Item U04 U.4
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: U.4
Agenda Item Summary #10809
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 Keys Sanitary Service (KSS) and
Monroe County Board of County Commissioners. The extraordinary rate adjustment as requested by
KSS on June 15, 2022 increases the collection rate by $2.39/unit/month to $21.32 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 a 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 Keys Sanitary Service
(KSS) request for an extraordinary rate adjustment based upon extraordinary increases in labor,
materials, and fuel costs 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 $21.32/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 KSS 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
10 MAY 2017 BOCC approved 2ad amendment to the contract
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U.4
21 SEP 2016 BOCC approved I" amendment to the contract
21 MAY 2014 BOCC approved the amended and restated franchise agreement with Keys
Sanitary Service
CONTRACT/AGREEMENT CHANGES:
Amendment to revise collection rates
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
Amendment 4 to the Franchise Agreement with KSS 7 7 2022
Amendment 4 with KSS Signed
FINANCIAL IMPACT:
Effective Date: August 1, 2022
Expiration Date: September 30, 2024
Total Dollar Value of Contract: $2,887,154.40
Total Cost to County: $323,653.80
Current Year Portion: $53,942.30
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 $53,942.30
REVIEWED BY:
Cheryl Sullivan Completed 07/12/2022 2:48 PM
Kevin Wilson Skipped 07/12/2022 2:56 PM
Christine Limbert Completed 07/12/2022 2:56 PM
Purchasing Skipped 07/12/2022 2:57 PM
Maria Slavik Skipped 07/12/2022 2:59 PM
Budget and Finance Completed 07/12/2022 3:00 PM
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U.4
Lindsey Ballard Completed 07/12/2022 3:27 PM
Board of County Commissioners Pending 07/20/2022 9:00 AM
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U.4.a
Amendment 4 to the Amended and Restated
Solid Waste and Recycling Collection Franchise Agreement
This Amendment to the Amended and Restated Solid Waste and Recycling Collection Franchise
Agreement dated May 21, 2014 is entered into this 201n day of July 2022 between Ted Carter
Enterprises, Inc dba Keys Sanitary Service ("KSS") and Monroe County Board of County Commissioners
("County" or"BOCC").
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WHEREAS, the County entered into the Amended and Restated Solid Waste and Recycling
Collection Franchise Agreement dated May 21, 2014(Franchise Agreement)with KSS for the period of
October 1, 2014 to September 30, 2024; and
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 E
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 101n CN
2017 (Amendment 2)to revise the agreement to allow for the CPI rate adjustments to utilize the cN
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 KSS' request for an extraordinary rate
adjustment and diesel fuel surcharge and directed staff to move forward with the requested rate
adjustment and allow for a periodic diesel fuel surcharge adjustment to be charged to commercial
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customers based upon the Franchisee's increased diesel fuel cost which will be reviewed by the Solid
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Waste Department staff on a quarterly, calendar basis;
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) o
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as follows:
1. Exhibit II shall be revised to adjust the Residential Collection Rates (per unit) for the Solid Waste E
Curbside Service (the Recycling rate remains unchanged) as follows:
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Residential Collection Rates(per unit)
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Services Curbside Service
Solid Waste $16.99 (2x/wk)
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U.4.a
Recycling $4.33 (1x/wk)
2. The Residential Collection Rates in Exhibit II, as revised in paragraph 1. above, shall be effective
August 1, 2022, and shall NOT be adjusted by the residential CPI for fiscal year 2022-2023 (year 9 of the
contract).
3. In accordance with paragraph H.- Diesel Fuel Surcharge of the Franchise Agreement, effective
August 1, 2022,the County authorizes the Franchisee to charge commercial customers a periodic diesel
fuel surcharge which will be based upon the Franchisee's increased diesel fuel cost above the "base fuel
price".The Monroe County Board of County Commissioners authorizes and directs that the Solid Waste
Department shall review the diesel fuel surcharge on a quarterly, calendar basis and adjust the periodic E
diesel fuel surcharge authorized to be charged to commercial customers 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.
4. The remaining terms of the Franchisee Agreement, as amended, remain in full force and effect.
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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. C14
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(SEAL) BOARD OF COUNTY COMMISSIONERS
Attest: KEVIN MADOK, Clerk OF MONROE COUNTY, FLORIDA
By: By:
As Deputy Clerk Mayor
Attest: Keys Sanitary Service
By: By:
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Secretary John Edwin Carter Jr.
President
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U.4.b
Amendment 4 to the Amended and Restated
Solid Waste and Rey rcl'ing Collection Franchise Agreement
This Amendment to the Amended and Restated Solid Waste and Recycling Collection Franchise
Agreement dated May 21, 2014 is entered into this 201h day of July 2022 between Ted Carter
Enterprises, Inc dba Keys Sanitary Service ("KSS") and Monroe County Board of County Commissioners
("County" or"BOCC").
0
WHEREAS,the County entered into the Amended and Restated Solid Waste and Recycling
Collection Franchise Agreement dated May 21, 2014 (Franchise Agreement)with KSS for the period of
October 1, 2014 to September 30, 2024; and
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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 E
WHEREAS,the County entered into Amendment 2 to the Franchisee Agreement dated May 10`"
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 U)
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 KSS' request for an extraordinary rate
adjustment and diesel fuel surcharge and directed staff to move forward with the requested rate
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;
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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:
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1, Exhibit II shall be revised to ad ust the Residential Collection...Rat 1per unit) for the Solid Waste
Curbside Service (tire Recycling rate remains unchanged) as follows:
Residential Collection Rates(per unit)
Services Curbside Service
Solid Waste $16.99 (2x/wk)
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U.4.b
Recycling I $4.33 (1x/wk)
2. The Residential Collection Rates in Exhibit II, as revised in paragraph 1. above, shall be effective
August 1, 2022, and shall NOT be adjusted by the residential CPI for fiscal year 2022-2023 (year 9 of the
contract).
3. In accordance with paragraph H.- Diesel Fuel Surcharge of the Franchise Agreement, effective E
August 1, 2022,the County authorizes the Franchisee to charge commercial customers a periodic diesel
CD
fuel surcharge which will be based upon the Franchisee's increased diesel fuel cost above the "base fuel
price".The Monroe County Board of County Commissioners authorizes and directs that the Solid Waste
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 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.
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4. The remaining terms of the Franchisee Agreement, as amended, remain in full force and effect.
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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.
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(SEAL) BOARD OF COUNTY COMMISSIONERS
Attest: KEVIN MADOK, Clerk OF MONROE COUNTY, FLORIDA
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By:,......... ...... .................. Ry:_.................--........a.........w �
As Deputy Clerk Mayor
Attest: Keys Sanitary Serve `
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ecr ary ohn Edwin Carter Jr
President �
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MONR.OE COUNTY ATTORNEY
g PPR V.�.D 0.S TO FO
ICHRISTINE L 3 R ARROWS
ASSISTANT COUNTY ATTORNEY
DATE...._._7.L81..22......................._ t 3
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