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Item J4 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: 12/10/14 Division: Public Works...... Public Works/ Bulk Item: Yes No X Department: Solid Waste/Recycling Staff Contact: Kevin Wilson x 8797 AGENDA ITEM WORDING: Discussion and direction of rates in the current(2014/15) Solid Waste and Recycling Haul-Out Contract. ITEM BACKGROUND: When contract negotiations for the Solid Waste and Recyclables Haul-Out began in 2012, at that time the haul-out rates were $84.52 (Solid Waste) and $73.92 (Recyclables). During the negotiations the CPI continued to compound, but during the conclusion of the negotiations and development of the new contracts the rates were not adjusted. The contracts were completed and approved with the 2012 rates. PREVIOUS RELEVANT BOCC ACTION: BOCC Approval of contract on 9/17/14. CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATIONS: Approval TOTAL COST: BUDGETED: Yes No X COST TO COUNTY: SOURCE OF FUNDS: REVENUE PRODUCING: Yes X No AMOUNT PER YEAR: �I?' (approximately) APPROVED BY: County Atty_j[_-'_S11 OMB/Purchasing Risk Management N/A DOCUMENTATION: Included X Not Required DISPOSITION: AGENDA ITEM P'W.z Revised 11/06 MONROE COUNTY PUBLIC WORKS & ENGINEERING DIVISION DATE: 23 November 2014 TO: Commissioners CC: Administrator FROM: Kevin G. Wilson ' SUBJECT: Solid Waste Haul Out & Recycle Processing Contract Corrections Action Requested: Direction on how to correct errors discovered in the two subject contracts. Recommendation: Prepare a contract amendment correcting the error and recalculate FY2015 rates for haul out & disposal of solid waste and processing of recyclables. The rates proposed for FY2015 would be $87.15 and $75.38 for solid waste and recyclables, respectively. Basis for Recommendation: 1. The rates in the contract that were "in effect until 30 SEP 2014" were incorrect and not updated during final contract drafting. 2. Both contractor and County staff acknowledge that the rates included in the contract were not updated based on the contract in effect at the time of the contract execution. 3. Waste Management's claimed rates are based upon an incorrect CPI calculation. Background: The contracts entered into between the County and Waste Management were executed in May 2014 effective on 1 October 2014. The contract negotiations were started in FY2013 when the solid waste haul out and recycle processing rates per ton were $84.52 and $73.92 respectively. On October 1, 2014, these rates were adjusted, according to the old contract, to $85.80 and $74.21, respectively, based on the contract terms in effect at that time. When the contract was approved in May 2014, the FY2013 rates - $84.50 (sic) and $73.92, respectively for solid waste and recyclables — that were in effect when the first draft was prepared, were not updated to the rates then in effect for FY2014. In October 2014, Waste Management requested a CPI adjustment effective 1 October 2014 (as allowed in the contract (Section 3.01 for solid waste and 3.01 B for recyclables) to $87.26 and $75.92, respectively. This request was based on the rates in effect on 30 SEP 2014 (FY20143 rates) and an erroneous CPI calculation (from earlier contracts). Both contracts in effect on 1 October 2014 called for CPI adjustment for FY2015 using the CPI ratio between FEB 2014 and FEB2013 values of the Unadjusted Miami/Ft. Lauderdale, All Urban Consumers, All Items Index published by the Bureau of Labor Statistics (BLS). A copy of that index is attached. The Index for FEB2014 is 242.268; the index for FEB2013 is 238.524; the ratio is 1.0157 or an increase of 1.57%. Using this increase and the rates in effect on 30 SEP 2014, the rates for FY2015 would be $87.15 ,and $75.38 for solid waste and recyclables, respectively. The differences, when compared to the rates in the executed contract, are $1.32/ton and $0.30/ton for solid waste and recyclables, respectively. Solid Waste Recycle Rates in contract executed May 2014 $84.50 $73.92 Rates in effect on 30SEP2013 $84.52 $73.92 Rates in effect on 30SEP2014 $85.80 $74.21 Rate using Contract CPI &rate in contract $85.83 $75.08 Rate using Contract CPI &FY2014 rate $87.15 $75.38 Rates requested by Waste Management $87.26 $75.92 2 Miami-Ft. Lauderdale All Consumers, All Items Unadjusted Consumer Price Index Consumer Price Index-AII Urban Consumers Original Data Value Series ld: CUURA320SAO,CUUSA320SA0 Not Seasonally Adjusted Area: Miami-Fort Lauderdale,FL Item: All items Base Period: 1982-84=100 Years: 2004 to 2014 Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 2004 183.6 185.2 185.6 185.1 187.0 188.6 185.6 184.5 186.6 2005 190.6 193.2 192.6 195.6 198.8 197.4 194.3 191.8 196.9 2006 202.2 203.8 203.8 205.E 204.8 205.4 203.9 202.7 205.1 2007 207.989 210.904 212.820 213.127 215.159 217.319 212.390 209.955 214.826 2008 219.082 221.324 225.079 225.473 223.699 218.324 222.119 221.180 223.059 2009 220.589 220.740 221.485 221.306 222.416 222.943 221.387 220.674 222.100 2010 222.505 222.625 222.390 222.803 223.631 224.907 223.062 222.553 223.570 2011 227.451 231.503 231.197 232.749 232.141 231.794 230.851 229.524 232.178 2012 234.043 236.095 233.991 236.110 236.793 235.023 235.207 234.526 235.889 2013 238.524 238.124 237.815 237.438 238.858 239.417 238.179 237.921 238.437 2014 242.268 244.073 243.428 243.124 244.130 242.921 County Staff Comments about Intent Wilson-Kevin From: Haag-Rhonda Sent: Monday, November 17, 2014 8:29 AM To: Wilson-Kevin Cc: Washington-Rosa; Shillinger-Bob; Leto-Beth; Limbert-Christine Subject: RE: CPI for FY15 for Waste Mgmt Haulout - Issue Kevin, I was under the impression that the rates listed in the contract upon execution of the contract were accurate and current, which was based on the documentation (or lack thereof) I had at the time the contract was being drafted. It wasn't until recently that I learned that the rates were not current. Please note that various Waste Management employees, including Mr. Sullivan, served on the contract review team and were provided multiple opportunities to review the various contract drafts as we moved closer to the final version, to ensure the accuracy, validity and applicability of the terms and conditions under the new contract. In addition, the rates presented to the BOCC during the numerous updates were also based on the rates as listed in the contract. Not once did any vendor staff member comment that the rates were outdated. At this time I do not support a contract amendment to adjust the rates upward, as the vendor representatives, including senior managers and legal representatives, had multiple and ample opportunities to review and comment on the numerous drafts of the agreement before the final document was drafted and executed. Thank you, Rhonda Rhonda Haag Sustainability Program Manager Monroe County 102050 Overseas Highway,Ste.246 Key Largo,FL 33037 Bus: (305)4.53-8774- Cell: (305) 395-9928 GreenKey,s.info From: Wilson-Kevin Sent: Saturday, November 15, 2014 6:24 PM To: Haag-Rhonda Cc: Washington-Rosa; Shillinger-Bob; Leto-Beth; Limbert-Christine Subject: RE: CPI for FY15 for Waste Mgmt Haulout- Issue Rhonda, i In reviewing the e-mail thread below it appears that you believe both parties were aware of the fact that CPI adjustments on 1 OCT 2014 would be based upon FY2013 rather than FY2014 rates. Please confirm that the intent of the parties was to base FY2015 CPI adjusted rates on the FY2013 rates rather than the FY2O14rates. In the attached letter from Waste Management and in their discussion last week, WM contends that the use of FY2012 rates was an oversight by both parties. If that's the case, the only way to adjust the FY 2015 rates based on FY2014 rates is via a contract amendment. Absent your agreement with them, I'll advise them that we will continue to use the rates we have calculated. Backgroun Waste Management contacted me about this difference and followed up with the attached letter. Their claim, relayed in person but not well explained in the attached letter, is that the hard numbers contained in the contract(s) were written in during the early negotiations prior to 1 October 2013 and never updated even though the intent was that the CPI clause(es) were intended to start with the rates in effect on 30 September 2014. The contract rates for solid waste haul out and recycle haul out in effect on 30 September 2014 were$85.80 and $74.21, respectively. The negotiated contract extension that went into effect on 1 October 2O14specified that the CPI adjustment be based on: For solid waste [Section 3.01] a tipping fee in effect until 30 SEP 2014of$84.50, and; For recyclable materials [Section 3.O1(B)] —a processing fee of$73.92 that will bein effect until 3OSEP2O14. Waste Management contended, in my meeting with them, that those rates ($84.50 and $73.92) were both wrong and were the rates in effect in 2012 (FY2013) when negotiations were initiated. In effect their argument was that neither party remembered to update them prior to final approval. I've found that the rates in effect from 1{}CT2O12-3OSEP2O13 were$84.52 (not$84.5O) and $73.92, respectively. The CPI adjustments made on 1 OCT 2013 made those rates $85.80 and $74.21 respectively.Those rates were in effect 1 OCT 2O13-3OSEP2O14. | have attached extracts of the relevant sections of both contracts. Kevin G. Wilson, P.E. Monroe County Public Works 6k Engineering Division MurrayE. Nelson Government 6kCultural Center 1O2O5O Overseas Highway, Room 214 Key Largo, FL33O37 (3O5) 292-456O (Key West) (3O5)453-8797 phone (Key Largo direct) (3O5) 797-1547cell (3O5)453-8798 fax-Key Largo (3O5) 295-4321 fax-Key West Fmmmm: Limbed-Christine Sent: Wednesday, October 22, 2U149:2OAM Tm: VVi|aon'kevin; Haag-Rhonda � Cm: Wash ingtnn-Rosa; ShiUingerBnb| Sullivan-Cheryl; Madnk'Kevin; Leto-Beth Subject: RE: CPI for FY1S for Waste Mgmt Hou|out Issue The haul-out and recycling fully executed agreements are attached for reference. � | Christine K4. Limbert'Barmwo 2 Asst.County Attorney Monroe County Attorney's Office 1111 12th Street,Suite 408 Key West, FL 33040 (305)292-3470 (305)292-3516(fax) From: Wilson-Kevin Sent: Tuesday, October 21, 2014 8:38 PM To: Haag-Rhonda Cc: Washington-Rosa; Shillinger-Bob; Limbert-Christine; Sullivan-Cheryl; Madok-Kevin; Leto-Beth Subject: Re: CPI for FY15 for Waste Mgmt Haulout - Issue Christine, Thanks for the summary. I'd like to review the summary you prepared on Wednesday. Please send all on the e- mail list a copy of the final stamped signed contract for their use. Rosa, Beth, Cheryl, Joan: Please review Christine's analysis and be prepared to tell me whether you agree or provide an explanation of differences by mid-day Wednesday. Rhonda, I'll decide after we review Christine's analysis what we'll use and who will communicate it to Waste Management and when. kevinw Kevin G. Wilson Public Works & Engineering Division (305) 453-8797 (office) (305) 797-1547 (cell) (305) 453-8798 (fax) On Oct 21, 2014, at 2:49 PM, "Haag-Rhonda" <Haag-RhondakMonroeCounty-FL.Gov>wrote: Kevin, pursuant to Christine Limbert's legal review of the haulout contract, the County will not be paying a CPI to Waste management for FY15 based on their current rate of$85.80. Instead the CPI will be based on the$84.50 rate that is specified in the new haulout contract. Waste Management will understandably be upset. We need to inform them of our review and decision. How would you like that done? You or I can call them or I can send an email and letter, or a combination of a call followed up in writing can be done. I would be happy to handle it, but wanted to touch base with you first. We need to take prompt action so Joan can assist before she retires... Thanks, Rhonda Haag Sustainability Program Manager Monroe County 102050 Overseas Highway,Ste. 246 3 Key Largo,FL 33037 Bus: (305)4.53-8774- Cell: (305) 395-9928 GreenKeys.info <i mage004.jpg> From: Limbert-Christine Sent: Tuesday, October 21, 2014 2:41 PM To: Haag-Rhonda Subject: RE: CPI for FY15 for Waste Mgmt Haulout - Issue I will leave it to you and Kevin W. on how you want to handle it. If you need me to write a memo let me know. <lmage009.jpg>Christine M. Limbert-Barrows Asst.County Attorney Monroe County Attorney's Office 1111 12th Street,Suite 408 Key West, FL 33040 (305)292-3470 (305)292-3516(fax) From: Haag-Rhonda Sent: Tuesday, October 21, 2014 2:38 PM To: Limbert-Christine Subject: RE: CPI for FY15 for Waste Mgmt Haulout - Issue Oh yes, it was that "not effective until October 1" part that is important. So for FY15 starting October 1, their rate will be$84.50 x CPI %.... They just lost a whole year of a previous raise. Their rate for FY15 should be very close to $85.80—since the CPI is probably very close to last year's CPI. They are not going to be happy. I think a letter may need to come from you to state our case?Or I can send it? Rhonda Haag Sustainability Program Manager Monroe County 102050 Overseas Highway,Ste.246 Key Largo,FL 33037 Bus: (305)4.53-8774- Cell: (305) 395-9928 GreenKeys.info <i mage005.jpg> From: Limbert-Christine Sent: Tuesday, October 21, 2014 2:33 PM To: Haag-Rhonda Subject: RE: CPI for FY15 for Waste Mgmt Haulout - Issue 4 Yes based upon the current contract the CPI is based upon $84.50, but we are not entitled to a refund because the amounts paid through September 30, 2014 were made pursuant to the prior agreement. The current contract was executed in May 2014, but was not effective until October 1. <1mage010.jpg>Christine M. Limbert-Barrows Asst.County Attorney Monroe County Attorney's Office 1111 12th Street,Suite 408 Key West, FL 33040 (305)292-3470 (305)292-3516(fax) From: Haag-Rhonda Sent: Tuesday, October 21, 2014 1:19 PM To: Limbert-Christine Subject: RE: CPI for FY15 for Waste Mgmt Haulout - Issue You are saying the CPI for FY15 shall be based on the$84.50 rate- right? Does Waste Management owe us a refund for overpayments by us after the haulout contract was signed—or not? Rhonda Haag Sustainability Program Manager Monroe County 102050 Overseas Highway,Ste.246 Key Largo,FL 33037 Bus: (305)4.53-8774- Cell: (305) 395-9928 GreenKeys.info <i mage007.jpg> From: Limbert-Christine Sent: Tuesday, October 21, 2014 1:13 PM To: Sherry-Joan; Haag-Rhonda Cc: Madok-Kevin; Washington-Rosa; Wilson-Kevin; Shillinger-Bob Subject: RE: CPI for FY15 for Waste Mgmt Haulout - Issue The rates in the contract appear to be based upon FY 13 numbers, not FY 14 numbers. The rate in FY 2014 was $85.80 (which dropped to $82.80 due to royalty payments of$3.00 which kick in after reaching 67,000 tons) Rate in FY 13 was $84.52 (dropped to $81.52 in July after meeting 67,000 tons) Rate in FY 12 was 83.11 (dropped to$80.11 in July) The rates listed in the recycling agreement also appear to be based on FY 13 numbers of$73.92, not $74.21 for FY 14. The contracts state that the CPI is to be adjusted based upon the disposal fee of$84.50 per ton of waste delivered. Section 3.01 of the current contract states "The County is currently paying the Operator an operations an operations and disposal fee of$84.50 per ton of waste delivered to the Facility.The$84.50 per ton fee will remain in effect through September 30, 2014. On October 1, 2014, and each October 1 thereafter, except as specified below, throughout the remaining term(s) of this Amended and 5 " operations and disposal fee shall be adjusted annually based on the Restatement Monroe County Haul Out,Transfer Stations Operations and Maintenance Agreement, the Based upon the contract language approved by the BOCC without a contract amendment, the CP| adjustment should be based upon this rates as approved by the BO{Z and VVIVI. It is important to mention that the contract provides that the County shall calculate the adjustment of the Operations and Disposal Fee and notify the Operator of the change prior to October 1 of each year thereafter.The Operator shall have the right to review and agree to the calculation of the adjustment. <1nnogc012jpg>ChrisdnoM. Limbort'Barmws Asst.County Attorney Monroe County Aunmoyomnoo I I I I 1zm Street,Suite 4nx Key West, FLaao4o (305)292'3470 Waste Management Claim ff / III November , 2014 Monroe County Key West, Florida 33040 RE Amended and Reslated iq° atfli Out, Transfer tem ioilm Operations and Maintenance greern mmr Restated and Amended yem°;yr Wr bles Mrpm'sal and Opier mm',mrrs 4reernermt „- M rym jmmrtrnent Dear, r alVson', Thm responds to Rosa masl',Ommgton's letter dated October 27, 2014, Both the y44,40 rate for transfer station operations and $73,92 rate for recyclabpes disposal are incorrect, have attached fetter to Den N rce dated Oclober 1, 2412, reg rdmm%the CN �n rrase for the Irx,,mhod October 1, 2012 to Septerm°mbet 30, 2013 "rhm wog a rate of$84,52 for the transfer stab on operatmm ns, For the same pe 0d the re ym.hn opmr raflr mm agreern(,!nt rate kicreared tm 73,92 T'he County aid each of these rates, during the stated pr>6od, mmmdamly, � have attached Vett �r dated October 1, 2013, to mmmmt yfrrce regarding the CPI d,ju,rtmmmj mm foie October 1, 2013 to September 30, 2014, The adjusted rates were $85,80 too the transfer staflon m r ti*r" ar ,ireement and $74,21 foir "'mmm recychrig operation mmgINr'!" mrm'rr rm 4y m"m„ these rates were accepted acid paid by the County, 'rhe attached letter, (fated October 1, 2014, rrmflec:ts the correct m,a tes for, rm,mrrm;nt fiscal year, of rt'rabe 1, 201,4 to September 0, 2015 87 26 for, transfer staOoin m',)pe afio s an 75 4y for recycling rmpmrrmbm ins agreement Thank you for your assistance 0 Oki rmrmt'itter', armor avaiiable for any questions that you may have, Sincerely GiireV r,Aky'a"Vi'r W////,/ , October 1, 2012 . Dent Pierre Director of Publicarks Monroearty 100 Simonton S West,Key FL 33040 Dear Mr. Pierre: Per,the Term Extension Agre , ant to the Restated MonroeCounty Transfer Stations Operations and Maintenance Agreement, Waste Management Is entitted to a rate adiustrmnt ofthe Ope�ration and Disposal Fee effective Octoberl, 2012. Paragraph 2 Section 3.01 r LkLeMt0flA& Eft,ment states that "' �r 1 2006 and eat er Irr the r pining terms) �the riir�ti ree the rations and disposal i fee shall be adjusted based on the Refuse Rate Index depicted in Exhibitthe original agreement, or the consumer price e01 , US, City Average, All Items, ,he Department a( La r, part rat of Labor Statistics, which ever is tower. ever, In no event, may a yeasty, per ton increase In the rations and disposal fee be greater than 4% ofthe prior, year's per ton fee. Based upon the applicable CP1 data, Waste rr a err entity, increase, i the tipping fee $ ..5 r° ton effective October i, 20,12. This fee repfelsents a i. increase from the previousfiscal year ram 01,83.11. Enclosed is the Bureau of Labor Statistics e confirming mi the applicable 01 rates used In the calctAabon. Please feel free to contact me i1 your have any questions. Girel StAtivan District Manager C rr Kaptan - WMI John Albert - WMI Rosa Washington Monroe County From everyday call tion to onment l protection, rhink Green", Mink Waste Xan49#1?1V1t., w/r/r// WAIST*^ AN -0 October 1, 2012 De'nt Pierce Director" of Pubtic Works MonroeCounty I 100 Simonton S . Key lst� FL 33040 ear Mr. Pierce.* Per the Second Amendment to the, RecyclabtesAgreement, Waste Managemententitled to a rate adjustment to the Recychngs Fee effectivetuber 1, 2012. Paragraph Section 3.01 of the _gond Arnendrnitnttq1bl, �yci peratJq Agreement states that tuber 1, 2004 and "throughout that term of this agreement, the Processing Fee shaft, be adjusted based on the percentage change In the Consumer Price Index for Miami - Ft. Lauderdale ,- All, Dams-All Urban Wage Earners and Clerical Workers, published by the United States Department of Labor, Depairtmentbur Statistics for the previous August . t ."' Based upon the male CPS data, Waste Management will increase the Upping f $ 3.9'2 per ton effective October 1, 2012. This fee repro a 1 increase from the previous fiscalyear, rate Enclosed is the Bureau of Labor Statistics data sheet confirming the acate C J ratft used In the catcutation. Please feet free to If you have any questions. Strwerely, Greg Sullivan District,Manager CKaplan Johnt - WMI Rosa Washington µ Monroe County From everyday, collertion t r omen° l protection, think Greem, Think Waste n t Buireau of,Labor Statistics Consumer Pries Index - Urban Wage Eamiem and Clerical Worke" Original Data Value i l 32 S Not,Seasonally Area, Miami-Fort,Lauderdale, FL ' H items 1 2-84=1DO years: 19771D 2 012 CWURA320SAO 2000 M04 2,19,456 223,849 CWURA320SAO 2000 Mos 22,E 597 CWURA3,20SA0 2008 M102,2 C'WURA320SAO 2000 M12 215,867 M13 2,2 . 2o-3 . 2008 S02 221,495 M 2 217,635 CWURA320SA0 2009 M04 2 ' ,900 C ,S 2009 Mos 2%D91 CWURA3,20SAD 2009 moo 219,000 CWURA320SAO 200 Mio 220,35,8 C'WURA320SAO 200,9 M12 221,067 C CWURA320SAO 2,009 S02, 219,977 CWU,RA320SAO 2010 M02 221,074 3 220,3,84 CWURAMSAO 2010 moo 22 ,9 , 221 222,510 CWURA320,SAO 20,10 M13 221,.088 CWURA320SAO 2 4 220,764 CWURA3 2 2, 346 CWURA320SAO 2011 M04 229A'76 CWURA320SA,O 2011 MIDS229-353 U 231 A48 v, CVVURA320SAO 2011 M10230,728 CWURA,320,SAO 2VII M123 CWURA320SAO 2011 M13 229,161 230,770 232,6106 2.35443 231966 CWURA,320SAO 202 Mas 235,409 CWURA320SAD 2012 Sol 231455 Sour Sourew Bweau of Labor Sta't October 2, 2012 1Z I October1, 2013 r. Dent Pierce Director of Pt6fic Works Monroe County 1,100 Simonton S . Kely West, FL 33040 Dear r. Pierce: Per the Term Extension �eement to the Restated Monroe County TransferStations Operationsand Maintena e Agreement, Waste Management is entitted to a rate adjustment of the Opera Ion and DfsposM Fee effective Otto, 1, 2013. Paragraph 2 Sect1cm 3.01the states that , 2006 and each October I throughout the remaining term(s) of.the originat agreement, the operations and disp at fee, shall be adjustedbased on the Refuse Rate Index deputed In Exhibit B of t originalagreement, or the consurrwr price i (CM), US City Average, All I ems, ublished by 0* Department of Labor, Department, Statistics, which everis r. However, in no event m4y a yearly per ton increase Jin the rations and dispol a( fee e khanprior year's per ton fee. Based upon, the appbcab e CP1 data, Waste Management entitled to an increase in the tipping fee to $ .8 per ton effective October 1, 2013. This, fee represents .15 Increase Devious fiscat year rate of S84.52. Enclosed °I the Bureau Labor" Statistics data sheet confirinfing the applicable CPJ rates used In thie catcuta on. Please feet free to coat a It you have any questions. Sincerely, Greg SiAl a District Manager CC: Ron Kaplan John t art WN - Rosa ashit Monroe, County From everyday colledian ft environmental protection, Think GrrerOchink Waste ManagemenC f ',,a GIv,slow 1'.11 II aGw^�wArWlee;MY+w m I i vim i Ll � �I fln 1 A is Fill III FW �W m ca �we map Hmo ul I' Databases, Tables & C , cuaots by' SUbject ^ m m ut m F a, Tw 2013a it " " " m; U's, cityrA Xtafts All I m 44014 Maylion, 1 r i 1k Q k 1 ., r ' 1493 WS 1 1911A 1 L TOOLS CALCULAT NVO OURrA% row ofmw"w Metp&TAwaft, ar Now fm .rmmw"Gonw,w 0 IrdVolfts 89 a GoftleLe mmum 'um FAQS Co,*mQ RLS Owdum Oro riimm"wileA amwa , mmm ma )m CP " .. FmmAJ m,V 00L u )0 ca,Aim DaMOMW&I" 1 OO OIL$ Aw out m aimrmg WIN LAS A,ow m m mmmw mm m i"m„m p m"gym r mm m enentmm °mwv Y W3411 ot w he U 4 9Cm " lawrom We*64N' I J,&BUFNIO 0 lAbOf 5 a m m NE,WaNeVon.W 2 11 -gym I "A. October 1, 2013 Mr. Dent Pierce Director CountyMonroe 1100 Simonton West, 33. Dear Mr. Pierce: Per the Second Ame4mitthe Recyclables Operation Agreement, Waste Managements entiflet to a, rate adjustmentRecycling s Fee effective �13. Paragraph 6 Section . of the q the c c1 w 1 �. c and each � throughout that terms of this , the Processing Fey sheaf be adjusted based on the percentage change In s , Price Index for Miami - fit» Lauderdale - Ail Items-Ail Urban Wage arners and Cterical Workers, published by the United States Department Statistics for the previous August 31 July, 'I Based upon the a l,' le C 1 data, Management, t( increase the tipping fee to $74.21 ir ton effective e 20,13. This fee represents 0.0414 Increase from t previous 'iscal year, rate of $73.92. �Enclose4 Is the Bureal of Labor Statistics sheet confirming the applicable C 1 rates used In the ca Culation. Please feet free to conta l , me if you have any questions. Sincerely, Greg Sutilvan District Manager, C. Roam Kaptan - WMI John Albert Rosa Wasbington , Mmiroe County, From everyday collection t o envirollmesital proNctfon, rhink Green.* chink Waste Managoment., � � . � � . i� � � d\��9� 226.�� � � < � �¥. 2< i . \� � \ ». � ' � ° \' . 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MAO� 4 U 318 234439 U.1 233.4.55 233�M ................. ................ .......... 2013 IRS' 3,o TOOLS CALCMAT AS I*Lp INK) MRSOUACES AM#$0 a hftbw *,�p 6 Tww"aw moat S NOW o"Oomw Gwoermi,04) 1"Awtift at 0 Glove wc~OU want PAOS Cw"Os Is,at S "sodget arfm Pwourms"m Emm"k,Rffw~ Mpwy M4 M%w Ghxwv Foul It,DIX No Fm A01 DaWbinft MOO BU AW,Out MAMMO Ldft LnM,Qov Maps uftwing&cawrw%Vft Oww"S'jpaw DU66TY 10V folft"Wwoft AO � $4 wacv a SmAtty suftowd � Dim""Wa � Cooftmw SWOWO Ift"Waft WO SM OOWM .......... .......... ........ UfS W*MU Of UOW ftd OM PW*%, VAft OUNMO,2 MWWhU*ft ANOfte.Ott,WAWsqftp,DCNU 12-ml mo,amw Toftphaft:1"42,61,S)m J,'MM 14MOn"0339�Ux=,wj 1042 2,12 0 13 r i ir, Dent Pierce Director of Public Works Monroe County ,iwi Sirrrrrr°rir' rr Key West, FL 33040 040 Dear Mr, Pierce,, Per the T rrrr Exte su on AW*ement to the Restated Monroe County""transfer Station ration n Maintenance Agreement, Waste Management is entitted to rr rams adjustrnera of theOperatiort and Disposal l Frye effective October 1„ 2014, Paragraph Section 3,01 of theTerm Extenvors Agree�,nent status that "On October fro 2006 and each October " i°hrrrrrr, i°rrrrri the remaining term(s) f the rrri ai agreement, the operations and, di irr i fee rir ui beadjusted on the Refuise Rate index depicted in Exhibit 8 of the original agreernent,or,the Consumer Price lnde (Ciri�, US City Average,Aid Items, uti isirrrri by the Departrnent of Labor, Departrytent of Labor Statistics, wl,0ch aver,it iower, ir°r ,r rrr, in no event nary a Nearly per,ten increase irii the urgeratiorrrr and rii pprim fee be greater than r of tint prior year's per tart fury. Bared ninon the applicable M data,Waste Managernent Gs enti i ri to an increase in the tugging fee, to $87.26 per,tart effective Ocao;r r°1, 2014. This free represents ,. 0%increase rnrin the previotis fiscal year, ratan of ggag , Enclosed it Ov grrreau of Labor ar Statistic nets sheet ron `ir°rning the a;rplicable ii'iiri rats;, used in the c0cul tlinrr. Please feel tree to contact me rf you have any questions, Greg SuHivan Nstrict Manager Front ever-,yd'a,y" r°rriiecti orr to environmental prote ty,"onr ;Think Green i ink tyr ste ortrrrrr;rgenrrrrt,. w i I m Ii r, Dent IIvr,ce Director u of 'uubliWorks Monroe County IIC,*Simonton St, Key West, FL.33040 Dinar Mr, Pierce: Per the Second Asnendmentto ulhe Recyclables Operatiori Agreement, Waste Management is entifledto a rate adjustrinent to the Recycling Processinge effecflve October 1, 201,4, Paragralph 6 SecVor, 3,01of the ' eum a°lug uuu uuluu orient to the Recycling Operation Agreeimentstates that "Or Octobea 1., 2004 and each October V throughout that term of this agreeirent, the I Processing Fee shish be adjusted based out the percentage change in the Constorner PriceIndex for Miarni-, Ft Lauderdale w-flu Items-All Urban Wage Earners and O ulu„ $Workers, published by this lnlnite States Departrnent u l La uuuu„ IDepartnuent of Labor,Statistics for the previous August 21. July V' batted uu nn the u u llmwuuu le CP1 data, Waste Managen'ten t will increase the Iippi a fee to$75,92 per toirt effective October 1, 2014. This fine represerits a 2,30%increase from the previous fiscal year tutus of 74, 1., Encu c is the uulr uuu of Labour Statistics data sheet onfiruuuluo , the ap liiuu:ab� i CPI rates used in the c,'*kdation, Pleas feel free to contact me df you have airky questions, SVr1 , Greg Sullivan District Manager CC: Ron Kaplan .-WN41 Cosa Wuus uingtou°u ­ onru(,)uu County Torn everyday colleen n to uuuuu ll'onuuuu^ntalprotection", Think Green, 'rhinWaste Harsaqemenf. N4 4 Vwu 0°4 a, 4^i Ir a�r"la Iw w 44) V, M,"rk ^^"^ b 4 4 PI, N""Wk 04 N r" 011 04 IP^Wg I �M a'""4' III�4 C"" 414 K11d4 4"0 N 4 �4 go p 4 . N C, uX) 4 M 4 4A ell 0 41, N p", r,,& vr4 C'4 !4'Nrb 4"i 4"" 4" „«.r.N ! fin"" I ('11 V. 0 110 �;"" '"",n, ,��,a "r I C",i vn 011) 4,& M-r r4 04 04 04 C44, O 4�"M1 4 4';iMr& " R ) b"," V14 m fq ell HIV 4 "u- to 4"4 li 4Ln4. kL, N O"4, ro m a um b 16. " Ii 4 4161, ' op " R X wllw ry f"i 04 ol c q 44 S WI V11 fIll, OR 04 04 0) 8 N fM f"') (D rN M P., 01 Nth I R iIt § In 'A Vf 04 F", X'4 P! 0 1 4 6 1 g a Z s ON N C1116 C1114 CNI 011 �rllli Ch 1 04 111 QW, Iq e, N 6110 Do (10 CIO 41,14 4114 111114 oll 44 H tl'w,k fl, 1., 111.1 Ill 00 C"i 0 w 04 w; M T All v 4) 04 A, C,t 04 N fiA M P, 04 1, , 0 s,CO ''s, a), of s M W 'in 40 II10 9 (e), t- N C 04 vol r'l 4 C N '10, 4714 04 04 C114 04 21 C14 414 Cl'o flo 60 4`114 ('10 04 CN& 15 P. Wl 113) 00 69) 41l) 0 04 +, a rl� w 41) F' Vl 04 N NN, 0110 C.) Cc 49) C 4"4 Pl. (N4 04 CIA C%,A (IN P1141 1 4"16 P4 Cl) W1 Olf, , § 0,7 1 11 1 �13 Wll 00 01 in "X) (14 (,4 c14 w-, ro e4 , ell cli S, U) 2 1w j C A I p-, lVA14 4�440111 (14 C—%,j ('14 c1l, 04 (N 'CwlUm Cl e (st r1 " l11 1l ,;J fNO 4144 r"4 vq 11 2 o" em on rl; 04 414 flk C (4 f"I ZN ff C ",g) U 0 , 1 mmmmmmm nwmmm � m mm � mmp��m ,� �� h �u . Monroe .� unt eI'lie Florida Keys irtd �'� naar���p� �wdaokkatt�d �rnan��0.V " Qna„emnVna.�m¢ ,�no�nunM��e��,. @na�xuo�n. aM0 4 October :A 2014 C',rcy Sullivan, Sr, Ip"mnmr°nnm lmairwnngnnr „ FIFII D MAIJ.m. n'nnsnni I Ia na again„nnm, �rmc mw 1"'loridir RETURN „I�� �, �.? ST Iuj) q DI nm�n ionrmn hnn#nr.,"amrna�� Dri%e Owkiand Key FL 33WO, RE; Rm:que m d Soh Sohd NVaste and Rec)'nnflnwlh'wlnnn Haul Out Conwsuinnnr, 116niie. Irk n (CTO Inmcremmsc, l<l car Mr, Sullivan, `e am in rnicc4x oV% m me Nianagurnenk r°qiieinm Or the annual I IF 201 C 15)C. 4 innn;mnm a,n. 6w �nmrrr, ON mn and RncynAbles Haul Own cornmm„ o. AQ, lhm-riu°or gh, rvvina m 1he rmnr.n:nnm wwramds cxc- LACid C anrmr Mamrnan?,onnew and Vhmnw Ournn „ we fi,,uund ihal, ow If m a& Im n imnam b Cmw 11' wanrn.m rmr0r,.w the OWNr41 TV=conn:nnrnn maws �4, rnmwn„6oin 10 L it slaw,,, n@wnm,n the NS ,,"50 pei f c wiH ry mnawn in A�% Ihnann gh SgpmnmrnWxr 30, 20 a , " When aiJd mlllninn (411 ( 93)iAfr^ nine C:kmnmln r 1, 20 W. Me n;nc% n°nannnn A SH0,43, I A ,aamwe nmPPIiminn nnr 111nr QCµ anCn;;�a1")les I bW (AI n,„m.nwnnrnmo m nrm pagu 8, rminimnanrn 1 01 B, um nnICa r�) sann Cs,,,,. the 3 2 inn wi be AH rn,.rnm nmm iN 010 11nnnmiiaph Suple rmber 30 2014. `h nn you add the 1 , 14, CPI (SA Y )011AVC .nnmlN n k, 2014. the ne ; I tau! Out mama° IN Recy&bks is 713 per nmnt %We have immnnnminn;d mmn r Ananrnnm: dqmvimcm nmm o nt pay the Ame rnMes rwr°NWL Pleaw it amlku any, nn°n°.mr^m.nninn nmmrnmc,-,tionnra n,nnn nwiumn future iinnroiccs, It you have any LpkeOlnwnns. please Nell Rev to contact nnne Best !tgards, /i o nn�rnm `^� ` ma�nnnnnn�nn ----- cc C.I wninmNe UmNmaw°nn-Ban ws Kevin Wdsoin Hwh I mnm Storage. c table ^te,shall too in the storage area bc delite ,&m rrr � � � ��� " � t awaiting m,nOval tO the Disposal S it:: � s ti i or is awaiting The maxirrumn time allDwW for storage of MuticipsJ Sohd Waste at, the facility due, to equipment malfunction or breakdomm shall be seventy-two (72)houirs,, 2.11 Special Waste Management. rrr tor has establishes rr ttt to identify and manage, wastes which requke "icial managornent and handlingat the Facilities oir the Disposal Site, In the event Special Waste is receiv ed at a ,°°i i,t in quantities watch require SPOCial Ujanaganeat and handling,Operator shall 110tif thie gentiator r traw,porter Of such waste that awalysis and possr@a a i�a.l handling ol'such waste is reqtiired,, If mial handling of atw, , waste is reasonably mutually dermed by mtor and County to be roquired under, Operatoes , mial waste ma,rta Oln rtt r g m,thegenerawr ortransporterof such waste swr a harWling anti dispo,sal surchargeas n,egotiated twtween ter Operator and the gavemtor and/or transporter of Such wage,. but the, event the " ratrrr r , � toror m er wt w a U)a ren a surcharge, the matte shall mitt to the County Administrator or his or her desipee final determination. 2-12 E4uiPwt#tParking, a at rat ' tit which the Operator Carr exclusively use or w arr trams„r- traders,"ns tractors,atu other try andequipment rti r� �� �� ")r, the fulfilling the provisionsof the � etnen , l t desires try rar , at a "s it t will be rrr et t the r r.a rta l ten o � ditions imposed by the out � ARTICOMPE�'IIw.Po, q�y, +ppµ Cy�p,Ly U' E S ADD PEN 3.01 Operations and Disposal Ftt� tore l° sty delivered to e Facility, .50 r tors w i � of � e t ° e County ill retatE r rec, through September 30, 2014. tint teh r 1, 2014, and each October l thereafter, except as specifted below, throughout the remaining ter s of this Amended e tt Restated l arse County H rrl Out, 'Transfer Stations Operations merit, disposal fee, dial be, adjusted annually hased on the Consumer Brice Index de icted In Schedule B of this AmexWed and Restated Monroe County fan,f t,Transfer Stations Operations and Maln ante,Agreentent 141 Extract of the Waste Management Solid Waste Haul Out Contract 2.10 Storage. Acceptable Waste shall be stored in the storage area designed for that purpose. No Solid Waste delivered to the Operator may be storedoutside theFacilitybuildings,except forloaded transfer trailers awaiting removal to the Disposal Site and yard waste which has been or is awaiting chipping. The maximum time allowed for storage of Municipal Solid Waste at the facility due to equipment malfunction or breakdown shall be seventy-two (72)hours. 2.11 Special Waste Management. Operator has established a program to identify and manage wastes which require special management and handling at the Facilities or the Disposal Site. In the event Special Waste is received at a Facility in quantities which require special management and handling,Operator shall notify the generator and/or transporter of such waste that analysis and possible special handling of such waste is required.. If special handling of such waste is reasonably and mutually deemed by Operator and County to be required under Operator's special waste managementprogram,thegenerator or transporterof such waste shall be charged a handling and disposal surchargeas negotiated between the Operator and the generator and/or transporter of such waste. In the event the Operator and the generator ortransporterareunable to agree on a surcharge, the matter shall be submitted to the County Administrator or his or her designee for final determination. 2.12 Equipment Parking. The County shall designate areas at each facility which the Operator can exclusively use for the parking and storage of transfer trailers,transfer tractors,and other vehicles and equipment ownedor used by the Operator for the purpose of fulfilling the provisions of the Agreement. Any other vehicles Operator desires to park at a facility will be subject to the reasonable terms and conditions imposed by the County. ARTICLE III COMPENSATION ON PERFORMANCE, AGREEMENT AMOUNT,CPI'S GUARANTEES AND PENALTIES 3.01 Operations and Disposal Fee. The County is currently paying the Operator an operations and disposal fee of $84.50 per ton of waste delivered to the Facility. The $84.50 per ton fee will retrain in effect through September 30, 2014. On October 1, 2014, and each October 1 thereafter, except as specified below, throughout the remaining term(s) of this Amended and Restated Monroe County Haul Out,Transfer Stations Operations and Maintenance Agreement, the operations and disposal fee shall be adjusted annually based on the Consumer P ric a Index depicted in Schedule B of t h i s Amended and Restated Monroe County Haul Out,Transfer Stations Operations and Maintenance Agreement 14i ' 3.02 Agreement Amount The COUNTY shall pay the Franchisee in current annual funds for the Franchisee's performance of this Agreement. Funding for years 1-10 are estimated as follows, which includes the estimated CPI as allowed and specified herein: Year 1 $7.11 Million Year 6 $7.47 Million Year 2 $7.11 Million Year 7 $7.66 Million Year 3 $7.29 Million Year 8 $7.66 Million Year 4 $7.29 Million Year 9 $7.85 Million Year 5 $7.47 Million Year 10 $8.05 Million Total Estimated Amount: $75.03 Million These numbers represent estimated numbers only, and are based on estimated quantities of materials and CPIU increases. Actual numbers are expected to vary. These estimates are not meant as a minimum or maximum amount to be guaranteed under this Agreement on behalf of either the County or the Franchisee. 3.03 Consumer Price Index(CPI)Increases For the purpose of the Agreement the residential portion shall be specified as 60% of the total tonnage of disposal. In the event the County conducts a solid waste audit, this percentage may be amended to reflect the results of the audit, at the discretion of the County.The parties agree that the CPI shall be allowed as follows: Years 2,4,6, and 8 No CPI increase shall be allowed on the residential portion of the disposal tonnage. A maximum of 4%CPI increase shall be allowed on the commercial portion of the disposal tonnage. Years 1, 3, 5,7,9, 10 CPI's are allowed on the residential and commercial portions of the disposal tonnage. A maximum of 2.5%CPI increase shall be allowed on the residential portion of the disposal tonnage. A maximum of 4%CPI shall be allowed on the commercial portion of the disposal tonnage, CPI increases are further subject to the limitations specified under 3.01.D below. In no event may a yearly per ton increase in the operations and disposal fee for the residential portion be greater than 2.5% of the prior year's per ton fee and for the commercial operations be greater than 4% of the prior year's per ton fee.The County shall calculate the adjustment of the Operations and Disposal Fee and notify the Operator of the change prior to October 1 of each year thereafter. The Operator shall have the right to review and agree to the calculation of the adjustment. SCREDULEB 92sr-92gi, ad Rh2eW, Es AdiaAms-at An annual adjustment,except as specified herein in paragtaph 3,01, shall be applied on October of every yeat to the Operations,and Disposal Fee. The adjustment shall be calculated in the fbilawing manuere 1)The following index is used to calculate the adjustment,. the change in the,index shall be calculated on as March 'i —Februaty 28 basis fot the preceding twelve month. INDEX Coav=ar Mee Index(CM),Nfiami/Fort Woad justed), A,ll Urban Consurnetvi All Items,, SOURCIE Ca as Price Index Detailed Repoa ublished Montbly by Bureau of Labor Statistics. (BLS) If the index becomes obsolete during the term of thL%coriftet,an alternative, related index may be used,as mutually agreed,upon between the Opaerator and the County, 37' 1 Extract of the Waste Management Recyclables Processing Contract and vehicle identification of each vehicle entering and exiting the Recyclables Facility Site and provide the Operator a duplicate copy or report of each weight record Issued. (c) The County shall operate and maintain the scales in compliance with this Agreement and all applicable state and local laws. The County shall test, or cause to be tested,the scales at least semiannually and if necessary rccalibrate such scales accordingly. Copies of the results of such test and any recalibration shall be provided to the Operator within► fifteen (15) days of the receipt of such records by the County.The Operator hereby reserves the right to have reasonable access to the scales and respective scale houses during all operating hours to monitor the County's compliance with the provisions of this Section 2.09.The Operator has the right to verify weight data and cause the scales to be tested at Operator expense at times other than the County's required semiannual test. If all weighing equipment is incapacitated or is being tested,the County shall estimate the quantity of material delivered on the basis of truck volumes and estimated data obtained from pertinent historical Information.These estimates shall take the place of actual weighing records during the period of the scale outage. 2.10 Storage-. Recyclables shall be placed in the storage area designed for that purpose. 2.11 RESERVED 2.12 F4Mi12mentPg&Wjz, The County shall designate areas at each Recyclables Facility Site which the Operator can exclusively use for the parking and storage of transfer trailers, transfer tractors,and other vehicles and equipment owned or used by the Operator for the purpose of-fulfilling the provisions of the Agreement.Any other vehicles Operator desires to park at a facility will be subject to the reasonable terms and conditions by the County. ARTICLE III COMPENSATION,FEES PERFORMANCE GUARANTEES AND PENALTIES 3.01 !;om jensation and Processing Fe e A.Compensation The COUNTY shall pay the Franchisee in current annual funds for the Franchisee's performance of this Agreement. Funding for years 1-10 are estimated as follows, which includes the estimated CP1 increases as allowed and specified herein: Year 1 $389,500 Year 6 $409,200 Year 2 $389,500 Year 7 $419,400 Year 3 $399,200 Year 8 $429,900 Year 4 $399,200 Year 9 $440,600 Year 5 $409,200 Year 10 $451,700 Total Estimated Amount:$4.14 Nfillion These numbers represent estimated numbers only, and are based on estimated quantities of materials and CPI increases. Actual numbers are expected to vary, These estimates are not meant as a minimum or maximurn amount to be guaranteed under this Agreement on behalf of either the County or the Franchisee. lUe County anticipates the tons of recyclable materials to substantially increase after delivery of the recycle carts to County residents, and theretbre the estimates listed above may substantially increase, B.Processing Fee The County is currently paying the Optottor a processing fee of$73,92 per too of recyclable materials delivered to the Facility. IU $73.92 per ton ke will remain in ef%ct through September all, 2014.On October 1, 2014, and each October I thereafter, except, as specified below, throughout the remaining term(s) of this Amended and Restated Monroe County Recyclables Agreement, the disposal fee shall be adjusted based on,dw Percentage change in the Monti/Ft. Lauderdale.411 Urban Consumen.411 Item Price Index published by the UhiteA States Department of Labor, Department of labor Statistics for the previous March I—February 28 time period.For years when a CPI is authorized,the Processing Fee shall be based on the percentage change in the Urban Consumer Price Index published by the United States Departmenit of Labor,Department of labor Statistics for the previous March 1—February 28 time period. CPI increases are authorized as follows: Years 2,4,and 6 No CPI Increase Authorized Yom 1,3,5,7,9,and 10 CPI Increases Authorized.Not to Exceed 2.5% Qj&gbale. The Operator shall pay the County a lurnp sum of$50,000 annually on October I D. Share of&ejLqguc The Operator shall provide 400A of the revenue from the sale of recyclable materials when the average market value is greater than or equal to$98/ton, Such payment shall be made quarterly to the County, and shall be based on the quarterly market average. The Operator shall provide an annual report and statement that indicates the number of tons of recyclable materials processed, the monthly market value,the rebate and share of revenue funds paid to the County. 3,02 03 At the end of each calendar month, the operator shall provide a billing statement In accordance with this provision. This statement shall set forth the total tonnage received at the Recyclables Facility Sites, according to the weight recorded and certified at the scales for the month then ended times the Processing Fee charged per ton in accordance with this Agreement Such statement shall be provided for the County not later than the fifteenth(I 5th) day of the month following the provision of the service.The County shall make its best effort to make payment with fifteen (IS) days following the receipt of such statement, but the County shall otherwise comply with the Local Government Prompt Payment Act 218.70,Florida Statutes.