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
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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.,
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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
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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.
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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.