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2014 10 13 Consent 302 Waste Pro Four Year ExtensionCOMMISSION AGENDA ITEM 302 REQUEST: Informational Consent X Public Hearings Regular October 13, 2014 KS KL Regular Meeting City Manager Department Public Works Department Requesting that the City Commission Approve a Four Year Extension of the Solid Waste Agreement with Waste Pro as Provided for in the Addendum to the Solid Waste Agreement. SYNOPSIS: The purpose of this Commission item is to request the Waste Pro Solid Waste Franchise Agreement be Extended Four Years through February 28, 2019 with No Change in the Current Level of Service and No Increase in the $18.10 monthly residential solid waste rate. CONSIDERATIONS: This agenda item is needed to provide for Solid Waste services to the residents and business's in Winter Springs. The current agreement expires on February 28, 2015 and Waste Pro has provide written notice requesting renewal for four years in accordance with the agreement. 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. On December 13, 2010, the City Commission approved Ordinance 2010 -24 which included an Addendum to the Solid Waste Agreement, a copy of which is attached. The $18.10 monthly residential rate has remained unchanged since 2006. The Addendum was for a four year period through February 28, 2015. Included in Section 2.2 of the addendum was a provision for a four year extension provided both parties agree and written notice was provided 90 days prior to the Consent 302 PAGE 1 OF 2 - October 13, 2014 expiration (December 1, 2014). Staff received the Waste Pro extension request on September 19, 2014, a copy of which is also attached. Staff has projected the impact of keeping the $18.10 rate unchanged for four more years and we are comfortable that the Solid Waste Fund remains sustainable through the extension period. Waste Pro has significantly exceeded the 90% customer service satisfaction survey performance standards in all eight years of the agreement. Previous results from 2014 to 2007 were 94.5 %, 95.2 %, 97.1 %, 96.8 %, 94.2 %, 97.0 %, 93.4% and 93.2 %. Staff expects this high level of customer satisfaction to continue through the extension period if approved. Additionally, there are several ongoing topics of discussion with WastePro that staff expects to bring back to the Commission for future consideration. These include; improving new construction rolloff franchise participation, transitioning solid waste vehicles to natural gas, and toters approaching the end of their life cycle. The target to bring these items forward for discussion is 2nd Quarter 2015. FISCAL IMPACT: The current residential solid waste rate of $18.10 per month remains unchanged since 2006 and is projected to stay the same through the extension period. COMMUNICATION EFFORTS: This Agenda Item has been electronically forwarded to the Mayor and City Commission, City Manager, City Attorney /Staff, and is available on the City's Website, LaserFiche, and the City's Server. Additionally, portions of this Agenda Item are typed verbatim on the respective Meeting Agenda which has also been electronically forwarded to the individuals noted above, and which is also available on the City's Website, LaserFiche, and the City's Server; has been sent to applicable City Staff, Media/Press Representatives who have requested Agendas /Agenda Item information, Homeowner's Associations/Representatives on file with the City, and all individuals who have requested such information. This information has also been 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, this information is also available to any individual requestors. City Staff is always willing to discuss this Agenda Item or any Agenda Item with any interested individuals. RECOMMENDATION: Staff Recommends that the City Commission Approve a Four Year Extension of the Solid Waste Agreement with Waste Pro of Florida, Inc. as Provided for in Section 2.2 of the Addendum to the Solid Waste Agreement and authorize the City Manager and City Attorney to prepare and execute any and all applicable documents. ATTACHMENTS: 1. Waste Pro Renewal Request Letter 2. Ordinance 2010 -24 Addendum to the Solid Waste Agreement Consent 302 PAGE 2 OF 2 - October 13, 2014 Attachment No. 1 WASTE PRO: Caring For Our Corpru0 f;9S September 19, 2014 Mr. Kevin Smith City Manager City of Winter Springs 1126 E. SR 434. Winter Springs, FL 32708 Re: Winter Springs Solid Waste Agreement Dear Mr. Smith: Pursuant to the terms of Ordinance 2010 -24 Appendix A Item 2.2, Waste Pro would like to officially request an extension the current solid waste collection agreement. Please let me know when we may discuss this matter in detail. Sincer ly, Q.-Z 'rim plan Regional Vice President Waste Pro 3705 Saint Johns Pkwy • Sanford, FL 32771 -6369 T 407 - 774 -0800 F 407 - 786 -0800 www.wasteprousaxom Attachment No. 2 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 Pagel 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 ofprior 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. CHA FS LACE *'Ar!�� ATTEST: -1 AN 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 r' ADDENDUM TO SOLID WASTE AGREEMENT APPENDIX A THIS ADDENDUM TO SOLID WASTE AGREEMENT ( "Addendum ") is made and entered into this 3+ 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 "). WITNESSETII: 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. Pagel of 4 • r' 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 - CPI 1) +l x Current Rate CPII 11C13I1" The published CPI for the month of October of the preceding year. "CPI2" The published CPT 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 '/2 percent shall be carried. forward to be applied in subsequent years ( "Carried Forward Can. The Carried Forward CPI shall be applied in subsequent ems 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 -wear term (February 28, 20151 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 CPI I 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; striketbroagh 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. Notwithstandin ,q, Contractor shall have the right to compete in the market place :for residential customers utilizinq 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 $ /,.z 3 -)So . 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: r:�4j t1 r By: And renzo- Luaces, City Clerk arles L cy, ayor Date: Addendum to Solid Waste Agreement City of Winter Springs / Waste Pro of Florida, Inc. Page 3 of 4 Date: t;,', 3 I 1 o Addendum to Solid Waste Agreement City of Winter Springs / Waste Pro of Florida, Inc. Page 4 of 4