Loading...
HomeMy WebLinkAbout119-89 RESOLUTIONFAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS RESOLUTION 119-89 SHERRY L. THOMAS, CITY CLERK This resolution was approved at the November 21, 1989 Board of Directors meeting. However, there was no resolution every drafted. Attached is the contract that was_approved as well as a copy of the Board minutes from that meeting. Sherry ;L.(/Thomas City Clerk 113 WEST MOUNTAIN 72701 501 575-8323 RECYCLABLES PROCESSING & MARKETING CONTRACT BETWEEN THE CITY OF FAYETTEVILLE, ARKANSAS AND ABILITIES UNLIMITED 02 P This CONTRACT executed on this Wladay of 19- f by and between the City of Fayetteville�r annsas hereinafter called the "City" and Abilities Unlimited of Northwest Arkansas, Inc., hereinafter called "Abilities". WITNESSETH: WHEREAS, Abilities is engaged in the operation of a recycling processing and marketing facility in 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 Abilities. NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained herein, the parties hereto mutually agree as follows: ARTICLE I GENERAL PROVISIONS 1. Abilities agrees to furnish the City with a facility at 1102 Happy Hollow Rad, Fayetteville, Arkansas to which the City can bring collected recyclables to be processed and marketed by Abilities. ARTICLE II SPECIAL PROVISIONS 1. General Description: The work to be performed under this contract consists of the processing and marketing of city collected recyclables. The recyclables to be processed are: aluminum beverage cans, color -separated glass (clear, amber, green); and newsprint. Upon delivery of these materials to Abilities, Abilities will provide such personnel and equipment as is required to process these materials for market. Abilities will market these materials Eor use in products using recyclables. 2. Term: The term of this contract will be for a period of one (1) year commencing on December 1 1989 with an option for one (1) year renewal by the City. 3. Acceptance Provisions: Abilities will accept the following materials delivered to their facility in the condition noted: Aluminum beverage cans - The price quoted will be for dry, noncontaminated aluminum cans delivered and unloaded on Abilities' dock and placed in containers provided by Abilities Unlimited. Glass - The price quoted will be noncontaminated, color separated glass, unloaded on Abilities' dock and placed in containers provided by Abilities Unlimited. Newsprint - Newsprint will be accepted at no cost to the City if it is uncontaminted and gradable. The paper will be unloaded by the City in a trailer provided by Abilities Unlimited. The following definitions will apply: Contamination: defined as liquid, trash, junk or garbage which would cause recyclable materials to have a reduced value. In aluminum cans liquids and foreign matter such as cigarette butts would be considered contamination. Glass will be contaminated if plastic rings and lids are not removed or if it contains food particles. Burned glass will not be accepted. Gradable: refers to newsprint. The paper must be clean. All slick material, metal staples, glue or other foreign material must be removed before the paper is loaded. 4. Time of Operation: Abilities will accept materials from the City between the hours of 8:00 a.m. and 3:30 p.m., Monday through Friday. 5. Distance: The processing facility shall be located at a road distance of not more than eighteen miles from the intersection of College Avenue and Maple Street in Fayetteville. 6. Access: Abilities guarantees safe interior access to its unloading area by all City vehicles. 2 7. City Indemnity: Abilities 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 Abilities' operations and it shall immediately appear and defend the same at its own cost and expense. 8. Sub -Contracts: No assignment or subletting of all or any portion of the work under these specifications will be permitted without approval of the Board of Directors of the City. 9. Competency of Employees: All workmen employed shall be competent and skilled in the performance of the work to which they may be assigned. Failure or delay in the performance of this contract due to Abilities' inability to obtain workmen of the number and skill required shall constitute a default of the contract. 10. Insurance: Abilities 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. Abilities 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. Abilities shall file a copy of such policies with the Purchasing Officer of the City upon initiation of service. 11. Payment: All payments will be based on unit prices (by the ton) for each commodity processed. Monthly billings will be based at first on the prices quoted in Bid #89-50 for the effective period of the prices from the date of the bid opening (November 2, 1989). Those prices and time periods are as follows: Aluminum - $600.00 income to the City per ton for a period of 60 days. • Color -separated glass - $20.00 income to the City per ton for a period of 120 days. Newsprint - No cost or income to the City for a period of 120 days. Once the effective dates for the quoted bid prices are passed, the cost or income per ton of each material will be based on the local market price paid to the general public at Abilities Unlimited Recycling Center. Abilities will furnish a delivery receipt detailing type of material delivered and its local market price for that day to the City employee making the delivery. Abilities guarantees that the income paid to the City for sellable materials will be no less than 20% of the price paid by the Broker/Agent to Abilities for each type of recyclable material. Each billing or payment to the City will be accompanied by documented weighings by Abilities of material delivered by the City to Abilities. Weighings must make reference to the appropriate delivery receipt. 12. Zero or Negative Net Recovery: In the event net recovery (market value less cost of processing which cost shall include purchase price of commodity, labor, overhead and administrative expenses attendant thereto) of any commodity is zero or negative, the City agrees to pay to Abilities an amount sufficient to allow Abilities to dispose of such commodity. The price payable by the City for such disposal shall be negotiated and agreed upon between the City and Abilities on the first Monday of each month in which such zero or negative market value occurs. Should no agreement be reached, the City may choose not to utilize Abilities for the recycling of the commodity without penalty. 13. Billing: Billing and/or payment will be made to the City on a monthly basis. Abilities shall transmit to the City no later than the fifth day of each month a check for payment and/or a statement of charges for services provided under the contract for the previous month. After verification of charges, the City of Fayetteville will make payment to Abilities within thirty (30) days of receipt of the invoice. Income due the City by Abilities on certain commodities may. upon prior approval of the City, be applied towards charges the City owes Abilities on other commodities. 14. Notices: All inquiries concerning this matter shall be directed to: Mr. Scott A. Smith Recycling Coordinator Solid Waste Management Division City of Fayetteville 113 West Mountain Fayetteville, AR 72701 4 • Mr. Leslie C. Kemp President Abilities Unlimited of Northwest Arkansas, Inc. 1102 Happy Hollow Road Fayetteville, AR 72701 15. Holidays: Abilities will not be open for business on the following Holidays: July 4, and either the day before or after; Labor day; Thanksgiving Day and the day after; Christmas Day; New Year's Day; Washington's Birthday; Good Friday; and Memorial Day. 16. Other:. The City retains ownership of all materials collected from its drop-off stations up to the point of discharge at Abilities' facility. 17. 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 market. 18. The City makes no guarantee in regards to providing a minimum amount of material to Abilities. 19. 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 the City shall be required to pay any outstanding charges owed to Abilities for commodities it has processed up to the date of the cancellation of this agreement. IN WITNESS WHEREOF, the parties hereto have executed this CONTRACT as of the day and year first above written. CITY OF FAyETTEVILLE, ARKANSAS BY: (d.alinT/. Mayor ATTEST: By: Title: APPROVED AS TO By: c C'ty ¥tor ey 6 ABILITIES UNLIMITED NORTHW ARKANSAS, INC. OF By: Title: as 9 1. Noveriber 21, 1989 389.1 This ordinance was left on its third and final reading at the November 7 meeting to allow the petitioner and his neighbors timeto work out the wooded buffer arrangement to be included in the Bill of Assurance. 389.2 Director Lancaster asked if there had been any new developments between Mr. Meinecke and his neighbors. 389.3 Mr. Meinecke addressed the Board and clarified the buffer situation. He is offering a 45 foot buffer zone on his east property line on the lot proposed for rezoning and a 20 foot buffer zone on his existing lot. 389.4 Mr. Remby, Meinecke's neighbor, stated this was acceptable, he did not oppose the rezoning. 389.5 Upon roll call, the ordinance passed by a vote of 7-0. ORDINANCE NO. 3466 APPEARS ON PAGE /7/ OF ORDINANCE AND RESOLUTION BOOK )Q V 389.6 Mayor Martin introduced consideration of a resolution awarding a contract (Bid #89-50) for the process and marketing of city collected recyclables. 389.7 This is a budgeted item for both 1989 and 1990. Staff recommends either of two options, both being viable: (1) Awarding contract to Abilities Unlimited and hiring one additional City employee, on the condition that Abilities Unlimited receives the necessary funding from the Community Development Block Grant funds for its expansion; or (2) If Abilities Unlimited does not receive their funding, Staff recommends awarding the contract to Roger's Iron and Metal Company and Fort Smith Waste Paper Company. This option would not require additional City labor and the contract costs are within the budgeted amounts. 389.8 Option 1 - Cost of Abilities Unlimited Contract -.$8,200.00 Option 2 - Cost of Roger's Iron & Metal Contract - $5,530.00 389.9 Director Green, seconded by Kelley, made a motion to accept Option 1 and grant the contract to Abilities Unlimited. 389.10 Director Vorsanger stated that the Board had awarded $75,000 to the highest bidder. He stated he did not understand the bid. He felt it would have been r to the City's advantage to award the bid to the lowest bidder. 389.11 Hal Morton stated that Mr. Vorsanger was correct in comparing the net costs of the two different options.. However, the reason both options are considered viable is because of the political value of keeping the business local and supporting a workshop that employs handicapped persons such as Abilities Unlimited. 389.12 Les Kemp stated that in the long run, the costs for Abilities Unlimited will be less than the other bids. He was not sure where the extra person comes in to play. The driver of the City vehicle will have to be at the location while the truck is being unloaded of newspapers one day per week. He stated the volume of newspaper collected will make a significant difference in the bid amounts. The contractor at Fort Smith charges $15 per ton for newsprint. If the City gets more than they expect, the costs will be much more than Abilities. He is also the only bidder that submitted a complete bid as was requested. He further w 3;3n Novernber 21, 1989 stated that the City's bid form stated they would unload their own trucks. Abilities did not request additional manpower from the City. Director Green stated on this type of bid, you cannot compare apples to apples 390.1 because unit pricing has been bid. Abilities Unlimited is going to take the newsprint free, and Fort Smith paper was going to charge to haul it away. It is possible that it will be much cheaper to go with Abilities Unlimited if more newsprint is collected than expected. Mayor Martin does not feel the City has been rooked. There is a very strong benefit to Fayetteville by backing Abilities Unlimited. He agrees that the low bid should always be accepted unless there are mitigating circumstances. There are mitigating circumstances in this case and even the possibility that the Abilities bid could prove to be the low bid. 390.2 Hal Morton stated regarding unloading at the Abilities Unlimited facility, the 390.3 way the bid request was worded required the City to dump their materials at the site and did not involve the City with the labor intensive job of carrying the materials and reloading them into other containers which is what they understand is included in the Abilities bid. Also, the cost of newsprint in the Abilities Unlimited bid is no cost to the City for the first 4 months --it is not on an annual basis. The bids from Roger's Iron and Fort Smith are tied directly to market values on those materials and were considered more stable on a long-term basis. Upon roll call, the motion passed unanimously. 390.4 RESOLUTION 119-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK OTHER BUSINESS CITY OF FAYETTEVILLE VS. ISRAEL. Mayor Martin introduced consideration of settlement of a lawsuit against the City 390.5 in the case of The City of Fayetteville vs. Israel. City Attorney Rose stated that the former City Attorney Jim McCord has asked the 390.6 Board to consider the settlement and seeks the Board's advice regarding seeking such a settlement. The proposed settlement is for the 3.61 acres in question to be purchased by the City for $10,000 per acre plus the $2,401 that has been deposited into the registry of the court. This would be a total price of $38,501.12 the City would pay for the 3.61 acres. In addition, the City would agree to remove the sampling station. The developers would also be able to use the 3.61 acres deeded to the City through the settlement as part of the park land dedication requirement under their subdivision regulations. Mayor Martin asked what was situated on the 3.61 acres. Rose stated that this 390.7 was the discharge site for the sewage disposal facility into the Illinois River. McCord had stated this was not in any way conceding any effluent damage downstream, and it is not payment for any pollution damage whatsoever. It is simply allowing the City to settle by buying the property that is the controlling area for the discharge point of the facility. Director Lancaster asked if there was any way to determine the amount of money 390.8 for the park that was being discharged in this settlement. Marinoni stated the