HomeMy WebLinkAbout2010 11 15 Public Hearing 501 Request Approval of Ordinance 2010-24 Extension of Solid Waste Franchise Agreement COMMISSION AGENDA
CONSENT
INFORMATIONAL
ITEM 501 PUBLIC HEARING X
REGULAR
MG' \ /DEPT / Y. —
November 15, 2010 ■_J■
Regular Meeting Authorization
REQUEST: Public Works Department Requesting the City Commission Approve
Ordinance 2010 -24 — Extension of the Solid Waste Franchise Agreement
SYNOPSIS: The purpose of this Board item is to 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 %.
111510_COMM_Public Hearing_501_Ordinance- 2010- 24_Solid_Waste_Renewal
November 15, 2010
Public Hearing Agenda Item 501
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.
Staff also conducted a survey of the cost and level of service of the surrounding
communities to verify the current rate is competitive. The attached survey confirms that
the residential monthly rate of $18.10 is competitive to the area.
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.
111510_COMM_Public_Hearing_501 _Ordinance- 2010- 24_Solid_Waste_Renewal
Public Hearing Agenda Item 501
November 15, 2010
Page 3
COMMUNICATION EFFORTS:
The notice of the 2 reading of the franchise agreement extension ordinance will
be noticed in the Orlando Sentinel.
RECOMMENDATION:
It is recommended that the City Commission hold a public hearing and move to
2nd 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
2. Solid Waste Cost/Service Comparison Annual Evaluation Report
111510_COMM_Public Hearing_501_Ordinance- 2010- 24_Solid_Waste_Renewal
ATTACHMENT NO. 1
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
City of Winter Springs
Ordinance 2010 -24
Page 1 of 3
Florida corporation. A copy of said Addendum is attached hereto as "Appendix A," is frilly
incorporated herein by this reference, and shall become effective on March 1, 2011.
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 day of , 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
City of Winter Springs
Ordinance 2010 -24
Page 2 of 3
First Reading: November 15, 2010
Second Reading:
Effective Date:
City of Winter Springs
Ordinance 2010 -24
Page 3 of 3
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
CPI1
"CPII" 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 'h percent in years when
the Contractor requests a CPI adjustment, the percentage amount over
2 'h 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 % 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
CPI1 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; sti il rain uu 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 $ . 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:
Addendum to Solid Waste Agreement
City of Winter Springs / Waste Pro of Florida, Inc.
Page 4 of 4
SOLID WASTE COST /SERVICE COMPARISON
Yard
Garbage Recycling Waste Containers
Cost (weekly) (weekly) (weekly) Special Pick -ups Special Events (toters) Recycling Bin(s) Dumpsters Provider
Altamonte Springs $19.25 2 1 1 $70.00 min & lx/yr. community pick -up for free packers; no charge no unlimited; free use of a selected hauler City of Altamonte Springs does their
over a 2 week span from city list own trash pick up
4x/yr.community clean up c &d; no curbside. use of a selected hauler Waste Pro (res) & Orlando Waste
Casselberry $18.42 2 1 1 White goods through WP O.W.P.C. no unlimited; free from city list Paper Company (comm)
provide 1 res: deals w/WM directly
Lake Mary $17.35 1 1 1 Unlimited special /bulk pick ups; free packers; no charge (toter) provide 1 (toter) & are required to use WM Waste Management
comm: req to use WM
all city events included in provide 1 2 rec. bin WP not required; can use
Longwood $19.11 2 1 1 Pick -up as needed; request made to WP; free Waste Pro
contract; no charge (toter) provided whomever
Open Commercial
2 x's /year and 2 x's /year appliances, yard waste Containers provided for provide 1 unlimited rec. (dumpster and roll -off)
Oviedo $20.21 1 1 1 capped at 8 CY every 8 weeks; free city sponsored events (toter) bins provided franchises. City has 6 Republic
Commercial franchisees
2x/yr. free anything additional based on what WP provides some city Res & Comm both are
Sanford $17.90 2 1 1 they have a fee is assessed sponsored events based no unlimited; free required to use WP Waste Pro
on contract
unlimited bulk & white goods when called in, use of a selected hauler Waste Pro - service areas 1 & 3
Seminole County (opt. 1) $16.58 2 1 1 but no more than 3 standard garbage N/A no unlimited; free from county list Veolia - service area 2
containers of c &d at a time; free
auto carts are provided for 1 rec. bin
2x/yr. free, $25.00 ea. additional pick -up, but provide 2 provided or they res: can use anyone
Winter Park $16.34 2 1 1 charge can go up depending on item(s) specific city events; extra Waste Pro
(toters) offer a rec. cart comm: only can use WP
events, extra charges for $17.80
Nothing is specified in the $4 new res.,
Winter Springs $18.10 2 1 1 unlimited special /bulk pick ups; free contract, but WP works provide 1 $6 replacement, Res & Comm both are Waste Pro
with the city based on the (toter) damaged required to use WP
needs of the city. replaced for free
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