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HomeMy WebLinkAboutMinutes_Solid Waste Negotiation Committee_07/07/2017 MINUTES VILLAGE OF TEQUESTA SOLID WASTE 8� RECYCLING COLLECTION SERVICES ,�� July 7, 2017 NEGOTIATION SESSION WASTE MANAGEMENT CALL TO ORDER AND ROLL CALL The meeting was called to order at 9:00 AM by Mr. Chris Quirk, Village Finance Director. A roll call was taken by Village Clerk Lori McWilliams. Present were: Mr. Chris Quirk, Finance Director; Mr. Keith Davis, Village Attorney; Mr. Doug Chambers, Deputy Public Works Director; Mr. Sam Heady, Deputy Director of Water Utilities and Mr. Michael Couzzo, Village Manager. PRESENTATIONS 1. Negotiation between Village Negotiating Team and Waste Management Negotiating Team Waste Management had the following representatives attend the negotiation session: Mr. Jeff Sabin, Government Affairs Manager; Mr. Michael DeClerck, Senior District Manager for Martin County; Mr. Ronald Kaplan, Senior Legal Counsel; and Mr. Duane Robinson, Operations Manager. Mr. Chris Quirk thanked Waste Management for serving the Village for the past decade and invited the representatives to speak. Mr. Jeff Sabin stated that the prior contract was sound, but could use some updating, as parts of it were somewhat antiquated. He recommended going thru the agreement to identify some factors that would lead to the rate going forward. The Village committee agreed and noted that the level of service had been outstanding. It was revealed that a larger container for recycling was not available due to the fact that Palm Beach County did not participate in single stream recycling as per the Solid Waste Authority. It was agreed that the areas of the agreement that illustrated a change from the prior contract would be discussed first. Manager Couzzo stated that the Village would not be policing the roll-off portion of the agreement. Waste Management felt that the language in the agreement should be clear if Waste Management was to handle it. Mr. Jeff Sabin indicated that if the Village was interested in a contract term of over 5 years, the rate could then be adjusted. Mr. Chris Quirk stated that the Village had an interest in considering an extension of the term. r Minutes—Waste Management Negotiation Session 7/07/2017 Page 2 Mr. Ronald Kaplan, Legal Counsel for Waste Management, asked for a size limit on construction debris that a resident would be able to put out for one collection. It was agreed that this was not a large issue and that the language did not need to be changed. Attorney Davis asked for clarification on the definitions for commercial service, roll-off service and multi-family collection. Mr. Kaplan explained that the language was changed slightly to indicate multiple family with a container or some other service. It was not an issue from Waste Management's perspective, but from the way the Village established billing. Manager Couzzo asked to keep the language the same, however, if any additional services required compensation, both the residential owner and the Village should be notified and recorded. He added that any additional services provided outside the terms of the agreement needed to be notated, and provided to the Village. Manager Couzzo asked that commercial pick up adhere to the hours of 7 a.m. to 7 p.m. due to the close proximity to residential areas. The current language stated that commercial pick up could begin at 6 a.m. Waste Management agreed to the change. Mr. Sabin revealed that storm debris was not Waste Management's specialty. They could assist with local events but a storm debris company would be necessary for waste pickup after a large-scale event. Waste Management would add language to ensure clean up after an "unnamed event". Mr. Sabin indicated that the time-frame in going towards natural gas on the Waste Management trucks was undefined at this point. The vehicles currently used were an average of l years old with a maximum of 10 years of age and were in good condition. Attorney Davis asked about having a uniform type of garbage can throughout the Village. Mr. Sabin responded that it was not part of the contract but could be a possibility in the future. A "cart program" may be possible when the conversion to natural gas occurred. Once a decision was made, the Village could possibly provide the containers. The holiday schedule was discussed and it was decided that Thanksgiving and Christmas would not have pickup, however, New Year's Day was a scheduled pick up date. Manager Couzzo asked for additional language that would recognize any changes to the recycling of materials, and in addition, requested the Village and its' residents receive notice of such changes. Waste Management proposed to have the CPI (Consumer Price Index) changed to the WST (Water, Sewer and Tax Index). Manager Couzzo asked to come back to the topic when discussing cost. It was mentioned that Waste Management did not offer "shred" services to municipalities. Manager Couuo suggested an annual report be prepared by Waste Management to present to Council in October of each year. 1 Minutes—Waste Management Negotiation Session 7/07/2017 Page 3 Waste Management assured the Committee that there were no franchise fees associated with the contract. Attorney Davis asked if the surety bond could be increased to $500,000 from the current $300,000. It was agreed that the current bond amount was outdated. Manager Couzzo left the meeting at 10:15 a.m. Mr. Chris Quirk asked for the language on the reconciliation portion of the contract to be changed to show the adjustments per year. He also mentioned that he was hoping for rates to stay the same or be reduced. Mr. Sam Heady inquired as to why Jupiter had lower rates and it was revealed that the Village rates were actually lower. Mr. Sabin proposed a change in the conversion from the CPI index and the elimination of fuel altogether. He explained that going to the TCI (Trash Collection Index) was a more accurate representation of the waste business. Mr. Quirk asked why there would be an increase in rate if Waste Management's operating income was up, but their expenses stayed the same or had decreased. He opined that the correlation did not fit with a 2.5-5% increase each year. Mr. Sabin explained that the information was a culmination of the entire corporate picture, and captured all types of services. He added that it was not a true reflection of the hauling services data only. Mr. Sam Heady asked to see date showing a comparison chart comparing the CPI and the TCI. Waste Management agreed to do a "look back" and a comparative would be established. Mr. Sabin emphasized the WST index increase was reflective of actual cost increases. He felt the CPI was unrealistic as many of it's costs were negated based on types of materials and products, including fuel. The industry was moving in this direction because of costs increasing more rapidly than consumer prices or COLA (Cost of Living Adjustment). Mr. Quirk reiterated his stance on the increase of 5% and felt it was undesirable for the Village. He requested the rates stay the same or be lowered. Mr. Sabin stated that a longer contract could provide more flexibility in the rate structure. The Village agreed to an 8-year contract with an option of 5 additional years. Mr. Quirk provided a millage rate handout and explained how the Village has tried to keep costs down for the residents. Mr. Sabin remarked that it was the maturity of the community in addition to the amount of yard waste generated, that affected the rate. He mentioned that younger families moving into the area also generated more waste. Minutes —Waste Management Negotiation Session 7/07/2017 Page 4 Mr. Sam Heady asked for clarity on the proposed rate. Mr. Jeff Sabin proposed keeping the rate at $12.29 and placing a reasonable cap on increases. He offered the Village a WST with a cap in the 4% range. It was revealed that the commercial rates were less sensitive than the residential rates. Waste Management asked to go back to review their records relating to commercial rates in order to come up with a more flexible number for the residential rates. The series identification number was revealed as CUUROOOOSEHG. Another meeting was set for July 21, 2017 at 2:00 p.m. to discuss further the rate proposal with both sides proceeding in good faith and noting that more information was needed. ADJOURNMENT: The meeting was adjourned at 11:05 a.m. Respectfully submitted, o� � �'l e�� Lori McWilliams, MMC Village Clerk Note: These summary minutes are prepared in compliance with 286.011 F.S. and are not verbatim transcripts of the meeting. A verbatim audio record is available from the Office of the Village Clerk. All reference attachments are on file in the Village Clerk's Office.