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HomeMy WebLinkAboutReso 1-1993 RESOLUTION NO. 1-93 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AUTHORIZING EXECUTION OF AMENDMENT NO. 2 TO THE AGREEMENT FOR SEWAGE TREATMENT PLANT SLUDGE REMOVAL WHEREAS, the services agreement for sludge removal, between the City and the Tillo Products Company ended on December 31, 1992; and WHEREAS, the City desires to renew the agreement in accordance with its terms; and WHEREAS, the City and Tillo agree to make some amendments to the terms of the agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Manager is authorized to execute on behalf of the City Amendment No. 2 to the Agreement entitled "Agreement, Sewage Treatment Plant Sludge Removal" between the City of South San Francisco and Tillo Products Company. A copy of Amendment No. 2 to the Agreement is attached hereto. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a Regular meeting held on the 13th day of January , 1993 by the following vote. AYES: Councilmembers Jack Drago, Joseph A. Fernekes, John R. Penna, Robert Yee, and Mayor Roberta Cerri Teglia NOES: None ABSTAIN: None ABSENT N0ne ATTEST: EXHIBIT TO RESOLUTION NO. 1-93 :- AMENDMENT NO. 2 TO AGREEMENT FOR SEWAGE TREATMENT PLANT SLUDGE REMOVAL WHEREAS, the City of South San Francisco, a municipal corporation (hereafter "City"),and the Tillo Products Company, P.O. Box 2252, South San Francisco (hereafter "Tillo") entered into an agreement for sewage treatment plant sludge removal on March 9, 1988; and WHEREAS, the City and Tillo entered into an amendment to that agreement on May 9, 1990; and WHEREAS, the City wishes to renew the agreement as provided for in Section 1 of the agreement. NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE FOREGOING FACTS, THE PARTIES HEREBY AGREE TO AMEND THEIR MARCH 9, 1988 AGREEMENT.AS FOLLOWS: The City hereby exercises its option under paragraph 1 of the March 9, 1988 Agreement and extends its Agreement with Tillo from January 1, 1993 to December 30, 1997. Such extension, and the underlying Agreement, may be terminated with or without cause by the City by providing thirty (30) days written notice to Tillo. Upon early termination, City shall pay Tillo a pro-rated amount of the contract price for the year in which the Agreement is terminated. No obligation exists for the City to make payments beyond the year in which the Agreement is terminated. 2. Paragraph 1 of the Agreement is amended by adding: If requested by the City, Tillo shall assist the City to clean its sludge drying beds, by excavating and hauling the sludge from the beds to the composting site, and incorporating that sludge into the composting operation. Tillo will cooperate with the City in its Solid Waste Management Program effort to evaluate the feasibility of using green waste to compost with the sludge; this will require a trial, pilot program to be established as agreed upon by the City and Tillo. 3. Paragraph 5 of the Agreement is amended by adding: 5. Supplier Contracts Tillo shall be responsible for obtaining all materials required to blend with the sludge to make the Tillo soil conditioner product. Copies of any contracts between Tillo and a third party, e for the purpose of obtaining materials to be blended with sludge to make the soil conditioner known as Tillo shall be maintained on file with City and shall inure to the benefit of City upon notice by Tillo that Tillo has terminated the Agreement, is insolvent or has ceased doing business. All purchases of rice hulls or other blending materials for composting shall first be approved by the City. City shall reimburse Tillo for the cost of all preapproved purchases of rice hulls or other blending materials within thirty days after submittal of invoices to the City. At the City's option, the City may enter into contracts with suppliers to furnish materials to Tillo. Paragraph 7 of the Agreement is amended to read: -7. Payment for Tillo's Services For the year 1992, City paid Tillo $130,375 for sludge removal services in accordance with the terms of the Agreement. For each subsequent year, beginning in 1993, City shall increase the $130,375 by the amount of the increase in the Consumer Price Index for the previous year. In addition, if so requested by the City, City shall pay Tillo to clean the sludge drying beds on a force account basis. Labor rates will conform with Tillo's customary labor costs. Equipment rates will conform with Caltrans standard rates. Payment shall be made monthly upon approval of the Director of Public Works. The amount of monthly payment shall be agreed upon in writing by Tillo and the Director of Public Works. Paragraph 9 of the Agreement is amended by adding: Tillo agrees to furnish a copy of its annual business financial statement to the City. Exhibit "A", Section I.C "Compliance with Regulatory Requirements" of the Agreement is amended by adding: Should State or Federal agencies substantially change, or adopt new regulations which would require significant change to Tillo's operation, the City agrees to review the terms of the agreement with Tillo. This amendment supersedes Amendment No. 1. Ail other provisions of the Agreement remain unchanged. CITY OF SOUTH SAN FRANCISCO, a municipal corporation By: City Manager \ - ATTEST: Deputy C~t~ Clerk TILLO PRODUCTS COMPANY ny: uavid R. Westerbeek APPROVEE AS TO FORM: ~y ~ttorney