HomeMy WebLinkAboutPR 21287: APPROVAL TO EXECUTE A COMMERCIAL REFUSE DISPOSAL CONTRACT i -,„
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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
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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
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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