HomeMy WebLinkAboutPR 20359: LANDFILL DISPOSAL CONTRACT FOR SPRINT WASTE *4V' 1 r 1/t tt _
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INTEROFFICE MEMORANDUM
Date: July 25, 2018
To: The Honorable Mayor and City Council
Through: Harvey Robinson, Interim City Manager
From: Armando Gutierrez, Jr., P.E., Director of Public Works
RE: P.R. 20359—Landfill Disposal Contract for Sprint Waste
Introduction:
Discussion and possible action of a Landfill Disposal agreement with Sprint Waste Services,
LP of Port Arthur for the disposal of refuse at the City of Port Arthur Landfill at an agreed
price of$5.50 per Cubic Yards in accordance with section 86-79 (a) Heavy Users of the City's
Code of Ordinance. The estimated revenue income from this agreement will be over
$700,000.00 per year.
Background:
Sprint Waste Services is a provider of waste collection, storage, removal, hauling, and
recycling and landfill services to industrial and large commercial businesses across the Gulf
Coast. While the landfill services in Port Arthur only amounted to a few thousand dollars a
month, the liquid disposal services at the Sanitary Sewer plant made up a substantial revenue
stream. Sprint Waste cancelled all their business arrangements with the City of Port Arthur
over a year ago and took their business outside the city. This agreement is part of an
arrangement to bring them back to the City of Port Arthur.
Section 86-79 (a) of the Code of Ordinance gives the City Manager the discretion of
negotiating a different price for Heavy users. The price of$5.50 per Cubic Yards is the same
price given to CrowderGulf when they were working here after the flood of TS Harvey.
Additionally this is the same price that was offered to CrowderGulf and we simply matched
the price in an effort to acquire their business and is the same price Sprint Waste Services is
currently getting at the neighboring landfills.
"Remember,we are here to serve the Citizens of Port Arthur"
P.O.Box 1089 Port Arthur,Texas 77641-1089 x 409.983.8182 x FAX 409.983.8294
1
Budget Impact:
Revenue income at the landfill and at the Sewer Treatment plant through the Pretreatment
Program. The estimated revenue income from this agreement will be over$700,000.00 per
year.
Recommendation:
Recommend approval of the Landfill Disposal agreement with Sprint Waste Services, LP of
Port Arthur for the disposal of refuse at the City of Port Arthur Landfill at an agreed price of
$5.50 per Cubic Yards in accordance with section 86-79 (a) Heavy Users of the City's Code of
Ordinance.
"Remember,we are here to serve the Citizens of Port Arthur"
P.O. Box 1089 • Port Arthur,Texas 77641-1089 * 409.983.8182 ac FAX 409.983.8294
P. R. No. 20359
07/25/18 gt
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A
COMMERCIAL REFUSE DISPOSAL CONTRACT BETWEEN THE CITY OF
PORT ARTHUR, TEXAS AND SPRINT WASTE SERVICES LP OF PORT
ARTHUR,TEXAS FOR THE PURPOSE OF DEPOSITING REFUSE AT THE
CITY'S SANITARY LANDFILL
WHEREAS, it is to the City of Port Arthur's benefit to increase its solid waste
revenues by promoting the use of its sanitary landfill; and
WHEREAS, Sprint Waste Services LP ("Sprint Waste") of Port Arthur, Texas has
expressed an interest in using the City's sanitary landfill to deposit a significant amount of
its eligible collection volume from commercial establishments it serves both inside and
outside of the city; and
WHEREAS, the City's sanitary landfill has adequate capacity to handle the
additional waste that would be deposited by Sprint Waste; and
WHEREAS, the City and Sprint Waste have developed a contract that could net the
City additional solid waste revenues that will provide additional support for the operation of
the City's sanitary landfill.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR:
Section 1. That the facts and opinions in the preamble are true and correct.
Section 2. That the City Manager is hereby authorized to execute a Commercial
Refuse Disposal Contract between the City of Port Arthur and Sprint Waste Services LP of
Port Arthur, Texas, in substantially the same form as attached hereto as Exhibit "A".
Section 3. That a copy of the caption of this Resolution be spread upon the
Minutes of the Corporation.
READ, ADOPTED AND APPROVED on this day of
A.D., 2018, at a Meeting of the City Council of the City of Port Arthur, by the following
vote: AYES:
Mayor:
Councilmembers:
NOES:
DERRICK FORD FREEMAN, MAYOR
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS / O FORM:
\i% OLWIL
Valecia R. Tizeno, Ci 'ttorney
APPROVED FOR ADMINISTRATION:
Harvey Robinson Armando Gutierrez
Interim City Manager Director of Public Works
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Andrew asquez, A Clifton Williams, CPPB
Finance Director Purchasing Manager
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EXHIBIT "A"
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COMMERCIAL REFUSE DISPOSAL CONTRACT
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
KNOW ALL MEN BY THESE PRESENTS:
This contract made and entered into by and between the City of Port Arthur
acting by its director of public works or his designee and hereafter styled "City", and
Sprint Waste Services LP, hereafter styled "Hauler", whose business address and
phone number are as follows:
1000 S. Business Park Drive
Port Arthur, TX 77640
Telephone: 409-736-3600
I
In consideration for the monthly payment of fees, Hauler may deposit refuse at
the City's landfill. Hauler shall deposit in advance the sum of $ 2500.00 in cash with
the city to be held to secure any delinquent charges. Fees shall be billed monthly.
II
The Hauler shall identify in detail the refuse to be disposed of and where it was
generated.
III
The Hauler shall then be able to deposit refuse at the City's landfill; but, it
cannot deposit more than double the amount that is covered by its deposit. Once the
Hauler exceeds that amount or is late in its payments, it shall be required to pay
C.O.D.
IV
The Hauler shall pay all arrears within 25 days, and failing to do so shall pay a
late fee of ten percent of the arrears. If collection proceedings are required, the
Hauler shall also pay attorney fees and court costs.
V
The Director of Public Works or his designee has the discretion to not allow
Hauler access to the landfill if the hauler has a poor credit record, wants to deposit
refuse that is not allowed in the landfill, or refuses to state where the waste was
generated, or refuses to deposit refuse in the designated area.
VI
In further consideration, Hauler agrees to release the city and its employees from
any damages or injuries in using the City's landfill, and agrees to indemnify and hold
harmless the City, its agents and employees, from all liability, damages, injuries,
claims, causes of actions, and expenses arising in connection with its use of the City's
landfill.
VII
This contract shall be from month to month, but may be cancelled by either party
upon the giving of ten days' written notice mailed to the respective address indicated
in this contract. Provided, that this contract may be immediately cancelled by the City,
without prior written notice, upon Hauler's failure to pay the prescribed fees or upon
Hauler's violation of any rules governing the use of the City's landfill.
SIGNED and AGREED to on this day of , A.D., 2018.
SPRINT WASTE SERVICES LP
By:
Print Name:
Title:
SIGNED and AGREED to on this day of , A.D., 2018.
CITY OF PORT ARTHUR
By: •
Harvey Robinson
Interim City Manager
M
APPROVED FOR ADMINISTRATION:
Armando Gutierrez
Director of Public Works