City Council Agenda Packet 01-27-2025 Special1. Agenda Documents
Documents:
SPECIAL MEETING AGENDA - 1-27-25.PDF
CURRENT REFUSE CONTRACT.PDF
AGENDA
MONTICELLO CITY COUNCIL SPECIAL MEETING
Monday, January 27, 2025 — 5:00 p.m.
Monticello Community Center (Academy Room)
Call to Order
2. 5:00 p.m. Golf Course Rd. Trail Right Of Way Contingency Planning
3. 5:45 p.m. Refuse Contract Discussion
4. Adjournment
SOLID WASTE AND RECYCLABLES COLLECTION & DISPOSAL CONTRACT
THIS SOLID WASTE AND RECYCLABLES COLLECTION AND DISPOSAL
CONTRACT ("Contract") is made and entered into this 23rd day of March 2020, by and between the City
of Monticello, Minnesota (hereinafter called "City") and Advanced Disposal Services Solid Waste
Midwest, LLC, a Wisconsin limited liability company (hereinafter called "Contractor").
WITNESETH:
WHEREAS, the City recognizes that it is desirable that provisions be made for the regular and
efficient collection of solid waste and recyclables within the legal boundary limits of the City; and
WHEREAS, the City desires that a single, independent contractor be utilized to provide the
majority of Solid Waste and Recyclables collection services within the legal boundary limits of the City
and further desires to enter into a contract granting Contractor the exclusive right to collect Solid Waste
and Recyclables within the City limits.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties agree as follows:
1. Definitions: The following teens and definitions shall apply in the interpretation of this
Contract:
A. "ADDroyed Container" shall mean the Solid Waste and Recyclable carts provided
by the Contractor.
B. "Contractor" shall mean Advanced Disposal Services Solid Waste Midwest,
LLC, a Wisconsin limited liability company.
C. "City" shall mean the City of Monticello, a Minnesota municipality.
D. "Curbside" means the location that is within at least four (4) feet of the curb,
paved surface of the public road, closest accessible public right-of-way, or other such location designated
by the Contractor that will provide a safe and efficient accessibility to the Contractor's personnel and
vehicles for the placement of Carts for collection pursuant to the terms of this Agreement. For purposes of
this Agreement, public road or public right-of-way means a road owned and maintained by the City or
special district, or a road on private property for which an easement has been granted to the public and such
road is constructed and maintained to a standard whereby access is available by the Contractor's vehicles.
E. "Household Unit" shall mean all single family residences, apartments up to three
(3) units, or condominium units, such that a single family dwelling shall be counted as one Household Unit,
a two family dwelling shall be counted as two Household Units and a three family dwelling shall be counted
as three Household Units.
F. "Multi -Family Dwelling" shall mean a Household dwelling unit consisting of four
or more Household dwelling units.
G. "Recvclables" shall mean only those materials that may be repurposed or
processed and marketed in local markets for a positive value (net of all costs and expenses). The term
"Recyclable Materials" shall not include materials which are contaminated by waste materials which make
processing and marketing of such materials impractical, cost prohibitive or unacceptable for processing in
3
local markets. Subject to the foregoing, Recyclables include single stream recyclable materials limited to
plastic (#147), glass containers, cardboard, newspaper, mixed paper, tin, steel and aluminum cans.
H. "Solid Waste" shall mean nonhazardous municipal solid waste materials
generated in the normal and ordinary course by Household Units within the City. The tern "Solid Waste"
specifically excludes construction and demolition debris, large appliances and appliances containing freon,
furniture, cement, tires, electronic waste, batteries, oil, special waste, hazardous waste or other types of
materials which require special handling and disposal or are not pennissible for disposal in a solid waste
landfill by any federal, state or local laws, rules and regulations.
2. Term: The term of this Contract shall commence on June 1, 2020 (the "Commencement
Date") and expire on May 31, 2025. Thereafter this Contract shall automatically renew for successive
twelve month renewal terms unless and until either party provides at least sixty days prior written notice to
the other party of its intent to terminate at the end of the then current term.
3. Exclusivity: The work under this Contract shall consist of the collection of Solid Waste
and Recyclables by Contractor from Household Units within the City (the "Services"), During Term of this
Agreement, Contractor shall provide the Services and in accordance with the terms of this Agreement, and
shall have the sole and exclusive right to provide the Services throughout the City to residential residences
with 3 household units or less. The City hereby grants, and the Contractor hereby accepts, the sole and
exclusive Agreement, license and privilege to provide the Services during the Term of this Agreement and
all renewal terms thereto. All such rights shall be exclusive to the Contractor and no other person or entity
except the Contractor may offer or provide the Services as contemplated hereby and City shall take all
action necessary to enforce this provision. The City further agrees that so long as Contractor is not in default
hereunder, it will not enter into any agreement or understanding with any other person or entity for
perfonnance of the Services contemplated hereby during the Term hereof.
4. Solid Waste and Recyclables Collection Services: All Solid Waste and Recyclables
subject to collection by Contractor hereunder shall be placed in Approved Containers at Curbside by the
Household Unit. On collection day Household Units shall provide unobstructed access to the Solid Waste
and Recyclable containers. Contractor shall be responsible for and shall clean up any materials spilled by
Contractor in the course of its collection. The Household Unit shall be responsible for and shall clean up
any materials spilled not as a result of Contractor's collection or due to overfilling of the Approved
Containers, Household Units shall place only bagged Solid Waste and loose Recyclables in Approved
Containers designated for Solid Waste or Recyclables as the case may be. Approved Containers shall be
placed by Household Units at Curbside no later than 7:00 a.m. on the date of collection. Household Units
shall not overload Approved Containers either by weight or volume. Solid Waste collection service shall
occur once every week and Recyclables Collection Services shall occur once every other week At the
City's discretion, Contractor shall, at no additional charge, "tag" and refuse collection of Solid Waste
containers that visibly contain recyclables or when directed by the City.
5. Bagged Leaf Collection. Twice each year during the term, Contractor shall collect leaves
bagged in biodegradable bags and transport them to the City's compost facility or the Wright County
Compost Facility. Contractor shall not charge typical Municipal Solid Waste taxes or surcharges on the
value of this work. Contractor shall report the weight of each load taken to the City's leaf compost facility.
The date and time of the pickups shall be as mutually agreed to by the Contractor and the City. Contractor
shall not be required to collect and shall report any mixtures of leaves and garbage as they occur. The City
shall notify the Household Unit so that such practice does not continue.
6. Eauinment and Time of Pickup: Solid Waste collection service shall occur between 7:00
a.m. and 7:00 p.m. once every week. Recyclables collection shall occur on the same day as Solid Waste
collection service once every other week. Contractor's equipment shall be clearly marked with
Contractor's name and shall be utilized in a manner to prevent the blowing or scattering of materials onto
public streets or properties.
7. Contractor Provided Aunroved Containers. Contractor shall furnish one (1) 95-gallon
Solid Waste cart and one (1) 95-gallon Recyclables cart (each an Approved Container) for every
Household Unit receiving the Services contemplated by this Agreement. All Approved Containers
furnished by Contractor for use by Household Units, shall while in the possession and control of the
Household Unit, remain the property of Contractor and neither the Household Unit nor the City shall have
any ownership rights to such Approved Containers. Household Units shall use Approved Containers only
for the purposes intended and shall not make any alterations or improvements. Household Units shall be
responsible for loss or damage to Approved Containers in excess of ordinary wear and tear. In the event
a Household Unit requests a replacement container due to theft or damage beyond ordinary wear and tear,
Contractor shall provide additional containers and charge the Household Unit directly for the cost of
thereof at a rate of $75.00 per Approved Container. If a new resident requests a replacement container due
to a size preference, Contractor shall provide a replacement container at no additional charge.
8. Disposal of Solid Waste: Contractor shall deliver all Solid Waste collected hereunder to
a licensed and approved disposal site as detennined by Contractor. Fees for disposal are included in the
rates set forth in Section 10 of this Contract. In the event the cost of disposal at such facility increases or
the facility is not available for disposal or the City designates a different facility for disposal then contractor
may request to renegotiate the contract.
9. Recvclables Processing. Contractor shall deliver all Recyclables collected hereunder for
processing to a facility of Contractor's choice. Any proceeds from the sale of Recyclables shall remain
the property of Contractor.
10. Rates:
(a) Rates. The initial rates charged by Contractor for Services provided pursuant to
this Contract are as follows:
Jun-19
Waste $ 8.28
Recycling $ 2.99
Total $ 11.27
$ increase (monthly cost)
% Increase (monthly cost)
Jun-20
Jun-21
Jun-22
$ 9.08
$
9.41
$
9.73
$ 4.20
$
4.52
$
4.85
$ 13.28
$
13.93
$
14.58
$ 2.01 $ 0.65 $ 0.65
17.8% 4.9% 4.7%
Jun-23 Jun-24
$ 10.06 $ 10.38
$ 5.17 $ 5.50
$ 15.23 $ 15.88
$ 0.65 $ 0.65
4.5% 4.3%
NOTE: Rates will be adjusted in option years post May 31, 2025 by the Sewer/Water/Trash Index
with a minimum increase of 2% and maximum increase of 4%.
(b) Recvcline Rate Adiustments. The rates charged by Contractor for Recyclables
collection Services shall be adjusted on the anniversary date of this Contract based on any changes in the
Average Monthly Net Cost for the prior year.
(c) Monthly Net Cost. Contractor shall provide monthly data to enable the calculation
of the average monthly net cost per ton to deliver collected Recyclables to the disposal or processing facility
(the "Monthly Net Cost"). At the City's request Contractor shall provide supporting documentation for the
data. The Monthly Net Cost is the sum of Transload Cost, Transportation Cost, and Processing Fee, less
Commodity Value Received. For the purpose of this calculation, "Transload Cost" means the cost per ton
of transloading the material at the St. Cloud Transfer Station for the immediately preceding calendar month;
"Transportation Cost" means the actual cost per ton of transportation from the St. Cloud Transfer Station
to the recyclables processing facility for the immediately preceding calendar month; "Processine Fee"
means the actual cost per ton of processing of the Recyclable Materials at the processing facility for the
immediately preceding calendar month, and "Commodity Value Received" means the actual value received
from the processing facility for the immediately preceding calendar month. The "Average Monthly Net
Cost" for a year is the sum of the Monthly Net Costs during an operating year divided by 12. An operating
year is defined as June — May.
(d) The "Cost Change" for a year is the Average Monthly Net Cost for the immediately
preceding year minus the Average Monthly Net Cost for the year prior to the immediately preceding year.
The "Surcharge Amount" is an amount equal to $0.07 for every whole $3.00 of Cost Change. For example,
a Cost Change of $20.00 would result in a Surcharge ,Amount of $0.42; and a Cost Change of -$7.00 would
result in a Surcharge Amount of-$0.14. If, and only if, the Average Monthly Net Cost for 2023 is greater
than $100.00, then the City may, within sixty (60) days receipt from Contractor of the data and
documentation necessary to calculate the Average Monthly Net Cost, notify Contractor of the City's
election to trigger a renegotiation. If the City timely provides notice of an election to renegotiate, the City
and Contractor shall attempt, in good faith to reach an agreement regarding Service Fees. If the parties are
unable to reach an agreement regarding Services Fees within 30 days after the City's election to trigger
renegotiation then the City may terminate the Contract thirty days thereafter.
(e) Other Rate Adiustments. The rates shall be increased from time to time during the
term of this Contract to reflect any increased costs actually incurred by Contractor due to any change or
interpretation in law, rule or regulation, which increases shall be evidenced by documentation provided by
Contractor to the City upon request. Contractor may petition the City for any other rate adjustments from
time to time on the basis of unusual changes in its costs of doing business. In such event Contractor shall
submit a written request for such rate adjustment, which request shall not be unreasonably denied and shall
be effective from the date of Contractor's request to the City.
I I . Fuel Surcharge,: Contractor may, on a monthly basis, add a Fuel Surcharge to the City's
invoice for services rendered hereunder (the "Fuel Surcharge"). The Fuel Surcharge will be based on the
national on -highway diesel price as published on the first Monday of every month by the United States
goverrnnent, which data is available on the internet at lim, nt��.ri.i.due.� v� ou)U mliILtlu i�dirscLas .
The Fuel Surcharge will be based on rolling average prices for the prior month with a baseline fuel cost of
$3.75 per gallon. The Fuel Surcharge shall be calculated as follows: for every $0.10 increase in the average
price of fuel for the prior month over $3.75 per gallon, the total invoiced amount shall be increased by
0.5%. For example, if the average price of fuel for the prior month is $3.95 per gallon, then the Fuel
Surcharge would be 1 % of the total amount invoiced. No further Fuel Surcharge will be added if the fuel
price exceeds $4.75 per gallon. Provided however, if the average fuel price exceeds $5.50 per gallon for at
least three out of twelve months then Contractor may renegotiate the Contract.
12. Pavrnent to Contractor: Contractor shall submit invoices directly to the City on a
monthly basis for services rendered based on the number of Household Units within the City. As of the
commencement of this Contract, the City represents to Contractor that the number of Household Units
within the City is approximately 4,500 (the "Household Unit Count"). In the event of any dispute regarding
the Household Unit Count, a physical unit count (conducted jointly by both parties) of the number of
Household Units within the City shall govern. The City shall pay Contractor the full amount invoiced,
regardless of the amount actually collected by City from the Household Units, within thirty (30) days of the
date of Contractor's invoice.
13. Service Issues: The Contractor will answer complaints or questions from the public
concerning service issues. As such Contractor shall provide a manned telephone answering service from
8:00 a.m. until 4:30 p.m. central time Monday through Friday, excluding holidays, for the purpose of
receiving complaints and other calls concerning Collection Services provided by Contractor. The
Contractor shall act upon all reasonable and valid complaints within forty-eight (48) hours of receipt of
the complaint by Contractor.
14. Licenses and Taxes: The Contractor shall obtain and keep current all licenses and permits
required by applicable law for the performance of the services contemplated herein. Any increases in the
cost of such licenses and permits or the cost of any newly required license or permit during the course of
this Contract will be the responsibility of the City and will be billed by Contractor as incurred.
15. Indemnification: Contractor will indemnify, defend and hold harmless the City, its
officers, agents, and employees (the "City Parties") from and against any and all suits, actions, legal
proceedings, claims. demands, damages, costs, expenses, including reasonable attorney's fees
("Damages'"), arising out of the negligent act or failure to act of the Contractor its officers, agents, and
employees in the Contractor's performance of this Agreement; provided however, nothing herein shall
require Contractor to indemnify, defend or hold the City Parties harmless from any such Damages that
result from, are due to or arise in connection with the acts of, or any failure to act by, any City Party. To
the extent permitted by applicable law, the City will indemnify, defend and hold harmless the Contractor,
its parent corporation, affiliates and their respective officers, directors, agents, members, servants,
representatives and employees from and against any and all Damages, arising out of the negligent act or
failure to act of the City Parties or any breach by the City of any covenant, agreement, obligation,
representation or warranty set forth herein. The Contractor shall provide sufficient insurance coverage at
all times during the term of this Contract.
I6. Insurance: The Contractor shall at all times during the Agreement maintain in full force
and effect Employer's Liability, Workmen's Compensation, Public Liability, and Property Damage
Insurance. The Contractor agrees to furnish the City certificates of insurance or other evidence satisfactory
to the City to effect that such insurance has been procured and is in force upon request. Contractor shall
carry the following types of insurance in at least the limits specified below:
COVERAGES
Workers' Compensation
Employer's Liability
Bodily Injury Liability
Except Automobile
Property Damage Liability
Except Automobile
Automobile Bodily Injury
Liability
Automobile Property Damage Liability
Excess Umbrella Liability
LIMITS OF LIABILITY
Statutory
$500,000
$500,000 each occurrence
$1,000,000 aggregate
$500,000 each occurrence
$500,000 each occurrence
$500,000 each person
$1,000,000 each occurrence
$500,000 each occurrence
$5,000,000 each occurrence
17. Holidays: The following holidays shall be observed by the Contractor (each a "Holiday"):
New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.
If a normally scheduled collection day falls on a Holiday, then Contractor shall provide Collection Services
on the next business day or Saturday following the Holiday or at such time as mutually agreed to between
the Contractor and the City.
18. Force Maieure: Contractor shall be excused from performance hereunder if precluded as
the result of an Act of God, authority of laws, strikes, lockouts, labor disputes, riots or other causes beyond
its control (a "Force Maieure Event") and shall not be considered in default. The rates set forth herein are
for materials generated in the normal and ordinary course. If an event results in Solid Waste, Recyclables
or Yard Waste being generated in excess of that in the normal and ordinary course, Contractor and the City
will negotiate in good faith rates applicable to additional work and collection.
19. Notices: All notices or other communication to be given hereunder shall be in writing and
shall be deemed given when mailed by United States Certified Mail, addressed to:
If to the Citv:
City of Monticello
Attn: City Clerk
505 Walnut Street
Monticello, MN 55362
If to the Contractor:
Advanced Disposal Services Solid Waste Midwest, LLC
Attn: General Manager or Municipal Market Manager
2355 12`' Street SE
St. Cloud, MN 56304
with a copy to:
Advanced Disposal Services
Attn: General Counsel
90 Fort Wade Road; Suite 200
Ponte Vedra, FL 32081
20. Amendments: This Contract constitutes the entire agreement of the parties regarding the
subject matter hereof and may only be amended or modified in writing by mutual written agreement of both
parties.
21. Default: If either party breaches this Contract or defaults in the performance of any of the
covenants or conditions contained herein for thirty (30) 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, any nonbreaching or
defaulting party may: (i) terminate this Contract as of any date which said other party may select provided
it is after the thirty day notice period and cure period; or (ii) pursue any other right or remedy to which it
may be entitled through binding arbitration as provided herein. No remedy is intended to be exclusive of
any other remedy but each and every such remedy shall be cumulative. Specifically excluded from both
parties' right to any damages are incidental, consequential, indirect and punitive damages.
22. Dispute Resolution. The parties agree to participate in good faith to resolve any dispute,
claim or controversy ("Disputes") arising out of or relating to this Contract. If the Dispute is not resolved
by negotiation either party may file an action in Minnesota Circuit Court, Wright County. The laws of the
State of Minnesota shall apply to any dispute and the parties stipulate that venue is appropriate in Wright
County.
23. Indevendent Contractor: Contractor is in all respects an independent contractor and is
in no respect an agent, servant, or employee of the City.
24. Severability. If any term, covenant, condition or provision of this Contract shall be
construed to be illegal, invalid or unenforceable, the remainder of this Contract shall not be affected thereby,
and the illegal, invalid or unenforceable term, covenant, condition or provision shall be deemed stricken
and deleted herefrom to the same extent and effect as if never incorporated herein, but all other terms,
covenants, conditions or provisions of this Contract shall continue in full force and effect.
25. Revorts. At the City's request, Contractor shall prepare periodic reports consisting of a
summation of the amount of materials collected pursuant to this Contract.
IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed on the day
and year first above written.
CITY OF MONTICELLO, MN
BY
ltsI-4
Al -TEST: ' I • �� (' ,
V (City Administrator/Clerk
ADVANCED DISPOSAL SERVICES SOLID
WASI'TF r%1 D%% S LLC
BY
Dan D aard.. Regio, al Vice President
I
Date '//Z )Zwo