3rd Amendment/1st Renewal 05/20/2009AMENDMENT AND I RENEWAL OF FRANCHISE AGREEMENT
(Solid Waste and Recycling Collection)
This Amendment and I" Renewal. of Franchise Agreement is made and entered into this
day of , 2009, between the BOARD OF COUNTY
COMMISSIONERS OF MO ROE COUNTY, FLORIDA, a political subdivision of the State of
Florida, hereafter "Franchisor," and WASTE MANAGEMENT, INC. OF FLORIDA, hereafter
" in order to amend and renew the Franchise Agreement between the parties dated
May 19, 2004, as amended on August 1.7, 2005, and January 28, 2009, (copies of which are
incorporated hereto by reference).
WHEREAS, the parties have agreed to collaborate to help increase Monroe County's
annual recycling rate to forty percent (40 %) by 2014, and
WHEREAS, the Franchisee has agreed to assist the County in capturing recycling
numbers from commercial businesses that haul out their own recyclables, and
WHEREAS, the Franchisee has agreed to annually purchase 18 gallon residential
recycling bins for their service area, and to increase the franchise fee paid by the Franchisee to
the Franchisor from. 3% to 5% to fund a countywide recycling program consisting of County
staff, public educational materials, brochures, and premiums, and
WHEREAS, the Franchisor has agreed to provide the Franchisee with a diesel fuel
surcharge adjustment on an annual in- arrears basis effective October 1, 2010, and every October
1 thereafter to reflect any changes in the cost of diesel fuel for the preceding year ending in
February, and
WHEREAS, the parties have determined that it is to their mutual benefit and interest to
amend and renew the Franchise Agreement for Solid Waste and Recycling collection;
NOW, THEREFORE, in consideration of the mutual promises and covenants set forth
herein and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:
1. Section 1 -- TERM, is hereby amended to read as follows:
"l. TERM:
The term of this Agreement shall be for the period beginning 12:01 AM October 1,
2009, and terminating 11:59 PM September 30, 2014, provided that the Franchisor
shall have the option to extend the contract, upon mutually agreeable terms and
conditions, for an additional five (5) year period, upon one hundred twenty (120)
days written notice to the Franchisee prior to the expiration of the current term of this
Agreement."
2. Section 2(PP) is hereby amended, to correct the Exhibit number listed for Special
Services, as follows:
Amendment & 1' Renewal of Franchise Agreement
"PP. Special Services shall mean any services requested or required by the
customer which are in addition to, or a change in, Residential Solid Waste Collection
Service, Residential Recycling Collection Service, Commercial Recycling Collection
Service, and Commercial Solid Waste Collection Service as set out or similar to
those listed in Exhibit V."
3. Section 4(A)(2) is hereby amended, to correct the Exhibit number listed for Special
Services, as follows:
"(2) Accessibility
All Residential Solid Waste to be collected shall be placed within six (6) feet of the
curb, paved surface of the roadway, closest accessible right -of -way, or other such
location agreed to by the Franchisee that will provide safe and efficient accessibility
to the Franchisee's collection crew and vehicle. Enclosures for garbage receptacles
shall be within six (6) feet of paved surface or right of way. Fixed or permanent
enclosures shall have a street side opening for the removal of the garbage receptacle.
Enclosures that do not have a street side opening shall be limited to thirty -six (36)
inches in height. For purposes of this Agreement, roadway or right -of -way means a
road owned and maintained by the County, or a road on private property for which
an easement has been granted to the public and such road is constructed and
maintained to County road standards. Where the resident of a Dwelling Unit is
physically disabled and unable to deliver Residential Solid Waste or vegetative waste
to curbside and this is certified by the Contract Administrator, or the residential
structure is located in such a manner as to provide non - accessibility to the
Franchisee's crew or vehicle, an alternative location may be arranged between the
customer and the Franchisee at no extra cost to the customer. In the event an
appropriate location cannot be agreed upon, the Contract Administrator shall mediate
the dispute and designate the location for pick -up. If the resident requests special
services, these services shall be billed directly to the customer by the Franchisee in
accordance with Exhibit V. Billing for these services shall be reported in a format
prescribed by the Contract Administrator. In the event that a special service request
is not listed in Exhibit V, charges for such services shall then be established through
negotiations between the Franchisee and the customer. In the event the customer and
the Franchisee cannot reach an agreement on the cost, the Contract Administrator
will determine the cost."
4. Section 5(G)(1) is hereby amended to read as follows:
"(1) Throughout the term of this agreement and any renewal period, the Franchisee will
purchase at its expense, and at residential customers' request, supply to residential
customers a sufficient number of 18 gallon Recycling Containers per year for use within
the Service Area (limited to two (2) recycling containers per Residential Unit).
Franchisee will also replace at its expense any Recycling Container damaged through the
fault or negligence of the Franchisee or its employees."
5. The first paragraph of Section 6(B) is hereby amended to read as follows:
"B. Solid Waste and Recycling Collection Rate Adjustments:
Amendment & l' Renewal of Franchise Agreement 2
For all Collection services, the charges shall be initially based on the rates
established in Exhibit II, and as subsequently adjusted pursuant to this
Agreement. The Franchisee shall receive an annual adjustment in the Residential
Solid Waste Collection Service, Commercial Recycling Collection Service,
Conunerciai Solid Waste Collection Service and Residential Recycling Collection
Service rates. The adjustment shall be made to the combined category of
Residential Solid Waste Collection Service and to Residential Recycling
Collection Service and, separately to the combined category of Commercial Solid
Waste Collection Service and Commercial Recycling Collection Service. At the
end of the first year of this Agreement the adjustment might be made in
accordance with the percentage change in the Consumer Price Index for all urban
consumers (CPI -U) for the most recent 12 months available, ending in February.
Effective October 1, 2009, contingent upon Board of County Commission
approval of the annual rate adjustment, the Franchisee will receive, in additional
to the annual CPI adjustment, an additional rate adjustment of $.98 per month per
Residential Unit, $.10 per cubic yard for Commercial Solid Waste Collection and
$.10 per cubic yard for Commercial Recycling Container Collection."
6. Section 6(E) is hereby amended to read as follows:
"E. Franchise Fee:
To compensate for the cost of administration, supervision, inspection, and to fund a
countywide recycling program, consisting of County staff (labor, benefit and
operating costs), public education materials, brochures, and premiums, rendered for
the effective performance of this Agreement, the Franchisee shall pay to the
Franchisor a fee of five percent (5 %) of all gross revenues charged, collected or
received arising out of any services or operations conducted in the Service Area.
Commercial solid waste disposal costs, commercial recycling collection costs,
commercial recycling processing costs, any revenue paid to the Franchisee as a result
of the diesel fuel surcharge adjustment per section 6(F), and any credit card
convenience fee received by the Franchisee from customers using credit cards, shall
be deducted from the gross revenue total prior to applying the 5% for calculation of
the franchise fee due to the Franchisor. Franchise fees shall be payable within forty -
five (45) days of the last day of each calendar quarter."
7. Section 6(F) is hereby added to read as follows:
"F. Diesel Fuel Surcharge:
The Franchisor shall, on a yearly basis, pay the Franchisee a diesel fuel surcharge
adjustment to reflect any change in the cost of diesel fuel as determined by reference
to the Energy Information Administration of the US Department of Energy
( "EIA/DOE ") website that reports average prices of diesel fuel for the "Lower
Atlantic" United States. The link is as follows:
http://tonto.eia.doe.gov/oog/info/Wohdio/diesel.asp, The Franchisee shall submit to
the Franchisor, no later than the 10 of the following month, a report listing the total
number of gallons and cost of diesel fuel purchased in the previous month and
Amendment & I" Renewal of Franchise Agreement
include copies (if' diesel fuel supplier invoices and individual service area truck
fueling tickets. The annual diesel fuel surcharge adjustment shall be effective
October 1, 2010 and every October 1 thereafter. After determining the average price
of diesel fuel from the aforesaid website ("ElA/DOE fuel cost ") for the immediately
preceding 12 month period ending in February, the corresponding fuel cost modifier
will be calculated pursuant to the following table, based on Franchisee's total diesel
fuel expenditures from March 1 to February 28/29 of each year. Note that for
adjustments not shown on the table, the calculation shall be extrapolated from those
set forth:
TABLE FOR FUEL SURCHARGE CALCULATION
Average
Price/Gal10D
Percent
of
Surcharge
': ; :.
Average Price/Gallon
Percent of
Surcharge
$1.045
To
$1.135
- 10.00%
$2.455
1 to
$2.554
3.00%
$1.136
To
$1.226
- 9.00%
$2.555
to
$2.654
4.00%
$1.227
To
$1.317
- 8.00%
$2.655
to
$2.754
5.00%
$1.318
To
$1.408
-7.00%
`.
$2.755
to
$2.854
6.00%
$1.409
To
$1.499
- 6.00%
:.
$2.855
to
$2.954
7.00%
$1.500
To
$1.590
-5.00%
$2.955
to
$3.054
8.00%
$1.591
To
$1.681
-4.00%
$3.055
to
$3.154
9.00%
$1.682
To
1
$1.772
- 3.00%
$3.155
to
$3.254
10.00%
$1.773
To
$1.863
-2.00%
$3.255
to
$3.354
11.00%
$1.864
To
$1'.954
- 1.00%
::
$3.355
to
$3.454
12.00%
$1.955
To
$2.054.
0.00% ..
$3.455
to
$3.554
13.00%
$2;055::::.
To
$2.154'
0.00% ; :
' ":;';
$3.555
to
$3.654
14.00%
$2;155.::
To
:: $2.254
0:00%
$3.655
to
$3.754
15.00%
$2.255
To
$2.354
1.00%
$3.755
to
$3.854
16.00%
$2.355
To
$2.454
2.00%
$3.855
to
$3.954
17.00%
8. Section 6 (G) is hereby added to read as follows:
"G. Convenience Fee:
In addition to the Special Service Rates charged pursuant to Article 8 and Exhibit V.
Franchisee may include a convenience fee charge on customers using a credit card to
pay special service charges. The convenience fee shall be a "pass through" fee and
will not exceed the fee charged by the customer's credit card company to the
Franchisee for the use and processing of the charge."
9. Section 8 is hereby amended to correct the Exhibit number listed for Special Services,
as follows:
"8. SPECIAL SERVICES
Amendment & I' Renewal of Franchise Agreement 4
Rates charged for Special Services may not exceed the special services rates as listed
in Exhibit V, and as subsequently adjusted pursuant to this Agreement. The
Franchisee shall receive an annual adjustment to the Special Services Rates in
accordance with the percentage change in the Consumer Price Index for all urban
consumers (CPI -U) for the most recent 12 months available, ending in February. In
the event the requested special service is not included within Exhibit V, the
Franchisee may negotiate with the customer for the rate. Upon failure of the parties
to reach an agreement on the rate, the Contract Administrator shall establish the rate.
The Franchisee shall be responsible for billing and collection of payment for all
Special Services."
10. The third paragraph of Exhibit III titled "Special Services" is hereby amended to read
as follows:
"SPECIAL SERVICES
If a customer requests, the Franchisee may provide special services for the collection
of Commercial Solid Waste such as rolling Containers out of storage areas, opening
doors or gates for access, or other such special services. However, such special
services may be provided by the customer, through its own or other personnel. If the
Franchisee provides special services, such charges must be separately stated under
the "RATES FOR SERVICES" Disclosure Statement. The maximum for these
special service rates are fixed by the Board. A copy of these rates can be obtained
fiom the Franchisee or the Contract Administrator. A convenience fee unposed
pursuant to Article 6(G) may be included in the cost of the special service."
11. The second page of Exhibit III is hereby amended to read as follows:
"RATES FOR SERVICES DISCLOSURE STATEMENT
Franchise Name:
Customer Name:
Customer Address:
Customer Phone #:
Level of Service:
Itern
Cost of Collection of Solid Waste
Cost of Disposal of Solid Waste
Cost of Container Maintenance for Solid Waste
Itemized Charges for Special Services
Convenience Fee
Total
Date of Agreement:
Service Date:
Begin:
End:
Monthly Cost
THESE SERVICES ARE PROVIDED UNDER A FRANCHISE AGREEMENT
REGULATED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE
COUNTY. SHOULD YOU HAVE ANY QUESTIONS RELATING TO THESE RATES,
Amendment & 1" Renewal of Franchise Agreement
PLEASE CALL THE SOLID WASTE MANAGEMENT DEPARTMENT (305) 292-
4432."
12. Exhibit V Special Services is hereby amended to read as follows:
"EXHIBIT V
SPECIAL SERVICES
RATES DETERMINE BY THE FRANCHISOR
Rolling Out Container (and returning
$3.44
it to original location
Back Door Service (Residential
Negotiable
Curbside Only)*
Opening and closing) Doors or Gates
$1.15
Locks for Containers
$11.46 (one time)
Charge for Replacement based on
Cost + 10%
Unlocking Containers
$1.55
Supplying (and retrofitting) locking
$68.77
Mechanism on container **
Adding wheels to or changing wheels
No Charge
on 1, 2, and 3 yard Containers onl
Moving Container Location (if
$34.39
Feasible ) Per Customer Request
Adding lids to or changing lids on
No Charge
Containers
Set up and Return Fees
$28.65
Credit Card Convenience Fee
Not to exceed fee charged
by customer's credit card company
*There will be no charge for those residents medically unable to bring solid waste or
recyclables to curbside as delineated in Section 4. Back door service to all other customers
may be offered by the Franchisee.
Amendment & 1 St Renewal of Franchise Agreement 6
4.4. Determination of necessity of locking mechanisms is based on customer requirements."
13. In all other respects, the original agreement between the parties dated May 19, 2004, as
amerkled can August 17, 2005, and January 28, 2009, remains iii full force and effect.
4 INVITNESS WHEREOF, the parties have hereunto set their hands and seal, the day and
year fi, rs`ttt above.
(Seal) BOARD OF COUNTY COMMISIONERS
Attest: DANNY L. KOLHAGE, CLERK OF MONK E COUNTY, FLORIDA
( `7
Y By. J
eputy Clerk Mayor /Chaimian
WASTE MANAGEMENT, INC. OF FLORIDA
0"QL� ( t-a-r Witness
By:
Witness Presi or on with Authority to sign
Title:
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Amendment & I' Renewal of Franchise Agreement 7