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Item #10 Approval of Resolution, Customer Application, and Customer Agreement for Septic Tank Pump Out Services .04 ocoee fiorida AGENDA ITEM COVER SHEET Meeting Date: October 20, 2015 Item # 10 Reviewed By. s K. Smith, P.E. Department Director: Charle- Contact Name: Charles p � • _ . ' � Contact Number: 407 - 905 -3159 City Manager: Robert Fra ,�/ "4 j Subject: Approval of Resolution, Customer Application, and Customer Agreement for Septic Tank Pump Out Services Background Summary: Septic tank failures contribute to the degradation of ground and surface waters, and proper maintenance of residential septic systems is key to increasing the functional life of on -site septic systems. Based on this information, the Utilities Department wishes to offer contracted septic pump out services to Utilities customers with residential, on -site septic tanks to help maintain the vitality of their tanks, and to protect the environment from contamination. The City Commission voted to approve the Award of B15 -07 Septic Tank Pumping and Hauling Services Program on September 1, 2015. This approval allows the City to contract with septic haulers for routine residential septic tank pump out services. Implementation of septic tank pump out services will allow the City to provide for the systematic coordination of the pumping of residential on -site septic tanks, and the non - destructive visual inspection of those tanks. The City will coordinate with and compensate local vendors to pump septic tanks at the homes of voluntarily enrolled customers. This coordination also includes reporting to customers the pumping results and observed issues. The customer will subscribe to a three (3) year Agreement with a one -time, initial registration fee of $60.00, and $7.00 per month for thirty -six (36) months, invoiced on the customer's monthly Ocoee Utility Bill. The City will coordinate the pumping of the enrolled customers' septic tanks one (1) time during the initial six (6) months of their term. The monthly rate and three (3) year contract period term offered to customers is based on several factors: 1) The average rate of the two most responsive bidders is $172 per pump out; 2) The projected administrative cost is $45; 3) The projected treatment cost at the Ocoee Wastewater Treatment Plant (WWTP) is $35; and 4) The projected capital cost for improvements to the WWTP plant is $40. Issue: Should the Mayor and Commissioners approve the septic pump out services Resolution, Customer Application and Customer Agreement Forms? Recommendations Staff recommends that the City Commission: 1) Adopt the Resolution establishing a rate schedule for septic tank pumping and hauling services; 2) Approve the Customer Application and Customer Agreement Forms for septic tank pump out services; and 3) Authorize the City to enter into contracts with Utility customers wishing to receive septic tank pump out services. Attachments: 1) Resolution 2) Customer Application 3) Customer Agreement Financial Impact: The following revenues needed per customer are projected over the three year contract period: • The average rate of the two most responsive bidders is $172 per pump out; • The projected administrative costs is $45; • The projected treatment cost at the Ocoee Wastewater Treatment Plant (WWTP) is $35. • The projected capital cost for improvements to the WWTP plant is $40. Based on the above numbers, the projected monthly revenue needed from each customer electing to participate in the program is $8.11. This revenue projection will contractually obligate a customer to the program for a period of thirty -six (36) months. Based on the needed monthly revenue, the Utilities Department would like to offer customers a monthly rate of $7.00 and an initial $60.00 registration fee. The program's first term will cost the customer $312.00. Type of Item: (please mark with an "x") Public Hearing For Clerk's Dept Use: Ordinance First Reading Consent Agenda Ordinance Second Reading Public Hearing X Resolution Regular Agenda Commission Approval Discussion & Direction Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney N/A Reviewed by Finance Dept. N/A Reviewed by 0 N/A 2 Septic Tank Pump Out Services Application Join the City's hassle -free Septic Tank Pump Out Service today! Through talking with our customers, we have discovered that most failing septic tanks result from a lack of routine maintenance. For most people, septic tanks just are not something you worry about until they do not work. When is the last time you had your septic tank pumped? It is recommended that a septic tank be pumped out every three (3) years to maintain the proper working order, and we have the perfect solution to keep your septic services on track. Our thirty -six (36) month pump out service includes one (1) pump out per program cycle, and a post - pumping report. For questions, please call the City of Ocoee Utilities Department at 407 - 905 -3159. Customer Information Utility Account Number: Name E -mail address 1 1 Street address Street address line 2 City State Zip code 1 1 1 1 1 Home Phone Number Cell Phone Number Here's What You Do: 1) Complete the Septic Tank Pump Out Services Application. 2) Complete the Septic Tank Pump Out Services Customer Agreement. 3) Return both signed and completed documents to the City of Ocoee Utilities Department, 1800 A.D. Mims Road, Ocoee, FL 34761. Here's What We Do: 1) Upon receiving your signed documents, the City will schedule a site validation. 2) Once approved, the City will schedule your pump out within the first six (6) months of your contract! Agreement Term and Payment Term The Customer receives a three (3) year Agreement with a one -time, initial "Registration Fee" of $60, and $7* per month for thirty -six months (36), invoiced on the Customer's monthly Ocoee Utility Bill. The Customer understands that upon acceptance into the the program, their first monthly Ocoee Utility bill will reflect a $67 charge for the services. *The monthly fee shall be subject to change, with no changes occurring until after October 1, 2018. Customer Signature Date If you have routinely serviced your septic tank, you are not precluded from entering into this Agreement with the City. Should you elect to register for the pump out services, your pump out date will be scheduled based on your last septic pump out date. Date of last septic tank pump out: City of Ocoee Septic Tank Pump Out Services Agreement Customer Name Click here to enter text. Home Phone Click here to enter text. Mailing Address Click here to enter text. Business Phone Click here to enter text. Septic system property address Click here to enter text. By entering into this Agreement, , (hereafter "Customer"), agrees to contract with the City of Ocoee, (hereafter "City "), a municipal corporation existing under the laws of the State of Florida, whose mailing address is 150 N. Lakeshore Drive (City), to provide specific management and related pumping services as defined within the Scope of Services for the septic tank by , and located at (hereafter "Property "). Now, therefore, in consideration of the premises and other good and valuable considerations exchanged between the parties, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: Validation of Property Ownership: In signing this Agreement, the Customer either asserts he /she is the owner of the Property, or Customer asserts that he /she has responsibility for the management of the Property, specifically including the responsibility for the maintenance and care of the septic system that is the subject of this Agreement. Payment Terms: 1. At the time of execution of this Agreement by the Customer, the Customer shall pay a one -time, initial "Registration Fee" in the amount of $ . Should the Customer terminate participation in the program upon completion of a TERM, and then choose to re -enter into the program, an additional Registration Fee shall apply. If a Customer is not accepted into the program, any Registration Fee collected from the Customer shall be refunded to the Customer. Should the City or its contractor, in its initial site validation inspection, determine in its sole discretion that the Customer is precluded from receiving services under this Agreement, any Registration Fee collected by the City will be refunded to the Customer. 2. Additionally, Customer shall pay a monthly service fee of $ included with Customer's monthly Ocoee utility bill for the TERM. The monthly service fee shall be subject to change, with no changes occurring until after October 1, 2018. 3. Changes to the monthly fee, any surcharges, or late fees shall be assessed in accordance with the Water and Sewers Ordinance. Agreement Terms and Termination of the Agreement: 1. The Customer understands that this Agreement is for a three (3) year term, (herein referred to as "TERM "), which is effective from the date the City approves the application. Customer further understands that this Agreement automatically renews for successive three -year TERMs, unless terminated as provided herein. 2. Customer may cancel this Agreement at any time during a TERM, and shall be responsible to pay the current monthly rate multiplied by the number of months remaining in the TERM. 3. The City may terminate this Agreement, upon 30 days' notice to the Customer, for any of the following reasons: a. The Customer fails to pay any service fees or other charges due identified within this Agreement in a timely manner. b. Any breach by the Customer of any of the provisions contained in this Agreement. c. The Customer has obstructed the access to the septic tank. 4. The City reserves the right to decline to extend this Agreement past the initial TERM. Scope of Services Provided by the City: 1. The City agrees to coordinate and cause the pumping of the Customer's septic tank one (1) time during the initial six (6) months of a TERM. 2. Upon request by the Customer, the initial pumping may be delayed to an agreed upon date within the TERM. This section is intended to accommodate those customers who have recently had their septic tanks pumped, but would like to participate in the program. 3. The City will provide the Customer with a post - pumping summary. Terms and Conditions: 1. ENTIRE AGREEMENT: This writing contains the entire Agreement between the City and the Customer. Customer acknowledges that no other promises, covenants, or representations have been made by the City, its employees, or contractors. 2. By signing this Agreement, Customer acknowledges that he /she has read the entire Agreement and agrees to all terms contained herein. 3. The Customer is responsible for providing access to the Property to the City, its employees, agents, or contractors for the purpose of rendering the services described in this Agreement. At the time the access is provided, Customer also agrees to contain any animals that may provide a safety risk to the City, its agents, or contractors. 4. By entering into this Agreement, the City presumes that the Customer's septic system is consistent with all regulatory requirements and is in a condition so that the services can be provided. If the City or its contractor determines that the septic system is not in regulatory compliance or in an inoperable condition, the Customer will be responsible for any expenses incurred by the City. 5. This Agreement is not a warranty. The City does not warranty the septic system in any way. 6. Pump outs, if any, other than the one (1) pump out committed during any three (3) year period of a TERM, are not covered by this Agreement and will be performed at an additional cost to the Customer. 7. The Customer understands any additional services not specifically covered in this Agreement are not included in the cost of this Agreement, and will only be performed at an additional cost to the Customer. The Customer may use City- contracted vendors for any additional services Customer may require, beyond those outlined in this Agreement. 8. The Customer agrees that should any dispute arise concerning this Agreement, the parties shall submit the dispute first to mediation. Venue for any such dispute is in Orange County, Florida. 9. This Agreement may be transferrable in the event of a change in homeownership. In the event of a transfer, the City, Customer, and new homeowner, must agree to the transference of the Agreement in writing. In the event the new homeowner does not wish to continue with the terms of the Agreement, the contractual Customer must pay the remaining balance in full. 10. If multiple tanks, oversized tanks, or septic tanks serving more than one residential unit are discovered on the Customer's property, charges shall be assessed accordingly. Excluded Services: 1. The services contained in this Agreement shall NOT include: a. an initial inspection, review or analysis of the physical or structural condition of the septic system or its component parts; and b. any inspection, analysis, review, recommendation, or opinion relative to or in connection with the sale or transfer of the Property to any third party to this Agreement. 2. The Customer recognizes and agrees that no third party has any right or obligation to rely upon the services performed by the City or its contractors pursuant to this Agreement. Choice of Law: The interpretation and enforcement of this Agreement shall be governed by the laws within the State of Florida. Amendment, Modification and Waiver: This Agreement may only be modified or amended in a written amendment hereto, which is signed by the City and the Customer. Disclaimer of Warranties and Limitation of Liability: Customer understands and agrees that neither this agreement, nor any inspections, reports, or recommendations provided by the City, are a guarantee or warranty of any kind regarding the, septic system, onsite wastewater system, or their components, and any such warranties, express or implied, are hereby disclaimed by the City. Customer understands and agrees that trucks and equipment may access the Property to pump the septic tank. The City will not be held responsible for the driveway or apron should any damage occur. The City is not responsible for any damages associated with the inspection or pumping out of the customer's septic tank. Customer agrees to hold harmless for any negligent act committed by any of its employees, agents, contractors, or assigns for any acts committed during the term of this agreement. The City or its contractors is not responsible for any damage to grass, shrubbery, plants, structures, or other obstacles placed within ten (10) feet of the septic tank. The Customer understands and agrees that the City will not, under any circumstances, be liable for repair, maintenance, or replacement of the septic system, or any of its components, diminution in value of the Property, or any other consequential, incidental, property, or economic damages arising out of or relating to any services performed by the City or its contractors pursuant to this Agreement, including without limitation, the City's failure to inspect, improper inspection, failure to report, or improper reporting. The damages and claims for which the City shall not be liable include, but are not limited to, failure of the septic system of any kind. Customer agrees to defend, indemnify and hold the City harmless from and against any and all claims, damages, losses, costs, liabilities or expenses asserted by any third parties to this Agreement relating to any work, recommendations or other services furnished by the City or its contractor pursuant to this Agreement. Customer further agrees that any damages arising out of this Agreement, the services performed by the City or its contractors, or the recommendations made by the City, shall not exceed the annual fee set forth in the Agreement, or $500, whichever is greater. The Customer agrees to the terms as set above. Customer Signature Date Accepted by: For the City of Ocoee Date RESOLUTION NO. A RESOLUTION OF THE CITY OF OCOEE, FLORIDA, ESTABLISHING A RATE SCHEDULE FOR SEPTIC TANK PUMPING AND HAULING SERVICES; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. WHEREAS, to benefit the public health, safety, and welfare of its citizens and the environment, the City of Ocoee is undertaking a pilot program to make available scheduled septic tank pumping and hauling services to residents of the City of Ocoee; and WHEREAS, on September 1, 2015, the City Commission of the City of Ocoee selected two responsible bidders to perform septic pump out services to the City residents pursuant to a contract with the City; and WHEREAS, the City Commission of the City of Ocoee desires to establish a rate scheduled for customers who enter into a service agreement with the City of Ocoee for septic tank pump outs on a scheduled basis. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF OCOEE, FLORIDA, AS FOLLOWS: SECTION 1. Authority. The City Commission of the City of Ocoee has the authority to adopt this Resolution pursuant to Article VIII of the Constitution of the State of Florida and Chapter 166, Florida Statutes. SECTION 2. Program Establishment. The City Commission of the City of Ocoee hereby adopts and approves a pilot program to make available scheduled septic tank pumping and hauling services program to residents of the City of Ocoee. SECTION 3. Schedule of Rates. The City Commission of the City of Ocoee hereby adopts and approves the following Rate Schedule for scheduled (routine) septic tank pump outs performed pursuant to a validly executed agreement: 1) Registration Fee $ /at time of application 2) Routine Septic Tank Pump Out $ /monthly for term of agreement 3) Additional Services Shall be offered at actual costs incurred by the City All rates and fees shall be included on the Customer's monthly Ocoee utility bill. Late payment fees and returned check charges will be assessed in accordance to the Water and Sewers Ordinance. SECTION 4. Severability. If any section, subsection, sentence, clause, phrase or portion of this Resolution is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision and such holding shall not affect the validity of the remaining portion hereto. SECTION 5. Effective Date. This Resolution shall become effective immediately upon passage and adoption. PASSED AND ADOPTED this day of , 20 . APPROVED: ATTEST: CITY OF OCOEE, FLORIDA Beth Eikenberry, City Clerk John Grogan, Mayor (SEAL) -2- APPROVED BY THE OCOEE CITY COMMISSION ON THE ABOVE DATE UNDER AGENDA ITEM NO. FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA; APPROVED AS TO FORM AND LEGALITY this day of ,20 . SHUFFIELD, LOWMAN & WILSON, P.A. By: City Attorney -3-