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HomeMy WebLinkAbout274-25 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 274-25 File Number: 2025-2425 A RESOLUTION TO APPROVE AMENDMENT NO. 2 TO THE CONTRACT WITH OZARK COMPOST AND SWAP, LLC IN THE AMOUNT OF $15,000.00 FOR RESIDENTIAL FOOD WASTE CURBSIDE COLLECTION, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, the City has a 40% diversion from landfill goal which includes efforts to expand the composting program to recover more food waste for better quality compost; and WHEREAS, in 2025, the City implemented a pilot curbside residential food waste collection program with Ozark Compost and Swap to determine whether it was feasible to expand food waste collection across the City; and WHEREAS, the pilot program shows that an estimated 19 pounds of organic waste per household will be diverted from the Eco Vista landfill and staff recommends an amendment to the agreement expanding the service across the City. 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 approves Amendment No. 2 to the contract with Ozark Compost and Swap, LLC in the amount of $15,000.00 for a residential food waste curbside collection program that will be billed through the City's utility billing system. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution. PASSED and APPROVED on December 2, 2025 Approved: Molly Rawn, Mayor Attest: %� %-POL�-, Kara Paxton, City Clerk Treasurer 0����,�RK I RF4//�i m_ =v� FAYETTEVILLE-W— Page 1 CITY OF FAYETTEVILLE ARKANSAS MEETING OF DECEMBER 2, 2025 CITY COUNCIL MEMO 2025-2425 TO: Mayor Rawn and City Council THRU: Peter Nierengarten, Environmental Director FROM: Brian Pugh, Waste Reduction Coordinator SUBJECT: Approval of an amendment to an agreement with Ozark Compost and Swap, LLC for residential food waste curbside collection provided to residents via the utility billing system. RECOMMENDATION: Staff recommends approval of an amendment to the agreement with Ozark Compost and Swap, LLC for residential food waste curbside collection provided to residents via the utility billing system. BACKGROUND: The City of Fayetteville has a 40% Diversion from landfill goal which includes efforts to expand the composting program to recover more food waste for better quality compost. Staff began a residential drop off in 2020 which allowed an opportunity for residents to participate by diverting food waste from their homes. After completing a pilot in 2025 for curbside residential food waste collection with Ozark Compost and Swap (OCS), the composting program will expand on the current model making diverting food waste more convenient and accessible to residents by providing billing via the City's utility billing system. DISCUSSION: After a successful pilot determining the feasibility of expanding food waste collection, provided by OCS, an estimated 19 pounds per household of organic waste will be diverted from the Eco Vista landfill through a convenient and accessible composting solution by adding food waste collection to the residential utility billing system and by reducing the service cost. The cost of the service to residents will be reduced to $15/month and food waste collected by OCS will be added to the City's compost program where it will be converted to a nutrient -rich soil amendment. The program will continue to provide biweekly curbside collection of food waste utilizing five -gallon buckets. Quantitatively, this agreement requires OCS to reach a minimum of 1,000 households within the first year of the program. The reduction in the amount of food waste in the trash stream will reduce the City's landfill tip fees and help eliminate the harmful methane greenhouse gas production that occurs when food waste degrades aerobically in a landfill. The term of the agreement shall be for two years with automatic renewals for two additional two-year terms. BUDGET/STAFF IMPACT: The direct start-up cost of the agreement is $15,000 in year one only. The funds will be taken from 5500. 750.5000-5315.00. A budget adjustment is attached to allow for program. Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 ATTACHMENTS: 3. Staff Review Form, 4. Budget Adjustment, 5. OCS Amended Agreement for 2026 - Final, 6. OCS Amended Contract - Approved August 2025 Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 - Legislation Text (479)575-8323 File #: 2025-2425 A RESOLUTION TO APPROVE AMENDMENT NO. 2 TO THE CONTRACT WITH OZARK COMPOST AND SWAP, LLC IN THE AMOUNT OF $15,000.00 FOR RESIDENTIAL FOOD WASTE CURBSIDE COLLECTION, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, the City has a 40% diversion from landfill goal which includes efforts to expand the composting program to recover more food waste for better quality compost; and WHEREAS, in 2025, the City implemented a pilot curbside residential food waste collection program with Ozark Compost and Swap to determine whether it was feasible to expand food waste collection across the City; and WHEREAS, the pilot program shows that an estimated 19 pounds of organic waste per household will be diverted from the Eco Vista landfill and staff recommends an amendment to the agreement expanding the service across the City. 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 approves Amendment No. 2 to the contract with Ozark Compost and Swap, LLC in the amount of $15,000.00 for a residential food waste curbside collection program that will be billed through the City's utility billing system. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution. Page 1 Brian Pugh Submitted By City of Fayetteville Staff Review Form 2025-2425 Item ID 12/2/2025 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 11/12/2025 RECYCLING/TRASH COLLECTION (750) Submitted Date Division / Department Action Recommendation: Approval of an amendment to an agreement with Ozark Compost and Swap, LLC for residential food waste curbside provided to residents via the utility billing system. Attached with an budget adjustment 5500.750.5000-5315.00 Account Number Project Number Budgeted Item? Yes Does item have a direct cost? Yes Is a Budget Adjustment attached? Yes Purchase Order Number: Change Order Number: Original Contract Number: Comments: Budget Impact: Total Amended Budget Expenses (Actual+Encum) Available Budget Item Cost Budget Adjustment Remaining Budget Contract Services Fund Project Title $ 183,788.00 $ 179,768.05 4,019.95 $ 15,000.00 $ 15,000.00 4,019.95 Previous Ordinance or Resolution # Approval Date: V20221130 City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division RECYCLING/TRASH COLLECTION (750) Adjustment Number /Org2 2025 Requestor: Daryl Brigman BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Redistribute budget for the approval of an amendment to an agreement with Ozark Compost and Swap, LLC for residential food waste curbside provided to residents via the utility billing system. COUNCIL DATE: 12/2/2025 ITEM ID#: 2025-2425 Kevin Springer 7717312025 70: q0 RM RESOLUTION/ORDINANCE Budget Division Date TYPE: D - (City Council) JOURNAL#: GLDATE: CHKD/POSTED: TOTAL Account Number - - Increase / (Decrease) Expense Revenue Project.Sub# Project Sub.Detl AT v.20251027 Account Name 5500.750.5060-5342.00 (15,000) - EX Promotionals - Activities 5500.750.5000-5315.00 15,000 - EX Contract Services I of 1 Amendment 2 - Ozark Compost and Swap City Wide Residential Agreement WHEREAS, the Eco-Vista Landfill is near capacity and diversion of sustainable materials such as food waste is necessary to preserve capacity and will reduce greenhouse gas emissions for the region; and WHEREAS, the City of Fayetteville ("City") has a 40% sustainable materials diversion goal and this project would divert an average of 19 pounds of food waste per home per collection; and WHEREAS, the City and Ozark Compost and Swap, LLC ("OCS") wish to combine their resources to provide Fayetteville residents with residential curbside food waste collection to divert food waste and third -party certified compostable plastics from the landfill. NOW, THEREFORE, the City of Fayetteville, Arkansas and Ozark Compost and Swap, LLC agree as follows: 1. OCS Responsibilities and Service Standards: A. OCS shall: i. Provide biweekly curbside collection of food waste and third -party certified compostable materials, using 5-gallon buckets to single family households and multifamily households that have been identified as serviceable by OCS. ii. Conduct doorstep collection service for program participants that are documented through the City as needing exemptions. iii. Swap a collected bucket with clean bucket during collection. iv. Send text notifications reminding program participants of pickup days. deliver buckets to new program participants and participants that may request an extra bucket. V. Dump food waste and remove contamination at an OCS facility approved by the City and hold the food waste until picked up by the City. vi. Provide sufficient staffing and resources for customer service for program participants, updating website landing page, along with managing and fulfilling program participant sign up requests through email communications and phone support. vii. Notify all customers via email and text notifications for any service changes that may arise. viii. Pick up buckets from program participants that are no longer participating in the program. ix. Collect and transport any damaged buckets to the Recycling and Trash Division facility for recycling. X. Onboard new program participants within the first 5 days of each month xi. Ensure resolution of missed collections within 2 working business days of program participant's communication of missed collection. xii. Provide on -going public education and outreach to program participants regarding the food waste collection program, including but not limited to instructions on changes to the program, what materials may be placed in the food waste collection bucket, and any other information required by the City. B. OCS reserves the right to add new pickup days, adjust routes for efficiency, and modify schedules during holidays or inclement weather. C. OCS shall not charge more than: $15/month per household to service program participants in year one. $19/month per household to service participants that request an additional collection bucket. D. OCS will conduct a pre -registration period in the sixty days prior to program launch. During this pre -registration period, OCS will contact current Fayetteville customers, past Fayetteville customers, and current Fayetteville pilot participants about the residential food waste curbside collection program. E. OCS will add no fewer than 200 new customers per month after launching program. If program participation approaches 1,000 households before the end of the third quarter of 2026, OCS will notify the City so both parties can review the program's growth and agree on the most effective path for scaling service beyond 1,000 participants. F. OCS marketing materials and communications shall incorporate the City logo, such as but not limited to door hangers, or direct mail, and must be approved by City in advance. G. OCS may provide optional add-ons for program participants to purchase compostable bags and countertop caddies through the OCS website, with delivery included in the program participant's regular service. H. OCS shall maintain records related to this program for a period of three years and shall provide quarterly reports to City, at no additional cost, of: i. Program participant information ii. Documentation of buckets not set out by program participants iii. Records of program participants and State/City Regulatory site visits, with outcome of each visit; iv. Food waste collection tonnage; and V. Any other reports as may be requested by the City. OCS agrees that it shall comply with all federal, state and local laws applicable to the safety, environmental and transportation matters related to providing food waste and compostable material collection services under this Agreement. J. OCS agrees that this Agreement has been entered into freely and voluntarily by OCS which agrees to abide by all of the terms and conditions as a matter of contractual obligation pursuant to applicable City ordinances. This is a contractual Agreement and is not intended to be part of or relate in any way to any license or ordinance created pursuant to A.C.A. §26-77-102. K. OCS agrees that neither this Agreement, nor any rights or obligations hereunder may be assigned or transferred to any third party or affiliate. L. OCS agrees to protect, indemnify, defend and save harmless the City, its officials, officers, employees, agents, subcontractors, representatives and assigns from any loss, claim, liability, penalty, fine, forfeiture, demand cause of action, suit and costs and expenses incidental thereto (including costs of defense, settlement and reasonable attorneys' fees), to the extent caused by (i) OCS's breach of any term, condition, covenant or warranty contained in this Agreement, or (ii) OCS's negligent act or omission or willful misconduct related to the delivery of waste to the City transfer station or a properly licensed landfill facility. M. OCS shall promptly supply any records requested by the City during the course of any litigation, or in response to any other subpoena or court order issued to the City for information or records related to OCS and this Agreement. N. OCS agrees to ensure to inform the City of any media interviews concerning the residential food waste curbside collection program and agrees to share information about the program without speaking on behalf of the City or claiming the program as their own. O. OCS agrees and understands that this Agreement and documents submitted to the City pursuant hereto are subject to the Arkansas Freedom of Information Act. If a Freedom of Information Act request is presented to the City of Fayetteville requesting such non-exempt documents, such non-exempt documents shall be provided in a prompt and timely manner as prescribed in the Arkansas Freedom of Information Act (Ark. Code Ann. § 25-19-101 et seq.). Only legally authorized photocopying costs may be assessed for this compliance. 2. City of Fayetteville Responsibilities: A. City shall: i. Provide City of Fayetteville residents with current trash service access to participate in the residential food waste curbside collection program through the utility billing service to collect payment ii. Remit payments to OCS no later than the 20th of the following month. Make payments to OCS contingent upon the number of billed customers but will not be contingent upon collection of program participants payments. However, amounts corresponding to uncollected customer payments may be deducted from the remittance to OCS. iii. Provide OCS with full program participant contact information (name, address, phone number, email) five business days before the final business day of the month after the program participant signs up for service through the Utility Billing system for the purposes of: a) Coordinating collection services; b) Providing direct customer support; and c) Providing opportunities for additional food waste collection support such as, but not limited to, compost caddies and third -party certified compostable bags d) Determining which residents are exempt from curbside collection and require doorstep pickups iv. Integrate current food waste collection pilot participants into the utility program during the 60-day pre -registration period. V. Provide marketing and outreach during the 60-day pre -registration period and after program launch including website information, email, social media, and media/resident/staff engagement and education. vi. Maintain webpages with information on the residential food waste curbside collection program along with providing an accessible opt -in signup form. vii. Provide OCS information regarding when program participant requests to stop service. viii. Provide two (2) buckets per program participant up to 500 households. ix. Provide 65-gallon food waste collection carts for OCS to have at their facility to discard food waste from 5-gallon buckets. X. Collect food waste and compostable materials from the approved OCS facility. B. The City owns all compostable materials collected by OCS in the City of Fayetteville. C. The City may provide processed compost to program participants organized and scheduled at the City's discretion. D. The City may provide unfinished compost to OCS organized and scheduled at the City's discretion. E. The City reserves the right to inspect all vehicles and containers to ensure that the vehicles are safe and well -maintained. F. The City will advise OCS of any request for information which the City, at the City's sole discretion, determines to be non-disclosable or otherwise subject to an exemption from disclosure under the Arkansas Freedom of Information Act. If a court of competent jurisdiction determines that said requested information is disclosable or otherwise is not exempt from disclosure under the Arkansas Freedom of Information Act, the City will comply with that ruling and notify OCS. Discovery requests made to the City during the course of any litigation, or any other subpoena or court order issued to the City for information or records related to OCS and this Agreement, shall be promptly made known to OCS. 3. Fees: A. Monthly Fee: The City will pay OCS monthly based on customer billing for the prior month. The monthly fee charged to customers will be $15.90 or $20.14 for residents requiring an additional receptacle in year one and may be pro -rated for partial month service. B. Base Fee: City will pay OCS $15,000 to provide residential food waste curbside collection to City of Fayetteville residents that have trash service. Payment will be made in the following three installments: i. $7,500 no later than the 7th day of the month that follows the end of the 60-day pre -registration period and program launch; ii. $3,750 no later than the 7th day of month four after program launch; and iii. $3,750 no later than the 7th day of month eight after program launch. C. CPI Increase: Beginning on January 1, 2027 and on each January 1 thereafter (including in any renewal or extension terms), the Base Rate shall be automatically adjusted by the annual percentage change in the average that the Consumer Price Index (CPI-U), US City Average for All Urban Consumers (current series), Water, Sewer, Trash Collection, Not Seasonally Adjusted, Series ID CUUROOOOSEHG ("CPI") in Table 2 at (https://www.bls.gov/news.release/cpi.nr0.htm) has increased over the 12 most recently published months compared to the average CPI for the preceding twelve-month period for which the data has been published. If the above CPI ceases to be published, the parties agree to substitute another equally authoritative measure of change in the purchasing power of the U.S. dollar as may be then available so as to carry out the intent of this provision. The annual adjustment shall be no less than two percent (2%) and no greater than five percent (5%). If the CPI-U ceases to be published, the parties agree to substitute an equally authoritative measure of general inflation to carry out the intent of this provision. i. The CPI published on the first Monday prior to the end of the month (or the first business day thereafter if such Monday is a Federal Holiday) shall be used to determine the monthly change. The annual percentage change shall be calculated by subtracting the average CPI value for the previous 12-months from the average CPI value for the most recent 12- month period, the result of which shall be divided by the prior 12-month period average. An example of the CPI annual increase calculation follows: Index 202012- 202112-Month Change Applied Month Average Percentage Average Change CPI -Water, Sewer, Trash 252.46 261.47 9.01 3.6'6 (9.01 /252.46) OCS shall coordinate with the City in writing prior to any implementation of any CPI price adjustment. Such coordination shall include the amount of the price adjustment, documentation substantiating the CPI published numbers, and the date the adjusted price takes effect. The City and OCS shall mutually agree on any increase, including calculation accuracy on CPI or other equally authoritative measure as applicable, prior to any price adjustment. D. Insurance: OCS shall maintain the following insurance coverage during the term of this Agreement: i. OCS shall provide and maintain, during the term of this Agreement, comprehensive general liability insurance, to protect against all claims arising out of the performance of its services hereunder that result in bodily injury, death or property damage. The policy or policies shall contain a clause that the insurer will not cancel or decrease the insurance coverage without first giving the City sixty (60) days notice in writing. ii. Upon written request, OCS shall furnish the City with evidence that the insurance required of it is in force. iii. The types of coverage and limits of liability of all insurance required herein shall be as follows: COVERAGE LIMITS OF LIABILITY Worker's Compensation Statutory Employer's Liability $500,000 $1,000,000 Bodily Injury Liability except Automobile each occurrence Property Damage Liability Except $1,000,000 Automobile each aggregate Automobile Bodily Injury $1,000,000 each person Comprehensive General Liability $1,000,000 each occurrence Automobile Property $1,000,000 Damage Liability each occurrence Excess Umbrella $1,000,000 Liability each occurrence E. Exclusions. The City agrees to waive the City's commercial food waste collection fee and franchise fees. 4. Term and Renewal: A. The term of this agreement shall be for two (2) years, with automatic renewals for two (2) additional two (2) year terms, unless otherwise terminated pursuant to the terms hereof. Notice of non -renewal by either City or OCS shall be given at least thirty days prior to the end of the current term. B. Key Performance Indicators and Agreement Renegotiation KPI will be evaluated quarterly by both parties for the following; a) Program Participation Growth b) Churn Rate c) Average Pickup Volume d) Expansion Capacity e) Marketing Impact At the 6-month mark, both parties will begin to conduct a formal program review. If at least 600 active households are not reached by the end of month six, either party may request to renegotiate contract terms. 5. Default and Termination; No Waiver: A. Except as otherwise provided herein, if either party defaults in the performance of any of the covenants or conditions contained here in this agreement, and fails to cure such default within sixty (60) days after the non - defaulting party has been given the defaulting party written notice of such default (or if such default is of nature that cannot be cured within sixty (60) day period, the defaulting party fails to commence the curing of such default within 60 day period, and fails to thereafter diligently pursue the curing thereof) (the "Cure Period"), the non -defaulting party may: (a) terminate this agreement as of any date to which the non -defaulting party may select; (b) cure the default at the expense of the defaulting party; and/or (c) have recourse to any other right or remedy to which may be entitled by law, including, but not limited to, the right to all damages or losses suffered as a result of such termination. B. In the event either party waives default by the other party, such a waiver shall not be construed or determined to be a continuing waiver of the same or any subsequent breach or default. 6. Point of Contact; Notices: A. For the purpose of this contract, the Point of Contact for the City of Fayetteville shall be the City's Environmental Director. B. The Point of Contact for OCS shall be Ricky Ludeman or Tina Flakowitz. C. Communications pertaining to day-to-day aspects of this contract shall be through these individuals. Either party may change its designated Point of Contact upon ten (10) days prior written notice to the other party. D. Any notice required by this Agreement may be sent in writing by electronic mail, certified mail, or in person. 7. Indemnification and Liability: OCS agrees to indemnify and hold harmless City, its officers, officials, members, agents, and employees from any and all causes of action, suits in law or equity, demands or claims, or from any liability of any nature arising out of the performance of the Services and from any obligations made by OCS or OCS's agents and/or employees. All risks for damages, theft, vandalism, and Acts of God in execution of the Services are the responsibility of OCS during any and all operations. 8. Compliance with Laws: OCS shall observe and comply with all applicable statutes, orders, ordinances and regulations of the City, the County of Washington, the State of Arkansas, the federal government and any other governmental authority having jurisdiction over the site or the Services. 9. No Waiver: No failure to exercise and no delay in exercising, any right, power, or remedy hereunder on the part of the City or OCS shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power, or remedy preclude any other or further exercise thereof or the exercise of any other right, power, or remedy. No express waiver shall affect any event or default other than the event or default specified in such waiver, and any such waiver, to be effective, must be in writing and shall be operative only for the time and to the extent expressly provided by the City or OCS therein. A waiver of any covenant, term, or condition contained herein shall not be construed as a waiver of any subsequent breach of the same covenant, term, or condition. 10.Amendments: Changes, modifications or amendments to the scope, price or fees dictated by this Agreement shall not be allowed without a prior formal amendment approved by the City and by the authorized agent of OCS in advance of the change. 11. Definitions A. "Organic Materials", "Food Waste" and "Compostable Materials" shall include: • Fruits and vegetables • Coffee grounds and tea with non -synthetic filters • Consumable liquids • Diary: milk, cheese, yogurt • Bread, dough, bakery items, pasta, grains • Eggs and eggshells • Ink -free food -soiled paper: paper bags, paper towels, paper napkins, • Cooked meats and fish: shells, bones, wooden skewers, toothpicks • Processed foods: pizza, cereal, chips, crackers, cooked meats, plate scraps • Clearly labeled compostable products such as but not limited to plates, cups, and utensils; must be BPI® -certified or reputable third -party certified including but not limited to TUV Austria and Compost Manufacturing Alliance B. "Contamination" shall include, but is not limited to: • Raw meats (fish, poultry, pork, seafood, beef) • Plastic bags, plastic single use serve ware, utensils, twist -ties, rubber bands • Waxed cardboard boxes, mixed paper • Wood, metal, glass or other non-food items • Fats, oils, grease, non -consumable liquids, vegetable oil, lard AUTHORIZATION AND EXECUTION This Agreement shall be signed by the authorized representatives of Ozark Compost and Swap, LLC and the City of Fayetteville, Arkansas and shall be effective as of the date signed by the Mayor. CITY OF FAYETTEVILLE, ARKANSAS Molly Rawn, Mayor ATTEST: By. Kara Paxton, City Clerk -Treasurer FAYETTEVILLE;�- OZARK COMPOST AND SWAP, LLC By: Fz 0cz� LvdeVv. .aw Ricky Ludman, Owner WITNESS: Date: 12/02/2025 Date: Brian Pugh Submitted By City of Fayetteville Staff Review Form 2025-0614 Item ID N/A City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 8/1/2025 RECYCLING/TRASH COLLECTION (750) Submitted Date Division / Department Action Recommendation: Mayor's signature on an amendment to agreement with Ozark Compost and Swap, LLC for continuing a pilot curbside collection of food waste for the composting program. A budget adjustment will be attached. 5500.750.5000-5315.00 Account Number Project Number Budgeted Item? Yes Budget Impact: Contract Servivices Total Amended Budget Expenses (Actual+Encum) Available Budget Does item have a direct cost? Yes Item Cost Is a Budget Adjustment attached? Yes Budget Adjustment Remaining Budget Fund Project Title $ 179,988.00 $ 179,367.19 620.81 $ 2,500.00 $ 2,500.00 620.81 V20221130 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Approval Date: Original Contract Number: Comments: CITY OF FAYETTEVILLE ARKANSAS TO: Mayor Molly Rawn THRU: Peter Nierengarten, Environmental Director FROM: Brian Pugh, Waste Reduction Manager STAFF MEMO DATE: August 1st, 2025 SUBJECT: Mayor's signature on an amendment to agreement with Ozark Compost and Swap, LLC for continuing a pilot curbside collection of food waste for the composting program. RECOMMENDATION: Mayor's signature on an amendment to the agreement with Ozark Compost and Swap, LLC for continuing a pilot curbside collection of food waste for the composting program. A budget adjustment will be attached. BACKGROUND: The City of Fayetteville has been conducting a six-month food waste curbside collection pilot with Ozark Compost and Swap since January 2025. The pilot offers pickups on a biweekly basis, followed by the option to subscribe to a full-time compost collection service provided by Ozark Compost and Swap (OCS). The organic waste collected from the pilot is diverted from the Eco Vista landfill and added to the food being composted at the city site. The agreement required OCS to convert a minimum of 250 households from pilot participants to full-time compost collection service subscriptions by the end of the six-month pilot program term with a goal of reaching up to 480 converted households. To date that goal has been met and the six- month period was fulfilled on July 6th. DISCUSSION: The pilot has resulted in collecting 10 tons of food waste since beginning in January and staff believes the pilot has been very successful and would like to continue with Ozark Compost and Swap while a permanent program can be established. In order to allow for continued collection for residents without a disruption of service, staff would like to have an amendment approved allowing for more time to continue and complete negotiations with OCS for a permanent agreement to provide the service. Staff would like to continue with this service through the end of the year to allow for a new agreement to be put into place. There would be an additional cost of $2,500 for extending the agreement with an amendment. BUDGET/STAFF IMPACT: The original cost of the agreement was $2,500. The funds were taken from 5500.750.5070- 5314 and a budget adjustment was created for the pilot program. There is an additional request of $2,500 for funds with the amendment. A new budget adjustment is attached. Attachments: Ozark Compost and Swap, LLC agreement- amended contract Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 Amended Agreement between the City of Fayetteville, Arkansas and Ozark Compost and Swap, LLC This Amended Agreement, made and entered into on this 11 day of August, 2025, by and between the City of Fayetteville, Arkansas ("City") and Ozark Compost and Swap, LLC ("OCS"), witnesseth: WHEREAS, the Eco-Vista Landfill is near capacity and diversion of sustainable materials such as food waste is necessary to preserve capacity and will reduce greenhouse gas emissions for the region; and WHEREAS, the City has a 40% sustainable materials diversion goal by 2027 and this project would divert an average of 13 pounds of food waste per home per collection; and WHEREAS, on July 25, 2024, the City of Fayetteville and Ozark Compost and Swap, LLC ("Ozark") entered into an agreement to establish a pilot residential compost program with the goal of converting at least 250 households from pilot participants to full time compost collection service subscribers within six months; and WHEREAS, the pilot program has been a success and both the City and Ozark desire to extend the pilot while a more permanent program is designed; and WHEREAS, the pilot program is set to end on July 5 and the parties agree that an extension to December 31, 2025 will be sufficient to design and establish a more permanent program. NOW, THEREFORE, the City of Fayetteville, Arkansas and Ozark Compost and Swap, LLC agree as follows: 1. Term. The pilot will be administered until December 31, 2025. 2. The Project. The objective of this project is to provide a pilot program to increase food waste and other compostable waste diversion from the landfill. By offering a pilot period of free pickups on a biweekly basis, followed by the option to subscribe to a full-time compost collection service provided by OCS, organic waste will be diverted from the Eco Vista landfill through a convenient and accessible composting solution using the program details set forth below. Quantitatively, this agreement requires OCS to convert a minimum of 300 households from pilot participants to full time compost collection service subscriptions by the end of the pilot program term with a goal of reaching up to 480 converted households. 3. Ozark Compost and Swap, LLC Rights and Responsibilities a. OCS will operate the pilot program under the following structure: i. The pilot program currently includes 180 converted Fayetteville residents actively subscribed to compost collection service. ii. OCS will continue to offer free trials and will serve all Fayetteville residents who sign up, with a maximum of 100 new trial participants admitted during any four -week period. iii. Trial participants will have four weeks to participate in the service and may convert to full-time compost collection at any time during or after the trial period. iv. New pilot participants will be selected for every four -week period thereafter throughout the pilot program term. b. OCS may add up to 480 pilot participants if resources and staffing permit, but never less than the quantity required by the formula above. c. OCS will provide four weeks of free biweekly scheduled food waste pickups for new pilot participants. d. OCS will provide a clean 5-gallon bucket at each pickup. e. OCS will collect buckets from pilot participants who do not convert to a full- time subscription at the end of four weeks. f. OCS is responsible for the removal of any non-compostable contamination from 5-gallon buckets prior to delivery to the Fayetteville Compost Facility. g. OCS shall provide sufficient staffing and resources to provide the sign-up form for pilot participants, website landing page, along with managing and fulfilling pilots through email communications and phone support. h. OCS will track all conversions through the pilot program along with food waste tonnage collected and results will be shared with the City of Fayetteville. i. Converted participants shall be permitted to keep food waste buckets from the pilot. 4. City of Fayetteville Rights and Responsibilities a. City will recruit pilot participants through marketing and educating Fayetteville residents and will direct interested households to the OCS sign-up form. b. The City of Fayetteville will market through social media no less than two social media posts every four weeks throughout the pilot program. c. City will provide two 5-gallon square buckets and labels for each pilot program participant. d. City will provide 65-gallon City food waste composting carts at the City composting facility for OCS to discard food waste from 5-gallon buckets. e. City will waive all dump fees for materials collected as part of this pilot program. f. City will dump and process food waste into compost windrows. g. City may provide pilot participants with processed food waste compost organized and scheduled at the City's discretion. Page 2 of 4 5. Compensation: In consideration for the Services to be performed by OCS, the City has agreed to pay OCS a total price of $5,000 to cover all costs and expenses incurred by OCS in performing the pilot, which includes a previous payment of $2,500.00 leaving a balance of $2,500.00 remaining to be paid through the extended pilot program. Payments will be remitted within thirty days of receipt of valid invoices. 6. Exclusions: a. Current customers of Ozark Compost & Swap within the Fayetteville Recycling & Trash Collection service area are excluded from participating in the pilot program. b. Ozark Compost & Swap is not required to use any 5-gallon buckets it has purchased for the pilot program. c. Pilot customers are not eligible for OCS compost givebacks. 7. Termination: Either party reserves the right to terminate the pilot program at any time by providing a 14-day notice to prior to termination. 8. Indemnification and Liability: OCS agrees to indemnify and hold harmless City, its officers, officials, members, agents, and employees from any and all causes of action, suits in law or equity, demands or claims, or from any liability of any nature arising out of the performance of the Services and from any obligations made by OCS or OCS's agents and/or employees. All risks for damages, theft, vandalism, and Acts of God in execution of the Services are the responsibility of OCS during any and all operations. 9. Compliance with Laws: OCS shall observe and comply with all applicable statutes, orders, ordinances and regulations of the City, the County of Washington, the State of Arkansas, the federal government and any other governmental authority having jurisdiction over the site or the Services. 10. No Waiver: No failure to exercise and no delay in exercising, any right, power, or remedy hereunder on the part of the City or OCS shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power, or remedy preclude any other or further exercise thereof or the exercise of any other right, power, or remedy. No express waiver shall affect any event or default other than the event or default specified in such waiver, and any such waiver, to be effective, must be in writing and shall be operative only for the time and to the extent expressly provided by the City or OCS therein. A waiver of any covenant, term, or condition contained herein shall not be construed as a waiver of any subsequent breach of the same covenant, term, or condition. 11.Amendments: Changes, modifications or amendments to the scope, price or fees dictated by this Agreement shall not be allowed without a prior formal amendment approved by the City and by the authorized agent of OCS in advance of the change. Page 3 of 4 AUTHORIZATION AND EXECUTION This Agreement shall be signed by the authorized representatives of Ozark Compost and Swap, LLC and the City of Fayetteville, Arkansas and shall be effective as of July 5, 2025. CITY OF FAYETTEVILLE, ARKANSAS Molly Rawn, Mayor ATTEST: OZARK COMPOST AND SWAP, LLC By: Ludew�aw Ricky Ludman, Owner WITNESS: r /// ".��GTY p,•rGy �FAYiREViLIE a - By: By: Kara Paxton, City Clerk -Treasurer Date: August 11, 2025 Date: Page 4 of 4