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.
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i PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
" GRAPEVINE, TEXAS on this the 2nd day of p,�,�l,.��_, 1988.
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APPROVED:
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Mayor
ATTEST:
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City Secretary
APPROVED AS TO FORM:
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City Attorney ,
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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
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' 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.
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I That section 2 of the Services Contract relating to Payment
� is hereby amended in its entirety to read as follows:
, 2 .
! , PAYMENT
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� 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
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� 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
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� 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
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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
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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.
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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. �
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; 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
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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
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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.
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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,
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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
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� 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:
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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
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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
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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.
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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
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ATTEST: •
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'. ; � �, City Secret
APPROV AS TO FO
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City Attorney
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