Agenda Item 8C AGENDA ITEM # 8C
NOVEMBER 14, 2011
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Agreement with Chesser Island Road Landfill, Inc. for Disposal of Sludge
SUBMITTED BY: Donna Kaluzniak, CEP, Utility Directo
DATE: November 2, 2011
BACKGROUND: As reported previously to the City Commission, the City of Jacksonville may
begin charging landfill tipping fees to the City of Atlantic Beach. Staff investigated to determine if
any cost savings were possible by hauling our wastewater sludge to other nearby landfills.
Chesser Island Road Landfill, Inc., a Waste Management Company in Folkston, Georgia has lower
tipping fees for sludge disposal that will result in a cost savings, even with the additional
transportation costs ($19.75 /ton vs. $41.00 /ton). Staff would like to have an Agreement with Chesser
Island in the event Jacksonville begins charging tipping fees at Trail Ridge Landfill.
The Agreement does not require us to dispose of our sludge at Chesser Island, but allow us to do so if
needed.
BUDGET: Estimated savings for disposal of sludge from the City's wastewater treatment plant
would be approximately $63,000 /year if tipping fees are required by the City of Jacksonville.
RECOMMENDATION: Approve the Agreement with Chesser Island Road Landfill, Inc. and
authorize the City Manager to sign the Agreement..
ATTACHMENTS: 1. Chesser Island Road Landfill, Inc. Agreement
AGE
REVIEWED BY CITY MAN
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AGENDA ITEM # 8C
NOVEMBER 14, 2011
as a result of or relating to Customer's tender or delivery of cruing from the date of the invoice at a rate of eighteen percent
Nonconforming Waste or other failure to comply or conform to (18 %) per annum or, if less, the maximum rate allowed by law.
this Agreement, including costs of inspection, testing and anal- g, INDEMNIFICATION. The Company agrees to indemnify, de-
ysis. fend and save Customer harmless from and against any and
5. SPECIAL HANDLING; TITLE. If Company elects to handle, all liability (including reasonable attorneys fees) which Cus-
rather than reject, Nonconforming Waste, Company shall have tomer may be responsible for or pay out as a result of bodily
the right to manage the same in the manner deemed most ap- injuries (including death), property damage, or any violation or
propriate by Company given the characteristics of the Noncon- alleged violation of law, to the extent caused by Company's
forming Waste. Company may assess and Customer shall pay breach of this Agreement or by any negligent act, negligent
additional fees associated with delivery of Nonconforming omission or willful misconduct of the Company or its em-
Waste, including, but not limited to, special handling or dispos- ployees, which occurs (1) during the collection or transporta-
al charges, and costs associated with different quantities of tion of Customer's Industrial Waste by Company, or (2) as a
waste, different delivery dates, modifications in operations, result of the disposal of Customer's Industrial Waste, after the
specialized equipment, and other operational, environmental, date of this Agreement, in a facility owned by a subsidiary or
health, safety, or regulatory requirements. Title to and owner- affiliate of Waste Management, Inc., provided that the Compa-
ship of acceptable Industrial Waste shall transfer to Company ny's indemnification obligations will not apply to occurrences
upon its final acceptance of such waste. involving Nonconforming Waste.
6. COMPANY WARRANTIES. Company hereby represents Customer agrees to indemnify, defend and save the Company
and warrants that: (a) Company will manage the Industrial harmless from and against any and all liability (including rea-
Waste in a safe and workmanlike manner in full compliance sonable attorneys fees) which the Company may be responsi-
with all valid and applicable federal, state and local laws, or- ble for or pay out as a result of bodily injuries (including death),
dinances, orders, rules and regulations; and (b) it will use dis- property damage, or any violation or alleged violation of law to
posal facilities that have been issued permits, licenses, certifi- the extent caused by Customer's breach of this Agreement or
cates or approvals required by valid and applicable laws, or- by any negligent act, negligent omission or willful misconduct
dinances and regulations necessary to allow the facility to ac- of the Customer or its employees, agents or contractors in the
cept, treat and /or dispose of Industrial Waste. Except as pro- performance of this Agreement or Customer's use, operation
vided herein, Company makes no other warranties and hereby or possession of any equipment furnished by the Company.
disclaims any other warranty, whether implied or statutory. Neither party shall be liable to the other for consequential, in-
7. LIMITED LICENSE TO ENTER. When a Customer is trans- cidental or punitive damages arising out of the performance of
porting Industrial Waste to a Company facility, Customer and this Agreement.
its subcontractors shall have a limited license to enter a dis- 10. UNCONTROLLABLE CIRCUMSTANCES. Except for the
posal facility for the sole purpose of off - loading Industrial obligation to make payments hereunder, neither party shall be
Waste at an area designated, and in the manner directed, by in default for its failure to perform or delay in performance
Company. Customer shall, and shall ensure that its subcon- caused by events beyond its reasonable control, including, but
tractors, comply with all rules and regulations of the facility, as not limited to, strikes, riots, imposition of laws or governmental
amended. Company may reject Industrial Waste, deny Cus- orders, fires, acts of God, and inability to obtain equipment,
tomer or its subcontractors entry to its facility and /or terminate permit changes and regulations, restrictions (including land
this Agreement in the event of Customer's or its subcontrac- use) therein, and the affected party shall be excused from per -
tors' failure to follow such rules and regulations. formance during the occurrence of such events.
8. CHARGES AND PAYMENTS. Customer shall pay the rates 11. ASSIGNMENT. This Agreement shall be binding on and
set forth on Exhibit A or a Confirmation Letter, which may be shall inure to the benefit of the parties and their respective
modified as provided in this Agreement. The rates may be ad- successors and assigns. However, neither party may assign
justed by Company to account for: any increase in or to recoup this Agreement without the prior written consent of the other
all or any portion of, disposal, transportation, fuel or environ- party, which consent shall not be unreasonably withheld.
mental fees or costs; any change in the composition of the In- 12. ENTIRE AGREEMENT. This Agreement represents the
dustrial Waste; increased costs due to uncontrollable circums- entire understanding and agreement between the parties relat-
tances, including, without limitation, changes in local, state or ing to the management of waste and supersedes any and all
federal laws or regulations, imposition of taxes, fees or sur- prior agreements, whether written or oral, between the parties
charges and acts of God such as floods, fires, etc. Company regarding the same; provided that, the terms of any national
may also increase the charges to reflect increases in the Con- service agreement between the parties shall govern over any
sumer Price Index for the municipal or regional area in which inconsistent terms herein.
the Services are rendered; provided, however, that the total
combined increase in charges shall not exceed four percent 13. TERMINATION; LIQUIDATED DAMAGES. Company may
(4 %) in any given year. Increases in charges for reasons other immediately terminate this Agreement, (a) in the event of Cus-
than as provided above require the consent of Customer which tomer's breach of any term or provision of this Agreement, in-
may be evidenced in writing . All rate adjustments as provided cluding failure to pay on a timely basis or (b) if Customer be-
above and in Paragraph 5 shall take effect upon notification comes insolvent, the subject of an order for relief in bankrupt -
from Company to Customer. Customer shall pay the rates in cy, receivership, reorganization dissolution, or similar law, or
full within 30 days of receipt of each invoice from Company. makes an assignment for the benefit of'its creditors or'if 'Gom-
Customer shall pay a late fee on all past due amounts ac- pany deems itself insecure as to payment ( "Default'). Notice of
termination shall be in writing and deemed given when deli -
0 Waste Management, Inc. (rev. 3/2009) Page 2 INDUSTRIAL WASTE & DISPOSAL AGREEMENT
AGENDA ITEM # 8C
NOVEMBER 14, 2011
vered in person or by certified mail, postage prepaid, return re- 14. MISCELLANEOUS. (a) The prevailing party will be entitled
ceipt requested. In the event Customer terminates this Agree- to recover reasonable fees and court costs, including attor-
ment prior to the expiration of any Initial or Renewal Term for neys' fees, in interpreting or enforcing this Agreement. In the
any reason other than as provided herein, or in the event event Customer fails to pay Company all amounts due he-
Company terminates this Agreement for Customer's Default, reunder, Company will be entitled to collect all reasonable col -
liquidated damages in addition to the Company's legal fees lection costs or expenses, including reasonable attorneys fees,
shall be paid and calculated as follows: 1) if the remaining Ini- court costs or handling fees for returned checks from Custom -
tial Term under this Agreement is six or more months, Cus- er; (b) The validity, interpretation and performance of this
tomer shall pay its most recent monthly charges multiplied by Agreement shall be construed in accordance with the laws of
six; 2) if the remaining Initial Term under this Agreement is less the State of Florida; (c) If any provision of this Agreement is
than six months, Customer shall pay its most recent monthly declared invalid or unenforceable, then such provision shall be
charges multiplied by the number of months remaining in the deemed severable from and shall not affect the remainder of
Term; 3) if the remaining Renewal Term under this Agreement this Agreement, which shall remain in full force and effect; (d)
is three or more months, Customer shall pay its most recent Customer's payment obligation for Services and the Warran-
monthly charges multiplied by three; or 4) if the remaining Re- ties and Indemnification made by each party shall survive ter -
newal Term under this Agreement is less than three months, mination of this Agreement.
Customer shall pay its most recent monthly charges multiplied Agreed & Accepted
by the number of months remaining in the Renewal Term. COMPANY — Chesser Island Road Landfill, Inc.
Customer acknowledges that the actual damage to Company
in the event of termination is difficult to fix or prove, and the
foregoing liquidated damages amount is reasonable and Signed:
commensurate with the anticipated loss to Company resulting
from such termination and is an agreed upon fee and is not CUSTOMER —City of Atlantic Beach, Florida
imposed as a penalty. Collection of liquidated damages by
Company shall be in addition to any rights or remedies availa- Signed:
ble to Company under this Agreement or at common law.
0 Waste Management, Inc. (rev. 312009) Page 3 INDUSTRIAL WASTE & DISPOSAL AGREEMENT