HomeMy Public PortalAboutRES-CC-2001-16Resolution 16-2001
A RESOLUTION APPROVING THE SOLID WASTE COLLECTION CONTRACT
AMENDMENT NUMBER TWO
WHEREAS, the Governing Body of the City of Moab has determined that the exemplary
performance by the contractor performing under the Solid Waste Collection Contract, dated
September 1, 1999 warrants a reduction in the performance guarantees required by Section 14 01
of the Contract, and
WHEREAS, Solid Waste Collection Contract Amendment Number Two is attached to this
resolution, and
WHEREAS, said amendment reduces the performance guarantee requirements of the Contract,
NOW, THEREFORE, we, the Governing Body of the City of Moab do hereby approve the
aforementioned amendment in substantially the form presented to this meeting of the Moab City
Council, and authonze the appropnate officials to sign and execute said amendment
This resolution shall take effect immediately upon passage
Passed and adopted by action of the Governing Body of the City of Moab in open session
this 26th day of June, 2001
CITY OF MOAB
By/1�0/%�/fra-x�,�
Karla R Hancock
Mayor
Attest
Rachel Ellison
City Recorder
Sohd Waste COmi9et Amendment Re501n1/00
Page I of 1
SOLID WASTE COLLECTION CONTRACT
AMENDMENT NUMBER TWO
For good and valuable consideration, The City of Moab, a Utah Mumcipahty, and
Bob's Sanitation, Inc mutually agree to a modification of the Solid Waste Collection
Contract, dated September 1, 1999, as follows
Section 14 of the contract is hereby terminated and replaced by the following new
language
14 01 Performance Bond For the duration of this contract Contractor shall execute,
deliver, and maintain at its own expense a financial guarantee in a form acceptable to
the City for the purpose of securing the satisfactory performance of the obligations
contained in this agreement The performance guarantee shall be in the form of a
surety bond, letter of credit, or certificate of deposit issued by a bank, insurance
company, or other reputable financial institution In the event of default, as defined
in the contract, the City shall be entitled to draw upon the financial guarantee up to its
stated limits for the purpose of reimbursing or obtaining payment for any and all
direct, incidental, and consequential damages resulting from breach, including costs
incurred collecting or contracting for the collection of solid waste
The amount of the financial guarantee shall not be less that one hundred thousand
dollars ($100,000 00) Contractor shall satisfy this Section by providing a certificate
of deposit or letter of credit in the amount of one hundred thousand dollars or a
combination of a certificate of deposit or letter of credit in the amount of $50,000 00
and a surety bond in the amount of $50,000 to meet the required amount The parties
agree that any certificate of deposit or letter of credit provided the Contractor under
this Section shall be the Pnmary Guarantee of performance In the event of default,
the Primary Guarantee shall be drawn upon first by the City, until such time as all
funds are exhausted Upon exhaustion of the Pnmary Guarantee, the City shall be
entitled to draw upon the surety bond, which shall be regarded as the Secondary
Guarantee Any change in the instrument(s) used to satisfy the financial guarantee
shall be approved in advance in writing by the City Manager
The surety on the performance bond shall be a licensed corporate surety authonzed to
transact business in the state of Utah A current power of attorney authorizing the
signatory to sign for and bind the surety shall accompany each surety bond posted
under this Section
In the event of any conflict between the terms of this amendment and the remainder of
the contract, this amendment shall control
d Waste Collection Contract
endnient No 1
;2
APPROVED AND ACCEPTED ON THE DATE SET FORTH BELOW
Bob's Sanitation, Inc
By
Robe
fr‘6�.,
awks, Pres7dent
City of Moab
May Kula Hancock
Attest
O` - Dodf-6'',
B(� �' iKMT/v I .1 - a i --(-, 1
Rachel Ellison, City Recorder Date