Item U05 U.5
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.5
Agenda Item Summary #10815
BULK ITEM: Yes DEPARTMENT: Solid Waste
TIME APPROXIMATE: STAFF CONTACT: Cheryl Sullivan (305) 292-4536
N/A
AGENDA ITEM WORDING: Approval of Amendment 3 to the Amended and Restated Solid
Waste and Recycling Collection Franchise Agreement between Waste Management Inc. of Florida
(WM) and Monroe County Board of County Commissioners. The extraordinary rate adjustment as
requested by WM on June 15, 2022 increases the collection rate by $1.95/unit/month to $21.92 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 Waste Management Inc. of Florida(WM), 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 $21.92/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 WM 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 2nd amendment to the contract
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U.5
21 SEPT 2016 BOCC approved 1 st amendment to the contract
21 MAY 2014 BOCC approved the amended and restated franchise agreement with Waste
Management of Florida
CONTRACT/AGREEMENT CHANGES:
Amend Solid Waste and Recycling Collection Agreement
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
Amendment 3 to Franchise Agreement with WM 7 2022-signed
FINANCIAL IMPACT:
Effective Date: August 1, 2022
Expiration Date: September 30, 2024
Total Dollar Value of Contract: $3,194,094.72
Total Cost to County: $284,146.20
Current Year Portion: $47,357.70
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 $47,357.00
REVIEWED BY:
Cheryl Sullivan Completed 07/08/2022 3:32 PM
Kevin Wilson Completed 07/11/2022 3:45 PM
Christine Limbert Completed 07/11/2022 3:54 PM
Purchasing Completed 07/11/2022 3:56 PM
Budget and Finance Completed 07/12/2022 2:44 PM
Maria Slavik Completed 07/12/2022 2:45 PM
Lindsey Ballard Completed 07/12/2022 3:28 PM
Board of County Commissioners Pending 07/20/2022 9:00 AM
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Amendment 3 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
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Agreement dated May 21,2014 is entered into this 20th day of July 2022 between Waste Management
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Inc.of Florida ("WM")and Monroe County Board of County Commissioners("County"or"BOCC").
WHEREAS,the County entered into the Amended and Restated Solid Waste and Recycling
Collection Franchise Agreement dated May 21, 2014(Franchise Agreement)with WM 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
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 Inc.of Florida, 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 19,
2021 (Amendment 2)to revise the commercial rates to be uniform amongst the Franchisees and to 3,
revise notification provisions to commercial customers; and
WHEREAS,on June 15, 2022,the BOCC considered WM's request for an extraordinary rate
adjustment and diesel fuel surcharge and directed staff to move forward with the requested rate CN
adjustment and allow for a periodic diesel fuel surcharge adjustment to be charged to commercial N
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;
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 Il shall be revised to adiust the Residential Collection Rates(per unit)for the Solid Waste
Curbside Service(the Recycling rate remains unchanged as follows:
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Residential Collection Rates(per unit)
Services Curbside Service o
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Solid Waste $17.42 (2x/wk)
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Recycling $4.50 (ix/wk)
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2. The Residential Collection Rates in Exhibit II,as revised in paragraph 1. above,shall be effective E
August 1, 2022, and shall NOT be adjusted by the residential CPI for fiscal year 2022-2023(year 9 of the
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contract).
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3. In accordance with paragraph H.W 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
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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 E
the Franchisee's increased diesel fuel cost for the previous quarter or until the fuel costs are at or below
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the"base fuel price", as defined in paragraph H. E
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.
(SEAL) BOARD OF COUNTY COMMISSIONERS
Attest: KEVIN MADOK,Clerk OF MONROE COUNTY,FLORIDA
By: By: a)
As Deputy Clerk Mayor 2
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Waste Management Inc.of Florida CD
4Lirident David Myhan,President
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