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HomeMy WebLinkAboutRecycling Bin/Debt Agreement with Headwaters Recycling COMMISSION MEMO 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 cost 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 1 COOPS � Headwaters Cooperative ' Recycling -c PO Box 1570 rn Helena,MT 59624 406-443-3101 voice 'y 209-433-3101 fax www.headwatersrecycle.com �.-^�t 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 owed the cooperative simultaneous to the City of Bozeman (Bozeman)transferring ownership of recycling bins to HCRI. With this intent, it is agreed that: • HCRI releases Bozeman 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 ownership all of the metal and fiberglass recycling "binnies" (approximately 78 bins), broken bins and repair parts to HCRI. • Bozeman 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 —S43ad-Barer- CN 21 S !{t t Uk LS}<I General Manager— HCRI City of Bozeman C Al /t(a rnc��e � Date l ( ( (0 K Date HEADWATERS COOPERATIVE RECYCLING PROJECT AGREEMENT THIS AGREEMENT is made and entered into as of 1 July 2002. by and among GALLATIN COUNTY, MEAGHER COUNTY, JEFFERSON COUNTY, BUTTE-SILVER BOW CITY-COUNTY, GRANITE COUNTY, MADISON COUNTY, PARK COUNTY, BEAVERHEAD COUNTY, City of Deer Lodge, City of Bozeman, City of Lincoln, City of Manhattan,YELLOWSTONE NATIONAL PARK, and any other Counties, Cities, Towns, and Solid Waste Districts accepted by the Headwaters Cooperative Recycling Project, hereinafter called The Project. "The Entities-are those Counties, Cities, Towns, and Solid Waste Districts that Sign this Agreement. Collectively this group shall be Known as the Headwaters Cooperative Recycling Project, hereinafter Called "the Projea,_ WHEREAS, the Entities are desirous of providing for the pickup, consolidation, and sale of certain types of recyclaNe materials and adding in the future other operations which are mutually agreeable. NOW,THEREFORE, in Consideration of the mutual covenants and agreem@r1kS be twee the parties hereto, it is agreed as follows; CONTENTS 1_ The Purpose of the Interlocal Agreement 2. Goal 3. Duration 4. Administration; Board of Directors 5, Collection Containers 6_ The Headwaters Cooperative Recycling Project is a political subdivision of the State of Montana. 7. Financing & Insurance 9. Property 1 Q_ Liability 11, Termination 12- Additional Entities 13, Enforcement of Agreement 14_ Execution of Agreement ..r ,_--.,-... 1. THE PURPOSE OF THIS INTERLOCAL AGREEMENT. The initial purpose of this Interiocal Agreement is to provide the organization for the pickup, consolidation, and sate of oertain types of recyclable materials from Southwest Montana and Yellowstone National Park_ This is a statutory Intedocal Agreement under the Interlocal Cooperation Act,Title 7, Chapter 11, Part 1, MCA and fiction 75-1 Q112(19), MCA . Certified copies of this Interlocal Agreement shall be filed with the Montana Secretary of State and with the county clerk and recorders of all counties where there are Entities. 2. GOAL- The goal Of this Agreement is to reduce the arnoUnt of Solid waste requiring disposal. 3. DURATION. This agreement is for five(5)years, which may be extended by the Entities, 4- ADMINISTRATION: BOARD OF DIRECTORS. A govemmental regional recycling board of directors shall exercise the powers incidental, implied, expressed, or necessary for the accomplishment of the purpose of this Agreement, as provided by the attached Bylaws of the Headwaters Cooperative Recycling Board (Board)_ The Bylaws may be altered, amended, repealed or new Bylaws adopted only with the approval of three quarters(314)of the total Board after giving two weeks written notice of the intention to change the Bylaws. Board_ Each Entity shall appoint one director to the Headwaters Cooperative Recycling Project The Board is authorized to do all acts necessary for the exercise of the purposes of the Program, including, but not limited to the following, subject to the approval of the governing bodies of the Entities: a. coordinate, develop, implement, and manage the funding, construction, operation, and maintenance of a Regional Recycling Program, b. charge rates, tolls, or fees in connection with the operation of the Program, C. Initiate contract for goods and services (not to exceed the budgeted amount), which contracts shall be approved by the governing bodies of the entities, d. purchase, rent, or lease land, equipment, and material necessary to develop and implement an effective recycling Program, e_ employ personnel on terms determined by the Board and who would be subject to Jefferson County personnel policies for administrative purposes, including payroll and benefits, unless specifically changed by the Board_ f_ cooperate with any corporation, association, individual, or group of individuals, including any agency of the federal, state, or local government, in order to develop and implement an effective Program, g. apply for and receive funds, gifts, grants, or donations from any source for advancing the Program and acquire by gift, deed, or purchase, land necessary to implement the Program, h. construct facilities and maintain the facilities to accomplish the purposes of the Program. It is the intention of the entities of the governmental bodies of the entities to maintain control over all contracts of the Project- 5- COLLECTION CONTAINERS. Each Entity will be responsible for purchasing, leasing, or otherwise making provision for its share of the collection containers to be placed in locations selected at the discretion of the local entity, with Board approval- Grant Containers shall be the property of the Entity where they are 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 for the collection of approved recyclable materials. All containers and locations used for the Project shall be approved by the Board. Each Entity shall be financially responsible to maintain the area around the containers in a neat and clean condition, and shall maintain signs and instructions on the use of the containers. The Board employs a Manager to oversee the Project. Each Entity shall notify the Manager immediately when one or more of the collection containers is at or near a state of overflowing. Each Entity shall be responsible to ensure that the containers are kept in a serviceable condition_ In the event of damage or destruction of a container, the Entity shall make arrangements to repair or replace the damaged container within one week of being notified by the Headwaters manager that the container is not serviceable. However, damage to the containers by independent contractors will be the sole responsibility of those contractors- A damaged container must be repaired or replaced within 48 hours. 6. Headwaters Cooperative RecycliRfl Project is a political Subdivision of the State of Montana_ Headwaters Cooperative Recycling Project is a political subdivision of the State of Montana for purposes of I.R_C_, Title 15, Montana Code Annotated and the Municipal Finance Consolidation Act of 1983. T. FINANCING. While it is contemplated that the Program will strive to be self supporting, it is realized that a subsidy might be neoessary from the Entities. It is intended that the Program be funded in substantially the same proportion as the population that each Non-Federal Entity bears to the total population of all Entities, based on the most recent MAC©or Federal Census data_ However, the total cost per Entity shall not exceed $ 10 per capita per month ($120 per capita per year). Federal Entity funding shall be calculated by using the Entttys refuse tonnage divided by the average tons/household/year, which is 1.5,times$1.20tyear. Any debt may be serviced by fees levied upon the member Entities on an annual basis. For this reason, termination of one or more Entities will require that a prorated share of that debt will be paid off or assumed by the terminating party. Debt that is serviced by other income will not be subject to this requirement- 8- LIABILITY. All parties shalt comply with State and Federal laws and regulations. No ha7ardotis waste as defined by the Environmental Protection Agency (EPA) and the State of Montana Department of Environmental Quality will be accepted. Each Entity agrees to hold harmless, defend and indemnify the other Entities for acts of any of its agents. 9. INSURANCE. i —4 i I I]nc i =1 T •rvr ran �� r nr Each Entity shall provide a certificate of insurance for liability in at least the amounts of $750,000.001$1,500,000.00_ 10. PROPERTY. If this Agreement is totally terminated, all property, except containers, shall be appraised and sold at fair market value and the proceeds divided in a ratio in proportion to the money put into the program by the Entities_ Containers shall be sold at fair market value and the Entities shall be reimbursed their proportion of the purchase value of the containers in each Entity. 11. TERMIN,ATtON. Any 1*ntity may terminate its participation in this ATeerr►ent by wTittQn notification, to the other Entities, not later than April 1 st of any year, to be effective on June 30th. Such notice is to a11ow the Board to make necessary budgetary alterations_ The Board may waive this notice requirement should it be in the best interest of the Project. Entities may be voted out by a 314 vote of the Board of lairectors. The remaining Entities shall have the first option to purchase the terminated Entities' containers_ 12. ADDITIONAL ENTITIES. Additional cities, Counties, and solid waste districts may be added by a three-quarters (314) vote of the Board, under terms to be determined by the Board_ 13. ENFORCEMENT OF AGREEMENT. Venue for any court action on this Agreement shall be the Fifth Judicial District Court, Jefferson County, or the appropriate federal court. Parties shall h&.4E any remedies allowed by Montana law to enforce this Agreement. Third party suits shall be held in the County or district where the claim occurs or as otherwise provided by law. 14, EXECUTION C?E=AGIZEEMENT_ This Agreement Consisting of this page and three(3) prior pages may be executed in counterparts, each of which shall be deemed an original but all of which taken together shalt constitute one instrument uATLD a., of _._ March 11,. ?002, City of Bozeman HEADWATERS C0()pE'1? RECYCLING <�1/OY :ih<�YYt•I Rhy;:, ,h<t7r. Vf fiV.tzd even R. Kirchhoff ATTEST: Gl.er�cr CITY-OVUN'i'YF� IJIDWIIT'IRr, COOt' cyclinq i/'c' City of SozemapouN`a,y/Cl.,ry ____..__._..... _. COUNTY/CIl1 y c •d -.la.Pe cin4. UOS")Jaer r�oaaa s�a�emr�eau ercrnr en a� rnr