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Ordinance 2010-08

AN ORDINANCE APPROVING A CONTRACT WITH ROLL OFF SERVICE, INC. TO PROVIDE RESIDENTIAL COLLECTION AND DISPOSAL OF SOLID WASTE AND RECYCLABLES TO CUSTOMERS WITHIN JOHNSON, ARKANSAS, AND GRANTING A FRANCHISE TO ROLL OFF SERVICE, INC. TO PROVIDE RESIDENTIAL COLLECTION AND DISPOSAL OF SOLID WASTE AND RECYCLABLES WITHIN THE CITY OF JOHNSON AND OTHER MATTRS PERTAINING THERETO AND DECLARING AN EMERGENCY TO EXIST.

 

WHEREAS, the City of Johnson elected to terminate, effective 12-31-2010, its previous agreement for residential collection and disposal of solid waste and recyclables within Johnson.

 

WHEREAS, a Request For Proposals was duly published and copies of the Request and a copy of the proposed solid waste agreement was individually provided to the three solid waste haulers who attended the 10-12-2010 Council meeting.

 

WHEREAS, after reviewing and considering the bids received the Committee made a recommendation to the Council concerning a new franchise solid waste contractor.

 

BE IT ORDAINED BY THE CITY COUNCIL OF JOHNSON, ARKANSAS, that,

 

Section 1: That the agreement attached hereto which is titled Contract for Services between the City of Johnson and Roll Off Service, Inc. bearing the date of 2010, having been read, studied and considered by the Johnson City Council should be and hereby is approved and ratified; the Mayor and Recorder-Treasurer are directed and authorized to execute same for and in the name of the City.

 

Section 2: Pursuant to the attached agreement there is hereby levied fees/rates for collection and disposal of solid waste and recyclables as well as composting collection services in accordance with, the terms of such Contract. However, the gross receipts taxes of the City of Johnson shall apply to all services subject to same provided by Contractor within the City.

 

Section 3: There is hereby granted to Roll Off Service, Inc. a license to operate appropriate vehicles and equipment in order to perform such Contract, on existing and new dedicated streets rights -of- way, alleys, utility easements and other public passageways within Johnson.

 

Section 4: A franchise is hereby granted unto Roll Off Service, Inc. to provide residential collection and disposal of solid waste and recyclables along with composting service pursuant to the terms of the attached Contract, within the Johnson corporate limits as therein provided. Said franchise shall be for the effective dates of the Contract attached hereto.

 

Section 5: Provision for residential collection and disposal of solid waste and recyclables and affiliated services for the residents of the City of Johnson helps secure the public peace, health and safety. Therefore, an emergency is hereby declared to exist. This ordinance shall be immediately effective upon its passage and approval.

 

PASSED AND APPROVED this 14th day of December, 2010.

 

APPROVED:
Lonnie Barron. Mayor

ATTEST:

JENNIFER ALLEN, Recorder-Treasurer

 

 

CONTRACT FOR SERVICES

 

This contract is entered into by and between the City of Johnson, Arkansas ("City") and Roll Of Service, Inc. ("Contractor") for the provision of solid waste and recycling collection, processing and disposal services.


1. Term of Contract: The initial term of this contract shall be for a period of thirtysix months beginning January 1, 2011, and ending on December 31, 2013. There shall be three additional one-year options to renew the contract, which shall be automatically exercised UNLESS notice is given by either party. To stop the automatic 1 year extension from going into effect, either party must provide 120 days written notice prior to December 31st, to the other party that they do not wish to exercise further options to extend the contract.


2. Services Provided: Contractor shall be responsible for providing the following services to customers in the City of Johnson: pickup and proper disposal of residential solid waste; pickup, processing and marketing of residential recyclables. Residential solid waste consists of solid waste generated weekly in amounts of .5 cubic yards or less and residential recyclables consists of total recyclable materials generated weekly in amounts not exceeding .5 cubic yards.

 

A. Residential Solid Waste:


a) Contractor shall provide pickup of residential solid waste once per week on_ ___^ .- Contractor shall pick up residential solid waste and residential recyclables and bill the individual residential customers at the rate of $Ten Dollars and Ten Cents ($10.10) per month for residential curbside collection. This rate is exclusive of applicable sales taxes. Contractor shall be responsible for all billing for these (and other services available hereunder) services and collection of same. Advanced billing may be either monthly or quarterly as desired by Contractor, however, failure of payment shall not be reason for Contractor to refuse collection and disposal of solid waste or recyclables. The solid waste and recyclables shall be placed curbside by the customer no later than 07:00 o'clock a.m. on the day of collection. The solid waste shall be in suitable trash cans or bags which do not weigh more than 50 pounds each, there is no limit on the number of bags. Recyclables shall be placed in 18 gallon plastic bin provided by Contractor. If a Johnson resident/customer fails to leave the recycle bin at their residence upon moving and fails to deliver the recycle bin to Contractor upon moving, then Contractor may add the cost of the recycle bin to the resident/customer's bill with contractor. Currently the recycle bins are a $10.00 cost item. Alternatively, solid waste may be placed in 96 gallon containers provided by Contractor (and approved in advance by the City).


b) Customers may choose to utilize the yellow bag service at a cost of One Dollar and Twenty-five Cents- ($1.25) per bag. Bags will be sold in a roll of thirty (30) bags for Thirty-Seven Dollars and Fifty Cents ($37.50). These yellow bags must be purchased from the City/Contractor by customers wishing to utilize that service level. This program is designed for a low volume generator and/or a senior citizen. These bags are prepurchased and the price of the bag includes the collection and disposal of the trash. These bags are to be set curbside by 7:00 A.M. on collection day. This.level of service will also entitle a resident to participate in the curbside recycling and green bag programs as well as the bulky waste program, however tbe customer will have to pay an additional charge of Two Dollars and Fifty Cents ($2.50) per month for curbside recycling and/or the costs for green bag services.

 

c) Partial months will be billed at a rate proportional to the number of pickups made that month divided by the number of pickups available that month.

 

d) A green bag compost program will also be offered for weekly curbside collection on the same day as solid waste/recyclables are collected. This program is designed for separation of lawn and leaf waste and will be collected in a separate truck. This program will operate April through December of each year. The fee for this service will be Fifty Cents ($.50) per bag or Fifteen Dollars ($15.00) for a roll of thirty (30) bags to be purchased from City/Contractor.

 

e) Contractor will offer back door service to those individuals that cannot place solid waste/recyclables curbside due to physical limitations. No additional charge for this service.

 

f) Contractor will honor prior program yellow bags and/or green bags through March 31, 2011.

 

B. Mandatory Residential Recyclables:

 

Contractor shall provide pickup of residential recyclables on the same day as solid waste collection occurs. Contractor shall pick up the following materials in the manner described,

 

i. Corrugated Cardboard
ii. Chip Board
iii. Newsprint
iv. Magazines
v. Junk Mail/Residential Paper Mix
vi. Phone Books
vii. Aluminum Cans
viii. Steel Cans
ix. Number 1 (PET) plastic bottles

x. Number 2 (HOPE) plastic bottles
xi. Additional materials when agreed to by City and Contractor.

 

These materials will be collected in a commingled manner utilizing an 18-Gallon plastic bin supplied by the Contractor. Recyclable materials collected under this contract must be processed and marketed to valid secondary materials markets. No portion of this material, other than typical' processing waste, may be disposed of otherwise. Curbside recycling is covered by the fee listed in 2, A. above.

 

C. Commercial Solid Waste:

 

Commercial Solid Water consists of solid waste generated weekly in amounts of greater than .5 cubic yards (either from businesses, residential multi units having a centralized container or others) who generate such amounts of solid waste. Each customer utilizing commercial solid waste disposal service shall contract with an authorized contractor for those services and such agreement shall provide for proper disposal of commercial solid waste and the pickup, processing and marketing of commercial recyclables. All contracts for collection and disposal of commercial solid waste and/or commercial recyclables shall be approved by the City and copies of such agreements provided to the City. City may monitor these services as needed to insure the health and safety of citizens and to check compliance with applicable laws. There is a separate fee of $ per annum/or any part thereof, for each Commercial Solid Waste Agreement with a.Johnson customer to cover the costs of these services. These fees shall be paid, in advance when the agreement goes into effect.

 

D. Bulky Waste Collection:

 

In addition to the weekly trash collection Contractor shall offer a twice per year, spring and fall, bulky waste collection for the City residents only. The Contractor shall continuously provide two (2) 30 yard open top containers to be serviced as needed for each of the scheduled spring and fall cleanups. The Spring bulky waste collection period shall be in May each year and the fall bulky waste collection period shall be in September each year. These bulky waste collection periods shall be eleven days each, beginning on a Friday (to be designated each year by City) and running through the following second Monday. Bulky waste material is defined as: Stoves, refrigerators which have CFC's removed and tagged by a certified technician, water tanks, washing machines, furniture, and other waste materials other than, construction debris, dead animals, or hazardous waste. The City will not be charged for the containers nor "pulls" required to empty the containers.

 

3. Designated Disposal Facility: 

Contractor shall deliver all solid waste collected under this contract to a landfill fully approved and permitted by federal, state and other (if needed) authorities. Contractor is solely responsible for selection of proper disposal facility and all collection, processing, transfer, and delivery of solid waste to same.

 

4. Reporting Requirements:

 

Contractor shall provide a report with the following information to the City on a quarterly basis. Except for January 2011, these reports shall be due by the 1.5th of every April, July, October and January covering the prior three month's activities. The City has the right to audit the records of the Contractor to verify information in such reports during normal business hours of the Contractor,

 

 

iii,
a. Tons of solid waste collected and disposed of under this contract
b. Number of residential customers served under this contract
c. Number of commercial customers served under this contract
d. Tons of recyclable materials collected and processed under this contract
e. Percentage breakdown of recyclable materials by material
f. Markets utilized for selling collected recyclables during the previous three (3) months.
g. Percent of waste from recycling operations:


It is understood that the information in "e" and "g" above will of necessity be for
overall recycling operations and not limited to materials collected under this
contract.

 

5. Invoicing:

The invoicing and collection for services will be responsibility of the Contractor. Billing cycle will either be monthly or quarterly billed in advance. Quarterly billing cycle typically is January, April, July, and October of each year. The Contractor shall be responsible for billing, collecting and remitting all sales and other taxes as applicable.

6. Hours for Collection:

All solid waste and recyclables must be curbside, in the appropriate containers, ready for pickup by the contractor no later than 7:00 a.m. on the morning of collection/pickup.

7. Missed Pickups:

Calls for missed pickups will be directed to City offices and the City will maintain a log of missed pickups. When a call for a missed pickup is received, the City will notify the Contractor, who shall return and complete any missed pickups no later than 8:00 p.m. the day they receive the notification. Costs of missed collections shall be borne exclusively by the Contractor.

8. Holidays and Bad Weather Days:

If the regular collection day falls on one of the following holidays, then the Contractor may skip collection on that day, but must collect those customers on the following day. Holidays on which collection may be deferred are: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas Day. In the event inclement weather or other conditions outside the control of the Contractor makes collection hazardous or impossible, collection will be excused until the earliest possible opportunity to collect safely occurs.

9. Franchise Fee:

Contractor shall be responsible for remitting a franchise fee equal to 4% of gross residential charges, not including sales taxes as may be applicable, under this contract to the City on a monthly or quarterly basis depending on how Contractor elects to bill. This fee shall be due by 15th of the month following billing. There will be no charge for solid waste/recycling at City Hall, Police Station, Fire Stations, Maintenance Center, Parks'and other municipal facilities which may be added as needed. Contractor shall provide containers and service to these locations as needed at no cost to the City of Johnson.

10. Performance Bond /Insurance:

Contractor shall be responsible for maintaining a performance bond in the amount of $50,000.00. Such bond will be payable to the City and may be utilized by the City in the event that Contractor is no longer fulfilling their duties under this contract. Contractor shall maintain a general liability policy of no less than one million dollars and automobile insurance on all vehicles utilized in City of not less than one million per accident and two million dollars cumulative. Failure to maintain the performance bond and/or one or both of the insurance policies will be grounds for terminating this contract at the City's discretion. Evidence of such bond and policies shall be provided to City annually before January 15.

11. Termination of Contract:

In the event that Contractor fails to meet their obligations under this contract, the City will provide a notice of deficiency to the Contractor hi writing. Contractor shall have 7 days from the date of the notice to correct the deficiency to the satisfaction of the City. If Contractor fails to correct the deficiency, the City has the discretion to terminate the Contract by providing written notice to the Contractor. If there are more than three instances of a notice of deficiency being issued by the City within any twelve-month period, the City has the discretion to terminate this contract. Such termination for good cause will trigger payment on the above performance bond.

12. Price Escalators:

Costs under this contract shall be fixed during the initial Thirty-six (36) month period. Prior to the start of each one-year renewal, Contractor may present the City with a proposed price escalation to be in effect during the renewal period. Contractor must present and obtain approval for any such price escalation during the month of August prior to the optional renewal period starting. In no instance, shall the price escalator be in excess of the latest 12-month change in the CPI-U as reported by the Bureau of Labor Statistics. In the event the CPI-U decreases over the prior 12-month period, the Customers shall be entitled to a proportional decrease 'in rates. City shall notify Contractor by August in event of decrease in CPI-U and resultant decrease in rates to customers. Contractor may petition City for rate adjustments at reasonable times on the basis of unusual changes in its cost of doing business, such as revised laws, ordinances or regulation; significant changes in location of disposal sites; or significant changes in disposal charges. If City unreasonably refuses to agree to a rate adjustment, Contractor may terminate this contract upon one hundred eighty (180) days prior written notice to City. No other price escalations shall be allowed, with the exception of an increase or addition in governmental fees beyond the control of the Contractor.

13. Excuse from Performance:

The City and Contractor shall be excused from performing their respective obligations hereunder in the event they are prevented from so performing by reason of floods, earthquakes, other acts of God, war, civil insurrection, riots, acts of any government, and other similar catastrophic events which are beyond the control of and not the fault of the party claiming excuse from performance hereunder. The party claiming excuse from performance shall within twenty-four (24) hours after such party has notice of such cause give the other party notice of the facts constituting such cause and asserting its claim to excuse under this Article. The interruption or discontinuance of Contractor's services caused by one or more of the events excused shall not constitute a default by Contractor under this Agreement.

14. Stipulated Penalties:

In addition to any other remedies provided under this contract or by federal, state or local law, the following stipulated penalties are available to the City as against Contractor as stipulated damages: a. Missed Pickups in Excess of 10 per week $10.00 each b. Failure to Collect Unless Otherwise Excused Under this Contract $l,000.00/week c. Failure to Maintain Performance Bond/Insurance $100.00/day after Jan. 15 Policy or policies d. Failure to Properly Report $l,000.00

15. Exclusivity:

Contractor shall be the exclusive provider of residential solid waste collection within the limits of the City during the term of this contract. Commercial and Industrial customers, including construction and demolition debris and roll-off services, shall not be subject to the terms of this contract and no exclusivity is granted nor implied. No exclusivity is granted concerning the collection of recyclables or bulky wastes.

16.

Contractor agrees to protect, indemnity, defend and save harmless the City, its officials, officers, employees and representatives from any loss, claim, liability, penalty, fine, forfeiture, demand, cause of action, suit and costs and expenses incidental thereto (including cost of defense and reasonable attorneys' fees), to the extent directly caused by any litigation arising from any legal challenge to this Agreement, acts of Contractor, its agents or employees, matters relating to collection, transfer, transport or disposal of solid waste or recyclables, or to the billing of customers by Contractor for the fees provided for hereunder, provided that any cost of settlement shall be approved by Contractor in its sole discretion. Notwithstanding such indemnification, in the event of any such legal challenge, Contractor may elect to terminate the Contract upon giving one hundred eighty (180) days prior written notice of such termination. Such termination shall not relieve Contractor of its duty to protect, indemnify, defend and hold harmless the City as provided herein.

17. Severability:

Should any portion of this contract be declared by a court of law as unenforceable, illegal or unconstitutional, the remainder of the contract shall remain in full force and effect.

18. Applicable Law:

This contract shall be construed and governed in accordance with the laws of the State of Arkansas. Enforcement of this contract must be made in the Courts of Washington County, Arkansas.

19. Notice:

All notices, demands, requests, proposals, approvals, consents and other communications which this Agreement requires, authorizes or contemplates shall be in writing and shall either be personally delivered to a representative of the parties at the address below or be deposited in the United States mail, first class postage prepaid, addressed as follows: If to City: City of Johnson P.O. Box 563 Johnson, AR 72741 Phone: (479)521-7291 Attn: Mayor If to Contractor: Roll Off Service, Inc. PO Box 1700 Lowell, AR 72745 Phone: (479)872-9098 Attn: General manager Mindy Becker