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HomeMy WebLinkAboutContract 28336-A4 CITY SECRETARY CONTRACTIO. Z33& 44 STATE OF TEXAS § § KNOW ALL PERSONS BY THESE PRESENTS: COUNTIES OF TARRANT, DENTON § PARKER AND WISE § FOURTH AMENDMENT TO THE AGREEMENT TO LEASE AND OPERATE SOUTHEAST LANDFILL BY AND BETWEEN THE CITY OF FORT WORTH,TEXAS, AS LESSOR AND ALLIED WASTE SYSTEMS,INC. d/b/a FORT WORTH SOUTHEAST LANDFILL,AS LESSEE This "FOURTH AMENDMENT TO THE AGREEMENT TO LEASE AND OPERATE SOUTHEAST LANDFILL BY AND BETWEEN THE CITY OF FORT WORTH, TEXAS, AS LESSOR AND ALLIED WASTE SYSTEMS, INC. d/b/a FORT WORTH SOUTHEAST LANDFILL, AS LESSEE" (this "Amendment") is entered into as of the aZ! day of AVvil _, 2019, by and between THE CITY OF FORT WORTH, TEXAS, a home rule municipal corporation in Tarrant County, Texas, acting herein by and through its Assistant City Manager, Valerie Washington ("City"), and ALLIED WASTE SYSTEMS, INC., d/b/a REPUBLIC SERVICES, a Delaware corporation duly authorized to do business in the State of Texas, acting by and through its duly authorized representative ("Lessee"). WITNESSETH: WHEREAS, the City and Lessee entered into a certain "AGREEMENT TO LEASE AND OPERATE SOUTHEAST LANDFILL" known as City Secretary Contract No. 28336, (the "Original Agreement"), dated January 28, 2003, for the lease of the City's Southeast Landfill, pursuant to the terms of that certain RFP 02-0087 (the "RFP"), issued by the City; and WHEREAS, the City and Lessee entered into a First Amendment to the Original Agreement known as City Secretary Contract No. 32407 (the "First Amendment"), on or about September 25, 2006; and WHEREAS, the City and Lessee entered into a Second Amendment to the Original Agreement known as City Secretary Contract No. 28336-A2, on or about December 22, 2009; and WHEREAS, the City and Lessee entered into a Third Amendment to the Original Agreement known as City Secretary Contract No. 28336-A3, on or about September 26, 2013 to add Article VIII.2 to allow for the delivery, mulching and composting of Yard Waste at the Southeast Landfill; and WHEREAS, the term of the new service in Article VIII.2 expires on December 31, 2018 but may be extended under the same terms and conditions for an additional five (5) years; and WHEREAS, the Original Agreement as amended by the First Amendment, the Second Amendment, and the Third Amendment, is herein called the "Existing Agreement," to which reference is here made for all purposes and as fully as if set forth in full herein; and �EC�`3 219 OFFICIAL RECORD peg?OA-wQo\\F010 23 9AMENDMENT SELF LEASE SECRETARY �1 c SEGP�Pv FT. WOWKN;TX WHEREAS, the City and Lessee wish to extend the term JArticle VIII.2, and also wish to amend other terms and conditions of Article VIII.2. NOW, THEREFORE, for and in consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and confessed, the City and Lessee agree as follows: A. Amendments to Original Agreement: The Existing Agreement, as amended by the Third Amendment to provide for ARTICLE VIII.2, "Yard Waste Delivery and Payment Obligations of the City" shall be further amended as stated in this Fourth Amendment as follows: ARTICLE VIII.2 Yard Waste Delivery and Payment Obligations of the City Section 8.02.1 City Yard Waste - Delivery Obligation. The City may deliver Yard Waste collected by the City's Licensed Haulers to the Southeast Landfill for processing and mulching by Lessee or its contractor. The City shall use reasonable efforts to cause to be delivered to the Southeast Landfill all Yard Waste collected by the City's Licensed Haulers but nothing in this Agreement shall be construed as being a guarantee by the City of any minimum amount of Yard Waste that will be delivered to the Southeast Landfill. The Yard Waste must not contain the following: • Plastic Bags containing yard trimmings, grass or leaves; • Household Garbage, trash or non-organic del,ris; • Root balls or stumps; or • Tree limbs greater than 6 inches and/or & feet in length, except during monthly bulk collection. • Section 8.02.2 Recycling_Programs. Both the Lessee and the City understand that the City may establish, on its own initiative or in compliance with Applicable Law, recycling programs, other Solid Waste reduction programs and composting programs. Nothing contained in this Agreement shall be construed to prevent the City from establishing such programs, or diverting all or a portion of the waste stream collected by the City, its employees, agents or contractors, to Recyclables processors, Yard Waste processors, Type IV Waste, Bulky Waste, and C&D processors, purchasers or recycled materials or businesses that offer other alternatives to the burial of Solid Waste. Section 8.02.3 City_Disposal Payments. The City shall pay to the Lessee an amount equal to $13.85 for each Ton(which includes all governmentally imposed charges in existence as of the Contract Date for the processing and/or mulching of Yard Waste) of the Yard Waste delivered to the Southeast Landfill. Section 8.02.4 Invoices for City Disposal Payments:_Payments by City. The Lessee shall submit a monthly report as set forth in Section 6.16 and invoice to the City within fifteen days following the end of each month during which amounts are due fr;>►n the City pursuant to Section FOURTH AMENDMENT SELF LEASE Cr1021319 Page 2 8.3. The report and invoice shall (i) identify each vehicle by truck number that delivered the Yard Waste to the Southeast Landfill; (ii) identify the weight of City Waste delivered; (iii) identify the date of delivery; (iv) identify the ticket number for each load received; and (v) identify monthly totals delivered by each vehicle. All undisputed amounts set forth in an invoice that are payable by the City shall be due and payable not later than thirty (30) days following receipt of the invoice by the City. The City shall have the right to set off against any payments due from the City to the Lessee pursuant to this Section any amounts that are payable to the City from the Lessee as Rent that remain unpaid as of the date such payment was due. Section 8.02.5. Ownership of the Yard Waste. Upon receipt of the Yard Waste at the Southeast Landfill, the Lessee shall become the owner of the Yard Waste, except as set forth below and for that amount described in Section 8.02.6. Except as set forth below, Lessee shall release and hold harmless, the City for any and all third party claims related to the Yard Waste delivered to the Southeast Landfill. Notwithstanding anything to the contrary set forth herein, in no event shall Lessee be obligated to accept, or become the owner of, any Yard Waste containing Unacceptable Waste. Lessee shall reject any deliveries of Yard Waste from the City or its Licensed Haulers containing Unacceptable Waste, and all such Yard Waste and any containing Unacceptable Waste included therewith shall be promptly removed by the City or its Licensed Hauler, whichever shall have made such delivery. Section 8.02.6. Mulch Product for the City. 'The City shall be entitled to thirty (30) cubic yards of mulch product that is produced at the Southeast Landfill for each one thousand (1,000) tons of Yard Waste that the City's Licensed Haulers deliver to the Southeast Landfill. The City may take the mulch product as needed. The amount total of mulch product taken by the City shall be determined at the end of each calendar year. Lessee shall charge the City a discounted rate of $11.00 per cubic yards for any amount of mulch product taken by City over thirty (30) cubic yards. If the parties mutually agree in writing, then the fee may be adjusted but shall never increase by more than two percent(2%) in any given contract year. Section 8.02.7. Contaminated Yard Waste. All Yard Waste delivered to the Southeast Landfill must be free from plastic bags, household garbage, trash or non-organic-debris, root balls, stumps and tree limbs greater than six (6) inches in diameter and/or eight (8) feet in length. Craft paper Yard Waste bags are acceptable. Any load of Yard Waste that contains an unreasonable amount of prohibited items listed above, shall be disposed of as Solid Waste. Such contaminated Yard Waste loads which require re-loading into a container for disposal, shall be assessed a seventy-five dollar ($75.00) handling fee and will be charged the City's solid waste disposal fee for each contaminated load that will require re-loading into a container and disposed as municipal solid waste. Prior to reloading the contaminated Yard Waste and disposing of it at the Southeast Landfill, the Lessee shall notify the City and the City shall have the right to inspect such load(s). Regardless of the City's inspection, in addition to the weight ticket, the City will be provided with or allowed to take pictures of each contaminated load(s) with the time and date. Section 8,02.8. Expiration Date for Article VIII.2. The terms and conditions of Article VIII.2 expire on December 31, 2023. The terms and conditions of Article VIII.2 may be FOURTH AMENDMENT SELF LEASE Cr1021319 Page 3 extended for an additional five (5) years upon mutual written consent by an amendment to this Agreement. Section 8.02.9. Cost Adiustment for the Yard Waste Tipping Fee. The annual Cost Adjustment for the Yard Waste tipping fee shall be based on the anniversary date pursuant to Section 4.03, 7.03, 8.03, and 11.02 of the Agreement. The anniversary date for the Yard Waste tipping fee shall be January 1st of each year that Article VIII.2 is in effect. B. Miscellaneous. Nothing contained herein shall be deemed to amend or modify the Existing Agreement except as expressly set forth herein. Any defined term used herein, but not defined herein, shall have that meaning set forth in the Existing Agreement. In the event of a conflict between the terms of this Fourth Amendment and the tennis of the Existing Agreement, the terms of the Existing Agreement shall control. FOURTH AMENDMENT SELF LEASE Cr1021319 Page 4 IN WITNESS WHEREOF, this Fourth Amendment has been executed as of the last date set out below. LESSEE: ALLIED WASTE SYSTEMS, INC., d/b/a REPUBLIC SERVICES By: �►. c� /�� Its: Area President Date Signed: 03/01/19 CITY: CITY OF FORT WORTH, TEXAS Valerie Washington Assistant City ana er Date Signed: � 1 0 Fops:`;, ATTEST: ` M&C: -9905 4/I4119 -+ 1295: a011-456151 MaryK r City Secretary PROVED AS TO FORM AND Y: Christa . Lopez-Reynolds Senior Assistant City Attorney CONTRACT COMPLIANCE MANAGER By signing, I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all per performance and reporting requirements. Christian Harper Code Contract Services Administrator OFFICIAL RECORD SECRETARY FOURTH AMENDMENT SELF LEASE Cr1021319 FT. WQ4D TX mat_ Keview Yage 1 of 2 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA Fo RTMbRTH COUNCIL ACTION: Approved on 4/16/2019 REFERENCE ** 23AMEND-4 TO CONTRACT DATE: 4/16/2019 NO.: C-29095 LOG NAME: NBR 28336 WITH ALLIED WASTE SYSTEMS INC CODE: C TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: Authorize Execution of Amendment No. 4 to City Secretary Contract No. 28336 with Allied Waste Systems, Inc. d/b/a Republic Services for the Lease and Operation of the Southeast Landfill (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council: 1. Authorize the execution of Amendment No. 4 to City Secretary Contract No. 28336, with Allied Waste Systems, Inc. d/b/a Republic Services, to allow the City to deliver yard waste to the Southeast Landfill for processing into mulch and compost, which will allow the following; 2. Extend the term until December 31, 2023; and 3. Increase the Contract processing cost from $12.22 per ton to $13.85 per ton for an estimated five (5) year contractual total of $3,000,000.00 including allowance for unknown future volume increases and unforeseen storm related debris. DISCUSSION: On November 5, 2002, the City Council authorized City Secretary Contract No. 28336 with Allied Waste Systems, Inc. d/b/a Trinity Waste Services (Allied), to lease and operate the City's Southeast Landfill. The Contract and ensuing amendments allowed Allied to lease and operate the landfill for the life of the site and obligated Allied to accept for disposal solid waste collected by the City's residential curbside collections contractor with certain exceptions. These exceptions were recyclable materials, yard waste and bulk waste that were to be delivered respectively to a material recovery facility, a yard waste processing operation, and bulk disposal at the IESI TX Corporation (IESI) landfill under separate contracts. Allied remains approved by the Texas Commission of Environmental Quality to continue large scale mulching and composting operations at the Southeast Landfill. The rate for yard waste processing offered by Allied is $13.85 per ton, which is significantly lower than the current rate of$16.50 per ton for disposing of this material at the IESI landfill. This will result in an estimated savings to the City of $92,750.00 annually, and approximately$463,750.00 over the five-year contract term, while saving valuable airspace within the City's Southeast Landfill. The estimated first year cost is $484,750.00 based on historical volume to deliver to the Southeast Landfill for processing instead of an estimated cost of$577,500.00 for disposal at the IESI landfill. Allied is subcontracting with Living Earth Technologies Company, Inc., (LETCO), a professional compost and mulch company, to operate the mulch and compost processing. LETCO will commercially market the mulch and compost products locally. The City will receive a limited portion of LETCO's finished mulch products to be distributed at City Drop-Off Stations for use by City residents on a first-come-first-serve basis. The term of this contract is five years, and will end on December 31, 2023. This end date aligns the end of this contract term with the end of the Landfill contract term. This amendment also reflects Allied Waste's new dba, Republic Services. http://apps.fortworthtexas.gov/council_packet/mc review.asp?ID=26881&councildate=4/1... 4/17/2019 M&U Keview Yage 2 of 2 M/WBE -There is no requirement for M/WBE participation under the terms of the landfill contract. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that funds are available, as appropriated, in the Solid Waste Fund. TO Fund Department Account Project Program Activity Budget Reference# Amount ID ID Year Chartfield 2 FROM Fund Department Account Project Program Activity Budget Reference# Amount ID I I ID I Year (Chartfield 2) Submitted for City Manager's Office by: Valerie Washington (6199) Originating Department Head: Brandon Bennett (6345) Additional Information Contact: Robert Smouse (5153) Ben Carson (6336) ATTACHMENTS RS1295.pdf http://apps.fortworthtexas.gov/council_packet/mc review.asp?ID=26881&councildate=4/1... 4/17/2019