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Home My WebLink About202-09 RESOLUTIONRESOLUTION NO. 202-09 A RESOLUTION AUTHORIZING THE ADDITION OF ONE (1) FULL- TIME EMPLOYEE IN THE SOLID WASTE & RECYCLING DIVISION TO MOVE OPERATIONS IN-HOUSE FOR THE SOLID WASTE TRANSFER STATION AND SCALE HOUSE; AND APPROVING A BUDGET ADJUSTMENT IN THE AMOUNT OF $50,000.00. 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 addition of one (1) Full -Time Employee in the Solid Waste & Recycling Division to move operations in-house for the Solid Waste Transfer station and scale house. Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment in the amount of $50,000.00. PASSED and APPROVED this 15th day of September, 2009. APPROVED: By: LI N LD J 1 N, ayor ATTEST: By: '. \c).•b-cY Oi••GF i :c tcj. ••A; : FAYETfEVILLE • 0. s r 4-ii'4uun""" SONDRA E. SMITH, City ClerldTreasurer David Jurgens Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 9/15/2009 City Council Meeting Date Agenda Items Only Solid Waste and Recycling LResolution to approve adding one full time employee for the Solid Waste Division to move operations in house for the Solid Waste Transfer Station and scale house, and approval of a budget adjustment. Division Action Required: Utilities Department $ 12,500.00 $ 12,500.00 $ 12,500.00 $ 12,500.00 Cost of this request 5500.5010.XXXX.XX 5500.5020.XXXX.XX 5500.5030.XXXX.XX 5500.5060.XXXX.XX Account Number Project Number Budgeted Item Dep rtnent Direc r D. City AttomeyP $ 657,290.00 $ 627,022.00 $ 164,041.00 $ 686,161.00 Category / Project Budget $ 400,349.19 $ 430,772.07 $ 91,843.81 $ 535,145.21 Funds Used to Date $ 256,940.81 $ 196,249.93 $ 72,197.19 $ 151,015.79 Remaining Balance Budget Adjustment Attached Finance and Internal Services Director 9-9-200i Date Chief , Staff f4-1-05 XX Services and Charges Services and Charges Services and Charges Services and Charges Program Category / Project Name Commercial Collection Residential Collection Commercial Drop Box Collection Recycling Collection Program / Project Category Name Solid Waste Solid Waste Solid Waste Solid Waste Fund Name Previous Ordinance or Resolution 4 Original Contract Date: Original Contract Number: Comments: Revised January 15, 2009 'rale UTILITIES DEPARTMENT CORRESPONDENCE To: City Council Thru: Mayor Lionel Jordan Don Man, Chief of Staff David Jurgens, Utilities Director September 8, 2009 From: Date: Subject: Meeting Date of September 16, 2009 Operational Response to the Cherokee Nation Breach of Contract for Solid Waste Services- Ordinance Approving Bid Waiver for ECO Vista Management Landfill, Approving two Budget Adjustments RECOMMENDATION City Administration recommends approval the following items to allow the City to continue its trash service after the Cherokee Nation breach of contract (1) one new full time employee in the Solid Waste Division, (2) accepting a letter confirming a rate of $24.00 per ton plus fees with Waste Management to dispose of trash at the Eco Vista Landfill in Tontitown for disposal of trash at $26.35 per ton for 60 days, (2) a bid waiver with Waste Management to dispose of trash at the Eco Vista Landfill in Tontitown for disposal of trash at $26.35 per ton for 60 days; and (4) a budget adjustment for $380,000 for contract services and a budget adjustment for $50,000 for the employee and equipment. BACKGROUND Cherokee Nation has stated in a letter dated August 31, 2009, that they intend to terminate the contract between the Nation and the City for solid waste services including operation of the transfer station and scale house as well as hauling and disposal of the waste. This termination is effective September 30, 2009. The Cherokee Nation has provided solid waste services to the City since September 2006. The contracted rate, after an early adjustment to cover mandated fees, is and has been fixed at $24.47 per ton. The City produced 53,614.44 tons in 2008. Budget numbers are based on this volume remaining unchanged for 2009 and 2010. DISCUSSION There does not appear to be any physical benefit to attempting to force the Nation to continue the contract. They have provided thirty days notice for the City to resolve the issue, rather than simply walking away from the contract as we experienced with our biosolids landfill operation last year. This gives us time to develop a plan to accomplish the mission. The City Attorney is pursuing action to recover damages for the breach in contract. The City is holding a $100,000 cash deposit which serves as the Nation's performance and payment bond. The mission includes the following tasks: 1. Operate the transfer station floor. This requires one full time employee, one bucket loader for loading trash, and one backhoe for compacting trash in the trailer. 2. Operate the scale. This requires one full time employee and a computer system with software. 3. Haul trash to a landfill. This involves hauling trash to a properly licensed and permitted landfill. Hauling trash to the landfill requires a fleet of no less than five tractors, eight walking floor trailers, and four full time employees. We currently haul an average of ten loads per day, Monday through Saturday. Monday is the peak day with (typically) 14 loads. To meet our ADEQ permit, the trash must be hauled the same day. The number of loads one tractor trailer combination can make per day is dictated by the landfill location and operating hours. For example, hauling to the Tontitown landfill, a rig can make 2 — 3 trips per day. Hauling to Russellville, a truck can make one load per day. This mission is currently executed by Roll Off Services by a competitively Cherokee Breach Contract CC Memo 16Sep09.doc aye .eylle UT LITIES DEPARTMENT CORRESPONDENCE Meeting Date of September 16, 2009 bid contract with the City. Roll Off is paid by the City; the City is then reimbursed by Cherokee Nation per the contract. 4. Dispose of the trash at a landfill. This involves negotiating and paying the tipping fee and all other fees (State, District, recycling, post closure fund fees fuel surcharges, etc.) associated with disposal at the landfill. Long Term Proposal. Operate the transfer station floor and scale house with in-house assets, and to contract for haul and disposal through a competitive bid. This solicitation for bids will be published this week. Interim Proposal. Until we can hire a contractor through a published solicitation for bids for haul disposal of our solid waste, staff proposes that we operate the transfer station floor and scale house with in-house assets, and contract for haul and disposal. This will require the following: - Hire two full time employees, one an equipment operator to nin the bucket loader on the floor, and one to run the scale house. Solid Waste has one open budgeted position that can be used. One additional position must be authorized for the division. The cost is estimated at $24,963 for 2009 and $99,850 for 2010. Funds for one position are available within the 2009 Solid Waste budget; the second position will funded by the budget adjustment. - Lease one bucket loader and one backhoe. Fleet is making tentative arrangements. The cost is estimated at $6,500 for 2009. This needs to be funded by the attached budget adjustment. In the future, it may be more cost effective to purchase this equipment. - Purchase a computer and software system for solid waste scale house operation. The cost is estimated at $19,500 in 2009. This needs to be funded by the attached budget adjustment. - Continue the City's existing contract with Roll Off Services to haul trash to the Eco Vista Landfill in Tontitown. This contract would be part of the long term competitive bid for hauling and disposing of the trash. Contracting this service avoids the capital and operational expenses of purchasing the tractor -trailer fleet. This needs to be funded by the attached budget adjustment as Cherokee Nation was reimbursing the City for this cost. - Dispose of the trash at the Eco Vista Landfill in Tontitown for a negotiated price of $24.00/ton plus $2.35/ton in fees. This is the price Cherokee Nation has been paying. The disposal landfill and the per -ton price would be part of the long term competitive bid for hauling and disposing of the trash. For the short term plan, this requires a bid waiver to accept the negotiated $24.00/ton price, plus $2.35/ton in fees, and needs to be funded by the attached budget adjustment. Long term impacts. Operating the transfer station in-house opens up opportunities to the City to maximize use of the transfer station to other local haulers, gradually increasing overall revenue over the next few years. BUDGET IMPACTS Impacts to the 2009 budget are shown below. Two budget adjustments are being presented: one for $380,000 for contract services and one for $50,000 for the employee and equipment. Work Task Contract Rates 2006 thru present Current Annual Cost Interim rates October to December 2009 Estimated October December Cost through 2009 Operate Floor and Scale $3.50 $ 187,649.00 $ 44,463.00 Hauling $5.50 294,877.00 $ 6.00 80,421.00 Disposal $13.97 748,987.58 $ 24.00 321,684.00 Environmental Fees $1.50 80,421.00 $ 2.35 31,498.23 Total Cost $24.47 $ 1,231,513.58 $ 32.35 $ 446,568.00 Tonnage (using 2008 actual) 53,614 13,404 Total 2009 Cost Increase $ 138,689.61 Cherokee Breach Contract CC Memo 16Sep09.doc RESOLUTION NO. A RESOLUTION AUTHORIZING THE ADDITION OF ONE (1) FULL-TIME EMPLOYEE IN THE SOLID WASTE & RECYCLING DIVISION TO MOVE OPERATIONS IN-HOUSE FOR THE SOLID WASTE TRANSFER STATION AND SCALE HOUSE; AND APPROVING A BUDGET ADJUSTMENT IN THE AMOUNT OF $50,000.00. 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 addition of one (1) Full -Time Employee in the Solid Waste & Recycling Division to move operations in-house for the Solid Waste Transfer station and scale house. Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment in the amount of $50,000.00. PASSED and APPROVED this 15th day of September, 2009. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITI3, City Clerk/Treasurer Job Grading Request Form Instructions: Before a job grading request form is completed, a required meeting should occur with the designated HR representative. The purpose of this meeting is to 1) Make sure the job description is current and contains all the necessary information needed by the MAG job grading committee; 2) Make sure the lob changes are significant enough to merit the lengthy Committee review; and 3) Make sure the requestor is aware of how the Job grading process works, how to fully prepare for their role at the Committee meeting, etc.. After the meeting with HR has taken place, please complete this form and have it signed. Then return it to HR. The Job may then be submitted by HR to the Job grading committee for review. Important Note: It is always possible that existing City fobs submitted for grading may end up being graded the same, higher, or lower than the current lob grade. If the fob is graded higher, it does not necessarily follow that the person in that lob will receive a raise. A raise would involve budget considerations and administrative approval by, at a minimum, the City Finance Director, the Chief of Staff, and anyone else designated by them to approve the raise. If the lob is graded lower, the person presently in the position will not receive a pay cut. However, the next person hired or transferred into the position would be subiect to the pay range limitations, including the maximum salary allowed. Current Job Title: New Job Title (If applicable): Scale House Attendant Please attach a copy of the former job description and the new, proposed job description. Check here that this has been done: X Please explain what changes have occurred that led you to request a review of the Job grade: Contractor breeched agreement with division; Solid Waste must take over operations by October 1, 2009. If new duties have been added, were these duties removed from another position? \allo. If yes, which position(s) was previously performing these duties? Please attach a copy of the job description from which the duties were removed. Check here that this has been done: HR ' epresentativ e u after meeting ha Division Head Date Finance Director Date Wardle evi le �v / ARKANSAS CITY OF FAYETTEVILLE Position Description POSITION TITLE: Scale House Attendant EXEMPT (Y/N): No DEPARTMENT: Utilities SUPERVISOR: Office Manager DIVISION: Solid Waste & Recycling DATE REVISED: September 2009 Job Grade: ESSENTIAL DUTIES AND RESPONSIBILITIES: Note: All City of Fayetteville positions require the employee to provide good customer service to both internal and external customers, maintain positive and effective working relationships with other City employees (especially members of his or her own team), and have regular and reliable attendance that is non -disruptive. Other essential duties of this position include the following: 1. Operate the scale house computer to obtain weight records of customers and waste haulers/incoming/outgoing. 2. Maintain and keep all scale tickets for the City's transfer stations. Type in customer information, print scale ticket/receipts, file tickets into appropriate categories and process necessary paperwork for deposit. 3. Receive customers onto the scale and direct them to the correct off loading facility. 4. Once materials have been off-loaded, work with customer to finish the scale process. 5. Receipt in monies from various sources including the customers. 6. Balance tickets and cash drawer daily. 7. Answer customer questions in person and over the phone. 8. Print and file daily and weekly reports as required. 9. Maintain a clean work area including counter and windows. 10. Perform other duties as assigned. SECONDARY DUTIES AND RESPONSIBILITIES include the following: 1. Contact bad debt and collect before rendering new service. 2. Secondary duties as assigned. MINIMUM QUALIFICATIONS 1. High school diploma or GED is required. Prefer 1 year of customer service or cashier related experience. 2. Must possess a valid Arkansas Driver's License. 3. Effectively communicate with others orally and in writing. 4. Must be able to add, subtract, multiply and divide. 5. Must be proficient in the use of personal computer and other related software programs such as Microsoft Word or Excel. 6. Must be able to operate standard office equipment. 7. Bilingual (English and Spanish) preferred. 8. While performing the functions of this job, the employee is regularly required to talk and hear. The employee regularly is required to stand, walk, and sit; use hands to finger, handle, or feel. The employee must regularly lift up to 10 pounds and occasionally lift and/or move up to 25 pounds. Specific vision abilities required by this job include close vision, distance vision, color vision, peripheral vision, depth perception, and ability to adjust focus 9. While performing the functions of this job, the employee duties are done in the scale house but may be exposed to outdoor conditions. The noise level in the work environment is often loud. Scale House Attendant 1 August 31, 2009 GWY9 DBP CHEROKEE NATION" P.O. Box 948 •'hhlequah. OK 74465-09 8 • (918) 433-3000 City of Fayetteville 113 West Mountain Street Fayetteville, AR 72701 Attn: Don Marr, Chief of Staff OIrG] Chad "Comtassel" Smith Principal Chief JLOa J6hc ) Joe Grayson, Jr. Deputy Principal Chief Reference: Operation of the Fayetteville Transfer Station Dear Mr. Marr, This letter is to advise you that the Cherokee Nation will be terminating the services provided by Cherokee Nation Waste Management, LLC ("CNWM") at the City of Fayetteville's Transfer Station effective October 1, 2009. CNWM's last day to provide these services will be Wednesday, September 30, 2009. Should you have any questions regarding this matter, please contact my office. Very Truly Yours, //* 45# Melanie Knight Secretary of State Cc: Carrol Hill, Solid Waste & Recycling Division THE CITY OF FAYETTEVILLE, ARKANSAS September 3, 2009 Secretary of State Melanie Knight Cherokee Nation P.O. Box 948 Tahlequah, OK 74465-0948 RE: Contract with the City of Fayetteville Dear Secretary Knight: Thank you for your letter of August 31, 2009. We regret that you have decided to breach the Agreement To Transport And Dispose Of Municipal Solid Waste And For Operation Of Transfer Station that was agreed to by the City of Fayetteville and the Cherokee Nation on April 4, 2006. The term of the agreement began on September 26, 2006, and was for five years. Nothing within the Agreement gives either the Cherokee Nation or City of Fayetteville the right to unilaterally terminate its responsibilities under the agreement. Your letter of August 31, 2009 to me in which you state "the Cherokee Nation will be terminating the services provided by the Cherokee Nation Waste Management, LLC (`CNWA') at the City of Fayetteville's Transfer Station effective October 1, 2009," constitutes a clear and irrevocable breach of our agreement. The City must immediately take measures in an attempt to reduce the amount of damages your breach of contract will cause our citizens and our City. The City of Fayetteville has performed all of its responsibilities pursuant to our agreement for the last three years and stood ready and willing to continue to abide by our agreement with you for the remaining years of our agreement. The City does not consent or agree to your unilateral and unjustified termination and breach of our agreement. The City of Fayetteville will be left with no choice but to recover from you the full amount of damages our citizens and City have and will suffer from your breach of contract. The amount of these damages will be substantial, but will not be clear until the City is able to contract with responsible parties to provide the services you had promised to provide us for five years. Because of your failure to pay the full amount of previously owed debt to the City of Fayetteville, we have had to withhold transmission of checks to you. Although we had prepared the checks and were ready to forward them to you once you paid your agreed overdue debt to us, 113 WEST MOUNTAIN 72701 479-575-8330 FAX 479-575-8257 Secretary of State Melanie Knight Cherokee Nation Page 2 we cannot send these checks to you now, but must hold them as setoffs against the substantial damages we will suffer in the future because of your breach of contract. We will continue to fully account for all revenues and charges related to our agreement. The Cherokee Nation will receive full credit for these setoffs upon the determination of our damages. The City of Fayetteville regrets that the Cherokee Nation has broken our long standing agreement. We hope we can amiably arrive at a fair settlement that fully compensates the City of Fayetteville's losses caused by your breach and enhances the prospect of mutually beneficial agreements between the City of Fayetteville and the Cherokee Nation in the future. incerely, ON MARR ief of Staff DM/ cc: Principal Chief Chad Smith Attorney General Diana Hammons Mayor Lioneld Jordan, Fayetteville Kit Williams, Fayetteville City Attorney P iii BeckeY;Fayetteville Finance -Director" ya�F'le e�ville THE CITY OF FAYETTEVILLE, ARKANSAS 9/04/2009 CHEROKEE NATION PO BOX 490 FORT GIBSON, OK 74434 To Whom This May Concern, Invoices due from Cherokee Nation per the attached statement are $152,359.44, less payments due Cherokee Nation as follows. Date 6/30/2009 4/30/2009 Invoice # 60312 307 Amount $ 99,878.02 $107,185.08 $207,063.10 As of 9/4/2009, Cherokee Nation has a credit balance in the amount of $ 54,703.66. _This will be applied against future breach of contract amounts due from Cherokee Nation. 113 WEST MOUNTAIN 72701 479-521-7700 FAX 479.575.6257 Pawl Paul A Becker Finance Director City of Fayetteville Telecommunications Device for the Deaf 479-521-1316 City of Fayetteville, Arkansas Budget Adjustment Form Budget Year 2009 Department: Division: Program: Date Requested 9/15/2009 Adjustment Number Project or Item Added/lncreased: Cost of adding one full time employee to operate the scale house due to Cherokee Nation's breach of the contract by which they currently operate the scale house. Funds are needed to cover three months of expenses through December 31, 2009. Project or Item Deleted/Reduced: Funds are being drawn from Solid Waste reserves. Justification of this Increase: Breach of contract by Cherokee Nation requires the City assume the responsibility for scale house operation. Justification of this Decrease: Sufficient funds remain to cover reserve requirements. Account Name Account Name Increase Budget Account Number Decrease Budget Account Number 4 'rector Date Dep• ��ntDi'ctor FinancY rector Chie ay; "ISA 2.0101. Date Date ate Type: A Amount Project Number Amount Project Number Budget & Research Use Only B C Requested By General Ledger Date Posted to General Ledger Posted to Project Accounting V.090403 E Ginny Gundlach Initial Date Initial Date Budget Adjustment Detail Backup U a COCO N a E Z c 0 0 8 N O N 0 0 O 0 CO O N O O ui 0 0 0 0 0 0 m O N 0 0 O 0 M N O 0 (V N O 0 LO 0 0 0 N O N co co To1- N 0 0 0 N O LO 0 u� 0 0 O O LO 0 0 0 0 N O U c m co L N 5500.5040.5 U c t6 co c 0 J 0 0 U 0 O h O U c m (0 0 0 oorr 0 0 V 0 O N o) O M N N 0 0 0 O h O 72)- u_ LL c9 O O O M 0 0 0 0 0 0 O 0 0 M 0 A 0 0 0 0 0 O N C To 2 C G) o c CC L C U N s E 6 5 N W N • 00 Oo 00 00 LO LO O O O O O id Waste\Budget Adjustments \BA_09-xxx_Transfer Station Labor & Equipment_Sep09.xls K:\01_Financial Services\Budget\2009 Budge