HomeMy WebLinkAboutC17230 Release Bond for Waste Management of the DesertDr.
Contract No. C17230
CITY OF PALM DESERT
COMMUNITY SERVICES DEPARTMENT
STAFF REPORT
REQUEST: Release of Bond No. 8145-54-97 to Waste Management of the
Desert
SUBMITTED BY: Frankie Riddle, Director of Special Programs
DATE: February 8, 2007
CONTENTS: 1. Letter of Request for Release of Bond
2. Exhibit No. 7-Company's Faithful Performance Bond
RECOMMENDATION:
By Minute Motion, authorize staff to release Waste Management of the Desert's Faithful
Performance Bond No. 8145-54-97.
BACKGROUND:
The City of Palm Desert received Waste Management of the Desert's request dated January 10,
2007, to release its original Faithful Performance Bond No. 8145-54-97 for cancellation.
City Council approved the Solid Waste Contract Assignment from Waste Management of the
Desert to Burrtec Waste Industries at its meeting of April 27, 2006. As part of the assignment,
evidence of insurance and a performance bond meeting the requirements of Sections 9.4 and
9.5 were to be provided to the City. Burrtec submitted an Annual Contract Bond with a
Corporate Guaranty that was approved by the City. Therefore, the Waste Management bond is
no longer required.
Staff recommends that City Council authorize staff to release Bond No. 8145-54-97 to Waste
Management of the Desert.
Submitted By:
Approval:
Frar?kie-..Riddle Carlos L. Orte.a
Director of Special Programs CITY CO MPTINMION:
} /) APPROVED 7 DENIED
RECEIVED OTHER
cur:
Sheila R. ligan
ACM of Community Servtc
MEETING DATE
AYES : 6.enson, P'r l eson, rirrr-iy1 .5p iee e%/
NOES: None;
ABSENT: Nor)
ABSTAIN: None,
VERIFIED BY: Q,D1(.(q
.)riginal on File with -City Clerk's Office
VNY1.
WASTE MANAGEMENT
January 10, 2007
Ms. Rachelle Klassen
City of Paim Desert
73510 Fred Waring Drive
Palm Desert, CA 92260
CEi JED
CI,TALM"UESERTOFFICE
CA
20O1 JA$ I 1 PM I2: 04
WASTE MANAGEMENT
1001 Fannin
Suite 4000
1lou,tun, Texas 77002
(713)512-6200
(866) 239-7964 Fax
Via Regular Mail
RE: RELEASE OF BOND #8145-54-97, WASTE MANAGEMENT OF THE DESERT
Dear Rachelle:
Bond number 814-54-97 is currently on file in the amount of $1,000,000 for integrated solid
waste management services at the Waste Management of the Desert facility (copy attached).
Burrtec purchased this facility on July 1, 2006, and we understand they posted financial
assurance for this obligation. If the instrument by Burrtec was accepted by the City, please
return bond number 8145-54-97 for cancellation to my attention at the address on the attached
business card.
If you have any questions, please feel free to call me at (713) 512-6282 or Denise Reed at (713)
512-6536.
Sincerely,
Donna L. Meals, AF$B, ARM
Director, Financial Assurance
:dr
cc: Denise Reed (w,to enc.)
WASTE MANAGEMENT
Donna L. Meals, AFSB, ARM
Director, Financial Assurance
WASTE MANAGEMENT, INC_
1001 Fannin, Suite 4000 Houston, TX 77002
(713) 512-6282 1-866-239-7964 Fax dmeals®wm.com
From everyday collection to environmental protection, ••.a: rost ,o,�on„
Think Green. Think Waste Management. ®,•�<,�� n:.,
t•
From everyday collection to environmental protection, Think Greens Think Waste Management.
EXHIBIT 7
COMPANY'S FAITHFUL PERFORMANCE BOND
Bond 96145-54-97
KNOW ALL MEN BY THESE PRESENTS:
Waste Management of the Desert, a
That subsidiary of Waste Management ofa California as PRINCIPAL, and
Cal .f rnia, inc
Federal Insurance omrany , a Corporation organized and doing business by
virtue of the laws of the State of California, and duly licensed for the pti pose of
making, guaranteeing, or becoming sole surety upon bonds or undertakings required or
authorized by the laws of the State of California, as SURETY, are held and firmly bound
to City, hereinafter called OBLIGEE, in the penal sum of Mifiion ($1.000.000 .p0
lawful money of the United States, for the payment of which, well and truly to be made,
we and each of us hereby bind ourselves, and our and each of our heirs, executors,
administrators, successors, and assigns, jointly and severally, firmly by these presents.
NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION LS SUCH THAT:
WHEREAS, the above bounden PRINCIPAL has entered into a Contract, entitled
'INTEGRATED SOLID WASTE MANAGEMENT SERVICES' with City, to do and
perform the following work, to wit: Collect. Praoss and Dispose of Solid Waste
generated within City, in accordance with the Contract.
NOW, THEREFORE, if the above bounden PRINCIPAL shall well and truly perform, or
cause to be performed each and all of the requirements and obligations of said Contract
to be performed by said PRINCIPAL, as in said Contract set forth, then this BOND shall
be null and void; otherwise it will remain in full force and effect.
And the said Surety, for value received hereby stipulates and agrees that no change,
extension of time, alteration or addition to the terms of the Contract or to the work to be
performed thereunder or the specifications accompanying the same shall in any wise
affect its obligations on this BOND, and it does hereby waive notice of any such change,
extension of time, alteration or addition to the terms of the Contract or to the work or to
the specifications.
TE B TERM OF THIS BOND IS JANOAHT 1, 2001 TBRDUGH JANQABY 1, 2008
February 10, 2000
7-1 City of Palm Desert
IN WL1NF.SS WHEREOF, said PRINCIPAL and said SURETY have caused these
presents to be dulv signed and sealed his 28th DAY OF August , 2000.
Waste Management o t e esert, a subsidiary
of Waste Management of California, Inc. Federal Insurance Company
a California Corporation SURETY
BY:'e... 4 -
Sandra Parker, Attornsy-in-fact
(PRINCIPAL)
(SEAL)
February 10, 2000
By
Lisa A. Ward, Attorney -in -fact
(ATTORNEY ZN FACT)
(SEAL)
7-2 Cityo! palm Desert