Item C26 C.26
Coty f � ,�� ,' BOARD OF COUNTY COMMISSIONERS
�� Mayor David Rice,District 4
The Florida Keys � Mayor Pro Tem Craig Cates,District 1
y Michelle Coldiron,District 2
James K.Scholl,District 3
Ij Holly Merrill Raschein,District 5
County Commission Meeting
July 20, 2022
Agenda Item Number: C26
Agenda Item Summary #10812
BULK ITEM: Yes DEPARTMENT: Solid Waste
TIME APPROXIMATE: STAFF CONTACT: Cheryl Sullivan (305) 292-4536
N/A
AGENDA ITEM WORDING: Approval of Amendment 4 to the Amended and Restated Solid
Waste and Recycling Collection Franchise Agreement between Marathon Garbage Services, Inc.
(MGS) and Monroe County Board of County Commissioners. The extraordinary rate adjustment as
requested by MGS on June 15, 2022 increases the collection rate by $2.45/unit/month to $21.31 per
unit per month, effective August 1, 2022 and shall not be adjusted by the residential CPI for fiscal
year 2022-2023. This Amendment also authorizes the Franchisee to charge diesel fuel surcharge to
commercial customers effective August 1, 2022 in an amount determined by the Solid Waste
Department per the contract.
ITEM BACKGROUND:
On June 15, 2022 the BOCC considered Marathon Garbage Services, Inc. (MGS) request for an
extraordinary rate adjustment based upon extraordinary increases in labor, materials, and fuel cost
and a diesel fuel surcharge to be charged to commercial customers based upon increased diesel fuel
cost.
BOCC directed staff to move forward with the requested rate adjustment to the residential collection
rate to $21.31/unit/month, which will be effective August 1, 2022. The residential collection rate will
not be adjusted by the consumer price index (CPI) for fiscal year 2022-2023 (year 9 of the contract).
This Amendment amends the Franchise Agreement to adjust the residential collection rate.
This Amendment also authorizes MGS to charge a diesel fuel surcharge to commercial customers
effective August 1, 2022, due to increased diesel fuel prices. The Solid Waste Department as
authorized and directed by the BOCC shall review and adjust the diesel fuel surcharge to be charged
to commercial customers on an calendar quarterly basis based upon the Franchisee's increased diesel
fuel cost for the previous quarter or until the fuel costs are at or below the "base fuel price", as
defined in paragraph H of the Franchise Agreement.
PREVIOUS RELEVANT BOCC ACTION:
19 MAY 2021 BOCC approved 3rd amendment to the contract
Packet Pg.406
C.26
10 MAY 2017 BOCC approved 2nd amendment to the contract
21 SEP 2016 BOCC adopted I"Amendment to the contract
21 MAY 2014 BOCC approved the amended and restated franchise agreement with Marathon
Garbage Service.
CONTRACT/AGREEMENT CHANGES:
Amendment to Solid Waste and Recycling Coillection Agreement
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
Signed July 2022 220701_Amendment4_MGS_SIGNED REV
FINANCIAL IMPACT:
Effective Date: August 1, 2022
Expiration Date: September 30, 2024
Total Dollar Value of Contract: $2,381264.64
Total Cost to County: $273,772.80
Current Year Portion: $45,628.80
Budgeted: No-FY22; Yes FY23
Source of Funds: non ad valorem special assessment
CPI: N/A
Indirect Costs: N/A
Estimated Ongoing Costs Not Included in above dollar amounts: N/A
Revenue Producing: N/A If yes, amount:
Grant: N/A
County Match: N/A
Insurance Required: N/A
Additional Details:
07/20/22 414-40000 - SOLID WASTE ADMIN $45,628.80
REVIEWED BY:
Cheryl Sullivan Completed 07/05/2022 3:52 PM
Kevin Wilson Completed 07/05/2022 4:12 PM
Christine Limbert Completed 07/05/2022 5:16 PM
Purchasing Completed 07/05/2022 5:17 PM
Budget and Finance Completed 07/05/2022 5:18 PM
Packet Pg.407
C.26
Maria Slavik Completed 07/05/2022 5:19 PM
Lindsey Ballard Completed 07/05/2022 5:20 PM
Board of County Commissioners Pending 07/20/2022 9:00 AM
Packet Pg.408
C.26.a
Amendment 4 to the Amended and Restated
Solid Waste and Recycling Collection Franchise Agreement
vs
This Amendment to the Amended and Restated Solid Waste and Recycling Collection Franchise
Agreement dated May 21,2014 is entered into this 201'day of July 2022 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 E
Collection Franchise Agreement dated May 21,2014(Franchise Agreement)with MGS for the period of
October 1,2014 to September 30,2024;and E
WHEREAS,the County entered into Amendment 1 to the Franchise Agreement dated
September 21,2016(Amendment 1)to adjust the Consumer Price Index(CPI)from the CPI for All Urban
Consumers(CPIU)to the Miami/Ft. Lauderdale Urban Consumers All items Price Index so that the rate
adjustments would correspond to the Amended and Restated Haul Out,Operation and Maintenance
Agreement with Waste Management of Florida, Inc.dated May 21,2014(Haul Out Agreement)which
utilized the Miami/Ft.Lauderdale CPI;and
WHEREAS,the County entered into Amendment 2 to the Franchisee Agreement dated May loth,
2017(Amendment 2)to revise the agreement to allow for the CPI rate adjustments to utilize the
Miami/Ft. Lauderdale CPIU rather than the national CPIU;and >
WHEREAS,the County entered into Amendment 3 to the Franchisee Agreement dated May 19, >
2021(Amendment 3)to revise the commercial rates to be uniform amongst the Franchisees and to
revise notification provisions to commercial customers;and
WHEREAS,on June 15,2022,the BOCC considered MGS'request for an extraordinary rate to
I
adjustment and diesel fuel surcharge and directed staff to move forward with the requested rate to
adjustment and allow for a periodic diesel fuel surcharge adjustment to be charged to commercial
customers based upon the Franchisee's increased diesel fuel cost which will be reviewed by the Solid
Waste Department staff on a quarterly,calendar basis;
E
NOW THEREFORE,in consideration of the promises and the mutual obligations undertaken herein,the
parties hereby agree that Exhibit II shall be amended to revise the Residential Collection Rates(per unit)
as follows:
1. Exhibit II shall be revised to adiust the Residential Collection Rates(per unit)for the Solid Waste N
N
Curbside Service(the Recycling rate remains unchanged)as follows: cv
cN
cN
Residential Collection Rates(per unit) 21
Services Curbside Service
P
Solid Waste $16.97 (2x/wk)
Recycling $4.34 (ix/wk)
E
1 �
Packet Pg.409
E
2, The Residential Collection Rates in Exhibit 11, as revised in paragraph 1. above, shall'! be effective 0
August 1, 2022,and shall NOT be adjusted by the residential CPI for fiscal year 2022-2023 (year it of the U
contract).
U-
3, In accordance with paragraph H.- Diesel Fuel Surcharge of the Franchise Agreement, effective
August 1, 2022„ the County authorizes the Franchisee to charge cornmercial customers a periodic diesel E
fuel surcharge which will be based upon the Franchisees increased diesel::fuel cost above the "base fuel
price".The Monroe County Board of County Commissioners,aUthori7es and directs that the Solid Waste E
Department shall review the diesel fuel surcharge on a quarterly,calendar basis and adjUSt the periodic
diesel fuel surcharge authorized to be charged to commercial customers based upon the Franchiisee's
increased diesel fuel cost for the previous quarter or until the fuel costs are at or below the "base fuel
0
price", as defined in paragraph H, a
0
4r, -The remaining terms of the Franchisee Agreement,as amended, 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.
0
(SEAL) BOARD OF COUNTY COMMISSIONERS 2A
Attest: KEVIN MADOK, Clerk OF MONROE COUNTY, FLORIDA
By: W
As Deputy Clerk Mayor
W
Z
Attest: Marathon Garbage Services, Inc.By 0
By:_-�
Taylor Konrath,Treasurer Ronald G. Konrath I Zr
President 0)0)
E
E
MONROE COUNTY ATTORNEY
PPR U.}DASTOFOR Q
Z�rl
CHRISTINE LIMBERT-BARROWS Q
ASSISTANT COUNTY ATTORNEY C14
DATE 7/8/22
C14
C14
C14
Q
C14
21
P
(n
E
2
Packet Pg. 410