HomeMy WebLinkAbout15.F.1. Dick's Sanitation Refuse/Recycling Contract Renewal
IS: F: J,
City of Shakopee
Memorandum
TO: Mayor, City Council
Mark McNeill, City Administrator
FROM: Tracy Schaefer, Bradley & Guzzetta, LLC
SUBJECT: Dick's Sanitation Refuse/Recycling Contract Renewal
MEETING DATE: May 17,2005
Introduction
At its April 19, 2005 meeting, the Shakopee City Council directed Bradley & Guzzetta,
LLC to negotiate terms and conditions for a 5-year renewal contract with Dick's
Sanitation, Inc. and to explore processing contract options.
Background
The Shakopee City Council moved to maintain an organized residential refuse collection
service, negotiate terms and conditions for a five-year renewal with Dick's Sanitation,
Inc. and to explore processing contract options with NRG or Hennepin County.
Refuse Contract Changes/Additions
Attached are the major advantages of an organized refuse collection system from the
April 19 meeting, the current Dick's contract and bulk item pricing. It is important to
outline the changes and additions to the "new" Dick's Sanitation contract. All
administrative changes such as dates have also been updated and all new provisions will
be added to the appropriate sections, if the City Council concurs with the
recommendations.
a) New - Provide FREE on-line bill payment for residents;
b) New - Establish a Quarterly Residential Recycling Award. Quarterly a random
resident will be selected to receive one month free refuse service for recycling at
least one time during the month. The address will be randomly selectedfrom the
billing database;
c) New - The City will maintain its alley credit of$I,860 (adjusted annually by the
CPI). This item was added after the original contract was signed by a previous
City Council and needs to be included in the new contract;
d) Section 1.21 "Seasonal Yard Waste" - Change the 90-gallon container to a 60-
gallon container and allow up to eight (8), not four (4) biodegradable bags or cans
per week. Some residents have requested the smaller 60-gallon yard waste
containers to make it easier to transport yard waste to the curb and to store in
their garage. In order to maintain the same level of collection, four (4) additional
bags have been added/week that can be disposed curbside. The majority of
residents use a 60-gallon container for refuse collection as well;
e) Section 2.2B "Term of Contract" - Change the extension terms from "may extend
the contract for up to two (2) periods of one (1) year each to "may extend the
contract for up to three (3) periods of one (1) year each. This will allow the City
ultimate flexibility in its renewal and conditions. The City does not have to renew
for three (3) additional years, but it gives the City the option, ifit so chooses;
f) Section 2.12 "Performance Bond" - Keep the insurance bond at $50,000 -the
current amount in year five (5) of the contract. Dick's performance bond has
been decreased, according to the contract each year, due to good performance
and quality of service. The higher amounts. were included in the initial contract,
since Dick's was a new provider for the communitywide service;
g) Section 6.2B - Processing of Yard Waste - The yard waste collection period has
been extended to the Thanksgiving period to better service Shakopee's residents.
h) Attachment #1 - Price - In 2006, the average price/resident, 60-gallon container,
will amount to a $1.09/month DECREASE from the current 2005 rate. (5-year
price list is attached). Prices are contingent upon City Council entering into a
processing agreement with NRG. It is not until 5th year of the contract that there
is a slight increase in the average residential refuse price. The bulk item price will
remain the same and will increase annually by the CPI. Lastly, yard waste
collection will be $52.50 for each resident to rent a 60-gallon yard waste container for the
yard waste season (April- November).
NRG vs. Hennepin County Processing Agreements
Bradley & Guzzetta staff met with representatives from both NRG and Hennepin CountY
Processing facilities. Both facilities are interested and can provide the necessary capacity
to process Shakopee's refuse under the same terms and conditions of the current five-year
Hennepin County processing contract. However, Hennepin County's price remains
stable at $61/ton; whereas, NRGwilllower its price to $53/ton to gain the five-year
contract. NRG's price will increase with a rate of 3% or CPI annually. Entering into a
contract with NRG will save Shakopee resident's $8/ton to process refuse compared to
the $611ton Hennepin County 2005 contract rate.
NRG does have the ability to handle two (2) days of storage and has backup facilities if
any overflow is needed. Since NRG is located just South of Shakopee on 169 in Scott
County, the closer proximity for waste disposal also allows Dick's Sanitation to enter into
a new five-year agreement without requesting any fuel surcharge clauses in its contract.
If Council concurs with Bradley & Guzzetta's recommendation, the formal contract will
be written and reviewed by Bradley & Guzzetta, city legal counsel and staff.
Recommendation
Bradley & Guzzetta recommends that the Shakopee Council enter into a five-year refuse
service collection contract with Dick's Sanitation, including all additions and changes
outlined above, and enter into a five-year concurrent contract with NRG for the
processing of Shakopee refuse.
Action
Direct the City's consultant, Bradley & Guzzetta, LLC and appropriate city staff to
a) enter into a five-year refuse service agreement with Dick's Sanitation;
b) enter into a five-year processing agreement with NRG.
Note: Due to the length of the contract we did not copy it. If you would like to see a
copy, there is one in Administration.
Dick's Sanitary Contract Prices 2006 - March 2011**
Hauler Bills, City Processing, No Containers - Year 1 (2006) Price
Size Refuse** Recycling Total Yard Waste* 2005 Rates Decrease
30 Gallon $8.20 $3.40 $11.60 $1.25 $12.67 $1.07
60 Gallon $10.30 $4.30 $14.60 $1.25 $15.69 $1.09
90 Gallon $12.00 $5.00 $17.00 $1.25 $18.03 $1.03
Town Home - 30 G & 60 G $6,25 $2.55 $8.80 $1.25 $9.86 $1.06
Town Home - 90 Gallon $7.05 $2.95 $10.00 $1.25 $11.04 $1.04
Hauler Bills, City Processing, No Containers - Year 2 (2007)
Size Refuse** Recycling Total Yard Waste*
30 Gallon $8.20 $3.40 $11.60 $1.25 $12.67 $1.07
60 Gallon $10.30 $4.30 $14.60 $1.25 $15.69 $1.09
90 Gallon $12.00 $5.00 $17.00 $1.25 $18.03 $1.03
Town Home - 30 G & 60 G $6.25 $2.55 $8.80 $1.25 $9.86 $1.06
Town Home - 90 Gallon $7.05 $2.95 $10.00 $1.25 $11.04 $1.04
Hauler Bills, City Processing, No Containers - Year 3 (2008)
Size Refuse** Recycling Total Yard Waste*
30 Gallon $8.53 $3.54 $12,06 $1.45 $12,67 $0.61
60 Gallon $10.71 $4.47 $15.18 $1.45 $15.69 $0.51
90 Gallon $12.48 $5.20 $17.68 $1.45 $18.03 $0.35
Town Home - 30 G & 60 G $6.50 $2.65 $9.15 $1.45 $9.86 $0.71
Town Home - 90 Gallon $7.33 $3.07 $10.40 $1.45 $11.04 $0.64
Hauler Bills, City Processing, No Containers - Year 4 (2009)
Size Refuse** Recycling Total Yard Waste*
30 Gallon $8.53 $3,54 $12.06 $1.45 $12.67 $0.61
60 Gallon $10,71 $4.47 $15.18 $1.45 $15.69 $0.51
90 Gallon $12.48 $5.20 $17.68 $1.45 $18.03 $0.35
Town Home - 30 G & 60 G $6.50 $2.65 $9.15 $1.45 $9.86 $0.71
Town Home - 90 Gallon $7.33 $3.07 $10.40 $1.45 $11.04 $0.64
Hauler Bills, City Processing, No Containers - Year 5 (2010 - March 2011)
Size Refuse** Recycling Total Yard Waste*
30 Gallon $8. 87 $3.68 $12.55 $1.50 $12.67 $0.12
60 Gallon $11.14 $4.65 $15.79 $1.50 $15.69 ($0.10)
90 Gallon $12.98 $5.41 $18.39 $1.50 $18.03 ($0.36)
Town Home - 30 G & 60 G $6.76 $2.76 $9.52 $1.50 $9.86 $0.34
Town Home - 90 Gallon $7.63 $3.19 $10,82 $1.50 $11.04 $0.22
*Seasonal Yard waste - $52.50/year
** Bulk Prices will remain the same as the 2005 prices, with a CPI index annual adjustment
*** Prices do not include the 9.75% tax on refuse.
Residential Refuse & Recycling Rate Comparison Study- 2005
Shakopee's current rates w/processing
30 Gallon 60 Gallon 90 Gallon
Taxable Services $ 8.87 $ 10.98 $ 12.62
Tax Exempt Services $ 3.80 $ 4.71 $ 5.41
$ 12.67 $ 15.69 $ 18.03
Hastings
30 Gallon 60 Gallon 90 Gallon
Taxable Services $ 8.93 $ 10.63 $ 12.03
Tax Exempt Services $ 3.30 $ 3.30 $ 3.30
$ 12.23 $ 13.93 $ 15.33
Wayzata
30 Gallon 60 Gallon 90 Gallon
Taxable Services $ 7.49 $ 11. 70 $ 15.91
Tax Exempt Services $ 3.60 $ 3.60 $ 3.60
$ 11.09 $ 15.30 $ 19.51
White Bear Lake
30 Gallon 60 Gallon 90 Gallon
Taxable Services $ 9.50 $ 13.00 $ 17.00
Tax Exempt Services $ 2.70 $ 2.70 $ 2.70
$ 12.20 $ 15.70 $ 19.70
Farmington
30 Gallon 60 Gallon 90 Gallon
Taxable Services $ 10,95 $ 13.95 $ 16.95
Tax Exempt Services $ 3.05 $ 3.05 $ 3.05
$ 14.00 $ 17.00 $ 20.00
Average residential rates over 6 cities in the metro area:
30 Gallon 60 Gallon 90 Gallon
Taxable Services $ 10.25 $ 14.26 $ 17.46
Tax Exempt Services $ 3.27 $ 3.36 $ 3.30
$ 13.52 $ 17.62 $ 20.76
AVE""RAGE RATES FOR 10 CI11ES IN THE METRO AREA *
From survey: Average monthly rates
30 Gallon 60 Gllllon 90 Gallon
Taxable Services $ 9.42 $ - $ 12.71 $ - $ 15.87
Tax Exempt Services $ 3.18 $ - $ 3.20 $ - $ 3.19
$ 12.61 $ 15.91 $ 19.06
Shakopee
30 Gallon 60 Gallon 90 Gallon
Taxable Services $ 8.87 $ 10.98 $ 12.62
Tax Exempt Services $ 3.80 $ 4.71 $ 5.41
$ 12.67 $ 15.69 $ 18.03
Data Collection Information
*Burnsville, Eagan, Lakeville, Wayzata, White Bear Lake, Hastings, Farmington, Bloomington,
Above information was taken from compiling current city contracts similar to Shakopee.
All refuse levels of services are exact in comparison.
All information from city contracts was compiled from public information.
All private hauler information was based on surveys of current rates and levels of service
from existing or established customers.
All rates include recycling - but do not include state and county taxes.
Yard waste was not included.
City of Shako pee
Memorandum
TO: Mayor, City Council
Mark McNeill, City Administrator
FROM: Tracy Schaefer, Bradley & Guzzetta, LLC
SUBJECT: Refuse/Recycling Contract Renewal
MEETING DATE: April 19, 2005
Introduction
City Council is asked to review its refuse options for residential refuse services, and give
direction as to negotiating the renewal of the existing contract with Dick's Sanitation.
Background
Shakopee's contract with Dick's Sanitation for refuse/recycling/yard waste, "refuse,"
services and the contract for refuse processing services with Hennepin County expire on
March 17,2006. Currently, Shakopee's contract includes all single family dwelling units
(single family, town homes and up to four unit apartments) located within the MUSA
area.
Shakopee's residents have been serviced by an organized, or "closed" system for over
thirty years. With the contracts expiring, the City Council has the opportunity to evaluate
its residential refuse options:
1. Renew the refuse contract with Dick's Sanitation and maintain the current
organized refuse collection system.
2. Issue RFPs to other qualified refuse haulers to maintain the. organized collection
system.
3. Allow the contracts to expire and open refuse collection up to the non-organized,
"open," system.
An organized system is when the City contracts with a hauler for refuse services; a non-
organized system is when the residents must make their own arrangements for refuse
disposal.
Advantages and disadvantages are present in both the organized and non-organized
systems.
Organized hauling provides:
. Economies of scale (the more customers served by one company the better price
and services offered),
. Elimination of multiple trucks throughout the week in residential neighborhoods
(enhancing public safety, reduced wear and tear on city streets, minimization of
truck noise and reduction of litter),
1
. Guarantees that all served residents will be provided with a legal refuse option,
insuring waste is processed before becoming landfill ed, negating liability
concerns for the City,
. Uniform refuse pickup, including a streamlined complaint service, including
penalty provisions, via the refuse contract and City Hall.
Although the organized system has several advantages, its main disadvantage is the lack
of customer choice. This was more of an issue ten years ago before the large refuse
haulers began merging/acquiring the small local haulers, which has reduced residents'
choices and competition.
Non-organized hauling allows each resident to choose any licensed hauler. If the
industry changes, and increases the number of local haulers, there may be more
competition between haulers.
Although the disorganized system allows "resident selection:"
. The City is unable to assist residents with complaints,
. The hauler determines where the waste will go,
. There will be increased daily truck traffic, noise, air contaminants and litter,
. There will be an increased need for road repair,
. There is potential for some residents not to hire a refuse hauling service, resulting
in increased accumulated, abandoned or illegal dumping of refuse. That will
require increased enforcement costs for the City to ensure safety and compliance
with City ordinances and public safety.
Organized v. Disorganized Recommendation
It is recommended that the City continue with the organized refuse system, due to the
City benefits outlined above.
Renew Dick's Contract v. RFPs
If the Council concurs with the recommendation to continue the organized system, the
Council must decide if it wants to renew its existing contract with Dick's Sanitation, or
solicit Requests for Proposals (RFPs) from other haulers to provide residential refuse
services.
In 2000, the City Council issued RFPs for refuse services- the City had not solicited
proposals in the more than thirty years that the City had the organized system. More
importantly, there was an apparent dissatisfaction with the hauler at that time,. A
citywide refuse survey reinforced that the majority of Shako pee's residents were also not
pleased with the then-hauler. Customer complaint calls had been tracked by city staff,
and it indicated three - five complaint calls a week at that time. After tracking Dick's
Sanitation customer complaints over the past four years, customer complaints have
virtually been eliminated.
If City Council chose to renew with Dick's Sanitation, it would continue with the existing
provisions of the contract. Those provisions are listed on Attachment A.
2
Processing
In addition to the refuse contract with a refuse provider, the City also entered into a
processing agreement with Hennepin County's processing facility to ensure the refuse
was being properly disposed of and to take advantage of the State's processing rebate
program.
Although the current contract is with Hennepin County, NRG, located in Scott County
just south of Shakopee on 169, is also now able to accept and process Shakopee' s refuse
utilizing a newer more environmentally friendly technology. Both NRG and Hennepin
County are interested in processing Shakopee's refuse for the next five years.
The City Council should direct staff and consultant, Bradley & Guzzetta, LLC, to bring
back terms and conditions and pricing for both Hennepin County and NRG to process
Shakopee's refuse at the Council at its May 3 City Council meeting. The contract would
run concurrently with the refuse service agreement.
Recommendation
It is recommended that the City Council direct staff and the consultant, Bradley &
Guzzetta, LLC to a) negotiate a new five-year refuse agreement with Dick's Sanitation,
b) request $25,000 for recycling bins and $5,000 for environmental awareness from Scott
County's SCORE CARD fund and c) negotiate the terms and conditions and pricing with
both Hennepin County and NRG for a processing agreement before the May 3rd City
Council meeting.
Action Requested
Direct the City's staff and consultant, Bradley and Guzzetta, LLC to
a) negotiate a new five-year refuse agreement with Dick's Sanitation;
b) request $25,000 for recycling bins and $5,000 for environmental awareness from Scott
County's SCORE CARD fund; and
c) negotiate the terms and conditions and pricing with both Hennepin County and NRG
for a processing agreement before the May 3rd City Council meeting.
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Attachment A
1. The City negotiates the terms and conditions, including price and any new terms
with Dick's Sanitation.
2. The City's consultant and staff would work with Dick's to negotiate lower refuse
rates than the current 2005 rates. When current 2005 rates are compared in the
Metro Area, Shakopee's rates are lower than the Twin Cities average (see
attached Residential Refuse & Recycling Rate Comparison Study),
3. Dick's would continue the 30, 60 and 90-gallon refuse containers. This gives
residents pricing options, promotes recycling and gives seniors and residents on
fixed incomes a lower cost option,
4. Dick's would continue the specified day for bulk pick for a fee for electronics,
computers and other bulk items (see attached 2005 Bulk Rate Pricing Guide),
5. Dick's would continue the yard waste program where residents can use
bags/containers or the seasonal Dick's container and be billed quarterly,
6. Dick's would continue the valet service for a small fee. Dick's currently provides
this service to handicap residents and some seniors, free-of-charge,
7. Dick's would continue the snow bird policy for residents who head South in the
winter,
8. Dick's would continue the free automatic deposit/payment plan,
9. City Council should continue the fine structure for poor customer service to give
City leverage, incase any service problems arose. Due to superior customer
service, city staff has received virtually no customer complaints and has never had
to draw on the fine escrow money,
10. Shakopee would continue to receive an alley credit of$I,860/year to apply
towards Clean Up Day,
11. Dick's would continue to provide free all refuse services to all City buildings,
12. Dick's would continue to provide the free residential cardboard dumpster drop off
program located at the Public Works building, which was added, at no additional
charge, after the 2000 contract was signed,
13. There would be no additional cost or staffing impacts to the City to renew the
contract,
14. Dick's would continue the recycling rebate program. In 2005, Shakopee has
already received over $2,000 to apply towards Clean Up Day,
15. Shakopee would continue to receive processing rebate funds from the State's
SCORE CARD grants fund, contingent upon Sate funding. In 2004, each resident
received a $2.51 recycling rebate,
16. B&G would recommend that the City request that an on-line bill payment
program be implemented free of charge for Shakopee residents,
17. B&G would recommend that the City request a $25,000 grant from Scott
County's SCORE CARD funds to purchase additional recycling containers to
continue to promote increased recycling and keep monthly rates low. Currently,
the City provides free additional recycling containers,
18. B&G would recommend that the City request a $5,000 grant from Scott County's
SCORE CARD funds to continue environmental awareness through the City's
newsletter,website and video production.
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Extras/bulk items charges for the City of Shakopee
Description of item ( s) Rate/unit
Extra bag or can oftrash (30 gal. equivalent).......... $ 2.50 per bag or can
Loose misc. trash (per yard unit $)........................... $ 15.00 per cubic yard
Extra bag or can of yard waste (30 gal. equivalent).. $ 1.50 per bag or can
Seasonal yardwaste program.................................... $ 54.50 per year
Valet or doors ide service........................................... $ 17.50 per month extra
Additional 60 gallon cart............................................ $ 10.50 per month extra
Christmas tree.. ....... .................................................. $ 4.50 per tree
Appliances (all large).........,.........,........................,.... $ 45.00 per item
Basketball hoop and backboard....................,........... $ 50.00 per item
Bathtub (cast iron).,...........,......................,............,... $ 100.00 per item
Bathtub (fiberglass/plastic ).................. ...... ................ $ 50.00 per item
Bed frame......................,.................................,.,....... $ 7.00 per item
Bike..... ... .... ........ ..... ................................ .,..........." ".. $ 6.00 per item
Box spring or mattress...................................,.........., $ 28.00 per item
Car seat....... ,. ,. ................... ,...........,.,.... ............... ...... $ 10.00 per item
Crib mattress.... ....... ............... ............. ....... ..... ........ ... $ 7.50 peritem
Christmas tree (no tinsel or tree bags please)........... $ 4.00 per tree
Desk (roll-top)..... ,. ,... ..... ,........... ,.........., ..... ................ $ 24.00 per item
Desk (steel or wood)................................,.........,....... $ 15.00 per item
Door & frame.....................,...,.......,........................,... $ 12.00 l(er item
Dresser.. ........................ ........ ,. ........ ,. ,. .,...... ,. ,.......... ,. $ 15.00 per item
Entertainment center (full wall unit).................,.......... $ 55.00 per item
Entertainment center (small unit)............................... $ 25.00 per item
Futon.. .... ......... ....... ............,.. ..... ............ ..... ......., '...... $ 22.00 per item
Garage door opener.....................,............................. $ 15,00 per item
Garage door (aluminum)............................................ $ 40.00 per item
Garage door (wood or steen........................,............. $ 75.00 per item
Grill without propane tame......................................,.. $ 20.00 per item
Headboard........... ......... ...... ........,.,..... .......... ............. $ 15,00 per item
Hide-a-bed.. ..... ,......... ,'. ..... ..,., ......., '" ..... ..." ..... ... ". ,.. $ 35.00 per item
King chair. ......... ..,....... ..." .......... ,....... .......... ..... '. ....... $ 6.50 per item
Laundry tub.. ................ ................. ,... ....... ............. ..... $ 10.00 peritem
Lawn mower (push) must be empty offuel!oil........... $ 16.00 per item
Lawn mower (rider) must be empty offuel!oil..........,. $ 65.00 per item
Loveseat... ......... ........ ............. .... ,........,.... ........... ....... $ 25.00 per item
Mattress........ ..............,.................................... ,.......... $ 28.00 per item
Ottoman........,.........,.......,.,........,.,.........,..................,. $ 10.00 per item
Pallet (wood),......... ,... ....................... ,...... .... ,........ ,..... $ 6.00 per item
Patio door (atrium or sliding glass door)..................... $ 65,00 per item
Picnic or patio table.........................,........................... $ 20.00 per item
Ping Pong table..................,......;."............................,. $ 22.00 per item
Recliner.., ............. ..... ....... ,......... ...... ..... ... ........... ........ $ 15.00 per item
Screen door ......................,............................,............ $ 5.00 per item
Sectional couch,....... ,.,..... ... ......., ........,... ............. ....... $ 40.00 per item
Shower door. ............ ,.. ....................... ,... ....., ,. ... .......... $ 25.00 per item
Sink,..................................................,.......................... $ 12.00 per item
Snow blower............................,.....,.........,................... $ 45.00 per item
Swing set (aluminum)..,..........................,.................... $ 15.00 per item
Swing set (treated wood).....................,......,............... $ 45.00 per item
Table (large) dinette.................................,.......,......... $ 10,00 peritem
Table (small) card type....................,................,......... $ .5.00 per item
Tire with rim..........,........,.......,.......,.........,.................. $ 15.00 per item
Tire without rim................,.......,................................., $ 8.00 per item
Toilet..................................,.......,.,..............,.........,.... . $ 12.00 per item
T.V. Stand.............,..............................,................,..... $ 4.00 per item
Vacuum Cleaner......................................................... $ 5.00 per item
Vanitv................. .............. ........... ....... ... ..............,...... $ 18.00 per item
Water softner................... .... ...... ,. ,. ,. ,....... ............... ,... $ 35.00 per item
Waterbed mattress ( emptv).........,.......................,...... $ 18.00 per item
Rates do not includes MN sales tax.
Televisions (depending on the size). . .. ... . .. . .. . .. , . , . ,.. . . . . $ 25.00/$150.00.45 per pound
Electronics (per piece)................... ....... ......... ......... ... $ .45 per pound -.
City of Shakopee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyc1ables and Yard Waste
REFUSE AND RECYCLING CONTRACT
by and between
THE CITY OF SHAKOPEE
and
DICK'S SANITATION SERVICES, INC., A MINNESOTA CORPORATION,
DOING BUSINESS AS LAKEVILLE SANITARY SERVICES, INC.
May 17,2005
1
City of Shako pee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
This contract is entered into as of May 17, 2005 by and between the City of Shakopee
("City") and Dick's Sanitation Services, Inc., a Minnesota Corporation, doing business as
Lakeville Sanitary Services, Inc., a Minnesota corporation ("Contractor").
Now, therefore, in consideration of the promises and mutual obligation contained in this
agreement, the parties covenant and agree as follows:
CONTRACT
TABLE OF CONTENTS
I. DEFINITIONS ............................................................................................. 5
II. GENERAL CONDITIONS
2.1 CONTRACTOR'S OBLI GA TI ON ........ ................ ........ ................... 8
2.2 TERM OF CONTRACT.................... .................. ......... ............ ......... 8
2.3 PAYMENT.... .................................................................................. 9
2.4 CONTRACTOR'S ACCIDENT PREVENTION.............................. 9
2.5 DAMAGE TO PROPERTY .............................................................. 9
2.6 INSPECTION .................................................................................... 10
2.7 COMPLIANCE WITH LAWS, ORDINANCES AND
REGULA TIONS................................................................................ 10
2.8 TAXES, LICENSES AND PERMITS .............................................. 11
2.9 INDEPENDENT CONTRACTOR........... ........................... .............. 11
2.10 TITLE TO REFUSE, RECYCLABLES, AND YARD WASTE ...... 11
2.11 ASSIGNMENT AND SUBCONTRACTING................................... 12
2.12 PERFORMANCE BOND.................. .................... .............. ...... ........ 12
2.13 GENERAL INDEMNIFICATION.................. ......... ......................... 13
2.14 CERCLA INDEMNIFI CATION ........ ....................... ............. ....... .... 14
2
City of Shakopee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
2.15 INSURANCE..................................................................................... 14
2.16 DEF AUL T AND TERMINATION ................................................... 15
2.17 FORCE MAJEURE .. .......... ............... .................. .......... .................... 16
2.18 PENALITIES ..................................................................................... 16
2.19 NOTICES ........................................................................................... 18
2.20 SEVERABILITY ............................................................................... 18
2.21 GOVERNING LAW AND VENUE ................................................. 18
2.22 RIGHT TO REQUIRE PERFORMANCE ........................................ 18
2.23 OPTION TO CHANGE SERVICE; AMENDMENTS ..................... 19
III. SPECIAL CONDITIONS
3.1 CUSTOMER SER VI CE ....... ............................... ......... ..................... 19
3.2 EMPLOYEES AND CONDUCT ...................................................... 20
3.3 VEHICLES ........................................................................................ 21
3.4 ROUTING AND COLLECTION SCHEDULE................................ 22
3.5 HOLIDAY COLLECTION SCHEDULE ......................................... 23
3.6 HOURS AND STANDARDS OF COLLECTION ........................... 24
3.7 CONTRACTOR RECORDS....... ................. ............. .................... .... 25
3.8 PUBLIC EDUCA TI ON............... ................ .............. ............... ......... 25
IV. REFUSE COLLECTION AND DISPOSAL - SPECIFICATIONS
4.1 COLLECTION .................................................................................. 25
4.2 REFUSE TO BE PROCESSED ........................................................ 26
4.3 PRICE AND PAYMENT .................................................................. 26
3
City of Shakopee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
V. RECYCLABLE COLLECTION AND PROCESSING - SPECIFICATIONS
5.1 COLLECTION .................................................................................. 26
5.2 CONTAINERS AND RECYCLABLES ........................................... 27
5.3 RECYCLABLE PROCESSING............................ ............. ............... 27
5.4 COMPENSATION FOR SERVICES ............................................... 28
VI. YARD WASTE COLLECTION AND PROCESSING
6.1 COLLECTION .................................................................................. 29
6.2 PROCESSING OF YARD WASTE .................................................. 29
6.3 PRICE AND PAYMENT ............ ...................................................... 30
VII. MISCELLANEOUS SERVICES
7.1 CLEANUP EVENTS ........................................................................ 30
4
City of Shakopee --Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
I. DEFINITIONS
Words, phrases, or other expressions used in these contract documents shall have
meanings as follows:
1.1 "Administrator" shall mean the City Administrator of the City of Shakopee,
Minnesota or his/her duly authorized representative.
1.2 "Biodegradable Bags" shall mean bags used for yard waste, which are biodegradable
and utilized during the collection process.
1.3 "Bulk Waste" items or bulky items or similar items shall include all items of Refuse
that are too large to be normally containerized into a Container for Refuse such as
mattress, bedspring, sofa or couch. Bulk waste shall not include any item containing
Freon 12, Freon 22, or any chlorofluorocarbons, such as a refrigerator, freezer,
dehumidifier or air conditioner, excepting if such an appliance has affixed a Freon
free certification from a licensed refrigeration specialist. Bulk waste shall not
include, non-containerized garbage, loose and scattered trash. Other materials as
mutually agreed upon between the City and Contractor.
1.4 "City" shall mean the City of Shakopee, Minnesota a municipal corporation, acting
through its duly appointed officers, employees, agents and representatives.
1.5 "City Council" shall mean the City Council of the city of Shakopee, Minnesota.
1.6 "Code of Ordinances" shall mean the City of Shakopee Code of Ordinances; inclusive
of Section 3.15 of Shako pee City Code.
1.7 "Containers for Recyclables" shall mean a uniform container furnished by the
Contractor, in which recyclable materials can be stored and later placed curbside for
collection as specified by the City and delivered by the Contractor.
1.8 "Containers for Refuse" shall mean containers of heavy duty plastic cans which have
a thirty (30) to ninety (90) gallon capacity and are equipped with a tight fitting lid,
with a minimum strength of fifty (50) pounds.
1.9 "Contractor" means Dick's Sanitation Services, Inc., a Minnesota Corporation, doing
business as Lakeville Sanitary Services, Inc. and its duly authorized representatives.
1.10 "Date of Contract," or equivalent words, shall mean the date written in the first
paragraph of the Contract Agreement.
1.11 "Day" or "days," unless herein otherwise expressly defined, shall mean a calendar
day or days of twenty-four hours each.
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City of Shako pee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
1.12 "Family Unit" shall mean any number of individuals living and cooking food
together on the premises as a single housekeeping unit.
1.13 "Finance Director" shall mean the Director of Finance of the City of Shakopee,
Minnesota.
1.14 "MMSW Processing facility" shall mean the structures and equipment, singly or
in combination, that are designed, constructed, and used to separate, modify, convert,
heat, prepare, or otherwise process solid waste so that materials, substances, or energy
contained within the waste may be recovered for subsequent use and which are in fact
being used to recover materials, substances, or energy contained within the waste. A
facility that is permitted as a transfer station and which is not. primarily designed for
recovery materials, substances or energy from waste is not a "MMSW processing
facility" even if some materials, substances or energy are recovered during waste
consolidation and transfer operations.
1.15 "Obstructions" shall mean any item in the presence of the collection process,
which may hinder, delay or cause risk to the customer or the Contractor shall be
submitted to the City for resolution in writing. Contractor may request the City to
assist in the developing a reasonable resolution to an obstruction request.
1.16 "Prohibited Waste" shall include any hazardous substance, hazardous waste,
industrial process waste, commercial waste, building or demolition waste, hazardous
hospital waste, yard waste, rocks, sod, bricks, treated lumber, pollution control waste,
potentially infectious medical waste, Special Wastes, and used oil, all as defined by
Minnesota law from time to time. Prohibited waste shall also include Recyclables,
which are properly prepared and placed for collection as Recyclables. Other
materials as mutually agreed upon between the City and Contractor.
1.17 "Recyclables" shall include but not be limited to, newspaper, mixed mail,
magazines, home office paper, corrugated cardboard, catalogs, aluminum cans, steel
and BI-metal cans, all #1 PET and #2 HDPE containers with a neck (all colors), and
green, brown and clear glass bottles, brown paper bags. Other materials as mutually
agreed upon between the City and Contractor.
1.18 (a) "Refuse" means all discarded and unwanted putrescible and
nonputrescible household and kitchen wastes, including, but not limited to, food, food
residues, and materials necessarily used for packaging, storing, preparing, and
consuming same, usually called "garbage;" and all combustible and non-combustible
waste materials resulting from the routine of domestic housekeeping, including, but
not limited to, aluminum and steel cans; glass containers; plastic containers; crockery
and other containers; medical waste generated as general household waste, metal;
paper of all types, including newspapers, books, magazines, and catalogs; boxes and
cartons; cold ashes; furniture, furnishings, and fixtures; small household appliances of
all kinds; textiles and leather; and animal waste; toys and recreational equipment; and
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City of Shako pee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
similar items. Other materials as mutually agreed upon between the City and
Contractor.
(b) Refuse shall specifically exclude Prohibited Waste.
(c) The terms "garbage," "rubbish," "solid waste," "trash," and "waste" are
synonymous with Refuse unless otherwise more specifically defined (for
example, ''yard waste").
1.19 "Residential Unit" shall mean buildings, include house trailers or mobile homes,
used as living quarters for attached and detached Family Units which receive
individual curbside refuse, recycling and yard waste collection within the designated
City service area. A Residential Unit shall not include hotels, motels, boarding or
lodging houses, or apartment buildings.
The Administrator shall have the authority to determine the status of a building as
a "Residential Unit."
1.20 "Reusable Containers" shall mean a 30-gallon durable container owned by the
resident for trash and/or yard waste services.
1.21 "Seasonal Yard Waste" shall mean a one time annual fee billed in the spring of
each year, for which a resident receives weekly yard waste collection. Such
collection shall include the usage of a 6O-gallon container and up to eight (8)
biodegradable bags or reusable cans and/or bundles of brush per week.
1.23 "Special Wastes" shall mean all wastes, which are not defined as "domestic
waste." "Special Wastes" shall include but not be limited to liquid wastes, hot
ashes, construction and demolition wastes, industrial wastes, any items or
containers which weigh over fifty (50) pounds, and wastes from business or
commercial enterprises. Other materials as mutually agreed upon between the
City and Contractor.
1.24 "Subcontractor" shall mean and refer only to a corporation, partnership, firm or
individual having a direct contract with the Contractor for performing work in
connection with this contract.
1.25 "Ton" shall mean a short ton of 2,000 pounds.
1.26 "Yard Waste" shall include all items that must be diverted from the landfill in
order to comply with the requirements of Public Act and House Senate Bills P A-
1430 (SB-1599), and PA-85-1429 (HB-3800). Those items include grass, leaves,
pruning, twigs and branches. Yard Waste shall not include, table scraps,
putrescible waste or garbage, or tree limbs and stumps exceeding four (4) inches
in diameter. Other materials as mutually agreed upon between the City and
Contractor.
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City of Shako pee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
II. GENERAL CONDITIONS
2.1 CONTRACTOR'S OBLIGATIONS:
A. In strict accordance with the terms of this Contract (including the General and
Special Conditions and Specifications below) and at its sole cost and expense, the
Contractor shall provide all of the labor, materials, necessary tools, expendable
equipment, supplies, vehicles, transportation services, and recyclable processing
and yard waste disposal arrangements required to perform and complete the
collection and disposal of Refuse and Yard Waste and the collection and
processing of Recyclables from Residential Units within the limits of the City and
any territory hereinafter annexed. Contractor must provide for adequate disposal
facilities or methods for refuse, recycling and yard waste as part of the contract
proposal.
B. Any contracts between the Contractor and businesses, commercial operations,
multi-family rental buildings in excess of four (4) units, institutions, schools, or
industries and units of government or agencies thereof, shall include a provision
that such contract shall not interfere with the terms and conditions set forth under
this Contract.
C. The Contractor is strictly prohibited from mixing any waste from any other City
residential route or with any commercially generated waste other than City
Facilities as specified in this agreement.
D. For informational purposes the City shall provide the Contractor the initial
computerized listing of all those Residential Units within the City of Shakopee,
which are eligible for City, contracted services. Those structures, which are not
eligible for City services, shall not be collected.
Said computerized list shall be maintained and updated by the City and the
Contractor in electronic format. The computerized listing shall be updated each
calendar quarter shall be made available at no cost to the City.
2.2 TERM OF CONTRACT:
A. This contract shall become effective on the 18th day of March 2006, and shall
remain in full force and effect through the 19th day of March 2011.
B. At the expiration of the initial contract term, the City, at its sole discretion, may
extend the contract for up to three (3) years at the proposal price for the option
years by delivering written notice of its intent to extend delivery to Contractor at
least six (6) months prior to the expiration date of this contract. The proposal
price for the option years shall be the proposal price for 2011 adjusted by the
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City of Shakopee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
percentage increase in the consumer price index for all urban areas (CPI-U) from
December 2011 to December 2014 and shall be in effect for those three (3) years.
C. Contractor shall have the opportunity to request an additional extension with
terms and conditions to be determined and agreed upon by both parties up to
twelve (12) prior to the last full year term of the agreement or any extension
thereof.
2.3 PAYMENT:
A. The Contractor will bill the single family dwellings or town home association,
which receive individual curbside pickup within the designated City service area
for the services included in this contract in accordance with the charges set forth
on Attachment 1 to this agreement.
B. The Contractor will bill each unit quarterly-at least every three months and no
frequently than every month. The Contractor will be responsible for collecting all
charges from each unit and may not hold the City responsible for any
uncollectible charges. The City will assist the hauler through legal methods in the
collection of unpaid accounts.
C. The Contractor may not stop providing refuse, yard waste and recycling services
to any unit that has past-due charges. Collection of such charges will be done
pursuant to the City Code.
2.4 CONTRACTOR'S ACCIDENT PREVENTION:
A. The Contractor shall comply with the safety provisions of all applicable laws,
regulations and building codes, including, without limitation, the installation and
maintenance of safeguards on machinery and equipment, the elimination of
hazards, and worker safety training.
B. The Contractor shall exercise precaution at all times to protect the safety of
persons and property.
C. The Contractor shall immediately notify the City of any accident of any kind,
which involves the general public or private or public property which occurs
during the performance of this Agreement.
D. Upon City's request, the Contractor shall provide the City with a written report
within forty-eight (48) hours including the details of any such accident.
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City of Shako pee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyc1ables and Yard Waste
2.5 DAMAGE TO PROPERTY:
A. The Contractor shall take all necessary precautions to protect public and private
property during the performance of this Agreement.
B. Except for reasonable wear and tear and obstructions, the Contractor shall repair
or replace any private or public property, including, but not limited to waste
receptacles, sod, driveways, mailboxes, or recycling bins, which are damaged by
the Contractor.
C. Such property damage shall be addressed for repair or replacement, at no charge
to the property owner, within forty-eight (48) hours with property of the same or
equivalent value at the time of the damage.
D. If the Contractor fails to address the repair or replacement damaged property in
within forty-eight (48), the City may, but shall not be obligated to, repair or
replace such damaged property, and the Contractor shall fully reimburse the
City's for any of its reasonably incurred expenses.
E. The Contractor shall reimburse and/or provide evidence of an insurance claim, the
City for any such expenses within ten (10) days of receipt of the City's invoice.
F. Contractor may request the City to remove such obstructions such as trees, rocks,
and the like upon written agreement by both parties.
2.6 INSPECTION:
A. The City may appoint such Inspectors as it deems proper to inspect the work
performed and Contractor's facilities for compliance with the contract documents.
The Contractor shall furnish all reasonable assistance required by the Inspectors
for the proper inspection of the work.
B. Inspectors and other authorized representatives of the City shall be free at all
times to perform their duties. Any attempted intimidation of one of them by the
Contractor or his/her employees shall be sufficient reason, if the City so decides,
to terminate the contract.
C. Such inspection shall not relieve the Contractor from any obligation to perform
the work strictly in accordance with the contract.
2.7 COMPLIANCE WITH LAWS, ORDINANCES AND REGULATIONS:
A. The Contractor shall be familiar with, observe and comply with all ordinances,
laws, and regulations which in any manner affect those engaged or employed in
the work, or the materials, facilities or equipment used in the proposed work, or
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City of Shakopee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
which in any way affect the conduct of the work, and shall protect and indemnify
the City and its officers and agents against any claim or liability arising from or
based on any violation of same.
B. If the Contractor shall discover any provision in the specifications or the contract
which is contrary to or inconsistent with any law, ordinance or regulation, he/she
shall forthwith report it to the Administrator in writing.
C. Amendments to existing regulatory laws and ordinances and enactment of new
laws and ordinances shall not serve as justification for the Contractor to terminate
his/her obligations hereunder, unless said amendments make the completion of
this contract impossible.
2.8 TAXES, LICENSES AND PERMITS:
The Contractor shall pay all sales, use, property, income, and other taxes that are
lawfully assessed against the City or Contractor in connection with the
Contractor's facilities and the work included in this contract and shall obtain,
maintain and pay for all licenses, permits, certificates of authority, and inspections
required for the work during the term of the Contract.
2.9 INDEPENDENT CONTRACTOR:
A. The Contractor shall be responsible for the complete supervision and control of
his/her Subcontractors. Notice to the Contractor shall be considered notice to the
Subcontractors.
B. The Contractor is, and shall remain for all purposes, an independent contractor,
and its officers, employees, agents, or consultants shall not be deemed employees
of the City, nor shall they be entitled to any separate payment of salary, wages, or
any employee benefits available to employees of the City.
C. The Contractor shall be solely responsible for any salaries, wages, benefits, fees
or other compensation, which it may obligate itself to pay to any of its employees
or consultants.
D. Contractor agrees that during the term of this contract, or any extension of it,
Contractor shallnot assign, sell, or otherwise transfer more than 10% of: (a) its
stock or other beneficial ownership interest; (b) voting rights; or (c) assets, to any
person or party other than a member of the immediate family of an existing
shareholder. A breach of this contract and the City may immediately terminate
the contract.
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City of Shakopee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
2.10 TITLE TO REFUSE, RECYCLABLES AND YARD WASTE:
Title to all refuse and landscape waste and all other incidents of ownership of the
waste materials shall pass to the Contractor when such materials are placed into
the collection vehicle.
2.11 ASSIGNMENT AND SUBCONTRACTING:
A. The Contractor shall not assign or subcontract the work, or any part thereof,
without the previous ~onsent of the City Council, nor shall he/she assign, by
power of attorney or otherwise, any of the money payable under this contract
unless written consent of the City has been obtained. No right under this contract,
nor claim for any money due or to become due hereunder shall be asserted against
the City, or persons acting for the City, by reason of any so-called assignment of
this contract or any part thereof, unless such assignment has been authorized by
the consent of the City Council.
B. In case the Contractor is permitted to assign moneys due or to become due under
this contract, the instrument of assignment shall contain a clause subordinating the
claim of the assignee to all prior liens for services rendered and materials supplied
for the performance of the work and to any claims of the City arising out of or
under this contract.
C. Should any subcontractor fail to perform in a satisfactory manner the work
undertaken by him/her, his/her subcontract should be immediately terminated by
the Contractor upon written notice from the City. The Contractor shall be as fully
responsible and accountable to the City for the acts and omissions of his/her
subcontractors, and of persons either directly or indirectly employed by him/her,
as he/she is for the acts and omissions of persons directly employed by him.
Nothing contained in this contract shall create any contractual relation between
any subcontractor and the City. The Contractor and his/her Surety alone shall be
held responsible for the full and faithful performance of this contract.
2.12 PERFORMANCE BOND:
A. The Contractor shall provide a joint and several performance bond to the City of
Shakopee to protect said City, and also to protect anyone who may perform or
cause to be performed any work or labor, or furnish or cause to be furnished any
skill, labor, equipment, or material in the execution of such contract, which bond
shall be signed by the Contractor and a surety company as surety, and shall be in
an amount equal to three hundred thousand dollars ($300,000.00) by March 10,
2006. The bond shall at all times be kept in full force and effect; said surety
company shall have a Best Insurance Rating of .:\. or better and a letter so stating
shall accompany any proposal forms. The performance bond can be reduced to
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City of Shakopee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
$200,000 after successful performance for year (1) one, $150,000 after year (2)
tVlO, $125,000 aft-er year (3) three, $100,000 after year (1) folli', and $50,000 for
year (5) fiye fifty thousand dollars ($50,000) per year as agreed upon by both
parties.
B. The condition of which bond shall be that the. Contractor shall fully and faithfully
perform all provisions of the contract and the specifications and shall pay all
laborers, mechanics and subcontractors and material men, and all persons who
shall supply such person or persons, or subcontractors with provisions and
supplies for the performance of the contract; provided that the bond shall not be
security for money loaned or advanced to the Contractor, subcontractor or other
person in the performance of the contract.
C. A performance bond continuation certificate shall be delivered to the City at least
thirty (30) days before the expiration of the bond. Failure to provide a
continuation certificate thirty (30) days before expiration of the bond shall
constitute default on the part of the Contractor and shall be sufficient grounds for
immediate termination of the contract by the City.
2.13 GENERAL INDEMNIFICATION:
A. The Contractor shall indemnify, keep and save harmless the City and its
respective officers, agents and employees against all suits or claims that may be
based upon any injury or damage to persons or property that may occur, or that
may be alleged to have occurred, in the course of the performance of this contract
by the Contractor, or as a result of the performance of this contract by the
Contractor, whether or not it shall be claimed that the injury was caused through a
negligent act or omission of the Contractor or hislher employees, or his/her
subcontractors or his/her or their agents or in connection with any claim based on
lawful demands of subcontractor, work person, suppliers; and whether or not the
persons injured or whose property was damaged were third parties, employees or
the Contractor or employees of an authorized subcontractor; and the Contractor
shall at hislher own expense defend the City in all litigation, pay all attorneys'
fees and all costs and other expenses arising out of the litigation or claim or
incurred in connection therewith; and shall, at his/her own expense, satisfy and
cause to be discharged such judgments as may be obtained against the City, or
any of its officers, agents or employees.
B. When requested by the City, the Contractor shall submit satisfactory evidence that
all persons, firms or corporations who have done work or furnished supplies
under this contract, for which the City may become liable under the laws of the
State of Minnesota, have been fully paid or satisfactorily secured. In case such
evidence is not furnished or is not satisfactory, an amount may be retained from
money due the Contractor which will be sufficient, in the opinion of the City, to
meet all claims of the persons, firms, and corporations as aforesaid. Such sum
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City of Shako pee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
shall be retained until the liabilities as aforesaid are fully discharged ,or
satisfactorily secured.
2.14 CERCLA INDEMNIFICATION:
The Contractor shall, to the maximum extent permitted by law, indemnify,
defined, and hold harmless the City, its officers, employees, agents, and attorneys
from and against any and all liability, including, without limitation, costs of
response, removal, remediation, investigation, property damage, person injury,
damage to natural resources, health assessments, health settlements, attorneys'
fees, and other related transaction costs arising under the Comprehensive
Environmental Response, Compensation, and Liability Act (CERCLA) of 1980,
42 U.S.C.A. Sec. 9601, et seq., as amended from time to time, and all other
applicable statutes, regulations, ordinances, and under common law, for any
release or threatened release of hazardous waste or hazardous substances within
any waste material which is:
(1) improperly collected by the Contractor, or
(2) not delivered to the Landfill or,
(3) in the case of Recyclables or Yard Waste, not properly handled or
processed by the Contractor in violation of this Contract.
2.15 INSURANCE:
A. The Contractor shall furnish prior to commencement of any work under this
Contract certificate(s) of insurance providing insurance coverage as follows:
(1) Workers' Compensation Insurance - Covering all persons engaged in work
under this Contract to the full statutory limits stipulated in the Minnesota
Workmen's Compensation Law.
(2) Commercial Liability Insurance - Including premises and operations with
the following minimum limits:
Bodily Injury $1,OOO,OOO/each occurrence
Property Damage $1,OOO,OOO/each occurrence
(3) Commercial Vehicle Liability Insurance - Including owned, non-owned
and hired motor vehicles.
Bodily Injury $1,OOO,OOO/each occurrence
Property Damage $1,OOO,OOO/each occurrence
(4) Release, Discharge or Threaten Release or Discharge of Hazardous
Substances or pollutants one (1,000,000) million/occurrence.
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City of Shakopee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyc1ables and Yard Waste
The above requirements should not be interpreted to limit the liability of the
Contractor under this Contract.
B. All insurers shall be either licensed or authorized to do business in the State of
Minnesota and carry a Best rating ofB+ or greater.
C. This coverage shall protect the Contractor, its employees, agents, representatives
and subcontractors against claims arising out of the work performed. The City of
Shakopee, its agents and employees shall be included as additionally insured with
respect to all liability policies herein.
D. A thirty (30) day cancellation clause with notice to the City of Shakopee shall be
included; words modifying the cancellation clause such as "endeavor to" provide
notice will be unacceptable and must be stricken.
E. It shall be the Contractor's responsibility to provide similar insurance for each
subcontractor or to provide evidence that each subcontractor carries such
insurance in like amount prior to the time such subcontractor proceeds to perform
under the Contract.
2.16 DEFAULT AND TERMINATION:
A. If the work to be done under this contract is abandoned by the Contractor; or if
this contract is assigned by him/her without the written consent of the City
Council; or if the Contractor voluntarily files for bankruptcy or is adjudged
bankrupt; or if a general assignment of his assets is made for the benefit of his
creditors; or if a receiver is appointed for the Contractor or any of his/her
property; or if at any time the City determines that the performance of the work
under this contract is being unnecessarily delayed or that the Contractor is
violating any of the conditions of this contract, or that he/she is executing the
same in bad faith or otherwise not in accordance with the terms of said contract,
then the City may serve written notice upon the Contractor and his/her Surety of
the City's intention to terminate this contract.
B. Unless within ten (10) days after the serving of such notice by certified mail, a
satisfactory arrangement is made for continuance, this contract shall terminate and
the City may take over and prosecute the work to completion, by contract or
otherwise.
C. In the event of default or nonperformance on the part of the Contractor, the
Contractor and its Surety shall be liable to the City for all excess cost sustained by
the City by reason of the City. In the event the City complete the contract as a
lesser cost than would have been payable to the Contractor under the contract, if
the same had been fulfilled by said Contractor, then the City shall retain such
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City of Shakopee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
difference. Should such costs to the City be greater, the Contractor and its Surety
shall be liable for any pay the amount of such excess to the City.
D. In the event of Contractor's default under the terms of this contract, all payments
due the Contractor shall be retained by the City and applied to the completion of
the contract and to damages suffered and expense incurred by the City by reason
of such default, unless the Surety on the performance bond shall assume the
contract, in which event all payments remaining due the Contractor at the time of
default, less amounts due the City from the Contractor and less all sums due the
City for damages suffered and expense incurred by reason of such default shall be
due and payable to such Surety. Thereafter, such Surety shall receive monthly
payments equal to those that would have been paid the Contractor had such
Contractor continued to perform the contract.
2.17 FORCE MAJEURE:
A. Whenever a period of time is provided for in this.Agreement for either the City or
the Contractor are to do or perform any act or obligation, neither party shall be
liable for any delays or inability to perform due to causes beyond the control of
said party such as war, riot, unavoidable casualty or damage to personnel,
materials or equipment, fire, flood, storm, earthquake, tornado or any act of God,
but not strike or lockout.
B. The time period for the performance in question shall be extended for only the
actual amount of time said party is so delayed.
2.18 PENALTIES:
A. The Administrator and his/her designee shall notify the Contractor for each
violation of the Contract, reported to or discovered by hirnlher or the City. It shall
be the duty of the Contractor to take whatever steps may be necessary to remedy
the cause of the complaint and notify in writing the City of its disposition within
twenty-four (24) hours after receipt of complaint.
B. The following acts or omissions shall be considered a breach of the Contract and
for the purpose of computing damages under these provisions and due process.
1) Failure to clean up solid waste spilled by Contractor within six (6) hours
of oral or written notification-----------------------------$50.00 each instance.
2) Failure to clean vehicle, conveyance, containers, docks, shops, yards, and
other equipment as provided for in the specifications---------------$100.00
each instance.
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City of Shako pee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
3) Failure to maintain vehicle in manner which prevents nuisances such as
leaky seals or hydraulics---------------------------------$l 00.00 each instance.
4) Failure or neglect to collect solid waste, yard waste and recycling at those
times as provided by this Contract within twenty-four (24) hours from
notice by the City, either oral or written----------------$50.00 each instance.
5) Failure or neglect to provide notice to resident upon solid waste refused
for collection for cause------------------------------------$25.00 each instance.
6) Failure to return containers to original location and/or replace lids per
specifications at the time the container is emptied----$50.00 each instance.
7) In addition to above, failure or neglect to correct chronic problems will be
considered a breach of Contract-------------------------$50.00 each instance.
Chronic problems shall be construed to be three or more occurrences of
the items (1), (3) or (4) immediately above) at the same address within any
period of 6 consecutive months whether or not remedied within twenty-
four (24) hours, or four (4) hours in the case of spilled solid waste.
8) Use of equipment specially identified for work under the contract,
(paint/decal), for collection or transportation of materials generated from
locations or customers not specified for service under this contract. Each
day for which a violation continues shall be deemed to be a separate
instance of the violation -------------------------------$1000.00 each instance.
9) Collection of Recyc1ables, which are properly prepared and placed for
collection as Recyc1ables, as part of Refuse collection--$25.00 each
instance.
10) Missing entire blocks/neighborhood. A missed block is defined as a
block where residents from at least three (3) households within two
intersections of that block or cul-de-sac report that their material was out
before 7:00 am, the material was not picked up and the addresses did not
appear on the records as unacceptable setouts.-----------$250 each instance.
11) District-wide collection not completed. The failure to complete a
majority (50% or more) of pickups within the City or collection district on
the scheduled collection day without following proper notification
procedure. -----------------------------------------------------$2,500 per instance.
D. Hauler must maintain a minimum cash balance deposit of $4,000 $2,00 with the
City to be used for payment of any penalty. Any unused portion of the deposit
shall accrue interest at 5% simple annual interest and will be returned to the
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City of Shako pee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
hauler at the end of the contract period. After a one year of successful
performance, the City may reduce the $1,000 $2.000 cash balance deposit to a
lesser amount, ifmutually agreed upon by the Hauler and the City.
2.19 NOTICES:
A. Any notice or demand required or permitted to be given or made there under
shall be sufficiently given or made by facsimile, e-mail, messenger delivery,
overnight delivery, or certified mail in a sealed envelope, postage prepaid,
addressed as follows:
City of Shakopee Dick's Sanitation Services, Inc., a,
City Administrator Minnesota Corporation, doing
129 South Holmes Street business as Lakeville Sanitary
Shakopee, MN 55379 Services
P.O. Box 769
Lakeville, MN 55044
B. Either party may change the address to which notices may be sent by furnishing
written notice of such change to the other party.
C. Notice delivered by messenger, overnight delivery, facsimile, or e-mail shall be
deemed received upon delivery. Notice delivered by mail shall be deemed to
have been given as of the date of the U.S.P.S. postmark.
2.20 SEVERABILITY:
If any of the provisions of this Contract are determined by a court of competent
jurisdiction to be invalid, such provisions shall be deemed to be stricken, and such
adjudication shall not affect the validity of the remainder of the terms of this
Contract as a whole or of any section, subsection, sentence or clause not adjudged
to be invalid so long as the material purposes of this Contract can be determined
and effectuated.
2.21 GOVERNING LAW AND VENUE:
A. This Contract shall be governed by the laws of the State of Minnesota.
B. Venue for any action taken by either the City or the Contractor, whether in
law or in equity, to enforce the terms of this Contract shall be in the Circuit
Court of the Judicial Circuit, Scott County, Minnesota, and the Contractor
hereby waives whatever rights it may have in the selection of venue.
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City of Shako pee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyc1ables and Yard Waste
2.22 RIGHT TO REQUIRE PERFORMANCE:
A. The City's failure at any time to require performance by the Contractor of any of
the specifications in this Contract shall in no way affect the right of the City
thereafter to enforce it.
B. No waiver by the City of any breach of specifications in this Contract shall be
taken or held to be a waiver of any succeeding breach of such specifications in
this Contract, nor shall such a waiver of a single breach be taken or held to be a
waiver of any specification itself.
2.23 OPTION TO CHANGE SERVICE; AMENDMENTS:
A. The City shall have the option to change the service provided during the term of
this Contract, including, without limitation, changing the types of material
collected, the method of handling, collecting, or disposing of the collected waste.
B. The City shall exercise such option by serving written notice to the Contractor at
its. designated place of business at least ninety (90) days before the date such
service change is contemplated to begin.
C. Immediately after written notice is served, the parties shall enter into good faith
negotiations concerning the terms, frequency, and the details of pricing the
services that are provided.
D. Any modification or amendments to this Agreement shall be in writing and shall
be signed by the parties.
III. SPECIAL CONDITIONS
,
3.1 CUSTOMER SERVICE
A. The Contractor shall establish and maintain a Shakopee phone number to which
the public and City personnel may call or send inquiries and complaints, and from
which the public and City personnel may receive information and instructions.
B. The Contractor shall provide the Administrator with information concerning the
location, telephone number(s) and mailing addresses of the customer service
office established above, the garage and maintenance facilities, the recycling
processing facilities, and any other facility that will be used in the provision of
services under this Contract.
C. The Contractor shall provide the Administrator. with information concerning the
Contractor's designated person(s) for the purposes of obtaining instructions,
19
City of Shakopee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
answering inquiries, and resolving complaints. Such persons shall be available to
discuss, and if necessary meet with City personnel to resolve problems
D. The Contractor shall provide the City with at least one telephone number, which
may be used by City personnel to communicate with the Contractor after regular
. business hours or during an emergency.
E. The Contractor shall equip such office with a sufficient number of telephones and
personnel to accommodate the residents' inquiries, and shall provide management
personnel to supervise such office during collection hours.
F. Except as otherwise directed by the City, customer service shall be available at
least between the hours of 7:30 a.m. and 5:00 p.m., Monday through Friday,
except during holidays.
G. The Contractor shall provide a single local or toll-free telephone number and a
facsimile number for customer use. The City may publicize the Contractor's
customer service telephone number(s).
H. The Contractor shall take out an advertisement in the next telephone book
published, City-wide telephone book, which advertisement shall list the
Contractor's name, office address, and telephone number.
I. The Contractor shall provide for a quarterly informational brochure/newsletter,
agreed upon by the City, to all Shakopee customers with information on contact
numbers, recycling and refuse updates, informational tips and any changes in the
law and the like.
J. Upon reasonable notice, and during regular business hours, the City shall have the
right to visit and inspect any of the Contractor's facilities used to provide services
pursuant to this Agreement.
3.2 EMPLOYEES AND CONDUCT:
A. The Contractor shall use care and diligence in the performance of this Agreement
shall perform all collection and disposal services required by this Agreement in a
neat, orderly, and efficient manner.
B. The Contractor shall provide neat, orderly, and courteous personnel for its
collection crews and shall provide courteous and knowledgeable personnel for its
customer service office.
C. The Contractor shall prohibit its drivers and crew members from drinking
alcoholic beverages or using any controlled substance, except pursuant to a
20
City of Shakopee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
doctor's prescription, while on duty, or in the course of performing their duties
under this Agreement.
D. If the City determines that any of the Contractor's employees is unfit or
unsuitable to perform the services under this Agreement as a result of
intoxication, drug use, or by virtue of abusive or obnoxious behavior, then, upon
the City's written request, the Contractor shall remove such employee from work
within the City and furnish a suitable and competent replacement employee.
E. All of the Contractor's permanent collection employees working within the City
shall be required to wear a work uniform including a shirt or jacket clearly
indicating that the employee is employed by the Contractor.
F. All of the Contractor's vehicle operators working within the City shall carry valid
Minnesota state driver's licenses for the class of vehicle operated. Such vehicle
operators shall obey all traffic regulations, including weight and speed limits.
3.3 VEHICLES
A. All vehicles and equipment used in the performance of this Contract, shall be
wholly owned by the Contractor; provided, leasing or rental agreements or
conditional sales contracts may be allowed where approved by the City, in
writing, prior to execution of this Contract. The vehicles and equipment to be
used in performance of this Contract shall be submitted with the proposal and are
made part of this Contract by reference.
B. No further encumbrance shall be placed upon any of such equipment without the
approval of the City, save that the Contractor may, without consent, mortgage or
otherwise encumber said vehicles, equipment and facilities for the purpose of
enabling the Contractor to replace the same or add thereof.
C. All vehicles used within the City of Shakopee for collection and transportation
equipment shall be numbered consecutively and shall have the Contractor's name
and telephone number painted in letters of contrasting color, at least four inches
high, on each side of each vehicle, and the number painted on the rear. No
advertising on collection and transportation equipment shall be permitted other
than the name of the Contractor. Paint colors, numbering and any markings of the
equipment shall have the approval of the City.
D. All collection and transportation equipment used by the Contractor shall be kept
in a clean and sanitary condition and shall be flushed or swept out. Such flushing
or sweeping shall be conducted so that none of the material from the equipment is
deposited in other than a sump or pit on the landfill or other place approved by the
Administrator. All collection and transportation equipment shall be steam
21
City of Shakopee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
cleaned (weather permitting), inside and out, at least once each week, and shall be
repainted at least every two and one-half (2 1/2) years.
E. All of the Contractor's vehicles operated within the City shall be fully enclosed,
leak-proof vehicles, operated so that no refuse or landscape waste leaks, spills, or
blows off the vehicles. Drain plugs, if available, shall be kept sealed, except
during collections in rainy weather.
G. Contractor must use either rear or side (not top loading) loading trucks in the
collection of City Refuse, Yard Waste and Recycling.
3.4 ROUTING AND COLLECTION SCHEDULE:
A. The City shall be divided into routes for the purpose of collecting Refuse,
Recyclables, and Yard Waste. Each route shall be scheduled to receive all
collection services on the same day. All collection services shall be provided
once per week, Monday through Friday, year round to all designated Residential
Units within the City's corporate limits. Yard Waste collection shall be provided
at least once per week, Monday through Friday, from approximately April 15
until November 1 with a timeframe allotted for holiday tree and wreath pickup in
the month of January.
B. Prior to January 15,2006 the Contractor shall submit a proposed collection route
map indicating the areas in the City that will be collected for each day of the week
for approval by the City. The. proposed routes shall be designed to minimize the
changes to the existing route system and assure geographic continuity. The City
shall approve the map, or reject the map with reasons for rejection as soon as
practicable after it has received the map. If rejected the Contractor shall then
submit a new map for acceptance or comment as soon as practicable. This
process shall continue until an acceptable map is submitted, but no later than
March 1,2006.
C. The Contractor may propose an. independent route schedule for areas of the
City with frequent alley collection. The proposed routes should minimize as
much as practical disruption to the existing route system and optimize
geographic continuity throughout the City. The intent of second tier of
collection zones is to allow the Contractor to provide collection in the alleys
in the most cost effective manner. The City shall approve the routes
submitted, or may suggest amendments thereto prior to approval under the
process set forth in (B) above.
D. Upon approval of the routes, the Contractor shall at a minimum, chose a full-
page map to be published in the Shakopee Valley News two times during the
month of March, 2006. The map shall delineate the collection routes. General
information about the service shall accompany the map.
22
City of Shako pee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
In addition the Contractor shall provide the City with color map(s) delineating
the collection routes that can be copied and distributed to the public on an 8
1/2 x 11 inch format.
E. The Contractor may, from time to time, submit its written request to amend the
approved schedule.
1) Such a request shall include a proposal for specific changes, together with
a detailed explanation concerning the reasons for changing the sector
boundaries or collection schedule.
2) In its sole discretion, the City may grant or deny the Contractor's request
to change the sector boundaries or collection schedule for any or all areas
served by the Contractor under this Agreement.
3) Any change of the sector boundaries or the collection schedule shall be
approved by the City at least sixty (60) days before such changes may
become effective.
4) If the City approves any change of the sector boundaries or the collection
schedule, the Contractor shall design, print and distribute a written letter to
each household effected by the changes to explain the reasons for the
changes and the date on which the change will be come effective. The
content and distribution of any such letter shall be subj~ct to the City's
prior written approval.
5) Such letter of explanation shall be distributed by the Contractor to arrive at
each resident's house at least two (2) weeks prior to the effective date of
any service changes.
6) During the first week following any City-approved change in the
collection schedule, the Contractor shall operate its collection vehicles on
the previous collection schedule in addition to the new schedule.
7) During the second and third week following any City-approved change in
the collection schedule, the Contractor shall immediately respond to
complaints concerning missed collections from residents who are confused
by the new schedule if such residents will have to wait longer than two
days for collection.
3.5 HOLIDAY COLLECTION SCHEDULE:
When a holiday falls on a collection day for any given route, the refuse will be
collected on the following day. Each subsequent collection day will be delayed
23
City of Shakopee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
one (1) day until the end of the week in which the holiday fell. If the observed
holiday falls on a Saturday or Sunday, there will not be an interruption in service.
For the purpose of the contract the following are recognized holidays:
New Year's Day
Christmas Day
Memorial Day
Independence Day
Labor Day
Thanksgiving Day
3.6 HOURS AND STANDARDS OF COLLECTION:
A. The Contractor shall not begin its collection operations within the City before
7:00 a.m.
B. The Contractor shall furnish sufficient numbers of vehicles and personnel to
perform the services required by this Agreement without respect to adverse
conditions, breakdowns, strikes, or similar hindrances.
C. The Contractor's crew shall perform collection services with as little noise,
disturbance, and disruption to the City's residents as possible.
D. The Contractor shall collect all properly prepared Refuse, Recyclables, Yard
Waste from the designated collection point. The Contractor is not required to
collect any items that are not properly prepared. Proper preparation is specified
for each collection service below.
E. Residents shall place disposal units within five (5) feet to the curb (or in those
areas on alley routes or without curbs, close to the edge of the pavement), to
facilitate collection by the Contractor. The Contractor shall not be required to
collect any material not properly placed.
F. The Contractor shall replace lids, return all empty containers at each stop to the
general location at which they were found. Empty containers shall not be placed
in the middle of driveways, in driveway aprons, or near the curb in a manner that
will increase the likelihood that an empty container will block a driveway or
sidewalk or fall or roll into the street.
G. The Contractor shall handle all containers with reasonable care to avoid damage
and spills. Where collection crews break or spill any item of waste onto
parkways, premises, curb-and-gutter, or streets, the crews shall immediately clean
up the debris in a workmanlike manner. A broom and shovel shall be required as
standard equipment on each vehicle.
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City of Shako pee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyc1ables and Yard Waste
H. The City shall enact and reasonably enforce all ordinances, which may be
necessary to achieve compliance with the requirements of this Section by anyone
within the City, including residents.
3.7 CONTRACTOR RECORDS:
The Contractor shall maintain, separate from all other records and accounts,
complete records and an accurate ledger of accounts of all revenues and expenses
relating to the Refuse, Recyclable and Yard Waste disposal system and any
associated waste reclamation operations. Contractor shall also report monthly in
to the City the actual tonnage ofRecyclables and the estimated tonnage of Refuse,
Yard Waste, collected by category as required by the City. Said records and
accounts shall at all reasonable times be open to inspection by the City and its
agents.
3.8 PUBLIC EDUCATION:
A. During the term of this Contract, the Contractor shall use a City approved notice
to inform residents of any and all reasons why the Contractor may not have
collected all waste material placed the curb.
B. The notice shall be designed and printed by the Contractor and shall indicate the
reason waste material was not collected. The notice shall include the name and
telephone number of the Contractor. The notice may have a check-off format
listing the most common mistakes in preparing waste material for collection. The
notice shall be designed to attach to the uncollected waste material in a visible
manner (adhesive back, tie-on tag, etc.).
C. The Contractor shall cooperate in educational activities to promote citizen
awareness of the residential solid waste and recycling, composting program(s),
including, but not limited to facility tours, quarterly newsletters and participation
in special events.
IV. REFUSE COLLECTION AND DISPOSAL - SPECIFICATIONS
4.1 COLLECTION:
A. The Contractor shall collect all Refuse, which is properly placed in Containers for
Refuse from all Residential Collection Units. The quantity of Refuse or number
of Containers for Refuse are not to be limited.
B. Contractor shall not collect those items or materials specifically excluded from
collection under the Code of Ordinances as Prohibited Wastes.
25
City of Shakopee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
C. Contactor shall provide all single-family units with individual curbside pickup
within the designated City service area with a new refuse container on or before
March 18, 2006.
D. The Hauler shall provide weekly service as necessary for the collection and
disposal of refuse, recycling and yard waste from all City owned or leased
facilities and parks at no cost to the City of Shakopee.
Current City Facilities to Receive Collection:
1) City Hall- 129 South Holmes Street.
2) Public Works - 476 Gorman Street (will be expanding into old SPUC
building as well)
3) Police Station - 475 Gorman Street.
4) Community Center - 1255 Fuller Street.
5) Library - 235 East Lewis Street.
6) City Pool- 1101 Adams Street
7) Shakopee Senior Center - 200 Levy Drive
8) Any other similar future facilities as designated by City Administrator.
4.2 REFUSE TO BE PROCESSED:
A. The Contractor shall transport the collected Refuse to a Minnesota processing
facility ("MMSW"). The Contractor shall be responsible for all costs associated
with transporting and processing the Refuse at the processing facility.
B. The trucks shall be weighed, including the truck operator, when each load is
delivered to the sanitary landfill (the gross weight) upon State certified scales
furnished by the Landfill operator. Each truck, including the truck operator, will
be weighed after the load has been dumped (the tare weight) in order to determine
the net weight of the dumped load. No average empty weight shall be utilized in
calculating the net weight.
C. The City's contract for Refuse disposal at a Minnesota processing facility is
effective for the entire initial term of this Contract. If for any reason the
processing facility cannot or will not accept the Refuse of the city or the City
chooses to switch processing facilities, the City may direct the Contractor to
dispose of Refuse at another site. In that event, the price of the Contractor's
services for Refuse collection and disposal shall be renegotiated to reflect any
increase or decrease in costs related to the difference in distance between the
processing facility and any other site designated by the City.
D. The Contractor shall not dispose of Refuse in any other landfill or waste disposal
facility or operate any transfer station without the consent of the City.
26
City of Shako pee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
4.3 PRICE AND PAYMENT:
The Contractor shall submit monthly invoices for the material handled in the
preceding month, and will be paid the accepted proposal price per ton.
V. RECYCLABLE COLLECTION AND PROCESSING - SPECIFICATIONS
5.1 COLLECTION:
The Contractor will collect all properly prepared and placed Recyclables from
Residential Units on the same day as regular Refuse Collection. The Contractor
shall collect all Recyclables, regardless of whether they are placed in a Container
for Recyclables.
5.2 CONTAINERS FOR RECYCLABLES:
A. The City shall provide each Family Unit with the initial Container for Recyclables
for which the Contractor will deliver. After the initial City purchased Containers
issued, the Contractor will be responsible for purchasing and delivering the
residential Containers.
B. The bins shall have the words "City of Shakopee" on printer on at least one side
of each container. Each recycling bin shall be delivered complete with a package
of recycling information provided by the Contractor explaining what and how to
recycle in order to assist the Contractor in the performance of their work and to
inform and educate the public.
C. Bins shall be delivered through out the term of the Contract to any newly
constructed homes and to any newly annexed properties/sub-divisions. Lost and
stolen bins shall be replaced by the Contractor, misuse, abuse and fraud excepted.
5.3 RECYCLABLE PROCESSING:
A. Contractor shall not dispose of Recyclables in any landfill or incineration facility
nor knowingly convey Recyclables to any other person that disposes Recyclables
in a landfill or incinerating facility without the express written consent of the City.
B. Contractor shall provide a facility to process and prepare for the market or
transfer for processing elsewhere the materials listed above. Facility shall comply
with all local, state, federal environmental and land use regulations.
C. The recycling site shall be properly zoned for all proposed recycling activities.
All recyclable material shall be promptly processed into a marketable product.
The processed product may be stored at a covered location until market prices for
the product are favorable but not in excess of Scott County Department of
27
City of Shakopee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyc1ables and Yard Waste
Environmental Health guidelines or Minnesota Environmental Protection Agency
regulations.
D. If Contractor cannot have a facility operational by March 1, 2006, he/she must
show ability to take the materials and process them (through transfer, etc.) until
such time as the facility is operational; in no case, however, shall the facility open
later than June 1, 2006 .
E. Proposer may accept Recyclables at its facility from other customers; however,
contractor shall give priority, unless unreasonable, to deliveries made through the
City's program as opposed to deliveries made by other customers.
F. Successful Contractor shall keep records to determine the quantity of individual
items recycled, and shall issue a monthly report to the City as to the quantity of
each material processed during that month.
G. The City shall have the right, during the term of the Contract, to have a
representative on Contractor's premises to monitor the operation of the Contract.
Such representative shall only be allowed on Contractor's premises during normal
business hours.
5.4 COMPENSATION FOR SERVICES:
A. Price of this service shall be a fixed price per ton of Recyclables collected as
established in the initial proposal. A separate per ton price shall be bid for fiber
Recyclables and for all other Recyclables combined. The price shall cover all
equipment, material, labor and services to be performed under the proposed
contract.
B. In order to receive payment, the Contractor will be required to weigh each
category ofRecyclables collected on State of Minnesota Certified Scales provided
by the Contractor and subject to inspection or verification by the City. The
weight shall net of any containers holding the Recyclables.
C. The Contractor shall submit itemized bills for services provided to the City on a
monthly basis. Invoices must include a copy of the Recycling Materials Credit
Report. Bills submitted shall be paid in the same manner as other claims made to
the City. The Contractor shall provide documentation and reports as required by
the City.
D. Proceeds from the sale of recyclable materials. The City shall receive a monthly
quarterly credit statement based on the net proceeds of the sale of all recyclable
materials collected the previous month in the City, if there are positive net
proceeds from the sale. Net proceeds is defined as the total revenue received by
the Contractor from the sale of all recyclable material minus processing charges,
28
City of Shakopee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
which are labor and equipment charges made by the Contractor which handles the
processing for sale and sale of recyciables; The City and the Contractor will
divide the net proceeds by 50%. Payment by the Contractor to the City shall be
made no later than the fifteen (15) days after the end of each billing quarter. The
Contractor shall establish and report the per ton cost of processing said charges as
part of Contractor's proposal attached hereto, and propose a rate and formula for
providing credit to the City. Any increase in the charges made by the Contractor
which result in an increase in the processing charge, shall be documented to the
City.
E. The Contractor shall allow the City or its duly authorized agents reasonable
access to such of the Contractor's books and records as are pertinent to all
services provided under this Agreement. Any reports, information, data, etc.
given to or prepared or assembled by the Contractor under this agreement which
the City requests to be kept confidential shall not be made available to any
individual organization without the City's prior written approval. All finished or
unfinished documents, data, studies, surveys, drawings, maps, models,
photographs, and reports prepared by the Contractor shall become the property of
the City upon termination of this Agreement.
VI. YARD WASTE COLLECTION AND PROCESSING
6.1 COLLECTION:
A. The Contractor shall collect all properly prepared and placed Yard Waste in
Containers or Bags for Yard Waste from Residential Units on the same day as
regular Refuse Collection.
B. Yard Waste shall be collected each year between l..pril15 around mid-April, or as
soon as the Scott County Highway Department lifts the spring roadway weight
limits and November 1 the week prior to Thanksgiving, or such time as winter
weather curtails yard waste operations. Christmas trees and other holiday wreaths
shall be collected from beginning of January through mid-January. Starting and
ending collection dates shall be with the mutual concurrence of the City. The
Contractor shall not suspend operations during the operation periods of time
without the written authorization of the City.
6.2 PROCESSING OF YARD WASTE:
A. Yard Waste shall not be disposed of in any landfill in violation of Minnesota law.
B. The Contractor shall own, co-own, rent, lease, control, or otherwise have access
to a properly licensed and permitted compo sting facility, farm, or a landscape
29
City of Shakopee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
waste transfer station with sufficient capacity to dispose of collected Yard Waste
within the City under all circumstances.
C. The Contractor shall be solely responsible for compliance with all Federal, State,
County, and Local laws, ordinances, and regulations governing the disposal of
Yard Waste at such a facility.
D. Upon the City's request, Contractor shall provide to the City the name and
location of the Yard Waste disposal facility it intends to use during the term of
this Contract.
E. Upon the City's request, the Contractor shall provide the City with proof that such
facility complies with all laws and regulations governing such facilities.
F. Upon reasonable notice, the City shall have the right to visit and inspect such
facilities during regular business hours.
G. The Contractor shall notify the City of any changes in Yard Waste disposal
facilities.
H. Upon the City's written request, the Contractor shall furnish the City with
reasonable assurances concerning the availability of adequate facility capacity for
disposal of Yard Waste collected under this Contract.
6.3 PRICE AND PAYMENT:
A. Payment for service shall be in addition to the fixed unit price of refuse and/or
recycling as established in the Contractor's accepted proposal. Methods such as
individual customer billing, stickers or tags or the like can be used in the billing
process. The price shall cover all equipment, materiel, labor and services to be
performed under the proposed contract.
B. The trucks shall be weighed, including the truck operator when each load in
delivered to the composting site, (the gross weight). Each truck including the
truck operator will be weighed after the load has been dumped (the tare weight) in
order to determine the net weight of the dumped load. No average empty weight
shall be utilized in calculating the net weight.
VII. NUSCELLANEOUSSERVICES
7.1 CLEANUP EVENTS:
A. The City of Shakopee in conjunction with Scott County traditionally sponsors a
spring clean-up day. The programs result in a high level of Bulk Waste placed for
collection. The City will work with the association and Contractor to schedule
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City of Shako pee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyc1ables and Yard Waste
one spring program in order to assure that adequate manpower and equipment can
be made available.
B. Clean-up events shall be billed separately to the City of Shakopee.
C. "Bulk Items" will be picked up by the hauler and billed at an individual separate
rate from the monthly residential unit rate of normal refuse, recycling and yard
waste collection.
D. Contractor's will provide a free dumpster. at a secure location to be specified by
the City. during regular business hours. Monday - Friday. for residential disposal
of card board.
E. Contractor will make an annual payment amount of $1.860. no later than
November 1 st, to the City for alley pickup efficiencies. The payment will be
adiusted by the CPI on January 1 st of each calendar year.
F. Contractor will provide at least four (4) recycling awards. one month free refuse
service. to a resident who has proven to have recycled in the City.
31
City of Shakopee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
CITY OF SHAKOPEE CONTRACTOR
Dick's Sanitation Services, Inc., a
Minnesota Corporation, doing
business as Lakeville Sanitary
Services, Inc.
By By
Mayor Richard Clemmer, President
By
City Administrator
By
City Clerk
STATE OF MINESOTA
COUNTY OF SCOTT
The foregoing instrument was acknowledged before me this _ day of
, 20_ by John Schmitt, Mayor; Mark McNeill, City Administrator and
Judith S. Cox, City Clerk of the City of Shakopee, Minnesota, on behalf of said City.
This instrument was drafted by:
Bradley & Guzzetta, LLC
444 Cedar Street, Suite 950
St. Paul, MN 55101
651-379-0900
32
City of Shakopee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyc1ables and Yard Waste
ATTACHEMENT#l-PRICE
Dick's Sanitary Contract Prices 2006 - 20XX**
Hauler Bills, City Processing, No Containers - Year 1
Size Refuse** Recycling Total Yard Waste*
30 gallon $8,33 $3.57 $11.90 $1.00
60 Gallon $10.32 $4.43 $14.75 $1.00
90 Gallon $11.95 $5.00 $16.95 $1.00
Town Home - 30 G & 60 G $6.25 $3.00 $9.25 $1.00
Town Home - 90 Gallon $7.25 $3.11 $10.36 $1.00
Hauler Bills, City Processing, No Containers - Year 2
Size Refuse** Recycling Total Yard Waste*
30 gallon $8.33 $3.57 $11.90 $1,00
60 Gallon $10.32 $4.43 $14.75 $1.00
90 Gallon $11.95 $5,00 $16.95 $1.00
Town Home - 30 G & 60 G $6.25 $3.00 $9.25 $1.00
Town Home - 90 Gallon $7.25 $3.11 $10.36 $1.00
Hauler Bills, City Processing, No Containers - Year 3
Size Refuse** Recycling Total Yard Waste*
30 gallon $8.60 $3.68 $12.28 $1.15
60 Gallon $10.65 $4.57 $15.22 $1.15
90 Gallon $12.24 $5.25 $17.49 $1.15
Town Home - 30 G &60 G $6.69 $2.87 $9.56 $1.15
Town Home - 90 Gallon $7.50 $3.21 $10.71 $1.15
Hauler Bills, City Processing, No Containers - Year 4
Size Refuse** Recycling Total Yard Waste*
30 gallon $8.60 $3.68 $12.28 $1.15
60 Gallon $10.65 $4.57 $15.22 $1.15
90 Gallon $12.24 $5.25 $17.49 $1.15
Town Home - 30 G & 60 G $6.69 $2.87 $9.56 $1.15
Town Home - 90 Gallon $7.50 $3.21 $10.71 $1.15
Hauler Bills, City Processing, No Containers - Year 5
Size Refuse** Recycling Total Yard Waste*
30 gallon $8.87 $3.80 $12,67 $1.25
60 Gallon $10.98 $4.71 $15.69 $1.25
90 Gallon $12.62 $5.41 $18.03 $1.25
Town Home - 30 G & 60 G $7.53 $2.33 $9.86 $1.25
Town Home - 90 Gallon $7,73 $3.31 $11.04 $1.25
* Yard Waste prices are for one 30/40 gallon biodegradable bag or container of yard waste,
which will be billed to the resident directly by the Contractor.
** Prices do not include the 9.75% tax on refuse.
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City of Shakopee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
1) A resident can request an additional60-gallon container for $9.80
(XXXX)/month.
2) A one time fee of $25.00 will be charged to cleanup all moving boxes for
the first and second week after the new service (move in) date. This price
does not include bulk items or trash materials.
3) Residents have the option to utilize Dick's ACH auto bank program.
4) Valet service is a door side service for those residents that are 1)
handicapped 2) cannot bring their refuse and recycling for
$(XXX)17.50/month for the duration of the contract.
5) A resident would be charged $XXX/additional bag or 30/40 gallon
container for each item in addition to the normal 30,60,90 gallon refuse
container.
6) If a resident fails to set out hislher refuse, recycling and/or yard waste
containers/bags Dick's will provide the following service to the resident:
a) First (1 st) and Second (2nd) Occurrence - No Charge
b) Third (3rd) Occurrence - $10.00 Charge
c) Each Occurrence Thereafter: $20.00 Charge
7) Seasonal Yard Waste Program - $XXXX/year for the duration of the
contract.
8) Holiday Tree (Christmas Tree) - $XXXltree for the duration of the
contract.
Extras/bulk items listing of charges Review Prices
For the City of Shakopee Rates are per item + tax
DescriDtion of item(s) Rate/unit Unit rate
Extra bag or can of trash (30 gal. equivalent) $2.50 per bag or can
Loose misc trash (per yard unit $) $15.00 per cubic yard
Extra bag or can of yard waste (30 gals.) $1.00 per bag or can
DescriDtion of item(s) Rate/unit Unit rate
All large appliances $45.00 per item
Basketball hoop $50.00 per item
Bathtub (cast iron) $100.00 per item
Bathtub (fiberglass) $50.00 per item
Bed frame $7.00 per item
Bike $6.00 per item
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City of Shakopee -Contract
Collection, Processing and Disposal of Residentia) Refuse, Recyclables and Yard Waste
Box spring $28.00 per item
Car seat $10.00 per item
Extras/bulk items listing of charges
For the City of Shakopee Cont. Rates are per item + tax
Descriotion of item(s) Rate/unit Unit rate
Crib mattress $7.50 per item
Desk (roll-top) $24.00 per item
Desk (steel or wood) $15.00 per item
Door & frame $12.00 per item
Dresser $15.00 per item
Entertainment Center (full wall) $55.00 per item
Entertainment Center (small) $25.00 per item
Futon $22.00 per item
Garage door opener $15.00 per item
Garage door (aluminum) $40.00 per item
Garage door (wood or steel) $75.00 per item
Grill without propane tank $20.00 per item
Headboard $15.00 per item
Hide-a-bed $35.00 per item
King chair $6.50 per item
Laundry tub $10.00 per item
Lawn mower (push) must be empty $16.00 per item
Lawn mower (rider) must be empty $65.00 per item
Loveseat $25.00 per item
Mattress $28.00 per item
Ottoman $10.00 per item
Pallets $6.00 per item
Patio door (atrium or sliding glass style) $65.00 per item
Picnic or patio table $20.00 per item
Ping pong table $22.00 per item
Recliner $15.00 per item
Screen door $5.00 per item
Sectional $40.00 per item
Shower door $25.00 per item
Sink $12.00 per item
Snow blower $45.00 per item
Swing set (aluminum) $15.00 per item
Swing set (treated wood) $45.00 per item
Table (large) dinette $10.00 per item
Table (small) card type $5.00 per item
Tire with rim $15.00 per item
Tire without rim $8.00 per item
Toilet $12.00 per item
TV. Stand $4.00 per item
Vacuum Cleaner $5.00 per item
35
City of Shako pee -Contract
Collection, Processing and Disposal of Residential Refuse, Recyclables and Yard Waste
Vanity $18.00 per item
Water softener $35.00 per item
Waterbed mattress (empty) $18.00 per item
Dick's/Lakeville Sanitary cannot accept items such as;
Televisions, computers, monitors, electronics, paints sludges, pesticides,
yard waste, stumps and syringes in normal refuse collection.
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