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1888 SWDD Item Indian River County, Florida Solid Waste Disposal District Board Memorandum Date: June 2, 2022 To: Jason E. Brown, County Administrator From: Sean C. Lieske, Director of Utility Services Prepared By: Himanshu H. Mehta, PE, Managing Director, Solid Waste Disposal District Subject: Request by Waste Management to Modify Franchise Agreement Descriptions and Conditions: On April 21, 2015, the Indian River County (IRC) Solid Waste Disposal District (SWDD) Board entered into a Franchise Agreement with Waste Management, Inc., of Florida (WMIF) for the Solid Waste and Recyclables Collection (the "Franchise Agreement"). On October 1, 2015 ("Commencement Date"), WMIF started providing contractual services detailed below. The First Amendment to the Franchise Agreement, which related to the annual Consumer Price Index (CPI) adjustment process with an annual cap of 3%, was approved by SWDD on October 4, 2016. The initial term of the Franchise Agreement is for a period of seven (7) years beginning on the Commencement Date and terminating on September 30, 2022. At the sole option of SWDD, the Franchise Agreement may be renewed for one (1) additional term of three (3) years under the same terms and conditions as the initial term, including amendments. SWDD had to notify WMIF by September 30, 2021, of the intent to renew or not renew the Franchise Agreement. SWDD staff issued our intent to renew on September 20, 2021. The Franchise Agreement grants WMIF exclusive collection service for residential and commercial solid waste collection within unincorporated IRC, the exclusive collection of residential recyclables within the recycling franchise area (which includes unincorporated IRC, City of Sebastian, City of Fellsmere, City of Vero Beach, and the Town of Orchid), and an exclusive collection of Construction and Demolition (C&D) debris in containers fifteen cubic yards and greater (>_15 CY) in size within unincorporated IRC. In addition to the exclusive collection of C&D in >_15 CY containers, the Franchise Agreement grants WMIF the non-exclusive collection of C&D in containers less than fifteen cubic yards (<15 CY) in size within unincorporated IRC. WMIF is also able to provide recycling services to commercial properties, but this is considered an open market service by the State of Florida, and as such, it is not exclusive to WMIF. On May 9, 2022, staff received the attached letter from WMIF requesting the modification of the franchise agreement to remove Article 3.1 (c) for the exclusive collection of C&D in >_15 CY containers. 153 SWDD Agenda - Request by WM to Modify Franchise Agreement Page 1 of 3