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12/15/1987 AgreementFRANCHISE AGREEMENT THIS FRANCHISE AGREEMENT is made and entered into this 15th day of December 1987, by and between the Board of County Commissioners of the Monroe County Municipal Service District, hereinafter referred to as the 'Board' or 'MSD' and Baltuff Disposal Service, Inc. hereinafter referred to as the 'Franchisee' or the 'Collector' or the 'Contractor'; WITNESSETH: This Franchise Agreement is entered into in two duplicate originals. WHEREAS, the Board is desirous of having all solid waste in the unincorporated limits of Monroe County, and in those Muni- cipalities which, by Ordinance, have joined the Municipal Service District, regularly collected and properly disposed of; and WHEREAS,..the parties hereto desire to enter into an agreement setting forth the terms and conditions of said fran- chise; NOW, THEREFORE, for and in consideration of the premises and undertakings herein set forth, the Board of County Commissioners of the Monroe County Municipal Service District and the Collector each agree with the other as follows: 1. Definitions: a. "Bundle" means a package of solid waste, excluding garbage, weighing not more than fifty (50) pounds and not exceeding four (4) feet in its longest dimension, securely tied with cord or rope of sufficient strength to permit lifting and carrying of the full weight thereof without spillage or leakage and placed for collection immediately adjacent to a standard container. b. "Commercial collection service" shall mean all non- residential, commercial, and industrial establishments. C. "Container" shall mean and include any detachable metal container designed or intended to be mechanically dumped into a loader/packer type of garbage truck used by the Contractor. d. "Disposal facility" shall mean an authorized facility, onerated by the MSD, at which disposal of solid waste occurs. e. "Garbage" means all kitchen and table food waste, animal or vegetative waste that is attendant with or results from the storage, preparation, cooking or handling of food materials. f. "Garbage can" shall mean and include anv light gauge steel, plastic, or galvanized receptacle, closed at one end and open at the other, furnished with a top or lid and two (2) handles and of not more than thirty-five (35) gallons capacity. g. "Hazardous waste' shall mean materials or combinations of materials which require special management techniques because of their acute or chronic effect on air and. waste Quality, on fish, wildlife, or other biota, and on the health and welfare of the public. These materials may include, but are not limited to, volatile, chemical, biological, explosive, flammable, radio -active, and toxic materials. h. "Horticultural trash" shall mean a solid waste that is an accumulation of lam, grass, or shrubbery cuttings or clippings and dry leaf rakings, palm fronds, small tree branches (which shall not exceed four (4) feet in length and four (4) inches in diameter), bushes or shrubs, green leaf cuttings, fruits, or other matter usuallv created as refuse in the care of lawns and vards, except large branches trees, or bulky or non -containerized material not susceptible to normal loading and collection in loader packer type sanitation equipment used for regu- lar collections from domestic households (limbs from tree trimmings shall not exceed four (4) feet in length and four (4) inches in diameter, and shall be placed at the roadside for pick up). i. "Industrial waste" shall mean anv solid waste accumulation of metal, metal products, minerals, chemicals, rock, cement, asphalt, tar, oil, grease, glass, crockery, rubber, tires, bottles, cans, lumber, saw- dust, waste from animal packing or slaughterhouses, or other materials usually created by an industrial enterprise. j. "Infectious waste" shall mean those wastes which may cause disease or may reasonablv be suspected of harboring pathogenic organisms. Included are wastes resulting from the operation of medical clinics, hospitals, and other facilities nroducinq wastes which may consist of, but are not limited to, diseased human and animal parts, contaminated bandages, Pathological sne.cimens, (2) hypodermic needles, contaminated clothing, and surgical -Loves. k. "Multi-familv dwelling unit" shall mean and include anv building or structure containing two (2) or more dwelling units under one roof. 1. "Recycling" shall mean the reuse of solid waste in manu- facturing, agriculture, power production, or other processes. M. "Refuse" shall mean both rubbish and garbage or a com- bination or mixture of rubbish and garbage. n. "Residential collection service" shall mean and includes service of single family dwellings, duplexes, apartments. condominiums, mobile homes. o. "Rubbish" shall mean waste material other than garbage, which material is usually attendant to domestic households or housekeeping, and the premises upon which said household is located, and shall include, but not limited to, paper, sweepings, dust, rags, bottles, cans, or other waste material of any kind. p. "Solid waste" means garbage, rubbish, refuse, yard trash or other solid or semi -solid material resulting from domestic, commercial, industrial, agricultural and government operations, but does not include solids or dissolved material in domestic sewage effluent or other significant pollutants in resources such as silt, dissolved materials from irrigation return flows, or other common water pollutants. q. "Special waste" shall mean those wastes that require extra- ordinary management. They include, but are not limited to, abandoned automobiles, used tires, waste oil, sludges, dead animals, agricultural and industrial waste, septic tank pumpings, and infectious and hazardous wastes. r. "White goods and furniture" shall mean inoperative and dis- carded refrigerators, ranges, washers, water heaters, and other similar domestic appliances and household furniture. 2. Grant of Franchise: The Board does herebv contract with the Collector to collect all of the solid waste which the Board is obligated to collect and to transport the solid waste to an authorized disposal facility, and the Board does hereby grant to the Collector the right to do so for a period of five (5) years commencing on the 1st day of January, 1988, and terminating on the 31st day of December, 1992, within the following territory: (3) .Ramrod Key North to 7 Mile Bridge 3. Extension of Agreement not Guaranteed: The Collector shall make no expenditure in reliance that this Contract will be extended beyond it's present term of years. 4. Collection of Solid Waste: Collection shall be made by the Collector as follows: a. All residential units shall be provided basic service of twice weekly pick up of garbage and rubbish. Pick up will be limited to three cans per pick up. In addition each residential unit shall be entitled to a pick up of one-half (1/2) cubic yard of horticultural trash once a week. (Three thirty two gallon containers are equivalent to one-half cubic yard.) Pick up of industrial waste and/or white goods and/or special waste, may be picked up by arrangement with and payment to the Collector. Infectious waste and hazardous waste will not be picked up by the Collector. b. All commercial and industrial establishments shall be provided basic solid waste collection service by the Collector on an as -needed basis. C. The Collector shall use the utmost care in handling containers to avoid damage and shall replace said containters in a erect position at the location from which the same is removed for collection. The Collector agrees to clean up immediately, in.a workman -like manner, any waste spilled by it during the collection process. - d. The Collector shall provide adequate equipment and labor forces to insure satisfactory collection of solid waste and its delivery to an authorized disposal facility under adverse conditions or weather, and irrespective of breakdowns or similar hindrances. e. The Collector shall make collections with as little noise and as little disturbance as is possible, with particular attention to this provision during the morning hours; provided, however, that no collections shall be made between the hours of 11:00 p.m. and 5:00 a.m., local time, in residential and motel or hotel areas. f. The Collector shall agree to complete collection in accordance with an agreed upon schedule, even if it is necessary to use additional forces and equipment so as to not delay collection in any other areas within his territory. 5. Equipment used in Collection of Solid Waste: (4) The Collector shall be responsible for providing all equipment/ necessary to maintain the agreed upon schedule. The equipment shall be modern, sanitary, motor propelled collection units, and said equipment shall be maintained in such a manner as to give maximum service and assure safe operation. Said equipment shall not be permitted to remain parked anywhere on a street or right-of-way when not in use. Said equipment shall be washed daily after use and sprayed with a disinfectant and an approved fly repellant. 6. Labor used in Collection: The Collector shall be responsible for providing all labor and supervision necessary to maintain the agreed upon schedule, it being understood that the Collector is an independent contractor and will provide for Workmen's Compensation and other requirements of Florida Law. 7. Title to Waste: All solid waste, upon being removed by the Contractor from the premises where produced or accumulated, shall become, and be, the property of the Collector. Title to the waste shall be retained by the Collector only for the period of time that the waste is in transit to an authorized disposal facility, whereupon the waste becomes the property of the Municipal Service District. 8. Collector's Office: The Collector shall maintain an office within his franchise area for receiving of complaints during normal working hours. 9. Compensation to the Collector: Compensation for residential collections shall be established annually in accordance with the procedures set forth in Chapter 8, Monroe County Co de. For the first year of this Agreement, to -wit, January 1, 1988 through December-31, 1988, the Collector shall receive the sum of $6.00 per month for each residential unit in his territory for which an assessment has been levied. 10. Compensation to the Municipal Service District: Commencing on February 10, 1988 and continuing through April 10, 1988, the Collector shall furnish to the Board a list of all commercial accounts collected by him the preceding month and the gross amount income collected and shall pay unto the Board 41.0 percent of the gross incomes received from said commercial accounts in his territory. From April 1, 1988 through December 31, 1988 the collector shall pay a tipping fee of $ 15.00 per ton for all solid waste delivered to the (5) disposal facility. The tipping fee may be increased or decreased by the Board. 11. Changes in Compensation: No later than October 1, 1988, the residential unit price may be adjusted to conform with any increase or decrease in the United States Department of Labor, Bureau of Statistics, Washington, D.C., Consumer Price Index for Urban Wage Earners and Clerical Workers - All Items - (1967 = 100) for the Miami area. The percentage increase or decrease in the unit price shall be computed as follows: The net change will be the percent difference between the labor index of December 1986, and the index published for December 1987. The rate adjustment shall be effective January, 1989, unless otherwise determined by the County. The County expressly reserves the right to approve or disapprove the request for an adjustment. The County's decision shall be final and conclusive and shall create no right in the agreement for adjustments refused for any reason by the County. It is the intent of this section to provide the method whereby the residential unit price can be adjusted, if approved by the County. Movement in the indexes from one month to another are usually expressed as percent changes rather than changes in index points because index point changes are affected by the level of the index in relation to its base period, while percent changes are not. The example* below illustrates the computation of index point and percent changes: Review Date: June, 1988 Current Year: December 1987 labor index 172.8 Previous Year: December 1986 labor index 163.7 Index Point Difference 9.1 Percent Increase (1987) = 100 x (Point Difference) 5.6 Previous Year Index) Percent Limitation: 7 Percent Adjustment Percentage Allowed: 7.0 5.6 `All figures are hypothetical and are merely intended to serve an an illustration of the methodology to be employed in adjusting the unit price. 12. Responsibility to Bill and Collect for Services: a. The billing and collecting for residential service shall be the responsibility of the Municipal Service District. b. The billing and collection of commercial accounts shall be the responsibility of the Collector. C. The Collector shall maintain an office within his territory for receiving the compensation for his commercial collection service, both ( 6) in person and/or by mail. d. The County shall maintain all Ordinances now on its books and adopted for the purpose of assisting in the enforcement of the collection of service charges for both commercial and residential accounts. 13. Compliance with Authority: The Collector agrees to comply with all ordinances statutes and regulations of Monroe County and the State of Florida properly applicable to the Collector's operation under this Agreement. 14. Performance Bond: No performance bond shall be required of the Collector at this time. However, said performance bond may hereafter be required by the.Board if, in its discretion, the same shall be deemed necessary. 15. Insurance: The Collector shall carry the required Workmen's Compensation Insurance; Public Liability Insurance in an amount not less than $100,000.00 for injuries, including accidental death, to any person; and, subject to the same limit for each person in an amount of $300,000.00 on account of ony accident; Property Damage Insurance in an amount no less than $10,000.00 for each accident and $30,000.00 aggregate. The Collector, further, shall keep and save harmless the Board from and against any and all costs, damages, claims or expenses it may suffer, incur or sustain or become liable for on account of any injury to, or death of, the employees of the Collector or to any other person, or damage to or injury to real estate or personal property, caused by and arising out of the work contracted for, and the Collector shall pay all bills of claim for wages, salaries and supplies, purchased in the operation under this Agreement or otherwise. The Collector shall furnish, prior to the commencement of operations under this Agreement, proper certificates of insurance as evidence that the above - described insurance has been issued and is in effect. 16. Disposal Facility: The Municipal Service District agrees to provide and operate a solid waste disposal facility for the solid waste received from the Collector. 17. Accounting Method: The Contractor agrees to be on the Accrual Basis of accounting, and to maintain the records as shown in Appendix "A" of this Agreement. 18. Miscellaneous: Provisions of this Agreement shall be interpreted to attain the objective that all reasonable quantities and types of refuse placed for collection are collected. (7) The Collector shall not enter into any sub -contracts, leases, agreements or assignment of or which in any way abrogate its duties or responsibilities hereunder without prior written approval of the County. However, said prohibition shall not apply to the purchase or leasing of equipment, employee hiring or discharge, office purchase or leasing. It is agreed that, in the event the Collector shall be adjudged bankrupt, either by voluntary or involuntary proceeding, then this contract shall immediately terminate. In no event shall this contract be, or be treated as, an asset of the Collector after adjudication of bankruptcy. If the Collector shall be proven insolvent, or fail in business, then this contract may be terminated at the option of the County, in which event, the County shall have the right to immediately take possession, lease or purchase Collector's operating equipment and records. All terms and conditions of the contract are considered material, and failure to perform any of said conditions on the part of the Collector shall be considered a breach of said contract. Should the Collector fail to perform any of said terms or conditions, the County shall have the right to terminate the contract, only after ten (10) days notice, in writing, to the Collector of the violation of the contract and the failure of the Collector to remedy the violation within said time. In the event of termination of the contract for breach or default by the Collector as above -specified, the County shall have the right to forthwith take possession of all trucks and other equipment of Collector for the purpose of collecting, hauling and disposing of refuse which Collector has agreed to do., The County shall have the right to retain possession of and to operate all said trucks and equipment until other suitable trucks and equipment can be purchased or otherwise acquired by the County for such purpose, for a period not to exceed six (6) months. The County shall pay to the Collector as equitable monthly rental fee for each piece of the Collector"s equipment in the County's possession. The County shall, in case of any such termination, have the right of purchase of Collector's equipment and trucks at the depreciated fair market value thereof should it elect to so purchase. The County shall make an equitable rebate to the Collector for services rendered prior to termination, if any be due. 19. Audit: The Collector's books shall be open to inspection or audit at any time at the District's request and expense. The District will hire a l Certified Public Accountant to make an annual audit of the Collect* 's records. This audit is to be completed by April 1 during each year of this Agreement. 20. Service: The Collector agrees that he will upon written request from the Manager of the Municipal Service District, discontinue collection service to any residential and/or commercial account be the same located within the unincorporated limits of Monroe County or within the corporate limits of any municipality. The Collector agrees that, should said account be serviced after such notification, said action will constitute a breach of this Agreement warranting termination of same in accordance with Section 18 hereof. IN WITNESS WHEREOF, the Collector has caused these presents to be signed by its proper officers and its seal to be hereto affixed, and the County has caused these presents to be signed by its Mayor and Chairman and attested by its Clerk and its corporate seal to be hereto affixed, all as of the day and year first above written. Dated this 15E4 day of 1?a4"1G0- � 19V At t e s t CANNY 4 KOLHAGE, Clerk � KA. _ ,. .► le'rk of -� :. Attest: BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA By: Mayor Chairman (9) r BALANCE SHEET YEAR SNMII. ,,G ASSET S CL: ^NT ASSETS Cash in Bank Certificate of Deposit Loans Receivable - Stockholder (Sch. I) Loans Receivable - Miscellaneous Prepaid Federal Income Taxes Prepaid Insurance repaid -State —Income Taxes Other Current Assets -- Tctal Current Assets PROPERTY ND EOUIP•-N1E;,"^ Automobiles and Trucks Building and Land Commercial Containers _ 4` Machines,Equip.5 Tools Office Furn.,Fix.Equip. ; Less: Accumulated Depreciation NET PROPERTY b EQUIPMENT . OTHER ASSETS Equipment Deposit �. Performance Bond Deposit Utility Deposit r Other Assets TOTAL OTHER ASSETS . 1TOTAL ASSETS 1. AZIX "A" i' CC`3:L`:Y AS OF: f J • LIABILITI: S`� STOCKHOLDERS' EOL:TY CL:,F—r` T I BILI"' S Accrued Income Taxes j' Y Accrued Payroll Taxes Notes Payable — Portion. Due r Within One tear Other Current Liabilities TOTAL CLILRENT LIABILITIES t LONG-TERM LIABILITIES Installment Loans Payable, Portion Due After One Year TOTAL LONG-TERM! LIABILITIES � TOTAL LIABILITIES STOCKHOLDERS' EOL'ITY Common Stock* Retained Earn'_ngs Balance, January 1, Add: Net Income/Loss Balance, December 31, Treasury Stock TOTAL STOCKHOLDERS' EQUITY �- TOTAL LIABILITIES b STOCKHOLDERS' EQUITY t l * Include cost per share jr,' - _ ; 0 C'. �e ;' I.,..,,.... .._.yam...._.;T YEAR ENDI::G: RECE::JE ! Monroe County Residential Customers Monroe County C:,= erc'_al Customers Other Collection Revenue Total Operation Revenue OPERATING EXPENSES Employee wages Employee Fringes Direct —Vehicle —Expenses General Maintenance General Overhead - Total Operating Expenses Net Operating Income Officers' Salaries Officers' Fringes i - Owners' Discretionary Costs Other Income and Expenses, Net Income Before Taxes Income Taxes' NET INCOME i S-UARIESi::AGES SCHEDULE A ICERS YEAR EN;, I:; G rES Part-ci: e L_=:,or S [Garbage Coll. Crew= [;Seth/:3intenancey [Clerical Yearly ., rtal. 1st Otr 2nd Otr ?rd otr S $ S $ E`TLOYEE FQIti'GES Group Health, Emplovment-$ $ $ Group Life, Employment $ S Payroll Taxes, Employ. Prof.Shar./Pension Empl. Uniforms/Laundry, Empl. OFFICERS' FRINGES Group Health, Office-s $ $ $ Group Life, Officers $ S Payroll Taxes, Officers Prof.Shar./pension, Off. Uniforms/Laundry, Off. OFFICERSSALARIES 0509)- $ S $ CORPORATE OFFICERS/0VNERS Officer's Name z n. S * ?rotate emolovees' wage s based on emplover's estimates when both collection crew .and maintenance worker. **Dart -time, full-time. • 8 \ \ \ \ I \ 71 \' • 1 Y' \ • ` Ci E C I j 1 1 O s Ell 2 Y � W 2 I ! O wI cil I 1 M ' 1"q I 1 + I IAI 1 � 1 � • 1 1 7 , I !t I I � t a If .. i w O n a � I I m y � �` i 1� U 9 b C- C� F• G �. x 1 e c� W_ r u � o C a C .�•. ro I 1 Imo( I 1 7 1 t9 � IIJ' I f I I ��! !mot t a i l 1( � •M' 7f1 K COMPANY: M YEAR. END A. For property (land, buildings, vehicles or other property) that is rented/leased to the company and owned by individuals and/or other entities that also have ownership in the stated franchise company, complete the following: Name of Owner Description of Pre erty Leased/Rented Annual ent a a �� - .. . ���: .�.� r+� _ TZ'T�TT.`Ty TT/�T^T�`V Tr ^.�• �t ���. e+.. � . ..'