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HomeMy WebLinkAbout2024 First AmendmentFIRST AMENDMENT TO FRANCHISE AGREEMENT THIS FIRST AMENDMENT TO FRANCHISE AGREEMENT is hereby made this 24th day of July 2024 and entered into by and between the City of Sebastian ("CITY"), a municipal corporation organized and existing under the laws of the State of Florida, and WASTE MANAGEMENT INC. OF FLORIDA, a Florida corporation ("FRANCHISEE"), who, for the considerations contained herein, agree as follows: WITNESSETH WHEREAS, the CITY and FRANCHISEE entered into a Franchise Agreement dated April 12, 2023 (the "Franchise Agreement"), pursuant to which the FRANCHISEE would perform certain solid waste and recycling services; and WHEREAS, the CITY and FRANCHISEE desire to amend the Franchise Agreement underthe terms as setforth below in this FirstAmendment to Franchise Agreement (the "First Amendment"); and WHEREAS, the Parties find that it is appropriate to enter into an Amendment to the original agreement for such purposes. NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, the Parties hereby agree as follows: 1. Section 9.0 Residential Solid Waste Collection Service Rates is deleted and replaced with the following: The total rate per Residential Unit for Residential Solid Waste Collection Service charged by the Franchisee shall be $16.25 per month as of October 1, 2024, as depicted in the rate schedule attached hereto and marked Exhibit "A". The foregoing is the total rate that may be charged by the Franchisee to the City for Residential Solid Waste Collection Service and it shall include all collection costs, disposal costs, and all other fees and expenses. Notwithstanding the foregoing, the Franchisee and the City acknowledge and agree that the total rate for Residential Solid Waste Collection Service is subject to adjustment as set forth in this Agreement. The rate of $16.25 per home will remain unchanged, however, until September 30, 2027. The first increase to the Residential Solid Waste Collection Service rate shall take place as of October 1, 2027, and be based upon the increase in CPI (as per Section 12.0). 1 2. Section 13.26. Scholarship is hereby added to the Agreement as follows: Section 13.26. Scholarship The FRANCHISEE will provide an annual contribution to the CITY in the amount of TWENY FIVE THOUSAND DOLLARS ($25,000.00) for scholarships for graduating high school students or other similar use that the City determines is in the public interest. This amount shall be payable by FRANCHISEE on May 1, 2025, and on or before every July 1 thereafter through the end of the Agreement term. CITY shall award same within appropriate criteria as determined solely by CITY. 3. A new Exhibit "A" is attached hereto and made a part hereof. 4. Except as modified herein, the original Franchise Agreement shall remain in full force and effect. To the extent that a term of the original agreement is in conflict herewith, this Amendment shall supersede and apply. 5. This First Amendment to Franchise Agreement shall be effective September 30, 2024. ATTEST: Z WASTE MANAGEMENT INC. OF FLORID By:�all David Myhan, Presiden ATTEST: CITY OF SEBASTIAN By: � W By: �� J nette Williams, City Clerk Mayor Ed Dodd APPROVED AS TO FORM AND LEGALITY Lnnifer Cockcroft %City Attorney ra Exhibit "A" City of Sebastian - Solid Waste Franchise 6 % Franchise Fee Included in all Commercial charges Sebastian Effective 101112024 Commercial Non-Compactod Yardage - Detail Prcinq Pickups per Week 5 6 XPU 222.60 $ 265.59 S 76.34 445.19 S 531.18 5 81.80 667.80 S 767.33 S 87.25 890.39 S 1.062.37 S 92.70 1,335.69 S 1,593.64 S 98.15 E748.9d $1,780.79 $2,124.73 103.61 Commercial Compacted Yardage -Detail Pricing Pickups per Week I Size I 1 2 I 3 1 4 5 6 J XPU 2 YD Comp $188.67 $376.42 $564.63 $752.84 $941.05 $1,129.2GI 81.60 2 3 4 Size 1 1-Cubic Yard $ 50.63 $ 2-Cubic Yard S 101.25 $ 3 - Cubic Yard S 151.88 $ 4-Cubic Yard S 202.50 $ 6-Cubic Yard S 303.77 S 8-Cubic Yard $405.02 COMMERCIAL SOLID WASTE CART AND ROLLOUT RATE - DETAIL PRICING Pickups per Week Size 1 2 3 4 5 6 XPU 96 Gallon Can $ 38A7 $ 76.34 S 114,51 $ 152.68 S 190.86 NIA S is 81.60 64 Gallon Cart $ 38.17 5 76.34 5 114.51 S 152.68 S 190.86 N/A S 81.80 Rollout Service $ 16.36 $ 16.36 5 16.36 S 16.36 S 16.36 N/A 16.36 ROLLOFF SOLID WASTE OPEN TOP Cf1NTAINERS -DETAIL PRICING Container IS/IE Pull Rate Service Chargye 115 Yard Open Top $441.69 5155.841 120 Yard Open Too $441.69 $155.841 130 Yard Open Top $441.69 $155.841 40 Yard Open Top $441.69 1 $155.841 OVE RATES ARE SUBJECT TO ADDITIONAL LANDF LL FEES ROLLOFF SOLID WASTE COMPACTOR: - DETAIL PRICING Container Ia/2E Pull Rate Service Charya 117 Yard Compactor $441.69 $155.84I 120 Yard Compactor $441.69 $155.84 130 Yard Compactor $441.69 $155.841 Yard Compactor $441.69 $155.841 I40 Additional Compactor Sizes not noted above 5441.69 $155.841 RESIDENTIAL RATES - DETAIL PRICING On -Call Bulk Waste, White Garbage 1x Yard Trash 1x Goods Total Family Home+- ISingle Curbside $16.25 $0.00 $0.00 $16.25 $ I 96 Gallon Cart - Default 1 64 Gallon Cart -O lion 36 Gallon Can - Option _ I Multi -Dwelling (five (5) or more Units) - Curbside $16.25 $0.00 $0.00 516.25 $ 96 Gallon Cart -Default ( 64 Gallon Cart - Oglion I 36 Gallon Cart - O��lion I I+ Duplex. Triplex. Quadolex (Additional Cart Lost CartlCustomer Abuse Cha7c Note: Handicap "backdoor service of above rates. No additional cosf. $67.451 $67.451 Additonal Cart Quarterly Quarterly 48.75 NIC 48.75 NIC 7/15/2024 6:17 PM City of Sebastian CPI October 2024 v.1 Page 1 Bureau of Labor Statistics CPI for All Urban Consumers (CPI-U) Original Data Value For the City of Sebastian Series Id: CUUR0300SAO.CUUS0300SA0 Not Seasonally Adjusted Series Title: All items in South urban, all urban consumers. not seasonally adjusted Area: South Item: All items Base Period: 1982-84=100 Years: 2014 to 2024 Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Doc Annual HALF1 HALF2 2014 227.673 228.664 230.095 231,346 231.762 232.269 232.013 231.611 231.762 231.131 229.845 228.451 230.552 230.302 230.802 2015 226.855 227.944 229.337 229.957 230.886 232.026 231.719 231.260 230.913 230.860 230.422 229.581 230.147 229.501 230.793 2016 229.469 229.646 230.977 231.975 232.906 233.838 233.292 233.561 234.069 234.337 234.029 234.204 232.692 231.469 233.915 2017 235.492 236.052 236.154 236.728 236.774 237.346 236.942 237.892 239.649 239.067 238.861 238.512 237.456 236.424 238.487 2018 239.772 241.123 241.595 242.486 243.279 243.770 243.776 243.605 243.640 244.163 243.484 242.150 242.737 242.004 243.470 2019 242.547 243.856 245.554 246.847 246.667 246.515 247.250 246.953 246.891 247.423 247.385 247.289 246.265 245,331 247.199 2020 248.005 248.412 248.136 246.254 245.696 247.223 248.619 249.639 250.193 250.542 250.255 250.693 248.639 247.288 249.990 2021 252.067 253.386 255.319 257.207 259.343 261.668 263.013 263.728 264.593 267.160 268.360 269.263 261.259 256.498 266.020 2022 271.634 274.688 278.598 279.879 283.307 287.427 287.608 287.168 287.656 288.836 288.991 288.205 283.666 279.256 288.077 2023 290.438 292.285 293.358 295.315 295.889 296.789 297.279 298.975 299.657 299.394 298.930 298.754 296.422 294.012 298.832 2024 300.421 303.144 304.490 305.104 305.296 305.357 303.969 Index Change = 8.568 CPI Change = 2.89% CPI Max 3% = 3.00% CPI Applied = 2.89% Source: Bureau of Labor Statistics Generated on: July 20, 2021 (07:25:21 AM) CITY COUNCIL AGENDA TRANSMITTAL Council Meeting Date: July 24, 2024 Agenda Item Title: Consideration of First Amendment to the Franchise Agreement between the City of Sebastian and Waste Management Inc. of Florida Recommendation: Staff recommends approval of the First Amendment to the Franchise Agreement between the City of Sebastian and Waste Management Inc. of Florida and authorize the Mayor to execute the Amendment. Background: The City of Sebastian and Waste Management Inc. of Florida (WM) entered into a Franchise Agreement on April 12th, 2023 which went into effect on July 1 st, 2023. Since the inception of the agreement there have been some changes in the local market and City Council asked staff to have discussions with WM in regards to our franchise agreement. Following several meetings, WM provided the City with this First Amendment which will reduce the monthly rate for our residents as well as keep the rate unchanged until September 30, 2027. The amendment also provides the City with $25,000 for scholarships, for graduating high school seniors within the Community. If Agenda Item Reuuires Expenditure of Funds: Budgeted Amount: N/A Total Cost: N/A Funds to Be Utilized for Appropriation: N/A Attachments: 1. Amendment to Franchise Agreement 2. Amended Exhibit A Administrative Services Dep en City Attorney Review Procurement Division ew, if applicable: City Manager Authorization: Date: NI4-