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CR 96-161 Haul Waste To Hennepin County Facilities• October 7, 1996 Proposed Action. Overview. primary Issues to Consider APPROVAL OF CONTRACT TO HAUL RESIDENTIAL WASTE TO HENNEPIN COUNTY FACILITIES Steven J. Stadler, Public Works Director Council Report: 96 -161 Staff recommends adoption of the following motion: "Authorize the Mayor and City Manager to enter into a two year contract with Hennepin County to haul residential waste to their facilities at a reduced tip fee of $41 per ton." The City has been hauling waste to Hennepin County facilities ever since they lowered the tipping fee at their facilities to $60 /ton in 1994. Hennepin County has been lowering the tip fee periodically due to competition with out -state landfills and the failure of flow control legislation in the courts. The County at its September 17th Board Meeting voted to again reduce the tip fee at their facilities to $41 /ton if haulers will sign contracts agreeing to haul their waste to the county facilities. They are offering 12 month, 18 month and 24 • month contracts. Staff has selected the 24 month option based on the fact that if a lower tip fee becomes available to any other hauler, the contract with Hennepin County guarantees Hopkins the same lower fee. Since we currently haul to the Hennepin County facilities and feel there is no immediate reason to change, staff recommends that the city enter into a contract with Hennepin County. o Why should the City of Hopkins contract with Hennepin County? o Projected 1997 Budget Impact Supporting Information o Analysis of Issue o Proposed Contract Council Report: 96 -161 Page 2 • Analysis of Issues o Why should the City of Hopkins contract with Hennepin County? The city is currently paying $45 /ton to dispose of waste at the Hennepin County Transfer station in Brooklyn Park. By continuing our contract with Hennepin County that fee would be lowered to $41 /ton. The fee to haul into the Hennepin County system without a contract is $60 /ton. At this time there is no facility nearby that would accept our waste at a lower fee. Also it is important to support the County's system, as failure of the Hennepin County Solid Waste Management system would ultimately be a cost borne by all Hennepin County residents. o Projected 1997 Budget Impact The 9% drop in tipping fee, from $45 /ton to $41 /ton, will result in a reduction of approximately $10,400 in disposal fees. This is based on a projection of 2600 tons of refuse being collected in 1997. • • WASTE DELIVERY AGREEMENT Amendment No. 1 THIS Amendment is made and entered into this _ day of , 1996, by and between the COUNTY OF HENNEPIN, STATE OF MINNESOTA, hereinafter referred to as the "County ", Hennepin County, A -2300 Government Center, Minneapolis, Minnesota 55487 on behalf of the Department of Public Works, Environmental Management Division, 417 North Fifth Street, Minneapolis, Minnesota 55401 -1309, hereinafter referred to as the "Division ", and the City of Hopkins, 11100 Excelsior Blvd., Hopkins, Minnesota 55343, hereinafter referred to as "Hauler ". IT IS HEREBY AGREED that that certain Agreement, made and entered into on July 1, 1995, and bearing Contract No. Al2095, between the herein named parties covering the Waste Delivery to a County Facility is hereby amended in accordance with the provisions set forth below: 1. TERM OF THE AGREEMENT Section I is hereby amended to read: The Hauler agrees to furnish services to the County during the period commencing July 1, 1995, and terminating September 30, 1998. The terms and conditions of the Amendment herein shall be effective beginning October 1, 1996. • 2. DEFINITIONS. The definition of "Unacceptable Waste ", Section II., paragraph E. is amended by deleting the words "Appendix A" and adding the words "the Hennepin County Solid Waste System Operating Manual ". 3. The definition of "Hennepin County Solid Waste System Operating Manual" in Section II, paragraph F is changed is amended by deleting paragraph F in its entirety and replacing it with the following language. Hennepin County Solid Waste System Operating Manual is the manual prepared by the Environmental Management Division which describes the procedures and requirements for all haulers operating in Hennepin County including the use of the County's Facilities. 4. REPRESENTATIONS. Section III, paragraph A, subparagraph 1 is amend by deleting subparagraph 1 and replacing it with the following language: A. HAULER REPRESENTATIONS. 1. The Hauler is a municipal corporation or other government entity duly organized and validly existing under the law of the state of Minnesota and properly qualified to do business under the laws of Minnesota, and is licensed to haul waste in Hennepin County. The Hauler is doing business in Minnesota under the name City of Hopkins. • 5. REGULATORY COMPLIANCE. Section IV, is amended by deleting the section and replacing it in its entirety with the following Language: • The Hauler shall at all times operate its business of collecting, transporting, delivery, and disposal of waste in compliance with all applicable federal, state, and local laws, rules, regulations, ordinances and licenses, including but not limited to Hennepin County Ordinances 15 and 17 6. SCOPE OF SERVICES. Section V, paragraph A, subparagraph 1 is amended by deleting subparagraph 1 and replacing it in its entirety with the following language: A. Delivery of Acceptable Waste 1. The Hauler agrees to deliver to a County Facility, all Acceptable Waste generated in Hennepin County that it collects, transports, manages, or disposes with the exception of: a) Acceptable Waste in the minimum amount committed to an out -of -state disposal facility by a previous binding written contract executed between June 1, 1994 and April 1, 1995 by the Hauler and another party and which was reviewed by the County for this exception on or before July 1, 1995. This exception will only apply to the initial contract period and extensions or replacements for out -of -state disposal, not to exceed the minimum amount of waste previously committed in the original contract. The Hauler shall allow review of said contract except for financial terms by Hennepin County; and b) Non - processible waste, residues, and excess waste transported from a County Facility at the direction of the County. 7. Section V, paragraph A is amended by adding the following subparagraph: 6. The Hauler agrees to abide by the conditions of the Solid Waste System Operating Manual. 8. PAYMENT PROCEDURES. Section VI is amended by deleting the section and replacing it in its entirety by the following language: A. Payments shall be made in accordance with procedures provided in the Hennepin County Solid Waste System Operating Manual. 13. The Hauler shall pay $41.00 per ton for Acceptable Waste delivered to a County Facility, which will be less than the gate rate for non - contracted waste. 2 • C. The Hauler will receive the same rate given to any hauler who contracts with the County for delivery of Acceptable Waste. 9. NON - ASSIGNMENT. Section XII is amended by deleting the section and replacing it in its entirety by the following language: The Hauler shall not assign, subcontract, transfer, or pledge this Agreement and /or the services to be performed hereunder, whether in whole or in part, without the prior written consent of the County. If the Hauler is a Self- Hauler as defined in Hennepin County Ordinance Number 15 the Hauler may not under any circumstances assign, subcontract, transfer, or pledge this Agreement and /or the services to be performed hereunder, whether in whole or in part. If the Hauler attempts to assign, subcontract, transfer, or pledge this Agreement and /or the services to be performed hereunder, whether in whole or in part, this Agreement will become immediately null and void. 10. TERMINATION. Section XVI is amended by adding the following paragraph: C. In the event the County anticipates a substantial loss of tons of Acceptable Waste delivered to the County Facilities, the parties agree to renegotiate the price set forth in Section VI.B. in good faith. 11. RENEWAL. Section XXI. is amended by deleting it and replacing it in its entirety with the following paragraphs: This Agreement may be extended for an additional twenty-four (24) months by mutual consent of the parties, upon the same terms, conditions, and covenants. Written notice to extend must be given by either party no less than ninety (90) days prior to the expiration date of this Agreement and if mutually agreed to in writing before expiration of this Agreement. Except as hereinabove amended, the terms, conditions, and provisions of said Contract No. Al2095 shall remain in full force and effect and are incorporated herein by reference. 3 • IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives as to this day of , 1996. • COUNTY OF HENNEPIN Approved as to form and execution: STATE OF MINNESOTA By: Assistant County Attorney Chair of its County Board Date: And: City Attorney CHECK ONE: 4 Date: By: And: Associate County Administrator ATTEST: Clerk of County Board CITY OF HOPKINS Approved as to form. STATE OF MINNESOTA (Title) (Title) SEAL Charter: Option A: Option B: