2003-04-14 Regular Meeting, Public Hearing and Workshop Meeting

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e e REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Appropriation Requested By: S. Gillett Source of Funds: Department: Public Works Account Number: Report: X Resolution: Ordinance: Amount Budgeted: Exhibits: Letter from 8FI Amount Requested: Exhibits: Consent to Partial Assignment Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION The City of La Porte has a contract with BFI to provide collection and disposal of commercial solid waste, utilizing the container system, dated November 1,2000. The Contract is for five (5) years, expiring October 31, 2005. The Contract requires BFI to provide billing and collection of all accounts receivable. BFI pays the City 4% of gross receipts for the use of City streets and Right-of-Ways in the performance of the Contract. BFl's parent company, Allied, has requested that the City approve a consent to a partial assignment of the Contract. Specifically, Allied has created a wholly-owned special purpose entity, Allied Receivables Funding, Inc., to hold assets (accounts receivable and collections generated by various Allied subsidiaries) for use as collateral for loans. The funding method, called "securitization", requires the City of La Porte to consent for assignment of the right to receive payments. No other right or obligation under the existing contract is affected. Under Section 14.00 of the Contract, no assignment of the Contract or any other right accruing under this Contract shall be made, in whole or in part, without the express written COnsent of the City. Because the City Council approved the original Contract, the approval of assignment falls under the authority ofthe City Council. Action Required bv Council: Authorize the City Manager to execute the Consent to Partial Assignment of the Collection and Disposal of Solid Waste Contract between the City of La Porte and BFt Waste Services of Texas, LP. ~ - JJ ~O.3 Date