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16-RECOMMEND AWARD OF CONTRACTSubmittal Date: 11 /20/ 12 Council Date: ll /26/ 12 CITY COUNCIL AGENDA ITEM BRIEFING SHEET Originating Department: I Presented By: City Manager � John Godwin ECOMMENDED MOTION: Recommend Award of Contract POLICY ISSUE(S�: BACKGROUND: Agenda Item No.: 16. Sanitation Solutions has for a number of years provided landfill and demolition services to the City of Paris. We recently discussed extending their agreement, including existing rates, which in turn include demolition of 15 structures each year for free. Sanitation Solution's contract has expired, however, so we have been required to issue a formal Request for Proposals (RFP). Although we received inquiries from a few different companies, including some from out of state, Sanitation Solution was the only company that submitted a complete proposal. We have been satisfied with their service over the last several years, and therefore recommend the council approve a contract extension. In addition to the overall contract extension, we have also negotiated a new tiered rate structure, which pairs increasing discounts with increasing volumes of business. Specifically, if the city spends a total of $150,000 or less, we will pay the same rates as now. However, for all work completed over $150,000 but less than $250,000, we would receive a 5% price reduction; with an additional 10% reduction off the current price for work above $250,000 up to $350,000; and a 15% price reduction for work over $350,000. In this way, Sanitation Solutions' prices are protected should the city not complete as much work as projected for some reason, but the city will still get a significant price break when we do complete the planned demolitions in 2012-13 or beyond. Another change we are recommending is a three-year agreement versus the previous single year. In this way we have a stable, predictable price, making it easier to budget and plan. BOARD�COMMISSION RECOMMENDATION: EXHIBITS: Contract ACTION: ❑ Financial Report � Minute Order ❑ Department Report ❑ Resolution ❑ Presentation ❑ Ordinance ❑ Public Hearing ❑ Other FISCAL NOTES: BUDGET INFO: Expense $ Budgeted Amt. � YTD Actual $ Acct. Name Acct. Number City of Paris �� Revised 6/20/12 t STATE OF TEXAS COUNTY OF LAMAR KNOW ALL MEN BY THESE PRESENTS: AGREEMENT THIS AGREEMENT is entered into by and between the home-rule municipal corporation, hereinafter called CITY or Solutions, Inc., a Texas Corporation with main offices located Paris, Texas; hereinafter called CONTRACTOR. City of Paris, Texas, a Owner, and Sanitation at 1802 S. Church St., 1.01 CITY engages CONTRACTOR to perForm and CONTRACTOR agrees to perForm structural demolition services in accordance with this Agreement and the Master Specifications attached as Exhibit "A." 1.02 This Agreement shall be effective as of the date provided on the signature page and shall have a term of thirty-six (36) months. 1.03 The CONTRACTOR agrees to perForm demolition services for CITY at a rate of $29.00 per ton for the first $150,000.00 spent by the CITY during the term of this Agreement ("Initial Rate"). Once CITY has expended $150,000.00 under this Agreement, CONTRACTOR'S Initial Rate shall be automatically reduced by five percent (5%) until the CITY has expended $250,000.00 under this Agreement and then CONTRACTOR'S Initial Rate shall be reduced by a total of ten percent (10%) until CITY has expended $350,000.00 under this Agreement and then CONTRACTOR'S Initial Rate shall be automatically reduced by a total of fifteen percent (15%) throughout the remaining term of the Agreement. 1.04 CONTRACTOR shall transport all demolition materials to a TCEQ permitted and City designated landfill for disposal, where loads will be weighed prior to unloading. CONTRACTOR will be paid for loads that are properly documented by weight or trip ticket generated at the designated landfill. CITY will be responsible for paying landfill disposal fees for those loads that are authorized by City Work Order as discussed herein. 1.05 CITY agrees to provide work orders to CONTRACTOR by the fifth day of each month; however, there is no guarantee of the number of work orders to be issued by City each month. CONTRACTOR agrees that it is ready and able to complete no less than five (5) demolition work orders per month and that said work orders will be completed by the last day of the month received. Work orders should be completed in the order that City delivers the work orders to CONTRACTOR, and CONTRACTOR shall bill CITY for completed work orders in accordance with Section 1.08 hereof. 1.06 Additional time to perform monthly work orders will be allowed by the CITY only in the instance of substantial weather delays which make perFormance impractical, as determined exclusively by and approved by the CITY. Weather delays will be considered by the CITY only if requested immediately by the CONTRACTOR. Because CONTRACTOR will be completing work orders based on a monthly schedule, CONTRACTOR shall ensure that CITY is made aware of any and all weather delays that occur throughout the month in the event those weather delays result in CONTRACTOR'S failure to complete the required number of work orders by the monthly deadline. 1.07 CITY and CONTRACTOR recognize that time is of the essence in this Agreement and that CITY may suffer financial loss if the Work is not completed on schedule with the City's fiscal year and within the times specified above. The Parties also recognize the delays, expense, and difficulties involved in proving in a legal or arbitration proceeding the actual loss suffered by CITY if the Work is not completed on time. Accordingly, instead of requiring any such proof, CITY and CONTRACTOR agree that as liquidated damages for unapproved delays (but not as a penalty) CONTRACTOR shall pay CITY $100.00 per work order for each calendar day beyond the last day of each month that CONTRACTOR fails to complete a minimum of five (5) outstanding work orders. This Section does not apply to outstanding work orders beyond the minimum five (5) required in Section 1.05. 1.08 CONTRACTOR shall submit invoices to CITY on a monthly basis for all work completed during the previous month and said invoice shall be delivered to City by the fifth day of the following month. Bills should include a cover page showing the total amount due for the month, completed work orders showing the cost per structure, and landfill trip tickets for debris related to the demolition of each structure. No additional charges will be permitted unless approved in advance in writing by CITY as a change order. No extra charges will be permitted for weather delays. CONTRACTOR will be paid within thirty (30) days of receipt of invoice by CITY for work completed in conformance with this Agreement. Nothing herein shall require the CITY to expend more funds for demolition services than the amount budgeted for this service during the relevant CITY Fiscal Year. 1.09 CONTRACTOR covenants and agrees that CONTRACTOR is an independent CONTRACTOR and not an officer, agent, servant or employee of CITY; that CONTRACTOR shall have exclusive control of and exclusive right to control the details of the work performed hereunder and all persons performing same, and shall be responsible for the acts and omissions of its officers, agents, employees, CONTRACTORS, SUBCONTRACTORS and consultants; that the doctrine of respondeat superior shall not apply as befinreen CITY and CONTRACTOR, its officers, agents, employees, CONTRACTORS, SUBCONTRACTORS and consultants, and nothing herein shall be construed as creating a partnership or joint enterprise between CITY and CONTRACTOR. � 1.10 CONTRACTOR shall be responsibie for the safety of operations and shall provide appropriate safety warnings for the protection of the work area. Provision of safety includes use of appropriate barricades, traffic control, control of the use of equipment near traffic or pedestrians, and provision of other controls and warnings as needed. 1.11 CITY shall not be liable to CONTRACTOR, it's agents, servants, employees, patrons, customers, visitors, guests, or invitees, nor any pedestrian or bystander for any damage or injury caused by the acts or negligence of CONTRACTOR, its employees, officers, agents, or servants, or resulting from the operation of any device or equipment located upon the work order property, or any appurtenance thereof, nor for any damage or injury from any defect or want of repair of any structure or device on the work order property. 1.12 CONTRACTOR agrees to indemnify, save, and hold the CITY, it's elected officials, officers and employees harmless from any and all demands, debts, liabilities, suits, claims, and causes of action of any kind on account of injury or damage to any person or property, arising from or connected with the services and contractual duties provided by the CONTRACTOR under this Agreement. 1.13 CONTRACTOR is required to provide, during the term of this Agreement, and to keep and maintain in full force and effect, a policy or policies of insurance, providing at least $500,000.00 per occurrence and $1,000,000.00 aggregate indemnifying CONTRACTOR and the CITY, its elected officials, officers and employees (as additional insured) for any and all damages, personal injuries (including death), or property damages sustained in CONTRACTOR'S performance of the services required under this Agreement. The CITY, its elected officials, officers and employees shall be named as Additional Insured under CONTRACTOR'S general liability policy or shall be added as an endorsement to said policy. CONTRACTOR shall pay all insurance policy premiums when due and shall not allow the insurance coverage to lapse. CONTRACTOR shall also be obligated to maintain worker's compensation insurance as required by State law. 1.14 All insurance policies required in this Agreement shall be written by a reputable insurance company or companies licensed to write insurance policies in the State of Texas. A copy of CONTRACTOR'S general liability policy naming CITY, its elected officials, officers and employees as Additional Insured shall be delivered to the City Clerk at 150 1St Street SE, Paris, Texas 75460 upon execution of this Agreement. All such policies shall be written so that CITY will be notified of cancellation or of any restrictive amendment of the policies at least thirty (30) days prior to the effective date of such cancellation or amendment. Notice shall be made to the CITY by certified mail, return receipt requested, addressed to the City of Paris at the following address: City Clerk, City of Paris, P.O. Box 9037, Paris, Texas 75461-9037. 1.15 If at any time during this Agreement, CONTRACTOR shall fail to substantially perform under any of the terms, covenants or conditions set forth in this Agreement, CITY shall notify CONTRACTOR of the default in writing by certified mail or hand delivery addressed to CONTRACTOR at the address provided herein. CONTRACTOR shall have thirty (30) days from receipt of the notice of default to remedy the default, otherwise the City may terminate this Agreement and all rights and obligations herein shall terminate as of the date of the notice of termination. 1.16 CITY will not be responsible for faulty work or repeat work that was caused by CONTRACTOR error, omission or mechanical breakdown of equipment. The properties submitted to CONTRACTOR for demolition are typically in substandard and/or hazardous condition. CONTRACTOR shall use due caution and practice all necessary safety measures and procedures when perForming the demolition work. CONTRACTOR is solely responsible for making sure that all structures are vacant and unoccupied before commencing with demolition work. 1.17 CITY may terminate this Agreement for cause, as stated above, or at its convenience at any time during the term of this Agreement. Upon receipt of CITY'S Notice of Termination, CONTRACTOR shall immediately cease all work and shall be compensated only for that work completed through the date of termination and completed in compliance with this Agreement, the Master Specifications and any Work Orders issued by CITY. 1.18 This Agreement may not be subcontracted, in whole or in part, without express written approval from an authorized representative of the CITY delivered in advance of the services. 1.19 CONTRACTOR should not discriminate against any employee because of race, color, religion, sex, national origin, age, or disability. 1.20 The provisions of this Agreement are severable, and if any provision or part of this Agreement or the application thereof to any person or circumstance shall ever be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this Agreement shall not be affected thereby. 1.21 This Agreement embodies the entire understanding between the parties and there are no prior effective representations, warranties, or agreements, written or oral, between the parties. 1.22 This Agreement shall be governed by the laws of the State of Texas. 1.23 All services to be performed hereunder shall be and are to be rendered exclusively in Lamar County, Texas. Venue for any State Court cause of action arising out of 4 or in any way related to this Agreement shall lie exclusively in the courts of Lamar County, Texas, and venue for any Federal Court cause of action shall lie exclusively in the U.S. District Court for the Eastern District of Texas. 1.24 By executing this Agreement, CONTRACTOR hereby certifies that the only person or persons interested in this Agreement as principals are named herein, and that the CONTRACTOR during the bid or proposal process has not, either directly or indirectly, entered into any agreement, participated in any collusion, or otherwise taken any action in restraint of State purchasing laws and/or CITY Ordinances related to the award of this Agreement. Collusion in the bid or proposal process will constitute a substantial breach of the contract and justify termination of the Agreement by the CITY for cause. Executed in duplicate originals, each of which is deemed to be original and as of the day and date shown below. This Agreement is signed this as of this date. CONTRACTOR (Corporate Seal) ATTEST: Address for giving notices: day of , 2012 and shall be effective �� CITY OF PARIS, PARIS, TEXAS (Corporate Seal) ATTEST: Address for giving notices: P. O. Box 9037 Paris, TX 75461 MASTER SPECIFICATIONS DEMOLITION AND DISPOSAL OF DILAPIDATED STRUCTURES CITY OF PARIS, PARIS, TEXAS 1.0 DEFINITIONS: A. CITY shall mean the City of Paris. B. CONTRACTOR shall mean the person or firm who is awarded the demolition and contract for the CITY. C. Cleaning and removal of trash and debris shall mean the use of any mechanical or hand method by which filth, rubbish, refuse, or other matter that might be unhealthy and/or unsightly is removed from any property or lot and disposed of by approved methods as delineated in the Code of Ordinances. D. Director of Engineering, Planning and Development means the Director of Engineering, Planning and Development for the City of Paris. E. Hand work/cutting shall mean the mowing of high weeds by means other than a tractor mower and may include the use of weed eaters, brush hogs, clippers, chain saws, and other similar tools. Other hand work may include the removal of fencing, refuse, trash, junk, and other debris. F. Work Order shall mean a notice in writing from the CITY instructing the CONTRACTOR to perform specific work at a particular location (a copy is attached hereto). G. Demolition shall mean the safe, timely, and complete removal of a specified structure with the debris removed to a City and TCEQ approved landfill. H. Utilities shall include services provided to the structure including gas, water, sewer and electricity. Other services may be involved in a particular contract. L Mature tree shall mean a tree having a trunk circumference of at least ten (10) inches but less than sixty (60) inches measured four and one-half (4 1/2) feet above natural grade level. J. Protected tree shall mean any tree having a circumference of sixty (60) or more, measured four and one-half (4 1/2) feet above natural grade level. 0 �� ,r EXHIBIT � 1.01 GENERAL A. Each Work Order shall provide for one-time specific demolition required by CITY for property management and enforcement on a specified property. Exact demolition specifics shall be provided in each Work Order. B. CONTRACTOR shall be responsible for the safety of personnel and operations. CONTRACTOR shall provide appropriate safety warnings for the protection of the work area. Provision of safety includes use of appropriate barricades, traffic control, control of the use of equipment near traffic or pedestrians, and provision of other controls and warnings as needed or as specified by the Work Order. C. Because time is of the essence in the filing of liens after demolition, Work Orders should be returned to CITY immediately upon completion of demolition. Work Orders will not be considered CONTRACTOR'S bills they are used solely for the purpose of advising CONTRACTOR of the nature of work necessary at each location and for assisting CITY in filing liens. 1.02 DEMOLITION A. Demolition shall include the removal of onlv those exact items specifically set out in the Work Order. B. Overall safety and adverse impact to the neighborhood shall be considered a priority. CONTRACTOR shall provide demolition within hours which are reasonable to the conditions of the neighborhood, be cognizant and make provisions to control excessive dust, and secure the area for the overall safety of operations as is defined within these Specifications. CONTRACTOR shall not leave the work site when portions of a structure or other items are in a dangerous condition. Such conditions may require posting a guard or continuing the demolition until the condition is relieved. C. Demolition shall follow good construction practices. It is the intent of CITY to remove the standing hazard as quickly as possible, and CONTRACTOR should attempt to satisfy this. This may involve the processes of pushing, breaking, or otherwise reducing standing components into a pile or piles of debris. Any form and method of demolition will be accepted as long as it conforms to good practice, the method is safe, CONTRACTOR has a history of successful applications, and the method is relative to a particular job provided by the Specifications. CITY reserves the right to forbid a specific method when CONTRACTOR is inexperienced, is wishing to try experimental techniques or practices, or is proposing a technique which is dangerous to the surrounding neighborhood. D. Equipment and tools left on the property are the responsibility of CONTRACTOR. CITY shall not be responsible for theft, damage, or adverse use of the equipment. r� E. Mature and protected trees found on a property shall be protected. CONTRACTOR shall work around the tree carefully to prevent damage to the tree and its root system. Sapling trees and sprouts may be removed only if they are found in a path needed for access to the structure. 1.03 TRASH AND RUBBISH REMOVAL BY CONTRACTOR A. Additional waste material shall be removed from the property and disposed of by CONTRACTOR only if specified in a Work Order. CONTRACTOR shall not deviate from the Specifications, shall not utilize waste removal processes that are contrary to good practices or State law, and shall not utilize removal of waste to an unapproved site location. Proof of nroner disposal of all waste materials, including demolition debris, must be submitted upon completion bv qroviding the CITY with aqproved landfill tickets at the time of monthly billing. B. CITY reserves the right to recycle prior to or during actual demolition. This may include removing useable structural elements, removing or separating furnishings, shingles, and other waste components. This will be done by CITY at its expense prior to issuance of a Work Order. C. CITY reserves the right to approve any method for controlling and removing the waste. This may involve using on-site containers, grinding the material to reduce the waste, or providing that CONTRACTOR transport the waste to a City and TCEQ approved landfill. Bidders should specify intent and include the cost of such disposal method in its Bid. D. Junk, trash, and rubbish type material shall be removed from property only when specifically provided by the Work Order. All such material shall be disposed of properly at a sanitary landfill or as otherwise specified. E. Minar litter shall be cleaned and removed as a part of the total bid on any project. This type of work shall include the removal of any debris by any means and shall be removed as is necessary utilizing hand work or the use of machinery. Special attention shall be made to remove small articles, stone, metal, wire, and other similar objects which could become a hazard if thrown by a shredder or mower. F. Properties which have rubbish or waste which requires special handling may have specific instructions for the removal and/or disposal of the material provided in the Work Order. G. CONTRACTOR shall use equipment that is suitable for the work to be performed and the time constraints of the bid. 1.04 LEVELING, FILLING, AND GENERAL BLADE WORK � A. Work Orders will, at times, require that lots be leveled, abandoned wells filled, holes filled, or humps brought to normal grade. Blade work may be necessary to improve drainage, remove humps, fill holes, or other needs. This type of work may require the use of heavy equipment, standard box blades, angled blades, or tiller type attachments. Fill dirt required may be provided by CITY if necessary. Blade work shall be carefully performed to a level approved by CITY. This includes leveling of the area designated and removing ruts, holes, low spots, roots, debris, large clumps of soil, rocks, and any other material that interferes with the maintenance of the property. 2. Wells shall be filled with clean sand or gravel type material. No exceptions. CONTRACTOR must advise CITY prior to filling a well if additional expenses will be incurred. 1.05 FENCES A. Removal of residential fences may only be provided when specified by the CITY. B. Removal of residential fences shall include the removal of all posts, concrete, sheet metal, wire, brush, junk, etc. and may include work by hand or equipment when allowable. When a fence is removed, the material removed is rubbish and shall be disposed of by CONTRACTOR; however, brick ar concrete may be buried on site. 1.06 DISPOSAL AND RECYCLING A. Bricks and concrete may be buried on site at CONTRACTORS option; however, all other waste shall be deposited in a TCEQ approved landfill with receipts provided to the City of Paris. B. CONTRACTOR shall furnish written proof to the CITY of the proper and legal disposal at a City and TCEQ approved landfill of all materials generated from performance of the Agreement. Final payment will not be released to CONTRACTOR until proof of proper disposal of all items has been furnished to CITY and CITY has confirmed that all items listed on the Work Order have been satisfactorily completed. 1.07 UTILITIES Unless otherwise specified, utility disconnects shall be the responsibility of CITY. 0 WORK ORDER Address Lot Block Subdivision INSTRUCTIONS FOR THIS PROPERTY: Nature of Work Description Demolish residential structures Demolish commercial structures Blade or tiller work as specified Remove fences as specified Clean extraordinary debris, trash, and rubbish Small tree/sapling removal Special Instructions (see below) SPECIAL INSTRUCTIONS FOR THIS PROPERTY: COMPLETE AND RETURN TO CITY WITH THE MONTHLY BILL Total cost for this property: Attach copv of landfill trip tickets. � CONTRACTOR/Agent NOTE: This form is required by the City in able to file liens as part of an enforcement action. It will not be considered CONTRACTORs bill. CONTRACTOR shou/d include a copy of this work order in its monthly billing. 10