File #: ORD 2016-36    Name: Emerald Transportation Franchise Agreement
Type: Ordinance Status: Passed
File created: 7/20/2016 In control: City Commission
On agenda: 9/8/2016 Final action: 9/8/2016
Title: AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A ONE YEAR EXTENSION TO THE FRANCHISE AGREEMENT WITH EMERALD TRANSPORTATION CORPORATION. (SECOND READING)(PUBLIC HEARING)
Indexes: Agreement, Ordinance, Towing Services
Attachments: 1. ORDINANCE 2016-36-Emerald Transportation, 2. AGREEMENT-Emerald Transportation-RFP No. 08-14-08-10
Related files: ORD 2017-035

AGENDA ITEM REPORT

TITLE:

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AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A ONE YEAR EXTENSION TO THE FRANCHISE AGREEMENT WITH EMERALD TRANSPORTATION CORPORATION. (SECOND READING)(PUBLIC HEARING)

 

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BACKGROUND:

This item was approved on First Reading at the August 11, 2016, Commission Meeting.

On October 1, 2008, the City entered into a five (5) year Franchise Agreement for City-wide wrecker towing service for the removal and storage of vehicles that are creating a traffic hazard, abandoned, disabled from a traffic crash, or for non-consensual removal of vehicles from public streets and areas within the City (“Agreement”).

DISCUSSION:

The Agreement provided for a five (5) year initial term with up to five (5) additional one (1) year terms.  The Agreement also provided for an annual franchise fee of $25,000.00, with an increase each year of a minimum of five percent (5%) from the previous year’s fee.  The initial five (5) year term expired in 2013, and the Agreement has been previously extended three (3) times pursuant to Paragraph 6 of the Agreement.  The City is desirous of extending the Agreement a fourth (4th) time, and Emerald Transportation Corporation has agreed to same.

RECOMMENDATION:

Staff recommends approval.

FISCAL IMPACT:

REVENUES:                                          $ 36,940

EXPENDITURES:                     $ 0

BUDGETED?                                          Yes (FY 2017)

NOTES:                                                               General Fund Account 01-V32390, Franchise Fee-Towing