HomeMy WebLinkAboutContract 28358-A1E1 CITY SECRETARY
CONTRACT NO.
STATE OF TEXAS §
COUNTIES OF TARRANT, §
DENTON, PARKER AND WISE §
FIRST AMENDMENT TO THE EXTENSION AND RESTATEMENT OF THE
CONTRACT FOR COLLECTION OF RESIDENTIAL GARBAGE, REFUSE AND
BULKY WASTE, RECYCLABLES, CERTAIN COMMERCIAL SOLID WASTE, YARD
WASTE, C&D AND LARGE BRUSH
THIS FIRST AMENDMENT ("Amendment") TO THE EXTENSION AND
RESTATEMENT OF THE CONTRACT FOR COLLECTION OF RESIDENTIAL GARBAGE,
REFUSE AND BULKY WASTE, RECYCLABLES, CERTAIN COMMERCIAL SOLID
WASTE, YARD WASTE, C&D AND LARGE BRUSH known as City Secretary Contract No.
28358-E1_( "Contract") is made and entered into by and between the City of Fort Worth, a
home-rule municipal corporation in Tarrant, Denton, Parker and Wise Counties, Texas, acting
herein by and through Charles Daniels, its duly authorized Assistant City Manager, hereinafter
called "City," and Waste Management of Texas, Inc., a Texas corporation doing business in
Texas, acting herein by and through Donald J. Smith, its duly authorized President, hereinafter
called "Contractor."
WITNESSETH:
WHEREAS, the City and Contractor have heretofore entered into a certain Extension
and Restatement of the Contract for Collection of Residential Garbage, Refuse and Bulky Waste,
Recyclables, Certain Commercial Solid Waste, Yard Waste, C&D and Large Brush, on or
around April 24, 2013, for Contractor's exclusive collection of residential Garbage, Refuse and
Small Bulky Waste, Recyclables, and certain Commercial Solid Waste, Yard Waste, C&D and
Large Brush and Large Bulky Waste within the City;
WHEREAS, the City and Contractor desire to amend the Residential Recycle Rewards
Program ("Program")portion of the Contract as set forth in this Amendment;
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 parties hereto agree as follows:
1. Recycling Rewards Program. Paragraph 4 in Section 2.13 of the Contract, beginning on
page 13, is hereby superseded in its entirety and replaced with the following language effective
nn
r April 1, 2014:
rn 4. Residential Recycle Rewards Program.
0
Contractor is currently providing a Recycle Rewards Program ("Program") to those
ca residential Service Units who participate in the Program as agreed by and between the
City and Contractor. Each Service Unit participating in the Program will earn points
0
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
based on the recycling of its designated recycle collection route as designated by the
terms of the Contract. Participants will be able to redeem points for discounts and/or
other incentives with national and local merchants that are provided under the Program.
The City may cancel its participation in the Program, with or without cause, upon thirty
(30) Days written notice to the Contractor. Section 16, "Arbitration" and Section 21,
"Termination" of the Contract shall not apply to the City if the City chooses to exercise
its right to terminate the Program.
The cost of the Program to the City shall continue to be thirty-seven cents ($0.37) per
residential Service Unit (regardless of whether the Service Unit is participating) per
month until March 31, 2014. Beginning April 1, 2014 and every year thereafter, the cost
of the Program to the City shall increase by one-cent ($0.01) per residential Service Unit
(regardless of whether the Service Unit is participating). The Cost Adjustment provided
for in 6A and Attachment B of the Contract shall not apply to this yearly increase to the
Service Unit.
2. The following new paragraphs f., g., and h. shall be added to Section 2.13 of the Contract:
f. Contractor shall invest One Hundred Fifty Hundred Thousand ($150,000.00) in the
Program for marketing purposes from April 1, 2014 through March 31, 2015. Beginning April
1, 2015 and continuing until March 31, 2016, Contractor agrees to invest One Hundred Fifty
Hundred Thousand ($150,000.00) the Program. Contractor shall collaborate with the City to
determine the most appropriate methods or uses of the funds so as to improve recycling per
Service Unit and Program participation, which includes but is not limited to, marketing efforts by
RecycleRewards, Inc., a subcontractor to Contractor under the Contract. This investment
funding is exclusive of and shall not satisfy the funding required by the Contractor for the City's
public education program education funding as specified in Section 2.A.7 of the Contract.
g. As of April 1, 2014, approximately 15% of the City's residential Service Units have
subscribed to the Program. The City and Contractor have agreed to work together to achieve the
following performance-based incentives:
i. If 20% or more of the City's residential Service Units have subscribed to
the Program by March 31, 2015, the Contractor will be entitled to increase
the per residential Service Unit rate by five cents ($0.05) effective April 1,
2015.
ii. If 25% or more of the City's residential Service Units have subscribed to
the Program by March 31, 2016, the Contractor will be entitled to increase
the then current per residential Service Unit rate by five cents ($0.05)
effective April 1, 2016.
iii. If 30% or more the City's residential Service Units have subscribed to the
Program by March 31, 2017, the Contractor will be entitled to increase the
then current per residential Service Unit rate by five cents ($0.05)
effective April 1, 2017.
h. During the period of April 1, 2013 through March 31, 2014, The City of Fort Worth
recorded 37,812 tons of residential Service Unit materials collected by Contractor were
deemed to be Recyclables following processing at the Processing Facility. Contractor
collected 47,097 tons of material from residential Service Units' Recyclables Carts
during this period and an average of 19.71% of those materials were determined, by
composition audits over the 12 month period, to constitute residue and/or non-recyclable
materials and 80.29% was determined to be Recyclables (47,097 tons of material
collected x 80.29% = 37,812 tons of processed Recyclables). This quantity of
Recyclables was calculated in accordance with the terms of the City's CONTRACT FOR
THE PROCESSING OF RECYCLABLE MATERIALS known as City Secretary
Contract No. 28496-A1. The parties agree that the average annual quantity of processed
Recyclables equates to 6.99 pounds per week per residential Service Unit based on the
following formula: 37,812 tons of processed Recyclables x 2000 pounds per ton _ 52
weeks/year - 207,777 total number of residential Service Units = 6.99 pounds per
residential Service Unit per week average ("Pounds Per Week Annual Average
Formula"). In addition to subsection 2 (g) above, the Parties agree Contractor will have
the opportunity to increase the residential Service Unit rate as follows:
i. From April I, 2014 through March 31, 2015, if the annual average pounds
per week per residential Service Unit of processed Recyclables, calculated
using the Pounds Per Week Annual Average Formula, increases by 5% or
more, the Contractor will be entitled to increase the per residential Service
Unit rate by five cents ($0.05)effective April 1, 2015.
ii. From April 1, 2015 through March 31, 2016, if the then current annual
average pounds per week per residential Service Unit of processed
Recyclables, calculated by using the Pounds Per Week Annual Average
Formula, increases by 3% or more, the Contractor will be entitled to
increase the then current per residential Service Unit rate by five cents
($0.05) effective April 1, 2016.
iii. From April 1, 2016 through March 31, 2017, if the then current annual
average pounds per week per residential Service Unit of processed
Recyclables, calculated by using the Pounds Per Week Annual Average
Formula, increases by 2% or more, the Contractor will be entitled to
increase the then current per residential Service Unit rate by five cents
($0.05) effective April 1,2017.
3. Nothing contained herein shall be deemed to amend or modify the Contract, except as
expressly set forth herein. In the event of a conflict between the terms of the Contract and this
Amendment, the terms of this Amendment shall control. Capitalized words in this Amendment
shall have the same meaning as those words have in the Contract.
IN WITNESS WHEREOF,this Amendment has been executed.
CITY OF FORT WORTH,TEXAS WASTE MANAGEMENT OF TEXAS,INC.
By:
C arles Paniels Donald J. S h
Ass ant City Manager President
Date Signed: 149. 30. /¢- Date Signed:
Approved as to Form and Legality
Contract Auth rization
Christa R. Lopez-Reyn ld e Sr.Assistant City Attorney
Date
ATTEST: WITNESS:
F
MKry kays—er
City Secretary
�oQF 0*0
%0
S ,a
*, o
e
u dD
0 00000C.0
` kAS
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved As Corrected on 8/19/2014
DATE: Tuesday, August 19, 2014 REFERENCE NO.: **C-26924
LOG NAME: 23WM FIRST AMENDMENT
SUBJECT:
Authorize Execution of the First Amendment to City Secretary Contract No. 28358-E1 with Waste
Management, Inc., for Collection of Residential Garbage, Refuse and Bulky Waste, Recyclables, Certain
Commercial Solid Waste, Yard Waste, C&D and Large Brush (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of Amendment No. 1 to the contract with
Waste Management of Texas, Inc., for reduction in recycle rewards program rates and to structure future
rate increases to be based on meeting specified performance goals.
DISCUSSION:
On January 29, 2013, the City Council authorized City Secretary Contract No. 28358-E1 with Waste
Management of Texas, Inc. (Waste Management), for the collection of residential garbage, refuse and
bulky waste, recyclables, certain commercial solid waste, yard waste, C&D and large brush. The contract
includes a Residential Recycle Rewards Program which allows for a $.929 $0.29 increase per service unit
per month effective April 1, 2014 and to have that rate subject to the Cost Adjustment formula set forth in
the contract.
Under the terms of the contract, the City and Waste Management agreed to continue the current Recycle
Rewards Program at a rate of$0.37 per residential service unit until March 31, 2014, when the rate would
increase to $0.66 per residential service unit and to have that rate increase adjusted according to the
contracted Cost Adjustment schedule. Staff initiated discussions with Waste Management on the potential
for reducing the rates and to remove the automatic increases. The result of these discussions is a
proposal from Waste Management to reduce the rates by $0.29 per residential service unit effective April
1, 2014. The current estimated annual contract amount is $1,647,360.00. After this amendment is in
place, the estimated annual contract amount will be $948,480.00 resulting in estimated cost savings of
$698,880.00 in the first year. Future rate increases will be based on the contractor meeting established
performance goals that are directly tied to increasing recycling as well as increasing the number of
households participating in the recycling rewards program. If the contractor meets or exceeds all
performance goals, the estimated expense should not exceed the estimated current annual contract
amount.
This amendment would allow for automatic increases in the unit price as follows:
i. From April 1, 2014 through March 31, 2015, if the annual average pounds per week per residential
service unit of processed recyclables, calculated using the Pounds Per Week Annual Average Formula,
increases by five percent or more, Waste Management will be entitled to increase the per residential
service unit rate by five cents effective April 1, 2015.
ii. From April 1, 2015 through March 31, 2016, if the then current annual average pounds per week per
Logname: 23WM FIRST AMENDMENT Page I of 2
residential service unit of processed recyclables, calculated by using the Pounds Per Week Annual
Average Formula, increases by three percent or more, Waste Management will be entitled to increase the
then current per residential service unit rate by five cents effective April 1, 2016.
iii. From April 1, 2016 through March 31, 2017, if the then current annual average pounds per week per
residential service unit of processed recyclables, calculated by using the Pounds Per Week Annual
Average Formula, increases by two percent or more, Waste Management will be entitled to increase the
then current per residential service unit rate by five cents effective April 1, 2017.
These increases would be made administratively. However, the City may terminate the Agreement with
Waste Management for any reason upon 30 days notice. This amendment will also change the annual
cost adjustment for the Recycle Rewards Program rates from a method based on commodity pricing to a
flat one cent per service unit increase per year.
M/WBE OFFICE - Waste Management of Texas, Inc. is in compliance with the City's M/WBE Ordinance
by maintaining a minimum of 25 percent M/WBE participation. The City's goal in this contract is 25
percent.
FISCAL INFORMATION /CERTIFICATION:
The Financial Management Services Director certifies that this amendment will result in a savings in the
current Solid Waste Fund operating budget and subsequent year savings will be budgeted as appropriate.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
PE64 539120 0239902 $1,198,080.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Charles Daniels (6199)
Originating Department Head: Brandon Scott Bennett (6345)
Additional Information Contact: Kim A. Mote (5153)
ATTACHMENTS
1. PE64-5ZZZZZ-02399ZZ.docx (CFW Internal)
Logname: 23 WM FIRST AMENDMENT Page 2 of 2