4.2. SR 08-13-2012REQUEST FOR ACTION
TO
ITEM NUMBER
Mayor and City Council
4.2
AGENDA SECTION
MEETING DATE
PREPARED BY
Consent
August 13, 2012
Rebecca Haug, Environmental
Administrator
ITEM DESCRIPTION
REVIEWED By
Residential Garbage and Recycling Contract Renewal
Cal Portner, City Administrator
REVIEWED BY
Peter Beck, City Attorney
ACTION REOUESTED
Approve extending the contracts with Allied Waste and Randy's Environmental Services, Inc., to
continue providing collection services to Elk River residents.
BACKGROUND /DISCUSSION
Staff presented the proposed changes to the Residential Garbage and Recycling Contracts at the July 9,
2012, City Council work session.
The changes proposed include extending the contract from a 5 -year to a 10 -year contract, switching from
dual stream recycling to single stream recycling, garbage collection rate increases of 3% on the even -
numbered years starting in 2014, maintaining recycling rates for the next five years and a $0.25 increase in
recycling 2018 through 2022.
Despite the price increases, rates will remain the same through use of the cash balance in the Garbage
Fund. There are no resident rate increases projected for the next several years. Annual budget reviews
will determine when rates need to be adjusted.
Attached is a spreadsheet showing the city's rates as compared to other communities with organized
collection. Please note that fee structures vary for all cities as a result of costs related to in -house billing,
tipping fees, or requirements for disposal at an RDF facility.
In response to a Council question regarding contract bidding requirements, City Attorney Peter Beck
cited a 1977 Attorney General opinion and a 1988 Court of Appeals decision, that hauler contracts are
not subject to the public contracting law.
FINANCIAL IMPACT
Please see the attached spreadsheet
ATTACHMENTS
• Agreement for Garbage, Refuse and Recycling Collection
• City Survey Results
• July 9, 2012, Staff Report to the City Council
POWERED By
N: `,Public Bodies City Coitnal Council RCA Agenda Packet o8- 13 -2o12 Garbage contiact.doch A IRE
CITY OF ELK RIVER
AGREEMENT FOR GARBAGE, REFUSE AND RECYCLING COLLECTION
January 1, 2013 through December 31, 2022
This AGREEMENT (Agreement) made as of August 13, 2012, between the CITY OF ELK RIVER,
MINNESOTA, a Minnesota municipal corporation (City) and Allied Waste Services of North America, LLC, a
Delaware limited liability company, d /b /a Allied Waste Services of the Twin Cities — Blaine (Contractor),
RECITALS
WHEREAS, the City requires the collection and disposal of Garbage, Refuse, Rubbish, Recyclables and
Source Separated Organics (SSO) from residences in the City of Elk River; and
WHEREAS, it is the intent of the City to establish a volume -based collection system of Garbage,
Refuse, Rubbish, Recyclables and Source Separated Organics (SSO) that encourages recycling and discourages
disposal; and
WHEREAS, the Contractor is a licensed hauler in the City of Elk River engaged in the business of
collection and disposing of Garbage, Refuse, Rubbish, Recyclables and Source Separated Organics (SSO); and
WHEREAS, the City desires to hire these services of the Contractor and the Contractor desires to
provide these services to the City; and
WHEREAS, the City currently has a contract with Sherburne County pursuant to which the City has
agreed to deliver all residential waste collected in the City to the Elk River Resource Recovery Facility
(ERRRF) owned and operated by Great River Energy (GRE)., and to pay GRE directly for all City waste
managed at the ERRRF.
NOW, THEREFORE, it is agreed by and between the parties:
L PURPOSE OF CONTRACT
The Contractor shall collect all Garbage, Refuse, Rubbish, Recyclables and Source Separated Organics
(SSO) set out for collection within the "Designated Area" identified on Attachment A, all within the
corporate boundaries of the City of Elk River, on a weekly basis (or on a biweekly basis for those
customers with biweekly collection accounts) during the term of the Agreement. Such collections shall
include all residential properties having four or less dwelling units in a single building by use of
individual containers. In consideration of the exclusive collection rights for the "Designated Area" set
forth in Attachment A, subject to the terms of this Agreement, Contractor acknowledges it is prohibited
from the collection of Garbage, Refuse, Rubbish, Recyclables and Source Separated Organics (SSO)
from residential properties having four or less dwelling units in a single building outside the
"Designated Area" within the corporate limits of the City.
IL TERM OF CONTRACT
The term of this Agreement shall be for a period of ten (10) years commencing on
January 1, 2013.
The City and the Contractor may agree to extend the term of this Agreement beyond the original
term upon such terms and conditions, and for such length of time, as the parties shall
mutually agree in writing.
III. DEFINITIONS
For purposes of this Agreement, the following terms shall have the following meanings:
"Additional Collection Service" means all items that are collected in excess of the maximum volume
allowed for a dwelling unit.
"Cart" means a 90- gallon, 60 -gallon or 32 -gallon receptacle with wheels supplied by the Contractor
used to contain garbage or refuse.
"Collection Service" means the collection and transportation of Garbage, Refuse, Rubbish, Recyclables
and Source Separated Organics (SSO).
"Day- Certain collection" means the City- approved plan for weekly Collection Service by an established
day- certain schedule. This schedule requires collection on the same day of each week and is based on a
five (5) day, Monday through Friday, working week. The only exceptions to the "day- certain" plan
shall be during those weeks in which legal holidays occur.
"Designated Area" means that area within the City of Elk River identified in Attachment A as: "Allied
Waste Services" for which the Contractor is responsible for collections within the scope of this
Agreement.
"Dwelling Unit" means a separate dwelling place with a kitchen or area for the preparation of food.
"Environmental Administrator" means the City Environmental Administrator or such other City
employee designated by the City Administrator or the City Council.
"ERRRF" means the Elk River Resource Recovery Facility.
"Facility" means the ERRRF, Elk River Landfill, or any other solid waste disposal facility approved by
the MPCA.
"Garbage" means animal and vegetable waste resulting from the handling, preparation, cooking, service,
and consumption of food.
"Hazardous Waste" means waste identified as hazardous by State or Federal law, rules and regulations,
including but not limited to 42 U.S.C. § 6903 (5), and regulations interpreting such act, or in Minnesota
Statutes § 116.06, subd. 13, and regulations interpreting such statute, but not including waste excluded
from regulation by Minnesota Rules 7045.0120A, as any of the foregoing may be amended from time to
time.
"MPCA" means the Minnesota Pollution Control Agency.
"Source Separated Organics (SSO)" is comprised of food wastes, fish and animal waste, plant materials,
and paper that is not recyclable because the MPCA has determined that no other person is willing to
accept the paper for recycling
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"Recyclables" means reusable or reprocessable materials designated by the City. Recyclables include
such items as newsprint, corrugated and ledger paper, glass, plastics, tin cans, aluminum, used motor oil,
batteries, tires, and other metal goods. Recyclables specifically exclude refuse.
"Recycling Container" means a container supplied by the Contractor to the dwelling unit to place
Recyclables in for collection.
"Refuse" means putrescible and nonputrescible solid waste from residences including Garbage and
Rubbish, and specifically excluding Yard Waste, Recyclables, and Hazardous Wastes. Refuse further
excludes industrial, commercial, agricultural, and construction Garbage or Rubbish and wastes.
"Rubbish" means inorganic solid waste, including ashes, consisting of both combustible and
noncombustible wastes, such as wood, bedding, crockery, and other nonreusable waste. Rubbish also
includes nonrecyclable types of glass, paper, cardboard, and metal cans.
"Unacceptable Waste" means waste delivered in quantities to the Facility which, as determined by the
MPCA, County, City or Facility, may pose a threat to health or safety, or to the environment, or may
cause damage to, or materially adversely affect, the operation of a Facility, including but not limited to:
incinerator ash; foundry sand; explosives; hospital, pathological and biological waste; hazardous waste,
chemicals and radioactive materials; oil sludges; asbestos in identifiable quantities; cesspool or other
human waste other than that carried in disposable diapers; sewage and other highly diluted, water -
carried materials or substances and those in gaseous forms; human or animal remains; street sweepings;
ash; mining waste; sludges; demolition debris; hazardous refuse of any kind, such as cleaning fluids,
crank case oils, cutting oils, paints, acids, caustics, poisons, drugs and such other materials as may be
specified in writing from time to time by the City, County, State or Facility.
"Volume- based" Collection Service" means the maximum amount of garbage and refuse a dwelling unit
is permitted to dispose under the contract rate.
"White goods" are large household items including refrigerators, stoves, dishwashers, washers and
dryers, water heaters, carpeting and padding, mattresses, chairs, couches, tables, and such other items of
furniture which are too large for one person to pick up.
"Yard Waste" means garden wastes, leaves, lawn cuttings, weeds, shrub and tree waste and prunings.
IV. SCOPE OF CONTRACT
A. Collection Service
Garbage, Refuse and Rubbish Collection
a. All occupants of residential properties consisting of four or less dwelling units in
a single building in the City are required by ordinance to keep Garbage, Refuse
and Rubbish in a cart container of 90, 60 or 32 gallons.
b. Cart containers are to be furnished and maintained in good condition by the
Contractor. Actual service needs are to be determined by volume accumulations
as judged by the Environmental Administrator, upon review with the Contractor.
C. Garbage, Refuse and Rubbish collection shall not include Hazardous Waste,
Unacceptable Waste, Yard Waste, Recyclables or SSO.
d. Garbage, Refuse and Rubbish cart containers shall be placed at the curb on
collection day, in a location easily accessible to motor vehicle pick -up.
Containers must be placed properly for pick -up prior to 6:00 a.m. and cannot
continue past 7:00 p.m. on the day of collection to insure service.
e. Door step service will be provided by the Contractor at the direction of the
Environmental Administrator for elderly and disabled customers.
f The Contractor shall not be required to provide Collection Services or be
compensated for those households within the designated service area that operate
as legal, permitted home occupations.
g. The Contractor will provide biweekly low volume Collection Services for 32
gallon container users and two 90 gallon containers for large volume users, at the
direction of the Environmental Administrator, at the rate set forth in Attachment
B.
h. Garbage, Refuse and Rubbish in excess of the designated volume -base per
dwelling unit will be subject to additional Collection Service charges as follows:
1) Contractor shall pick up excess Garbage, Refuse and Rubbish in bags
placed outside of the resident's container only if the bag has a City issued
sticker placed on it. Contractor shall be reimbursed $1.50 for each such
bag picked up. Contractor shall be responsible for advising City of
addresses which consistently have excess amounts of Garbage, Refuse and
Rubbish, and City will determine whether to increase the container size for
that address.
2) Collection Service for white goods and large items must have prior
arrangements made between the Contractor and resident for collection.
The prices to be charged to residents for these Collection Services shall be
as set forth in Attachment C. These charges will be billed directly from
the Contractor to the resident.
Garbage and recycling containers will be dropped off at new accounts by the
Contractor within three (3) business days of notification by the City. Such
notification must be in writing or e -mail.
The Contractor shall deliver all Garbage, Refuse and Rubbish it collects under
this Agreement to the ERRRF, unless otherwise directed by the City, Sherburne
County or the ERRRF. In the event that Contractor is directed by City to a
Facility other than the ERRRF or the Elk River Landfill, the Contractor shall be
credited $1.00 per mile by the City for the round trip mileage between the ERRRF
and the back -up Facility.
k. Unless otherwise directed by City, Contractor shall, upon delivery of Garbage,
Refuse and Rubbish to the ERRRF or other designated Facility give the Facility
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operator a load report on a form acceptable to Sherburne County that provides
information concerning the load as may be required by the County. The
Contractor shall also provide the City, on a monthly basis, with receipts showing
the weight of Garbage, Refuse and Rubbish delivered to the ERRRF under this
Agreement, or any other Facility to which Garbage, Refuse and Rubbish collected
under this Agreement is delivered.
The Contractor shall not knowingly deliver any Unacceptable Waste to a Facility,
nor shall the Contractor mix any Unacceptable Waste with Garbage, Refuse and
Rubbish collected under this Agreement. If the Contractor is uncertain whether
certain waste is Unacceptable Waste, Contractor may request a determination
from the Facility by submitting a "Pre - Delivery Waste Evaluation" request in
accordance with procedures established by Sherburne County.
M. If a Facility has a reasonable basis to believe that Garbage, Refuse and Rubbish
delivered by the Contractor contains Hazardous Waste or other Unacceptable
Waste, the Facility operator may require the Contractor, at Contractor's expense,
to recover and properly manage or dispose of waste deposited upon the tipping
floor which contains Hazardous Waste or Unacceptable Waste. In the event
Garbage, Refuse and Rubbish is rejected by the Facility, and the Contractor
disagrees with a decision by the Facility to reject a load of Garbage, Refuse and
Rubbish, the Contractor shall have the right to present information to the County,
the Facility, and the City in support of its claim. The claim will then be resolved
by the City, County and Facility.
2. Recycling Collection
a. Recycling collection shall take place every other week for each dwelling unit, on
the same day of the week as scheduled refuse, rubbish and garbage collection.
The schedule shall be consistent with the schedule of the Garbage, Refuse and
Rubbish collection. Daily service hours shall not begin prior to 6:00 a.m. nor
continue past 7:00 p.m.
b. All occupant or resident properties consisting of four or less dwelling units in a
single building in the City will be provided Recycling Containers by the City for
Recyclables.
C. Collection will be from the curbside. All recyclables other than SSO shall be
collected from a single container and need not be separated. SSO will be
separated and placed in a separate container provided by the Contractor.
Collection must be for all materials designated by the City as recyclables,
including such items as paper, newspaper, magazines, and catalogs, glass
containers, aluminum, tin cans, cardboard, plastics, and Source Separated
Organics (SSO). The City may designate additional materials as Recyclables
during the term of this Agreement.
d. The Contractor shall not mix other types of refuse or inorganic materials with the
Recyclables or take any action so as to make the Recyclables unacceptable to the
operators of the recycling center.
e. The Contractor shall provide monthly reports to the City of all recyclables
collected. The required information includes the market, the receipts, and the net
weight and type of material.
B. Service Schedule
All Collection Service shall be conducted between the hours of 6:00 a.m. and
7:00 p.m., Monday through Friday, except when an emergency shall exist, at which
time the Contractor shall notify the City Environmental Administrator of such emergency
conditions. The Contractor may perform Collection Services on Saturday when a holiday
falls on a weekday.
2. Collection Services shall be done in accordance with a schedule of pick -ups to be
established by the Contractor and submitted in writing to the City Environmental
Administrator for prior approval. The schedule shall include the areas in which pick -ups
will be made each day of the week and how many vehicles will be used in the area. Each
dwelling unit shall have its refuse collected a minimum of once a week, except those
dwelling units for which the City has approved biweekly pick -up.
a. The Contractor may request a change in the day of pick -up by requesting
such change in writing to the Environmental Administrator at least twenty -one
(21) days prior to the proposed date the requested change is to take effect. A
change shall be effected only upon authorization from the Environmental
Administrator and fourteen (14) days' notice to the residents.
b. The Contractor shall bear all costs involved on notifying residents
of approved schedule changes.
C. The Contractor may request a change in the route schedule by requesting
such change in writing to the Environmental Administrator and at least thirty (30)
days prior to the proposed date the requested change is to take effect. A route
change shall be effected only upon authorization from the Environmental
Administrator.
The Contractor shall not be required to provide Collection Service on New Year's
Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, or
Christmas Day (the Holidays); provided, that the Holiday falls on a weekday, it
will be the only day on which routes are not collected. When a Holiday falls on a
weekday, the Contractor will collect the routes for the designated day the following
day for the rest of the week. Specifically, if a Holiday falls on a Monday, the
Monday routes will be collected Tuesday, the Tuesday routes will be collected on
Wednesday and so on through Saturday of the week during which the Holiday falls.
It shall be the Contractor's responsibility to notify residents of any changes in the
collection schedule as a result of said Holidays.
4. Only such pick -ups shall be made as have been authorized by the City Environmental
Administrator, and the Contractor shall not be entitled to payment for any pick -up(s) not
authorized by the Environmental Administrator.
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a. In the event that a dwelling unit has been authorized for refuse Collection Service
and the Environmental Administrator wishes to discontinue Collection Services at
such residence, the Environmental Administrator shall notify the Contractor to
that effect at least one week prior to the date of discontinuance of such service.
b. When the Environmental Administrator notifies the Contractor, in writing, e -mail
or by facsimile, that the owner or occupant of a residence has refused service,
such service shall be discontinued within one week from the time of such request.
The City reserves the right to improve or temporarily close any street or alley which may
prevent the Contractor from traveling his /her accustomed route or routes for collection.
The Contractor shall contact the Environmental Administrator prior to each construction
season to determine areas of conflict and possible alternate routes or solutions. No
additional compensation will be due for this interference.
6. The City reserves the right to adjust the "Designated Area" identified in Attachment A as
provided in this Agreement.
C. Performance of Collection
Equipment
a. The Contractor shall make all collections of Garbage, Refuse Rubbish
Recyclables and SSO in water -tight metal receptacles or vehicles with
closed tops so constructed that their contents will not leak, spill, or scatter
there from. Should any Garbage, Refuse, Rubbish, Recyclables, or SSO be
dumped or spilled in collecting or transporting, it shall be immediately cleaned
up. A broom and shovel in good useable condition should be placed and
maintained on each vehicle for this purpose. Receptacles and vehicles shall be
kept clean and as free from all offensive odors as possible and shall not be
allowed to stand in any street, alley, or other place longer than is reasonably
necessary to collect Garbage, Refuse, Rubbish, Recyclables, and SSO.
b. All vehicles shall be painted and marked uniformly and shall have the hauler's
name and telephone number prominently displayed in letters of a contrasting
color, at least three inches high, on each side of the vehicles.
C. The Contractor shall keep all equipment used in the performance of the work in
good operating condition and in a clean, sanitary condition, and shall thoroughly
inspect each vehicle as necessary. They shall be equipped to meet all federal,
state, and municipal regulations concerning vehicles used on public roads and
maintained to meet these standards. Equipment is subject to periodic inspection
by the City.
d. The Contractor shall furnish the Environmental Administrator with a written
description of all vehicles and equipment to be used within the City of Ells River
and in the performance of this Agreement and shall advise the Environmental
Administrator in writing on any withdrawal of a part of such equipment or of any
change therein within one week of the time of making such change.
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e. Each collection vehicle shall have a flashing light warning system, fire
extinguisher and proper back -up alarms as approved by the Environmental
Administrator.
2. Personnel Requirements
a. There shall be no limitation on the size of the hauler's collection crew so
long as they are sufficient to fulfill the requirements of the specifications of
this Agreement.
b. The Contractor's employees shall handle all containers with reasonable care
to avoid damage, replace the containers in an upright position on the
boulevard adjoining the curb and properly dispose of any contents which may be
spilled. The Contractor's employees will also report to the
Contractor any violations of regulations as they observe in the
performance of their work. Employees shall be sober at all times in the
performance of their duties, be of a presentable appearance, perform work
in a neat and quiet manner, and at all times be courteous to the public.
Supervision
a. A full -time superintendent of collections shall be employed by the
Contractor and shall be the representative of the Contractor under this
Agreement. The superintendent shall be on the job during normal hours of
Collection Service and shall maintain proper schedules for collection.
The superintendent shall have supervisory duties which shall include
servicing of complaints.
b. All services to be performed for the City by the Contractor pursuant to the
terms of this Agreement shall be supervised by the Environmental Administrator.
The Environmental Administrator shall have access to all of the Contractor's Ells
River records and equipment at reasonable times.
4. Complaints
a. The Contractor shall establish and maintain, an office with continuous supervision
for accepting complaints and resident calls. The office shall be in service during
the hours of 8:00 a.m. and 4:30 p.m., Monday through Friday, except holidays as
specified in this Agreement. The address and telephone number of such office
and any changes shall be given to the Environmental Administrator in writing.
Verified failure to make a pick -up or follow up on a complaint shall be cause to
deduct $15.00 as liquidated damages from the monthly payment by the City.
b. Whenever the City or a resident notifies the Contractor of a location which has
not received scheduled Collection Service, the Contractor is required to service
such location no later than the following working day from the time of complaint.
A record of all complaints and action taken thereon shall be kept by the
Contractor and reported monthly to the City. All complaints shall be answered by
the Contractor courteously and promptly.
Legal Compliance
a. The Contractor shall comply with ordinances of the City and the laws and
regulations of Sherburne County and the State of Minnesota and their agencies
relating to sanitation and collection of Garbage, Refuse, Rubbish, Recyclables,
and SSO in effect during the term of this Agreement.
b. The Contractor shall report all violations of ordinances pertaining to Garbage,
Refuse, Rubbish, Recyclables, and SSO collection and disposal for enforcement
purposes, including all unsanitary and filthy conditions, to the Environmental
Administrator.
6. Safety
a. The Contractor shall provide and maintain all sanitary and safety accommodations
for the use and protection of its employees as may be necessary to provide for
their health and welfare and comply with federal, state, and local codes and
regulations, as well as those of other bodies and tribunals having jurisdiction.
Employee safety and sanitation facility regulations are set forth in Minnesota
Statutes, Ch. 182 and in the Department of Labor and Industry's Labor Safety
Code Rule (LISC 73 -75).
D. Payment Method
The City will compensate the Contractor according to the rates set forth in Attachment B
for Collection Service, based on the number of dwelling units serviced each week, by a
volume -based method. The actual number of dwellings serviced shall be determined
from the invoices issued by the City to customers for Collection Service for that service
month.
2. Additions or deductions in the number of units collected shall be subject to verification
and agreement between the City and the Contractor. Such adjustments may not be made
more often than once per month.
a. The City will supply a record of accounts and adjustments to the Contractor on a
weekly basis.
b. The City will notify the Contractor of the dwelling units that make changes in
their billing rate.
C. New accounts will be divided equally between the City's two collection districts
on a bi- annual basis. The new accounts will be counted bi- annually, but will not
be adjusted unless there is a difference of more than 50 accounts.
3. During the period of this Agreement, the City will pay to the Contractor the
compensation provided for in this Agreement, on or before the 15th day of each month, for
Collection Service performed by the Contractor during the preceding calendar month.
4. Tipping fees charged by the ERRRF for Garbage, Refuse and Rubbish delivered to and
accepted by the ERRRF pursuant to this Agreement shall be paid directly to the ERRRF
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by the City, until such time as City shall notify Contractor of an alternate arrangement.
Tipping fees paid to any Facility other than ERRRF shall be paid by the Contractor,
unless other arrangements are made in advance with the City, and the City will reimburse
Contractor the lesser of actual tipping fees paid or the then current tipping fees at the
ERRRF. City shall have the right, upon 15 days written notice, to have Contractor pay
tipping fees to the ERRRF. All tipping fees paid to ERRRF will be reimbursed by City
unless City has directed that refuse be delivered to a different Facility.
Price
The base dwelling unit price paid by the City to the Contractor shall be as established in
Attachment B to this Agreement. Beginning on November 1 of each even numbered year
the City and the Contractor shall meet to jointly review the terms of this Agreement,
including the payment schedule outlined in Attachment B, to determine if any
adjustments are needed. However, nothing in this clause or Agreement shall obligate the
City to increase payment to the Contractor as a result of such meetings.
6. Additional Collection Services
Charges for pick -up of additional items and for additional Collection Service shall be
made directly by the resident owner to the Contractor at a rate approved by the City
Administrator. The additional Collection Service price is established in Attachment C to
this Agreement.
7. State sales tax and surcharges.
The applicable state sales taxes and surcharges shall be billed by City to customers and
paid to the state by City
E. Performance of Agreement
The Contractor shall keep complete and accurate records in accordance with generally
accepted accounting practices.
2. Payment and Collection of fees for Collection Services
a. The City shall bill and collect monies due from residents for base Collection
Service.
b. The Contractor shall be responsible for the billing of Additional Collection
Service to the dwelling unit.
The Contractor shall supply all labor, material, and equipment necessary for the carrying out
of the Agreement.
4. Insurance
During the entire period of the Agreement, the Contractor shall maintain, at its cost and
expense, and file with the City, policies or certificates of Workers' Compensation and
Liability Insurance. Minimum insurance policy coverage requirements are $500,000
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bodily injury per person, $1,000,000 aggregate per occurrence, and $50,000 property
damage. All policies evidencing insurance required by this paragraph shall name the City
and the Contractor as named insureds, and shall insure the City and the Contractor by
reasons of any act or omission, including negligence, of the Contractor or of the
Contractor's employees or agents in connection with the performance of this Agreement,
including claims arising out of the use of or operation of any vehicles used by the
Contractor or the Contractor's employees or agents in performing this Agreement. Such
policies shall be in form and content satisfactory to the City Attorney and shall be filed
with the City Clerk. A certificate showing that the Contractor has in effect the aforesaid
insurance covering both the Contractor and the City shall be filed with the City Clerk
within ten (10) days from the execution of the Agreement, and yearly thereafter, at least
thirty (30) days prior to the date of the expiration of said policies of insurance for each
year of the Agreement. All of the foregoing policies shall be issued by an insurance
company or companies licensed to do business in the State of Minnesota and authorized
to assume the risks covered thereby. Memorandum policies and receipts for the payment
of premiums shall be filed with the City showing payment of premiums for at least one
year in advance and on each renewal date provided therein.
Indemnification
The Contractor agrees to indemnify and hold harmless the City, its agents, officers, and
employees from any and all claims, causes of action, liabilities, losses, damages, costs,
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 the Contractor or others, including loss of use from any cause
whatsoever, which may be asserted against the City on account of any act or omission,
including negligence, of the Contractor, or the Contractor's employees or agents in
connection with the Contractor's performance of this Agreement. The Contractor agrees
to defend any action brought against the City on any such matters, and to pay and satisfy
any judgment entered thereon together with all costs and expenses incurred in connection
therewith. The City shall in no way be liable for any claims or charges incurred by the
Contractor in the performance of this Agreement.
6. Guaranty of Nondiscrimination
The Contractor agrees that during the life of the Agreement, the Contractor will not,
within the State of Minnesota, discriminate against any employee or applicant for
employment because of race, color, creed, national origin or ancestry, or sex, and will
include a similar provision in all subcontracts entered into for the performance thereof.
The Agreement may be cancelled or terminated by the City, and all money due or to
become due may be forfeited for a second or subsequent violation of the terms or
conditions of this paragraph. This paragraph is inserted in the Agreement to comply with
the provisions of Minnesota Statutes, § 181.59.
7. Assignment and Transfer.
a. The Contractor will not make or create, or suffer to be made or created, any total
or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer
in any other mode or form of or with respect to this Agreement or any part thereof
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or any interest therein, or any agreement to do any of the same, without the prior
written approval of the City, which approval will not be unreasonably withheld.
b. The City shall be entitled to require, except as otherwise provided in this
Agreement, as conditions to any such approval that:
Any proposed transferee shall have the qualifications and financial
responsibility, as reasonably determined by the City, necessary and
adequate to fulfill the obligations undertaken in this Agreement by
Contractor; and
2. The transfer does not create an anti -trust situation in the local refuse
hauling industry that is contrary to the public interest of the residents of
Elk River; and
Any proposed transferee, by instrument in writing satisfactory to the City
for itself and their successors and assigns, and expressly assumed all of the
obligations of service under this Agreement and agreed to be subject to all
the conditions and restrictions to which service is subject. It is the intent
of this Section IV.E.7., together with other provisions of this Agreement,
that (to the fullest extent permitted by law and equity and excepting only
in the manner and to the extent specifically provided otherwise in this
Agreement) no transfer of, or any interest therein, however consummated
or occurring, whether voluntary or involuntary, shall operate, legally or
practically, to deprive or limit the City of or with respect to any rights or
remedies or controls provided in or resulting from this Agreement; and
4. There shall be submitted to the City for review all instruments and other
legal documents involved in effecting such transfer, and if approved by the
City, its approval shall be indicated to the Contractor in writing. The
proposed transferee shall submit to the City for review all bonds,
insurance policies, and any and all other documents required by this
Agreement, and if approved by the City, its approval shall be indicated to
the proposed transferee in writing.
Payment of Subcontractors and Employees.
The Contractor shall promptly pay all persons doing work or furnishing skills, tools,
machinery, or materials or insurance premiums or equipment or supplies and all just
claims for such work, material, equipment, insurance, and supplies in and above the
performance of this Agreement.
9. Termination
a. This Agreement may be terminated only:
i. By written Agreement by the parties; or
ii. By the City if the City determines that the Contractor is in
violation of the terms of this Agreement. In this instance, a
written notice will be sent with the Contractor allowing ten
(10) days to comply. Failure by the Contractor to comply with
12
this Agreement will result in cause for the City to terminate
this Agreement by written notice to the Contractor.
iii. By the City, if more than five (5) complaints regarding
Contractors performance under this Agreement are received in
one (1) month. In this instance, Contractor will be put on
probation for six (6) months. If any complaints additional
complaint is received during the six month probation period,
this Agreement may be terminated by the City upon written
notice to the Contractor.
b. Upon termination of this Agreement:
i. Contractor shall discontinue providing collection service on the
date specified in the written Agreement to terminate or the
City's notice to Contractor of termination; and
ii. Contractor shall transfer all records, pick up their containers
c. If the Contractor fails to fulfill any of the provisions of this
Agreement, the City shall be authorized to fulfill the Contractor's
obligation under this Agreement and may hire such personnel, or
assign City employees and equipment, as may be necessary to do so.
The City's costs to fulfill the Contractors obligations under this
Agreement shall be the responsibility of the Contractor, shall be
charged to the Contractor, and may be deducted from any monies due
the Contractor, or may be collected from the Contractor.
10. Entire Agreement
This Agreement including Attachments A, B, and C, incorporated herein by reference, is
the entire agreement between the parties. No modification of this Agreement shall be
valid or effective unless made in writing and signed by the parties hereto.
IN WITNESS WHEREOF, the City of Elk River and Allied Waste Services have executed this Agreement the
day and year written below.
Allied Waste Services
Its
Date
CITY OF ELK RIVER
By:
John J. Dietz
Its: Mayor
By:
Tina Allard
Its: City Clerk
Date:
13
CERTIFICATES OF ACKNOWLEDGMENT
STATE OF MINNESOTA )
) ss.
COUNTY OF SHERBURNE )
On this day of , 2012, before me personally appeared , who,
being duly sworn, did say he /she is the , of Allied Waste Services, and acknowledged that
he /she executed the same as his /her free act and deed.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF SHERBURNE )
On this day of , 2012, before me personally appeared John J. Dietz and Tina
Allard, to me personally known, who, being duly sworn, did say they are the Mayor and City Clerk of the City
of Elk River, Minnesota, and acknowledged the instrument to be the free act and deed of said corporation.
Notary Public
14
ATTACHMENT B
City of Elk River Monthly rate matrix for waste and recycling services
Current 1st Year
Rates year Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 10
10 Year Agreement (start date 1/1/2013)
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
32 Gallon Residential Trash cart (Bi- Weekly)
$6.36
$6.36
$6.53
$6.53
$6.69
$6.69
$6.89
$6.89
$7.08
$7.08
$7.31
32 Gallon Residential Trash cart
$6.46
$6.46
$6.65
$6.65
$6.85
$6.85
$7.06
$7.06
$7.27
$7.27
$7.45
64 Gallon Residential Trash cart
$6.57
$6.57
$6.77
$6.77
$6.97
$6.97
$7.18
$7.18
$7.39
$7.39
$7.59
96 Gallon Residential Trash cart
$6.67
$6.67
$6.87
$6.87
$7.08
$7.08
$7.29
$7.29
$7.51
$7.51
$7.69
Two 96 Gallon Residential Trash carts
$11.67
$11.67
$11.87
$11.87
$12.08
$12.08
$12.29
$12.29
$12.51
$12.51
$12.69
Recycle Service with carts- all sizes
$3.00
$3.25
$3.25
$3.25
$3.25
$3.25
$3.49
$3.49
$3.49
$3.49
$3.49
Monthly Recycling rates are for Single Sort, carted recycling.
The use of a second trash cart is simply $5.00 more per month.
15
ATTACHMENT C
Charges for Special Collection of Additional Items
(Based on Curbside Pick -Up)
Auto car seat — single
$18.00
Auto car seat — bench
$18.00
Mattress
$18.00
Box Spring
$18.00
Carpet (per square yard)
$0.90
Carpet padding (per square yard
$0.60
Chair, Upholstered)
$18.00
Couch
$20.00
Hide -A -Bed
$22.50
Bath tub
$20.00
Television up to 27"
$45.00
Television over 27" or console
$65.00
Other items and charges for pick -up
from other than curbside.
As negotiated between
Contractor and Property owners
All items identified above must be pre - scheduled with Contractor so as to provide proper equipment and
manpower with payment attached to said item(s). The Contractor shall pay collection and disposal costs for
these items.
16
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City of
Elk
River
REQUEST FOR ACTION
TO
ITEM NUMBER
Mayor and City Council
6.4
AGENDA SECTION
MEETING DATE
PREPARED BY
Work Session
July 9, 2012
Rebecca Haug, Environmental
Administrator
ITEM DESCRIPTION
REVIEWED By
Residential Garbage and Recycling Contract Renewal
Cal Portner, City Administrator
Tim Simon, Finance Director
REVIEWED BY
Peter Beck, City Attorney
ACTION REQUESTED
Discuss extending the contracts with Allied Waste and Randy's Environmental Services, Inc., to continue
providing collection services to Elk River residents.
BACKGROUND /DISCUSSION
The City of Elk River has had an organized garbage collection program since 1991. In the beginning of
the program, the city was divided into four sections with four different haulers. Over the years, the
smaller haulers were bought out by Randy's Environmental Services, Inc., and Allied Waste. The city
currently has two collection districts serviced by these haulers.
The positives of having an organized collection include the ability to contract for a set price, control over
where the material is disposed of, less wear and tear on city streets with less truck traffic, and improved
safety with fewer trucks on the roads.
The contract with the current haulers is due to expire on December 31, 2012, and staff has worked with
the haulers to extend their contracts.
There are several proposed changes to the contract. The first is a term change from a five -year contract
to 10 -year contract with biennial review. The premise behind extending the term is the haulers are able to
keep rates lower and offer additional services. The contract does have language to terminate the
contracts if either party is not satisfied with the services. By continuing with the existing contracts, rates
are kept low and the residents will not have their services disrupted.
The second change is a switch from a dual stream recycling program to a single stream recycling program.
Currently, we require residents to separate paper products from plastic containers and place them in
paper bags in their green recycling bin. With a single sort system, the residents receive a 32- gallon
container similar in size to their trash container in which all recyclables can be placed for recycling.
Residents have requested this service for many years and in many communities single stream collection
has increased recycling immensely. The haulers requested a 10 -year contract to offset the investment in
new recycling containers.
P0WEREO AY
N:APublic Bodies \City Council \Council RCA \Agenda Packet \07 -09- 2012 \6.4 Garbage Contracts.docx A f U R
The haulers are requesting a three percent rate increase in the even numbered years starting in 2014. The
recycling rates will stay the same for a five -year period. In 2013, the prices will increase from $3.00 to
$3.25 and then in 2018, the prices will increase to $3.49. Even with the prices increases, staff will be
able to keep the residents' rates the same due to the cash balance available in the Garbage Fund. The
attached figures are based on current practices and expenditures. No increases are projected for the next
several years. annual budget reviews will determine when rates need to be adjusted.
FINANCIAL IMPACT
Please see the attached spreadsheet.
ATTACHMENTS
• Draft Agreement for Garbage, Refuse, and Recycling Collection
• Financial Spreadsheet
• Coverage Area Tap
Action Nlotion by Second by Vote
Follow Up
N:APublic Bodies \City Council \Council RCA \Agenda Packet \07 -09- 2012 \6.4 Garbage Contracts.docx
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