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HomeMy WebLinkAbout163-24 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 163-24 File Number: 2024-187 WASTE MANAGEMENT OF ARKANSAS (CONTRACT AMENDMENT): A RESOLUTION TO APPROVE AN AMENDMENT TO THE CONTRACT WITH WASTE MANAGEMENT IN THE AMOUNT OF $25,000.00 FOR THE COST INCREASE OF SOLID WASTE TRANSFER AND DISPOSAL CONTRACT SERVICES WHEREAS, in November 2009, the City Council passed Resolution 224-09 approving a contract with Waste Management of Arkansas for the hauling and disposal of municipal waste from the City's transfer station; and WHEREAS, the term of the original contract was for 5 years and included a provision for the option to renew for 2 successive 5-year terms upon mutual written agreement; and WHEREAS, the first renewal was executed on November 2, 2014 by Resolution 194-14 and the second renewal was executed on October 15, 2019 by Resolution 229-19; and WHEREAS, on August 24, 2023, the Boston Mountain Solid Waste District Board unanimously approved Resolution 2023-01 that created a landfill diversion fund by raising the waste assessment fee on all material going into the EcoVista Landfill in Tontitown by 50 cents per ton; and WHEREAS, Waste Management has requested an amendment to the current hauling and disposal contract to cover the fee increase. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to sign an amendment to the contract with Waste Management in the amount of $25,000.00 for the cost increase of solid waste transfer and disposal contract services. PASSED and APPROVED on June 18, 2024 Page 1 Resolution: 163-24 File Number. 2024-187 Approved: Page 2 Attest: ``�����•LTR�gS��'�. Paxton, City Jerk Treasurer i�'. 9 `�P • J �� ..RKAN-•.v �. ',NG; ON-' CITY OF FAYETTEVILLE ARKANSAS MEETING OF JUNE 18, 2024 TO: Mayor Jordan and City Council CITY COUNCIL MEMO THRU: Susan Norton, Chief of Staff FROM: Peter Nierengarten, Environmental Director SUBJECT: Amendment to Solid Waste Transfer and Disposal Contract Services RECOMMENDATION: 2024-187 Staff recommends approval of a contract amendment with Waste Management to cover the cost increase of solid waste transfer and disposal contract services. BACKGROUND: In November 2009, the Fayetteville City Council passed Resolution 224-09 approving a contract with Waste Management of Arkansas for the hauling and disposal of municipal waste from the City's transfer station. The term of the original contract was for 5-years and included a provision for the option to renew for 2 successive 5-year terms upon mutual written agreement. The first renewal was executed on November 2, 2014 by Resolution 194-14 and the second renewal was executed on October 15, 2019 by Resolution 229-19. The contract current renewal runs through December 31, 2024. DISCUSSION: On August 24, 2023, the Boston Mountain Solid Waste District Board unanimously approved Resolution 2023- 01 that created a landfill diversion fund by raising the waste assessment fee on all material going into the EcoVista Landfill in Tontitown by fee by 50 cents per ton. The purpose of this fund is to support programs that divert waste from the landfill. Waste Management has requested an amendment to the current hauling and disposal contract to cover the fee increase. The new rate will be $48.88 per ton for hauling and disposal of solid waste. BUDGET/STAFF IMPACT: The estimated cost impact of the increased waste disposal fee for the remainder of 2024 is $25,000. Sufficient funds are available in the Recycling & Trash Collections operational budget to cover this increase. ATTACHMENTS: SRF (#3), Resolution 2023-01 (#4), Letter From Waste Management (#5) Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 == City of Fayetteville, Arkansas y 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 - Legislation Text File #: 2024-187 Amendment to Solid Waste Transfer and Disposal Contract Services A RESOLUTION TO APPROVE AN AMENDMENT TO THE CONTRACT WITH WASTE MANAGEMENT IN THE AMOUNT OF $25,000.00 FOR THE COST INCREASE OF SOLID WASTE TRANSFER AND DISPOSAL CONTRACT SERVICES WHEREAS, in November 2009, the City Council passed Resolution 224-09 approving a contract with Waste Management of Arkansas for the hauling and disposal of municipal waste from the City's transfer station; and WHEREAS, the term of the original contract was for 5 years and included a provision for the option to renew for 2 successive 5-year terms upon mutual written agreement; and WHEREAS, the first renewal was executed on November 2, 2014 by Resolution 194-14 and the second renewal was executed on October 15, 2019 by Resolution 229-19; and WHEREAS, on August 24, 2023, the Boston Mountain Solid Waste District Board unanimously approved Resolution 2023-01 that created a landfill diversion fund by raising the waste assessment fee on all material going into the EcoVista Landfill in Tontitown by 50 cents per ton; and WHEREAS, Waste Management has requested an amendment to the current hauling and disposal contract to cover the fee increase. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to sign an amendment to the contract with Waste Management in the amount of $25,000.00 for the cost increase of solid waste transfer and disposal contract services. Page 1 Peter Nierengarten Submitted By City of Fayetteville Staff Review Form 2024-187 Item ID 6/18/2024 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 5/31/2024 RECYCLING/TRASH COLLECTION (750) Submitted Date Division / Department Action Recommendation: Staff recommends approval of a contract amendment with Waste Management to cover the cost increase of solid waste transfer and disposal contract services. 5500.750.5040-5316.00 Account Number Project Number Budgeted Item? Yes Does item have a direct cost? No Is a Budget Adjustment attached? No Purchase Order Number: Change Order Number: Original Contract Number: Comments: Budget Impact: Recycling & Trash Collections Total Amended Budget Expenses (Actual+Encum) Available Budget Item Cost Budget Adjustment Remaining Budget Fund Project Title $ 708,212.00 $ 117,219.01 590,992.99 590,992.99 V20221130 Previous Ordinance or Resolution # 229-19 Approval Date: Boston Mountain Solid Waste Management District RESOLUTION 2023-01 A RESOLUTION TO ADJUST THE FEE ASSESSED ON APPLICABLE WASTE IN THE BOSTON MOUNTAIN REGIONAL SOLID WASTE MANAGEMENT DISTRICT RULES & REGULATIONS WHEREAS, the Board desires to create a fund for the purpose of funding landfill diversion strategies and programs; and WHEREAS, the Waste Assessment fee applied to all applicable waste shall increase to $2.00 per ton, $0.30 per uncompacted cubic yard, and $0.70 per compacted cubic yard; and WHEREAS, a fund stall be created to receive the additional revenue listed in § 20.02 and named the Diversion Fund. NOW, THEREFORE, THE DISTRICT BOARD DOES HEREBY RESOLVE AS FOLLLOWS: Section 1. Approve the changes to the Rules and Regulations of the Boston Mountain Solid Waste District Section 2. The notice shall be published two times but the comment period shall not be less than thirty (30) days from the date of publication. Approved this 24 of August 2023. Mayo . use, CHAPTER F: SOLID WASTE ASSESSMENT. Subchapter 20 Assessment. Subchapter 21 Procedure. Subchapter 22 Compliance and Enforcement. Subchapter 20 Assessment. §20.01 Authority S20.02 Applicable Waste §20.03 Fee Amount §20.01 Authority This Chapter F. Solid Waste Assessment Regulation is adopted and imposed pursuant to A.C.A. 8-6-714, as amemded by Act 209 of 2011 20.01 Applicable Waste (a) Starting May 1, 2011, there shall be assessed a fee, to be paid to the District, on all solid waste generated within the District; or generated outside the District and brought to a processing or disposal facility within the District. (b) This fee will be applicable to all solid waste that is collected and delivered to a processing, transfer or disposal facility within the District; or generated outside the District and brought into a processing, transfer, recycle or disposal facility within the District. This also includes all solid waste waste generated in the District and taken outside the District and delivered to a processing, transfer or disposal facility. (c) This fee will not be applied to permitted landfills where a private industry bears the expense of operating and maintaining the landfill solely for the disposal of solid wastes generated by the industry; to any non -municipal solid waste generated by private industry and shipped to another state for recycling, treatment or disposal; to any recyclable materials which are processed and marketed for recycling, to any organic materials which are delivered to a Class Y or O composting facility; to any materials which are removed from solid waste and processed for recycling; to waste tires processed through the District's waste tire program; or to household hazardous wastes collected through the District's HHW program that is handled as Subtitle C waste. §20.02 Fee Amount 32 LaJ_The amount of the fee assessed shall be $4-.502.00 per ton. (1) $0 50 Der ton of this fee shall be deposited into a fund designated for landfill diversion strategies and programs (a)1. This fund is to only be used with approval by the of Directors. Directors. (b) If weight tickets are not available, the fee shall be calculated on a volume basis as follows. (1) j$0.3025 per uncompacted cubic yard (21$0.7045 per compacted cubic yard) (2)1. $0.05 Der uncompacted and $0.25 per compacted - cubic Yard shall also be deposited into the same fund as referenced by 620.02(a)(1). ( c)lf solid wastes, subject to a fee under this Chapter, are shipped, delivered or transported to another Solid Waste District within this state that also imposes a fee pursuant to A.C.A. 8-6-714(a)(1)(A); then the fees imposed shall be divided between the districts pursuant to any inter local agreement in place between the Districts. If no inter local agreement is in place, the larger of the fees shall be Imposed and said fees shall be split evenly between the Districts. Subchapter21 Procedures §21.01 Landfills §21.02 Solid Waste Material Recovery Facility §21.03 Class S Composting Facility §21.04 Transfer Stations §21.05 Out -of -District Haulers §21.06 Schedule §21.01 Landfills Any landfill located within the District shall pay to the District an amount equal to the per ton fee amount in Section 20.02 times the number of tons of solid waste handled. Such fee will be paid according to the schedule listed in Section 21.06. §21.02 Solid Waste Material Recovery Facility 33 ranna ted Commented [RJR]: Calculations based on EPA volume. to -we ht conversion factors. p�p�./CtGkb',Cp3.oavistes/tlefauM/fiWA120a. 94/Lm",ST3et�NQWmeJ9_wCiant sanvgrsiop�aders nwm ore el�,m 061 ueat6 50.Mnl�atl/ lonnnrtted rormat[ed: rant: we sold (a) Any Solid Waste Material Recovery Facility located within the District shall pay to the District an amount equal to the per ton fee amount in Section 20.02 times the number of tons of solid waste handled. Such fee will be paid according to the schedule listed in Section 21.06. (b) Any waste handled by a solid waste material recovery facility that is delivered to a landfill within the District shall be exempt from the fees imposed by this Section. §21.03 Class S Composting Facilities (a) Any Gass S composting facility located within the District shall pay to the District an amount equal to the per ton fee amount in Section 20.02 times the number of tons of solid waste handled. Such fee will be paid according to the schedule listed in Section 21.06. (b) Any waste handled by a class S composting facility that is delivered to a landfill within the District shall be exempt from the fees imposed by this Section. §21.04 Transfer Stations (a) Any transfer station located within the District shall pay to the District an amount equal to the per ton fee amount in Section 20.02 times the number of tons of solid waste handled. Such fee will be paid according to the schedule listed in Section 21.06. (b) Any waste handled by a transfer station that is delivered to a landfill, solid waste material recovery facility or class S composting facility within the District shall be exempt from the fees imposed by this Section. §21.05 Out -of -District Haulers Any hauler who collects solid waste generated within the District but transports it out of district for processing or disposal shall be required to submit the applicable fee in Section 20.02 times the number of tons of waste transported, to the District according to the schedule in §21.06. §21.06 Schedule Fees shall be paid to the District quarterly. For all wastes handled during the months of January -March, payment will be due by April 30' . For all wastes handled during the months of April - June, payment will be due by July 30' . For all wastes handled during the months of July - September, payment will be due by October 30'h. For all wastes handled during the months of October - December, payment will be due by January 301h. 011 March 11th, 2024 Fayetteville, City of Attn : Peter Neirengarten, Enviromental Director 3411 Hwy 126 Suite 201 Fayetteville, AR Dear Mr. Nierengarten: As North America's leading provider of comprehensive waste services, Waste Management (WM) is committed to total customer satisfaction, operating excellence, and the safe and responsible disposal of waste materials. WM greatly appreciates the opportunity to continue providing waste services to the City of Fayetteville Transfer Station. The purpose of this letter is to notify the City of Fayetteville of the increase in the Waste Assessment Fee established by Boston Mountain Solid Waste District (BMSWD). BMSWD recently advised WM of its decision to increase its Waste Assessment Fee by fifty cents ($0.50), effective April 1, 2024. WM respectfully requests the City of Fayetteville approve the additional increased costs resulting from this uncontrollable circumstances that consists of an increased fee by this regional government authority (BMSWD). As a result, WM's disposal rate for the City will increase from $35.56 per ton to $36.06 per ton for Solid Waste disposal at the Eco Vista Landfill, which is located within the Boston Mountain Solid Waste District. WM is requesting the disposal rate increase for the City to be effective April 1, 2024. Please see the notice of the fee increase provided by the BMSW D provided below. Thank you for the opportunity to service the City of Fayetteville for their Solid Waste disposal needs. If you have any questions or concerns, please free to contact Jamie Vernon at jvernon@wm.com. Sincerely, Jamie Vernon Public Sector Manager WM Cc: Blake Small Stephanie Peterson w "This email is to inform you that effective April 1, 2024, the Waste Assessment Fee will increase from $1.50 per ton to $2.00 per ton on all waste collected within the Boston Mountain Regional Solid Waste Management District (Madison and Washington counties). §20.03 Fee Amount (a) The amount of the fee assessed shall be $2.00 per ton (1) $0.50 per ton of this fee shall be deposited into a fund designated for landfill diversion strategies and programs. 1. This fund is to only be used with approval by the Board of Directors. (b) If weight tickets are not available, the fee shall be calculated on a volume basis as follows. (1) $0.25 per uncompacted cubic yard (2) $0.45 per compacted cubic yard (c) If solid wastes, subject to a fee under this Chapter, are shipped, delivered or transported to another Solid Waste District within this state that also imposes a fee pursuant to A. C.A. 8-6- 714(a)(1)(A); then the fees imposed shall be divided between the districts pursuant to any inter local agreement in place between the Districts. If no inter local agreement is in place, the larger of the fees shall be imposed and said fees shall be split evenly between the Districts. A full version of the District Rules is available online at bostonmountain.org/district-info Also, the Quarterly Reporting Form has been updated. Begin using the new form for the 2nd Quarter 2024 report and fees to submit to the District, due July 15. I have attached both forms to this email. Thank you," ry Robyn Reed �• Director, Boston Mountain Solid Waste District 479 846 46171 reed Q- bmswd. com I bostonmountain.org ©© E THIRD AMENDMENT TO THE CITY OF FAYETTEVILLE, ARKANSAS SOLID WASTE TRANSFER AND DISPOSAL SERVICES CONTRACT This Third Amendment to the City of Fayetteville, Arkansas Solid Waste Transfer and Disposal Services Contract (hereafter the "Third Amendment") is entered into as of the 18 day of June , 2024, by and between the City of Fayetteville (the "City"), and Waste Management of Arkansas, Inc. (the "Contractor or Waste Management"). WITNESSETH: WHEREAS, the City of Fayetteville and Waste Management have previously entered into a certain Agreement for Solid Waste Transfer and Disposal Services, dated on or about November 3, 2009, and amended on October 15, 2014 and October 15, 2019 (collectively the "Contract") whereby Waste Management was granted the right to provide solid waste transfer and disposal within the City, as more particularly set forth in the Contract; and WHEREAS, in response to a fifty cent increase in the Waste Assessment Fee established by Boston Mountain Solid Waste District, the City and Waste Management have agreed to modify the Contract as more particularly set forth below. NOW, THEREFORE, for and in consideration of the good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: Section 3 of the Contract entitled "Fees" is hereby superseded and replaced with the following language: B. City agrees to pay Waste Management the current rate of $48.88 per ton through December 31, 2024. 2. Nothing contained herein shall be deemed to amend or modify the Contract except as expressly set forth herein. In the event of a conflict between the terms of the Contract and this Third Amendment, the terms of this Third Amendment shall control. IN WITNESS WHEREOF, this Third Amendment has been executed as of the date first set forth above. CITY: CITY Attest: CONTRACTOR: IKANSAS WASTE MANAGEMENT OF ARKANSAS, INC. -��--� By \` I RE Eddie McManus, Area I . , reaurbI GTO ,�I s'T• • • • • • •'fie>\\�` Vice President