Las Vegas City Commission Minutes, November 20, 1957 to December 2, 1959, lvc000011-570

Mr. Foley asked the Commission if they could, at this time, make the motion to approve this transfer subject to the submission of the aforementioned information and finding the same adequate, as it was the end of their fiscal year on September 30, 1959, and they would like to get the income tax advantage. Mayor Gragson asked City Attorney Cory if he felt this should be approved subject to all the requirements the Commission felt necessary in order to make the transfer. Mr. Cory replied that he thought it would be better to take action now subject to such condition and if upon receipt of the requested information, the Commission determined the assignee could not adequately provide service said approval would be rescinded. Merlin Jones, Accountant for the City, requested a written explanation of the functions and operations of the related companies. Mr. Jones stated there were at least four such companies; (1) Silver State Disposal Company which would operate in the City of Las Vegas, (2) Disposal Transportation, Inc., which would operate in the City of North Las Vegas, (3) Clark Sanitation, Inc., which would operate in the County of Clark, and (4) Disposal Investments which would own the land and buildings and operate a repair shop. He requested information as to what would be the function of each company and what would be the transactions between these companies and the Silver State Disposal Company; that is, the renting of office space, renting of truck parking spaces and any maintenance of trucks. Mr. Hibbs stated they could get this information and further that these rentals back and forth would be discontinued. Mr. Foley said this information could be supplied in a separate narrative. Commissioner Fountain moved the following resolution be adopted and order made: RESOLUTION WHEREAS, the Board of Commissioners of the City of Las Vegas, Nevada, has been requested to approve the proposed transfer and assignment of that certain agreement entered into between the said City and Southern Nevada Disposal Service, Inc., a Nevada Corporation, dated the 4th day of January, 1956, together with that certain agreement between said parties dated the 3rd day of June, 1959, to Silver State Disposal Company, a Nevada Corporation, upon the express condition that the following information shall be made available to the Board of Commissioners of the City of Las Vegas for its consideration and review within a period of sixty (60) days from the date hereof: (a) A detailed written explanation of the functions and operations of all related companies doing business with the Silver State Disposal Company together with a statement of all assets and liabilities of Silver State Disposal Company and Southern Nevada Disposal Service, Inc., immediately prior to, and immediately subsequent to, the proposed assignment. (b) A specification of equipment to be owned, leased or otherwise operated by said company, which equipment shall in any event be not less than such number and type of equipment as is necessary to adequately serve the City of Las Vegas. (c) A statement of all encumbrances, if any, against said equipment, it being understood that Max Chason, after said transfer of equipment to Silver State Disposal Company, will be shown as legal owner of all said equipment until such time as the indebtedness due Max Chason has been satisfied in full by the Southern Nevada Disposal Service, Inc., or its successors in interest. NOW, THEREFORE, BE IT RESOLVED that upon receipt of the foregoing information by the City, the Board of Commissioners shall review the same and if it finds that the proposed assignee will adequately perform the conditions and obligations of the aforesaid agreements, the said City shall duly execute and deliver to Silver State Disposal Company a written document consenting to the assignment as aforesaid, effective the 1st day of October, 1959, provided that said assignment shall contain, among other things, a provision acknowledging that the City of Las Vegas shall at all times have the right to disallow or disregard for rate-making purposes increased valuations resulting from said assignment as well as depreciation schedules, amortization schedules, excessive salaries and other expenditures deemed unnecessary by said Commission; and provided, further, that said assignment shall also contain a condition requiring an annual certified audit of the books and records of account of said company as of the close of business on the 30th day of September of each year, which said certified audit shall be delivered to the City of Las Vegas not later than the 15th day of December of each year, the first said certified audit to be delivered on, or prior to, the 15th day of December, 1959; and further providing that the Certified Public Accountant preparing said annual certified audit shall also express his written opinion as to whether the financial statements present fairly the financial position of the company and the results of its operations in accordance with generally accepted accounting principles applied on a consistent basis; and provided further, that said assignment shall contain a provision permitting an authorized representative of the City of Las Vegas to examine and inspect the books of account and records of Silver State Disposal Company, and any and all of its related companies at all reasonable times insofar as the operations of said companies may affect the performance of the assigned agreements. PASSED, ADOPTED AND APPROVED this 29th day of September, 1959. /s/ Oran K. Gragson ATTEST: ORAN K. GRAGSON, Mayor /s/ Marjorie Holtschlag MARJORIE HOLTSCHLAG, City Clerk 9-29-59