AGENDA ITEM REPORT
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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