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SWDD Item <br />Indian River County, Florida <br />Solid Waste Disposal District <br />Board Memorandum <br />Date: June 9, 2022 <br />To: Jason E. Brown, County Administrator <br />From: Sean C. Lieske, Director of Utility Services <br />Prepared By: Himanshu H. Mehta, PE, Managing Director, Solid Waste Disposal District <br />Subject: Approval of FY 2023 CPI Adjustment Request by Waste Management for Franchise Agreement <br />Descriptions and Conditions: <br />On April 21, 2015, the Indian River County (IRC) Solid Waste Disposal District (SWDD) Board entered into <br />a Franchise Agreement for the Solid Waste and Recyclables Collection with Waste Management Inc. of <br />Florida (WMIF). WMIF started providing services on October 1, 2015. Article 16 of the Franchise <br />Agreement provides for the compensation provision of the services specified in the referenced Exhibit 1, <br />along with a rate adjustment process specified in the referenced Exhibit 4 of said agreement. Per <br />Amendment No. 1 to the Franchise Agreement, dated October 4, 2016, the maximum rate adjustment <br />was limited to 3%. <br />On June 2, 2022, WMIF submitted an annual rate adjustment request of 3.00% to be effective October 1, <br />2022, for Fiscal Year (FY) 2022/2023. In addition, due to extraordinary inflationary cost increases, WMIF <br />requested a 17.43% adjustment to the residential subscription rates only for consideration by the County <br />Administrator. On June 9, 2022, a conference call was held with WMIF to negotiate this request. WMIF <br />understood that staff could not support the 17.43% increase and elected to maintain their original request <br />of 3.00%. <br />This agenda item is requesting SWDD Board approval for the Consumer Price Index (CPI) adjustment <br />request by WMIF. <br />Analysis: <br />Staff has reviewed, verified, and recommends the approval of the request by WMIF of 3.00% of the <br />residential and commercial rates, as specified in the attached Exhibit 1. In summary, here are the changes: <br />Residential Unit <br />FY 2015/16 <br />FY 2016/17 <br />FY 2017/18 <br />FY 2018/19 <br />FY 2019/20 <br />FY 2021/22 <br />FY 2022/23 <br />Change from <br />Rate <br />Rate <br />Rate <br />Rate <br />Rate <br />Rate <br />Rate <br />Prior Year <br />Single Family <br />$9.68 <br />$9.68 <br />$9.83 <br />$10.01 <br />$10.14 <br />$10.44 <br />$10.75 <br />$0.31 <br />Subscription <br />Single Family <br />Universal/mo. * <br />$7.73 <br />$7.73 <br />$7.85 <br />$8.00 <br />$8.10 <br />$8.34 <br />$8.59 <br />$0.25 <br />Billed Cubic Yard <br />$4.73 <br />$4.73 <br />$4.80 <br />$4.89 <br />$4.95 <br />$5.10 <br />$5.25 <br />$0.15 <br />Billed Cart Service <br />$9.46 <br />$9.46 <br />$9.60 <br />$9.78 <br />1 $9.91 <br />1 $10.21 <br />$10.52 <br />$0.31 <br />125 <br />SWDD Agenda - Approval of FY2023 CPI Adjustment Request by Waste Management for Franchise Agreement Page 1 of 3 <br />