HomeMy WebLinkAboutItem #10a Amendment to the Commercial & Multifamily Solid Waste Collection
AGENDA ITEM COVER SHEET
Meeting Date: September 19, 2006
Item .,.
\OA
Contact Name:
Contact Number:
Stephen C. Krug
6002
Reviewed By:
Department Director:
City Manager:
Subject: Amendment to the Commercial and Multi-Family Solid Waste Collection Franchise
Agreement with Veolia ES Solid Waste Southeast, Inc.
Background Summary:
The City has reached the end of the term for the Commercial and Multi-Family Solid Waste
Collection Franchise Agreement with the current franchisee, Veolia ES Solid Waste Southeast, Inc.
(formerly know as Onyx). The two (2) year extension to Veolia's contract allowed for renegotiation
of rates to continue service. This amendment to the Commercial and Multi-Family Solid Waste
Collection Agreement will maintain service to customers and allow the City to determine if said
service should be brought in-house or solicit new proposals to continue contracting with outside
vendors. The proposed amendment includes a monthly fuel adjustment surcharge and early
termination clause.
Issue:
The Honorable Mayor and City Commission to consider approving the Amendment to the
Commercial and Multi-Family Solid Waste Collection Franchise Agreement with Veolia ES Solid
Waste Southeast, Inc., for a 24-month term that includes a monthly fuel adjustment surcharge.
Recommendations
Staff respectfully requests the Honorable Mayor and City Commission to approve the Amendment
to the Commercial and Multi-Family Solid Waste Collection Franchise Agreement with Veolia ES
Solid Waste Southeast, Inc., for a 24-month term that includes a monthly fuel adjustment surcharge
and early termination clause.
Attachments:
Amendment to the Commercial and Multi-Familv Solid Waste Collection Franchise AQreement and
Exhibit A & Exhibit B.
Financial Impact:
Approval of the Amendment will increase the franchise customer collection rates in line with the
associated Resolution, yet the revenue from the franchise fee will be maintained at the current
amount.
Type of Item:
o Public Hearing
o Ordinance First Reading
o Ordinance First Reading
o Resolution
o Commission Approval
o Discussion & Direction
For Clerl<'s DeDt Use:
o Consent Agenda
o Public Hearing
~ Regular Agenda
D Original Document/Contract Attached for Execution by City Clerk
D Original Document/Contract Held by Department for Execution
Reviewed by City Attorney
Reviewed by Finance Dept.
Reviewed by ( )
[8J N/A
D N/A
D N/A
City Manager
Robert Frank
Commissioners
Danny Howell. District 1
Scott Anderson. District 2
Rusty Johnson. District 3
Nancy J. Parker. District 4
Mayor
S. Scott Vandergrift
STAFF REPORT
TO:
The Honorable Mayor and City Commissioners
FROM:
Stephen C. Krug, Director of Public Works
DATE:
September 19, 2006
RE:
Amendment to the Commercial And Multi-Family Solid Waste Collection Franchise
Agreement with Veolia ES Solid Waste Southeast, Inc.
ISSUE
The Honorable Mayor and City Commission to consider approving the Amendment to the Commercial and
Multi-Family Solid Waste Collection Franchise Agreement with Veolia ES Solid Waste Southeast, Inc., for a
24-month term that includes a monthly fuel adjustment surcharge
BACKGROUNDIDISCUSSION
The City has reached the end of the term for the Commercial and Multi-Family Solid Waste Collection
Franchise Agreement with the current franchisee, Veolia ES Solid Waste Southeast, Inc. (formerly know as
Onyx). The two (2) year extension to Veolia's contract allowed for renegotiation of rates to continue service.
The Amendment to the Commercial and Multi-Family Solid Waste Collection Agreement will maintain service
to customers and allow the City to determine if said service should be brought in-house or solicit new proposals
to continue contracting with outside vendors. The proposed amendment includes a monthly fuel adjustment
surcharge and early termination clause.
The monthly fuel adjustment surcharge allows the City to maintain aggressive rates at a lower overall fee to the
consumer utilizing the services. The fuel adjustment surcharge shall be applied to the franchise rates monthly
based on a starting monthly average diesel fuel price of $2.85/gallon as of September 1, 2006, reported by the
Energy Information Administration of the U.S. Department of Energy.
The termination clause allows the City the option to transfer this service in-house or to another vendor prior to
the 24-month term of this amendment.
AMENDMENT
COMMERCIAL AND MUL TI-FAMIL Y SOLID WASTE
COLLECTION FRANCHISE AGREEMENT
THIS AMENDMENT TO COMMERCIAL AND MULTI-FAMILY SOLID
WASTE COLLECTION FRANCHISE AGREEMENT (this "Amendment") is made and
entered into as of the 19th of September, 2006 and modifies that certain Commercial and Multi-
Family Solid Waste Collection Franchise Agreement (the "Agreement") made and entered into
on August 30, 2001, by and between the CITY OF OCOEE, a Florida municipal corporation
(hereinafter referred to as the "City") and VEOLIA ES SOLID WASTE SOUTHEAST, INC.,
a Florida corporation (f/k/a Onyx Waste Services Southeast, Inc., also f/k/a Onyx Waste Services
of Florida, Inc., and also f/k/a Superior Waste Services of Florida, Inc.) (hereinafter referred to
as the "Franchisee").
WIT N E SSE T H:
WHEREAS, Section 4(A) of the Agreement provides that the Initial Term (as
defined in the Agreement) of the Agreement is set to expire on August 31,2006; and
WHEREAS, Section 4(A) of the Agreement provides that the Initial Term may
be extended for an additional two (2) year term terminating on August 31, 2008; and
WHEREAS, Section 14(H) of the Agreement provides that the RFP Rates shall
remain in effect until at least August 31, 2006 and may thereafter be annually adjusted subject to
the terms of the Agreement; and
WHEREAS, Section 14(H) of the Agreement provides that a new RFP Rates
may be retroactive to the beginning of the billing period in which an amendment to the
Agreement setting forth such new RFP Rates is executed; and
WHEREAS, of even date herewith the City, at an advertised public hearing, as
adopted new "Resolution Rates" effective retroactive to the beginning of the Franchisee's current
billing period; and
WHEREAS, of even date herewith the City has adopted a Resolution authorizing
a fuel adjustment surcharge; and
WHEREAS, the City and Franchise desire that the Resolution Rates and the RFP
Rates be the same for the remaining term of this Agreement; and
WHEREAS, the City and the Franchisee desire to execute this Amendment in
order to extend the term thereof, increase the RFP Rates, authorize a fuel adjustment surcharge
and address other matters between the parties.
NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration exchanged between the parties hereto, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto agree as follows:
ORLA_ 419341.3
Section 1. Recitals. The above recitals are true and correct and are incorporated
herein by reference.
Section 2. Term Extension and Earlv Termination. The term of the Agreement is
extended for an additional two (2) year term commencing with the expiration of the Initial Term
and terminating on August 31, 2008; provided, however, that notwithstanding any other
provision contained herein to the contrary, the City may elect to terminate this Agreement at an
earlier date by providing at least six (6) months written notice to Franchisee of such early
termination.
Section 3. Rates and Chan!es. Section 14 of the Agreement is hereby deleted in its
entirety and the following is substituted in lieu thereof:
"Section 14. Rates and Charges.
A. For the purposes of this Agreement, the following definitions shall be
applicable:
1. "Resolution Rates" mean the rates to be charged for the commercial and multi-family
solid waste collection and disposal service as established from time-to-time by resolution
of the Ocoee City Commission in accordance with Section 143-9 of the Ocoee City Code,
exclusive of any Fuel Adjustment Surcharge. The new Resolution Rates adopted by the
City Commission of even date herewith are attached hereto as Exhibit "A", which rates
are effective retroactive to the beginning of the billing period during which this
Amendment is executed.
2. "RFP Rates" means those rates for commercial and multi-family solid waste collection
and disposal service charged by the Franchisee, exclusive of any Fuel Adjustment
Surcharge, which rates are the same as the Resolution Rates
3. "Actual Billings" means billings to customers based on the Resolution Rates.
4. "Actual Collections" means actual collections received by Franchisee from customers
based on the Actual Billings.
5. "RFP Billings" means "Actual Billings".
6. "RFP Collections" means "Actual Collections".
7. "Fuel Adjustment Surcharge" means an additional monthly charge to commercial and
multi-family solid waste customers based on increases in the cost of fuel, such additional
charge being calculated in accordance with the formula set forth in Exhibit "B" attached
hereto and by this reference made a part hereof.
B. Rates to be charged for the commercial and multi-family solid waste
collection and disposal service to be performed under this Agreement shall be based on the
Resolution Rates. In the event the Franchisee proposes to impose any charges on a customer
which are not included in the Resolution Rates (except for the Fuel Adjustment Surcharge as
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ORLA_419341.3
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9/19/06
authorized in this Amendment), then the Franchisee shall first advise the City of such
circumstance and if the City concurs, then the rates for such charges shall be included in the
Actual Billings. If the applicable rates are unclear or uncertain, it is agreed that the decision of
the City shall be final with respect to the determination of the Resolution Rates applicable to any
services provided by the Franchisee.
C. The Franchisee, at its sole cost and expense, shall be solely responsible for
the billing and collection of all fees and charges payable to the Franchisee based on the
Resolution Rates by customers for services rendered pursuant to this Agreement. The Franchisee
shall use its best efforts to bill and collect all such fees and charges on a monthly basis unless
otherwise agreed to in writing by the City.
D. In consideration for the grant of this franchise and the execution of this
Agreement by the City, the Franchisee agrees to pay to the City a franchise fee equal to
TWENTY PERCENT (20%) of the Actual Collections ("the Franchise Fee"). The Franchisee
shall pay the Franchise Fee to the City on or before the tenth (10th) day of each month with
respect to the Actual Collections during the previous month. Such payment shall be transmitted
on a City approved form. Failure ofthe Franchisee to make timely payment to the City of the
Franchise Fee shall constitute a default by the Franchisee of this Agreement.
E. [INTENTIONALLY DELETED]
F. Each transmittal ofthe Franchise Fee shall include a certification by the
Franchisee of the Actual Billings and Actual Collections during the prior month and such other
information as may be required by the City.
G. Franchisee shall be entitled to retain the Actual Billings less the Franchise
Fee.
H. Notwithstanding any provisions contained herein to the contrary, the
Resolution Rates shall remain in effect for the remaining term of this Agreement until August 31,
2008; provided, however, that such rates shall be retroactive to the beginning of the billing
period during which this Amendment is executed. The foregoing shall not be construed to
require that the Resolution Rates remain in effective following the termination of this Agreement
or the end of the term hereof.
I. Notwithstanding any provisions contained herein to the contrary, the
Franchisee has agreed to, at no cost or expense to the City, provide the City with the following
services:
1. Dumpsters in sizes to be mutually agreed upon at all City owned and operated facilities,
including but not limited to City Hall, City parks and recreational facilities, Fire Stations,
Public Works Facilities, cemetery, and the City Sewer Plant, and the removal and
disposal of all solid waste and other materials placed in such dumpsters.
2. Temporary dumpsters in a size to be mutually agreed upon for all City sponsored events
which are open to the general public. The removal and disposal of all solid waste and
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ORLA_419341.3
other materials placed in such dumpsters and the removal of such dumpsters promptly
following each City sponsored event.
The above services are provided to the City at no cost or expense in further consideration for the
grant of this franchise and the execution of this Agreement by the City.
J. Notwithstanding any provisions contained herein to the contrary, the
Franchisee has agreed to, at no cost or expense, provide solid waste collection and disposal
services to all religious institutions located within the corporate limits of the City. This donated
service shall include providing a dumpster in a size to be mutually agreed upon between the
Franchisee and the religious institution. For the purposes hereof, "religious institutions" means
churches and ecclesiastical or denominational organizations or established physical places of
worship at which non-profit religious services and activities are regularly conducted and carried
on.
K. In addition to the Resolution Rates, the Franchisee my impose and charge
a monthly Fuel Adjustment Surcharge upon prior written notice to the City which notice shall
demonstrate the calculation of the surcharge in accordance with the formula attached hereto as
Exhibit "B". The Franchise Fee shall not apply to billings and collections of the Fuel
Adjustment Surcharge; provided, however, that all payments to the Franchise shall first be
applied to payments of any unpaid charges based on the Resolution Rates. Notwithstanding any
provision contained herein to the contrary, all reports to the City shall include the billings and
collections of the Fuel Adjustment Surcharge. As of the date hereof, there is no Fuel Adjustment
Surcharge and the parties hereto agree that no Fuel Adjustment Surcharge will be imposed by
Franchisee prior to December 1, 2006.
L. Within fourteen (14) days from the date of this Agreement the Franchisee
shall give written notice to all of its customers of the new Resolution Rates and the possibility of
Fuel Adjustment Surcharges effective December 1, 2006. Such notice shall advise the customers
that the new Resolution Rates are retroactive to the beginning of the billing period during which
this Amendment is executed. Further, all Fuel Adjustment Surcharges shall be separately shown
on all customer bills.
M. The parties hereto agree that the "Additional Payment" is no longer
applicable as of the beginning of the billing period during which this Amendment is executed;
provided, however, that all references in the Agreement to the Additional Payment prior to that
time shall remain in effect notwithstanding any provisions of this Agreement to the contrary."
N. The provisions of Section 14 of this Agreement in place prior to the
effective date of this Amendment shall remain in full force and effect to the extent they relate to
billings prior to the beginning of the billing period during which this Amendment is executed
and the collection of such billings.
Section 4. Force and Effect. All other terms and conditions of the Agreement and
prior amendments thereto shall remain in full force and effect.
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ORLA_ 419341.3
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their duly authorized elected officials and officers as of the day and year first above
written.
FRANCHISEE:
Signed, sealed and delivered
in the presence of:
VEOLIA ES SOLID WASTE
SOUTHEAST, INC., a Florida corporation
By:
Print Name:
, President
Attest:
Print Name:
, Secretary
(SEAL)
Signed, sealed and delivered
in the presence of:
CITY OF OCOEE,
a Florida municipal corporation
By:
Print Name:
S. Scott Vandergrift, Mayor
Attest:
Beth Eikenberry, City Clerk
Print Name:
(SEAL)
FOR USE AND RELIANCE ONLY
BY THE CITY OF OCOEE,
FLORIDA; APPROVED AS TO
FORM AND LEGALITY this 19th
day of September, 2006.
APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING HELD
ON September 19, 2006 UNDER AGENDA
ITEM NO.
FOLEY & LARDNER LLP
By:
City Attorney
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ORLA_ 419341.3
EXHIBIT" A"
NEWLY ADOPTED RESOLUTION RATES
(A) MONTHLY RATES FOR COMMERCIAL AND MULTI-FAMILY
SOLID WASTE SERVICES.
WEEKLY PICK-UP 2 CUBIC YARDS 3 CUBIC YARDS 4 CUBIC YARDS
1 time $ 41.57 $ 62.36 $ 83.14
2 times $ 83.14 $ 124.70 $ 166.27
3 times $ 124.70 $ 187.05 $ 249.41
4 times $ 166.27 $ 249.41 $ 332.54
5 times $ 207.84 $ 311.76 $ 415.68
6 times $ 249.41 $ 374.12 $ 498.82
WEEKLY PICK-UP
6 CUBIC YARDS 8 CUBIC YARDS
$ 124.70 $ 166.27
$ 249.41 $ 332.54
$ 374.11 $ 498.82
$ 498.82 $ 665.09
$ 623.52 $ 831.36
$ 748.22 $ 997.63
1 time
2 times
3 times
4 times
5 times
6 times
EXTRA PICK-UPS:
2 cubic yards:
3 cubic yards:
4 cubic yards:
6 cubic yards:
8 cubic yards:
$
$
$
$
$
per extra pick-up per week
per extra pick-up per week
per extra pick-up per week
per extra pick-up per week
per extra pick-up per week
ABOVE PRICES INCLUDE FULL PRICE OF DUMPSTER RENTAL
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ORLA_ 419341.3
(B) ROLL-OFFS:
Pricing for roll-offs:
Ooen Top 20 cubic yard
Open Too 30 cubic yard
Open Too 40 cubic yard
Comoactor Any Size
$ 130.00 per oull olus actual landfill disoosal charges
$ 130.00 per pull plus actual landfill disposal charges
$ 130.00 per pull plus actual landfill disposal charges
$ 130.00 per oull olus actual landfill disoosal charges
(C) OTHER CHARGES:
Other charges for services to be provided under Agreement:
If request by customer - any appropriate rental fees compactors. containers. etc. These rental
charges to reflect amortized costs of equipment with a return on investment. The soecific
schedule for any such charges shall be subject to the approval of the City.
(D) CONSTRUCTION AND DEMOLITION DEBRIS FROM
RESIDENTIAL BUILDING. ROOFING AND REMODELING:
Construction and demolition debris from residential building, roofing and remodeling is NOT
within the scope of the Agreement.
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ORLA_ 419341.3
EXHIBIT "B"
FUEL ADJUSTMENT SURCHARGE
A fuel adjustment surcharge shall be applied to the franchise rates monthly based
on a starting monthly average diesel fuel price of $2. 85/gallon as of September 1. The fuel
adjustment will be based on the monthly diesel fuel price for the East Coast Lower Atlantic
(P ADD 1 C) No 2 Diesel Retail Sales by All Sellers obtained from data published by the Energy
Information Administration of the U.S. Department of Energy at the following website:
http://tonto.eia.doe. gov / oog/info/ gdu/ gasdiesel.asp
The surcharge applied each month will be based on the following price per gallon
table. The surcharge will go to $0.00 once the average monthly rate goes to $2.85 / gal.
PPG %
2.85 -
2.86 0.05
2.87 0.10
2.88 0.15
2.89 0.20
2.90 0.25
2.91 0.30
2.92 0.35
2.93 0.40
2.94 0.45
2.95 0.50
2.96 0.55
2.97 0.60
2.98 0.65
2.99 0.70
3.00 0.75
3.01 0.80
3.02 0.85
3.03 0.90
3.04 0.95
3.05 1.00
PPG %
3.17 1.60
3.18 1.65
3.19 1.70
3.20 1.75
3.21 1.80
3.22 1.85
3.23 1.90
3.24 1.95
3.25 2.00
3.26 2.05
3.27 2.10
3.28 2.15
3.29 2.20
3.30 2.25
3.31 2.30
3.32 2.35
3.33 2.40
3.34 2.45
3.35 2.50
3.36 2.55
3.37 2.60
ORLA_419341.3
PPG %
3.49 3.20
3.50 3.25
3.51 3.30
3.52 3.35
3.53 3.40
3.54 3.45
3.55 3.50
3.56 3.55
3.57 3.60
3.58 3.65
3.59 3.70
3.60 3.75
3.61 3.80
3.62 3.85
3.63 3.90
3.64 3.95
3.65 4.00
3.66 4.05
3.67 4.10
3.68 4.15
3.69 4.20
PPG %
3.81 4.80
3.82 4.85
3.83 4.90
3.84 4.95
3.85 5.00
3.86 5.05
3.87 5.10
3.88 5.15
3.89 5.20
3.90 5.25
3.91 5.30
3.92 5.35
3.93 5.40
3.94 5.45
3.95 5.50
3.96 5.55
3.97 5.60
3.98 5.65
3.99 5.70
4.00 5.75
4.01 5.80
PPG %
4.13 6.40
4.14 6.45
4.15 6.50
4.16 6.55
4.17 6.60
4.18 6.65
4.19 6.70
4.20 6.75
4.21 6.80
4.22 6.85
4.23 6.90
4.24 6.95
4.25 7.00
4.26 7.05
4.27 7.10
4.28 7.15
4.29 7.20
4.30 7.25
4.31 7.30
4.32 7.35
4.33 7.40
8
PPG %
4.45 8.00
4.46 8.05
4.47 8.10
4.48 8.15
4.49 8.20
4.50 8.25
4.51 8.30
4.52 8.35
4.53 8.40
4.54 8.45
4.55 8.50
4.56 8.55
4.57 8.60
4.58 8.65
4.59 8.70
4.60 8.75
4.61 8.80
4.62 8.85
4.63 8.90
4.64 8.95
4.65 9.00
PPG %
4.77 9.60
4.78 9.65
4.79 9.70
4.80 9.75
4.81 9.80
4.82 9.85
4.83 9.90
4.84 9.95
4.85 10.00
4.86 10.05
4.87 10.10
4.88 10.15
4.89 10.20
4.90 10.25
4.91 10.30
4.92 10.35
4.93 10.40
4.94 10.45
4.95 10.50
4.96 10.55
4.97 10.60
PPG %
5.09 11.20
5.10 11.25
5.11 11.30
5.12 11.35
5.13 11.40
5.14 11.45
5.15 11.50
5.16 11.55
5.17 11.60
5.18 11.65
5.19 11.70
5.20 11.75
5.21 11.80
5.22 11.85
5.23 11.90
5.24 11.95
5.25 12.00
5.26 12.05
5.27 12.10
5.28 12.15
5.29 12.20
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3.06 1.05 3.38 2.65 3.70 4.25 4.02 5.85 4.34 7.45 4.66 9.05 4.98 10.65 5.30 12.25
3.07 1.10 3.39 2.70 3.71 4.30 4.03 5.90 4.35 7.50 4.67 9.10 4.99 10.70 5.31 12.30
3.08 1.15 3.40 2.75 3.72 4.35 4.04 5.95 4.36 7.55 4.68 9.15 5.00 10.75 5.32 12.35
3.09 1.20 3.41 2.80 3.73 4.40 4.05 6.00 4.37 7.60 4.69 9.20 5.01 10.80 5.33 12.40
3.10 1.25 3.42 2.85 3.74 4.45 4.06 6.05 4.38 7.65 4.70 9.25 5.02 10.85 5.34 12.45
3.11 1.30 3.43 2.90 3.75 4.50 4.07 6.10 4.39 7.70 4.71 9.30 5.03 10.90 5.35 12.50
3.12 1.35 3.44 2.95 3.76 4.55 4.08 6.15 4.40 7.75 4.72 9.35 5.04 10.95 5.36 12.55
3.13 1.40 3.45 3.00 3.77 4.60 4.09 6.20 4.41 7.80 4.73 9.40 5.05 11.00 5.37 12.60
3.14 1.45 3.46 3.05 3.78 4.65 4.10 6.25 4.42 7.85 4.74 9.45 5.06 11.05 5.38 12.65
3.15 1.50 3.47 3.10 3.79 4.70 4.11 6.30 4.43 7.90 4.75 9.50 5.07 11.10 5.39 12.70
3.16 1.55 3.48 3.15 3.80 4.75 4.12 6.35 4.44 7.95 4.76 9.55 5.08 11.15 5.40 12.75
PPG = Price Per Gallon
% = The percent adjustment to the rate.
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