March 16, 2001

William Dobert

Chief Financial Officer

Bay Counties Waste Services

P.O. Box 1048

Pleasanton CA 94566

Subject:  Proposed Annually Renewable Franchise Agreement

Dear Mr. Dobert:

This letter is in response to the recent proposal by Bay Counties Waste Services to convert the refuse collection franchise contract to an annually renewable franchise agreement.  Following careful review and analysis, the City’s Finance and Public Works departments have recommended to me that your proposal be declined.  I concur in that recommendation.  I do not believe that the proposed change would be in the City’s best interest.

Thank you for taking time to present your views on this matter.  In no way should my response to this proposal be construed as indicating a lack of satisfaction with the performance of Bay Counties Waste Services.  The City enjoys a good working relationship with your company and remains interested in discussing with you any and all ideas for improving the franchise agreement in ways that benefit the community.

Very truly yours,

Robert LaSala

City Manager

cc:     File SW 20.1

         Marvin Rose, Director of Public Works