HomeMy WebLinkAboutR-2021-154 Waste Management Inc. Renewal of Waste Collection Services ContractRESOLUTION NO.2021-154
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA
BEACH, FLORIDA, AUTHORIZING THE PROPER CITY OFFICIALS TO
RENEW THE WASTE COLLECTION SERVICES CONTRACT WITH
WASTE MANAGEMENT INC.; PROVIDING FOR CONFLICTS; FURTHER,
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City has contracted with Waste Management Inc. of Florida ("WM") for
residential waste collection services since 2003; and
WHEREAS, the current agreement expires on September 30, 2022 and provides for two
(2) five-year renewal options; and
WHEREAS, the Public Services Department recommends that the City enter into an
Interlocal Agreement with Broward County for disposal at the Waste Innovations (WIN) facility,
resulting in significantly lower disposal costs, reducing the WMI collection rates, and allowing
the City to continue genuine recycling services; and
WHEREAS, to realize the disposal cost savings in the collection rates charged by WM,
the City must execute the collection services renewal option at the same time as the Interlocal
Agreement for disposal; and
WHEREAS, the Public Services Department has determined that exercising the collection
services renewal option will result in the seamless continuation of high quality services without
an increase in cost to the City and therefore, deems it in the ,best interest to renew the collection
agreement with Waste Management;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF DANIA BEACH, FLORIDA:
Section 1. That the foregoing "WHEREAS" clauses are ratified and confirmed as
being true and correct, and they are made a specific part of and incorporated into this Resolution
by this reference.
Section 2. That the proper City officials are authorized to approve the renewal of the
WM residential waste collection agreement incorporating a lower cost disposal site.
Section 3. That all resolutions or parts of resolutions in conflict with this Resolution
are repealed to the extent of such conflict.
Section 4. That this Resolution shall be in full force and take effect immediately upon
its passage and adoption.
PASSED AND ADOPTED on October 26, 2021.
ATTEST:
•
THOMAS SCHNEIDER, CMC TAMARA
CITY CLERK �� e MAYOR
q$(/SHEO1�
APPROVED AS TO FORM AND CORRECTNESS:
THOM S J. AN$B O
CITY ATTORN' Y
U
2 RESOLUTION #2021-154
AMENDMENT TO
RESIDENTIAL SOLID WASTE COLLECTION SERVICES AGREEMENT
BETWEEN
THE CITY OF DANIA BEACH
AND
WASTE MANAGEMENT INC. OF FLORIDA
THIS AMENDMENT, entered into this _ day of , 20_, effective January 1, 2022, by and
between the City of Dania Beach, a municipal corporation organized and constituted in
accordance with the laws of the State of Florida (the "City") and Waste Management Inc. of
Florida, a Florida corporation, with a business address at 1800 N. Military Trail, Boca Raton,
Florida, 33431 ("WMIF").
WITNESSETH:
WHEREAS, the City and WMIF entered into that certain Residential Solid Waste
Collection Services Agreement on or about December 1, 2015, which incorporates the Notice to
Proposers, Conditions of the Contract, Specifications, Addenda issued prior to the Solid Waste
Collection Services Agreement, Contractor's Proposal and other documents, exhibits and
attachments (the "Franchise Agreement"); and
WHEREAS. the City and Contractor desire to modify the Franchise Agreement by
extending the term, providing for adjustment to rates, together with additional modifications; and
WHEREAS, the City has determined that this Amendment is in the best interests of City
and its residents.
NOW, THEREFORE, for and in consideration of the mutual promises and covenants
hereinafter contained to be kept and performed by the parties hereto, the parties agree as follows:
1. Recitals: The foregoing recitals are true and correct.
2. Term: Section 3.1 -- The term of the Franchise Agreement is modified so that the
extended term will commence on January 1, 2022 and expire on September 30, 2027. The
Franchise Agreement may be renewed for one additional five (5) year term by mutual agreement
of the parties. In the event WMIF does not elect to renew the Franchise Agreement, WMIF must
provide notice to the City by April 2, 2027 (18 months prior to the expiration of the Franchise
Agreement).
The Residential Fuel Component per dwelling unit in Section 4.1 in the application for
payment submitted to the City shall be deleted in its entirety.
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4. At the end of Section 4.1 of the Franchise Agreement the following paragraph shall be
inserted:
CPI: Commencing October 1, 2022, and each fiscal year thereafter for the Term of the Franchise
Agreement (and any Renewal Term) by adding to the then current Fiscal Year's rate the amount
obtained by multiplying such current rate bythe average change, expressed as a percentage, of
the following indexdeterminedasfollows: On October 1 of each year, WMIF shall be entitled to
receive an annual CPI adjustment on all those costs and rates associated with collection and
recycling processing. WMIF shall provide the CPI adjustment calculation to the City on or before
July 1. The adjustment to the rate shall be calculated as the percent change in the average
Consumer Price Index series CUUROOOOSEHG CPI-U Water and Sewer and Trash Collection
Services, US City Average, not seasonally adjusted ("CPI"), as published by the Bureau of
Labor Statistics by comparing the average of the percentage changes June through May 12
months of the current year of the adjustment, with the same June through May 12-months in
the preceding year. The maximum adjustment pursuant to this paragraph shall be 5% in any
one year. The minimum adjustment pursuant to this paragraph shall be 2% in any one year.
5. Unusual Circumstances. Section 4.1.3 of the Franchise Agreement is replaced with the
following:
WMIF may petition City to adjust Contractor's rates based upon unusual and unanticipated
increases in the cost of doing business, including but not limited to a change in law or regulation
("Change in Law"). Any such request shall be supported by full documentation establishing the
increase in operating costs and the reasons therefor. The City shall be entitled to audit the
Contractor's financial and operational records directly related to the Contractor's request to
verify the increase in costs and the reasons therefor. The City shall approve or deny the request,
in whole or in part, within sixty (60) days of receipt of the request and all other additional
information required by the City. The City shall make a reasonable determination based upon
the documentation provided in reaching its decision and shall not unreasonably deny relief
hereunder.
6. Residential Recycling. Residential curbside single stream recycling shall be delivered
to Sun 12 located at 2380 College Avenue, Davie, Florida, 33317, or any other WMIF facility for
processing at the rate of $100.00 per ton. The processing rate will be adjusted on an annual basis
in accordance with the CPI provisions in Paragraph 4 above.
7. Residential Curbside Solid Waste Disposal: Residential curbside solid waste shall be
disposed of at the Wheelabrator South Plant located at 4400 South State Road 7, Fort
Lauderdale, Florida, 33314.
8. Residential Curbiside Solid Waste Disposal True Up. Residential Curbside Solid
Waste Disposal True -up shall occur at the end of each fiscal year (September 30th). Solid
Waste disposal costs for Residential Curbside units are included in the Residential Curbside unit
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rate. This true -up is calculated by comparing the annual generation factors for Residential
Curbside Solid Waste. The period is from October 1 st through September 30th. This calculation is
as follows: annual Solid Waste tonnage divided by total curbside units 10,025(tons)
7,397(units) = 1.36 T/P/Y. The disposal cost per unit is calculated by the generation factor
multiplied by the disposal rate per ton then divided by 12 months. 1.36 T/P/Y X $47.79(disposal
rate) _ $64.99 _ 12(months) _ $5.41 per unit per month. At the commencement of services under
the Franchise Collection Agreement, annual Residential Curbside Base Solid Waste tons will
be established at 1 0, 0 2 5 tons per year, 7, 3 9 7 total number of units, and $47.79 per ton.
At the end of each fiscal year the City will calculate the actual generation factor and cost of
disposal for Residential Curbside units. Any variance in this generation factor will trigger the
True -Up process. If the actual generation factor is less than the established generation factor,
WMIF has been overpaid therefore shall pay to the City the difference between the initial
generation factor and the actual generation factor. As an example: 1.36 T/P/Y(initial) - 1.10
T/P/Y(actual) = 0.26 X $47.79 (disposal rate) _ $12.43 (annual overpayment/unit) X 7,397(units)
_ $91,944.71 owed to the City. Reimbursement for the overpayment shall be made to the City
by December 15th of that year.
If the actual generation factor is more than the established generation factor, WMIF
has been underpaid therefore the City shall pay the difference between the initial generation
factor and the actual generation factor. As an example: 1.36 T/P/Y(initial) - 1.47 T/P/Y(actual)
= 0.11 X $47.79 (disposal rate) _ $5.26 (annual shortfall/unit) X 7,397 (units) _ $38,908.22
owed to the Franchise Collector. Reimbursement for the underpayment shall be made to the
Franchise Collector by December 15th of that year.
WMIF shall provide reports to the City in accordance with Section 4.1.1 of the Franchise
Agreement, Recordkeeping, Reporting and Inspection Rights.
9. Residential Curbside Bulk Waste Disposal True -Up: Residential Curbside Bulk
Waste Disposal True -up shall occur at the end of each fiscal year (September 30th). Bulk
Waste disposal costs for Residential Curbside units are included in the Residential Curbside unit
rate. This true -up is calculated by comparing the annual generation factors for Residential
Curbside BulkWaste. The period is from October 1 st through September 30th. This calculation is
as follows: annual Bulk Waste tonnage divided by total curbside units 4,327(tons)
7,397(units) _ .58 T/P/Y. The disposal cost per unit is calculated by the generation factor
multiplied by the disposal rate per ton then divided by 12 months. Bulk Waste generation factor
of 0.58 bulk T/P/Y x $38.02 (disposal rate) _ $22.05 _ 12(months) _ $1.84 per unit per month. At
the commencement of services under the Franchise Collection Agreement, annual Residential
Curbside Base B u I k Waste tons will be established at 4, 3 2 7 tons per year, 7, 3 9 7 total
number of units, and $38.02 per ton. At the end of each fiscal year the City will calculate the
actual generation factor and cost of disposal for Residential Curbside units. Any variance in
this generation factor will trigger the True -Up process. If the actual generation factor is less than
the established generation factor, WMIF has been overpaid therefore shall pay to the City the
difference between the initial generation factor and the actual generation factor. As an example:
0. 5 8 T/P/Y(initial) - 0. 3 9 T/P/Y(actual) = 0.19 X $38.02 (disposal rate) _ $7.22 (annual
overpayment/unit) X 7,397 (units) _ $53,434.44 owed to the City. Reimbursement for the
overpayment shall be made to the City by December 15th of that year.
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If the actual generation factor is more than the established generation factor, WMIF has been
underpaid therefore the City shall pay the difference between the initial generation factor and
the actual generation factor. As an example: 0.58 T/P/Y(initial) — 0.71 T/P/Y(actual) = 0.13 X
$38.02 (disposal rate) _ $4.94 (annual shortfall/unit) X 7,397 (units) _
$36,541.18 owed to the Franchise Collector. Reimbursement for the underpayment shall be
made to the Franchise Collector by December 15th of that year.
WMIF shall provide reports to the City in accordance with Section 4.1.1 of the Franchise
Agreement, Recordkeeping, Reporting and Inspection Rights.
10. Written Notice:
Written notice to Owner's Representative shall be amended as follows:
Ana M. Garcia, City Manager
Written notice to Project Manager shall be amended shall be amended as follows:
Candido Sosa-Cruz, Assistant City Manager
Written notice to Contractor shall be amended as follows:
David Myhan, President
Waste Management Inc. of Florida
1800 North Military Trail
Suite 201
Boca Raton, Florida 33431
11. Effective Date: This Amendment shall be effective January 1, 2022.
12. All other terms and conditions not modified herein shall remain in full force and effect.
IN WITNESS WHEREOF, the City and WMIF have set their hands and seals on the day and year
first above written to this Agreement and counterparts, each of which shall constitute an original.
ATTEST:
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CITY OF DANIA BEACH
City Clerk , Mayor
Dated:
ATTEST:
Assistant Corporate Secretary
[CORPORATE SEAL]
Page 5 of 5
WASTE MANAGEMENT INC. OF
FLORIDA
Dated: