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Home My WebLink About07/26/20021225 Main Stxeet [3 Sebasti~n, Flo=i~a 32958 Telephone 1772} 559-5330 ~ Fax i7721 559-5570 City CounCil information Letter July 26, 2002 attached letter as compiled and delivered by Ms. Rebecca Aviation please find the ncm a grant award from the Aviation Matching Grant Rivett, Aviation Coordinator, Florida Department of Transportation e costs associated with the Section, anO°,.ug O0 to help financ - Munlclpa~ Airport · · m the SebaStian. Boulevard program wuu, A This program will also help set the precedence for operat,?s wor s compoug, d aforementioned uture · Joint pa~idpation Agreement Triangle to a more ._ _.,~. ~ authorization ~f ~ ,_. ¢~, council Meeting structure. 9ons,?erat~o- ~;~r August 14'" ~egu'~..~;~,. to address any · ,, ~= scheduled via yo. ?' ~- ~i~off D[re¢or jason w.L~....¢lative to th~s proposmu- Ageno~- ~ ~ ..... -s.~ou may n~ · questions 8~d/Of COnU~"' ~ Se~ices Enclosed are your personal copies for Solid Wast~l~°ilecti°n workshop scheduled to take place Wednesday Julybeginning ¢ 6:00 ed numerous issues are likely to be addressed, - ~ A orevtousty repo~ ' -:-~ fe coJ~ection options, timeframes vis-~- ~"'" , ~;-,;ce nrovision aynam~u~, __e agreement(s) and the namely suer, vis the eff~stJng and potentially revised franchise coile¢ion a¢ivities. This session o~uni~ for Ci~ Counci~ to offer dire¢on regarding prospe¢ of franchise fees for commercial wiJl provide an ~,. o.~icu~arly consideration of a policy to implement _~.~., ~ se~lce. Sub~t ...... ., ~r chise agreement specific arrangemu-.~, ,-- · antive background information mandatoW or non-m~,~%~'%~ ket includes me cu,.~.---ananal¢caJ regoff Cached with the agenu¢ ~c expire June 30, 2003, with CapRa~ SanRation, scheduled to City Council Information Letter July 26, 2002 Page 2 outlining the cost and benefits relative to non-mandatory versus mandatory · , II as a formal recommendation to discuss waste coltect, on,. as.._w~e.~/,,r nonexclusive franchising for co~m_m_,.e.r~l~ imolement~ng exc~us.w~u ~_~,_~,~,.~ p~ Waclner Mark Mason, ~u,y ,,,,, service. Please feel tree to uu,,L~,., ....you require addifiona[ and/or myself prior to next week's meeting should information and/or clarification. Please find the attached memorandum as compiled and delivered by Director of Public Works Terry Hill relative to the status of the Schumann Lake Boat Ramp. I am pleased to report that the ramp installation phase of the overall Schumann Lake improvement Program has recently been completed by Randall Tedder Construction, inc., and therefore is now available for pub[ic use. Hours of operation will be commensurate with those of all park facilities, before sunrise until 10:00 p.m. each day. Enctosure(s): Letter from Rebecca Rivett - FDOT Aviation Section Memorandum from Terry Hill - Schumann Lake Boat Ramp Agenda Packets - Solid Waste Coiled(ion Services Workshop My Documents/InfoLetter142 GOYERNOR Florida Department of Transportation { Ju%¥ 23, 2002 Mr. Jason Miiewskl Airport Manager Sebastian M~nicipal Airport 1225 Main Street Set~astian, FL 32958 Dear Mr. Milewski: Subject: ~in. P~J- No.: Goun~: 412582-1-94'01 indian River Construct Administration Building Oescrip~o~: The copieS of a Joint Participation Agreement (JPA) for the subject project. ~hare amounting to $333,S00,00. Enclosed are six (6) $667,000.00 with the State's ~nding processing. The sixth copy total project amount is Five (5) copies are to t~e signed and returned to this o~ce for ~urt~er may be retained for your flies unti! the JPA has been fully exec.,~ed, · . ' ' i~al signatures, authorizing the signing ~ ~.,_ fox ,- oies of a Resalut~or,, ~ otiS_. ~.~ nmnal signature documents or · .0 O' ' We will atso neeo ~w_v .?~,_~. wions ar~ Agreements mu~ ofthe Agreement- ~otn properly certified copies. , please do not fill in the dates on tt~e agreements as th~ wttt be dona upon final execration by the District Secretary. ShoUld you have any questions tegard~g trois Agreer~et~t, please call ma at (954) 777~404, Sincerely, Rebecca L. RNet~ Aviation Coordinator Office of Mo~al Development encl District Modal Development Administrator cc; Nancy Bung°intermoc~a{ Transporta~io~ Manager Larry MerritL www.dot.state'f!'us Memorandum ~O~ From: Date: Terrence R. Moore, City Manager Terry D. Hill, public Works Director July 26, 2002 Re: Schumann Lake Boat Ramp At the June 12, 2002 City Council meeting approval was granted to Randall Tedder Construction, [nc. to install a new boat ramp atthe Schumann Lake park. I am pleased to announce that the installation has been completed and the ramp is now open for use. installed to replace an old ramp on Bailey .St. that was in poor repair and This ramp was ramp is on Kildare Dr. and ts the first of three phases to closed to the public. The new Lmprove the Schumann Lake park. Agenda City Counci1 Workshop Solid Waste Collection Services Wednesday July 31,2002, 6:00 p.m. City Council Chambers 1225 Main Street, Sebastian, FL 2. 3. 4. 5. Call to Order Roll Call Overview of Existing Solid Waste Services and Franchise Agreement Mandatory vs. Non Mandatory Solid Waste Service Provision Billing Options a. Tax Roll (Better Price for Residents) b, By Service Provider (Higher Price for Residents) c. Timeframe to Assemble Tax Roll Billing Mechanism Franchise Fee for Commercial Services 6. Adjourn ANY pERSON WHO DECIDES TO APPEAL ANY DECISION MADE BY THE cITY COUNCIL WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING WILL NEED A RECORD OF THE pROCEEDINGS AND MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDING IS MADE, WHICH RECORD tNCLLIDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE HEARD. (286.0105 F.S.) IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT (ADA), ANYONE WHO NEEDS A SPECIAL AccOMODATION FOR THIS MEETING SHOULD CONTACT THE CITY'S ADA COORDINATOR AT 58~5330 AT LEAST 48 HouRS IN ADVANCE OF THIS MEETING. HEARING ASSISTANCE HEADPHONES ARE AVAILABLE IN THE cOUNCIL cHAMBERS FOR ALL GOVERNMENT MEETINGS. FRANCHISE AGREEMENT RESIDENTIAL SOLID WASTE coLLECTION sERVICES This agreement, made this llth day of June, 1998, by and between R & R corporate systems, inc.,/d/b/a capital Sanitation, (hereinafter referred to as the .contractor")and the city of sebastian, Indian River county, Florida, (hereinafter referred to as the "city"); WHEREAS, the City council of the City of Sebastian, Florida, has determined that it is in the best interest of the City to grant a solid waste collection franchise to an independent solid waste collection service; and WHEREAS, the City has, through acceptance of public request for proposal determined that R & R Corporate systemS, Inc., d/b/a Capital Sanitation will provide the required service in the City of Sebastian for a variety of factors, including costS; and WHEREAS, the City Council has determined that the best interest of the citizens of the City of Sebastian will be served by granting an exclusive franchise to R & R Corporate systemS, Inc., d/b/a Capital Sanitation or the purpose of residential solid waste collection serviceS- NOW THEREFORE, IT IS AGREED BY THE coNTRACTOR AI~D THE cITY AS FOLLOWS: ~ GRANTING OF FRANCHISE- R& R Corporate systems, Inc.,d/b/a capital Sanitation (,,contractor") is granted the exclusive right, privilege, and/or Operate Upon, OVer and across the streets, alleys, other public thoroughfares of the City of Sebastian franchise to bridges, and (the "City',) for the pUrpose of collecting, removing and disposing of solid waste material from residential customers in the City of Sebastian subject to the terms, conditions and exceptions herein. ~G~J~ltl~ DEFINITIONS. A. Biohazardous, Biomedical, and Infectious Waste: means those wastes which may cause disease or reasonably be suspected of harboring pathogenic organisms; included, but not limited to, waste from the Operation of medical clinics, hospitals, and other facilities producing waste which may consist of, but are not limited to, diseased human and animal parts, contaminated bandages, pathological specimens, hyPodermic needles, contaminated clothing and Surgical gloves. C. Sebastian, D. Systems, City: means the City of Sebastian, Florida. City Manager: means the City Manager of the City of Florida or his designee. Contractor: the word "contractor,. refers to R&R Corporate Inc., d/b/a Capital Sanitation. Cover: means any device, equipment, tarpaulin, chain, rope, wire or line Used on vehicles to prevent the contents, or any par of such vehicles, load, from sifting, blowing, leaking, falling or otherwise being discharged, disbursed or escaping from such 2 vehicles. F. curbside: the word -curbside" is defined as that portion of the street right-of-WaY paralleling any public thoroughfare between the curb line and abutting property line. If a ditch bisectS the property and thoroughfare, the curbside then becomes the roadside of the ditch. G. Disposal: means the discharge, deposit, injection, dumping, burying, spilling, scattering, leaking, storing or placing any land of any solid waste into or upon solid waste or any constituent thereof may enter other emitted into the air, discharged into any waters, groundwaters, or otherwise enter the environment, specifically authorized by the City. or water so that such lands or be including except as H. Dump: means to throW, discard, place, deposit, dispose or bury any solid waste into or upon any land or water, except as specifically authorized by the City. I. Garbage: the word ,,garbage" shall mean every refuse accumulation of animal, fruit or vegetable matter that attends the preparation, use, cooking and dealing in or storage of edibles, which is subject to decay, putrefaction and the generation of noxioUS or offensive gases or odors, or which, during or after decay, may serve as breeding or feeding material for flies or other germ-carrying insects. j. Garbage Can or Receptacle: the words ,,garbage can" or "receptacle,, shall mean a container of not greater than thirty- five (35) gallon capacity which shall be free of jagged or sharp edges and shall be Watertight and of impervious material, provided with tight-fitting COver suitable to protect the contents from flies, insects, rats and other animals, fitted with two handles by which it may be lifted, and which shall not have any inside structure, such as inside bands or reinforcing angles, or anything within that would prevent the free discharge of the contents. Such "receptacle,, may also be a Waterproof bag liner, which can be Safely and securely closed, and which is a type approved by the collector and the city. K. Hazardous Waste: the WOrds "hazardous waste', shall be defined as hazardous under the Resource Conservation and Recovery Act, 42 U.S.C. ~1002, as amended, or regulated as toxic under the Toxic Substances Control Act, 15 U.S.C. ~2601, as amended, or Under regulations promulgated thereunder or defined as hazardous under the Florida Administrative Code Chapter 17-730 or any other applicable state or local law or regulation. L. Litter: means any solid waste identified as garbage, can, bottle, box, container, paper, tobacco product, tire, appliance; mechanical equipment or part, construction or demolition material, tool, machinery, wood, motor vehicle or motor vehicle part, Vessel, aircraft, farm machinery or equipment, sludge from a waste treatment facility, Water supply treatment plant, or air pollution control facility, or substance in any form resulting from domestic, industrial, commercial, mining agricultural or governmental operations. M. Residential: the word ,,residential" shall mean and include all ,,residential customers," consisting of single family homes, units. multi-family units, individual mobile homes and other living Multi-family units and mobile home parks with centralized collection facilities, i.e., dumpsters, etc., and collection containers in excess of three (3) cubic yards are considered commercial service and not covered under this Agreement- N. Residential Improved Real Property: means all improved real property used for either a multifamily residence, or a single family residence, including mobile home parks. O. Single-Family Residence: means any building or structure designed or constructed for and capable of use as a residence for one family regardless of the type of structure. Such term includes a mobile home or trailer erected on a parcel of property owned and offered for sale under the condominium concept of ownership or on a separate parcel of property not included within the definition of mobile home park. p. Sludge: means a solid or semi-solid, or liquid generated from any waste water treatment plan, water supply treatment plant, air pollution control facility, septic tank, grease trap, portable toilets and related operations, or any other such waste having similar characteristics or effects. Q. Solid waste: term which includes the words "solid waste" shall be a general the specific terms garbage, trash, and household junk, but which does not include hazardous waste, industrial or special waste. R. Special waste: shall include automobiles, boats, internal combustion engines, non-automobile tires, Sludge, dead animals, septic tank waste, Biohazardous or Biomedical Waste, liquid waste, and Hazardous Waste. Special Waste may also include items determined by the City Manager to be reasonably up-manageable. S. Trash: accumulation of lawn, grass, or shrubbery cuttings, or clippings and dry leaf rakings, palm fronds, small tree branches, (shall not exceed four (4) feet in length and four (4) inches diameter), bushes, or shrubs, green leaf cuttings, coconuts, fruits, or other matter usually created as refuse in the care of lawns and yards. T. W~ite Goods: means any inoperative and discarded refrigerators, ranges, washers, water heaters, and other similar domestic and commercial appliances. Section 3, TERM. The term of this franchise shall be for a period of five years from the effective date. ~ NON - F~NDATORY SERVICE. (5) Each residential customer within the City shall be 6 provided with solid waste pick-up and removal services, if they so desire said services. The residential customer may decline the offer of solid waste pick-up and removal services; and they shall not be charged for same. Industrial waste and special waste accounts shall be serviced only upon the execution of individual agreements between collector and the customer. The collector shall be deemed to have obtain title to conforming solid waste at the time it is collected. Section 5,. DESCRIPTION OF SERVICES. 5.1 Contractor shall provide exclusive residential solid waste collection services within the City limits of the City of Sebastian. The contract must include all specified services; no partial or split service will be permitted. The contractor will be responsible for both the billing and collection of solid waste fees and has the right to discontinue services to customers for non-payment- 5.2 It is the responsibility of the contractor to become familiar with and to determine the nature and conditions affecting the collection and disposal of residential solid waste in the City of Sebastian. The contractor is responsible for determining the impact and complying with the Florida solid Waste Management Act. 5.3 The contractor shall provide at his/her own expense, all labor, insurance, supervision, machinery and equipment, plant building, trucks and any other tools, equipment, accessories and 7 things necessary to maintain the standard of collections and disposal set forth herein. 5.4 The contractor shall conduct his/her work in such a manner as to avoid damage to adjacent private or public property and shall operate with due care in the vicinity of such utilities, and shall immediately repair or have repaired, at no additional cost to the owner, any breakage or damage caused by its operation. The contractor shall immediately notify the Public Works Director of such damage and shall advise of corrective action taken or to be taken. 5.5 The contractor shall not litter or cause any spillage to occur upon the premises or the rights-of-way wherein the collection shall occur. The contractor may refuse to collect any solid waste that has not been placed in a garbage can or receptacle as provided herein, and shall provide the proper notification to the property Owner specifying corrective action. During hauling, all solid waste shall be contained, tied, or enclosed so that leaking, spilling, and blowing is prevented. In the event of any spillage caused by the contractor, the contractor shall promptly clean up all spillage. 5.6 All solid waste shall be hauled to those sites or facilities maintained by the county, or other approved facilities within Indian River County. 5.7 The additional quantity of refuse generated by the influx of seasonal visitors and residents will not be a justification for the contractor to fail to maintain the required collection scheduleS, routes and levels of serviceS- 5.8 This Franchise Agreement does not create a mandatory trash collection service for all City residents. ~ RESIDENTIAL coLLECTION sERVICE- 6.1 The contractor shall have the exclusive right to collect and dispose of all solid waste, except infectious waste, hazardous waste, biohazardouS waste, biological waste special waste and sludge, from all Residential customerS. Residential Customers consist of single family homes, multi-family units, individual mobile homes and other living units. Multi-family units and Mobile Home Parks with centralized collection facilities, i.e., dumpsters, etc., and collection containers in exceSS of three (3) cubic yards are considered commercial service and not covered under this Agreement. 6.2 residence The contractor shall collect solid waste from places of within the contract collection area at least two (2) times per week, with collections at least three (3) days apart. In addition to the solid waste collection, yard trash pickups will be made on one specified and published day per week. All yard trash must be bundled or in reusable containerS, not to exceed 50 pounds each. GraSS clippings and small branches, etc., biodegradable paper bags or other reusable containerS. must be in Yard trash 9 contained in plastic bags will not be picked up. Yard trash must be separated from all other refuse. HOusehold furniture need not be containerized and will be picked up with regular trash collection service. White Goods (as defined in Section 2.T. herein on page 6,)will be picked up by a carrier chosen by Indian River County, at no additional charge, completely separate and apart from this Franchise Agreement. White Goods will be picked up on a one (1)week on call basis, as per Indian River County Agreement, with its contractor, or as hereafter may be amended, and must be recycled at the appropriate locations. The contractor shall assist its customer(s) responsible harmless in securing such services if requested, however, is not for the accomplishment of said services, and is held for the same. 6.3 Collection shall begin no earlier than 7:00 a.m., and shall cease no later than 6:00 p.m., Monday through Friday. In the Case of an emergency, collection may be permitted at times not allowed by this paragraph, provided the contractor has received prior approval from the City Manager or his/her designee, to be later evidenced by a written memorandum confirming the approval. No collection shall occur on Sundays or holidays except in a time of emergency. Special pickups may be requested by customers at additional cost which shall be billed by the contractor. 6.4 Collections of residential waste shall be at curbside or right-of-way. In the event an appropriate location cannot be 10 agreed upon, the City Manager shall costs associated with identification of to be borne solely by the contractor. in a form of stickers or other receptacles, etc., or other form medium affixed to the of identification but designate the location. Any contractor'S customers is Such identification may be trash not to exceed 5" X 7" 6.5 The residential collection- in size. contractor shall be required to pick up all refuse which has been properly prepared and stored for All garbage, ashes, and rubbish shall be placed in a garbage can not larger than 35 gallons, or in such other approved receptacle and shall be placed at curbside or at such other single collection points as may be agreed upon by the contractor and the customer. In view of the fact that certain residents are elderly and/or disabled personS, special pickup service for garbage only, at the back door, for such residents, shall be provided- There is no minimUm or maximum distance from the curb to the back door for this service. A place will be provided on the bid form to permit the contractor to list his price for this special service. The requirements for such service will be determined by the City ~anager, and such service will commence upon receipt by the contractor of notification by the City Manager. 6.6 The contractor shall make collections with a minimUm of noise and disturbance to the householder- Any garbage or trash spilled by the contractor shall be picked up immediately. Garbage 1! cans or receptacles shall be handled carefully by the contractor, shall not be bent or otherwise abused, and shall be thoroughly emptied and then left at the proper point of collection. 6.7 The contractor shall collect trash from normal maintenance of Vacant lots which are tied to the principal residence by means of unity of title in the same manner as the collection from residences on single lots. responsibility of the Contractor to remove trash clearing property for building purposes. If it is the area residents to place their yard trash curbside on the vacant lot, that waste shall also the same manner as the collection from the residence. ~ SCHEDULEs, ROUTEs, STORMs AND HOLIDAYs. 7.1 The contractor shall provide the City with schedules for all collection routes and keep such information Current at all times. The City Manager shall approve all collection routes. If any change in the collection routes occurs, then the City shall be immediately notified in writing. The City Manager shall approve all permanent changes in routes or schedules. Upon approval of the routes by the City Manager, the contractor shall publish in a newspaper of general circulation in Indian River County at least Seven (7) days prior to the effective date of such route or It will not be the resulting from the practice of or solid waste be collected in schedule changes. the contractor. The cost of publication shall be borne solely by In addition the contractor shall be responsible ]2 for advertising all route and collection information in a newspaper of general circulation in Indian River County at least twice per year, on or about the 1st of April and the 1st of October of each year, the cost of which is to be borne solely by the contractor- 7.2 In case of a storm or hurricane, the City Manager or his/her designee may grant the contractor reasonable variance from regular schedules and routes. As soon as practicable after such storm, the contractor shall advise the City Manager and the customer of the estimated time required before regular schedules and routes can be resumed. In the case of a storm where it is necessary for the contractor and the City to acquire additional equipment and to hire extra crews to clean the City of debris and refuse resulting from the storm, tke contractor skall be required to work with the City in all possible ways for the efficient and rapid cleanup of the City. The contractor shall receive extra compensation above the Contract Agreement for additional labor, overtime, and cost of rental equipment, provided he has first secured prior written authorization from the City Manager or his/ker designee. The total cost for such service shall be based on rates jointly agreed to in advance by the City Manager or his/her designee and the contractor. In the event of such storm or hurricane emergency, the City reserves the right to assign route or pick-up priorities as deemed necessary by the City Manager. 13 7.3 The City agrees to exempt residential collection from the normal collection schedule on the following holidays: New Year's Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. These holidays will be indicated in the initial public notice to customers in a local newspaper of general circulation. The contractor will be excused from trash pickup day. any these days and will not be required to make up the lost pickup The Contractor will reduce the customer's monthly bill for lost pick up days which a customer may suffer. 7.4 The contractor shall have on hand at all times and in good working order such equipment as shall permit the contractor to adequately and efficiently perform its contractual duties. The equipment shall be of the enclosed loader packer type and all equipment shall be kept in good repair, appearance, and in a sanitary and clean condition at all times. Section 8L OTHER PROVISIONS. 8.1 The contractor shall comply with all applicable City, State and Federal laws as to wages, hours, and all other applicable laws relating to the employment or protection of employees, now and hereafter in effect. 8.2 The contractor is required and hereby agrees by execution of this Franchise Agreement to pay all employees not less than the federal minimum wage and to abide by other requirements as established by the Congress of the United States in the Fair Labor Standard Act as amended and changed from time to time. 8.3 No person skall be denied employment by the contractor for reasons of race, sex, national origin, creed, age, or religion. 8.4 Contract unit price will remain firm for the first twenty-four (24) months of the Contract Term. The unit price for ensuing Contract years, upon a formal request filed by the Contractor shall be negotiated by the City Manager. Any increase in prices for ensuing years shall not exceed the percentage of movement of the United States Department of Labor, Cons~er Price Index most recent printing at the beginning of each contract year. All rate adjustments shall be subject to the approval of the City Council by resolution. 8.5 The contractor shall pay the City of Sebastian a gross receipts franchise fee, according to the schedule set forth in Section 9 of this ordinance, and agrees all contractor's records will be available for inspection with reasonable notice and during regular business hours, to support the franchise fee. This franchise fee will be six percent (6%) of the contractor's gross receipts. The approved rate as set forth in Section 10 of the ordinance shall reflect the total rate to the customer without adjustment for the franchise fee. 8.6 The contractor shall perform a service and keep the number of legitimate complaints to order that the city may be informed of the quality of service, of high quality a minimum. In the contractor agrees to maintain a record of all complaints for inspection by the City. The contractor agrees to furnish a monthly report listing the name and address of each person complaining, the nature of the complaint, and the disposition of each complaint. Ail complaints whether received in person, by mail or telephone, shall be recorded in triplicate, one (1) copy to go to the City and two (2) copies to be retained by the contractor. Complaints received before 12:00 noon each day shall be serviced by 6:00 P.M. that day. Complaints received after 12:00 noon shall be serviced before 12:00 noon the following calendar day. For each month in which the number of legitimate complaints reaches ten (10) or more for any cause the City shall be entitled to claim liquidated damages of Ten Dollars ($10.00) per complaint. Each complaint shall be considered legitimate unless satisfactory disposition of the complaint is furnished. The decision of the City Manager as to the legitimacy of any complaint shall be considered final. The failure of the contractor to resolve customer complaints without valid cause is considered a material breach of this Franchise Agreement and may subject the contractor to the cancellation of the Agreement. 8.7 Prior to the effective date of this agreement, the contractor shall obtain, at his/her own expense, all permits and licenses required by law or Ordinance and maintain the same in full force and effect. 8.8 Upon the City's acceptance of this Franchise Agreement, the contractor shall notify the general public and all residential service customers that the contractor will be providing exclusive ]6 trash pickup services within the city of Sebastian. Contractor shall supply necessary information to begin service to prospective customers, and shall publish the days of pickup, holidays when no service will be provided, general rate structure, and general information to provide a smooth transition from the current service to the new exclusive service. Such notice shall be in a local newspaper of general circulation in Indian River County, twice prior to beginning services, and once in each of two consecutive months after service begins. 8.9 A. The contractor shall furnish to the city evidence of insurance coverage for all insurance required under the provisions of this section of this Agreement immediately upon the execution of this Agreement by the parties. Failure of the contractor to maintain said insurance at any time during the term of this Agreement by the contractor, shall be construed to be a material breach of the Agreement by the contractor. B. The contractor shall provide and maintain during the term of this Agreement such worker's compensation insurance as required by law for all of its employees employed in connection with the performance of the work provided for under this Agreement. C. The contractor agrees to indemnify and save harmless the city from any and all liability, claims, damages, losses, expenses, proceedings and causes of action of every kind and nature arising out of or connected with the performance of his duties provided for under this Agreement. The contractor further agrees to, at its own 17 expense, defend any and all actions, suits or proceedings which may be brought against the City in connection with the performance of its duties under this Agreement and to satisfy, pay and discharge any and all judgments that may be entered against the City in any such action or proceedings. The contractor agrees to provide and maintain at all times during the term of this Agreement, without cost or expense to the City, policies of insurance generally known as "public liability policies,,, insuring the contractor against any and all claims, demands or causes of action whatsoever for injuries received or damage to property relating to the performance of the duties of the contractor under the terms and provisions of this Agreement. Such policies of insurance shall insure the contractor in an amount not less than One Million Dollars ($1,000,000.00) to cover any and all claims connected with any accident or occurrence that may arise or be claimed to have arisen against the contractor. The contractor shall also obtain property damage insurance insuring the contractor in an amount not less than Three Hundred Thousand Dollars ($300,000.00) to cover the claims of any person or persons from a single or specific act that results in alleged damage to property. The contractor agrees to provide and maintain at all times under this Agreement motor vehicle amount of not less than One cover the claims of one person, incident. public liability insurance in an Million Dollars ($1,000,000.00) to and One Million ($1,000,000.00) per Said insurance policies shall provide that the City shall be ]8 entitled to thirty (30) days written notice of any changes or cancellations in said policies. A certificate of insurance indicating that the contractor has coverage in accordance with the requirements of this Agreement shall be furnished by the contractor to the City Manager within ten (10) days from the date of execution of this Agreement. 8.10 The company will maintain and operate its residential trash collection service in accordance with the laws of the State of Florida, Federal laws, including OSHA Federal Regulations, and the rules, regulations, and Franchise ordinances as are or may be set forth by the Council from time to time. Failure of the contractor to promptly and faithfully keep, perform, and abide by each and all of the terms and conditions of the franchise and rules and regulations as set forth by Council shall constitute a violation of the Franchise Agreement and may be terminated by the city as specified in the Franchise Agreement. 8.11 Access to Company Records. The City shall have access at all reasonable hours to all of the Company's contracts, accounting, financial, statistical, consumer, and service records relating to the operation of the Company and to all other records required to be kept by the Company, and the Company shall file such accounting reports and data with the city when required. 8.12 The contractor may be held in default of the Agreement in the event the contractor: (1) Fails to perform the collections required by this Agreement and appears, to the city Manager, to have 19 (2) abandoned the work, or to be unable to resume performance within forty-eight (48) hours; or Has failed on three (3) or more occasions of three (3) working days duration in any year, to perform the collections required by the Agreement; or (3) Repeatedly neglects, fails, or refuses to comply with any of the material terms of the Agreement, after having received notice of its obligation to so comply. Proceedings under this section are in addition to the remedies described in Section 8.4 for the breach of their respective requirements. To initiate proceedings under this section, the City Manager shall first request the City Council to declare the contractor in default. Within three (3) working days after its receipt of such a request, the City shall give notice to the contractor, its surety, and the City Manager of the location, time, and date within the following seven calendar days of a public hearing at which the contractor may show cause why it should not be declared in default. In the event the contractor fails to show, to the satisfaction of the City, cause why the contractor should not be declared to be in default, the City Council shall make such declaration. In declaring the contractor to have defaulted on the Agreement, the City may also order the contractor to discontinue further performance of work under the contract and transfer the obligation to perform such work from the contractor to the Surety 20 on the contractor's performance bond and take any other action it deems advisable. 8.13 SECURITY FUND (fund) The contractor shall establish a permanent security fund with the city by depositing the amount of two thousand five hundred dollars ($2,500.00), with the city in cash, an unconditional letter of credit, or other instrument acceptable to the city, which fund shall be maintained at the sole expense of the contractor. The balance in the fund shall be released back to the contractor upon termination of the Franchise Agreement~ (a) The fund shall serve as security for the full and complete performance of the Franchise Agreement, including any cost, expenses, damages or loss the City pays or incurs because of any failure attributable to the contractor to comply with the codes, rules, regulations of the city. (b) Before any sums are withdrawn from the fund, the city shall give written notice to the contractor: (1) describing the act, default or failure to be remedied, or the damages, cost or expenses which the City has incurred by reason of grantee's act or default; (2) providing reasonable opportunity for contractor to first remedy the existing or ongoing default or failure, if applicable; (3) providing a reasonable opportunity for the 2! 8.14 contractor to pay any monies due the City before the City withdraws the amount thereof from the fund, if applicable; (4) that the contractor will be given an opportunity to review the act, default or failure (c) fourteen (14) that there is PERFORMANCE BOND described in the notice with the City Manager. Contractor shall replenish the security fund within days after written notice from the City a deficiency in the amount of the fund. The contractor shall provide a contractor,s performance and payment bond in the amount of Seventy Thousand Dollars ($70,000.00) with a surety company acceptable to the City as surety, which bond shall be conditioned that such contractor shall faithfully perform all of the provisions of this Agreement and pay all laborers, mechanics, subcontractors, materialmen, and all persons who shall supply such contractor or subcontractors with provisions and supplies for the performance of this Agreement; and shall perform work or services, or furnish material to any subcontractor, shall have the same right under the provisions of such bond as if such works, services or material was furnished to the original contractor, and shall contain appropriate recitations; (1) that is issued pursuant to this section of this Agreement; and (2) that any condition or limitation in such bond which is in conflict with the conditions and requirements of this section is void. 22 In lieu of the Performance Bond required herein the contractor may enter into an Agreement with the city, drafted to the satisfaction and approval of the city Attorney and the city Manager, that the contractor shall make a deposit to an escrow account in a bank approved by the city, in cash or in negotiable government securities equal at all times in market value to the face amount of the bonds, such Agreement shall provide that the cash or negotiable securities may be claimed by the city Manager, under the same circumstances as provided for use of the Performance Bond. The bond or the cash or security deposit shall remain in effect for the initial term of the Agreement, and for the renewal period. 8.15 Upon receipt of a notice that the work has been transferred to the surety with termination of the Agreement, the surety shall take possession of all materials and equipment described in the most recent inventory submitted to the city Manager pursuant to Section 8.17 of the Agreement, for the purpose of completing the work under the Agreement; employ, by contract or otherwise, any person and all persons needed to perform the work; and provide materials and equipment required therefore. Such employment shall not relieve the surety of its obligations under the Agreement and the bond. If there is a transfer to the surety, payments shall be made to the surety or its agent for all work performed under the Agreement subsequent to such transfer, in amounts equal to those that would have been made to the contractor had it performed in the manner and to the extent of the surety's 23 performance and the contractor shall have no claim upon the same. In the event the surety on the contractor.s performance bond fails to assume or continue performances within forty-eight (48) hours after its receipt of notice that the work has been transferred to such surety, the contractor shall lease, sublease or otherwise license the City to use all, or whatever portion is desired by the City, of the materials and equipment described on the most recent inventory submitted to the City Manager pursuant to Section 8.17 of the Agreement, for collection purposes for a period of up to six (6) months following the date of the declaration of default by the City Council without requiring the City to execute any other document whatsoever to accomplish such lease, sublease or license and without requiring the City to post any bond, pledge, deposit or other security for such equipment and materials, but upon the condition that the City pay for the equipment and materials actually used for such collection a market rental that is not greater than the monthly lease, in the event such property is leased by the contractor; the periodic installment in the event such property is being acquired under a purchase contract; or the periodic interest and principal, in the event such property is being acquired under a financing arrangement; provided that under no circumstances shall the City be liable during its use of such property for any arrearages, balloon payment, accrued interest, accelerated charges in the event of a default or other extraordinary payment; nor shall the satisfaction thereof be a condition of the City's interim use of such property; provided 24 further that such lease, sublease or license shall be suspended on the date the.surety on the contractor's bond or its agent accepts the transfer of work under the Agreement· In the event the city secures the performance of work under the Agreement at a lesser cost than would have been payable to the contractor had the contractor performed the same, the city shall retain such difference; but in the event such cost to the City is greater, the contractor and its surety shall be liable for and pay the amount of such excess to the City. All payments due the contractor at the time of default, less amounts due the city from the contractor; shall be applied by the city against damages suffered and expense incurred by the City by reason of such default; any excess shall be paid to the contractor except as provided in the Agreement. Notwithstanding the provisions of this section, a delay or interruption in the performance of all or any part of the Agreement resulting from changes ordered in the work, from labor disputes, or from other causes beyond the contractor's control, shall not be deemed to be a default and the rights and remedies of the city provided for herein shall not be applicable. 8.16 If the contractor fails to be at work at the time specified, persistently disregards laws, ordinances or instructions of the city Manager, or repeatedly fails to provide sufficient reserve workmen and equipment to insure the proper completion of the residential work by 6:00 P.M. each day, or performs the work unsatisfactorily or fails to collect refuse on a regular schedule, or discontinues the prosecution of the work without authorization by the City, or becomes insolvent or declares bankruptcy or commits any act of bankruptcy or insolvency, or allows final judgment rising out of performance of the Agreement to stand against it unsatisfied for a period of ten (10) days, the City will consider such action a breach of Agreement and give notice, in writing by registered mail, to the contractor and its surety of such breach. If the contractor or its surety, within ten (10) days after such notices, does not proceed to take over and complete the work under the orders of the City Manager, then the City Manager, because of the breach of Agreement, shall have full power and authority, without violating the Agreement or bond to take over the completion of said Agreement according to the terms and provisions thereof, or to use such other methods as in his opinion may be required for the completion of said Agreement in an acceptable manner. Furthermore, after the issuance by the City of its notice of intention to terminate the Agreement, the contractor shall not remove from its normal, daily workplace any of the equipment listed on the inventory approved by the City Manager in accordance with Section 8.17 of this Agreement until arrangements to continue the work, by Agreement, by surety, or otherwise, have been completed by the City. For all costs, charges and damages incurred by the City, together with the costs of completing the work, the contractor and its surety shall be liable, and such costs may be deducted from any monies due or which may become due the contractor. Should the City 26 incur any attorney's fees to seek enforcement of any of the provisions in this Agreement and prevails, the contractor and its surety shall be liable for those fees, and such expense may be deducted from any monies due or which may become due to the contractor. In case the expense incurred by the City is less than the sum which would have been payable under the Agreement if it had been completed by the contractor, then the contractor and its surety shall be liable and shall pay the city the amount of said 8.17 A. The contractor shall provide sufficient equipment to maintain regular schedules of collection and to promptly and efficiently perform its duties under this Agreement. The contractor shall provide to the city Manager, prior to the start of work under this Agreement, an inventory showing each type of vehicle (type, capacity, approximate age) used for performing work under this Agreement. The city Manager shall have the authority to inspect the vehicles on such inventory list and reject an unsuitable replacement. The contractor shall attach to such inventory a copy of each contract, lease, orother document that enc,~mbers or limits the contractor's interests in such proPerty· The contractor may change equipment from time to time and shall revise the inventory and the attachments thereto, accordingly; however, in no event shall the number of vehicles be less than the number of vehicles shown on the inventory provided prior to start of work under this Agreement. The contractor shall maintain a vehicular fleet during 27 the performance of work under this Agreement at least equal to that described in the inventory. The contractor shall describe on an attachment to the required inventory the service yards or contracts to be used in maintaining vehicles and equipment. The contractor shall give notice to the City Manager as to any material changes that might affect the performance of work under this Agreement immediately after becoming aware of the same and shall make suitable remedial arrangements when needed. B. Equipment is to be maintained in a reasonably clean and safe working condition and be painted uniformly according to standards maintained from time to time by the City Manager. Equipment shall contain the name of the contractor and the truck number or code established by the City Manager printed in letters not less than three (3) inches high on each side of the vehicles. A record shall be kept of the vehicle to which each number is assigned. No advertising shall be permitted on the vehicles. Each vehicle used for the collection of solid waste shall not exceed ten (10) years in age at any point and time during the Agreement term, unless satisfactory proof is submitted substantial refurbishment of effectively bring the vehicle(s) less standards, as determined by said vehicle(s) which to within ten (10) the City Manager, showing would years old or shall have a fully enclosed, metal top and shall be watertight to a depth of not less than (12) inches and shall contain metal sides, and use pneumatic tires. However, the City Manager shall have the authority 28 to waive the requirement of a fully enclosed, metal top in the event of an emergency. As an alternative.to a fully enclosed metal top for use in garden trash collection, said Vehicle maybe equipped with a cover which may be a net with mesh not!greater than one and one-half (1%) inches, or tarpaulin, and such cover shall be kept in good mechanical order and.used to cover the load in traveling to, from and during the loading operation orwhen parked if the contents are likely to be scattered if not covered. Vehicles shall notbe overloaded so as to scatter Solid waste, but when solid waste is scattered from a contractor's vehicle for any reason, it shall be the responsibility of the contractor to immediately pick up such scattered solid waste. Each truck shall be equipped at all times with a shovel and a broom for the collection of spilled refuse. Vehicles are to be washed thoroughly on the inside and sanitized with a suitable disinfectant and deodorant, once weekly, or at such times as established by the city Manager from time to time in order to be maintained in a clean and sanitary condition and all vehicles are to be washed on the outside at least weekly. The contractor's vehicles are not to interfere unduly with vehicular or pedestrian traffic and vehicles are not to be left standing on streets and alleys unattended. 8.18 The following acts or omissions shall be considered a breach of the Agreement and for the purpose of computing damages under the provisions of this Section, it is agreed that the City Manager may obtain from the contractor, the following amounts as 29 liquidated damages, and or obtain from the security fund as stipulated in Section 8.13 herein: 1. Collection of residential solid waste prior to 7:00 A.M. or after 6:00 P.M., unless specifically exempted by the City Manager. $5.00 each case. 2. Legitimate Complaints - Section 8.6 (Over ten~ (10) per month). $10.00 each additional legitimate complaint. [.See Section 8.6 ] 3. Failure to clean vehicles and maintain in good working condition. $24.00 each vehicle [See Section 8.17 ] 4. Failure to keep,vehicles closed o~ covered to prevent scattering of solid waste from the vehicle, unless specifically exempted by the City Manager. $25.00 each vehicle 5. Loaded vehicles left unnecessarily. $25.00 each vehicle. [See Section 8.17 ] standing on the street [See Section 8.17] Failure to maintain schedule established and given as a requirement of this Agreement, in writing to the public and the City. $25.00 per violation of route schedule . [See Section 7.1] Failure to respond to complaints as required by this 30 agreement. [See Section 8.6] 8.19 No assignment or subletting of all or any portion of the work under this Agreement shall be permitted except with the written approval of the city. The contractor alone, subject to the provisions of its performance bond, shall be held responsible for the full and faithful performance of this Agreement. 8.20 The contractor shall be listed in the BellSouth telephone book which is distributed in the city of Sebastian. said listing shall provide a toll free number where its customer'S may call emergency and complaint calls during the entire week. The contractor shall display this number in a prominent place on all invoices or billing to its customer. In addition, the contractor shall designate a representative for emergency and complaint calls twenty-four (24) hours per day during the entire week. The contractor shall provide, at its own located within the city of sebastian. ~ pAY~LENTS TO CITY. Beginning with the effective pursuant to Section 8.5 of this ordinance, expense, a suitable office date of this Agreement, the contractor shall pay to the city, within thirty (30) days of each preceding billing period, an amount equal to six percent (6%) of the contractor's gross receipts for the preceding billing period. Failure to remit the required payment to the city shall be cause for termination of this franchise. RATE · 31 The rates charged by the contractor for the services hereunder shall be fair and reasonable and designed to meet all necessary costs of the service, including a fair, greater return on the net valuation of its properties devoted under efficient and economical management. The company agrees that it Shall be subject to all authority now or hereafter possessed by the City or any other regulatory body having competent jurisdiction to affix, adjust, reasonable and compensatory rates. When this franchise takes effect, the company shall have authority to charge and collect, not to exceed the following schedule of rates which shall remain effective until changed or modified as herein provided, to wit: Monthly Garbage Rates: Monthly garbage rates shall be $8.10 per month, per residential customer, and $8.10 for special pick-up for disabled residents, per month, per residence, as specified herein. The rate specified above is the rate charged to the customer(s), and does not include adjustment for the six (6) percent franchise fee. FORFEITURE. The failure on the part of the contractor to comply in any substantial respect with any of the provisions of this Ordinance, shall be grounds for forfeiture of this Grant. ~ ATTORNEY FEES. Should it become necessary for the City to initiate legal or other proceedings to enforce the terms of this Agreement, the prevailing party shall be entitled to recovery of reasonable costs 32 and attorney's fees. ~ EFFECTIVE DATE. This Agreement shall beocme effective on Jul 1, 1998. The contractor, by and through its authorized agent, hereby acknowledges that it has read all terms, provisions, and conditions as set forth herein. The undersigned further acknowledges that it is sophisticated in the matters set forth in this contract and has had full opportunity to review, and seek independent legal advice with regard to all matters set forth herein. Accordingly, the contractor hereby accepts and agrees to all terms set forth in this Agreement. IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed, the day and year first above written. ............................ CITY .............................. ATT~q~: Sally A. ~aio' CMC. DeputyCity Clerk THE CITY OF SEBASTIAN Name: Thomas W. Frame Title: City Manaaer (SEAL) Approved to form and content: Valerie F. Settles, city Attorney CONTRACTOR ........................ - Signed, sealed and delivered 33 in the presence of: NAME: ~ _~~ Ronald Rigby, Vice President R&R Corporate Systems, Inc., d/b/a Capital Sanitation (SEAL) 34 BO~T. O[ pF.,L1CAN I~LAND Memomdl. To: From: Date: Re: Terrence R. Moore, City Manager Mark C. Mason, CPA, Director of Finance July 24, 2002 Mandatory vs. Non-mandatory Solid Waste Collection Following is an excerpt of the memorandum provided to you on April 3, 2002 regarding solid waste collection in the City of Sebastian. NON.MANDATORY VS. MANDATORY PICKUP_ The City's solid waste and yard debris pickup is non-mandatory within the City of Sebastian as opposed to mandatory pickup for all residential locations. From research regarding solid waste pickup, non-mandatory pickup is very rare within the State of Florida at the municipal level for several reasons, most of which revolve around environmental and cleanliness issues. The norm is mandatory pickup with either in-house (i.e. City p~rforming the function) or contracted out with a waste management company under a franchise agreement. Within a tri-county area from Brevard County to St. Lucie County, there is only one other City, besides Sebastian that offers optional solid waste pickup, and that is Fellsmere. Of the fifteen (15) cities and tl~ee (3) counties in the area mentioned above, fifteen (15) have mandatory pickup, five (5) do it in-house, and thirteen (13) contract with outside companies. Following is a list of the cities and counties, type of pickup, franchised with, and fees. Monthly Fee, Incl Franchise Trash Haule~ Franchise Franchise Rate F~ee if any (1~ Brevard County X Eape Canaveral X X Satellite Beach Non- Waste Manage~nent, Inc. ement, Inc. X X X Inc. X X / Provided Semce , Inc. X . Provided Service X X Waste Mgmt(N)/T.C.(S) YES 6% Inc. YES 6% X Waste Non Excl lower than county X - YES 6% X Capital Sanitation X City Provided Service N/A None River Count3 River Shores *o Beach St. Lucie County Ft. Pierce : St. Lucie X X X 7.66 YES 9.24 YES None 14.01 YES 9.91 YES 10% 4.88 YES 6.24 YES 7.00 N/A None YES 10% 6.58 8.70 N/A None ;t I Solid Waste N/A None Service N/A None Waste Management, Inc. YES W 12.39/T 7.70(JI), 12.92 W 12.39/T 7.70(JI), 12.92 6.80 8.59 11.65 12.29 14.56 13.85 As can be seen from the above schedule, fees vary. One of the overriding issues regarding cost is how far the landfills are from the City/County. For example, Melbourne's landfill is fight next to the City, so the cost of hauling is decreased. If Melbourne must haul to the Cocoa landfill, then the costs would increase accordingly. Another cost is collection of fees. If the franchised company must collect the fees, there is the added cost of collection passed to the customer. If the City bills for mandatory pickup, the collection cost goes down, thus the fees go down. What would it mean for the City to go to mandatory pickup? For the most part, it provides a cleaner and safer environment. As is noted in the table above, the only jurisdictions with non-mandatory pickup are in Indian River County, and of that, only in Sebastian, Fellsmere and the County unincorporated area. All other locations are mandatory. A resident still would have the option of taking trash to a transfer station (or, as so often happens, a near-by vacant lot), however, ~vhen the service is billed to the resident, there is less ora need or desire to do so. Ifa resident is going to be billed for it, they might as well take advantage of it. In addition, there is no longer a need to be concerned with decals and the like. Also, and most important, mandatory pickup will reduce the number of garbage dumps on vacant land in the City. This, in and of itself, will provide a cleaner and healthier environment within the City. As indicated above, there are three options currently in affect along the tri-county area of Brevard to St. Lucie Counties, (1) mandatory pick-up with in-house pickup, (2) mandatory pickup with a franchise hauler and, (3) non- mandatory pickup with a franchise hauler. The majority currently is mandatory pickup with a franchise hauler. The differences in fees relates, for the most part, to the distance necessary to travel to the landfills as explained above. Under the mandatory option, revenue collection would be assessed via a non-ad valorem assessment, similar to the Stormwater Utility Fee. The billing would be for all residential customers within the corporate limits of the City of Sebastian. Revenue would be collected and payments made to the franchise hauler, with a collection fee (franchise fee) for the City, and we would have to take into account the 2% collection fee which the Tax Collector's office charges for collecting and remitting the assessment. All of these fees would be included in the Franchise Agreement with the respective hauler. TIMING FOR IMPLEMEi~'rATION Implementation of mandatory collection of solid waste ~vould require the City to vote on a resolution before January 1, 2003, or if the Property Appraiser, Tax Collector and City agree, by March 1, 2003. In either case, the City is required to publish notice of its intent to use the uniform method for the levy of non-ad valorem assessments four (4) consecutive times in advance of the hearing on the resolution and must then forward the adopted resolution to the Property Appraiser, Tax Collector and Department of Revenue, by January 10, 2003 or March 10, 2003, respective of the dates cited above. It is recommended that if this method is approved, that it be in advance of January 1 as opposed to March I dates. By this action, the method of collection will be set in the RFP for responders to use in quoting their rates. In summary, the steps to take would be: 1. Approve Mandatory Collection at least six weeks in advance of the first meeting December 2002 which is December 11, 2002. 2. Publish in the Press Journal over the course of four consecutive weeks, the City's intent to use the uniform method of collecting solid waste fees, via a non-ad valorem taxes. Please note, the an amount of the assessment is not required at this time. 3.Upon adoption of the resolution, forward certified copies t° the three named entities ab°ye' Following these steps will insure that the City is at the least in a position to begth collecting the solid waste non-ad valorem assessments in November 2003. Please note, that if the City elects to maintain non-mandatory pickup, the method of collection above would not be available due to the extensive resources necessary to maintain a fluid database for collection. HO~ O~ FD.~CAN City of Sebastian, Florida Subject: Commercial Sanitation Franchise Approve~ ~ Sty Manager Agenda Ne. Department Origin: Finance . _Date Submitted: July 24, 2002 i For Agenda of: July 31, 2002 Exhibits: 1. Excerpt copy of Commercial Rates from Indian River Franchise Agreement for Waste Management Services. 2. Excerpt copy of Commercial Rates from Indian River Franchise Agreement for Treasure Coast Refuse. 3. Copy of agenda tranamittal from Indian River Coun ,fy Commi~nion meeting on May 7~ 2002. EXPENDITURE AMOUNT BUDGETED: APPROPRIATION REQUIRED: REQUIRED: SUMMARY In researching information for solid waste collechon and franchise fees, etc., it was noticed that while we had a franchise agreement for residential solid waste collection, there was no existing franchise agreement in place for commercial solid waste collection. Having no franchise agreement in place for commercial solid waste collection allows for the use of the City's roadways without recourse for spills, etc. In addition, the loss of revenue from the franchise fee collection requires the City to pick up the tab for repairs of streets which have been damaged by these trucks. The amount of revenue which may be earned on a fxanchise agreement with either Waste Management or Treasure Coast or both is undetermined, however, since we are collecting nothing right now, something would be better than nothing. Enclosed are excerpt copies of the commercial portion of the old franchise agreements between Indian River County and Waste Management, Inc. and Treasure Coast Refuse (the new agreements have not yet been printed and were not available). The franchise agreements are mutually exclusive for the North and South part of the County, however, within the City of Sebastian, it appears that both companies are operating for commercial pickup. In addition, I have provided a copy of an Agenda Transmittal from Indian River County outlining the changes made in the Franchise Agreements. Based upon the research, staff recommends a nonexclusive franchise agreement for commercial pickup within the City limits following the outline of the new agreements between the two companies and Indian River County. RECOMMENDED ACTION Discuss implementing exclusive/nonexclusive franchise agreements following the Indian River County Model and direct staff accordingly. 'esldent~al recyc!ing [e~ioe gra~ Prl°r to beginning tho the development o~ flue Collector Will also as-' StiCkers et its expense, ~hile it · D O mncurs the Print/no aSSaciations and other ~ appropriate citizens groups· ~ctnal~t'' and at the ~ ~ C°mmercial/Roll_off SerVice Billing & Rates for r 1 f co lal collect/on Service, and debris, !andclearing debris, e w/l/ he the responsibility of t nd Yard/garden trash rbilled is. Charges Will monthly in advance by the Collector as follows:- LOose Pick-up Rate Per cubic Yard Per Pick up -_ There ~i!l be a minimum monthly SerVice charge of Language underlined is Add Language Stricken is DeletS~ 14.1.3 - Roll-off Charges Per Pull 1. Open Top Type a) 15 cubic y~rds b) 20 cubic yards c) 30 cubic yards d) 40 cubic yards 2. Enclosed Compactor Type a) 20 cubic yards or less b) 21-40 cubic yards $;30.00 per puli $!43.DD per pull $~69.00 per pull $~5.00 per pull $~53.00 per pull $205.00 per pull be Commercial contained in negotiated between the Collector and the Customer. 14.1.4 - Other Charges: The rates for Collection Servioe and Roll-off Collection Service, Sections 14.1.2 and 14.1.3, do not include disposal feest roll-out service. These fees will be added to, and reflected on, the customers invoice. 14.1.5 - Deposits: A deposit shall be paid ~o the accounts in an amount equivalent to one (1) month,s collection fee. The deposit may bm applied to any account not paid Within thirty (30) days; or, Upon request of a User terminating service, the deposit may be applied to the customer,s final not fully paid within fifty (50) days from the billing date, the account shall be deemed delinquent. The customer shall be sent a written notice of such delinquency by the Collector and a copy will be forwarded to the S.W.D.D, If any delinquent account is not paid in full within ten (10) days after sending such notice, collection service shall cease and the S.W.D.D, shall be notified. The S.W.D.D. will notify other franchisees of the delinquent account and no servioe may be provided to the delinquent customer by any franchisee until the delinquency is HSFRAI~R3.DOC -29- Language underlined is Added Language stricken is Deleted be subject to budget, review and approval by the County. initial one day kick-off program prior to beginning the residential recycling service. Collector will also assist 'in the development of flyers and stickers_ ~sr thm initialization of the program. The Collector shall distribute the flyers and stickers a~ its expense, while the S.W.D.D. incurs the printing number of presentations for schools, civic groups, homeowners associations and other appropriate citizens groups. 13.11 - Additional/Speci&l Services to Municipalities: Where a municipality within Collector's Residential Recgclino Service Area desires re~vcline service exceedinq that ~rovided herein the Collector may provide such additional/snecial service through individual contract with the municinalitv and at the expense of the municipality. CHARGES, RATES AND LEVEL OF SERVICE Section 14. BILLING & RATES 14.1 - commercial/Roll-off Servi=e Billing & Rates 14.1.1 - Billing for commercial collection service, and for roll-off collection service for compaction, construction and demolition debris, landclearing debris, and yard/garden trash will be the responsibility of the Collector. 14.1.2 - All customers receiving commercial collection service will be charged on a per cubic yard basis. Charges will be billed monthly in advance by the Collector as follows: Containerized Rate per cubic yard per pick up -- $6.$0. Containerized service applies to commercial service wherein the Collector provides a waste container of 2-10 yard capacity. Loose Pick-up Rate per cubic yard per pick up -- $6.00. Loose Pick-up service applies to commercial service wherein the commercial customer provides his own waste container. -28- TCFRAN95.DOC Language underlined is Added Language stricken is Deleted There will be a minimum monthly service charge of - $25.98. 14.1.3 - Roll-off Charges Per Pull 1. Open Top Type 15 cubic yards b) 20 cubic yards c) 30 cubic yards d) 40 cubic yards ~nclosed Compactor Type a} 20 cubic yards or less b) 21-40 cubic yards $130.00 per pull $143.00 per pull $169.00 per pull $195.00 per pull $153.00 per pull $205.00 per pull The rates listed above are maximums, volume discounts can be negotiated between the Collector and the Customer. 14.1.4 - Other Charges: The rates for Commercial Collection Service and Roll-off Collection Service, contained in and 14.1.3, do not include disposal fees, franchise fees, and other extra charges for These fees will be added to, and reflected Sections 14.1.2 maintenance fees, roll-out service. 14.1.5 - Deposits: A deposit shall be paid to the Collector on all new or reinstated delinquent commercial accounts in an amount equivalent to one (1) month's collection fee. The deposit may be applied to any account not paid within thirty (30) days; or, upon request of a user terminating service, the deposit may be applied to the customer's final billing. 14.1.6 - Delinquent Accounts: In the event any account is not fully paid within fifty (50) days from the billing date, the account shall be deemed delinquent. The customer shall be sent a written notice of such delinquency by the Collector and a copy will be forwardsd to the S.W.D.D. If any delinquent account is not paid in full within ten (10) days after sending such notice, collection service shall cease and the S.W.D.D. shall be notified. The S.W.D.D. will notify other franchisees cf the delinquent account and no service may be provided to the delinquent customer by any franchisee until the delinquency is TCFRAN93.DOC -29- Language underlined is Added Language stricken is Deleted INDIAN RIVER COUNTY SOLID WASTE DISPOSAL DISTRICT AGENDA ITEM SWDD DATE: TO: VIA: FiR.OM: SIYBYECT: APR_U- 22, 2002 lAMES E. CI-IANDLER . / COUNTY ADIvi1NIST1KATOR ERIK OLSON, DIKECTOR DEPARTMENT OF UTILITY SERVICE MICI-IAEI, L. i~tLEY, MANAGIIgG DIRECTOR// SOLID WASTE DISPOSALDIST~CT ~'/: ,f]~ ~OOTIATIONS ~ SOL~ WAS~ ~C~SE~ ~OLDE~S BACKGROITND At the 4 September 2001 BCC meeting, the curbside recycling contract (CSR) was ex~ended until 31 March 2002 to coincide with the municipal solid waste 0VISW) pick up contract. At th/s same meeting, the BCC directed staff to enter into negotiations with the two ex/sting solid waste franchise haulers, Waste Management and Treasure Coast Refuse, in an attempt to reach satisfactory terms for the franchise renewals. If satisfactory results could not be reached, putting a contract on the street for bidding was authorized. Prior to entering negotiations, we developed a survey, which was sent to every 'County in Florida, to determine ex/sting franchise conditions. We also suggested that both franchise holders provide information on new tLFP's they were aware o~, which they did, and proved to be e~remety useful for us. From this information we determined a range of prices, services, franchise fees and performance standards. ANALYSIS In brief; our goals were to mm-dmize benefits to our citizens and businesses, revise performance standards, provide predictable stability, equalize residential rates (~oresentiy Waste Management charges $t2.39 per month and Treasure Coast charges $13.90 per month for single family residential), increase recycling, minimize the 5scat impact on the SVFf)D budget and provide a fair return to the franch/se holders. Previously, Indian River County's Franchise Agreement with Waste Managemem and Treasure Coast tLefuse allowed for annual CPI rate increases. The annual increases were predicated upon an annual request from each hauler. Waste Management has in the past opted to forego its annual rate increase(s) resulting in a substantial savings for Indian River County. While Treasure Coast Refuse has in the past exercised its option for annual rate increases, the company will now be decreasing its rate with a 12% decrease. As a result, both companies are considered to be cooperative in Indian River County's desire to mmximize its cost savings when negotiating the renewal of the haulers' contracts. Our philosophy was to provide a win/Mn situation for ail involved. Aisc discussed by the Utility Advisory Committee was the possibility of requiring mandatory MSW collection for new residential developments along with allowing the franchise holders to negotiate with Proper Owner's Associarions, beth of these will be discussed at a later date, and are not incorporated into the c"arrem stm=f recommendations. During our review of lancif~l usages, sta~ determined that there were actually four categories of commercial users of the C/D landfill. They are: · Category I) The smali independent business-person who cleans up C~D debris for a fee utilizing trucks or small containers not utilizing a roll-off container system; · Category 2) The construction company who hauls C/D generated as a byproduct of their business; · Category 3) Companies that utit/ze a roll-offcontainer system in the exact same manner as the two existing franchise holders, however they have no license from SWDD nor do they pay a franck(see fee; · Catego~ 4) Treasure Coast and Waste Management who utilize roll-off container systems. It should be noted that the compardes covered by CaTegory 3 above, number approximately two and account for approxknately 2% of the total monthly C/D revenues. Stalls concerned that not only do the haulers listed in 1 and 3 above do not pay a franchise fee but also do not'operate under the same regulatioris as Waste Management and Treasure Coast do. Several negotiation sessions were held starthig in late November. It must be noted that the members of Waste Management and Treasure Coast Refuse negotiating teams were quite interested in continuing thek relationskip with Indian River County and were willing to listen to our concerns regarding price, performance standards, construction/demolition service and to work with us to develop an acceptable franch/se a~eement. P,.E C OM/V[EN'D ATI ON 1) The CSR and MSW franchises will be combined into one, with two franchise holders with the ex/sting boundaries, Waste Management North County, Treasure Coast South County. 2) Franchise will be for seven (7) years, effective at the sigx~/ng of the revised franchise agreement. (Present franchise is for 10 years.) 3) Equalize both monthly single family residential rates at $I2.39 per month. 4) Limit commercial C/D hauling with roil-off containers to Treasure Coast and Waste Management only. 5) Allow conUnerciaI C/D hauling by small businesses (Category 1) which do not employ roll-off containeis. However, they will be required to obtain a C/D hauling license and pay a service fee of 6% ofC/D hauling revenues. 6) The existing performance standards wll/be replaced with one modeled on those ut/l~zed by Orange and Pakn Beach Counties. 7) The franchise fee w/lI remain at 6%. 8) The armual raise for MSW and CSR will be based on the CPI and effective 1 October of each year. 9) Both franchise holders will do an education campaign two rimes a yea.r, either generic recycling or I~RC specific; $2,000.00 will be spent on each campaign. 10) There will be no change to commercial collection rates. I 1)The 12~C BCC will ,at b,e~adverse to either franchise holder subcontracting services to small businesses. ALTERNATIVES 1) Grandfather e~sring :ommercial C/D haulers that employ roll-og containers (Category 3) and require that they pay a licensing fee and service fee to SWDD. Sta~ recommends accepting the negotiated a~eements number 1 thru 11 listed above, issuing a seven (7) year contract with Treasure Coast and Waste Management utilizing the aforementioned changes. In reviewing the process of franchise renewal, the County Attorney recorranends that an ordinance be developed defining the criteria and reguiadons that would be incorporated in the franch/se a~eement. Therefore, subject to the BCC's approval of the above staff recommendations, staff will bring back for BCC approval the franch/se contract and an ordinance related to waste hauling with the County. APPROVED FOR AGENDA COIffNTY ADM2NISTRATOR MLF/dc MyDocuments/Agendas/NEGOTIATIONS/msm