HomeMy WebLinkAboutbocc.con.266.2013 Rev. 08-30-11 jls
1101" COUNTY CLERK'S
CONTRACT COVERSHEET
CONTRACT #: 266-2013
ORIGINATING DEPARTMENT: Solid Waste Center
PROCUREMENT OFFICER: Hilary Burgess PHONE #: 4292883
PROJECT NAME: Haul Metal to Recycling CONTRACTOR: Hi Grade Recycling, Inc.
DOLLAR AMOUNT: ($0.00) LINE ITEM # 416.65.0.63028
`�:v4nue ('0pt/ty%F'
CONTRACT EXECUTION DATE: 12/19/2013 CONTRACT END DATE: 11/30/2016
AUTOMATIC RENEWAL: ® YES ® NO TERM: 3 years with optional 2 year renewal
❑ BOCC AGENDA ITEM (Grants, IGA) ❑ STAFF AUTHORIZED SIGNATURE
(Requires BOCC Signature) (Per Revised Procurement Code 7/2005)
❑ OVER$50,000 (Requires Section Leader& County Manager's Signature)
V CHECK PROCUREMENT TYPE:
❑ None ❑ Informal ® Formal ❑ Sole Source ❑ Emergency ❑ Outside Agency/State Bid
❑ Compliance with C.R.S. 8-17-5-101, 102 as amended(Immigration Form) ❑ Exempt
❑ Contract Renewal
✓ CHECK CONTRACT TYPE:
® Services/Maintenance ❑ Employment
❑ License/Use ❑ Intergovernmental Agreement(Resolution Required)
❑ Lease ❑ Non-Profit
❑ Construction ❑ Quasi-Public(e.g.-AVH)
❑ Goods, Equipment, Supplies ❑ Grant Agreements (Notify Finance& Resolution Required)
❑ Other(e.g. revenue) ❑ Change Order/Contract Amendment .
(C/O: 10%or$25K whichever is the lesser must have County Manager signature)
All Contracts should be proofed and all exhibits and notices must be attached for the following:
✓ ® No Pages Missing ✓® All Other Blanks Filled In
✓ Z If Page Left Intentionally Blank—Note on Page ✓® All Exhibits Attached
✓ ® Page numbered consecutively ✓❑ All Legal Descriptions attached (if applicable)
✓ ® All Original Signatures Affixed ✓® Notice of Award/Notice to Proceed Attached (f applicable
✓ Z All Dates Filled In ✓❑ Warranty(if applicable) .
✓ ❑ Special Instructions for Finance Department:
✓ Z Authorized Procurement Officer's Name: Hilary Burgess
BY CHECKING ABOVE AND ENTERING NAME, THE AUTHORIZED STAFF PERSON INDICATES THAT
THE ATTACHED DOCUMENT HAS BEEN PROOFED AND READY FOR SCANNING.
NOTE: CLERK'S OFFICE WILL KEEP ORIGINAL DOCUMENTS IN COMPLIANCE WITH COLORADO STATE
ARCHIVES RETAINAGE SCHEDULE. ALL ATTACHMENTS MUST BE WITH THIS CHECKLIST!
•
•
, Contract#266-2013
Rev. 8.31.1 L jaa/js
Budget Line Item#416.65.00000.63028
N
OU N, f
CONTRACT FOR PROVISION OF SERVICES
Hauling Scrap Metal to Recycling Facility
THIS CONTRACT is made and entered by and between the Pitkin County Board of County
Commissioners ("County")and Hi Grade Recycling, Inc., (hereinafter"Contractor").
1. Term. The term of this contract is from December 1, 2013 to November 30, 2016 with a
2 year option to renew.
2. Contractor's Obligations. Contractor shall provide and pay Pitkin County for services and sale
of scrap metal per Contractor's Proposal. Exhibit A.
3. Compensation and Expenses, Invoicing, Payment and Offset. The County shall compensate
Contractor for its services in accordance with the Project Budget and Schedule set out in Paragraph 2. It
• is expressly understood and agreed that in no event will the total compensation and reimbursement to be
paid hereunder exceed the sum of$0 for all services rendered. By contract or amendment, the County
and Contractor may reallocate the budget among project tasks if the total budget amount remains
unchanged. Contractor shall invoice for the project monthly based on hours worked, with payment
expected within thirty(30) days of invoice, but any payment by the County may be offset by any amount
the Contractor owes the County for any reason.
4. County's Exclusive Ownership of Work Product. Drawings, specifications, guidelines and
other documents prepared by Contractor in connection with this contract shall be the property of the
• County. However, Contractor shall have the right to utilize such documents in the course of its
marketing, professional presentations, and for other business purposes. Contractor assigns to County the
copyrights to all work prepared, developed, or created pursuant to this contract, including the right to: 1)
reproduce the work; 2) prepare derivative works; 3) distribute copies to the public; 4) perform the works
publicly; and 5) to display the work publicly. Contractor shall have right to use materials produced in
the course of this contract for marketing purposes•and professional presentations, articles, speeches and
other business purposes.
5. Pitkin County's Obligations. Pitkin County shall administer this contract through a County
Representative. Hilary Burgess will manage the project as the County's Representative. The services
provided and products delivered-by the Contractor under._this contract will be subject to review by the .
County's,Representatives, or i1 desiy fee., for-compliance lw'ith Contractofs obligations n1s prior lr, anoi
payment.
6. Termination Prior to I.Apl_n i ll r.} Lim It�1C (et I1;''- G1flt ,a:; n riti,Lt W teammate this
'contract,-with or without cause, by IRIin 'women notice-J:9 0.)e Conanct-or '.;t such tee-dilation.and.
specifying the effective date thereof. Such o i ° shall be ji—.) t. i ..:_i tea (i 0) days before the
effective date of ouch ternllaation. hi such .1A e l finished_„ L cut 11 ished ,'_curnents, data;.studies and
reports yreparf]d by the Contractor pu suant J thii cnni;inet ; ali become, the County's property.
Contract#266-2013 Rev. 8.31.11 jaa/js
Budget Line Item#416.65.00000.63028
Contractor shall be entitled to receive compensation in accordance with the contract for any satisfactory
work completed pursuant to the terms of this contract prior to the date of termination. Notwithstanding
the above, Contractor shall not be relieved of liability to the County for damages sustained by the
County by virtue of any breach of the contract by the Contractor.
7. Independent Contractor Status.
A. The parties to this contract intend that the relationship between them contemplated by
the contract is that of independent contractor. Contractor, and any agent, employee, or servant of
Contractor shall not be deemed to be an employee, agent, or servant of Pitkin County.
B. Contractor is not required to offer his services exclusively to Pitkin County under this
contract. Contractor may choose to work for other individuals or entities during the term of this
contract, provided that the basic services and deliverable products required under this contract are
submitted in the manner and on the schedule defined under this contract.
C. Contractor warrants that all work produced will conform to all applicable industry
standard of care, skill and diligence in the performance of Contractor's obligations under this contract.
D. Contractor shall not attempt to oversee or supervise the work or actions of any Pitkin
County employee, servant or agent in the course of completing work under this contract.
E. Contractor is not entitled to any Workers' Compensation benefits through Pitkin
County and is responsible for payment of any federal, state, FICA and other income taxes.
•
• 8 Assignability. This contract is not assignable by either party. Any use of subcontractors by the
Contractor for performance of this contract must be accepted in writing by the County.
9. Binding Arbitration. Any disputes arising out of this contract shall be subject to binding
arbitration. The parties agree that any disputes concerning the terms and conditions of this contract
shall be submitted and finally settled by arbitration. Arbitration shall be conducted pursuant to the rules
of the American Arbitration Association and shall be presided over by the Pitkin County Hearing
Officer appointed to arbitrate Pitkin County contract disputes. Costs of the arbitration shall be awarded
to the substantially prevailing party.
10. Severability. In the event that any provision of this contract shall be held to be invalid or
unenforceable, the remaining provisions of this contract shall remain valid and binding upon the parties
hereto
11. Integration and Modification.
A. This contract represents the entire and integrated contract between the County and the
Contractor and supersedes,all prior negotiations, representations, or contract, either written or oral. This
contract may be amended only by written contract signed by both the County and the Contractor.
B. The County may, from time to time, request changes in the scope of services of the
Contractor to be performed hereunder. Such changes, including the increase or.decrease in the amount
of thei Contractor's,,cornpensation, which ,are;mutually agreed upon between_the County and the
Contractgr;tskiallibe )n,writing and upon execution shall become,parrof this contracts,.. 1
I, - , .�,:..,
12. Indeninity.
A.' The.Contractcr agrees to indemnify, hold harmless and not excl i Lng the C;)GIIty's'right to
. participate,•,defend the-County, its subsidiary, pa'f ai assoc eted andior affiliated entities, successors, or
. assigns,-its elected•officials, trustees, employees agents, soh utevrs,'and any jurisdiction.or agency issuing. •
permits for any work included in tilt piojec( nerainafter Ir ired-ta as indemnitec, from all suits and
• claims,.including attorney's fee,and ca,i.cf litigat on;•ant ons,.,oss,damage, expense,cost:ar_clanns of any-.. .
character or any nature arising out of the \wrk dcn in ulfi''imeni of the terms of this Contract or on
accountof any act,claim or.an:ount arising or recovered a ider`workers' compensation lave or arising out of •
•
•
2
Contract#266-2013 Rev. 8.31.11 jaa/js
Budget Line Item#416.65.00000.63028
the failure of the Contractor to conform to any statutes, ordinances, regulation, law or court decree. It is
agreed that the Contractor will be responsible for primary loss investigation, defense and judgment costs
where this contract of indemnity applies. In consideration of the award of this contract, the Contractor
agrees to waive all rights of subrogation against the County .its subsidiary, parent, associated and/or
affiliated entities, successors, or assigns, its elected officials, trustees, employees, agents,and volunteers for
losses arising from the work performed by the Contractor for the County.
B. The Contractor further shall investigate, process, respond to, adjust, provide defense for
and defend,pay or settle all claims, demands, or lawsuits related hereto at its sole expense and shall bear all
other costs and expenses related thereto, even if the claim,demand or lawsuit is groundless, false or fraudu-
lent.
13. Insurance. Contractor and subcontractors shall procure and maintain until all of their
obligations have been discharged, including any warranty periods under this Contract are satisfied,
insurance against claims for injury to persons or damage to property which may arise from or in
• connection with the performance of the work hereunder by the Contractor, its agents, representatives,
employees or subcontractors.
The insurance requirements herein are minimum requirements for this Contract and in no way limit the
indemnity covenants contained in this Contract.
The County in no way warrants that the minimum limits contained herein are sufficient to protect the
Contractor from liabilities that might arise out of the performance of the work under this Contract by the
Contractor, its agents, representatives, employees, or subcontractors. The Contractor shall assess its
own risks and if it deems appropriate and/or prudent, maintain higher limits and/or broader coverages.
The Contractor is not relieved of any liability or other obligations assumed or pursuant to the Contract
by reason of its failure to obtain or maintain insurance in sufficient amounts, duration, or types.
A. Coverage and Limits of Insurance. Contractor shall provide coverage with limits of
liability not less than those stated below. An umbrella and/or excess liability policy may be used to
meet the minimum liability requirements provided that the coverage is written on a"following form"
basis.
1. Statutory Workers' Compensation: Colorado statutory minimums
a. Policy shall contain a waiver of subrogation against the County.
b. This requirement shall not apply when a contractor or subcontractor
is exempt under Colorado Workers' Compensation Act., AND when such contractor
or subcontractor executes the appropriate sole proprietor waiver form.
Minimum Limits:
•
Coverage A(Workers'. Compensation) . Statutory
Coverage B(Employers'Lialiili[y)' - =c$ <<i- "500,000 i
500,000
•
500,000
2. :. Commercial General iability-IS(7 ICC 000i forrn or equivalent.
Tht h.C<o-o i y rue ned-.'.or additional insured)
Minimum Limits:
General Aggregate $ 2,000,000 •
3
•
Contract#266-2013 Rev. 8.31.11 jaa/js
Budget Line Item#416.65.00000.63028
Products/Completed Operations Aggregate $ 2,000,000
Each Occurrence Limit $ 1,000,000
Personal/Advertising Injury $ 1,000,000
Fire Damage(Any One Fire) $ 50,000
Medical Payments(Any One Person) $ 5,000
Coverage to include:
• Premises and Operations
• Personal/Advertising Injury
• Products/Completed Operations
• Liability assumed under an Insured Contract (including defense costs assumed under
contract)
• Independent Contractors
• Additional Insured Owners, Lessees or Contractors Endorsement, ISO Form 2010
(2004 Edition or equivalent)
• Additional Insured—Owners, Lessees or Contractors Endorsement, ISO CG 2037
(2004 Edition or equivalent)
• The policy shall be endorsed to include the following additional insured language on
the Additional Insured Endorsements specified above: "County, its subsidiary,parent,
associated and/or affiliated entities, successors, or assigns, its elected officials,trustees,
employees, agents, and volunteers named as an additional insured with respect to
liability and defense of suits arising out of the activities performed by, or on behalf of
the Contractor, including completed operations".
3. Auto Liability: Bodily injury and property damage for any owned, hired, and
non-owned vehicles used in the performance of this Contract.
Minimum Limits:
Bodily Injury/Property Damage(Each Accident) $ 1,000,000
4. Special Coverages (check as appropriate and insert amount):
•
0(1) Performance Bond $
❑(2) Professional Errors and Omissions
0(3) Aircraft Liability
❑(4)Owner's Protective
0(5)Builder's Risk
0(6)Boiler and Machinery
0(7) Loss of Use Insurance
0(8)Pollution Liability
❑(9)Crime, including Employee,Dishonesty Coverage,or Ftdehry Bond
B Proof of nsuranc
• 1. Each insurance policy required by the ilisuranee Provisions of this Contract
shaliprovide the required coverage and shall not be suspend:d, voided cr canceled except after • .
thirty(30) days prior wrtten notlue'I:as been'gIyph to lit.County„ except`.%'hell Cadet:Itatian Is
for non-payment of premium,'Iher ten (I0)clays prior i office:nay be given. Such notice shall, •
he sent directly to(County Regresentan re's-N:ure dric Address).• If the insurance carrier will not . •
•
provide the required notice, the Cotiyultail:/Contractor and or its insurance broker shall notify'
•
4
•
Contract#266-2013 Rev. 8.31.11 jaa/js
Budget Line Item#416.65.00000.63028
the County of any cancellation, or reduction in coverage or limits of any insurance within seven
(7) days of receipt of insurers' notification to that effect.
Simultaneously with the Certificates of Insurance, the Contractor shall file with the Procurement
Officer a certified statement as to claims pending against the required coverages, reserves
established on account of such claims, defense costs expended and amounts remaining on policy
limits.
2. In addition,these Certificates of Insurance shall contain the following clauses:
a. The contractor's insurance shall be primary and non-contributory with
any insurance or self insurance purchased by the County.
b. The insurance companies issuing the policy or policies hereunder shall
have no recourse against the County of Pitkin for payment of any premiums or for
assessments under any form of policy. •
c. Any and all deductibles or self insured retentions in the above-described
insurance policies shall be assumed by and be for the amount of, and at the sole expense of
the Contractor.
d. Location of operations shall be: "all operations and locations at which
work for the referenced Project is being done."
3. Certificates of Insurance for all renewal policies shall be delivered to the County's
Representative at least fifteen (15) days prior to a policy's expiration date except for any policy
expiring on the expiration date of this contract or thereafter.
•
4. The County reserves the right to request and receive a copy of any policy and any
policy endorsement at any time during the term of this contract.
•
14. Exemptions and Preferences. All purchases of construction or building or any other materials for
this contract shall not include Federal Excise Taxes or Colorado State or local sales or use taxes. Pitkin
County is exempt from such taxes under registration numbers 98-02624 and 84-78000-5K.
15. Records: The Contractor shall maintain comprehensive, complete and accurate books, records,
and documents concerning its performance relating to this contract for a period of three (3) years after
final payment under the contract and the County shall have the right within the three (3) year period to
inspect and audit these books, records and documents, upon demand, in-a reasonable manner and at
reasonable times, for the purpose of determining, by accepted accounting and auditing standards,
compliance with all provisions of the contract and applicable law.
•
16. Contract Made in Colorado.The parties agree that this contract was tiiade id accordance with the
laws of the State of Colorado and shall be so construed. Venue is agreed to be exclusively in the courts
of Pitkin County, Colorado.
17. . .Attorney's Fees. In the event that legal action is necessary to enforce'any'Bf the provisions of this
contract beyond the arbitration described in Paragraph 9, thesubstanttallyprevtailin'g' party shall be entitled
to its costs and reasonable,attotney's fees.
:i8:' a,:Governmental Immunity. Contractor agrees and understands:that-Pitkiti.County is relying on•
• and'does;not waive, by any provision of this_eontract;:thei tonetay limitat'ons or terms (presently
• $150,000 per person and $600,000 per poeunuuce)'of any Other-rights, immunities,.and protections•
pros ided'by the Colorado Governmental lnimutity,Act, 24-10401; et seq., C.R.S., as from.time to time,. •
amended, or otherwise available to Pitkin County rr any of its officers, agents or•employees. Further, • .
nothing in this contract shall be con trued.or, nte.-!nAeel to rec Lire or provide for indemnification of the
5 •
•
Contract#266-2013 Rev. 8.31.11 jaa/js
• Budget Line Item#416.65.00000.63028
Contractor by the County for any injury to any person or any property damage whatsoever which is caused
by the negligence or other misconduct of the County or its agent or employees.
19. Current Year Obligations. The acknowledge and agree that any payments provided for
hereunder or requirements for future appropriations shall constitute only currently budgeted
expenditures of Pitkin County. Pitkin County's obligations under this contract are subject to Pitkin
County's annual right to budget and appropriate the sums necessary to provide the services set forth
herein. No provisions of the contract shall constitute a mandatory charge or requirement in any ensuing
fiscal year beyond the then current fiscal year of Pitkin County. No provision of the contract shall be
construed or interpreted as creating a multiple-fiscal year direct or indirect debt or other financial
obligation of Pitkin County within the meaning of any constitutional or statutory debt limitation. This
contract shall not directly or indirectly obligate Pitkin County to make any payments beyond those
appropriated for Pitkin County's then current fiscal 'year. No provisions of this contract shall be
construed to pledge or create a lien on any class or source of Pitkin County's moneys, nor shall any
provision of this contract restrict the future issuance of Pitkin County's bonds or any obligations
payable from any class or source of Pitkin County's money.
20. Notice. Any written notice required by this contract shall be deemed delivered through any of the
following: (1) hand delivery to the person at the address below; (2) delivery by facsimile with confirmation
of receipt to the fax number below; or (3) within three (3) days of being sent certified first class mail,
postage prepaid,return receipt requested addressed as follows:
A. To Pitkin County with copies to:
Solid Waste Center Pitkin County Attorney's Office
76 Service Center RD 530 E. Main Street,#302
Aspen, Colorado 81611 Aspen, Colorado 81611
Fax: (970) 923-2043 • Fax: (970) 920-5198
B. Hi Grade Recycling
PO Box 4374
Gypsum, CO 81637
Fax: (970)393-0833
21. Public Contracts for Services and Public Contracts with Natural Persons. In conformance with
the provisions of C.R.S. § 8-17.5-101 and 102, as amended and C.R.S.'§ 24-76.5-101, as amended
PUBLIC CONTRACTS FOR SERVICES. CRS §8-17.5-101. [Not Applicable,to agreements relating
to the offer, issuance, or sale of securities, investment advisory services or fund Management services,
sponsored projects, intergovernmental agreements, or information techriology services or products
and services] Contractor certifies, warrants,and agrees that it does not knowingly employ or contract
with an illegal alien who will perform work under this contract and will confirm the employment
eligibdtty.of al] employees who are newly hired for employment m the United States;to perform work
under thiscontract;through participation in the E-Verify Program ortthe Deparfine -t program
• established pursuant io CRS §8-17.5-102(5)(c), Contractor shall_rot•tcnowmgly employ of contract with
an illegal alien to perform work under this contract or;enter into,a contract with a subcoNractor that fails
to certify to Contractorthat the subcontractor shatI not'•kno vmgly employ or contract v:ith an illegal
r..
alien to perform work under this contract. Cgn'tictor'a) shall not use E-Verify Program.or,Department- • • -
progr�m.procedures to Undertake pre employment screening of job applicants while this contract is
-' - - being performed, (b):shall notify the subeontrae..ef and title Contracting Slate agency within three days rf' •
. .. .
Contactor has actual knowledge that a subenrtr +O ts:Pr��ilaymg:or contracting with•an �tlegal a,.en:-.-- - --
•
6
Contract#266-2013 Rev. 8.31.11 jaa/js
Budget Line Item#416.65.00000.63028
for work under this contract, (c) shall terminate the subcontract if a subcontractor does not stop
employing or contracting with the illegal alien within three days of receiving the notice, and(d) shall
comply with reasonable requests made in the course of an investigation, undertaken pursuant to CRS
§8-17.5-102(5),by the Colorado Department of Labor and Employment. If Contractor participates in the
Department program, Contractor shall deliver to the contracting State agency, Institution of Higher
Education or political subdivision a written, notarized affirmation, affirming that Contractor has
examined the legal work status of such employee, and shall comply with all of the other requirements of
the Department program. If Contractor fails to comply with any requirement of this provision or CRS
§8-17.5-101 et seq., the contracting State agency, institution of higher education or political subdivision
may terminate this contract for breach and, if so terminated, Contractor shall be liable for damages.
PUBLIC CONTRACTS WITH NATURAL PERSONS. CRS §24-76.5-101. Contractor, if a natural
person eighteen(18)years of age or older, hereby swears and affirms under penalty of perjury that he or
she (a) is a citizen or otherwise lawfully present in the United States pursuant to federal law, (b) shall
comply with the provisions of CRS §24-76.5-101 et seq., and(c)has produced one form of
identification required by CRS §24-76.5-103 prior to the effective date of this contract.
IN WITNESS WHEREOF, the parties have executed this contract as of the date first set out herein
above. //
CONTRACTOR: 744 t g-/r A ck±t/,t j06,___
B I
y. i �
Title AAL Or /9 JD3
Date
PITKIN COUNTY, COLORADO:
J //7 )/3
lary B gess Date
_ .,a is
EXHIBIT A
Proposal to Haul Scrap Metal from Pitkin County Solid
Waste Center to Denver Metro Area
•
(a) Submitted By: 00 Enterprises, Inc.
DBA- Hi Grade Recycling
PO Box 4374
Gypsum, CO 81637
Chris Olson —Owner/General Manager
(970) 393-0833 (Cell Phone)
(888) 580-5990 (Toll Free)
(970) 460-3011 (Fax)
chris@higraderecycling.com (e-mail)
www.higraderecycling.com (web site)
(b) Service Approach —Hi Grade Recycling (HGR) a west slope provider of scrap metal
collection and transportation services, would intend on handling scrap metal in much
the same way as it does presently. HGR would deliver the appropriate equipment (track
hoe or similar) into the Solid Waste Center (SWC) to load scrap.metal into an open top
it �I or flat-bed semi-trailer. The track hoe will compact the scrap metal into the load to
yF ' maximize the load density, to the extent possible. Full loads of scrap metal will be
\c transported to Denver based processors and a scale/weigh ticket will be issued by the
processor. At present, HGR delivers materials to All Recycling but may use other
n processors from time to time to insure the best price/service.
lJ The largest processors in Denver (All Recycling is one of several) shred ferrous metal and
separate non-ferrous metals in a very capital intensive and technically sophisticated
On shredding process. This extracts the maximum value from the material and drives prices
to the highest levels in the vicinity. Most of metals collected in Colorado (including the
V r .
cs
west slope metal) as well as Wyoming, New Mexico, western Nebraska, Kansas and
Oklahoma and parts of Montana and the Dakotas, eventually end up at the shredders in
Denver, even if they are bailed or pre-processed. While west coast and Midwest
(Chicago) pricing is typically higher than Denver pricing, transportation cost makes up
the difference. While we could save some on freight by going to Grand Junction for
instance, they are not adding value (shredding) to the material like they are in Denver
and only have slightly higher pricing than what we offer here. Net/ net, we can share
more with our customers by delivering directly to Denver rather than making an initial
stop elsewhere and save fuel, pollution and road wear in the process. P g-'
Per past experience, our service will be provided three to six times a year (or more as
required). Typically we load more than 3 trailers and up to or more than 10 trailers
during a given service interval. Primary separation of metals into ferrous and non-
ferrous or a ferrous/non-ferrous mix will take place at the SWC. The ferrous/non-
ferrous mix will be loaded into smaller trucks or trailers for further processing at HGR's
facility. HGR will weigh in and out of the scale at the SWC for these loads.
Revenue for all scrap metal will be shared as follows:
The first$100 per ton of the prevailing price for ferrous metal paid by a Denver based
company will be retained by HGR. For every$1 over$100 per ton, Pitkin County SWC
will be paid 70%. The reason HGR proposes this formula is it more accurately reflects
the cost of providing the service in a down market while rewarding Pitkin SWC more as
market prices move higher. Based upon the most typical (median or average) price over
the past 3 years, this would result in $105 per ton paid to the landfill or 42% of the
market price. The range (based upon the 3 year history) would be more than 30%to
more than 50% of the market price.
Within 30 days of completion of a service interval, HGR shall present scale receiver IJ'e 71
forms for metal, evidence of current pricing, a spread sheet outlining cost base and
weights for loads along with a receipt, with a check to Pitkin County.
Added Ferrous bonus: Should HGR be allowed to stage collected materials and
containers from the Roaring Fork Valley, at the Pitkin County SWC throughout the year,
along with the SWC's metal, HGR will add 3%to the prices paid to SWC for its metal plus
3% on the metal HGR brings through the SWC scale. To clarify, HGR would like to
consider staging metals it collects at the SWC throughout the year. On incoming
materials, HGR's truck will cross the SWC scale and be weighed. HGR will provide or
q
agree with the SWC on a load ticket form to calculate gross weight brought into the
SWC by HGR. These tickets shall be consolidated monthly and entered into a report
which tracks the totals. The gross weight will be offset by an actual tare weight also
measured by the SWC scale or an average tare weight mutually agreed by the parties.
Any dumpsters included in the loads will count as tare weight. Total material weight
brought in will be deducted from weight taken out from service interval to service
interval for regular compensation as outlined above. Bonus compensation will be
calculated as follows: Monthly reports for net materials brought in shall be paid at 3%
of the prevailing market rate for that month and shall be remitted within 30 days. On
SWC net materials as described above 3% of the total of each receipt issued at the close
of a service interval will be added to the total.
Added Non-Ferrous Bonus: Regular ferrous/ non-ferrous mixed product separated by
HGR will be included in ferrous metal volume and compensated as ferrous metal. Any
non-ferrous items which are collected by SWC, sorted and separated for pick-up (such
as lead acid batteries, appliance cords or other aluminum /copper etc.) will be picked
up by HGR as requested by SWC and paid at 60%of prevailing market price collected by
HGR. HGR will provide containers, totes or bins as required for the SWC to carry out this
--task-at.no.cost-to-SWC --- -- ------ - --
(c) HGR has been a partner in collecting and transporting ferrous and non-ferrous
materials for the SWC for more than the past 6+years. HGR operates under US DOT
Authority#2133132 CO, and is registered with the State of Colorado as an intrastate
carrier. HGR provides a similar service to the South Canyon Landfill in Glenwood
Springs and to many customers (see below) in the Vail, Roaring Fork and Colorado River
Valley's.
(d) In general, our business references would include:
Pitkin County SWC— Hilary Burgess Hilary.burgess @pitkincounty.com (970) 429-2883
South Canyon Landfill—King Lloyd king.11oyd @cogs.us (970) 945-5375
State of Colorado DOT—Les Stanton les.stanton @dot.state.co.us (970) 947-9361
Town of Snowmass—Dave Ogren (970) 274-1177
Other Customers Include: Town of Aspen, El Jebel, Glenwood Springs Recycling Center,
RAFTA, Aspen Skiing Company, Aspen School District, Culligan, Pacific Sheet Metal,
American Gypsum, Climate Control, Ajax Mechanical, Mountain Air Mechanical,
Berthoud Motors, Bighorn Toyota, Mountain Chevrolet, Aspen Total Automotive,
Spiegel Construction, 2 Valley Tire, Vail Honeywagon, Intermountain Waste, Pitkin Iron,
MTECH, Rocky Mountain School and many others.
(e) In general we do not use subcontractors unless for some reason we have equipment
problems which would impede our ability to service your needs directly. In the past 3
years, we did have D&R Trucking bring semi-trailers in and out of the SWC on a couple
of occasions and they would be our first choice if it ever becomes necessary again. D&R
Trucking is owned and operated by Richard Long of Gypsum (970) 390-0852 and has V
hauled equipment and materials into and out of the SWC for others for many years.
HGR History& Commitment:
HGR is committed to providing the Pitkin County SWC quality services at a fair cost, with
honesty and business integrity serving as our guide.
The previous service agreement, originally negotiated and performed by Paul Miller of
Hi Grade provided compensation of a little less than 10%of market price to the SWC.
Within a year of the assignment of this contract to Chris Olson of Hi Grade, market
conditions had changed enough to warrant a discussion on pricing, in spite of the fact
that we were still operating under a contract. In particular, I felt the pricing we were
paying did not reflect the market and we should adjust our price higher to demonstrate
this honest and business integrity approach and our commitment to a long term
relationship. While the then mgmt. team of the SWC was very appreciative of my offer,
they deferred changing the contract until the renewal period. At that time I offered to
raise the share paid to SWC to 50% (more than a 500% increase) of market and that was
accepted by both parties. Since that time, prices have been depressed to the point that
even with a minimum price as we have in the contract, it is difficult to support the
business at this level, in consideration of fixed and direct costs. The pricing approach I
have taken here is to make our mutual business a win /win by the SWC adding value to
our business model through consolidation of our materials loading and handling and
through encouraging more value through the collection of valuable non-ferrous metals.
Moreover,this approach provides the greatest value to the SWC when the market
prices rise as they most likely will over time.
It
We are committed to an open and transparent partnership and hope that our past
performance demonstrates this.
Over the past 3-5 years, the scrap metal market has become much more competitive
and many new players have entered the game. It is our responsibility to remain
competitive while we provide personalized, locally based service to our customers. We
will continue to improve the efficiency in how we conduct our business and work hard
to provide a valuable service to the Roaring Fork Valley. At present we are the leading
service provider of scrap metal in the valley and are committed to be for years to come.
We humbly thank Pitkin County SWC for the trust and confidence you have had in us
serving your needs for many years and we will work hard to earn your business every
time we come on to your site. We know there may always be somebody ready to pay
more for scrap metal but we hope that our past performance, demonstrated
commitment, this proposal and our sincere interest in providing continued service is
well received and in line with SWC expectations.
Sincerely,
Hi Gra. - ' -c f g
Chris J. Olson
Owner/General Manager
t