07-17-1972 - Laserfiche WebLink

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RECESS all Councilmen present. At 11:30 P.M. a recess was declared. The meeting reconvened at 11:40 P.Mo with GREAT WESTERN RECLAMATION, INC. (Continued) to retain present local management. Councilman Villa stated that he was in favor of the transfer of stock, dependent on the contract Councilman ]Evans stated that the primary issues are whether or not SCA would have been interested in this particular company if the contract had not been extended and if the rates had not been raised; that he agreed with Mr. Moore that there was not enough publicity for the hearing; and that he had hoped more people would be concerned about this matter. Councilman Yamamoto stated he had a possible conflict of interest in this matter due to the fact that an Associate of his had written insurance coverage for the firm from which he had received a remuneration based on his referral of the business to the Associate. Councilman Yamamoto left the Chambers, and after deliberation it was deterfnined by a 3 - 3 vote of the Council that there was no conflict of interest. Councilman Yamamoto returned. Councilman Villa stated that he is employed by Operation SER; that SER has an agreement with Great Western Reclamation Company for an on-the- job training program provided in an agreement between the Department of Labor and SE1{; that his salary is fixed and he receives no additional compensation in connection with the Great Western agreement. The City Attorney stated he saw no conflict of interest. Council concurred. Councilman Patterson stated that he has never represented Great Western Reclamation or its management but that he represented an employee of Great Western in a personal injury matter that has been resolved; and that he earned a fee and charged the going rate. The City Attorney ruled there was no conflict of interest in the present matter. Councilman Herrin stated that the contract extension and rate increase were granted to Great Western, without the necessity of providing a profit and loss statement, based on their claim of financial hardship; that, in his opinion, it would be a misuse of public trust to give these considerations to Great Western and in so doing given them tremendous saleability value in the proposed merger; and that if there were discussions for transfer of stock prior to the time Council gave consideration to a rate increase and extension of the contract, it would be highly unethical to approve the stock transfer at this time° CITY COUNCIL MINUTES -Z96- JULY 17, 1972