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1994R08- CREATION OF A RECYCLING PROGRAM RESOLUTION NO.~~-J?-5r A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF TEXAS AUTHORIZING THE CREATION OF A PROGRAM AND EXTENDING THE FRANCHISE WASTE INC BY FOUR YEARS SCHERTZ, RECYCLING OF ALAMO WHEREAS, the citizens Non-Binding referendum elected the City of Schertz; and of the City of Schertz to have a recycling program by in WHEREAS, an extension of the franchise agreement with Alamo Waste Inc., was determined to be necessary for financing purposes; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: THAT, a recycling program will commence in the City of Schertz,-Texas on 1 January, 1995; and THAT, each resident within the City limits of the City of Schertz will be billed not more than $1.25 each month for this service; and THAT, the recycling 1996, at which time an determine future actions on program will expire on 31 December, evaluation will be performed to recycling programs; and, THAT, the current franchise with Alamo Waste Inc., is extended until 31 December, 2000; and the City Manager is directed to prepare appropriate documents to codify the extension and rate information; and, THAT, the City Manager is authorized to enter into an agreement with Alamo Waste Inc., following guidelines as shown in Exhibit 1 to this resolution and to make those changes as needed for effective implementation. PASSED, APPROVED AND ADOPTED this the 1994. day of Odobpr( , Mayor, City of Schertz, Texas ATTEST ( - Exhibit 1 Recycling Agreement and Extension of Franchise 1. This agreement is made and entered into by and between the City of Schertz, hereinafter called the "City", and Alamo Waste Incorporated, hereinafter called the "Company" for the provision of a curbside recycling service within the City limits of the City of Schertz. A second part of this agreement relates to the extension of the "Original Franchise" previously awarded to the Company. 2. Terms recyclable party. Defined: materials Recycling means the collection of (defined below) for resale to a third 2.1. Recyclable Materials: Recyclable Materials means; newspapers (including "slicks"), aluminum and steel cans, plastics (HDPE and PET), glass (all colors). Changes to this list of materials may be made by mutual consent of both parties based on technology and market conditions and after appropriate publicity to citizens. 2.2. Original Franchise. The Original Franchise is defined as Ordinance 90-F-34, approved 18 December, 1990, as amended by Ordinance 93-F-7, approved 16 February, 1993. 3. Whereas referendum, agreeing to this price agreement. the citizens of the City have, by non-binding elected to have a curbside recycling program, pay not more than $1.25 per residence, per month: will not be adjusted for the duration of this Now therefore, both parties agree to the following terms and conditions. Recycling Agreement 4. The Company agrees to provide a curbside collection program to every residential customer in such collections to be made twice each month residences. recycling the City, from each 4.1. The Company agrees that material collected under this recycling program will under no circumstances be disposed of in a landfill, except those materials found to be contaiminated or for which market conditions do not justify recycling the material. The Company shall not be responsible for recyclable material after delivery to a/the recycling facility/reseller. -1- - 4.2. The Company agrees to provide a suitable company owned container for the collection of recyclable material to all residents of the City (at no cost to the customer or the City); 4.3. The Company agrees to present to the City all proceeds from the sale of recyclable material in the City. In addition, the Company agrees to provide detailed records and receipts for all recyclable material sold to include: Specific tonnage/poundage for each type of material, price received per ton/pound for each type of material, who purchased the material, and any other information requested by the City in order for the City to monitor and audit amounts payable to the City under this paragraph. Such payments to be made on the first business day of each month. Such records shall be available on an as needed basis. 4.4. The Company agrees to begin this recycling program on 1 January, 1995. 4.5. The Company agrees to provide suitable containers for recyclable materials at all city charge to the City. company owned offices at no 4.6. The Company agrees to produce publicity documents (with prior City approval) about the recycling program in the form of flyers, pamphlets, leaflets, or other similar notices, at no cost to the customer or the City. Such publicity documents to be provided in advance of the beginning of this program, each 6 months as a reminder to all citizens, to new residents as they move in, and thereafter from time to time when changes or adjustments to the program are made. Publicity documentation will include; the materials to be collected, collection times, specific instructions, changes to the program, and other information to encourage maximum participation in the program. This information may be distributed by "flyer" insert in the city newsletter, newcomer packets, be attached to the recycling container, or any other media agreed upon by the parties. 4.7. The City agrees to charge and bill each residential customer not more than $1.25 per month, per residence. The City will pay the Company 97% of the amount billed each month. Payments for this recycling program will be made in the same fashion as is done under the Original Franchise Agreement, and may be combined into a single payment. 4.8. The recycling portion of this agreement will expire on December 31, 1996, or sooner. Upon expiration, the program will be evaluated on its merits and a determination will be made at that time to continue, revise, or cancel the program. -2- - 4.9. The company agrees to operate a recycling "drop-off" center for the convenience of Schertz citizens. Franchise Extension 5. The City agrees to extend the Original Franchise an additional four years under conditions cited below. The extended franchise agreement will expire on December 31, 2000. 5.1. The company agrees to place a cap on trash collection rates as described in the Original Franchise awarded to the Company not to exceed 6.5% for each of the calendar years 1995 and 1996. Requested rate increases will include, within such limit, both cost of living increases and landfill "tipping" fee changes, and~dTl provide complete Justification .for each. The rate cap is integral to the operation of the recycling program. 5.2. The company agrees to place a cap on trash collection rates as described in the Original Franchise awarded to the company not to exceed 8.25% for each of the calendar years 1997, 1998, 1999, and 2000. Requested rate increases, within such limit, for trash collection will include both cost of living increases and landfill "tipping" fee changes, and will provide complete justification for each. 6. This agreement is an addition to the Original Franchise Agreement between the City and the Company, and in no way alters the obligations of either party under the Original Franchise Agreement. 7. This agreement, as it terminated by minute order of cause, effective upon sixty Company. relates to recycling, the City Council, with or (60) days written notice may be without to the 7. 1. This agreement, as it relates to the Original Franchise and the franchise extension granted herein, may be terminated by minute order of the City Council upon a determination by the City Council that the service provided by Company under the remaining term of the Original Franchise or the extended term thereof, as the case may be, is unsatisfactory. The Company shall receive written notice from the City providing reasonable details concerning such determination of unsatisfactory service and shall be provided an opportunity to address the City Council before any final termination action is taken by the City. The City shall provide at least sixty (60) days written notice to the Company of the proposed termination of the Original Franchise or the extended term thereof, as the case may be. -3- - 8. This agreement does not preclude the complete re-negotiation of the Original Franchise agreement between the Company and the City prior to its normal or extended expiration date. 9. This agreement, including both the recycling provisions and extension of the Original Franchise, may be terminated by the City at any time during the term hereof in the event of the sale or other disposition of ownership of the stock or assets of the Company. This provlslon shall not prohibit the Company from granting a security interest in its land, building, and/or equipmentcr the normal disposition of Company property from time to time in the normal course of business. Termination of this agreement by the City under the terms of this paragraph is not mandatory, but is subject to the sole discretion of the City Council. 10. This agreement is originals each having c?2/S'Tday of (!)(!7d&e-e entered into full force , 1994 by: by the parties in multiple and effect on this the City of :\~ert~ , { ~~-- ~~~ Sweatt City Manager Alamo Waste Incorporated ~ utierrez Vie resident/ General Manager -4-