Item D2M
C ounty of f Monroe
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BOARD OF COUNTY COMMISSIONERS
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Mayor George Neugent, District 2
The Florida. Ke Se
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Mayor Pro Tern David Rice, District 4
Danny L. Kolhage, District I
Heather Carruthers, District 3
Sylvia J. Murphy, District 5
County Commission Meeting
May 10, 2017
Agenda Item Number: D.2
Agenda Item Summary #2915
BULK ITEM: Yes DEPARTMENT: Solid Waste
TIME APPROXIMATE: STAFF CONTACT: Will Thompson (305) 292 -4432
No
AGENDA ITEM WORDING: Approval of Amendment 2 to the Amended and Restated Solid
Waste and Recycling Collection Franchisee Agreement between Ocean Reef Club, Keys Sanitary
Service and Marathon Garbage, Inc. to change the consumer Price Index (CPI) from the national
index to the local Miami/Ft. Lauderdale index.
ITEM BACKGROUND: This Amendment 2 to the Amended and Restated Solid Waste and
Recycling Collection Franchise Agreement dated May 21, 2014 between Keys Sanitary Services,
Marathon Garbage Services, Inc. and Ocean Reef Club provides for the Consumer Price Index to
change from the national index to the Local/Miami/Ft. Lauderdale Index. Currently these three
Franchise Agreements use the national CPI rather than the local Miami\Ft. Lauderdale index as used
in the Waste Management Agreement. If this Amendment is approved, all of the Franchise
agreements will use the same local index. The Miami/Ft. Lauderdale index is traditionally a higher
percentage than the national average, so this change in the contract will increase the overall Solid
Waste Budget and will likely lead to the current special assessment of $386 to be increased in FY
19. Some of the Franchisees have asked for their contract to be amended to use the Miami/Ft.
Lauderdale index and therefore this amendment is placed by the BOCC for consideration.
PREVIOUS RELEVANT BOCC ACTION: The BOCC approved the Amended and Restated
Solid Waste and Recycling Collection Franchise Agreement (Agreement) on May 21, 2014. The
BOCC approved Amendment 1 to the Agreement on September 21, 2016.
CONTRACT /AGREEMENT CHANGES:
Change CPI index to Miami/Ft. Lauderdale
STAFF RECOMMENDATION:
DOCUMENTATION:
Amendment 2 to the Amended and Restated franchise Agreement
Amendment 2 to the Amended and Restated franchise Agreement Ocean Reef
Amendment 2 to the Amended and Restated franchise Agreement MGS
FINANCIAL IMPACT:
Effective Date: 10/1/17
Expiration Date: 9/30/2024
Total Dollar Value of Contract: $7,484,171.76
Total Cost to County: $7,484,171.76
Current Year Portion:
Budgeted: Yes
Source of Funds: 414
CPI: 4%
Indirect Costs: $226,683.12
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: no
Grant:
County Match:
Insurance Required:
Additional Details:
If yes, amount:
Metropolitan urban area CPI numbers tend to run higher than national averages. So by allowing
Keys Sanitary Service, Marathon Garbage Service and Ocean Reef to use the Miami/Ft-
Lauderdale annual CPI number that Waste Management has in their contract, we can expect
higher annual costs in years 4, 8, 9, and 10 of the contracts. Although the Miami/Ft Lauderdale
CPI was 4% this past year, residential CPI increases are capped at 2.5 %, which will result in the
following increase in fiscal 2017 /2018
Current Monthly Rate +2.5% Annually # of units serviced
Waste Management x11,650 units
$19.22 $19.70 $236.40 $2,754,060.00
Marathon Garbage Service x8,905 units
$18.50 $18.96 $227.52 $2,026,065.60
Keys Sanitary Service x10,464 units
$18.22 $18.67 $224.04 $2,344,354.56
Ocean Reef x1,717 units
$16.98 $17.40 $208.80 $358,509.60
$7,482,989.76 FY 17/18 total
$7,257,488.64 FY 16/17 total
$225,501.12 increase
in FYI 7/18
10/01/17 414 -40000 - SOLID WASTE ADMIN
$226,684.36
REVIEWED BY:
Will Thompson
Completed
04/21/2017 3:50 PM
Christine Limbert
Completed
04/21/2017 5:15 PM
Budget and Finance
Completed
04/24/2017 4:33 PM
Maria Slavik
Completed
04/24/2017 4:35 PM
Kathy Peters
Completed
04/25/2017 12:00 PM
Board of County Commissioners
Pending
05/10/2017 10:00 AM
Amendment 2 to the Amended and Restated
Solid Waste and Recycling Collection Franchise Agreement
This Amendment 2 to the Amended and Restated Solid Waste and Recycling Collection
Franchise Agreement dated May 21, 2014 is entered into this 17 day of May, 2017 between Keys
Sanitary Service ( "KSS ") and Monroe County Board of County Commissioners ( "County" or "BOCC").
WHEREAS, the County entered into the Amended and Restated Solid Waste and Recycling
Collection Franchise Agreement (Franchise Agreement) with four individual contractors (Franchisees)
whereby an annual Consumer Price Index for all urban consumers (CPIU) adjustment is allowed; and
WHEREAS, the Franchisee Agreement were amended September 21, 2016 by Amendment 1 in
order to specify that adjustments to the commercial disposal rate should be in accordance with CPIU
adjustment used in the Haul Out Agreement; and
WHEREAS, three out of the four Franchise Agreements uses the national CPI rather than the
local Miami \Ft. Lauderdale index; and
WHEREAS, some of the Franchisees have asked for their contract to be amended to use the
Miami /Ft. Lauderdale index and therefore this amendment is placed by the BOCC for consideration;
NOW THEREFORE, the parties hereby agree that paragraph 5. B. is amended as follows:
1. Paragraph 5. CHARGES, RATES, AGREEMENT AMOUNT AND LEVELS OF SERVICES
B. Solid Waste and Recvcline Collection Rate Adiustments
(1) 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 periodic
adjustments in the Residential Solid Waste and Recycling Collection Service, and annual adjustments to
the Commercial Recycling Collection Service, and Commercial Solid Waste Collection Services as
specified herein. The Franchisee shall provide Commercial customers written notice of a potential rate
change in its annual September billing period. The periodic adjustment shall be made to the combined
category of Residential Solid Waste Collection Service and Residential Recycling Collection Service. The
annual adjustment shall be made to the combined category of Commercial Solid Waste Collection
Service and Commercial Recycling Collection Service, the Commercial Disposal Rate shall be adjusted in
accordance with the CPIU adjustment used in the Haul Out Agreement, and the CPIU for such shall not
exceed 5% annually. CPIU increases beyond 5% shall require BOCC approval and an amendment to the
Agreement.
(2) The adjustment to Residential collection shall be made in accordance with the percentage change in
the Miami /Ft. Lauderdale All Urban Consumers All Items Price Index for all urban consumers ( "CPIU ") for
the most recent (12) months available, end in February, but shall not exceed 2.5 %. Residential
adjustments for the combined Residential Solid Waste and Recycling Collection shall be allowed as
follows:
Year 1, 3, 5, 6, 7- No CPI adjustment allowed
Years 2, 4, 8, 9, 10- up to a maximum 2.5% CPI adjustment allowed
Effective October 1, 2014, contingent upon Board of County Commissioner approval of the period and
annual rate adjustments, the Franchisee will received the specified CPI adjustment.
2. Except as amended herein and as amended by Amendment 1 dated September 21, 2016, the
original Franchise Agreement remain in full force and effect.
IN WITNESS WHEREOF, each party has caused this Agreement to be executed by its duly authorized
representative on the day and year first above written.
(SEAL)
Attest: KEVIN MADOK, Clerk
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
Bv:
Deputy Clerk
By:
Mayor
Keys Sanitary Service
By:
John Edwin Carter Jr.
President
The foregoing instrument was acknowledged before me this day of 2017, by
Who is ( ) personally known to me or ( ) produced a driver's
license as identification.
NOTARY PUBLIC, STATE OF FLORIDA
Print, type of stamp commissioned name of
notary
2
Amendment 2 to the Amended and Restated
Solid Waste and Recycling Collection Franchise Agreement
This Amendment 2 to the Amended and Restated Solid Waste and Recycling Collection
Franchise Agreement dated May 21, 2014 is entered into this 17 day of May, 2017 between Ocean
Reef Club ( "Ocean Reef ") and Monroe County Board of County Commissioners ( "County" or "BOCC").
WHEREAS, the County entered into the Amended and Restated Solid Waste and Recycling
Collection Franchise Agreement (Franchise Agreement) with four individual contractors (Franchisees)
whereby an annual Consumer Price Index for all urban consumers (CPIU) adjustment is allowed; and
WHEREAS, the Franchisee Agreement were amended September 21, 2016 by Amendment 1 in
order to specify that adjustments to the commercial disposal rate should be in accordance with CPIU
adjustment used in the Haul Out Agreement; and
WHEREAS, three out of the four Franchise Agreements uses the national CPI rather than the
local Miami \Ft. Lauderdale index; and
WHEREAS, some of the Franchisees have asked for their contract to be amended to use the
Miami /Ft. Lauderdale index and therefore this amendment is placed by the BOCC for consideration;
NOW THEREFORE, the parties hereby agree that paragraph 5. B. is amended as follows:
1. Paragraph 5. CHARGES, RATES, AGREEMENT AMOUNT AND LEVELS OF SERVICES
B. Solid Waste and Recvcline Collection Rate Adiustments
(1) 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 periodic
adjustments in the Residential Solid Waste and Recycling Collection Service, and annual adjustments to
the Commercial Recycling Collection Service, and Commercial Solid Waste Collection Services as
specified herein. The Franchisee shall provide Commercial customers written notice of a potential rate
change in its annual September billing period. The periodic adjustment shall be made to the combined
category of Residential Solid Waste Collection Service and Residential Recycling Collection Service. The
annual adjustment shall be made to the combined category of Commercial Solid Waste Collection
Service and Commercial Recycling Collection Service, the Commercial Disposal Rate shall be adjusted in
accordance with the CPIU adjustment used in the Haul Out Agreement, and the CPIU for such shall not
exceed 5% annually. CPIU increases beyond 5% shall require BOCC approval and an amendment to the
Agreement.
(2) The adjustment to Residential collection shall be made in accordance with the percentage change in
the Miami /Ft. Lauderdale All Urban Consumers All Items Price Index for all urban consumers ( "CPIU ") for
the most recent (12) months available, end in February, but shall not exceed 2.5 %. Residential
adjustments for the combined Residential Solid Waste and Recycling Collection shall be allowed as
follows:
Year 1, 3, 5, 6, 7- No CPI adjustment allowed
Years 2, 4, 8, 9, 10- up to a maximum 2.5% CPI adjustment allowed
Effective October 1, 2014, contingent upon Board of County Commissioner approval of the period and
annual rate adjustments, the Franchisee will received the specified CPI adjustment.
2. Except as amended herein and as amended by Amendment 1 dated September 21, 2016, the
original Franchise Agreement remain in full force and effect.
IN WITNESS WHEREOF, each party has caused this Agreement to be executed by its duly authorized
representative on the day and year first above written.
(SEAL)
Attest: KEVIN MADOK, Clerk
Bv:
Deputy Clerk
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By:
Mayor
By:
Paul M.G. Astbury
President
The foregoing instrument was acknowledged before me this day of 2017, by
Who is ( ) personally known to me or ( ) produced a driver's
license as identification.
NOTARY PUBLIC, STATE OF FLORIDA
Print, type of stamp commissioned name of
notary
2
Amendment 2 to the Amended and Restated
Solid Waste and Recycling Collection Franchise Agreement
This Amendment 2 to the Amended and Restated Solid Waste and Recycling Collection
Franchise Agreement dated May 21, 2014 is entered into this 17 day of May, 2017 between Marathon
Garbage Services, Inc. ( "MGS ") and Monroe County Board of County Commissioners ( "County" or
"BOCC").
WHEREAS, the County entered into the Amended and Restated Solid Waste and Recycling
Collection Franchise Agreement (Franchise Agreement) with four individual contractors (Franchisees)
whereby an annual Consumer Price Index for all urban consumers (CPIU) adjustment is allowed; and
WHEREAS, the Franchisee Agreement were amended September 21, 2016 by Amendment 1 in
order to specify that adjustments to the commercial disposal rate should be in accordance with CPIU
adjustment used in the Haul Out Agreement; and
WHEREAS, three out of the four Franchise Agreements uses the national CPI rather than the
local Miami \Ft. Lauderdale index; and
WHEREAS, some of the Franchisees have asked for their contract to be amended to use the
Miami /Ft. Lauderdale index and therefore this amendment is placed by the BOCC for consideration;
NOW THEREFORE, the parties hereby agree that paragraph 5. B. is amended as follows:
1. Paragraph 5. CHARGES, RATES, AGREEMENT AMOUNT AND LEVELS OF SERVICES
B. Solid Waste and Recvcline Collection Rate Adiustments
(1) 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 periodic
adjustments in the Residential Solid Waste and Recycling Collection Service, and annual adjustments to
the Commercial Recycling Collection Service, and Commercial Solid Waste Collection Services as
specified herein. The Franchisee shall provide Commercial customers written notice of a potential rate
change in its annual September billing period. The periodic adjustment shall be made to the combined
category of Residential Solid Waste Collection Service and Residential Recycling Collection Service. The
annual adjustment shall be made to the combined category of Commercial Solid Waste Collection
Service and Commercial Recycling Collection Service, the Commercial Disposal Rate shall be adjusted in
accordance with the CPIU adjustment used in the Haul Out Agreement, and the CPIU for such shall not
exceed 5% annually. CPIU increases beyond 5% shall require BOCC approval and an amendment to the
Agreement.
(2) The adjustment to Residential collection shall be made in accordance with the percentage change in
the Miami /Ft. Lauderdale All Urban Consumers All Items Price Index for all urban consumers ( "CPIU ") for
the most recent (12) months available, end in February, but shall not exceed 2.5 %. Residential
adjustments for the combined Residential Solid Waste and Recycling Collection shall be allowed as
follows:
Year 1, 3, 5, 6, 7- No CPI adjustment allowed
Years 2, 4, 8, 9, 10- up to a maximum 2.5% CPI adjustment allowed
Effective October 1, 2014, contingent upon Board of County Commissioner approval of the period and
annual rate adjustments, the Franchisee will received the specified CPI adjustment.
2. Except as amended herein and as amended by Amendment 1 dated September 21, 2016, the
original Franchise Agreement remain in full force and effect.
IN WITNESS WHEREOF, each party has caused this Agreement to be executed by its duly authorized
representative on the day and year first above written.
(SEAL)
Attest: KEVIN MADOK, Clerk
By:
Deputy Clerk
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By:
Mayor
By: _
Ronald G. Konrath
President
The foregoing instrument was acknowledged before me this day of 2017, by
license as identification.
Who is ( ) personally known to me or ( ) produced a driver's
NOTARY PUBLIC, STATE OF FLORIDA
Print, type of stamp commissioned name of
notary
2