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HomeMy WebLinkAboutORD 1988-051 ORDINANCE NO. 88-51 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, APPROVING AND ADOPTING THE SECOND ADDENDUM TO THE WASTE COLLECTION SERVICES CONTRACT BETWEEN THE CITY AND LAIDLAW WASTE SYSTEMS, INC. ; DECLARING THAT THE CONTRACT IS ADOPTED PURSUANT TO THE � CITY' S POLICE POWERS; PROVIDING THAT THE CONTRACT IS DESIGNED TO PROMOTE THE HEALTH, SAFETY AND GENERAL WELFARE OF THE CITIZENS OF .,��,:� GRAPEVINE; PROVIDING A SEVERABILITY CLAUSE; DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE WHEREAS, a Services Contract was executed and entered into by the City and SCA Services of Texas with a contract period of May 20, 1984 through May 20, 1989, with an option for an additional five (5) year period; and WHEREAS, Laidlaw Waste Systems, Inc. , ( "Laidlaw") is the successor in interest to the Services Contract and desires to continue to operate pursuant to the contract until May 20, 1994 by executing a Second Addendum to the Services Contract; and WHEREAS, the Second Addendum to the Services Contract is being executed pursuant to the City' s police powers and is designed to promote the health, safety, and general welfare of the citizens of the City. , NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS : Section 1 , That the above premises are found to be true and correct and are incorporated herein for all purposes. Section 2 . That the City Council hereby approves and adopts the Second Addendum to the Services Contract, a copy of which is attached hereto and incorporated herein for all purposes as Exhibit "A" . Section 3 . The Second Addendum to the services contract is hereby adopted pursuant to the City' s police powers and the City Council hereby finds and declares that said contract is designed to promote the health, safety and general welfare of the citizens of the City of Grapevine. Section 4 . If any section, article, paragraph, sentence, clause, phrase or word in this ordinance, or application thereto any person or circumstances is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance and the City Council hereby declares it would have passed such remaining portions of the ordinance despite such invalidity which remaining portions shall remain in full force and effect. � Section 5. The fact that the present ordinances and ' a�� regulations of the City of Grapevine, Texas, are inadequate to � ro erl safe uard the health, safety, morals, peace, and general ; P P Y g welfare of the public creates an emergency which requires that ` this ordinance become effective from and after the date of its � passage, and it is accordingly so ordained. i i PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF " GRAPEVINE, TEXAS on this the 2nd day of p,�,�l,.��_, 1988. � i � � � � 4 APPROVED: � � Mayor ATTEST: ,�� a , City Secretary APPROVED AS TO FORM: � City Attorney , ; r ,I � u•a��� � � l � E I i ( i i I I I I I EXHIBIT "A" TO , ORDINANCE NO. 88-51 SECOND AD�ENDUM TO SERVICES CONTRACT STATE OF TEXAS ) ) COUNTY OF TARRANT ) This Second Addendum to the Services Contract is made this �,�,,, 2nd day of August, 1988, at Grapevine, Texas, by and between the City of Grapevine, Texas (the "City") and Laidlaw Waste Systems, Inc. ("Laidlaw") . WHEREAS, a Services Contract was executed and entered into by and between the City and SCA Services of Texas, Inc. ("SCA") on March 30, 1984, with an effective date of said contract being May 20, 1984, (the "Services Contract") ; and WHEREAS, GSX Corporation of Texas ("GSX") was the successor-in-interest te SCA; and WHEREAS, a first addendum to the Services Contract was made the 16th day of December, 1986, by and between the City and GSX; and WHEREAS, the name of GSX was changed to Laidlaw, which name change was approved by the City Council on March 3 , 1987; and WHEREAS, the City and Laidlaw mutually desire to amend the Services Contract as hereinafter set forth. WITNESSETH, that for and in consideration of the agreements hereinafter made and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the City ,.�,,:�, and Laidlaw hereby agree and covenant as follows: Art'icle I. �;�,� That all references to "GSX Corporation of Texas" throughout the Services Contract are hereby amended to read "Laidlaw Waste , Systems, Inc. " and that all references to "duly authorized Area Manager Dennis Marchetti" are hereby amended to read "duly authorized Division Manager. " Article II. That the Services Contract is hereby amended by the addition of a new section la. entitled "Sludge Disposal" , which shall read as follows: la. SLUDGE DISPOSAL Contractor hereby covenants and agrees to diligently and faithfully perform the public service of collecting and disposing of sewage sludge generated by the City's Wastewater Treatment Plant, at no cost to the City. Contractor shall be responsible ,�,� for providing the City with an appropriate 17 yard container in which the sludge will be placed by the City. Contractor must respond to a verbal request for pick-up by the City within twenty-four (24) hours of said verbal request. The City ''�'" anticipates that on a yearly basis there will be 279 pick-ups by Contractor; however, this figure is an estimate only and the City reserves the right to increase or decrease the number of pick-ups during the term of this contract. In the event the number of collections increases significantly from this figure, Contractor shall provide City proper documentation representing the cost of supplying said service to the City. The City Council may then conduct a hearing to determine if the City shall be charged for the collsction of the sludge. � Article III. ' That the Services Contract is hereby amended by the addition ' of a new section lb. entitled "Hazardous Waste, " which shall read as follows: ' lb. Hazardous Waste � ' Contractor is not required to collect and dispose of hazardous wastes generated by the City. For the purposes of this j Contract, "hazardous waste" shall be defined as all fecal ,�.,,,,� material or sludge, other than that material generated by the City's Wastewater Treatment Plant, unless such material is subsequently designated by the U.S. Environmental Protection Agency ("EPA") or appropriate agency of the State of Texas as a hazardous waste, and any oil, radioactive, pathological, toxic, acidic or volatile materials or any chemical, compound, mixture, substance, or article which is designated by the EPA or appropriate agency of the State of Texas to be "hazardous" as that term is defined by or pursuant to Federal or State laws. Article IV. I I I That section 2 of the Services Contract relating to Payment � is hereby amended in its entirety to read as follows: , 2 . ! , PAYMENT � � The City of Grapevine shall perform billing and sales tax collection services for Contractor by means of its monthly water billing procedures. The City shall be responsible for remitting � the sales tax in accordance with the Texas Tax Code. Within 30 days of the end of each month during which collection and ,�� disposal services are provided by the Contractor, the City shall � forward to the Contractor payments received for Contractor's � service for the prior month. The monthly payment shall be ' determined as follows: ' 1. The number of single-family residential service units on the active customer list times the current unit price for single-family residential service, PLUS 2. The number of duplex residential service units on the active customer list times the current unit price for duplex service, PLUS 3. The total billing of commercial users based on the frequency of collections and,. sizes of contain2rs, PLUS ' 4. The number of hand-load commercial service units on the active customer list times the current unit price for hand load commercial service, PLUS i � 5. The total number of open top construction and demolition icontainers placed in the City at a customer's request times the "'"�" unit price determined by the size of container and the number of -dumps, LESS � �: � 6. A sum equal to two percent (2%) of the total of items 1 through 5, inclusive, which shall be retained by the City of ' Grapevine as a franchise fee, LESS ; 7 . A sum equal to eight percent (8%) of the total of items 1 through 5, inclusive, which in accordance with the proposal of the Contractor shall be retained by the City as compensation for billing and collection services, LESS 2 8. A retainage equal to two percent (2%) of the total of items 1 through 5, incZusive, which will be used as a bad debt reserve. If ae actualilossfdue to b d debts heldiffere ce will greater than th be refunded to the Contractor. Article V. That section 3 of the Services Contract relating to Unit Price Adjustment is hereby amended in its entirety to read as .;��� follows: 3. ,,,�, UNIT PRICE ADJUSTMENT From time to time during the term of this Contract the Contractor may require an increase in unit prices in order to receive a fair return on investment. Requests for such adjustments must be submitted to the City Council for approval. Any increase in unit prices during the five (5) year renewal period of this Contract shall be based on eighty-five percent (85�) of the annual increase in the Municipal Cost Index ("MCI") for the twelve (12) months immediately preceding the month during which the request is made, except that the City Council may approve an increase in cost not based on the MCI if the City Council finds in its sole discretion that the costs are extraordinary costs of doing business and are unrelated to the . MCI. Article VI. That section 4 of the Services Contract relating to Term of Contract and Cancellation is hereby amended in its entirety to read as follows: ,� � 4. TERM OF CONTRACT AND CANCELLATION The term of this Contract shall be for a period ending May 20, 1994. The City may cancel this Contract with cause in accordance with the terms of this section 4. Prior to the cancellation of this Contract, the City Manager shall provide the Contractor written notice stating the ground or grounds for cancellation and advising Contractor of the right to correct all problems giving rise to the ground or grounds for cancellation within fifteen (15) days of the date of the notice. If the Contractor has not corrected all such problems to the satisfaction of the City Manager within the fifteen (15) day time period, a hearing shall be held before the City Council to determine whether the Contract should be cancelled. The. City Manager shall provide the Contractor with at least three (3) days written notice of the date, time and location of such hearing. Grounds for cancellation with cause by the City may include, but are not limited to: 1. Failure of the Contractor to begin work operations at "�"" the time agreed to by both parties. 2. Failure of the Contractor to provide and maintain � sufficient labor and/or equipment to properly carry out the program of work. 3 . Evidence that the Contractor has abandoned the work. 4 . Evidence that the Contractor has become insolvent or bankrupt, or otherwise financially unable to carry out the work in a satisfactory manner. 3 5. Failure on the part of the Contractor to comply with the Contract or any requirements therein, or to comply with any requirements given by the City Manager. 6. Indication that the Contractor has made an unauthorized j transfer or assignment of the Contract. Upon a City Council declaration of cancellation with cause, the City may, without further compensation to the Contractor, take over the work and take possession, without further notice to the Contractor and without judicial proceedings, of any and all equipment of the Contractor necessary to carry out collection and disposal of solid waste and sludge within the City of Grapevine � � and operate and use the same in the performance of the work and � services described in this Contract for the unexpired term of the Contract, and the Contractor agrees to surrender peacefully said � � equipment and facilities and to assist the City in taking possession, or the City may enter into agreements with others for the performance of the work and services herein contracted for. Such cancellation of the Contract shall not relieve the Contractor of liability for failure to faithfully perform this Contract, and the Contractor shall be liable to the City in the amount of $100, 000 which shall be furnished by an annual or biennial performance bond which shall be kept current throughout the life of this Contract including the renewal period, if any. Article VII. That section 5 of the Services Contract relating to Local � Office and Complaint Procedures is hereby amended in its entirety I to read as follows: 5. � I ; LOCAL OFFICE COMPLAINT PROCEDURES AND LI4UIDATED DAMAGES Throughout the term of this Contract, the Contractor shall establish and maintain a local office in the Dallas/Fort Worth � metropolitan area. I Contractor's local office shall be open during the hours of "�� � 8: 30 a.m. to 5:00 p.m. . Monday through Friday ("collection hours") i so that customers can lodge complaints, and request information � or service. ' Contractor's local office shall have a responsible person in charge during collection hours. The office must be equipped with a sufficient number of telephones and a local telephone number (not long distance) , and have sufficient attendants to receive telephone calls. Attendants shall receive calls in a courteous and polite manner, record all complaints and resolve all complaints in an expeditious manner within the following 24-hour period. ' At the end of each month, Contractor shall furnish the City � with a list of all complaints received, the time and date of each complaint, the name and address of each complainant, and the action taken by the Contractor in response to each complaint. � Failure to remedy the cause of the complaint shall be ; considered a breach of this Contract and for the purpose of ' computing damages it is agreed that the City may deduct from � payments due to Contractor the following amounts as liquidated -damages: �.;�;� � 1. Failure to clean up refuse spilled by Contractor's workmen - each incident at the same premises: $25. 00 ' 2 . Failure or neglect to collect refuse from any premises i at those times as provided by this contract within 24 hours - each failure or neglect of repeated instance at same premises: $25.00 4 3 . Failure or neglect to correct chronic problems in any category above (chronic shall mean three or more similar incidents at the same premises) - each instance: $150.00 Article VIII. That paragraph e. of section 9 of the Services Contract relating to Insurance is hereby amended in its entirety to read as follows: e. LOCAL AGENT FOR INSURANCE AND BONDING: The insurance �..,� and bonding companies with whom the Contractor's insurance and performance bonds are written shall be represented by an agent or agents licensed to do business in the state of Texas. Each such agent shall be duly qualified, upon whom service of process may 4�� be had, and must have authority and power to act on behalf of the . insurance and/or bonding company to negotiate and settle with the City of Grapevine, or any other claimant or any property owner who has been damaged, and may have a claim against the Contractor, insurance, and/or bonding company. The name of the agent or agents shall be set forth on all such bonds and certificates of insurance. Contractor shall keep the required insurance in full force and effect at all times during the term of this Contract, and any renewals thereof. Contractor shall furnish to City a certificate of insurance on a form furnished and approved by City, evidencing that Contractor has obtained the required insurance coverage and naming the City as an additional insured party. All policies must provide that they may not be changed or cancelled by the insurer in less than five (5) days . after the City of Grapevine has received written notice of such change or cancellation. Such insurance amounts may be revised upward at City's request, which request shall be reasonable, and Contractor shall revise such amounts within thirty (30) days a�ter receipt of such request. In the event this Contract or any of the rights, title, and interest in this Contract is assigned, transferred, sublet, conveyed, or otherwise disposed, the assignee, transferee, sublessee, purchaser, or any other person, A firm, or corporation acquiring such right, title, or interest in this Contract shall provide a certificate of insurance in �_� accordance with the terms of this Contract within thirty (30) days of the assignment, transfer, sublease, or conveyance. Article IX. That section 12 of the Services Contract relating to Commercial Service is hereby amended in its entirety to read as follows: 12 . COMMERCIAL SERVICE Service to commercial customers shall be provided at a level requested by each customer. Fees for commercial service shall be based on the number of collections and the size of container requested by each customer. All containers for commercial service shall be provided by Contractor. All commercial service shall be scheduled and no "will-call" accounts will be permitted. Article X. ,,�.� That section 13 of the Services Contract relating to Service to the City is hereby amended in its entirety to read as follows: � 13 . SERVICE TO THE CITY Except as provided in Section la. of this Contract, service to facilities owned and/or operated by the City shall be provided at no cost to the City. Facilities to which service shall be provided at no cost must include all City parks, swimming pools, 5 water treatment plants, city maintenance shops, City Hall, Civic Center, all Fire Stations, the Police Building, the Convention Visitors Bureau, the Li�rary, the Senior Citizen Center, the Golf ; Course, the Concourse, and other facilities acquired by the City � during the term of this Contract. In addition, service shall be provided at no cost to facilities operated by the Grapevine ' Public Housing Authority. Service to these facilities shall be at a frequency ' specified by the City Manager. Article XI. � � That section 14 of the Services Contract relating to ' Schedules and Routes is hereby amended in its entirety to read as f ol l ows: �-.� 14 . SCHEDULES AND ROUTES The City Manager shall approve all routes and schedules and any changes therein. The Contractor shall abide by these routes and schedules. The City reserves the right to deny the Contractor's vehicles access to certain streets, alleys, and public ways inside the City or outside the City enroute to the dump grounds, where it is in the interest of the general public to do so because of the condition of streets or bridges. The Contractor shall not interrupt the regular schedule and quality of service because of street closures. Customers under this ; Contract shall be notified of any revised schedules. ! The Contractor's attention is directed to the fact that at times during the year the quantity of refuse to be disposed of is materially increased by fluctuations in the amount of garden and yard trash, and the influx of visitors. This additional load will not be considered justification for the Contractor to not maintain the required collection and routes. � The Contractor may grant his employees paid holidays. The ��� � following holidays will constitute paid holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. No collections will be required on the � residential routes on the paid holidays, and the Contractor will i not be required to make up the routes missed. Commercial collection schedules will be adjusted to accommodate collection � needs around paid holidays. Contractor reserves the right to work on any paid holidays as necessary. Article XII. That section 15 of the Services Contract relating to ! Non-Exclusive is hereby amended in its entirety to read as I follows: ` 15. ' EXCLUSIVE CONTRACT The City Council, in the exercise of its police powers, hereby grants Contractor an exclusive right to collect refuse in ! the City in accordance with the terms and provisions of this ,..,w Contract, excluding the area of the Dallas-Fort Worth ; International Airport contained within the City or areas ' controlled by the United States Army Corps of Engineers. �_� Article XIII. That section 16 of the Services Contract relating to i Compliance with Laws is hereby amended in its entirety to read as follows: 6 16. COMPLIANCE WITH LAWS The Contractor agrees that he is an equal opportunity employer and will not discriminate in hiring on the basis of sex, race, color, religion, national origin, or age. Contractor, its officers, agents, employees, contractors and subcontractors, shall abide by and comply with all laws, federal, �� state, and local, including the Charter and all ordinances, rules and regulations of the City of Grapevine. It is agreed and understood that if City calls the attention of Contractor to any such violation on the part of the Contractor, its officers, `''�' agents, employees, contractors or subcontractors, then Contractor shall immediately desist from and correct such violation. Contractor agrees to obtain and pay for all licenses, permits, certificates, inspections and all other fees required by law or otherwise necessary to perform the services prescribed hereunder, except sales tax collected and remitted by the City. Contractor shall also pay, at his own expense, all disposal fees associated with the collection, removal and disposal of refuse. Article XIV. That section 17 of the Services Contract relating to Non-Assignment is hereby amended to read as follows: 17. NON-ASSIGNMENT The Contractor shall not assign, transfer, sublet, convey, or otherwise dispose of the Contract or the rights, title, or �,�� interest in or to the same or any part thereof without the prior consent of the City Council. In deciding whether to grant its consent, the City Council may require financial statements � (except in the case of wholly owned subsidiaries of Laidlaw) , or other documents which the City Council deems necessary to make its determination, be submitted by the assignee, transferee, sublessee, purchaser or any other person, firm, or corporation acquiring a right, title, or interest in this Contract. Article XV. That section 18 of the Services Contract relating to Notices is hereby amended in its entirety to read as follows: 18. NOTICES Notices by either party, to the other party shall be made by certified mail, postage ' paid, return receipt requested, and addressed to the other party at these addresses: Citv Contractor City Manager Division Manager � City of Grapevine Laidlaw Waste Systems, Inc. P.O. Box 729 6100 Elliott Reeder Road - Grapevine, Texas 76051 Fort Worth, Texas 76117 �w with a copy to: City Contractor John F. Boyle, Jr. Thomas Fowler, General Counsel Hutchison Boyle Laidlaw Waste Systems, Inc. Brooks & Dransfield 669 Airport Freeway 3900 First City Center Hurst, Texas 76053 Dallas, Texas 75201 7 Article XV. That the effective date of this Second Addendum shall be the 2nd day of August, 1988. This Second Addendum may be executed in counterparts, each of which shall constitute an original and all of which, when taken together, shall constitute one agreement, and any party hereto may execute this Second Addendum by signing one or more counterparts thereof. � IN WITNESS WHEREOF the parties hereto have executed this Agreement this the y� day of August, 1988, in Grapevine, Tarrant County, Texas. ��° � City of apevine, T as Laidlaw Waste Systems, Inc. By: � � gy; ��`-yj��� � � Y�ty Manage ` James M. Dancy � - Title: Vice-President �� ATTEST: • + By: '. ; � �, City Secret APPROV AS TO FO � City Attorney w+w �� � ��k 8