HomeMy WebLinkAboutRes1992-136
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Sponsored by: Schaefenneyer
CITY OF SEWARD, ALASKA
RESOLUTION NO. 92-136 (Substitute)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, APPROVING A FRANCHISE FOR
THE COLLECTION & DISPOSAL OF GARBAGE AND REFUSE
SUBJECT TO APPROVAL OF THE VOTERS AT THE
OCTOBER 6, 1992, REGULAR CITY ELECTION
WHEREAS, the city of Seward currently contracts with Jason McDonald, dba Jason
Enterprises, for the collection and disposal of garbage and refuse; and
WHEREAS, that contract expires on December 31,1992; and
WHEREAS, McDonald has provided quality service to the community at a
reasonable price; and
WHEREAS, approval of a five-year franchise, with an option to extend for three
additional years, would save the city the expense in time and money of seeking
competitive bids for this service every two to three years; and
WHEREAS, rates and conditions of service are subject to City Council review and
approval; and
WHEREAS, the public interest is adequately protected under the provisions of
Section 13.5 of the City Charter; and
WHEREAS, granting of a franchise for a public utility requires the affinnative vote
of a majority of the electors voting on a proposition to approve such franchise; and
WHEREAS, it is in the public interest to provide for quality, local garbage and
refuse collection and disposal services;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The franchise agreement between the city of Seward and Jason
McDonald, dba Jason Enterprises, for the collection and disposal of garbage and refuse,
a copy of which is attached and incorporated herein by reference, is hereby approved
subject to voter approval as noted in Section 2 below.
Section 2. At the regular municipal election to be held on October 6, 1992, the city
shall submit to the qualified voters of the city the question of approval of the franchise
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 92-136
agreement noted above. An affinnative vote of a majority of the qualified electors voting
on the proposition shall be required for approval of the franchise agreement.
Section 3. The proposition shall be substantially in the following fonn:
PROPOSITION NO.
FRANCHISE AGREEMENT FOR THE COLLECTION AND
DISPOSAL OF GARBAGE AND REFUSE
Do you approve a 5-year franchise agreement with Jason McDonald, dba Jason
Enterprises, for the collection and disposal of garbage and refuse? The franchise
agreement would contain an option to extend for an additional 3 years and would
provide for an annual rate review with consumer rates to be set by resolution of the
City Council.
Section 4. The foregoing proposition shall be printed on a ballot which may set
forth other propositions. The proposition set forth in Section 3 above shall be printed in
full, and the following words shall be added as appropriate and next to a space provided
for marking the ballots:
PROPOSITION NO.
YES
NO
Section 5. This resolution shall take effect immediately upon its 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.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this
24th day of August, 1992.
THE CIlY OF SEWARD, ALASKA
/.3fl,~1 ~ &. ~f......-/
Beverly Dunham, Vice Mayor
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 92-136
AYES:
NOES:
ABSENT:
ABSTAIN:
Bencardino, Crane, Dunham, Krasnansky, Swartz & White
None
None
None
A TIEST:
APPROVED AS TO FORM:
Perkins Coie, Attorneys for the city of
Seward, Alaska
~^-f~
Fred B. Arvidson
City Attorney
(City Seal)
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CONTRACTUAL AGREEMENT
FOR THE COLLECTION AND DISPOSAL OF
GARBAGE, RUBBISH AND WASTE MATERIAL
IN THE CITY OF SEWARD, ALASKA
THIS AGREEMENT, entered into this day of ,
19___, 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
Jason McDonald, dba Jason Enterprises, hereinafter referred to as
the "Contractor", as follows:
WHEREAS, The City of Seward, by ordinance has provided for the
sanitary, economic and efficient collection and disposal of
garbage, rubbish and waste material in the city of Seward, and has,
by such ordinance, made regulations respecting the time, method and
manner of such collection and disposal; and
WHEREAS, Said Contractor has offered and provided dependable,
economic and efficient service to the business, industrial,
residential and public districts of the city of Seward through
periodic and regularly-scheduled collection of garbage, rubbish and
waste material in accordance with the ordinances of the City and
with the terms of a previous Agreement; and
WHEREAS, it is the intent and desire of the City of Seward, in
the best interests of its citizens, to maintain this high level of
service and mutual cooperation between the two parties;
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE CITY AND SAID
CONTRACTOR, That:
1. The Franchise Contract for collecting and disposing of
the garbage, rubbish and waste materials of businesses, residences
and public entities of the city of Seward is hereby awarded to said
Contractor;
2. The Contractor will comply with the terms and prov~slons
of all City ordinances and charter provisions and will follow
regulations of the city of Seward in connection therewith;
3. The city may terminate this Agreement for the violation
of any of its provisions, for the misuse or non-use hereof, for
failure to comply with any provisions hereof, or any regulation
imposed under authority of the City of Seward Charter or Code.
4. The City may require proper and reasonable extension of
the Contractor's equipment and the maintenance thereof at the
highest practicable standard of efficiency.
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CITY OF SEWARD, ALASKA
CONTRACTUAL AGREEMENT - GARBAGE
Page two
5. The City may establish reasonable standards of service
and quality of products, and prevent unjust discrimination in
service or rates.
6. The Contractor must provide continuous and uninterrupted
service to the public in accordance with the terms of this
Agreement throughout the entire period hereof.
7. The city reserves the right to impose other regulations
determined by the city council to be conducive to the health,
safety, welfare, and convenience of the public.
8. The Contractor is required to permit joint use of its
property and appurtenances located in the streets, alleys, bridges,
easements, and public places by the city and other utilities,
insofar as such joint use may be reasonably practicable and upon
payment of reasonable rental therefor. In the absence of agreement
between the Contractor and other utilities, the city may, upon
application by another public utility, provide for arbitration of
the terms and conditions of such joint use and the compensation to
be paid therefor.
9. The Contractor is required to pay any part of the cost of
improvement or maintenance of streets, alleys, bridges, easements,
and public places that arises from its use thereof and to protect
and save the City harmless from all damages arising from such use.
10. The Contractor must at least annually file reports with
the city clerk concerning the utility and its financial operation
and status and file with the city manager such drawings and maps of
the location and nature of its facilities as the Council may
request.
11. The Contractor shall report any violation of the city
ordinances or transfer site facility regulations or any borough,
state or federal law or regulation including environmental laws,
regulations, orders or directives to the city manager or the chief
of police of the city by filing an official complaint against the
violator. Irregularities or violations of ordinances or
regulations involving unknown persons shall be reported to the city
manager or chief of police.
12. The Contractor may not sell, assign, sublet, or allow
another to use the Agreement, unless the Council gives its consent.
Nothing in this section shall limit the Contractor's right to
mortgage its property or franchise, nor shall it restrict the
rights of the purchaser, upon foreclosure sale, to operate the
same, except that such mortages or purchaser shall be subject to
the terms of the franchise and provisions of the City Charter or
Code.
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CITY OF SEWARD, ALASKA
CONTRACTUAL AGREEMENT - GARBAGE
Page three
13. The Contractor shall furnish and operate safe equipment
in the form of at least three (3) vehicles, one of which will have
a minimum bulk capacity of 34 cubic yards, another shall have a
minimum of 18 cubic yards, the third shall be a Class 7 or similar
semi-tractor equipped with an industry-standard roll on-roll off
type chasis. Such equipment and vehicles shall, at all times
throughout the term of this Agreement, be operated and maintained
in proper and safe working order to minimize risk of injury to
persons and property.
14. The Contractor shall service all sections of the City on
routes and schedules to be approved by the City.
15. The Contractor agrees to collect and transport all
garbage, rubbish and waste material collected within the City to
any site and facility designated by the Kenai Peninsula Borough and
to comply with the regulations established for any facility.
16. The Contractor shall purchase and maintain the following
insurance during the term of this Agreement:
a. Comprehensive General Liability Insurance, with the
broad form of endorsement, or Commercial General Liability
Insurance with limits of liability of not less that TWO HUNDRED
THOUSAND DOLLARS ($200,000) single limit and FIVE HUNDRED THOUSAND
DOLLARS ($500,000) combined single limit for bodily injury,
property damage or personal injury liability. Coverage to include:
Premises and Operations, Product/Completed Operations, Owners and
Contractors Protective, Contractual Liability without exclusions
for explosions, collapse and underground. Policy to be
additionally endorsed to provide Sudden and Accidental Pollution
coverage arising out of the activities or events taking place under
the terms of this contract.
b. Commercial automobile liability insurance with
limits of not less than ONE HUNDRED THOUSAND/THREE HUNDRED THOUSAND
($100,000/$300,000) DOLLARS.
c. Contractor shall purchase and maintain such
insurance as will protect it from claims under Workers'
Compensation acts and other employee benefits acts for damages
because of bodily injury, including death, to its employees and all
others and for damages to property, any or all of which may arise
out of or result from the Contractor's operations under this
contract, whether such operations by the Contractor or by anyone
directly or indirectly employed by the Contractor.
d. Pollution insurance. The Contractor shall procure
and maintain throughout the term of this Agreement, environmental
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CITY OF SEWARD, ALASKA
CONTRACTUAL AGREEMENT - GARBAGE
Page four
remediation and environmental impairment liability insurance,
including sudden and accidental coverage and gradual pollution
coverage. Such coverage shall also include clean-up cost coverage
associated with any activity by the contractor under the terms of
this Agreement. The Contractor shall maintain limits of liability
of ONE MILLION DOLLARS ($1,000,000.00) for anyone accident or
occurence. The Contractor may receive a waiver of the gradual or
chronic pollution coverage upon provision of a certification from
a reputable insurance broker acceptable to the City that slow and
chronic pollution coverage is not required consonant with good city
business practice and accepted standards in the industry.
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, the Contractor. A valid certificate of
Insurance shall be delivered to the city clerk at the signing of
this Contract and shall be held by the City for the term of this
Agreement. Each insurance policy shall contain a clause whereby
the insurance company agrees to give written notice to the city
clerk fifteen (15) days prior to any cancellation or alteration of
said policy.
e. The minimum amounts and types of insurance provided
by the Contractor shall be subject to revision at the city's
request in order to provide continuously throughout the term of
this Agreement and any extensions hereof, a level of protection
consonant with good business practice and accepted standards of the
industry. Such factors as increases in the cost of living,
inflationary pressures, new risk, and other conditions shall be
utilized in assessing whether the minimum insurance requirements
should be increased or changed from the types and amounts noted
above.
17. The Contractor shall defend, indemni fy and hold ci ty
harmless from and against any claims, demands, penalties, fines,
judgements, liabilities, settlements, damages, costs, or expenses
(including without limitation, attorney, consultant and expert
fees, court costs and litigation expenses) of whatever kind or
nature, known or unknown, contingent or otherwise, arising out of
or in any way related to any and all claims for damages, including
personal injuries and property damage, arising out of or resulting
from Contractor's operations under this Agreement or the use of any
of City'S property except only for damages arising from the sole
negligence or willful act or omissions of City, its agents,
employees, or contractors.
Contractor's indemnification shall extend to any claims
arising out or or in any way related to this contract and the
presence, disposal, release or threatened release of any Hazardous
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CITY OF SEWARD, ALASKA
CONTRACTUAL AGREEMENT - GARBAGE
Page five
Material which is on, from or affecting public or city land, soil,
water, ground water, vegetation, buildings, personal property,
persons, animals or otherwise including any personal injury
(including wrongful death) or property damage 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.
Further, the Contractor shall furnish to the City Clerk an
executed document of indemnity saving the City of Seward harmless
against any loss or damage due to the negligence of the Contractor
while the collection and disposal of garbage, rubbish and waste
material is being performed, naming the city as a named-insured
therein. The executed Document of Indemnity shall be attached to
this Contract and shall be incorporated into and made a part
hereof.
Further, the Contractor shall furnish to the City Clerk a
performance bond in the sum of FIFTEEN THOUSAND ($15,000) DOLLARS
conditioned upon the covenants, agreements, stipulations and
conditions thereof. The executed performance bond shall be
attached to this Agreement and shall be incorporated into and made
a part hereof.
18. The Contractor shall be entitled to receive as
compensation for the services rendered in accordance with this
Agreement and the said resolution, the fees specified therein,
which fees shall be collected at the sole expense of the
Contractor.
19. The Contractor shall pay to the City twelve and one-half
(12.5) percent of each month's total billing for billing-and-cash-
receiving and similar administrative services described in
paragraph 20 of this Agreement;
20. The Contractor shall supply the City an accurate record
of services performed for billing purposes;
21. The City shall prepare monthly customer billings for
Contractor services and shall receive cash payments with its
utility bills. It shall maintain a customers' ledger for garbage
service and report the amounts billed and collected monthly to the
Contractor.
22. The Contract under this Agreement is for a period of five
(5) years, with the option to extend, upon satisfactory
performance, for up to three (3) additional one (1) year terms upon
the annual offerings of the City, beginning January 1, 1993, and
ending December 31, 2001, inclusive of extensions. The City, upon
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CITY OF SEWARD, ALASKA
CONTRACTUAL AGREEMENT - GARBAGE
Page six
satisfactory performance on the part of the Contractor, will offer
the Contractor an option to extend on or before September 1, and on
or by this same date during the years of optional extension. The
Contractor shall have thirty (30) days, or until September 30, to
notify the City of concurrence with and acceptance of the contract
option.
23. The City agrees, upon application by the Contractor, to
review the rates established by resolution every year to determine
whether they adequately compensate the Contractor for services
performed pursuant to this Agreement. The Contractor shall provide
with the application sufficient data on projected revenues and
expenses to support an adjustment to the rates.
24. The terms and conditions of this Contractual Agreement
may be declared terminated, null and void, at any time by written
mutual consent; provided, however, that, in the event of such a
prior termination hereof, such prior termination shall take effect
ninety (90) days after the date of said written mutual consent.
25. The City may terminate this Agreement at any time if the
Contractor defaults in any of its provisions, or if the Contractor
fails to provide the services required by this Agreement in a
proper and workmanlike manner.
IN WITNESS THEREOF, the parties hereto have executed this
Agreement, the City of Seward by its City Manager and City Clerk,
as instructed by the City Council of the City of Seward, Alaska, at
a special meeting of August 19, 1992, with the corporate seal
hereunto affixed on this day of , 1992.
CONTRACTOR:
CITY OF SEWARD, ALASKA
JASON MCDONALD,
dba, JASON ENTERPRISES
DARRYL SCHAEFERMEYER
City Manager
ATTEST:
APPROVED AS TO FORM:
Perkins Coie, Attorneys for
the city of Seward, Alaska
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FRED B. ARVIDSON
City Attorney
LINDA S. MURPHY, CMC/AAE
City Clerk
(CITY SEAL)