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Home My WebLink AboutRES.2432.03-16-2009BILL NO. 09-37 RESOLUTION NO. �a;-A A RESOLUTION AUTHORIZING THE INTERIM CITY MANAGER TO EXECUTE AN AGREEMENT WITH QRS RECYCLING FOR RECYCLING SERVICES, IN THE CITY OF CAPE GIRARDEAU, MISSOURI BE IT RESOLVED BY THE COUNCIL OF THE CITY OF CAPE GIRARDEAU, MISSOURI, AS FOLLOWS: ARTICLE 1. The Interim City Manager, for and on behalf of the City of Cape Girardeau, Missouri, is hereby authorized to execute an Agreement with QRS Recycling, for recycling services in the City of Cape Girardeau, Missouri. A copy of said Agreement is attached to this Resolution and made a part hereof. PASSED AND ADOPTED THIS I&VA� DAY OF C.%L 20 D fJa.(Kn7udtson, Mayor ATTEST: Q�S RECYCLING Northside: 6025 Byassee Drive, Hazelwood, MO. 63042 Phone (314) 731-7663 Fax (314) 731-7786 Southside: 4076 Bayless Ave. St~ Louis, MO. 63125 Phone (314)631-3400 Fax (314)631-2742 Account Name: City of Cape Girardeau Billing Name: SAME Service Address: 2007 Southern Expressway Billing Address: City, State, Zip: Cape Girardeau, MO. 63703 City, State, Zip: Telephone: 573-334-9151 Telephone: Contact: Steve Cook Contact: Email: scook@cityofcapegirardeau.org Email: Fax: 573-335-0507 Fax: Equipment & Service Specifications Service Start Date: 3-1-09 T e of Service: Tractor Trailer Trailers: ONE # of Tubs: NA # of Totes: NA I Other Equipment: NA Schedule of Payments Per Ton Rebate for: Cardboard High Side Yellow Sheet -$ 25.00 per ton Per Ton Rebate for: Chip Board Market Rate Notes: October 08 Market $15.00 Per Ton Rebate for: News Paper High Side Yellow Sheet -$35.00 per ton Per Ton Rebate for: #1-7 Plastics Market Rate Notes: October 08 market $100.00 Per Ton Rebate for: Mixed Paper High Side Yellow Sheet -$40.00 per ton Per Ton Rebate for: HDPE Bags Market Rate Notes: October 08 Market $25.00 Per Ton Rebate for: Tin Cans Market Rate Notes: October 08 Market $10.00 Per Ton Rebate for: Alum. Cans Market Rate Notes: October 08 Market $1,000.00 Schedule of Charges Freight Charge per Pull $ NA Notes: Trailer Charge per Month $ NA Notes: Additional Charges $ NA Notes: Note: A monthly fuel surcharge may be applied. THE UNDERSIGNED INDIVIDUAL SIGNED THIS AGREEMENT ON BEHALF OF CUSTOMER ACKNOWLEDGES THAT HE/SHE HAS READ AND UNDERSTANDS THE TERMS AND CONDITIONS OF THIS AGREEMENT, ON REVERSE SIDE, AND THAT HE/SHE HAS THE AUTHORITY TO SIGN ON BEHALF OF CUSTOMER. Customer Authorized Signature Title J _ Date .3 -17- c) QRS Recycling Authorized Signature Title 3/��GGI Date Terms & Conditions QRS Recycling agrees to furnish the collection services and /or rebates specified and customer agrees to make the payments as provided herein and abide by the terms and conditions of this agreement. The type, size and amount of equipment, and the frequency of service, may be changed by parties, in writing, without affecting the validity of the Agreement. This Agreement shall continue in effect for the term provided herein and shall apply to changes of service address location of the Customer within the area which QRS Recycling provides collection and /or processing. This Agreement is for a term commencing on the date hereof and continuing until _1_ year(s) after the date service begins hereunder and shall be renewed for successive one year terms without further action by the parties, but may be terminated at the end of any initial or subsequent term by either of the parties herein by not less than sixty days prior written notice (Certified Mail). In the event Customer terminates this Agreement prior to the expiration of its term without providing sixty days prior written notice, Customer agrees to pay QRS Recycling as liquidated damages an amount equal to the sum of Customer monthly margins for the most recent three months. Customer acknowledges that the forgoing liquidated damages are reasonable in light of the anticipated loss to QRS Recycling caused by the termination and are not imposed as penalty. In the event Customer fails to pay such liquidated damages, QRS Recycling refers such matters to an attorney, Customer agrees to pay, in addition to the amount due, any and all costs incurred by QRS Recycling as a result of such action, including, to the extent permitted by law, reasonable attorney's fees. No liquidated damages will be assessed to Customer, however, if the Customer ceases to operate a recycling program. QRS Recycling agrees to pay all rebates due Customer within 60 days of the end of the month in which recyclables were purchased. No charges shall be assessed by QRS Recycling to Customer under the terms of this agreement, except as prescribed for early termination without required prior notice. The recycling material to be serviced by QRS Recycling is described and agreed by both parties. If the materials are not in the proper form or have unlike materials mixed, or trash within the load (contamination), QRS Recycling will notify customer and give customer time to remedy the situation, or charge appropriately to dispose of materials. Any expense or charges to dispose of the contaminated material will be the responsibility of the customer. Customer acknowledges that it has the care, custody, and control of equipment owned by QRS Recycling on a daily basis, except when it is being physically handled by employees of QRS Recycling. Therefore, customer expressly agrees to indemnify and hold harmless QRS Recycling from and against any and all damages, penalties, fines, and liabilities resulting from or arising in any manner out of customer negligent or intentional misuse of any equipment furnished under this Agreement. Customer agrees to provide clear access to equipment on collection days and warrants that any right of way provided by Customer for road access is sufficient to bear weight of all of QRS Recycling equipment and vehicles reasonably necessary to perform the service herein, as long as QRS Recycling stays on City owned property. This Agreement is a legal binding contract on the part of QRS Recycling and Customer and their respective heirs, successors, and assigns with the terms and conditions set out herein. However, neither party hereto shall be liable for its failure to perform or delay in performance due to contingencies beyond its reasonable control including, but not limited to, strikes, riots, fires, discontinuances of business and acts of God. Art 6,46 REPUBLIC SERVICES 1 r: CITY of CAPE GIRARDEAU September 4, 2019 401 Independence Cape Girardeau, MO 63703 To Whom it May Concern: We write regarding the Recycling Processing Agreement, dated March 2, 2010 and the { Amendment thereto, dated June 23, 2011, between Republic Services Environmental LLC, ("Republic") and the City of Cape Girardeau. This letter serves as Republic's notice to terminate, with an effective termination date of November 1, 2019. It is unfortunate we have come to this point, but, as you are aware, Republic is currently serving the City at a loss, and can no longer continue to endure this hardship. Without the City accepting a rate increase to reflect the current recycling market, we are no longer able to perform under the contract. The entire recycling industry has changed and the cost to perform under the Agreement and provide service to the City has significantly increased. The consideration that induced Republic to enter into the Agreement in 2011 is no longer present. As you know, the recycling industry and commodity market for recyclable materials has drastically changed due primarily to the National Sword initiative implemented by China. Effective March 1, 2018, China imposed a new quality standard for all paper and paperboard materials, even those that are not banned (such as old newspaper (ONP) or old corrugated containers (OCC)), limiting contamination to 0.5 percent. While higher grades of fiber have been allowed to continue to move { through China, in June of 2018, the China State Council indicated that they are likely to ban all types of scrap imports by the end of 2020. To make matters even worse, in August 2018, China imposed a 25% duty on imports of U.S. scrap metal, waste paper and plastics. Additionally, Vietnam and Malaysia, for fear that they will become a dumping ground, have stopped issuing import permits for scrap imports. China's actions have disrupted the recycling industry on a global level, leading to lower or negative prices,thereby decreasing revenues. Even more importantly,the stringent.5 percent contamination standard has forced recycling facilities all over the nation to slow down processing lines, add sorters and increase capital expenditures,thereby reducing throughput and increasing costs. Because of China's drastic actions,some materials have not been able to find an economically viable end market,while some material is being diverted to other countries with increasing shipping costs and lower purchase prices. The bottom line for Republic is that, instead of selling all the commodities we are paying to have about 50%of them recycled. { 6025 Byassee Drive Hazelwood, MO 63042 — 314-731-7663 we want to continue to be a good steward of the environment. To do that, we asked that the City partner with us, so we could continue to serve your community. Unfortunately, the City declined our request and we are left with no choice than to terminate the contract. We simply cannot continue to perform under an agreement that requires us to perform at a loss. We believe our pricing is appropriate and reflects the current market. Should the City engage a new service provider,we strongly believe the rates offered would be in line with our updated pricing. 1 4- 11 We appreciate our partnership with the City. Should the City decide to accept our new pricing, we are more than happy to withdraw our termination notice and continue to be your long-term processing partner. Sincerely, Brent Batliner General Manager 1 II f j F 1 [ 6025 Byassee Drive Hazelwood, MO 63042— 314-731-7663