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9.b) SRC Recycling ContractRESIDENTIAL RECYCLING SERVICES AGREEMENT THIS RESIDENTIAL RECYCLING SERVICES AGREEMENT is made and entered into effective the 1 st day of January, 2015 (the "Effective Date"), by and between the CITY OF SCANDIA, a Minnesota Municipal Corporation organized and existing under the laws of the State of Minnesota (the "City") and S.R.C. INC., a Minnesota Corporation ("Contractor"). WITNESSETH A. WHEREAS, the City has found and determined that the public health and safety of the City will be promoted and preserved by establishing with a private contractor an arrangement with the private contractor for the collection, transportation, and disposal of recyclable materials kept and accumulated by residences and businesses within the City; and B. WHEREAS, the Contractor has provided the recycling services identified in this Agreement to the City in the past and is familiar with the requirements of the City and its recycling services; and C. WHEREAS, the City has determined the Contractor to be qualified to carry out the terms of this Agreement upon the terms and conditions and for the consideration hereinafter provided. AGREEMENT: NOW, THEREFORE, in consideration of the foregoing and the covenants, promises, undertakings, and obligations herein created, granted, and assumed, the parties hereto agree as follows: ARTICLE 1. DEFINITIONS 1.1 For purposes of this Agreement, terms not otherwise defined herein shall have the following meanings: 1.1.1 Collection: The aggregation of recyclables from the place at which they are generated and includes all activities up to the time the recyclables are delivered to a recyclables processing facility. 1.1.2 Curbside Recycling Cart: The wheeled, lidded cart in which recyclable materials can be stored and placed for curbside collection. 1.1.3 Dwelling Unit: A separate dwelling place with a kitchen in buildings with four (4) or fewer units per structure. 1.1.4 Holidays: New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, Christmas Day. RESIDENTIAL RECYCLING SERVICES AGREEMENT City of Scandia, Minnesota Page 1 of 12 1.1.5 Multiple Residences: Any single structure containing more than four (4) dwelling units. 1.1.6 Person: Includes any natural person, corporation, firm or association. 1.1.7 Premises: Any dwelling house, dwelling unit, Multiple Residence, building, trailer, mobile home, and every other place or premises where any person resides or a business is operated within the City. 1.1.8 Processing Facility: Facility designed for centralized sorting, processing, and/or grading of collected recyclable materials for marketing. The facility will conform to all applicable rules, regulations and laws of state, local or other jurisdictions. 1.1.9 Recyclables: The current list of household recyclables as established through guidelines released under the authority of the City's Administrator. The current list of recyclables, as of the date of Contract execution, includes at a minimum: • PAPER ► Boxboard including corrugated cardboard (OCC) / Magazines and catalogs / Mail (window and metal clasps acceptable), office and school papers ► Newspaper and inserts, Phone books ► Shredded paper in closed paper bag • CARTONS / Milk and broth cartons ► Juice boxes • METAL ► Food and beverage aluminum/tin/bimetal cans • GLASS / Food and beverage bottles and jars • PLASTICS ► PET (#1) - water, soda and juice bottles - ketchup and salad dressing bottles ► HDPE (#2) - Milk and juice jugs - Dish soap bottle and detergent jugs - Shampoo, soap and lotion bottles ► PP (#5) - Yogurt, pudding and fruit cups - Margarine, cottage cheese and other tubs • USED MOTOR OIL • TEXTILES • BATTERIES • Such other materials as the parties may mutually agree in writing. RESIDENTIAL RECYCLING SERVICES AGREEMENT City of Scandia, Minnesota Page 2 of 12 1.1.10 Recyclables set -out rate: The number of customers that set out Recyclables on the particular recycling day divided by the total number of recycling customers; different than Participation Rate which is the number of persons in particular households that set out recyclables in a given time period (e.g. Quarterly). 1.1.11 Residuals: Waste materials left after recovery of recyclables and/or the physical, chemical or biological processing of wastes. 1.1.12 Single Stream Recycling/Single Sort Recycling: The recycling system whereby residents set out recyclables in one category without further sorting by residents in which materials are later processed at a processing facility, including sorting into their individual marketable commodities. 1.1.13 Washington County Standard List of Residential Curbside Recyclables: The list of recyclables to collected curbside in all city/township recycling programs within the county to meet basic requirements of the county's Municipal Curbside Recycling and Waste Reduction funding requirements. ARTICLE 2. TERM OF AGREEMENT 2.1 This Agreement shall commence on the Effective Date and remain in effect through December 31, 2018. In addition, the City and Contractor may at the City's sole discretion renegotiate to extend this Agreement for additional one-year periods. ARTICLE 3. RESIDENTIAL RECYCLABLES COLLECTION 3.1 The Contractor shall furnish all labor and equipment as shall be necessary and adequate to insure satisfactory collection, transportation and proper separation and processing of the Recyclables. The Contractor shall make every effort to maintain established scheduled pick-ups even though conditions such as weather may be adverse. Containers shall be handled with reasonable care to avoid damage and are to be replaced in an upright position. All work to be performed hereunder shall be done so as to protect, to the highest extent possible, the public health and safety. The Contractor shall collect, transport and arrange or provide processing of all Recyclable materials from all Premises within the corporate limits of the City, as follows: 3.1.1 Licenses and Permits. The Contractor shall ensure that all driver and truck licenses and permits are current and in full compliance with local, state and federal laws and regulations. Any Processing Facility used to handle material from the City must have current permits and licenses and make the same available upon request by the City. 3.1.2 Frequency of collection. Recyclables collection shall occur once every other week for each Premise. Residents shall place all Recyclables carts curbside no later than 6:00 AM on collection day. 3.1.3 Hours of Collection. Collection of recyclables shall not start before 6:00 a.m. or continue after 5:00 p.m. on the same day. Exceptions to collection hours shall be RESIDENTIAL RECYCLING SERVICES AGREEMENT City of Scandia, Minnesota Page 3 of 12 effected only by permission of the City. The Contractor shall request permission from the City for any exception first via telephone and then in writing (email to the City Administrator or designee is acceptable) with an explanation as to the reason for the exception. 3.1.4 Holidays. When a holiday falls on the day that recycling will normally be collected, each subsequent collection day will be delayed one day. For example: if July 4 is on Tuesday, regular collection services will be Friday and Saturday. 3.1.5 Routes. The Contractor may divide the City into two (2) sections for collection purposes and collect from one section one week and from the other section the next week. The Contractor shall collect Recyclables only on Thursday and Friday provided, however, that the Contractor may shift collection to the following day when such regularly scheduled day falls on a legal U.S. holiday. 3.1.6 Container. The Contractor shall provide each residence with a clearly distinguished Recycling Cart equipped with wheels, in a size of 65 or 96 gallons for use during the term of this Agreement. The cost of providing the cart is built into the rate identified in this Agreement. Contractor shall be responsible for the maintenance of the carts and except in the case of abuse and/or misuse by a resident, shall replace damaged or broken carts free of charge. Upon the termination of this Agreement, Contractor shall collect all carts at Contractor's expense. 3.1.7 Additional Recyclable Materials. After maximizing the use of their recycling cart, residents who have a large amount of Cardboard or other Recyclables may bundle this material up and leave it beside the Recycling cart for pickup and the Contractor shall pick up such additional Recyclable material at its regular collection time at no additional charge. 3.1.8 Ownership of Recyclables. All recyclables placed for collection by residents from eligible RDUs shall remain the responsibility and ownership of the residents until picked up by the Contractor. The City requires that all collected recyclables must be delivered to the recycling processing facility; there shall be no scavenging of materials set out by residents. 3.1.9 Missed collections. In the case of alleged missed collections, the Contractor shall investigate, and, if such allegations are verified, the Contractor shall then arrange for the collection of the subject materials no later than 4 p.m. the next business day. 3.1.10 Delays. In no event shall the Contractor be required or suffer penalty for failure to perform a scheduled pickup when prevented from doing so as the result of an undue accumulation of snow and/or other catastrophic conditions. The Scandia City Administrator shall determine if such conditions exist. In such case, collection shall be made on the next day. 3.1.11 Spills or leaks. Any contents spilled or fluids leaked from the recyclables or the trucks shall be cleaned up immediately in a workmanlike manner. If the Contractor fails to clean up any scattered or spilled material or leaked material or fluids from recycling trucks within three hours after oral or written notice (email is acceptable) from the City, the City may cause such work to be done and RESIDENTIAL RECYCLING SERVICES AGREEMENT City of Scandia, Minnesota Page 4 of 12 deduct the reasonable cost thereof from any payments due and owing the Contractor, in addition to any other remedies provided herein. 3.1.12 Recyclables to be collected: Contractor shall collect at a minimum the Washington County List of Standard Recyclables in addition to those recyclables such as textiles for which it has found or developed markets. Contractor shall update recyclables it collects to remain current with the Washington County List of Standard Recyclables. 3.1.13 Single Sort Recycling: Except for used motor oils, textiles and batteries, the Contractor shall not require separation of Recyclables by type, but shall permit City residents to aggregate all of their Recyclable Materials into the same container for collection by the Contractor. 3.1.14 Change in Carts. A Premise with a 65 gallon cart may request one (1) additional 65 gallon cart and Contractor agrees to supply an additional cart at no charge to the resident or the City. All such cart changes shall be completed in less than 30 days from the date of request. 3.1.15 Collection of Recyclables at City Buildings. Contractor shall place recycling containers at all City buildings as determined by the City Administrator and shall provide recyclables collection at these buildings every other week as part of the Compensation Paid to Contractor hereunder. 3.1.16 Changes to Collection System. Contractor shall not make changes to the single stream collection or processing system without written consent of the city. 3.1.17 Education. Contractor shall provide two (2) education /outreach actions per year, which may include direct-mail pieces, Scandia-specific recycling education advertising in the City of Scandia Newspaper of Record, literature drops at residences in the City, having a truck or float in the Taco Daze parade, or other City -approved options. 3.1.17a. The method of distribution and content of materials shall be approved by the City in writing prior to distribution. Additional agreed upon education actions may be implemented, such as targeting new residents or recycling incentives programs. 3.1.17b. A flier or similar education material shall be given to each new resident when an account is signed up or when the driver notes a new resident on the route. The City shall be notified of the address of the new resident on the subsequent Monthly Report. RESIDENTIAL RECYCLING SERVICES AGREEMENT City of Scandia, Minnesota Page 5 of 12 ARTICLE 4. COMPENSATION 4.1 Compensation. The City shall pay the Contractor for collection of Recyclables under this Agreement $2,320.50 per month. 4.2 Billing. The City shall make payment to the Contractor of the Compensation required hereunder on a monthly basis only if the required recycling reports for the previous month are received by the City. (e.g. August Monthly Recycling Report received with September bill) 4.3 Additional Premises. Contractor shall collect Recyclables from additional Premises located in the City as may be designated in the future by the City (including Premises constructed after the date of this Agreement) as part of the compensation provided in this Agreement. ARTICLE 5. COLLECTION OF RECYCLABLES BY OTHER CONTRACTORS 5.1 The City shall not contract with a different contractor for the collection of Recyclables during the same time period as the Contractor is required to collect Recyclables in the City under this Agreement, provided however, that the City may so contract in the event of default by Contractor under this Agreement or in the event the City enters into a contract for such collection where such collection is to begin after the expiration of the term of this Agreement. ARTICLE 6. COLLECTION EQUIPMENT AND PERSONNEL 6.1 Provision of Equipment. The Contractor shall provide all equipment necessary for collection and transportation of collected Recyclables. All trucks shall be designed and built specifically for Recyclables collection and shall be maintained so the material being collected and transported will not be seen and will not blow, fall or leak from the vehicle and fluids will not leak from the trucks. 6.2 Maintenance of Equipment. The Contractor shall maintain equipment, used in the performance of this Agreement in a clean and sanitary condition and shall at all times operate such equipment in compliance with State law and City ordinances. 6.3 Compliance with Truck Road Weight Restrictions. It shall be the Contractor's sole responsibility to comply with all road weight restrictions. The Contractor shall immediately inform the City of any notices of exceeding such restrictions. The City retains the right to inspect and/or weigh the Contractor's trucks at any time. The City retains the right to modify compliance requirements with such restrictions at its sole discretion. 6.4 Personnel. Contractor shall retain sufficient personnel and equipment to fulfill the requirements and specifications of this Agreement. Contractor's personnel shall be trained both in program operations and in customer service, and Contractor shall insure that all personnel maintain a positive attitude with the public, and shall: (a) Conduct themselves at all times in a courteous manner and use no abusive or foul language. RESIDENTIAL RECYCLING SERVICES AGREEMENT City of Scandia, Minnesota Page 6 of 12 (b) Make a concerted effort to have at all times a presentable appearance and attitude. (c) Wear a uniform and employee identification badge or name tag. d. Drive in a safe and considerate manner. (d) Manage curbside recycling bins and multiple family containers in a careful manner so as to avoid spillage and littering, or damage to the bin or container. Containers shall not be replaced in the street, and shall be replaced in an upright position. (e) Monitor for any spillage or vehicle leaks and be responsible for cleaning up any litter, breakage or leaks. (f) Avoid damage to personal or City property. (g) Not perform their duties or operate vehicles while consuming alcohol or illegally using controlled substances or while under the influence of alcohol and/or such substances. ARTICLE 7. PROCESSING OF RECYCLABLES 7.1 The Contractor shall haul all collected Recyclables to an authorized sorting or Recyclables Processing Facility or end market for sale or reuse, or to an intermediate collection center for later delivery to a Recyclables Processing Facility or end market where such Recyclables shall be separated and weighed. An invoice shall be received by the Contractor showing the tonnage of Recyclables collected within the City. Such invoice must be in a form sufficient to qualify the recyclables as having been properly processed for purposes of the Agreement. Contractor may not transport the Recyclables to a mixed municipal solid waste disposal facility. The contractor or it subcontractors shall not landfill, incinerate, compost or make fuel pellets out of the recyclable materials. All costs of transporting and depositing the Recyclables with the sorting or reprocessing facility shall be at the sole expense of the Contractor. ARTICLE 8. RECYCLABLE COLLECTION REPORTS 8.1 Weight Records. Contractor will keep accurate records of the weights and types of Recyclables collected in the City. Recyclables will be weighed after completion of a route or at the end of the day, whichever occurs first on a certified scale. All recyclables collected in the City shall be weighed separately from recyclables collected in other geographic subdivisions. A copy of each weight ticket for Recyclables collected in the City shall be kept on file and a copy will be forwarded to the City with the monthly report. Records of facilities that the recyclables are taken to and the recyclable markets used for recyclables generated in the City and/or amount of City recyclables stored by those facilities shall be kept by the Contractor for review by the City. 8.2 Confirmation of data. Contractor shall participate with the City in tests such as waste sorts to confirm the methodology and accuracy of the above data for weights of recyclables or to identify opportunities to increase recycling. 8.3 Reports. The Contractor will submit to the City monthly and annual reports. Monthly reports shall be due to the City by the fifteenth (15th) day of each month. Annual reports shall be due by March 30 of each year. The Contractor will be encouraged to include in its annual report recommendations for continuous improvement in the City's recycling RESIDENTIAL RECYCLING SERVICES AGREEMENT City of Scandia, Minnesota Page 7 of 12 program (e.g., public education, multiple family recycling, etc.). At a minimum, the Contractor shall include the following information in these reports: 8.3.1 Monthly Reports: (a) Total quantities of Recyclables collected, (in tons). (b) Net Quantities of Recyclables marketed, by material type (in tons). (c) Markets utilized for recyclables that month (d) Method used to collect and report total quantities of recyclables collected, which shall be in compliance with the Washington County Hauler Residential Recycling Hauler Report. (e) Total actual number of Recycling Pick-ups (stops). "Total actual Recycling pick-ups" is defined as the combined number of actual Recycling pick-ups made in the month. (f) Log of all complaints, including the nature of the complaints, to include the following: (i) Names, addresses, and contact numbers of the complainants; (ii) The date and time received; (iii) The Contractor's response; and the date and time of the response. (iv) Log of addresses of premises that did not put out recyclables containers that month. 8.3.2 Annual Reports: a) Annual tonnage of recyclables, by collection day b) Recyclables composition estimates based on an actual annual sort of recycles collected in the City of Scandia, to which a representative of the City is invited. c) Recyclables set -out rates d) Education materials provided to City of Scandia residents that year e) Markets for recyclables used that year f) Market expectations for recyclables for the upcoming year g) Suggestions for improvements to the City of Scandia Recycling programs ARTICLE 9. CONTRACTOR INSURANCE; INDEMNIFICATION 9.1 The Contractor shall carry and file policies or certificates with the City for worker's compensation insurance (statutory level), public liability insurance (including for automobiles and trucks), and property damage insurance. The City shall be named as an additional insured in all such policies, and the policies shall be in form and substance acceptable to the City. All liability policies shall provide coverage in an amount at least equal to $1,000,000 per person and $2,000,000 per occurrence. In the event the maximum municipal tort liability limits as set out in Minn. Stat. 466.04 increase above the amounts currently in place, Contractor shall increase its liability insurance coverage to equal or exceed such maximum amounts. The Contractor shall defend, indemnify and save harmless the City from any and all claims and causes of action which may be asserted against the City on account of any act or omission, or any misfeasance or malfeasance of the Contractor or its employees and agents in connection with its performance under this Agreement. 9.1.1 The Contractor shall obtain a Performance Bond in the amount of $3,000 payable to the City for the use of said City. The Performance Bond shall be signed by the RESIDENTIAL RECYCLING SERVICES AGREEMENT City of Scandia, Minnesota Page 8 of 12 Contractor and with a surety of company as surety. The Performance Bond shall at all times be kept in full force and effect. The bond shall be filed with the City Administrator/Clerk or the designee. 9.1.2 The Contractor shall pay all bills or claims for wages, salaries and supplies, incurred in the operation of the collection service. The Contractor shall obtain a Payment Bond in the amount of $50,000 payable to the City for use of the City if claims are made against the City for non-payment by Contractor of bills or claims associated with performance of this Agreement. The Payment Bond shall be signed by the Contractor and with a surety of company as surety. The Payment Bond shall at all times be kept in full force and effect. The bond shall be filed with the City Administrator/Clerk or the designee. ARTICLE 10. INDEPENDENT CONTRACTOR 10.1 Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The Contractor shall at all times remain an independent Contractor with respect to the services to be performed under this Agreement. Any and all employees of Contractor or other persons engaged in the performance of any work or services required by Contractor under this Agreement shall be considered employees or subcontractors of the Contractor only and not of the City; and any and all claims that might arise, including worker's compensation claims under the Worker's Compensation Act of the State of Minnesota or any other state, on behalf of said employees or other persons while so engaged in any of the work or services provided to be rendered herein, shall be the sole obligation and responsibility of the Contractor. ARTICLE 11. CONTRACTOR PERFORMANCE 11.1 Complaints. The Contractor shall provide staffing of a telephone equipped office to receive missed collection complaints and other complaints between the hours of 7:00 a.m. until 5:00 p.m. Monday through Friday and 8:00 a.m. until 12:00 p.m. on Saturdays. The Contractor shall have an answering machine or voice mail system activated to receive phone calls after hours. The address and telephone number of the office shall be given to the City in writing, with ten (10) days prior notice of a change therein. The Contractor shall also allow complaints to be made electronically. Each month the Contractor shall provide the City with a list of all customer complaints, the nature of these complaints and a description of how each complaint was resolved. The names of the complainants and contact numbers or e-mail addresses must also be included. Complaints on service will be taken and collected by the City and the Contractor. The City shall promptly relay any complaints it receives from its residents regarding Contractor's performance to the Contractor. The Contractor is responsible for corrective actions. The Contractor shall answer all complaints courteously and promptly. Contractor shall, within three business days thereafter, inform the City how it intends to respond to such complaints. 11.2 Failure to Perform. In the event the Contractor fails to collect the Recyclables as required by this Agreement, the City may, at its option, hire such labor and equipment as may be necessary to collect and dispose of such Recyclables after the Contractor is given 5 business days to remedy RESIDENTIAL RECYCLING SERVICES AGREEMENT City of Scandia, Minnesota Page 9 of 12 the situation. The City may, at the City's option, terminate this Agreement in accordance with Article Fourteen (14). In the event remedy does not occur, the Contractor shall reimburse the City for all reasonable collection expenses the City incurs above and beyond the amounts the City is obligated to pay for such collection under this Agreement or the City shall utilize the Performance Bond for such expenses. ARTICLE 12. ASSIGNMENT AND SUBCONTRACTING 12.1 The Contractor shall not assign or subcontract this Agreement or any interest therein or any privilege or right granted therein without the prior written consent of the City. Consent to one assignment or subcontract shall not be deemed to be consent to any subsequent assignment or subcontract. ARTICLE 13. MISCELLANEOUS 13.1 Liquidated Damages. The Contractor agrees, in addition to any other remedies available to the City, that the City may withhold payment from the Contractor in the amounts specified below as liquidated damages for failure of the Contractor fulfilling its obligations: A. Failure to respond to legitimate service complaints within 24 hours in a reasonable and professional manner - fifty dollars ($50) per incident. B. Failure to collect properly notified missed collections - two hundred and fifty dollars ($250) per incident. C. Failure to provide monthly and/or annual reports - one hundred dollars ($100) per incident. D. Failure to complete the collections within the specified timeframes without proper notice to the City - one hundred dollars ($100) per incident. E. Failure to clean up spills during collection operations - two hundred fifty dollars ($250) per incident. F. Failure to report on changes in location of Recyclable Processing operations two hundred fifty dollars ($250) per incident. G. Failure to collect Washington County List of Standard Recyclables within one month of notification of a change to the List one hundred dollars ($100) per week of non -collection. 13.2 Waiver. The waiver by the City of any breach or violation of any term covenant, or condition of this Contract shall not be a waiver of any subsequent breach or violation of the same or any other term, covenant or condition hereof. 13.3 Binding Effect. The terms, covenants, and conditions of this contract shall apply to, and shall bind and inure to the benefit of the parties, their successors, and assigns. 13.4 Data Practices. The Contractor agrees to comply with the Minnesota Government Data Practices Act and all other applicable state and federal laws relating to data privacy or RESIDENTIAL RECYCLING SERVICES AGREEMENT City of Scandia, Minnesota Page 10 of 12 confidentiality. The Contractor must immediately report to the City any requests for third parties for information relating to this Agreement. The City agrees to promptly respond inquiries from the Contractor concerning data requests. The Contractor agrees to hold the City, its officers, and employees harmless from any claims resulting from the Contractor's unlawful disclosure or use of data protected under state and federal laws. 13.5 Force Majeure: Whenever a period of time is provided for in the Contract for either the City or the Contractor to so or perform any act or obligation, neither party shall be liable for any delays or inability to perform due to causes beyond the control of said party such as war, riot, unavoidable casualty or damage to personnel, materials or equipment, fire, flood, storm, earthquake, tornado or any act of God, but not strike or lockout. The time period for the performance in question shall be extended for only the actual amount of time said party is so delayed. ARTICLE 14. TERMINATION The City may terminate this Agreement if the Contractor fails to fulfill its obligations under the Agreement in a proper and timely manner, or otherwise violates the terms of the Agreement if the default has not been cured after thirty (30) days written notice has been provided. The City shall pay Contractor all compensation earned prior to the date of termination minus any damages and costs incurred by the City as a result of the breach. If the Agreement is cancelled or terminated, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by the Contractor under this Agreement shall, at the option of the City, become the property of the City, and the Contractor shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. RESIDENTIAL RECYCLING SERVICES AGREEMENT City of Scandia, Minnesota Page 11 of 12 IN WITNESS WHEREOF, the parties have hereunto executed this Agreement, by their officers, as of the day and year first above written. CITY OF SCANDIA CONTRACTOR: By: By: Randall Simonson, Mayor By: Kristina Handt, City Administrator STATE OF MINNESOTA ) )ss. COUNTY OF WASHINGTON ) Subscribed and sworn to before me by Randall Simonson and, Kristina Handt, respectively, the Mayor and City Administrator of the City of Scandia, a Minnesota municipal corporation this Day of 20 Notary Public STATE OF MINNESOTA COUNTY OF WASHINGTON Subscribed and sworn to before me by the of (Name) (Title) Minnesota corporation this (Company) Notary Public STATE OF MINNESOTA COUNTY OF WASHINGTON Day of 20_ RESIDENTIAL RECYCLING SERVICES AGREEMENT City of Scandia, Minnesota Page 12 of 12