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HomeMy WebLinkAboutO-1992-1876 e . ORDINANCE NO. 1876 AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA PORTE AND CHAMPION RECYCLING CORPORATION, FOR RECYCLING CONCESSION: MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT: FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: section 1. The City Council hereby approves and authorizes the contract, agreement or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The city Manager is hereby authorized to execute such document and all related documents on behalf of the city of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. section 2. The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Article 6252-17, Texas Revised civil Statutes Annotated; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. . . ORDINANCE NO. 1876 Page 2 section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 14th day of December, 1992. CITY OF LA PORTE BY~~ No an . ~alone Mayor ATTEST: c!!kita~ city Secretary AP{SZ-uJdJ Knox W. Askins city Attorney e e THE STATE OF TEXAS COUNTY OF HARRIS CONTRACT RECYCLING CONCESSION CITY OF LA PORTE THIS CONCESSION CONTRACT is made and entered into by and between the City of La Porte, a Municipal Corporation of Harris County, Texas, hereinafter called the "city", and Champion Recycling Corporation, a Delaware Corporation which is qualified to do business in the state of Texas with its principal offices at Two Greenspoint Plaza, suite 800, 16825 Northchase Drive, Houston, Texas 77060, hereinafter called the "Contractor". WITNESSETH: WHEREAS, the City desires to enter into an agreement to sell recyclable materials collected through the City's Recycling Program; and WHEREAS, the Contractor has contracted with Champion International Corporation, a New York corporation, to process and sell old paper to be recycled at the deink facility under construction in Harris County, at which it will convert post consumer waste paper for use as recycled pulp; and WHEREAS, the Contractor desired to purchase old newspapers and old magazines from the City for resale to Champion. NOW, THEREFOR, in consideration of the mutual promises herein contained, the parties hereby agree as follows. ARTICLE I DEFINITIONS 1.0 Unless 'the context requires otherwise, the fOllowing terms and phrases used in this Agreement shall have the meanings set forth below. 1.1 "Collected PaDer" means Recyclable Newspapers and Recyclable Magazines that are collected through the City's Recycling Program. Page 1 of 7 e . 1.2 "Outthrows" means all papers that are so manufactured or treated or are in such a form as to be unsuitable for consumption as the grade specified. Outthrows for Recyclable Newspapers include, but are not limited to, magazines, cereal boxes, paper bags, telephone directories, corrugated containers, envelopes or other papers that normally would not be included in the newspaper. Outthrows for Recyclable Magazines include, but are not limited to, newspapers cereal boxes, paper bags, telephone directories, corrugated containers, envelopes or other papers that normally would not be included in magazines. 1.3 "Prohibited Materials" means any material that by its presence in Recycled Paper makes the Recycled Paper unusable for the grade specified. Prohibited Materials for Recyclable Newspapers and Magazines include any non-paper items including, but not limited to, metal, glass, plastics and wood. Wet papers are also a Prohibited Material. 1.4 "Recvclable Magaz ines " means a grade of recyclable papers composed of fresh, dry, clean, recently published magazines free of strings, bags, newspapers, telephone directories and paper other than magazines. 1.5 "Recvclable NewsDaDers" means a grade of recyclable papers composed of fresh, dry, clean, recently published newspapers containing no more than the normal amount of advertising inserts, and free from strings, bags, magazines, telephone directories and paper other than newspapers. 1.6 "Recyclina Proaram" means a program to collect certain kinds of recyclable materials including Recyclable Newspapers and Magazines. The Program includes the City's current drop-off center, and any subsequent program implemented by the City, including curbside collection. This Agreement shall remain binding should the City contract its Recycling Program. 1.7 "Public Scale Price" means the price Contractor pays to the public for Recyclable Newspapers and Recyclable Magazines delivered to the designated processing center. The Public Scale Price may be different at different processing centers at the same time. ARTICLE II DUTIES OF THE CITY 2.0 The City agrees to sell to the Contractor, at the prices set forth in Article IV of this Agreement, all of the Recyclable Newspapers and Recyclable Magazines ("Collected Paper") collected through its 'Recycling Program. 2.1 The City shall transport, or cause to be transported, the Collected Paper to the Contractor's Processing Center. Page 2 of 7 e e ARTICLE III DUTIES OF THE CONTRACTOR 3 . 0 The Contractor agrees to buy all Recyclable Newspaper and Recyclable Magazines, at the prices set forth in Article IV, collected through the City's Recycling Program. 3.1 The Contractor shall operate a processing center to receive Collected P~per at one or more locations wi thin Harris County. The centers shall be open from 8:00 a.m. until 6:00 p.m. Monday through Friday. a. Each center shall be equipped with a scale, a warehouse for dry storage of Collected Paper, sufficient space for sorting and quality control, baling equipment and other facilities that are used or useful in connection with the processing of Collected Paper. b. Contractor shall provide all labor necessary to operate the processing centers. c. Contractor shall be responsible for all safety at each of the processing centers and shall ensure that the activities conducted at the processing centers are in compliance with all applicable federal, state and local laws, regulations, ordinances and codes. 3.2 The Contractor shall store, transport, sell and/or dispose of the collected paper delivered by the City pursuant to this Agreement in accordance with all applicable federal, state and local laws and regulations. ARTICLE IV PAYMENT 4.0 Contractor shall weigh the truck loads received and issue a weight receipt to the driver of the delivery vehicle. The weight receipt shall show the gross weight of the load, the current Outthrow Factor, and the net weight of Collected Paper. 4.1 Every quarter, or more frequently, Contractor shall sample the truckloads of paper received and measure the Outthrows present in the Collected Paper. Based upon this sample, Contractor shall calculate an Outthrow Factor which represents the percentage of each delivery, by weight, that is composed of Outthrows. The City shall be notified and given the opportunity to have a representative present to observe the process of sampling and calculation of the Outthrow Factor. This Factor shall then be applied to the gross weight of all loads recei ved during the quarter to arrive at a net weight of Collected Paper. Page 3 of 7 . e 4.2 The City shall remove or cause to be removed and properly disposed of, at no expense to the Contractor, the Outthrows and Prohibited Materials that are removed from the truckloads of material received at the processing center. The volume of such Outthrows and Prohibited Materials shall not exceed the difference between the gross weight and the net weight as determined by the Outthrow Factor plus the amount of Prohibited Materials. The frequency of such removal shall be sufficient to minimize the quantity of Outthrows and Prohibited Materials at the processing center. 4.3 Prohibited materials received at the processing center may be disposed of at Contractor's discretion. The weight of prohibited materials shall be deducted from the net weight before calculating the payment~ 4.4 within ten (10) days after the end of each month, the Contractor shall submit a report to the City. The report will state the gross and net weight of Recyclable Newspapers and Magazines delivered to the processing center during the proceeding month. During the term of this Agreement, the Contractor shall pay to the City Twenty Dollars ($20.00) per ton of Recyclable Newspapers and Twelve Dollars and fifty cents ($12.50) per ton of Recyclable Magazines based on net weight after application of the current out throw Factor and Prohibited Materials. Such payment shall be made within fifteen (15) days after receipt of each monthly report. 4.5 In the event that the average Public Scale Price in Harris County is higher than the price the Contractor is required to pay under this Agreement, the price payable by Contractor to the City shall be adjusted to equal the average of the Public Scale Prices in Harris County. Such adjustment shall be effective beginning ninety (90) days after the date the average Public Scale Price first exceed the price under this Agreement, and shall continue as long as the average Public Scale Price is higher than the Contract Price. ARTICLE V TERM 5.0 The term of this Agreement shall commence on January 1,.1~93 and shall continue for a period of three (3) years, expl.rl.ng December 31, 1996. The initial term of this Agreement may be extended for an additional three (3) years, upon the mutual agreement of the Contractor and the City. within six (6) months prior to the expiration of this Agreement, the parties shall meet to renegotiate the Contract Prices; provided that such prices shall not change by more than 50% from the current prices. Page 4 of 7 . e 5.1 In the event that the Contractor fails to pay the amounts required under this agreement, or in the event the Contractor fails to perform any of its other obligations contained herein, anq if the Contractor has not corrected such failure within thirty (30) days after receiving notice of such failure for the City, then the City may terminate this Agreement thirty (3) days after giving the Contractor written notice of termination. 5.2 In the event that the City fails to perform any of its obligations contained herein, and fails to correct such failure within thirty (30) days after receipt of written notice from the Contractor, then Contractor may terminate this Agreement thirty (30) days after giving the city written notice of termination. ARTICLE VI FORCE MAJEURE 6.1 In the event that the performance by either party of its obligations and undertakings hereunder shall be prevented, interrupted or delayed by acts of God, war, riot, or civil commotion, compliance with any law, regulation or order of any governmental body or instrumentality thereof, fire flood, breakdown of equipment, inability to obtain materials, transportation or energy, strikes or other labor disputes, unusually severe weather or any similar event beyond its reasonable control, then performance by such party shall be excused for such period of time, provided such party gives notice to the other party and uses its due diligence to resume performance at the earliest possible time. ARTICLE VII MISCELLANEOUS 6.0 The Contractor will indemnify and save harmless the City, its officers, agents, servants and employees from and against any and all suits, actions, legal proceedings, claims, demands, damages, costs, expenses and attorney's fees incident to any work done in the performance of this Contract, including damages, penalties or claims arising from the disposal of any waste by the contractor, or arising out of the willful or negligent act or omission of the Contractor, its officers, agents, servants and employees. However, the Contractor shall not be liable for any suits, actions, legal proceedings, claims, demands, damages, costs, expenses and attorney's fees arising out of the willful or negligent acts of the City, its officers, agents, servants and employees. Page 5 of 7 , e 6.1 All written notices shall be served by registered or certified mail to the parties, return receipt requested, as follows: CITY Director of Public Works City of La Porte P.O. Box 1115 La Porte, Texas 77572 CONTRACTOR Champion Recycling Corporation Two Greenspoint Plaza, suite 800 16825 Northchase Drive Houston, Texas 77060 In addition, a copy of any notice of default given by the City to the Contractor shall be sent to the office of the General Council, Champion International Corporation, One Champion Plaza, Stamford, Connecticut 06921. 6. 2 This Agreement shall be construed according to the laws of the state of Texas applicable to contracts made and performed in Texas. 6.3 This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, oral or written, with respect to such transactions. This Agreement may not be changed except pursuant to a written amendment signed by all parties hereto. 6.4 This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties including, without limitation, those arising from merger, consolidation, sale of assets or otherwise. 6.5 The failure of any party to insist upon strict performance of any provision of the Agreement, or to take advantage of any of its rights, or to enforce any of the conditions herein shall not operate as a continuing waiver of such provisions, rights or conditions and shall not prevent such party from insisting upon such provisions, taking advantage of such rights and enforcing such conditions in the future. 6.6 In the event that any portion of this Agreement is found invalid or unenforceable, the invalid or unenforceable portion shall not affect the validity or enforceability of any other portion of the Contract Documents. Page 6 of 7 , . IN WITNESS WHEREOF, the parties have executed this contract in multiple co~~erparts, each of which shall be deemed an original, this the I~ day of December, 1992. THE CITY OF LA PORTE CHAMPION RECYCLING CORPORATION BY: QJ~ T. l\9~ Robert T. Herrera City Manager By:4dfJ I~ Michael L. Sullivan ~ President ATTEST: ~~ ,Cher<ie Black :?t.~~" .......,:.-,.~ ~~oc~ty:S~cretary ,f~ } '>, """~:~~r'< ' , , ~ ~. / - r;' ::' ~ ':.. I :- -~~' " .....,,:"' ~ ~ . _ _""-/ .. 1 : ~.-';i :;: (SEAL) ..~ ,;V: ~ ............ ." ". ,.,,~::- ,'- , ( SEAL) ~ - "" . . ~ _~~!~_~;'~_',,~,_..i?~ \~ :~~~~~"f:~~) ........ ~,.. ./~"""~~ :.,.-v . :'-::;'1:::., -.;~_~ f~'" ..... -.;:' . - , , . ,...... ..............'"'+....:.. AP6Z::JTO Z Knox W. Askins City Attorney Page 7 of 7