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HomeMy WebLinkAbout5.a. Compost Facility Joint Power AgreementCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: AUGUST 18, 1992 AGENDA ITEM: COMPOST FACILITY OPERATION AGENDA SECTION: AGREEMENT OLD BUSINESS PREPARED BY: STEPHAN JILK, CITY ADMINISTRATOR AGENDA 1T.ER A IVI #,F, ATTACHMENTS: DRAFT AGREEMENT, APPRtVED PY: MEMO & LETTER FROM JUNE 10, 1992 tel/ On June 16th, 1992 a proposal was presented to you re rding a proposed joint city operation to operate a Yard Waste Composting Facility in Lakeville. This facility would be actually operated by a private operator on land owned by the City of Apple Valley and lying in the City of Lakeville. This facility is currently being operated by the same operator under an agreement with Dakota County. Dakota County will be cancelling their contract with the operator in February of 1993. This site has been very successful in providing a location for the disposal of yard waste for residents of Lakeville, Apple Valley, Rosemount and Farmington. In order that the site continues to be available to these Communities and their residents the Administrators of these four cities have developed a proposed agreement with the current operator to continue composting at the site. The proposed agreement provides this service to the residents of Rosemount at no additional cost other than the normal tipping fees already collected. The contract provides for the City of Apple Valley to lease the site to the operator at a cost of $900 per year. The operator is responsible in the upkeep of the site, composting activities, all insurance coverage costs and all collection of tipping fees. There will be no subsidy provided by any of the cities involved. In addition, the cities will each be able to drop off a certain amount of yard waste at the site without paying tipping fees. Rosemount will be able to drop 320 cubic yards. This is a fairly large amount for us and seems adequate for the City's purpose. I have copied the final draft of the contract to you along with a memo and letter which accompanied the item in June for your reference. By Tuesday evening the other three cities will have considered this matter And I will be able to report to you on their actions. RECOMMENDED ACTION: Motion to approve the contract between the cities of Lakeville, Apple Valley, Rosemount and Farmington and R. D. Pecar & Company, Inc. For the operation and maintenance of yardwaste facility. COUNCIL ACTION: CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A. Attorneys at Lim - RECEIVED Thoimis J. Cimipbcll Ro,er N. Knur:on Thomas M. Scat Gan G. Fuchs James R. willston Elliott B. Knetsch Michael A. Bmhack Renae D. Steiner Mr. John Hennen Lakeville City Hall 20195 Holyoke Avenue West P.O. Box 957 Lakeville, MN 55044 August 6, 1992 James F. Sheldon, Esq. Attorney at Law 600 Midway Nat'l. Bank Bldg. 7300 West 147th Street Apple Valley, MN 55124 AUG 7 1992 CITY U1 HUbr-100UNT (612).}52.5000 Fax (612) 452-5550 Mr. Jeffrey Weldon Assistant Administrator Apple Valley City Hall 14200 Cedar Avenue Apple Valley, MN 55124 Mr. Stephan Jilk Rosemount City Hall 2875 - 147th Street West Rosemount, MN 55068 Mr. Larry Thompson Mr. Richard D. Pecar City of Farmington #4 Benhill Road 325 Oak Street Saint Paul, MN 55105 Farmington, MN 55024 RE: Yardwaste Maintenance Contract Dear Gentlemen: Enclosed for your review please find revised contract between Lakeville, Apple Valley, Rosemount, Farmington, and R.D. Pecar & Company, Inc. for operation and maintenance of a yardwaste facility. Insubstantial changes have been made in paragraphs 2.1, 3.18, 8.2, 15.1, and 19.2 at the request of Mr. Pecar. This is scheduled to be on the Lakeville City Council agenda on August 17, 1992, and the Apple Valley City Council agenda on August 13, 1992. If you have any concerns or questions, please call me. Ver truly yours, CAMPBELL, SON, SCOTT FUCHS, A. S RNK:srn Enclosure Roger N. Knu Suite 31-1 • Ea,andale Office Center • 1380 Corporate Center Curve • Eagan, MN 55121 CONTRACT BETWEEN THE CITIES OF LAKEVILLE, APPLE VALLEY, ROSEMOUNT AND FARMINGTON AND R. D. PECAR & COMPANY, INC. FOR OPERATION AND MAINTENANCE OF YARDWASTE FACILITY This Contract is made and entered into between the Cities of Lakeville, Apple Valley, Rosemount and Farmington, hereinafter "Client" and R. D. Pecar & Company, Inc., P.O. Box 40130, St. Paul, Minnesota 55104, hereinafter "Vendor". WHEREAS, the State of Minnesota, through enactment of the Waste Management Act of 1980, as amended, has declared as stated policy the improvement of solid waste management through the separation and recovery of energy and materials from solid waste and through the reduction of indiscriminate reliance upon land disposal of solid waste; and WHEREAS, yardwaste may not be disposed of in mixed municipal solid waste, in a landfill, or in a resource recovery facility except for purposes of composting or co -composting; and WHEREAS, the Client, consistent with these policies, desired to ensure an alternative to the landfilling of Yardwaste and Brush pursuant to Dakota County's Solid Waste Master Plan; and WHEREAS, the Vendor offers to operate and maintain a site for the receiving, storage, transfer and processing of Acceptable Materials; and WHEREAS, the Client agrees to promote the delivery of Acceptable Materials to the Vendor, and the Vendor agrees to accept, store, and compost or otherwise process Yardwaste, Brush, r08/06/92 and Christmas Trees delivered to the Facility and the Vendor further agrees to market or otherwise utilize or dispose of all the compost and chips produced at the Facility; and WHEREAS, the Vendor is a corporation duly organized under the laws of the State of Minnesota and registered to do business in the State of Minnesota; and WHEREAS, Vendor has the authority to execute this Contract as a binding legal obligation, fully enforceable in accordance with its terms and conditions. NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein the parties agree as follows: 1. GENERAL PROVISIONS. 1.1 Purpose. The purpose of this Contract is to define the rights and obligations of the parties with respect to the operation and maintenance of the yardwaste facility. 1.2 Recitals. The recitals set forth in the whereas clauses above are incorporated by reference as if fully set forth herein. 1.3 Cooperation. The Client and Vendor shall cooperate and use their reasonable efforts to ensure the most expeditious implementation of the various provisions of this Contract. The parties agree to, in good faith, undertake resolution of any disputes in an equitable and timely manner. 1.4 Term. The term of this Contract shall commence February 16, 1993, and terminate on December 31, 1996, unless 2 earlier terminated by law or according to the provisions herein. 2. DEFINITIONS. Unless the language or context clearly indicates that a different meaning is intended, the words, terms and phrases stated below, when capitalized, shall have the following meaning: 2.1 Acceptable Materials. Yardwaste, Brush, Christmas Trees and the bags in which they are delivered. "Brush" shall mean shrub and tree waste. "Christmas Trees" shall mean fresh -cut coniferous or evergreen trees or boughs, used for Yuletide decorations but not such trees or boughs which contain wire or other contamination. "Yardwaste" shall mean lawn cuttings, leaves, garden waste, weeds and sod strippings. 2.2 Commercial Entity. Any person, or public or private entity, delivering Acceptable Materials to the Facility, other than an Individual delivering Acceptable Materials from his/her own residence. 2.3 Facility. The following site used for the receiving, storage, transfer or processing of Acceptable Materials. Lakeville Compost Site. The Client's yardwaste compost site located at 17750 Pilot Knob Road in Lakeville, Minnesota. 2.4 Finished Products. Compost in marketable condition and wood chips, or mulch. 2.5 Individual. Any person who delivers Acceptable Materials to the Facility from his/her own residence. 3 2.6 Processing. Changing Acceptable Materials, as delivered to the Facility, into useful products, through the natural process of composting, or the mechanical process of chipping or grinding, and the preparation needed for these processes to occur. 2.7 Receiving Time. That time during which Acceptable Materials is received at a Facility. 2.8 Season. February 16 through February 15. 2.9 Tip Fee. A fee charge to Commercial Entities and Individuals for delivery of Acceptable Materials to the Facility. 2.10 Unacceptable Materials. All materials except Yardwaste, Brush, Christmas Trees, and the bags in which it is delivered. 2.11 User. Commercial Entities or Individuals delivering Acceptable Materials to the Facility. 3. VENDOR'S RIGHTS AND OBLIGATIONS. 3.1 Capacity. The Vendor shall operate and maintain, in each Season (February 16, 1993 through February 15, 1996) the Facility capable of handling Acceptable Materials generated by the Client's communities. 3.2 Receiving. The Vendor shall accept Acceptable Materials generated in the Client's communities from Individuals and Commercial Entities, based upon policies which the Vendor shall set for the Facility. Such policies shall be submitted to the Client by February 1st of each year and ten (10) days prior to the In CAI1PFFl [ , f hJI1TSCil,l . SCOTT R, F JCHS , P . H 0 Aug 13 , 92 14 : 5r, h,ln . 018 F . 04105 effective date of any changes thereto. Such policies shall include: * Type of material ttlat ,lay be accepted at the Facility; * Condition of Acceptable Materials when delivered; * Bagged vs. Debagged materials; * Parties who may deliver Acceptable Materials; * Fees charged to dispose of Acceptable Materials; * Prices charged for Finished Products; and * Acceptance of Christmas Trees. 3.3 Waste From Other Areas. Vendor may receive Acceptable Materials generated outside of Client's communities so long as sufficient capacity is retained for Acceptable Materials generated by the Client. 3.4 Tip Fees. Vendor shall charge a Tipping Fee to Users sufficient to cover costs of the Facility. Vendor shall submit a fee schedule to the Client by February 1st of each year and ten (10) days prior to the effective date of any changes thereto. Notwithstanding the above, the Cities may deliver without cost to the Cities, the following quantities per year of Acceptable Materials generated by the City making the delivery and delivered to the facility in City vehicles: Lakeville - 520 cubic yards Rosemount - 320 cubic yards Farmington - 320 cubic yards Apple Valley - 520 cubic yards 3.5 Receiving Time. Subject to applicable Client and municipal ordinances, tyle Vendor shall keep the Facility open for 5 the receiving of Acceptable Materials for a minimum of 1200 hours per Season. Vendor shall submit a schedule for the Facility to the Client by February ist of each year and ten (10) days prior to the effective date of any changes thereto. 3.6 Vendor's Resection of Deliveries. The Vendor may reject Acceptable Materials delivered at hours other than the Receiving Time. A vehicle shall be denied entrance if the Vendor has a reasonable basis to believe it contains any amount of Unacceptable Material. Upon request, the Vendor will provide the User and the Client with the documentation of the rejection and the reasons therefore. The Vendor shall be responsible to obtain landfill capacity and to properly dispose of Unacceptable Materials, which have been delivered and which the Vendor is unable to have removed at the expense of the Individual or Commercial Entity delivering it. The Vendor shall pay all costs for removing and properly disposing of Unacceptable Materials. 3.7 Processing. Vendor shall process all Acceptable Materials received at the Facility. Acceptable Materials shall be composted, except for Brush which may be chipped or ground. 3.8 Finished Products. The Vendor shall develop a policy for distributing finished compost and woodchips. Vendor shall submit said policy and any changes thereto to the Client. 3.9 Closure of Facility. The Vendor shall not accept any Materials after February 15, 1996, at the Lakeville Compost Facility. During the period of February 16, 1996 through December 31, 1996, Vendor shall have exclusive access to the r1 Facility for the purpose of processing materials accepted, selling or otherwise distributing finished products and site clean up. 3.10 Clean-up of the Facility. All chips, finished compost, unprocessed Acceptable Materials and Unacceptable Materials present at the Lakeville Compost Facility shall be removed and the site restored to its condition on the day preceding the effective date of this Contract by the Vendor on or before December 31, 1996. 3.11 Cost of Removal. If the Vendor does not remove Materials and Finished Products as required under 3.10, the Client may remove them and charge the Vendor for its removal. 3.12 Labor and Equipment. The Vendor shall provide all labor, equipment, tools, supplies, and other materials necessary to operate the Facility. The Vendor shall maintain, repair and replace all equipment as necessary, to ensure continued compliance with all requirements of law and other obligations as set out in this Agreement. 3.13 Roads. The Vendor shall be responsible for maintaining all roads within the boundaries of the sites required for continued operation as contemplated by this Agreement. The Vendor shall be responsible for connecting such roads to the access roads or drives at the boundaries of the site. 3.14 Drainage. The Vendor shall provide and maintain an adequate storm and surface water drainage system during the period of operation. 3.15 Vendor's Information Systems. The Vendor shall establish and maintain an information system to provide storage and 7 ready retrieval of Facility data. No later than twenty (20) days after the close of each calendar quarter, the Vendor shall provide the Client with a report for the previous quarter, presented in a form acceptable to the Client, including, but not limited to, the following data on Yardwaste, Brush and Christmas Trees received by the Facility: A. City/township of origin by weight and volume; B. The total weight and volume; C. Assessed Tipping Fees; D. The weight or volume of residues and Unacceptable Materials delivered to a sanitary landfill for disposal; E. The use of conversion factors, as described below, by materials; F. Quantity of Yardwaste and Brush not generated in Dakota County; G. Breakdown by weight and volume by individuals and commercial entities; and H. Other information which the Client may reasonably require. 3.16 Product Distribution Report. The Vendor shall report quarterly the volumes and the type of use intended by the end users. 3.17 Converting Volume to Weight. The Vendor shall establish a factor for converting cubic yards of Yardwaste and Brush received to tons of materials received. This conversion factor shall be based upon test weights for each material received. 0 3.18 Hazardous Waste. If any hazardous waste, as defined by any federal or state law or regulation, is received at the facility, the Vendor shall within 24 hours notify the Minnesota Pollution Control Agency and the Client Coordinator. 3.19 Phone. The Vendor shall maintain a phone service to answer questions about its facility. An answering machine shall be used when no one is available to answer the phone. 3.20 M.P.C.A. Rules. Vendor shall comply with the M.P.C.A. rules attached hereto as "EXHIBIT 1," and any subsequent amendments to the Rules. 4. RIGHTS AND OBLIGATIONS OF THE CLIENT. 4.1 Commitment to Promote the Delivery of Acceptable Materials. The Client shall promote the delivery of Acceptable Materials to the Facility. The Client will meet and confer with the Vendor on publicity of the Yardwaste program. The Client, jointly with R. D. Pecar and Company, Inc., shall develop a program and materials for promoting the yardwaste management program and Facility. 4.2 Permit. Notwithstanding Section 5.2 of this Contract, the Client shall obtain the Minnesota Pollution Control Agency Permit by Rule and other land use or conditional use permits. 4.3 Site. The City of Apple Valley shall provide the site legally described on the attached "EXHIBIT 2" for the Lakeville Yardwaste Compost Facility. 1 4.4 Tours. At any time during the term of this Agreement and upon reasonable prior notice to the Vendor, the Client, its elected officials, employees, agents, representatives or guests shall have the right to tour the Facility in order to observe and to permit others to observe the various services which the Vendor performs. The Vendor may take reasonable precautions to protect proprietary equipment and processing procedures. Such scheduled tours shall be conducted in a manner so as to comply with the Vendor's safety standards, shall not interfere with the Vendor's ability to perform its obligations under this Agreement. Tours shall occur during regular operating hours, unless otherwise agreed to by both parties. 4.5 Inspection. The Client, its elected officials, employees, agents or representatives, including employees of the M.p.C.A. and Dakota County, may inspect the operation of the Facility at any time for the purposes of verifying compliance with the terms of this Agreement. The Vendor shall cooperate fully with the inspection. The Client, its elected officials, employees, agents or representatives shall have complete right and access to the Facility so long as it does not interfere with the normal operations of the Facility. 4.6 Lakeville, Apple Valley, Rosemount and Farmington ("the Cities") acknowledge that they are individually and collectively "arranging for" and "generating" delivery of materials to the site and that they are "owners or possessors" of the property from and after the date of this Contract. The Cities further agree that 10 should a determination be made by the M.P.C.A., the EPA, their successors or assigns, or any governmental agency having jurisdiction over the site and the processes occurring thereon, that any one of the Cities is liable with respect to the activities performed under this Contract, that all of the Cities shall share: the costs of defense, including reasonable attorneys' fees; all damages, claims, awards, penalties and the like; clean-up costs, remediation costs and administrative costs or other similar costs in the proportions as follows: Apple Valley - 35%; Lakeville - 35%; Farmington - 15% and Rosemount - 15%. This Agreement and the associated allocation of costs hereunder does not release or waive the Cities' rights against prior owners, possessors or operators, nor waive or release any other persons, including vendor, from any legal responsibility. 5. COMPLIANCE WITH LAWS/STANDARDS. 5.1 General. Vendor shall abide by all Federal, State or local laws, statutes, ordinances, rules and regulations now in effect or hereafter adopted pertaining to this Contract or to the Facility, programs and staff for which Vendor is responsible. This includes, but is not limited to all Standard Assurances, which are attached as Exhibit 3. 5.2 Licenses. Vendor shall procure, at its own expense, all licenses, permits or other rights required for the provision of services contemplated by this Contract. Vendor shall inform the Client of any changes in the above within five (5) days of 11 occurrence. 5.3 Violations. Any violation of Federal, state, or local laws, statutes, ordinances, rules, or regulations, as well as loss of any applicable license or certification by Vendor shall constitute a material breach of this Contract, whether or not intentional and shall entitle the Client to terminate this Contract upon delivery of written notice of termination to Vendor. 5.4 Minnesota Law to Govern. This Contract shall be governed by and construed in accordance with the substantive and procedural laws of the State of Minnesota, without giving effect to the principles of conflict of laws. All proceedings related to this Contract shall be venued in the State of Minnesota. 6. INDEPENDENT CONTRACTOR STATUS. Vendor is to be and shall remain an independent contractor with respect to any and all work performed under this Contract. It is agreed that nothing herein contained is intended or should be construed in any manner as creating or establishing the relationship of agents, partners, joint venturers or associates between the parties hereto or as constituting Vendor as the employee of the Client for any purpose or in any manner whatsoever. Vendor acknowledges and agrees that Vendor is not entitled to receive any of the benefits received by Client employees and is not eligible for workers' or unemployment compensation benefits under the Client. Vendor also acknowledges and agrees that no withholding or deduction for state or federal income taxes, FICA, 12 FUTA, or otherwise, will be made from the payments due Vendor and that it is Vendor's sole obligation to comply with the applicable provisions of all federal and state tax laws. 7. RENT. Vendor shall pay the City of Apple Valley $900.00 per year rent for the Lakeville compost site. The first rental payment shall be due within ten (10) days after the effective date of this contract and shall be due annually thereafter on the anniversary date of the first payment. 8. INDEMNIFICATION AND INSURANCE. 8.1 Indemnification. The Vendor will indemnify, defend and save harmless the Client, its elected officials, employees, agents or representatives from any and all claims, damages, lawsuits, losses, liabilities, costs and expenses arising out of any act, omission or equipment failure on the part of the Vendor or its subcontractors, agents, servants or employees in the performance of any of the work or services to be performed or furnished by the Vendor under the terms of this Agreement. Such indemnity shall include, but not be limited to, property damage, personal injury, bodily injury and death, punitive damages or any combination thereof. The Client shall indemnify, defend and save harmless the Vendor, its employees, agents or representatives from any and all claims, damages, lawsuits, losses, liabilities, costs and expenses 13 arising out of any act or omission or commission of the Client, its elected officials, employees, agents or representatives in connection with work or services to be performed by the Client under the terms of this Agreement. 8.2 Insurance. In order to protect itself and to protect the Client under the indemnity provision set forth above, the Vendor shall, at Vendor's expense, procure and maintain policies of insurance during the term of this Agreement as set forth below. Such policies of insurance shall apply to the extent of, but as a limitation upon or in satisfaction of, the indemnity provisions herein. All retentions and deductibles under such policies of insurance shall be paid by the Vendor. Each such policy of insurance and insurance certificate shall not be canceled, non - renewed or materially changed in the issuing insurance company, without at least thirty (30) days written notice of intent to cancel to the Client. Concurrent with execution of this Agreement and as necessary to show continuous coverage, the Vendor shall file acceptable certificates of insurance with the Client. All insurance shall state that the insurance broker through which this insurance was purchased has errors and omissions insurance. 8.3 Coverage. The policies of insurance to be obtained by the Vendor pursuant to this Article shall be purchased from a licensed carrier, shall name Client as an additional insured, and shall include the following: 14 A. Comprehensive General Liability, including Contractual. Occurrence -based single or combined limit comprehensive general liability insurance with the minimum limits of Two Hundred Thousand and No/100 Dollars ($200,000) per person and Six Hundred Thousand and No/100 Dollars ($600,000) per occurrence. B. Automobile Liability. Automobile liability insurance if any vehicles are used in connection with this Agreement which shall include the following minimum coverages: (1) Bodily Injury and Property Damage: Two Hundred Fifty Thousand and No/100 Dollars ($250,000) per person and Five Hundred Thousand and No/100 Dollars ($500,000) per occurrence. (2) Hired, owned and non -owned vehicles. C. Umbrella Liability. Umbrella Liability insurance in the minimum amount of $2,000,000. It is the responsibility -of Contractor to maintain all underlying insurance in accordance with the terms of the Umbrella Liability policy. D. Workers' Compensation. The statutory minimum. 8.4 Failure to Provide Proof of Insurance. This Agreement will not be executed until proof of insurance consistent with the insurance requirements herein has been submitted to the Client. 8.5 Excessive Premiums. If the premium for any liability insurance more than triples from one year to the next during the term of this Agreement, the Vendor may terminate this Agreement effective upon cancellation of insurance coverage and ten (10) days notice. In the event Vendor gives notice to terminate under this paragraph, Vendor and Client agree to meet and confer on payment of insurance premiums and continuation of this Agreement. 15 F'BELL , 1.I'd _IT C fd . >C.IDTT r Fl1CH`z , P . N P g 14 +� 11 ' = 1 Pdn . C =t� F' . C 'i.i 9. PERFORMANCE BOND. The Vendor shall furnish to the Client a bona in the amount of Twenty-five Thousand and No/100 Dollars ($25,000.00) which shall be that if the Vendor fails to perform the obligations required by this Agreement, and the Client is required to spend monies or labor or materials to remedy such nonperformance, the Vendor and sureties on the bond will indemnify and save the Client harmless from all losses, costs, and charges that may be incurred by the Client because of any failure by the Vendor to comply with the terms of this Agreement. The Client may approve an irrevocable letter of credit in .lieu of a performance bond. Although the Vendor is required to have a bond or letter of credit in place for the entire terra, bonds or letters of credit for shorter terms will be accepted provided they are replaced or renewed by the Vendor before they lapse. 10. SUBCONTRACTING. Parties shall not enter into any subcontract for the performance of this Contract nor assign any interest in this Contract without prior written consent of all parties and subject to such conditions and provisions as are deemed necessary. This limitation shall not apply to subcontract's so long as R.D. Pecar, President, retains managerial control of the Facility. All parties shall be notified of subcontracts as soon as reasonably possible 'regardless of their dollar value or nature. Any agreement between Vendor and any subcontractor shall obligate the subcontractor to comply with the general terms of this Contract. The subcontracting or assigning party shall be responsible 16 for the performance of its subcontractors or assignees and their compliance with the Contract terms. 11. DEFAULT. 11.1 Force Majeure. No party shall be held responsible or subject to damages for delay or failure to perform when such delay or failure is due to any uncontrollable circumstance unless the act or occurrence could have been foreseen and reasonable action could have been taken to prevent the delay or failure, including but not limited to: A. Riots, insurrections, war or civil disorder affecting performance of work, blockades, sabotage, and acts of God (including tornadoes, lightning, earthquakes, fires, explosions and floods but not including typical seasonal weather conditions for this geographic area). B. The adoption of or change in any federal, state or local laws, rules, regulations, ordinances, permits, or licenses or changes in the interpretation of such laws, rules, regulations, ordinances, permits, or licenses by a court or public agency asserting jurisdiction after the date of the execution of the Contract, except a change in federal, state or local tax law. C. The suspension, termination, interruption, denial or failure of renewal of any permit, license, consent, authorization or approval essential to the operation, management or maintenance of the Facility. D. Orders and/or judgments of any federal, state or local court, administrative -agency or governmental entity. The Client and the Vendor agree to attempt to resolve quickly all matters related to uncontrollable circumstances and use all reasonable efforts to mitigate its effects. If a matter arising under this paragraph is unable to be resolved within sixty (60) days the non -defaulting party may 17 terminate this Contract upon ten (10) days written notice. 11.2 Inability to Perform. Vendor shall make every reasonable effort to maintain staff, facilities, and equipment to provide the services to the Client as required by this Contract. Vendor shall immediately notify the Client in writing whenever it is unable to, or reasonably believes it is going to be unable to, provide the agreed upon quality and quantity or services. Upon such notification, the Client shall determine whether such inability requires a modification or cancellation of this Contract. 11.3 Default by Vendor. Unless cured or excused by the occurrence of Force Majeure or Client default, each of the following shall constitute default on the part of the Vendor: • The written admission by the Vendor that it is bankrupt; or the filing of an involuntary petition under the Federal Bankruptcy Act against the Vendor unless dismissed within ninety (90) days. The Notice of Default and cure provisions of this Contract do not apply to this paragraph. • The making of any arrangement with or for the benefit of Vendor's creditors involving an assignment to a trustee, receiver or similar fiduciary. The Notice of Default and cure provisions of this Contract do not apply to this paragraph. • Making material misrepresentations either in the attached exhibits and documents or in any other material provision or condition relied upon in the making of this Contract. • A court or administrative body having competent jurisdiction finds that the Vendor persistently disregards laws, ordinances, rules, regulations or orders of any public authority. Failure to perform any other material provision of this contract. "M 11.4 Default by the Client. Unless cured or excused by the occurrence of Force Majeure or default of the Vendor, each of the following shall constitute a default on the part of the Client: • Making knowing material representations either in the attached exhibits and documents or in any other provisions or conditions relied upon in making this Contract. • Failure to provide the site indicated in paragraph 4.3 or the equivalent. • Failure to perform any other material provision of this Contract. 11.5 Written Notice of Default. Unless a different procedure and/or effective date is provided in the article or paragraph of this Contract under which the default, failure or breach occurs, no event shall constitute a default giving rise to the right to terminate unless and until written Notice of Default is given to the defaulting party, specifying the particular event, series of events or failure constituting the default and cure period. 11.6 Cure Period. If the party in default fails to cure the specified circumstances as described by the Notice of Default within twenty (20) days or such other time as may be specified under the terms of this Contract, then this Contract may be terminated. 19 12. TERMINATION. 12.1 Duties of Vendor upon Termination. Upon termination, except as otherwise requested, Vendor shall discontinue performance of this Contract. Within one (1) year of termination, Vendor shall remove all chips, Finished Products, unprocessed Acceptable Materials and Unacceptable Materials and restore site to its condition on the day preceding the effective date of this Contract. 12.2 Duties of Client upon Termination. Upon termination, and except as otherwise provided, the Client shall not be liable for any services provided after termination, except as authorized by the Client in writing. 12.3 Effect of Termination. Termination of this Contract shall not discharge any liability, responsibility or right of any party which arises from the performance of or failure to adequately perform the terms of this Contract prior to the effective date of termination. Nor shall termination discharge any obligation which by its nature would survive after the date of termination, including by way of illustration only and not limitation, Standard Assurances attached hereto. 13. CONTRACT RIGHTS/REMEDIES. 13.1 Rights Cumulative. All remedies available to either party under the terms of this Contract or by law are cumulative and may be exercised concurrently or separately, and the exercise of any one remedy shall not be deemed an election of such remedy to PAR the exclusion of other remedies. 13.2 Waiver. The waiver of any default by either party, or the failure to give notice of any default, shall not constitute a waiver of any subsequent default or be deemed to be a failure to give such notice with respect to any subsequent default. Waiver of breach of any provision of this Contract shall not be construed to be modification for the terms of this Contract unless stated to be such in writing and signed by authorized representatives of the Client and Vendor. 14. DAMAGES. 14.1 Duty to Mitigate. Both parties shall use their best efforts to mitigate any damages which might be suffered by reason of any event giving rise to a remedy hereunder. 14.2 Cost of Defense. In the event the Vendor fails to operate the facility in compliance with all applicable local, state and federal laws, permits, rules and regulations, the Vendor shall reimburse the Client for any civil or criminal penalties or costs of defense incurred due to such violations. 15. REPRESENTATIVE. 15.1 Authorized Representative. The following named persons are designated the Authorized Representative of parties for purposes of this Contract. These persons have authority to bind the party they represent and to consent to modifications and subcontracts, except that, as to the Client, the Authorized 21 Representative shall have only the authority specifically or generally granted by the Client. Notification required to be provided pursuant to this Contract shall be provided to the following named persons and addresses unless otherwise stated in this Contract, or in a modification of this Contract. TO VENDOR: R. D. PECAR & COMPANY, INC. P. O. Box x#40130 St. Paul, MN 55104 Attn: Richard D. Pecar, President (612) 224-1659 TO CLIENT: CITY OF APPLE VALLEY 14200 Cedar Avenue Apple Valley, MN 55124 Attn: City Administrator (612) 431-8800 CITY OF LAKEVILLE 20195 Holyoke Avenue West Lakeville, MN 55044 Attn: City Administrator (612) 469-4431 CITY OF FARMINGTON CITY OF ROSEMOUNT 321 Oak Street 2875 - 145th Street West Farmington, MN 55024 Rosemount, MN 55068 Attn: City Administrator Attn: City Administrator (612) 463-7111 (612) 423-4411 15.2 Coordinator. To assist the parties in the day-to-day performance of this Contract and to develop service, ensure compliance and provide ongoing consultation, a coordinator shall be designated by Vendor and the Client. The parties shall keep each other continually informed, in writing, of any change in the designated coordinator. At the time of execution of this Contract, the following persons are designated coordinators: Vendor Coordinator: Richard D. Pecar Phone Number: (612) 224-1659 Client Coordinator: John Hennen Phone Number: (612) 469-4431 22 16. CONFLICT OF INTEREST. Vendor agrees that it will not contract for or accept employment for the performance of any work or services with any individual, business, partnership, corporation, government, governmental unit, or any other organization that would create a conflict of interest in the performance of its obligations under this Contract. 17. MODIFICATIONS. Any alterations, variations, modifications, or waivers of the provisions of this Contract shall only be valid when they have been reduced to writing, signed by Authorized Representatives of the Client and Vendor. 18. SEVERABILITY. 18.1 The provisions of this Contract shall be deemed severable. If any part of this Contract is rendered void, invalid, or unenforceable, such rendering shall not affect the validity and enforceability of the remainder of this Contract unless the part or parts which are void, invalid or otherwise unenforceable shall substantially impair the value of the entire Contract with respect to either party. 18.2 The parties further agree to substitute for the invalid portion a valid provision that most closely approximates the economic effect and intent of the invalid provision. 23 19. MERGER. 19.1 Final Agreement. This Contract is the final expression of the agreement of the parties and the complete and exclusive statement of the terms agreed upon, and shall supersede all prior negotiations, understandings or agreements. There are no representations, warranties, or stipulations, either oral or written, not herein contained. 19.2 Exhibits. Exhibit 1 - "M.P.C.A. Rules; Exhibit 2 - "Legal description of Yardwaste Compost Facility Site"; Exhibit 3 - "Standard Assurances;" and are attached and incorporated herein by reference. IN WITNESS WHEREOF, the parties have executed this Contract on the date indicated below: CITY OF APPLE VALLEY CITY OF FARMINGTON By: WILLIAM F. HOLTON, Mayor By: MARY MUELLER, Clerk CITY OF LAKEVILLE By: DUANE R. ZAUN, Mayor By: CHARLENE FRIEDGES, Clerk 24 By: EUGENE "BABE" KUCHERA, Mayor By: LARRY THOMPSON, Administrator CITY OF ROSEMOUNT By: EDWARD B. McMENOMY, Mayor By: SUSAN M. WALSH, Cler R. D. PECAR & COMPANY, INC. By: Its By: Its STATE OF MINNESOTA) )ss.. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of , 1992, by WILLIAM F. HOLTON and MARY MUELLER, respectively the Mayor and Clerk of THE CITY OF APPLE VALLEY, a Minnesota municipal corporation, on behalf of said corporation and pursuant to the authority granted by its City Council. NOTARY PUBLIC STATE OF MINNESOTA) ) ss. . COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of , 1992, by EUGENE "BABE" KUCHERA and LARRY THOMPSON the Mayor and Administrator of THE CITY OF FARMINGTON, a Minnesota municipal corporation, on behalf of said corporation and pursuant to the authority granted by its City Council. NOTARY PUBLIC 25 STATE OF MINNESOTA) )ss.. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of , 1992, by DUANE R. ZAUN and CHARLENE FRIEDGES respectively the Mayor and Clerk of THE CITY OF LAKEVILLE, a Minnesota municipal corporation, on behalf of said corporation and pursuant to the authority granted by its City Council. NOTARY PUBLIC STATE OF MINNESOTA) ) ss. . COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of , 1992, by EDWARD B. McMENOMY and SUSAN M. WALSH respectively the Mayor and Clerk of THE CITY OF ROSEMOUNT, a Minnesota municipal corporation, on behalf of said corporation and pursuant to the authority granted by its City Council. NOTARY PUBLIC STATE OF MINNESOTA) ) ss. . COUNTY OF ) The foregoing day of , instrument was acknowledged before me this 1992, by and _ respectively the and of R. D. PECAR & COMPANY, INC., a Minnesota corporation, on behalf of said corporation. NOTARY PUBLIC 26 MINNESOTA POLLUTION CONTROL AGENCY RULES 7035 2835 COMPOST FACII=S. Subpart 1. Scope. The requirements of subparts 4 to 9 apply to the owners and operators of facilities used to compost solid waste, except as provided in part 7035.2525, subpart 2. The owner or operator of a yard waste compost facility must comply with subparts 2 and 3 only. Backyard compost facilities are exempt from this part Subp. 2 Notification. The owner or operator of a yard waste compost facility must notify the commissioner by letter before beginning operation of the facility. The notification must include the facility location, the name of the contact person, the phone number of the contact person, the address of the contact person, the facility design capacity, the type of waste received, and the intended distribution of the finished product. Subp. 3 Operation requirements for a yard waste compost facility. A. Odors emitted from the facility must not exceed the limits specified in parts 7005.0900 to 7005.1400. B. Composted yard waste offered for use must be produced by a process that encompasses turning of the yard waste on a periodic basis to aerate the yard waste, maintain temperatures, and reduce pathogens. The composted yard waste must contain no sharp objects greater than one inch in diameter. C. By-products, including residuals and recyclables must be stored in a manner that prevents vector problems and aesthetic degradation- Materials that are not composted must be stored and removed at least weekly. D. Surface water drainage must be controlled to prevent leachate runoff. Surface water drainage must be diverted from the compost and storage areas. E. The annual report required under part 7035.2585 must be submitted to the commissioner and must include the type and quantity, by weight or volume, of yard waste received at the compost facility; the quantity, by weight or volume, of comp produced; the quantity, by weight or volume, of compost removed from the facility; and a description of the end -product distribution and disposal system_ EXHIBIT 1 EXHIBIT 2 LEGAL DESCRIPTION OF YARDWASTE COMPOST FACILITY SITE SITE DESCRIPTION: Al11,that- part of the North one-half of the Southwest Quarter (N 1/2 of SW 1/4) of Section Twelve (12), Township one Hundred Fourteen North (114N), Rance Twenty '.,lest (20W), described as follows: Assuring the North line of said Section 12 to have a bearing of South ninety degrees East (S.9 C E) and the 11est line of said Section 12 to have a bearing of North zero degrees and fifty-six minutes East thence beginning at a point sllich is one thousand five hundred seventy -tour and three -tenths (1,574.3) feet East and three thousand one hundred fifty-five and six -tenths (3,155.6') feet South of the Northwest corner of said Section 12; thence -Easterly and parallel to the North line of the Southwest Quarter (SW 1/4) o= said Section 12 a distance of one thousand sixty-five and seven -,tenths (1,065.7') feet, more or less to the East line of said Southwest',\Quarter (SW 1/4) of said Section 12, thence Southerly along said East line to the Southeast corner of the North one-half of said Southwest Quarter (�i 1/2 of SW 1/4); thence Westerly along the South line of said North one-half of said Southwest Quarter (N 1/2 of SW 1/4) to the Southwest corner thereof; thence North along the West lire of said North one -halt of said Southwest Quarter (ii 1/2 O= SW 1/4) t ;1rtV-th=ee (33') feet, thence East and parallel to the South line of said Nort'� one --half o_ said Southwest Quarter (IN 1/2 of SW 1/4) one thousand five hundred seventy-four and three -tenths (1,574.3') feet to a polnt due South of the point of beginning, thence North to the paint o= beginning, all according to the Government Survey thereof-. INGRESS AND EGRESS EASEMENT DESCRIPTION: A permanent easement for ingress and egress over and across the following described property: Beginning at a point which is 1..574.3 feet East and 3,155.6 feet South of the Northwest corner of said Secticn Twelve 12 Township One Hundred Fourteen North (114N) Rance Twenty West (20W); thence Easterly and parallel with the North line of Southwest 1/4 of Section 12 a distance of 35 feet; thence 'Southerly and parallel with the west line of the Southwest 1/4 of Section 12 to the South line of the North 1/2 of the Southwest 1/4 of Section 12; thence westerly along the South line of the North 1/2 of the Southwest 1/4 of Section. 12 a distance of 1.609.3 feet to the west line oz Section 12; thence North along the west lire of Section 12 a distance of 33 feet; thence Easterly and pazallel with the South line of the North 1/2 of the Southwest 1/4 of Section 12, a distance ot- 1,574.3 feet; thence Northerly to a point of beginning and there terminating. Subject to easements, restrictions, and reservations of record, if any. not uLly perf 1_ MOa'-D1SC�IF(i%AT1Oa. During the icsnt for & of th'nttbecause ofthe race, color, creedl, religion, ,discriminate against any employee or applicant for a+�ploY■K national origin, disability, age, aarital status or public assistance status. The Contractor will tang affirmative action to ensure th+t applicants, are e+OLoyed, and that employees are treated during employment, without unlawful discrimination because of their race, color, creed, religion, sex, national in disability, g, marital status or public aeeist+ace status. Such action shall include, but not be orifi iliage, upgrading, demotion, or transfer; recruitment or recruitment limited to the following: employ*ent, advertieing; layoff or termination; rates of pay or othoL2 ;nr conspicuousn pLtms of la aces, s a lable'to employees'and including apprenticeship. The Contractor agrees to p hich set forth the provisions of this nondiscrimination clause. applicants for employment, notices w The Contractor will, in all solicitationsor adverm will re tineeive consitleratents for monofor splaced yo employmentwithout behalf regard tc Contractor, state that all qualified applicants race, creed, color, religion, sex, national origin, disability, marital status, or public assistance status. used to provide religious or sectarian training or ko funds received under this Contract shall be services. The Contractor shall' comply with any applicable federal or slate law regarding non-discrimination. The following list includes, but is not natant to limit, lave which may be applicable: -7he Eauel molovment O000rtunity Act of 1972, +s amended, 42 U.S.C. 52000c et seq. which prohibits A. s discrimination in employment because of race, color, religionx or national origin. , se g, Executive Order 11246, as amended, which is incorporated herein by reference, and prohibit= nd subcontractors because of race, color, religion, sex o: discrimination by U.S. Government contractors a national origin. / , 29 U.S. C. t qand 45 C.F. R. 84.3 (J) and (K C. The Rehabilitation Act of 1973 as amended against sualified handicapped persons in Th Sec. 5 04 of the Act which prohibits discrimination implementing pc�iL q access to or participation in federally -funded services or employm and Minn. Stat. ;181 .81 whit D. The Ace Discrimination in Emolovment Act of 1467, ns amended, generally prohibit discrimination because of age. ^ which provides that an employer may nc Thr Eoual Pav Act of 1963, as amended, §29 U.S.. §206, discriminate E the basis of sex by paying employees of different sexes differentLy for the same work. Nina _5 ;a_ Ch. 363, as amended, which generally prohibits discrimination because of race, colo` creed, religion, national origin, sex, marital status, status with regard -to pubLic assistance, disabili: or age.erson b reason of race, creed, c G, Minn. Stat. ;181.59 which prohibits discrimination against any P Y Violation : color in any state or political subdivision contract for materials, supplies or construction. this sec;ion is a misdemeanor and any second or suDseque'nt violation of these terms may be cause f: forfeiture of all sums due under the Contract. tained 2, DATA PRTVACT. For purposes of this Contra he aMinnesota Government Data e PrracticeseActF,aMrinn. Sta disseminated shalt be administered consistent with Chapter 13 and the Minnesota Rules implementing the Act now in force or hereafter adopted as well as Feder d rules. All subcontrac laws on data privacy. The Contractor will strictly comply with these statutes an shall contain the same or similar data practices compliance requirements. a ers, accounti 3, RECORDS DISCLOSURE RETEXTIOx. Contractor's bonds, records, documents, ct papers, examinatic procedures and practices, and other evidences relevant to this Cont'SiBt'°�e°o(uState Auditor, pursuant duplication, transcription and audit by the County and either the Leg Minn. Stat. 5166.06, subd. 4. Such evidences are also subject to review by the Comptroller General of ' United Stales, or 'n duly authorized representative, if d federal funds are used for any work under evidences for a period of three (3) years from the Contract, the Contractor agrees to maintain such d services or payment vete Las: provided or made or longer if any audit in progress requires a ion retention period.onsible for the health 4, t1ORLER HEALTH SAFETT A71D TRATx1xG. Contractor shall be solely resp Contractor shall r. safety of its employees in connection with the work performed under this Contract. of all subcontractors and other persons who may Perform wort arrangements to ensure the health and safety all personnel of Contractor and subcontractors connect with this Contract. all shall ensure dui licensed or certified appropriate ;o the t properly trained and supervised and, when applicable, with the 'Occupational Safety and Health Ac-' engaged in under this Contract. Contractor shalt comply where applicable. the 'Employee Right Lo Know Ac;', Hinn. Stat. §182.65 et. seq., EXHIBIT 3 PHONE (612) 423.4411 FAX (612) 423-5203 GOCity of Rosemount 2875 • 145th Street West, Rosemount, Minnesota Mailing Address: P.O. Box 510, Rosemount, Minnesota 55068-0510 TO: Mayor McMenomy Council Members: Klassen, Staats, Wil cox, FROM: Stephan Jilk, City Administrator J DATE: June 10, 1992 RE: Joint City Compost Facility MAYOR Edward B. McMenomy COUNCILMEMBERS Sheila Klassen James (Red) Staats Harry Willcox Dennis Wippermann ADMINISTRATOR Stephan Jilk wippermann For the last three years now Dakota County has worked with the orivate sector to maintain two yard waste compost facilities in Dakota County. One of these sites is located in Eagan, just south of Eagan City Hall, on property owned by the City of Eagan. The other site is located in the City of Lakeville, on property owned by the City of Apple Valley. The sites were initially chosen because of land availabillity and, because of the County's attempt to provide locations which would act as "area" service centers for the yard waste dropoff. These sites are established more for residential use and are meant to serve commercial haulers although the sites will take commercial business but charge at a higher rate. The County is moving the site in Eagan because the city is reclaiming the property. The County has located a site just off Dodd Blvd and Wescott, on private land. The County is also indicating that it will not subsidize the compost operations anymore and so, if the operations are going to continue, the private sector will need to develop a program to continue these services. The County has notified the operator of the Lakeville site that the County will cease to subsidize that operation as of February 1, 1993. If that operation does not continue the Cities of Lakeville, Farmington, Rosemount and Apple Valley will have to; 1)develop their own site, 2)utilize the Eagan site, 3) utilize a commercial site in Burnsville . In discussing these options the City Administrators of these Cities have come to consensus that the best approach, considering that the County is backing away from there involvement, is to consider having the four Cities form a joint powers agreement to continue the Lakeville operation. (Sverylllings (pouring `vL �osPvnounl:�! Joint Compost Page 2 Following on this consideration the cities have developed an agreement between the Cities and the operator of the site which would allow the continued operation of the facility at no direct cost to the Cities. We have copied the first draft of that agreement for your consideration. We have had positive discussions with the operator and he is indicating his desire and ability to work with the Cities to move ahead on this idea. My purpose of discussing this proposal at this point is to introduce the idea to you and to get your input on it. Much needs to be considered before the idea is concluded. Before we proceed any further though I wanted to make sure your support was in place. i will provide additional information to you on 'Tuesday on this matter and attempt to answer any Questions i can. June 1, 1992 Mr. Steven Jilk City Administrator City of Rosemount 2875 W. 14th Street Rosemount, MIST 55068 Dear Mr. Jilk: As you are aware, the Dakota County Board of Commissioners approved an agreement to continue to subsidize the Dakota County Yard Waste Compost site located off Pilot Knob Road in Lakeville until February 1, 1993. After February 1st, residents will not be able to dispose of their yard waste at the facility. The City of Lakeville and the neighboring cities realize that the discontinuation of the yard waste compost site would be detrimental to each of the cities rec} cling programs. Currently, Dakota County has a contract with R. D. Pecar and Company, Inc. for the operation and maintenance of the yard waste facility. City staff from the cities of Lakeville, Rosemount, Apple Valley and Farmington met with Mr. Pecar on March 19th regarding the possibility of creating) a joint powers agreement for the continued operation and maintenance of the yard waste facility. Mr. Pecar has indicated he is willing to continue to operate the site and believes he would not need a subsidy from the cities to continue to operate the site. The property is currently owned b} the City of Apple Valley, but is in Lakeville's city limits. Enclosed is a draft contract from Richard Pecar regarding the operation and maintenance of the yard waste facility. Also enclosed, for your information, is the current contract between Mr. Pecar and Dakota County. On June 4th at 10:00 a.m., at Lakeville City Hall, Mr. Pecar and representatives from the cities of Lakeville, Farmington, Rosemount and Apple Valley will meet to discuss the proposed contract and the future of the yard waste facility. Please review the proposed draft contract agreement and be present to ask any questions which you might have regarding the contract to Mr. Pecar at the time of the meeting. If you need additional information, please feel free to contact me. Sincerely, John Hennen Planning Assistant/Zoning Enforcement Coordinator JH:ve cc: Bud Osmundson, City Engineer and Assistant Public Works Director City of Lakeville 20195 Holyoke Avenue • P.O. Box 957 • Lakeville. MN 55044 • (612) 469-4431 • FAX 469-3815