HomeMy WebLinkAbout2016-169AFIRST AMENDMENT TO SOLID WASTE AND RECYCLABLES
COLLECTION FRANCHISE AGREEMENT BETWEEN INDIAN RIVER
COUNTY SOLID WASTE DISPOSAL DISTRICT (66SWDD") AND WASTE
MANAGEMENT INC. OF FLORIDA ("FRANCHISEE")
THIS FIRST AMENDMENT TO SOLID WASTE AND RECYCLABLES
COLLECTION FRANCHISE AGREEMENT BETWEEN INDIAN RIVER COUNTY
SOLID WASTE DISPOSAL DISTRICT ("SWDD") AND WASTE MANAGEMENT INC.
OF FLORIDA ("FRANCHISEE") ("First Amendment") is entered into as of the 4th day of
October, 2016 by and between the Indian River County Solid Waste Disposal District, a dependent
special district of Indian River County, Florida whose address is c/o Indian River County Utilities
Department, 1801 27`h Street, Vero Beach, Florida, 32960 ("SWDD"), and Waste Management,
Inc. of Florida, a Florida corporation, whose address is 2700 Wiles Road, Pompano Beach, Florida,
33073 ("Franchise").
RECITALS
WHEREAS, on April 21, 2015, SWDD and Franchisee entered into the Solid Waste and
Recyclables Collection Franchise Agreement Between Indian River County Solid Waste Disposal
District ("SWDD") and Waste Management Inc. of Florida ("Franchise") (the "Agreement"); and
WHEREAS, SWDD and Franchise desire to decrease the likelihood of significant
fluctuations in rates in future years under the Agreement; and
WHEREAS, in order to accomplish such goal, SWDD and Franchisee have agreed to
eliminate the natural gas component of the rate adjustment and reduce the maximum rate
adjustment to 3.0%;
NOW THEREFORE, in consideration of the mutual undertakings herein and other good and
valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties
agree, as follows:
1. Recitals. The above recitals are true and correct and are incorporated herein.
2. Article 6.6 Amended. The second sentence in Article 6.6 is hereby amended as follows:
"The CPI to be used is defined in Revised Exhibit 4."
3. Article 16.1.2.1 Amended. Article 16.1.2.I is hereby amended as follows:
"All unit prices shall remain the same through the first two Years yew of the Franchise
Agreement."
4. Article 16.1.2.2 Amended. The first sentence in Article 16.1.2.2 is hereby amended as
follows:
Page I of 2
"Be ng in 2017 Franchisee may request an annual rate adjustment."
5. Article 16.1.2.3 Amended. Article 16.1.2.3 is hereby amended as follows:
"If a rate adjustment is requested, the calculation shall be made as specified in Revised
Exhibit 4 and shall not exceed three end-a-hWfpereent (3.30%) or as approved by SWDD. "
6. Exhibit 4 Revised. Exhibit 4 to the Agreement is hereby revised and replaced with Revised
Exhibit 4, attached to this First Amendment.
7. All other provisions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, SWDD and Franchisee have executed this First Amendment this 4th
day of October, 2016:
ATTEST:
Jeffrey R. Smith Clerk of Court and
Comptroller
By:"`
putt' Clerk
APPROVED BY:
Jason Ej Br0*n. County Administrator
Signed, ssWed and delivered in the
presence of
RONAiA M. KAPLAN, ASST. SEC.
not Name:
Print Name: let'.,
Page 2 of 2
SOLID WASTE DISPOSAL DISTRICT
INDIAN RIVER COUNTY, FLORIDA
Lin
Bob Solari, Chairman
Board of County Com
Date Approved by SWDD:
APPROVED AS TO FORM AND LEGAL
SUFFICIENCY:
ytan Reingold, County Attorney
FRANCHISEE:
WASTE MANAGEMENT, INC. OF FLORIDA
Print Native; TIMOTHY Q HAWKINS, PR'ES.
Print Title: IN- ;
REVISED EXHIBIT 4 — CALCULATION OF RATE ADJUSTMENT
One Hundred Percent (100%) of the rate adjustment shall be based on seventy-five percent (75%) of the
change in the Consumer Price Index (CPI) between the month of April in the prior year (CPI1) and the
month of April in the current year (CPI2). The CPI shall be the South Urban Region, All Items — All Urban
Wage Earners and Clerical Workers, published by the United States Department of Labor, Department of
Labor Statistics (Series ID = CWUR0300SA0)
If the designated index is discounted or substantially altered, SWDD may select another relevant price
index published by the United States Government or by a reputable publisher of financial and economic
indices.
The total rate adjustment is rounded to the nearest hundredth of a percent and in any given year shall
not exceed three percent (3.0%) of the previous rate.
FORMULA FOR CALCULATING ANNUAL RATE ADJUSTMENT
Annual Adjustment (as a Percentage) AA = (((CP12 - CPI1) / CPI1) * 0.75));
New Rate = Round ((Current Rate + AA*Current Rate), 2)
Where:
"0I1" = published CPI average for the month of April of the prior year
"CPI2" = published CPI average for the month of April of the current year
SAMPLE CALCULATION OF ANNUAL RATE ADJUSTMENT INCREASE
Assumptions: Current Rate = $9.68 CPI1= 226.618
CPI2 = 227.955
Annual Rate Adjustment = ((227.955-226.618)/ 226.618) * 0.75) = 0.44%
Annual Rate Adjustment of 0.4496 is less than 3.0% the maximum allowed.
New Rate = ROUND ($9.68 * (1 + 0.0044), 2) _ $9.72
SAMPLE CALCULATION OF ANNUAL RATE ADJUSTMENT DECREASE
Assumptions: Current Rate = $9.68 CPI1= 226.618
CP12 = 225.618
Annual Rate Adjustment = ((225.618-226.618)/ 226.618) * 0.75) _ -0.33%
New Rate = ROUND ($9.68 * (1 + (-0.0033), 2) _ $9.65