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HomeMy WebLinkAboutMid Valley Disposal - LNG Fuel Dispensing ServicesSERVICES AGREEMENT BETWEEN THE CITY OF FRESNO AND MID VALLEY DISPOSAL LNG FUEL DISPENSING SERVICES THIS AGREEMENT for LNG Fuel Dispensing Services ("Agreemeni is made by aid between the City of Fresno, a municipal corporation ("City) and Mid Valley Disposal ("Franchisefl (together sometimes referred to as the "Parties") as of 12JOY111(the 'Effective Date'). RECITALS A. Celt' and Franchisee have entered into that certain Franchise Agreement dated November 1, 2011 ("Franchise Agreement) pursuant to which Franchisee will provide solid waste, recyclable materials, and organic materials collection services In a designated service area within the City. R. Pursuant to Sections 8.3.1 and 8,4 of the Franchise Agreement, Ctly and Franchisee have entered into that certain Purchase Agreement, whereby Franchise will purchase from City certain Coy -awned collodion trucks (Trucks") and containers used to polled solid waste, recyclable materials and organic materials within the City. The Pureness Agreement requires met Franchisee take possession of the Trucks prior to December 4, 2411. G The Trucks use Liquefied Natural Gas(LNG)as fuel D. City operates a LNG fueling facility, and Franchisee desires the fight to purchase LNG for me Trucks at City's facilely. NOW, THEREFORE, Rie Parties agree as follows: SECTION 1 - SERVICES. Subject to to terms and conditions set forth In this Agreement, and as authorized by controlling law, the City shall provide to Franchisee the services described and Incorporated herein, at the time and place add in the manner specified therein. SECTION 2 -TERM OF SERVICES The term of this Agreement Shell be for a tern of one (1) year commencing on the Effective Date, but may be efdended by written notice between the parties per Section 9 2 of this agreement. ECTION 3 - SCOPE OF SERVIC 3.1 Location. The City agrees to provide LNG fuel dispensing services at the City owned and operated fueling facittes located at: 2101 'G" Street, Fresno CA 93706 (the "City's LNG Fueling Facility). 32 Hours of Operator. The City will provide fueling services between the hours of 9:00 AM and 6:00 PM, Monday through Saturday. Servlws Agreement Mtween Me City of Fresno and Mitl Valley Disposal 3.3 Automated Fu ino Au rairubu on Hardware The City maintains necessary lualing ccxnputer(s) and associated hardware (ihe'Automated Fueling Hardware") in order to allow automated fueling transactions at the Cdys LNG Fueling Facility. Upon retirement of the vehicle, or termination of this Agreement, the Automated! Fueling Hardware shall be removed from Me Tail and returned to the Gay's possession. Failure to do so shall result in Franchisee being obligated to May to Me City the sum of 5400.00 for each vehicle whose Automated Fueling Hardware is not returned to the City. SECTION 4 -COMPENSATION Franchisee shall pay City for services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from Franchisee to City for services rendered pursuant to this Agreement. City shall submit all invoices to Ne Franchisee in the manner specified herein. Franchisee has no responsibility to pay any sums beyond the compensation set faith in this Agreement. 4.1 Invoices. City shall submit monthly Invoices during the term of this Agreement, setting forth Me cost for services performed and reimbursable costs incurred prior to the invoice date. Invbices shall contain Me following information: • The beginning and ending dates of the billing period; • A detailed statement of all fueling transactions Mat includes vehicle number; • transaction eatedime, and number of gallons dispensed; • Cost of fuel per gallon for the billing period; A detailed accounting of Federal, State and Local taxes to be collected; • The City's Contract Administrator signature. 4.2 Pai by Franchisee. Franchisee shall pay City for Me invoiced amount no later than thirty (30) days after the Franchisee receives Me invoice. 4.3 Pavmna upon Termination In the event Mat the City or Franchisee terminates this Agreement pursuant to Section 9, Me Franchisee shall compensate Me City for all outstanding costs and reimbursable expenses Incurred for work satisfactorily completed as of to date of written notice of termination. City shall maintain adequate documentation to verily costs incurred to Mat date. 4.4 Fueling Service Falls . The Franchisee agrees to pay the City for LNG fuel dispensing services provided to the Franchisee's Trucks at the rates set forth in Section 5 of Mis Agreement. The City will invoice the Franchisee far actual semce(s) provided inamomance with the rates set forth herein. ECTION 5 - PRICING 5.1 Purchase Price— The purchase price paid by Franchisee for LNG purchased from the Guys LNG Fueling Facility shall be the sum M the following' 5.1.1 The price paid by City for the LNG, together with all per gallon payment obligations to Chad parry fuel providers Incurred by City In receiving the Services Agreement between the City of Fresno and Mid Valley Disposal LNG, including but not limited to all delivery charges and costs for liquefact'wn; 5.12 All applicable Federal, State, and local laxii and 5.1.3 The cost to provide station maintenance, fueling personnel, automated transaction hardware. and support servlees. The cost for all such maintenance, hardware and other services (apart Tom the cost of fuel. fuel deliveryand liquefaction described in section 5.1.1) for the first year of this Agreement shall be $0.25 per gallon. This price component will be adjusted based on recalculation of station operating and maintenance cost prior to each annual extension to this Agreement. 5.2 Federal Incentive for Alternative Fuel The Safe, Accountable, Flexible. Efficient Transportation Equity Act provides an incentive when LNG is used as `motor vehicle' fuel. The inceni (currently a $0.50 per gallon rebate) a provided to businesses, individuals, and tax-exempt entities that sell or in some Cases, use Me fuel. Upon receipt of rebate by the City, if any, Me City shall reimburse to the Franchisee the amount of the tax rebate per gallon multiplied by the number of gallons purchase during the tax reporting period, In the form of a credit against the outstanding balance of the purchase price owed the City by the Franchisee. SECTION 6 - FUEL OU9LJTY SPECIFICATIONS 6.1 The LNG fuel supplied shall meet or exceed all current and Cummins natural gas engines. 6.2 The liquid natural gas (LNG) fuel furnished shall meet the following minimum specifications: Methane cement: minimum 9T%. Ethane content: maxlmum.2i Nitrogen content: maximum 3%. SECTION T - STATUS OF CRY 7.1 independent Contractor. At all times during the term N this Agreement. City shall be an independent contractor and shall not be an employee of Franchisee. Franchisee shall not have Me right to control the means by which City accomplishes services rendered pursuant to Mid Agreement. 7.2 Not an Adept. Except as Franchisee may specify in writing, City shall have no authority, express or implied to act on behalf of Franchisee in any capacity whatsoever as an agent. Cry shall have no authority, express or Implied pursuant to this Agreement to bind Franchisee to any obligation whatsoever. Services Agreement between the City of Fmsnn and Mid Valley Disposal SECTIONS -GOVERNING LAW The laws of the State of California shall govern this Agreement. SECTION 9 - TERMINATION AND MODIFICATION. 9.1 Termination. City and Franchisee may terminate this Agreement at any time and without cause upon the delivery of 30 days written notification to the other Party. In me event of termination, City shall be entbled to compensation for the services pedortnetl to the effective date of termination, and Franchisee shall retum me Automated Fueling Hardware as recipient by Sari 3.3, 9.2 Extenslons. The Parses may extend this Agreement only by a writing signed by the Contract Administrator of each Party as defined in section 11.8 of this agreement, and consistent with the C9y's constitutional and local law requirements, 9.3 Amendments. The. Parties may amend this Agreement only by a writing signed by the Contract Administrator of each Party as defined in section 11.8 of this agreement, and consistent wfin the City's constitutional and tical few requirements. 9.4 Survival. All obligations arising prior to the termination of this Agreement and all indemnity provisions shall survive the termination of this Agreement. SECTION 10- LIMITATION OF LIABILITY AND EXCLUSION OF WARRANTIES 10.1 Liability. City shall not be liable to Franchisee for, and Framarmat hereby "was and releases City from, any and all loss, liability, fines, penalties, romance, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injury, death at any time and property damage) Incurred by Franchisee or any other person, and from any and all claims, demands and actions In law or equity (including attorneys toes and Ikfgation expenses), arising or alleged to have arisen directly or indirectly out of me performance of this Agreement, including, but not limited to, any sale, dispensing ai use of LNG fuel except for those claims arising tram the active negligence or active misconduct of the City or Its employees and agents. [Dan,I do not see how we can sign an agreement that binds aur Insurers. They would need to agree to this, which we would have to mn by our risk ,management dept at corporate. In no event shall City be liable for any actual, special, direct. indirect, incidental or consequential damages arising and of or related to this Agreement, including, but not limited to, any sale, dispensing antl/or use M LNG fuel, even if CM is advised In advance of the possibllfry or certainty of such tlamages and even If Franchisee assets of immanence anence a failure of essential purpose of any limited remedy recycled in this Agreement Serious Agreement between the Cly of Fresno and Mid Valley Disposal 10.2 Wapentes. Franchises purchases the IAG fuel as -is and City makes no warranty, express, implied or otherwise, including, but not limited to, any Minorities of merchantabilM, or handed for a pedicular purpose. SECTION 11 - MISCELLANEOUS PROVISIONS 11.1 0180WO Resolution al Opportunity to Cure Prior to filing suit for any claim under this Agreement for any alleged breach, the aggrieved party shall first give the other party an opportunity to cure the alleged breach by sending watch notice to the breaching party and giving the breaching party a minimum of thirty (30) days from the receipt of notice to cure the alleged! violation. 11.2 Attorneys' Pees. If a party to Mrs Agreement brings any action, Including an acted for declaratory relief, t0 enforce or rntemret Me provision of this Agreement, the prevailing party shall be shall to reasonable atomeye fees in addition to any other relief to which that party may be entitled. 11.3 Venue. In the event that either may brings any amen against the other under this Agreement, the Parties agree that venue for such action shall be exclusively in Fresno County Superior Court or In the United States Oland Court for the Sudan District d California. 11.A SwerebillN. It a not the intent d either pant to violate any laws of the State of Caleomra or of the Unified Sates. If a coup of competent jurisdiction finds or miss that any provision of this Agreement Is invalid, vord, or unenforceable, the provisions of this Agreement not as adjudged shall remain in lull force and effect The invalidity of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. The parties agree that In the event any provision d this Agreement is held by a court of competent junsdicbon t0 be in contravention d any such laws, then the ponies will enter into Immadlate negotiators to rectify Me offending clause or clauses. The remainder of this Agreement shall remain in lull force and effect. 11.5 Waiver. The failure of any party to enforce, at any time or for any period of time, the provisions hereof shall net be wnstrued as a waiver of such provisions or of the rights of any pant to enforce each and every provision. 11.6 No Implied Waiver of Shall The waiver of any breach of a specific provision d this Agreement does not constitute a wafew of any other breach of that term or any other term 0f this Agreement. 11.7 Successors and Assigns. The provisions of this Agreement shall Insure to Me benefit of and shall apply to and bind the successors and assigns of Me Parties. The requirements and banal of this Agreement may not be assigned, transferred or delegated wthout the writen consent of all parties hereto. This agreement dam not create any third pant rights or interests. Services Agreement between the City of Fresno and Mid Valley Disposal 11.8 Contract Administration. The City's Fleet Manager and the Franchieee's General Manager shall be designated as each partys "Contract Administrator. This Agreement shall be administered by and correspondence shall be directed to these Contract Administrators or their authored designees. 11.9 Notices. Any ended notice to City shall be sent to: City of Fral Fleet Management Division 2101 "G" Street Building "F" Fresno, CA 93106 Any written notice to Franchisee shall be sent to: Mid Valley Disposal 15300 West Jansen Avenue Kerman, CA 93630 Notices shall be delivered personally, by confirmed Facsimile, or by prepaid U.S. Mail. 11.10 Integration and Preeedence of Documents This Agreement, including the Exhibits attached hereto and incorporated herein, Is the entire and integrated agreement between City and Franchisee and supersedes all prior regionafions, representations, or agreements, either warned or oral. In event of a conflict, the hotly of the document shall control the edribits- 11.11 Counterparts. This Agreement may be executed In multiple counterparts, each of which shall he an original and all of which together shall constitute one agreement. Services Agreament between the City of Fresno and Mid Valley Disposal The Parties have executed this Agreement as W Pie Elective Data. CITY OF FRESNO APPROVED AS TO FORM: Ity MID VALLEY DISPOSAL AP VSD: SEPIKALPAKOFF erre Manager APPROVED: MARK SCOTT City Manager ATTEST: YVONNE SPENCE, CMC Cltt CLERK Dyi aN Services Agreement between the City M Fresno and Mid Valley Disl l CCry of r REPORT TO THE CITY COUNCIL AGENDA ITEM NO. 'G COUNCIL MEETING 12/1111 /� �pwrovEon Ry December 1, 2011 4Zl��'Z�. MOaECrflp Cm wuc FROM: PATRICK N. WIEMILLER, Director OepartmeM of Public Utilities /�� BY: JOHN M. WATKINS, Management Analyst 111E/' Department of PUNic Utilities (/ SUBJECT: APPROVE AGREEMENTS WITH ALLIED WASTE (ALLIED) AND MID VALLEY DISPOSAL (MID VALLEY( FOR PROVIDING THEIR TRUCK FLEETS WITH LNG FUEL AT THE CITY'S FUELING FACILITIES Stag recommends that Council approve agreements with Allied Waste (Allied) and Mid Valley Disweal (Mid Valley) for providing their truck fleets with LNG fuel at the City's fueling facilities. EXECUTIVE SUMMARY As part of the exclusive commemial solid waste (CSW) franchise agreements with Allied and Mid Valley, the City sold ifs fleet of CSW trucks to those two (2) companies. Since most of these tmcks require LNG fuel and the C#y has an LNG fueling station at its Municipal Service Center (MSC) on -G- Street in Fresno, the Cry desires to provides LNG Mel to the franchisees at an agreed upon once. By utilizing the City's LNG fueling station rather than going to a private operator, the franchisees are helping the City to recover the costa N the fueling station equipment and stall. These fueling agreements must be in place by December 5, 2011, which Is the contractual date of CSW aervice change from the City to the franchisees. LCNXH:LIR2L•: On September 29, 2011, Council approved exclusive fanchisss for providing commemial solid waste (CSW) collection services within the City of Fresno to Allied and Mk Valley. As part M the franchise agreements with both companies, the City sold its fleet of CSW trucks to them. Since most of these trucks require LNG fuel and the City has an LNG fueling stanch at its Municipal Service Canter (MBG) on `G' Street In Fresno, the City deaires to provide LNG fuel Is the franchisees at an agreed upon price. By utilizing the City's LNG fueling station rather than going to a pnvaM operator, the franchisees are helping the City to recover the costs of the fueling station equipment and staff. It Is recommended that Council approve agreements with Allied and Mid Valley for providing their truck needs with LNG Mel at the City's fueling facilities so that the transition from City CSW co0ection service to franchise CSW collection service can occur as scheduled on December 5, 2011. "onhArocm 1 core aµ o'svw,wn - — REPORT TO THE CITY COUNCIL Approve Agreements With Allied And Mid Valley For Providing Their Truck Fleets AIM LNG Fuel December 1, 2011 Page 2 FISCAL IMPACT By ublubrig the City's LNG fasting station rather Man going to a pMate operator he franchisees are the City to recover the costs of Me fueling station equipment and staff. The franchisees will pay a fuel p is sufficient to pay for all City costs related to the fueling station operations. Also, Nese fuelirg agreements are needed In oncer to fulfill the City's franchise agreements with Allied Valley, which are expected to provide approdmately $2.5 pill an in revenue annually to Me City Gener AVBMmenL Gavvm Agmnmanl for LNG Fuel