Las Vegas City Commission Minutes, November 20, 1957 to December 2, 1959, lvc000011-569

held this 29th day of September, 1959 was called to order at the hour 9:00 A. M. with the following members present: Mayor Oran K. Gragson Acting City Manager Robert D. Heath Commissioner E. W. Fountain City Attorney Calvin M. Cory Commissioner Reed Whipple Absent: Commissioner Elwell Commissioner Sharp GARBAGE CONTRACT Mayor Gragson opened the meeting regarding the transfer of the franchise for the AGREEMENTS City Garbage Contract from the Southern Nevada Disposal Service, Inc. to the Silver State Disposal Company and asked Calvin Cory, City Attorney, to state to the gentlemen Transfer from from the Southern Nevada Disposal Service, Inc. the desires of the City Commission. Southern Nevada Disposal Service, Mr. Cory stated that as he understood it the Commission would probably have no Inc. to Silver objection to the proposed transfer provided certain safeguards would be included and State Disposal become a part of the assignment to which the assignee would agree and which would become Company a part of the assignment; namely, that prior to the assignment the Commission would be provided with a detailed statement of the equipment owned, and which would be Resolution owned, and maintained by the assignee. Adopted Tom Foley, Attorney representing the Southern Nevada Disposal Service, Inc., informed the Board that he did not want to represent this equipment to be free and clear as Max Chason was the legal owner until the indebtedness to him was paid off. Mr. Cory continued further the Commission would like, before this assignment was approved, to have a financial statement relative to the assets and liabilities of Silver State Disposal Company both prior to the assignment and also immediately after. Mr. Foley stated the assets of this new company would be identical with the old company, save and except the valuation of the franchise of the City of North Las Vegas. Mr. Hibbs, Accountant for the Southern Nevada Disposal Service, Inc., explained that the capital stock of the aforesaid company would be transferred to the Silver State Disposal Company and certain assets would be taken into Silver State Disposal Company. Commissioner Whipple advised that they were concerned with the transfer of the equipment and whether or not such equipment would be adequate to take care of the garbage contract for the City of Las Vegas and if such equipment would be assigned solely to the City of Las Vegas and not to the County or North Las Vegas, in the event it would become necessary for the City to take over and keep the service continuing. V. Gray Gubler, Attorney representing Max Chason, stated there would be no discontinuing of service as the agreement with Mr. Chason provided that he would take over if a default was made. Mr. Gubler added his client had no objection to the transfer subject to the condition that Max Chason would be shown as legal owner of this equipment until the indebtedness to him was satisfied. Commissioner Fountain asked if there was ample equipment at this time to transfer this equipment and give adequate service to the City of Las Vegas. Mr. Foley replied they deemed it more than adequate and that two new trucks were being acquired next Tuesday; further this equipment would be owned by the Silver State Disposal Company, which company would be responsible for service in the City of Las Vegas. Mr. Cory stated there was one other condition which he wished to mention regarding the right of the City to disallow or disregard for rate-making purposes any increased valuations resulting from said assignment or any expenditures which the City might determine to be excessive or unnecessary. Mr. Foley stated he felt the City already had that right as the Silver State Disposal Company would be operating under the same contract but they were willing to accept this condition. Mr. Hibbs stated he believed the rate setting was a power the Commission had under ordinance however they might arrive at their conclusions for the rates. Mr. Cory stated this was true and only the Commission could fix the rates; however, it was the feeling this should be spelled out as there might be new stockholders who were unaware of this fact. Commissioner Fountain said there should also be provision made for a certified audit at least once a year, said audit to be certified by the firm making the audit. Mr. Foley stated Clarence Hibbs of the Certified Public Accounting firm of Conway, Moe and Hibbs, would actually be doing the work and setting up the books and making recommendations; therefore, this firm could not technically certify an audit performed by them. Mr. Hibbs stated the procedure he contemplated, if the transfer was granted and they were able to organize these companies, would entail considerable revamping of books and his firm would make these determinations. He stated further that they hoped to see the day when the company would handle its own firm accounting and they would then take the position of independent auditors of the compary, however, this could not happen for about a year after this transfer. Commissioner Whipple was of the opinion this could be accomplished within a year. Mayor Gragson stated that what the City wanted was for Mr. Hibbs' firm to state that to the best of their knowledge and ability that such an audit was true and correct. Mr. Gubler requested, as representative of the encumbrance holder, that before the assignment was finalized by the approval of the City Commission, he would like to see these documents to protect his client, Max Chason. 9-29-59