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HomeMy WebLinkAbout64-97 RESOLUTIONA RESOLUTION APPROVING AMENDMENT NO. 1 TO THE CONTRACT WITH FULTON SANITATION SERVICES, INC. FOR PROCESSING AND MARKETING THE CITY'S RECYCLABLES. BE IT RESOLVED BY THE CITY COUNICIL OF TIIE CITY OF FAYETTEVILLE, ARKANSAS: Section l. The City Council hereby approves Amendment No. I to the contract with Fulton Sanitation Services, Inc. for processing and marketing the City's recycables. A copy of the contract amendment is attached hereto marked Exhibit "A" and made a part hereof. RESOLUTION NO.64-97 PASSED AND APPROVED this lst day of July , 1997.lvLlt^ j APPROVED SCANNED 1/]/w .'/' \ ATTEST: j!,tll/ \ ,a-\ By: Hanna, Mayor\.' Traci Paul, City Clerk + \( 11 AMENDMENT 1 Recyclables Processing C Marketing Contract EXHIBIT A This is Amendment 1, dated / st day of ,T c, / t/ , lg-lJof the Contract originally executed on the 28th day of March, 1996, by and between the City of Fayetteville, Arkansas, hereinafter called the "City" and Fulton Sanitation Services, Inc. Hereinafter called "Fulton". Section 12. Pricing: Fulton guarantees to the following prices for source separated materials delivered to Fulton Fultol will pay to the City the above listed guaranteed rate per ton for each source separated material delivered to Fulton. Additionally, Fulton agreg! to pay to the City 50% of the market rate over and above the -base market rate per ton listed above. Fulton-agrees-to provide collection services of the two plastic roll-offcontainers owned by the City and the Paper roll-off container owned by Fulton, all located at the Fayetteville City Shop Facility, on an as needed basis at no charge. Furthermore, Fulton guarantees the following processing rates, as related to the old newspaper (ONP) market rate, for the City's commingled curbside recyclables delivered to Fulton: Materials Aluminum Old Newspaper (ONP) Old Corrugated Cardboard (OCC) Mixed Office Paper Sorted White Ledger PET HDPE - Clear HDPE - Colored Glass (Clear, Browfr, & Green) ONP Market Rate/Ton $ 0.00- 74.99 7s.00 - 99.99 100.00 - 124.99 125.00 - r49.99 150.00 - t74.gg 17 5.00 and Up Guaranteed Rate/Ton s62s.00 10.00 15.00 20.00 90.00 80.00 100.00 90.00 0.00 Base Market Rate/Ton s625.00 s5.00 s0.00 iid%% 250.00 300.00 200.00 0.00 Per Ton Adjustment $ 17.00/ton 8.5O/ton 0.00/ton 8.5O/ton 17.00/ton 25.50/ton Prices can be renegotiated and.agreed upon by the-City and Fulton in advance of any one (l) year extensions, but any changes must be tied to the annual change in the Consumer Price Index as published by the U.S. Bureau of Labor Statistics urd to thE market prices as published in Waste Age's Recycling Times. IN WITNESS WHEREOF, the parties hereto have executed Amendment I as of the day and year first above wriffen. Description Charge to City of Fayetteville Charge to City of Fayetteville No ChargeA.,lo Pay Pay to City of Fayetteville Pay to City of Fayetteville Pay to City of Fayetteville By A f Ftt f t Mayor \ (Seal)) Frr Sanitation Services-Inc. By q'7 (Secretary) G.nle sC TNAN (Title)(Witness) (Address and Zip Code) ir t ;l a SU]IRAY ERUICES l]lc. Docember l, lW WillieNewman City of Fayefficnille Recychng@ 113 W'. Mountain St Fayettwille, AR 72701 DearMr. Neuman: Enclose4 pleasc findthe signdRccsrclablc Proccssing andlirla*ctingContact, rrytich was delivered to me in Norrcmber. I didn't date the coffiact becarrsc I'm not surc ufr€n this was apovod- Pleasc seodme acogf after all signaturcs are execubd" If you have any qusstions, pleasc don't h$itatc to call. Sinccrely, Dale Stevencr Genemal l\,Ianagpr DS:kd ^,U Ji,,, f lro p t e// /'/' //t't'n?/ ^ ./a// f f //r,', t?/ /Yo' / - il 'l/,'e s tt, A USA WASTE SERVICES CO @ 104 N. Old Missouri Road, P. O. Box 1310, Springdale, AR 72765-1310 (501)751-7024 (501)751-7924Fax To:Fayetteville City Council Fred Hanna, Mayor Kevin Crosson, Public Works Director Cheryl Zotti, Environmental Affairs Administrator January 25, 1997 Recyclables Processing and Marketing Contract Thru: From: Date Re: Fulton Sanitation, Inc. has submitted a request to amend our contract for their services to process our curbside recycling material. Amendment I represents a70Yo increase (from $10 per ton to $17 per ton) in the fee charged to the City for our curbside recyclable materials delivered to Fulton. This is the third year of a five-year contract. During the 1996 contract negotiations, Fulton requested a45%o increase in this processing fee, but staffwas able to defer any such request until 1997. This contract includes expenditures for the processing of our curbside recyclable materials and revenue for the marketing of our source separated recyclable materials. ln 1997 , we project delivering 2, I I 5 tons of curbside recyclable material to Fulton for processing. This proposed amendment will increase the yearly processing fee paid to Fulton by $14,805. The following itemizes the expenditures and revenues associated with this contract. Year l 995 t996 t997 Processing Fee $ 10.00/ton $ 10.00/ton $ 17.00/ton Commingled Blue Bag Expenditures - $ 14,289 19,054 3 5,955 Source Separated Revenue $ 5,791 I l,l6l 0t Net Exoense - $ 8,498 7,993 3 5,955 The costs associated with the previous contracts were at the Mayor's approval level. As a matter of policy, we submitted these contracts to the Environmental Concerns Committee for their approval prior to obtaining Mayor Hanna's approval. The combination of Fulton's requested processing fee increase, an increase in the quantity of recyclables collected, and staffprocessing source separated materials in-house has resulted in this amendment requiring City Council approval. Attached, please find the following documentation: the requested amendment to the processing and marketing contract, the formal request for the processing fee increase as presented by Fulton Sanitation, and the 1996 contract with Fulton for the processing and marketing of our recyclable materials. I, as well as a representative from Fulton Sanitation, will be available at your agenda session to answer any questions you have in regards to this item. If you have questions prior to the agenda session, please call me at 444-3498. Center ' We will be processing all of our source separated materials, except glass, at our Recycling a TTF]ITI-,LE TttE C|TY OF FAYETTEVI[tE, ARKANSAS DEPARTMENTAL CORRESPO NDENCE To:Fred Hanna, Mayor Thru:Kevin Crossotr, Public Works From: Cheryl Zotti, Environmental Affairs Administrator Date:March 18, 1996 Recyclables Processing and Marketing Contract with Fulton Sanitation, Inc. Staffis requesting your approval on the second year of a five year annually renewable contract with Fulton Sanitation, Inc. for the processing and marketing of the City's curbside and source separated recyclable materials. This contract includes expenditures for the processing of our curbside recyclable materials and revenue for the marketing of our source separated recyclable materials. Based on the City's 1995 fiscal year, the expenditures for processing our blue bags exceeded the revenue from our source separated materials by $7,054. The following is an itemization of the expenditures and revenues associated with the 1995 contract. Expenditures: Recycling Processing Costs s12,845 DirectorhL Re: Revenues: Glass Recycling Aluminum Recycling Newspaper Recycling HDPE Recycling Total Revenues Total Costs of Contract $ 644 4,272 83r 44 5,791 $_7,054 The maximum costs of the 1996 contract will be similar to the 1995 contract; however, staff has enhanced the revenue potential and limited the potential expenditures by linking each commodity to the current market prices through contract renegotiations. The 1996 contract will contain the same fixed prices for our source separated recyclable materials, except for aluminum (up $175 per ton to $625) and glass (down $ l2 per ton to $0). The revenue enhancements for source separated materials appear when the City receives additional revenue at a rate of 50oh of the market price over and above the base per ton market rate as specified in the contract. The following uses aluminum as an example of this revenue structure: Current Market Price/Ton $ 1,000 Fixed Rate for Aluminum/Ton Base Market Rate/Ton $ 450 City's 50% share of Market Rate over Base Market Rate($ 1,000-$450:$550; $550* 50%) Total Revenue for City at Current Market Rate/Ton $ 62s s 27s s e00_ Furthermore; the expenditures for the processing of our blue recycling bags have been limited by linking the required processing fees to the per ton market rate of the largest commodity collected in the City's curbside recycling program, Old Newspaper (ONP). The following pro-rated processing fee schedule is written into the 1996 contract. ONP Market Rate/Ton $ 0.00 - 74.99 7 5.00 - 99.99 100.00 - 124.99 125.00 - 149.99 1 50.00 - 17 4.99 17 5.00 and IJp Description Charge to City of Fayetteville Charge to City of Fayetteville Pay to City of Fayetteville Pay to City of Fayetteville Pay to City of Fayetteville Per Ton Adjustment $ 10.00/ton 5.00/ton 0.00/ton 5.00/ton 10.00/ton 15.00/ton Staffhas worked diligently to obtain a contract that benefited the City when the recycling markets are strong and protected the City when the recycling markets are low. Staff feels this contract is representative ofour contract negotiation goals and support its approval. Ifyou should have any questions, please contact me at extension 498 at your earliest convenience. /,/ 3 STAFF REV'IEW FORM xxx AGENDA REQUEST CONTRACT REVIEW GRANT REVIEW For the Council meet,ing of MICROFITMED FROM: Cherv1 ZotL:,So1id Waste Public Works Name Divi s ion Department, ACTTON REQIIESTED: Approval of Recyclables Processing and Marketing Contract with Fu1ton Sanitation Servi-ces, Inc . COST TO CITY:Plase see attached memo. $ 110 ,Lg2 Category/ Proj ect Budget 23 ,53 5 Funds Used to Date $ 86,657 Remaining bal-ance S erv i-c es & Charses Cost of this request 5500-5060-531 6-05 Category/ Proj ect Name Recyc 1 lng AccounE Number Program Name Solid Waste Proj ect Number Fund BTTDGET REVIEW: (Budgeted Item 03 Budget Budget Adj ustment Att,ached L Administrative Services Director , CONTRA,CTIGRAr{T/LEASE REVTEW : 3 Zt-?o Citv At PA k 3-a5 j-t/ q L Date Date Date GRANT AGENCY: ADA Coordinator Date Purchasing Officer Internal Auditor Date y1firn-Ml' STAFF RECOMMEIIDATION : \ rtment Director Admin. Se -kl3-1 v Date Date Cross Reference New Item: Yes No Prev Ord/Res #: J Mayor ?_L)_1A Date 1bfitvJ_J_ Date Orig Contract, Dat,e : I ,L RECYCLABLES PROCESSING & MARKETING CONTRACT BETWEEN THE CITY OF FAYETTEVILLE AND FULTON SANITATION SERVICES, INC. This CONTRACT executed on this prlA day of Nta ra/ , \g%,by and between the City of Fayetteville, Arkansas, hereinafter called the "City" and Fulton Sanitation Services, Inc. hereinafter called "Fulton". WITNESSETH: WHEREAS, Fulton is engaged in the operation of a recycling processing and marketing facility near Fayetteville, Arkansas, and has been the successful bidder for the processing and marketing of certain city collected recyclables; and WHEREAS, it is the intent of this contract to formulate the terms and conditions under which the City may utilize the facility operated by Fulton. NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained herein, the parties hereto mutually agree as follows: L Fulton agrees to fumish the City with a facility at their Rogers offices location to which the City can bring its collected recyclables to be processed and marketed by Fulton. 2. Fulton is responsible for all equipment, labor, and materials required for processing and marketing the materials delivered by the City. All costs for handling the materials are included in the prices listed below. 3. Fulton will provide proof that the recyclable materials supplied to it by the City have been sold for the purpose of recycling or reuse as defined in Article II. ARTICLE I GENERAL PROVISIONS ARTICLE II SPECIAL PROVISIONS l. General Description: The work to be performed under this contract consists of providing processing and marketing of city commingled and source separated collected recyclables. The recyclables to be processed are: Aluminum food & beverage cans Glass (clear, amber, green) PET HDPE - Clear HDPE - Colored TiilSteel Cans Paperboard/Chipboard Newspaper Corrugated Cardboard Other materials listed in bid, &S agreed upon Upon delivery of these materials to Fulton, Fulton will provide such personnel and equipment as is required to process these materials for market. Fulton will market these materials for use in making new products or for other innovative uses as agreed upon in advance. 2. Term: The term of this contract will be for a period beginning March 26, 1996 and running through December 31, 1996. Further, upon mutual written agreement of the parties and budget approval, this contract may be renewed for up to three (3) additional one (l) year terms. 3. Acceptance Provisions: Recyclable materials will be transported by the City directly from the City's drop-off stations and/or curbside programs to Fulton's facility. Fulton agrees to accept recyclable materials transported by the City directly from the city drop-off stations and curbside routes. The City will malce reasonable efforts to inform the public of the need to keep contaminates out of the recyclable materials, but the City does not guarantee the quality of the materials delivered. Should an entire load of material be unrecyclable, such as a load of wet newspaper, the City will pick up and dispose of that material or pay for the disposal of that material. The determination that a load is unrecyclable will be mutually agreed upon by the City's Environmental Affairs Administrator, or a designated representative, and a representative of Fulton. 4. Time of Operation: Fulton will accept materials from the City between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday. Materials may be delivered at other times if agreed upon by Fulton and the City. 5. Access: Fulton guarantees easy, safe and efficient access to its unloading area by all City recycling vehicles. 2 6. Interruptions in Serwice: The City must be able to deliver materials to Fulton in order to keep its recycling program operating. It is the sole responsibility of Fulton to provide the City with a safe, efficient, and easily accessible area to dump materials; regardless of equipment, employee, or other problems. Fulton agrees that if a truck with a load of recycling material has to wait 20 minutes or longer, a fifty dollar ($50) intemrption fee will be assessed by the City. Repeated failure to have trucks dump within 20 minutes will constitute a breach of this contract. 7. Weighing of Materials: Fulton will provide a certified scale for weighing all materials brought by the City. Should the primary scales not be functioning, Fulton must provide an altemative method for obtaining the weights of the City's recycled materials. The altemative method must be safe, efficient, effective and at no cost to the City. Notice of the need to use the alternative method must be given with as much advance notice as possible by calling 575-8398. 8. City Indemnity: Fulton shall guarantee to hold harmless and indemnify the City from any and all loss, damage, claims, suits, judgments, and recoveries which may be asserted, made or may arise or be had, brought or recovered against the City by reason of Fulton's operations and it shall immediately appear and defend the same at its own cost and expense. 9. Sub-Contracts: No assignment or subletting of all or any portion of the work under these specifications will be permitted without approval of the City. 10. Competency of Employees: All persons employed shall be competent and skilled in the performance of the work to which they are assigned. Failure or delay in the performance of this contract due to Fulton's inability to obtain employees of the number and skill required shall constitute a breach of this contract. 1 l. Insurance: Fulton shall provide and maintain in full force and effect during the entire term of this contract regular Public Liability Insurance with the City as an additional insured, providing for a limit of not less than $100,000.00 for all damages arising out of bodily injuries to or death of one person and subject to the same limit for each person a total limit of not less than $300,000.00 for all damages arising out of bodily injuries to or death of two or more persons in any one accident; and regular Property Damage Liability Insurance providing for a limit of not less than $75,000.00 for all damage arising out of injury to or destruction of property in any one accident, and, subject to that limit per accident, a total limit of not less than $100,000.00 for all damages arising out of injury to or destruction of property during the policy period. Fulton shall provide and maintain in full force and effect during the entire term of this contract Workmen's Compensation Insurance as shall protect it from claims for damage for personal injury, including accidental death, which may arise from operations under this contract, whether such operation be by itself or anyone directly or indirectly employed by it as required by state law. Fulton shall file a copy of such policies with the Purchasing Officer of the City upon initiation of service. J 12. Pricing: Fulton guarantees to the following prices for source separated materials delivered to Fulton: Materials Aluminum Old Newspaper (ONP) Old Corrugated Cardboard (OCC) Mixed Office Paper Sorted White Ledger PET I HDPE - Clear HDPE - Colored Glass (Cleat, Brown, & Green) ONP Market Rate/Ton $ 0.00 - 74.99 7 5.00 - 99.99 100.00 - 124.99 125.00 - 149.99 150.00 - 174.99 17 5.00 and Up Guaranteed Rate/Ton $625.00 10.00 I 5.00 20.00 90.00 80.00 100.00 80.00 0.00 Base Market Rate/Ton $625.00 5 5.00 50.00 85.00 120.00 250.00 300.00 200.00 0.00 Per Ton Adjustment $ 10.00/ton 5.00/ton 0.00/ton 5.00/ton 10.00/ton I 5.00/ton Fulton will pay to the City the above listed guaranteed rate per ton for each source separated material delivered to Fulton. Additionally, Fulton agrees to pay to the City 50% of the market rate over and above the base market rate per ton listed above. Fulton agrees to provide collection services of the two plastic roll-off containers owned by the City and the Paper roll-off container owned by Fulton, all located at the Fayetteville City Shop Facility, on an as needed basis at no charge. Furthermore, Fulton guarantees the following processing rates, as related to the old newspaper (ONP) market rate, for the City's commingled curbside recyclables delivered to Fulton: Description Charge to City of Fayetteville Charge to City of Fayetteville Pay to City of Fayetteville Pay to City of Fayetteville Pay to City of Fayetteville Prices can be renegotiated and agreed upon by the City and Fulton in advance of any one (1) year extensions, but any changes must be tied to the annual change in the Consumer Price Index as published by the U.S. Bureau of Labor Statistics and to the market prices as published in Waste Ase's Recvclins Times. 13. Curbside Recycling Audit: Quarterly recycling audits will be performed by Fulton on the City's curbside recycling material collected for a one week period of time. These audits will occur in the months of March, June, September, and December. Fulton will be responsible for ensuring that the City's recyclable stream will be kept separate from other recyclable materials processed at Fulton. Fulton will empty all sorting bins prior to beginning the quarterly recycling audits. Fulton will submit a recycling audit report that documents the recycling audit including results of the audit, quarterly report for each material as it relates to each audit, copies of each gate receipt for the 4 materials delivered for the recycling audit, signed shipping invoices (bills of lading) or freight bills as proof of delivery for each material Fulton markets for the City during the previous quarter, submit the name and point of contact for each company that receives any of the City's recyclable materials Fulton markets for the City, documented market prices for each shipping invoice, and labor and equipment hours and expenses for each quarterly waste audit. 14. Billing: Billing and/or payment will be made to the City on a monthly basis. Fulton shall transmit to the City no later than the tenth day of each month a check for payment and/or a statement of charges for services provided under this contract for the previous month. Each billing or payment to the City will be accompanied by copies of delivery receipts which reference the corresponding rveigh tickets. Included rvith each monthly statement will be documented market rates for the previous month, the current month, and if possible the upcoming month. 15. Payment: After verification of charges, the City of Fayetteville will make payment to Fulton within thirty (30) days of receipt of the invoice. 16. Notices: All inquiries concerning this matter shall be directed to Envirorunental Affairs Administrator City of Fayetteville I l3 West Mountain Street Fayetteville, AR 72701 Phone (501) 575-8398 Fulton Sanitation Services, Inc Randy Holcomb 3507 North Arkansas Rogers, Arkansas 727 56 Phone (501) 7 5l-7024 17. Holidays: The City of Fayetteville will not be open for business on the following Holidays: New Year's Day President's Day Memorial Day Labor Day Veteran's Day Thanksgiving Day Christmas Eve (determined by Mayor if on weekend) 4th of July F riday aft er Thanksgtving Christmas Day The City will not deliver materials to Fulton on these days unless agreed upon, in advance, by both parties. 18. Other: The City retains ownership of all materials it collects up to the point of discharge at Fulton's facility. 19. Nonexclusive: The parties agree that this contract is not exclusive and that the City reserves the right to process the aforementioned recyclable material by alternative methods and/or use such materials to explore new types of markets or processing and marketing the recyclable materials at City Facilities. 20. No Minimum: The City makes no guarantee in regards to providing a minimum amount of 5 a material to Fulton. 21. Cancellation: Either party may cancel this contract after 30 days written notice to the other. Upon cancellation neither party shall have further obligation to the other except that any outstanding charges incurred prior to the cancellation of this agreement be paid in full. IN WITNESS WHEREOF, the parties hereto have executed this CONTRACT as of the day and year first above written. By: A t Qity t Mayor.\ F'r rlton Serviees Ine (Contractor) .l (Secretary) S =*e?-A\ \N Nfl(iE|?. (Witness)(Title) and Zip Code) S 6 ,\l U \1\ niH::, -W:,:.*,