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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. m 5EBAST Zbw 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