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HomeMy WebLinkAboutVIII-09 Resolution Residential Solid Waste Hauler Contract Renewal 2022-2024 City Council Memorandum To: Mayor Fasbender & City Councilmembers From: Chris Jenkins, Parks & Recreation Director Date: November 8, 2021 Item: Residential Solid Waste and Recycling Collection Contract Renewal Council Action Requested: Extend the current Residential Solid Waste and Recycling Collection Contract with Tennis Sanitation for 2022-2024. Background Information: The current contract began January 1, 2019 and expires December 31, 2021. During the RFP process in 2018, the Utilities Committee of Council unanimously recommended Tennis Sanitation for these services and recommended the ability to extend the contract up to two additional three- year terms (2022-2024 and 2025-2027). Financial Impact: Tennis Sanitation has indicated no rate increases for 2022, but has indicated an anticipated rate increase in 2023 based on preliminary information received from Red Wing Solid Waste Campus. Tennis Sanitation will submit rates for 2023 and 2024 to the City Administrator no later than September 1, 2022. Advisory Commission Discussion: None Council Committee Discussion: None Attachments: ▪ First Extension Resolution VIII-09 1 FIRST EXTENSION TO CITY OF HASTINGS RESIDENTIAL SOLID WASTE AND RECYCLING COLLECTION CONTRACT WITH TENNIS SANITATION, L.L.C. This First Extension to City of Hastings Residential Solid Waste and Recycling Collection Contract with Tennis Sanitation, L.L.C. (“First Extension”) is made this day of November, 2021 by and between the City of Hastings, a Minnesota municipal corporation (“City”), and Tennis Sanitation, L.L.C. (“Tennis”), a Minnesota limited liability company. RECITALS WHEREAS, the City and Tennis entered into the City of Hastings Residential Solid Waste and Recycling Collection Contract January 1, 2019 to December 31, 2021 (“Contract”) in which Tennis agreed to provide residential solid waste and recycling collection services for the City; and WHEREAS, pursuant to Section 2 of the Contract the initial term was a 3-year term, however, the Contract provides for two 3-year extensions; and WHEREAS, the parties mutually desire to exercise the first 3-year extension. NOW, THEREFORE, in consideration of the mutual promises and covenants of each to the other contained in this First Extension and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto do covenant and agree as follows: 1. Section 2 of the Contract entitled Term of Agreement is hereby deleted in its entirety and hereby replaced as follows: 2. Term of Agreement. The initial term of the Contract expires December 31, 2021. The term of the First Extension shall be for a period of three (3) years, commencing on January 1, 2022 and expiring on December 31, 2024. The City may choose to initiate a new competitive RFP process no later than the first quarter of 2024 or the City may renew the term of the Contract for one additional three-year extension through December 31, 2027. 2. The rates for the First Extension shall remain unchanged for calendar year 2022. Tennis shall submit rates for 2023 and 2024 to the City Administrator no later than Sept. 1, 2022. 3. Tennis agrees to continue to service the list of City Facilities with garbage receptacles the size and frequency of which is listed on Exhibit A to the Contract. 4. General Terms. a. Except as provided for above, the terms and provisions of the Contract shall remain in full force and effect. VIII-09 2 b. This First Extension and all disputes or controversies arising out of or relating to this First Extension or the transactions contemplated hereby shall be governed by, and construed in accordance with, the internal laws of the State of Minnesota, without regard to the laws of any other jurisdiction that might be applied because of the conflicts of laws principles of the State of Minnesota. c. Nothing contained herein shall be deemed a waiver by the City of any governmental immunity defenses, statutory or otherwise. Further, any and all claims brought by Developer or its successors or assigns, shall be subject to any governmental immunity defenses of the City and the maximum liability limits provided by Minnesota Statutes, Chapter 466. d. This First Extension may be executed in two or more counterparts, all of which shall be considered one and the same instrument and shall become effective when one or more counterparts have been signed by the parties and delivered to the other parties. e. This First Extension shall not be amended, modified or supplemented, except by a written instrument signed by an authorized representative of each party. [remainder of page intentionally blank] VIII-09 3 CITY OF HASTINGS By: Mary Fasbender, Mayor By: Kelly Murtaugh, City Clerk VIII-09 4 TENNIS SANITATION, L.L.C. By: William J. Tennis, President VIII-09