CLEARLAKE – The sale of Timberline Disposal and negotiations for the sale of the city's business park will be on tonight's Clearlake City Council agenda.
The owner of Timberline Disposal, the Ratto Group of Companies, is in the process of selling the company, according to a staff report from City Administrator Dale Neiman to the council.
Timberline's prospective buyer is Clearlake Waste Solutions Inc., headed by President and Chief Executive Officer Dave Carroll of Carmel, who will own 45 percent of the company; John Shea of Pahrump, Nev., secretary and chief operating officer, who also will have a 45-percent share; and Vice President and General Manager Bruce McCracken of Hidden Valley, with a 10-percent share in the company.
McCracken is Timberline's current manager.
Carroll and Shea also share joint ownership in several other Southwestern companies, including waste disposal businesses.
The issue is going before the council for review and comment because of the franchise agreement between the city and Timberline.
Franchise agreements normally have a provision that requires the city to approve ownership transfers, Neiman's report states. However, the city's franchise agreement with Timberline contains no such provision.
"The rule in this situation is we do not have the authority to approve the transfer," Neiman wrote to the council.
Carroll, Shea and McCracken are scheduled to go before the council and answer any questions, Neiman reported.
They're also going to ask for a rate adjustment next month, Neiman reported, in order to meet requirements for retrofitting disposal trucks with improved air pollution control equipment.
In a June 18 letter to Neiman, the principals of the new company say they're requesting to take over Clearlake's disposal contract, as well as the county's franchise agreement and both franchises in the City of Ukiah.
A summary statement of the company's goals that accompanied that letter say Clearlake Waste Solutions plans to retain longtime employees, offer "continued low rates that help control illegal dumping," provide options for the city to become 100-percent compliant with the state's Air Resources Board, help neighborhood and community groups with recycling, build a green wood/waste facility to help control the costs of recycling that material and offer extended business hours.
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The council also is set to discuss entering into an agreement with McDonough Holland & Allen, a legal firm also used by the City of Lakeport, to provide legal services related to the city's negotiations with Katz Kirkpatrick, a Roseville firm interested in purchasing and developing the city's business park.
Neiman's report to the council states that the city is considering selling the 26-acre property, and is waiting for an appraisal. The appraisal should be completed in mid August, and will determine if the project is financially viable, Neiman reported.
The reason the city is seeking legal help on the matter from the firm and not City Attorney Tom Gibson is because of the firm's experience with redevelopment projects.
Specifically, the state requires that when a redevelopment agency provides financial assistance to a private project, prevailing wage rates must be paid, Neiman reported. That has raised construction costs by between 20 and 30 percent.
If prevailing wage becomes an issue in this case, Neiman said Katz Kirkpatrick won't purchase the property. He said McDonough Holland & Allen has expertise in that area, and that he's worked with them over the last 15 years.
Gerald J. Ramiza, the attorney who would work with the city, told Neiman in a letter that his current billing rate is $275 per hour.
Other items on Thursday's agenda:
Consent agenda: Adoption of an ordinance regulating underage drinking.
Consideration of modifying the plans for the Burns Valley sidewalk project.
Consideration of amending the 2006-07 budget.
A proposal that the city's Redevelopment Agency purchase property from the city and enter into a loan agreement for the purchase price.
The meeting will begin at 6 p.m. at Clearlake City Hall, 14050 Olympic Drive. A closed session meeting regarding employee negotiations will begin at 5:30 p.m.
E-mail Elizabeth Larson at
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