HomeMy WebLinkAbout70-99 RESOLUTION•
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RESOLUTION NO 7 0- 9 9
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A RESOLUTION APPROVING AMENDMENT NO. 3 TO THE
CONTRACT WITH SUNRAY SERVICES, INC. TO TRANSPORT
AND DISPOSE OF MUNICIPAL SOLID WASTE AND FOR
OPERATION OF THE CITY'S TRANSFER STATION.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section L. That the City Council hereby approves Amendment No. 3 to the contract with
Sunray Services, Inc. to transport and dispose of municipal solid waste and for operation of the City's
transfer station . A copy of the amendment is attached hereto marked Exhibit "A" and made a part
hereof.
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PASSED AND APPROVED this _It day of May , 1999.
APPROVE
By.
tq,r'•_
I
•• ly~
ATTEST:
B
Heather Woodruff, City Clerk
red Hanna, Mayor
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AMENDMENT #3
Contract with Sunray Services, Incorporated
for the Operation of Transfer Station,
and Transport and Disposal of Municipal Solid Waste
The City of Fayetteville, by agreement dated September 25, 1995, contracted with Sunray Services, Inc. for
the operation of Fayetteville's transfer station, and transport and disposal of municipal solid waste.
Amendment #3 does hereinafter amend the contracted terms of agreement as specified in Section 1 and fee
structure as specified in Section 3 of the contract document. The approved amendments to Section 1 and 3 of
the contract document are as follows:
Section 1. The City executes the first five year renewal option.
Section 3. (c) For its disposal of waste delivered to the City Transfer Station, $19.00 per ton; effective
August 31, 2001, for its disposal of waste delivered to the City Transfer Station, $20.00 per
ton;
Section 3. (d) For disposal of solid waste delivered to Contractor's landfill or transfer station, $28.20 per ton;
effective August 31, 2001, for disposal of solid waste delivered to Contractor's landfill or
transfer station, $29.20;
Section 3. (f) A minimum charge for accepting solid waste from sources other than the City of Fayetteville,
$1.30 per bag until exceeds $20.65, or $20.65 minimum up to 1,000 pounds, after 1,000
pounds other sources will be charged $42.75 per ton.
IN WITNESS WHEREOF, the parties to these presents have executed this Amendment #3 of the contract for
the operation of Fayetteville's transfer station, and transport and disposal of municipal solid waste to be
retroactive to January 1, 1999.
ATTEST:
(Seal)
(City) 4/904
(Secretary)
(Witness)
By:
City of Fayetteville. Arkansas
B
(Title)
Sunray Servi Inc,
( . tr•
G' %e
/at,"
(Title) nn A�
f De /39 . /3/0 Code)
y { 7J.76C
(Address arid Zip ode)
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FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
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To: Willie Newman, Solid Waste
From: Heather Woodruff, City Clerk
Date: May 25, 1999
Attached is a copy of the resolution approving amendment number three to the contract with
Sunray Services for your files. The original will be microfilmed and filed with the city clerk.
cc. Yolanda Fields, Internal Auditor
File
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STAFF REVIEW FORM
XXX AGENDA REQUEST
CONTRACT REVIEW
GRANT REVIEW
For the Council meeting of May 18. 1999
E$ 70-99
MICROFILMED
FROM:
Willie Newman
Name
Solid Waste
Division
Public Works
Department
ACTION REQUESTED:
Approval of amendment #3 to the contract with Sunray Services, Inc. to transport
and dispose of municipal solid waste and for operation of City's transfer station.
COST TO CITY:
$21,450 est.
S11.550 est.
Cost of this request
5500-5010-5316.00
5500-5020-5316.00
Account Number
Project Number
$679,320
S327.516
Category/Project Budget
$151,688
S 70.668
Funds Used to Date
$527,632
S256.848
Remaining balance
Services & Charges
Category/Project Name
Commercial Collections
Residential Collections
Program Name
Solid Waste
Fund
BUDGET REVIEW:
Adg4
t Coordinator
Budgeted Item
KCISkia
--1144.41)
L�7ustment Attached
A inistrative Services Director
CONTRACT/GRANT/LEASE REVIEW:
}g-ggettrilkil --/6
MaerAger1 Date
ty Attorn
Purchasing Officer
q-/5 9g
Date
4-19-9c\
Date
GRANT AGENCY:
A Coordinator
I ternal Audito
Date
`-/F-9 f
Date
STAFF RECOMMENDATION:
Date
,�(/wD�ate
i ,
Date
Date
arsaailetexcnaa
New Item: Yee No
Prev Ord/Res #:
Orig Contract Date:
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FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
TO: Fayetteville City Council
THRIP Fred Hanna, Mayor
Charles Venable, Public Works Director
FROM: Willie Newman, Waste Reduction Coordinator
DATE: April 16, 1999
RE• Sunray Services, Inc. Contract - Amendment #3
Staff requests approval of amendment #3 to the contract with Sunray Services, Incorporated for
transport and disposal of municipal solid waste and for operation of the City's transfer station.
Approval of amendment #3 would modify our contractual agreement by increasing our disposal fees
from $18.00 per ton to $19.00 per ton, a $1.00 increase. In addition, Sunray is requesting a slight
fee increase associated with non -City waste delivered to the Transfer Station in the amount of $0.50
per ton to $42.75 per ton or $0.05 per bag to $1.30 per bag. Furthermore, Sunray requests the
approval of the five year contract renewal as set forth in the original contract.
Currently, the City pays $4.13 per ton for operating our Transfer Station, $5.07 per ton for
transporting our waste to the Tontitown Landfill, and $18.00 per ton for disposal which totals $27.20
per ton. The $1.00 increase requested would increase the disposal portion of the contract to $19.00
per ton. Regarding the non -City waste delivered to the Transfer Station, the City receives a 5%
franchise fee on all non -City waste and the requested increase is minimal. Sunray is requesting these
fee increases because they have started a two-phase site expansion at the Tontitown Landfill Facility
that will add over 10 million cubic yards of airspace at a cost in excess of $2 million dollars for the
first phase of site expansion. These site expansions are projected to provide adequate airspace
through the year 2006. Staff feels these fee increases are justified and support their approval
The contract terms specified six years with 3 five year renewal options totaling twenty years. The
first five year period is set to expire on August 31, 2001. Sunray has requested approval of the
second five year renewal option. Sunray has provided a very good service at a very reasonable price;
therefore, staff would support the approval of the early contract renewal option contingent upon the
following Sunray requested discussion of annual cost of living increases for the renewal period
instead of increases that occur with cell development. Staff feels that an annual cost of living
increase is not in the best interest of the City, but would support a $1 per ton increase on disposal
fees for the renewal period which is projected to coincide with the second phase of Sunray's site
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expansion.
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Staff recommends approval of this amendment with the changes set forth above. Maintaining a long
term relationship with Sunray is in the best economic and environmental interest of the City. Please
approve amendment #3 to this contract at your meeting scheduled for May 18. Staff and a
representative from Sunray will attend both the agenda session and the city council meetings for
further discussion. If you should have any questions prior to the meeting, please contact me at 444-
3497 at your convenience.
February 15, 1999
Mr. Willie Newman
City of Fayetteville Solid Waste
1455 Happy Hollow Road
Fayetteville, AR 72701
Dear Mr. Newman,
WASTE MANAGEMENT
11979 Arbor Acres Rd.
P.O. Box 1310
Springdale, AR 72765
(501) 751-7024
(501) 751-7924 Fax
Sunray Services, Inc., a Waste Management Company, is the current operator of the City of Fayetteville
Transfer Station. Sunray currently hauls the solid waste from this transfer station to our Tontitown Landfill
Facility for disposal. The current contractual agreement allows for increases from time to time (Section
3(e)). Please consider this letter as a request for a $1 per ton increase in disposal fees.
Currently, the Tontitown Landfill Facility has an expansion underway that adds an estimated 1.02 million
cubic yards of airspace. The cost of this airspace addition will exceed $2 million dollars when completed.
This landfill will meet all the Arkansas Department of Environmental Quality regulations along with the
additional regulatory burdens of the Four County Solid Waste District. The requested increase in disposal
fees will be retroactive to January 1, 1999 and be in effect for the remainder of the contract.
The asset of a long-term solid waste disposal facility in the immediate area is valuable to Northwest
Arkansas. The growth that has occurred makes these types of facilities even that much more important.
Recognizing that we have long term disposal needs, reasonable disposal rates, and long term population
growth, it makes sense to look into our contract renewal early and take advantage of the available disposal
airspace. Sunray would also like to discuss the possibility of annual cost of living increases on the renewal
instead of the increases that occur with the cell development updates. This feature would look to future for
the City of Fayetteville to help plan with annual budgets and future cost controls.
Additionally, Sunray is requesting to increase the fees charged to the public for use of the transfer station.
These fees are as follows:
Current Price: $41.25 per ton Requested Price: $42 75 per ton
Bag Rate: $ 1.25 per bag Requested Price: $ I.30 per bag
Thank you in advance for your consideration of these requests. If you have any questions concerning these
increases, pleasr forward them to my attention or phone me at (501) 361-1111.
ar
District Manager
A Division of USA Waste of Arkansas, Inc.
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AMENDMENT#3
Contract with Sunray Services, Incorporated
for the Operation of Transfer Station,
and Transport and Disposal of Municipal Solid Waste
The City of Fayetteville, by agreement dated September 25, 1995, contracted with Sunray Services, Inc. for
the operation of Fayetteville's transfer station, and transport and disposal of municipal solid waste.
Amendment #3 does hereinafter amend the contracted terms of agreement as specified in Section 1 and fee
structure as specified in Section 3 of the contract document. The approved amendments to Section 1 and 3 of
the contract document are as follows:
Section 1. The City executes the first five year renewal option.
Section 3. (c) For its disposal of waste delivered to the City Transfer Station, $19.00 per ton; effective
August 31, 2001, for its disposal of waste delivered to the City Transfer Station, $20.00 per
ton;
Section 3. (d) For disposal of solid waste delivered to Contractor's landfill or transfer station, $28.20 per ton,
effective August 31, 2001, for disposal of solid waste delivered to Contractor's landfill or
transfer station, $29.20;
Section 3. (f) A minimum charge for accepting solid waste from sources other than the City of Fayetteville,
$1.30 per bag until exceeds $20.65, or $20.65 minimum up to 1,000 pounds, after 1,000
pounds other sources will be charged $42.75 per ton.
IN WITNESS WHEREOF, the parties to these presents have executed this Amendment #3 of the contract for
the operation of Fayetteville's transfer station, and transport and disposal of municipal solid waste to be
retroactive to January 1, 1999.
City of Fayetteville. Arkansas
ATTEST: (City)
(City Clerk)
(Seal)
(Secretary)
By:
(Title)
Sunr.y Service. Inc.
(Contractor)
By:
(Witness) (Title)
(Address and Zip Code)
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AGREEMENT TO TRANSPORT AND DISPOSE
OF MUNICIPAL SOLID WASTE
AND FOR OPERATION OF TRANSFER STATION
This agreement is made and entered this,23 day of
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1995, by and
between the City of Fayetteville, Arkansas ("City") and Sunray Services, Inc., a Delaware
corporation ("Contractor").
RECITALS
The City has responsibility for proper disposal of all residential and commercial solid
waste generated within its boundaries, the current volume of which solid waste is presently
estimated to be thirty-two thousand (32,000) tons per year In order to properly dispose of such
solid waste, the City has planned and is constructing a transfer station comprised of
approximately nine -thousand six -hundred (9,600) square feet, including a scale house, a platform
scale for weighing incoming and outgoing solid waste vehicles and suitable facilities to allow
direct dumping of the City's waste collection vehicles into transport trailers. The City has
solicited bids for the operation of the Transfer Station and the proper transport and disposal of
solid waste generated therein. Contractor is the successful bidder thereon and, in addition, has
proposed to provide its own transfer and/or landfill facilities for the disposal of such solid waste
pending completion of the Transfer Station, which additional proposal has been accepted by the
City of Fayetteville. The parties have therefore entered this agreement pursuant to which
Contractor will operate the to be built Fayetteville Transfer Station, properly transport and
dispose of solid waste delivered there, and provide interim transfer station and/or landfill
facilities for the residential and commercial solid waste stream of the City of Fayetteville.
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TERMS AND CONDITIONS
Therefore, in consideration of the recitals set forth above and the terms and conditions
set forth below, which constitute good and enforceable consideration, it is agreed:
1. TERM OF AGREEMENT: Performance of this agreement shall begin on September
1, 1995, with respect to City's use of Contractor's transfer station and/or landfill for disposition
of the City's residential and commercial solid wastes. The term of the Contract shall be five
years from the date the City's Transfer Station is properly permitted and operational, which is
presently estimated to be April 1, 1996, but in no event shall the term of this Contract exceed
six years from the date hereof. The City shall have the option to renew this agreement for
three, successive, five-year terms, subject to mutual renegotiation of terms. The City shall
provide Contractor written notice of its intent to renew at least ninety days prior to the expiration
of the current Contract. The Contract will be subject to annual approval of the budget by the
Fayetteville City Council.
2. SCOPE OF SERVICE: Pending the date of permitted, operational status of the City's
Transfer Station, Contractor shall perform all services reasonably necessary to provide disposal
of the residential and commercial waste generated within the City at Contractor's own landfill
or transfer station. Upon the City's Transfer Station being fully and properly permitted and
operational, Contractor shall operate the City's Transfer Station and transport and dispose of the
residential and commercial solid waste delivered to the City's Transfer Station during the term
of its Contract. Those goods and services which Contractor shall provide shall include but not
be limited to the following:
(a) Operating supplies including fuel;
(b) Operating equipment (front-end loader(s) with any necessary compaction
equipment). Front-end loader buckets shall be equipped with attached
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brushes or sweeps to prevent metal -to -concrete floor contact during any
tipping floor loading operations. Truck scales and other permanent
fixtures of the building and grounds will be provided by the City.
(c) Scale house attendant services;
(d) Tipping floor supervision and load spotting services;
(e) Equipment maintenance services for all of Contractor's equipment;
(0 Regular housekeeping and cleaning services for the Transfer Station, the
scale house, and for the portion of the ground occupied by Transfer
Station operations;
(g)
Operators for waste handling equipment including loading and compaction
equipment;
Documentation of inbound and outbound tonnages of solid waste;
Regular billing statements to all Transfer Station customers; and
General administrative oversight and supervision.
(k) Preparation of regular, required reports to all applicable government
agencies, as well as a quarterly, summary report to the City.
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3. FEES: For its services hereunder, Sunray shall be entitled to the following fees:
(a) For operation of the City Transfer Station, $4.00 per ton of solid waste
delivered to the Transfer Station; ,(3 -z4'
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(b) For outgoing transport of solid waste delivered to the City Transfer
Station, $6.855er ton, based on incoming weight delivered to the Transfer
Station; ,",o
(c) For its disposal of waste delivered to the City Transfer Station, $18.00 per
ton;
(d) For disposal of solid waste delivered to Contractor's landfill or transfer
station, $28.85 per ton; and
(e) For accepting at the City's Transfer Station and disposing of solid waste
generated from sources other than the City of Fayetteville, $40.00 per ton,
of waste delivered to the Transfer Station, which shall be billed by
Contractor to such sources. The City shall receive a franchise fee equal
to 5% of the remainder of such fee after deducting applicable
governmental solid waste fees.
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These fees shall be inclusive of all, present, applicable governmental fees and licenses,
surcharges, taxes, materials, overhead, profit, insurance and equipment. However, the fees shall
be equitably adjusted between the parties, not more frequently than twice a year, based upon
demonstrable and material changes in Contractor's cost of doing business which are beyond
Contractor's control and occur after the date of this Contract including but not limited to
revisions of existing laws, ordinances, taxes, fees or regulations. Contractor shall bill the City
on a monthly basis for its services hereunder, itemizing such bills to show the tonnage and
resulting fee for each component of service processed hereunder. Bills shall be paid within
fourteen (14) days of presentation. Contractor shall account and pay to the City the City's
franchise fee pursuant to (e) above, within fourteen (14) days of contractor's receipt thereof.
Contractor shall keep accurate records which shall be available to the City at all times during
the period of this Contract, and for a term of three years after the termination thereof, to justify
the franchise fee, Contractor's billing and the proper transport and disposition of solid waste.
4. SECURITY FOR PERFORMANCE: Contractor has provided a performance bond
issued by a corporate surety which is satisfactory to the City and authorized to do business in
the State of Arkansas in the amount of two million dollars ($2,000,000.00) to secure faithful
performance of this Contract. The bond shall remain in full force and effect during the term of
this Contract and all premiums thereon shall be paid by the Contractor.
5. OUANTITIES: The City makes no warranties as to the quantities of solid waste
available for transfer and disposal. However, the City, during the term of this contract shall
deliver to Contractor, at either Contractor's own Landfill or transfer station, or through the City's
Transfer Station, all of the municipal, residential and commercial solid waste streams generated
within or by the City which it presently collects, except recyclable waste recycled as such.
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6. • DISPOSAL SITES: Contractor shall dispose of all waste tendered it in disposal sites
that are properly permitted and operating in accordance with all applicable State and Federal law
and regulation. Contractor shall at all times have a commitment for adequate landfill air space
adequate to meet the projected needs of the waste to be disposed of hereunder during the term
of the Contract. The present commitment satisfying this requirement is with the Cherokee
Nation Landfill, and is evidenced by Exhibit A, attached hereto. Prior to any change by
Contractor of the disposal site, Contractor shall provide documentation to the City that such site
meets specifications hereunder.
7. CONTRACTOR'S EOUIPMENT: Contractor warrants that its transport tractors,
trailers and equipment used in the operation of the Transfer Station and the transport of accepted
solid waste, will be maintained in a mechanically sound, clean and painted manner at all times,
and that Contractor shall have sufficient spare equipment available to insure daily loading,
transport and disposal of all waste received pursuant to this Contract All equipment shall be
painted uniformly with respect to the Contractor Transport trailers shall be marked with the
name and telephone number of the Contractor on each side of the vehicle.
8. REPRESENTATIONS. WARRANTIES AND COVENANTS OF THE CITY: The
City represents, covenants and warrants:
(a) That the City's Transfer Station, at the time it is tendered to Contractor for
operation, shall be properly and fully permitted as a solid waste transfer station by all applicable
governmental authorities, and shall be designed, constructed and operable, within industry
standards, as a transfer station.
(b) The City Transfer Station shall be erected adjacent to the present City of
Fayetteville shop facilities.
(c) That in its delivery of waste to the City's Transfer Station or to the
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Contractor's transfer station or landfill for disposal, the City, its customers, agents and
employees shall obey all reasonably adopted rules and regulations that may be posted from time
to time by the Contractor for the proper, efficient and safe operation of the respective facility,
and shall exercise reasonable prudence and care in disposing of waste at the facility.
9. DEFAULT AND TERMINATION: Upon the breach of either party to this Contract
of any of its material terms and conditions, and written notice to the breaching party of said
breach and demand for cure, the breaching party shall fully cure said breach within sixty (60)
days. Failure to so cure shall entitle the party providing said notice to declare a default and
terminate the Contract, which termination must be set forth in writing and delivered to the
defaulting party.
10. GENERAL SPECIFICATIONS: The terms and conditions of this Contract include
each and every general specification set forth hereinafter.
11. EXCUSED PERFORMANCE: Neither party hereto shall be liable for its failure
to perform hereunder due to contingencies beyond its reasonable control including, but not
limited to strikes, riots, fires, acts of God, and acts of Federal and State governments,
governmental agencies or Courts.
12 ADMINISTRATIVE PROVISIONS: The agreement constitutes the entire agreement
between the parties and there are no representations, warranties, promises, covenants,
agreements or contracts except as set forth herein. This agreement may not be amended except
as set forth in writing and signed by authorized representatives for both parties. This agreement
shall be construed under the laws of the State of Arkansas, and shall inure to the benefit of the
parties hereto, their successors, assigns and representatives. This agreement may be assigned
by either party only with the prior written consent of the other party, which consent shall not
be unreasonably withheld. The persons signing on behalf of the respective parties hereto warrant
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WH51 t I'IUI'IIN I IVw HIGH
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•WASTE MGMNT NW ARK
MICROFILMED
YEATMAN & ASSOCIATES, P.A.
ATTORNEYS AT LAW
15013611103
P.02/02
Aa- • 7o-- 9 9
100 MORGAN KEEGAN DRIVE • SUITE 110
LITTLE ROCK. ARKANSAS 72202
HAILING. AI:MRCSS:
PO. BOX 7]Si
t1 .007.OS LIlT4[ ROCK, OR 7z.317.7.350
SD ,007.0550
GRCCORT L. YU7nAN
fAL51nRE gIyCyeatmaM1LWR
SOI.007.0555
May 24, 2000
To Whom It May Concern::
This Law firm represents Waste Management of Arkansas, Inc. I have attached hereto copies of
the documents reflecting the corporate transactions regarding the mergers of USA Waste of Arkansas,
Inc. find set out hknow as Sunray Services, ereiinbelow a brief chronology of the transactiointo and withns which occurred:aste nt of Arkansas, Inc. Please
• Sunray Services, Inc. incorporated on march 30. 1981 in Delaware;
• Sunray Services, Inc. changed its name to USA Waste of Arkansas, Inc. on April 15, 1998:
• USA Waste of Arkansas, Inc. merged with and into Waste Management of Arkansas, Inc. on
December 21, 1998
Therefore, Waste Management of Arkansas, Inc. is the successor in interest to Sunray Services,
Inc. and has full legal authority to manage and dispose of assets still held in the name of USA Waste of
Arkansas. Inc. and Sunray Services. Inc. Please do not hesitate to contact me if you have any further
questions regarding this or any related matters.
Thank you.
GLY:dgl
Enclosures
H:\W orkIngFiles\WMA\Carlton.lt2.doc
Sincerely yours,
us4.--
Greg Yea an
Mgt
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RECEIVED .
AUG 0 2 2000
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