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113 West Mountain Street
Fayetteville, AR 72701
(479)575-8323
Resolution: 212-16
File Number: 2016-0553
KANSAS E3, LLC:
A RESOLUTION TO APPROVE AN AGREEMENT WITH KANSAS E3, LLC FOR THE HAULING
AND RECYCLING OF SOLID WASTE GENERATED FROM CONSTRUCTION AND DEMOLITION
ACTIVITIES IN THE CITY 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 approves an agreement with
Kansas E3, LLC, a copy of which is attached to this Resolution, for the hauling and recycling of solid
waste generated from construction and demolition activities in the City of Fayetteville.
PASSED and APPROVED on 12/6/2016
Page 1
Attest:
Sondra E. Smith, City Clerk TreAr • • • . , f ,•,
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Printed on 1217116
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Text File
File Number: 2016-0553
Agenda Date: 12/6/2016 Version: 1 Status: Passed
In Control: City Council Meeting File Type: Resolution
Agenda Number: A. 7
KANSAS E3, LLC:
A RESOLUTION TO APPROVE AN AGREEMENT WITH KANSAS E3, LLC FOR THE HAULING
AND RECYCLING OF SOLID WASTE GENERATED FROM CONSTRUCTION AND
DEMOLITION ACTIVITIES IN THE CITY 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 approves an agreement
with Kansas E3, LLC, a copy of which is attached to this Resolution, for the hauling and recycling of
solid waste generated from construction and demolition activities in the City of Fayetteville.
City of Fayetteville, Arkansas Page 1 Printed on 12/7/2016
City of Fayetteville Staff Review Form
20.5-0553
Legistar File ID
X2/6/2016
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Holly Gordon 11/15/2016 Transportation Services /
Transportation Services Department
Submitted By Submitted Date Division / Department
Action Recommendation:
A resolution approving an agreement between the City of Fayetteville, Arkansas and Kansas E31 LLC to haul and
dispose of solid waste in the City of Fayetteville.
Budget Impact:
Account Number Fund
Project Number Project Title
Budgeted Item? NA Current Budget $ -
Funds Obligated $ -
Current Balance S
Does item have a cost? No Item Cost
Budget Adjustment Attached? No Budget Adjustment
Remaining Budget
V20140710
Previous Ordinance or Resolution #
Original Contract Number:
Comments:
Approval Date:
CITY OF
Tay Aq
ARKANSAS
MEETING OF DECEMBER 6, 2016
TO: Mayor and City Council
THRU: Don Marr, Chief of Staff
Terry Gulley, Transportation Director
FROM: Holly Gordon, Financial Analyst
DATE: November 15, 2016
CITY COUNCIL AGENDA MEMO
SUBJECT: Agreement with Kansas E3, LLC to haul and dispose of solid waste in the City of
Fayetteville
RECOMMENDATION:
Staff recommends a resolution approving an agreement between the City of Fayetteville,
Arkansas and Kansas E3, LLC to haul and dispose of solid waste in the City of Fayetteville.
BACKGROUND:
Kansas E3, LLC has requested to haul and dispose of solid waste within the City of Fayetteville
limits. The contract will permit Kansas E3, LLC to haul and dispose of waste in containers
twenty (20) cubic yards and greater in size. The agreement requires Kansas E3, LLC to pay a
monthly fee to the City of Fayetteville of five (5%) percent of the gross revenue received from
services provided within the city limits.
DISCUSSION:
The term of the agreement will be two (2) years with automatic renewals for two (2) additional
two (2) year terms. Kansas E3, LLC requests permission to operate within the City of
Fayetteville. Staff proposes approval for Kansas E3, LLC to haul and dispose of waste within
the City of Fayetteville, per the terms and conditions outlined in the attached agreement.
BUDGET/STAFF IMPACT:
Attachments:
E3 Franchise Agreement with City of Fayetteville 10.20.16.pdf
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
AGREEMENT TO HAITI, AND DISPOSE OF
RECYCLING IN THE CITY OF FAYETTE'VILLE
This Agreement (the "Agreement"), is entered into on this day of 2016, between
the City of Fayetteville, Arkansas, a municipal corporation (the "City"), and Kansas E3, LLC (the
"Hauler"), and shall be in full force and effect on the date first written above, City and Hauler agree as
follows:
1. The term of this Agreement shall be for two (2) years, with automatic renewals for two (2)
additional two (2) year terms, unless otherwise terminated pursuant to the terms hereof. Notice of
non -renewal by either City or Hauler shall be given at least thirty days prior to the end of the
current term.
2. 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, excluding residential areas,
entered into before or after the effective date of this Agreement, or renewed shall have terms of no
more than one (1) year and any subsequent extensions shall be for terms of no more than one (1)
year. No customer service Agreement shall extend the terms of this Agreement.
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 construction/demolition activities. hauler
is not authorized to collect or haul any other tyle of solid waste or recyclable materials.
However, this does 'not preclude Hauler from requesting an amendment to this agreement to
expand the types of materials it may collect after the City adopts a new Solid Waste Master Plan.
4. In consideration of the right to provide the hauling of solid waste and/or recyclables described in
Item #3 above, Hauler agrees and understands that it shall be required to pay a monthly fee of five
(5%) percent (the "Recycling Fee") of the gross revenue received for providing the hauling of the
recyclables.
Hauler agrees and understands that it 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 landfill fees
to the landfill operator, as they may be established and amended, from time to time.
6. Hauler shall pay all fees due hereunder, along with submitting "Attachment B: Recycling
Documentation", on or before the 15th of each calendar month for the immediately preceding
calendar month. Payments of fees received after the due date shall be assessed a 10% penalty per
month. If Hauler fails to pay the fees within forty-five (45) days of the due date, the City may
terminate this Agreement upon delivery of one (1) 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) volumes of recycling collected, in tons, by commodity, with
disposition by destination market, for all source separated recycling; (ii) for any approved non -
source separated program, the Hauler shall submit to the City by June 301h on annual basis, copies
of contracts with processing mills; (iii) for any approved non -source separated program, the
amounts, in tons, of recycling collected within Fayetteville, with disposition by destination market.
Page 1 of 5
With payment remittance, the City will review and obtain certain trade secret information,
including rates, frequency of service, customer lists, other customer information, and contracts
with recyclers and processing mills ("Confidential Information"). The City asserts this
information is exempt from disclosure under the Arkansas Freedom of Information Act as the
information meets the exemption for records that "if disclosed would give advantage to
competitors." This information will only be reviewed by City financial staff, and will not be made
available to City solid waste staff. Any Hauler found providing services for non -source separated
recyclables without prior approval by the City shall be subject to a fee of $500.00.
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
and obtain certain trade secret information, including rates, frequency of service, customer lists,
and other customer information ("Confidential Information"). This information shall not be
divulged to any third party by the City, its employees, officers, or elected officials without the
express written consent of the Hauler, or as otherwise required by law. The City asserts this
information, is exempt from disclosure under the Arkansas Freedom of Information Act as the
information meets the exemption for records that "if disclosed would give advantage to
competitors." This information will only be reviewed by City financial staff, and will not be made
available to City solid waste staff.
8. The City will advise Hauler of any request for information which the City, at the City's sole
discretion, determines to be non -disclosable or otherwise subject to an exemption from disclosure
under the Arkansas Freedom of Information Act. If a court of competent jurisdiction determines
that said requested information is disclosable or otherwise is not exempt from disclosure under the
Arkansas Freedom of Information Act, the City will comply with said finding and notify Hauler.
Discovery requests made to the City during the course of any litigation, or any other subpoena or
court order issued to the City for information or records related to Hauler and this Agreement, shall
be promptly made known to Hauler.
9. Hauler agrees and understands that it shall submit to the City by June 30a` on an annual basis: (i)
a list of all commercial vehicles used to provide services in the City; (ii) proof of appropriate
vehicle registration; (iii) and proof of the insurance required under Section 16.
10. Hauler agrees and understands that it shall provide by June 30th on an annual basis: (i) a list of
vehicle operators collecting and hauling waste in the City of Fayetteville; (ii) proof of their valid
and appropriate commercial drivers' licenses; (iii) and the provision, maintenance, and
implementation of a plan to ensure that the vehicle operators maintain their commercial driver's
licenses in accordance with applicable federal and state laws.
11. Hauler agrees that it shall provide by June 30`h on an annual basis copies of valid and current
hauling and disposal permits from the Arkansas Department of Environmental Quality, the Solid
Waste District with jurisdiction, and any local permitting agency.
12. 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.
Page 2 of 5
13. 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, if necessary.
14. If Hauler utilizes the City's transfer station, 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. 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.
15. 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 of or relate in any way
to any license or ordinance created pursuant to A.C.A. §26-77-102.
16. Neither this Agreement, nor any rights or obligations hereunder may be assigned or transferred to
any third part or affiliate.
17. For the purpose of this contract, the Point of Contact for the City of Fayetteville shall be the City's
Chief of Staff. The Point of Contact for the Hauler shall be
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.
18. 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 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.
19. 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) City will be added as an additional insured on General Liability and Auto Liability
policies.
d) The types of coverage and limits of liability of all insurance required herein shall
be a follows:
Page 3 of 5
COVERAGE
LIMITS OF LIABILITY
Worker'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
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
20. Termination:
a) Except as otherwise provided herein, if Hauler breaches this Agreement or defaults
in the performance of any of the requirement 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
no sooner than thirty (30) days after the date of written notice of such breach or
default; .(ii) cure the breach or default at the expense of the Hauler; and/or (iii)
exercise any right or remedy to which it may be entitled by law.
b) The City may tenninate 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 tiles 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 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.
21. All notices required or permitted under this contract shall be subnnitted in writing to the other party
of this contract, by U.S. Mail, which notice shall be effective three (3) days after deposit therein
addressed to the following:
City of Fayetteville Kansas E3, LLC
Chief of Staff Attn: Ed Mount
113 West Mountain Street P. O. Box 2035
Fayetteville, AR 72701 Bentonville, AR 72712
22. 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 Freedorn of Information Act
request is presented to the City of Fayetteville requesting such non-exempt documents, such non -
Page 4 of 5
exempt documents shall be provided in a prompt and timely manner as prescribed in the Arkansas
Freedom of Information Act (Ark. Code Ann. § 25-19-101 et seq.). Only legally authorized
photocopying costs may be assessed for this compliance.
23. 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.
24. A waiver by either party of any of the tenns 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.
25. Each paragraph of the 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.
26. This contract constitutes the entire understanding of the parties and no Notification 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.
27. 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.
28. 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.
29. 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.
CITE' ONTA
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ATTEST:
KANSAS E3, LLC
Mayor Printed Name:
Managing Member
By: LJIL-6 L"
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Page 5 of 5
E3LLC-1 OP ID -.LC
ACORN°DATE
CERTIFICATE OF LIABILITY INSURANCE
(MMlDDlYVYY)
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10/27/2016
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER($), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to
the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the
certificate holder in lieu of such endorsement(s).
PRODUCER
CONTACT Bruce Armstrong _
NAME:
PHONE 479-443-0808 aC No : 479-443-0807
Arc No Ext
Armstrong -Hailey Insurance
3887 N. Crossover Rd.
ADDRESS:
Fayetteville, AR 72703
AFFORDING COVERAGE- NAIC #
Bruce Armstrong
CLAIMS -MADE OCCUR
INSURER A: Colony Insurance Company
INSURED E3, LLC
INSURER B: Riverport Insurance Co.
PO Box 2035
INSURER 0: Progressive Insurance j142919
Bentonville, AR 72712
INSURERD ; Westchester Surplus Lines i
,
INSURER E:
INSURER F
cn%A=0Ar_Fs r.FRTIPIr.ATF NIIMRFR- REVISION NUMBER:
vTHIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR.OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR
TYPE OF INSURANCE
ADOLSUBR
POLICY NUMBER
POLICY EFF : POLICY EXP
MMlDD/YYYY ` MMIDD/YYYY
LIMITS
A
X COMMERCIAL GENERAL LIABILITY
EACH OCCURRENCE $ 1,000,00
CLAIMS -MADE OCCUR
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DAMAGE T RENTED occu100,00
PREMISES Ea rrence $
MED EXP (Any one person) $ 5,00
PERSONAL "DVINJURY _ $ 1,000,00
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GENERAL AGGREGATE $ 2,000,00
PRODUCTS-COMP/OPAGG$ INCLUDE
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AUTOMOBILE LIABILITY
COMBINED SINGLE LIMIT $ 300,00
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BODILY INJURY (Per person)
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03/04/2017
BODILY INJURY (Per accident) $
ALL OWNED �( SCHEDULED
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DESCRIPTION OF OPERATIONS I LOCATIONS 1 VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached It more space is required)
110
HOGUELA
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE . EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
Hogue Law Firm, PLLC ACCORDANCE WITH THE POLICY PROVISIONS.
PO Box 4220
Fayetteville, AR 72702 AUTHORIZED REPRESENT ,y
Bruce Armstr ,
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