HomeMy WebLinkAboutResolution - 4687 - Agreement - Ponderosa Products Inc - Purchase & Sale Of Wood Residue & Materials - 12_15_1994Resolution No. 4687
December 15, 1994
Item #22
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 an Agreement for the Purchase and Sale
of Wood Materials, attached hereto, by and between the City of Lubbock and Ponderosa
Products, Inc., which Agreement 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
ATTEST:
4-ju�'- I'( C-J"i
Betty U. Johns City Secretary
APPROVED AS TO CONTENT:
u' Lxm)"
Debra Frankhouser, Assistant Solid Waste
Superintendent
APPROVED AS TO FORM:
G. Vandiver, First Assistant
DG V:da/ccdoc&?ONDROS A.res
rev. October 25, 1994
Resolution No. 4687
December 15, 1994
Item #22
AGREEMENT FOR THE
PURCHASE AND SALE OF WOOD MATERIALS
This Agreement is executed this 15 th day of December , 1994, by
the City of Lubbock ("City") and Ponderosa Products Inc. ("Ponderosa") for the purchase and
sale of wood residue and materials ("wood materials"). The City agrees to sell to Ponderosa, and
Ponderosa agrees to purchase from the City, all of the wood materials available to the City from
its landfill and refuse collection operations.
WITNESSETH:
1) The wood materials must be fully satisfactory to Ponderosa. Among other
qualifying factors, the wood materials must be clean and free of grit, rocks, trash, nails or any
metals, and must be otherwise acceptable as to size and moisture content. Ponderosa will inspect
all wood materials on arrival at Ponderosa's plant and will notify the City if any wood materials
are unsatisfactory. Ponderosa will dispose of any unsatisfactory wood materials in any manner it
may choose including its use in any plant process or as hogged fuel, and Ponderosa will not be
obligated to make any payment for any such unsatisfactory wood materials. Furthermore, if
Ponderosa rejects a load of unsatisfactory wood materials, it will have the option to deduct from
the payment due to the City, its freight costs, plus handling and disposal costs.
2) For each ton of wood materials delivered by the City to Ponderosa's hauler at the
City's landfill, Ponderosa will pay the City a price of $2.00 per ton for wood blocks and $8.00
per ton for saw dust. In order to remain competitive, however, it is agreed that Ponderosa will
have the option to lower the purchase price, upon thirty days written notice to the City. The City
will then have the option to proceed in accordance with the lower purchase price, or terminate
this Agreement. Ponderosa will pay the City on or before the last day of each calendar month for
such wood materials delivered to Ponderosa during the preceding month.
3) This Agreement is based upon Ponderosa obtaining loads from the City with a
minimum net weight of sixteen tons per trailer load. If the average net weight per trailer
significantly decreases under sixteen tons, or if Ponderosa's freight rates or costs significantly
increase for any reason, it is agreed that Ponderosa can terminate this Agreement upon ten (10)
days written notice sent by facsimile transmission to the City or reopen discussions regarding the
price for wood materials under this Agreement. A "ton" is defined as 2,000 pounds of wood
materials, based on Ponderosa's scale weights which are acceptable to Ponderosa as discussed
above.
4) Ponderosa will be allowed to curtail or suspend the purchase of wood materials
for any reason, upon one (1) day written notice sent by facsimile transmission to the City, and if
so, it will not be required to accept or pay for the City's wood materials until it resumes
purchasing again.
5) Any notices under this Agreement to Ponderosa will be sent to Ernie Rodriguez,
facsimile number (505) 843-7400 Ext. 289, phone number (505) 843,7400, and any notices to the
City will be sent to Debra Frankhouser, facsimile number (806) 762-2664, phone number (806)
767-2486.
6) The term of this Agreement will be for the three (3) year period beginning on the
first day of January, 1995 and ending the last day of December, 1997. After the Agreement has
expired, it will automatically renew on the same terms and conditions on a year-to-year basis,
unless either party terminates the Agreement upon thirty days written notice.
7) On each yearly anniversary date under this Agreement, the City shall have the
option to seek other bids, and Ponderosa shall have the option to match any bid price which is
tendered in good faith, or alternatively Ponderosa may allow the City to proceed with sales to
third parties, and to suspend the provisions of this Agreement for a one year period.
8) This Agreement constitutes the entire agreement, understanding and undertaking
of Ponderosa and the City.
DATED this 15 th
day of December 1994
PONDEROSA PRODUCTS, INC.
MA ERNIE ROD&eEZ
RAW MATERIALS MANAGER
ATTEST:
etty M. Johns n, City Secretary
APPROVED AS TO CONTENT:
012161(4)01 A
Debra Frankhouser, Assistant Solid Waste
Superintendent
APPROVED AS TO FORM:
ald G. Vandiver, First Assistant City Attorney
DGV:da/Inst-D10/ PONDROSA.doc
rev. December 2, 1994
AGREEMENT --PONDEROSA PRODUCTS, INC.
Page 2