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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