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Ord. 0620 09-23-91ORDINANCE NO. 620 AN ORDINANCE AUTHORIZING AND APPROVING A CONTRACT BY AND BETWEEN CITY OF PEARLAND AND BEST WASTE, INC. FOR THE COL- LECTION OF RESIDENTIAL AND COMMERCIAL SOLID WASTE AND RECYCLING SERVICES. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: SECTION 1. That certain contract by and between CITY OF PEARLAND and BEST WASTE, INC. for collection of residential and commercial solid waste and addendum for processing of recyclables, a facsimile of each being annexed hereto, designated Exhibit "A" hereof and incorpo- rated herein for all purposes are authorized and approved. SECTION 2. That the City Council finds that such agreements are reasonable and necessary, that the fiscal obligation of the City thereunder shall be payable out of budgeted items. SECTION 3. That the Mayor of the City of Pearland, Texas, is hereby authorized and directed to execute for and on behalf of the City the annexed contract documents, and counterparts thereof and the City Secretary is authorized to attest to the signing of said agreement. PASSED and APPROVED on First Reading this the % day of / A. D., 1991. ATTEST: CITY T PAJONES SEC ARY C. V. COPPINGER MAYOR PASSED and APPROVED on Second and Final Reading this 023 day of ,114,00,Z;,-es4,__,.A. D., 1991. ATTEST: PAT JONES CITY SECRET Y APPROVED AS TO FORM: LESTER G. RORICK CITY ATTORNEY C. V. COPPING MAYOR 2 RESIDENTIAL AND COMMERCIAL SOLID WASTE TERVICES CONTRACT THE STATE OF TEXAS COUNTY OF BRAZORIA This agreement made and entered into by and between the CITY OF PEARLAND, a municipal corporation situated in Brazoria and Harris Counties, Texas, acting by and through its Mayor, C. V. Coppinger, hereunto duly authorized, hereinafter referred to as "CITY", and BEST WASTE SYSTEMS, INC., a Texas Corporation, having its principal office located in Galveston County, Texas, acting by and through its President, Robert C. Drenth, hereunto duly authorized, hereinafter re- ferred to as "CONTRACTOR". W ITNESSET H: That City and Contractor, for and in consideration of the mutual covenants herein expressed, do hereby enter into the following Contract for the collection of garbage, trash, and other refuse within the corporate limits of City and for the collection and processing of recyclables in accordance with the addendum hereof. I. The initial term of this Contract shall be for a period of FIVE (5) YEARS commencing on and including OCTOBER 1, 1991, and continuing through and including SEPTEMBER 30, 1996. II. It is hereby agreed, understood and contracted that the Contractor shall do and perform the following acts: A. Residential collection and disposal using plastic or paper bags provided by user and designed to store refuse with sufficient wall strength to maintain physical integrity when lifted by the top. Total weight of a bag and its contents shall not exceed 50 pounds. 1. Contractor shall twice each week pick up from each residence in the City all normal and usual household waste products as may be placed in approved bags for collection purposes and containing usually a mixture of putrescible, non-putresci- ble, combustible, and incombustible materials, such as organic wastes from food preparation and consumption, wrap- ping and packaging materials, metal, glass, and plastic containers and other items. 2. Prior to the effective date of this Contract, Contractor shall file with City a schedule for residential collections. After initial rendering of service, Contractor may designate different days in the week for pickup service, provided he first so advises the City Council at a regular meeting of the City Council TWO (2) WEEKS prior to the effective date of such change. Any such change shall be made so that not more than SIX (6) DAYS elapse between garbage pickups. Provided further, that there shall be no residential garbage pickup on Sunday except by mutual consent of parties. City and Contractor agree that SIX (6) MONTHS from the effective date hereof, there shall take place a review of the matter of the Wednesday/Saturday residential garbage pickup. The parties agree to meet at a time and place, then to be determined, and to consider the positive and negative aspects of the said pickups. Any changes, however, to this document which may be deemed appropriate shall be affected only by amendment hereof. 3. Contractor shall pick up twice each week at any suitable "curbside" location. Curbside is defined as any location upon the lot or yard of the residence which is within FIVE (5) FEET of the roadway surface which affords the principal means of access to such residential lot. Provided, however, that Contractor shall make a reasonable accommodation for those persons, who, by reason of age or infirmity, cannot place materials for pickup at a curbside location. Applica- tion for disability exemption should be made in writing to Contractor. 4. City will provide the bulk waste and/or heavy pickups. As used herein, bulk waste and/or heavy pickups shall mean those items which cannot be placed in a bag conforming with the requirements of paragraph II.A. hereof. B. Small commercial collection and disposal. 1. Contractor shall, twice each week, pick up from each small commercial establishment in the City and dispose of the contents of FIVE (5) garbage bags or containers not to exceed THIRTY-TWO (32) gallons in size or FIFTY (50) pounds in weight. 2. For the purposes of this agreement, a "small commercial" establishment shall mean multi -family dwellings or commercial business establishments which are ordinarily incapable of generating volumes of garbage in excess of those volumes described in paragraph one next above. 3. Contractor commercial defined as commercial shall pick up twice each week for small at any suitable "curbside" location which is any location upon the lot or yard of the small establishment which is within FIVE (5) ET of 2 the roadway surface which affords the principal means of access to such small commercial establishment. Contractor may decline to collect any garbage not so placed, provided, however, that Contractor shall make a reasonable accommodation for those persons, who, by reason of age or infirmity, cannot place materials for pickup at a curbside location. C. Large commercial collection and disposal for permanent or temporary service. 1. Contractor shall provide garbage collection services to large commercial establishments for any and all temporary or permanent collection of garbage, trash, refuse, and construction debris within the corporate limits of the City in conformance with provisions of this Contract. Garbage collections by Contractor pursuant hereto shall be made by the use of two, three, four, six, or eight cubic yard dumpsters or twenty, thirty, or forty cubic yard roll -offs. All dumpsters and roll -offs provided for herein shall be supplied by Contractor and Contractor's local telephone num- ber shall be displayed in a clear and legible manner. All such dumpsters and roll -offs shall be covered and maintained in good and nuisance -free condition. 2. For the purposes of this Agreement, large commercial shall mean every multi -family dwelling, commercial establishment, or other non -single family residential establishment ordinarily capable of generating a larger volume of garbage than that volume described in Subsection B above. 3. It shall be the duty and responsibility of Contractor to contact each and every business, organization, or other non - single family residential establishment to determine the classification and garbage collection and disposal service needs of each such establishment. If large commercial service is required, Contractor shall provide the size and number of pickups for such dumpsters or roll -offs. It is hereby agreed and understood that Contractor shall be entitled to pursue with large commercial customers a collection schedule which would provide for the fewest number of pickups per week with the largest practical container; provided, however, large commercial establishments generating putrescible garbage or refuse shall receive a minimum of twice -a -week pickup. Upon obtaining information regarding the requirements for large commercial customers, including size and number of dumpsters or roll -offs and frequency of pickups, Contractor shall produce such information to the City Manager of the City. City and Contractor agree that the City Manager of the City shall have the authority to delete or add commercial establishments, number of pickups, or volume of pickups as required due to growth and development within City. Contractor agrees that garbage collection services 3 shall be provided in the manner set forth in such additions or deletions within SEVEN (7) DAYS of written notice thereof. D. In determining the collection requirements for all establishments, whether small commercial or large commercial, Contractor shall be entitled to examine City's records of customer accounts for water and sewer service. Contractor agrees that such commercial collections will be consistent with City's water billing for garbage collection along with water and sewer services billing. In the event Contractor and a commercial establishment are unable to agree on collection requirements consistent with City's water and sewer service accounts, an alternative collection procedure may be established with the approval of the City Manager of the City. E. Contractor shall maintain his own answering service to track and follow-up on collection misses and complaints. Contractor shall provide for the pickup of collection misses within TWENTY-FOUR (24) HOURS. Each miss or complaint shall be recorded on a complaint form approved by City and a copy of a complaint log shall be provided to the City on a monthly basis before the first Wednesday of each month. F. Garbage collection services required hereunder shall not be re- quired on recognized holidays, but when a normal pickup is missed because of a holiday, Contractor shall pick up as much as twice the normal amount on the next pickup day. Recognized holidays are January 1, July 4, Labor Day, Thanksgiving Day, December 25, and Memorial Day. G. Contractor shall maintain in full force and effect during the term of this Contract, Workers' Compensation insurance in accordance with the Workers' Compensation Statutes of the State of Texas, and Public Liability, Employer's Liability, and Property Damage Insurance, including contractual liability coverage for the indemnity provision of the Contract in a form acceptable to the City Attorney for the benefit of third persons who may be injured or damaged as a result of any negligent operation or other wrongful conduct of Contractor in the performance of his work under this Contract. All insurance shall be by an insurance company licensed to do business in the State of Texas for policy limits acceptable to City, and the City shall be named as an additional insured at no cost to the City. Prior to the commencement of this Contract, Contractor agrees to furnish City with certificates of insurance to the effect that such insurance has been procured and is in force. Notice of cancellation of such policies shall be given to City not less than THIRTY (30) days prior to the cancellation date. For the purpose of this Contract, Contractor shall carry the fol- lowing types of insurance in at least the limits as specified below: 4 Coverages Workers' Compensation Employer's Liability Bodily Injury Liability Except Automobile Property Damage Liability Except Automobile Automobile Bodily Injury Liability Automobile Property Damage Liability Excess Umbrella Liability Limits of Liabilitv Statutory $ 500,000 $ 500,000 each occurrence 1,000,000 aggregate $ 500,000 each occurrence 1,000,000 aggregate $ 500,000 each person 1,000,000 each occurrence $ 500,000 each occurrence $2,000,000 each occurrence Failure of Contractor to obtain and maintain insurance in the above specific amounts shall constitute a breach of this Agreement. Contractor shall protect, indemnify and save City harmless from and against all claims, demands and causes of action of every kind and character, including attorneys' fees, arising in favor of Contractor's employees, City's employees, and third parties on account of, resulting from, the performance of services hereunder, by Contractor or Contractor's agents, representatives, or employees, as well as dam- ages proximately caused by City's own negligence. Contractor shall be responsible for all damages sustained by the Contractor to his equipment utilized in the performance of services hereunder. H. Contractor shall furnish his own dumping grounds which shall be at a State of Texas approved landfill site, and means of dispos- ing of garbage, trash, and rubbish so collected shall be disposed of outside the corporate limits of City. I. Contractor shall use covered trucks that meet State of Texas safety requirements and are suitably designed to keep trash or garbage from falling or blowing from the trucks in transit to the disposal site. Contractor's employees shall not spill or leave garbage or rubbish on streets or private property when making pickups, and if spilled, Contractor shall clean before leaving the premises or area. J. Contractor shall provide service to all municipal facilities and events at Contractor's expense. The subject municipal facilities and usual events are outlined at Exhibit "A" and may, from time to time, be amended. K. Contractor shall provide its service between the hours of 7:00 o'clock A. M. and 5:00 o'clock P. M., and on Saturday from 7:00 o'clock A. M. to 1:00 P. M. and its business office shall remain open during such period of time to receive calls from 5 complaints or missed pickups every Monday through Saturday which is not one of the official holidays listed above. L. City may, at its sole option, designate areas such as subdivisions adjoining the City or areas annexed to the City during the time of the Contract, to receive the collection services to be provided hereunder by giving written notice to Contractor of the City's desire to have such areas served, and Contractor shall initiate service within such newly annexed areas within THIRTY (30) DAYS of receipt of such notice. Contractor shall maintain throughout the term of this Contract a faithful performance bond running in favor of City, written by a corporate surety licensed to do business in the State of Texas, in the penal sum of FIVE HUNDRED THOUSAND ($500,000) DOLLARS conditioned that Contractor shall well and truly observe, fulfill, and perform each and every term and condition of this Contract and that in the event of any breach of condition of the Bond the amount thereof shall be recoverable, jointly and severally, from the principal and surety thereof by City for all damages, plus reasonable attorney's fees and court costs, proximately resulting from the failure of Contractor to well and faithfully observe and perform any provision of this Contract. Contractor shall pay all premiums chargeable for the Bond and shall keep the same in force and effect at all times throughout the existence of this Contract and thereafter until Contractor has liquidated all of its obligations with the City that may have arisen from the acceptance of this Contract by Contractor or from the exercise of any right, or privilege granted hereunder. The Bond shall contain a provision that it shall not be canceled or otherwise allowed to expire without THIRTY (30) DAYS' prior written notice to that effect being given to City by delivery to the City Secretary, and to the Contractor. The Bond shall be in a form satisfactory to the City Attorney and shall be filed, together with written evidence of payment of the required premiums, with the City Secretary during the term of this Contract. Neither the provisions of this section, the filing of the required hereby, nor any damages recovered by the City thereunder shall be construed to excuse faithful performance by Contractor or limit the liability of Contractor under this Contract or for damages to the full amount of the Bond or otherwise. IV. No portion of this Contract may be assigned by Contractor without the express written consent of the City Council. V. A. Payments by City. 1. In consideration for the services rendered by Contractor 6 under this agreement, City shall pay to Contractor a monthly fee for each residential and/or commercial customer billed from which garbage is picked up within the City based upon the collection fee schedule set forth in Exhibit "B", a copy of which is attached hereto. City agrees to pay Contractor in current funds. 2. Payment for services rendered shall be made on or before the 20th day of the month following the month for which such services are rendered. Contractor agrees that the City will deduct a sum of $1.00 per residential customer and $1.50 per commercial customer billed each month as a processing fee. B. Changes in collection rates. 1. Contractor and City hereby agree that the schedule of fees for such garbage collection and disposal service as provided in Exhibit "B" hereto shall be binding upon both parties for the two-year period following execution of this Contract, that is from OCTOBER 1, 1991 through SEPTEMBER 30, 1993. In the event Contractor determines, thereafter, that an increase in such collection fees is required due to escala- tion of Contractor's cost in providing such service, then Contractor shall submit, in writing, to City on or before JUNE 1, of any year, its proposal for increased fees and all supporting data related thereto. If the City Council of City fails to approve or disapprove such increase in fees prior to AUGUST 1, then such proposed increase in fees shall take effect on OCTOBER 1. In the event the City disapproves such proposed fees, or approves an increase of an amount less than that proposed by Contractor on or before AUGUST 1, then Contractor shall be entitled to terminate such Contract effective SEPTEMBER 30, by serving written notice of same to City on or before SEPTEMBER 1. If the City disapproves or approves an increase in fees pursuant to this Section and Contractor does not serve written notice of termination on or before SEPTEMBER 1, then such schedule of fees then in existence or approved by the City Council of City as a result of a request for an increase shall be binding upon Contractor and City for the year following the anniversary date of this Contract, that is from OCTOBER 1, through SEPTEMBER 30. VI. City and Contractor agree that City shall have the option to extend the terms and conditions of this Contract for an additional period of FIVE YEARS, that is, from OCTOBER 1, 1996 through SEPTEMBER 30, 2001 upon written notice of same by City to Contractor on or before JUNE 1, 2001. In the event City elects to exercise such option to extend this Contract as provided next above, City and Contractor agree that Contractor shall be entitled to exercise its option to increase its fees for garbage collection and disposal services in the same manner and subject to the same time schedule as provided in 7 Section V. next above; to wit: To increase the fees for garbage collection and disposal services for any OCTOBER 1, through SEPTEMBER 30, period, Contractor shall submit a request on or before JUNE 1, of such one-year period. Council shall disapprove or approve all or part of such proposed increase on or before the FIRST DAY of AUGUST preceding such one-year period, and if Contractor desires to terminate this Conract due to such Council action, same shall be served in writing to the City on or before the FIRST DAY of SEPTEMBER preceding such one-year period. VII. Upon the breach of any portion of this Contract, City shall have the right to terminate this Contract. Any such termination or cancellation shall be by Resolution adopted by the City Council; provided however, before any such Resolution is adopted, Contractor must be given at least THIRTY (30) DAYS' advance notice, which notice shall set forth the causes and reasons for the proposed termination and cancellation, shall advise Contractor that it will be provided an opportunity to be heard by City Council regarding such proposed action before any such action is taken, and shall set forth the time, date, and place of the hearing. In no event shall such hearing be held less than THIRTY (30) DAYS following such written notice to Contractor. Failure of Contractor to perform pursuant to this Contract shall be permitted if due to war, insurrection, riot, strike, Act of God, or any other cause or causes beyond the Contractor's control. If the Contractor fails to perform within any consecutive thirty (30) day period, the City may, at its option and after written notice to Contractor, terminate this agreement. In any event, the City retains all authority necessary to public health, safety and welfare in the event of Contractor's failure to perform for any reason. In addition to any other remedies for breach, City shall be entitled to recover reasonable attorney's fees by reason of Contractor's breach hereof. VIII. It is understood and agreed between the parties that while the governing body of City has current funds appropriated for its performance during the current fiscal year, City may not bind future governing bodies of City for appropriations during future fiscal years; and that failure of a future governing body to appropriate then current funds in future fiscal years pursuant to this Contract shall not be deemed a breach hereof by City. City may, upon prior written notice to Contractor effective SIXTY (60) DAYS after the giving of such notice or upon the exhaustion of appropriations authorized for the then current fiscal year, whichever is later, terminate this Agreement. 8 IX. Where written notices are provided for in this Contract, same shall be sufficient to notify Contractor if mailed by certified mail to: BEST WASTE SYSTEMS, INC. P. 0. BOX 337 DICKINSON, TEXAS 77539-0337 Same shall be sufficient to notify City if mailed by certified mail to: THE CITY OF PEARLAND P. O. BOX 2068 PEARLAND, TEXAS 77588-2068 It is further mutually agreed that this, the original of this Contract, with all attachments, upon execution shall be filed and kept in the office the City Secretary of the City, City Hall, 3519 Liberty Drive, Pearland, Texas, where it shall be available for use and reference by either party hereto at all reasonable times. X. This Contract shall be in full force and effect and binding upon each party on the date of execution hereof. In witness hereof, Co tractor and City have executed this Contract this .. 3 day of / , 1991. CITY OF PEARLAND, TEXAS ATTEST: PAT JONES CITY SEC TARY ATTEST: in,.,c-0 Q .e- THOMAS A. EVENHOUSE CORPORATE SECRETARY 9 By: ?/l/�/�%Y°�7 C. V. CO NGER, MAYOR BEST WASTE SYSTEMS, INC. By: ROBERT C. DRENTH, PRESIDENT EXHIBIT "A" CITY FACILITIES 1. City Hall/Community Center; 2. Independence Park (including swimming pool and pavilion); 3. Public Safety Building; 4. Melvin Knapp Activity Building; 5. Animal Shelter; 6. City Barn/Fire Station; 7. EMS Building/Recycling Center. CITY EVENT& 1. Community Clean Up Days (maximum of three per year); 2. City Annual Picnic; 3. Annual Easter Egg Hunt. EXHIBIT "B" CITY OF PBARLAND PRICE LIST EFFECTIVE October 01, 1991 RESIDENTIAL COLLECTION FOR HOUSEHOLD GARBAGE, BAGS ONLY (PRICES INCLUDE CITY'S FRANCHISE FEE) $ 7.15/Month for no limit per week per residence - bags only. SMALL COMMERCIAL COLLECTION For small businesses that need no dumpster service such as: dry cleaners, doctors or real estate offices, barber shops, beauty shops, etc... $23.50/Month for twice a week pick-up with curb service. [Maximum of five (5) thirty-two (32) gallon containers] MONTHLY FEE FOR COMMERCIAL OR BUSINESS CONTAINER PICKUP Fee for a TWO (2) Cubic Yard Container 1 pickup per week $ 41.50 2 pickups per week $ 60.50 Pee for a THREE (3) Cubic Yard Container 1 pickup per week $ 50.50 2 pickups per week $ 76.50 Fee for a FOUR (4) Cubic Yard Container 1 pickup per week $ 58.50 2 pickups per week $ 89.50 3 pickups per week $120.50 Fee for a SIX (6) Cubic Yard Container 1 pickup per week $ 72.50 2 pickups per week $119.50 3 pickups per week $151.65 4 pickups per week $201.70 5 pickups per week $251.76 6 pickups per week $301.81 Fee for an EIGHT (8) Cubic Yard Container 1 pickup per week $ 85.50 2 pickups per week $146.50 3 pickups per week $201.70 4 pickups per week $268.44 5 pickups per week $335.18 6 pickups per week $401.91 Fee for a Commercial or Business Establishment Using a Roll -off Container Delivery Fee (One-time Charge) $ 75.00 Rental Fee for Permanent Use per Month $100.00 Rental Fee for Temporary Use per Day $ 6.00 20 Cubic Yard Roll -off Container per Pickup $241.50 30 Cubic Yard Roll -off Container per Pickup $266.50 40 Cubic Yard Roll -off Container per Pickup $291.50 Fee for Compactor 28 Cubic Yard Compactor per Pickup $281.50 40 Cubic Yard Compactor per Pickup $297.50 Front Load Compacted Trash per Cubic Yard $ 7.00 RESIDENTIAL RECYCLING ADDENDUM TO RESIDENTIAL SOLID WASTE CONTRACT THIS AGREEMENT made and entered into at Pearland, Texas, as of the FIRST day of OCTOBER, 1991, by and between the CITY OF PEARLAND, a Municipal Corporation of Brazoria and Harris Counties, Texas, herein- after referred to as "CITY", and BEST WASTE SYSTEMS, INC., a Texas Corporation, its successors and assigns, hereinafter referred to as "CONTRACTOR": WITNESSET H: I. SCOPE OF WORK AND CONTRACT The work to be done by Contractor pursuant to this Agreement consists of collecting and processing recyclables, at its own cost and expense, from every building used for residential purposes within the corporate limits of City as the present and future boundaries exist, and the furnishing of all labor, methods or processes, tools, equipment, and transportation necessary to meet the requirements of this Agreement. All collection and processing of recyclables contemplated hereunder shall be done and performed by Contractor promptly, in a good, thorough, workmanlike and efficient manner to the complete satisfaction of the City. II. DEFINITIONS AND DESCRIPTIONS Whenever, in this Agreement, the following terms are used, they shall be defined as follows: Glass Containers - Glass containers shall mean waste and scrap glass in various colors (i.e., flint or clear, green, and amber) which has been rinsed and is reasonably clean. The glass shall pot be broken por contain: - metals such as aluminum caps, steel lids, lead collars or light bulb filament; - ceramics such as cups, dishes and ovenware; - stones and dirt; - plate or window glass; - heat -resistant glass, such as Pyrex; or - lead -based glass such as crystal or television tubes. Old Newspaper ("ONP") - ONP shall mean newspaper containing less than FIVE PERCENT (5%) paper other than news and not more than the normal percentage of rotogravure and colored sections. Papers should LIDI be tied or strapped together. ONP should be neatly stacked or in a bag alongside, on top of, or under the recycling collection bin. Plastic Bottles - Plastic bottles shall mean plastic milk or water jugs (high density polyethylene or HDPE). Caps shall be removed and the bottles rinsed and reasonably clean before placing in the recycling container. Recvclableg - Includes ONP, UBC, Glass Containers, and Plastic Bottles. Residential Unit - A dwelling within the corporate limits of City occupied by a person or group of persons comprising not more than four families. A residential unit shall be deemed occupied when either water or domestic light and power service are being supplied thereto. A condominium dwelling, whether of single or multilevel construction, or separate single-family dwelling units, including mobile homes, shall be treated as a residential unit, except that each single-family dwelling within any such residential unit shall be billed separately as a residential unit. Used Beverage Cans ("UBC") UBC shall mean all aluminum beverage containers which are placed singly, empty, and reasonably clean in the bin for recycling. III. COLLECTION Contractor shall pick up all residential recyclables from every building used for residential purposes in City, once each week, except when a holiday occurs during such week (in which event the pickup scheduled for that week shall be postponed until the next week) and except for emergencies resulting from Acts of God. Contractor shall utilize a single plastic bin for resident's use in the collection of recyclables. The recycling bins shall remain the property of Contractor. The Contractor shall replace a recycling bin at no charge to the resident if the recycling bin has been damaged through no fault of the resident. If a resident loses his recycling bin, replacement bins can be purchased by citizens at a price of SIX DOLLARS ($6.00) per bin. Each container shall be placed at curbside for collection. Curbside refers to that portion of the right-of-way adjacent to and not exceeding FIVE (5) FEET from paved or traveled portions of City roadways, including alleys. Containers shall be placed within FIVE (5) FEET of the roadway, as practicable without interfering with or endangering the movement of vehicles or pedestrians. If construction work is being performed in the right-of-way, then containers shall be placed as close as practicable to an access point for the collection vehicle. Provided, however, that Contractor shall make a reasonable 2 accommodation for those persons, who, by reason of age or infirmity, cannot locate a container at curbside within the foregoing definition. It shall be the responsibility of the residents to place recycl- ables at the proper location at or before 7:00 A. M. on their regularly scheduled pickup day. IV. RIGHT TO ALTER RECYCLABLES COLLECTED If, at any time, the City or Contractor determines that additional recyclable materials are economically feasible to include in the recycling program, City or Contractor reserves the right to negotiate the addition of said items to the list of recyclable mate- rials and a corresponding adjustment in the compensation will be negotiated. Likewise, if any item becomes unfeasible to continue in the recycling program due to lack of volume, lack of adequate market pricing, or poor quality of items received, City or Contractor reserves the right to exclude or discontinue said item from the recycling program with appropriate adjustment in the contractual con- sideration. Contractor does not guarantee the existence of a market or a buyer at any time for recyclable materials. V. EQUIPMENT Contractor will furnish, during the period of this Agreement, a sufficient number of recycling -type trucks, with sufficient operators and workmen for each, to collect recyclables in City from residential - type customers, and adequate equipment to process said recyclables. All equipment shall be in good working order condition. All equipment shall be inspected and approved by City before the execution of this Agreement. All equipment shall bear the name of Contractor and Contractor's local telephone number which shall be displayed on such equipment in a clear, legible manner. VI. OFFICE HOURS Contractor shall maintain an office at some fixed place and shall maintain a telephone at such office listed in the telephone directory in the name of its company, and shall at all times between the hours of 7:00 A. M. and 5:00 P. M. of each day, excepting Saturday afternoons, Sundays, and holidays, have some responsible person at such office with whom the public, the City Council or other responsible City official or employee may communicate, discuss and refer any complaint arising in connection with such recycling services. Complaints shall be investigated promptly and appropriate 3 action taken. The telephone for Contractor shall be on a toll -free exchange to all residents and departments of City and listed in each telephone directory in which each portion of City is included. VII. Contractor shall maintain in full force and effect during the term of this Agreement, Workers' Compensation insurance in accordance with the Workers' Compensation Statutes of the State of Texas, and Public Liability, Employer's Liability, and Property Damage Insurance, including contractual liability coverage for the indemnity provisions of this Agreement in a form acceptable to the City Attorney for the benefit of third persons who may be injured or damaged as a result of any negligent operation or other wrongful conduct of Contractor in the performance of his work under this Agreement. All insurance shall be by an insurance company licensed to do business in the State of Texas for policy limits acceptable to City, and the City shall be named as an additional insured at no cost to the City. Prior to the commencement of this Agreement, Contractor agrees to furnish City with certificates of insurance to the effect that such insurance has been procured and is in force. Notice of cancellation of such policies shall be given to City not less than THIRTY (30) DAYS prior to the cancellation date. For the purpose of this Agreement, Contractor shall carry the following types of insurance in at least the limits as specified below: Coverages Workers' Compensation Employer's Liability Bodily Injury Liability Except Automobile Property Damage Liability Except Automobile Automobile Bodily Injury Liability Automobile Property Damage Liability Excess Umbrella Liability Contractor shall protect, and against all claims, demands character, including attorneys' employees, City's employees, Limits of Liability Statutory $ 500,000 $ 500,000 1,000,000 $ 500,000 1,000,000 $ 500,000 1,000,000 each occurrence aggregate each occurrence aggregate each person each occurrence $ 500,000 each occurrence $2,000,000 each occurrence indemnify and save City harmless from and causes of action of every kind and fees, arising in favor of Contractor's and third parties on account of, 4 resulting from, the performance of services hereunder by Contractor or Contractor's agents, representatives, or employees, as well as damages proximately caused by City's own negligence. Contractor shall be responsible for all damages sustained by the Contractor to his equip- ment utilized in the performance of services hereunder. City may, at its sole option, designate areas such as subdivis- ions adjoining the City or areas annexed to the City during the time of this Agreement, to receive the collection services to be provided hereunder by giving written notice to Contractor of the City's desire to have such areas served, and Contractor shall initiate service within such newly annexed areas within THIRTY (30) DAYS of receipt of such notice. VIII. REPORTS Contractor shall submit periodic reports and special reports to the City as may be deemed reasonable. Contractor agrees to furnish a monthly report on all recycling collection to the City showing the weight of recyclables collected and sold; the market price per ton; and the name and address of the end user. City may review Contractor's records and reports on service during regular office hours. IX. ASSIGNMENT This Agreement shall not be assigned or transferred without the written consent of the City Council, nor shall any subcontractor be recognized or dealt with by the City Council or any of the persons chargeable with the enforcement of this Agreement. X. DEFAULTS The breach of any of the terms and/or conditions of this Agreement on the part of Contractor which are not remedied within THREE (3) WORKING DAYS after notice from City, unless performance is prevented by Acts of God, or in the event of bankruptcy proceedings by Contractor, shall be grounds for cancellation by City. Upon such termination, City shall be at liberty to relet the work to other parties or to undertake directly the performance of said work. In either case, Contractor and his surety shall be liable for any excess cost occasioned to City over and above that which would have been due and payable to Contractor under the terms of this Agreement. Termination of this Agreement as herein provided shall not terminate, suspend or affect the liability of Contractor. 5 xI. COMPLIANCE WITH ALL LAWS Contractor agrees to conform to and abide by all the rules, regulations and ordinances of City governing the collection and processing of recyclables. Contractor further agrees, when recyclables are transported to or through any city or unincorporated territory of any county, to conform to and abide by all the rules, regulations and ordinances of the city or county governing the hauling and processing of said recyclables. Contractor agrees to collection of recyclables, residential unit per month, the basic residential rate. pay Contractor ONE DOLLAR residential unit. XII. COMPENSATION receive and accept for the curbside ONE DOLLAR AND NINETY CENTS ($1.90) per billed monthly in advance in addition to As additional consideration, City shall AND NINETY CENTS ($1.90) per occupied Contractor further agrees to process, store, and market the recyclable materials to an end user. The processing shall include: removal of contaminates from newspapers; separation of glass by color; separation and flattening of aluminum cans; and separation and baling of plastic bottles. Contractor shall forward by 20TH of Following Month any and all proceeds from the sale of the recyclable materials to City. The above rates for recycling services shall remain in effect for an initial period of TWO (2) YEARS at which time the City and Contractor shall renegotiate rates annually for the remaining term of this Agreement. Contractor will be required to submit all data and information supporting all price changes to the City Council for approval. Failure of City and Contractor to reach an agreement on negotiated prices will authorize City to declare this Agreement of no further force or effect. XIII. TERM The term of this Agreement shall be for the period commencing on and including the FIRST DAY OF OCTOBER, 1991 and expiring FIVE YEARS later on SEPTEMBER 30, 1996. After the expiration of the initial FIVE YEAR TERM, this Agreement may be negotiated for additional FIVE YEAR TERMS, with the mutual consent of both parties. 6 XIV. CONTRACTOR'S DUTIES For and in consideration of the payments and agreements herein mentioned to be made and performed by City and under the conditions expressed in this Agreement and hereunto annexed, Contractor agrees with City, at its own cost and expense, to collect and process residential recyclables in City in accordance with the terms and conditions of this Agreement. Furthermore, Contractor agrees to provide the materials and services as listed herein. XV. HOURS Contractor shall pick-up all residential recyclables throughout City and shall service all residential customers wherever located in City, except where service has not been requested. Recycling services shall be extended between the hours of 7:00 A. M. and 5:00 P. M. only, except upon mutual agreement by City and Contractor that an exception is necessary in order to complete an existing collection route due to unusual circumstances. XVI. ROUTES Collection routes shall be established by Contractor. Contractor shall submit a map designating the collection routes to City for approval. Contractor shall be required to publish collection routes in the local newspapers or in any other City approved manner prior to beginning this Agreement. Contractor may, from time to time, propose to City for approval, changes in routes or days of collection. XVII. HOLIDAYS The following shall be holidays for the purposes of this Agremeent: New Years Day Labor Day Memorial Day Thanksgiving Day Independence Day Christmas Contractor may decide to observe any or all of the above mentioned holidays by suspension of collection service on the holiday. Recycling service will be performed on the next scheduled pickup day. 7 XVIII. COMPLAINTS All complaints shall be made directly to Contractor and shall be given prompt and courteous attention. In the case of allegations of missed collections, Contractor shall investigate and, if such allegations are verified, shall arrange for the collection of recyclables not collected within twenty-four (24) hours after the complaint is received. XIX. MISCELLANEOUS Hauling. All recyclables hauled by Contractor shall be so contained or enclosed that leaking, spilling, or blowing are prevented. Non discrimination Contractor shall not discriminate against any person because of race, sex, age, creed, color, religion or national origin. Notification. Contractor shall notify all customers about complaint procedures, rates, regulations, and days for scheduled re- cyclables collection. Point of een Contractor andCityshall l bee$ directed cbytaContractor tocts, etc. theCity Manager. Any notices required to to the parties when mailed, following respective address: WHEN TO THE CITY: XX. NOTICES be given hereunder shall be deemed given postage prepaid, to the parties at the CITY OF PEARLAND P. 0. BOX 2068 PEARLAND, TEXAS 77588-2068 WHEN TO THE CONTRACTOR: BEST WASTE SYSTEMS, INC. P. O. BOX 337 DICKINSON, TEXAS 77539-0337 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. 8 ATTEST: PAT JONES CITY SECRE ATTEST: THOMAS A. EVENHOUSE CORPORATE SECRETARY 9 CITY OF PEARLAND, TEXAS By: C. V. COP MAYOR BEST WASTE SYSTEMS, INC. By: £C0 ¢e.T e• ROBERT C. DRENTH PRESIDENT