HomeMy WebLinkAboutRes2012-068 Sponsored by: Hunt
*Wm CITY OF SEWARD, ALASKA
RESOLUTION 2012 -068
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROVING A FRANCHISE FOR THE COLLECTION AND
DISPOSAL OF GARBAGE AND REFUSE WITH ALASKA WASTE - KENAI
PENINSULA, LLC, SUBJECT TO APPROVAL BY THE VOTERS OF
SEWARD AT THE OCTOBER 2, 2012 REGULAR CITY ELECTION
WHEREAS, the Seward City Charter ( "Charter ") and Code of Ordinances ( "Code ")
provides for the sanitary, economic, and efficient collection and disposal of garbage, rubbish, and
waste material in the City and its service area, and permits, pursuant to such Charter and Code and
voter approval, the use of a contractor to provide such services; and
WHEREAS, the City of Seward ( "City ") currently contracts with Waste Connections of
Alaska, Inc. dba Alaska Waste — Kenai Peninsula LLC, for the collection and disposal of garbage
and refuse, with said contract set to expire December 31, 2012; and
WHEREAS, the City solicited a request for proposals to provide solid waste collection
services, and received three responsive and responsible proposals, and based on the scoring of those
proposals, the administration recommends approval of a contract with Alaska Waste — Kenai
ift
.. Peninsula, LLC, subject to voter approval at an election to be held on October 2, 2012, and subject to
successful negotiations between the City and the proposer; and
WHEREAS, the administration recommends entering into a seven -year contract with an
option to extend for up to three additional years, subject to approval by the City Council; and
WHEREAS, this franchise agreement provides for automatic annual adjustments in the Rate
Schedule based on 140% of the CPI', with such automatic increases not subject to further approval,
and with all other changes to rates and conditions of service subject to City Council review and
approval; and
WHEREAS, the agreement provides for new services such as a bulky -item curbside pickup service
for appliances and furniture, and through a levelized rate schedule, encourages the use of bear -
resistant containers and bear - resistant dumpster lids to reduce bear /human/garbage encounters, and
includes a franchise fee to be paid to the City, equal to 3% of the gross revenues collected by the
contractor; and
1 Consumer Price Index (CPI) means the consumer price index (CPI -U), all items, 1982 - 1984 =100 for urban wage
earners and clerical workers, Anchorage, Alaska area, as published by the U.S. Department of Labor, Bureau of
Labor Statistics (initial release). The 2014 Rate Schedule will be adjusted utilizing the CPI data from the calendar
troy
year 2012.
CITY OF SEWARD, ALASKA
RESOLUTION 2012 -068
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WHEREAS, approval of a seven -year franchise, with an option to extend for an additional
term of up to three years, provides sufficient incentive for the contractor to make improvements to
the local fleet of available equipment, trucks, and container inventories, and to address issues such as
the availability of bear - resistant garbage cans and bear - resistant dumpster lids, and to consider future
options for the community to encourage and facilitate recycling efforts; and
WHEREAS, granting of a franchise for a public utility requires the affirmative vote of a
majority of electors voting on a proposition to approve such a franchise, and
WHEREAS, the Seward City Council finds that it is in the public interest to provide for
quality, local garbage and refuse collection and disposal services, and therefore opts to place this
proposition before the voters of Seward at the regular election of October 2, 2012.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. A franchise agreement between the City of Seward and Alaska Waste — Kenai
Peninsula LLC, for the collection and disposal of garbage and refuse, a copy of which is attached
hereto and incorporated herein by reference, is hereby approved subject to voter approval, in
accordance with Section 4 below.
Section 2. The city manager is authorized to finalize and execute such additional
documents as necessary to finalize the franchise agreement and to agree to revisions to the
documents so long as the essential terms and conditions of the franchise agreement are not
substantially changed.
Section 3. The city manager is authorized to include collection of a franchise fee in the
amount of 3% of gross revenues collected from the franchisee, and that amount is considered
adequate compensation for the maintenance and use of City streets and alleys in the conduct of this
contract. The City Council will also retain rate approval as provided in the City Charter and Code.
Section 4. At the regular municipal election to be held on October 2, 2012, the City shall
submit to the qualified voters of the City the question of approval of the franchisee agreement noted
above. An affirmative vote of a majority of the qualified electors voting on the proposition shall be
required for approval of the franchise agreement.
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CITY OF SEWARD, ALASKA
RESOLUTION 2012 -068
ir...
Section 5. The proposition shall be substantially in the following form:
Proposition No. 2
FRANCHISE AGREEMENT FOR THE COLLECTION AND
DISPOSAL OF GARBAGE AND REFUSE
Do you approve a seven -year franchise agreement with Alaska Waste — Kenai
Peninsula, LLC for the collection and disposal of garbage and refuse? The
franchise agreement contains an option to extend for up to an additional three
years. The agreement allows for costs to be adjusted annually based on 140%
of the Consumer Price Index. The agreement provides an opportunity for
periodic rate reviews with all other consumer rates to be set by resolution of the
City Council.
Yes No
A "Yes" vote approves a seven -year franchise agreement with Alaska Waste —
Kenai Peninsula, LLC for the collection and disposal of garbage and refuse,
him
with options to extend the agreement for up to three additional years.
A "No" vote does not approve a seven -year franchise agreement with Alaska
Waste — Kenai Peninsula, LLC for the collection and disposal of garbage and
refuse, with options to extend the agreement for up to three additional years.
Section 6. This resolution shall take effect immediately upon adoption. The franchise
agreement shall not be effective until it has been approved by a majority of the electors voting on a
proposition to approve the same. The franchise agreement shall go into effect January 1, 2013 or as
soon thereafter as practicable.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13
day of August, 2012.
THE CITY OF SEWARD, ALASKA
David Seawa , ayo
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CITY OF SEWARD, ALASKA
RESOLUTION 2012 -068
AYES: Valdatta, Bardarson, Keil, Shafer, Casagranda, Terry, Seaward
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
• -C &
( \ : ohanna Kinney, CMC
jeity Clerk
(City Seal)
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Council Agenda Statement
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Meeting Date: August 13, 2012
Through: James Hunt, City Manager °
41 :AS• P
From: Kristin Erchinger, Finance Director
Agenda Item: Approving Franchise Agreement for Solid Waste Collection Services with
Alaska Waste - Kenai Peninsula, LLC
BACKGROUND & JUSTIFICATION:
The City of Seward, through its Charter and its Code of Ordinances, provides for the collection
and disposal of garbage and rubbish. To that end, the City previously applied for, and was
granted, a Certificate of Public Convenience and Necessity by the Regulatory Commission of
Alaska, for its refuse utility (Certificate U- 99 -22).
Since at least the early 1970s, the City has utilized a private contractor to provide refuse services
in Seward. The City Code requires that a franchise for a public utility be approved by a majority
of voters in a regular City election.
Over the past 38 years, the City has issued Requests for Proposals for solid waste collection four
times, as follows: 1974, one respondent; 1980, one respondent; 1983, two respondents; 1987,
one respondent. In 1987, the City contracted with Seward Service (Herman Leirer), and the
business was subsequently assigned five times, as follows: in 1989 to Jason Enterprises; in
1998 to USA Waste of Alaska; in 1999 to Peninsula Sanitation, a division of Waste
Management, Inc.; in 2005 to Alaska Pacific Environmental Services Anchorage, LLC dba
Alaska Waste - Kenai Peninsula LLC; and in 2012 to Waste Connections of Alaska, Inc.
The most recent franchise agreement was approved by the voters on October 5, 2010 for a period
of two years, with a request by the City Council to solicit Requests for Proposal at the end of the
term. The current contract for refuse services expires December 31, 2012.
The City solicited a Request for Proposals for solid waste collection services and received three
responses. All three proposals were considered responsive and responsible. The following
criteria and associated weightings were used to score the proposals: Proposed rates = 30 %;
Firm's technical qualifications (fleet, container inventory, etc.) = 20 %; Firm's experience = 15 %;
Bear Awareness = 10 %; Litigation History = 10 %; Contract exceptions = 10 %; and Customer
service and billing = 5 %. The proposals received the following overall scores:
Alaska Waste - Kenai Peninsula, LLC Score = 88.52
Alaska Pacific Environmental Services I, LLC Score = 71.78
Mid State Truck and Trailer, LLC Score = 70.50
Based on the scoring of criteria, the administration recommends approving a franchise for the
collection and disposal of garbage and refuse with Alaska Waste - Kenai Peninsula, LLC
( "Alaska Waste "), subject to approval by the voters of Seward at the October 2, 2012 regular
City election, and subject to successful contract negotiations.
A few highlights from the successful proposal: The RFP allowed for a new fee to be
implemented, based on standard waste management industry practice. That fee would have been
a fuel adjustment factor to be added to the bill each month based as a percentage of the services
charges on the bill (excluding taxes and surcharges), with an option to escalate each year based
on a percentage of the Producer Price Index for No. 2 Diesel Fuel. Alaska Waste opted not to
propose adding a new fuel adjustment factor, but to instead include all cost escalations as a
percentage of the annual Consumer Price Index ( "CPI "). Their proposal includes the following:
1) initial rates are increased from the current Rate Schedule by approximately 25% for regular
cans and 7% for bear - resistant cans, effective January 1, 2013; 2) the Rate Schedule has been
amended to add a monthly charge for renting a dumpster from the Contractor (rent has been
charged previously, but that item was omitted from the schedule); 3) annual increases to the Rate
Schedule will be equal to 140% of the Consumer Price Index over the life of the contract; 4) a
new "bulky item pickup" service will be implemented at a minimum cost of $42.18 per item
(small appliances, furniture, etc.); 5) incentivizes the use of bear - resistant garbage cans by
charging the same $2.00 per month charge for a leased bear - resistant can or a regular can; 6)
adds lockable dumpster lids; 7) continues the current practice of the contractor bearing
responsibility for billing customers and providing direct customer service; 8) the contractor
agrees to make available bear- resistant garbage cans and bear - resistant dumpster lids for sale or
lease, to anyone interested in obtaining one; and 9) provides for a seven -year term with options
to extend for an additional term of up to three years at the discretion of the City Council.
Alaska Waste's base price for monthly service will be $26.91 (up from the current $21.53), and
this represents the median quoted rate (quotes ranged from $20.88 to $41.75) of the three
proposals.
Waste Connections of Alaska, Inc. (dba Alaska Waste — Kenai Peninsula, LLC) became the
City's current refuse franchisee, upon completion of a buyout of the City's previous contractor,
and upon the City Council's approval of consent to a change in ownership, approved by
Resolution in February, 2012. Since that time, the contractor has provided safe and reliable
service to the residents of Seward, and the City has received very few calls regarding service.
The contractor has been responsive to City staff and we have developed a positive working
relationship. The administration recommends approval of this franchise agreement, for final
approval by the voters of Seward at the October election.
CONSISTENCY CHECKLIST: Yes No N/A
1 Comprehensive Plan: Page 11- Community Appearance, Page 13 -City X
Government, Page 26- Public Facilities.
2. Strategic Plan: Page 4- Nautural, Promote a Safe Community -Page 18 X
3. Other (list): X
ATTORNEY REVIEW: YES X No
FISCAL NOTE:
Approval of this contract will result in an increase in a residential customer's monthly standard
charge of $5.38, representing an approximate increase of 25% (from $21.53 to $26.91 per
month). The City will collect a 3% franchise fee based on gross revenues collected, estimated at
approximately $20,000 per year. The franchise fee is intended to compensate the City for
maintenance and use of its roads and alleys, per Seward City Charter §13.5(7). The agreement
allows further annual rate reviews, whereby the Seward City Council is required to approve
refuse rates charged by the contractor.
Approved by Finance Department: 7
RECOMMENDATION:
Council approve Resolution 2012 , approving a franchise for the collection and disposal of
garbage and refuse with Alaska Waste — Kenai Peninsula, LLC, subject to approval of the voters
at the October 2, 2012 regular city election, and to successful contract negotiations.
CONTRACTUAL AGREEMENT
FOR THE COLLECTION AND DISPOSAL OF
GARBAGE, RUBBISH AND WASTE MATERIAL
IN THE CITY OF SEWARD, ALASKA
THIS AGREEMENT (the "Agreement ") is dated as of the day of
2012, by and between the City of Seward, Alaska, a municipal corporation organized under and
operating pursuant to the laws of the State of Alaska, hereinafter referred to as the "City" and
Alaska Waste - Kenai Peninsula, LLC, hereinafter referred to as "CONTRACTOR ".
WHEREAS, the City, by its charter (the "Charter ") and ordinances of the Seward City
Code (the "Code "), provides for the sanitary, economic, and efficient collection and disposal of
garbage, rubbish, and waste material in the City and its service area, and has, by such Charter
and Code, made regulations regarding such collection and disposal; and
WHEREAS, the City seeks a CONTRACTOR to provide dependable, economic, and
efficient service to the business, industrial, residential, and public districts of the City and its
service area through periodic and regularly scheduled collection of garbage, rubbish, and waste
material in accordance with the Charter and Code and within the terms of a previous agreement;
and
WHEREAS, the City and CONTRACTOR agree to consider, over the course of this
contract, alternative means to reduce the environmental impact of waste, to include recycling
efforts, measures to reduce human/bear encounters, and other such potential initiatives; and
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE CITY AND
CONTRACTOR THAT:
1. Engagement. This Agreement, a franchise contract for collecting and disposing of
the garbage, rubbish and waste materials of businesses, residences, and public entities
of and within the City and its service area, is hereby awarded to CONTRACTOR,
subject to approval by the voters under Charter Section 13.6.
2. Compliance. CONTRACTOR will comply with the terms and provisions of all
Charter and Code provisions and will follow regulations of the City in connection
therewith. Charter Section 13.5 is incorporated herein by this reference. To the
extent that any provisions of this Agreement conflict with the Charter or Code, the
Charter and Code shall govern.
3. Service. (a) CONTRACTOR will provide continuous and uninterrupted service to
the public in all sections of the City and its service area in accordance with the terms
of this Agreement throughout the entire period hereof except as provided in paragraph
13 herein. (b) The City and CONTRACTOR agree to the terms and conditions of
CONTRACTOR' Service Policies, and CONTRACTOR agrees to perform according
to said Service Policies, which are attached hereto as Exhibit 1. (c) Should the City
adopt service policies whose effect is to impose requirements or restrictions on
Contractual Agreement Between
The City of Seward and Alaska Waste - Kenai Peninsula, LLC
Page 1 of 11
CONTRACTOR' performance which will cause CONTRACTOR additional costs to
provide service, the City shall provide CONTRACTOR the opportunity to determine
its additional costs and to request a rate adjustment in the manner provided by Charter
and Code. (d) CONTRACTOR agrees to collect and transport all garbage, rubbish
and waste material collected within the City and its service area to a site and facility
designated by the Kenai Peninsula Borough and to comply with the regulations
established for such facility.
4. Term of Agreement. (a) This Agreement is effective upon execution by both
Parties and as of the date first above written. The collection services provided under
this Agreement shall commence at 12:01 a.m. on January 1, 2013 or as soon
thereafter as practicable, and shall continue for a minimum term of seven (7) years,
expiring no earlier than 11:59 p.m. December 31, 2019, unless earlier terminated
under the provisions of the Charter or this Agreement. (b) Unless this Agreement is
terminated pursuant to the provisions of the Charter, paragraph 15 of this Agreement,
or any other provision of this Agreement, the Parties agree that this Agreement may
be renewed for up to three (3) additional years on the same terms and conditions as
provided herein; provided, however, 1) CONTRACTOR first notifies the City of its
desire to renew this Agreement under the same terms and conditions and provides
written notice to the City in accordance with this Agreement at least one hundred
eighty (180) days prior to the expiration of the current term; 2) CONTRACTOR is
not in default under any term or provision of this Agreement; and 3) the City Council,
at the time the renewal is requested, approves the renewal. The maximum term of
this contract shall be ten (10) years.
Following the termination of this Agreement for any reason prior to the expiration of
the initial term or renewal term, CONTRACTOR shall continue to provide the
services under this Agreement, at the City's election, until 11:59 p.m. on the last day
of the first full month following the date the City gives CONTRACTOR notice of
termination.
5. Insurance.
a. Coverage Requirements. Without limiting its Indemnities, CONTRACTOR
will secure and maintain insurance coverage meeting the requirements in this
Section. Each liability policy must provide contractual liability coverage for
Contractor's Indemnities, including any necessary endorsement, schedule or
documentation. CONTRACTOR agrees that, at its sole cost and expense, it
will obtain and maintain public liability insurance, insuring against all
liabilities, claims and demands for injuries, loss and /or damage which result
from the performance of services pursuant to this Agreement as follows:
(i) General Liability Insurance. Written on ISO policy form CG
00 01 (occurrence) or its equivalent (and not CG 00 02 claims
made) with limits of not less than the following:
General Aggregate: $4 million
Contractual Agreement Between
The City of Seward and Alaska Waste - Kenai Peninsula, LLC
Page 2 of 11
Products /Completion Operations Aggregate: $4 million
Personal and Advertising Injury: $1 million
Each Occurrence: $2 million
(ii) Automobile Liability Coverage. Insurance meeting the
following requirements:
1. Written on ISO policy forms CA 00 12 or CA 00 20 (or
equivalent) with a limit of liability not less than $2 million for
each accident
2. Endorsed to delete the pollution and /or the asbestos exclusion
and include pollution liability (using form CA 99 48 or its
equivalent) for accidental spills and discharges while
transporting and /or processing materials; and
3. Covering all Vehicles that drive on public roads.
If contractor is subject to federal regulations, Contractor will also
maintain any other coverage necessary to satisfy state or federal
financial responsibility requirements.
(iii) Liability coverage for pollution conditions resulting from
transported cargo. With a limit of not less than $2 million per
occurrence covering loss (including cleanup costs) the
CONTRACTOR becomes legally obligated to pay as a result of
claims for bodily injury, property damage, and cleanup costs
(including expenses required by environmental laws or incurred
by federal, state, city, or third parties) resulting from pollution
conditions caused by transported cargo (including waste). For
the purpose of this subsection, "pollution conditions" includes
the dispersal, discharge, release, or escape of any solid, liquid,
gaseous or thermal irritant or contaminant (such as smoke,
vapors, soot, fumes, acids, alkalis, toxic chemicals, medical
waste, and waste materials) into or upon land, any structure on
land, the atmosphere, or any watercourse or body of water
(including groundwater), provided the conditions are not
naturally present in the environment in the amounts or
concentrations discovered.
CONTRACTOR'S general liability policy may be endorsed to
provide for this pollution liability coverage.
(iv) Workers Compensation and Employers' Liability. Insurance
providing the following:
1. Workers' compensation benefits required by applicable law
(including the State Labor Code or by any other state labor
law), and for which Contractor is responsible; and
Contractual Agreement Between
The City of Seward and Alaska Waste - Kenai Peninsula, LLC
Page 3 of 11
2. Employers' Liability coverage with limits of not less than the
following:
Each accident: $1 million
Disease — policy limit: $1 million
Disease — each employee: $1 million
b. Insurer qualifications. Contractor will secure insurance provided by an
insurer meeting the following qualifications:
(i) is acceptable to the City of Seward,
(ii) is an admitted company in State,
(iii) has a size category of VII or larger by A.M. Best Company, Inc.,
and
(iv) has a rating of A or better by A.M. Best Company, Inc.
c. Evidence of coverage. Contractor will provide Certificates of Insurance,
endorsements, schedules and other evidence of insurance coverage requested
by the City, at the following times:
(i) on or before the contract commencement date,
(ii) promptly upon renewal of policies, and
(iii) within ten (10) days of request by the City.
1. All insurance required herein shall name the City as an
additional insured. All insurance premiums shall be the
obligation of and shall be paid by CONTRACTOR. A valid
Certificate of Insurance shall be delivered to the City's Finance
Director at the signing of this Agreement. Each insurance
policy shall contain a clause whereby the insurance company
agrees to give written notice to the City prior to any
cancellation of such policies of insurance in accordance with
the applicable provisions of such policies. The amount of the
insurance policy deductibles are subject to approval by the
City.
d. Certificates of Insurance. Contractor will provide certificates (or other
evidence of coverage) containing the following information:
(i) Contract name, explicitly identifying this Agreement.
(ii) Types, policy numbers, policy effective /expiration dates, and
limits.
(iii) 30 days' cancellation notice: Containing express condition that
the City of Seward must receive written notification by mail in
advance of cancellation for all policies evidenced on the
certificate of insurance in accordance with the applicable
provisions of such policies.
(iv) Deductibles and self - insured retentions. Identifying any
deductible and self - insured retention, and upon City request, the
Contractual Agreement Between
The City of Seward and Alaska Waste - Kenai Peninsula, LLC
Page 4 of 11
CONTRACTOR will reduce any self-insured retention as it
applies to the City or provide a letter of credit, certificate of
deposit or other fmancial assurance acceptable to the City,
guaranteeing payment of all retained losses and related costs and
expenses related to investigations, claims administration, and
legal defense.
(v) Claims made. If the City waives the prohibition on procuring
claims made policies and insurance coverage is written on a
claims -made form, then evidence that the "retro date" is before
the Agreement commencement date. CONTRACTOR must
maintain that coverage for at least five (5) years after the
termination date of this Agreement (or longer as required under
this Agreement). Promptly upon request, CONTRACTOR must
provide City with evidence of this coverage. THIS PROVISION
SURVIVES THE TERMINATION OF THIS AGREEMENT.
e. Endorsements. CONTRACTOR must provide copies of the following
endorsements or other documentation with respect to CONTRACTOR and its
subcontractors:
(i) Additional insured. Endorsements to each liability policy,
explicitly adding City and its "officers, agents, and employees"
as additional insured.
(ii) Waiver of subrogation;
(iii) Insurance is primary and not contributing with any other
insurance or self-insurance programs maintained by City.
(iv) Excluding any "insured v. insured" clause in a liability policy
with respect to City as an additional insured; and
(v) Providing dedicated limits under a liability policy in favor of
City as an additional insured.
f. Schedules. Contractor must provide schedules or other evidence that liability
policies of CONTRACTOR provide contractual liability coverage for
Indemnities, such as listing this Agreement as an "insured contract ".
g. Notice of Claims. If any person makes a claim against CONTRACTOR in
excess of the amount of any deductibles or self - insured retentions,
CONTRACTOR will promptly notify City of the claim.
6. Contractor Indemnity, Defense and Release
a. To the extent allowable under applicable law, CONTRACTOR will indemnify
and hold harmless, defend with counsel approved by the City, and release the
City, its officials, employees, agents, and contractors from and against all
liabilities and losses paid, incurred or suffered by, or asserted against, the City
or any of its related parties, including any claims, demands, penalties, fines,
judgments, liabilities, settlements, damages, costs or expenses (including,
without limitation, reasonable attorney, consultant and expert fee, court costs
and litigation expenses) of whatever kind or nature, known or unknown,
contingent or otherwise, to the extent arising out of or in any way resulting
from ' operations under this Agreement or the use of any of the City's
Contractual Agreement Between
The City of Seward and Alaska Waste - Kenai Peninsula, LLC
Page 5 of 11
property except to the extent such damages arise from the negligence or
willful acts or omissions of the City, its officials, employees, agents, or
contractors.
b. CONTRACTOR' indemnification and defense of the City, its officials,
employees, agents, and contractors shall extend to any claims arising out of or
m any way related to this Agreement and the presence, disposal, release or
threatened release of any hazardous material, in each case only to the extent
caused by the Contractor or arising from the Contractor's operations
hereunder, which is on, from or affecting public or city land, soil, water,
ground water, vegetation, building, personal property, persons, animals, or
otherwise including any personal injury (including wrongful death) or
property damage to the extent arising out of or related to any such hazardous
materials, and any lawsuit brought or threatened, settlement reached or
government order relating to such hazardous materials (except for damages
arising from the negligence or willful acts or omissions of the City, its
officials, employees, agents, contractors or any other third parties that are
unrelated to the Contractor).
c. CONTRACTOR shall furnish to the City's Finance Director a performance
bond in the sum of Twenty -Five Thousand Dollars ($25,000) conditioned
upon the covenants, agreements, stipulations and conditions thereof The
executed performance bond shall be attached to this Agreement and
incorporated hereto and made a part hereof
7. Fees Established. CONTRACTOR shall be entitled to receive the fees specified in
the Rate Schedule for Garbage and Refuse Services attached hereto as Exhibit 2, as
may be amended from time to time according to the terms of the Charter, Code, and
this Agreement.
8. Record of Services. On a monthly basis, CONTRACTOR shall supply the City with
an accurate record of the gross revenues billed and collected, for the purposes of
paying the 3% franchise fee identified in Section 10.
9. Customer Contact Point. CONTRACTOR shall serve as the primary point of
customer contact and shall receive customers' applications for service, provide the
customer with information regarding services available and fees for such services,
and receive customer complaints regarding service.. The City will accept and
forward any customer complaints that are brought to the City's attention, on to
CONTRACTOR.
10. Franchise Fee. The Seward City Charter §13.5(7) requires that a franchise
contribute to the cost of maintaining local roads, alley ways, etc. which the franchise
may use in the conduct of its business. The franchise fee imposed under this section
shall be three percent (3 %) of CONTRACTOR' gross revenues actually collected
within the corporate limits of the City for each month. The fee shall be due and
payable on the 20 day of the following month, and if not paid timely, shall be
subject to penalties and interest as provided in Seward City Code §14.01.055.
Contractual Agreement Between
The City of Seward and Alaska Waste - Kenai Peninsula, LLC
Page 6 of 11
11. Rate Adjustment. The City and CONTRACTOR agree that the Rate Schedule will
be adjusted beginning on January 1 in the second full calendar year of the Term (in
this case, January 1, 2014) and each subsequent January 1, equal to the following:
a. The Rate Schedule in effect during the prior contract year (or portion
thereof), plus or minus the percentage of the Consumer Price Index (CPI) bid
in response to the RFP; in this case, 140% of the annual CPI.'
b. The rate adjustment proposed in this Section 11 is subject to approval by the
Seward City Council, of a Refuse Tariff adjustment which is to be proposed to
the Council upon approval of this Agreement. Said Refuse Tariff adjustment
will propose that the CPI increase become an automatic adjustment effective
January 1 each year beginning January 1, 2014 without need of further City
Council approval, and that all other amendments to the Rate Schedule shall
require further Council approval.
12. Independent Contractor. It is specifically acknowledged and agreed that when
fulfilling its obligations pursuant to this Agreement, CONTRACTOR is an
independent contractor and the City has no control or right to control
CONTRACTOR' operations, equipment and /or personnel except as expressly set
forth in this Agreement.
13. Force Majeure. If the failure of CONTRACTOR to perform under this Agreement
is due to any fault of the City, acts of God, fuel or repair supplies, fire, explosion,
tempest, weather, war, strikes, earthquakes or accidents directly or indirectly affecting
CONTRACTOR' performance ( "Excuses ") and the Excuse is beyond the reasonable
control of CONTRACTOR or not the result of CONTRACTOR' act, or omission, or
negligence, then the failure of CONTRACTOR to timely perform under this
Agreement shall not constitute a default or breach under this Agreement, and no
penalties or damage shall be payable to the City by CONTRACTOR or its agents, and
the time for CONTRACTOR' performance under this Agreement shall be extended
from time to time and as often as such events occur by a period of time equal to the
time lost.
14. Arbitration. If a dispute arises between the parties concerning their respective rights
under this Agreement (excluding rate adjustments), and where commercially
reasonable and practicable, the parties shall seek to resolve the dispute by using an
appropriate form of alternative dispute resolution prior to initiating litigation
proceedings. If the parties are unable to reach resolution within sixty (60) days
following notice of a written claim, either party may initiate litigation proceedings.
Rate adjustments shall not be the subject of or subject to arbitration.
15. CONTRACTOR Default. Subject to the provisions of Charter Section 13.5, if
CONTRACTOR is in default under this Agreement and the default is not excused or
Consumer Price Index (CPI) means the consumer price index (CPI -U), all items, 1982 -84 =100 for urban wage
earners and clerical workers, Anchorage, Alaska area, as published by the U.S. Department of Labor /Bureau of
Labor Statistics (initial release). Note: The 2014 Rate Schedule will utilize CPI Data from the calendar year 2012.
Contractual Agreement Between
The City of Seward and Alaska Waste - Kenai Peninsula, LLC
Page 7 of 11
the fault of the City, then CONTRACTOR shall have ten (10) business days
following written notification given according to paragraph 19 hereunder, in which to
cure the default. If the default has not been cured at the end of the ten (10) business
days, this Agreement shall terminate.
The City may also terminate this Agreement for the violation of any of its provisions,
for the misuse or non -use hereof, for failure to comply with any provision hereof, or
any regulation imposed under authority of the Charter or Code.
16. Equipment and Services. (a) CONTRACTOR shall provide sufficient equipment to
provide uninterrupted service to its customers and at its sole cost and expense, shall
maintain and keep that equipment in good repair and operating condition and shall
provide all fuel, lubricants, tires and other materials and supplies necessary for the
operation of that equipment. (b) CONTRACTOR shall furnish trained and
competent personnel at its sole cost and expense as well as all employee required or
necessary to adequately furnish services pursuant to this Agreement. At all times
CONTRACTOR shall be solely responsible for the supervision of its equipment and
personnel. (c) CONTRACTOR shall perform all services in a courteous,
professional and competent manner. CONTRACTOR shall not litter in the process of
collecting refuse, nor allow any refuse to flow or fall from any equipment used when
performing services. CONTRACTOR shall repair or replace, at its sole cost and
expense, any container(s) damaged as a result of any act, conduct or omission by
CONTRACTOR when performing services pursuant to this Agreement except for
reasonable wear and tear. (d) CONTRACTOR shall provide a toll free number to the
City and its customers located in the City to call CONTRACTOR' principal place of
business. (e) CONTRACTOR shall ensure that all required customers have signed
up for refuse collection services as required by Seward City Code § 15.05.010 (a), by
coordinating new customer service with the City of Seward or by advertising, or any
other reasonable means, and shall ensure that customers have a convenient means by
which to establish new service.
17. Violations Reporting. CONTRACTOR shall report to the City violations of local,
state, or federal law relating to the collection and disposal of garbage, rubbish and
waste material in the City and its service area.
18. Additional or Special Pick Up. CONTRACTOR shall respond to customer requests
for additional or special pick up (non- scheduled service) within twenty -four (24)
hours of such request unless prevented by weather, blocked access, or other reasons
beyond the reasonable control of CONTRACTOR. Sunday shall not be counted
when computing the twenty -four (24) hour response period. Unless excused by
weather, blocked access, or other reasons beyond the reasonable control of
CONTRACTOR, if CONTRACTOR fails to respond within twenty -four (24) hours
the next pick up will be at no cost.
19. Customer Billing and Collections. Invoicing and billing of all customers will be the
responsibility of the Contractor. The customer will be invoiced for collection
Contractual Agreement Between
The City of Seward and Alaska Waste - Kenai Peninsula, LLC
Page 8 of 11
services, waste disposal, container rental, taxes and fees, and any additional selected
services. All invoices will include service address, coverage of dates invoiced, and
the rate for the customer's level of service. Contractor shall be responsible for
collections of all fees and taxes due the Contractor from customers. Contractor may
elect to forward to the City, information for all customers for whom reasonable
efforts to collect have been unsuccessful for a period of at least 120 days, and the City
may elect to begin proceedings to place a lien upon the property of those customers to
satisfy payment of outstanding bills. The Contractor is required to enforce collections
through reminder letters and assessment of late fees and interest, prior to the City's
assuming the debt for the purposes of enforcement. The City has no obligation to
pursue such enforcement action, but may elect to do so in order to ensure compliance
with the provisions of Seward City Code mandating participation in refuse
collections.
20. Notices. Any notice or demand which under the terms of this Agreement or any state
statute, Charter provision, or Code provision may or must be given or made by the
parties hereto shall be in writing and given and made by personal delivery or by
mailing by certified mail or registered mail, addressed to the other party as follows:
Contractual Agreement Between
The City of Seward and Alaska Waste - Kenai Peninsula, LLC
Page 9 of 11
City of Seward Alaska Waste - Kenai Peninsula, LLC
City Manager Attn: Matt O'Connell, Division Manager
P.O. Box 167 6301 Rosewood St.,
Seward, Alaska 99664 Anchorage AK 99518
Either party may, however, designate in writing such new or other address to which such
notice or demand shall thereafter be so given, made or mailed. Any notice given under
this Agreement by mail shall be deemed delivered when deposited in a United States
general or branch post office, enclosed in a registered or certified prepaid wrapper
addressed as set forth above.
21. Interpretation. This Agreement, together with the Charter and Code, contains the
entire agreement between the Parties. There is no other understanding, oral or
written, which in any manner changes or enlarges what is set forth in this Agreement.
22. Assignment. CONTRACTOR shall not sell, assign, sublet or allow another to use
this Agreement (the franchise contract) without prior approval by resolution of the
City Council. This provision is subject to Charter Section 13.8.
23. Time of the essence. Time is of the essence of each and every provision of this
Agreement.
24. Binding Effect. This Agreement shall extend to and be binding upon the heirs,
administrators, executors, successors, and assigns of the respective Parties.
25. Headings. Headings used in this Agreement are for convenience only and shall not
affect the construction of this Agreement.
26. Applicable Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Alaska, excluding any conflict of law, rule or principle,
which might refer such construction to the laws of another state or jurisdiction.
27. Modification. Except for rate adjustments in Section 11, no modifications, changes,
or amendments may be made to this Agreement by either Party except in a written
instrument executed by each party or as may be required by the applicable provisions
of the City Charter, City Code, or Alaska Statutes.
28. Waiver. The failure of either Party to insist upon strict performance of any provision
of this Agreement shall not constitute a waiver of or estoppel against asserting the
right to require that performance in the future. A waiver or estoppel in any one
instance shall not constitute a waiver of or estoppel against asserting the right to
require that performance in the future. A waiver or estoppel in any one instance shall
not constitute a waiver or estoppel with respect to a later breach or a similar nature or
otherwise. A course of performance established by a party shall also not estop the
other party from complaining of a later breach similar in nature.
Contractual Agreement Between
The City of Seward and Alaska Waste - Kenai Peninsula, LLC
Page 10 of 11
29. Construction. The rule of contract construction that ambiguities, if any, in a writing
be construed against the drafter shall not apply to this Agreement.
30. Severability. In the event that any term, condition, or provision of this Agreement is
declared by a court of competent jurisdiction to be void or unenforceable, the
remaining terms, conditions, and provisions of this Agreement shall remain valid and
enforceable as if such void of unenforceable term, condition, or provision was
omitted from the Agreement when the Agreement was first executed.
IN WITNESS WHEREOF, the Parties have executed this Agreement the day and
year set opposite their respective signatures.
By: City of Seward Alaska Waste — Kenai Peninsula, LLC
Jim Hunt, City Manager Matt O'Connell, Division Manager
Date:
ATTEST:
Johanna Kinney, CMC
(City Seal)
Contractual Agreement Between
The City of Seward and Alaska Waste - Kenai Peninsula, LLC
Page 11 of 11
SCHEDULE OF YEAR 2013 FEES
REFUSE COLLECTION RATES IN SEWARD
SERVICE CHARGE FOR CONTAINERS
Monthly Charge
CONTAINER SIZE
1 x MO. I X WEEK 2 X WEEK
3 X WEEK 4 X WEEK 5 X WEEK 6 X WEEK SPECIAL
2.0- 2.4yd. $15.76 $68.25
$136.50 $204.75 $273.00 $341.25 $409.50 $31.51
2.5 -2.9 yd. $24.35 $105.44
3.0 - 2.9 yd. $210.88 $316.31 $421.75 $527.19 $632.63 $48.70
$28.00 $121.23 $242.45
4.0 - 4.9 yd. $363.68 $484.90 $606.13 $727.35 $55.99
$32.04 $138.69 $277.38
5.0 - 5.9 yd. $416.06 $554.75 $693.44 $832.13 $64.06
$38.44 $166.45 $332.90 $499.35
$665.80 $832.25 $998.70 $76.88
6.0 -7.9 yd. $44.23
$191.44 $382.88 $574.31
8 yd. $59.99 $259.76 $519.53 $765.75 $957.19 $1,148.63 $88.43
$779.29 $1,039.05 $1,298.81 $1,558.58 $119.99
MONTHLY CONTAINER RENTAL
(to rent container from contractor)
CONTAINER SIZE per month
2.0 - 2.4 yd. $25.00
2.5 - 2.9 yd. $30.00
3.0 - 3.9 yd. $36.25
4.0 - 4.9 yd. $46.25
5.0 - 5.9 yd. $56.25
6.0- 7.9yd. $66.25
,8 yd. $75.25
(LOCKABLE DUMPSTER LIDS: $15.00 per month
COMMERCIAL CAN SERVICE
Monthly Charge
NO. PICKUPS PER WEEK First Two Additional Drive Out and Pack
Containers Containers Out Service per Month
1 $26.91 $10.00 $25.00
2 $53.83 $10.00 $28.75
3 $80.74 $10.00
4 $32.50
$107.65 $10.00 $36.25
5 $134.56 $10.00 $42.50
6 $161.48 $10.00 $46.25
RESIDENTIAL SERVICE
Monthly Charge for One Time Per Week Service
First Two Cans or First Two Cans or
Two 32 gal bpc* or Two 32 gal bpc* or
One 64 gal bpc* One 64 gal bpc* One 96 gal bpc* One 96 gal bpc* Additional Cans
(customer owned) (contractor owned) (customer owned) (contractor owned) Pack Out
Single Family or Apartment 26.91 28.91 34.55
36.55 $7.00 $25.00
!BULKY ITEM PICKUP: $42.18 per item minimum or $168.75 per hour for labor and equipment
I ROLL- ON/ROLL -OFF CONTAINER SERVICE
$168.75 PER HOUR I
Time and Equipment rates apply to special pickups
TIME AND EQUIPMENT RATES
One Truck and One Person: $168.75 per hour
One Truck and Two Persons: $219.38 per hour
Special Pickups: 1.5 times the regular hourly rate
(Atter 5:00 p.m. and before 8:00 a.m.
and anytime on Saturday, Sunday or holidays)
Minimum Charge: 1/2 Hour at the applicable rate
Maintenance of Pick Up Area: $25.00 minimum charge
Extra Yardage: $9.85 per cubic yard
* bpc = Bear Proof Can
Effective: January 1,2013
EXHIBIT 2
SCHEDULE OF YEAR 2011 FEES
REFUSE COLLECTION RATES IN SEWARD
SERVICE CHARGE FOR CONTAINERS
Monthly Charge
2.0 but less than 2.5 yd. 1 x M $12.61 I X WEEK 2 X _WEEK 3 X WEEK 4 X W E X y .K 6 X WEEK SPECIAL
$54.60 $109.20 $163.79 $218.39 $272.99
2.5 yd but less than 3 yd. $19.48 $506. $2
$168.70 $253.05 $337.40 $421.75 $506.10
3 yd but less than 4 yd. $22.40 $96.98 $38.96
$193.95 $290.93 $387.91 $484.89 $581.86 $44.79
4 yd but less than 5 yd. $25.63 $110.95
5 yd. but less than 6 yd. $30.75 $221'90 $332.84 $443.79 $554.74 $665.69 $51.25
$133.16 $399.49
$266.33 $532.64 $665.80 $798.96 $61.50
6 yd. but less than 8 yd. $35.38 $153.15
8 yd. $47.99 $207.81 $306.30 $459.46 $612.61 $765.76 $918.91 $70.74
$415.61 $623.43 $831.23 $1,039.04 $1,246.85 $95.99
U A L C A N E R E SERVI E
Monthly Charge
NO. PICKUPS PER WEEK
First Two Additional Drive Out and Pack
Containers Containers Out Service per Mont
$21.53 $1.54 .er . ickup $18.96
$43.04 $1.54 . er .ickup $37.94
$64.56 $1.54 .er .ickup $56.90
$86.08 $1.54 . er . ickup $75.88
$107.60 $1.54 per pickup $94.85
6 $129.11 $1.54 per picku
$113.80
RESIDENTIAL SE_ Rma
Monthly Charge for One Time Per Week Service
First Two Cans or
Two 32 gal bpc* or One 96 gal bpc*
One 64 gal bpc* One 96 gal bpc* w /cart Additional Cans Pack Out
Single Family or Apartment 21.53
32.29 41.04 .,1.54 . er pickup $18.96
ROLL - ON/ROLL - OFF CONTAINER SERVICE
$135.00 PER HOUR
Time and E.ui.ment rates a .l to special .ickuis
TIME AND EQUIPMENT RATES
One Truck and One Person: $135.00 per hour
One Truck and Two Persons: $175.50 per hour
Special Pickups: 1.5 times the regular hourly rate
(After 5:00 p.m. and before 8:00 a.m.
and anytime on Saturday, Sunday or holidays)
Minimum Charge: 1/2 Hour at the applicable rate
Maintenance of Pick Up Area: $13.50 minimum charge
Extra Yardage: $6.00 per cubic yard
* bpc = Bear Proof Can
Effective: October 1, 2010