Placement: Consent Agenda
Action Requested: Motion / Vote
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First Amendment to the FCC Environmental Services Franchise Agreement #20220061 (Reduction of the Franchise Fee and the Addition of a Necessary Haul Rate for Commercial Roll-Off Compactors)
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Submitted By: Carmen A. Capezzuto, Director of Neighborhood Services
Strategic Plan Link: The City’s Mission to provide exceptional municipal services.
Executive Summary (General Business): At the City Council’s Summer Workshop in July, the approved annual residential solid waste assessment was based on a 3% franchise fee. This item is for a modification to the City’s Solid Waste Franchise Agreement with FCC Environmental Services Contract #20220061 for the reduction of the residential and commercial Solid Waste Franchise Fee from 4% to 3%. The Franchise Agreement also needs to be amended to include the addition of a necessary haul rate for commercial roll-off compactors.
Presentation Information: N/A
Staff Recommendation: Move that the Council approve the First Amendment to FCC Environmental Services Franchise Agreement (Contract #20220061) reducing the Franchise Fee in Section 39.1.2 to 3% and adding a necessary haul rate for commercial roll-off compactors to Exhibit 3 of the Agreement.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the First Amendment to the FCC Environmental Services Franchise Agreement #20220061.
2. Move that the Council not approve the Franchise Agreement amendment and provide staff direction.
Background: As it relates to the mandatory collection of solid waste in Port St. Lucie, Section 50.13(s) Code of Ordinances states. “The city council is hereby authorized to enter service contracts with any qualified person or entity to provide for the exclusive collection of solid waste and recyclable materials, from residential and commercial property within the solid waste services assessment area. 50.13(b) Service contracts may require payment of a franchise fee as set by city council to compensate the city for the cost of administration, supervision, and inspection rendered for effective performance of contractors and shall include such other terms and provisions as city council may deem necessary or advisable.
Issues/Analysis: Reducing the franchise fee results in lower costs of solid waste collection to all residents and businesses in the City. The haul rate for the commercial roll-off compactors was one price that was inadvertently omitted from the bids that needs to be part of the Franchise Agreement. The haul rates are the maximum the Franchise hauler can charge for this service. The rate of $290 per “pull” is reasonable and consistent with other municipal rates for the same service.
Financial Information: The reduction of the Franchise Fee is a cost decrease to residential customers. The rate of $416.21 was approved by the City Council at the Summer Workshop in July 2022. The haul rate for commercial roll-off compactors is paid by commercial customers who require this type of service.
Special Consideration: N/A
Location of Project: Citywide
Attachments: First Amendment to FCC Environmental Services Franchise Agreement Contract #20220061 and Franchise Agreement with FCC Environmental Services (approved May 2022).
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 8620
Legal Sufficiency Review:
Reviewed by Ella M. Gilbert, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.