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DEC 161991 UaK { TO: The Honorable Members of the DATE: December 9, 1981 FiLE: Board of County Commissioners Public Hearing for Waste SUBJECT: Management, Inc. of Florida Transfer of Franchise FROM: Neil Nelson, REFERENCES: County Administrator DESCRIPTION AND CONDITIONS An application has been submitted to Indian River County for a transfer of the Indian River Sanitation Service franchise to Waste Management, Inc. of Florida. This change is for a transfer of ownership only. All current customers will be serviced by Waste Management and there will be no change of present rates. ALTERNATIVES AND ANALYSIS Indian River Sanitation Service was granted a franchise for garbage and trash service in the unincorporated areas of the county on October 3, 1975. They have been in continuous operation since that date. Waste Management and Indian River Sanitation have furnished all infor- mation requested by staff. This material has been reviewed by the staff and meets with general approval. The staff's requested information is included as follows: Financial information for Waste Management, Inc. of Florida rather than Waste Management, Inc., a list of litigation now pending, and a copy of the company's latest audit report and the 1OK filed with the Securities Exchange Commission. Indian River Sanitation Service furnished a copy of their financial statement, and a copy of the purchase agreement, which were reviewed. Harris Sanitation, a company owned by Waste Management, Inc. (800 N.W. 62nd Street, Ft. Lauderdale, FL 33309_) has applied for a franchise on two previous occasions. This application was denied by the Board of County Commissioners on both occasions (Aug. 20, 1975 and Feb. 11, 1981) due to the applicant showing a lack of need for the additional service at that time. A copy of the minutes of those meetings are included as information in the package of back-up material. The Indian River Sanitation Service franchise was granted on October 3, 1975, for a period of 30 years and therefore does not expire until October 3, 2005. The sales agreement requires the approval of this transfer before January 1, 1982. The expiration date is brought to the attention of the Commission and should be considered with other recommendations below. This hearing has been advertised for the loth day of December, 1981, 2:30 P.M. in the Press Journal and published on December 2, 1981. RECOMMENDATION AND FUNDING Inas,ruch as all data and information requirements have been rrnet, and there is a deadline for approval of this franchise transfer, we recommend approval subject to renegotiation of the franchise within 120 days after approval is given. The intent of this renegotiation is to upgrade the terms of the 1975 franchise to the most recent wishes of the Board of County Commissioners. This will include, modernizing the language as well as providing for a suitable formula for franchise fees to be paid to the county, as well as reviewing the appropriate expiration date of the franchise. 55