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R-2013-182 2013-12-09RESOLUTION NO. R2013-182 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AMENDING A SOLID WASTE AND RECYCLING CONTRACT WITH WASTE MANAGEMENT OF TEXAS. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain amended contract by and between the City of Pearland and Waste Management of Texas, a copy of which is attached hereto as Exhibit "A" and made a part hereof for all purposes, is hereby amended. Section 2. That the City Manager or his designee is hereby authorized to execute and the City Secretary to attest a contract with Waste Management of Texas for solid waste and recycling services. PASSED, APPROVED and ADOPTED this the 9th day of December, A.D., 2013. ATTEST: APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY )014) TOM REID MAYOR Resolution R2013-182 Exhibit "A" SECOND AMENDMENT TO EXCLUSIVE COMMERCIAL AND RESIDENTIAL SOLID WASTE AND RECYCLING CONTRACT This "SECOND AMENDMENT TO EXCLUSIVE COMMERCIAL AND RESIDENTIAL SOLID WASTE AND RECYCLING CONTRACT" (this "Second Amendment") is entered into as of the 9th day of December , 2013, by and between the CITY OF PEARLAND, TEXAS ("CITY"), and WASTE MANAGEMENT OF TEXAS, INC. ("CONTRACTOR"), a Texas corporation. WITNESSETH: WHEREAS, the CITY and CONTRACTOR have previously entered into a certain Exclusive Commercial and Residential Solid Waste and Recycling Contract, dated on or about October 1, 2006 and a First Amendment to that Contract ("First Amendment") entered into on April 25, 2011 (collectively, the "Contract"), whereby CONTRACTOR agreed to provide certain waste and recycling collection and processing services to the CITY and its residents and commercial businesses as more particularly set forth in the Contract; and WHEREAS, the CITY has requested that CONTRACTOR purchase and deliver wheeled polycarts to each Residential Unit for collection of Recyclable Materials. WHEREAS, the CONTRACTOR is willing to invest the capital needed to purchase and deliver approximately 27,000 recycling polycarts to the City's residents and new Residential Units constructed during the Agreement on the terms set forth below; WHEREAS, the parties have agreed to amend the Contract, as more particularly set forth below. NOW, THEREFORE, for and in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and confessed, the parties hereto agree as follows: 1. Section 1 of the First Amendment is hereby replaced by the following language: 1. The term of the Contract is extended from September 30, 2016 to September 30, 2021. After the expiration of the term, this Contract may be extended for an additional successive five year term, if mutually agreed to by both the CITY and the CONTRACTOR on terms acceptable to both, in each party's sole discretion, and agreed to at least 180 days before the expiration of the term. 2. The definition of "Recycling Container" set forth in Section 2.35 of the Contract is hereby revised as follows and a new definition of "Recycling Bin" shall be added to the Agreement as follows: 2.35 Recycling Container: A rubber or plastic -wheeled polycart with a maximum capacity of 96 gallons constructed of plastic, metal and/or fiberglass, designed for automated or semi -automated solid waste or recyclable material collection systems, and having a tight fitting lid capable of preventing entrance into the container by small 1 animals. The weight of the Recycling Container and its contents shall not exceed 175 lbs. 2.35A Recycling Bin or Bin: An approximately 18 -gallon plastic receptacle with no lid, designed for the purpose of curbside collection of Recyclables Materials. 3. The parties agree to add the following new section to Section 7.01, Article VII of the Contract entitled "Collection Services" as set forth below: 7.01.d.(i) CONTRACTOR will deliver one Recycling Container (i.e., plastic or rubber - wheeled polycart) to each Residential Unit located within the City no later than 120 days after this Amendment is fully executed by the parties. CONTRACTOR has no obligation to deliver Recycling Containers to those Residential Units that already have a Contractor issued Recycling Container (i.e., polycart) due to their participation in the recycling polycart pilot program. CONTRACTOR will provide the CITY with CONTRACTOR's Recycling Container delivery schedule as soon as reasonably practical. 7.01.d.(ii) The CITY, at its cost, agrees to provide notice and educational materials to Residential Units regarding the changes in the residential recycling program prior to the date that CONTRACTOR begins delivering the Recycling Containers to Residential Units for use. The CONTRACTOR agrees to collaborate with the CITY, as requested, on the materials and notice to be provided to Residential Units and to be available to participate in community educational meetings pertaining to the new program. The CONTRACTOR agrees that the Recycling Containers that it delivers to Residential Units pursuant to this Amendment will contain Recyclable Materials information on the outside of the Recycling Container lid. 4. Section 7.01.c.(ii) of the Contract is hereby superseded and replaced by the following: 7.01.c.(ii) CONTRACTOR shall provide one (1) Recycling Container per Residential Unit. The Recycling Containers shall remain at the location of the Residential Unit where delivered by CONTRACTOR. The Recycling Container shall remain the property of CONTRACTOR. The Customer shall be responsible for all loss or damage to the Recycling Container, except for normal wear and tear or for loss or damage resulting from Contractor's negligence or handling of the equipment. The CONTRACTOR shall maintain or repair the Recycling Containers. Additional Recycling Containers are available for Residential Unit Customers at the monthly rate set forth in Exhibit A attached hereto and incorporated fully herein. In the event a Residential Unit Recycling Container should be lost or stolen, CONTRACTOR agrees to replace such lost or stolen Recycling Container at the rate reflected in Exhibit A, which City shall pay to CONTRACTOR. CONTRACTOR shall deliver Recycling Containers to Customers requesting additional or replacement Recycling Containers within fourteen (14) days of the request or on mutually agreed upon days of the month (i.e., twice per month). 5. The parties agree to add the following new subsection 7.01.c.(v) to Article VII of the Contract as set forth below: 7.01.c.(v) Residential Unit Customers must place all Recyclable Materials in the Recycling Container and/or Recycling Bin for collection by CONTRACTOR. Recycling 2 Containers or Bins shall be placed by the Customer of a Residential Unit in a location that is readily accessible to CONTRACTOR and its collection equipment, not to exceed three (3) feet from the curb or edge of the travel portion of the street, road, or alley, and not to be located in a manner that will block the driveway or mailbox or otherwise inhibit proper servicing. Customers shall not overload their Recycling Containers or Bins, and the Recycling Containers shall be loaded such that the lids shall close securely. All Residential Units shall pay for the recycling services program whether they participate in the recycling program or not. CONTRACTOR shall not be required to collect (i) any Recyclable Materials that are not placed in the designated Recycling Container and/or Bin, (ii) any Recycling Container and/or Bin containing unacceptable Recyclable Materials, (iii) any Recycling Container and/or Bin that is overloaded, or (iii) a Recycling Container and/or Bin that is not properly placed curbside, and CONTRACTOR has the right to tag such Recycling Container and/or Bin. 6. The language in Section 8.01(b) and Section 8.02 in Article VIII of the Contract entitled "Compensation" is hereby superseded and replaced with the following language: 8.01(b) Beginning on the first day of the month that occurs at least twenty-two (22) days after the date this Amendment is fully executed, CONTRACTOR shall begin directly billing Commercial Unit Customers and Commercial Hand Collect Units for the Solid Waste and Recyclables collection services provided by CONTRACTOR to such Customers. Beginning on the first day of the month that occurs at least twenty-two (22) days after the date this Amendment is fully executed, CONTRACTOR shall begin directly billing Industrial Unit Customers to whom CONTRACTOR provides permanent Roll -off Bin services. CONTRACTOR shall have the right to assess interest at the highest rate permitted by law and/or late fees on Commercial Unit or Industrial Unit Customers who fail to timely pay CONTRACTOR'S invoice(s). CONTRACTOR shall have the right to suspend service to any Commercial Unit or Industrial Unit that is delinquent in payment to CONTRACTOR. If Contractor suspends service to a Customer for failure to timely pay said invoices, Contractor has the right to charge a service reactivation fee to that Customer. CONTRACTOR shall provide monthly reports that include the number of Commercial Unit Customers and Industrial Unit Customers receiving CONTRACTOR's services and the total amount billed to each customer for that month. In exchange for the CONTRACTOR taking over all of the billing responsibilities set forth herein from the CITY, the CONTRACTOR shall be entitled to increase the then current Base Rates for the Commercial Unit, Commercial Hand Collect Unit, and Industrial Unit services by 2.34% beginning on the first day of the month that occurs at least twenty-two (22) days after the date this Amendment is fully executed. The CITY will continue to be entitled to receive an eighteen percent (18%) Franchise Fee based on the collections received by CONTRACTOR from Commercial Unit and Industrial Unit Customers. Sludge removal for the CITY shall not be subject to the 18% Franchise Fee. 3 8.02. CONTRACTOR shall bill the CITY for services on a monthly basis for all services rendered to Residential Units. Payment shall be remitted by the CITY within thirty (30) days from receipt of CONTRACTOR'S invoice. 7. Nothing contained herein shall be deemed to amend or modify the Contract, except as expressly set forth herein. In the event of a conflict between the terms of the Contract and this Amendment, the terms of this Amendment shall control. IN WITNESS WHEREOF, this Amendment has been executed as of the date first set forth above. CITY: City of Pearland, Texas CONTRACTOR: Waste Management of Texas, Inc. By: By: Bi isen Title: City Manager 4 Title: _ j EXHIBIT A - SECOND AMENDMENT Base Rates: Residential $17.05 per home/per month Additional Recycling Cart $1.67 per home/per month Replacement Cart $60.00 for each Cart Commercial Hand Pickup lx/per week $27.87 2x/per week $40.58 Residential Unit and Commercial Hand Collect per home price includes City Administrative Fee and 15% Franchise Fee. Replacement Cart Fee is fixed. Commercial Unit Rates - Solid Waste: Collection Frequency Per Week lx 2x 3x 4x 5x 6x Extra PU Container Size 2yd $71.71 104.59 137.44 170.81 $42.62 3yd $87.29 132.24 177.18 222.13 48.58 4yd $101.12 154.71 208.31 261.92 315.53 368.11 51.93 6yd $125.35 206.56 262.13 348.68 435.18 521.71 58.62 8yd $147.80 253.24 348.67 464.03 579.42 694.75 67.01 Front load Compacted Solid Waste per yard: $20.90 Castors per month: $15.42 Container Roll out per occurrence: $16.97 Locking Device Monthly: $7.74 Commercial Unit Rates - Recycling Services Collection Frequency Per Week lx 2x Container Size Commercial Carts $14.72 23.55 3yd $65.42 99.12 4yd $75.78 115.95 6yd $93.94 154.82 8yd $104.55 189.79 5 EXHIBIT A - CONTINUED Roll off/Industrial Rates: Delivery Rental Haul Rate Container Size and Type Rate Rate Includes Disposal 30 yd open top $71.33 $154.32 $435.95 40yd open top $71.33 $154.32 $476.83 28 yd Compactor 30 yd Compactor 35 yd Compactor 40 yd Compactor $459.86 $467.23 $474.39 $486.08 Commercial and Industrial Unit/Roll off Rates include 18% Franchise Fee to be paid to the City 6