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Contract - CR Transfer - 1989-07-21THIS ,AGREEMENT is made and entered into this ‘,/,S-71- day of -.7vL f/ , 1989 by and between COSTA MESA SANITARY DISTRICT, a governmental agency formed and existing under the Sanitary District Act of 1923 (hereinafter "DISTRICT"), and C. R. TRANSFER INCORPORATED, a California corporation (hereinafter "CRT "). RECITALS: 1. DISTRICT provides for solid waste collection within its geographical boundaries as authorized by an assessment district formed in 1968 pursuant to §5470 - 5474.10, Health & Safety Code and currently in force, and provides for said collection by contract with an independent solid waste hauling contractor, both services performed pursuant to authority granted in the Sanitary District Act of 1923, §6400 -6941, Health & Safety Code. 2. CRT is a California corporation in the business of accepting solid waste from governmental agencies and from solid waste hauling contractors at its trans- fer station for further removal to county landfill sites and is engaged in the separation of recyclable material from solid waste for marketing to users of recycled material. 3. DISTRICT desires to enter into an agreement with CRT which will provide that CRT will accept solid waste fran the DISTRICT contract solid waste hauler and will eventually recover or reclaim not less than twenty -five (25 %) percent of said solid waste for reuse by July 31, 1990'. 4. CRT desires to enter into an agreement with DISTRICT establishing trans- fer rates and processing rates for solid waste it accepts fran the DISTRICT con- tract hauler and to provide for the reclamation of recyclable materials as will be required by law. -1- 5. The parties hereto desire by THIS AGREEMENT to set forth their rights and obligations in connection herewith. NOW, THEREFORE, for and in consideration of the covenants herein contained, performed and to be performed, the parties hereto agree as follows: I DISTRICT warrants and represents to CRT that it has a right to and does provide for solid waste disposal fran residential units only within its geograph- ical boundaries, the commercial and industrial solid waste disposal being provided for by others, and that it will cause all of the solid waste collected regularly by its contract solid waste hauler to be delivered to CRT's site in Stanton, California under terms and conditions as shall hereinafter appear. II CRT agrees to accept directly fran DISTRICT's contract hauler as it is picked up fran DISTRICT's residences on a regular basis all solid waste of what- ever kind and nature and in whatever quantity at CRT's transfer station in Stanton, California and to reclaim recyclable materials fran the solid waste delivered to CRT under terms and conditions as shall hereinafter appear. III The term of THIS AGREEMENT shall be for seven (7) years beginning November 1, 1989 and - ending October 31,-1996 unless sooner terminated for cause and shall be renewed annually for one (1) year periods without further action of the parties hereto so long as CRT shall not be in default hereof. IV THIS AGREEMENT may be terminated for cause by either party hereto and cause shall be determined to be failure on the part. of either party hereto to perform any of the requirements of THIS AGREEMENT where said party has failed to perform after having been given written notice of a default. THIS AGREEMENT may be ter - minted by mutual consent of the parties. -2- V In exchange for accepting all solid waste fran the DISTRICT, at CRT's transfer station, and recycling and reclaiming materials fran said waste as well as providing final disposal at the county landfill sites without cost to DISTRICT, CRT, except as shall hereinafter appear, shall be canpensated as follows: (A) First Year: Twenty -one and twenty hundredths ($21.20),Dollars per ton of material delivered by DISTRICT's contract hauler to CRT's site in Stanton, California, from which solid waste CRT guarantees to recycle at its cost ten (10 %) percent by weight of the gross tons delivered. (B) Years 2 to 10: Nineteen and seventy hundredths ($19.70) Dollars per ton of material delivered by DISTRICT's contract hauler to CRT's site in Stanton, California, fran which solid waste CRT guarantees to recycle or reclaim twenty -five (25 %) percent of the gross tons delivered, by July 31, 1990. (C) Years 2 to 10: In addition to the payment provided for iii (B), Six and ninety hundredths ($6.90) Dollars per ton of material delivered by DISTRICT's contract hauler to CRT's site in Stanton, Californi for mechanical processing of solid waste for recycling and reclama- tion of material fran which CRT guarantees twenty -five (25 %) percent recycled reclamation by weight of the gross tons delivered. VI CRT shall invoice monthly and be paid monthly and shall provide such sup- porting documentation for each invoice as DISTRICT may require including, but not limited to, trip or weight tickets as proof of tonnage billed for and such other documentation as DISTRICT may require to support the requirements of percentages of recycled or reclaimed materials as such percentages may be required by law. -3- VII County landfill cost as of the date of THIS AGREEMENT is established at Thirteen and seventy -five hundredths ($13.75) Dollars per ton, which said cost shall be paid by CRT. CRT will guarantee the price subject to landfill increases, annual CPI, and the usage of either Coyote Canyon, Santiago Canyon or. Brea Canyon. If CRT is forced to use Bee Canyon an additional fee will be negotiated. CRT will not use Bee Canyon unless mandated by the County or same other agency with such authority. In the event of an increase of county landfill tonnage during the life of THIS AGREEMENT, DISTRICT shall pay seventy -five (75 %) percent of said increase and CRT shall, excepting the case of Bee Canyon, bear all costs of transfer from its Stanton transfer station to county landfill sites. VIII CRT shall be entitled to an annual increase in the carpensation paid pur- suant to THIS AGREEMENT for labor performed on behalf of DISTRICT based upon the Consumer Price Index (CPI) for All Urban Consumers for the Los Angeles- Anaheim- Riverside Area (1989 base year) as prepared by the U.S. Department of Labor. Said increase shall be calculated on each yearly anniversary date of THIS AGREEMENT beginning November 1, 1990 and on November 1st thereafter for the balance of the term of of'THIS.AGREEMENT. Said CPI increase shall not exceed. six (6 %) percent nor be less than three (3 %) percent in dollars irrespective of said calculation and shall be calculated on all expenses relating to THIS AGREEMENT except capital improvements. CRT shall provide such records and other supporting materials as may be required by DISTRICT to support CRT's claim for_ increase in compensation. The first CPI increase (November 1, 1990) shall be applied to the net cost of operations of Eight and fifty -five hundredths ($8.55) Dollars per ton for transfer and Six and ninety ($6.90). Dollars per ton for recycling. All future CPI in- creases will be added to the previous year's base net cost of operatons calcula- tion. -4- IX CRT shall become owner of all solid waste when delivered to its site in Stanton, California and shall have the exclusive right to market all recycled material reclaimed from solid waste generated by DISTRICT pursuant to THIS AGREE- MENT and shall be entitled to any and all incase derived from said marketing over which DISTRICT shall have no claim. X CRT will indemnify, defend, and save harmless DISTRICT, its directors, officers, agents, employees, parent, subsidiaries, affiliates, successors, assigns and insurers from and against any and all loss, damage, liability, claims, costs or causes of action which in any way result fran the acts or omissions of CRT, its directors, officers, agents, employees, parent, subsidiaries, affiliates, succes- sors, assigns and insurers in connection with or which in any way relate to, activities in connection with the obligations which are the subject of THIS AGREE- MENT. DISTRICT shall immediately notify CRT of any events, claims or complaints that DISTRICT receives that may result in CRT's indemnification of DISTRICT. XI DISTRICT will indemnify, defend, and save harmless CRT, its directors, officers, agents, employees, parent, subsidiaries, affiliates, successors, as- signs, and insurers fran and against any and all loss, damage, liability, claims, costs or causes of action which in any way result fran any acts or omissions from DISTRICT, its directors, officers, agents, employees, parent, subsidiaries, suc- cessors, assigns, or affiliates in connection with or which in any way relate to the obligations which are the subject of THIS AGREEMENT. CRT shall promptly notify DISTRICT of any claims or complaints that it receives that may result in DISTRICT's indemnification of. CRT. XII CRT shall provide insurance coverage on its operation as follows: -5- (A) Workers' Compensation Insurance: CRT shall take out and maintain during the life of THIS AGREEMENT workers' compensation insurance and, if any woik is sublet, CRT shall require subcontractor similar- ly to provide workers' compensation insurance. CRT agrees to indem- nify DISTRICT for any damage resulting to it fran failure of either CRT or any subcontractor to take out or maintain such insurance. (B) Public Liability and Property Damage Insurance: CRT shall take out and maintain during the life of THIS AGREEMENT such public liability and property damage insurance as shall protect DISTRICT, its elec- tive and appointive board, officers, agents and employees, being public liability and property damage insurance on account of bodily injuries, including death resulting therefrom in the sum of not less than One Million ($1,000,000.00) Dollars combined single limit resulting fran any one accident which may arise fran the operations of CRT in performing the work provided for herein Said public liability and property damage insurance (including automobile) shall be endorsed to name DISTRICT, its elective board, officers, agents and employees as additional insureds with respect to all operations performed by or on behalf of CRT. Said policy shall be endorsed to provide that coverage shall not be reduced or cancelled unless and Until ten (10) days' advance notice of such reeduction and/or can- cellation has been mailed to DISTRICT. Said public liability and property damage insurance (including autamobile) shall include contractual liability insurance applying to liability assumed under THIS AGREEMENT. Said public liability and property damage insurance shall be endorsed to stipulate that suchjnsurance as is afforded to DISTRICT, its elective board, officers, agents and employees shall be primary insurancer and not contributing with any other insurance -6- maintained by DISTRICT. CRT shall furnish DISTRICT, concurrently with the execution hereof, with satisfactory proof of carriage of the insurance required and adequate legal assurance that each car- rier will give DISTRICT at least ten (10) days' prior notice of the cancellation of any policy during the effective period of THIS AGREEMENT. XIII CRT shall obtain at its expense all permits and licenses from any govern- mental agency having jurisdiction over its operations necessary for the perfor- mance of THIS AGREEMENT and shall provide proof that said licenses and permits have been obtained if required to do so by DISTRICT. XIV In the event CRT or DISTRICT, or either of them, institutes action to en- force the terms of THIS PGRE E T, the prevailing party shall be entitled to reasonable attorneys' fees and court costs. XV THIS AGREEMENT shall be interpreted and enforced in accordance with the laws of the State of California. XVI All notices, requests, demands and other communications under THIS AGREE- MENT shall be in writing and shall be deemed duly given (i) if delivered by hand and receipted for by the party addressee, or (ii) mailed by certified or regis- tered mail with postage prepaid, on the third business day after the mailing date. Addresses of the parties hereto are as follows: C. R. TRANSFER INCORPORATED 11292 Western Avenue Stanton, California 90680 Costa Mesa Sanitary District Post Office Box 1200 Costa Mesa, California 92628 -1200. -7- XVII THIS AGREEMENT establishes contract rights that shall be binding upon, and shall inure to the benefit of, the successors, assigns, heirs and legal represen- tatives of. the parties hereto. THIS AGREEMENT may be executed in one or more counterparts, each of which shall constitute an original. No amendment, modifica- tion, termination or cancellation of THIS AGREEMENT shall be effective unless in writing signed by both parties hereto. XVIII . If any portion of THIS AGREEMENT shall be invalidated on any ground by a court of competent jurisdiction, the balance of said AGREEMENT shall continue to be binding upon the parties hereto. XIX Each . of the parties hereto warrants and represents to the other that THIS AGREEMENT has been approved by its board of directors and that its officers are duly authorized to execute THIS AGREEMENT and make the same binding upon the parties hereto. DATED on the day and year above written. COSTA MESA SANITARY DISTRICT ATTEST: ATTEST: ZSecre aryG /2, T /Ls4 ,5,� / C. R. TRANSFER INCORPORATED -8-