HomeMy WebLinkAbout2018-180SECOND AMENDMENT TO
RECYCLABLES TRANSFER, PROCESSING & MARKETING SERVICES
AGREEMENT
THIS SECOND AMENDMENT ("Amendment") to for Recyclables Transfer, Processing
& Marketing Services Agreement (the "Agreement"), is made and entered into as of this 18 day
of September, 2018, 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 Department of
Utility Services, 180127 1h Street, Vero Beach, FL (hereinafter "SWDD") and Tropical Exchange
Corp., a Florida Corporation, d/b/a Tropical Recycling, 2625 Electronics Way, West Palm Beach,
FL, 33407 (hereinafter "Tropical" or the "Processor").
and
WHEREAS, on August 21, 2012, SWDD and ReCommunity entered into the Agreement;
WHEREAS, per the First Amendment on July 14, 2015, ReCommunity assigned the
Agreement to Tropical with the prior express written consent of SWDD; and
WHEREAS, Tropical has been providing Single Stream recycling processing services
under the Agreement beginning October 1, 2015; and
WHEREAS, Tropical is being paid a Processor's Fee of $88.00/ton and is providing a
revenue share of 7 5. 1 % for Single Stream recycling under the extended initial term; and
WHEREAS, the initial extended term is through August 31, 2020 with an option for a
single two (2) year extension; and
WHEREAS, Tropical has requested consideration for extending the Agreement to the full
term through August 31, 2022; and
WHEREAS, Tropical has offered to compensate SWDD for landfill residue disposal and
landfill cover materials.
NOW, THEREFORE, in consideration of the mutual undertakings herein, and other good
and valuable consideration, the parties agree as follows:
Page I of 4
Section 1. Recitals. The above recitals are true and correct and are incorporated herein.
Section 2. Agreement Term. The original Article II is hereby deleted and is replaced as
follows:
Except as otherwise provided for herein, the obligations of the Parties shall take effect on
the Effective Date and Processor shall commence accepting Recyclable Materials for
transportation, processing and marketing in accordance with this Agreement on the
Commencement Date. The extended initial term of this Agreement (the "Term") shall terminate
eight (8) years from the Commencement Date which was September 1, 2012. The District and
Processor, by written mutual agreement, extend the Term for an additional two (2) year term
terminating on August 31, 2022.
Section 3. Article IV: Processor Responsibilities, Section 4.4 Processing and Marketing is
hereby amended to add provisions (c) and (d) as follows:
effect.
(c) Landfill Residue Disposal Rate. Tropical has requested to return the residue from
their processing to the Indian River County Landfill. Tropical is hereby agreeing to
pay the Landfill Residue Disposal Rate which has been calculated to be $19.08 per
ton, to be adjusted annually as part of the SWDD Assessment Rate Resolution
process. See attached rate calculation sheet provided as Exhibit A to this Amendment.
(d) Landfill Cover Material Rate. Tropical has requested to return the processed glass
from their processing to the Indian River County Landfill for use as cover material.
The processed glass shall be less than 3/8" minus. Tropical is hereby agreeing to pay
the Landfill Cover Material Rate of $7.00 per ton. SWDD may stop accepting the
processed glass as landfill cover material if it is deemed unacceptable for such use
either by SWDD, our landfill operator or the Florida Department of Environmental
Protection (FDEP). In no way should the landfill residue be co -mingled with the
processed glass for landfill cover material.
All other provisions of the Agreement and First Amendment shall remain in full force and
(Remainder of this page is intentially left blank)
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ATTEST: Jeffrey R. Smith, Clerk of
Court ano Comptroller
By: oj /"
Deputy Clerk
APPROVED:
INDIAN RIVER COUNTY SOLID
WASTE DISPOSAL DISTRICT
Peter D. O'Bryan,
BCC approved: September 18, 2018
Date
APPROVED AS TO LEGAL FORM
AND SUFFICIENCY
By:
ylan Reingold
County /attorney
WITNESSES: TRO
C By: -
Name:
Title:
Dated:
HANGE CORP.
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Exhibit A — Landfill Residue Disposal Rate Calculation
Tropical Recycling Financial Analysis
Estimated Cost to Landfill Residue from processing operations - FY 2018/19
Expense Description
Estimated Cost
per Ton
Landfill Operations Contract (Republic)
$13.49
(1)
Landfill Closure Costs
$2.28
(2)
Long-term Care Costs
$0.46
(3)
General & Administrative Costs
$1.64
(4)
Land Costs
$0.64
(5)
Support Facilities Costs
$0.56
(6)
Total Estimated Costs
$19.08
(1) This is the 2019 calendar year cost of the County's contract with Republic Services to place
material in the Class I landfill. Future year unit costs will be adjusted based upon changes in the
Consumer Price Index for the Southeast region of the United Sates. The January 2019 CPI
adjusted rate is $13.49.
(2) Estimated landfill closure costs based upon FY 2016/17 Financial Assurance Report completed
by CDM, effective September 2017. Segment 1l has a total capacity of 4,058,000 cubic yards, and
an estimated closure cost of $9,270,090. For purposes of this analysis 1 cubic yard is estimated
to be equivalent to 1 ton of waste.
(3) Estimated long-term care costs based upon FY 2016/17 Financial Assurance Report completed
by CDM, effective September 2017. Segment 111 has a total capacity of 14,051,755 cubic yards,
and estimated inflation adjusted long-term care costs of $6,483,000 over the required thirty-year
period. For purposes of this analysis 1 cubic yard Is estimated to be equivalent to 1 ton of waste.
(4) The current General & Administrative rate of 9.4324% for FY2018119 has been applied to the
other costs to arrive at the estimated overhead costs.
(5) Based upon total cost of all land acquired for the landfill location and total cubic yards for
segments 1 through iii per CDM Financial Assurance Report for 2015.
(6) Based upon acquisition cost of landfill improvements, except closure assets divided by total
cubic yards for segments l through Ii! per CDM Financial Assurance Report for 2015.
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