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HomeMy WebLinkAboutPR 20359: LANDFILL DISPOSAL CONTRACT FOR SPRINT WASTE *4V' 1 r 1/t tt _ l esus www.PortArthurTx.gov 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 s.pr20353 Vv 1 1 toxh444,_, Andrew asquez, A Clifton Williams, CPPB Finance Director Purchasing Manager s.pr20359 EXHIBIT "A" s.pr20359 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