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Exh 8DAGENDA ITEM #8D MAY 27, 2003 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Request from BFI for Partial Assignment SUBMITTED BY: Jim Hanson, ' DATE: May 13, 2003 BACKGROUND: BFI, the City's waste hauler, has submitted a request to the City to sign an amendment to the waste hauling contract that allows payments of monthly waste hauling chazges be made to Allied Receivables Funding of Delaware which is a subsidiary of BFI's pazent company; Allied Waste Industries Inc. BFI is not assigning their contract but merely their rights to receive payments under the contract from the City. BFI will remain liable for all. obligations under the original contract. The request from BFI along with an explanation is attached for your review. Also attached is a copy of page 35 from the City's present waste contract, which includes Section 18; Assignment and Change of Control. BUDGET: There will be no budget impacts resulting from this change. RECOMMENDATION: That the Mayor be authorized to execute this contract amendment on behalf of the City of Atlantic Beach. ATTACHMENT: (1) Request from Allied Waste Industries Inc with proposed amendment signed by BFI on 5/6/03 (2) Page 35 from City of Atlantic Beach contract for waste services dated 3/8/01 AGENDA ITEM #8D MAY 27, 2003 INDUSTRIES, INC. During 2002, Allied began evaluating securitization as a potential capital market transaction. A securitization is a common form of fmancing in which certain assets are separated out and used as collateral for a loan. Separating the assets is critical in a securitization since this allows the lending institution to track the assets more clearly and to analyze the performance of the assets more precisely. Allied decided to move forward with securitization in late 2002 and selected Wachovia as its lender. In early 2003, Allied created awholly-owned, special purpose entity, Allied Receivables Funding Incorporated, to hold the assets for the securitization. This new entity and the securitization will be consolidated on Allied's financial statements. The assets for the securitization that need to be separated will be accounts receivable and collections generated by various Allied subsidiaries. We are therefore requesting consents for assignment of the right to receive payments. ~~,. t FUN-DIN G INC. AGENDA ITEM #8D MAY 27, 2003 City of Atlantic Beach to Partial Assignment Of the Residential and Commercial Collection and Disposal of Solid Waste, Recycling and Yard Trash City of Atlantic Beach, Florida, and Browning-Ferris Industries of Florida, a Delaware Corporation, are parties to a Residential and Commercial Collection and Disposal of Solid Waste, Recycling and Yard Waste, dated as of February 1, 2001 (the "Agreement"). A copy of the Agreement is attached hereto as Exhibit A. The undersigned does hereby consent to the assignment by Browning-Ferris Industries of Florida Inc., to Allied Receivables Funding Incorporated, a Delaware corporation ("ARFI"), and ARFI's subsequent assignment to Wachovia Bank, National Association, ofBrowning-Ferris Industries of Florida Inc. right to receive payments under the Agreement from City of Atlantic Beach, Florida. The consent by the undersigned to the assignment by Browning-Ferris Industries of Florida Inc. of its right to receive payments under the Agreement is conditioned upon Browning-Ferris Industries of Florida Inc. remaining, and Browning-Ferris Industries of Florida Inc. hereby agrees to remain, liable for its obligations under the Agreement. The assignment granted hereby shall be effective from and after the date on which this consent is duly executed by the undersigned. City of Atlantic Beach, Florida By: Name: Title: Date: , 2003 Browning-Ferris Industries of Florida Inc. By: Name: s-=-z , LL-~ ~.c,~~ ~~ --, Title: Gt.~ ,~.~-/ -~j,~.,,~~~~- Date: S- ~ --- , 2003 NV~'IiG4R7 7 AGENDA ITEM #8D MAY 27, 2003 SECTION 18 - ASSIGNMENT AND CHANGE OF CONTROL Contractor shall make no assignment of its rights or obligations under the Contract without first obtaining the written consent of the City, which may be granted or withheld in its sole discretion. In the event Contractor is a corporation, partnership or legal entity, there shall be no change in the direct or indirect legal or factual control of such entity without first obtaining the written consent of the City. A change of legal control includes, but is not .limited to, a transfer of ownership of over 20% of the Contractor or any person or entity- owning a 20a or greater interest, direct or indirect, in the Contractor. SECTION 19 - SEPARABILITY If any article or section of this agreement or of any supplements or riders thereto, should be held invalid by operation of law or by any tribunal of competent jurisdiction, or if compliance with or enforcement of any article or section should be restrained by such tribunal pending a final determination as to its validity,. the .remainder of this agreement and of any supplements or riders thereto, or the application of such article or section to persons or circumstances other than those to which it has been held invalid or as to which compliance with or enforcement of -has been restrained, shall not be affected thereby. IN WITNESS WHEREOF, the City of Atlantic Beach and g~pt,~-~tt~U- FG--2215 l_~~dSTi2-~5. /NC. have caused this contract to be executed the day and year hereinafter. ATTES ity Ma; 'ger Date:_ ~a~~/U/ Date 03- 0~ 01 35