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Home My WebLink About20070402 - VIII-C-2VIII-C-2 MEMORANDUM TO: Honorable Mayor and City Councilmembers FROM: Dave Osberg, City Administrator DATE: March 29, 2007 SUBJECT: Solid Waste and Recycling Collection Agreement RECOMMENDED CITY COUNCIL ACTION It is recommended that the City Council take action approving the attached Agreement between the City of Hastings and Waste Management for residential solid waste and residential recycling collection within the City limits. BACKGROUND The City Council completed action at the meeting on February 5, 2007 awarding the residential solid waste collection license to Waste Management, and directed Staff to prepare an agreement with Waste Management capturing the elements of the request for proposal document and the actual document submitted by Waste Management, and their supplemental information dated January 8, 2007. City Attorney Shawn Moynihan and I have been working on the attached agreement during the last several weeks, and have also reviewed with Randy Triplett from Waste Management. The City Council will note Exhibits that will be included as part of the agreement: l.) The Request for proposal document. 2.) Waste Management's response 3.) The request for proposal amendment 4.) Option #2 with Fuel Surcharge and CPI Increase in Year 2 and Year 3 5.) Waste Management on-line customer service information 6.) Waste Management letter dated January 8, 2007 (response to the RFP amendment) Other key components of the agreement include: a.) Continuation of the recycling revenue sharing program b.) Requirement for the processing of the waste c.) Method for calculating rate adjustments, based on a fuel clause adjustment and consumer price index d.) Indemnification e.) Terms of license and agreement Randy Triplett from Waste Management will be in attendance at the meeting should the City Counci~ve any question tJley would like Mr. Triplett to address. David M. Osberg, AN AGREEMENT BETWEEN THE CITY OF HASTINGS AND WASTE MANAGEMENT OF MINNESOTA, INC., FOR RESIDENTIAL SOLID WASTE AND RESIDENTIAL RECYCLING COLLECTION WITHIN THE CITY LIMITS. THISAGREEMENT, is made and entered into this day of April, 2007, between the City of Hastings, a Minnesota Municipal Corporation, hereafter referred to as ("City") and Waste Management of Minnesota, Inc., hereafter referred to as ("Waste Management"). RECITALS. A. The City has organized residential solid waste and residential recycling collection within the City by issuing only one license for such collection within the City. B. The City issued a request for proposals (RFP) for collecting solid waste and recycling from residential structures within the corporate limits of the City. C. Waste Management submitted a proposal in response to the City's RFP. D. The City has evaluated Waste Management's proposal and other proposals submitted to it and has determined that Waste Management's proposal would best serve the public's interest. E. Both parties wish to memorialize their respective responsibilities and understandings regarding the residential solid waste and residential recycling licenses which are to be issued to Waste Management. AGREEMENT Purpose of Agreement. The purpose of this Agreement is to outline Waste Management's responsibilities under the residential solid waste and residential recycling licenses to be issued by the City. Waste Management agrees the City will issue these licenses to Waste Management based upon the terms of the proposal and related documents submitted by Waste Management in response to the City's RFP. 2. Terms of Agreement. The parties agree that for the sake of brevity, the duties and responsibilities of the City and Waste Management related to the collection of residential solid waste and residential recycling within the City are outlined in this Agreement as well as the following documents which are attached to this agreement as Exhibits. The attached Exhibits are to be considered incorporated into this Agreement as if they were fully set forth in this agreement. The included Exhibits are: A. City of Hastings request for proposal. B. Waste Management proposal cover sheet (undated). C. Waste Management letter and attachments dated October 30, 2006. D. Request for Proposal Amendment Number 1. E. Option #2 With Fuel Surcharge and CPI Increase in Year 2 and Year 3. F. Waste Management On-Line Customer Service Information. G. Waste Management letter dated January 8, 2007. Waste Management also agrees that all applicable provisions of Hastings City Code, Dakota County Ordinances, State and Federal laws which are now in effect or as they may be amended in the future, are also part of this Agreement. 3. Recycling Revenue Sharing Waste Management agrees to submit to the City all recycling revenue received by Waste Management for aluminum and newspaper collected within the City based upon the following formula. Beginning January 1, 2007, the quarterly average price of aluminum and newspaper shall be determined, which shall be the average price received by the hauler for aluminum and newspaper for that quarter. If the quarterly average price for aluminum exceeds $1,200.00 per ton and if the quarterly average price for newspaper exceeds $40.00 per ton, then Waste Management agrees to give the City all revenue received by Waste Management during that quarter for aluminum and newspaper which exceeds $1,200.00 per ton and $40.00 per ton respectively. Waste Management agrees to provide the City with reports at least quarterly, showing the quantities of recyclable materials collected in the City and the revenue received for those materials. Waste Management agrees to make payment to the City within 30 days after the end ofeach quarter. 4. Processing ofResidentia[ Solid Waste. Waste Management agrees that during the term of this Agreement or any extension, it shall cause all residential solid waste collected within the City limits to be processed at NRG-Newport or some other comparable facility. It is the policy and intent of the City that all residential solid waste collected within this City shall be processed at a resource recovery facility. 5. Rates. Waste Management agrees the rates it will charge during the term of this Agreement shall be as outlined in Exhibit D. Waste Management agrees there can be no price increase of any type until after January I, 2008. The fuel surcharge adjustment shall be calculated during the fourth quarter of 2007 and increases or decreases in rates, if any, shall take effect after January 1, 2008. Similarly, any adjustment upward or downwards caused by the Consumer Price Index shall not be effective after January I, 2008. From that point forward, fuel surcharge adjustments and Consumer Price Index adjustments shall be made as outlined in Exhibit D. 6. Indemnification. Waste Management agrees to defend and hold harmless the City of Hastings, its agents, officers and employees from any and all liability (including attorneys fees) for removal or remedial actions under the Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 (also known as the Federal Super Fund Act), Minnesota Environmental Response and Liability Act, or any comparable state law, incurred as a result of Waste Management's disposal ofrefuse collected pursuant to the terms of this Agreement at a disposal facility selected by Waste Management. Waste Management further agrees to indemnify, defend and hold harmless the City, its agents, officers and employees from any and all claims, causes of actions, liabilities, losses, damages, costs and expenses, including reasonable attorneys' fees, suits, demands and judgments of any nature, because of bodily injury to or death of any person or persons and/or because of damages to property of Waste Management or others, including loss of use from any cause whatsoever, which may be asserted against the City on an account of any act or omission, including negligence of Waste Management or its employees or agents, in connection with Waste Management's performance of this Agreement. Waste Management agrees to defend any action brought against the City on any such matters and to pay and satisfy any judgment entered therein, together with all costs and expenses incurred in connection therewith. The City in no way shall be liable for any claims or charges incurred by Waste Management in the performance of this Agreement. 7. Non-Assignment of License and Agreement. This license and agreement cannot be assigned without the prior consent of the City. The City is not required to consent to any requested assignment by Waste Management. When determining whether or not to consent to such an assignment, the City will determine whether consenting serves the best interests of the citizens of Hastings. 8. Term ofLicense and Agreement. This license and agreement shall be in effect from January 1, 2007 through and including December 31, 2009, unless terminated earlier as provided by This Agreement, city code or state law, with an option for the City to extend this license and agreement for an additional three years, at the sole discretion of the city council. 9. Amendment ofAQreement and License. No modification of this Agreement shall be valid or effective unless made in writing and signed by both parties. 10. Termination ofLicense and Agreement. This license and agreement may be terminated by the City if Waste Management is in breach of any provision of this Agreement, City code or state law. Before the City terminates the license, the City shall give Waste Management written notice of the violations and inform Waste Management that unless the violations are corrected within 20 days from the date of that notice, the City will terminate the license. 11. Compliance with All Laws and Ordinances. Waste Management agrees to comply with all federal, state, county and city laws and ordinances, now in effect and as they may be amended from time to time, in carrying out its obligations under this agreement. CITY OF HASTINGS, A Minnesota Municipal Corporation By: Paul J. Hicks, Mayor (SEAL) By: Melanie Mesko Lee, Assistant City Administrator/City Clerk WASTE MANAGEMENT OF MINNESOTA, INC. A Minnesota Corporation By: Its: General Manager