HomeMy WebLinkAbout2016 ModificationFIRST AMENDMENT TO FRANCHISE AGREEMENT
This First Amendment to Franchise Agreement ("Amendment') is hereby
made and entered into this 11th day of May, 2016, between CITY OF SEBASTIAN,
FLORIDA, ("City") and Waste Management Inc. of Florida, a Florida corporation, whose
address is 2700 Wiles Road, Pompano Beach, FL 33073 ("Franchisee").
WITNESSETH
WHEREAS, the City and Franchisee are parties to that certain Franchise
Agreement dated June 12, 2013, for the provision of solid waste services within the City
(the "Agreement'); and
WHEREAS, the parties desire to amend Section 13.22 of the Agreement regarding
a compressed natural gas fueling station and to add a commercial recycling promotional
campaign to the Agreement; and
WHEREAS, the parties agree that the amendments are desirable and in the best
interests of the City and its residents.
NOW, THEREFORE, in consideration of the mutual promises and agreements
contained herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the City and the Franchisee agree as follows:
Section 13.22 Compressed Natural Gas Fueling Station is deleted and replaced
with the following:
Franchisee shall contribute to the City Forty Thousand Dollars ($40,000.00) to be
used by the City for investment in a compressed natural gas fueling station or for
such other purpose as the City may determine is necessary or desirable. Payment
of such amount shall be made on or before August 1, 2016.
2. New Section 13.23 Commercial Recycling Campaign is added as follows:
Franchisee will develop a promotional campaign to encourage businesses in the
City to recycle. The promotional campaign shall commence May 1, 2016 and
continue through August 31, 2016. Mechanical container (dumpster) recycling
program will be available to all commercial businesses within City with container
size of 2 or 4 yards serviced 1 x or 2x per week as appropriate for the specific
commercial business. The promotional campaign will be promoted through inserts
in invoices to current commercial customers, City Council meetings, City website
and City TV, and other events. The first three months of commercial recycling will
be without charge to the commercial customer provided that the customer signs up
for same by August 31, 2016.
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HOME OF PELICAN 1"N0 CITY COUNCIL AGENDA TRANSMITTAL FORM
Council Meeting Date: 11 May 2016
Agenda Item Title: Waste Management Franchise Agreement
Recommendation: Consider Waste Management's First Amendment to Franchise
Agreement.
Back",rouod: At the 13 April 16 Council meeting, Waste Management (WM)
presented a proposal for a Franchise Agreement Modification.
Section 13.22 of the Agreement is the subject matter of a possible
modification. The proposed First Amendment to the Agreement is
in Attachment 3.
If Agenda Item Requires Expenditure of Funds: N/A /�
Administrative Services Department/CFO Review: CJS l °�--
Attachments: 1. Franchise Agreement b/t the City and Waste Management
2. Proposed Franchise Agreement Modification April 2016
3. First Amendment to Franchise Agreement
City Manager Authorization:
Date: 04 May 2016
Exhibit "A"
City of Sebastian - Solid Waste Franchise
Sebastian Effective 7/112013
F R E Q U E N C Y
!Includes Container Service Chamel
6% Franchise Fee Included In all charges
3.45 Billed Cubic Yard
0.00. Billed Loose Yard
0.00 fuel Surchame per A=unURale adiustment Procedure
13.60 Billed Cubic Yard Compactor (Harris Same) FEL Compactors
8.00 Billed extra pickup per FEL cubic yard
24.00 Billed extra pickup per FEL compactor cubic yard
COMMERCIAL CART RATE TO CUSTOMER- WASTE MANAGEMENT. BILLED:
One Cart 2x Wk Each Addl'I Cart
96 Gallon $15.90 $15.90
RESIDENTIAL RATES TO CUSTOMER- WASTE MANAGEMENT- BILLED:
Additonal Can
WM 36 Gallon Cart - Option
rates
Container
Ceiling Pull Service
Rolloff Service Rate Charge
15 Yard Open Top Per Pull
1
2
3
4
5
6
Container
Service
XPU
2
46.38
7628
106.18
136.08
165.98
195.88
16.46
16.00
3
61.33
106.18
151.03
195.88
240.73
285.58
16.48
24.00
4
76.28
136.08
195.68
255.68
315.48
375.28
16A8
32.00
6
106.18
195.88
285.58
375.28
464.98
554.68
16.46
48.00
8
136.08
255.68
375.28
494.88
614.48
734.08
16.48
64.00
6% Franchise Fee Included In all charges
3.45 Billed Cubic Yard
0.00. Billed Loose Yard
0.00 fuel Surchame per A=unURale adiustment Procedure
13.60 Billed Cubic Yard Compactor (Harris Same) FEL Compactors
8.00 Billed extra pickup per FEL cubic yard
24.00 Billed extra pickup per FEL compactor cubic yard
COMMERCIAL CART RATE TO CUSTOMER- WASTE MANAGEMENT. BILLED:
One Cart 2x Wk Each Addl'I Cart
96 Gallon $15.90 $15.90
RESIDENTIAL RATES TO CUSTOMER- WASTE MANAGEMENT- BILLED:
Additonal Can
WM 36 Gallon Cart - Option
rates
Container
Ceiling Pull Service
Rolloff Service Rate Charge
15 Yard Open Top Per Pull
$192.73
$99.00
20 Yard Open Top Per Pull
$192.73
$99.00
30 Yard Open Top Per Pull
$192.73
$99.00
40 Yard Open Top Per Pull
$192.73
$99.00
20 Yard or less COMPACTION Containers Per Pull
$192.73
$120.00
21 to 40 yard COMPACTION containers Per Pull
$192.73
$120.00
ABOVE RATES ARE SUBJECT TO ADDITIONAL LANDFILL FEES
Minimum one haul per month, no container service charge
City of Sebastian
Solid Waste Franchise Agreement Modification Outline
April 2016
W�
WASTE MANAGEMENT
City of Sebastian
Franchise Agreement Modification
April 2016
Commercial Recycling Promotional Campaign: Recycle '161
a. WM will develop a promotional campaign to encourage city businesses to recycle
I. Promotion timeframe: May 1, 2016 — July 31, 2016
ii. Mechanical container (dumpster) recycling program available to all commercial
businesses within City of Sebastian corporate limits
1. Container size of 2 or 4 yards serviced 1x or 2x per week
iii. Campaign promoted through WM commercial bill inserts, City Council meetings, City
website, City TV, City Shredding and E -Recycling event and Community Clean Up
iv. First three months of commercial recycling service is free (must sign up by July 31,
2016)
v. Recycle '161 rates after 3 -months free promotion
1. 2 -cubic yard container, serviced 1x per week= $10.16 per month
2. 2 -cubic yard container, serviced 2x per week = $21.16 per month
3. 4 -cubic yard container, serviced 1x per week = $21.16 per month
4. 4 -cubic yard container, serviced 2x per week = $43.16 per month
a. Pricing rates to adjust by 10% starting January 1, 2017
vi. Waste stream and service level evaluation from WM commercial account manager to
determine right sizing of garbage containers and potential cost savings for business
through instituting recycling
H. Investment of $40,000 for Sebastian CNG Fueling Station
a. WM to provide $40,000 for city investment in CNG fueling station
I. Engineering consultation on construction from WM engineer
ii. City will initiate natural gas service to fueling unit with Florida City Gas
iii. Waste Management will purchase fuel from this station as needed to fuel its vehicles
(annual volume TBD)
III. Continued City Event and Community Partnership
a. WM to continue its partnership with city events providing in-kind solid waste services
b. W M/Sebastian Community Shredding and E -Recycle Event, April 23, 2016
c. WM/Sebastian Community Clean Up Day, April 23, 2016