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HomeMy WebLinkAboutItem #10 Discussion and Direction on Exclusive Commercial and Multi-Family Solid Waste Franchise Agmnt. center of GOOdl ' ~ AGENDA ITEM COVER SHEET Meeting Date: May 5, 2009 Item # I D Contact Name: Contact Number: Stephen C. Krug X 6002 Reviewed By: Department Director: City Manager: .~ Subject: Exclusive Commercial and Multi-Family Solid Waste Franchise Agreement. Background Summary: The City requests Commission direction on the requirements for the Rates and Charges portion of the Exclusive Commercial and Multi-Family Solid Waste Collection Franchise Agreement prior to requesting new proposals from vendors. Two items requiring clarification are: 1. Section 14.C. Franchise Fee. The current 20% rate provides an average annual fee of approximately $200,000.00. The ordinance was changed in 2006 to allow up to a 25% franchise fee. Increasing the fee to 25% would provide an annual increase of approximately $50,000.00. 2. Section 14.F. Donated services for religious institutions. Ocoee's commercial establishments currently subsidize this donated service for the fourteen (14) religious institutions located in the City. The donated service is currently valued at $498.84 annually per institution. If the service is to be continued, staff requests clarifying the level of the donated service to be a 2 cubic yard dumpster collected once per week, with additional requested service to be the incremental cost above the donated service. Neighboring municipalities do not provide this donated service. Staff recommends discontinuing this free commercial service. Issue: Should the Honorable Mayor and City Commission maintain the Proposed Exclusive Commercial and Multi- Family Solid Waste Collection Franchise Agreement as it stands now or modify the document for clarification prior to bidding the new franchised service? Recommendations Staff respectfully requests the City Commission to provide direction on the following: . Maintain the current 20% franchise fee on the new franchise bid or increase the fee to the maximum 25%. . Direction on continuing to provide the donated service to religious institutions. Should the Commission desire to continue providing this service, approval to clarify the level of the donated service. Attachments: None. Financial Impact: Increasing the franchise fee from 20% to 25% will provide an approximate annual increase of $50,000.00. Eliminating the donated service will provide an annual increase of approximately $1,396.75. Type of Item: (please mark wifh an "x'? Public Hearing _ Ordinance First Reading _ Ordinance Second Reading Resolution _ Commission Approval Discussion & Direction For Clerk's Deaf Use: _____ Consent Agenda Public Hearing _____ Regular Agenda _ Original Document/Contract Attached for Execution by City Clerk _ Original Document/Contract Held by Department for Execution Reviewed by City Attorney Reviewed by Finance Dept. Reviewed by 0 Jdf}- N/A N/A N/A 2