HomeMy WebLinkAbout71-07 RESOLUTIONRESOLUTION NO. 71-07
A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE A
CONTRACT WITH SUGAR CREEK ROLLOFF, LLC 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 Sugar Creek Rolloff, LLC 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.
PASSED and APPROVED this 17th day of April, 2007.
APPROVED:
By:
DAN COODY, Mayor
ATTEST.
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SONDRA SMITH, City Clerk/Treasurer
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AGREEMENT TO HAUL AND DISPOSE OF SOLID WASTE
IN THE CITY OF FAYETTEVILLE
This Agreement (the "Agreement"), is entered into on thispt�day of 664_'r 2007,
et�wee the//C , oV ayetteville, Arkansas, a municipal corporation (the City"), and
Xld (the "Hauler"), and shall be in full force and effect on the date first
written above. City and Hauler agree as follows:
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.
The term of this Agreement shall be for three (3), years, unless otherwise terminated
^pursuant to the terms hereof.
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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 may be
established and amended, from time to time.
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_offees=received-afterrthe-due-date--shall-be assessed a2% 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; (11) 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
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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.
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.
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 drivers' licenses 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``ap`phcable federal and
state laws.
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.
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 well-maintained and that all containers are well-maintained and
.�... _ water-tight;4f=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
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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 or bis successor. The Point of Contact for the Hauler shall be
011 Jrt4sS? 1! . 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 defensersettlernent and reasonable
attorneys' fees), to the extent caused by (i) Hauler's breach of any term, condition,
covenant or warranty contained in this Agreement, or (ii) Hauler's 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 City 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
LIMITS
OF
LIABILITY
Workmen's Compensation
Statutory
Employer's Liability
$500,000
Bodily Injury Liability except
Automobile
$1,000,000 each
occurrence
Property Damage Liability
Except Automobile
$1,000,000 each aggregate
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Automobile Bodily Injury
$1,000,000 each person
Comprehensive General
Liability
$1,000,000 each
occurrence
Automobile Property Damage
Liability
$1,000,000 each
occurrence
Excess Umbrella Liability
$1,000,000 each occurrence
17. Termination:
(a) Except as otherwise provided herein, if_Hauler_breaches .this -Agreement-or=m-^"--=ro+mit•-a-*i'
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: (1) 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 following:
City of Fayetteville
Dan Coody, Mayor
113 West Mountain Street
Fayetteville, AR 72701
Attn:
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.
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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 party'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 constitutesthe entire understanding of the parities and no modification or
variation of the terms of this contract shall be valid unless made in writing and signed by
the duly authorized agents of the City of Fayetteville and the Hauler' awe '�"s" "
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.
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By:
SONDRA SMITH, City Clerk
CITY OF FAYETTEVILLE
D N COODY as Mayo:
By id, ?..<.,,,ze
President
John Nelson
Submitted By
City of Fayetteville
Staff Review Form
City Council Agenda Items
or
Contracts
April 17, 2007
City Council Meeting Date
Solid Waste & Recycling
Division
Action Required:
07107
71-07
3cgr Crieik
Operations
Department
A resolution approving an agreement between the City of Fayetteville, Arkansas and Sugar Creek Rolloff, LLC 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
Department irec or
CDD
City Attorney
3.2b,G---7
Date
64t n €(4/2067
Date
-PQ.-9, a . Q,..,
Finance and Internal Service Director
44.
ayor
Comments:
�f -�-zoo,
Date
(714
4
Previous Ordinance or Resolution #
Original Contract Date:
Original Contract Number:
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Interdepartmental Correspondence
OPERATIONS
DEPARTMENT
To: Mayor and Citx Council
From: John Nelsorkl( perations Mgmt. Accounting Coordinator
Date: March 21, 2007
Subject: Agreement with Sugar Creek Rolloff, LLC to haul and dispose of solid waste
in the City of Fayetteville
Recommendation: A resolution approving an agreement between the City of Fayetteville,
Arkansas and Sugar Creek Rolloff, LLC to haul and dispose of solid waste in the City of
Fayetteville.
Background: Sugar Creek Rolloff, LLC has requested to renew their contract to haul and
dispose of waste within the City of Fayetteville. The contract will permit Sugar Creek Rolloff,
LLC to haul and dispose of waste in containers twenty (20) cubic yards and greater in size The
agreement requires Sugar Creek Rolloff, LLC 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: Sugar Creek Rolloff, LLC entered into this agreement in March 2004. The term of
this agreement was three years. Sugar Creek Rolloff, LLC 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 Sugar Creek Rolloff, LLC 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 Sugar Creek Rolloff, LLC does have acceptable
procedures in place for capturing revenue generated within the City of Fayetteville.
Staff proposes approval for Sugar Creek Rolloff, LLC 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.
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A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE A
CONTRACT WITH SUGAR CREEK ROLLOFF, LLC TO HAUL
AND DISPOSE OF SOLID WASTE WITHIN THE CITY LIMITS OF
FAYETTEVILLE.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CLIW
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City a'f aye e lle, Arkansas
hereby authorizes the Mayor to execute a contract wr S gar Creek Rollo f, LLC
to haul and dispose of solid waste within the city limit of Fa teville. Ah opy of
the contract marked Exhibit "A" is attachdereto and mlade part hereIli .
PASSED and AP ,RItD this 1
APPROVED:
07.
By: i tell h.�Y
SONDRA SMITH, City Clerk/Treasurer
Sugar Creek Rolloff, L.L.C.
195 Little Missouri Road
Pineville, MO 64856
417-226-0076 Fax: 417-226-3051
March 12, 2007
Gary Dumas
Director of Operations
113 West Mountain
Fayetteville, AR 72701
Dear Mr Dumas:
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Enclosed you will find the completed agreement along with the requested documentation
for request in continuance of our service in the city of Fayetteville.
I apologize for the delay in returning correspondence, I have been absent from work for
quite some time and I am the only person who handles the office duties. Please let me
know if you have any further questions regarding this matter.
i erel
;rnc
m Russ •11
ffice Manager
aye eve.
ARKANSAS
OPERATIONS DIRECTOR
February 23, 2005
Sugar Creek Roll Off, L.L.C.
Attn: Mr. Kim Russell
195 Little Missouri Road
Pineville, MO 64856
Dear Mr. Kim Russell,
On behalf of the City of Fayetteville I would like to thank you and your staff for your
cooperation during our recent audit engagement. The audit revealed that Sugar Creek
Roll Off, L.L.C. procedures for capturing revenue generated with in the City of
Fayetteville are adequate and that no other action is required at this time. Again, thank
you.
Sincerely,
SACCS411
Gary Dumas
City of Fayetteville
Director of Operations
CC: Michael Justice
113 West Mountain
Fayetteville, Arkansas 72701
Office phone - 479-575-8330
Fax - 479-5754257
E-mail - gdumasQci.fayctteville.ar.us
COPY
Sugar Creek Rolloff, L.L.C.
Audit Report
AUDIT PURPOSE:
This report contains the results from the audit of Sugar Creek Rolloff, L.L.C. The audit
is to determine if Sugar Creek 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 Sugar Creek Rolloff and City of
Fayetteville for revenue generated by Sugar Creek Rolloff for waste disposal services
generally referred to as open top trash bins.
BACKGROUND:
The audit began with a meeting between Kim Russell, Office Manager, and myself to
discuss their process for creating the contract required "blind listing of payments" that is
used as supporting dociimentation•for the franchise fee payment. During this meeting she
explained Ozark does regular 30 yard dropbox business in Fayetteville with two to three
permanent customers and with an occasional temporary dropbox customer. Mrs. Russell
files all invoices by vendor and allowed me full access to all vendor files. Sugar Creek
uses QuickBooks software. I asked for the vendor's name that made up the payment
received with June and September's payment. She quickly supplied me with the vendor
list and files. It corresponded accurately to the "blind listing of payments". The report is
created by using the drill down feature of QuickBooks and is drilled by tax Jurisdiction.
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:
The Sugar Creek Rolloff, L.L.C. staff is aware of the need to identify revenue generated
within the City of Fayetteville and have adequate procedures in place. I suggested they
work on getting their drivers to complete the pick up tickets to include the disposal site.
This will make it easier to determine if trash or recyclables are being hauled. Mrs.
Russell agreed and I expect it to be implemented in the future. I find no deviations that
would warrant further examination at this time.
COPY
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1(4.23.07) Clarice Pearman - Res. 71-07Page 1
From: Clarice Pearman
To: Nelson, John
Date: 4.23.07 3:52 PM
Subject: Res. 71-07
Attachments: 71-07 Sugar Creek Rolloff LLC.pdf
CC: Audit
John:
Attached is a copy of the above resolution passed by City Council, April 17, 2007 regarding Sugar Creek Rolloff LLC Have a
good day.
Thanks.
Clarice