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HomeMy WebLinkAbout194-05 RESOLUTION• • • RESOLUTION NO. 194-05 A RESOLUTION APPROVING AMENDMENT No. 4 TO THE CONTRACT WITH WASTE MANAGEMENT OF ARKANSAS, INC. FOR OPERATION OF THE TRANSFER STATION AND TRANSPORT AND DISPOSAL OF MUNICIPAL SOLID WASTE; AND APPROVING A BUDGET ADJUSTMENT IN THE AMOUNT OF $25,000.00 TO COVER THE COST OF INCREASED DISPOSAL FEES. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves Amendment No. 4 to the contract with Waste Management of Arkansas, Inc. for operation of the Transfer Station and transport and disposal of municipal solid waste. A copy of Amendment No. 4, marked Exhibit "A" is attached hereto and made a part hereof. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment in the amount of $25,000.00 to cover the cost of increased disposal fees. PASSED and APPROVED this 20th day of September, 2005. ATTEST: By 0+��f�./ odatu SO DRA SMITH, 0ty Clerk APPROVED: By: DAN COODY, Mayor • • AMENDMENT#4 Contract with Waste Management of Arkansas, Inc. 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 Waste Management of Arkansas, Inc. as successor -in -interest to Sunray Services, Inc. for the operation of Fayetteville's transfer station, and transport and disposal of municipal solid waste. Amendment #4 does hereinafter amend the contracted terms of the agreement as specified in Section 3 of the contract document. The approved amendments to Section 3 of the contract document are as follows: Section 3.(a) Section 3.(b) For operation of the City Transfer Station, currently $4.13 per ton, effective September 1, 2005, of solid waste delivered to the Transfer Station, $4.51 per ton; For outgoing transport of solid waste delivered to the City Transfer Station, currently $5.07 per ton, effective September 1, 2005, based on incoming weight delivered to the Transfer Station, 56.07 per ton; Section 3.(c) 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, $29.20 per ton; Section 3.(e) For accepting at the City's Transfer Station and disposing of solid waste generated from other sources other than the City of Fayetteville, currently $10.00 per ton, effective September 1, 2005, of waste delivered to the Transfer Station, 542.72 per ton. Section 3.(f) A minimum charge for accepting solid waste from sources other than the City of Fayetteville, 51.30 per bag until exceeds $20.65, or $20.65 minimum up to 1,000 pounds. After 1,000 pounds, other sources will be charged currently $42.75 per ton. IN WITNFSS WHEREOF, the parties to these presents have executed this Amendment #4 of the contract for the operation of Fayetteville's transfer station, and transport and disposal of municipal solid waste to be effective September 1, 2005. ATTEST City Clerk By: Date: By: Date: CITY OF F _YETTEVILLE, ARKANSAS Dan Coody, as Mayor WASTE) ANAGEMENT OF ARKANSAS, INC. AlIF £t S Ro�.wreir authorized signatory • City of Fayetteville, Arkansas Budget Adjustment Form R2d3 1 R(tto j Budget Year 2005 Department:: Operations Division: Solid Waste & Recycling Program: Commerclal Collections Date Requested 9/20/2005 Adjustment Number 05-235 Project or Item Requested: $25,000 is requested for solid waste disposal fees. Project or Item Deleted: No project is deleted. Reserve funds will finance increased disposal fees. Justification of this Increase: This increase is needed due to an amendment to the contract with Waste Management which increases disposal fees from $29.20 per ton to $30.58 per ton. 9 is estimated that the Solid Waste & Recycling Division will collect and dispose of more than 17,400 tons of waste from September 1 through December 31, 2005. ustification of this Decrease: Use of reserve funds is required to address immediate needs of the Solid Waste & Recycling Division. Account Name Solid waste disposal Solid waste disposal Solid waste disposal Account Name Use of fund balance Increase Budget (Decrease Revenue) Account Number 5500 5010 5316 5500 5020 5316 5500 5030 5316 00 00 00 Decrease Budget (Increase Revenue) Account Number 5500 0950 4999 99 Amount 15,000 7,000 3,000 Amount 25,000 Project Number Project Number Approval Signatures 9/7/2005 Tvte: A Date Date 05 ate Budget Office Use Only 13 C E Date of Approval Posted to General Ledger Posted to Project Accounting Entered in Category Log Initial Initial Initial Date Date Date Initial Date Gary Dumas Submitted By • City of Fayetteville • Staff Review Form City Council Agenda Items or Contracts 9/20/2005 City Council Meeting Date Solid Waste & Recycling Operations ,Q&S T./ ,s /85 1�q9 &OS/.t #fas.rq&etet Division Department Action Required: Approval of Amendment Number 4 to Waste Management Contract for Operation of the Transfer Station an Transport and Disposal of Municipal Solid Waste; and approval of a budget adjustment in the amount of $25,000 for increased disposal fees. annual cost cost - $75,000 4 months in 2005 - $25,000 Cost of this request 5500.xxxx.5316.00 $ 1,470,775.00 Category/Project Budget $ 1,243,639.00 Account Number Funds Used to Date Project Number Budgeted Item $ 227,136.00 Remaining Balance Budget Adjustment Attached X Services and Charges Program Category / Protect Name Various Program / Project Category Name Solid Waste Fund Name Department Director Date c City Attorney Finance 3ncVlnternafService Director Mayor q-7 Date Date Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Received in Mayor's Office Comments: 09-02-05P01 52 RCVD aye evfle ARKANSAS OPERATIONS DIRECTOR Agenda Request • To: Mayor and City Co 1 From: Gary Dumas Date: August 31, 2005 Re: Amendment Number 4 to Waste Management Contract for Operation of the Transfer Station and Transport and Disposal of Municipal Solid Waste Recommendation Staff recommends approval of Amendment Number 4 to Waste Management Contract for Operation of the Transfer Station and Transport and Disposal of Municipal Solid Waste; and approval of a budget adjustment in the amount of S25,000. Background On September 25, 1995 the City of Fayetteville entered into a Contract with Waste Management as successor -in -interest to Sunray Services. This contract provides in Section 1. TERM OF AGREEMENT options for three successive 5 -year terms, option one was exercised by Amendment 3 on May 18, 1999. This Contract extension will end on September 24, 2006. Section 3. FEES provides for an equitable adjustment of the fccs not more frequently than twice a year. Amendment 1 (March 18, 1997), Amendment 2 (February 2, 1998), and Amendment 3 (May 18, 1999 with an effective date of August 31, 2001) adjusted the fccs accordingly and were approved by the City. In 2004 Waste Management proposed a rate increase in accordance with Contract Section 3. This request was withdrawn prior to action by the City Council. In early August 2005 Waste Management proposed a 5 year contract extension. Since the contract had been in place for 9 years and 10 months without competitive bidding and inquiries from other regional landfills indicated that competitive bidding would be in the best long-term interests of the citizens of Fayetteville, the Administration rejected the offer to exercise the second contract extension. Waste Management has now submitted a fee adjustment based upon material changes in the cost of doing business beyond their control in accordance were Contract Section 3 Discussion Waste Management has not received a fee adjustment since May 18, 1999. The contract language permits equitable fee adjustments not more frequently than twice annually. The U. S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index All Urban Consumers, All Items, (see attached chart) indicates a change of 18.3% from the second half of 1999 through the first half of 2005. The requested rate increase would be effective September 1, 2005 through September 24, 2006, unless changing conditions 113 West Mountain Fayetteville, Arkansas 72701 Office phone - 479-575-8330 Fax - 479-575-8257 e-mail - gdutnas®ci.faycttrville.ar.us • warranted additional adjustments, per contract language. The requested change in fees is from S29.20 to S30.58 for a 4.7% increase in the rate charged to the Solid Waste Enterprise. This fee increase will be required to be reflected in our Solid Waste rates. The rate for non -City of Fayetteville waste sources will increase from $40.00 per ton to S42.75 per ton. It is estimated that the Solid Waste & Recycling Division will collect and dispose of approximately 17,400 tons of waste between September 1 and December 31, 2005. An additional $25,000 is required for the remainder of 2005. 113 Wal Mountain Fayetteville. Arkansas 72701 011icc phone - 479-575.8330 Fax - 479-575-8257 e-mail - gduma ci.fayettcvillear.us • • RESOLUTION NO. A RESOLUTION APPROVING AMENDMENT No. 4 TO TI -IE CONTRACT WITH WASTE MANAGEMENT OF ARKANSAS, INC. FOR OPERATION OF THE TRANSFER STATION AND TRANSPORT AND DISPOSAL OF MUNICIPAL SOLID WASTE; AND APPROVING A BUDGET ADJUSTMENT IN THE AMOUNT OF $25,000.00 TO COVER THE COST OF INCREASED DISPOSAL FEES. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves Amendment No. 4 to the contract with Waste Management of Arkansas, Inc. for operation of the Transfer Station and transport and disposal of municipal solid waste. A copy of Amendment No. 4, marked Exhibit "A" is attached hereto and made a part hereof. Section 2. That the City Council of the City of Fayette ill'l� Arl nsas hereby approves a budget adjustment in the amount of $ 4110�•.J0 to covLr the cost of increased disposal fees. • f ATT Bv: NDRA SMITH, City Clerk APPROVED: rt.y• /TAN COODY, Mayor 0 • AMENDMENT #4 • Contract with Waste Management of Arkansas, Inc. 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 Waste Management of Arkansas, Inc. as successor -in -interest to Sunray Services, Inc. for the operation of Fayetteville's transfer station, and transport and disposal of municipal solid waste. Amendment #4 does hereinafter amend the contracted terms of the agreement as specified in Section 3 of the contract document. The approved amendments to Section 3 of the contract document are as follows: Section 3.(a) For operation of the City Transfer Station, currently $4.13 per ton, effective September 1, 2005, of solid waste delivered to the Transfer Station, $4.51 per ton; Section 3.(b) For outgoing transport of solid waste delivered to the City Transfer Station, currently $5.07 per ton, effective September 1, 2005, based on incoming weight delivered to the Transfer Station, 56.07 per ton; Section 3.(c) (No change) For its disposal of waste delivered to the City Transfer Station, $20.00 per ton; Section 3.(d) (No change) For disposal of solid waste delivered to Contractor's landfill or transfer station, $29.20 per ton; Section 3.(e) For accepting at the City's Transfer Station and disposing of solid waste generated from other sources other than the City of Fayetteville, currently 540.00 per ton, effective September 1, 2005, of waste delivered to the Transfer Station, $42.72 per ton. Section 3.(f) (No change) A minimum charge for accepting solid waste from sources other than the City of Fayetteville, 51.30 per bag until exceeds $20.65, or 520.65 minimum up to 1,000 pounds. After 1,000 pounds, other sources will be charged currently $42.75 per ton. IN WITNESS WHEREOF, the parties to these presents have executed this Amendment #4 of the contract for the operation of Fayetteville's transfer station, and transport and disposal of municipal solid waste to be effective September 1, 2005. ATTEST: City Clerk By: Date: 13y: Date: CITY OF FAYETTEVILLE, ARKANSAS Dan Coody, as Mayor WASTE MANAGEMENT OF ARKANSAS, INC. Roger Lawrence, as authorized signatory City of Fayetteville, Arkansas Budget Adjustment Form Budget Year 2005 Department: Operations Division: Solid Waste & Recycling Program: Commercial Collections Date Requested 9/1/2005 Adjustment Number Project or Item Requested: $25,000 is requested for solid waste disposal fees. Project or Item Deleted: No project is deleted. Reserve funds will finance increased disposal fees. Justification of this Increase: This increase is needed due to an amendment to the contract with Waste Management which increases disposal fees from $29.20 per ton to $30.58 per ton. It is estimated that the Solid Waste & Recycling Division will collect and dispose of move than 17,400 tons of waste from September 1 through December 31, 2005. Justification of this Decrease: Use of reserve funds is required to address immediate needs of the Solid Waste & Recycling Division. Increase Budget (Decrease Revenue) Account Name Account Number Amount Project Number Solid waste disposal 5500 5010 _ 5316 00 15,000 Solid waste disposal 5500 5020 5316 00 7,000 Solid waste disposal 5500 5030 5316 00 3,000 Decrease Budget (Increase Revenue) Account Name Account Number Amount Project Number Use of fund balance 5500 0950 4999 99 25,000 Approval Signatures C.�Qon_ 9/2/2005 Date -Re d By Budget Manager Date Department Director Date Finance & Internal Services Director Date Mayor Date Budget Office Use Only Type: A B C D E Date of Approval Posted to General Ledger Posted to Project Accounting Entered in Category Log Initial Date Initial Date Initial Datc Initial Date • U.S. Department of Labor Bureau of Labor Statistics Bureau of Labor Statistics Data www.b/s.gov 1 BLS Home I Programs & Surveys I Get Detailed Statistics 1 Glossary I What's New I Find It! In DOL • Change Output Options: From: To. 2005 F include graphs NEWT Data extracted on: August 31, 2005 (5:08:59 PM) Consumer Price Index - All Urban Consumers More Formatting Options. . Search 1 A -Z Index 12 Months Percent Change Series Id: CUUR0000SA0 Not Seasonally Adjusted Area: U.S. city average Item: All items Base Period: 1982-84=100 Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 1999 1.7 1.6 1.7 2.3 2.1 2.0 2.1 2.3 2.6 2.6 2.6 2.7 2.2 1.9 2.5 2000 2.7 3.2 3.8 3.1 3.2 3.7 3.7 3.4 3.5 3.4 3.4 3.4 3.4 3.3 3.5 2001 3.7 3.5 2.9 3.3 3.6 3.2 2.7 2.7 2.6 2.1 1.9 1.6 2.8 3.4 2.2 2002 1.1 1.1 1.5 1.6 1.2 1.1 1.5 1.8 1.5 2.0 2.2 2.4 1.6 1.3 1.9 2003 2.6 3.0 3.0 2.2 2.1 2.1 2.1 2.2 2.3 2.0 1.8 1.9 2.3 2.5 2.0 2004 1.9 1.7 1.7 2.3 3.1 3.3 3.0 2.7 2.5 3.2 3.5 3.3 2.7 2.3 3.0 2005 3.0 3.0 3.1 3.5 2.8 2.5 3.2 3.0 Frequently -Asked Questions 1 Freedom of Information Act 1 CustomeLSurvey Privacy & Sesmritv-Statement 1 Linking to Our Site 1 Accessibility U.S. Bureau of Labor Statistics Postal Square Building 2 Massachusetts Ave., NE Washington, DC 20212-0001 Phone: (202) 691-5200 Fax -on -demand: (202) 691-6325 Data questions: bls igta3taffilbls•gov Technical (web) questions: w.ebmaster(bls.ggr Other comments: f tdbaCk_@bls.gov Clarice Pearman - Waste Management Page 1 From: Clarice Pearman To: Dumas, Gary Date: 9123105 5:54PM Subject: Waste Management Gary, The Council passed a resolution for this item on Sept. 20, 2005. However I do not have a signed agreement or the original budget adjustment to attach to the resolution. Please get me a signed agreement and the budget adjustment. Thanks. Clarice Clarice Pearman - budget adjustment origir� Page 1 From: To: Subject: Clarice Pearman Nelson, John budget adjustment original John, Thank you for the signed original Amendment No. 4 from Waste Management. I will return one of the originals after processing the resolution and attachments. However you still have not gotten the original blue budget adjustment to me. I only have a copy. Please get me the original so that I may process this resolution and get everything retumed. Thanks. Clarice Clarice Pearman - Re: budget adjustment al Page 1 From: Clarice Pearman To: Nelson, John Subject: Re: budget adjustment original Barbara Fell just called regarding the budget adjustment that was sent to her. She has brought that to me and I will now send to mayor for signature and finish process the resolution. Please remember that anything has an attachment, i.e. an agreement contract, need originals with signature of the other party before the meeting; and orignal budget adjustment must sent, make a copy for yourself. Also always remember that the city clerk's office always get originals. Thanks. Clarice »> John Nelson 10/24/05 01:3BPM »> Okay. Solid Waste doesn't understand that they need to include a blue BA form with their agenda packet. I'll send it to you. John Nelson Operations Mgmt. Acct. Coordinator City of Fayetteville Operations Department 113 W. Mountain St. Fayetteville, AR 72701 479.444.3492 479.444.3490 - Fax www. accessfayetteville.orq »> Clarice Pearman 10/24/05 01:31 PM »> John, Thank you for the signed original Amendment No. 4 from Waste Management. I will return one of the originals after processing the resolution and attachments. However you still have not gotten the original blue budget adjustment to me. I only have a copy. Please get me the original so that I may process this resolution and get everything retumed. Thanks. Clarice . Clarice Pearman - Res. 194-05 From: Clarice Pearman To: Nelson, John Subject: Res. 194-05 ----- -• -- John, Attached is a copy of your agenda item passed by City Council, September 20, 2005 regarding Waste Management of Arkansas. Also attached is a copy of the budget adjustment. I will forward to Budget & Research the original budget adjustment. I am retuming to you one of two of the agreements Amendment No. 4. CC: Bell, Peggy; Deaton, Vicki; Fell, Barbara Page 1 City of Fayetteville, Arkansas Budget Adjustment Form Budget Year 2005 Department: Operations Division: Solid Waste & Recycling Program: Commercial Collections Date Requested 10/1/2005 Adjustment Number Project or Item Requested: $25,000 is requested for solid waste disposal fees. Project or Item Deleted: No project is deleted. Reserve funds will finance increased disposal fees. Justification of this Increase: This increase is needed due to an amendment to the contract with Waste Management which increases disposal fees from $29.20 per ton to $30.58 per ton. It is estimated that the Solid Waste & Recycling Division will collect and dispose of move than 17,400 tons of waste from September 1 through December 31, 2005. Justification of this Decrease: Use of reserve funds is required to address immediate needs of the Solid Waste & Recycling Division. Increase Budget (Decrease Revenue) Account Name Account Number Amount Project Number Solid waste disposal Solid waste disposal Solid waste disposal Account Name Use of fund balance 5500 5010 5316 00 5500 5020 5316 00 5500 5030 5316 00 Decrease Budget (Increase Revenue) Account Number 15,000 7,000 3,000 Amount Project Number 5500 0950 4999 99 25,000 Approval Signatures 9/2/2005 Re ed By Date Budget Manager Date Department Director Date Finance & Internal Services Director Date Mayor Date Budget Office Use Only Type: A B C D Date of Approval Posted to General Ledger Posted to Project Accounting Entcred in Category Log Initial Date Initial Date Initial Date Initial Date