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HomeMy WebLinkAbout1997 02 10 Regular Item F COMMISSION AGENDA ITEM F REGULAR X CONSENT INFORMATIONAL February 10. 1997 Meeting MAR/t/l//f{ /DEPT Authorization REQUEST: City Manager requesting the Commission to hold a public hearing and consider approval of the second reading of Ordinance No. 649 providing for a new Franchise Agreement with Browning-Ferris Industries for the provision of Solid Waste Collection Services. PURPOSE: To approve a new Solid Waste Collection Franchise Agreement with B.F.I. CONSIDERA TIONS: On February 10, 1997 the Commission approved the first reading of Ordinance No. 649 and Rate Resolution No. 812, The Franchise Agreement has been amended to include rates recommended by the Commission and some minor spelling and grammatical errors. FUNDING: Solid Waste Fee as provided in the approved Rate Resolution, RECOMMENDATION: The Commission approve the second reading of Ordinance No. 649 establishing a new Solid Waste Franchise Agreement. IMPLEMENTA TION: The Ordinance will become effective upon approval. The Solid Waste Franchise Agreement will become effective March 1, 1997. A TIACHMENTS: Ordinance No. 649 Solid Waste Franchise Agreement Rate Resolution No. 812 Page 1 ORDINANCE NO. 649 AN ORDINANCE TERMlNA TING THE CITY OF WINTER SPRINGS SOLlD WASTE COLLECTION FRANCHISE AGREEMENT DATED DECEMBER 12, 1992 AND AWARDING A NEW FRANCHISE TO B.F.I. EFFECTIVE MARCH 1, 1997; PROVIDING FOR ASSIGNMENT, TERMS, CONDITIONS AND SEVERABILITY. WHEREAS, the City of Winter Springs and Industrial Waste Services entered into a Franchise Agreement on December 12, 1992, the terms of which expire on December 31, 1997, and WHEREAS, Section 4.14 of the City Charter for the City of Winter Springs, Florida, authorizes the City Commission to award a franchise pursuant to ordinance; WHEREAS, the Winter Springs City Commission desires to enter into a new Franchise Agreement for the provisions of Solid Waste Collection Services. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA: SECTION I - The Franchise Agreement between I.W.S. and the City of Winter Springs, Florida, effective December 12, 1992, is hereby terminated by the City based upon the request of the franchisee. SECTION n - The City hereby adopts and grants the attached Franchise Agreement effective March 1, 1997, to B.F,l. The terms of the attached Franchise Agreement are incorporated herein by reference. The City Commission reserves the right to amend the attached Franchise Agreement and/or amend the rate or fees authorized thereunder by Resolution. SECTIONffi - Any Ordinance or Resolution in conflict herewith, is hereby replaced to the extent of said conflict. SECTION IV - This Ordinance shall take effect upon its passage and adoption. Passed and adopted this _day of , 1997, in Chamber at the Winter Springs City Commission, City of Winter Springs, Seminole County, Florida. CITY OF WINTER SPRINGS, FLORIDA PAUL P. PARTYKA, MAYOR ATTEST: CITY CLERK First Reading Posted Second Reading and Public Hearing EXHmIT "A" FRANCHISE AGREEMENT THIS AGREEMENT is made and entered into this day of February, 1997, by and between the City of Winter Springs,Florida (hereinafter referred to as the "City") , and Browning Ferris Industries, Inc. (herein referred to as B.F.I.) whose address is 1099 Miller Drive" Altamonte Springs, Florida 32701, and provides as follows: WHEREAS, the City and Industrial Waste Services were parties to an existing Franchise Agreement dated December 12, 1992, the term of which expires at midnight on December 31, 1997; and WHEREAS, the City and B.F.I. desire to enter into a new Franchise Agreement effective March 1, 1997. NOW, THEREFORE, in consideration of the mutual covenants, promises and conditions herein contained and other valuable considerations, the receipt and adequacy of which are hereby acknowledged, the parties hereby agree as follows: I, TERM OF AGREEMENT; RENEWAL AND DEFAULT. A. SCOPE AND TERM. This Agreement is an exclusive Franchise Agreement to collect, transport and dispose of residential , business, commercial and industrial solid waste and recyclable materials generated within the boundaries of the City. The term of this Agreement shall commence on the first day of March, 1997, and shall end at midnight on the last day of February, 2006. B. RENEWAL. The City and B.F.I, by mutual consent, may opt to extend or renew this Agreement Either party which wishes to extend or renew this Agreement shaH give the other party written notice of its intent to extend or renew this Agreement 365 days prior to the expiration of the term of the Agreement. Within 60 days of receipt of such notice, the other party shall respond in writing as to whether it agrees to such renewal. Any extension shall require passage of a resolution authorizing the extension by the City Commission of the City of Winter Springs, Florida. C. DEFAULT. 1. Notice of Default. B.F.I.'s failure to comply in any substantial respect with any of the provisions in this Agreement shall be grounds for forfeiture of its franchise. Prior to any such forfeiture, the City shall serve upon B.F.I. a written notice of default which notice shall set forth the specific nature of the default and the extent thereof. B.F.I. shall have sixty (60) days from the date of the notice of default within which to correct same prior to any forfeiture of its franchise. Should B.F.I. contest the A-I reasonableness or propriety of the City's notice of default, it shall notify the City in writing within ten (10) days of its receipt of the notice of default. Should RF.I. be served with a Notice of Default for a repeat breach of the Franchise Agreement, the City Commission shall have the option to terminate this Agreement on one-hundred and eighty days (180) written notice. 2. MEDTATION. If the City and RF.I. cannot agree as to the reasonableness or propriety of the City's notice of default, then the issue shall be promptly submitted to a three member arbitration panel. One panel member shall be selected by the City, one shall be selected by RF.I., and these two members shall jointly agree upon a third member. The mediation panel shall notify the city and RF.I. of its determination of the reasonableness and propriety of the City's notice of default not later than thirty days following submission of the issue to the panel. The determination shall be non-binding and advisory only to the City and B.F.I, 3. Reservation of Rights, The purpose of this section is to enable the City and RF.I. to resolve by mediation such differences as they may be unable to resolve by mutual agreement, and the decision of the mediation panel shall be advisory only and shall not be binding upon either the City or RF.I.. Nothing contained herein shall be construed to limit or restrict the legal rights and powers of the City or RF.I.. ll. DUTIES OF B.F.I.. RF.I. promises to perform its duties hereunder in a good and workmanlike manner and in strict compliance with the specifications for the Collection of Solid Waste and Recyclable Materials attached hereto as Exhibit "B" of the Mandatory Solid Waste Collection Ordinance No. 537 of the Winter Springs Code of Ordinances, and incorporated herein by reference as though set forth in full at this place, which Specifications shall be binding on the parties hereto. In. ADDITIONAL DUTIES. In addition to the duties described in II above, B.F,I. shall provide a special pick up day for normally scheduled yard waste and recyclable collection service days missed for any reason on the first Saturday following the missed collection day. Additionally, B.F.I. shall provide notice of the normally scheduled day of service that will not be provided and the make up day of service by either three consecutive days publication in a newspaper of general circulation or by notice at the location of each affected customer. Both alternative forms of notice must be completed three days prior to the normally scheduled work day that will be missed. IV. FIRST PRIORITY. In the event that B.F.I. experiences equipment failure or personnel problems in its overall operations, B.F.I. agrees to give first priority in the assignment of equipment and personnel to all routes within the City, V. B.F.I.'s EXCLUSIVE RIGHT TO SERVICE RESIDENTIAL DWELLINGS. During the term of this Agreement and any renewals hereof, RF.I. shall have the exclusive franchise for the collection, transport and disposal of residential solid waste and recyclable materials within the City and shall be the City's sole Franchisee for such A-2 services, as the term "Franchisee" is used in the Mandatory Solid Waste Collection Ordinance No. 537 of the Winter Springs Code of Ordinances. In accordance with the duties of B.F .I. as set forth in Section II above, no collection schedule shall be less than that provided in Exhibit "B" of Ordinance No. 537 of the Winter Springs Code of Ordinances, B.F.I. shall have the obligation of enforcing the exclusiveness of the Franchise and the City shall have no obligation to enforce same, VI. B.F.I.'s- EXCLUSIVE RIGHT TO SERVICE BUSINESS.- COMMERCIAL AND INDUSTRIAL ENTERPRISES. During the term of this Agreement and any renewals hereof, B.F.l shall have the exclusive right to contract for solid waste and recyclable materials collection services with all business, commercial and industrial enterprises within the City (including Multi-Family Residential Units and mobile ,home parks which receive dumpster or roll off service as opposed to curbside individual service), and agrees to collect all types of solid waste and recyclable materials from business, commercial and industrial enterprises within the City that have entered into individual contracts for such services with B.F.L, and shall be the City's sole franchisee for such services as the term "Franchisee" is used in the Mandatory Solid Waste Collection Ordinance No. 537 of the City of Winter Springs Code of Ordinances. The places and days of collection, quantities and items to be collected, and rates for such business, commercial and industrial service shall be established by individual contract between RF.I. and each business, commercial or industrial enterprise; provided, however, that the maximum permissible business, commercial and industrial rates to be charged by B.F.I. shall be established by the City by Resolution. VIT. RATES AND BILLING. A, RESIDENTIAL BILLING BY THE CITY. 1. RFJ. will invoice the City directly for all collection, transportation and disposal of solid waste and recyclable materials from Residential Collection Units, as defined in the Mandatory Solid Waste Collection Ordinance No. 537 of the Winter Springs Code of Ordinances. The City will pass the cost for such services through to its residents by inclusion of a line item for such services on City utility bills, In no event shall this Franchise Agreement be deemed or construed to mean the City is purchasing anything from B,F.I. The City shall only be obligated to transmit those monies it collects from customers to B.F .I. 2. RF.I. shall be entitled to payment by the City for services rendered to Residential Collection Units regardless of whether or not the City collects from its residents for such service. The City shall provide to B.F.I. an assessment roll or customer list setting forth the total number of Residential Collection Units to be served by B.FJ. pursuant to this Agreement and the address of each such Residential Collection Unit for the duration of this Agreement and any extensions or renewals hereof. The City shall promptly notify RF.I, in writing of any new construction resulting in additions to the list of Residential Collection Units to be served by B.F.I.. A-3 3. Payments due from the City to B.F.I. for collections for monthly service to Residential Collection Units shal1 be due and payable not later than the 15th day of the month following the month during which the service was rendered 4, On a quarterly basis for the duration of this Agreement and any extensions or renewals hereof, the City shall provide B.F.I. with an adjusted assessment roll or customer list, as referred to in Section VI(l) above, to reflect any new construction resulting in additions to such list during the prior quarter and from that date forward the City shall be billed by B.F.I. based upon the adjusted assessment roll or customer list. 5. In the event that B.F.I. discovers that it is providing service to a Residential Collection Unit that is not included on the most recent assessment roll or customer list provided by the City, B.F.I. shall provide the City Manager with the location or address of the omitted Residential Collection Unit. The City Manager shall promptly take steps to verify the existence of the omitted Residential Collection Unit and B.F.I.'s provision of service to such omitted Residential Unit and, upon verifying that the information is correct, the City shall immediately begin remitting monthly payments to B.F.r. for such service. Should either the City or B.F.I. discover that the City is erroneously paying B.F.I. for service to a non-existent Residential Unit, the discovering party shall immediately notify the other party and, upon verification of the information by the other party, the City's payments to B.F.r. shall be adjusted accordingly and the amount paid by City shall be remitted to the City. B. METHOD FOR BUSINESS, COMMERCIAL AND INDUSTRIAL BILLING. B.F.I., at no cost to the City, shall directly bill all business, commercial and industrial enterprises with which it has contracted to collect, transport and dispose of solid waste and recyclable materials. All fees shall be billed by B,F.I. to the owner or occupant of each business, commercial or industrial enterprise on a monthly basis in advance, 15 days prior to the beginning of each month, and shall be paid by the person to whom the bill is rendered by the first day of the month for which the bill is rendered. All persons who have not remitted payment within 30 days of the date of billing shall be sent a notice by B.F.I., with notice to the City, which states that service may be discontinued 15 days from the date of the notice if payment is not made before that time, If the payment still is not made within 15 days from the date of the notice, B.F.l. may discontinue service to the customer-and shall so notify the City immediately. B.F.I. shall have the responsibility for enforcing its collection efforts and terms of this agreement, for commercial and residential accounts. C. GENERAL PROVISIONS I.U niform Rates, The uniform rate for the residential and commercial services provided by B.F.I. are described in City of Winter Springs Resolution No. 812 attached hereto as Exhibit "B". B.F.I. shall only be required to provide side or back yard service to Residential Collection Units occupied by disabled persons under the conditions set A-4 forth in the Mandatory Solid Waste Collection Ordinance No. 537 of the Winter Springs Code of Ordinances, and shall not charge such persons more than the uniform rate established for each Residential Collection Unit. For residential customers who desire curbside service that cannot be provided by truck and requires the use of tote carts, or for any other special service not provided for in the Mandatory Solid Waste Collection Ordinance No. 537 City of Winter Springs Code of Ordinances, Exhibit "B". B.F.1. may impose a surcharge over the uniform rate which may either be included on the customer's utility bill or billed directly by B.F.1. to the customer. 2. Increase in Uniform Rates, B.F.1. shall be entitled to request an extraordinary adjustment of both the uniform rate for Residential Collection Units and the maximum permissible business, commercial and industrial rates if the request is due to an increase in its cost of doing business which is a direct result of an increase in landfill tipping fees or of compliance with new county, state or federal regulations regarding the solid waste industry. If B.F.I.'s request for a rate adjustment is due to an increase in the landfill tipping fees charged by Seminole County, the rate per Residential Collection Unit shall be increased according to the following formula: Total amount of landfill tipping fee increase per ton of solid waste multiplied by 1.369 (average annual solid waste generated per Residential Collection Unit is 1.369 tons) divided by , 12 equals monthly rate increase per Residential Collection Unit. B.F.I. shall provide adequate documentation and justification for any extraordinary rate adjustment requested pursuant to this section and such request shall be approved by the City via ordinance, resolution" amendment to this Agreement, or other appropriate mechanism" absent reasonable cause for refusing to approve such request. 3, Annual C.P.l. Beginning March 1, 1998 and every year there after B.F.I. shall be entitled to an annual c.P.I. adjustment not to exceed 2.5% based upon the increase in the C.P.I. over the past 12 month period. 4, Favored Nations Clause. The City of Winter Springs Rate Schedule should be adjusted to a rate equal to that provided to any municipal government in Seminole, Orange and Osceola Counties during the duration of this Agreement by B.F.1. which is lower that provided for in this Agreement. 5. Performance Bonus. To the extent provided by law, beginning March 1, 1998, B.F.I. shall be entitled to a Performance Bonus for the performance of the company over the prior twelve month period of the Agreement s determined by a customer's satisfaction rating of 90% or greater as performed by a competent independent market research consultant chosen mutually by B.F.I. and the City, A-5 The performance bonus shall be in the amount of $10,000 for years one, two and three of the agreement, $12,500 for years four, five and six of the agreement, and $15,000 for years seven, eight and nine of the agreement.. 6,Performance Bond. B.F,I. shall post with the City and keep in full force and effect during the term of this Agreement a performance bond issued by a nationally recognized surety company which will guarantee the full and faithful performance of B.F.I.'s duties and obligations under the Agreement in an amount equal to the average yearly revenues derived by B.F.I, for the twelve month period preceding March 1st of each contract year. 7. Books of Account. B.F.I. shall maintain good and accurate books of account reflecting the Residential Collection Units and business, commercial or industrial enterprises from which collections are made and the payments received therefrom. All such books of account pertaining to collections made in the City shall be open to inspection by authorized City officials on reasonable notice. In addition, B.F.I. shall provide the City with such information or documentation as the City may reasonably request in connection with any collection/enforcement actions referred by B.F.I. to the City pursuant to Paragraph VI(A) of this Agreement. vm. PERFORMANCE REQUmEMENTS. B.F ,I. hereby guarantees performance of all of its obligations hereunder in accordance with Florida law and any City ordinances now in effect or hereinafter enacted. B.F,1. acknowledges that it is thoroughly familiar with Florida law and City ordinances and shall abide by their specific terms. IX. ASSIGNMENT OF CONTRACT. This Agreement shall not be assignable by B.F.I. without the written consent of the City Commission. x. LA WSUITS. It is expressly understood and agreed that B.F.I. is in all respects an independent contractor as to all work to be performed hereunder, notwithstanding that directions with regard to B.F .I.'s performance hereunder may be issued from time to time by the City, its employees and/or its agents. B.F.I. shall pay any attorney's fees and costs incurred by the City plus any judgment which may be obtained against the City in any administrative or judicial proceedings, either alone or jointly with B.F.L, its agents or employees, for injury or damages to performance or persons or parties by reason of B.F.I.'S non performance of its obligations under this Agreement; provided, however, that if the City alone is sued for such injury or damage, written notice shall be given to B.F.I. to appear and defend such action on the City's behalf. B.F.I. shall hold the City harmless against any damages, attorney's fees and/or costs incurred by the city as a result of the City's award to B.F.I. of the franchise set forth in this Agreement, any challenges thereto and any work perrormed by B.F.l pursuant to the Franchise Agreement. In the event of litigation between B.F.I. and the City arising out of or relating to the enforcement or interpretation of this Agreement, the prevailing party shall be entitled to recover all of its costs and attorney's fees at the trial and all appellate levels from the other party. Venue for any cause of action arising hereunder shall be in the Circuit Court of Seminole County, Florida. A-6 XL WAIVERS. The failure of either side to enforce a term of this agreement shall not be construed as a waiver of either sides rights to require enforcement or to declare a default. XlI. SEVERABILITY. Should any part, clause, provISIon, or condition of this Agreement be held to be void, invalid or inoperative by any court of competent jurisdiction, then such invalidity shall not affect any other provisions hereof, and the remaining provisions shall be effective as though such invalid part, clause, provision or condition had not been set forth herein, Xlll. MUTUAL AGREEMENT. B.F.I. and the City agree that this Agreement sets forth the entire agreement between them with regard to the subject matter hereof, and that this Agreement shall only be amended, supplemented or altered by a written instrument executed by both of the parties hereto through their duly authorized representatives. XIV. NOTICES. Any notices required or permitted to be given by one of the parties to this Agreement shall be sent in writing to the other via U.S. Mail, hand-delivery or telefax, as follows: A. TO THE CITY: Winter Springs City Manager 1126 East State Road 434 Winter Springs, Florida 32708 with a copy to Winter Springs City Clerk 1126 East State Road 434Winter Springs, Florida 32708 B. TO B.F.I.: 1099 Miller Drive Altamonte Springs, FL 32701 xv. In the event any new laws or regulations are passed by any governmental body, the parties shall mutually negotiate in good faith to resolve the impact on the parties. In the event the parties cannot agree to a mutually satisfactory resolution, either side may submit the matter to a mediator as provided in paragraph C-2 of this agreement. In the event the parties are unable to resolve the issue(s) after mediation, either side may terminate this agreement upon one-hundred and eighty (180) days written notice, A-7 XVI. The City reserves the right to enforce any terms of this Franchise Agreement and to amend Ordinance No. 537 as it deems in the best interest of the public's health, safety and welfare. IN WITNESS WHEREOF, the parties have executed this Agreement on the dates set forth below. CITY WINTER SPRINGS, FLORIDA BROWNING-FERRIS INDUSTRIES, INC. By: (Name) (Title) By: (Name) (Title) Date: Date: A-8 RESOLUTION NO. 812 A RESOLUTION OF THE CITY OF WINTER SPRINGS, FLORIDA AMENDING RESOLUTION NO. 721, THE SOLIn WASTE COLLECTION RATE RESOLUTION OF THE CITY OF WINTER SPRlNGS, FLORIDA, CONFLICT, SEVERABILITY AND EFFECTIVE DATE. WHEREAS, The City Commission of the City of Winter Springs, Florida, adopted Resolution No. 721 the Solid Waste Collection Rate Resolution, and WHEREAS, Ordinance No. 537 as amended requires the rates to be set by Resolution, and WHEREAS, the City desires to establish a new rate structure with its Franchisee, NOW THEREFORE, the City Commission of the City of Winter Springs, Florida hereby resolves that: Section I: Section One of Resolution No. 721 is amended to read as follows: a) Residential Collection "Contractor Rates" shall be as described in Table I attached, b) Residential "Customer Rates" shall be as described in Table II attached. Section IT: Section Two of Resolution No. 721 is amended to provide for commercial rates provided in Table III attached. Section ill: Any Resolution in conflict with the provisions of this Resolution are hereby expressly repealed to the extent of said conflict. Section IV: This Resolution shall take effect upon passage, adoption and effect of Ordinance No. 649. Passed and adopted this _ day of February ~ 1997. CITY OF WINTER SPRINGS Mayor ATTEST: City Clerk TABLE I Solid Waste Collection Contractor Rates Effective March 1, 1997 TWICE WEEKLY GARBAGE COLLECTION ONCE WEEKLY YARD TRASH COLLECTION ONCE WEEKLY RECYCLABLES COLLECTION TOTAL COLLECTION (1) $4.64 $1.33 $1.58 $7.55 DISPOSAL (2) $4.10 TOTAL COLLECTION AND DISPOSAL $11.65 (1) DISPOSAL RATES ARE 100% PASS THROUGH AND SHALL BE ADJUSTED ACCORDINGLY UPON CHANGES IN LAND FILL TIPPING FEES. (2) BEGINNING MARCH 1,1998 AN ANNUAL C.P.1. ADJUSTMENT NOT TO EXCEED 2.5% WILL BE APPLIED TO THE COLLECTION RATE. TABLE II SOLID WASTE COLLECTION CUSTOMER RATES SOLID WASTE COLLECTION SOLID WASTE DISPOSAL CUSTOMER SERVICES FRANCHISE FEE RATE STABILIZATION (1) TOTAL CUSTOMER RATE (1) THE RATE STABILIZATION COMPONENT OF THE RATE WILL BE REDUCED AS THE C.P,!. ADJUSTMENTS ARE MADE AND IF INCREASED LANDFILL DISPOSAL FEES ARE EXPERIENCED. $7.55 $4.10 $0.65 $0.35 $1.03 $13.68 \, . TABLE III CITY OF WINTER SPRINGS COMMERCIAL RATES EFFECTIVE MARCH 1, 1997 IX 2X 3X 4X 5X 6X 2yd 31.70 63.39 95.07 126.78 158.48 190.17 3yd 47.54 95.08 142.62 190: 16 237.70 285.24 4yd 63.39 126.78 190. 17 253.56 316:95 380.34 6yd 95.03 190. 1 6 285.24 380.32 475.40 570.48 8yd 126.78 253.56 380.34 507.12 633.90 760.68 Whls - 6.00/mrh, Locks - 2.50 each/15.00 max, Gates - 2.50 each/IS.OO max Roll-orrs: 20 "" $130.00 30 = $140.00 40 = $155.00 plus dump $25.00 delivery NOTE: BEGINNING MARCH 1, 1998 AN ANNUAL C,P.I. ADJUSTMENT NOT TO EXCEED 2.5% WILL BE APPLIED TO THE COLLECTION DATE.