FY2021-01 Threshold Services Contract Agreement For The Collection And Processing Of Recyclable Materials Within The Kodiak Island Borough\\dove\borough\CL\U - RECORDS\FORMS\contract transmittal form NJ.docx Rev. 12/23
CONTRACT TRANSMITTAL FORM
RETENTION SCHEDULE: CL-09 CONTRACTS
R ecords related to obligations under contracts, leases, and other agreements between the borough and
outside parties, successful bids, and proposals. Each department maintains the file while the contract is active.
once inactive, retain procurements for another 4 years and retain contracts, leases, or agreements involving
real property for another 11 years.
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CONTRACT NO.:
CONTRACT TITLE:
VENDOR OR SERVICE PROVIDER:
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the Assembly during a meeting.
APPROVED BY: MANAGER ASSEMBLY DATE OF APPROVAL:
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EXTENSION OPTIONS:
EXPIRATION DATE:
PURGE DATE FOR PROCUREMENT (Exp. + 4 yrs): OR
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If there’s no expiration date, give the process on how or when this record should be purged or flagged for review.
June 16, 2023
Threshold Services
ATT: Chris Lynch
PO Box 8709
Kodiak, AK 99615
Kodiak Island Borough
Engineering & Facilities Department
710 Mill Bay Road
Kodiak, Alaska 99615
Phone (907) 486-9357 Fax (907) 486-9394
dconrad@kodiakak.us
RE: Third Year Extension of the Recycling Services Contract
Contract# FY2021-01C
Dear Ms. Lynch
With this letter the Kodiak Island Borough wishes to exercise our option for the second -year
extension option to your existing Recycling Services Contract until June 30, 2024. The same
provisions of the original contract will remain in effect.
Please review your insurance certificates; General liability insurance with the Borough named as
additional insurer, Workers Compensation insurance, Automobile insurance to make sure they are
current with the limits outlined in the original agreement. After review of said documents please
provide the Kodiak Island Borough with a current copy of the three documents for our records.
You may acknowledge your acceptance of this renewal by signing at the second page of this
document and returning to our office.
"mere'y,
ector
Kodiak Island Borough
Engineering & Facilities Dept.
Extension Letter: Recycling Services Contract
Contract # FY2021-01C
Page 1 of 2
ACKNOWLEDGEMENTS
Signatures of parties to contract acknowledging the extension of contract for the third of four
one-year extensions per the original contract.
im a Williams
Kodiak Island Borough Manager
Threshold Services
Kodiak Island Borough Clerk
Extension Letter: Recycling Services Contract
Contract # FY2021-01C
Page 2 of 2
Date 2-6 SwrJ Z2
Date � - W - Zy
Date f0 /Za l v3
April 7, 2022
Threshold Services
ATT: Chris Lynch
PO Box 8709
Kodiak, AK 99615
Kodiak Island Borough
Engineering & Facilities Department
710 Mill Bay Road
Kodiak, Alaska 99615
Phone (907) 486-9357 Fax (907) 486-9394
dconrad@kodiakak.us
RE: Second Year Extension of the Recycling Services Contract
Contract# FY2021-01 B
Dear Ms. Lynch:
With this letter the Kodiak Island Borough wishes to exercise our option for the second -year
extension option to your existing Recycling Services Contract until June 30, 2023. The same
provisions of the original contract will remain in effect.
Please review your insurance certificates; General liability insurance with the Borough named as
additional insurer, Workers Compensation insurance, Automobile insurance to make sure they are
current with the limits outlined in the original agreement. After review of said documents please
provide the Kodiak Island Borough with a current copy of the three documents for our records.
You may acknowledge your acceptance of this renewal by signing at the second page of this
document and returning to our office.
erely,
David Conrad, Director
Kodiak Island Borough
Engineering & Facilities Dept.
Extension Letter: Recycling Services Contract
Contract # FY2021-01B
Page 1 of 2
ACKNOWLEDGEMENTS
Signatures of parties to contract acknowledging the extension of contract for the second of four
one-year extensions per the original contract.
a"
Roxanne Murphy "7
Kodiak Island Borough Manager
Jhrisynch
Threshold Services
Nova Javier, Attesting
Kodiak Island Borough Icting Clerk
Extension Letter: Recycling Services Contract
Contract # FY2021-01B
Page 2 of 2
Date 6 /6 �I
Date A- -1 -Z,-7 _
Date 1 4o
�• � -- � ,'gyp..
July 7, 2021
Threshold Services
ATT: Chris Lynch
PO Box 8709
Kodiak, AK 99615
Kodiak Island Borough
Engineering & Facilities Department
710 Mill Bay Road
Kodiak, Alaska 99615
Phone (907) 486-9357 Fax (907) 486-9394
dconrad@kodiakak.us
RE: First Year Extension of the Recycling Services Contract
Contract# FY2021-01A
Dear Ms. Lynch:
With this letter the Kodiak Island Borough wishes to exercise our option for the first-year
extension option to your existing Recycling Services Contract until June 30, 2022. The same
provisions of the original contract will remain in effect.
Please review your insurance certificates; General liability insurance with the Borough named as
additional insurer, Workers Compensation insurance, Automobile insurance to make sure they are
current with the limits outlined in the original agreement. After review of said documents please
provide the Kodiak Island Borough with a current copy of the three documents for our records.
You may acknowledge your acceptance of this renewal by signing at the second page of this
document and returning to our office.
Sincerel
att Gandel, Project Manger for
David Conrad, Director
Kodiak Island Borough
Engineering & Facilities Dept.
Extension Letter: Recycling Services Contract
Contract # FY2021-01A
Pagel of 2
ACKNOWLEDGEMENTS
Signatures of parties to contract acknowledging the extension of contract for the first of four one
year extensions per the original contract.
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Michael Powers
Kodiak Island Borough Manager
A L
hrts Lynch
Threshold Services
Alis 1: g
Kodia Island Borough Clerk
Date —7
Date
Date
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Extension Letter: Recycling Services Contract
Contract # FY2021-01A
Page 2 of 2
CONTRACT FY2021-01
AGREEMENT FOR RECYCLING SERVICES
THIS AGREEMENT made this 17th (Day) of July, 2020 (Month & Year) by and
between the Kodiak Island Borough (KIB) and THRESHOLD SERVICES INC.
hereinafter called the Contractor.
WITNESETH:
That the KIB and Contractor for the consideration hereinafter recited agree as follows:
Proiect. The Contractor agrees to perform services which shall be defined by the following and
any additional specifications and addenda thereto which are signed by the parties or incorporated
herein as part of this Agreement, which documents are hereinafter referred to as the Contract
Documents. The essential project activities include the Contractor's response to the Request for
Bids (RFB) dated May 11, 2020 and it is included as Exhibit A as additional information
regarding this Agreement.
The Contractor will provide all labor, equipment, personnel, quarterly reports, and payment
invoices in a timely manner as outlined in this Agreement. The Contractor agrees to perform all
services necessary for the processing and shipment of recyclable materials within the city and
borough limits. The KIB will continue to cover costs associated with tipping the cardboard
recycling dumpsters that are received by the Contractor. Contractor will collect and process
cardboard, mixed paper/paperboard, newspaper, plastic, aluminum cans and office paper.
Recyclable material does not include large metal items such as vehicles, parts of vehicles,
appliances, or home construction type of siding. Contractor will implement the processing
methods and collection as described in its RFB and cover all costs associated with Contractor's
collection and handling of recyclable materials.
1. Job Commencement and Performance. The Contractor shall commence work on July 1,
2020.
2. Duration of Agreement. The term of this agreement is for one (1) year with four (4) one-
year (1 -year) extension options. The agreement will start on July 1, 2020. If one or both
extension options are exercised KIB and the Contractor agree to evaluate and/or negotiate an
increase/decrease due to inflation and/or change in scope of services. Contractor must notify
KIB of its intent to propose extension terms sixty (60) days prior to end of the term of the
agreement. KIB holds exclusive right to extend the term of the agreement pending Assembly
approval.
3. Proiect Manager. The project manager shall be the KIB's Environmental Specialist in the
Engineering and Facilities Department of the KIB or KIB Manager's designee.
4. Compensation. The KIB, agrees to pay to the Contractor as compensation for services under
the following payment schedule:
(a) $ $24,777.92 per month as a flat rate, regardless of weight or volume.
This price is based on processing an estimated 650 tons.
(b) Calculated lump sum price for the following to include Consumer Price Index
(Anchorage Basis) percentage increase for Option Years:
(i) $297,335.00 First Year of Contract: July 1, 2020 through June 30, 2021
(ii) $303,281.00 Option Year 1: July 1, 2021 through June 30, 2022
(iii) *CPI has not been Option Year 2: July 1, 2022 through June 30, 2023
(iv) determined or e Option Year 3: July 1, 2023 through June 30, 2024
yeafs to be able to
(v) calculated these. Option Year 4: July 1, 2024 through June 30, 2025
(c) A 10% rebate of gross revenue amount received by the Contractor as payment for
recyclable materials shall be paid to the KIB on a quarterly basis.
(d) A 15% rebate of gross revenue amount received by the contractor as payment for
the sale of recyclable materials shall be paid to the KIB on a quarterly basis
during extension years if extensions are awarded.
The KIB will continue to cover costs associated with tipping the cardboard recycling
dumpsters that are received by the Contractor.
5. Payment.
Payment will be a monthly flat rate. Contractor will be responsible for monthly invoicing to
KPB Engineering/Facilities Department.
The Contractor shall provide documentation that satisfies KIB and will provide easily
understandable and reproducible forms of back up information that is accurate and minimizes
review time by KIB. The Contractor shall provide any additional information to KIB which
may be reasonable in support of any payment request. Monthly invoices and backup shall be
delivered to KIB no later than the end of the following month and shall be paid within thirty
(30) days from the date of the invoice unless KIB notifies the Contractor in writing of its
reason for not making payment of the sums requested.
6. Collection Plan. Contractor will adhere to the collection plan and processing methods based
upon its Request for Bids Submission attached as Exhibit A.
7. Equipment and Personnel. The Contractor has identified, as shown in Exhibit A hereto, the
equipment to be used in the collection and processing of recyclable material. This
identification shall include the minimum following information
(a) Equipment type,
(b) Equipment quantities,
(c) Availability of backup equipment.
2020 Kodiak Island Borough Recycle Processor Agreement Page 2 of 14
The Contractor has also identified in Exhibit A the number of personnel necessary to meet
the requirements of this Agreement. Personnel listed shall include management, supervisory,
customer service, equipment operators, collection personnel, etc. Any changes to
management personnel shall be promptly communicated to KI13.
8. Final Disposition of Recyclable Materials. It is the responsibility of the Contractor to
ensure that collected material is processed and recycled. To this end the Contractor is to
document the final disposition of the collected material as part of the quarterly reporting
requirement.
9. Documentation. Contractor shall maintain throughout the duration of the Agreement plus
three (3) years, documentation on all the services provided. Contractor shall maintain records
to substantiate all work performed and fees requested. Such records shall include, but not be
limited to, daily records on the pounds of processed recyclables, shipment records and
location of recyclable pick up locations etc. Copies or portions of this documentation may be
requested by KI13 to be supplied with Contractor's monthly requests for payment.
10. Records and Reporting.
(a) Records. Contractor will collect and record, at a minimum, the following
information daily, indicating the day of the week and date:
(i) Tonnage: Tons of Recyclables - weight of each load (gross, tare, and net);
receipts from the recyclables processing facilities.
(b) Reports. Contractor will include the following information in its Quarterly
Report as described in the KI13 RF13 and Contractors RF13 Submission: a
summary of the records for tonnage, and any additional information requested by
KI13.
(c) Inventory. Contractor will submit its inventory of Service Assets to include:
(i) a general description of its maintenance yards, facilities, drop off
locations etc.; the Office and any other administrative and customer
service offices,
(ii) Vehicles described by type (i.e. manufacture and model number for cab,
chassis and body; and descriptive notation said as front end loader,
compactor etc.), number, DMV license number, the age of the chassis
and body; type of body (open -top, closed etc.); type of fuel used; the
date of acquisition; the maintenance and rebuilt status; lease or
installment purchase information.
11. Communication. All official communications from Contractor to KI13 regarding this
Agreement will be directed to the Project Manager.
2020 Kodiak Island Borough Recycle Processor Agreement Page 3 of 14
12. Recyclables Processing and Marketing. Contractor may change its selection of recyclables
processing facility and notify KIB within 30 days of doing so. If the recyclables processing
facility is wholly or partially inoperable for any reason, including uncontrollable
circumstances, Contractor will make other arrangements to process Recyclables or to
transport the recyclables to the recyclables processing facility without increase of the
Contractor compensation despite any consequent additional costs to Contractor.
13. Service Standards. Contractor will provide service in accordance with the following
provisions:
(a) Litter, Spills and Leaks.
(i) Litter. Contractor will ensure that each collection vehicle always carries
a broom and shovel for this purpose.
(ii) Material Spills. Contractor will transport recyclables only in covered
vehicles. Contractor will prevent materials from escaping, dropping,
spilling, blowing, or scattering from vehicles during collection and
transportation. Contractor will immediately clean up any materials that
are dropped, blown, spilled, scattered, or tracked onto any alley, street or
public or private place.
(iii) Liquid Leaks. During collection and transportation, Contractor will
also prevent oil, hydraulic fluid, paint, or other liquid from leaking out
of vehicles. Contractor will ensure that each collection vehicle carries
petroleum absorbent materials. Contractor will immediately cover
leaked fluids with absorptive materials, remove those materials from
the ground and apply a cleaning agent to cleanse the soiled spot.
Contractor will assure that no hydraulic fluid or other liquid leaks from
any vehicle onto the pavement. If a leak does occur, Contractor will
immediately clean it up.
(b) Customers' Privacy. Contractor will strictly observe and protect customers'
rights of privacy. Contractor will not reveal information identifying individual
customers or the composition or contents of a customer's waste stream to any
person (other than the KIB) unless upon the authority of a court of law, by
applicable law or by valid authorization of the customer, and will use reasonable
business efforts keep that information confidential among staff and its
consultants.
This provision will not be construed to preclude Contractor from preparing,
participating in, or assisting in the preparation of waste characterization studies or
waste stream analyses that may be required by applicable law. In addition,
Contractor will not market, sell, convey, or donate to any person any list with the
name or address of customers. The rights accorded customers pursuant to this
section are in addition to any other privacy right accorded customers pursuant to
2020 Kodiak Island Borough Recycle Processor Agreement Page 4 of 14
applicable law. Contractor will use reasonable business efforts to keep
information with respect to customers and customer service information (such as
accounts serviced, containers, special services, recyclables inventory, sales of
recyclables and contaminants) confidential among staff and its consultants, if
any, as permitted by applicable law.
(c) Vehicles and Drivers.
(i) Leak -proof Vehicles. Vehicles used in collection or transportation of
recyclables must have watertight beds of metal or impervious material
that can be cleaned.
(ii) Vehicle Identification. Contractor will ensure that its name and
telephone number are clearly shown on each vehicle, indicating that the
vehicles are owned and operated by Contractor.
(d) Facilities.
(i) Offices. Contractor will maintain an administrative office (the
"Office") located in the KIB or City of Kodiak (CoK) at the address
provided in Contractor Documentation.
(ii) Operations Yard. If Contractor sites its operations and maintenance
facilities in the KIB or CoK, it will do so in accordance with applicable
laws, including zoning laws, with ample ingress and egress for vehicles.
Contractor will maintain its facility in a neat, clean, and presentable
manner, including regular sweeping of related grounds for litter.
(e) Pavement and Utilities. Contractor is responsible for damage to pavement and
driving surfaces if collection sites are located on public or private property, other
than ordinary wear and tear, if the damage is the result of vehicles exceeding the
maximum weight limits allowed by applicable law or Contractor's negligent
operation of vehicles.
(i) Customer or KIB may direct Contractor to promptly repair or replace
damaged driving surfaces or utilities or repair and replace them itself or
through a third parry, to satisfaction of customer or KIB.
(ii) Contractor will reimburse customer for his or her costs of repair or
replacement and KIB or CoK the reimbursement costs of repair or
replacement.
(iii) Contractor is responsible for damage to public and private utilities,
whether located on public streets or property or private property, if
damage is the result of the inattention, carelessness, or negligence of
Contractor.
2020 Kodiak Island Borough Recycle Processor Agreement Page 5 of 14
(f) Damage to Property and Personal Injury. Contractor will not cause damage to
property or personal injury. At its sole expense, Contractor will repair or replace
to the satisfaction of the owner of damaged property, any physical damage to
public or private property and will reimburse to the satisfaction of an injured
individual, the cost of any personal injury caused by the negligent or willful acts
or omissions of Contractor. KIB may refer all complaints of damage or injury to
Contractor as a matter within Contractor's sole responsibility. Notwithstanding
any rights the KIB has for breach of contract, disputes between Contractor and
Persons as to damage to private pavement or other property or to injury are civil
matters between the Contractor and that person.
Promptly upon receiving notice of any damage to Customer's property by phone
or other medium, Contractor will record that information and determine whether
or not the damage to Customer's property was caused by the inattention,
carelessness or negligence of Contractor's employees. If Contractor determines
that they were responsible for the damage, within 3 days of making its
determination, Contractor will reimburse Customer his or her direct costs of repair
or replacement of damaged property. Contractor will provide KIB with a copy of
the recorded damage log in its quarterly report.
14. Right to Audit. Contractor shall maintain complete and accurate records, kept in accordance
with generally accepted accounting standards, of all of Contractor's costs that are chargeable
to KIB and shall retain such records for at least three (3) years after completion of the
contract.
Contractor shall also maintain records of customers served. KIB shall have the right, at any
reasonable time, to inspect and audit those records during work period and throughout the
three (3) year retention period. Contractor shall accommodate such review at no additional
cost.
Contractor shall incorporate this requirement in all contracts with third parties to which this
work may be subcontracted. Regardless of location, the KIB may enter operation and
maintenance facilities during Office Hours and observe, inspect, and review Contractor's
operations therein.
15. Indemnification. The Contractor specifically obligates himself to pay for all materials
furnished and services performed under this Agreement.
Contractor shall indemnify and hold KIB, its elected officials, officers, and employees free
and harmless from all losses, damages, expenses, judgments, liens, claims, suits, demands, or
liabilities of any kind, including reasonable attorneys' fees, for injury or death to persons, or
loss, or damage to property arising out of Contractor's performance of this Agreement. Such
indemnity shall not cover losses, damages, expenses, judgments, liens, claims, demands, or
liabilities that are caused by the sole negligence of KIB.
Contractor shall be given notice of any suit, claim, or demand within a reasonable time after
KIB acquires knowledge thereof, and shall be authorized to defend the same without cost to
2020 Kodiak Island Borough Recycle Processor Agreement Page 6 of 14
KIB (saving that KIB shall pay its own counsel fee if it wishes to have separate
representation in any suit). Contractor shall be given all information and assistance that it
may reasonably require to defend the action. No compromise or settlement of any such suit,
claim, or demand shall be entered into until the written notice of Contractor has been given to
KIB.
16. Insurance.
(a) General Insurance Provisions.
(i) Contractor shall not commence with work under this Agreement until it
has obtained the insurances required under this section.
(ii) All coverage shall be with insurance carriers licensed and admitted to
do business in the State of Alaska.
(iii) All coverage shall be with insurance carriers acceptable to KIB.
(iv) Proof of Insurance Coverage: Contractor shall provide KIB, at the time
the contract is returned for execution, certificates of insurance,
endorsements, and/or policies, acceptable to the KIB, as listed below.
1. Certificate of Insurance for Workers' Compensation
Insurance;
2. Certificate of Insurance for Commercial General Liability
Insurance;
3. Certificate of Insurance for Vehicle Liability Insurance;
4. If so requested, certified copies of all policies shall be
furnished.
(v) Continuation of Coverage: If any of the above coverages expire during
the term of this contract, Contractor shall deliver renewal certificates
and/or policies to KIB at least ten (10) days prior to the expiration date.
(b) Specific Insurance Provisions: Contractor shall at all times, at its own expense,
keep in force the following described insurance for protection against the claims
of employees or other persons, insuring both the Contractor and the KIB against
liability that may accrue against them or either of them in connection with
Contractor's performance under this Agreement.
(i) Workers' Compensation Insurance: Contractor shall procure and
maintain during the life of this contract, Workers' Compensation
Insurance, disability benefits and other similar employee benefit acts
including Employers' Liability Coverage, in accordance with all
applicable statutes of the State of Alaska.
2020 Kodiak Island Borough Recycle Processor Agreement Page 7 of 14
(ii) Commercial General Liability Insurance: Contractor shall procure
and maintain during the life of this Agreement, Commercial General
Liability Insurance on an "Occurrence Basis" with limits of liability not
less than $1,000,000 per occurrence and/or aggregate combined single
limit, Personal Injury, Bodily Injury and Property Damage.
(iii) Motor Vehicle Liability: Contractor shall procure and maintain during
the life of this Agreement, Motor Vehicle Liability Insurance, including
applicable No -Fault coverages, with limits of liability of not less than
$1,000,000 per occurrence combined single limit Bodily Injury and
Property Damage. Coverage shall include all owned vehicles, all non -
owned vehicles, and all hired vehicles.
(iv) Additional Insured: The following shall be additional insureds: The
KIB, and including all elected and appointed officials, all employees
and volunteers, all boards, commissions and/or authorities and their
board members, employees, and volunteers.
This coverage shall be primary to the additional insureds, and not
conflicting with any other insurance or similar protection available to the
additional insureds, whether other available coverage be primary,
contributing or excess.
(v) Cancellation Notice: Workers' Compensation Insurance, Commercial
General Liability Insurance and Motor Vehicle Liability Insurance, as
described above, shall include an endorsement stating the following:
"Sixty (60) days Advance written notice of cancellation or non -renewal
shall be sent to: Woody Koning, Kodiak Island Borough, 710 Mill Bay
Road, Kodiak, AK 99615.
(vi) If Contractor fails to comply with the insurance requirements of this
Agreement, the KIB may terminate the Agreement; and
(vii) Contractor covenants to maintain all insurance policies required in this
Agreement for the period of time in which a person may commence a
civil action as prescribed by the applicable statues of limitations. The
coverage required by this Agreement shall over all claims arising in
connection with the performance of Contractor under this Agreement,
whether or not asserted during the term of this Agreement and even
though judicial proceedings may not be commenced until after the
expiration of this Agreement.
2020 Kodiak Island Borough Recycle Processor Agreement Page 8 of 14
17. Claims.
(a) Payments for work performed under this Agreement will equal the value of the
work done by the Contractor at the agreed price.
(b) The Contractor must notify the KIB or its agent of any and all claims for costs in
excess of the contract amount within ten (10) days of incurring such cost or such
claim shall be deemed waived.
18. Changes and Modifications.
(a) The KIB may, at any time by written order signed by the Borough Manager, or
his designee, of the KIB, make changes in the specifications for services
hereunder or in the project schedule. Any additions or reductions to the amount of
this Agreement resulting from authorized changes whether initiated by Contractor
or the KIB must be agreed upon in writing by both parties hereto, subject to the
contract and sale provisions of the KIB Code.
(b) The cost or credit to the KIB resulting from a change in the services or in the
project schedule shall be determined as follows:
(i) by mutual acceptance of a lump sum properly itemized and supported
by sufficient substantiating data to permit evaluation or;
(ii) by the fees stated in this Agreement and Contractor's Bid Submission
or subsequently agreed upon.
19. Prosecution of Work: Contractor shall prosecute the work in a prompt and diligent manner
whenever such work or any part of it becomes available, in order to promote the general
progress of the project services. Upon written request by the KIB, the Contractor shall
furnish to the KIB such evidence as the KIB may require relating to the ability of the
Contractor to complete the services.
20. Approvals: The Contractor shall obtain and pay for all permits, licenses and official
inspections made necessary by the work, and shall comply with all laws, ordinances and
regulations bearing on the work and the Contractor's conduct thereof.
21. Time:
(a) Definitions:
(i) unless otherwise provided, the contract time is the period of time
allotted in this Agreement.
(ii) the date of commencement of the project is the date established in this
Agreement as set forth above.
2020 Kodiak Island Borough Recycle Processor Agreement Page 9 of 14
(iii)the term "day," as used in the Contract Documents, shall mean calendar
day unless otherwise specifically designated.
(iv) all time limits set forth herein are of the essence in this Agreement.
22. Breaches, Defaults, Damages and Other Remedies:
(a) Withholding Payments: KIB shall have the right to withhold from payments due
Contractor such sums as necessary, in KIB's sole and exclusive opinion, for the
purposes listed below in this section. Action taken under this section shall not
affect other rights or remedies of KIB granted by other provisions of this
Agreement or by law; and do not relieve Contractor from the consequences or
liabilities arising from Contractor's acts or omissions.
(i) To protect KIB against any loss or damage that may result from the
events listed in this section and any other negligence or unsatisfactory
work by Contractor;
(ii) Failure of Contractor to perform or abide by an obligation under the
Agreement;
(iii)Claims against Contractor or KIB related to Contractor's performance of
work;
(iv) Damages by Contractor to others not adjusted;
(v) Probable filing of a claim against KIB or Contractor.
(vi) The application for payment misstates the amount of services
completed;
(vii) The methodology used to document services completed is
unsatisfactory;
(viii) Defective services not remedied;
(ix) Third party claims filed or reasonable evidence indicating probable
filing of such claims;
(x) Persistent failure to perform the services in accordance with this
Agreement.
(b) Default Termination: Either parry shall have the right to terminate this agreement
upon notice in writing to the other party.
2020 Kodiak Island Borough Recycle Processor Agreement Page 10 of 14
(i) If the Contractor is adjudged a bankrupt entity, or makes a general
assignment for the benefit of creditors, or if a receiver is appointed on
account of insolvency, or if Contractor refuses or fails, except in cases
for which extension of time is provided, to supply enough properly
skilled professionals or proper services, or fails to make prompt payment
to subcontractors or for materials or labor, or persistently disregards
laws, ordinances, rules, regulations or orders of any public authority
having jurisdiction, or otherwise is guilty of a violation of a provision of
this Agreement, then the KIB may, without prejudice to any right or
remedy and after giving the Contractor seven days written notice,
terminate the employment of the Contractor and take possession of all
materials and documents prepared by the Contractor in connection with
the project services, and may finish the work by whatever method it may
deem expedient. In such case, the Contractor shall not be entitled to
receive any further payment.
(ii) KIB shall have the right to terminate this Agreement at its sole
discretion at any time upon thirty (30) days written notice given to
Contractor. In the case of early termination, a final payment will be
made to Contractor upon approval by the Project Manager of invoices
for costs incurred to date of termination and a written report describing
all work performed by Contractor to date of termination. Any portion of
a month shall be prorated accordingly based on a 30 -day month.
(iii)Contractor shall not discontinue required service under this Agreement
without ninety (90) days notice to KIB.
(c) Other Rights:
(i) The failure of either party to exercise any of its rights under this
Agreement for a breach of an obligation created by this Agreement shall
not be deemed to be a waiver of such rights nor shall the same be
deemed to be a waiver of any subsequent breach. No custom or practice
of the parties at variance with the terms of this agreement shall
constitute a waiver of any right to demand exact compliance with the
terms of this Agreement.
(ii) In the event suit is filed to enforce any of the terms or conditions of this
Agreement, the prevailing parry shall be entitled to reasonable attorney's
fees.
(iii) In the event of default the Contractor shall allow KIB to use its
equipment in order to continue recycling services for a period of up to
six (6) months. All contracts, leases, or other documents encumbering or
limiting Contractor's interest in such property shall contain this
provision.
2020 Kodiak Island Borough Recycle Processor Agreement Page 11 of 14
23. Assignment: This Agreement shall not be assigned by operation of law or through
negotiated agreement by the Contractor without the written permission of KIB. However,
subcontracting portions of the project services to be performed pursuant to this Agreement
shall not be considered an assignment for the purposes of this Agreement. The Contractor
shall not subcontract any work to be performed or any materials to be furnished in the
performance of the Contract without the prior written consent of the KIB. If the Contractor
shall subcontract any part of this Contract, the Contractor shall be fully responsible to the
KIB for the acts and omissions of the Subcontractor and of the persons either directly or
indirectly employed by the Subcontractor, to the same extent as Contractor is responsible for
the acts and omissions of Contractor. Nothing contained in this Agreement shall create any
contractual relation between any Subcontractor and the KIB.
24. Waiver: Failure of the KIB or the Contractor to enforce a specific section of this Agreement
against one another or to enforce a particular demand of the KIB or the Contractor made
pursuant to the terms of this Agreement shall not effect a waiver of any of the KIB's or the
Contractor's rights and powers as set forth in this Agreement.
25. Dispute Resolution:
(a) KIB's interpretation or decision is binding on Contractor, subject to the following
dispute resolution provisions of this Agreement.
(b) Dispute Resolution: The Borough Manager shall at the request of Contractor,
decide any dispute arising under this contract which is not disposed of by
agreement between Contractor and KIB's Project Manager. The Borough
Manager shall reduce the decision to writing and furnish a copy to Contractor.
The Borough Manager reserves the right to make a written request to Contractor
at any time for any additional information needed to make their decision. The
decision of the Borough Manager shall be final and conclusive unless, within
thirty (30) days from the date of receipt of such copy, Contractor mails or
otherwise furnishes to the Kodiak Island Borough Assembly, a written appeal.
The Notice of Appeal shall include specific exceptions to the Borough Manager's
decision, including specific provision of the contract relied upon. General
assertions that the Borough Manager's decision is contrary to law or to fact are
not sufficient. The decision of the Kodiak Island Borough Assembly shall be
rendered within one hundred twenty (120) days of the Notice of Appeal. The
decision shall be final and conclusive unless determined by a court of competent
jurisdiction to have been fraudulent, or capricious, or arbitrary, or so grossly
erroneous as necessarily to imply bad faith.
26. Integration: The Agreement and the referenced documents, including Contractor's bid
submission and the list attached as Exhibit A, represent the entire and integrated agreement
between the parties hereto and supersedes all prior negotiations, representations, or
agreements, either written or oral.
2020 Kodiak Island Borough Recycle Processor Agreement Page 12 of 14
27. Authorized Signatory: Contractor will provide confirmation/certification of current
authorized signatories for Contractor and provide updates to KIB within 10 days of any
changes to authorized signatories.
28. Notice: Written notice pursuant to this Contract shall be deemed delivered to either party if
hand delivered to a superintendent or officer of a party or mailed to the parties at the
following addresses:
Kodiak Island Borough
Office of the Manager
710 Mill Bay Road
Kodiak, Alaska 99615-6398
THRESHOLD SERVICES INC.
PO BOX 8709
Kodiak, AK 99615
(Contractor Mailing Address)
29. Certification: The Contractor certifies that it is not debarred, suspended, proposed for
debarment or declared ineligible for work with the State of Alaska. Contractor shall notify
the KIB within five (5) working days of any such action brought against the Contractor
during the term of this Agreement.
The terms of this Agreement shall be from July 1. 2020 to June 30. 2021, subject to optional
extensions as set forth in Section 2.
KODIAK ISLAND BOROUGH
By:
OJE�:::�
Micha1 P wers, Borough Manager
Date: �o
THRESHOLD SERVICES INC.
(Contractor e)
Date:
By:
(si n e)
Chris Lynch
(print name)
Title: President, Board of Directors
JEST: priD 80,Q
Alise Bice, Bo)ough Clerk
Date:
(print title)
2020 Kodiak Island Borough Recycle Processor Agreement Page 13 of 14
EXHIBIT A
Request for Bid Submitted by Contractor Selected
2020 Kodiak Island Borough Recycle Processor Agreement Page 14 of 14
Threshold Services, Inc
P.O. Box 8709
Kodiak, AK 99615
907-486-6551
REUSE
REDUCE 1 RECYCLE
HELP OTHERS
June 5, 2020
Kodiak Island Borough
Office of the Borough Manager
710 Mill Bay Road
Kodiak, AK 99615
Attn: Michael Powers, Borough Manager
Dear Mr. Powers:
Enclosed please find our proposal for the Kodiak Recycling Processor. Threshold is pleased to
submit our proposal in the hopes of continuing our partnership in waste diversion from the
Kodiak Island Borough landfill. We hope that you find our proposal fair for the service you
request.
Community recycling has increased in recent years. Our recycle haven is a huge success and
will be our centralized base of operations. Our proposal includes 8 drop off centers that will
require various degrees of pick up every week. This rate of recycling shows that we are getting a
commitment from the community. The addition of 8 dumpsters for cardboard collection has
been a huge factor in cardboard diversion from the landfill. Cardboard is one of the most
valuable recycled materials.
The prices being offered for commodities in Seattle have literally gone to 0; recycled materials
no longer have a value. The high price of fuel has increased our cost to ship material to Seattle.
Plastics and mixed paper have dipped to $0/ton which cost $45/ton to ship. The prices have
nowhere to go but up, that is why we will continue to offer our rebate of 10% for the cost of
recycled materials but after the cost of shipping.
Most importantly, Threshold will continue to provide employment for the disadvantaged workers
in our community.
Page Two
June 5, 2020
Thank you for your consideration. If you have any questions, please do not hesitate to call.
Sincerely,
7THRES OLD SERVICES INC.
L--
Chris Lynch
President, Board of Directors
Threshold Services, Inc
REUSE
P. 0. Box 8709 REDUCE 0 RECYCLE Phone (907) 486-6551
Kodiak, AK 99615 HELP OTHERS Fax (907) 486-8554
Kodiak Recycling Processor — Proposal
Company Profile
Threshold Services Inc., TSI, will be the name of the entity that would sign the agreement if we
were the successful proposer. We do not do business under any other names. Our primary point
of contact for the purposes of this proposal is Chris Lynch, President of our Board of Directors.
Our business office address is 380 Von Scheele and our operating hours are Tuesday through
Saturday 10 am. to 6 p.m. This is also where materials will be processed. We are a corporation
doing business in the state of Alaska. We are a 501(c) 3 and 509 (a) 2 organization. We have
been in business since 1984. Our corporate officers are Chris Lynch, President, Dan Urban,
Vice President, Ellen Simeonoff, Treasurer and Jerry Clark, Secretary. There are no other
entities involved in this proposal nor is this a joint venture. Our Federal Tax ID Number is
920102916.
Our mission is Threshold provides jobs to people with barriers to employment through our core
program — recycling. TSI has been working in Kodiak since 1984 using our recycling efforts to
provide these much needed services. We employ and train persons with disabilities to prepare
them for the job market. We have 11 employees at the recycle plant, 5 are disabled workers.
The remaining 6 are considered core staff to provide supervision, equipment maintenance and
operation as well as shipping and receiving.
Names and addresses of principals:
Chris Lynch: President; 11175 Lake Orbin Dr., Kodiak, AK 99615
Dan Urban: Vice President; P.O. Box 859, Kodiak, AK 99615
Ellen Simeonof: Treasurer; P.O. Box 1870, Kodiak, AK 99615
Jerry Clark: Secretary: 1215 Rezanof Dr., Kodiak, AK 99615
Ben Millstein: Board Member: 11188 Kalsin Dr., Kodiak, AK 99615
Maggie Rocheleau: Board Member; P.O. Box. 810, Kodiak, AK 99615
Aimee Williams: Board Member: 12621 Noch Drive, Kodiak, AK 99615
Jan Haaga: Board Member; P.O. Box 8709, Kodiak, AK 99615
Management Experience
Wendel Capili will be our primary contact. He is our Plant Manager with over 15 years of
hands on experience at the plant. He is responsible for managing day to day recycling activities
including but not limited to assignment of staff, material processing and shipping. He
coordinates and manages vendors. He researches other recycling processors. Wendel
coordinates billing, data collection and input. He is an important asset to our organization's
success.
John Paulo is our lead Laborer. He is a certified forklift operator and is well versed in baler
operation as well as all other Threshold equipment. John has a thorough understanding of
product types and their values. He has been with the organization since 2017.
Ermil Fauni is our truck driver and customer service representative. He is skilled in forklift,
bailer operating and process management. Ermil has been with Threshold since 2018.
Frederick Navales is our lead baler operator and has been with Threshold since 2006.
TSI Board of Directors offers a broad spectrum of skills. Our board has recycling, management,
human resource and community outreach expertise. Board members are always willing to
provide input and help when necessary.
References
Kodiak Island Borough
710 Mill Bay Road
Kodiak, AK 99615
Dave Conrad, Engineering and Facilities Department Head
Phone (907) 486-9343
Fax (907) 486-9394
Length of Service: 11 years
Description of Service: Kodiak Island Borough recycling contract
Alaskans for Litter Prevention and Recycling (ALPAR)
P.O. Box 200393
Anchorage, AK 99520
Mary Fisher, Executive Director
907-274-3266
alpar@gci.net
Regulatory Compliance
TSI has complied with federal, state and local environmental regulations. We have purchased
our building with a low-income mortgage from the USDA. This financing required a significant
environmental assessment be performed. No violations were determined. We also completed
upgrades to our facility through a grant from the USDA which also required inspections by the
State Architect. Once again, no violations were found.
Technical Proposal
We have provided recycling to the Kodiak Island Borough for over 23 years. We have also
provided recycling services to the USCG. We held this contract for 2 years; 2007 - 2009.
Contact: Steve Albee, 907-487-5320. Prior to an actual contract TSI processed miscellaneous
recyclable materials for over ten years from the USCG Base.
Threshold has erected a 35' X 60' building on the back of our property for drive-through
recycling service with open hours from 10:00 a.m. to 6:00 p.m., Tuesday through Saturday. We
have volunteers and staff during these hours to help customers with their sorting and recycling.
Sorting is integral to sustainable recycling in Kodiak as the cost of shipping prohibits comingled
recyclables because their value is far less. This has greatly decreased the amount of garbage and
non -recyclable material (including hazardous waste) that comes to us with the prior paradigm.
Volunteers, which we will pursue aggressively, are a boon to recycling in the community as
each volunteer is an ambassador for recycling even when they are not present on site. This
concept is not new. This model is widely successful in the Matsu Valley. The State of Alaska
granted us the capital for this building partly based on the Matsu Valley performance.
TSI has always met our contract schedules and performed to the highest quality standards.
Our community outreach and education are working very well in the Kodiak Island Borough as
can be seen in the rise in recycle customers we have experienced over the last several years. In
the first quarter of 2020 we exceeded the total vans shipped out compared to this same time in
2019. We have been working closely with the canneries specially to capture OCC. This is
material processed and shipped to Seattle markets and kept away from our landfill.
We do schedule tours of our facility to schools and youth groups throughout the year.
We work closely with service providers such as Hope Community Resources, Tribal Vocational
Rehabilitation departments from our local tribal organizations, Providence Kodiak Island
Mental Health Center and the State of Alaska Division of Vocational Rehabilitation, and the
Alaska Court system. We also have worked with the Kodiak Island Borough School District's
Special Education Department for disabled students to gain life skills training.
We have had excellent customer relations. The Alaska Mental Health Trust Authority,
Rasmuson Foundation, Matson Lines, Samson Tug & Barge, Denali Commission, RCAC,
ALPAR, Kodiak Chamber of Commerce, Kodiak Island Borough, Kodiak Lions Club and our
local CHARR are just a few of our partners.
TSI continues to have a positive impact on the community. We are diverting material away
from the landfill and providing jobs to people with barriers to employment.
Plan to Meet Quarterly Benchmarks
The reporting would come from the accounts received from our buyers. We would continue to
record weights received on our own State -certified scale, and we would continue to report quarterly
as required. Since commerce is seasonal in Kodiak, we would apply outreach resources heavily
during the first two quarters of the contract to develop good habits in the community before winter
sets in.
Our main source of community outreach and education has become the radio. Radio is the
spokesperson for Threshold as well as the pipeline to the community. It can provide instantaneous
education to the listening audience. Radio is on 2417, reaching over 92% of people age 12 and older
every week and 68% daily, in Kodiak that means we are reaching about 7,650 people daily. Radio
delivers an impressive 6 to 1 rate of return, making radio the most effective medium in the business.
We have a current annual contract with the local radio station to place ads numerous times during
the day with content being changed at least monthly or as an event dictates. The radio station
partners with Threshold and matches our contract amount with additional advertising. We get twice
as much exposure with a small investment.
We also use other various forms of media to interact with the community. Threshold maintains a
website and Facebook page for convenient contact with the public. We place large ads in the
newspaper detailing our operation in seasonal flyers. We generate a newsletter that goes to our
membership. TSI is willing to cooperate with the KIB SWAB to promote recycling in the
community. All these forms of promotion can only improve the amount of recycle material that are
captured.
Threshold collects fluorescent tube bulbs and electronics. We also accept printer cartridges.
Threshold provides a document shredding service to businesses and individuals for a fee, which
generates approximately 6 tons of recycling per year. In addition, TSI operates a van for picking up
business and personal recycling for a fee. We intend to expand our business pickups making it
easier for the business community to recycle.
Cost Proposal
Threshold would require $ 297,335 for one year, July 1. 2020 through June 30, 2021.
Option Year 1: July 1, 2021 through June 30, 2022- $303,281 plus the CIF rate increase.
Option Year 2: July 1, 2022 through June 30, 2023 — Option
rate increase.
Option Year 3: July 1, 2023 through June 30, 2024 — Option
rate increase.
Option Year 4: July 1, 2024 through June 30, 2025 — Option
CIP rate increase.
Contract Exceptions
Year One contract amount + 2% + CIP
Year Two contract amount + 2% + CIP
Year Three contract amount + 2% +
OCC from the landfill must be dry bales averaging 900 pounds. Buyers do not take soggy
cardboard.
TSI is willing to return to the Borough 10% of the money collected for recyclable material after
shipping costs. The rebate program would be based on the average price paid to TSI for the three
major recyclables.
Inventory Needed for 2020 RFP
Facilities
40' X 100' Processing Facility w/loading dock
35' X 60' Drive-thru Drop-off building
Sorting is imperative
Equipment
One forklift w/charger
14' box truck
1 Allegheny Document Shredder
1 Air cycle fluorescent tube drum -crusher
15,000 pound Rice Lake, certified scale
3 balers
We have two Harmony MSO -STD
And one Harmony S60xDRC
1 Perforator
REM Perf 5 (increases bale density)
1 Tote Tipper HBD-4-60 (#4,000)
15 each 44"08"x29" Heavy -Duty Plastic Totes
I 1 each 96 -gallon roll carts
13 each 64 -gallon roll carts
Human Resources
1 Plant Manager
1 Part time assistant to Plant Manager
1 Driver
2 Floor Lead Persons 1 Driver Relief
3 Recycle Laborers
5 Part time, permanent sorters
I Bookkeeper