COLLECTION CONTRACT
This Agreement made and entered into on this the _____ day of ________________,
20___, by and between The City of _____________, ___________, duly acting by and through
its City Board of Aldermen and Mayor, hereinafter referred to as "City", and Waste Management
of _____________, Inc., hereinafter referred to as "Company"
W I T N E S S E T H:
WHEREAS, City is desirous of securing the services of the Company to operate a waste
hauling service for the City; and
WHEREAS, the Company desires to provide the operation of a waste hauling service for
the City;
NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:
I.
Company covenants and agrees to operate a waste hauling service for City in compliance
with all rules, regulations and restrictions imposed by the Public Health Department of the State
of _______________.
II.
The term of this Agreement shall be for a period beginning promptly after receipt by
Company of the City Board of Aldermen approval of this Agreement ("Commencement Date"),
provided however, and shall expire at ___________ ____________ on __________, 20_____.
However, the term of this Agreement may be automatically extended if within _______ (___)
days prior to the expiration hereof City gives notice to Company in writing of its intention to
extend the contract.
III.
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The services to be provided by Company hereunder shall be for the twice per week
(Tuesday and Friday) mailbox collection of all household garbage, trash and white goods
(rendered safe for collection by Company) generated by the residential dwellings in the
incorporated areas of the City. By current house count, 796 dwellings shall be serviced by
Company under this Agreement. Company may request annual house counts to be conducted by
Company (and City representatives if they so elect) and the compensation due Company shall be
increased by the increase in the number of residences serviced hereunder. In addition the
Company shall upon request supply limited commercial account collection (up to 5, 40 gallon
bags/cans per pick-up) on terms agreeable to Company and such commercial accounts.
Company shall not be required to collect any regulated hazardous waste under this Agreement.
In addition, dumpsters will be provided by Company free of charge to City Hall (8 yd.)
and the Police Department (4 yd.) and will be serviced twice per week and once per week,
respectively.
In addition, a dumpster (20 yd.) and trash boxes (2 such boxes per Port-o-Let unit
ordered by City) will be provided, free of charge, to the City for the removal of all solid waste
during the City's _________ Day festivities.
Company shall also provide at City's election for the implementation of a pilot recycling
program in the City. This program will consist of twice per month recycling of recyclables, as
agreed between the parties, generated by up to 500 City residential units over an agreed term.
Company shall be responsible for providing all containers and advertisement expense, and shall
provide the necessary personnel and equipment to implement such program. All proceeds from
the sale of recyclables under this pilot program will be returned to the City. The terms and
conditions of this recycling program may be expanded by the mutual agreement of the parties.
Company will not use any garbage collection vehicles of over 20 yards in capacity in the
performance of this Agreement.
IV.
As compensation for this service, City shall pay to Company as follows:
1) $______ per month per residential unit; and
2) $______ per month per pilot program residential unit.
Said payments shall be made on a monthly basis on or before the fifteenth (15th) day of
each month, following the month for which service is rendered under the terms of this contract.
The Compensation payable by the City to the Company shall be annually increased by
the same percentage as the Consumer Price Index, U. S. Average, for all Items Portion, New
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Series, for Urban Wage Earners and Clerical Workers, published by the Bureau of Labor
Statistics, U. S. Department of Labor ("C.P.I.") shall have increased during the preceding twelve
months. In the event the U. S. Department of Labor Bureau of Labor Statistics ceases to publish
the C.P.I., the parties hereto agree to substitute another equally authoritative measure of change
in the purchasing power of the U. S. dollar as may be then available so as to carry out the intent
of this provision. The initial rate adjustment shall take effect on the first anniversary date of the
Commencement Date, and rate adjustments for succeeding contract years shall take effect on the
successive anniversary dates of the Commencement Date during each succeeding year
throughout the term hereof. Monthly payments due by the City to the Company shall be
adjusted to compensate for such annual rate increases.
V.
The Company shall indemnify, defend and hold harmless the City against any claims,
actions or suits including court costs and reasonable attorney's fees, arising out of the Company's
and its employee's acts in providing the services herein required or in Company's and its
employees' operation of its equip ment in connection with the performance of such services.
During the term of this contract, Company shall maintain in full force and effect the
following insurance;
COVERAGE LIMITS OF LIABILITY
Workmen's Compensation Statutory
Employer's Liability $500,000.00
Bodily Injury Liability $500,000.00 each occurrence
except Automobile $500,000.00 aggregate
Property Damage Liability $500,000.00 each occurrence
except Automobile $500,000.00 aggregate
Automobile Bodily Injury $500,000.00 each person
Liability $500,000.00 each occurrence
Automobile Property Damage Liability $500,000.00 each occurrence
Excess Umbrella Liability $500,000.00 each occurrence
All waste collected by Company shall be disposed of by Company at the __________
Landfill. The disposal charges applicable to the solid waste which is the subject matter of this
Contract is included within the compensation and is subject to increase as addressed in Section
VII.
VII.
Company shall be entitled to an increase in compensation to offset any increase to
disposal costs and charges at the current, or any approved landfill used for disposal during the
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term hereof. Currently the Company is directed to use the __________ Landfill in _________,
__________ where the current disposal charge is TWO and 60/100 Dollars ($2.60) per cubic
yard. In addition, in the event Company becomes liable for any governmental tax or surcharge
upon collection or disposal of such garbage, such tax or surcharge shall be the responsibility of
the City to be paid along with Company's normal monthly compensation. In the event the
__________ Landfill becomes unavailable for use by the Company hereunder, the City shall
designate an alternate duly permitted disposal facility for use by the Company and the
compensation payable to the Company shall be increased, if necessary to offset the impact of
higher disposal charges and/or transportation costs.
VII.
GENERAL PROVISIONS
Amendments to this agreement may be made by Company and City upon approval by
both Company and City to said amendments.
From and after the Commencement Date, Company's performance hereunder may be
suspended and its obligations hereunder excused in the event and during the period that such
performance is prevented by an Act of God or such other cause or causes beyond the reasonable
control of Company unless such cause or causes is a result of action or nonaction by Company.
The following holidays may be observed by Contractor on which days the Sanitary
Landfill may, in the discretion of Contractor, be closed: New Year's Day, Thanksgiving Day and
Christmas Day.
Except as otherwise provided herein, if either party breaches this Agreement or defaults
in the performance of any of the covenants or conditions contained herein for fifteen (15) days
after the other party has given the party breaching or defaulting written notice of such breach or
default, unless a longer period of time is required to cure such breach or default and the party
breaching or defaulting shall have commenced to cure such breach or default within said period
and pursues diligently to the completion thereof the other party may: (a) terminate this
Agreement as of any date which the said other party may select provided said date is at least
thirty (30) days after the fifteen (15) days in which to cure or commence curing; (b) cure the
breach or default at the expense of the breaching or defaulting party; and/or (c) have recourse to
any other right or remedy to which it may be entitled by law, including, but not limited to, the
right for all damage or loss suffered as a result of such termination. In the event either party
waives default by the other party, such waiver shall not be construed or determined to he a
continuing waiver of the same or any subsequent breach or default.
This Agreement shall be governed by the laws of the State of ________.
This Agreement shall inure to the benefit of and be binding upon the successors and
permitted assigns of the parties hereto.
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IN WITNESS WHEREOF, this Agreement has been executed in duplicate original on
the day and in the year first above mentioned. The execution by City is made pursuant to the
authority granted by action of the Board of Aldermen of the City entered at the regular meeting
of said Board held on the _____ day of _________, 20________.
City of __________, ___________
BY:
ITS:
WASTE MANAGEMENT OF ____________, Inc.
BY:
ITS:
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