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