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Res 2018-74 Contract for Recycling ServicesRESOLUTION NO. 2018 - 74 A RESOLUTION TO APPROVE CONTRACT FOR RECYCLING SERVICES: ALLIED WASTE SERVICES OF NORTH AMERICA LLC WHEREAS, Minn. Stat. §115A.551 sets the goal to recycle 75 percent by weight of total solid waste generated by December 31, 2030; and WHEREAS, Fridley City Code Chapter 113 specifies that the City of Fridley will provide for the collection of all recyclables form all residential properties, single unit through 12 -unit multiple dwellings; and WHEREAS, the City of Fridley issued a Request for Proposal for the provision of such services; and WHEREAS, Allied Waste Services of North America LLC operating in the State of Minnesota as Republic Services of Blaine, submitted the recommended proposal and is willing to perform the obligations set forth by this Contract; NOW, THEREFORE, BE IT RESOLVED, that the Mayor and City Manager are authorized to execute the Contract for Recycling Services included as Exhibit A. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 17TH DAY OF DECEMBER, 2018. SCOTT J. LUND - MAYOR ATTEST: DEBRA A. SKOGEN - CITY CLERK CONTRACT FOR RECYCLING SERVICES CITY OF FRIDLEY, MINNESOTA AND Allied Waste Services of North America, LLC (CONTRACTOR) IIP6966 CONTRACT FOR RECYCLING SERVICES This Agreement is made on , between the City of Fridley, a municipal corporation organized and existing under the laws of the State of Minnesota, hereinafter called the "City" and Allied Waste Services of North America, LLC, a Delaware Limited Liability Company, qualified to do and actually doing business in the State of Minnesota as Republic Services of the Twin Cities - Blaine, herein called the "Contractor". 1 Purpose of Agreement The purpose of this Agreement (also known as Contract) is to define the requirements of the Recycling Services program for dwellings of up to and including 12 dwelling units and designated municipal facilities. The goal of the City is to maximize the fullest recovery possible of recyclable materials in a convenient, cost-efficient manner. As of November 1, 2018 City utility billing records lists 9093 dwelling units that qualify to receive recycling service under this contract Agreement. This unit count does not include additional municipal facilities that need to be serviced under this Agreement, which are listed under Section 17. 2 Terms of Agreement The term of this seven (7) year Agreement shall be from May 1, 2019 through April 30, 2026, the date of signature by the parties notwithstanding. This Agreement is renewable, upon the written mutual consent of the parties. 3 Definitions Minnesota Statute definitions shall be the primary legal basis for all contract definitions. Other definitions included herein are for purposes of ease of communication. However, if a contract definition is in conflict with the Minnesota Statutes, the Minnesota Statutes shall take precedence. Aluminum: Disposable containers fabricated primarily of aluminum, commonly used for soda, beer, juice, or other beverages; clean aluminum foil and pie tins. Cardboard: Cereal, cracker, pasta, shoe, gift, electronic, tissue, beverage, and other similar containers. Does not include plastic, wax, or other coated cardboard. Cartons: Cartons include carton packaging such milk cartons, juice cartons, juice boxes, soup, broth and wine cartons, and other similar containers. City: City of Fridley, a Minnesota municipal corporation. Collection District: means a specific geographic area of the City established for the purpose of having Curbside Recycling collection for all dwelling units on the same day. 11P6966 Collection Route: means a contiguous geographic area within a Collection District determined by the Contractor that will be serviced by one collection vehicle and which may be used to measure collection progress. These routes and changes to the routes must be approved by the City. Contractor: The entity or team of entities which enters into a contract with the City for the collection of recyclable material. Dwelling Unit (DU): A single -unit providing complete independent living facilities for one (1) or more persons, including permanent provisions for living, sleeping, eating, cooking and sanitation. Education Tag: means an information tag notifying residents about unacceptable materials set out for collection. The tag will also contain information regarding preparation requirements. The tag must be left at the residence if any portion of the recycling set out is not taken. Extra Collection: The additional collection of recyclable material in excess of the provided recycling cart. Glass: Glass includes unbroken brown, clear, and green glass containers such as bottles and jars used for food and beverages. Glass does not include window glass, mirrors, or light bulbs. Markets: Any person or company that buys (or charges for) recycling of specified materials and may include, but is not limited to: end -markets, intermediate processors, brokers and other recycling material reclaimers. Material Recovery Facility (MRF): A specialized facility that receives, separates and prepares recyclable materials for marketing to end-user manufacturers. Multi -Unit Dwelling (MUD): Generally, buildings in larger multi -family buildings with five (5) dwelling units or more per structure. Non -Targeted Materials: Materials that are not included in the City's recycling program. Organics/Source-Separated Compostable Materials: Food wastes, plant materials, and paper that are not otherwise recyclable as defined in Minnesota Statutes Chapter 115A that are: A. Separated at the source by the waste generator for the purpose of transporting them to a commercial compost manufacturing facility; B. Collected separately from mixed municipal solid waste and are governed by the licensing provisions of Section 115.93; C. Delivered to a facility to undergo controlled microbial degradation to yield a humus -like product meeting the Pollution Control Agency's class I or class II, or equivalent, compost manufacturing standards and where process rejects do not exceed fifteen (15) percent by weight of the total material delivered to the facility; and 11P6966 D. May be transferred to a licensed compost manufacturing facility, unless the Commissioner of the Pollution Control Agency determines that no other person is willing to accept the materials. Paper: Mail, office and school paper; magazines and catalogs; newspaper and inserts; phonebooks; and other similar products. Plastic: Plastic bottles and jugs including those with attached caps; plastic cups and containers such as yogurt cups, pudding and fruit cups, clear disposable cups, margarine and whipped cream tubs, clear produce, deli, and take out containers, and other similarly containers . Does not include plastic bags, polystyrene foam, or wrapping film. Recyclable Materials: Materials that are separated from mixed municipal solid waste for the purpose of reprocessing, including, but not limited to aluminum, cardboard, cartons, glass, paper, plastic, and steel cans. This does not include material used to create refuse -derived fuel or material that is destroyed by incineration. Materials may be added to this list by mutual written agreement between the City and Contractor. Also referred to as "recycling". Residuals: Materials collected and delivered to the processing facility, and removed from the recyclable materials for composting, incineration or landfill disposal prior to or during processing. Single -Stream Recycling: Rigid containers and fibers collected and processed together. Steel Cans: Disposable containers fabricated primarily of steel or tin used for food and beverages. Walk-up Service: A service for door -side collection of recyclables at designated DU's upon request from the City or from the resident for anyone who is unable to convey recyclables to the curb. The Contractor "walks up" to collect their materials. 4 Compensation to Contractor 4.1 PER DU PRICE The City shall pay the Contractor the following rate over the term of the seven year contract: The rates shall be comprised of a combined Monthly Collection Charge and a Recycling Processing Charge. The Monthly Collection Charge shall be: $2.50 per DU per month, May 1, 2019- April 30, 2020 $2.58 per DU per month, May 1, 2020- April 30, 2021 $2.66 per DU per month, May 1, 2021- April 30, 2022 $2.75 per DU per month, May 1, 2022- April 30, 2023 $2.85 per DU per month, May 1, 2023- April 30, 2024 $2.95 per DU per month, May 1, 2024- April 30, 2025 $3.05 per DU per month, May 1, 2025- April 30, 2026 11P6966 Each year, the Monthly Collection Charge shall be adjusted set forth above (the "Annual Collection Rate Adjustment"). The Recycling Processing Charge shall be determined based on the formula in Attachment A. 4.2 METHOD OF PAYMENT The Contractor shall submit monthly itemized invoices to the City. Invoices so submitted shall be paid within thirty (30) days of receipt by City. 4.3 CERTIFIED DWELLING UNIT (DU) COUNT AND SET OUT RATE The Contractor may request that the City re -certify the number of DUs existing in the City at any time throughout the term of this Agreement. Likewise, the City may request that the number of DUs serviced be adjusted within 30 days of notification to the Contractor in the event that dwelling units are added or removed from the City. 5 Collection 5.1 COLLECTION DAYS AND HOURS FOR CURBSIDE RESIDENTIAL RECYCLING The Contractor must collect recyclables according to the existing collection districts on Monday, Tuesday, Wednesday, and Thursday per the Fridley Recycling Collection Districts Map contained in Attachment B. The parties of this Agreement may mutually agree to change the collection districts with the initiating party bearing the cost of direct mail notification to all property owners and residents of the changed district. Contractor must not begin recycling collection service prior to 7:00 a.m. Collection routes must be complete by 8:30 p.m. Exceptions to collection hours may be modified only upon the mutual agreement of the City and Contractor. 5.2 FREQUENCY The collection frequency will be every other week with the first week of collection beginning May 1, 2019. 5.3 SEVERE WEATHER Except as otherwise provided herein, recycling collection may be postponed due to severe weather at the sole discretion of the Contractor. The Contractor shall consult with the City before postponing collection. Collection will be postponed to a day mutually agreed upon. 5.4 HOLIDAY SCHEDULE During a week when the holidays listed fall on a collection day (Monday - Thursday), recycling collection will be one day late. The six holidays where this will occur are: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, and Christmas Day. 11P6966 5.5 POINT OF COLLECTION Single-family through three -unit dwelling units, including manufactured homes, will be serviced curbside unless noted in Attachment C (the map of DU's accessible by alley or alternative means, as qualifying for alleyside or alternative collection as mutually agreed upon by the City and Contractor.) The curbside point of collection is at the edge of the curb along the respective public or private street from which the DU gains its access. When construction work is being performed in the right-of-way, recycling carts shall be placed as close as feasible to an access point for the collection vehicle. Contractor may decline to collect any carts not so placed, but must provide photographic documentation of the reason for declining collection. Dwellings of between four and 12 DUs in size will not be required to place recycling containers curbside. Contractor will service carts or dumpsters at dwellings of between four and 12 dwelling units where they are stored, typically next to garbage enclosures. The Contractor and City may mutually agree upon alternate collection arrangements for these dwellings where space constrains or other limitations to normal servicing methods exist. 5.6 WALK-UP SERVICE At the start of the Contract, 34 DUs receive walk-up service in the curbside recycling collection program. If additional customers request walk-up service, the City and Contractor shall negotiate the terms of the financial compensation, if any, to be provided to Contractor for walk-up service accounts. 6 Recycling Cart Supply The Contractor shall purchase, own, provide, inventory and distribute sturdy curbside wheeled carts to all dwelling units, except for those multi -unit dwellings in which it is determined that a dumpster is more appropriate, during the entire term of the Agreement. The Contractor shall maintain carts as necessary. The carts shall be uniform and consistent in color and design. Each DU will be provided one 65 -gallon cart. Alternate sizes and additional carts shall be available upon at no additional cost. The Contractor shall maintain sufficient cart inventory of the proper size and color to meet supply and demand needs for the entire term of the Agreement. The Contractor shall be prepared to deliver all service containers to households upon request within two weeks of a request. 7 Contractor's Property All carts, trucks, and any other equipment that Contractor furnishes under this Contract shall remain Contractor's property. The City and its residents shall use the equipment only for its proper and intended purpose and shall not overload (by weight or volume), or alter the equipment. 8 Excess Collection The Contractor shall collect excess collection provided that it is stored in paper bags or, in the case of cardboard, is flattened and bundled neatly with twine, and placed adjacent to the recycling cart. 11P6966 9 Liquidated Damages The City shall send a formal written letter or electronic notice outlining the issue and notifying the Contractor of a violation. After such notice, the Contractor shall be liable, and the City shall charge the Contractor accordingly, for liquidated damages at the following rates, upon a determination by the City that performance has not occurred consistent with the provisions of the Agreement. 9.1 MISSED COLLECTIONS The Contractor shall have a duty to pick up missed collections in which a recycling cart was properly set out before 7:00 a.m. on the day of collection. The Contractor shall not have a duty to pick up improperly set out carts or carts set out after 7:00 a.m. Photographic documentation must demonstrate the reason the recycling was not collected. The Contractor agrees to pick up all missed collections on the same day the Contractor receives notice of a missed collection, provided notice is received by the Contractor before 11:00 a.m. on a business day. With respect to all notices of a missed Collection received after 11:00 a.m. on a business day, the Contractor agrees to pick up that missed collection before 6:00 p.m. on the following business day. The penalty for missed collections not picked up by 6 p.m. the next business day is: • Five hundred dollars ($500) per individual occurrence; • One thousand dollars ($1,000) per missed pick up of an entire block. A missed block is defined as a block where residents from at least three households within two intersections of that block or cul-de-sac report a missed collection; • Two thousand dollars ($2,000) per incident of failure to complete collection on the scheduled collection day when the City did not, or does not retroactively, approve extension of collection hours; and • Three thousand dollars ($3,000) per occurrence of failure to complete a majority (50% or more) of collections within the collection district on the scheduled collection day when the City did not, or does not retroactively, approve extension of collection hours. Exceptions If City staff is notified of a delay prior to 4 p.m. on the scheduled collection day, the Contractor shall be deemed not liable for liquidated damages when the Contractor's inability to perform recycling collection service is the result of conditions beyond its control such as acts of God or severe weather, civil disorder, significant road construction, changes in statues, regulations and ordinances and other acts beyond the control of the Contractor. When the City and the Contractor have mutually agreed that the Contractor may safely return to the City, the Contractor shall have five (5) days (excluding Saturdays, Sundays, and holidays) to provide such service. In the event of a continuing failure beyond said period, the Contractor shall not be entitled to payment for any dwelling unit not serviced. In the event that the City has approved a delay beyond the five (5) days, the Contractor will not be assessed penalties as specified above. 9.2 OTHER Penalties shall be assigned in the following additional scenarios: • One hundred dollars ($100) per incident for failure to provide adequate customer phone service as determined by spot checks and resident complaints (e.g., excessive hold times; questions not answered accurately to Fridley's program specifications, etc.). 11P6966 • Three hundred dollars ($300) per incident for failure to clean up spills during collection operations. 10 Customer Service The Contractor shall provide a Municipal Services Manager and an Operation Supervisor that are accessible and response to City staff needs seven days a week. The Contractor shall provide customer service via a Contractor Customer Resource Center ("CRC") to receive calls and emails from Fridley residents between the hours of Monday through Friday 8 AM to 5 PM and Saturdays, 8 AM to 12 PM. The Contractor shall make the telephone number and web site address readily available and known to City residents in education materials. The Company name and a truck number shall be printed in large print on the collection vehicles. The Contractor shall have a 24-hour answering service or voice mail system available to Fridley customers and City staff The Contractor shall keep a customer service log of all contacts, including type of contact, subject matter, date and the time received, the Contractor's response, and the date and time of response. 11 Publicity, Promotion and Education The Contractor shall provide the following publicity, promotion, and education services without additional compensation: • Printing or embossing of recycling content and preparation instructions on each recycling cart. • Replacement of printing or embossing of recycling content and preparation instructions on each recycling cart should the original become unreadable, on all cart replacements, and on all new service dwellings. • Printing and mailing of an informational postcard or brochure at least once per year, including recycling instructions and collection calendar, to all dwelling units including each dwelling unit in a multi -dwelling unit, with the City providing the mailing list. • Provision of 1000 copies of extra informational postcards or brochures for distribution by the City. • Provision of 1,000 new recycling cart stickers annually to be made available to residents. • Provision of one daytime, staffed tour of the Contractor's Material Recovery Facility per year on a weekday with date and time agreed upon by the City and Contractor with the City coordinating reservations and providing transportation for city residents. • Contractor will cooperate with City staff to create television interviews that promote recycling in the community upon request. 12 Ownership of Recyclable Materials Ownership of recyclable material set out for the purpose of participating in the curbside recycling program shall remain with the person or household from which the material originated until placed in Contractor's vehicle, upon which ownership shall pass to the Contractor. 11P6966 13 Procedure for Handling Non -Targeted Materials If the Contractor determines that a resident has set out Non -Targeted Materials, the driver shall use the following procedure: 1. Contractor shall leave the Non -Targeted Materials in the recycling cart or dumpster and leave an "education tag" indicating acceptable materials and the proper method of preparation. 2. The driver shall record the address and take photographic documentation of the non -targeted materials; the Contractor shall report the address and provide the photographic documentation to the City. 14 Cleanup of Spillage or Blowing Litter The Contractor shall make reasonable attempt to cleanup any material spilled or blown during the course of collection and or hauling operations and any material that is scattered around the recycling cart. Designated recyclable materials shall be transported in a covered, properly sealed vehicle so that the materials do not drop or blow during transport. 15 Processing of Recyclable Material Upon collection, the Contractor shall deliver the designated recyclable materials to a Material Recovery Facility, an end market for sale or reuse, or to an intermediate collection center for later delivery to a MRF or end market, according to Minnesota Statutes (M.S. 115A.95). It is unlawful for any person to transport for disposal or to dispose of recyclable materials to a mixed municipal solid waste disposal facility. The City expects the Contractor to market collected recyclables to the highest and best use of the recyclable materials (glass to glass bottles and jars, aluminum cans to aluminum cans). Adequate recyclable material processing capacity must be provided for material collected. The Contractor shall ensure that the percentage of collected residuals does not exceed the percentage permissible by State Statute of material (by weight) processed in the Contractor's MRF in a given month. Once the Contractor's recycling collection and processing methods have been accepted and approved by the City, the Contractor shall inform the City of any changes to the agreed upon collection and processing methods. The Contractor shall provide written notice to the City at least sixty (60) days in advance of any substantial change in these or subsequent plans for receiving and processing recyclable materials collected from the City. It will be the City's right to refuse changes to the agreed upon collection or processing methods, provided that such approval shall not be unreasonably withheld, delayed or modified by the City. A collection or processing method cannot be changed without the written approval of the City. 15.1 WEIGHING LOADS The Contractor shall weigh and report the City's collected residential recyclable material weights separately from other material. These weight slips must be made available to the City upon request. It IIP6966 is recognized that the Contractor may use some means of calculating estimated tonnage amounts based upon test weights conducted in similar situations. 15.2 ESTIMATING MATERIALS COMPOSTION The Contractor shall provide the City with documentation of a recent scientific commodity composition study of collected residential recyclables collected in a comparable community upon request. 15.3 END MARKET CERTIFICATION Upon request by the City, the Contractor shall provide written certification to the City that all recyclable commodities identified will continuously be recycled and not disposed. Upon request, the Contractor shall provide the City with adequate documentation of end markets for each recyclable commodity. 16 Third Party Processing The City of Fridley may, at any time during the contract, elect to contract with another MRF should it be deemed to be more cost effective. If the hauling distance is further than the Contractor's Minneapolis MRF, and a per -mile price adjustment for the Collection Rate would occur to cover that additional hauling cost. 17 Municipal Facilities Collection Requirements The Contractor will provide adequate cart or dumpster capacity and every other week recycling collection of recyclable materials at designated municipal facilities at no additional cost. The municipal facilities currently requiring every other week recycling service are: the Fridley Civic Campus, Springbrook Nature Center, the Fridley Public Works Garage, two municipal liquor stores, and two satellite fire stations. The Public Works Garage container will be used to store recyclable materials collected from City parks and must be adequately sized. Other facilities may be added upon mutual consent of both parties. During the term of the Contract, the City may consider providing recycling collection in additional facilities. If this additional service is considered, the City may request a proposal from the Contractor, or may amend the Contract to include the additional facilities. 18 Reporting 18.1 MONTHLY REPORTS The Contractor will provide the City with monthly reports in a mutually agreed upon format. Monthly reports shall be due to the City by the 15th of the following month. These reports are to include at a minimum: • Total weight of recyclables collected monthly for all customers serviced; • Total number of potential stops and participation rate; • Estimated weight breakdown per recycling commodity; • Quantities of process residuals disposed (in tons); 11P6966 • Log of all complaints, including the nature of the complaints; and the date and time of response; • Log of all resident addresses where education tags were left; • Log of all missed pick-ups; and • Any pending conditions that may affect the City's recycling programs • Any MRF Audits conducted throughout the year will be shared with the City on the monthly report following the audit. 18.2 ANNUAL REPORTS The Contractor will provide the City with annual reports, in a mutually agreed upon format. Annual reports shall be due by the 15th of February. These reports are to include at a minimum: • A list of households not participating in the curbside recycling program; • Cart inventory and replacement schedule; • Trends in recovery rates and participation; • Efforts the Contractor has made to expand recyclable markets; • Summary of market trends in prices, technology advancements, specifications, and implications for municipal curbside recycling programs; • Review of Contractor's recommendations for improvement in the City's recycling program, including enhanced public education and other opportunities for expansion; • Opportunities for improvement with the remaining years under the current Agreement; and • Number of carts at all multi -family unit dwellings including any increased or decreased levels of service based on route audits. 19 MEETINGS The City and the Contractor shall meet as needed, but at least once a year, to review educational and promotional materials, the recycling program, collection and customer service issues, the annual report and other items as necessary. 20 Collection Vehicle Equipment Requirements Vehicles shall be designed to accommodate the collection of commingled recyclable material. In addition, all Collection vehicles used in performance of the Contract shall: • Be compliant with City Code Chapter 113; • Be duly licensed and inspected by the State of Minnesota; • Operate within the weight allowed by Minnesota Statutes and local ordinances; • Be Minnesota Department of Transportation (DOT) -compliant at all times; • Be cleaned at least weekly and kept clean and as free from offensive odors as possible; • Be well painted, clean, and in good repair; • Equipped with a back-up warning device that complies with all applicable OSHA, Minnesota Statues, and/or Minnesota Department of Transportation regulations. 11P6966 Be leak -proof according to modern, industry design standards; Follows City noise ordinances; and Equipped with the following: o Two-way communications device o First aid kit o An approved fire extinguisher o Warning flashers o Sign on the rear of the vehicle which states "This Vehicle Makes Frequent Stops" o A broom and shovel for cleaning up spills All of the required equipment must be in proper working order. All vehicles must be clearly identified on both sides with the Contractor's name and telephone number prominently displayed. The lettering must be at least three inches in height. 21 Personnel Requirements Contractor shall retain sufficient personnel and equipment to fulfill the requirements and specifications of the services described in this Contract. The Contractor will provide a Route Supervisor to oversee the recycling route drivers servicing the City, and a Staff Representative to oversee administration of the Contract (may be the same person). The Route Supervisor will be available to address missed collections each day. 22 Employment and Non -Discrimination The Proposer must agree to comply with all of the provisions of Minnesota Statute Section 181.59, which relate to civil rights and discrimination and all State and Federal Statutes regarding employment and discrimination. Service shall be provided without regard to race, color, creed, religion, national origin, and without regard to sex, age, disability, public assistance status, or sexual orientation. The Proposer must agree to comply with employment practices whereby no applicant for employment or employee hired shall be discriminated against with respect to that person's hire, tenure, compensation, terms, upgrading, conditions, facilities, or privileges of employment by reason of race, color, creed, religion, national origin, age, sex, disability, public assistance status, or sexual orientation, except as may be based upon bona fide occupational qualifications. 23 Insurance Insurance secured by the Contractor shall be issued by insurance companies acceptable to the City and admitted in Minnesota. The insurance specified may be in a policy or policies of insurance, primary or excess. Such insurance shall be in force on the date of execution of the Contract and shall remain continuously in force for the duration of the Contract. All such insurance policies will be primary without the right of contribution from any other insurance coverage maintained by City. All policies required herein shall be written by insurance carriers with a rating of A.M. Bests of at least "A-" and a financial size category of at least VII. 11P6966 The Contractor and its sub -contractors shall secure and maintain the following insurance: 23.1 WORKERS' COMPENSATION Contractor must provide Workers' Compensation insurance for all its employees and, in case any work is sub -contracted, Contractor will require the sub -contractor to provide Workers' Compensation insurance in accordance with the statutory requirements of the State of Minnesota, including Coverage B, Employer's Liability. Insurance minimum limits are as follows: $1,000,000 — Bodily Injury by Disease per employee $1,000,000 — Bodily Injury by Disease aggregate $1,000,000 — Bodily Injury by Accident 23.2 COMMERCIAL GENERAL LIABILITY INSURANCE Contractor is required to maintain Commercial General Liability Insurance protecting it from claims for damages for bodily injury, including death, and from claims for property damage, which may arise from operations under the Contract whether the operations are by the Contractor or by a sub -contractor or by anyone directly or indirectly employed by the Contractor under the Contract. This policy shall have no coverages removed by endorsement. Insurance minimum limits are as follows: $2,000,000 — per occurrence $5,000,000 — annual aggregate $5,000,000 — annual aggregate — Products/Completed Operations The following coverages shall be included: Premises and Operations Bodily Injury and Property Damage Personal and Advertising Injury Blanket Contractual Liability Products and Completed Operations Liability 23.3 COMMERCIAL AUTOMOBILE LIABILITY INSURANCE Contractor is required to maintain Commercial Automobile Liability Insurance protecting it from claims for damages for bodily injury, including death, and from claims for property damage resulting from the ownership, operation, maintenance or use of all autos which may arise from operations under the Contract, and in case any work is sub -contracted Contractor will require the sub -contractor to maintain Commercial Automobile Liability Insurance. Insurance minimum limits are as follows: $2,000,000 — per occurrence, combined Single Limit for Bodily Injury and Property 23.4 ADDITIONAL INSURANCE CONDITIONS Any insurance limits in excess of the minimum limits shall be available to City. 11P6966 • All policies except professional liability shall be endorsed with a waiver of subrogation in favor of City, including its elected and appointed officials, employees, and agents for losses arising from activities under the Contract. • Contractor is responsible for payment of Contract -related insurance premiums and deductibles. • Contractor is responsible to review and ensure any and all sub -contractors comply with the insurance provisions contained herein and said insurance is maintained as specified. • Contractor's policies shall include legal defense fees within its liability policy limits. • An Umbrella or Excess Liability insurance policy may be used to supplement the Contractor's policy limits on a follow -form basis to satisfy the full policy limits required by the Contract. • The City reserves the right to immediately terminate the Contract if the Contractor is not in compliance with the insurance requirements and retains all rights to pursue any legal remedies against the Contractor. • Contractor is required to submit a Certificates of Insurance acceptable to City as evidence of the required insurance coverage requirements. • The Certificate of Insurance i) will also provide for 30 days prior written notice of cancellation to the City (except Workers' Compensation); (ii) shall name City as an additional insured under the Automobile, General Liability, and any umbrella or excess policies (if applicable); and, (iii) shall contain waivers of subrogation in favor of City (excluding Worker's Compensation policy) except with respect to the sole negligence or willful misconduct of City. • City's failure to approve or disapprove Contractor's policies or certificates shall not relieve Contractor of full responsibility to maintain the required insurance. • If the coverage period shown on Contractor's current Certificate(s) of Insurance ends during the duration of the project, Contractor must, prior to the end of the coverage period, obtain a new Certificate of Insurance showing that coverage has been extended. • No representation is made that the minimum insurance requirements are sufficient to cover the obligations of Contractor under the Contract. 24 ASSIGNMENT Neither party shall assign this Agreement, nor any interest arising herein, without the written consent of the other party. 24.1 SUB -CONTRACTOR The Contractor shall not enter into sub -contracts for any of the services provided for in this Agreement without the express written consent of the City. Failure to obtain such written approval by the City prior to any such assignment or sub -contract shall be grounds for immediate Contract termination. 24.2 TRANSFER OF INTEREST The Contractor shall not assign any interest in the Contract, and shall not transfer any interest in the Contract, either by assignment or novation, without the prior written approval of the City provided that such approval shall not be unreasonably withheld, delayed or modified by the City. 25 Independent Contractor Nothing contained in this agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The Contractor shall at all 11P6966 times remain an independent Contractor with respect to the services to be performed under this Contract. Any and all employees of the Contractor or other persons engaged in the performance of any work or services required by Contractor under this Contract shall be considered employees or sub- contractors of the Contractor only and not of the City; and any and all claims that might arise, including Worker's Compensation claims under the Worker's Compensation Act of the State of Minnesota or any other state, on behalf of said employees or other persons while so engaged in any of the work or services provided to be rendered herein, shall be the sole obligation and responsibility of Contractor. 26 Licensing The Contractor must have a Class III Collector's license issued by the City, per City Code Section 113. The Contractor is responsible for all necessary county, state, and other applicable licensing. 27 Governing Law This Contract shall be interpreted and governed by the internal laws of Minnesota. 28 Risk Allocation and Indemnification The Contractor shall be responsible for any and all claims for personal injuries or death, or the loss of or damage to property to the extent caused by Contractor's negligence or acts of willful misconduct or those of its sub -contractors or agents. The Contractor agrees to indemnify, defend and hold the City, its agents, contractors, sub -contractors, officials, employees, attorneys, boards, Council, agents, volunteers and representatives harmless against and in respect of any and all claims, demands, actions, suits, proceedings, losses, costs, expenses, obligations, liabilities, damages, recoveries, and deficiencies, including interest, penalties and reasonable attorneys' fees, that the party incurs or suffers, which arise out of, result from or relate to the Contractor's negligence in its performance of the services under this Agreement. Contractor's indemnification obligation to the City for any City liability to third parties shall be capped at the City's maximum liability limits set forth in Minnesota Statutes Chapter 466, exclusive of the City's reasonable attorneys' fees and related litigation expenses. Such reasonable attorneys' fees and related litigation expenses shall not be subject to said cap and Contractor shall indemnify the City for those fees and expenses in addition to its indemnification obligation for any City liability to third parties. In no event shall the Contractor be responsible to indemnify any party indemnified under this section for any claims, demands, actions, suits, proceedings, losses, costs, expenses, obligations, liabilities, damages, recoveries and deficiencies, including interest, penalties and reasonable attorneys' fees, that are incurred due to the negligence or intentional misconduct of any party indemnified under this section. The parties further agree that this indemnity obligation shall survive the completion or termination of this Agreement. 28.1 GOVERNMENTAL IMMUNITY Nothing contained herein shall be deemed a waiver by the City of any governmental immunity defenses, statutory or otherwise. Further, any and all claims brought against the City shall be subject to the 11P6966 maximum liability limits provided in Minnesota Statutes Section 466.04 subdivision 1 (to the extent applicable). 28.2 DISPOSAL FINES AND PENALTIES Contractor is solely responsible for all fines and penalties imposed by any governmental agency relating to Contractor's negligence or willful misconduct during its the hauling and processing of Recyclable Materials or disposal of Residuals and it shall indemnify, defend and hold the City harmless therefrom. 28.3 NO CLAIMS Contractor agrees to pay all persons doing work or furnishing skill, tools, machinery, or materials or insurance premiums or equipment or supplies for Contractor with respect to Contractor's performance of services under this Agreement, and all just claims for such work, material, equipment, insurance, and supplies provided to or for Contractor with respect to Contractor's performance of services under this Agreement. Contractor shall indemnify, defend and hold the City harmless from such claims. 29 Performance Bond The Contractor shall execute and deliver to the City a performance bond with a corporate surety in the sum of three hundred thousand dollars ($300,000). This Agreement shall not become effective until such a bond, in a form acceptable to the City, has been delivered to the City and approved by the City Attorney. This agreement shall be subject to termination by the City at any time if said bond shall be canceled or the surety thereon relieved from liability for any reason. Upon renewal or extension of this agreement, the Contractor will execute and deliver to the City a performance bond complying with the requirements above to cover the entire period of renewal or extension. 30 General Compliance The Contractor shall conduct operations under this Contract in compliance with all applicable laws, including local ordinances; provided, however, that this Contract shall govern the obligations of the Contractor where there exist conflicting ordinances of the City on the subject. 31 Employee Working Conditions and Contractor's Safety Procedures The Contractor will ensure adequate working conditions and safety procedures are in place to comply with all applicable federal, state and local laws and regulations. The City reserves the right to inspect on a random basis and upon reasonable advance written notice to Contractor all trucks, equipment, facilities, working conditions, training manuals, non -privileged records of claims for Worker's Compensation or safety violations and standard operating procedures documents. The City also reserves the right to inspect and approve the Contractor's safety plans for protection of public and employee safety during route collections and other operations. 11P6966 32 Accounting Standards The Contractor agrees to maintain the necessary source documentation and enforce sufficient internal controls as dictated by generally accepted accounting practices to properly account for expenses incurred under this Contract. 33 Confidentiality Contractor shall have no confidentiality obligation with respect to any Recyclable Material collected pursuant to this Contract. 34 Data Practices The Contractor agrees to comply with the Minnesota Government Data Practices Act and all other applicable state and federal laws relating to data privacy or confidentiality. The Contractor must promptly report to the City any requests from third parties for information relating to this Agreement. The City agrees to promptly respond to inquiries from the Contractor concerning data requests. The Contractor agrees to hold the City, its officers, and employees harmless from any claims resulting from the Contractor's unlawful disclosure or use of data protected under state and federal laws. 35 Opener Should the Tons Sold Rate (as defined in Attachment A) fall below $50 per ton after Year 3, the Contractor shall notify the City at the time of the next Annual Recycling Adjustment. The City of Fridley may decide to reopen this Contract or re -negotiate the Recycling Processing Charge within sixty (60) days of such notification. Within such sixty (60) days, both parties shall attempt good faith negotiations. If an agreement is reached, an amended contract shall be executed with an effective date of May 1st of the following year. If both parties cannot successfully come to an agreement, the City of Fridley shall notify the Contractor in writing within such sixty (60) day period of its intent to exit this Contract and put the service(s) out for Proposal. The Contractor shall continue to provide recycling services at the most recent Recycling Processing Charge for a period of nine (9) months following the City's notification to the Contractor of the City's intent to exit this Contract. This Contractor will automatically terminate, with no penalty to the City or the Contractor, nine (9) months following such notification, unless the parties otherwise mutually agree in writing to renew or extent this Contract. 36 Severability If any provision of this Contract shall be invalid, illegal or unenforceable, it shall be modified so as to be valid, legal and enforceable but so as most nearly to retain the intent of the parties. If such modification is not possible, such provision shall be severed from this Contract. In either case, the validity, legality and enforceability of the remaining provisions of this Contract shall not in any way be affected thereby. 11P6966 37 Contract Termination 37.1 TERMINATION BY CITY In the event of a failure by Contractor to perform any material provision of this Contract, the City shall give written notice of such breach to the Contractor along with at least thirty (30) days (the "cure period") to correct such breach. City may terminate this Contract after such cure period if Contractor has not adequately corrected such breach in accordance with this Contract and City so notifies Contractor in writing of such termination action. 37.2 TERMINATION BY CONTRACTOR In the event of a failure by City to perform any material provision of this Contract, the Contractor shall give written notice of such breach to the City along with at least thirty (30) days (the "cure period") to correct such breach. Contractor may terminate this Contract after such cure period if City has not adequately corrected such breach in accordance with this Contract and Contractor so notifies City in writing of such termination action. 37.3 CLAIMS Following any such termination or expiration of this Contract, neither party shall have any further obligation under this Contract other than for claims arising prior to such termination date or expiration date and provisions that expressly survive the termination or expiration of this Agreement such as the indemnification obligations set in Section 26. 37.4 CART REMOVAL Following termination or non -renewal of this Contract by the City or Contractor, the Contractor shall remove all containers placed pursuant to the Contract within two (2) weeks at no additional cost. 38 Renewal of Contract This Contract is renewable, upon the written mutual consent of the parties. 39 Notice Except as otherwise herein provided, all notices required to be served by either party shall be in writing and sent by postage prepaid, certified mail, as follows: If to the City of Fridley: City of Fridley Attn: Environmental Planner 7071 University Ave. NE Fridley, Minnesota 55432 If to Contractor: Republic Services Attn: Bev Mathiasen, Municipal Services Manager 8661 Rendova Street NE 11P6966 Blaine, MN 55014 Or to such other address as the party addressed shall have previously designated by notice given in accordance with this Section. All notices shall be effective on the date sent. 11P6966 40 Signatures IN WITNESS HEREOF, the parties hereto have caused this Contract to be duly executed and delivered as of the day and year first written above. CITY OF FRIDLEY, MINNESOTA BY: Name: Mayor ON: _ 2018 Name: , City Manager ON: 2018 ALLIED WASTE SERVICES OF NORTH AMERICA, LLC, doing business as Republic Services of Blaine NAME: TITLE: ON: 11P6966 Attachment A. Recycling Processing Charge *Exainp le of Recyclhig Processhig Fee Calculation® Net IlProcessing Valine/ Clhalrge - Model foie All Date Review Number of Homes Piickups per Month Rounds per seat out Tons per Month 9,155 2.165 14.5 14144.327018.8 Riecydle Processing Rate per Ton for Riesiidenttuall Stream (from MRIF Conttrollller) % Tons Rate Tons solid 88a% 127.,01 107.00 R,ew from Ccrrxrmadityr 1,3,,59,0 Resliduall tons 10A17.32 $a' 83.52esOLAOa Casts (Trans & Drsp, (1,4147 *Residuaal oasts should be ra' cost, ra'revenue a -a Cormrmodiitty Vague (IRWett. Revenue diiyaiided by Tons per Month) Nett Processing l � Commodity Vallue rmunus Processing Rate), Share with City (iif commodity vallue exceeds processing costs; City Rebate � pe r Ton ) Net R,Evon UO $ 12,143 844.144 (3x.30) 50 Monthlly I Ret Processung "Valine (Rebate or IR~Ret Processung Position x Tons per Month) (44,373) latedilulstimenit to lReconcili mirnmodlilt i. Iiil Value $ 0.48 A. Annual Recyclin2 Adiustment. In addition to the Annual Collection Rate Adjustment set forth in Section 4.1 of this Agreement, by the September lst following each anniversary of the Effective Date of this Agreement, Republic shall evaluate, and adjust if needed, the Recycling Processing Charge based on any changes in Number of Homes, Pick Ups Per Month, Pounds Per Set Out, Tons Per Month, Commodity Value, Processing Rate and/or Residual Costs (the "Annual Recycling Adjustment"). The Recycling Processing Charge over the most recent preceding twelve (12) month period shall be compared to the last identified Recycling Processing Charge to determine any change. A reduction in the Recycling Processing Charge shall result in a decreased price for the Recycling Services for the twelve (12) months immediately following the effective date of the Annual Recycling Adjustment. An increase in the Recycling Processing Charge shall result in an increased price for the Recycling Services for the twelve (12) months immediately following the effective date of the Annual Recycling Adjustment. 11P6966 B. Rebates. In the event that the Net Processing Rate for any given year is greater than zero dollars ($0), Contractor agrees to share fifty percent (50%) of the savings with the City by applying a credit for fifty percent (50%) of such Net Processing Rate that is greater than zero dollars ($0) to the following year's Recycling Processing Charge. Contractor will provide the City with annual reports containing all information and data necessary to calculate and verify the Net Processing Rate, Commodity Value and Processing Rate. (1) "Net Processing Rate" means the Commodity Value minus the Processing Rate and Residual costs. (2) "Commodity Value" means the average amount Contractor receives per twelve (12) month period on the sale of Recyclable Materials processed at the facility receiving the City's recyclable Materials. (3) "Processing Rate" means the then -current rate Contractor charges to process Recyclable Materials. C. Recyclin2 Processing Charge. The Recycling Processing Charge (an example of which is set forth at the beginning of this Attachment A) shall be based on the following inputs: (1) Number of homes: To be determined based on the Certified Dwelling Unit Count. (2) Pickups per month: Pickups per month is 2.17 (26 weeks per year divided by 12 months). (3) Pounds per pickup: To be determined based on monthly recycling abatement forms completed by drivers indicating the tonnage collected. That tonnage is multiplied by 2,000, divided by 2.17, and then divided by the number of households in the city to reach the average pounds per set out for that month. (4) Tons per month: To be determined based on the pickups per month multiplied based on the pounds per pickup. (5) Recycling Processing Rate Per Ton: To be determined from MRF Controller, but with an annual cap of a 3% increase. (6) Tons Sold Percentage: To be determined based on outbound tons sold to a mill at a positive price. (7) Residuals Sold Percentage: The residual rate is the inbound tons less tons sold or disposed — this is a MRF average, not specific to Fridley. (8) Tons Sold Rate: To be determined based on the sale price of material processed less any transportation costs incurred delivering material to the end mill. (9) Residuals Tons Rate: To be determined based on the cost to transport and dispose of the residual material after processing is complete. 11P6966 Attachment B. Current Route Map Fridley ICIISchedule 111Et1y Effective: January 1, 2018 .I 1311 I ' =Holiday week may move your normal recycling day back one day J, Blue Week Monday: Blue Week Tuesday, Jan; $ 22 Jan 9,23 F b- 5 19 Feb. 6i 20 March. 5.19 Manor: 6, 20 U u 'JmI11CNm1MItmNpIl@WIA@ April: 2. 16 ao April: 3, 17 f. May 14,29' May 1.15,"$0 1 k i Juno: 11 2§ June: 12,28 �5 �„ July. 9:23 Juty, 14,24 I Aug: 6, 20: Au9' 7, 21 Sept "5,18 29 Oct 2, 16, 30 Nuv: '12,26 Nov. 13,27 awwwwuwwww�.www.w� lc 90, 24 Dec 11 26 ul l Gran Week Monday: "Mn BORNE RD E. Fah 13,26 10-h: 12,28 April; 9,23 mar 7,21 June: 4,1E July: 2,16 , 4611 41 ff ', eKFc .I � ° _ ml a uuuuuuuuu Aug 13,2i l� r nP' a 1 Sept 10,24 So $, 22 1 "pi�uIIIi iiiI,I , Now: 5,19 5. Dec 3, 17, 31 w / N I Tuesda We�I! / 1111 u/r 11"'` Gygv ek y: .Jan 3", 161 ail , k J r r ��pkulli 1' II 1 I t2 t y@ Fab: 13,27 117x1 March. 93, 22 4 �plimlYkUfi Mara: $0,20. y y R41S5155@P141T4I .June.". 5,19 $Illlh �W I 1 Ju3,17,31 �f �� �.11'. Aa 94,2E 1 �i i UWWINAI I �(: R.CREEK RD NE Sept 91 25 23� f l c fl s. r Nov: 6, 2R(I� y Dec,4.1E eI Q�.� WI W fillies a �. Tl �I Jan17 31 M mh 14,28 API 1126 rh ,'lilt p May' 9,23 Jun.: 6, 20 J ly 6, 18 Aug 1, 15, 29 M1X 1111 r • , Sept 12, 26f 1J OM 10.24 : 7,21 Dec:T"' ^, nec6, 26 Tl e '� Grey Week Thursdav: 'p Blue Week Wedneaday. Blue Weak Thursday: Jan. 6", 18 A Q Jan: 1c.24 J t1, 25 'G Fab 1,1'5 t Feb °7.21 F b 8,22 March: 1, 1s, 29 �0 " 11 M •h 7,21 M ch $, 22 April: 12, 2E 7m f April 4, 18 April 5, 19 MaY 10, 24 (I„ May, 2,.16, "31: May, 3, 17 "Jun 1(Ho17. June: *6, 1 IJ I1� I � July 11,28 S 27 1 �y 12, 26 2E July: 6, 19 Aug: 2, 16, 30 Aug; $.22 Aug. 9.33: Sepi 13, 27 Sept '6,19 Sept? '7 20 Oct 11 25' ` i h 1 Oct. 3,.17.34. Oct; 4, MSE 23... l„J I�ov. 14, 28: Nov 1, 15 29 6zc 6. 20 I D-1 12, `27 Dec. 13."28. I I y The CrtydF dl yh Eak yebn. T vi F arc�rL, ns y 1 d "ir. iM1ntlg q , nut. The d�- .Fred he e ub a'daagil s. TheC[yuFdCXNatb p bl fo Y M "1,1 wnfaroseone oso sagaaith"s doeu e�nt. "r Map Date: December 20 2017 Attachment B. Current Route Map 23 Attachment C. Alley Map Map of Alley Collection Sites q Ilru A h tyY K � I �i uulV#@ smTH VE 69TH AVE Rear: 63 d(IJIM SVde:20 A Mobile Homes lllrrlllll City Limits 59TH AVE. 59T. AVE i lylUlylyl � I as v II � �.. �IIIIIIUIIIIUI pp��� � 58THAVE .....,.i,,, SETH Ave. i FIRESME DA r7I 3 Bin Locations for Alley Properties uulV#@ Front: 48 r i FIRESME DA r7I 3 Bin Locations for Alley Properties uulV#@ Front: 48 Rear: 63 d(IJIM SVde:20 Paved Alley Mobile Homes lllrrlllll City Limits Water -' Parcels Attachment C. Alley Map 24