HomeMy WebLinkAbout2001-034
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Resolution No. 2001-34
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH BURRTEC WASTE INDUSTRIES, INC.,
FOR THE PROVISION OF COMMINGLED RECYCLABLES PROCESSING.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor is hereby authorized and directed to execute on behalf of said
City an Agreement (hereto marked "Exhibit 1") with Buntec Waste Industries, Inc., for the
provision of commingled recyclables processing as set forth in their proposal dated December 21,
2000 (hereto marked "Appendix 1") and incorporated herein by reference as fully as though set
forth at length. Term of said Agreement shall commence as set forth on date of Council approval
for a period of two (2) years, with three (3) one-year options of renewal, for a maxirmun of five (5)
years,
SECTION 2. The authorization to execute the above referenced Agreement
is rescinded if the parties to the Agreement fail to execute it within sixty (60) days of the passage
of this resolution.
I I I I I
IIIII
I I I I I
IIIII
IIIII
I I I I I
IIIII
IIIII
I I I I I
I I I I I
Januaty 12, 2001
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
2001-34
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE .'
EXECUTION OF AN AGREEMENT WITH BURRTEC WASTE INDUSTRIES, INC.,
FOR THE PROVISION OF COMMINGLED RECYCLABLES PROCESSING.
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and
Common Council of the City of San Bernardino at a joint regular meeting thereof, held on
the 5th
day of
,2001, by the following vote, to wit:
February
Council Members:
Abstain
Absent
ESTRADA
Ayes Nays
X
X
X
X
~
X
X
LIEN
McGINNIS
SCHNETZ
SUAREZ
ANDERSON
McCAMMACK
~.hc~
Rachel Clark, City Clerk
City of San Bernardino
The foregoing resolution is hereby approved this 8th
day of
February , 2001.
~cd~
Susan Lien, Mayor Pro Tern
City of San Bernardino
Approved as to form and
Legal content;
James F. Penman, City Attorney
24
25 BY:
26
27
28
Janu:uy 12, 2001
2
2001-34
Exhibit 1
AGREEMENT
THIS AGREEMENT is entered into as of this 8th day of February ,
2001, by and between BURRTEC WASTE INDUS1RIES, INC., (CONTRACTOR) and the CITY
OF SAN BERNARDINO (CITY).
WITNESSETH:
A. WHEREAS, the State of California enacted the Solid Waste Management Act of 1989
which requires each City and County within the State to reduce the amount of solid waste clisposed of
by 50% by the year 2000 through source reduction, recycling, and composting; and,
B. WHEREAS, the CITY adopted its Source Reduction and Recycling Element in March,
1992 in which the CITY proposed to meet its cliversion mandate by a variety of programs, one of
which is the implementation of a curbside residential program that collects and processes commingled
recyclables, thereby cliverting these resources from landfill clisposal and conserving natural resources;
and,
C. WHEREAS, the CITY issued a Request for Proposal to identify commingled
recyclables processing options that would place a significant emphasis on the widest variety of materials
to be recycled; and,
D. WHEREAS, CONTRACTOR is competent, experienced and able to perform said
services; and,
E. WHEREAS, CONTRACTOR has provided processing options to the CITY which
will allow the CITY to clivert the maximum tonnage of material types; and,
F. WHEREAS, such flexibility will allow the CITY to adapt quickly to changing market
conclitions while maintaining the highest possible cliversion in order to meet and remain consistent with
the State's cliversion mandates;
NOW, THEREFORE, the parties hereto agree as follows:
1. CONTRACTOR shall furnish the processing of commingled recyclables as set forth in
CONTRACTOR's proposal dated as shown in Appendix 1, attached hereto and incorporated herein.
2. CONTRACTOR agrees to provide copies to CITY of any and all of the following
documents within ten (10) days of receipt by CONTRACTOR of final document from the issuing
agency, or upon demand by the CITY:
a. Pennits issued by local, regional, State or Federal agencies related to the
operation of CONTRACTOR's site;
b, Copies of any notices of enforcement, including but not limited to cease and
desist orders, notices of deficiency, notice of termination, violations of air quality or
water quality standards, or other actions taken by any governmental agency with
oversight or enforcement relating to either land use or environmental regulation.
1
"
.
2001-34
Exhibit 1
c. Certificates of insurance, including but not limited to Worker's Compensation
and liability policies.
3. CONTRACTOR shall comply with any and all existing or subsequently adopted health,
safety and solid waste regulations relating to but not limited to: processing, facility operation, reporting
requirements, hauling registration, transfer station operation or other regulations as applicable issued by
the California Integrated Waste Management Board, its successor organizations and agencies or other
State and local agencies with jurisdiction over CON1RACTOR's facility.
4. The CONTRACTOR shall be paid for such services in accordance with the fee
schedule included in CONTRACTOR's proposal dated December 21,2000 as shown in Appendix 1,
attached hereto and incorporated herein, The following rates shall be applicable:
a. PROCESSING FEE - The rate for processing each ton of material shall be
no more than $40.00 per ton the first contract year, and $41.00 per ton the second
contract year. In the event that the CITY exercises the Option Years Three to Five,
inclusive, the rate for processing each ton of material shall be no more than $42.00 per
ton for Option Year One, $42.00 per ton for Option Year Two and $42.00 per ton for
Option Year Three. In the event that the CONTRACTOR desires to renegotiate rates
for Option Years One through Three, inclusive, CONTRACTOR shall be required to
provide a proposed rate and supporting evidence to the CITY no less than one
hundred-twenty (120) days prior to the beginning of the option period and in
accordance with paragraph 14, below. Nothing herein shall preclude CONTRACTOR
from charging less than the rate set forth herein. Nothing herein shall preclude the
CITY from requesting the CONTRACTOR to renegotiate rates.
b. RESIDUAL DISPOSAL FEE - The rate for residual disposal costs shall be
the rate per ton as set forth by the County of San Bernardino under the Waste Disposal
Agreement entered into between the City of San Bernardino and the County of San
Bernardino plus a $10.00 per ton handling fee. Any change to this landfill rate adopted
by the County of San Bernardino Board of Supervisors shall be adjusted on the same
date that the County solid waste tipping fees are adjusted. There will be no other
adjustments to this rate for the term of the Agreement.
c. SALES OF MATERIAL - cOr-..lRACrOR shall pay monthly to CITY
ninety percent (90%) of the price received by CONTRACTOR for sale of materials. In
no event shall the monthly payment to the City be less than ninety percent (90%) of the
prices listed on Table 2 for the sale of such materials, as submitted by CONTRACTOR
to CITY on December 21, 2000 and incorporated herein. Said Table 2 being attached
hereto and incorporated herein by this reference as fully as though set forth at length.
d. TRANSPORATION - There shall be no charge for transporting one load of
commingled recyclables from delivery point to CONTRACTOR's processing facility.
5. CITY shall deliver commingled recyclables to CON1RACTOR's transfer facility.
CONTRACTOR shall be responsible for loading and transportation of commingled recyclables from
CONTRACTOR's transfer facility to CONTRACTOR's processing facility at no additional cost to the
CITY.
2
2001-34
Exhibit 1
6. Ownership of material shall transfer from CITY to CON1RACfOR upon delivery of
material by CITY to CON1RACfOR, either at the time that the CITY loads material into
CON1RACfOR's roll-off bin or transfer trailer, or upon discharge of material at CON1RACfOR'S
Transfer Facility. CITY agrees to work with CON1RACfOR in developing and marketing materials
to local markets.
7. As set forth in CON1RACfOR's proposal, CON1RACfOR shall process the
following materials for sale by CON1RACfOR: old corrugated cardboard, newspaper, mixed papers
(including all First Class through Bulk Rate Mail, catalogues, brochures, craft papers and glossy stock),
office paper (including white ledger, colored ledger, laser print out and computer print-out), plastics,
(including high density polyethylene (HDPE), Polyethylene T erephthalate (pEl), polyvinyl cWoride
(pVe), polystyrene (pS, including extruded foam), polypropylene (PP), and low density polyethylene
(LDPE), aluminum (mcluding food and beverage cans and foils), bi-metal food containers, tin food
containers, beverage and food container glass (including clear, brown and green colors).
CON1RACfOR may add additional materials that CON1RACl'OR will process at any time during
the period of this Agreement. In the event that markets for any of the above listed material become
unavailable, CON1RACfOR shall notify CITY in writing of the adverse market conditions, and the
proposed actions by CON1RACfOR to remedy this situation. CITY reserves the right to delete
material set forth in this paragraph from processing, if, in the opinion of the CITY, the continued
requirement that CON1RACfOR process this material results in additional costs to the CITY.
8. CON1RACfOR shall use the utmost diligence to market the processed materials in
order to maximize the revenues resulting from the sale of each material.
9. CON1RACfOR shall, during the first week that the initial delivery of the CITY's
commingled recyclables occurs, and in the presence of the CITY's Director of Public Services or
his/her designee, conduct or cause to be conducted a waste composition study of the CITY's
commingled recyclables to determine percentages of each commodity set forth herein that are actually
present within the total delivered commingled recyclables. This percentage of each commodity shall
then be used to allocate revenues from the sale of each commodity back to the CITY, based on total
gross tonnage of commingled recyclables delivered by CITY to CON1RACfOR. CON1RACfOR
shall perform subsequent waste composition studies during the first two weeks of the first month of
each calendar quarter or upon a schedule agreed to in writing between the CITY and CON1RACfOR.
CON1RACfOR agrees to perform all waste composition studies in the presence of CITI's Director
of Public Services or his/her designee. CITY reserves the right to specifically waive the requirement
that the Director of Public Services or his/her designee be present at any specific waste composition
study. Either party reserves the right to call for a waste composition study at any time by providing ten
day written notice to the other party.
10. CON1RACfOR agrees to dispose of residuals that may not be recyclable or
compostable at a permitted landfill, transfer station or other disposal facility that is lawfully authorized
to accept such solid waste and operated by the County of San Bernardino, CON1RACfOR shall be
responsible for the physical transportation of residuals and for any costs incurred for said
transportation of residuals to the disposal site, unless otherwise agreed to in writing between CITY and
CON1RACfOR, CON1RACfOR assumes full liability for all residuals disposed of by
CON1RACfOR.
3
2001-34
Exhibit 1
11, CONTRACTOR shall, within thirty (30) calendar days after the close of each month,
submit a written report to the CITY's Director of Public Services, in a format provided by the Director,
including the following infonnation:
a. Total tonnage of commingled recyclables delivered by CITY to CONTRACTOR,
subdivided into tonnage received for each conunodity.
b. Total tonnage of each conunodity received by CONTRACTOR from CITY and
delivered to another processor or end user, including name, address, telephone number and
point of contact of the end user or other processor.
c. Total tonnage of residuals delivered to each permitted landfill, transfer station, or other
disposal facility, including the name, address, telephone number and point of contact for the
disposal facility.
d. Other reports as may be deemed appropriate to the services provided by
CONTRACTOR under terms of this Agreement as requested by the Director of Public
Services.
12. CONTRACTOR shall provide the Public Services Department with a monthly statement in
arrears. CONTRACTOR shall attach and include as part of CONTRACTOR's invoice, copies of
documents and reports as required in paragraphs 2 and 11 for the period covered by the statement.
CONTRACTOR shall forward all monies due to CITY monthly, pursuant to Paragraph 4, section c,
less any fees due to CONTRACTOR pursuant to Paragraph 4, sections a and b. City retains the right
to challenge any or all parts of a statement.
13. In the event that CONTRACTOR's rates set forth herein are renegotiated for the third,
fourth or fifth years of the contract, the following procedures as applicable to the financial statements
or reports on behalf of CITY shall be used. CONTRACTOR shall submit a letter to CITY no less
than one-hundred and twenty (120) days prior to the anniversary date of contract execution. The letter
shall state the reason(s) for the rate increase, the factors affecting the rate and the proposed rate per
ton. CONTRACTOR shall submit a fmancial statement prepared by a Certified Public Accountant for
the previous twenty-four month period if the rate increase is anticipated for the third year of the
contract, and for the previous twelve month period if the rate increase is anticipated for the fourth or
fifth years of the contract, with the request for the rate increase. The CITY shall review the proposed
rate and make a determination within forty-five (45) days from receipt of CONTRACTOR's letter
regarding the applicability and necessity of the proposed rate increase. During the 45-day period, the
CITY may request the opportunity to meet with the CONTRACTOR to review CONTRACTOR's
request and supporting evidence. The decision to permit a rate increase will be at the sole discretion of
the CITY. Nothing herein this paragraph shall preclude CITY from requesting to renegotiate
CONTRACTOR's rates during the period of this Agreement.
14. In the event of discrepancy regarding any item within this Agreement, CONTRACTOR
agrees to cooperate fully with the CITY in order to resolve said discrepancy. CONTRACTOR agrees
to allow CITY, upon reasonable notice, to examine CONTRACTOR's accounting records, sale of
material records or other infonnation, as applicable to the services provided to the CITY under this
Agreement and to allow CITY to audit CONTRACTOR's books if necessary.
4
2001-34
Exhibit 1
15. CON1RACTOR agrees to provide written notice, ten (10) days in advance, of any and all
refuse collection companies, operations or entities other than CON1RACTOR or CITY who will be
using CON1RACTOR's transfer facility located within the City of San Bernardino, CON1RACTOR
agrees to include a report, including the items requested in paragraph 13 above, on any other users of
CON1RACTOR's facility.
16. The CITY shall reserve the right to negotiate a separate host fee on a per ton basis with
CON1RACTOR for the use of CON1RACTOR's transfer facility by any and all refuse collection
companies, jurisdictions, operations or entities other than CITY, including any refuse collection or
refuse hauling companies that CON1RACTOR may acquire during the life of this Agreement.
17. The terms of this Agreement shall be for a two (2) year period from the date first above
shown. This Agreement may be renewed for up to three (3) additional one-year terms, for a maximum
of five (5) years from the date first above shown.
18. CON1RACTOR is hereby notified that nothing within this Agreement shall in any way
limit the CITY from designing, developing or implementing CITY's own material recovety facility,
transfer station, recycling facility or composting facility. CON1RACTOR further is notified that
nothing within this Agreement shall in any way prevent the CITY from entering into agreements with
and between other agencies, entities or jurisdictions in order to efficiently manage the CITY's solid
waste or recyclables, provide for material processing or disposal capacity, or require CITY to deliver
any minimum tonnage of recyclable materials to CON1RACTOR during the life of this Agreement.
CONTACTOR recognizes and accepts that the CITY, by entering into this Agreement, makes no
commitment of future deliveries of commingled recyclables other than so specified within this
Agreement. During the term of this Agreement, all commingled recyclable materials collected by the
CITY will be delivered to the designated site to be processed by CON1RACTOR as defined by the
scope of this Agreement.
19. The CITY shall provide written notice to the CON1RACTOR of the CITY's intent to
exercise each option year at least sixty (60) days prior to the expiration of the current term of this
Agreement.
20. This Agreement may be terminated by either party with cause, upon thirty (30) days written
notice to either party at the address set hereunder.
21. Notwithstanding any other provision of this Agreement either party may terminate
Agreement upon ninety (90) days written notice to either party at the address set hereunder,
22. CON1RACTOR shall not sell, assign, subcontract or otherwise transfer ownership of this
Agreement to a third party during the course of the Agreement without the prior consent of the CITY.
CON1RACTOR shall give at least one-hundred-twenty (120) day advance notice to the CITY of
CON1RACTOR's intent to sell, assign, subcontract or otherwise transfer this Agreement to a third
party.
23. The CITY shall provide written notice to CON1RACTOR within three (3) business days of
any deficiency or default discovered by the CITY regarding CON1RACTOR's performance under this
Agreement, including proper permits issued by any regulatory agency with appropriate oversight of
CON1RACTOR's facility and operation. CON1RACTOR shall have thirty (30) days in which to
correct the default at CON1RACTOR's expense. In the event that CON1RACTOR is unable to
5
2001-34
Exhibit 1
correct default or provide a schedule in which to correct the default or deficiency to the CITY, the
CITY shall have the right to terminate this Agreement, The CITY's written notice to CONTRACIDR
shall be considered to be adequate notice as set forth herein.
24. CONTRACfOR agrees to defend, indemnify, save and hold CITY, its officers, agents and
employees harmless from any claims or suits that may be brought by third persons on account of
personal injmy, death or damage to property, or a property or business or personal interest, arising
from any negligent act or omission by contractor while performing services under this Agreement.
25. While not restricting or limiting the foregoing, during the term of this Agreement,
CONTRACfOR shall maintain in effect policies of comprehensive public, general and automobile
liability insurance, naming the CITY as an additional insured, in the amount of $1,000,000.00 combined
single limit, and statutory worker's compensation coverage, and shall file copies of said policies with the
CITY's Risk Manager prior to undertaking any work under this Agreement. The CITY shall be notified
ten (10) days in advance of any material change or termination of any such policies.
26. CONTRACfOR shall guarantee the floor pricing as presented in their proposal and a
75% minimum recovery rate of the residential commingled recyclables. The CONTRACfOR'S
guarantee shall be secured by a financial assurance of $150,000, in the form of a performance bond,
letter of credit, or interest bearing account in the name of the CITY to be forfeited in the event that
CONTRACfOR defaults on these specific guarantees.
27. CONTRACfOR shall perform work tasks in accordance with CONTRACTOR's policies
and procedures, and applicable Federal, State and local laws. CONTRACfOR shall be an independent
contractor and not an agent or employee of the CITY.
28. In the performance of this Agreement and in the hiring and recruitment of employees,
contractor shall not discriminate on the basis of race, creed, color, religion, sex, physical handicap,
ethnic background or country of origin.
29. In the performance of this Agreement, CONTRACfOR shall take appropriate steps to
provide a drug-free workplace.
30.CONTRACfOR shall implement, where economically feasible, source reduction and
recycling progranlS within CONTR..A.CfOR's operations, and shall "Buy-Recycled" products when
feasible.
31. Any notice to be given pursuant to this Agreement shall be deposited with the United States
Postal Service, postage prepaid and addressed as follows:
TO THE CI1Y:
Public Services Director
City of San Bernardino
300 North "D" Street
San Bernardino, CA 92418
TO THE CONTRACTOR:
Burrtec Waste Industries, Inc.
9890 Cherty Avenue
Fontana, CA 92335
6
.
, '
.
, ,
2001-34
Exhibit 1
Nothing in this paragraph shall be construed to prevent the giving of notice by personal service.
Notice shall be deemed to be received by either party three business days after being deposited with the
United Sates Postal Service.
32. In the event that suit is brought against one party by the other party regarding this
Agreement, the prevai1ing party in the suit shall be entitled to reasonable legal fees. The costs, salary
and expenses of the City Attorney and members of his office in enforcing this Agreement on behalf of
the CITY shall be considered as "legal fees" for purposes of this paragraph.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and
date first above shown.
CITY OF SAN BERNARDINO
By: Lc?-'
S~san Lien, Mayor Pro Tern
--
Ra~c~- ~
ATTEST:
Approved as to form
and legal content:
JAMES F. PENMAN,
City Attorney
_ fr/M~"",,
7