult and time
consuming to resolve. The street sweeping. program was coordinated
with the trash collection, No Parking signs were installed, parking
violation notices were distributed and finally - citations were
issued to make the sweeping program more effective.
As the sweeping program progressed, many meetings were held with CR
& R officials to resolve all the street sweeping deficiencies. The
problems continued until finally the, City, assigned a person to
spend a whole day to document the street sweeping performance with
notes and pictures. A meeting was held on June 18 with CR & R and
Appollo officials to discuss the deficiencies and give CR & R 30
days to resolve all the problems.
On July 16, the Appollo sweeper was observed operating with the
same deficiencies as previously documented. At this point CR & R
was notified that they were in non - conformance with the
requirements of the contract and that the City was no longer
willing to accept the continued poor performance of their sub-
contractor, Appollo Sweeping.
Therefore, the City of Lake Elsinore is invoking the following
paragraph of the contract.
B.. NOTICE OF DEFAULT AND TERMINATION
"City shall give Grantee thirty '(30) days written notice of a
violation of any of the terms and conditions of this Agreement.
Grantee shall have that period of time to remedy or begin to remedy
the violation (if it cannot be fully corrected within the thirty
day period) and shall provide evidence of such remedy satisfactory
to the City Manager. In the event the violation has not been so
remedied, the City may terminate the Agreement effective
immediately or continue the franchise and impose liquidated
damages.,,
FISCAL IMPACT
None
AGENDA ITEi: / "'O._
PAGE L OF
Report to the City Council
January 26, 1993
Rage 2
RECOMMENDATION:
That Section XII. B. of the contract between the City of Lake
Elsinore and CR & R Inc. be invoked which calls for 30 days written
notice to CR.& R Inc. of a violation of the terms and conditions of
the Agreement. Further, if the violations are not remedied within
30 days,to the satisfaction of the City Manager, the City of Lake
Elsinore will immediately terminate the Agreement and impose
appropriate liquidated damages, ,if any.
Prepared By
Approved By:
Approved Fox
Agenda Listi
AGE14DA ITEM f lo. 3E /
PAGE 7 OF