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HomeMy WebLinkAbout56-07 RESOLUTIONRESOLUTION NO. 56-07 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT WITH OZARK SANITATION, INC. TO HAUL AND DISPOSE OF SOLID WASTE WITHIN THE CITY LIMITS OF FAYETTEVILLE. 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 authorizes the Mayor to execute a contract with Ozark Sanitation, Inc. to haul and dispose of solid waste within the city limits of Fayetteville A copy of the contract marked Exhibit "A" is attached hereto and made a part hereof. 4€1'9E4:€19';'••, Y °P. • .61A 0.73S. E :FAYETTEVILLE: Ei N SY: • e\t,i 1141,1,VGYON iiiii PASSED and APPROVED this 3rd day of April, 2007. APPROVED: ATTEST: By: 4: al" D COODY, ayor By: a.A.A.44.4... SONDRA E. SMITH, City ClerldTreasurer AGREEMENT TO HAUL AND DISPOSE OF SOLID WASTE IN THE CITY OF FAYETTEVILLE This Agreement (the "Agreement"). is entered into on this 3rd dav of Aer I 1 . 2007. between the. City. of Fayetteville, Arkansas, a municipal corporation (the -City"). and 02.0024- Se....o,•4c4oh,.(the "Hauler"). and shall be in full force and effect on the date first written above. City and Hauler agree as follows: 1. Hauler agrees that from and after the original date of this Agreement. all customer service Agreements for facilities within the corporate limits of the City entered into before or after the effective date of this Agreement, or renewed shall have terms of no more than two (2) years and any subsequent extensions shall be for terms of no more than one (1) year. 2. The term of this Agreement shall be for three (3) years. unless othenyise terminated pursuant to the terms hereof. 3. Hauler agrees and understands that it may only collect and haul Solid Waste using the type equipment commonly referred to as open -top roll -off style containers with capacities of twenty (20) cubic yards or greater. or roll -off style compactor containers with capacities of twenty (20) cubic yards or greater, containing waste generated from industrial, large commercial or construction/demolition activities, or which is classified as Special Waste, Hazardous Waste grease or any other type Solid Waste which requires special handling or disposal. Hauler shall not collect any Class 1 or Class 4 material in other containers. No unseparated recyclables collected in any type container shall be hauled from any customer within the corporate limits of the City of Fayetteville. The collection of scrap metal, cardboard and other source -separated recyclables are not controlled or affected by this contract. Hauler agrees and understands that it may utilize the City's transfer station for all Class 1 waste collected pursuant to this Agreement and shall deliver all Class 4 waste to a properly licensed landfill facility. Hauler shall pay all transfer station fees to the transfer station operator and all Class 4 landfill fees to the landfill operator, as they mav be established and amended. from time to time. 5. Hauler shall pay all fees due hereunder, along with the required supporting information. on or before the 15'h of each calendar month for the immediately preceding calendar month. Payments of fees received after the due date shall be assessed a 2% penalty per month. If Hauler failed to pay the fees within forty-five (45) days of the due date. the City may revoke this Agreement upon delivery of written notice to the Hauler. The supporting information shall be sufficient to demonstrate the accuracy of the fee calculation, and shall include the following information: (i) Hauler's worksheet calculating the fees remitted; (ii) a blind list of payments received from customers within the City; (iii) such list shall clearly indicate whether each payment was from a permanent or temporary customer, and (iv) the fee shall be based upon all activity from each customer account within the City, and shall include the normal billing charges for all free or discounted services (excluding those for non-profit organizations) including but not limited to delivery, pull charges. disposal charges. transportation charges final pull charges and return charges. The City shall have the right to conduct an audit of Hauler.s customer files and records for all customers located within the City, provided that such audit privilege shall be limited to once per calendar quarter. If such audit reveals the hauler should have paid at least 5% more than reported, the cost of the audit shall be paid by the Hauler to the City. During such audit, the City may review certain trade secret information, including rates, frequency of service. customer lists, and other customer information provided that such trade secret information may not be copied or removed by the City. Nor shall such information be divulged to any third party by the City. its employees, officers, or elected officials without the express written consent of the Hauler. 6. Hauler agrees and understands that it shall submit to the City on an annual basis a list of all commercial vehicles used to provide services in the City. proof of appropriate vehicle registration, and proof of the insurance required under Section 16. 7. Hauler agrees and understands that it shall provide a list of vehicle operators collecting and hauling waste in the City of Fayetteville. along with proof of their valid and appropriate commercial drikerslicenses issued by the State of Arkansas. The Hauler shall also provide, maintain, and implement a plan to ensure that the vehicle operators maintain their commercial driver's licenses in accordance with applicable federal and state laws. 8. Hauler agrees that it shall comply with all federal, state and local laws applicable to the safety, environmental and transportation matters related to providing solid waste collection services under this Agreement. Hauler agrees that all open -top roll -off style containers will be properly covered during transit on streets and highways within Fayetteville. 9. In consideration of the right to provide the services described under this Agreement. Hauler agrees and understands that it shall be required to pay a monthly fee of ten (10%) percent (the "Fee") of the gross revenue received for all services provided under this Agreement. Upon execution of this Agreement, a deposit shall be paid in advance to the City. The deposit shall be equal to one-half of the total fees that were or would have been paid by the Hauler within to the City during the previous twelve (12) months. Such deposit shall be reviewed on an annual basis. Any reasonable disagreement in estimated gross revenue will be decided in the favor of the City. The deposit shall be refunded. less any unpaid fees, when the Hauler ceases operation within the City or this Agreement is terminated, whichever is earlier. 10. The City reserves the right to inspect all vehicles and containers to ensure that the vehicles are safe and Nvell-maintained and that all containers are well-maintained and water tight, if necessary. 11. Hauler agrees and understands that it shall be required to establish an individual credit or service relationship with the City of Fayetteville transfer station operator and the Tontitown Landfill operator. Hauler agrees that it shall comply with all practices, policies and procedures as established by the transfer station operator from time to time. Any tipping fee deposits required by the transfer station or landfill operators shall be refunded. less any unpaid tipping fees. when the Hauler ceases hauling activities governed by this Agreement. 12. This Agreement has been entered into freely and voluntarily by Hauler which agrees to abide by all of the terms and conditions as a matter of contractual obligation pursuant to applicable city ordinances. This is a contractual Agreement and is not intended to be part 2 of or related in any way to any license or ordinance created pursuant to A.C.A. §26-77- 102. 13. Neither this Agreement, nor any rights or obligations hereunder may be assigned or transferred to any third party or affiliate. 14. For the purpose of this contract, the Point of Contact of the City of Fayetteville shall be Gary Dumas or his successor. The Point of Contact for the Hauler shall be Lecon -t1400,4.5 . Communications pertaining to day-to-day aspects of this contract shall be through these individuals. Either party may change its designated Point of Contact upon ten (10) days prior written notice to the other party. 15. Hauler agrees to protect, indemnify. defend and save harmless the City. its officials. officers, employees. agents, subcontractors. representatives and assigns from any loss. claim, liability, penalty, fine, forfeiture. demand. cause of action, suit and costs and expenses incidental thereto (including costs of defense. settlement and reasonable attorneysfees), to the extent caused by (i) Hauler's breach of any term, condition. covenant or warranty contained in this Agreement, or (ii) Haulers negligent act or omission or willful misconduct related to the delivery of waste to the City transfer station or a properly licensed landfill facility. 16. Insurance' Hauler shall maintain the following insurance coverage during the term of this Agreement: (a) Hauler shall provide and maintain. during the term of this Agreement. comprehensive general liability insurance. to protect against all claims arising out of the performance of its services hereunder that result in bodily injury. death or property damage. The policy or policies shall contain a clause that the insurer will not cancel or decrease the insurance coverage without first giving the City sixty (60) days notice in writing. (b) Upon written request. Hauler shall furnish the Cry with evidence that the insurance required of it is in force. (c) The types of coverage and limits of liability of all insurance required herein shall be as follows: COVERAGE I LIMITS OF LIABILITY Workmen's Compensation Statutory Employer's Liability S500.000 Bodily Injury Liability except Automobile S1.000.000 each occurrence Property Damage Liability Except Automobile S1.000,000 each aggregate 3 Automobile Bodily Injury S1.000.000 each person Comprehensive General Liability $1.000.000 each occurrence Automobile Property Damage Liability S1.000,000 each occurrence Excess Umbrella Liability $1,000,000 each occurrence 17. Termination: (a) Except as otherwise provided herein, if Hauler breaches this .Agreement or defaults in the performance of any of the requirements or conditions contained herein, and such breach continues for fifteen (15) days after the City has given the Hauler written notice of such breach or default. the City may: (i) terminate this Agreement fifteen (15) days after the fifteen (15) days in which to cure: or (ii) cure the breach or default at the expense of the Hauler: and (iii) have recourse to any other right or remedy to which it may be entitled by law. (b) The City may terminate this Agreement upon written notice to the Hauler if the Hauler makes an assignment for the benefit of creditors, or files a voluntary petition in bankruptcy, receivership or insolvency or files an answer in any involuntary proceeding of that nature admitting the material allegations of the petition, or if a proceeding in bankruptcy. receivership or insolvency shall be instituted against the offending and such proceeding is not dismissed within sixty (60) days. (c) In the event that this Agreement is terminated for any reason, any amounts payable to the City by Hauler for services rendered for any reason whatsoever shall become immediately due and payable as of the date of such termination. 18. All notices required or permitted under this contract shall be submitted in writing to the other party to this contract, by certified mail. return receipt requested. which notice shall be effective three (3) days after deposit therein addressed to the folios% ing: City of Fayetteville Dan Coody, Mayor 113 West Mountain Street Fayetteville, AR 72701 Ozark Sanifohbn Inc Ann- Le ah -Thornn Po Thnx 201 !Ay n9 ("fon PR 19. Hauler agrees and understands that this Agreement and documents submitted to the City pursuant hereto are subject to the Arkansas Freedom of Information Act. If a Freedom of Information Act request is presented to the City of Fayetteville requesting such documents, Hauler will do everything possible to provide the documents in a prompt and timely manner as prescribed in the Arkansas Freedom of Information Act (A.C.A. §25- 19-101 et seq.). Only legally authorized photocopying costs pursuant to the FOIA may be assessed for this compliance. 4 20. This agreement shall be interpreted according to and enforced under the laws of the State of Arkansas. Capitalized terms herein shall have the same meaning as set forth in ADEQ Reg. No. 22. 21. A waiver by either party of any of the terms or conditions herein shall be limited to that particular instance, and shall not be construed as a general waiver of either parry's right to seek appropriate remedies for any other breaches by either party 22. Each paragraph of this Agreement is severable from all other paragraphs. In the event any court of competent jurisdiction determines that any paragraph or subparagraph is invalid or unenforceable for any reason, all remaining paragraphs and subparagraphs shall remain in full force and effect. 23. This contract constitutes the entire understanding of the parities and no modification or variation of the terms of this contract shall be valid unless made in \\Tiling and signed by the duly authorized agents of the City of Fayetteville and the Hauler. 24. Each of the undersigned warrants that he or she has the full right. power, and authority to execute this contract on behalf of the party indicated for the purposes herein contained. 25. To the extent a definition or a specific term is not provided herein but is nonetheless required by the context, it is the intention of the parties to incorporate herein the definitions contained in applicable law and regulation in effect as the date hereof. except to the extent subsequent law or regulation shall expressly or implicitly mandate a revised definition. 26. The obligations of the parties to this Agreement. which by their nature would continue beyond the termination, cancellation or expiration of this Agreement. shall survive the termination (for any reason), cancellation or expiration of this Agreement. IN WITNESS WHEREOF, we have hereunto set our hands on the date first written above. 4:€1‘9.1i.g?4>•, 451.•bi Y • ova z • ;FAYETTEVILLE: Ei tieiT%-70-:•-•ci3KA Ns • • • • 0 41,G.T7014C, "4111111W By: QA."-etkalC( \Attitst0' SONDRA SMITH, City lerk By CITY & FAYETTEVILLE DAN GOODY as Mayor eta de -77.1"/ CLPII9e,,n7 President John Nelson Submitted By City of Fayetteville Staff Review Form City Council Agenda Items or Contracts April 3, 2007 City Council meeting Cate Solid Waste & Recycling Division Action Required: • P-65 113/07 66-07 OZOIK-- /atm -la -kw) ,Tdc, Operations Department A resolution approving an agreement between the City of Fayetteville, Arkansas and Ozark Sanitation, Inc. to haul and dispose of solid waste in the City of Fayetteville. Cost of this request Account Number Project Number Budgeted Item Category / Project Budget Funds Used to Date Remaining Balance Budget Adjustment Attached Program Category / Project Name Program / Project Category Name Fund Name L a. Departmen Direc or City Attorney oz\ Finance and In ernal Service Director Mayor 311_57 Date 31,3/200? Date 3 - 17-4, Date Date Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Received in Mayors Office Comments: • Interdepartmental Correspondence OPERATIONS DEPARTMENT To: Mayor and City Council From: John NeIsoiOperations Mgmt. Accounting Coordinator Date: Subject: Agreement with Ozark Sanitation, Inc. to haul and dispose of solid waste in the City of Fayetteville March 7, 2007 Recommendation: A resolution approving an agreement between the City of Fayetteville, Arkansas and Ozark Sanitation, Inc to haul and dispose of solid waste in the City of Fayetteville. Background: Ozark Sanitation, Inc. has requested to renew their contract to haul and dispose of waste within the City of Fayetteville. The contract will permit Ozark Sanitation, Inc. to haul and dispose of waste in containers twenty (20) cubic yards and greater in size. The agreement requires Ozark Sanitation, Inc. to pay a monthly fee to the City of Fayetteville of ten (10%) percent of the gross revenue. This is the standard agreement authorized by City Council in implementing the contract fee. Discussion: Ozark Sanitation, Inc. entered into this agreement in March 2004. The term of this agreement was three years. Ozark Sanitation, Inc. requests to be permitted to continue to operate within the City of Fayetteville. During the duration of this agreement, no non-compliance issues were noted and fees were remitted accordingly. In January 2005, an audit of Ozark Sanitation, Inc. was conducted by City staff to ensure that adequate policies and procedures were in place and compliant to the terms of the Agreement to Haul and Dispose of Solid Waste in the City of Fayetteville: The results of the audit are attached and reveal that Ozark Sanitation, Inc. does have acceptable procedures in place for capturing revenue generated within the City of Fayetteville. Staff proposes approval for Ozark Sanitation, Inc. to haul and dispose of waste within the City of Fayetteville, per the terms and conditions outlined in the attached agreement, and the hauler's continued remittance of the Required Supporting Information Form with the payment of their monthly franchise fees. RESOLUTION NO. A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT WITH OZARK SANITATION, INC. TO HAUL AND DISPOSE OF SOLID WASTE WITHIN THE CITY LIMITS OF FAYETTEVILLE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CM-, FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City. -o hereby authorizes the Mayor to execute a contract wkitht haul and dispose of solid waste within tl-ti city limits the contract marked Exhibit "A" is attached ereto and PASSED and APP APPROVED: ye emille, • zark Sanitation vile. A art herelo kansas Inc. to opy of 7. Y: SONDRA SMITH, City Clerk/Treasurer Ozark Sanitation, Inc. Audit Report AUDIT PURPOSE: This report contains the results from the audit of Ozark Sanitation, Inc. The audit is to determine if Ozark Sanitation has made a reasonable effort through policies and procedures to adhere to the terms of the contract and determine the level of compliance to any such policies and procedures. REVIEW OBJECTIVES: This audit is to give assurance to the City of Fayetteville that it is receiving proper payment in accordance to the contract entered into by Ozark Sanitation and City of Fayetteville for revenue generated by Ozark Sanitation for waste disposal services generally referred to as open top trash bins. BACKGROUND: The audit began with a meeting between Accounts Receivable Clerks Leah Thomas and Carrie Sanborn and myself to discuss th process for creating the contract required "blind listing of payments" that is use payment. Dunng this meeting they exp Fayetteville with one permanent and an occasi orting documentation for the franchise fee k does very little business in Akpbox customer. They file all invoices by vendor and allowed me full access to:Er r files. I asked for the vendor's name that made up the payment received wi une and September's payment. They quickly supplied me with the vendor list and files. It corresponded accurately to the "blind listing of payments". Using the deposit slip for June and September I took a sample of invoices for the month of August and May. All sample invoices were correctly listed and I found no deviation from the "blind listing of payments" FINDINGS, RECOMMENDATIONS AND ADDITIONAL COMMENTS: Ozark Sanitation, Inc. staff is aware of the need to identify revenue generated within the City of Fayetteville and have adequate procedures in place. I find no deviations that would warrant further examination at this time. [(4/6/2007)Lisa Bran -son - Res 56-07 yege From: To: Date: Subject: Attachments: CC: John, Lisa Branson Nelson, John 4/6/2007 10:22 AM Res 56-07 56-07 Ozark Sanitation.pdf Audit Attached is a copy of the resolution that was passed by City Council, April 3, 2007. If you need anything else just let me know. Have a great day! Thanks, Lisa Lisa Branson City of Fayetteville City Clerk's Division 113 W Mountain Fayetteville, AR 72701 (479) 575 8323 ibransonecifavetteville.ar.u5