HomeMy WebLinkAbout1979-732-R RESOLUTION #732
A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CONTRACT
WITH THE GENERAL TIRE & RUBBER COMPANY PROVIDING FOR THE SALE OF STEAM
BY THE CITY OF BATESVILLE TO GENERAL TIRE & RUBBER COMPANY.
WHEREAS, the Mayor and City Council of the City of Batesville, Arkansas
have contemplated the building of a solid waste incinerator for use of
the City of Batesville and to be owned by the City of Batesville and
whereas the Mayor and the City Council have committed the City of
Batesville to the use and purchase of a solid waste incinerator, and
WHEREAS, the General Tire & Rubber Company has sold to the City of
Batesville a certain part of real estate on which to place a solid
waste incinerator, and
WHEREAS, that real estate and the proposed- solid waste incinerator
will be located immediately adjacent to the General Tire & Rubber
Company Manufacturing plant in Batesville, and
WHEREAS, the solid waste incinerator will produce steam which can
be sold by the City to interested parties , and
WHEREAS, the General Tire & Rubber Company has indicated their willing-
ness and desire to purchase said steam from the City of Batesville, and
said General Tire & Rubber Company has submitted a proposed contract to
the City of Batesville for the City Council 's consideration concerning
the sell-purchase of said steam, and
WHEREAS, the City Council of the City of Batesville has studied the
contract proposed by General Tire & Rubber Company and the City Council
has determined that said contract meets with their approval , and
WHEREAS, General Tire & Rubber Company, due to its location and its
requirements, is the logical and most economically feasible purchaser
of said steam.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of
Batesville, Arkansas:
Section 1 : That the City Council of the City of Batesville, Arkansas
hereby agrees to sell the steam produced by the City of Batesville's
contemplated solid waste incinerator in accordance with the proposed
contract; provided that the solid waste incinerator plant does in fact
become a reality.
Section 2: That the City Council of the City of Batesville accepts
the proposed contract as the contract between the City of Batesville
and the General Tire and Rubber Company with regard to the selling of
steam to General Tire and Rubber Company, except for the condition stated
in Section 1 above.
Section 3: That the City Council of Batesville hereby authorizes
and directs the Mayor and City Clerk to execute said contract with the
General Tire and Rubber Company, authorizing the sell of steam by the
City of Batesville to General Tire and Rubber Company upon completion
of the proposed solid waste incinerator. That a copy of said contract
is attached hereto, marked Exhibit "A" and made a part hereof as though
fully set out herein word for word.
Section 4: That the City Council hereby acknowledges that the
contract authorized by Resolution #728 of the City of Batesville has
not been executed and that the present resolution concerns a contract
taking the place of the contract which was the subject matter of
Resolution #728 and the City Council hereby evokes the authority given
by it to enter into the contract which was the subject matter of
Resolution #728.
Dated this 19th day of December, 1979.
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Approved: ,
Peyton olden,2M& ��r�
ATTEST:
Larry Williams, City Clerk
AGREEMENT
THIS AGREEMENT made this day of OV�-��:G 't� , 1979,
by and between the CITY OF BATESVILLE, ARKANSAS, a Municipal Corporation
organized and existing under the laws of the State of Arkansas, hereinafter
referred to as "SELLER" and THE GENERAL TIRE b RUBBER COMPANY, a Corporation
existing and operating under the laws of the State of Ohio, with its princi-
pal offices at Akron, Ohio, hereinafter referred to as "BUYER". BUYER and
SELLER hereby agree to the purchase and sale of steam generated by the City
of Batesville, at its incinerator plant, to be constructed, under the terms
and conditions stated herein. ,
1. CONSTRUCTION OF SYSTEM
1.1 The SELLER agrees to sell steam of a quality and quantity specified
herein to the BUYER upon completion of construction of a steam gen-
erating incinerator plant on land to be purchased from the BUYER.
The construction of said incinerator and steam generating systems
shall be the sole responsibility of the SELLER and the BUYER shall
have no liability for said construction or operation of the facility.
1.2 SELLER agrees to construct the facility so that it may be operated
in compliance with all applicable codes and regulations of federal,
state or local authorities.
1.3 The SELLER agrees to provide all piping necessary to deliver steam
to the BUYER'S property line at a point designated as the discharge
side of the meter. All piping which lies on the property of BUYER
shall be installed and maintained by the BUYER and remain so subse-
quent to the termination of this AGREEMENT.
Aft
2. STEAM SPECIFICATIONS
2.1 The BUYER agrees to purchase its steam requirements from the SELLER
provided the 'SELLER complies with the terms and conditions of this
AGREEMENT.
2.2 SELLER agrees to furnish steam up to the BUYER'S maximum require-
ments, or up to the maximum amount available from its heat recovery
boiler whichever is less, at a pressure of 250 prig. min. Said*
steam shall be 99.5% saturated which shall mean that it will contain
not more than 1/2 of 1% moisture.
2.3 Steam supplied by SELLER shall be noncorrosive and nonscaling. The
SELLER shall condition the steam so that all chloride content or any
other chemical agent is removed to prevent damage to the piping,
equipment, or systems of the BUYER. The SELLER shall provide
monitoring equipment and maintain surveillance of steam quality
parameters at no expense to the BUYER. The steam shall be tested
and held within the following parameters:
Test Method Control Limits
pH 7.5 - 8.5 ,
Harndess 0 - 3
TDS (Total Dissolved Solids) 2000 - 2500
Sulphite 25 - 50
Phosphate 10 - 20
2.4 Steam shall be made available to the SELLER 24 hours per day, .five
days per week from 5:00 p.m. Sunday to 12:00 midnight Friday with
any interruptions or any changes of this service to be in accordance
with the provision of Section 4.4 of this AGREEMENT.
2.5 Nothing contained in this AGREEMENT shall be.deemed to limit or
impair the BUYER'S ability to operate its own steam systems. This
AGREEMENT shall not obligate the BUYER to purchase steam in excess
of its requirements from the SELLER.
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2.6 Steam measurement shall be by a meter installed by the SELLER
located in close proximity to the point of delivery. The SELLER
shall be responsible for maintaining the accuracy of measurement of
said meter, and disputes regarding its accuracy shall be accepted by
the SELLER when made by the BUYER and result in the examination of
the meter by a qualified service representative of the manufacturer
with the cost of the examination to be borne by the party to this
AGREEMENT who has made an incorrect assessment as to the meter's
accuracy prior to the examination. An adjustment will be made to
prior billings subject to mutual agreement of the parties.
3. PAYMENT TERMS
3.1 BUYER shall pay a base price per 1,000 pounds of steam as specified
above measured in accordance with provision 2.6. This price is to
CW be calculated utilizing a formula based upon the lowest cost fuel
energy (natural gas or number 6 oil) available to BUYER at its
Batesville Manufacturing Plant. Such- cost of natural gas or oil
shall be the actual price paid by BUYER each billing month or the ,
published price available to the BUYER at that location.
3.2 In the event an alternate fuel becomes available to the BUYER for
operation of its steam generation systems at a price less than the
comparable BTU value of the above fuels, the BUYER shall give writ-
ten notice to the SELLER and upon the passage of 60 days this
AGREEMENT shall be amended to index the formulae specified herein
upon the new fuel then available.
3.3 The charges for metered steam consumed by BUYER will be billed
monthly to-. BUYER by the SELLER. All,-payments will be due from BUYER
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to the SELLER within Chitty (30) days of the billing date. The
SELLER may charge a 1% late charge on any bill not paid within said
thirty (30) day period; and, if without cause, such billing is not
timely paid with late charge within forty (40) days of the billing
date, the SELLER may discontinue service upon not less than five (5)
days written notice to BUYER.
3.4 The charges of steam will be based on the following schedule at - the
discounted price:
(Example) (Example)
Maximum Maximum
Steam Price Discounted
Base Fuel Price 1.5 x Fuel Price Discount Steam Price
($ Per MM BTU) ($ Per 1,000 Lbs.) (X) ($ Per 19000 Lbs.)
1.61 - 1.70 2.55 17 2.117
1.71 - 1.80 2.70 18 2.214
1.81 - 1.90 2.85 19 2.309
1.91 - 2.00 3.00 20 2.400
2.0,1 - 2.10 3.15 21 2.489
2.11 - 2,20 3.30 22 2.574
2.21 - 2.30 3.45 23 2.657
2.31 - 2.40 3.60 24 2.736
2.41 - 2.50 3.75 25 2.813
2.51 - 2.60 3.90 26 2.886
2.61 - 2,70 4.05 27 2.957
2.71 - 2.80 4.20 28 3.024
2.81 - 2.90 4.35 29 3.89
2.91 - 3.00 4.50 30 3.150
Above 3.00 - 30
3.5 Pricing structures under this AGREEMENT shall be reviewed annually
by the parties. Any adjustments shall be mutually agreed upon in
writing as an amendment to this AGREEMENT, otherwise the price
structure shall remain the same as previously agreed.
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1. OPERATION OF THE DISPOSAL PLANT
4.1 SELLER agrees to operate and maintain the Disposal Plant and steam
generator in 4a professional manner to avoid any unnecessary inter-
ruption or degradation of steam quality or other services to the
BUYER.
4.2 SELLER agrees to supply its own make-up water, properly conditioned
and deaerated so as to provide noncorrosive, nonscaling, and dry
saturated steam specified above. If the steam does not meet this
quality criteria, BUYER shall have the right to refuse further
delnveries, may make no further payments hereunder and may terminate
this AGREEMENT. In the event of a dispute on steam quality, the
SELLER will immediately acknowledge complaints of the BUYER and if
necessary, service personnel representing manufacturers of the
BUYER'S equipment shall be retained to make an opinion regarding the
steam quality and its effect on the BUYER'S equipment. Such opinion
shall be binding upon the parties.
4.3 The BUYER shall return all condensate surplus to its needs. BUYER
shall have no liability for quantity, .quality or character of con- ,
densate returned. BUYER shall compensate SELLER for condensate not
returned based on the following formula:
(S-C) 0.144 P + F (S-C) = Billing for nonreturned condensate
WHERE:
S = 1,000 lbs. of steam delivered
C - 1,000 lbs. of condensate returned
P = Price of 1,000,000 BTU's for lowest price fuel available to
BUYER
F = Cost per 1,000 lbs of treated feed water
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The coat of treated feed water (F) shall be $0. 10 per 1,000 lbs.
This price shall be evaluated at the end of five (5) years and shall
be adjustedsto reflect the actual cost of raw water, testing, and
chemicals for boiler feed water.
4.4 The SELLER agrees to give BUYER immediate notice by the quickest
means possible of any unplanned interruption of the steam supply and
to give as much advance notice as possible of all planned interrup-
tions of the steam supply, provided that any planned interruption of
the steam supply will be coordinated with BUYER to protect- BUYER'S
equipment from damage which may result from interruption of the
s
steam supply.
Anything heron to the contrary notwithstanding, should the steam
supply to BUYER be interrupted or fail by reason of any cause beyond
the SELLER'S control, such interruption will not constitute a breach
of this AGREEMENT, and the SELLER will not be liable to BUYER for
damages by reason of any such failure.
4.5 If proper notice is given by the SELLER to BUYER as hereinabove
indicated, the SELLER shall not be liable to BUYER for damages
resulting from the termination or interruption of service required
for the making of necessary repairs, installations, or improvements
or any other reasonable cause beyond the control the the SELLER.
4.6 In the event BUYER'S plant or the SELLER'S Waste Disposal and Energy
Recovery System shall be damaged or destroyed or their operations
interrupted by Act of God, fire; other acts of the elements, riots,
civil disorder, war or any other cause beyond the reasonable control
of BUYER or the SELLER, then in such event either party hereto shall
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be relieved from performance under this AGREEMENT, until normal
operations are restored.
4.7 The SELLER shall be responsible for performance of its obligations
under this AGREEMENT even though the SELLER may have contracted with
a third party for performance of all or part of its obligations.
Failure by the SELLER to fully perform its obligations under both of
said AGREEMENTS shall relieve BUYER of its obligations hereunder.
4.8 In the event either party desires to obtain business interruption
insurance for its respective facility, each agrees, upon reasonable
notice from the other, to permit inspection of its facilities by ,
representatives of the insurance company during reasonable working
hours.
4.9 The SELLER promptly will remove and properly dispose of the ash
residue and any other waste products resulting from its operation of
the waste disposal and energy conversion systems. Such removai 'and
disposal of waste products will be on a regularly scheduled basis
and in accordance with all applicable local, state and federal
rules and regulations. '
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5. AMENDMENT OF AGREEMENT
5.1 This AGREEMENT supersedes all prior negotiations and oral under-
standings, if any, and may not be amended or supplemented except by
an instrument in writing signed by both parties hereto.
6. NOTICES:
6.1 Notices required under 4.5 will be given to and from the respective
local operating personnel of the SELLER and BUYER. Notices other
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Aft
than those required under 4.5 will be deemed properly given when in
writing, sent by certified mail, postage prepaid and addressed:
If to City: Mayor of Batesville
City Hall
Batesville, Arkansas 72501
If to General: Plant Manager
The General Tire b Rubber Company
P.O. Box 2237
Batesville, Arkansas 72501
or at such other place as the respective parties may from time to
time designate in a written notice to the other.
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7. TERMS:
7.1 BUYER and SELLER agree that this AGREEMENT shall expire at the end
of a term of twenty (20) years and may be renewed by the parties
prior to expiration. Either party may terminate this AGREEMENT upon
six (6) months prior notice to the other party.
7.2 The BUYER'S obligation to purchase steam under this AGREEMENT shall
exist only so long as there exists requirements for steam at its
manufacturing facility or the SELLER, or the City of Batesville it
another party becomes the SELLER of steam hereunder, continues to
receive solid, liquid and fluid waste from the BUYER at competitive
rates. Additionally, in the event BUYER sells, curtails or closes
manufacturing operations at Batesville prior to the termination of
this AGREEMENT or any renewals thereof, there shall be no further
financial obligation or liability hereunder for BUYER.
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8. WASTE DISPOSAL
8.1 The SELLER is to accept, receive, store and incinerate or otherwise
dispose of all of the solid and liquid waste and scrap materials
from BUYER on an as-received basis if the 'conditions listed below
are met:
(a) Providing such waste can be incinerated in an environmentally
safe manner in a properly operated controlled air incinteration
facility.
(b) Providing the liquid or fluid waste is a combustable material.
(c) Providing the liquid or fluid waste are delivered in containers
or in such a manner that they can be fed into the burning
equipment without creating any unusual problems.
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(d) Providing the waste is not deemed a hazardous waste with
respect to handling or incineration.
BUYER will attempt to schedule the delivery of its waste to the
SELLER'S facility on an off-shift basis or any other mutually agree-
able time to enable the SELLER to balance the fuel availability for
the incinerator; however, this is not to be interpreted to mean that
the SELLER will not accept the waste from BUYER'S plant any less
frequently than once per day excepting Saturdays, Sundays and holi-
days, unless mutually agreeable. If the SELLER desires to accumu-
late BUYER'S waste and/or blend it to balance the thermal heat
content of the refuse fired to the incinerator, the burden for this
operation and/or equipment required will be the responsibility of
the SELLER.
BUYER'S present waste materials are represented by the attached list
and wastes containing any composition thereon shall be accepted by
the SELLER for waste disposal under present regulations of federal
and state authorities.
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8.2 BUYER is held harmless from to any liability in regard to either
CW civil or criminal action concerning the following items:
1. Complianje with Envirnomental Protection Agency rules and regu-
lations covering the operation of the incinerator, including the
gathering and delivery of the refuse to the incinerator plant.
2. Air pollution generated by the incinerator facility, including
odor, particulate matter, smoke emission, suflfur compounds,
nitrogen compounds, hydrocarbon emissions, general nuisance, etc.
3. Compliance with any federal, state or local rules or regulations
or laws regarding water pollution or disposal of condensate
process water, drainage water, or storm water from the inciner-
ator facility.
4. Compliance with federal, state and local` standards or codes
relating to noise, safety, OSHA or any other rules or regula-
tions concerning industrial health and/or safety.
S. Labor conflicts, civil disturbances, riots, etc. , with respect
to the operation of the incinerator.
8.3 Neither party shall have the power or .right to make assignment of
any rights or obligations under this AGREEMENT without the
express prior written consent of the other party.
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IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be
duly executed this �� day of ,fin i , 1979.
•
CITY OF BATESVILLE, ARKANSAS
By —6,e4j
G --
Mayor
(SEAL)
ATTEST:
THE GENERAL TIRE & RUBBER COMPANY '
.
City Clerk By ♦��
Uva
ATTEST:
(CORPORATE SEAL)
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0022A
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. APPENDIX A
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1. pol-5 COX. P 51. ETU-7 5A
2. SSIK 1515 $2. MINFRAL RUAd
3. SSR 1502 $3. AWA KITWL
A. SSR 1503 34. P N OIL
S. SIR 16Q1 55. C11MAR P-255
6. SIR 1778 $6. PARArt.VX
7. MEOPKM9 W-M $7. RMEX 61L
S. WCOP"..Kt TY $9. SVMIIENE 424
9. NEOPRENE n'H 59. 01 L K! 140
10. KRYMC W 60. 2-L SROWN TA
11. VISTA 2504 61. AROMATIC OIL
12. VISTALON 6SO 61'. SUM OLEATE
13. ROYALENE 501 63. S1111PAR 2280
14. EPSYX 55 64. PICOO 6100-1
15. ROTALEY1 S21 65. Tt-75
16. AMERIPOL C/ ii. STAN rIAS LP
17. AM1]IIPOL $N 67. DIXIE LLAT
IS. MAW, 4 S 68. DI fAL 4 2
19. VISTANEX L S 69. NI SIL 215
20. AC13UTE RES1 70. ATOMITE ,
21. FLZML H 71. DISPERSIM CA
22. ANTIOXIDAYT. 72. ZINC OXIDE
23. ACLR17E SUPE 73. STr'ARIC ACID
24. SUN A`.'T1-C11E 74. McNrSIl`1 OX
25. TLEXONE 611 75. PIIn:01.7c RES
26. w 76. XINC STI.RrAT
27. ACMITE SIAL 77. Ri•'TARDER W
28. IOP 62 73. SA).'TAC,;XD rV
29. PM-JLT.LD -IILX 79. MT-K5 BI.kcK
�r 30. SULYVA 80. rtF IL%CK
31. SULIEI'R INSOL $1. SRF S11�CK
32. METHYL LVAUS 82. HAT-LS DIJ,CK
:13. MLThYL ZIY.AT tl. STATEY `4-70
34. ALTAR $4. SIrACK x990 T
35. TIIIONEX 15. 1 STATER M CA
36. SANTOCURt 86. 9" 1
37. NUTYL MAT 17. VULCAR M 014-
37. TETT.010E A It. M 754 SLACK
39. NOR$ SPECIAL 19. C1i14M 0.To
40. CIM TE 90. KEKPOKE 200
41. D.L.T.u. 91. 11K-OT
42. D11= 40C 92. DKFT 931
43. 11101ATt 93. LATEX WBE
44. >iF1fTEKE
45. 1,13MONE f
46. ACCEL A 1
47. LEDATt
48. MOTS h
49. Cl:r.AC ACCEL
50. SAIITOCURE 9