HomeMy WebLinkAbout08- Recycling Bin/Debt Agreement between City of Bozeman and Headwaters Cooperative Recycling, Inc.I~ i~a-~~,,~e~u.~,~7~ Qeb~iv. dJrI~P.~ 9-aa-08
Memo
To: Mayor Jacobson and City Commissioners
From» Debbie Arkell, Director of Public Services
Chris Kukulski, City Manager
CC: Steve Johnson, Solid Waste Superintendent
Date: April 21, 2008
Re: Recycling Bin/Debt Agreement between the City of Bozeman and Headwaters Recycling, Inc.
RECOMMENDATIONS: Authorize City Manager Kukulski to sign the Recycling Bin/Debt
Agreement between the City of Bozeman and Headwaters Recycling, Inc.
BACKGROUND: The City of Bozeman entered into a 5-year Agreement with Headwaters
Recycling, Inc. in March 2002 to provide for the organized pickup, consolidation, and sale of recyclable
materials. The Agreement was extended for 5 more years in 2007. The City and Gallatin County gave
notice to Headwaters in July 2007 that they would be terminating the Agreement in 2008 as the County
Solid Waste Management District would be starting a recycling program.
Section 7 of the Agreement requires terminating members to pay their share of any debt upon
termination from the Agreement. The City owns approximately 78 "binnies" as well as some broken
bins and repair parts. These bins cast approximately $1,100 new. Our bins are serviceable, but they
are not new and have minimum re-use or salvage value other than to Headwaters as they are
designed to be emptied by a special system.
Headwaters has advised us that our pro-rated share of debt is $13,457. They are proposing to
exchange this debt for our Binnies and parts. Because we have no use for this equipment, we believe
this is a fair exchange.
FISCAL EFFECTS: None. The City's debt to Headwaters Recycling, Inc. will be exchanged for
this equipment.
ALTERNATIVES: As suggested by the City Commission.
Report Prepared On: April 16, 2008
Attachments: Recycling Bin/Debt Agreement
2002 Headwaters Cooperative Recycling Project Agreement
Headwaters
Cooperative
Recycling
PO Box 1570
Helena, MT 59624
40b-443-3101 voile
209-433-3107 fax
www.headwatersrecycle.com
~4~
~ti
~aor~~~T
.~~
~~
~.
~~
. A ... ,
C,...r: ~ ~ ~ ~ ,r~V
,r
q
fS
Recycling Bin/Debt Agreement between City of Bozeman and
Headwaters Cooperative Recycling, Inc.
The intent of this document to provide an agreement for Headwaters Cooperative
Recycling (HCRI) to relieve the City of Bozeman, MT of debt awed the cooperative
simultaneous to the City of Bateman (Bozeman) transferring awnership of recycling bins to
HCRI.
With this intent, it is agreed that:
HCRI releases Bozernan of its debt obligation to HCRI of $13,457, (debt due upon
leaving the cooperative as per Interlocal Agreement signed March, 11, 2002.)
• Bozeman agrees to transfer awnership all of the metal and fiberglass recycling
"binnies" (approximately 78 bins), broken bins and repair parts to HCRI.
• Bateman agrees to store the bins at the City of Bozeman landfill for 90 days. HCRI
agrees to remove them from the landfill within the same 90 day period.
Signed
Bill Crane
General Manager -HCRI
Date ~ ~~~
C~ ~
cN 2- s ~-_ Ku Ku~~sk4-~
City of Bozeman [ r~+~ /~(a n~~e ~
Date ~ ` ~ ~~°~~ ~.
I~F.ADTi~ATERS t"OOPERATIVE RBCYCLTNG PROJECT A~R8E1~1T
TH1S AGREEMENT ig made and .entered into as of '1 July 2QQ2, by and among GALLATIN
COUNTY, MEAGHER COUNTY, JEFFER$QN COUNTY, gtJTTE-SIL1/l~R BpW CITY-GpUNTY,
GRANITE ~JUNTY, MADISON COUNTY, PARK COUNTY, BEAVER!-1EAp Cc~tJN'f'Y, Gity ~ per
Lodge, Gilt' Of Bozeman. City pf Lincoln, City of IU~rth~t#art, YEElQWSTdN>; NATIONAL PARK, and
arty other Counties. Cities. Towns, and Solid Waste DistriCt~ aGC4pted bll the t~tE'adwater5
Cooperative Recycling Project, hereinafter called 71~ Project.
'The Ertti#les" are those Counties. Cities, Towns, and Solid was#e Dis#ricts that sign tfli$
Agreement. Ca11LGtively this group small the Known 2is the Headwaters Cooperative Recycling
Proje~. hereinafter Called "khC Project,.
WHEREAS, the Entities are desirotas of providing fpr the pickup, cartsatidation, and sate of
pertain tyP~ of r+EGy+Clable materials and adCling in tl re future other operations wnicn are mutually
agreeable.
NQW, T~1-iEREFQRE, in Cp~'1Sideration o'f the mutu~ ~vertatrts and agroerrtents betw~:n the
parties hergta, it is agreed ag follows:
CONTENTS
7 _ The Purpose df the lnteriOCBt Agreement
2. Gval
3. Duration
4. A~dministratipn. Board of Directors
5. Collection Containers
6_ TIC He~dwates tooperative Recycling Project
of the State of Montana.
7_ Financing
$, Insurance
9. Property
1p_ Liability
19 , Termination
92_ Addition8l Entities
13. Enforcement of Agmet»ertt
1~4_ Execution of Agreement
is a political subdnrisiorl
-a
1, THE PUR E PHIS IkTE t~CAL AG EMEIVT, The initial purpose of this
Intertocai Agreerner+t is to provide the organi¢ation far the pickup, consaridation, and sore of certain
typd5 Of recyrlaple materials from SGutnwe5t Montana and Yellowstone Natipnal Park_ Thig is a
stadatgry tnteilocal Agr~eemerrt under the ln~erlncal Cooperation ~. Trde 7, Chapter 11, Part 1, MCA
and Section X5-10-912(79), MC~- . Certified capie~s of this Intertocal Agreerr~nt shall tie filed with
the Montana Secretary of State arni with the eourYty rterk and recorgers of aN counties where there
are Entities.
2. GfIA_L. The opal of this Ac~r~ment is to reduce file amount Of solid waste requir~irxJ
disposal.
3. DURATION. This agraemerrt is for five (b) y8ar'S, which may be extended by the Entities.
~t- ADIIAIMI$TRATION: BOARD, OF DIRECTORS.
A governmental regional recycling board of dir+eators shalt e3cercise the pe4vers incidental,
implied, expressed, or r-ecessary for the accamplishmerlt of the purpose of this Agreement, as
provided by the attached Bylaws of the Headwaters Cooperative Re~nclirtg Board (Board)_ The
Bylaws may be altered, amended, repealed or new Bylaws adapted 4rrty with the approval of three
quarters (314j of the total Btaard after giving two weeks written native of the intention to change thre
Bylaws.
Each Entity shall appoint one director to the Headwaters Cooperative Recycling Project
6aard_
The Board is authorized to do all acts necessary far the exercise of the purposes of the
Program, irx;luding, but not !im""~ to the following, subject to the appr~avat of the governing bodies
of the Entities;
a. Caardirtate, develop, implement, and manage the funding, constrt,rctic~rr, operation, and
maintenance of a regional t~+ecydirrg Program,
b. charge rates, tolls, or fees in connection with the operation of the Program,
c. lnipate atyrrtract for goods and services (rx~t to exceed the b~igeted amount), which
tArrtracts shall be approved by the governing bodies of the entities.
d. purchase, rent, or lease land, equipment', and material nesary to develop and
imptemerlt an effective re~rclirx~ Program,
$- employ personnel an terms determined by the Board and who would be subject to
Jefferson County personnel policies far administrative purposes. including payroll acrd benefits.
unless spcally char~jed by the Board.
f_ cooperate with arty Corporation, as54Ciatipn, individual, or group of individuals, including
any agency of the federal, state, ar local gnvemmerrt, in vrader to develop aid implement an effective
Program,
g. apptt- for and receive funds, gifts. gram. or donations from any source for ad+-ancirtig the
Program and acquire by gift. deed, or purttha, land ~ry to implement the Program,
R `d a. i inn-y~nr.L ...-.~.....-... ..-..-... ~ . ~...-.~~._. ~-- --- -
h. cortStruCt facilities and main#ain the facilities to aCCCmplish the purposes Of the Program.
tt is the lntentign of the entities of the s~vvernmental bodies of the errtities tp maintain control
aver all rarmacts of the Project_
5. COLLECTION AINERS_ Each Entity will be responsible far purchasing, leasing,
ar otherwise maKing provision for its share ai the colieCtian containers to be ptaoesi in locations
selected at #'~ discretion of the local entity, with Board approvat_ Grant Coniainers shall be the
property of the Entity where they arse placed. It is contemplated that the initial containers may be
purchased with Grant funds, which may require local Entity matching funds. The containers shall
be used #Or the CalleGtiOrt of approved recye~-ble materials. All corrtainerS and locations used for
Ilya Project shall be approved by tyre Board.
Each Entity shall be financially responsible to maintain the area arour~ the containers in a
treat and dean caridition, and shall maintain sigr>ws and instnactians ~ the use of the containers.
The Board employs a Mar~r~r ro Oversee the Proj~. Each r=ntity shall notify the Manager
immediately when one or more of the calleCtion containers is at or near a state at overflowing.
Each Entity shall be responsible to ensure that the containers are kept in a serviceable
Condition. !n the event of damage pr dpstrudion of a cprltairrer, the Entity shah make arrangements
to repair or replat.e the damaged container within nne wee~K of being notified by the Headwaters
manager that the container iS not serviceable. However, damage tv the containers by inde~nderrt
contrtdctors will be the sole respOnSipility of those contractors. A damaged ~carrtainer must be
repaired ar replaced within A8 hours.
6. lieadw~ers Cooperative I~clrcli~ Phta~eet is a political 5ubdivi ,ipr: a~ ttNe Stage of
Montana. Headwaters COOpera#ive Recycling Project i5 a political subdivision of the State of
Morrtana far of I,R_C_, Tike 15, Montana Code Annotated and the Municipal 1=inanre
Gan5olidation Act of 19$x.
7. FINANCING. While it is cariternplated that the Rrogram will strive to be self Supporting,
i# is realized that a subsidy might >~ necessary from the Entities.
It is irrtendecf that the Program be funded in substarrtjally ~ same proportion as the
population that each Norr-Fra1 Entity t~ars~ to the t+ot$1 population of aN Errtities. based on the
mast recent MAivO or Federal Census data_ However, the fatal agst per Entity shall not exceed $
.10 per capita per mOrrth ($1.2Q per capita per year).
1=ederal Entity funding Shall tie caltxiarted by using tha Er~titys refuse tonnage divided by the
average tons/hor,,serioldlyear, which is 1.5, times Si_2otyear.
Any dot may be serviced ~ f levied upon the member Entities on an annual basis. Far
the reason, termination of one or more Empties wrll r~uire that a prorated shave of mat debt will be
paid off or assumed by the terminating party- Debt that is serviced by a#her income will not be
subject to this regoir+errrent_
IL LIA6ILITY. All parties shall aompy witty State and Federal laws and regulations. No
hazarr~us waste as defined by the Envinarrmental Protection Agency (ERA} and the 5'~ate of
Montana Department of Environmental Quality will be accepted.
Each Entiiy agrees to hall harmless, defend and indemnify the other Entities far acts of any
of i~ agents_
9. iNSURAN~CE.
a.. -.~1 ii ivr~~~an~.. .,nc vnpf+ 7C. !'SAL c.~an VmnQau ovn ~nr ran ~~ rr.r
Earn Entity shall provide a Cer#ificate of insurance for liability in at least the amounts of
~~SQ,.001$1,~DO,OQ~_CMI.
7 ~. PRQPERTY. tf this Agreement is totally terminated, a!1 property, eatcept Containers,
stroll ~ appraised end said at fair market vark~ and the proceeds d"rvided in a ratio in proportion to
the money put into #ha program by ate Entices.
Can#ainers Shall be sold at fanr rrtarke# value and the Entities shall be reimbursed their
prepartiiort of the purchase value of the containers in each Entity.
'17. TERIIRINATIpN, Any y may terminate its psrtisip~ipn in this Agreement by written
notification, to the other Entities, not later than April i st pf ar,y year, to be effeckiva on dungy 3Uth.
Such notice is to a11aw the Board to make necessary budgetary alterations_ The Board may waive
this r~o#iC.e requirement shnutd it be in the best interest of the Prgject,
Entities may be voted~orrt by a 31~ vote of the Board pf pir@Ctprs_
The rerrtaining Entities shall have the first eption to purchase the terminated Entities'
C4rtt~iner's_
1 ~. 14D.~iY'101±llr1L ENTITIES. A-dditignsl CitieB, Counties, and solid Waste diSLriCts may be
added by a thr~-quarters (3/4) vote of th$ Ord, unclear terms to be determined by the Bcaard.
~3. EI+IEDRCEMEN7 t?F AG ENT. Vencro for any court action on this P,grnt SYrall
bB the Fifth Judipal District Court, Jefferson Courrty. or the appropriate federal courk. Parties shell
have arty 'remedies allpwed by Montana law to enforce #his Agreement.
Thitd party suits shall be held in the oour-ty or district where the claim oceurs or aS otherwise
prr~vided by taw.
14. EXEGUTIbN C]E AGR~EMEMT. This Agreement oonsiStirxJ of this page and three (3)
prior paiges may be executed in counterparts, each of which shall be deemed an original but aN of
which taloen together shalt Constitute one instrument.
1~.l~7.'1:U .~ ni _.._.Mdt"Ch Z~,.2~~~• ;tQEt~.
City of 13vzc~in:~f-
f~f
AT ' ;T:
~ ~-+ ~~
.G].~r1~____._~ ciTf~ac~uivrir-~._
City of Bozema~ouNa•Y/C~.~rv
-d
TITl1DW11T~liS C001'k~ RF:CYC:LIATC;
:;h~~rrt•I Tthy:~, .h:a]T []I. rip.~zc~
~lTT1a:; m
IJI~ DWA1'~;1t:; COD1' cyclxnq
/~
C.CIUN'f Y / C 1'l' Y
+.] +.r~~~vn~, ur~s~aer x ~oa~i s.~a~emoeau e x C : n 7 cn a~ rnr