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HomeMy WebLinkAboutRes1992-136 . . . 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 . . . 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 . . . 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) . . . 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. . . . 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. . . . 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 . . . 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 . . . 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 . . . 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 ~N~ FRED B. ARVIDSON City Attorney LINDA S. MURPHY, CMC/AAE City Clerk (CITY SEAL)