6.1. SR 10-25-1993
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ITEM 6. 1.
TO:
MAYOR & CITY COUNCIL
FROM:
GARY SCHMITZ, RECYCLING COORDINATOR
/ZONING ASSISTANT
DATE: OCTOBER 25, 1993
SUBJECT: RENEWAL OF GARBAGE, REFUSE, AND
RECYCLING CONTRACT
On November 1, 1993, the City of Elk River's contract for
garbage, refuse, and recycling collection will expire. City
staff has negotiated a new contract with the refuse haulers
which is very similar to the original three-year contract.
Attached is a copy of the new hauler contract. I have
highlighted the areas where proposed changes have occurred.
Overall, most of the changes are somewhat minor with the basic
services not changing. Please keep in mind that the last rate
increase occurred in July, 1992. The new contract will not
require the rates to increase.
The two most noteworthy changes are as follows:
1.
Tippinq Fee Increases or Decreases The new contract
addresses increases or decreases in the tipping fees
charged at the RDF Plant in Elk River. The original
contract only allowed a rate adjustment due to a ten
percent or more aggregate increase or decrease in the
tipping charges. The new contract, on Page 11, proposes
an automatic increase or decrease in the rates reflecting
upon increases or decreases in the tipping fee. It is
staff's opinion that the majority of the people can accept
a rate increase if you can show that a fixed cost such as
a tipping fee has increased. It is important to mention
that tipping fees for eastern Sherburne County are not
expected to increase in 1994. The tipping fee for eastern
Sherburne County is established by Sherburne County.
Attached is an article from the Star Tribune dated
October 11, 1993, which shows that tipping fees in the
metro area might actually decrease throughout the next few
years. Designation ordinances established by counties
require haulers to take their waste to specific sites.
Designation ordinances are being challenged by refuse
haulers throughout the state. If designation is
considered unconstitutional, metro haulers would have the
ability to haul their waste to outs tate approved landfills
which have lower tipping fees. This would force metro
counties to lower their tipping fees to be more
competitive.
Cost of Livinq Increase - Another issue involves a cost
of living increase. Two out of three years, the refuse
haulers received a partial cost of living increase. Staff
P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
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would like to avoid cost of living increases unless the
cost of living increases substantially. The new contract,
on Page 11, incorporates language which limits cost of
living increases or decreases to years when the
Minneapolis/st. Paul consumer price increases or decreases
in excess of six percent. The last three years the
Minneapolis/st. Paul Consumer Price Index (CPI) increase
was around three percent each year.
Again, I want to repeat that the rates are not expected to
increase with the start of the new contract. Services such as
curbside recycling and refuse container options will remain the
same as in previous years.
RECOMMENDATION
Staff recommends approval of the renewal of the three year
garbage, refuse, and recycling contract.
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CITY OF ELK RIVER
AGREEMENT FOR GARBAGE, REFUSE AND RECYCLING COLLECTION
November 1, 1993 through October 31, 1996
AGREEMENT made as of
, 1993, between the CITY
OF ELK RIVER, MINNESOTA, a Minnesota municipal corporation (City)
and PETERSON BROTHERS SANITATION, INC., a Minnesota
Corporation (Contractor),
RECITALS
WHEREAS, the City requires the collection and disposal of
garbage and rubbish, and recyclables 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, rubbish, and recyclables 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 and rubbish, and recyclables; and
WHEREAS, the City desires to hire the services of the
Contractor and the Contractor desires to provide the services to
the City;
NOW, THEREFORE, it is agreed by and between the parties:
I. PURPOSE OF CONTRACT
The Contractor shall collect all garbage and refuse 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 and recyclables at least
biweekly 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.
II. TERM OF CONTRACT
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The City and the Contractor may agree to extend the term of
this Agreement for two years beyond the original term, upon
such terms and conditions as the parties shall mutually
agree.
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III. DEFINITIONS
For purposes of this Agreement, the following terms shall
have the following meanings:
"Additional collection service" shall include all items
that are collected in excess of the maximum volume allowed
for a dwelling unit.
"Cart" means a 90-gallon or 32-gallon receptacle with
wheels supplied by the Contractor used to contain garbage
or refuse.
"Collection service" collection service is a private
operation engaged in collection and transportation of
refuse, yard waste and recyclables.
"Day-Certain collection" day-certain collection is a City-
approved plan for weekly collection services by an
established day-certain schedule. This schedule requires
refuse, and recyclable 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" is that area within the City of Elk River
identified on Attachment A as: "Peterson Brothers
Sanitation, Inc.," for which the Contractor is responsible
for collections within the scope of this Agreement. In
consideration of the exclusive collection rights for the
area set forth in Attachment A, subject to the terms of
this Agreement, Contractor acknowledges it is prohibited
from the collection of garbage, refuse and recyclables from
residential properties having four or less dwelling units
in a single building outside the "Designated Area" within
the corporate limits of the City.
"Dwelling Unit" means a separate dwelling place with a
kitchen or area for the preparation of food.
"Garbage" means animal and vegetable waste resulting from
the handling, preparation, cooking, service, and
consumption of food.
"Recyclables" are reusable or reprocessable materials
approved and agreed to by the parties hereto. 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 and compost.
"Recycling container" means a container supplied by the
City to the dwelling unit to place recyclable material in
for collection.
2.
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"Refuse" refuse is putrescible and nonputrescible solid
waste from residences including garbage and rubbish, and
specifically excluding yard waste, recyclables, and toxic
and hazardous wastes. Refuse further excludes industrial,
commercial, agricultural, and construction garbage or
rubbish and wastes.
"Rubbish" is 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.
"Toxic and hazardous wastes" are waste materials including
but not limited to poisons, wastes, radioactive materials,
flammable or explosive materials, and similar harmful
chemicals and wastes which require special handling and
must be disposed of in a manner to conserve the environment
and protect the public health and safety.
"Volume-based" refuse and garbage collection means the
maximum limit of garbage and refuse a dwelling unit is
permitted to dispose under the base refuse 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.
IV. SCOPE OF CONTRACT
A. Collection Service
1. Garbage and Refuse Collection
(a) All occupants of residential properties
consisting of four or less dwelling units in
a single building in the City shall be
required by ordinance to keep garbage or
refuse in:
1) A cart container of 90 gallons.
2) A cart container of 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 City Code Enforcement Officer, upon
review with the Contractor.
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(c) Garbage and refuse collection shall not
include toxic and hazardous waste.
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(d) The Contractor shall advise the City, in
writing, of the place and method of disposal
of such garbage and refuse, and of any
changes in same. The Contractor should
provide a quarterly weight report to the
City.
(e) Garbage and refuse 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.
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(f) The Contractor shall dispose of all such
refuse and garbage at an approved Minnesota
Pollution Control Agency disposal site.
(g) The Contractor shall maintain receipts from
equipment carrying Elk River refuse volume
estimates to the City. Such receipt shall
be made available for inspection by the City
Administrator or an authorized
representative.
(h) Garbage and refuse in excess of the
designated volume-base per dwelling unit
will be subject to additional collection
service charges and will be billed
separately by the Contractor. Collection
service for white goods and large items must
have prior arrangements with the Contractor
for collection.
(i) Door step service will be provided by the
Contractor at the direction of the City for
elderly and disabled customers.
(j) The Contractor shall not be required to pick
up refuse or be compensated for those
households within the designated service
area that operate as legal, permitted home
occupations.
(k) The Contractor will provide biweekly low
volume collection services for 32 gallon
container users at the direction of the
Recycling Coordinator at the rate set forth
in Attachment C.
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2. Recycling Collection
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(a) Recycling collection shall take place at
least twice a month for each dwelling unit,
as determined by the City. The schedule
shall be consistent with the weekly schedule
of the refuse 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 to participate
in the recycling program, provided by the
City, for the recyclable materials agreed
upon by the City and the Contractor.
(c) Collection will be from the curbside. At a
minimum, collection must be for newspaper,
glass containers, aluminum, tin cans and
plastics. If mutually agreed upon, other
materials can be added such as cardboard,
tin cans, and other types of paper and
metal.
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(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 recyclable material unacceptable to the
operators of the recycling center.
(e) The Contractor must provide quarterly
reports for all materials collected. The
required information includes the market,
the receipts, and the net weight and type of
material.
B. Service Schedule
1. 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 of such emergency conditions. The
Contractor may perform collection services on
Saturday when a holiday falls on a weekday.
2 .
Collections shall be done during Monday through
Friday (both inclusive) in accordance with a
schedule of pick-ups to be established by the
Contractor and submitted in writing to the City
Administrator for prior approval. The schedule
shall include the areas in which pick-up will be
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made each day of the week and how manlV"~hicles
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(a) The Contractor may request a change in the
day of pick-up by requesting such change in
writing to the City at least 21 days from
the proposed date the requested change is to
take effect. A change shall be effected
only upon authorization from the City and 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 City at least 30 days from
the proposed date the requested change is to
take effect. A route change shall be
effected only upon authorization from the
City.
3.
The Contractor shall not be required to make
regular collections 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, and the Contractor shall
not be entitled to payment for any pick-up(s)
made and not authorized by the City.
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(a) In the event that a dwelling unit has been
authorized for refuse service and the City
wishes to discontinue such service at such
residence, the City shall notify the
Contractor to that effect at least one week
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prior to the date of discontinuance of such
service.
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(b) The City shall advise the Contractor of any
request by the owner or occupant of a
resident that refuse service shall be
discontinued within one week from the time
of such request.
5. The City reserves the right to improve any street
or alley which may prevent the Contractor from
traveling his/her accustomed route or routes for
collection. The Contractor shall contact the
Building and Zoning Administrator prior to each
construction season to determine areas of
conflict and possible alternate routes or
solutions. No additional compensation will be
made for this interference.
6. The City reserves the right to adjust the
"Designated Area" identified in Attachment A at
the time of renewal of this Agreement.
C. Performance of Collection
1. Equipment
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(a) The Contractor shall make all collections of
garbage, refuse, and recyclables in water-
tight metal receptacles or vehicles with
closed tops so constructed that their
contents will not leak, spill, or scatter
therefrom. Should any garbage, refuse,
compost, or recyclables be dumped or spilled
in collecting or transporting, it shall be
immediately cleaned up. A broom and shovel
in good usable 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 and refuse.
(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.
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(c) The Contractor shall keep all equipment used
in the performance of the work in good
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operating condition and in a clean, sanitary
condition, shall thoroughly disinfect each
vehicle at least once a week unless the same
has not been used since the last
disinfection thereof, 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)
Description of Vehicles. The Contractor
shall furnish the City with a written
description of all vehicles and equipment to
be used within the City of Elk River and in
the performance of this Agreement and shall
advise the City in writing of any withdrawal
of a part of such equipment or of any change
therein within one week of the time of
making such change.
( e)
Safety Equipment. Each collection vehicle
shall have a flashing light warning system,
fire extinguisher, and proper back-up alarms
as approved by the City.
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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 and 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 dispose of any contents which may
be spilled in a workmanlike manner. 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.
3. Supervision
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(a) A full-time superintendent of collections
shall be employed by the Contractor and
shall be the representative of the
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Contractor under this Agreement. The
superintendent shall be on the job during
normal hours of collection operations 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 such
employee, agent, or officer of the City as
the City Administrator shall designate. The
designated inspector may have access to all
of the Contractor's Elk River records and
equipment at reasonable times.
4. Complaints
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(a) The Contractor shall establish and maintain,
in a location approved by the City, 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 and as
specified in the Agreement. Address and
telephone number of such office and any
changes shall be given to the City 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 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.
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5. Legal Compliance
(a) The Contractor shall comply with ordinances
of the City and the laws and regulations of
the State of Minnesota and its agencies
relating to sanitation and collection of
garbage and refuse in effect during the term
of the Agreement.
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(b) The Contractor shall report all violations
of ordinances pertaining to garbage and
refuse collection and disposal for
enforcement purposes including all
unsanitary and filthy conditions to the City
Code Enforcement Office.
6. Safety
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 182 and in the
Department of Labor and Industry's Labor Safety
Code (LISC 73-75).
D. Payment Method
1.
The City will compensate the Contractor,
according to the rates set forth in Attachment B,
for collection of garbage, refuse, and
recyclables upon the basis of 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 refuse
service for that service month.
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2. The total number of residential units in the
Designated Area as of November 1, 1990, is agreed
to be 1,707 residential units. Additions or
deductions in the number of units collected shall
be subject to the 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.
3.
During the period of the Agreement, the City will
pay to the Contractor such compensation on or
before the 15th of each month for garbage,
refuse, and recyclable collection service
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performed by the Contractor. The compensation
shall be for the collection service billed during
the preceding calendar month in accordance with
the directions from the City Administrator.
Adjustments may be initiated as follows:
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On April 1 of each year of the Agreement,
either party may request adjustments to the
Agreement's base rates on the basis of
increases and decreases in the
Minneapolis/St. Paul All Items Consumer
Price Index (CPI) for the preceding 12
months. Increases or decreases in the CPI
in excess of 6% for the preceeding 12 months
shall automatically adjusted without
request. Such changes shall be effective
July 1 of the year requested.
The tipping fee identified in Attachment B
shall increase or decrease corresponding
with the percent of increase or decrease at
the facility for refuse disposal. Either
party may initiate an adjustment in the
tipping rate upon a 60-day notice due to an
increase or decrease in the tipping charges.
Adjustments may also be made upon the basis
of a decrease in the amount of solid waste
generated due to the abatement of solid
waste generated or the exclusion of
recyclable materials from the solid waste
stream upon mutual agreement of both
parties. The tipping fee rate as of the
of this Agreement is $69.11.
5. Price.
The base dwelling unit price paid by the City to
the Contractor will be established in
Attachment B of this Agreement.
6. Additional collection services.
Charges for pick-up of additional items and for
additional service shall be made directly to the
resident owner to the Contractor at a rate
approved by the City Administrator. The
additional collection service price will be
established in Attachment B of this Agreement.
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E. Performance of Agreement
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1.
The Contractor shall keep complete and accurate
records in accordance with generally accepted
accounting practices.
2. PaYment and Collection for 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 services to
the dwelling unit.
3 .
The Contractor shall supply all labor, material,
and equipment necessary for the carrying out of
the Agreement.
4.
Insurance
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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 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 10 days from the execution of
the Agreement, and yearly thereafter, at least 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
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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.
5 .
Performance Bond.
(a) Bond. The Contractor shall execute and
deliver to the City a performance bond in
the sum of $100,000 conditioned upon the
faithful performance of the Agreement. In
addition, to further protect the City in the
event the Contractor fails to properly
perform under the Agreement, the Contractor
shall pledge to the City all receivables
collected by the City and not paid to the
Contractor, and all receivables not yet
collected by the City. This Agreement shall
not become effective until such bond has
been delivered to the City in form
acceptable to the City Attorney and has been
accepted by the City. Such bond shall be
filed with the City Clerk within 10 days
from the execution of this Agreement and
shall remain in effect until the expiration
of this Agreement.
(b) Performance Guarantee. In lieu of providing
a performance bond or bonds with the City of
Elk River, the Contractor shall guarantee
performance of this Agreement by delaying
the billing of services to the City until
the 15th day of the month following the
month in which collection services were
rendered by the Contractor. The City may
withhold payment from the Contractor for
failure to perform pursuant to this
Agreement.
(c) Remedy. In the event the Contractor fails
to properly perform under this Agreement,
the City may take whatever action is
necessary to secure substitute garbage and
refuse collection for the remainder of the
Agreement term, and may use the proceeds of
the bond and/or receivables mentioned above
to pay for the difference between the rates
provided by the Agreement and the actual
cost of such substitute service subject to
Section IV.E.10. (a) .
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6.
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.
7.
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.
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 or any
interest therein, or any Agreement or
agreement to do any of the same, without the
prior written approval of the City, which
approval will not be unreasonably withheld.
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(b) The City shall be entitled to require,
except as otherwise provided in this
Agreement, as conditions to any such
approval that:
1) 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
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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
3)
Any proposed transferee, by instrument
in writing satisfactory to the City fo~
itself and their successors and
assigns, and expressly for the benefit
of the City, have 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.S.,
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
change with respect to, ownership or
any part thereof, 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
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
15.
.
documents required by this Agreement,
and if approved by the City, its
approval shall be indicated to the
proposed transferee in writing.
9 .
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.
10. Termination
(a) If the City determines that the Contractor
is in violation of the terms of this
Agreement, a written notice will be sent to
the Contractor allowing 10 days to comply.
Failure by the Contractor to comply with the
Agreement by the end of the 10-day period
will result in cause for the City to
terminate this Agreement by written notice
to the Contractor.
e
(b) Upon failure of the Contractor to fulfill
any of the provisions of this Agreement, the
City Administrator shall be authorized to
hire such personnel equipment, or assign
City employees and equipment, as may be
necessary to do such work and the cost of
such expenses thereof may be charged and
deducted from any monies due the Contractor,
collected from the Contractor, or collected
by recourse to the Contractor's bond or
financial guarantee instrument submitted
subject to Section IV.E.10. (a).
11. Entire Agreement.
This Agreement with Attachments A, Band 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.
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16.
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IN WITNESS WHEREOF, the City of Elk River and Peterson
Brothers Sanitation, Inc., have executed this Agreement the day
and year written below.
PETERSON BROTHERS SANITATION, INC. CITY OF ELK RIVER
By: By:
Henry A. Duitsman
Its: Mayor
By:
Patrick D. Klaers
Its: City Administrator
Date:
Date:
17.
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CERTIFICATES OF ACKNOWLEDGEMENT
STATE OF MINNESOTA )
)ss
COUNTY OF SHERBURNE)
On this day of
personally appeared
being duly sworn, did say he is the
Peterson Brothers Sanitation, Inc., and acknowledged
executed the same as his free act and deed.
, 1993, before me
, to me known, who,
of
that he
Notary Public
STATE OF MINNESOTA )
)ss
COUNTY OF SHERBURNE)
On this day of , 1993, before me
personally appeared Henry A. Duitsman and Patrick D. Klaers, to
me personally known, who, being duly sworn, did say they are
the Mayor and City Administrator of the City of Elk River,
Minnesota, and acknowledged the instrument to be the free act
and deed of said corporation.
Notary Public
TJK:KH6s
18.
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SPECIFICATIONS
ATTACHMENT B
During the period of the Contract, the base dwelling unit price
for refuse, garbage, and recyclables will be paid by the City to
the Contractor monthly the following rate for each dwelling unit of
pick-up service:
90 Gallon 32 Gallon
(Weekly (Weekly
Collection) Collection)
Refuse and Garbage Collection $ 15.08 $ 11. 40 $ 10.90
Recycling Collection (Biweekly) $ 2.80 $ 2.80 $ 2.80
Total Dwelling Unit Rate $ 17.88 $ 14.20 $ 13.70
TJK:KH6s
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2.
2.
3.
4.
5.
6.
7.
e 8.
9.
ATTACHMENT C
TO
ELK RIVER REFUSE SERVICE CONTRACT
Charges for Additional Items
(Based on Curbside Pick-up)
ITEM
Grass clippings and yard waste
Bundled Brush (not to exceed 30 pounds,
3 feet long, and 3 inches in diameter)
Auto car seat - single
Auto car seat - bench
Mattress or box spring
Carpet and/or pad
Chair (lazy-boy style)
Couch
Hide-a-bed
Portable television
Console television
10. Bathtub
11. Garbage (over 32 or 90 gallon limit)
12. Charges for pick-up from other than
curbside
13. Other items as negotiated between
Contractor and property owners
CHARGE
$ 1.00/bag (5 bag min)
$ 2.00/bundle
$ 9.00
$ 15.00
$ 10.00 per item
$ LOO/sq. yd.
$ 20.00
$ 15.00
$ 20.00
$ 5.00
$ 15.00
$ 20.00
$ 2.00/bag
Items 1-13 must be pre-scheduled with Contractor so as to
provide proper equipment and manpower with paYment attached to
said item (s) .
.
TJK:KH6s
,/
t\~rlt~~ a decision that, er,stinks
". Y'. He'nnepin board
~+ to;decide who
:: pays ho\^/ much
.fq(.'garbage
. ,:..-;:"':t:~'r-;'r .
By Steve Brandt.
. Staff Writer
,', I.' ..~'
"'.~":;-r:>
.. It's an issue that seems to have the
Hennepin County Board tied up in knots,
blitultimatelycommissioners will decide
who pays for garbage and how much.
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They could decide by doing nothing. In tbat
case, the residents and businesses will
continue to pay through their garbage bills a
hidden tax of$95 per ton on what they
throwaway. This four-year-old charge,
called a tipping fee, is expected to provide ."
the county $57 million this year to operate
-:; solid waste programs. The board could also
respond to legal precedents that threaten its
rights over garbage in the county. In that.:
case, it would be forced to cut the tipping
, fee and perhaps cut garbage programs,. .
impose a different fee, or both. One .
commissioner is pushing for homeowners
to pick up a greater share of the bill..
How to pay for garbage programs is an issue
for other metro counties, too. The debate is .
prompted by several lawsuits, including a
key one arising in southern Minnesota, that
struck down state and local laws designed to
keep garbage in local jurisdictions. That
could play havoc in Hennepin, Ramsey, .
Washington, Anoka and other Minnesota
counties that have such ordinances. They
allow counties to direct garbage to the
incinerators, compost operations and other
plants they built when the state directed
that landfills be avoided.
Withoutlhis legal power, haulers could
decide that the risk of dumping their loads
)n potentially leaky landfills at tipping fees
". i: closer to $40 per ton makes business sense.
: .,:~ That would leave the counties without
. money to pay developers and investors as
. promised for such facilities as the
downtown Minneapolis incinerator and
plants operated by Northern States Power
, Co. in Elk River and Newport. None of the
..::.;.."metro counties reports detecting such a loss..
. , of garbage, but some commissioners worry
that it may be too late to act once such a
movement is detected.
.
"Vou don't want to be in the position ofthe
commissioners fiddling while [the
incinerator) has nothing to burn,"
Hennepin County Commissioner Randy
Johnson told his board recentlv. "The
longer you wait, the fewer options we will
have and the worse they will be." He's at
one end of the debate, urging the county to
pass ordinances that will put .the county on '
safer footing. The county staff has proposed
cutting the tipping fee to $60 per ton.
"The trick is to lower the tipping fee just
. low enough to where the haulers don't blow
town," one commissioner said.
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The tipping fee, a charge of $95 a ton that garbage haulers
must pay Hennepin County, is expected to provide $57
million this year to operate solid waste programs. The cost is
. passed on to homeowners in their garbage collection bills.
But the proposed cut takes $36 million from
the county's solid waste fund, which has
only about $5 million from other income. It
will need about $415 million this year to
pay for hauling garbage to the Elk River and
Minneapolis plants and processing it there.
Moreover, the county has budgeted another
$13 million for other waste programs that
subsidize recycling, composting and
household hazardous waste programs, and
$4.4 million for overhead..
This leaves the county a choice between
cutting these programs or imposing new
charges to raise the money. It's been looking
"Y ou don't want to be . . .
fiddling while [the incinerator]
has nothing to burn."
Hennepin Commissioner Randy
Johnson, who fears lower tipping'
fees elsewhere could cause garbage
and fees to leave the county.
\
at both. For example, there's been open
discussion of axing the $6.7 million the
county gives cities to pay most of the cost of
their recycling programs.
The staff also has proposed levying new fees
on homes and businesses. Under one
recommendation, each homeowner would.
pay a flat $18 fee with property taxes, and
businesses would pay an average of$335.
Johnson says the residential fee should be
higher because businesses now subsidize
some waste programs used only by
residents. There seems to be agreement that
businesses should pay according to how
much garbage they generate.
Commissioners seem to be backing away
from putting a politically risky new fee on
homesteads. But despite repeated meetings
in the last two months, the crop of
commissioners elected last fall has been
unable to resolve the most complex issue
they have encountered. The latest staff plan
would impose a surcharge on hauler bills,
much like the sales tax they already collect.
This is attractive to commissioners because
it remains hidden and because they believe
it rewards those who cut the volume of
trash they throw out.
Some say they're not sure the county should
act before there's evidence that garbage is
leaving. This attitude is fed by reluctance to
begin dismantling a garbage-handling
system that has been praised for being
among the most comprehensive in the
nation. The county sent only 2 percent of
garbage directly to landfills last year.
But Hennepin is most vulnerable to losing
haulers because its tipping fee of$95 per
ton is the highest in the metro area. Anoka
County charges $77 per ton. Washington
and Ramsey counties charge $66.79 per ton
for the Newport plant. Washington also
charges $27 per improved property on
property tax bills for other waste programs,
and Ramsey has a charge of $17.53 per
household and varying levels for businesses. ,,,
"There was not a large outcry," said Zack
Hansen, a Ramsey County official whoi~:":
worked in Washington County when its fee "
was imposed. "People realized it was going,;.
to cost a little more to pay for the ~';
environment." . ,~~:..
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Meanwhile, haulers generally say they'll
keep delivering their loads locally as long as .
their competitors do. Browning Ferris
Industries, a national company that delivers
27 percent of Hennepin's garbage, thinks
the county needs to lower its fee to $40 to
$50 per ton to keep the firm's business. Its
biggest competitor, Waste Management,
will keep delivering unless "there was a
mass movement of waste and we started
losing customers," spokeswoman Deb
Osgood said.
Deliberations are complicated by the move
of the second-biggest hauler in the county,
Minneapolis, to seek proposals for out-of-
state landfill disposal as a means of
relieving city budget problems.
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