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HomeMy WebLinkAboutContract 55950 CSC No. 55950 NON-EXCLUSIVE PRIVILEGE AGREEMENT This Non-Exclusive Privilege Agreement (hereinafter referred to as "Agreement") is entered into by and between the City of Fort Worth, Texas ("City") a home-rule municipality located within Tarrant, Denton, Parker and counties, acting through Valerie Washington, its duly authorized Assistant City Manager, and ELG Waste Removal ("Grantee"), acting through Celeste Herrera, its duly authorized representative. WHEREAS, the City Council has enacted regulations affecting the business of collecting and transporting municipal solid waste produced within the City in Sections 12.5-850 through 12.5-863 of the City Code; and WHEREAS, Section 12.5-850 requires any person who wishes to engage in the collecting and transporting municipal solid waste produced within the City to enter into non-exclusive privilege agreement; and WHEREAS, Section 12.5-856 requires payment by Grantee of ten percent (10%) of Grantee's total gross hauling revenue from the collection and transporting of municipal solid waste produced in the City; and WHEREAS, Grantee has made application to engage in the business of collecting and transporting municipal solid waste produced within the City. NOW THEREFORE, for and in consideration of the mutual promises and agreements herein set forth, and other good and valuable consideration, the receipt and sufficiency of which is hereby confessed and acknowledged, the City and Grantee agree as follows: 1. PRIVILEGE: A non-exclusive privilege is hereby granted to use the public streets, alleys and thoroughfares within the corporate limits of the City of Fort Worth for the purpose of engaging in the business of collection of solid waste. 2. TERM: The term of this Agreement shall be for a period of five (5) years. This Agreement shall automatically renew at the end of every five (5) year term of the Agreement unless notice of termination is provided by one party to the other at least thirty (30) days prior to the date of renewal. 3. SCOPE AND NATURE OF OPERATION: It is expressly understood and agreed that the Grantee may collect and deliver for disposal all solid waste, including recyclable materials, accumulated on premises within the corporate limits of the City, where the individuals or companies contract with the Grantee for those services excluding residential service other than apartment complexes and motels. Grantee will, at its own expense,furnish personnel and equipment to collect solid waste and will establish and maintain in an efficient and businesslike manner the contracted services. Grantee will furthermore comply with all pertinent rules, regulations, laws, and ordinances as directed by the City of Fort Worth and all other governmental entities having jurisdiction thereupon. OFFICIAL RECORD CITY SECRETARY Revised by CRL 03052121 FT. WORTH, TX 4. REGULATION OF VEHICLES: All vehicles used by the Grantee for the collection and transportation of solid waste shall be registered with the City, shall have a permit attached thereto, and shall be covered at all times while loaded and in transit to prevent the spillage of solid waste onto the public streets or properties adjacent thereto. Any spillage will be promptly recovered by the Grantee. All vehicles owned by the Grantee shall be clearly marked with the Grantee's name in letters not less than four (4) inches in height. All such vehicles shall be cleaned and maintained by Grantee so as to be in good repair and of good appearance and, when idle, free of solid waste residue as may cause odor or provide a breeding place for vectors. 5. REGULATION OF LEASED CONTAINERS: It is specifically understood and agreed that the City of Fort Worth shall permit the Grantee to rent or lease containers for collection purposes to the owner or occupant of any premises within the corporate limits of the City, excluding residential customers other than apartment complexes and motels, for collection purposes subject to the following requirements: (1) ALL such containers shall be constructed according to good industry practice in the trade; (2) ALL such containers shall be equipped with suitable covers to prevent blowing or scattering of solid waste while being transported for disposal of their contents; (3) ALL such containers shall be cleaned and maintained by grantee so as to be in good repair, of a good appearance and free of such solid waste residues as may cause odor and provide a breeding place for vectors; (4) ALL such containers used for the disposal of food waste or other putrescible material shall be serviced no less than two times per week; and (5) ALL such containers shall be clearly marked with the grantee's name and telephone number in letters not less than four (4) inches in height. The City and the Grantee expressly agree that regardless of any responsibility which may be placed on the citizens of Fort Worth or other third parties for the above five requirements, the Grantee under this agreement agrees to be responsible for each of the five requirements and to fulfill each of them without asserting they are the responsibility of some third party. 6. DAMAGE TO PUBLIC PROPERTY: Grantee expressly agrees to assume liability for all costs of repair of public streets, bridges, rights-of-way, and other facilities that are damaged as a result of negligence by Grantee, its officers, agents, or its employees during it's operations pursuant to this agreement. 7. DISPOSAL OF SOLID WASTE: It is specifically understood and agreed that Grantee will comply with all rules, regulations, laws and ordinances pertaining to the disposal of solid waste as directed by responsible governmental agencies having jurisdiction Page 2 of 7 Revised by CRL 03052121 thereupon. Disposal of all solid waste collected by the Grantee from premises within the corporate limits of the City of Fort Worth must be made at a lawfully permitted sanitary landfill. Grantee's violation of this provision shall be cause for revocation of this Agreement. 8. SOLID WASTE COLLECTION: The collection of solid waste between the hours of 11:00 p.m. and 6:00 a.m. shall be prohibited. However, Grantee may seek permission from the Assistant Director - Solid Waste Services/Code Compliance Department ("Director") in writing by stating the particular hours Grantee wishes to collect waste and the reasons necessary for this exception. Upon receiving a written request, which must be mailed by the US Postal Service, returned receipt requested, the Director shall have ten (10)days to make a determination and shall notify the Grantee in writing of the decision within fifteen (15) days of the receiving notice. The Director reserves the right to review that decision if a complaint is received. The Director shall notify the Grantee, and the Grantee may present evidence to the Director or designated representative regarding such complaint. The Director or his designated representative shall determine (1)whether such collection between the hours of 11:00 p.m. and 6:00 a.m. did, in fact, occur at that location and was the cause of such complaint, and if so, (2) whether such collection at those hours and at that location should be prohibited and the Grantee's exception revoked. 9. FEE: For and in consideration of the covenants and agreements herein contained, Grantee hereby agrees to pay to the City of Fort Worth a fee of ten percent (10%) of the gross revenues generated from Grantee's operations within the City. (A) Calculation: The calculation of gross revenues generated from operations within the City shall include all revenue derived, directly or indirectly by Grantee from or in connection with its operations within the service area covered by this agreement, excluding revenues generated from contracts with the City for residential garbage and recycling services, as determined in accordance with generally accepted accounting principles. Gross revenues shall include, but are not limited to, revenues received from the collection and disposal of all solid waste. (B) Fee Payment: The fee shall be paid on a quarterly basis no later than thirty (30) days after the end of each calendar quarter. The payment shall be made to the City of Fort Worth, Code Compliance Department, Solid Waste Services Division, 4100 Columbus Trail, Fort Worth, TX 76133. (C) Delinquent Payments: Fee payments received after the due date shall be subject to interest at the rate of twelve (12%) percent per annum until the fees are paid in full. 10. REPORTS: Each quarterly payment shall be accompanied by a financial accounting report using the form which is attached as Exhibit A, showing the basis for the computation of the quarterly payment and Page 3 of 7 Revised by CRL 03052121 a) total estimated volumes of solid waste collected by the solid waste hauler with separate figures for multi-family living units, and from commercial accounts; b) total estimated volumes of waste material recycled by the solid waste hauler, with separate figures for multi-family living units and from commercial accounts; and c) a description and the total estimated volumes of each type of waste material recycled by the solid waste hauler. 11. AUDITING BOOKS AND RECORDS: The City shall have the authority to arrange for and conduct, at the City's expense, an audit of the books and records of the Grantee at the Grantee's location. The records kept on site by Grantee shall include at a minimum the list of accounts, the number and size of containers, the frequency of collection and the revenue generated. The Grantee shall be given at least five (5) days notice of the audit, a description of and the purpose for the audit, and a description, to the best of the City's ability of the books, records, and documents the City wishes to review. Grantee shall pay the costs of audit if the results of the audit establish that Grantee has underpaid the fees required hereunder in any given year by 5% or more. 12. FORFEITURE: The failure or refusal of the Grantee to comply with any of the provisions of this Agreement or any of the provisions of the Code of the City of Fort Worth, or any other applicable rules, regulations, laws and ordinances shall be deemed a breach of this Agreement. The Director shall notify the Grantee of such breach and the Grantee shall have thirty (30) days to cure the breach. If the breach is not cured within thirty (30) days and no "good faith" effort is being made to cure the breach, the Director may recommend to the City Council that at a regularly scheduled City Council meeting it should declare the privilege forfeited and may exclude the Grantee from further use of the streets of the City under the privilege. The Grantee shall thereupon immediately surrender all rights in and under the privilege and the privilege shall be null and void. 13. INDEMNITY INSURANCE: Grantee assumes all risk of loss or injury to property or persons arising from any of its operations under this Agreement, and agrees to indemnify and hold harmless the City of Fort Worth from all claims, demands, suits, judgments, costs or expenses, including attorney's fees, arising from any such loss or injury. It is expressly understood that the provisions contained herein shall not in any way limit the liability of the Grantee. Grantee agrees to maintain insurance as follows: A. Minimum Limits: 1. Commercial General Liability: 500, 00.00 per occurrence $2,000,000.00 aggregate 2. Automobile Liability Insurance: $1,000,000.00 each accident. Page 4 of 7 Revised by CRL 03052121 Coverage is to include "any auto" used by Grantee. Coverage shall include loading and unloading. B. Other Insurance Terms: 1. The City of Fort Worth shall be endorsed as an additional insured on each of Grantee's insurance policies. 2. Grantee's insurance shall be endorsed with a waiver of sub-rogation in favor of the City. 3. Grantee's insurance policies shall be endorsed to provide a minimum 30 days notice of cancellation, non-renewal, or material change in coverage, such notice to be sent to the City at the address set forth below. 4. City of Fort Worth shall receive Certificates of Liability Insurance prior to Grantee beginning work. 5. Insurers shall be acceptable to the City of Fort Worth and Insurers shall be duly authorized by the Texas Department of Insurance. 6. Grantee's insurance policies shall not have a greater than $50,000.00 deductible per occurrence unless otherwise approved by City. 7. Insurance agencies used by Grantee shall be duly licensed in the State of Texas. 14.RETENTION OF RIGHTS BY CITY: The City, in granting this privilege, fully retains and reserves all the rights, privileges, and immunities that it now has under the law to fully patrol and police the streets, alleys and public ways within the City, and the granting of this privilege shall in no way interfere with the improvements or maintenance, on any streets, alleys or public ways, and the rights of the Grantee herein to use the streets shall at all times be subservient to the right of the governing body of the City of Fort Worth to fully exercise its rights of control over streets, alleys and public ways. 15.AMENDMENTS: The City expressly reserves the right, after due notice to Grantee, to modify, amend, alter, change, or eliminate any of the provisions of this privilege and to impose such additional conditions upon the Grantee as may be just and reasonable as determined by the City Council, the conditions to be those deemed necessary for the purpose of insuring adequate service to the public. Page 5 of 7 Revised by CRL 03052121 16.ASSIGNMENT OF AGREEMENT: This Agreement and any and all rights and obligations hereunder may be assigned by the Grantee only with the prior written consent of the City Council. All provisions of this Agreement shall apply to the Grantee, its successors or assigns. 17.SEVERABILITY: If any section, subsection, sentence, clause, phrase, or other portion of this Agreement is, for any reason, declared invalid, in whole or in part, by any court, agency, commission, legislative body, or other authority of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent portion. Such declaration shall not affect the validity of the remaining portions herein, which other portions shall continue in full force and effect. 18.MAILING OF NOTICES: Every notice to be served upon the City or the Grantee shall be hand delivered or sent by certified mail, return receipt requested. Every such communication to the City shall be delivered or sent to the Assistant Director of Solid Waste Services at the following address: 4100 Columbus Trail, Fort Worth, Texas 76133. Every such notice to the Grantee shall be delivered or sent to PO Box 123941, Fort Worth, Texas 76121. The mailing of such notice shall be equivalent to direct personal notice and shall be deemed to have been given when received. Either party may, upon written notice to the other party, change the address specified in this section. 19.APPLICABLE LAW AND VENUE This Agreement shall be deemed to be executed in the City of Fort Worth, Texas, regardless of the domicile of the Company, and shall be governed by and construed in accordance with the laws of the State of Texas. Venue for any legal action or proceeding arising under or relating to this Agreement shall be in Tarrant County, Texas. 20. EFFECTIVE DATE: This Agreement shall be effective on the date signed by the City Secretary as shown below. Page 6 of 7 Revised by CRL 03052121 IN WITNESS HEREOF, the City and Grantee have executed this agreement by their authorized representatives: CITY OF FORT WORTH GRANTEE like-LILAiL4trrt l 4-&— Valerie Washington(Jul 2,20 12:39 CDT) Celeste Herrera(Jun 30,2U2111:54 CDT) Valerie Washington Vice president Assistant City Manager Title: Date: Jun 30,2021 RECOMMENDED BY: Robert Smouse(Jul 2,2021 09:26 CDT) Robert Smouse Assistant Code Compliance Director, Solid Waste APPROVED AS TO FORM AND LEGALITY: WITNESS: 6G kl'to�Lo.�e��e��ro��fl Christa R.Lopez-Reynold (Jul 2,2021 12.rS CDT) Name: EpifaWio Juarez(Jul 1,202 1218 CDT) Christa R. Lopez-Reynolds Sr. Assistant City Attorney President Title. a � oA FART ��i F °°°°°°°°°!o ATTEST: p� °0 0.40 ° Ty =�vo °o *%° O°°° ° Mary J. Kayser 4 d � d�EXpsa<� M&C#: 21-0434 City Secretary Form 1295: 2021-735201 Date: J U l 6, 2021 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. ChLS-Lan Kavper Christian Harper(Jul 1,202112:23 CDT) Christian Harper Code Contract Services Administrator OFFICIAL RECORD CITY SECRETARY Revised by CRL 03052121 FT. WORTH, TX M&C Review Page 1 of 2 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FORT 111 REFERENCE **M&C 21- 23HAULERS NON- DATE: 6/22/2021 NO.: 0434 LOG NAME: EXCLUSIVE GRANTS OF PRIVILEGE CODE: G TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: (ALL)Authorize the Execution of an Agreement Granting Non-Exclusive Privilege to the Following Three Companies: ELG Waste Removal, K&S Disposal and Rhino Removal to Collect and Transport Municipal Solid Waste Pursuant to Chapter 12.5, Article VIII, Solid Waste and Recycling, Division 5, Private Collectors of the City Code RECOMMENDATION: It is recommended that the City Council authorize the execution of an agreement granting a non- exclusive privilege to the following three companies, ELG Waste Removal, K&S Disposal, Rhino Removal, pursuant to Chapter 12.5, Article VIII, Solid Waste and Recycling, Division 5, Private Collectors of the City Code, to use public streets, alleys and thoroughfares within the City for the business of collecting municipal solid waste. DISCUSSION: The following three companies, ELG Waste Removal, K&S Disposal, Rhino Removal, have submitted an application for a non-exclusive privilege agreement to collect and transport municipal solid waste generated by businesses, industries and apartment complexes in Fort Worth. The term of the agreement is for a period of five years and will automatically renew each five year period unless notice of termination is provided by one party to the other at least 30 days prior to the date of the renewal. The director has determined the applicants meet the requirements of the law and the City Code and recommends that the City Council authorize the privilege agreement which must be passed by a two- thirds vote. In accordance with the terms of the agreement, the following three companies, ELG Waste Removal, K&S Disposal, Rhino Removal, shall pay to the City a fee of ten percent of gross revenues derived from its commercial collection operations within the City. Such fees shall be paid on a quarterly basis due on April 30, July 31, October 31, and January 31 for the preceding quarter. These three companies also agree to comply with all other terms such as the condition of the solid waste container used, assumption of liability for damage caused, collection times and the submission of annual reports. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendation and execution of the agreement, funds will be deposited into the Solid Waste Fund. The Code Compliance Department(and Financial Management Services) is responsible for the collection and deposit of funds due to the City. TO Fund Department Account Project Program Activity Budget Reference# Amount ID ID Year (Chartfield 2) file:///C:/Users/HollarS/AppData/Local/Temp/ZZ3YBGE3.htm 6/24/2021 M&C Review Page 2 of 2 FROM Fund Department Account Project Program Activity Budget Reference# Amount ID ID I Year (Chartfield 2) Submitted for City Manager's Office by: Valerie Washington (6199) Originating Department Head: Brandon Bennett (6322) Additional Information Contact: David B. Carson (6336) ATTACHMENTS ELG Waste Removal Application.pdf ELG Waste Removal COI April 2021.pdf ELG Waste Removal Truck List April 2021.pdf K&S Disposal COI May 2021.pdf K&S Disposal GOP Armliation May 2021.pdf K&S Disposal Truck List May 2021.pdf Rhino Removal COI May 2021.pdf Rhino Removal GOP Application May 2021.pdf Rhino Removal Truck List May 2021.pdf file:///C:/Users/HollarS/AppData/Local/Temp/ZZ3YBGE3.htm 6/24/2021