city of johnson arkansas logo

Ordinance 2011-03

ORDINANCE NO. 2011-03
AN ORDINANCE REPEALING ORDINANCE NO. 2010-08,
APPROVING A CONTRACT WITH DEFFENBAUGH OF
ARKANSAS, IXC TO PRO\ODE RESIDENTIAL
COLLECTION AND DISPOSAL OF SOLID WASTE AND
RECYCLABLES TO CUSTOMERS WITHIN JOHNSON,
ARKANSAS, AND GRANTING A FRANCHISE TO
DEFFENBAUGH OF ARKANSAS, LLC. 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.
WHEREAS, the agreement entered into on December 14, 2010, needs to be re-written
and re-executed to establish the city's relationship with Deffenbaugh of Arkansas, LLC which
acquired all the assets and employees of Roll Off Sendees, Inc.
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 Deffenbaugh of Arkansas, LLC bearing the date of
, 2011, 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.
Coj Approving Roll Off Contract 120210
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 Deffenbaugh of Arkansas, LLC 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 Deffenbaugh of Arkansas, LLC 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; Ordinance No. 2010-08 is hereby repealed. All actions by Deffenbaugh of
Arkansas, LLC and city officials or employees in furtherance of the agreement with Roll Off
Services, Inc. since 01-01-2011, are expressly ratified and confirmed.
Section 6: 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 J3& day of (jLAsUJi , 2011.
LONNIE BARRON, Mayor
ATTEST:
"AlgJEN^ity Clerk
CqfXpprtfving Roll Off Contract 120210
CONTRACT FOR SERVICES
This contract is entered into by and between the City of Johnson, Arkansas
("City") and Deffenbaugh of Arkansas, LLC ("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 thirtytwo
months beginning May 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 Wednesday. 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 sendee will also entitle a resident to participate in the
curbside recycling and green bag programs as well as the bulky waste
program, however the 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 sendees.
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 (S.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 sendee 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
2
x. Number 2 (HDPE) 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 $60.00 (or as determined by proper action of the Johnson
City Council) per annum/or any part thereof, for each Commercial Solid
Waste Agreement with a Johnson customer to cover the costs of these
sendees. 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
3
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 15th 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
4
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 sendee 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 in 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 xmder 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
5
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 sendees 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 $ 1,000.00/report
e. Disposal of Recyclable Materials $1.00/lb
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, indemnify, 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
17.
18.
19.
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.
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.
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.
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:
If to Contractor:
DEFFENBA
City of Johnson
P.O. Box 563
Johnson, AR 72741
Phone: (479)521-7291
Attn: Mayor
Deffenbaugh of Arkansas, LLC
2601 Midwest Drive
Kansas City, Ks 66111
.NSAS, LLC CITY OF JOHNSON, ARKANSAS
^
By:.
LONNIE BARRON, Mayor
ATTEST:
(OFFICE)
ACOKtf CERTIFICATE OF LIABILITY INSURANCE ™M™
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(S), 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
Marsh USA Inc.
2405 Grand Boulevard, #900
Kansas City, MO 64108
Attn;
010542-STND-GAWUP-11-12
INSURED
Deffenbaugh of Arkansas, LLC
P.O, Box 3220
Shawnee, KS 66203
UONIAUr NAME:
PHONE FAX
(AfC.No. Extt: (WC.No):
E-MAIL
ADDRESS:
I NSURER(S) AFFORDING COVERAGE
INSURER A • Travelers Indemnity Company Of Connecticut
INSURER B • Farmington Casualty Company
INSURER C: WA
INSURER D: N'A
INSURER E I
INSURER F:
NAIGW
41483
N/A
N/A
COVERAGES CERTIFICATE NUMBER: CHW03670920-07 REVISION NUMBER:9
THIS 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
LTR TYPE OF INSURANCE WVP- POLICY NUMBER
POLICY EFF
fMM/DDJYYYYI
POLICY EXP
[M1WDDATYY1 LIMITS
GENERAL LIABILITY HC2E-GLSA477M0796-11 08/01/2011 08/01/2012 EACH OCCURRENCE
COMMERCIAL GENERAL LIABILITY
X
DAMAGETCTRENTED
PREMISES fEa occurrence)
CLAIMS-MADE OCCUR MED EXP [Any one person)
PERSONAL & ADV INJURY
GENERAL AGGREGATE
GEN'L AGGREGATE LIMIT APPLIES PER:
'" " | ["' ' "1 DDfJ
X | POLICY | I JFCT I I LOG
PRODUCTS - COMP/OP AGG
1,000,000
100,000
5,000
1,000,000
2,000,000
AUTOMOBILE LIABILITY HC2E-CAP477M0784-11 COMBINED SINGLE LIMIT 5,000,000
X ANY AUTO
ALL OWNED
AUTOS
HIRED AUTOS
Trailer
BODILY INJURY (Perperson)
SCHEDULED
AUTOS
NON-OWNED
AUTOS
BODILY INJURY (Per accident)
PROPERTY DAMAGE
(Per accident)
UMBRELLA UAB
EXCESS LIAB
OCCUR
CLAIMS-MADE
EACH OCCURRENCE
AGGREGATE
DED RETENTIONS
WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY Y/ N
ANY PROPRIETOR/PARTN5R/EXECUTIVE
OFFICER/MEMBER EXCLUDED?
(Mandatory in NH)
If yes, describe under
DESCRIPTION OF OPERATIONS below
08/01/2011 08/01/2012 X WC STATU- OTHTORY
LIMITS I J..ER
N/A
E.L EACH ACCIDENT 1,000,000
E.L. DISEASE - EA EMPLOYEE
E.L. DISEASE - POLICY LIMIT
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (Attach ACORD 101, Additional Remarks Schedule, If more space is required}
'ity of Johnson is included as additional insured where required by written contract.
CERTIFICATE HOLDER CANCELLATION
City of Johnson
Attn: Mayor
P.O. Box 563
Johnson, AR 72741
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
ACCORDANCE WITH THE POLICY PROVISIONS.
AUTHORIZED REPRESENTATIVE
of Marsh USA Inc.
Keith A. Stiles jf^ft^ *f.^^
ACORD 25 (2010/05)
© 1988-2010 ACORD CORPORATION. All rights reserved.
The ACORD name and logo are registered marks of ACORD