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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Date: May 19, 2003
ORIGINAL
Subject: Resolution authorizing the
Second Amendment to the Waste
Disposal Agreement between the
County of San Bernardino and the City
of San Bernardino
From: Lynn Merrill, Director
Dept: Public Services
Meeting Date: June 2, 2003
Synopsis of Previous Council Action
Reso 97-371
2002-79
December 15, 1997 - WDA Agreement
March 4, 2002 - First Amendment to Agreement
Recommended Motion:
Adopt Resolution
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Signature
Contact person: Lynn Merrill, Director
Phone: 5140
Supporting data attached:
Ward:
All
FUNDING REQUIREMENTS:
Amount:
Potential additional revenue
estimated at $41,700 for
Refuse Fund
Source:
o
Finance:
Council Notes:
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See Resolution 2003-306
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Agenda Item No. Ji.p
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
Subject:
Resolution authorizing the Second Amendment to the Waste Disposal Agreement
between the County of San Bernardino and the City of San Bernardino
Background:
On December 15, 1997 the Mayor and Common Council of the City of San Bernardino
adopted Resolution 97-371 authorizing the execution of the Waste Disposal Agreement
between the County of San Bernardino and the City of San Bernardino. On March 17,
2001, the County replaced Norcal Waste Systems with Burrtec Waste Industries as the
operator of the landfill system. Burrtec Waste Industries also provided waste hauling
services to various cities within the County, as well as operating two transfer stations
within the region.
On March 4, 2002, the Mayor and Council adopted the First Amendment to the
Agreement which provided for an "in-county" per ton transfer rate for wastes that are
delivered by collection trucks to a transfer station. (see Attachment #1 First
Amendment Staff Report, for detailed background) The Amendment resulted in
approximately $145,700 of additional revenues to the City of San Bernardino Refuse
Enterprise fund in the first year.
Burrtec Waste Industries, Inc. has stated that there is an additional 75,000 tons of in-
County unincorporated solid waste available and has expressed a desire to increase the
maximum annual tonnage allowed by Article 19 from 300,000 to 375,000 tons. The
Solid Waste Management Division (SWMD) staff has reviewed Burrtec's request and
has determined that the addition of 75,000 tons/year will have no significant impact on
available space at the Mid-Valley Sanitary Landfill. Adoption of the proposed
amendment may result in the City of San Bernardino receiving an estimated additional
$41,700 in revenues in FY03/04 and in subsequent fiscal years.
Financial Impact:
The actual amount of revenues received each year is based on actual tonnage
delivered. It is anticipated that this increase in allowable tonnage will result in a total
maximum revenue of $208,700 each year from the County.
Recommendation:
Adopt resolution.
Attachment 1
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
Subject:
Resolution authorizing the First Amendment to the Waste Disposal Agreement between
the County of San Bernardino and the City of San Bernardino
Background:
On December 15, 1997 the Mayor and Common Council of the City of San Bernardino
adopted Resolution 97-371 executing the Waste Disposal Agreement between the
County of San Bernardino and the City of San Bernardino. The purpose of the original
agreement was to provide for a lower per ton waste tipping fee offered by the County to
the City in exchange for a fifteen-year commitment by the City to use the County Waste
Disposal System during this time. As part of the agreement, the County agreed to
indemnify the City for any environmental liabilities that may result for the City's past use
of the County's system. This agreement has resulted in annual savings of
approximately $500,000 per year for waste disposal services when compared to the
rate charged other non-WDA customers of the County system.
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At the time that the City entered into the Waste Disposal Agreement, the County landfill
system was under contract management by Norcal Waste Systems. On March 17,2001
the County replaced Norcal Waste Systems with a new contractor, Burrtec Waste
Industries as the operator of the landfill system. Burrtec Waste Industries also provides
waste hauling services to various cities within the County, as well as operates two
transfer stations within the region.
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During the last four years, Burrtec has exported the waste generated within Montclair,
Rancho Cucamonga and Upland as well as unincorporated county areas out of San
Bernardino County to Orange County landfills under a sep5lrate waste disposal
agreement between Burrtec and the County of Orange.. At the time that San
Bernardino County awarded the landfill operations contract to Burrtec, the company
included in their proposal the offer to bring this exported waste back into the San
Bernardino County system, allowing additional revenues to be generated to the County.
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The original WDA agreement did not provide for an "in-county" per ton transfer rate for
wastes that are delivered by collection trucks to a transfer station. Wastes handled
through a transfer station are unloaded by the route collection vehicle and consolidated
into a larger truck and trailer transfer vehicle for long-distance hauling to a landfill.
Burrtec has proposed to transfer up to 300,000 tons per year of the currently exported
wastes generated within Upland, Rancho Cucamonga and Montclair through either of
the Burrtec owned- and operated-transfer stations. The West Valley Transfer station is
located in Fontana and the Robert Nelson Transfer Station is located in Riverside
County south of Rialto. In exchange for this return of exported waste to the San
Bernardino County system, Burrtec is requesting authorization of a $20.50 per ton
transfer rate. It is estimated that, after expenses. this additional tonnage would
generate up to $2.0 million in additional revenues for the County for use in managing
the waste disposal system.
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Because the proposed transfer rate is lower than the disposal rate offered by the
County to the WDA cities, an amendment modifying the Waste Disposal Agreement to
incorporate the proposed transfer rate is required. The County has proposed to provide
a revenue sharing opportunity to each of the WDA cities as part of this amendment.
The County is proposing to retain half of the estimated $2.0 million while providing one
half to the cities or $1.0 million, to be further divided into two equal amounts. One
portion of the city revenue ($500,000) would then be divided equally among the fifteen
WDA cities, while the second equal portion ($500,000) would be allocated to each city
based on that city's population as reported by the State of California Department of
Finance each May.
The County provided an example, using a net annual revenue of $1.0 million as an
example. In this example, $500,000 would be divided equally between the fifteen cities,
resulting in a payment of $33,333.00 to the City of San Bernardino of this portion. The
second $500,000 would be allocated based on population of each WDA city. This
would result in a payment of $112,388, based on a DoF population estimate of 190,200
in the City. The total payment under this example would be $145,700. This additional
revenue to the City could be used to off-set future tipping fee increases, thus allowing
the City to further stabilize refuse rates to our customers. Actual revenues paid to the
City would be based on the actual tonnage of transferred wastes delivered by Burrtec to
the County landfills.
Other examples of rate sharing were examined during a January 10, 2002 meeting of
the WDA cities, held in Loma Linda. These included: division of the net revenue equally
between all 15 WDA cities, division between all cities based on population, division
based on tons disposed or division based on tons diverted from landfills.
While the majority of the WDA city representatives present preferred to equally allocate
the $1.0 million estimated annual revenues between all the cities, resulting in an equal
payment of $66,667.00 to each, both the cities of Fontana and San Bernardino raised
issues relating to equity with this method. Using a formula based on disposal tonnage,
the City of San Bernardino would receive an estimated $251,488.00 per year. With a
formula based on diverted tonnage, the City of San Bernardino would receive
$248,727.00 per year. With a formula based on population, the City of San Bernardino
would receive $224,776.00 per year. During the discussions that resulted, it was
concluded that using either a formula based on diverted or disposed tonnage would be
difficult to validate and establish, due to the reporting methods available at the present
and the uncertainty about the waste disposal reporting system's accuracy and validity.
As a result of discussions between the representatives, a compromise formula that used
both equal allocation of the net revenues between all cities and allocation based on
population was proposed, and was determined to be acceptable by all WDA cities
represented at that meeting. When compared to the amounts allocated to the other
fourteen cities, this compromise allocates the largest portion of the total revenues,
estimated at $145,700 per year to the City of San Bernardino.
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Under the County's contract with Burrtec, the County must give a positive acceptance to
the Burrtec offer to return this exported waste to the County's system no later than
March 5, 2002. Under the WDA agreement, all WDA cities must adopt the amendment
in order for the amendment to take affect. If the City of San Bernardino elects not to
enact the WDA amendment, the additional revenue potential would be lost to both the
County and the other fourteen WDA cities.
Financial Impact:
Adoption of the proposed amendment may result in approximately $145,700 per year of
additional revenues to the City of San Bernardino Refuse Enterprise fund. Over the
remaining 6.5 years of the County's agreement with Burrtec, this could result in total
revenues of $947, 1 00 to the City. There is no cost to the City to receive these
revenues, and no restrictions on the use of these revenues.
Failure to adopt this resolution would result in loss of this revenue to the City of San
Bernardino, as well as the loss of additional revenues to the County of San Bernardino
and the cities of Apple Valley, Barstow, Big Bear Lake, Colton, Fontana, Grand Terrace,
Hesperia, Highland, Loma Linda, Rialto, Twenty-nine Palms, Victorville, Yucca Valley
and Yucaipa.
Recommendation:
Adopt resolution.
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RESOLUTION NO.
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE SECOND AMENDMENT TO THE WASTE
DISPOSAL AGREEMENT BETWEEN THE COUNTY OF SAN BERNARDINO AND
THE CITY OF SAN BERNARDINO
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor is hereby authorized and directed to execute, on
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behalf of said City, the Second Amendment to the Waste Disposal Agreement
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between the County of San Bernardino and the City of San Bernardino, a copy of
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which is attached hereto, marked Exhibit "A", and incorporated herein by reference as
fully as though set forth at length.
SECTION 2. The authorization to execute the above referenced agreement is
rescinded if the parties to the agreement fail to execute it within one hundred-twenty
(120) days of the passage of this resolution.
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May 27, 2003
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE SECOND AMENDMENT TO THE WASTE
DISPOSAL AGREEMENT BETWEEN THE COUNTY OF SAN BERNARDINO AND
THE CITY OF SAN BERNARDINO
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
Mayor and Common Council of the City of San Bernardino at a
6 meeting thereof, held on the
7 following vote, to wit:
day of
, 2003, by the
8 Council Members:
AYES
NAYS
ABSTAIN ABSENT
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ESTRADA
LONGVILLE
MCGINNIS
DERRY
SUAREZ
ANDERSON
MCCAMMACK
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Rachel G. Clark, City Clerk
The foregoing resolution is hereby approved this
,2003.
day of
Judith Valles, Mayor
City of San Bernardino
Approved as to
Form and legal content:
JAMES F. PENMAN,
City Attorney
By:L f.f~
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May 19, 2003
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AMENDMENT No.2
TO
WASTE DISPOSAL AGREEMENT
On December 16, 1997, the City of San Bernardino ("City") and the
County of San Bernardino ("County") entered into a Waste Disposal Agreement
(the "WDA") , which is hereby amended as of this 10th day of June, 2003
("Amendment No.2").
Recitals
A. On March 27, 2001 the County entered into a Solid Waste Operations
Contract ("Operations Contract") with Burrtec Waste Industries, Inc.
("Contractor"). During each fiscal year during the term of the Operations
Contract, the Contractor has the right and the obligation to dispose of at least
250,000 but not more than 300,000 tons of solid waste to the Disposal System.
In Amendment No.4 to the Operations Contract, entered into on March 5, 2002
the amount of Article 19 Solid Waste to be delivered for disposal in the Disposal
System from March 19, 2002 to and through June 30, 2002 was at least 20,830
but not more than 150,000 tons of solid waste. In Amendment NO.9 to the
Operations Contract, to be entered into concurrently with this Amendment, the
amount of Article 19 Solid Waste to be delivered for disposal in the Disposal
System for the month of June 2003 is to be at least 20,834 but not more than
31,250 tons of solid waste.
B. In Amendment No. 1 (i) City agreed to waive its right under the provisions
of Section 3.5(A) of the WDA with respect to the Operations Contract, including
the right of the County to accept Article 19 Solid Waste on payment of Article 19
Disposal Fee without being required to offer to City to adjust the current or future
Contract Rate to equal the Article 19 Disposal Fee; (ii) County agreed to waive
any right it may have to accept Article 19 Solid Waste except as provided in
Amendment No.1, and (iii) the County and City agreed on the method of
calculating and sharing with City its share from the receipt of the Article 19
Disposal Fee, as described in Amendment NO.1.
C. The Contractor under the Operations Contract has stated that it has
control over 75,000 additional tons per year of solid waste that satisfies the
definition of Article 19 Solid Waste within the meaning of the Operations Contract
and that it desires to bring such waste to the Disposal System for disposal as
Article 19 Solid Waste.
D. The County and City agree that it is in the interests of both parties to allow
the Contract to bring the additional 75,000 tons of Article 19 Solid Waste for
disposal in the Disposal System, under the same terms and conditions as set out
in Amendment No. 1 to the WDA. Thus, the purpose of this Amendment No.2 to
the WDA is to increase the maximum amount of Article 19 Solid Waste that is
8303v1 024537/004317 AGMT
acceptable for disposal in the Disposal System from 300,000 tons per Contract
Year to 375,000 per Contract Year.
NOW THEREFORE, in consideration of the forgoing recitals and the
following covenants and promises the parties agree as follows:
1. Amendment to Section 1 of Amendment No. 1 to the WDA Regardina
Limited Waiver of Citv's Riahts Under WDA and Right of County to Accept Article
19 Solid Waste. The parties agree that Section 1 of Amendment No. 1 shall be
revised by adding the following:
Notwithstanding the forgoing, commencing on the effective date of Amendment
No.2, and for the term of the Operations Contract (including any extensions of
term currently contained in the Operations Contract), the County may accept
Article 19 Solid Waste from Contractor for disposal in the Disposal System in the
amount of at least 250,000 but not more than 375,000 tons of solid waste and for
the month of June 2003, in the amount of at least 20,834 but not more than
31,250 tons of solid waste.
All other terms and conditions of Section 1 of Amendment No. 1 shall remain in
full force and effect and are not amended by the provisions of this Amendment
No.2.
2. Effective Date. This Amendment shall. be effective if and only when all
cities listed on Exhibit "A" to Amendment No. 1 have adopted and executed a
counterpart of this Amendment No. 2 and such amendment has been adopted
and executed by the County. In all events, the conditions in the forgoing
sentence necessary for this Amendment No. 2 to be effective shall occur on or
before August 1, 2003, otherwise this Amendment No. 2 shall be null and void
and without any effect whatsoever.
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3. No other amendments. Except as modified in this Amendment NO.2 (or in
any prior amendment) all other terms and conditions of the WDA, including
without limit those contained in Amendment No.1, shall remain in full force and
effect.
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8303v1 024537/004317 AGMT
IN WITNESS WHEREOF, the parties hereto have executed this
agreement on the day and year set forth below.
COUNTY OF SAN BERNARDINO CITY
Bv:
Dennis Hansberger, Chairman, Board of Supervisors Title:
Date:
Date:
SIGNED AND CERTIFIED THAT
A COPY OF THIS DOCUMENT HAS
BEEN DELIVERED TO THE
CHAIRMAN OF THE BOARD
RENEE BASTIAN
Clerk of the Board of Supervisors
By:
Date:
Approved as to form:
ALAN K. MARKS, County Counsel
BY:
Deputy
Date:
8303v1 024537/004317 AGMT
AMENDMENT No.2
EXHIBIT "A"
LIST OF WASTE DISPOSAL AGREEMENT CITIES AND TOWNS
Town of Apple Valley
City of Barstow
City of Big Bear Lake
City of Colton
City of Fontana
City of Grand Terrace
City of Hesperia
City of Highland
City of Lorna Linda
City of Rialto
City of San Bernardino
City of Twentynine Palms
City of Victorville
City of Yucaipa
Town of Yucca Valley
8303v1 024537/004317 AGMT
SOLID WASTE MANAGEMENT DIVISION
ARTICLE 19 WASTE GATE FEE CALCULATION
EFFECTIVE JULY 1, 2003
Fee Segment
Burrtec
BOE (CIWMB)
EHS (LEA)
Fontana Host Fee
Other Fees
Closure
Expansion
To WDA Cities
To SWMD
Totals
FY 2002/03
Fee
$6.60
$1.40
$0.78
$2.14
$0.00
$0.34
$2.12
$3.635
$3.635
$20.65
Percent
Change
-1.50%
fixed
fixed
3.70%
3.70%
Amount of
Change
-$0.10
$0.00
$0.00
$0.12
$0.00
$0.01
$0.08
FY 2003/04
Fee
$6.50 (1)
$1.40 (2)
$0.78
$2.26 (3)
$0.00
$0.35
$2.20
$3.885
$3.885
$21 .26 .
(1) original fee times cola per Operations Contract with Burrtec
(2) set by BOE, effective July 2002
(3) original fee times cola for Waste Delivery Agreements
Calculation of Article 19 Gate Fee:
WDA actual increase
WDA 2003 rate
Percent Increase
Article 19 Gate Fee 2002
Percent Increase
Article 19 Gate Fee IncreaSE
Article 19 Gate Fee 2002
Gate Fee Increase
Article 19 Gate Fee 2003
$1.10
$29.74
3.70%
$20.50
3.70%
$0.76
$20.50
$0.76
$21.26
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Waste Disposal Agreement Amendment
May 8, 2003
Page 2 of2
After your city/town council has met and signed the agreements, please return both
original signature copies to our office no later than June 1, 2003.
If you have questions regarding this amendment, please contact me at (909) 386-8720.
Sincerely,
~tn~
Donald M. Casal man
Financial Manager
DMC:js
Enclosures
cc: John Goss, Assistant County Administrator
Ken A. Miller, Director of Public Works
Peter Wulfman, Solid Waste Division Manager
V:\DonIWDA Amd 2&3 05-08-03.doc
OFFICE OF THE CITY CLERK
RACHEL G. CLARK, C.M.C. . CITY CLERK
300 North "0" Street. San Bernardino. CA 92418-0001
909.384.5002. Fax: 909.384.5158
www.ci.san-bernardino.ca.us
0;\'
June 12,2003
Donald M. Casalman
Department of Public Works
Solid Waste Management Division
222 West Hospitality Lane, Second Floor
San Bernardino, CA 92415-0017
Dear Mr. Casalman,
At the Mayor and Common Council meeting of June 2, 2003, the City of San Bernardino
adopted Resolution 2003-117 - Resolution authorizing the second amendment to the waste
disposal agreement between the County of San Bernardino and the City of San Bernardino.
Enclosed are two (2) original agreements. Please obtain signatures in the appropriate location
and return one original agreement to the City Clerk's Office, Attn: Michelle Taylor, P.O. Box
1318, San Bernardino, CA 92402, as soon as possible.
Please be advised that the resolution and agreement will be null and void if not executed
within 120 days, or by September 30, 2003.
If you have any questions, please do not hesitate to contact me at (909)384-5002.
Sincerely,
,IN i(J~[ ic<- "-.frll).
Michelle Taylor '
Senior Secretary
/:1
(l<...
Enclosure
CITY m' SAN BERNARDINO
ADOPTED SHARED VALUES: Integrity. Accountability. Respect for Human Dignity. Honesty
OFFICE OF THE CITY CLERK
RACHEL G. CLARK, C.M.C. - CITY CLERK
300 North "D" Street. San Bernardino' CA 92418-0001
909.384.5002' Fax: 909.384.5158
www.ctsan-bernardino.ca.lis
bM
September 23, 2003
Mr. Donald M. Casalman
Department of Public Works
Solid Waste Management Division
222 West Hospitality Lane, Second Floor
San Bernardino, CA 92415-0017
Dear Mr. Casalman,
At the Mayor and Common Council meeting of June 2, 2003, the City of San Bernardino
adopted Resolution 2003-117 - Resolution authorizing the second amendment to the waste
disposal agreement between the County of San Bernardino and the City of San Bernardino.
On June 12,2003, two original agreements were sent to you for signatures. If the agreements
have been signed, please return one executed agreement to the City Clerk's Office, Altn:
Michelle Taylor, P.O. Box 1318, San Bernardino, CA 92402.
Please be advised that the resolution and agreement will be null and void if not executed
and returned to the City Clerk's Office by September 30, 2003.
If you have any questions, please do not hesitate to contact me at (909) 384-5002.
Thank you,
.
(
I l
- A '\ ("C-,--
u
.J / . ( :"
let I;.,' ! C ':.
Michelle Taylor
Senior Secretary
CITY OF SAN BERNARDINO
. _~~___L~1....'''. _ _ n__~_~. t:__ TL.____ r.:__:,__ ~ 11_____<__
,
** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): Ie - 2-03, Item #
Vote: Ayes t.. " Nays.k}-
it.,
Resolution #
Abstain e-
'2 rD:'-\\'1
Absent 0-
Change to motion to amend original documents:
Reso. # On Attachments: ,/
Contract term: .-
Null/Void After: \26 DI'-( ':, J "(-30"03
.
Note on Resolution of Attachment stored separately: ==---
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY
By: -
Date of ClerklCDC Signature:
i..oA-O's
Co -11- 0 ?>
10 - ,oS -0 ?,
Reso. Log Updated: ,/
Seal Impressed: /
~-
Date Sent to Mayor:
Date of Mayor's Signature:
Date Memo/Letter Sent for Signature:
6QJ)fr'y Reminder Letter Sent on 30!Jl-dltY:
90 Day Reminder Letter Sent on 45th day:
&-l:;) -0:::'
a ~C' .."
\.- c...<y t...J -~':::>
See Attached:-v" Date Returned:
See Attached: ~
See Attached:
Request for Council Action & Staff Report Attached: Yes ./ No By
Updated Prior Resolutions (Other Than Below): Yes No -.L By
Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634): Yes No ./ By
Updated CDC Personnel Folders (5557): Yes No~ By
Updated Traffic Folders (3985, 8234, 655, 92-389): Yes NoL By
Copies Distributed to:
City Attorney ,/
Parks & Rec.
Code Compliance Dev. Services
Police Public Services /' Water
EDA
Finance
MIS
Others:
Notes:
~
'yt
/Ct:<s,c 1L. '2 (Q3 . ,,2(;(:.,
BEFORE FILING, REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc.)
Ready to File: _
Date:
Revised 0 I /12/0 I