HomeMy WebLinkAboutAgenda Report - February 20, 2013 C-09AGENDA ITEM Cw�
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Agreement with USA
Waste of California, DBA Central Valley Waste Services, for Purchase of
Compressed Natural Gas at Municipal Service Center Fueling Station
MEETING DATE: February 20, 2013
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Adopt resolution authorizing City Manager to execute agreement
with USA Waste of California, DBA Central Valley Waste Services,
for purchase of compressed natural gas at Municipal Service Center
fueling station.
BACKGROUND INFORMATION: Recently, Central Valley Waste Services (CVWS) contacted City
staff requesting to fill five new compressed natural gas (CNG) trucks
at the City's CNG fueling station. The initial term of this agreement
is for five years commencing on March 1, 2013. A five-year extension to the agreement is included in the
terms.
The City will charge CVWS the current cost per therm charged by PG&E to Lodi, plus maintenance and
operation costs, administrative fees and a CNG Station depreciation/replacement charge.
FISCAL IMPACT
FUNDING AVAILABLE
Revenue received from the CNG fuel sale will be credited to the Transit and
Fleet Services funds.
Not applicable.
IOA, JQA"-iA E_—
F. Wally eandelin
Public Works Director
FWS/kjc
cc: Fleet Supervisor
APPROVED:
Bartlam, City Manager
K:\WP\COUNCIL\2013\CC—WasteManagement—CNG.doc
2/11/2013
AGREEMENT TO USE CNG FUELING STATION
This Agreement is made and entered into , 2013 ("Effective Date"),
by and between the City of Lodi, a municipal corporation ("Lodi"), and USA Waste of
California, INC., dba Central Valley Waste Services ("CVWS").
WHEREAS, Lodi is the owner of a CNG Fueling Station located at its Municipal
Service Center, 1331 South Ham Lane, Lodi, San Joaquin County, California ("CNG
Facility"); and
WHEREAS, CVWS desires to use the CNG Facility for the purpose of fueling
certain vehicles in its fleet; and
WHEREAS, Lodi has consented to the use of the CNG Facility on the terms and
conditions detailed below.
NOW, THEREFORE, the parties agree as follows:
1. Lodi will permit CVWS to use the CNG Facilities, for the sole purpose of
fueling vehicles in its fleet. CVWS will be charged per gallon of compressed natural gas
and billed monthly for charges incurred, as follows: the current cost per therm (at the
rate charged by PG&E to Lodi) X 1.278 (conversion factor) plus $0.52 per gallon for
maintenance and operation costs, administration fees, plus $0.12 per gallon for CNG
Station depreciation/replacement charge and applicable sales taxes.
Payment by CVWS is due and payable upon receipt of Lodi's invoice and
delinquent if not paid in full within 30 days of receipt.
2. The term of this Agreement shall be from March 1, 2013, through
February 28, 2018 ("Term"). Lodi through its City Manager and CVWS may mutually
agree to a five year extension of this Agreement.
3. Employees of CVWS using the CNG Facilities are required to receive
training by Lodi in the proper use of the CNG Facilities prior to use.
4. In the event that the CNG Facility is damaged by employees or agents of
CVWS during the Term of this Agreement, CVWS agrees to reimburse the City for all
costs incurred by the City that are necessary to return the CNG Facility to its condition
prior to the damage.
5. CVWSacknowledges that no more than two (2) vehicles are permitted at
any one time at the CNG Facility and that vehicles waiting for fueling will be staged at an
area designated by Lodi's Fleet Supervisor or his designee. CVWS also acknowledges
and agrees that Lodi buses and fleet vehicles have priority to fuel at the CNG Facility,
and may move ahead of CVWS vehicles when fueling, if necessary, to meet Lodi's
fueling requirements. Should CVWS' fueling at the CNG Facility deplete the storage
and/or availability of fuel for Lodi buses and fleet vehicles, the number of CVWS vehicles
permitted to fuel may be limited. Lodi's Fleet Supervisor or his designee retains the sole
discretion to limit the number of CVWS vehicles permitted to fuel at the CNG Facility
during the Term of this Agreement.
Page 1 of 3
6. This Agreement may be terminated by either party at any time., upon 10 -
days written notice to the other. Notice shall be given as provided in paragraph 11
below.
7. CVWS agrees to indemnify, defend and hold Lodi harmless from and
against any and all claims, losses, damages, expenses, judgments and costs, including
attorneys' fees and court costs, resulting from CVWS's use of the CNG Facility during
the Term of this Agreement.
8. Upon execution of this Agreement, CVWS shall provide Lodi with
documentation confirming that contract employees of CVWS are to be considered solely
as employees of CVWS while said contract employees are using the CNG Facility or are
on the grounds of Lodi's Municipal Service Center, and further that such contract
employees are not covered under any existing contract that the City of Lodi may have
with CVWS' current transportation contractor or any future transportation contractor that
may be under contract with CVWS.
9. CVWS shall, at its own expense, maintain in full force and effect during
the term of this Agreement a policy of at least $5,000,000 comprehensive public liability
and auto liability insurance against any liability resulting from CVWS' use of the CNG
Facility under this Agreement. Lodi shall be named as an additional insured and all
policies shall be written on a primary basis. CVWS shall be able to furnish a certificate
of such insurance or evidence of coverage provided under any self-insurance program
maintained by CVWS immediately following execution of this Agreement. ,
10. CVWS may not assign its rights under this Agreement to any other party.
11. Any notice required to be given by the terms of this Agreement shall be in
writing signed by an authorized representative of the sender and shall be deemed to
have been given when the same is personally served or upon receipt by express or
overnight delivery, postage prepaid, or in three (3) days from the time of mailing if sent
by first class or certified mail, postage prepaid, addressed to the respective parties as
follows:
To Lodi: City of Lodi
Wally Sandelin, Public Works Director
221 West Pine Street
P.O. Box 3006
Lodi, CA 95241-1910
To CVWS: Central Valley Waste Services
Jason Smith, District Manager
PO Box 241001
Lodi, CA 95241
12. This Agreement contains the entire agreement between the parties
relating to the rights granted and obligations assumed under it. Any amendments or
modifications to this Agreement will not be effective unless contained in a writing signed
by both parties.
Page 2 of 3
13. This Agreement shall be interpreted and construed under the laws of the
State of California. The forum for any dispute arising out of this Agreement shall be the
San Joaquin County Superior Court.
IN WITNESS WHEREOF, this Agreement has been entered into as of the
effective date as written above.
CITY OF LODI
a municipal corporation
By:
KONRADT BARTLAM
City Manager
ATTEST:
By
RANDIJOHL
City Clerk
APPROVED AS TO FORM:
By:
D. STEPHEN SCHWAR
City Attorney
USA WASTE OF CALIFORNIA, DBA
CENTRAL VALLEY WASTE SERVICES
M
ATTEST:
APPROVED AS TO FORM:
IN
Page 3 of 3
RESOLUTION NO. 2013-15
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH
USA WASTE OF CALIFORNIA, DBA CENTRAL VALLEY WASTE
SERVICES, FOR PURCHASE OF COMPRESSED NATURAL
GAS AT MUNICIPAL SERVICE CENTER FUELING STATION
WHEREAS, City staff has received a request from USA Waste of California, dba Central
Valley Waste Services (CVWS), to fill five new compressed natural gas (CNG) trucks at the
City's CNG fueling station; and
WHEREAS, the City will charge CVWS the current cost per therm charged by PG&E to
Lodi, plus maintenance and operation costs, administrative fees, and a CNG Station
depreciation/replacement charge; and
WHEREAS, the revenue received from the CNG fuel will be credited to the Transit and
Fleet Services funds.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to execute an agreement with USA Waste of California, dba Central
Valley Waste Services, for the purchase of compressed natural gas at the Municipal Service
Center fueling station.
Dated: February 20, 2013
I hereby certify that Resolution No. 2013-15 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held February 20, 2013, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Katzakian, Mounce, and Mayor Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Johnson
ABSTAIN: COUNCIL MEMBERS — None
RAND[ JOHL
City Clerk
2013-15