HomeMy WebLinkAboutItem #07 Request for Assignment of Commercial Solid Waste & Yard Bulky Waste Contract
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AGENDA ITEM COVER SHEET
Meeting Date: January 17, 2006
Item # ry
Contact Name:
Contact Number:
Bob Zaitooni
6002
Reviewed By:
Department Director:
City Manager:
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Subject: Request for Assignment of Commercial Solid Waste and Yard & Bulky Waste
Contracts
Background Summary:
Onyx Waste Services. Inc. has formally requested assignment of the current contracts for commercial franchise and
residential yard & bulky waste to Waste Services of Florida. Inc. Both contracts provide for such a assignment only
with the expressed approval of the City Commission. Given the poor performance by Waste Services of Florida. Inc.
for the residential curbside service. staff recommends denial of this request. Additionally. both the commercial
franchise and yard & bulky waste contracts will expire on August 30. 2006_ with option to extension for another 2 years
or a negotiated shorter period.
Issue:
Should the City Commission approve the request by On~'X Waste Services. Inc. for assignment of commercial franchise
and yard & bulky waste contracts to Waste Services of Florida. Inc.?
Recommendations
Staff recommends denial of the request by Onyx Waste Services, Inc.
Attachments:
Request letter from Onyx Waste Services, Inc.
Financial Impact:
The assignment will not impact the fInancial aspects of the contracts.
Type of Item:
o Public Hearing
o Ordinance First Reading
o Ordinance First Reading
o Resolution
o Commission Approval
o Discussion & Direction
For Clerk's DeDt Use:
121 Consent Agenda
o Pubiic Hearing
o Regular Agenda
o Original Document/Contract Attached for Execution by City Clerk
o Original Document/Contract Held by Department for execution
Reviewed by City Attomey
Reviewed by Finance Dept
Reviewed by ( )
o N/A
o N/A
o N/A
sa
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Commissioners
Gan' Hood, District 1
Scott Anderson. District 2
Rusty ,Johnson, District :3
Nancy,J. Parker. District 4
Mcl\'or
S. Scott Yandergrift
City Manager
Robert Frank
STAFF REPORT
TO:
The Honorable Mayor and City Commissioners
FROM:
Robert Zaitooni, Director of Public Works
DATE:
January 6, 2006
RE:
Request for Assignment of Commercial Franchise and Yard & Bulky Waste Contracts by
Onyx Waste Services, Inc.
ISSUE
Should the City Commission approve the request by Onyx Waste Services, Inc. for assignment of commercial
franchise and yard & bulky waste contracts to Waste Services of Florida, Inc.?
BACKGROUNDIDISCUSSION
Onyx Waste Services, Inc., the current hauler for the commercial franchise and residential yard & bulky waste,
has formally requested assignment of the contracts to Waste Services of Florida, Inc. The terms of both
contracts permit such a assignment only with the expressed approval of the City Commission. Given the poor
performance by Waste Services of Florida, Inc. for the residential curbside (garbage and recycling) service, staff
recommends denial of this request. Additionally, both the commercial franchise and yard & bulky waste
contracts will expire on August 30, 2006, with an option to extend the contracts for another 2 years or a
negotiated shorter period.
The assignment will not impact the financial aspects of the contracts.
RECOMMENDATION
Staff respectfully request that the City Commission deny this request by Onyx Waste Services, Inc. for
assignment of the commercial franchise and yard & bulky waste contracts to Waste Services of Florida, Inc.
40NYX
December 19,2005
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City of Ocoee
Public Works Director, Robert Zaitooni
301 McGuire Road Ext.
Ocoee, FL.34761
Dear Sir or Madam:
We, at Onyx Waste Services Southeast, Inc., have made the decision to sell certain of our assets
from our Central Florida waste disposal business to Waste Services of Florida, Inc., a subsidiary
of Waste Services, Inc. Waste Services, Inc. ("WSI") is a multi-regional, integrated solid waste
services company, providing collection, transfer, landfill disposal and recycling services for
commercial, industrial and residential customers in the United States and Canada. WSI currently
operates in three regions in the United States; Florida, Arizona and Texas. In Canada, WSI has
operations throughout Ontario and in Saskatchewan, Alberta and British Columbia. WSI
currently services approximately 5.5 million customers, owns and operates seven landfills and
operates 15 transfer stations, including the WSI transfer station in Houston, Texas which
commenced operations in January 2005.
Per the terms of our agreement with THE City of Ocoee, the City's consent is required for
assignment of the waste services contract currently with Onyx Waste services southeast, Inc.
Please place this item on the agenda for the next City Counsel meeting on your next scheduled
meeting date, We will then look forward to introducing Waste Services, Inc. personnel at that
time and requesting the The City of Ocoee's consent to the assignment of the waste services
contract to Waste Services, Inc. Thank you in advance for your cooperation.
Sincerely,
h4~
Ron Tuder, Area Manager
Onyx Waste Services Southeast, Inc.
D~ger'7
Waste Services of Florida, Inc.
Cc: Jeff Meredith, Vice President, Market Development, Onyx North America Corp.
Ron Tuder, General manager, Onyx Waste Services Southeast, Inc. - Orlando
Theresa F Seem, Corporate Counsel, Onyx Waste Services, Inc.
H:\agreclllcnts\onyx Wast Svc FL\WSI.Municipality.Notice.Consent.Assignment.doc
O~1YX Waste Services - Ortcmclo
a division of Onyx ilVaste Serv1ces Southeast, inc.
1964 S Orange Blossom Trail, Apopka, FL 32703
Phone: 407 464 0664 . Fax: 407 464 0488."
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CITY OF OCOEE
COMMERCIAL AND MULTI-FAMILY
SOLID WASTE COLLECTION FRANCmSE AGREEMENT
AUGUST .30 , 2001
006.224832.2
B. The Franchisee shall annually submit to the City an audited financial
statement with respect to all business transactions arising out of or in connection with this
Agreement, which shall have been prepared by an independent certified public accountant
reasonably acceptable to the City. The financial statement shall include a determination of the
Actual Billings, the Actual Collections, the RFP Billings and the RFP Collections, the
Franchise Fees and Additional Payments due to the City pursuant to this Agreement. Each
such audited financial statement shall be based on the City's fiscal year of October 1 to
September 30 and shall be submitted to the City on or before December 31 of each year except
that the last such audit shall be submitted within sixty (60) days after the termination of this
Agreement.
Section 16. Preliminarv Plans.
The Franchisee shall, at no cost or expense, when requested, review the
preliminary subdivision and site plans for all commercial and multi-family developments within
the City and provide the City in a timely manner with written comments concerning the
placement and location of solid waste receptacles or dumpsters.
Section 17. Asshroment.
This Agreement and the rights and privileges hereunder shall not be assigned or
otherwise transferred by Franchisee except with the express written approval of the City. The
City reserves the right in its sole and absolute discretion to approve or disapprove any such
requested assignment or transfer of this Agreement. The City may require that any proposed
assignee submit similar documentation to that provided by the franchisee at the time of award
of the franchise. No assignment or transfer shall be effective until the assignee or transferee
has executed with the City an Agreement of Acceptance, subject to approval by the City,
evidencing that the assignee or transferee accepts the assignment or transfer subject to all of
the terms, conditions and limitations imposed herein. Any such assignment or transfer shall be
in form and content subject to the approval of the City.
Section 18. Indemnification.
Franchisee shall indemnify, defend and hold completely harmless the City, its
elected representatives, officers, employees and agents of each, from and against any and all
liabilities, losses, suits, claims, demands, judgments, fines, damages, costs and expenses
(including all costs for investigation and defense thereof, including, but not limited to court
costs, expert fees and reasonable attorneys' fees and paralegal fees and attorneys' and paralegal
fees on appeal) which may be incurred by, charged to or recovered from any of the foregoing
(i) by reason or on account of damage to or destruction of any property of the City, or any
property of, injury to or death of any person resulting from or arising out of the performance
under this Agreement, or the acts or omissions of Franchisee officers, agents, employees,
subcontractors, licensees or invitees, regardless of where damage, destruction, injury or death
occurred, unless such liability, loss, suit, claim, demand, judgment, fme, damage, cost or
expense was proximately caused solely by City's negligence or by the joint negligence of City
006.224832.2
10
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CITY OF OCOEE
RESIDENTIAL YARD AND BULKY WASTE
COLLECTION AND DISPOSAL AGREEMENT
AUGUST ~O , 2001
006.224833.2
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by the Contractor. This performance bond shall be written by a surety company licensed to do
business in the State of Florida.
15.2 The Surety shall be a company or companies satisfactory to the City.
Any surety shall be required to have a resident agent in the State of Florida and shall be duly
licensed to conduct business therein. The requirements of Florida resident agent may be
waived by the City if evidence satisfactory to the City is provided that applicable requirements
have been met to permit service of process on a State official under State law.
Section 16. BOOKS AND RECORDS
16.1 The Contractor shall keep complete books and records at its place of
business, setting forth a true and accurate account of all business transactions arising out of or
in connection with this Agreement, including but not limited to a complete customer account
listing and a record of all amounts received for services performed under this Agreement, all in
accordance with good business practices and generally accepted accounting principles. The
City shall have the right to have access to and inspect and copy the contents of said books and
records during normal business hours. Upon thirty (30) days written request from the City,
the Contractor shall provide the City with a complete customer account listing and a record of
all amounts received during the prior twelve (12) months.
16.2 The Contractor shall annually submit to the City an audited financial
statement with respect to all business transactions arising out of or in connection with this
Agreement, which shall have been prepared by an independent certified public accountant
reasonably acceptable to the City. Each such audited fmancial statement shall be based on the
City's fiscal year of October 1 to September 30 and shall be submitted to the City on or before
November 15 of each year except that the last such audit shall be submitted within sixty (60)
days after the termination of this Agreement.
Section 17. ASSIGNMENT
This Agreement and the rights and privileges thereunder shall not be assigned or
otherwise transferred by Contractor except with the express written approval of the City. The
City reserves the right in its sole and absolute discretion to approve or disapprove any such
requested assignment or transfer of this Agreement. The City may require that any proposed
assignee submit similar documentation to that provided by the Contractor at the time of award
of this Agreement. No assignment or transfer shall be effective until the assignee or transferee
has executed with the City an "Agreement of Acceptance," subject to approval by the City,
evidencing that the assignee or transferee accepts the assignment or transfer subject to all of the
terms, conditions and limitations imposed herein. Any such assignment or transfer shall be in
form and content subject to the approval of the City.
Section 18. INDEMNIFICATION
The Contractor shall indemnify, defend and hold completely harmless the City,
its elected representatives, officers, employees and agents of each, from and against any and
006.224833.2
16