Loading...
HomeMy WebLinkAboutPR 21287: APPROVAL TO EXECUTE A COMMERCIAL REFUSE DISPOSAL CONTRACT i -,„ 4 .4, City of r= Vitt rtltu�� "Texas www.PortArthurTx.gov INTEROFFICE MEMORANDUM Date: February 12, 2020 To: The Honorable Mayor and City Council Through: Ron Burton, City Manager From: Kandy Daniel, Interim Finance Director RE: P.R. 21287—Approval to Execute a Commercial Refuse Disposal Contract Introduction: The intent of this Agenda Item is to seek City Council's approval for the City Manager to execute a Commercial Refuse Disposal Contract between the City of Port Arthur and Bechtel Oil Gas & Chemicals, Inc. of Houston, Texas. Background: It is to the benefit of the City of Port Arthur(City)to increase its solid waste revenues by promoting the use of its sanitary landfill. Bechtel Oil Gas & Chemicals, Inc. of Houston, Texas has submitted an application to dispose of refuse at the City's sanitary landfill of which a significant amount of its eligible collection volume comes from commercial establishments that it serves both inside and outside of the city. The City's sanitary landfill has adequate capacity to handle the additional waste that would be deposited. Budget Impact: Solid waste revenue will increase for landfill operations support. Recommendation: It is recommended that City Council approve City Manager to execute a Commercial Refuse Disposal Contract between the City of Port Arthur and Bechtel Oil Gas & Chemicals, Inc. of Houston, Texas as discussed and/or outlined above. "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur.Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 P.R. No. 21287 KD 2/12/20 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A COMMERCIAL REFUSE DISPOSAL CONTRACT BETWEEN THE CITY OF PORT ARTHUR,TEXAS AND BECHTEL OIL GAS & CHEMICALS OF HOUSTON, TEXAS FOR THE PURPOSE OF DISPOSING OF REFUSE AT THE CITY'S SANITARY LANDFILL. WHEREAS, it is to the benefit of the City of Port Arthur(City)to increase its solid waste revenues by promoting the use of its sanitary landfill; and, WHEREAS, Bechtel Oil Gas & Chemicals of Houston, Texas has submitted an application to dispose of refuse at the City's sanitary landfill, of which a significant amount of its eligible collection volume comes from commercial establishments that 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 Bechtel Oil Gas & Chemicals; and, WHEREAS, the City and Bechtel Oil Gas & Chemicals have developed a contract that will generate additional solid waste revenues for the City and that will provide additional support for the operation of the City's sanitary landfill and is attached hereto as Exhibit"A". 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 Bechtel Oil Gas& Chemicals of Houston, Texas, in substantially the same form as the contract 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 February, A.D., 2020, at a Meeting of the City Council of the City of Port Arthur. by the following vote: AYES: Mayor: Councilmembers: NOES: Thurman "Bill" Bartie, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED AS TO FORM: 04 be(,o/Fo+ /ii /!f a yL--- zeno, City Attorney r APPROVED FOR ADMINISTRATION: Ron Burton. City Manager Kandy Daniel,1terim Finance Director EXHIBIT "A" COMMERCIAL REFUSE DISPOSAL CONTRACT THE STATE OF TEXAS § COUNTY OF JEFFERSON § KNOW ALL MEN BY THESE PRESENTS: This contact was made and entered into by and between the City of Port Arthur, acting by its City Manager or his designee and hereafter styled"City", and Bechtel Oil Gas & Chemicals Inc. hereafter styled "Hauler", whose business address and phone number are as follows: 3000 Post Oak Boulevard Houston, TX 77056 Telephone: 713-235-4370 I Hauler shall agree to all terms as outlined in Ordinance 16-05 which amends the City Code of Ordinances Chapter 86, section 79(c) and(d), as it pertains to the collection and disposition of refuse and the refuse disposal rate schedules. In accordance with Ordinance 16-05 and based on the estimated monthly volume indicated in the submitted application, hauler has been approved for a heavy user discount rate of$5.00 per cubic yard minimum. The City Manager has the discretion to disallow this rate if the volume decreases below 10,000 CY per month. II In consideration for the monthly payment of fees, Hauler may dispose of refuse at the City's landfill. Hauler shall pay a deposit in advance in the sum of$11,250.00 with the City to be held to secure any delinquent charges.Fees shall be billed monthly provided credit is approved and Hauler agrees to all terms as outlined below and in the submitted application. III Hauler shall identify in detail the refuse to be disposed of and where it was generated. IV Hauler shall then be able to dispose of refuse at the City's landfill. The City has the right to increase the required deposit if monthly volumes increase. V Hauler shall pay all arrears within 25 days of billing and failing to do so will incur a late fee of ten percent of the arrears. If collections proceedings are required, Hauler shall also pay attorney fees and court costs. VI The Director of Public Works or his designee has the discretion to not allow Hauler access to the landfill if Hauler's account is delinquent, or wants to dispose of refuse that is not allowed in the landfill, or refuses to state where the waste was generated, or refuses to dispose of refuse in the designated area or against public, health and safety. VII In further consideration, Hauler agrees to release the City and its employees from any damages or injuries that result using the City's landfill, and agrees to indemnify and hold harmless the City, its agents, and its employees, from all liability, damages, injuries, claims, causes of action, and expenses arising in connection with its use of the City's landfill. VIII This contract shall be from month to month, but may be canceled by either party upon giving ten days written notice, mailed from the respective address indicated in this contract. This contract may be immediately canceled by the City,when Hauler violates any rules governing the use of the City's landfill. SIGNED and AGREED to on this day of February 2020. Bechtel Oil Gas & Chemicals Inc. By: Name: Title: SIGNED and AGREED to on this day of February 2020. THE CITY OF PORT ARTHUR By: Ronald Burton City Manager APPROVED: Director of Public Works Landfill Credit Application Name/Address • Last Desrochers First Jim Middle Initial Title Sr Contracts Manager Name of Business Bechtel Oil Gas&Chemicals Inc Tax I D Number Address 3000 Post Oak Blvd Email Address Jtdesrochers@Bechtel corn City Houston Stale TX ZIP 77056 Phone 713-235-4370 Company information - See attached letter from Bank of America Type of Business In Business Since Legal Form Under Which Business Operates (Please Attach Articles of Incorporation,Partnership Agreement DEA Certificate) Corporation Partnership Proprietorship If Division Subsidiary Name of Parent Company In Business Since Name of Company Principal Responsible for Business Transact ons Title Address City State ZIP Cell Phone Name of Company Principal Responsible for Business Transactons Title Address City State ZIP Cell Phone Bank References - See attach letter from Bank of America Institution Name- Institution Name Institution Name Checking Account# Savings Account# Loan Loan Balance Address Address Address Phone: Phone Phone Trade References - Sce attached letter from Bank of America Company Name Company Name Company Name Contact Name Contact Name Contact Name Address. Address Address Phone: Phone Phone Account Opened Since Account Opened Since Account Opened Since Credit Limit Credit Limit Credit Limit Current Balance Current Balance Current Balance I hereby certify that the information contained herein is complete and accurate This information has been furnished with the understanding that it is to be used to determine the amount and conditions of the credit to be extended Furthermore I hereby authorize the financial institutions listed in this credit application to release necessary information to the company for which credit is being applied for in order to verify the information contained herein Signature Date Hauler Questionnaire I. What type of refuse do you plan to dispose of at Port Arthur's Landfill and what is the estimated monthly volume? Refuse Type Estimated Monthly Volume Compacted Waste Cubic Yards Non-Compacted Waste �'i6-1— i TThC I*1) P - Cubic Yards Appliances Poor fig-11-11-1R Number — Tree limbs.Brush L! ��4 FA�71o� �R �rNumber Whole Tires Other DISPo -4L or - Cubic Yards No N-CD, 4cr6' u 1 T _- 2. Identify in detail where the refuse will be generated? (primary picked up locations) 3. Monthly Credit Amount Requested: Terms of Account Hauler must have a signed contract in order to dispose of Refuse at Port Arthur's Landfill. Hauler has the option to pay by cash or credit card on delivery. Hauler understands that ifcredit is requested from the City of Port Arthur, the following conditions apply: - Credit must be approved by the Director of Public Works. - An advance deposit (minimum S1,000) is required if credit is approved. The required amount is contingent upon review of the haulers credit and the estimated monthly charges. The City has the right to increase the required deposit if monthly volumes increase. - Hauler shall pay all arrears within 25 days from billing date. - Payment received after due date shall incur a late fee of l0°0 of the arrears and Hauler shall not be allowed to access the Landfill until such time as the account is paid in full. The Director of Public Works or his designee has the discretion to not allow Hauler access to the landfill if Hauler's account is delinquent, or wants-to dispose of refuse that is not allowed in the landfill, or refuses to state where the waste was generated, or refuses to dispose of refuse in the designated arca. In further consideration, Hauler agrees to release the City and its employees from any damages or injuries that result using the City's landfill, and agrees to indemnify and hold harmless the City, its agents, and its employees, from all liability, damages, injuries, claims, causes of action, and expenses arising in connection with its use of the City's landfill. Signature Date 4<-10101.40;001°' BANK OF AMERICA February 10`h, 2020 One Bryant Park, 18 hfloor NY I-100-18-01 New York, NY 10036 City of Port Arthur Texas ATTN:Alberto Delano. PE Public Works Director Mukesh Singh PH: 409-983-8189 Director Wholesale Credit PH: (646)-743-2460 Re: Use of Port Arthur Landfill In support of Bechtel Oil,Gas& Chemicals Inc., we are pleased to provide the following information. Bechtel Oil, Gas & Chemicals Inc. is a wholly owned subsidiary of Bechtel Corporation (`Bechtel"). Bechtel specializes in providing engineering, procurement, construction management and construction services related to government projects, buildings, ports, airports, highways, railways, bridges, power stations, pipelines, waste treatment facilities, petroleum refineries, chemical plants, hydroelectric projects and attendant facilities. Bechtel's engineering and construction activities extend through subsidiaries and associated entities throughout the United States and many parts of the world. Our bank has maintained a relationship with Bechtel for approximately 80 years and all obligations have been met as contracted. We have the highest regard for Bechtel's management skills and integrity, its financially conservative management philosophy and we look forward to the continuation of our relationship. Bank of America, N.A. is currently Administrative Agent on various loan and letter of credit facilities ("Credit Facilities") in the low (10) figures, which is available to Bechtel. Currently, there is availability under the Credit Facilities in the low(l0)figures.Including our exposure to these Credit Facilities,we have committed credit facilities in the low(9)figures available for various Beclite:entities.Our credit ranges from direct lending facilities to bonding commitments.To date, we are not aware of any breach of any of the obligations under the various credit agreements, including with respect to the obligations of the Bechtel entities to pay amounts owed when due. Please note that any information set forth in this letter is subject to change without notice, and is provided in strict confidence, without any responsibility or liability on the part of Bank of America.N.A., its affiliates or any of its or its affiliates' directors, officers or employees. Bank of America, N.A. undertakes no responsibility to update the information set forth in this letter. Please contact me at the number listed above if you have any questions or concerns. Sincerely, BANK OF AMERICA,N.A. By: 1/i4<- ‘7' Name: Mukesh Singh Title: Director 0 p .y 0 O N} ON Ti p " O Q F- t+i c C >ip -. $ N g 47, N N O p o. a E f a) I e e. 0 O0 O NG C ~ p n 8 E O w"' O ^! O N r d r.19y u. a a `'r. c,P.- L a O tO § e. C 1...4 p 'V C 6 Jd A N m N N O O C w I t� 2 0 'Oti C L p U L , t��j 0 0 o m Q t O a vp p~� 0 'n`4 o t• 1 ■ r O g O M. ds vi C 0 tl'.4._ 4 'E R a ,b C O N p0 E ��+ t o w N ao ^' O o al V ' E Z `� p ni c c N v .0 4-, I. t�4 �... o g 6 d a �� o 5 N 00 N L h 0 EO a F. !y 3 Db N •N 8 N O§o cn L O `y Of ro CO t. n H .N CL . e9vo 17 ✓ tli p N■ e hO L▪ 0 • O' C J ftri9 iO cQ1 c S 8 O N HO .iO LL0 a U IN� a = - ti d E ter,, ; c a a Cu O uE o o $ 0 L d 5 - O� a E e p N o U I.) % oa d - a ;,, a� E s ro ro d r m vu Q IIII" `7 U o''' § b III, O� —oC0 4J � �O N p N /a- `O C N • } a > O<4 v CO J 6 _ 8 8 ,� C� O p E r o �� h N O N p Ih` 67 7 m2 m C Q N ..0. .D. 65 b ..n L g $ § g $s g V o v a M M N N y I U A M o" 3 N O. n O E spJeA)iqnD lesodsid E 0 u C C 2 Below for Internal Use Only 16ec r *e.\ O•,1 4- 64s Company Name Comments 8echA-cl A;seaSZ geo,coo Y -i-o i�wA•€I1i ;''1 2 t tnon 1`^S h� u1� A/1Ni_ C'.}I, OrA.nAts 3 e>04:-.4.^A- s :41t1A 4-0 "e1/4`14- ..e. tie-4,1 (-Ake- 04 ,45 PO.- b,c yArek . 56.e.cankcA ‘"Ng.t.S, 1 LC'Cct,-1- nv.A� �S e rC .,orr+tie,".14.k c 't`'vt� + �O"/s dF�.sik- o �Qr. 2v he rPduYreA A . 54Z. 44-ic 1 Credit Approved Yes ✓ No If Yes, Monthly Credit Limit $ AlZ�5 00 Deposit Amount Required $ i i , 2 5.0 Reviewed By: Date Approved By: C `c 2 - i3- 2o1p Director of Public Works Date