HomeMy WebLinkAbout161-06 RESOLUTION•
RESOLUTION NO. 161-06
A RESOLUTION APPROVING CONTRACT AMENDMENT #1
TO THE CONTRACT WITH THE CHEROKEE NATION TO
PROVIDE THE COMBINED SERVICES OF RECEIVING,
HANDLING, HAULING AND DISPOSING OF MUNICIPAL
RESIDENTIAL AND COMMERCIAL WASTE AT THE CITY OF
FAYETTEVILLE'S TRANSFER STATION.
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 #1 to the contract with the Cherokee Nation
providg the combined services of receiving, handling, hauling and disposing of
municipal residential and commercial waste at the City of Fayetteville's Transfer
Station A copy of Amendment #1, marked Exhibit "A" is attached hereto and
made a part hereof.
....................-...•',
PASSED and APPROVED this 19th day of September, 2006. ••••-a G� °t •.-per
=U: •'):3-
; FAYETTEVILLE:
,1;FAYETfEVILLE:
APPROVED: 1.66"
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hALL
By:
ATTEST:
By: G4✓
DAN COODY, Mayor W SONDRA SMITH, City Clerk
•
•
EXHIBIT "A"
AMENDMENT #1
TO THE AGREEMENT TO TRANSPORT AND DISPOSE
OF MUNICIPAL SOLID WASTE
AND FOR OPERATION OF TRANSFER STATION
BE IT KNOWN TO ALL:
That the City of Fayetteville, Arkansas and The Cherokee Nation, on this day of
September, 2006, hereby agree that the Agreement of April 4, 2006, shall be amended by
striking Paragraph 4 and inserting the following in its stead:
4. Cherokee Nation 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, but shall be authorized, at the election of Cherokee Nation, to replace the
performance bond with a letter of credit from an accredited state or national bank in the
sum of Five Hundred Thousand Dollars ($500,000.00), or execute an Assignment of all
of the Assets of Feather Hauling Services, LLC, to include both equipment and
personnel, to the City of Fayetteville, together with a deposit of $100,000.00. The
security, in whatever form, shall remain in full force and effect during the term of this
Contract and all costs of same shall be the responsibility of Cherokee Nation.
IN WITNESS WHEREOF, the parties hereto have caused their signatures to be set by their
authorized representative effective the date set for herein above.
CITY OF FAYETTEVILLE
DAN COODY, Mayor
ATTEST:
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Manager/Scale House Operator
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1 Truck Driver 2
Truck Driver 3
Sanitation Technician
TOTALS:
Equipment and Truck Information
Feather Hauling Services, LLC
Description of
Equipment/Trucks
Value
Monthly Payments
Three (3) Mack Semi tractors
with wet kits @ $58,000.00 ea
$174,000.00
$4,972.92
Six (6) Walking Floor Trailers
with Tarps @ $48,500 00 ea
$291,000.00
$4,577.04
Komatsu WA 200 Loader
$99,359.00
$2,497.00
Komatsu WB 140 Loader
Backhoe
$72,240.00
$1,958.00
TOTALS:
$636,599.00
$14,004.96
•
Gary Dumas
Submitted By
City of Fayetteville
Staff Review Form
City Council Agenda Items
or
Contracts
9/19/2006
City Council Meeting Date
Division
Action Required:
//9
a robe **ion
Operations itaintAidnivil M. I
Department
Resolution to Approve. Cherokee Nation Contract to Provide for the Operation of the Transfer Station, Hauling
Services, and Disposal of Solid Waste — Amendment No. 1
None
Cost of this request
Account Number
Project Number
Budgeted Item
xx•
Category / Project Budget
Funds Used to Date
Remaining Balance
Budget Adjustment Attached
Program Category / Project Name
Program / Project Category Name
Fund Name
Department Director
9/12/2006
Date
TD)e c/
City Attorney Dat
Finance and Internal Service Director
Date
Previous Ordinance or Resolution # 64-06
Original Contract Date:
Original Contract Number:
Received in City Clerk's Office
4/4/2006
Received in Mayor's Office
Comments:
aye evi le
ARKANSAS
OPERATIONS DIRECTOR
To: City Council
From: Gary Dumas
Date: September 12, 2006
RE: Cherokee Nation Contract to Provide for the Operation of the Transfer Station,
Hauling Services, and Disposal of Solid Waste — Amendment No. 1
Recommendation
Approve Resolution Amending the contract with Cherokee Nation to allow a 3'h Surety
Option for contract performance; Transfer of All Assets (equipment and personnel) of the
Hauling and Operating Company in the event of contractor failure.
Background
On April 4, 2006 the City entered into a contract with the Cherokee Nation to operate the
transfer station, provide hauling services and disposal of solid waste for the City of
Fayetteville. The contract is scheduled to go into effect of September 25, 2006 (rather
than the September 26 date within the contract, though agreement with Waste
Management of Arkansas). This contract will save the City approximately $295,724
annually over the current vendor's contract. The annual value of the contract to the
Cherokee Nation is $1,184,348. The saving the City will incur as a result of this contract
will offset some of the inflationary expenses within the Solid Waste and Recycling
operation.
The Cherokee Nation has requested an alternative to providing the contract performance
surety as required by contract language.
4. SECURING FOR PERFORMANCE: Cherokee Nation 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, but shall be authorized,
at the election of Cherokee Nation, to replace the performance bond with a letter of credit
' from an accredited state or national bank in the sum of Five Hundred Thousand Dollars
($500,000.00). The security shall remain in full force and effect during the term of this
Contract and all costs of same shall be the responsibility of Cherokee Nation.
The contract language provided two options for securing performance. The preferred of
these two options is the letter of credit because of is ease of access by the City. With the
letter of credit, the City only has to show to the financial institution proof of non-
performance and the City can access the funds secured by the letter. The performance
bond is treated more like an insurance policy and the City would be required to make -
claims and be reimbursed.
Currently the City is holding $100,000 from the contract to secure performance. Prior to
initiation of work for the City on September 25, all contract provisions must be fulfilled.
113 Wcst Mountain .
Fayetteville, Arkansas 72701
Office phone - 479-575-8330
Fax -479-575-8257
E-mail - gdumas egei.fayelteville.ar.us
•
Discussion
The contract fees are:
Transfer Station Operation $ 3.50 per ton
Hauling Services $ 5.50 per ton
Disposal $13.97 per ton
The transfer and hauling fees are $9.00 per ton. At approximately 200 tons per day, the
month fee to the contractor will be approximately $39,600.
The "contractor has requested that rather than a letter of credit that the City accept a third
surety option. That option being that the City retains the currently held $100,000 and in
the event of non-performance all assets, equipment and personnel related to the operation
of the transfer station and the hauling to the landfill will be transferred to the City, and
the City utilize the $100,000 for any expenses above the approximate $39,600 per month
that the City would be spending for transfer station and hauling services. The disposal
services at the Cherokee Nation Landfill would remain available.
The equipment utilized in the operation is as follows: -
Three (3) Mack semi tractors w/wet kits @ $58,000 ea. $174,000
Six walking floor trailers w/tarps @ $48,500 ea $291,000
Komatsu WA 200 loader $ 99,359
Komatsu WB 140 loader backhoe $ 72,240
Total $636,599
The monthly debt service is $14,004 and the monthly personnel expense is estimated to
be $18,337, for a total of $32,341. Fuel cost is estimated at $9,897 per month.
Maintenance is estimated at $5,000 per month. Total operational cost is $47,238.
Available monthly contractor fee is $39,600. The $100,000 cash deposit would be used
to supplement the monthly contactor fee for several months while a Council decision on
an replacement contractor is reached. The solicitation for a new contractor should take
less than 90 days.
This option will allow if necessary, the continuation of all solid waste activities without
significant interruption until a new contract can be awarded.
Utilization of a letter of credit or other cash surety would require during at least the short-
term that our solid waste collection vehicles dump at the landfill rather than at the
transfer station. Wear and tear on these vehicles would be significant given the increased
mileage. Fuel expense would be approximately 5.5 times greater at $54,432 per month.
While no one wants to contemplate a contract failure, the performance requirements are
in place to protect the City in such an event. In evaluating the options, it appears that the
type of surety proposed by Cherokee Nation, though unusual, is a better option for the
City of Fayetteville.
113 West Mountain
Fayetteville, Adcansas 72701
Office phone - 479-575-8330
Fax - 479-575-8257
E-mail - gdumas®aci.rayetteville.ar.us
RESOLUTION NO.
A RESOLUTION APPROVING CONTRACT AMENDMENT #1
TO THE CONTRACT WITH THE CHEROKEE NATION TO
PROVIDE THE COMBINED SERVICES OF RECEIVING,
HANDLING, HAULING AND DISPOSING OF MUNICIPAL
RESIDENTIAL AND COMMERCIAL WASTE AT THE CITY OF
FAYETTEVILLE'S TRANSFER STATION.
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 #1 to the contract with the Cherokee Nation
providg the combined services of receiving, handling, hauling and disposing of
municipal residential and commercial waste at the City of Fayetteville's Transfer
Station A copy of Amendment #1, marked Exhibit "A" is attached hereto hnd
made a part hereof.
PASSED and APPROVED this 19th day of Sepm
APPRO
;GOODY, Mayor
SM4PHtity Clerk
•
City Council Agenda Item
To: Mayor and City Council
From: Gary Dumas
Date: March 15, 2006
Subject: Transfer Station Contract Update
Recommendation: Staff requests awarding a contract to the Cherokee Nation for the
combined services of receiving, handling, hauling and disposing of municipal, residential
and commercial waste at the City of Fayetteville's Transfer Station.
Background: The current contract with Waste Management for the operation of the
transfer station including the services mentioned above is set to expire on September 26,
2006. The City solicited bids for these services with bid #06-08 and opened sealed bids
on February 10`11, 2006. Only one contractor, The Cherokee Nation, placed a bid.
Discussion: The Cherokee Nation operates a federally regulated Subtitle D landfill near
Stillwell, Oklahoma. The landfill has been operated by the Nation for over 20 years.
Currently the Boston Mountain Solid Waste District, the City of Lincoln, the City of
Prairie Grove, the City of Tahlequah, the City of Stillwell, and the Delaware County
Solid Waste Authority primarily uses this landfill for their disposal needs. The landfill is
under new management and is permitted, licensed and compliant with all federal
regulations regarding environmentally sound landfills.
The contract will allow the City to dump class 4 material (construction and non
putrescible waste) on the tipping floor at the Transfer Station, saving the Division
valuable haul time by not taking the material to the class 4 landfill at Tontitown. This
will be a significant savings to the Division especially with the growth currently being
experience in the drop box program
The contract stipulates that the rate for the services provided in the contract will be paid
in the sum of $24 47 per ton and is inclusive of all present applicable government fees
and licenses, surcharge's, taxes, materials, overhead, profit, insurance and equipment.
The fee will not be adjusted for 3 years from the start of operation but shall be subject to
fuel surcharges as needed and agreed upon under the terms of the contract.
The current rate for the services rendered through Waste Management is $30.58 per ton
or approximately $1,480,072 annually. The new contract will represent a savings of
$6.11 per ton or approximately $295,724 in annual costs. These numbers are based on
the estimation of 48,400 tons per year handled through the transfer station. The annual
value of the contract to Cherokee Nation is approximately $1,184,348.
Budget Impact: The impact will be beneficial to the City with the reduction of disposal
costs budgeted to the Commercial, Residential and Drop Box programs. These accounts;
5500.5010.5316.00 - Commercial, 5500.5020.5316.00 — Residential, and
5500.5030.5316.00 — Drop Box will be positively affected.
1 of 1 . 9/12/2006 2:05:52 PM
•
•
RESOLUTION NO. 64-06
A RESOLUTION AWARDING A CONTRACT TO THE CHEROKEE
NATION TO PROVIDE THE COMBINED SERVIC FS OF RECEIVING,
HANDLING, HAULING AND DISPOSING OF MUNICIPAL
RESIDENTIAL AND COMMERCIAL WASTE AT THE CITY OF
FAYETTEVILLE'S TRANSFER STATION.
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
awards a contract to the Cherokee Nation to provide the combined services of receiving,
handling, hauling and disposing of municipal residential and commercial waste at the
City of Fayetteville's Transfer Station. A copy of the contract, marked Exhibit "A" is
attached hereto and made a part hereof.
PASSED and APPROVED this 4th day of April, 2006.
APPROVED: ATTEST.
By:
•
By: yGc.N
S NDRA SMITH, City Clerk
43
t o • • . 3
E :FAYETTEVILLE'
`st. :> _
' is • ti kANs?•
N`
AGREEMENT TO TRANSPORT AND DISPOSE
OF MUNICIPAL SOLID WASTE
AND FOR OPERATION OF TRANSFER STATION
This agreement is made and entered into this 44 day of a prl 1
2006, by and between the City of Fayetteville, Arkansas and The Cherokee Nation.
Terms and Conditions
WITNESSETH: In consideration of 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 26, 2006. The initial term of the Contract shall be five years from the date
above. The City shall have the option to renew this agreement for three additional five
year terms, subject to mutual renegotiation of terms. The City shall provide the Cherokee
Nation written notice of its intent to renew at least ninety days prior to the expiration of
the current Contract. The Contract and any renewal of same, shall be subject to annual
approval of the budget by the Fayetteville City Council.
2. SCOPE OF SERVICE: Cherokee Nation shall be responsible for the
performance of all services reasonably necessary to provide for the proper disposal of the
residential and commercial waste generated within the City. Goods and services to be
provided by The Cherokee Nation under the terms of this agreement shall include but not
be limited to the following:
(a) Operating supplies including fuel;
(b) Operating equipment. Any front-end loader buckets shall be equipped
with attached 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
and maintained by the City;
(c) Scale house attendant services;
(d) Tipping floor supervision and Toad spotting services;
(e) Equipment maintenance services for all Cherokee Nation
equipment;
(f) Regular housekeeping and cleaning services for the Transfer Station,
the scale house, and for the portion of the ground occupied by
Transfer Station operations and equipment;
•
(g) Operators for waste handling equipment including loading and
compaction equipment;
(h) Documentation of inbound and outbound tonnages of solid waste;
(i) Regular billing statements to all Transfer Station customers;
0) General administrative oversight and supervision; and
(k) Preparation of regular, required reports to all applicable government
agencies, as well as a quarterly summary report to the City; and
(I) For any and all waste hauling services, whether hauling to, or from the
City's Transfer Station, and whether performed by The Cherokee
Nation, or by a contractor employed by the Nation for these purposes,
no additional taxes or assessments will be imposed by the City of
Fayetteville on those activities, so long as they are related to the
operation of the City's Transfer Station and the appropriate royalty per
ton is paid to the City of Fayetteville as described below.
3. FEES: For its services to be performed hereunder, Cherokee Nation shall be
entitled to receive payment from the City of Fayetteville of the following fees: For the
combined services of receiving, handling, hauling and disposing of the solid waste
delivered to the transfer Station by the City of Fayetteville, the sum of $24.47 per ton
based upon incoming weight delivered to the Transfer Station. Cherokee Nation shall be
entitled to charge a reasonable fee for all other solid waste delivered to the transfer
Station from sources other than the City of Fayetteville, for which the Cherokee Nation
shall pay to the City of Fayetteville a host fee of $3.50 per ton based upon incoming
weight delivered to the Transfer Station.
The fee shall be inclusive of all present applicable government fees and licenses,
surcharges, taxes, materials, overhead, profit, insurance and equipment. The Cherokee
Nation fee will not be adjusted for (3) years from the start of operation, currently
anticipated to be September 26, 2006, but such fees shall be subject to fuel surcharges as
may be needed from time to time, to accommodate increased costs above the initial
benchmark cost of $2.2382 per gallon for road diesel; $1.8177 per gallon for high sulfer
off-road diesel as determined by the most recent acquisitions by Cherokee Nation's
contract operator of the Cherokee Nation Sanitary Landfill. The fuel surcharge, when
applicable, will increase the initial fee per ton as referenced above. No fuel surcharge
shall be authorized hereunder until the combined average daily benchmark cost for road
diesel and off-road diesel is, for the most recent billing month, greater than 10% of the
initial benchmark. For each 10% increment the initial fee per ton may be additionally
adjusted.
On September 26, 2009, the Cherokee Nation fee may be adjusted by using the
difference in the CPI from September of the prior year and the CPI for August of 2009, as
determined by use of the United States Department of Labor index for goods and
services. That index is found at: hhtp://data.bls.gov/cgi-bin/survevmost?su. Cherokee
Nation shall bill the City on a monthly basis for its services hereunder, itemizing such
bills to show the tonnage and resulting fee. Bills shall be paid within thirty (30) days of
presentation. Cherokee Nation shall account and pay to the City the City's host fee as
previously described in this section above within thirty (30) days of Cherokee Nation's
receipt thereof. Cherokee Nation shall keep accurate records which shall be made
available to the City during regular business hours during the term of this Contract, and
for no less than three years after the termination thereof, in the event there is a need for
either party to justify all fees and payments.
The fees to be charged to an outside hauler bringing waste to the transfer station
will not be controlled or disclosed by the terms of this Agreement, but such rate will
always be reasonable, when compared to the surrounding market prices. This rate may
be adjusted from time to time at the discretion of the Nation, but at no time shall the rate
charged to outside haulers be less than the rate charged to the City of Fayetteville. For
purposes of this Agreement, the term outside hauler includes any and all wastes not
"hauled to the Transfer Station by the City of Fayetteville.
4. SECURING FOR PERFORMANCE: Cherokee Nation 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, but shall be authorized,
at the election of Cherokee Nation, to replace the performance bond with a letter of credit
from an accredited state or national bank in the sum of Five Hundred Thousand Dollars
($500,000.00). The security shall remain in full force and effect during the term of this
Contract and all costs of same shall be the responsibility of Cherokee Nation.
5. QUANTITIES: The City makes no warranties as to the quantities of solid
waste available for transfer and disposal. The City, during the term of this contract shall
deliver to Cherokee Nation the City's Transfer Station all of the municipal, residential
and commercial solid waste streams collected by the City, except recyclable waste
recycled as such.
6. DISPOSAL SITES: Cherokee Nation shall dispose of' all waste tendered it in
disposal sites that are properly permitted and operating in accordance with all applicable
State and Federal laws and regulations. Cherokee Nation 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. Prior to any change
by Cherokee Nation of the disposal site, Cherokee Nation shall provide documentation to
the City that such site meets specifications hereunder.
7. CHEROKEE NATION'S EQUIPMENT: Cherokee Nation warrants that all
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 Cherokee Nation shall have sufficient spare
equipment available to ensure daily loading, transport and disposal of all waste received
pursuant to this Contract. All equipment shall be painted uniformly with respect to
Cherokee Nation or its chosen contractor. Transport trailers shall be marked with the
name and telephone number of Cherokee Nation or its contractor, on each side of the
vehicle.
8. REPRESENTATION, 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 Cherokee
Nation 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) That in its delivery of waste to the City's Transfer Station, the City, its
customers, agents and employees shall obey all reasonably adopted
rules and regulations that may be posted from time to time by
Cherokee Nation for the proper, efficient and safe operation of the
facility, and shall exercise reasonable prudence and care in disposing
of waste at the facility.
(c) That the City will provide access by Cherokee Nation to the Transfer
Station at least one (1) week in advance of the commencement of these
services for the purpose of set up and testing of communication and
software systems necessary for the use of Cherokee Nation in the
proper and efficient performance of this Agreement in the operation of
said facility
9. DEFAULT AND TERMINATION: Upon the breach of either party to this
Contract of any of its material terms and conditions, and delivery of 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 act of Federal and State
governments, governmental agencies or Courts.
12. ADMINISTRATIVE PROVISIONS: This 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 that they have full
and proper authority to execute this agreement on behalf of the parties so represented.
IN WITNESS WHEREOF, the parties hereto have caused their signatures to be
set by their authorized representative effective the date set for herein above.
CHERO ATION
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Sondra Smith, City Clerk`����� 0"1""'��.,,t'�
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Brian Pugh
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Submitted By
City of Fayetteville
Staff Review Form
City Council Agenda Items
or
Contracts
April 4th, 2006
City Council Meeting Date
Solid Waste and Recycling
Division
Action Required:
Operations
Department
Staff requests awarding a contract to the Cherokee Nation for the combined services of receiving, handling, hauling
and disposing of municipal, residential and commercial waste at the City of Fayetteville s Transfer Station.
n/a
Cost of this request
n/a
Account Number
n/a
Project Number
Budgeted Item
n/a
Category/Project Budget
n/a
Funds Used to Date
n/a
Remaining Balance
Budget Adjustment Attached
n/a
Program Category / Project Name
n/a
Program / Project Category Name
n/a
Fund Name
pa tment rector Date
Finance and Internal Service Director
Mayor
Comments:
ni40‘
Date
Date
Previous Ordinance or Resolution #
Original Contract Date:
Original Contract Number:
City Council Agenda Item
To:
From:
Date:
Subject:
Mayor and City Council
Gary Dum
March 15, 2006
Transfer Station Contract Update
Recommendation: Staff requests awarding a contract to the Cherokee Nation for the
combined services of receiving, handling, hauling and disposing of municipal, residential
and commercial waste at the City of Fayetteville's Transfer Station.
Background: The current contract with Waste Management for the operation of the
transfer station including the services mentioned above is set to expire on September 26,
2006. The City solicited bids for these services with bid #06-08 and opened sealed bids
on February 10`h, 2006. Only one contractor, The Cherokee Nation, placed a bid.
Discussion: The Cherokee Nation operates a federally regulated Subtitle D landfill near
Stillwell, Oklahoma. The landfill has been operated by the Nation for over.20 years.
Currently the Boston Mountain Solid Waste District, the City of Lincoln, the City of
Prairie Grove, the City of Tahlequah, the City of Stillwell, and the Delaware County
Solid Waste Authority primarily uses this landfill for their disposal needs. The landfill is
under new management and is permitted, licensed and compliant with all federal
regulations regarding environmentally sound landfills.
The contract will allow the City to dump class 4 material (construction and non
putrescible waste) on the tipping floor at the Transfer Station, saving the Division
valuable haul time by not taking the material to the class 4 landfill at Tontitown. This
will be a significant savings to the Division especially with the growth currently being
experience in the drop box program.
The contract stipulates that the rate for the services provided in the contract will be paid
in the sum of $24.47 per ton and is inclusive of all present applicable government fees
and licenses, surcharges, taxes, materials, overhead, profit, insurance and equipment.
The fee will not be adjusted for 3 years from the start of operation but shall be subject to
fuel surcharges as needed and agreed upon under the terms of the contract.
The current rate for the services rendered through Waste Management is $30.58 per ton
or approximately $1,480,072 annually. The new contract will represent a savings of
$6.11 per ton or approximately $295,724 in annual costs. These numbers are based on
the estimation of 48,400 tons per year handled through the transfer station. The annual
value of the contract to Cherokee Nation is approximately $1,184,348.
Budget Impact: The impact will be beneficial to the City with the reduction of disposal
costs budgeted to the Commercial, Residential and Drop Box programs. These accounts;
5500.5010.5316.00 - Commercial, 5500.5020.5316.00 — Residential, and
5500.5030.5316.00 — Drop Box will be positively affected.
1 of 1 3/17/2006 10:15:56 AM
CITY Y OF FAYETTEVILLE
113 W. Mountain St.
Fayetteville, AR 72701
INVITATION TO BID
BID # 06=08
Solid Waste Transfer and Disposal
BID #: 06-08
DATE ISSUED: January 19, 2006
DATE & TIME OF OPENING: February 10, 2006 at 2:00 PM
BUYER: Andrea Foren, Room 306 — (479) 575-8220
F.O.B. Fayetteville, AR
INVITATION TO BID CITY OF FAYETTEVILLE, ARKANSAS
BID DOCUMENTS
FOR
TRANSPORT AND DISPOSAL OF SOLID WASTE
PROVISION OF TRANSFER STATION/RECYCLING CENTER
OPERATION OF TRANSFER STATION
BID 06-08, "SOLID WASTE TRANSFER AND DISPOSAL" .
Page 2 of 18
INVITATION TO BID
For Transport and Disposal of Solid Waste
Provision of Transfer Station/Recycling Center
Operation of Transfer Station
CITY OF FAYE1 1bVILLE, ARKANSAS
•
The City of Fayetteville (City) has one facility that contains both the Fayetteville
Transfer Station and the Fayetteville Recycling Center (Fayetteville Transfer
Station/Recycling Center). The Transfer portion of this facility utilizes loose -fill
technology and is capable of satisfying the present and future solid waste disposal needs
of the City. Design is expandable to allow the Fayetteville Transfer Station to serve
Washington County as necessary.
Sealed -Bids are invited and will be received by the City of Fayetteville for one or all of
the following:
Option A: Disposal of all solid waste received at the Fayetteville Transfer Station.
Option B: The daily transport of all solid waste received at the Fayetteville Transfer
Station.
Option C: The daily transport and disposal of all solid waste received at the
Fayetteville Transfer Station.
Option D: The operation of the Transfer Station and the offer of a host fee to the
City.
Bids must be made on the enclosed Bid Forms in accordance with Instructions to Bidders
described herein and as furnished by the Purchasing Department, City Administration
Building, Fayetteville Arkansas.
The defined terms appearing in the General Specifications apply to all Invitation to Bid
Documents. Copies of Forms are attached hereto.
Bids must be delivered to the City Purchasing Office, Room 306, 113 West Mountain
Street, Fayetteville, Arkansas 72701 on or before February 10, 2006 at 2:00 pm, local
time. The envelope containing the Bid must be sealed and plainly marked "BID 06-08,
SOLID WASTE TRANSFER AND DISPOSAL".
Bids will be publicly opened and read at that time in the offices of the Purchasing
Department or a room to be designated and announced at the time of opening. The
successful Bidder will be awarded the Contract through an Ordinance of the City
Page 3 of 18