BFI Recycling Services ContractCITY OF DUBUQUE, IOWA
MEMORANDUM
July 31, 2001
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
New Recycling Services Contract
Operations and Maintenance Manager Don Vogt is recommending that the City enter
into a Recycling Services Contract with BFI Waste Services through June 30, 2002.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Don Vogt, Operations and Maintenance Manager
CITY OF DUBUQUE, IOWA
MEMORANDUM
July 30, 2001
TO:
FROM:
SUBJECT:
Michael C. Van Milligen, City Manager
Don Vogt, Operations and Maintenance Manager
New Recycling Services Contract
Introduction
The purposes of this memorandum are to provide information and solicit approval
regarding a new recycling services contract with Browning Ferris Industries (BFI).
Background
Since January of 1995, the City of Dubuque has partnered with BFI for the processing
and marketing of recyclables collected by City crews. Since the expiration of our last
contract a year ago, we have operated under a letter of understanding (attached).
There are two primary reasons for our lack of a written agreement: First of all, previous
requests for proposals during the 90's resulted in singular bid proposals - from BFI or its
predecessor, Environmental Recycling Services (ERC). This was due undoubtedly to
BFI having the only recyclery in the county. As a result, in mid-1999, we consulted with
Barry Lindahl regarding the possibility of negotiating directly with BFI for a new contract
to replace the one due to expire in April of 2000. Barry rendered the opinion that our
proposed course of action was perfectly legal, but required your approval. After
receiving your permission to proceed, our initial attempts to negotiate with BFI were
frustrated by their somewhat tumultuous takeover by Allied Waste Systems. The local
BFI manager, Jeff Fishbaugh, was at first prohibited from making any commitments and
then was subsequently relieved of his duties. His assistant, Steve Cavanaugh, was
assigned Mr. Fishbaugh's responsibilities on a temporary basis. He was also cautioned
by the new Allied owners regarding future contracts, until the performance of each BFI
unit could be evaluated for possible sale or trade. Last year, BFI/Allied finally indicated
a willingness to negotiate a new contract. With guidance from Barry Lindahl and Frank
O'Connor, a new contract was drafted and financial terms agreed upon quite quickly.
However, language concerning party liabilities could not be agreed on and this
disagreement became the second major impediment to a new written agreement. As a
result, almost a year was lost due to our dispute with BFI/Allied regarding the noted
language.
This Spring, concurrence was finally reached with BFI/Allied regarding the disputed
liability language. However, in the interim, Allied split off BFI's local recyclery from their
collecting/hauling division here. They noted the necessity of "separating the books" and
'identifying the true costs/revenues of each division. They cited their suspicion that the
collecting/hauling division was subsidizing the recycling division. I subsequently
received a letter (attached) from BFI/AIlied citing losses by their recycling division and
informing us of their unilateral alteration of our partnership terms. Without a written
agreement in place, BFI/Allied's new terms cannot be readily challenged. However, as
the national economy slowed in recent months, BFI/Allied's new terms could have a
more favorable effect on our recycling budget than the tentative terms of last year's
aborted agreement or the terms of our previous contract. This is because BFI/Allied's
new proposal does not require us to share costs/losses if commodity market prices fall
below revenue-sharing levels. After receiving BFl's letter, I asked Solid Waste
Management Supervisor Paul Schultz to survey other Iowa cities regarding the
prices/revenues they paid/received from their local recycleries. As can be seen from
Paul's attached survey tabulation, BFI/Allied's new terms are still quite favorable. In
fact, they are better than those received by any other city surveyed.
Discussion
In consideration of the background information noted above, I do recommend that the
attached agreement be accepted and endorsed by the City of Dubuque. Given today's
markets, its terms are quite favorable. The new agreement will not negatively impact
our operations or monthly solid waste fee. In addition to the proposed new agreement,
also attached is a document combining the last City/BFI contract with the new. This
document highlights the changes through the use of lineouts and brackets.
Action Step
I recommend that the City of Dubuque accept and endorse the proposed recycling
services contract with Browning Ferris Industries.
DLV/vle
Attachments
l[Waste
SystemsTM
BROWNING.FERRIS INDUSTRIES
Ou~Jque District
April 12, 2000
Paul Schultz
SoIid Waste Management Supervisor
City of Dubuque
925 Kerper Blvd.
Dubuque Ia 52001
Dear Paul
This letter will serve as a notice that we both know our current contract has expired and
that we agree to keep things the same until our new agreement is reached. If you have any
questions about this please call me right away. Thank you for your continued business
and cooperation in this matter.
Sincerely
Operations Manager
BFI Waste Systems
1755 RADFORO ROAD · P-O. BOX 1006 - DUBUQUE, IOWA 52004-1006 * (319) 556-5393 · FAX (319) 556-0727 Recycled
SystemsTM
BFI WASTE SYSTEM OF NORTH AMERICA, INC.
Dubuque District
Febraa~.' 28, 200l
Paul Schultz
Operations and Maintennnce Department
Ci.ty of Dubuque
925 Kerper Blvd
Dubuque Iowa 52001
Dear Paul:
Ever since Allied purchased BFI and the Dubuque Division two years ago, we have needed to evaluate and
separate the tree costs of both the MRZ and the hauling operations. When we made these operations
separate divisions January 1,2001, we have found that we are currently experiencing losses in the overall
operation of the MRF as well as on the commodities received from the Cig,'. Part of this is due to the
slowdown in the economy, which has lowered the prices, received for our processed materials. We also
need to increase our input tonnage.
We have to address this situation immediately to stem this tide and make sure that all of our customers have
a place to continue to bring their recyclables for processing. Clearly, at this rate, there is no point in
running a facili~' and continuing to lose money. We are evaluating rates charged to all of our customers
and options m mm this around.
Beginning March I ~ 2001 we will no longer subtract the S60.00 tipping fee from the processed material
sales to determine the revenue or charge to the City. The City will be not charg, ed for any of the material
received, but neither will the City receive any revenue share. We are willing to commit to this "no revenue,
no charge to the city" th_rough June 30, 2002.
In the future there ma,,,' be a ,,,,'ay to share the revenue from the commodities when and if the commodity
prices rise significantly. That can now be addressed in a future written agreement. At your urging,
Jacqueline Peterson, o four Bettendoffoffice, contacted Framk O'Coaner last week and was apparently able
to resolve our insurance impasse. As you well know, Altied had not been able to sign the city's proposed
contract due to this problem. I know that both you and Steve Md tried many times to work this out with the
insurance people.
I regret we must take these measures to cut the City's revenue at this time. However, the ultimate end is to
have a MILF operating sustainably in Dubuque for all the customers that we both serve, t am available to
meet with you or Don to answer any quest[oas and plan for the future.
1755 RADFORD ROAD - DUBUQUE, IOWA52002 · (319) 556-5393 · FAX (319) 556-0727 Recycled paper
IOWA RECYCLERY SURVEY
3/19/01
CITY/AREA
Carroll County
Cedar Rapids
Clinton
Council Bluffs
Davenport
Des Moines
Dubuque
Jackson County
Sioux City
Waterloo
NAME
CCSWMA
City Carton
CASWA
(same)
SCSWMA
Weyerhauser
BFI/Allied
DAC
(same)
Corkery
PUBLIC/PRIVATE
Public
Private
Public
Public
Public
Private
Private
Public
Public
Private
FEE/REVENUE SCHEDULE
$25/ton Charged Through Solid Waste Agency
$25/ton Charged Through Solid Waste Agency
$65/ton Charged Through Solid Waste Agency
Costs Covered By Property Taxes
$25/ton Charged At Scale
$14/ton Charged Through Solid Waste Agency
SO/ton Charged
$24/ton Charged Through Solid Waste Agency
Costs Covered By Property Taxes
$27.50/ton Charged At Scale
CITY OF DUBIJQUE, IOWA
AGREEI~LEh-r FOR THE PROCESSING AND I~L4.RKETING OF RECYCLABLES
THIS AGREENfENT, made and entered into this da)' of ,2001, betwcen the
City of Dubuque, an Iowa Municipal Corporation, by its City Manager, through the authority
conferred upon him b>' its City Council, hereln~fter called "City" and BFI Waste Services, LLC,
hereinafter called "Contractor".
In consideration of the mutual covenants herein contained, the parties hereto do agree as
follows:
01. Term of A~eement
The term of this Agreement shall be from
02'. Definitions
.2001 through June 30, 2002.
?
For the purpose of this Agreement, the following terms shall have the following
me~nlngs:
Holidays. Holida>~ are those days identified onthe Hohday Schedule, Exhibit
A.
Material Re-coven' Facility (MRF). Material Recovery Facility shall mean the
Contractor's processing facility located at 1755 Radford Road, Dubuque, Iowa
52002.
Co
Acceptable Recvclable Materials. Acceptable Recyclable Materials means
uncontaminated materials including newspaper, glossy paper; corrugated
cardboard; residential mixed paper; dear, g~en and brown glass food and
beverage container~; aluminum, steel and tin food and b~erage col~talners; #I
PET and #2 HDPE plastic containers; and other materials as mutually agreed
upon in writiag bythe City and the Contractor. See Exhibit B for current list of
agreed upon materials.
Commineled. ' Commingled shall mean the delivery of the Recyclable Materials
to the MKF in four compartmentalized or containerized streams: paper;
metal/plastic rigid containers; clear glass containers; ar~ green[brown glass
containers, acceptable to the Contractor az~d the City.
Level of Unacceptable Materials. Unaceeptable Materials means either mnterials
which are not Kecyclable Materials, or Kecyclable Materials which have not been
properly prepared in compliance with Exhibit B. Reeyclable Materials shall be
considered contaminated when they contain either Prohibited Materials, or Out
Thro~ of more than two percent (2%) by visual estimation, excgpt for glass .
which shall neither contain Prohibited Materials, nor Out Throws of more than
one percent (1%) by visual csOmation.
03.
04.
General Descriction of' Setw-ices
The Contractor shall receive, process and market Commingled Recyclable Materials
delivered to the MRF by the Ci~'. The sen-ices rendered by Contractor shall be in
accordance with th/s A~eement.
Recei¥in~ Recvclable Material
Receiving Schedule. The MRF shall be opened for business and capable of
receiving Recyclable Materials on Monda)' througJa Friday and on Saturda)~
desigrmted in the Holiday Schedule. Hours for receiving shall be from 7:00 AM
to 4:30 PM.
The City reserves the right to redesignate the recycling collection da)' to replace
collections which occur on Holidays and to designate additional Holidays.
Planned and'Unanticipated Shutdowns. The Contractor shall make prov. isions-for
receiving Recyclable Materials from the City dating any planned or
~manticipated shutdo~x~s at the M2RF.
D~
Rejection Procedures. If the Recyclable Materials are not acceptable because
they include too great a quantity of Unacceptable Materials, a second opinion
shall be pro~,'ided by a Contractor supervisor before rejecting the Recyclable
Materials. The Contractor shall then immediataly notify the City's Solid Waste
M~n~gement Supervisor. Rejected whole or partial tmcldoads shall be set aside
inside the Contractors facility, for up to two working days. The City shall either
dispose of the Rejected Material at its o~ua expense or remove and dispose ora
sufficient quantity of contamination in order to upgrade the materials to become
acceptable for processing by the Contractor.
Wei~hinc~ of Recvclabte Materials. The Contractor shall provide one (1) certified
truck scale and a miaimum of one (1) unloading area. The Recyclable Materials
shall be weighecl as a whole on the truck to the nearest 20-potmd increment and
then unloaded into covtainers, bunkers or on a tipping floor. The City shall be
provided scale tickets that indicate the date, time, track number, gross weight,
tare weight and net weight of each truckload of Recyclable Materials.
Unloadin~ of Recvclable Materials. The City shall be responsible for unloading
Recyclable Materials at the MP, F. The Contractor shall cooperate with and assist
the City by providing any labor, equipment or space necessary to unload
Recyclable Materials at the MRF that ~ill enable the City collection crew' to
proceed in a safe and timely manner.
Title to the Recvclable Materials. The City shall retain title to all Recyclable
Materials until such materials are accepted bythe Contractor.
Apl~ortioning the Recvclable Materials. The Contractor and the City, on not less
than an annual basis, shall estimate and apportion individual commodity
percentages of Recyclable Materials delivered by the Cio'. Appropriate
weighing, estimating and identification techniques shall be used. No extra
charges shall be assessed to the City for this ser~'ice.
2
05.
06.
07.
08.
09.
10.
Storage and Processing of Rccvclable Materials
'Fne Contractor shall be responsible for an)' and all storage and processing of Recyclable
Materials that are necessary to meet market specifications and all costs associated with
storage, processing and transport of Recyclable Materials received from the City.
O~xuaership of the Material Recovery Facility
The Contractor shall o~xm or lease the MRF and shall be responsible for any and all
expenses incurred to operate and maintain the MRF.
Marketin~ Recvclable Materials
The Contractor shall be responsible for marketing all Recyclable Materials processed at
the MRF. The Contractor agrees to use its best efforts to market all Recyclable Materials
delivered by the CID'.
Unacceptable and Residual Waste
Rei~tin-~ Unacceptable Loads or Commodities. The Contractor shall have the
right to reject an5' Unacceptable Materials in accordance with the Rejection
Procedure. The Contractor shall be respoas~le for disposing of Unacceptable .
Materials at the Contractor's expense if the Contractor at the MRF accepts such
Unacceptable Materials at time of deliver3.'.
Non-Processibte Materials and Process Residuals Disposal Requirements. The
Contractor shall be responsible for segre~tlng Unacceptable Materials, which
are non-process~le, from other received materials. Non-process~le,
contaminated materials and any process residnak shall be stored and transported
in suitable containers. The Contrac/or shall also be responsible for hauling the
process residuals and non-processible materials to the Dubuque Metropolitan
Area Solid Waste Agency Landfill or, if necessary, to another licensed disposal
facility. The Contractor shall pay all costs related to such disposal, including
tonnage fees, charged by the disposal facilities.
Landfilling Recv¢lable Materials
The Contractor Shall not dispose of any non--contarninat~ed Recyclable Materials accepted
from the City at the Dubuque Metropolitan Area Solid Waste Agency L~clfill or any
other disposal facility without the ,~aStten authorization of the City's Solid Waste
Man~zement SupetMsor.
Fees and Terms of Payment
The Contractor shall accept Recyclable Materials from the City at no charge. The City is
not responsible for an5' handling, processing or marketing costs incurred by the
Contractor on the delivered Recyclable Materials.
11.
12.
13.
14.
Performance Guarantee
The Contractor shall deliver a bond or other seeurity to the City in a form acceptable to
the Cit~' in the amount of rift)- thousand dollars ($50,000), as a performance guarantee in
the event of non-performance of any of the terms oft his A.~'eement by the Contractor.
The exercise of any fi~hts under such guarantee shall in no ~y operate as a waiver of
any other fights or claims that the Cit')' may have against the Contractor.
The Contractor shall provide insurance as set forth in Schedule C.
Performance of the Contract
A.
Su~Dlv Necessary Items. The Contractor shall supply an labor, material and
equipment n~cessary for tJge carr).ing out of the Contractor's duties under this
Agreement.
No Claims. The Contractor agrees to pay in a timely manner all persons doing
work or furnishing skill, tools, machinery, or just claims for such work, material,
equipment insurance, and supplies in and about the performance of this
Agreement.
Co
Indemnification. The Contractor agrees to take an precautions to protect the
public against injury and to pay ail claims for damages to persons or property that
may arise by reason of the negligence, recklessness or intentional misconduct of
the'Contractor or its agents or employees while engaged in the performance of
~ Agreement, and to indemnify the CiD' againq all claim~ of any kind, ~
against all lo~s by reason of the fanure of the Contractor in any respect to fully or
properly perform all obligations of this Agreement.
Records and Reports
Generally. The Contractor shall establish and maintain records that ghM1 be open
to inspection by the City of all financial and operating information related to the
Rceyclable Materials delivered to it by the City. The records shall include
insm-ance and any regulatory inspection records; quantity by weight of
Recyclable Materials delivered by the City to the MRF; and the to~nage, selling
price and value of all sales made from Recyclable Materials delivered bythe City
to the MRF.
Renort to the Ci~,'. The Contractor shall submit a monthly Report to the City
· ,vltMn 5 days after the end of each month that shall include the selling prices of
all Recyclable Materials delivered by the City to the MRF.
Inspection of Records. The Ciw, or any authorized representative of the City,
shall have the right to inspect the non-confidential records of the Contractor
relating to its performance under this Agreement upon seven (7) days notice to
conduct such inspection. The City shall conduct such inspection in a manner that
~x'ill be least disruptive to the operation of the NfRF. The Contractor agrees to
cooperate fully with the City during the inspection.
15.
16.
17.
18.
19.
20.
The Contractor shall provide and maintain at! sardtary and safe~' accommodations for the
use and protection of its employees as ma)' be necessary to provide for thek health and
welfare and shall comply ~Sth all federal, state and local codes and regulations.
Nondiscrimination
The Contractor mgrees that, during the life of this A~eement, the Contractor shall not
discriminate again~ any employee or applicant for employment because of race, color,
creed, sex, national origin, age, ph)~ical or mental disability, or political affiliation, and
shall include a similar provision in all subcontracts entered into in the performance
hereof.
Health Re~utation and Ordinances
The Contractor shall acquaint itself with all pertinent Ordi~ncas of the City and shall
comply ~Sth ali health regulations and laws of the Ci~' and the State of Io~. in effect at.
this time or hereafter adopted.
Governing Law
This Contract shall be governed in all respects by the law of the State of lowa.
Notice
All notices required to be served or delivered by either par~y on th, other shall be in
writing and delivered by hand as follows:
If to the Contractor:
Mr. Keith l-I~oan, Facility Max~ger
Dubuque Division
BFI Waste Services, LLC
1755 Radford Road
Dubuque, IA 52002
If to the City:
Mr. Michael C. Van Milligen, City Manager
City of Dubuque
50 West 13th Street - City Hall
Dubuque, IA 520014845
Sueces~
The Contractor binds itself, its successors, and assigns to the City in respect to all
coven2~ts ofthi~ Agreement.
21.
22.
23.
Nonassi~abilitv
The Contractor shall not assign or transfer this Agreement or any part of its interest in
this Agreement nor shall the Contractor assign an5' monies due, or to become due,
without the City's ~fitten coasent. The Contractor acknowledges that the CiD' l~s no
obligation to give such consent and rnay xdthhold such consent for any reason it deems
proper.
Sevembilitv
All parts and provisions of this Agreement are severable. If any part or provision shall be
held invalid, the remainder shall remain in effect.
Termination
This Agreement may be terminated by the Ci~' under the foltm~Sng conditions:
6)
(ii)
In the event of fraud, misrepresentation, or brea*h of any of the material
terms of the Agreement by the Contractor or in the event that the
Contractor becomes insolvent, is dissolved or is named as a party in a
proceeding under any barflcruptc3' or insolvency la~. Prior to such '
termination, the C~' shall deliver x~xitten notice of its intent to terminate
and the grounds therefore, and the Contractor shall have fourteen (14)
days to cure said deficiencies to the satisfaction of the City.
If the Contractor does not obtain and maintain any of the insurance
coverage requked by this Agreement.
This Agreement may also be terminated upon mutual agreement of tho parses at
any time.
24. Entire Am'eemant
This Agreement, with attachments incorporated herein by reference, is the entire
agreement between the parties. No modifications of this Agreement shall be walid or
effective, unless made in writing and signed by the patties hereto.
CITY
BY
Michael C. Van Mdlligen, City M~nager
City of Dubuque Iox~a
DATE
Keith Hag~_ Fadillty
Dubuque Division
BFI Waste SepAce~, LLC
6
Flattened Paper Product Examples
Acceptable:
Newspapers, magazines, catalogs
Corrugated cardboard (staples ok)
Clean pizza boxes
Grey chipboard: cereal, shoe boxes
Envelopes, junk mail, paper bags
White, colored and fax paper
Phone books, paper egg cartons
Carbonless forms
Disposab!e diapers tub~ rolls
Phot~rA~S.~ greeting ~'ds
Food ~ncrust~d pizza boxes
CereAi box li~i~S~.per foot'bags
Slick~oated fr0~ food ~0xes
Pape~i~!ates, cup ~ n~pkins
Milk, ju~c~:;~nd plast!~ ~ cartons
Tissue paper', ~[~p~ng paper
Clean Metal Examples
Acceptable:
Rinsed tin / steel food containers
Aluminum foil, pie pans and trays
Metal jar lids in flattened cans
Aluminum window frames, chairs
U~Cceo~bl?
Paint a~ aerosol containers
Pesticid~ and ~rnical ~ntainers
Car pa~; oil filte~ and ~atteries
Iron and ~teel
Rinsed Plastic Container Examples
Acceptable: (#1 and IP2 only) Unacceptable
Milk and juice jugs Plastic ba~ and fi!m wrap
Margarine and ice cream tubs Motor 0il containers
Yogurt cups Anti:fT~eze containerS'
Pop and water bottles pe§tieid~ and chemical ~0ntainers
Cooking oil containers , Plastic with~ any recycli~ symbol
Shampoo bottles PlaStic with a'#3 to #7 symbol
Lotion bottles prescription pill bottles
Dish and liquid soap bottles UnSanitary containers
Bleach and detergent containers Strof°am '
Household cleaning containers , Medical supplies
Rinsed Glass Container EXamples
Acceptable:
Food jars and bottles
Juice bottles
Pop and water bottles
Beer bottles
Wine and liquor bottles
Revised 4/01
Unacce_otable:
Mirror and window glass
Drinking glass, vases
Crystal, Pyrex and ovenware
Ceramic cups and plates
Light bulbs, flower pots
For further assistance,
please call the
Operations and Maintenance
Department
Monday through Friday
7 am to 4 pm
at 589-4250
EXHIBIT A
HOLIDAY SCHEDULE
Holidays
New Year's Day
Memorial Day
Independence Day
Labor Day
Th~ n!,'sgiving Day
Christmas Eve D~~
Christmas Day
New Year'~s Eve Day
Ci~' Collccation Prooedurcs for Holidays
If a holiday occurs on a Monday or Tuesday, the recycling collection day shall be the preceding
Saturday. If a holiday occurs on a Wednesday, Thursday or Friday, the recycling collection day
shall be the following Saturday.
'Uae City reserves thc right to redesignat¢ the rec)~ling collection day for holidays otto designate
additional Holida)~.
SCHEDULE C
hNSU1LtNCE SCHEDULE
1. Any policy of insurance required hereunder shall be ~ith a carder authorized to do
business in Iowa and a carrier that has received a rating ora or better in the current Best's Rating
Guide.
2. Any policy of insurance required hereunder shmll pro~Sde for a thir~'-day ~ritten notice
to the Ci~' of any cancellation of the pol/cy prior to its expiration date.
3. The Contractor shall fum/sh a certificate of insurance to the City, with limits not less than
the follo~Sng, or greater if required by law, and shall also furnish certificates of insurance from
all independent contractors or subcontractors hired by the Contractor or any independent
contractor or subcontractor hired by the independent contractor or subcontractor, ~hich
certificates shall pro~4de evidence of coverage for the fotto~Sn& ~dth limits not tess than the
following, or greater if required by law: ' '
COMMERCIAL GENERAL LIABILITY:
General Aggregate Limit
Products-Completed Operation Aggregate Limit
Personal and Adve~aSng lnjur>' Limit
Each Occurrence Limk
Fire Damage Limit (any one occurrence)
Medical Payments
OR
$2,000,000
$1,000,000
$1,000,000
$1,000,000
$50,000
$5,000
Combined Single Limit
Medical Payments
$2,000,000
$5,000
Coverage is to include: occurrence form, premises/operations/products/completed opemtion~
coverage, independent contractom' coverage, contractual liability, broad form property damage,
personal injury, Ci~' of Dubuque named as an additional/muted ~4th 30 days' written notice of
Change or czmcellafion.
9
CITY OF DUBUQUE, IOWA
AGREEMENT FOR THE PROCESSING AND MARKETINGOF RECYCLABLES
THIS AGREEMENT, made and entered into this day of ,2001, between the
City of Dubuque, an Iowa Municipal Corporation, by its City Manager, through the authority
conferred upon him by its City Council, hereinafter called "City" and BFI Waste Services of
N~la America, hereinaf~r called "Contractor".
In consideration of the mutual covenants herein contained, the parties hereto do agree as
follows:
01. Term of Agreement
The term of this Agreement shall be from
02. Definitions
2001 through June 30, 2002.
For the purpose of this Agreement, the following terms ~hall have the following
meanings:
Holidays. Holidays are those days identified on the Hohday Schedule, Exhibit
Material Rccoverv Facility (MRF). Mutual Recovery Facility ~hall mean the
Contractors processing fac'flity located at 1755 Radford Road, Dubuque, Iowa
52002.
Acceptable Recvclable Materials. Acceptable Recyclable Materials means
lln¢omaminatod matorials including ne~mper, glossy paper; corrugated
cardboard; residential mixed paper; clear, green and brown glass food and
beverage comers; Muminuln, st~l and fin food and beverage ooi~t~iners; #1
PET and #2 HDPE plastic containers; and other materials as mutually agreed
upon in writing by the City and the Contractor. See Extffbit B for current list of
agreed upon materials.
Comminqled. Commlngled qhall mean the delivery of the Reeyclable Materials
to the 1VIRF in fora' compartmentalized or containerized stre~m~: paper;
metal/plastic rigid containers; dear glass containers; and, greel~/brown glass
con--ira',rs, acceptable to the Contractor and the City.
Level ofUnaceeptable.Matefials. ~le Materials means either materials
which are not Recyclable Materials, or Rccydabl¢ Materials which have not been
properly prepared in complmee with Exhibit B. Rcoyclable Materials shall be
considered contaminated when they contain either Prohibited Materials, or Out
Throws ofmor~ than two percent (2%) by visual estimation, except for glass
which shall neither contain Prohibited Materials, nor Out Throws of more than
one percent (1%) by visual estimation.
03. General Description of Services
04.
The Contractor shall receive, process and market Commingled Recyclable Materials
delivered to the MRF by the City. The services rendered by Con~ctor ~hall b~ in
accordance with this Agreement.
Receiving Recyclable Material
Receiving Schedule. The MRF shall be opened for business and capable of
receiving Recyclable Materials on Monday through Friday and on Saturdays
designated in ~he Holiday Schedule. Hours for receiving shall be fxom 7:00 AM
to 4:30 PM.
The City reserves the right to redesignate the recycling collection day to replace
collections which occur on Holidays and to designate additional Holidays.
Planned and Unanticipated Shut-Downs. The Contractor shall make provisions
for receiving Recyclable Materials t~om the City during any pJann&l or
unanticipated shut-downs at the MRF.
Rejection Procedures. Ifthe Recyclable Materials are not acceptable because
they include too great a quantity of Unacceptable Material~. a second opinion
shall be prodded by a Contractor supervisor before rejecting the Recyclable
Materials. The Contractor shall then immediately no~- the City's Solid Waste
Management Supervisor. Rejected whole or paxtial maddoads shall be set aside
inside the Contractors facility, for up to two working days. The City shall either
dispose of the Rejected Material at its own expense or remove and dispose ora
sufficient quantity of contamination in order to upgrade the materials to become
acceptable for processing by the Contractor.
Weighing of Recvclable Materials. The Couhactor ~all provide one (1) certified
track scale and a minimum of one (1) unloading area. The Recydable Materials
shall be weighed as a whole on the track to the nearest 20 pound increment and
then unloaded into containers, bunkers or on a tipping floor. The City shall be
provided scale tickets which indicate the date, time, truck number, gross weight,
tare weight and net weight of each track-load of Reeyelable Materials.
Unloadin~ of Reevclable Materials. The City shall be respons~le for unloading
Recyclable Materials at the MRF. The Coahactor nhall cooperate with and assist
the City by providing any labor, equipment or space necessary to unload
Recyclable Materials at the MRF which will enable the City collection crew to
proceed in a safe and timely manner.
Title to the Recvclable Materials. The City shall retain title to all Recyclable
Materials until such materials are accepted by the Contractor.
Appox~ioning the Recy¢lable Materials. The Contractor and the City, on not less
thall ~11 anml~l basis, Shall Ostim~te and apportion individual commodity
percentages of Recyelable Materials delivered bythe City. Appropriate
weighlng, ~ tnating and identification techniques shall be used. ~vu_~v
charg~ shall be assessed to the City for Bais scr~ice.
05.
06.
07.
08.
09.
10.
Storage and Processing of Recv¢lable Materials
The Comractor shall be responsible for any and all storage and processing of Recyclable
Materials which are necessary to meet market specifications and all costs associated with
storage, processing and transport of Recyclable Materials received from the City.
Ox~xaership of the Material Recovery Facility
The Contractor shall ow~a or lease the IvlRF and shall be responsible for any and all
expenses incttrred to operate and maintain the MRF.
Marketing Rec¥clable Materials
The Contractor shall be responsible for marketing all Recyelable Materials processed at
the MRF. The Contractor agrees to use its best efforts to market all Recy¢lable Materials
delivered
the
Unacceptable and Residual Waste
Rejecting Unacceptable Loads or Commodities. The Contractor shall have thc
right to reject any Unacceptable Materials in accordance with the Rejection
Procedure. The Contractor ~hall be responsible for disposing of Unaoceptable
Materials at the Conwactofs expense if such Unacceptable Materials are accepted
at time of delivery by the Contractor at the MRF.
Non-Processible Materials and Process Residuals Disposal Requirements. The
Contractor shall be responsible for segregating Unacceptable Materials, which
are non-processible, fxom other received materialg Non-processible,
contaminated materials and any process resid-al~ nhall bo stored and trausported
in suitable containers. The Contractor shall also be responsible for hanling thc
process residn-ln and non-processible materials to the Dubuque Metropolitan
Area Solid Waste Agency Ixmdfill or, if necessary, to another licensed disposal
fac'flity. The Contractor shall pay all costs related to such disposal, including
tonnage fees, charged by the disposal facilities.
Landfilling Recvelable Materials
The Contractor ~hall not dispose of any non-contaminated Recyclable Materials accepted
from the City at the Dubuque Metropolitan Area Solid Waste Agency Landfill or any
other disposal facility without the written authorization of the City's Solid Waste
Management Supervisor.
Fees and Terms of Payment
The Contractor shall accept Recyclable Materials from the City, at a m.:.-.='.-n..=m, at
no charge. The CRy is not responsible for any handling, processing or m~arketing
costs incurred by the Contractor on the delivered Recyclable Material~)
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11.
The Contractor shall deliver a bond or other security to the City- in a form acceptable to
the City in the mount of fifty thousand dollars ($50,000), as a performance guarantee in
the event of non-performance of any of the terms of tkis Agreement by the Contractor.
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t2.
13.
14.
The exercise of any fights under such guarantee shall in no ~ay operate as a waiver of
any other rights or claims which the City ma~v have ag?lint the Contractor.
The Coat,actor ~hall provide insurance as set forth in Schedule t~ C.
Performance of the Contract
Supply Neeessarv Items. The Contractor sh,ll supply all labor, material and
equipment necessary for the carrying out of the Contractor's duties under this
Agreement.
No Claims. The Contractor agrees to pay in a timely manner all persons doing
· work or furnishing skill, tools, machigery, or just claims for such work, material,
equipment insurance, and supplies in and about thc performance of this
Agreement.
Indemnification. The Contractor agrees to take all precautions to protect the
pubhc againnt injury and to pay all claims for damages to persons or property that
may arise by reason of the negligence, recklessness or intentional misconduc~ of
the Contractor or its agents or employees while engaged in the performance of
this Agreement, andto indemnlfy the City against all claims of any kind, and
aga~ ingt all loss by reason of the failure of the Contractor in any respect to fully or
properly perform all obligations of this Agreement.
Records and Reports
Generally. The Contractor shall establish and maintain records which shall be
open to inspection by the City of all financial and operating information related
to the Recyclablc Materials delivered to it by the City. The records shall include
insurance and any regulatory inspection records; ~anfity by weight of
Recyclable Materials delivered by the City to the MRF; and the tonnage, $¢11in~
price and value of all sales made from Reeyclable Materials delivered by the City
tothe MRF.
Report to the City. The Contractor shall submit a monthly Report to the City
within 5 days afar the end of each month~vhich shall include ~xe selling prices
of all Recyclable Materials delivered by the City to the MRF;) Tk: P,e~c~
Inspection of Records. The City, or any authorized representative of the City,
~hall have the fight to inspect the non-confidential ~cords of the Contractor
relating to its performance under this Agreement upon seven (7) days notice to
conduct such inspection. The City shall conduct such inspection in a manner
which ~511 be least disruptive to the operation of the MRF. The Contractor
agrees to cooperate fully with the City during the inspection.
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15.
16.
17.
18.
19.
21.
Safety
The Contractor shall provide and maintain all sanitary and safety accommodations for the
use and protection of its employees as may be necessary to provide for their health and
welfare and shall comply with all federal, state and local codes and regulations.
Nondiscrimination
· The Contractor agrees that, during the life of this Agreement, the Contractor ~hall not
discriminate againgt any employee or applicant for employment because of race, color,
creed, sex, national origin, age, physical or mental disability, or political affiliation, and
shall include a similar provision in all subcontracts entered into ia the performance
hereof.
Health Regulation and Ordinances
The Contractor shall acquaint itself with all pertinent Ordinances of the City and shall
comply with all health regulations and laws of the City and the State of Iowa in effect at
this time or hereafter adopted.
This Contract shall be governed in all respects by the law of tbe State of Iowa.
Notice
All notices required to be served or delivered by either party on the other ghalt be in
~,Iiting and delivered by hand as follows:
If to the Contractor.
Mr. Keith Hagan, Facility Manager
Dubuque Division
BFI Waste Services of North America
1755 Radford Road
Dubuque, IA 52002
If to thc City:
Mr. Michael C. Van Milligcn, City Manager
City of Dubuque
50 West 13th Street - City Halt
Dubuque, IA 52001.4845
Successors and Assi~s
Thc Contractor binds itself, its successors, and assigns to thc City ia respect to all
covenants of this Agreemcnt.
Nonassi~nabilitv
Thc Contractor ~hall not assign or trausfcr this Agreement or any part of its interest ia
this Agreement nor shall thc Coahactor assign any monies due, or to become duo,
without the City's written cousont. The Contractor acknowledges that the City has no
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2.
23.
obhgation to give such consent and may ~Sthhold such consent for any- reason it deems
proper.
Severabilitv
All parts and pro~4sions of this Agreement are severable. If any part or provision shall be
held invalid, the remainder shall remain in effect.
Terminntion
This Agreement may be terminated by the City under the following conditions:
(i)
In the event of fxand, misrepresentation, or breach of any of the material
terms of the Agreement by the Contractor or in the event that the
Contractor becomes insolvent, is dissolved or i.s named ns a parff in a
proceeding under any bankruptcy or insolvency laws. Prior to such
termination, the City shall deliver written notice of its intent to terminate
and the grounds therefore, and the Contractor shall have fourteen (14)
days to cure said deficiencies to the satisfaction of the City.
Bo
If the Contractor does not obtain and maln*ain any ofthe insurance
coverage required by this Agreement.
This Agreement may also be terminated upon mutual agreement of the patties at
any time.
24. F~tire Agreement
This Agreement, with _~rmchments incorporated herein by reference, is the entire
agreement between the parties. No modifications of this Agreement shall be valid Or
effective, unless made in writing and signed by the parties hereto.
CITY CONTRACTOR
BY BY
Michael C. Van Milligen, City Manager
City of Dubuque Iowa
DATE
Keith Hagen, Fadlity Manager
Dubuque Division
BFI Waste Services of North America
DATE
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EXHIBIT A
HOLIDAY SCHEDULE
Holidays
New Year's Day
Memorial Day
Independence Day
Labor Day
Thanksgiving Day
Christmas Eve Day
Christmas Day
New Year's Eve Day
City Collection Pm for Holidays
If a holiday occurs on a Monday~or~uesday ~, xtho recycling ?.l¢ction day sh .a!l be
the preceding Saturday. Ifa holk[ay occurs on ,(.Wedne~day,~Itmrsday or Fnday, the recycling
collection day shall be lt~e following Saturday.
The City reserves the fight to redesignate the recycling collection day for holidays or to designate
additional Holidays.
f EXHIBIT B i~
CITY'S TWO PAGE YELLOW RECYCLING FLYER revi~sed 4/0
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SCUDdED(C)
INSURANCE SCHEDULE
1. Any policy of insurance or cc~qc=t: cf L~uranze requked hereunder shall be with a
carder authorized to do business in Iowa and a carder that has received a rating of A or better in
the current Best's Rating Guide.
2. Any policy of insurance required hereunder shall provide for a thirty-day written notice
to the City of a~,ql~*r/oJ~ha~*~ cancellation of the policy prior to its expiration date.
3. The Contractor shall furnish cop'ica cftc fzSz;;Sng FoEci~-t~ certificate of ins.urance~to
the City, with limits not less than the following, or greater if required'by law, axld shall also
furnish Certificates of insurance fi-om alt ~dependent contractors or subcontractors hired by the
Contractor or any independent contractor or subcontractor hired by the independent contractor or
subcontractor, which certificates shall provide evidence of coverage for the following, with limits
not less than the following, or greater if required by law:
COMMERCIAL GENERAL LIABILITY:
General Aggregate Limit
Products-Completed Operation Aggregate Limit
Personal and Advertising Injury Limit
Each Occun*ence Limit
Fire Damage Limit (any one occurrence)
Medical Payments
OR
$2,000,000
$1,000,000
$1,000,000
$1,000,000
$ 50,00O
Combined Single Limit $2,000,000
Medical Payments $5,000
Coverage is to include: occam'ence form, premises/operations/products/completed operations
coverage, independent contractors' coverage, contractual liability, broad form property damage,
personal injm'y, City of Dubuque named as an additional illSUred with 30 days' wri~en notice of
cJaang¢ or cancellation.
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