Dittmer Recycling Incorporated - Recyclables Processing Agreement Copyright 2014
City of Dubuque Consent Items # 42.
ITEM TITLE: Dittmer Recycling Incorporated - Recyclables Processing
Agreement
SUMMARY: City Manager recommending approval of a five-year
agreement with Dittmer Recycling Incorporated for
processing and marketing the City's collected recyclables.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve
ATTACHMENTS:
Description Type
Dittmer Recyclables Processing Agreement-MVM City Manager Memo
Memo
Recycling Agreement Memo Staff Memo
Agreement Supporting Documentation
THE CITY OF Dubuque
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Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Proposed City of Dubuque/Dittmer Recyclables Processing Agreement
DATE: June 13, 2016
Public Works Director John Klostermann recommends City Council approval of a five
year agreement with Dittmer Recycling Incorporated for processing and marketing the
City's collected recyclables.
The current Recyclables Processing Agreement is a three-way agreement between the
City, the Dubuque Metropolitan Area Solid Waste Agency and Dittmer, which is set to
expire on June 30. The new contract does not include Dubuque Metropolitan Area
Solid Waste Agency because all the recyclable materials collected curbside and
delivered to the Dittmer facility under the current agreement in recent years were from
the City.
Under the current agreement, Dittmer's recyclables processing fee is $83.17 per ton,
with revenue shares of 55% to the City, 5% to the Agency, and 40% to Dittmer for
composite commodity values that exceed $83.17 per ton. Under the terms of the new
agreement, Dittmer's processing fee would drop to $60 per ton, with a 50/50 revenue
share on the average per ton value of the City's Acceptable Recyclable Materials.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
John Klostermann, Public Works Director
Dubuque
THE CITY
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D V L L All-Americacity
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Masterpiece on the Mississippi 2007.202-2013
TO: Michael C. Van Milligen, City Manager
FROM: John Klostermann, Public Works Director
SUBJECT: Proposed City of Dubuque/Dittmer Recyclables Processing Agreement
DATE: June 15, 2016
INTRODUCTION
The purpose of this memorandum is to recommend the attached City of Dubuque
recyclables processing and marketing agreement with Dittmer Recycling Incorporated.
BACKGROUND
The current three-way agreement between the City, the Dubuque Metropolitan Area
Solid Waste Agency (DMASWA), and Dittmer expires on June 30th. In January, you
had authorized direct negotiations with Dittmer for a new recyclables processing and
marketing agreement—without future participation by the DMASWA. This was due in
large part to the recognition that all of the recyclable materials collected curbside and
delivered to the Dittmer facility under the current agreement in recent years were from
the City. As a result, it was agreed that the City should have direct control over the next
contract and any associated revenues. The DMASWA proved agreeable to this course
of action.
DISCUSSION
Resource Management Coordinator and Supervisor Anderson Sainci, and I have been
meeting with Dittmer Recycling's Scott Dittmer and Joe Rettenmeier on a regular basis
in recent months to negotiate a new agreement. The objectives of this agreement are
to secure a facility to divert recyclable materials from the landfill, minimize the City's
financial risks associated with the recyclables commodities markets, and develop a new
contract far simpler than the current agreement. The strategy was to reduce the tipping
fee for processing and marketing of the delivered materials, maximize the value of the
processed recyclables for the profit sharing, and reduce the risk of subsidizing the
processor when markets are depressed.
Under the current agreement, Dittmer's recyclables processing fee is $83.17 per ton,
with revenue shares of 55% to the City, 5% to the Agency, and 40% to Dittmer for
composite commodity values that exceed $83.17 per ton.
When the composite value of the processed materials is below $83.17 per ton, a $20
surcharge is added for a tipping fee of$103.17 per ton, which has been the case since
last summer. This condition requires a payment to make up the difference between the
tipping fee and the value of the processed materials.
Due to a slight increase in commodity market prices over the last two months, a
revenue share payment ($1 ,345.52) was received from Dittmer for March and April of
2016. Therefore, based on current market conditions, we anticipate at least some
revenue share for the remainder of FY 2016.
Under the terms of the new proposed agreement (attached), Dittmer's processing fee
would drop to $60 per ton - with a 50/50 revenue share on the average per ton value of
the City's Acceptable Recyclable Materials.
Four major recycling facilities in east-central Iowa that process and market curbside-
collected single stream recyclables were recently contacted to verify their current and/or
proposed fees and terms. Below are the results of the survey.
Recycling Facility Current/Proposed Revenue Share
Processing Fee
Cedar Rapids/Linn $65/ton Yes (Average of 35%
County (private) of revenues in excess
of$65/ton to
customer)
Iowa City (private) $65/ton Yes (same as Cedar
Rapids/Linn County)
Davenport (private) $65/ton No
Scott County (public) $80/ton Yes (50% of revenues
in excess of$80/ton to
customer
The proposed agreement with Dittmer providing for a processing fee of$60.00 per ton
and a 50/50 revenue share obviously compares quite favorably with the terms noted
immediately above. The proposed agreement itself has been reviewed and approved by
City Attorney Barry Lindahl.
The approved FY17 budget for the Curbside Recycling Collection activity (67054530)
anticipated that the City would not receive any revenue from or provide any payments to
Dittmer. This was due in no small part to unstable commodity market prices at that time
and uncertainty regarding the future participation of the DMASWA. At this time, I
believe there is a chance for net shared revenues versus recycling facility subsidy
payments. In the event that subsidy payments to Dittmer would prove to be necessary
for FY 2017, I recommend that the $42,794 remaining from the $205,675 originally
budgeted for the replacement of a collection truck in FY16 be used to offset the subsidy
payments. That truck's purchase was canceled and $50,000 of its original appropriation
was used to purchase a badly-needed grappler truck, along with $112,881 put into
reserve to cover an anticipated FY16 recyclables revenues' shortfall of an equal
amount.
ACTION STEP
I recommend that the attached five year agreement with Dittmer Recycling Incorporated
for processing and marketing the City's collected recyclables be approved and
endorsed.
CC: Jenny Larson, Budget Director
Jean Nachtman, Finance Director
Anderson Sainci, Resource Management Coordinator and Supervisor
Attachment
AGREEMENT
FOR THE PROCESSING AND MARKETING OF RECYCLABLES
BETWEEN
DITTMER RECYCLING, INC.
AND
THE CITY OF DUBUQUE, IOWA
VA
This AGREEMENT, dated for reference purposes the E q 'day of e
2016, is made and entered into, between, Dittmer Recycling, Inc. (Contra tor) and the
City of Dubuque, Iowa (City).
WHEREAS, Contractor is the only Materials Recovery Facility (MRF) in the
county capable of providing comprehensive services with whom City desires to
negotiate a contract; and
WHEREAS, it is imperative that City complete contract negotiations in a timely
manner; and
WHEREAS, City desires to significantly increase the diversion of Recyclables
from the solid waste stream it delivers to the Dubuque Metropolitan Area Solid
Agency's Landfill (Agency) to extend the life of the Agency's Landfill; and
WHEREAS, City desires to maximize per ton revenues derived from the sale of
the recyclables and to minimize transportation and overall costs; and
WHEREAS, City desires to enable sustainable recycling infrastructure in order
to provide competitive MRF processing services, and support green jobs and local
economic development; and
WHEREAS, City and Contractor desire to reduce pollution impacting Global
Climate Change and to conserve energy and natural resources for use by future
generations; and
WHEREAS, City has agreed to contract with Contractor for receiving,
transferring, processing and marketing Acceptable Recyclables collected by City subject
to the terms and conditions set out below.
IN CONSIDERATION OF THE MUTUAL COVENANTS HEREIN CONTAINED,
THE PARTIES HERETO AGREE AS FOLLOWS:
SECTION 1. TERM OF AGREEMENT. The term of this Agreement shall be from July
1, 2016 until midnight June 30, 2021 (the Term), unless earlier terminated pursuant to
this Agreement. City may at its option renew this Agreement for two one-year terms by
giving Contractor written notice of renewal not less than ninety (90) days prior to the
expiration of the Term or an extension of the Term.
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SECTION 2. DEFINITIONS. For the purpose of this Agreement, the following terms
shall have the following meanings:
2.1 Holidays. City Holidays are New Year's Day, Martin Luther King's Day, Memorial
Day, Independence Day, Labor Day, Veteran's' Day, Thanksgiving Day, Day after
Thanksgiving, Christmas Eve, Christmas Day and New Year's Eve. City crew will
provide curbside collection services on Veteran's Day, the Day after Thanksgiving,
Christmas Eve, and New Year's Eve. For the remaining holidays, City crews will provide
curbside collection services on the preceding or following Saturdays. The MRF shall
remain open to meet the needs of the City and the City's collection schedule on the
noted holidays and Saturdays, expect the Saturday collection for Memorial Day,
Independence Day, and Labor Day. The City will hold the recyclables collected on the
Saturday collection days identified for service for Memorial Day, Independence Day,
and Labor Day until the following Tuesday. Contractor agrees to adjust MRF facility
hours on the Tuesdays after the noted holidays and on all other holidays to meet the
needs of the City.
2.2 Materials Recovery Facility (MRF). Materials Recovery Facility shall mean the
Contractor's facility located at 1755 Radford Road, Dubuque, IA 52002.
2.3 Acceptable Recyclable Materials. Acceptable Recyclable Materials means post-
consumer recyclables collected "curbside" from residential, institutional, and
commercial recycling customers that are uncontaminated and include: newspaper;
glossy paper; corrugated cardboard; chipboard; pop and beer carriers; office paper;
residential mixed paper; shredded paper; hard cover and soft cover books, aluminum,
steel and tin food and beverage containers; steel aerosol containers; dry, clean, empty
metal paint cans; plastic containers labeled plastic resin #1-#5 (excluding plastic bags /
film); and other materials as mutually agreed upon in writing by City and Contractor.
Acceptance of previously agreed upon Acceptable Recyclable Materials listed on
Attachment B may be terminated as mutually agreed upon in writing by City and
Contractor.
2.4 Single -Stream. Single -Stream shall mean the delivery of the Acceptable
Recyclable Materials to the MRF in one compartmentalized or containerized stream:
commingled paper; metals; and plastic rigid containers.
2.5 Clean Cardboard. Clean Cardboard shall mean the delivery of acceptable
containerboard materials with a liner to the MRF that are not significantly mixed with
other Acceptable Recyclable Materials or Unacceptable Materials.
2.6 Unacceptable Materials. Unacceptable Materials means either materials that are
not Acceptable Recyclable Materials or materials that would have been classified as
Acceptable Recyclable Materials but were not properly prepared in compliance with
Attachment B. Entire truckloads of Single -Stream materials shall be considered as
Unacceptable Materials when they contain prohibited materials or out -throws of more
than 5% by weight by visual estimation. Clean Cardboard shall be considered as
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Unacceptable Materials when containing prohibited materials or out -throws of more than
10% by weight by visual estimation.
2.7 Residual Materials. Residual Materials means materials that are not recovered
in Contractor's or subcontractor's sorting process and therefore not marketed to
secondary material end users. The most current overall Residual Materials rate from
Contractor or other facilities performing Primary Processing of Acceptable Materials
delivered by City shall be reported to City in the form of Attachment C. Residual
Materials contain some non -recyclable materials, including incidental glass, which is an
Unacceptable Material in these collection streams. These Residual Materials shall
contain no more than 3% Acceptable Recyclable Materials by the weight of Residual
Materials that is landfilled.
SECTION 3. CONDITIONS PRECEDENT. City shall not be obligated to perform
under and may terminate this Agreement unless:
(1) Proper certificates of insurance are provided by Contractor; and
(2) The performance bond required by Section 12.1 is provided by Contractor.
SECTION 4. GENERAL DESCRIPTION OF SERVICE. Contractor and any approved
subcontractor (s) shall receive, transfer, process and market Single -Stream Acceptable
Recyclable Materials delivered to the MRF by City. All services rendered by Contractor
shall be in accordance with this Agreement.
SECTION 5. RECEIVING ACCEPTABLE RECYCLABLE MATERIALS.
5.1 Receiving Schedule. The MRF shall be open for business and capable of
receiving Acceptable Recyclable Materials Monday through Friday and Saturdays as
designated in Section 2.1. Hours for receiving materials on Monday through Friday
shall be from 7:00 a.m. to 3:30 p.m. City reserves the right to re -designate the recycling
collection day to replace collections which occur on Holidays and to designate additional
Holidays.
5.2 Planned and Unanticipated Shutdowns. Contractor shall make provisions for
receiving Acceptable Recyclable Materials from City during any planned or
unanticipated delay in opening, shutdowns, maintenance, or renovations at the MRF.
Contractor shall provide written notice to City at least sixty (60) days in advance of any
substantial change in these or subsequent plans for receiving, transferring and
processing materials collected by City.
5.3 Rejection Procedures. If any materials are not acceptable because they initially
were alleged to include too great a quantity of materials which are not Acceptable
Recyclable Materials, a second opinion shall be provided by a Contractor supervisor
before rejecting the materials. Contractor shall then immediately notify City. Rejected
whole or partial truckloads shall be reloaded, with City concurrence or set aside inside
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Contractor's facility for not more than two (2) working days. City shall either dispose of
sufficient quantity contamination in order to upgrade the materials to become
Acceptable Recyclable Materials for processing by Contractor. If City is unable or
unwilling to remove the rejected materials in accordance with this Agreement,
Contractor will charge the disposal of the materials to City at the plus invoice City for
one hundred dollars ($100.00) for transport.
5.4 Weighing of Acceptable Recyclable Materials. City shall weigh Toads at the
Contractor's MRF or any other certified scale that is accepted by City to establish the
net weight delivered to the MRF. Weight tickets shall be generated automatically
without requiring manual weight data entry. Procedures for establishing empty truck
weights shall be mutually agreed upon in writing by City and Contractor. Contractor
shall maintain records of each load from City by date, net weight, time of day and truck
identification. Contractor shall provide City with monthly reports of the total weight
delivered to the MRF in the form of Attachment C.
5.5 Unloading of Acceptable Recyclable Materials. City shall be responsible for
unloading Acceptable Recyclable Materials at the MRF. Contractor shall cooperate with
and assist City by providing the personnel, equipment and/or space necessary to
unload Acceptable Recyclable Materials which will enable City drivers to operate in a
safe and timely manner. City shall be required to follow all mutually agreed upon tipping
floor procedures while on Contractor's premises.
5.6 Title to the Acceptable Recyclable Materials. City shall retain title to all
Acceptable Recyclable Materials until Contractor accepts such materials.
SECTION 6. STORAGE AND PROCESSING OF ACCEPTABLE RECYCLABLE
MATERIALS. Contractor shall be responsible for any and all storage, transfer and
processing of Acceptable Recyclable Materials necessary to meet market specifications
and all costs associated with storage, transport and processing of Acceptable
Recyclable Materials received from City.
SECTION 7. OWNERSHIP OF MRF. Contractor shall at all times during the Term of
this Agreement be either the owner or the lessee of the MRF and shall be responsible
for any and all expenses incurred to operate and maintain the MRF; transporting
Acceptable Recyclable Materials to any approved subcontracted MRF and all
processing costs associated with any approved subcontracted MRF; and, all
transportation costs to ship materials to end markets.
SECTION 8. SORTING AND MARKETING ACCEPTABLE RECYCLABLE
MATERIALS.
8.1 Contractor shall be responsible for marketing Acceptable Recyclable Materials
accepted from City. Contractor agrees to use its best efforts to effectively process, or
subcontract to primary process, and market all Acceptable Recyclable Materials
delivered by City at an optimal value.
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8.2 City shall have the right, during the term of this Agreement, to have a
representative enter Contractor's premises to monitor adherence to the Agreement. Use
of recording devices by City on Contractor's premises shall be approved by Contractor.
Such representative shall provide reasonable notice to Contractor, shall only be allowed
on Contractor's premises during normal business hours, and shall follow all Contractor
safety procedures.
8.3 City shall have the right during the term of this Agreement to monitor the
performance of Contractor against goals and performance standards required in this
Agreement. Substandard performance as determined by City shall constitute non-
compliance and subject Contractor to penalties as Liquidated Damages. If action to
correct such substandard performance is not taken by Contractor within sixty (60) days
after being notified by City. City may initiate Agreement termination procedures.
SECTION 9. UNACCEPTABLE AND RESIDUAL MATERIALS
9.1 Reiectinq Unacceptable Loads or Commodities. Contractor shall have the right
to reject at the MRF any Unacceptable Materials in accordance with the Section 5.3.
Contractor shall be responsible for disposing of Unacceptable Materials at Contractor's
expense if such Unacceptable Materials are accepted at time of delivery by Contractor.
9.2 Limitation of Unacceptable Materials. Unacceptable Materials in any delivery by
City shall not exceed 5% by weight. In the event that Unacceptable Materials' content
in any delivery exceeds 5% by weight, Contractor may charge City for special handling.
Clean Cardboard materials may contain Unacceptable Materials not exceeding 10% by
weight.
9.3 Measuring Process Residuals. Contractor shall provide City a written description
of the means used to measure/estimate residuals derived from processing Acceptable
Recyclable Materials. Such written description shall be reviewed and approved by City
and shall be updated by Contractor immediately after any significant changes in
Subcontractors, or in the processing facilities and equipment. Contractor shall report
the quantity and rationale for any significant change in each month's residuals on the
monthly report.
SECTION 10. LANDFILLING ACCEPTABLE RECYCLABLE MATERIALS.
Contractor or any subcontractors shall not dispose any non -contaminated Acceptable
Recyclable Materials accepted from City in a landfill without the written authorization of
City. Any such proven action shall be grounds for penalty to Contractor.
SECTION 11. APPORTIONING MATERIALS, REVENUE, FEES AND TERMS OF
PAYMENT
11.1 Contractor shall accept Acceptable Recyclable Materials from City according to
the separate apportionment and financial terms adopted on quality and quantity as
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provided in Attachment A.
11.2 Settlement. Contractor shall be responsible for maintaining adequate records to
submit revenue sharing or processing fees information to City by no later than the 5th
day of each month. Contractor shall submit a digital monthly statement on the
Contractor's Financial Transactions Statement, in the form of Attachment C. Contractor
shall pay City any amount due to City by the 30th day of the month following the
previous month's deliveries of Acceptable Recyclable Materials in months when City
receives a Revenue Share. City shall pay any amount due to the Contractor by the 30th
day of the month following the previous month's deliveries of Acceptable Recyclable
Materials in months when City owes Contractor.
SECTION 12. PERFORMANCE GUARANTEE
12.1 Performance Bond. Contractor shall deliver a bond or other security to City in a
form acceptable to City in the amount of One Hundred Thousand Dollars ($100,000), to
secure the performance of its obligations under this Agreement. The exercise of any
rights under such security shall in no way operate as a waiver of any other rights or
claims that City may have against Contractor.
12.2. Liquidated Damages. Contractor agrees that, in addition to any other remedies
available to City, City may withhold any and all payments due to Contractor as
liquidated damages for failure of Contractor to fulfill its obligations under this
Agreement.
SECTION 13. INSURANCE. Contractor shall provide insurance as set forth in
Attachment D.
SECTION 14. EDUCATION. Contractor shall cooperate with City to increase
awareness about recycling in an effort to increase the amount and quality of materials
collected and delivered to Contractor's facility. Contractor shall support City's recycling
education and promotion programs as well as initiate its own programs. Strategies to
promote recycling shall include presentations to school and adult groups, participation in
local business and other organizations such as Sustainable Dubuque and the Chamber
of Commerce, and local media campaigns. Contractor will make a payment to City in
support of City's public education program in the amount of one dollar per ton (paid
quarterly) for Acceptable Recyclable Materials delivered to the MRF by the City.
Contractor understands that the funds may be used, but is not limited to, Re -Collect
software, flyers, brochures, giveaways advertisements and/or environmental events.
SECTION 15. PERFORMANCE OF THE AGREEMENT.
15.1 Necessary Labor, Material, and Equipment. Contractor shall supply all labor,
material and equipment necessary for performance of Contractor's duties under this
Agreement.
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15.2 No Claims. 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.
15.3 Indemnification. Contractor agrees to take all precautions to protect the public
against injury and to defend, indemnify and hold harmless the City, its officers and
employees, from and against any and all claims that may arise by reason of the
negligence, recklessness or intentional misconduct of Contractor or its agents or
employees in the performance of this Agreement.
SECTION 16. RECORDS, REPORTS, AND PERIODIC MEETINGS.
16.1 Generally. Contractor shall establish and maintain digital and paper records,
which shall be open to inspection by City, of all financial and operating information
related to the Acceptable Recyclable Materials delivered to it by City. The records shall
include insurance and any regulatory inspection records, quantity by weight of
Acceptable Recyclable Materials delivered by City to the MRF, and the records of all off-
site shipments, tonnage, transfer and disposals for primary, processing made from or
including Acceptable Recyclable Materials collected and delivered by the City.
16.2 Report to City. Contractor shall submit a complete monthly report to City within
five (5) days after the end of each month in the form of Attachments C, which shall
include; the tonnage delivered by City during the month; the quantity of each Recyclable
Commodity marketed; revenue owed to or by City; and the quantity and type of residue
landfilled during the month. The Contractor shall also submit a brief narrative analysis of
the market conditions for each materials; and suggested methods to improve the quality
or quantity of recyclable materials generated or processed or other ideas to enhance
the revenue potential of materials collected.
16.3 Inspection of Facility and Records. City or an authorized representative of City
shall have the right to inspect the facility and appropriate records of Contractor relating
to its performance under this Agreement upon seven (7) days notice to Contractor.
Non-proprietary photos may be taken to document problems as needed. City shall
conduct such inspection in a manner which will be least disruptive to the operations of
Contractor. Contractor agrees to cooperate fully with City during the inspection.
16.4 Periodic Meetings. Contractor and the City shall meet monthly, or as needed, to
address and perceived problems, commodity prices and revenue shares, monitor
Contractor operating costs, modify seasonal percentages of incoming materials by
mutual consent of City and Contractor, evaluate the status of the delivery and
processing of Acceptable Recyclable Materials, confer on potential efforts to improve
quantities and quality, and evaluate the status of current and possible future recycling
activities.
SECTION 17. SAFETY. Contractor shall provide and maintain all sanitary and safety
accommodations and protocols for the use and protection of its employees, as well as
7
for employees of City, as may be necessary to provide for their health and welfare and
shall comply with all federal, state and local codes and regulations.
SECTION 18. NONDISCRIMINATION. Contractor agrees that during the life of this
Agreement, Contractor shall not discriminate against any employee or applicant for
employment because of race, color, creed, gender identity, sexual orientation, national
origin, age, physical or mental disability, or political affiliation, and shall include a similar
provision in all subcontracts entered into in the performance of this Agreement.
SECTION 19. COMPLIANCE WITH LAW. Contractor shall comply with all
applicable state and local law, regulations and ordinances.
SECTION 20. GOVERNING LAW. This Agreement shall be governed in all respects
by the law of the State of Iowa.
SECTION 21. NOTICE. All notices required by this Agreement to be served on or
delivered to a party shall be in writing and delivered by hand as follows:
If to Contractor:
If to City:
Mr. Scott Dittmer, President
Dittmer Recycling, Inc.
1755 Radford Road
Dubuque, IA 52002
Mr. Michael C. Van Milligen
City Manager
City Hall
50 West 15th Street
Dubuque, IA 52001
SECTION 22. SUCCESSORS AND ASSIGNS. This Agreement shall be binding
upon Contractor, its successors and assigns.
SECTION 23. NON -ASSIGNABILITY.
23.1 Contractor. Contractor shall not assign or transfer this Agreement or any part of
its interest in this Agreement nor shall Contractor assign any monies due or to become
due under this Agreement without City's prior written consent. Contractor
acknowledges that City has no obligation to give such consent and may withhold such
consent for any reason it deems proper.
23.2 Subcontractors. Contractor shall not enter into subcontracts for any of the
services provided for in this Agreement without the prior written consent of City.
SECTION 24. CONFLICT OF INTEREST. Contractor agrees that no member,
officer, or employee of City shall have any interest, direct or indirect, in this Contract or
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the proceeds thereof. A violation of this provision shall cause this Agreement to be null
and void and Contractor shall forfeit any payments to be made under this Agreement.
SECTION 25. SEVERABILITY. All parts and provisions of this Agreement are
severable. If any part or provision shall be held invalid, the remainder shall remain in
effect.
SECTION 26. TERMINATION
26.1 This Agreement may be terminated by City under the following conditions:
(1) In the event of fraud, misrepresentation, or breach of any of the material
terms of the Agreement by Contractor or in the event that Contractor becomes
insolvent, is dissolved or is named as a party in a proceeding under any
bankruptcy or insolvency laws. Prior to such termination, City shall deliver
written notice of its intent to terminate and the grounds therefore, and Contractor
shall have fourteen (14) days to cure said deficiencies to the satisfaction of City;
or
(2) If Contractor fails to obtain or maintain any of the insurance or security
required by this Agreement.
26.2 This Agreement may also be terminated upon mutual written agreement of the
parties at any time provided the termination shall not take effect less than sixty (60)
days after the date of such agreement.
SECTION 27. ENTIRE AGREEMENT. This Agreement, with attachments
incorporated herein by reference, constitutes 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 OF DUBUQUE, IOWA DITTMER R. CYCLING, INC.
By: By:
By:
Michael C. Van Milligen
City Manager
Kevi6 irnstahl
City Clerk
9
By
Sco
oe Rettenmeier, Vice President
ATTACHMENT A
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ATTACHMENT A
1) For the purposes of this Agreement and this Attachment A, the following terms
have the following meanings:
(a) Contractor Processing Fee. The Contractor Processing Fee is the
mutually agreed upon fee per ton for handling, sorting, processing, and
marketing the City's Acceptable Recyclable Materials.
(b) Net Revenue Share. The Net Revenue Share is calculated from the
average per ton value of the City's Acceptable Recyclable Materials
delivered to the Contractor and sold each month as indicated on line 2 of
attachment C.
(c) City Revenue Share. The City Revenue Share is 50% of the Net
Revenue Share as indicated in Section 2 of attachment C.
2) Contactor and City agree to the following apportionment of the City's Acceptable
Recyclable Materials by a percentage of marketed commodities and a
percentage of reasonable accommodated Unacceptable Materials expected to
be landfilled:
(a) Paper (78.37%)
Special News, De-ink Quality (PS-8), 61 .18% chipboard and junk mail
included
Corrugated Containers (PS-11), 17.19%
(b) Rigid Containers and Materials (Metal Cans and Plastic Bottles) (18.04%)
Used Beverage Containers 1 .30%Tin Cans 3.7% (includes
miscellaneous metal: copper, aluminum, steel, empty paint and aerosol
cans, pots, and pans)
PET #1- 5.51 %
HDPE #2- Natural 3.04%
HDPE #2 - Colored 2.03%
#345 Plastic Containers 2.55%
(c) Residual Materials 3.59% (includes cartons, glass, films, hazardous
wastes, and fines)
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3) Contractor will provide processing and marketing services to City for $60 per ton
for the agreed upon apportionment of Acceptable Recyclable Materials and
Unacceptable Materials as stated in Paragraph (1) (the Contractor Processing
Fee).
4) Net Revenue Shares will be distributed to City and Contractor according to the
following percentages and as shown on Attachment C:
(a) 50% to City, and
(b) 50% to Contractor
5) When Acceptable Recyclable Materials are marketed during a month by
Contractor, the apportioned tonnage of that Acceptable Recyclable Materials
delivered during that month will be credited as revenue based on actual sale
receipts received by the Contractor. Upon request, the Contractor will provide
the City actual sale receipts for the products marketed. The value of the City's
Acceptable Recyclable Materials will be included in the Net Revenue Share.
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ATTACHMENT B
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ATTACHMENT C
15
COWMCTORS FMAXCIAL TMNMCTpHS STATEMEHI�
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ATTACHMENT D
17
City of Dubuque Insurance Requirements for Tenants and Lessees of City Property or
Vendors(Suppliers,Service Providers),or Right of Way Permit Holders
Insurance Schedule A
1. shall furbish a signed Certificate of lnsuance lCOp to Me CM of Dubuque,Iowa for
the coverage required In Exhibit I Pnar to contact or lease commencement NI lessees of City Property
and Right of Way PermR Holders shall submit an updated COI annually.Eam Certificate shall be prepared
on Me most combat ACORD form approved by the Department of Insurance or an equivalent Each
certficate shall Include a statement under D¢crgmon of creators as to why Issued.EV Project
N or lease of premises at or construction of ornght of way
Permitted loxton and description
2. At policies of insurance required hereunder shall be vnth a order authorized to do business In Iowa and
all carriers shall haw a rating of A or better In the Conant A.M.eesPS Rating Guide.
3. Each Certificate shall be furnished to the contracting department of the Clty of Dubuque.
0. Failure to provide minimum coverage shall not be deemed a waiver of these requirements by the Udy of
Dubuque. Failure to obtain or maintain the required Insurance shall be considered a material breach of
this agreement.
5. At required endorsements to various follows shall be attached to Certficate of Insurance.
fi. Whenever a specific ISO form is listed,an"bargain form may be subsRuted subject to the provider
identifying and listing in writing all deviators and eadumans that differ from the ISO form.
]. founder shall be required to carry the minimum coverage/lamps,or greater if required by law or other
legal agreement,In Exhibit 1.
8. Wher Weran ISO form is rePerencN Me commit edition of Me form must be used. if produces limns of
liability are higher than the required minimum limits then Me provitle(s limns shall be this agreemmPs
rquiretl limns.
Page 1 of 3 Schedule A Property Or Vendors May 2016
18
City of Dubuque Insurance Requirements for Tenants and Lessees of City Property or
Vendors(Suppliers, Service Providers),or Right of Way Permit Holders
Insurance Schedule A (continued)
Exhibit I
A) COMMERCIAL GENERAL LIABILITY
General Aggregate Gmlt $2,000,000
ProductsCardpletea Operators Aggregate omit $1,008000
Personal and Advertising Injury Limit $1,00Q000
Each Occurrence $1,00Q000
Fire Damage Lung(anyone occurrence) $ 50,000
Medical Payments $ 5,000
a) Coverage shall be writer an an occurrence,not claims made,form.The general liability
coverage shall be written In accord with LSO farm CGDOOl or business owners farm BPDW2.
All reactions from Me standard ISO commercial general liability farm CG NOl,or Business
owners farm Be 0002,shall be clearly Identified.
Id Include ISO endorsement farm CG 2500'Designated Loratoms)General Aggregate Land.-
c)
mlrel Include endorsement bargaining that coverage is primary and non-contributory.
d) Include endorsement to preserve Governmental Immunity(Sample attaUred).
e) Include an endorsement that deletes any fellow employee exclusion.
t)
Include additional insured endorsement ar:
The City of Dubuque,including all its elected and appointed officials,all its employees
and volunteers,all its boards,commissions and/or authorities and their board members,
employees and Volunteers.Use ISI form CG 2010(Ongoing operations)or its
equivalent.
g) IfvmdaruaOzes Trikkes or sagways in the wntluct of business,include an endorsement
renedng that mese vehicles are not excluded from Commercial General tiabNry coverage.
B) WORKERS COMPENSATON&EMPLOYERS IIABILRY
Statutory benefits covering all employees injured On the job by accident or disease as prescribed by
Iowa Code Chapter M as amended.
Coverage Statutory—State of Iowa
Coverage Employers Liability
Each Accident $1W,ono
Each Emplayeeubsease $100p00
Policy Limit Disease $500,000
Polity shall include an encasement providing a waireraf subragaban to the Ory of Dubuque.
C) Pollution Liability Coverage required: yes X no
Panel Liability coverage shall be required if lessee has any pollution exposures including
abatement of haza deal or contaminated materials including,but not limned to,petroleum products,
the removal of lead,asbestas,or Mal Pollution product and complete operations coverage shall
also be covered.
$2,000,000 each occurrence
$0,000p00 policy aggregate
a) Polity to include premHes and transportation coverage.
Id Include additional insured as stated!in At phare.
c) Include preservation of gavernmental immunity as stated in Ad above.
d) Provide evidence of coverage for 5 years after completion of project
Page 2 of 3 Schedule A Property Or Vendors May 2016
19
City of Dubuque Insurance Requirements for Tenants and Lessees of City Property or
vendors(Suppliers,Service Providers),or Right of Way Permit Holders
Preservation of Governmental Immunities Endorsement
1. Nonwaiver of Governmental Immunity.The insurance carrier expressly agrees and states that the
purchase of this policy and the including of the Cry of Dubuque,Iowa as an Additional Insured does
not waive any of the defenses of governmental immunity available to the City of Dubuque,Iowa
under Code of Iowa Section 670.4 as it is now exists and as it may be amended from time to time.
2. Claims Coverage.The insurance carder further agrees that this policy of insurance shall cover only
those claims not subject to the defense of governmental immunity under the Code of Iowa Section
670.4 as it now,exists and as it may he amended from time to time.Those claims not subject to
Code of Iowa Section 670.4 shall be covered by the terms and conditions of this insurance policy.
3. Assertion of Government Immunity.The City of Dubuque,Iowa shall be responsible for asserting any
defense of governmental immunity,and may do so at anytime and shall do so upon the timely
written request of the insurance carrier.
4. Non-Denial of Coverage.The insurance carder shall not deny coverage under this policy and Me
carder shall not deny any of the rights and benefits arming to e City of Dubuque,Iowa
under Mthis policy far reasons of governmental immunity unless and until a court of competent
jurisdiction has ruled in favor of the defense(s)of governmental immunity asserted by the City of
Dubuque,Iowa.
No Other Change in Policy.The above preservation of governmental immunities shall not otherwise
change or after the coverage available under the policy.
SPECIMEN
Page 3 of 3 Schedule A Property Or Vendors May 2016
20