HomeMy WebLinkAboutR-1989-019 i
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RESOLUTION NO. 19-89
A RESOLUTION OF THE CITY OF DANIA, FLORIDA,
APPROVING AN AMENDMENT OF CONTRACT WITH REUTER
RECYCLING OF FLORIDA, INC . , GRANTING A TIME
EXTENSION OF 150 DAYS TO SATISFY THE
CONDITIONS ENUMERATED IN ARTICLE VIII, (d ) AND
(e) OF THE ORIGINAL CONTRACT; PROVIDING THAT
ALL RESOLUTIONS OR PARTS OF RESOLUTIONS IN
CONFLICT HEREWITH BE REPEALED TO THE EXTENT OF
SUCH CONFLICT; AND PROVIDING FOR AN EFFECTIVE
DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA,
FLORIDA:
Section 1 . That the amendment of contract of the City of
Dania and Reuter Recycling of Florida, Inc. , dated August 19,
1988, extending the terms of Article VIII (d ) and (e) of same
until July 15, 1989, all as set forth in composite Exhibit "A"
attached hereto, be and the same is hereby approved, and the
proper city officials are hereby authorized and directed to
execute the said amendment .
Section 2. That all resolutions or parts of resolutions in
conflict herewith be repealed to the extent of such conflict .
Section 3. That this resolution shall be in force and take
effect immediately upon its passage and adoption.
PASSED and ADOPTED on this 28th day of February , 1989.
& /
A OR --COM SS ER
ATTEST:
CITY CLERK - AUDITOR
APPROVED AS TO FORM AND CORRECTNESS
BY:��
FRANK C. ADLER, City Attorney
J
Resolution No. 19-89
F
ADDENDUM REQUEST FORM �
City of Pembroke Pines, Florida
Meeting Date: I Addendum Item Na.
2/15/89 1
TITLE.-
AMENDMENT OF CONTRACT WITH'REUTER RECYCLING OF FLORIDA, INC.
REQUESTED ACTION:
MOTION TO AUTHORIZE THE MAYOR TO SIGN AMENDMENT TO REUTER RECYCLING OF FLORIDA, INC. ,
DATED AUGUST 19, 1989, EXTENDING THE TERMS OF ARTICLE !III (d) , (e) OF THIS AGREEMENT
UNTIL JULY 15, 1989
i
SUMMARY EXPLANATION AND BACKGROUND:
1 . The Cfty ot Pembroke Pines along with the cities of Dania, Hallandale, and Pompano
Beach, entered into a Solid Waste Disposal Agreement with Reuter Recycling of Florida, Inc.
2. Article VIII of this Agreement, established a time table of events to be accomplished
by February 15, 1989.
3. Reuter is requesting a time extension of 150 days to satisfy the conditions enumerated
in Article VIII (d) and (e).
4. If the cities agree to this extension, Reuter will immediately expend $2,560,000.00
for the purchase of property needed to construct the Recycling Facility.
5. The time extension will not have an adverse effect upon this project, in fact, this
delay will shorten the time gap between the opening of Reuter Facility and the Broward
County Incineration project.
6. If Reuter were to fail to meet the extended time granted, there would not be any
penalities or financial harm to the cities as can be determined by Broward County
In.terlocal Solid Waste Agreement.
EXHIBITS: (Lst)
1 . Solid Waste Disposal Agreement, Pages 29 and 30.
,.. 2. February 15, 1989 Letter amending Solid Waste Agreement dated August 15, 1988.
3. February 15, 1989 Letter from Reuter.
PREPARED BY SOURCE OF ADDITIONAL INFORMATION
(Name: Assistant City Manager Name: Charlps F nndgp
Phone: 437-1100
Recommended and Approved By:
WOODWARD M. HAMPTON, CITY MANAGER
COMMISSION ACTION
Request Aoproved unanimously by City Commission on 2/15/89.
2 /
&City Manager City Clerk T�
L
f
EXHIBIT �
its rights and/or obligations under this Agreement without the
written consent of the Cities .
Section 7 .3 . Relationship of the Parties . No party to
this Agreement shall have any responsibility whatsoever with
respect to services provided or contractual obligations assumed
by the other party to third parties , and nothing in this Agree-
ment shall ' be deemed to constitute either party a partner , agent
or local representative of the other party, or to create any
fiduciary relationship between the parties or to create the rela-
tionship of employer-employee.
Section 7 .4. Unforeseen Circumstance. Whether or not
the Corporation shall have completed construction of the Facility
or shall have commenced performance under this Agreement, the
Corporation and the Cities shall not be liable for failure to
I perform or for delay in performing their obligations under this
Agreement if such failure or delay is a result of Unforeseen
Circumstance, except as otherwise provided in Section 2 . 1 with
respect to the delivery of the Minimum Guaranteed Tonnage . A
party claiming any excuse under this Section 7 .4 shall give
prompt notice thereof to the other party.
Upon the happening of any event referred to in the pre-
ceding paragraph, each party hereto shall devote its best efforts
to commence or resume performance of its obligations under this
Agreement as promptly as practicable (unless such efforts could
not reasonably be expected to succeed) . Upon the occurrence of
an Unforeseen Circumstance that has an adverse impact on the
Corporation, the parties hereto agree that , upon thirty ( 30) days
notice from the Corporation describing the Unforeseen
Circumstance and the impact thereof , they will meet to discuss
the same in an effort to agree on the impact to the Corporation.
If within thirty (30) days after such first meeting the parties
are unable to reach agreement on the adjustment(s) required to
,.. compensate the Corporation for the impact of the Unforeseen
Circumstance, such issue shall be submitted to arbitration as
provided in Section 11.1.
ARTICLE VIII
CONDITIONS TO THE PARTIES ' OBLIGATIONS
The obligations of the Parties under this Agreement
shall be contingent upon the performance or satisfaction of the
■ following items within the respective time frames specified
(� below, unless said performance or satisfaction is waived in
writing by the parties :
a. The Corporation shall have acquired a site for the
Facility in Broward County on terms acceptable to the
Corporation.
29
f- -1
b. Within eighteen ( 18 ) months after execution of this
Agreement , the Corporation shall have received all licenses , per-
mits and approvals required for the acquisition, construction and
operation of the Facility and the Transfer Station .
C . Within twelve ( 12 ) months after execution of this
Agreement , the Corporation shall have entered into an agreement
for the landfilling of the residue from its processing and com-
posting operations on terms acceptable to the Corporation .
d. Within one hundred eighty (180) days after execu-
tion of this Agreement, the Corporation shall have secured
financing for the Facility in the amounts and on terms acceptable
to the Corporation.
e. Within one hundred eighty ( 180) days after execu-
tion of this Agreement , the Corporation shall have executed an
agreement providing for a transfer station facility and an
agreement with the equipment manufacturers relating to equipment
specifications and warranties .
In the event that one or more of the conditions set forth above
are not satisfied in a timely manner, any party hereto shall have
the right to terminate this Agreement upon 30 days written notice
to the other parties to this agreement, and in the event of such
termination, the parties hereto shall have no further obligation
or liability to the other by reason of this Agreement .
ARTICLE IX
ADDITIONAL COVENANTS OF THE CORPORATION
Section 9.1 . Contracts with Additional Municipalities
or Haulers . From and after the date of this Agreement the
Corporation may contract with any municipal corporation existing
Iunder the laws of the State of Florida or any private hauler for
the delivery of Waste to the Facility provided that the following
conditions are satisfied:
a. such contract shall in no way impair the ability of
the Corporation to meet its obligations to the Cities hereunder ,
and
! b. Without the approval of a majority of the Cities,
the Corporation shall not charge any such new municipality or
' private hauler a Tipping Fee that is less than $1 .00 in excess of
the Tipping Fee charged to the Cities .
Section 9.2 . Sharing of Excess Tipping Fee Revenues
from Third Parties. In the event that the Corporation accepts
Waste at this Facility from any party other than the Cities at a
tipping fee that is greater than the Tipping Fee payable by the
~ 30
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e Computer Disc-Pack Spindles • Structural Foam Molding
a Design and Engineering HOPKINB, 55349-7e73 ' Rotational Plastic Molding
Service Telephone 412 9 11 FAX M6803 a Mechanized Refuse
* Waste Processing Collection Services
and Recycling Plants
February 15,, 1989 EXHIBIT. * 2
City of Dania City of Pembroke Pines
100 W. Beach Blvd. 10211 Taft Street
Dania, FL 33004 Pembroke Pines, FL 33026
City of Hallandale City of Pompano Beach
308 So. Dixie Highway 101 So. let Avenue
Hallandale, FL 33009 P.O. Drawer 1300
Pompano Beach, FL 33060
Re: Solid waste Disposal Agreement , dated August 19,
1988, between Router Recycling of Florida, Inc.
and the Cities of Dania, Hallandale, Pompano
Beach, Pembroke Pines
This letter is given with reference to the conditions
imposed upon Reuter Recycling of Florida, Inc. (the
"Corporation") under Article Vill of the Solid Waste Disposal
Agreement described above (the "Agreement" ) . Article VIII
J provides, among other things, that the parties' obligations under
the Agreement are contingent upon the Corporation having
satisfied certain conditions by February 15, 1989, unless the
conditions are waived in writing. These conditions require that
the Corporation (i) shall have secured financing for the Facility
in the amounts and on terms acceptable to the Corporation, ( 11)
shall have executed an agreement providing for a transfer station
facility, and (iii) shall have executed an agreement with the
equipment manufacturers relating to equipment specifications and
warranties (collectively the three conditions described in the
foregoing sentence are referred to as the "Conditions" ) .
By separate letter the Corporation has advised you of
its progress on these matters. Despite this progress, these
Conditions will not be satisfied by February 15, 1989.
Accordingly, the Corporation hereby respectfully requests that
each City grant a 150-day waiver of its right to terminate the
Agreement due to the Corporation' s failure to satisfy the
Conditions by February 15, 1989. The effect of the requested
waiver would be to give the Corporation an additional 150 days
within which to satisfy the Conditions, or until July 15, 1989.
L
Cities of Dania , Pembroke Pines , EXHIBIT 2
Hallandale and Pompano Beach
February 15, 1989
Page 2
IE any of such Conditions are not satisfied on or before July 151
1989,' the Cities would thereafter have the right to terminate the
Agreement in accordance with Article VIII. If, however, such
Conditions are satisfied by July 15, 1989, the Agreement would
continue in full force and affect and the Cities would not
thereafter have the right to terminate the Agreement for failure
to satisfy the Conditions by February 15 , 1989.
We remain confident in our ability to construct a
resource recovery and composting facility that will be economical
and environmentally compatible. Please express the agreement and
consent in writing of each of the Cities to the waiver requested
hereby letter in
providedybelowing andareturningart of it to thesundersigned. apace
In consideration for the Cities granting this
t extension, the Corporation agrees to immediately exercise its
option and purchase the site for the resource recovery and
compost facility.
Very truly yours,
REUTER RECYCLING OF FLORIDA, INC.
By .,{,
awes T. Reuter, President
Each of the undersigned Cities by execution below does
hereby agree and consent to the waiver requested above.
CITY of DANIA
By BY
Its Mayor-Commissioner Its City Manager
ATTEST:
Date:
City Clerk
Cities of Dania, Pembroke Pines,
Hallandale and Pompano Beach ���,� ��� 2
February 15, 1989
Page 3 .
CITY OF HALLANDALE
BY
Its City Manager
ATTEST:
Date:
City Clerk
CITY OF PEMBROKE PINES
BY
Its Mayor
ATTEST:
Date:
i City clerk
CITY Or POMPANO BEACH
4.
By
Its Mayor-Commissioner
ATTEST:
Date:
City Clark
1
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• Precision Machining s ,� •
e •_. Structural Foam Molding
• Computer Disc-Pack Spindles UTH 410• • Rotational Plastic Molding
• Design and Engineering NOPKINS 53343.7579
Service TelePhono 812 ~ 1 PAX 933-SM • Mechanized Refuse
Collection Services
• Waste Processing
and Recycling Plants
February 15, 1989 F.XH I B IY
City of Dania City of Pembroke Pines
10211 Taft Street 33026
100 W. Beach
Blvd• Pembroke Pihes, rL
Dania, FL
City of Pompano Beach
City of Hallandale
101 so. let Avenue
308 so. Dixie Highway p.0. Drawer 1300
Hallandale, FL 33009 pompano Beach, FL 33060
Re: S988d betweeniReuter Recyclingsposal of dated Wants ofFlorida,sInc.
and the Cities of Dania, Hallandale, Pompano
Beach, Pembroke Pines
We are requesting a 150-day extension under the solid
Waste Disposal Agreement in order to satisfy certain conditions
of the colttra't98which were required to ioe satisfied by Reuter by
February ,
Y The additional time is needed tc complete our ingp a are financing
arrangements, Due to the Complexity ofthnbycFebruaryl5,
unable to have the financing package completed
1989,
In addition► ~° are in the supplier praseocswallfasofinalizingLing uthe
agreement with the equipment
terms of our agreement with the County relating to the transfer
station.
To date Reuter has expended more than $1400,OOO in the
development of the project. We are prepared, if we are granted
the extension, to exercise our option and purchase the site for
the resource
g recovery
inand
tcomhe post
facility
and to invest an
add
tional
The current status report for the project is as
follows:
Cities of Dania , Pembroke Pines, EXHIBIT 3
Hallandale and pompano Beach
February 15,
Page 2
I . Acquisition of 91te. If we are granted
Februa an19xt1989oandby.
the Citiee, we will exercise our option by rice o!32 ,560,000.00.
will purchase the property for a purchase p
2. Financing. Reuter had originally proposed to do the
financing as a project financing based on a minimum guaranteed
tonnage of 230 ,000 tons. After Hollywood dropped 'out , the
minimum guaranteed tonnage was reduced from 2301000 tons to
153 ,000 tons. At the time of the reduction
in hat it wouldthe inotuincrease
guaranteed tonnage, Reuter also agreed
the tipping fee. The reduction in tonnage coupled with the
maintenance of the same tip fee resulted in a less favorable -
contract for Reuter from a financial standpoint. Because of the
reduction in the amount of the minimum guaranteed tonnage from
, 0 ton antequity000 contribution b lender the permanent
y Reuter,
requesting Inc. and a share of
req
the profits. For the same reason, the construction lender isnow
time,etheg lea
ndergeazaenow asking ant
hat thetconstruction contract
be finalized before completing the commitment for financing.
sooner isnecessitates our allyanticipated.
ompletingthe design for the facility
3. permitting.
a. U,S. Corps of Engineers.
The application has been submitted and a response
received subject to certain "mitigation items".
These issues relate primarily to the final Site
plan, areas to be set aside, and how the land will
to discuss meeting
be restored. we are the resolutionof these Corps
items-
b. platting -- Broward County.
The platting process is continuing with surveyor
Avircm-Ball. We have met with the County to
discuss the plat. We have engaged the services of
Berry a Calvin and Associates to assist in
finalizing the process. we anticipate using a
"Legislative Delegation Request" to accelerate the
process.
o. Florida Department of Environmental Regulations
1�
Cities of Dania, Pembroke Pines, 3
Hallandale and Pompano Beach F.XH I B I T.
February 15, 1989
Page 3
We have submitted a draft of our proposed permit
to the DER per their instructions. We have been
informed that within a short period of time the
Department will notify us of any changes or
additional requirements. Berry 3 Calvin will be
working with us on this permit.
We previously received a letter from the DER
stating non-jurisdiction of the dredge and fill
for our project.
d. South Florida Water Management District. Broward
County Drainage District.
We will file the application using much of the DER
information sometime shortly after March 1 , 1989.
e. Historical Society.
We have received letters from the State and County
Historical Boards approving our site.
f. Fish and Wildlife.
We will secure their approval based upon the Site
Plan once the U.S, Corps of Engineers has
approved.
4, fransfer Station. We have met with Mr. Kerwin and Mr.
Foye of the County Solid Waste Division regarding the Pompano
Beach site. We had previously submitted a lease to the County.
After meeting with Mr. Kerwin and Mr. Foye, we redrafted the
lease to address certain concerns which they had and this lease
has been resubmitted to them. We anticipate that we will arrive
at the resolution of the terms of this lease this month.
5. Waste Disposal Agreement. We have an agreement with
Waste Management relating to our use of their landfill in Pompano
Beach as a backup to the County' s interim landfill.
6. Agreement with Equipment Manufacturer. We are in
negotiations with Buhler as to the terms of the final contract.
We submitted an original contract which they revised, and we are
now in the process of negotiating the final contract.
Cities of Dania, Pembroke Pines , fX HI BI . s
Hallandale and pompano Beach
February 15,.
89
Page 4
we would appreciate your earliest consideration of this
matter.
Very truly yours,
REUTER RECYCLING OF FLORIDA, INC.
By
James T. Reuter, President
• Precision Machining • Blow Molding of Plastics
a • Computer Disc-Pack Spindles IN
C. • Structural Foam Molding
? 410UE SOUTH
• Design and Engineering • Rotational Plastic Molding
Service HOPKISo
55343-7878
Telephone 612-935-6921 FAX 933-5803 • Mechanized Refuse
• Waste Processing Collection Services
and Recycling Plants
December 21, 1988
Mr. Charlie Dodge
Assistant City Manager
City of Pembroke Pines
10100 Pines Boulevard
Pembroke Pines, FL 33025
Re: Pembroke Pines Solid Waste Composting Facility
Dear Charlie:
I thought that it would be appropriate to give you an update of some of the
key issues and current activities on the Solid Waste Composting Project.
1. Acquisition of the site.
The Option to Purchase Agreement for the property remains in effect until
February 19, 1989. On or before that date, we will notify the Seller and
close within thirty days thereafter.
2. Financing.
° We have a verbal commitment or "circle" through Dain Bosworth for the
construction financing of the Project. This is through Credit Suisse, a
very large Swiss bank. In conjunction with this, we are working with
three insurance companies to provide the permanent financing. Our
Commitment Letters should be executed in January.
3. Permitting.
We are proceeding with the necessary permits and approvals for the
construction and operation of the Pembroke Pines Facility. To date, we
have preliminary approval for the rezoning and platting of the site with
final approval for rezoning on December 21 , 1988. We will be applying for
the Site Plan approval in early January.
We have submitted our application for environmental review to the U.S.
Army Corp. of Engineers for wetlands control and dredge and fill. No
significant protests were made and this approval should be forthcoming,
Upon agreement of mitigation items. We are preparing our application for
the necessary construction permit from the Florida Department of
Environmental Regulations. Approvals from Broward County and the
Watershed District should be concurrent with the DM approval.
Mr. Charlie Dodge December 21, 1988
Page Two
4. Transfer station.
A draft lease agreement has been prepared and submitted to Broward County
for review and approval. This provides for a 20 year lease of. the Pompano
Beach, Florida transfer station site. Several meetings were held with Jim
Elias of the Broward County Utilities Division with many things being
resolved. We have received a preliminary approval of the lease subject to
agreement on the rent and agreement on the removal of the smokestack.
However, we were just recently informed that Mr. Elias has resigned his
position. We will be scheduling a meeting as soon as possible with
Messrs. Ed Goscicki and Ed Kerwin of the County and officials of Pompano
Beach to finalize the lease. The County will need to approve the
permitting of the facility as a transfer station as a condition of the
lease agreement.
5. Waste Disposal Agreement.
As has been stated previously, our preferred approach for residue disposal
is the new Broward County Landfill. This of course is being contested in
the lawsuit that the City of Pembroke Pines and others have filed.
Failing this, Waste Management of North America, Inc. has agreed to permit
us to use the landfill in Pompano Beach. We are continuing to pursue this
to an acceptable resolution.
6• Agreement with Equipment Manufacturers
The design is being completed which will allow us to confirm pricing with
Buhler-Miag. We expect to reach agreement and have a final contract with
Buhler in January.
I trust that this covers the critical items. If you need more information,
please give me a call. Best wishes for a Happy Holiday Season.
Sincerely,
)e�r7ir Waste Processing
JBM:cjd
cc: Danny Crew
Robert Flatley
R. J. Intindola