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HomeMy WebLinkAbout136-82 RESOLUTION• • RESOLUTION NO. /36-102- A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A LETTER OF INTENT TO THE NORTHWEST ARKANSAS RESOURCE RECOVERY AUTHORITY REGARDING A SOLID WASTE DISPOSAL AGREEMENT. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS: That the City Manager is hereby authorized and directed to execute the letter of intent attached hereto marked Exhibit "A" and made a part hereof. 1982. • • PASSED AND APPROVED this 0.34) day of /I/216/E/M25E�', 0..tz e A/ CITY CLERK APPROVED: 441te MAYOR , • CONTRACT This contract executed this • day of 19 , between NORTHWEST ARKANSAS SOLID WASTE AUTHORITY (an authority organized and existing under the provisions of the Arkansas Joint County and Municipal Solid Waste Disposal Act, Act 699 of 1979), hereinafter called "the Authority", and the CITY OF FAYETTEVILLE, ARKANSAS, (a municipal corporation and city of the first class organized and existing under the laws of the state of Arkansas), hereinafter called "the City". WHEREAS, the Fayetteville Board of Directors has determined that provision must be made for the sanitary disposal of solid waste generated within the city, both now and in the future; and, WHEREAS, the Fayetteville Board of Directors has determined that, due to the high fixed cost of an environmentally, satisfactory solid waste disposal method, there would be a lower cost per person if the costs of a single high capacity system are spread over the populations of a number of cities and towns in the northwest Arkansas area; and, WHEREAS, the Authority is willing and able to design, construct, operate and maintain an environmentally satisfactory, efficient, and economical high-capacity solid waste disposal system if a sufficient number of political subdivisions are committed to its use and support; and, WHEREAS, the Fayetteville Board of Directors has considered the system proposed by the authority and has found that said system will afford the citizens of Fayetteville a safe, sanitary and environmentally desirable means for the disposal of solid wastes. NOW, THEREFORE, the Authority and the City hereby agree as follows: -2- • • Section 1. OBLIGATION OF AUTHORITY. For a period of twenty years beginning on the commercial operations date, as hereinafter defined, the Authority shall maintain and operate a safe, sanitary, and environmentally satisfactory solid waste disposal system; and, the Authority shall accept and dispose of all solid waste generated within the City which is delivered to said system and for which the tipping fee hereinafter prescribed is paid. Section 2. OBLIGATION OF CITY. (a) For the aforesaid twenty-year period, the City shall (i) deliver all solid waste collected by or on behalf of the City to the Authority's solid waste disposal system for disposal, (ii) to the extent it may lawfully do so, require by ordinance or other legal means that all solid waste collected within the corporate boundaries of the City by any person other than the City be delivered to the Authority's solid waste disposal system for disposal; and (iii) to the extent it may lawfully do so, prohibit by ordinance or. other legal means the disposal, treatment or other handling of solid waste within the corporate boundaries of the City by persons other than the Authority. (b) In consideration of the Authority disposing of all solid waste delivered to the Authority by or on behalf of the City, the City agrees to pay to the Authority such tipping fees as are from time to time established by the Authority pursuant to section 4 hereof. Section 3. DEFINITIONS For the purpose of this contract, the following words and phrases shall be defined as follows: (a) Solid waste means any garbage, refuse, sludge from a waste treatment plant, water supply treatment plant, or air pollution control facility and other discarded material, -3 - including solid, liquid, semi-solid, or contained gaseous material resulting from residential, industrial, commercial, mining and agricultural operations, and from community activities, but exclusing hazardous waste as defined pursuant to.the Resource Conservation and Recovery Act of 1976 (P. L. 94-580) and 40 CFR Part,261. (b) Processible wastes means all garbage, trash, rubbish, refuse and offal, the burning of which in equipment operated by the Authority will not violate federal or state air pollution control statutes or regulations promulgated thereunder. (c) Nonprocessible wastes means solid wastes which, because of their quantities or characteristics, are not compatible with the operation of a resource recovery facility. Included are nonburnable construction material, demolition debris, nonburnable commercial and industrial wastes, and hazardous wastes as defined in 40 CFR Part 261. (d) Commercial Operations date means 12:01 a.m. on the first Monday following acceptance of a resource recovery facility by the Authority. (e) Authority's system means a solid waste resource recovery and disposal system consisting of a resource facility wherein processible waste is burned for energy and/or materials recovery; one or more sanitary landfills for disposal of nonprocessible wastes, residues from the facility, and, on an emergency basis, processible wastes; any transfer stations which may be developed; and any ancillary facilities necessary or convenient to the entire recovery and disposal system. (f) Force majeure means an act or event beyond the reasonable control of the party relying thereupon as justi- fication for failure to perform its obligations under this Agreement including but not limited to natural disasters, fire, strikes, accidents (not caused by the relying party's deliberate or negligent action or failure to act), floods, • -4- • explosion, vandalism, riots, war, sabotage, or State or Federal regulations. Section 4. ESTABLISHMENT OF FEES. (a) Tipping fees established by the Authority shall be in. accordance with the rate covenant in the Trust Indenture executed to secure the bonds issued to finance construction of the Authority's system. (b) Tipping fees charged shall be uniform at all facilities where waste is received by the system. (c) Tipping fees for different types of waste may be different to reflect increased costs and/or operational difficulties associated with the different waste types. (d) Tipping fees shall be sufficient to make the Authority's system economically self sustaining, that is, tipping fees, when combined with other sources of income to the system, including but not limited to revenues from the sale of recovered energy and/or materials, and interest income earned on any bond reserve funds, shall essentially equal the expenses of the system, including but not limited to debt service requirements, including funding of any required reserve funds, operation and maintenance costs, administrative costs, and equipment reserves. (e) Tipping fees shall be periodically reviewed and revised as required to maintain the system in an economically self sustaining mode, as defined herein; but, tipping fees shall not be raised without sixty days prior written notice to the City, addressed to the City Manager, setting out the new fees to be implemented. Section 5. ADMINISTRATION. (a) The Authority's System shall be governed, controlled and administered solely by and through the Northwest Arkansas Solid Waste Authority pursuant to the terms of this agreement. • • • (b) The Authority shall promulgate specific rules and procedures for the use and workings of the Authority's system. Such rules shall be reviewed and evaluated annually by a rules committee composed of the mayor or city manager of each city or town using and supporting the Authority's system and the county judge for each county using and supporting the Authority's system. Such rules shall govern: (1) which types and quanities of solid waste shall be delivered to and accepted by the resource recovery facility. (2) which types and quantities of solid waste shall be delivered to and accepted by the sanitary landfill(s). (3) which types and quantities of solid waste shall be delivered to and accepted by the transfer stations, if any. (4) the days and hours when the Authority's system will be open to receive materials. (5) all procedures for billing and collection of tipping fees. (6) all other aspects of the management and control of the Authority's system. (c) All financial record keeping and accounting for monies and funds related to the Authority's system shall be done in accordance with generally accepted accounting principles and procedures. Such financial records shall be audited annually by an independent Certified Public Accountant or Certified Public Accounting firm. Financial records of the Authority's system shall be open and available for inspection by the City at any time during normal business hours. (d) If, during the term of this agreement, the Authority is required to expend money in excess of amounts in reserve or is required to issue additional bonds for the purpose of continuing the operation of an environmentally satisfactory -6- • solid waste disposal system, such additional expenditures or indebtedness shall become a factor in determing the tipping fees to be charged hereunder. The question of whether to expend such additional monies or incur additional indebtedness for the Authority's system shall be at the sole discretion of the Authority. (e) All decisions and determinations regarding plant fees, operating budgets, wages and salaries, equipment and supply purchases, and all other expenses of or charges by the Authority's system shall be at the sole discretion of the Authority. (f) All land and equipment and all other property previously or hereafter acquired by for Authority to establish, operate and maintain the Authority's system shall be the sole property of the Authority and the City shall not, by virtue of this agreement, have or acquire any proprietary right, title or interest therein. The City shall not by virtue of this agreement, obtain, acquire or succeed to any rights or entitlements other than those expressly set out and provided for herein. Section 6. TERMINATION AND LIMITS OF LIABILITY. (a) This contract and agreement is made and entered into in accordance with the provisions of Act 699 of 1979, insofar as the provisions of that Act are applicable, and may not be terminated prior to expiration of twenty years after the Commercial Operations date except by the mutual consent of the parties hereto. (b) Neither party to this agreement shall be liable to the other for damages, injury or expenses due to delay or nonperformance of requirements of this agreement due to a force majeure occurrence. However, the party experiencing the force majeure occurrence shall remedy the situation with reasonable dispatch. -7- • IN WITNESS WHEREOF, the parties hereto have approved and caused the execution of the aforesaid covenant, contract and agreement, to wit: CITY OF FAYETTEVILLE, ARKANSAS Pursuant to and by virtue of Resolution no. adopted by the Fayetteville Board of Directors on the day of , 1982. ATTEST: By MAYOR OF FAYETTEVILLE, ARKANSAS CITY CLERK STATE OF ARKANSAS, COUNTY OF WASHINGTON, ss. On this day of , 1982, before me, • the undersigned, a Notary Public in and for the State of Arkansas, personally appeared and , to me personally known, who being by me duly sworn, did say that they were the Mayor and City Clerk, respectively, of the City of Fayetteville, Arkansas, a municipal corporation; that the seal affixed thereto is the seal of said municipal corporation; that said instrument was signed and sealed on behalf of said municipal corporation by authority of its City Council; and that the said and as such officers, acknowledged the execution of said instrument to be the voluntary act and deed of said municipal corporation, by it and by them voluntarily executed. My commission expires: Notary Public in and for the State of Arkansas -8- • NORTHWEST ARKANSAS SOLID WASTE AUTHORITY Pursuant to and by virtue of the Northwest Arkansas Solid Waste Authority Resolution No.,` -y adopted on the F = ?day of. ,.._.::,.;_ 1982. By Director ATTEST: Secretary STATE OF ARKANSAS, COUNTY OF WASHINGTON, ss. On: this day of. , 1982, before me, the undersigned, a Notary Public in and for the State of Arkansas, personally appeared and to me personally known, who, being by me duly sworn, did say that they were the Director and Secretary, respectively, of the Northwest Arkansas Solid Waste Authority; that the seal affixed thereto is the seal of said Authority; that said instrument was signed and sealed on behalf of said Authority by authority of its ; and that the said and as such officers, acknowledged the execution of said instrument to be the voluntary act and deed of said Authority, by it and by them voluntarily executed. My commission expires: Notary Public in and for the State of Arkansas • �-J FAYETTEVILLH1, ARKANSAS P. 0. DRAWER F Mr. Louis Watts Northwest Arkansas Resource Recovery Authority P.O. Box 745 Springdale, AR 72764 72701 15011 521.7700 November 11, 1982 Re: Solid Waste Disposal Contract Letter of Intent Dear Mr. Watts: The City of Fayetteville has reviewed the enclosed Solid Waste Disposal Agreement. Having made such review, the City of Fayetteville intends to enter into necessary agreements and adopt such ordinances as it may lawfully do so to adequately control the collection of residential, commercial and industrial waste generated in the City and to enter into necessary agreements and adopt such ordinances as it may lawfully do so to be able to direct the disposal of solid waste at a facility to be identified. The City of Fayetteville intends to commit a minimum of 30,000 and a maximum of 37,500 tons per year of acceptable solid waste to the facility. The City also intends to contribute any additional amounts above the maximum that is collected within the City to the facility. We continue to support the efforts of the Northwest Arkansas Resource Recovery Authority in its effort to secure a Resource Recovery facility and look forward to the construction of a facility in Fayetteville. DLG/djm Enclosure Sincerely, Donald L. Grimes City Manager