Loading...
HomeMy WebLinkAbout2010 12 13 Public Hearings 500 Second Reading Ordinance 2010-24 Extension Of Solid Waste Franchise Agreement COMMISSION AGENDA CONSENT INFORMATIONAL ITEM 500 PUBLIC HEARING X REGULAR December 13, 2010 MGR /DEPT 4 Regular Meeting A thorization REQUEST: Public Works Department Requesting the City Commission Approve on 2 °d Reading Ordinance 2010 -24 — Extension of the Solid Waste Franchise Agreement SYNOPSIS: The purpose of this Board item is to conduct a 2 public hearing and approve Ordinance 2010 -24 which provides for an extension of and addendum to the solid waste franchise agreement with Waste Pro of Florida, Inc. though February 28, 2015. CONSIDERATIONS: The City Commission adopted Ordinance 2006 -01 on February 13, 2006 which entered into a franchise agreement with Waste Pro of Florida, Inc. The effective date of the agreement was March 1, 2006 with an expiration date of February 28, 2011. Paragraph 23.3 of the Franchise Agreement provides for a four year renewal if both parties agree. As previously discussed during the budget workshops, the renewal of the franchise agreement is being brought forward based on the performance of Waste Pro as a service provider and the ability to keep the current monthly residential $18.10 rate and LOS unchanged for an additional four years. This addendum incorporates the renewal along with some minor changes to the franchise agreement which are; 1. Renewal of Term — provides for an additional four year extension in 2015 if desired by both parties. 2. Consumer Price Index Adjustment — Allows for a carry forward of CPI's that exceed 2.5% through the extension period. However, the maximum CPI any year will be capped at 2.5 %. 121310_COMM_Public_Hea ring_500_2" Reading_ Ord i nance- 2010- 24_Solid_W aste_Renewal December 13, 2010 Public Hearing Agenda Item 500 Page 2 3. Roll off Containers — Currently, Waste Pro has the exclusive right for residential and commercial roll offs. This addendum provides that Waste Pro would forego the exclusive right to residential roll offs which will address some concerns raised by homeowners performing home improvement projects. 4. Franchise Renewal Costs - - The Franchise Agreement provides for Waste Pro to pay the City franchise renewal costs up to $4,000. Waste Pro's performance is measured annually through a customer service survey that the City contract's with UCF to perform. The results are summarized below; 2007 2008 2009 2010 Customer satisfaction rating 93.2% 93.4% 97.0% 94.2% This high level of customer satisfaction correlates to the drop in complaints received at the PW office since Waste Pro began service in 2006. Waste Pro would continue to receive the annual performance bonus of $15,000 throughout the extension period for satisfaction ratings that exceed 90 %. The Finance and Administrative Services Director has done a pro forma assuming the maximum CPI of 2.5% through the extension period and is comfortable with maintaining the current monthly residential rate of $18.10 for the next four years with only a slight reduction in reserves of the Solid Waste Fund. The CPI adjustment in March 2011 will be 1.17 %. Calc. Actual Effective CPI Index CPI% CPI Rate Date Oct 2011 $12.88 3/1/2011 Oct 2010 218.711 1.17% 1.17% $12.73 3/1/2010 Oct 2009 216.177 -0.18% -0.18% $12.75 3/1/2009 Oct 2008 216.573 3.66% 2.50% $12.44 3/1/2008 Oct 2007 208.936 3.54% 2.50% $12.14 3/1/2007 Oct 2006 201.8 1.31% 1.31% $11.98 Oct 2005 199.2 121310_C O M M_Public_Hearing_500_2" Rea d i n g_O rd i n a n ce-2 010 -24_S o f id_W a ste_Re news I Public Hearing Agenda Item 500 December 13, 2010 Page 3 FISCAL IMPACT: The Franchise Agreement extension maintains the current monthly residential rate of $18.10 for an additional four years (nine years total with no increase) with only a slight decrease to the Solid Waste Fund reserves consistent with the pro forma. Shifting the residential roll offs to an open market may provide cost reductions to residents undertaking home improvement projects. COMMUNICATION EFFORTS: This Agenda Item has been forwarded to the Mayor and City Commission; City Manager; City Attorney /Staff; placed in Press Packets; placed in the City Hall (Lobby) City Commission Meeting binder; and is available on the City's Website, LaserFiche, and the City's Server. Additionally, information related to this Agenda Item has been sent to media/press representatives who have requested Agendas/Agenda Item information, all Homeowner's Associations on file with the City, all individuals who have requested Agendas/Agenda Item information, Department Directors; and also posted outside City Hall; posted inside City Hall with additional copies available for the general public; and posted at five (5) different locations around the City. Furthermore, the following has also been completed to further communicate the information in this Agenda Item: 1) The notice of the 2nd reading of Ordinance 2010 -24 was duly published in the Orlando Sentinel on December 2, 2010. RECOMMENDATION: It is recommended that the City Commission hold a public hearing and approve on 2 reading Ordinance 2010 -24 which adopts an addendum to the Solid Waste Franchise Agreement with Waste Pro of Florida, Inc., extends the term for four more years, and makes other miscellaneous amendments. ATTACHMENTS: 1. Ordinance 2010 -24 121310_COMM_P ublic_Hea ring_500_2" Reading_ Ord inance- 2010- 24_Solid_W aste_Renewal ORDINANCE NO. 2010 -24 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA, ADOPTING AN ADDENDUM TO THE CITY'S SOLID WASTE FRANCHISE AGREEMENT WITH WASTE PRO OF FLORIDA, INC.; EXTENDING THE TERM OF THE FRANCHISE FOR FOUR (4) YEARS EFFECTIVE MARCH 1, 2011 AND MAKING OTHER MISCELLANEOUS AMENDMENTS; PROVIDING FOR THE REPEAL PRIOR INCONSISTENT ORDINANCES AND RESOLUTIONS, SEVERABILITY, AND AN EFFECTIVE DATE. WHEREAS, the City is granted the authority, under Section 2(b), Article VIII, of the State Constitution, to exercise any power for municipal purposes, except when expressly prohibited by law; and WHEREAS, Contractor and City previously entered into that certain Solid Waste Agreement, effective March 1, 2006 ( "Agreement "), adopted by Ordinance No. 2006 -01; and WHEREAS, the parties mutually desire to exercise their option under paragraph 23.3 of the Agreement to extend the term of the Agreement for an additional four (4) years; and WHEREAS, the parties further desire to modify the Agreement with regard to various additional issues; and WHEREAS, the City Commission is required by section 4.14(4) of the City Charter to adopt an ordinance granting, renewing or extending a franchise; and WHEREAS, the City Commission of the City of Winter Springs, Florida, hereby finds this Ordinance to be in the best interests of the public health, safety, and welfare of the citizens of Winter Springs. NOW, THEREFORE, THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS HEREBY ORDAINS, AS FOLLOWS: Section 1. Recitals. The foregoing recitals are hereby incorporated herein by this reference. Section 2. Adoption of Addendum to Solid Waste AgreementThe City Commission of the City of Winter Springs, Florida hereby approves and adopts the Addendum to Solid Waste Agreement, by and between the City of Winter Springs, Florida and Waste Pro of Florida, Inc., a Florida corporation. A copy of said Addendum is attached hereto as "Appendix A," is fully incorporated herein by this reference, and shall become effective on March 1, 201 1. City of Winter Springs Ordinance 2010 -24 Page 1 of 2 Section 3. Repeal of Prior Inconsistent Ordinances and Resolutions. All other prior inconsistent ordinances and resolutions adopted by the City Commission, or parts of prior ordinances and resolutions in conflict herewith, are hereby repealed to the extent of the conflict. Section 4. Not Incorporated Into Code. This ordinance shallnot be incorporated into the Winter Springs City Code. Section 5. Severability. If any section, subsection, sentence, clause, phrase, word or provision of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, whether for substantive, procedural, or any other reason, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions of this Ordinance. Section 6. Effective Date. This Ordinance shall become effective immediately upon adoption by the City Commission of the City of Winter Springs, Florida, and pursuant to City Charter. ADOPTED by the City Commission of the City of Winter Springs, Florida, in a regular meeting assembled on the 13th day of December, 2010. CHARLES LACEY, Mayor ATTEST: ANDREA LORENZO - LUACES, City Clerk Approved as to legal form and sufficiency for the City of Winter Springs only: ANTHONY A. GARGANESE, City Attorney First Reading: November 15, 2010 Second Reading: December 13, 2010 Effective Date: December 13, 2010 City of Winter Springs Ordinance 2010 -24 Page 2 of 2 ADDENDUM TO SOLID WASTE AGREEMENT THIS ADDENDUM TO SOLID WASTE AGREEMENT ( "Addendum ") is made and entered into this day of , 2010, by and between the CITY OF WINTER SPRINGS, FLORIDA, a Florida Municipal Corporation, located at 1126 E. State Road 434, Winter Springs, Florida 32708 ( "City") and WASTE PRO OF FLORIDA, INC., a Florida Corporation, located at 2101 West State Road 434, Suite 301, Longwood, Florida 32779 ( "Contractor "). WITNESSETH: WHEREAS, Contractor and City previously entered into that certain Solid Waste Agreement, effective March 1, 2006 ( "Agreement "), adopted by Ordinance No. 2006 -01; and WHEREAS, the parties mutually desire to exercise their option under paragraph 23.3 of the Agreement to extend the term of the Agreement for an additional four (4) years; and WHEREAS, the parties further desire to modify the Agreement with regard to various additional issues; and NOW THEREFORE, in consideration of the mutual covenants, agreements, and consideration contained herein, the City and Contractor agree as hereinafter set forth: 1.0 Recitals. The foregoing recitals are true and accurate and are incorporated herein by this reference. 2.0 Renewal of Term. 2.1 Pursuant to paragraph 23.3 of the Agreement, the City and Contractor hereby agree to renew the term of the Agreement for four (4) years, commencing on March 1, 2011 and terminating on February 28, 2015. 2.2 Upon mutual agreement, the term of the Agreement may be further extended by the City for an additional four (4) year term. If the City elects to renew this Agreement, the City shall provide written notice of the renewal to the Contractor no later than ninety (90) days prior to the expiration of the term of the Agreement. 3.0 Consumer Price Index Adjustment. Paragraph 5.2 of the Agreement is hereby amended as follows (underlined type indicates additional language): Addendum to Solid Waste Agreement City of Winter Springs / Waste Pro of Florida, Inc. Page 1 of 4 Consumer Price Index Adjustment. The rates in paragraph 5.1 shall remain unchanged during the term of this Agreement unless the Contractor requests in writing an annual CPI adjustment or petitions the City for a rate adjustment in accordance paragraphs 5.6 or 5.8. If a CPI rate adjustment is requested, the Contractor shall receive said adjustment based on the following mathematical formula: New Rate = [CPI2 - CPI1] +1 x Current Rate CPI 1 "CP11" The published CPI for the month of October of the preceding year. "CPI2" The published CPI for the month of October for the year in which the rate is being adjusted. Adjustments to the prices made in accordance with this subsection are intended to reflect changes in the purchasing power of a given amount of money expressed in dollars. Under no circumstances shall the CPI adjustment exceed two and one -half (2 '/) percent in any given year. However, in the event that the CPI exceeds 2 '/ percent in years when the Contractor requests a CPI adjustment, the percentage amount over 2'/ percent shall be carried forward to be applied in subsequent years ("Carried Forward CPI "). The Carried Forward CPI shall be applied in subsequent years to bring the CPI adjustment up to 2 '/z percent in years when the Contractor requests a CPI adjustment or the City requests a reduction pursuant to paragraph 5.8. Any Carried Forward CPI remaining at the expiration of the current four -year term (February 28, 2015) shall be forfeited by Contractor. Moreover, the CPI adjustment shall not be applied to Disposal Costs. Disposal Costs shall be one hundred percent pass through cost and shall be adjusted accordingly only upon changes in land fill tipping fees. If CPII and CPI2 are not expressed in relation to the same base period or if a material change is made in the method of establishing CPI, the City and the Contractor shall make an appropriate statistical adjustment or conversion. If the CPI is discontinued, the City and the Contractor shall mutually select another index published by the United States Government or by a reputable publisher of financial and economic indices. Addendum to Solid Waste Agreement City of Winter Springs / Waste Pro of Florida, Inc. Page 2 of 4 IC I 4.0 Exclusive Right to Provide Rolloff Containers. Paragraph 4.7A. of the Agreement is hereby amended as follows (underlined type indicates additional language; sli ik thi uush type indicates deleted language): Exclusive Right. Contractor shall provide and have the exclusive right to provide collection and disposal services for construction and demolition debris utilizing rolloff containers for non - residential customers, as that the term "rolloff container" is defined in paragraph 2.36 of this Agreement, or other appropriate containers. Notwithstanding, Contractor shall have the right to compete in the market place for residential customers utilizing rolloff containers. 5.0 Franchise Costs. Pursuant to paragraph 29.0 of the Agreement, the contractor agrees that the renewal franchise costs incurred by the City are $ 1,237.50 . Said costs shall be paid to the City within thirty (30) days of this Addendum being executed by the parties. 6.0 Other Provisions. All other provisions of the Agreement not amended hereunder shall remain in full force and effect. IN WITNESS WHEREOF, the parties cause this Addendum to be executed and attested to by their respective authorized officials. ATTEST: CITY OF WINTER SPRINGS, FLORIDA: By: Andrea Lorenzo-Luaces, City Clerk Charles Lacey, Mayor Date: Addendum to Solid Waste Agreement City of Winter Springs / Waste Pro of Florida, Inc. Page 3 of 4 CORPORATE SEAL: CONTRACTOR: WASTE PRO OF FLORIDA, INC. WITNESS: By: Print Name /Title: Print Name/ Title: Date: A ddendum to Solid Waste Agreement City of Winter Springs / Waste Pro of Florida. Inc. Page 4 of 4 ORDINANCE NO. 2010 -24 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA, ADOPTING AN ADDENDUM TO THE CITY'S SOLID WASTE FRANCHISE AGREEMENT WITH WASTE PRO OF FLORIDA, INC.; EXTENDING THE TERM OF THE FRANCHISE FOR FOUR (4) YEARS EFFECTIVE MARCH 1, 2011 AND MAKING OTHER MISCELLANEOUS AMENDMENTS; PROVIDING FOR THE REPEAL PRIOR INCONSISTENT ORDINANCES AND RESOLUTIONS, SEVERABILITY, AND AN EFFECTIVE DATE. WHEREAS, the City is granted the authority, under Section 2(b), Article VIII, of the State Constitution, to exercise any power for municipal purposes, except when expressly prohibited by law; and WHEREAS, Contractor and City previously entered into that certain Solid Waste Agreement, effective March 1, 2006 ( "Agreement "), adopted by Ordinance No. 2006 -01; and WHEREAS, the parties mutually desire to exercise their option under paragraph 23.3 of the Agreement to extend the term of the Agreement for an additional four (4) years; and WHEREAS, the parties further desire to modify the Agreement with regard to various additional issues; and WHEREAS, the City Commission is required by section 4.14(4) of the City Charter to adopt an ordinance granting, renewing or extending a franchise; and WHEREAS, the City Commission of the City of Winter Springs, Florida, hereby finds this Ordinance to be in the best interests of the public health, safety, and welfare of the citizens of Winter Springs. • NOW, THEREFORE, THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS HEREBY ORDAINS, AS FOLLOWS: Section 1. Recitals. The foregoing recitals are hereby incorporated herein by this reference. Section 2. Adoption of Addendum to Solid Waste Agreement. The City Commission of the City of Winter Springs, Florida hereby approves and adopts the Addendum to Solid Waste Agreement, by and between the City of Winter Springs, Florida and Waste Pro of Florida, Inc., a Florida corporation. A copy of said Addendum is attached hereto as "Appendix A," is fully incorporated herein by this reference, and shall become effective on March 1, 2011. City of Winter Springs Ordinance 2010 -24 Page 1 of 2 Section 3. Repeal of Prior Inconsistent Ordinances and Resolutions. All other prior inconsistent ordinances and resolutions adopted by the City Commission, or parts of prior ordinances and resolutions in conflict herewith, are hereby repealed to the extent of the conflict. Section 4. Not Incorporated Into Code. This ordinance shall not be incorporated into the Winter Springs City Code. Section 5. Severability. If any section, subsection, sentence, clause, phrase, word or provision of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, whether for substantive, procedural, or any other reason, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions of this Ordinance. Section 6. Effective Date. This Ordinance shall become effective immediately upon adoption by the City Commission of the City of Winter Springs, Florida, and pursuant to City Charter. ADOPTED by the City Commission of the City of Winter Springs, Florida, in a regular meeting assembled on the 13th day of December, 2010. • 1 _ C S LACE s ATTEST: Ar LORENZO- LUACES, City Clerk k Approved as to legal form and sufficiency for the City of Winter Springs only: ANTHONY A. GARGANESE, City Attorney First Reading: November 15, 2010 Second Reading: December 13, 2010 Effective Date: December 13, 2010 City of Winter Springs Ordinance 2010 -24 Page 2 of 2 ADDENDUM TO SOLID WASTE AGREEMENT THIS ADDENDUM TO SOLID WASTE AGREEMENT ( "Addendum ") is made and entered into this day of , 2010, by and between the CITY OF WINTER SPRINGS, FLORIDA, a Florida Municipal Corporation, located at 1126 E. State Road 434, Winter Springs, Florida 32708 ( "City ") and WASTE PRO OF FLORIDA, INC., a Florida Corporation, located at 2101 West State Road 434, Suite 301, Longwood, Florida 32779 ( "Contractor "). WITNESSETH: WHEREAS, Contractor and City previously entered into that certain Solid Waste Agreement, effective March 1, 2006 ( "Agreement"), adopted by Ordinance No. 2006 -01; and WHEREAS, the parties mutually desire to exercise their option under paragraph 23.3 of the Agreement to extend the term of the Agreement for an additional four (4) years; and WHEREAS, the parties further desire to modify the Agreement with regard to various additional issues; and NOW THEREFORE, in consideration of the mutual covenants, agreements, and consideration contained herein, the City and Contractor agree as hereinafter set forth: 1.0 Recitals. The foregoing recitals are true and accurate and are incorporated herein by this reference. 2.0 Renewal of Term. 2.1 Pursuant to paragraph 23.3 of the Agreement, the City and Contractor hereby agree to renew the term of the Agreement for four (4) years, commencing on March 1, 2011 and terminating on February 28, 2015. 2.2 Upon mutual agreement, the term of the Agreement may be further extended by the City for an additional four (4) year term. If the City elects to renew this Agreement, the City shall provide written notice of the renewal to the Contractor no later than ninety (90) days prior to the expiration of the term of the Agreement. 3.0 Consumer Price Index Adjustment. Paragraph 5.2 of the Agreement is hereby amended as follows (underlined type indicates additional language): Addendum to Solid Waste Agreement City of Winter Springs / Waste Pro of Florida, Inc. Page 1 of 4 Consumer Price Index Adjustment. The rates in paragraph 5.1 shall remain unchanged during the term of this Agreement unless the Contractor requests in writing an annual CPI adjustment or petitions the City for a rate adjustment in accordance paragraphs 5.6 or 5.8. If a CPI rate adjustment is requested, the Contractor shall receive said adjustment based on the following mathematical formula: New Rate = [CPI2 - CPI1] +1 x Current Rate CPI' "CPIl " The published CPI for the month of October of the preceding year. "CPI2" The published CPI for the month of October for the year in which the rate is being adjusted. Adjustments to the prices made in accordance with this subsection are intended to reflect changes in the purchasing power of a given amount of money expressed in dollars. Under no circumstances shall the CPI adjustment exceed two and one -half (2 %2) percent in any given year. However, in the event that the CPI exceeds 2 1/2 percent in years when the Contractor requests a CPI adjustment, the percentage amount over 2 1/2 percent shall be carried forward to be applied in subsequent years ( "Carried Forward CPI"). The Carried Forward CPI shall be applied in subsequent years to bring the CPI adjustment up to 2 1/2 percent in years when the Contractor requests a CPI adjustment or the City requests a reduction pursuant to paragraph 5.8. Any Carried Forward CPI remaining at the expiration of the current four -year term (February 28, 2015) shall be forfeited by Contractor. Moreover, the CPI adjustment shall not be applied to Disposal Costs. Disposal Costs shall be one hundred percent pass through cost and shall be adjusted accordingly only upon changes in land fill tipping fees. If CPII and CPI2 are not expressed in relation to the same base period or if a material change is made in the method of establishing CPI, the City and the Contractor shall make an appropriate statistical adjustment or conversion. If the CPI is discontinued, the City and the Contractor shall mutually select another index published by the United States Government or by a reputable publisher of financial and economic indices. Addendum to Solid Waste Agreement City of Winter Springs / Waste Pro of Florida, Inc. Page 2 of 4 4.0 Exclusive Right to Provide Rolloff Containers. Paragraph 4.7A. of the Agreement is hereby amended as follows (underlined type indicates additional language; strikethrotagh type indicates deleted language): Exclusive Right. Contractor shall provide and have the exclusive right to provide collection and disposal services for construction and demolition debris utilizing rolloff containers for non - residential customers, as that the term "rolloff container" is defined in paragraph 2.36 of this Agreement, or other appropriate containers. Notwithstanding, Contractor shall have the right to compete in the market place for residential customers utilizing rolloff containers. 5.0 Franchise Costs. Pursuant to paragraph 29.0 of the Agreement, the contractor agrees that the renewal franchise costs incurred by the City are $ 1,237.50 . Said costs shall be paid to the City within thirty (30) days of this Addendum being executed by the parties. 6.0 Other Provisions. All other provisions of the Agreement not amended hereunder shall remain in full force and effect. IN WITNESS WHEREOF, the parties cause this Addendum to be executed and attested to by their respective authorized officials. ATTEST: CITY OF WINTER SPRINGS, FLORIDA: 1 � By: Anx��nzo- Luaces, City Clerk a rles L cey, ayor Date: Ai /� 40.lG Addendum to Solid Waste Agreement City of Winter Springs / Waste Pro of Florida, Inc. Page 3 of 4 r ) CORPORATE SEAL I • CONTRACTOR: WASTE PRO OF FLORIDA, INC. I� SS: By Ofr U 7 4J( . f rintName/Title: Qckei, kip. jpC,A Print Name/Title: T, P' 1)(71. Q4p Date: t y l f 3) 10 Addendum to Solid Waste Agreement City of Winter Springs / Waste Pro of Florida, Inc. Page 4 of 4