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HomeMy WebLinkAboutResolution - 4435 - Ground-Lease Agreement-SOJO Treatment LC-Temporary Transfer Facilitiy, Landfill - 03_24_1994Resolution No. 4435 March 24, 1994 Item #35 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Ground -Lease Agreement between the City of Lubbock and SOJO Treatment, L.C. for lease of land at the City of Lubbock Landfill for a temporary transfer facility to be operated by SOJO Treatment, L.C., which Agreement is attached hereto, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 24th day of March 1994. ATTEST: &Ct�_ jk I Betty M'Johnson, 61ity Secretary APPROVED AS TO CONTENT: , " �t i . ct Lee Ramirez Solid Waste Superintendent APPROVED AS TO FORM: Jt# C. Ross, City Attorney JCR: dp\G:bcdocs\SOJO.Res March 14, 1994 CITY OF LUBBOCK CITY ATTORNEY' S OFFICE MEMORANDUM TO: Bob Cass, City Manager FROM: John Ross, City Attorney SUBJECT: SOJO Treatment L.C., Liability Insurance DATE: April 12, 1994 As you recall at the last Council meeting the Council considered Resolution #4435 authorizing a Ground -Lease Agreement between the City of Lubbock and SOJO Treatment, L.C. for lease of land at the City of Lubbock Landfill for a temporary transfer facility to be operated by SOJO Treatment, L.C. This Resolution was passed on the condition that the City Attorney certify that SOJO has environmental insurance coverage for spill mitigation. I have reviewed the policies and cannot certify that they contain such coverage. Please see interoffice memorandum dated April 8, 1994, to me from Martha Ellerbrook verifying the fact of no environmental coverage. I would suggest that this item be put back on the Council agenda in light of the information contained in the attached memorandum to determine whether or not Council feels it should vary from its prior course of action restricting approval of this Agreement without environmental insurance coverage. Thank you, �i John C. Ross JCR/dp cc: Larry Hoffman, Director of Transportation ee Ramirez, Solid Waste Superintendent VBetty Johnson, City Secretary CITY OF LUBBOCK INTER -OFFICE MEMORANDUM DATE: April 8, 1994 TO: John Ross, City Attorney FROM: Martha Ellerbrook, Environmental Compliance SpecialistL/1� SUBJECT: SOJO Treatment L.C., Liability Insurance The following is information concerning SOJO Treatment's liability insurance. This information is being presented in response to City Council's concern of an exclusion for pollution control liability on SOJO Treatment's current insurance policy. 1) Pollution Control liability is automatically excluded from all general liability policies, unless an additional endorsement for pollution control liability is purchased. SOJO Treatment did not purchase the additional endorsement for this type of coverage. 2) The type of material which SOJO Treatment is authorized to accept is NON -HAZARDOUS. Therefore any spill which may occur could be cleaned -up (dirt and spill material) and placed in a roll -off container, mixed with additional dirt if necessary to prevent free liquids from escaping, and disposed of, with special authorization, in the City of Lubbock's Landfill, or at the BFI landfill in Canyon, Texas. 3) The pollution control liability would be an additional cost for SOJO Treatment of approximately $2,300/year. The additional cost would cause SOJO Treatment to close the temporary facility. Closure of this facility would drastically affect the businesses in Lubbock by causing local haulers to increase the cost of pumping grease and grit traps and disposing of this material in Canyon, Texas. Obviously this cost would in turn be passed on to the customers (restaurants, hospitals, nursing homes, car washes, etc.). Local companies are already decreasing the cleaning frequency of the traps, thereby resulting in problems in the wastewater collection system and at the wastewater treatment plant. Please inform me of the status of the SOJO Treatment Lease Agreement at your earliest convenience. If you have additional questions or comments, please feel free to contact me at ext. 2498. xc: Larry Hoffman, Director of Transportation Lee Ramirez, Solid Waste Superintendent Debra Frankhouser, Assistant Superintendent of Solid Waste file Resolution No. 4435 March 24, 1994 Item #35 STATE OF TEXAS § COUNTY OF LUBBOCK § GROUND LEASE AGREEMENT WITNESSETH: This Agreement is made and entered into this 24thday of March , 1994, by and between the City of Lubbock, Texas, herein referred to as Lessor, and Sojo Treatment, L.C., herein referred to as Lessee. 1.) DEMISE OF LEASED PREMISES. In consideration of the mutual covenants set forth in this Lease and other good and valuable consideration, Lessor does hereby demise and lease to Lessee, and Lessee does hereby lease from Lessor, the premises situated in Lubbock County, Texas, more particularly described on the map attached hereto as Exhibit A. Lessee is to have and to hold the leased premises, together with all rights, privileges, easements, appurtenances and immunities belonging to or in any way appertaining to the leased premises, including, but not limited to, any and all easements, rights, title and privileges of Lessor, existing now or in existence at any time during the lease term. 2.) LEASE TERM. This Lease shall be for a term of five (5) months from the date of execution hereof by all parties. This Lease may be extended by the parties upon mutual consent of the parties upon the same terms and conditions for another two months, if necessary. 3.) TERMINATION. This Lease shall terminate in accordance with the provisions of paragraph 2 without further notice. In addition, this Lease may be terminated sooner by either party upon thirty (30) days written notice to the other Ply• 4.) RENTAL PAYMENT. Lessee hereby agrees to pay in consideration of such use, as well as the furnishing by the City of dirt and other building materials the sum of $.01 per gallon of liquid waste received at such facility as reflected by the manifests furnished to Lessee by transporters. Such payments shall be made to the Lessor monthly within ten (10) days of the first of each month during the lease term. The Lessor shall have the right to review all manifests prior to payment by Lessee. 5.) USE OF PREMISES. Lessee shall have the right to use the premises for the purposes of constructing and operating temporary waste loading facilities at the City of Lubbock landfill, as is more fully set forth in the Proposal for Transfer of Grit & Grease Trap Waste dated September 18, 1993, and attached hereto as Exhibit B and made a part hereof for all intents and purposes. Lessee agrees not to use any or all of the leased premises for any use or purpose in violation of any valid and applicable law of the United States, the State of Texas, or the City of Lubbock, or other lawful authority having jurisdiction over the leased premises. Lessee hereby agrees to design and operate the facility in such a manner as to prevent spills of the non -hazardous waste being received and in the event any spill does occur, the Lessee agrees to use landfill dirt to dispose of such material without further cost to the Lessor. Lessee hereby agrees that prior to termination of this Lease agreement, Lessor's premises shall be returned to the same condition as when this Lease agreement was commenced and Lessee shall be responsible for any environmental impact or cleaning required without cost to Lessor. 6.) CONSTRUCTION BY LESSEE. Lessee shall have the right at any time and from time to time during the term of this Lease to erect, maintain, alter, construct, reconstruct, build or rebuild such improvements as Lessee shall deem beneficial and necessary to the project, subject only to the following general conditions: (a) The cost of any such work shall be borne by the Lessee. (b) Detailed plans of the facilities to be constructed will be submitted for review and approval to the Lessor prior to commencement of construction. Approval of such plans shall not be unreasonably withheld by Lessor. (c) The leased premises shall at all times be kept free of mechanic's and materialmen's liens. (d) Lessor shall be notified of the time of commencement and the general nature of such work, other than routine maintenance. 7.) RIGHT TO REMOVE IMPROVEMENTS. Lessee shall have the right at any time within ninety (90) days of the end of the lease term to remove any and all equipment, machinery or trade fixtures, owned or placed by Lessee. 8.) LESSEE'S DUTY TO MAINTAIN AND REPAIR. At all times during the term of this Lease, Lessee will keep and maintain or cause to be kept and maintained, the leased premises and all equipment and improvements which may be erected on the leased premises in a good state of appearance and repair at Lessee's expense. Ground Lease Agreement - Page 2 9.) INSURANCE. At all tunes during the term of this Lease, Lessee shall provide and keep in force liability insurance covering Lessee and Lessor for liability for property damage and personal injury. This insurance shall be in an amount of not less than $25,000 for property damage and $50,000 for personal injury per occurrence. Lessee shall furnish Lessor with a certificate of insurance indicating the above coverages prior to commencement of operations on the leased premises. 10.) INDEMNIFICATION OF LESSOR. Lessee hereby agrees indemnify and hold Lessor harmless from any loss, damage or injury of any kind or character arising from any use of the leased premises, or any part of the leased premises, or caused by any defect in any building, structure, improvement, equipment or facility on the leased premises or caused by or arising from any act or omission of Lessee, or any of Lessee's agents, employees, licensees or invitees. 11.) ASSIGNMENT OR SUBLEASE. Lessee may not assign the premises or any portion of the premises or sublease the premises or any portion of the premises without the written consent of the Lessor. 12.) RIGHT OF ENTRY AND INSPECTION. Lessee shall permit Lessor or Lessor's agents, representatives or employees, to enter on the leased premises for purposes of inspection, determining whether Lessee is in compliance with the terms of this Lease or for the purposes of maintaining, repairing or altering the premises. 13.) DELIVERY OR RENTS. All payments, notices, demands or requests from Lessee to Lessor shall be given or mailed to Lessor at Solid Waste Management, P.O. Box 2000, Lubbock, Texas 79457, or at such other place as shall be requested by Lessor in writing. 14.) TEXAS LAW TO APPLY. This agreement shall be construed under and in accordance with the laws of the State of Texas, and all obligations of the parties created by this lease are performable in Lubbock County, Texas. 15.) AMENDMENT. No amendment, modification or alteration of the terms of this Lease shall be binding unless it is in writing, dated subsequent to the date of this Lease and duly executed by the parties to this Lease. Ground Lease Agreement - Page 3 THIS LEASE is executed by the parties hereto on the first date hereinabove stated at Lubbock, Texas. SOJO TREATMENT, L.C.: OF LUBBOCK: VID R. LAMSTON MANAGER AND VICE PRESIDENT MAYOR ATTEST: Secretary ATTEST: &'t-' 'U-C�'� Betty . John on, City Secretary APPROVED AS TO CONTENT: V� Lee R z, Solid Waste Superintendent APPROVED AS TO FORM: C- ohn C. Ross, City Attorney Ground Lease Agreement - Page 4 STATE OF TEXAS § COUNTY OF LUBBOCK § The foregoing instrument was acknowledged before me on the day of , 1994, by Stephen B. Aikman. Notary Public, State of Texas My commission expires STATE OF TEXAS § COUNTY OF LUBBOCK § The foregoing instrument was acknowledged before me on the 24th day of March , 1994, by David R. Langston. My commission expires 9 - dd2/sojoemdoc � ' &&-e "Z�tJ Notary Public, State of Texas LOU IS"" VW%LM I (a - - - Mr CMa E*M 10, M Ground Lease Agreement - Page 5 L z ( CELL ao CELL I �Ia I CELL VI L-- -- 1 N 1 NO SCALE MAINTENANCE BUILDING SCALE HOUSE PROJECT LOCATION SOJO LUBBOCK GRIT and GREASE TRANSFER STATION LOCATION MAP PARKHILL, SMITH d COOPER, INC. Ex hi 61 A 146' Ares. ' -♦-- $2,. —r r->o"— �4S' S�rc L4vouT ur SOJO LUBBOCK GRIT .and GREASE TRANSFER STATION ""' SITE LAYOUT : k"j, bi PAM LI., SIXTH & COOPER, INC. SOJO TREATMENT, L.C. 24 SMITH ROAD. Su1TE 200 MIDLAND. TExAs 79705 915-U2.7954 (OFF) 915.U4-7455 (FAX) September 18, 1993 Mr. Lee E. Ramirez Superintendent of Solid Waste P.O. Box 2000 Lubbock, TX 79403 Re: Proposal for Transfer of Grit & Grease Trap Waste Dear Lee: Pursuant to your request, following is a proposal for the collection of grease and grit trap wastes from the City of Lubbock to the Type-V processing facility owned and operated by Sojo Treatment (MSW-2183) located in Abiler. T--cas. Sojo will, in conjunction with Bergstein Environmental, Inc., construct and operate waste loading facilities at a location within the permitted area of the City of Lubbock landfill. Detailed plans of these facilities will be made by the engineering firm of Parkhill, Smith & Cooper, and will be provided to you. These facilities are temporary and will be operated until approval is received by Sojo from the Texas Natural Resource Conservation Commission ("TNRCC") to operate the Type-V plant currently being permitted at Lubbock under MSW-2231. It is expected that this plant will be operational in February, 1991. Sojo will use its best efforts to secure authorization from the TNRCC to operate the proposed transfer facilities, and agrees to comply with all regulations of the TNRCC and the City of Lubbock in such operations. Sojo will furnish an employee to supervise the inspection, loading and transfer of such wastes. Said employee will be able to use the facilities at the landfill to perform his duties. In consideration for such use, as well as the furnishing by the City of dirt and other building material for such facilities, Sojo agrees to pay to the City of Lubbock the sum of $0.02 per gallon of waste received as reflected in the manifests furnished to Sojo by the transporters. The City shall have the right to review all manifests, and inspect all wastes, prior to their receipt by Sojo. While it is contemplated that the facilities will be designed and operated to prevent any spills of the non -hazardous wastes being received, in the event a spill does occur, Sojo will be able to mix any spilled wastes with dirt from the landfill, and dispose of same without cost. Sojo and Bergstein Environmental, Inc. agree to indemnify the City of Lubbock from any claims arising from the construction and operation of such facilities. Sojo :agrees to provide the City of Lubbock thirty (30) days notice prior to termination of operation of the facilities. Mr. Lee E. Ramirez September 18, 1993 page two Operational details of the facility will be mutually agreed upon by the City of Lubbock, Bergstein Environmental, Inc. and Sojo Treatment, L.C. prior to the commencement of such operations. In the event the foregoing meets with your understanding and approval, please so indicate by signing and returning two copies of this letter to me at your earliest convenience. Thank you for your assistance and cooperation in this matter. Yours very truly, ?ATMENT, L.C. KAikan and Vice -President AGREED TO AND ACCEPTED this day of , 1993. CITY OF LUBBOCK By: BERGSTEIN 7/7 , INC. Pieter Bergstein President