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9.d) Staff Report-SRC Contract Extension c� ` , � � G� �. � SCANDIA Staff RenoK Date of Meeting: March 19, 2013 To: City Council From: Kristina Handt, City Administrator Re: SRC Contract Extension Agenda Item#: 9.d) Background: In March of 2001 New Scandia Township entered into a contract for collecting and disposing of recyclable materials. The agreement has been extended several times. In May of 2012 the Council updated their contract with SRC. A copy is included in your packet. Issue: Should the Council approve the extension of the recycling contract with SRC until the end of 2013? Proposal Details: Rick Prahl, S.R.C. Inc., will be present at the meeting to update the Council on the recycling program and give his annual report. SRC is proposing to continue with the existing terms of the contract so like has been done in the past, staff is proposing an extension of the agreement be approved. The contract price— $2,320.50 per month, or $27,846 per year—is the same price that has been in effect since 2001. Fiscal Impact: Grant revenue from Washington County helps offset a portion of this expense($7,235, or about 25 %.). The remaining cost is covered by the General Fund. Options: 1) Approve the contract extension with SRC through 2013. 2) Direct Staff to prepare a new contract with SRC; identify terms to be negotiated 3) Issue and RFP for recycling services Recommendation: Option 1. EXTENSION OF RECYCLING AGREEMENT BETWEEN CITY OF SCANDIA AND SRC INCORPORATED The undersigned parties to a certain Residential Recycling Services Agreement dated May 15, 2012,by and between the City of Scandia and S.R.C. Incorporated, 6320 East Viking Boulevard, Wyoming, MN 55092,hereby agree that said Recycling Agreement may be and hereby is extended to December 31, 2013 on the same terms and conditions contained in said Agreement. IN WITNESS WHEREOF, the parties have hereunto set their hands this day of , 2013. CITY OF SCANDIA S.R.C. INCORPORATED By: BY� Randall Simonson,Mayor Cameron Strand, President By: Kristina Handt, Administrator/ Clerk RESIDENTIAL RECYCLING SERVICES AGREEMENT THIS RESIDENTIAL RECYCLING SERVICES AGREEMENT is made and entered into effective the 15t day of January, 2012 {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 and the County of Washington("County")parties to a Grant Agreement for Recycling Services which expired on December 31, 2011 and are negotiating a grant agreement for calendar year 2012 (the "Grant Agreement") which requires the City to follow specific recycling practices and submit required reports to the County on a timely basis; and B. 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 a private contractor for the collection, transportation, and disposal of recyclable materials kept and accumulated by residences and businesses within the City; and C. WHEREAS, the City desires to maintain a curbside recycling program that is eligible under the Grant Agreement;and D. WHEREAS, the Contractor has provided the recycling services identified iun this Agreement to the City in the past and is familiar with the requirements of the Grant Agreement; and E. WHEREAS, the City has determined the Contractor to be qualified to carry out the terms of this Agreernent 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 ONE DEFINITIONS l. For purposes of this Agreement, capitalized terms not otherwise defined herein shall have the following meanings: 1.1 Aerosol Cans. "Aerosol Cans" includes but is not limited to spray paint, hairspray,deodorant,etc. 1 r if � 1.2 Aluminum Cans. "Aluminum Cans" includes but is not limited to disposable containers fabricated primarily of aluminum, commonly used for soda,beer,juice,water or other beverages;also includes aluminum foil and trays. 1.3 Collection. "Collection" means the aggregation and transportation of Recyclable materials from the place at which it is generated and includes all activities up to the time when it is delivered to a recycling facility. 1.4 Corru�ated Cardboard. "Corrugated Cardboard" means cardboard material with double wall construction and corrugated separation between walls but not plastic, wax or other coated cardboard. 1.5 Curbside Rec�clinQ Bins. "Curbside Recycling Bins" means uniform curbside recycling bins supplied by the Contractor in which Recyclable can be stored and later placed for curbside collection, as specified by the City. The recycling containers are the only zeceptacles approved for use under this Ageement without further agreement in writing. 1.6 Multiple Residences. "Multiple Residences" shall mean any single structure containing four(4)or more dwelling units. 1.7 Paper• "Paper" includes the following: newspapers (including inserts); household of�`ice paper and mail; cereal, cake mix, chips and cracker boxboard; egg cartons; old corrugated cardboard; phone books; pop/beer boxes; tissue boxes, and magazines/catalogs. No boxboard containers used for food product storage in refrigerators or freezers are included, except for the tops of pizza boxes. 1.8 Person. "Person" shall mean and include any natural person, corporation, firm or association. 1.9 Place or Premises. "Place" or "Premises" shall mean 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. 1.10 Plastic. "Plastic" means all plastic nairow necked bottles; and all plastics excluding plastic resin codes,#5(PP) and#7(other) including but not liumited to plastic beverage bottles; liquor;juice, milk; soft drinks; certain foods; soap and cosmetics; and motor oil bottles (drained). Plastic bags,lids,caps,rings and pumps are not included. 1.11 Processing, Center. "Processing Center" means a recycling facility in which Recyclable materials aze processed and conforming to all applicable rules, regulations and laws of state, local or other jurisdiction. 1.12 Recvclable. "Recyclable"or"Recyclable Materials"shall include those materials required to be collected by the Grant Agreement including but not limited to the following recyclable materials: Aluminum Cans,excluding Aerosol Cans; steel cans; glass jars and bottles; Paper recyclables; phone books; Plastic Recyclables, including bottles, motor oil bottles 2 (drained) but excluding Plastic bags; household scrap metal; textiles; boxboard; Cozrugated Cazdboard; and milk cartons and juice boxes and such other materials as the parties may mutually agree in writing. ARTICLE TWO TERM OF AGREEMENT 2. This Agreement shall commence on the Effective Date and remain in effect through December 31, 2012. In addition, the City and Contractor may by mutual agreement renegotiate and extend this Agreement. ARTICLE THItEE RESIDENTYAL RECYCLABLE COLLECTION 3. The Contractor shall collect, transport and dispose of all Recyclable materials from all Premises within the corporate lunits of the City, as the same are now, and as the same may hereafter be defined, as follows: 3.1 FrecLuencv. Once every other week for each Premises. Residents shall place all Recyclable containers curbside no later than 7:00 AM on collection day. 3.2 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 weekday when such regularly scheduled day falls on a legal U.S.holiday. 3.3 Additionai Recvclable Materials. After maximizing the use of their recycling cart, residents who have a large amount of Cazdboard or other Recyclable Material may bundle this material up and leave it beside the Recycling container for pickup and the Contractor shall pick up such additional Recyclable material at its regular collection time 3.4 Container. The Contractor shall provide each residence with a new Recycling cart equipped with wheels,in a size of 65 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 when necessary. Upon the termination of this Agreement, Contractor shall collect all carts at Contractor's expense. 3.5 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. In such case, collection sha11 be made on the next day, if possible. 3.6 BillinQ• The City shall make payment to the Contractor of the Compensation required hereunder on a monthly basis. 3 3.7 No Separation. 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. 3.8 Chang.e in Carts. A Premises may request one (1) additional 65 gallon cart and Contractor agrees to supply such additional cart at no charge. A Premises may request a cart larger than 65 gallons and Contractor agrees to supply such lazger cart and bill the Premises directly for the cost of such larger cart. All such cart changes shail be completed in less than 30 days from the date of request, except that Contractor may take up to 45 days from the commencement of this Agreement to fulfill cart size change requests. ARTICLE FOUR COMPENSATION 4.1 Compensation. The City shall pay the Contractor for collection of Recyclables under this Agreement$2,320.50 per month. 4.2 City Buildin�s. The Contractor shall also pick up and deliver the current Recycling carts to the designated City owned buildings as part of the Compensation Paid to Contractor hereunder. 4.3 Additional Premises. Contractor shall collect Recyclables from additional Premises located in the City as may be designated in the future by tb.e City (including Premises constructed after the date of this Agreement) as part of the compensation provided in this Ageement. ARTICLE FIVE COLLECTION OF RECYCLABLES BY OTHER CONTRACTORS 5. The City sha11 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 callection is to begin after the expiration of the term of this Agreement. Contractor acknowledges that the City sl�all not be required to attempt to prohibit the collection of Recyclables by other persons or cvmpanies within the City,nor shall the City be required to pass an ordinance requiring the City's residents or businesses to exclusively use Contractor for Recycling services. ARTICLE SUL COLLECTION EQUIPMENT 6. The Contractor shall provide all equipment necessary for collection, transportation and disposal of collected Recyclables. All trucks shall be designed and built specifically for Recyclable collection and shall be of the covered all-rnetal type so the material being collected and transported will not be seen, will not blow, fall or leak from the vehicle. The Contractor 4 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. ARTICLE SEVEN PROCESSING OF RECYCLABLES 7. The Contractor shall haul all collected Recyclables to an authorized sorting or Processing Center where such Recyclables shall be separated and weighed and an invoice received by the Contractor showing the tonnage of Recyclables collected within the City by type. Such invoice must be in a form sufficient to qualify the recyclables as having been properly disposed of for purposes of the Grant Agreement. Contractor may not transport the Recyclables to a landfill, incinezator or otherwise dispose of in the same manner as garbage. All costs of transporting and depositing the Recyclables with the sorting or reprocessing faciiity shall be at the expense of the Contractor. ARTICLE EIGHT RECYCLABLE COLLECTION OPERATION 8.l Labor and Equipment. The Contractor shall fumish a11 labor and equipment as shall be necessary and adequate to insure satisfactory collection, transportation and proper separation and disposition of the Recyclables. The Contractor shall make every effort to mai,ntain established scheduled pick-ups even though conditions such as weather may be adverse. Containers shall be handled with reasonable care to avoid damage and aze to be replaced in an upright position. Any contents spilled shall be cleaned up immediately in a workmanlike manner and all work to be performed hereunder shall be done so as to protect, to the highest extent possible,the public health and safety. 8.2 Wei��t Records. Contractor will keep accurate records of the weights and types of Recyclables collected in the City. The weights of Recyclables collected in the City will be determined by applying the percentage of total volume of Recyclables collected in the City in relation to all Recyclables collected by the Contractor to the total weight of separated Recyclables sold by Contractor. By way of example, if the volume of Recyclables collected by Contractor in the City is 20% of the total volume collected by Contractor and the total weight of separated Recyclables sold by Contractor is 1,000 pounds, the weight of separated Recyclables coilected in the City will be 200 pounds (20% x 1,OOQ pounds). Separated Recyclables will be weighed after cornpletion of a route or at the end of the day, whichever occurs first. A copy of each weight ticket for separated Recyclables shall be kept on file and made available for inspection upon request by the City. 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 (15�') day of each month. Annual reports shall be due by Apri130 of each year. The Contractor will be encouraged to include in its annual report recommendations for continuous improvement in the City's recycling program (e.g., public education, multiple family recycling, etc.). At a minimum, the Contractor shall include the following information in these reports: S a. Tota1 quantities of Recyclable Materials collected, by material type (in tons). b. Net Quantities of Recyclable Materials marketed, by material type {in tons). c. Quantities stored, by type of Recyclable Material, with any notes as to unusual conditions(in tons). d. Log of all complaints, including the nature of the complaints, to include the foliowing: names, addresses, and contact numbers of the complainants; the date and time received; the Contractor's response; and the date and time of the response. 8.4 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 custorner service, and Contractor shall insure that all personnel maintain a positive attitude with the public and in the work place,and shall: a. Conduct themselves at a11 times in a courteous manner and use no abusive or foul language. b. Make a concerted effort to have at all times a presentable appearance and attitude. c. Weaz a uniform and employee identification badge or name tag. d. Drive in a safe and considerate manner. e. Manage curbside recycling bins and multiple family containers in a cazeful manner so as to avoid spillage and littering, o�damage to the bin or container. Containers should not be thrown once emptied. f. Monitor for any spillage and be responsible for cleaning up any litter or breakage. g. Avoid damage to property. h. 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. 8.5 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 Center used to handle material from the City must have current permits and licenses and make the same available upon request by the City. 6 ARTICI�E 1�TIIVE CONTRACTOR INSURANCE:INDE1VIlVIFICATION 9. The Contractor shall carry and file policies or certificates with the City for worker's compensation insurance, public liability insurance (including for autornobiles and trucks), and property damage insurance. The City shall be named as an additional insured in all such policies. 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 of the Confiractor or its employees and agents in connection with its performance under this Agreement. The Contractor shall pay all bills or claims for wages, salaries and supplies, incurred in the operation of the collection service. ARTIC'LE TEN CONTRACTOR PERFORMANCE 10.1 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 4:30 p.m. on all days of collection as specified in this Agreement. The Contractor shall have an answering machine or voice mail system activated to receive phone calls after hours. The address and telephone number of such office shall be given to the City in writing, with ten (10)days prior notice of changed 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 complainauts 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 will notify the Contractor of all complaints it receives. The Contractor is responsible for corrective actions. The Contractor shall answer all complaints courteously and promptly. 10.2 Failure to Perform. In the event the Contractor fails to collect the Recyclables as required by this Agreement such that the uncoilected Recyclables pose a health hazard or a nuisance to the general public, the City may, at its option,hire such labor and equipment as may be necessary to collect and dispose of such Recyclables and may, at the City's option, terminate this Agreement after the Contractor is given 5 business days to remedy the situation. In such event where remedy does not occur, the Contractor shall reimburse the City for a11 reasonable collection expenses the City incurs above and beyond the amounts the City is obligated to pay for such collection under this Agreement. The City shall promptly relay any complaints it receives from its residents regarding Contractor's performance to the Contractor, and Contractor sha11, within three business days thereafter, inform the City how it intends to respond to such complaints. 7 ARTICLE ELEVEN ASSIGNMENT AND SUBCONTRACTING 11. The Contractor shall not assign or subcontract this Agreement or any interest therein or any privilege or right granted therein without the 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 TWELVE NIISCELLANEOUS 12.1 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 annual reports — one hundred dollars ($100) per incident. d. Failure to complete the collections within the specified timeframes without proper notice to the City—one hundred dollars ($l 00)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. 12.2 Waiver. The waivez 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. 12.3 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. 12.4 Independent ConVactor. Nothing contained in this Agreement is intended to, or shall be construed in any raanner, as creating or establishing the relationslup 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 8 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. 12.5 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 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 concertung 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. ARTICLE T�iIRTEEN TERMIIVATION 13. 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 a11 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. [The remainder of thia page has been left blank intentionally] 9 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: S.RC INC. ,_�.` � . By: By. �, '`► ;�, ., Randall Simonson,Mayor Cazneron E. Strand.President By: �. Anne Hurlburt,City Administrator STATE OF MINNESOTA ) )ss. COUNTY OF WASHiNGTON ) Subscribed and sworn to before me by Randall Simonson and Anne Hurlburt,respectively the Mayor and City Administrator of the City of Scandia, a Minnesota municipal corporation this /S'�"�day of_"�2012 on behalf of the City. ►'�'1 wy 6RENDA EKLUI�Ip ��'�°��� Notary Public My Cann�tpian Erplrp lrn.31,2016 STATE OF MINNESOTA ) )ss. COUNTY OF CHISAGO ) Subscribed and sworn to before me by Cameron E. Strand,the President of S.R.C.INC.,a Minnesota corporation this�'�'day of April,2012 on behalf of the Contractor. j��� w� Notary Public KRIS7IN JENSEN , NOTARYPU9UC-MINNESOTA My Commission ExpUoa J9n 31,2016 10