Article II. Administration of agreement by city.  


§ 2-1. Charges for Services Provided by Contractor.
Effective on Tuesday, February 20, 2018

The City Commission shall approve all rates charged to residential or commercial customers for services provided under this agreement. The Contractor may petition the City for rate adjustments at reasonable times on the basis of unusual changes in the cost of doing business, such as revised laws, ordinances, or regulations, changes in location of disposal sites or changes in disposal charges or material changes in the value of recycling commodities defined as a decline of more than 20%, and no such request shall be unreasonably denied. The City may petition the Contractor for rate adjustments at reasonable times on the basis of unusual changes that decrease the cost of doing business, such as revised laws, ordinances, or regulations, changes in location of disposal sites or changes in disposal charges, decreases in the tonnage collected relating to solid waste for residential and/or commercial customers, and no such request shall be unreasonably denied.

(Ord. No. 2018-02, § 1, 02-20-2018)

§ 2-2. Billing and Payment for Services Provided by Contractor.
Effective on Tuesday, February 20, 2018

The City shall bill residential customers for services rendered by the Contractor and remit a pro-rated per customer rate to the Contractor as provided in this agreement. Contract fees will apply only to actual services rendered per residence. "Actual Service" will be linked to the status of utility service at the residence; i.e., utility service on "vacation status" or disconnected for any reason shall not be considered to be "active". Solid waste collection service shall not be considered to have been rendered while the utility account is not on active status. With each remittance, the City shall provide the number of "Active" pro-rated residential customers at the time of the most recent preceding billing. In June 2010 the City billed 4,443.72 residential solid waste customers. Charges for solid waste collection, recycling, and disposal services shall be included on the residential customer's utility bill and shall be billed during the regular utility billing cycles following the close of the month when solid waste services are provided. The City Commission, by ordinance, may change the billing and collection period and method for any service individually or all services collectively.

it is recognized that disagreement may occur between the City and the Contractor related to billing and remittance due to the Contractor. When disagreement occurs concerning the contract provisions governing the customer rate, customer count, and/or whether billing period(s) were correctly calculated, the City Manager or his/her designee will make the determination. The City Manager's determination shall be final, conclusive and binding upon both the City and the Contractor. The City Manager shall make such explanation as may be necessary to explain or justify his/her interpretation of the applicable contract provision(s). if the City Manager and Contractor are unable to reach a mutually acceptable payment schedule, the City shall deduct from the next scheduled payment(s) to the Contractor any overpayment previously made to the Contractor. In the event the Contractor does not agree with the City Manager's determination, the Contractor may appeal to the City Commission within thirty (30) days of the City Manager's decision.

The Contractor shall bill commercial and roll-off customers for services rendered and remit franchise fees to the City as provided in this agreement.

Accounts to be billed and payments due to the Contractor shall be determined as follows:

A. Residential accounts

A residential unit shall be deemed to be receiving solid waste collection, recycling, and disposal services when utility services are supplied thereto. Contract fees will only apply to actual services rendered per residence. "Actual Service" will be linked to the status of utility service at the residence; i.e., utility service disconnected for any reason are not considered to be "active". However residents on "vacation status" will be charged vacancy rate of 25% of the normal residential rate.  Accordingly, each residential unit considered to be "active" or on “vacation status” shall be billed for solid waste collection, recycling, and disposal services.

Payments to the Contractor will be made on a monthly basis with the first payment made by the 20th of the month following the monthly billing cycle. The first billing cycle will be November 2018 for October 2018 services. The first payment due date will be December 20, 2018. Payments will be made in accordance with Section 2-3,hereof.

B. Commercial accounts

A commercial unit shall be deemed to be receiving solid waste collection and disposal services when an occupational license has been issued on a permanent or conditional basis. The Contractor shall invoice commercial and roll-off customers accordingly. The contractor shall pay the franchise fees at the end of each quarter by the 20 of the month following the end of each quarter in accordance with Section 2-4, hereof. For services rendered during fiscal year 2018-2019, the commercial rate shall be $7.46 per cubic yard. The rates shall be adjusted annually on each anniversary date beginning October 151 to reflect an increase based on Consumer Price Index for All urban Consumers (Water, Sewer and Trash Collection Services) US. Average, as published by the United state Department of Labor, Bureau of Labor Statistic The minimum increase shall be 2.5% annually; however, Contractor may petition the Commission if index is greater than 2.5% but in no event shall the total increase exceed 3%. 

(Ord. No. 2018-02, § 1, 02-20-2018)

§ 2-3. Residential Payments.
Effective on Tuesday, February 20, 2018

Payments shall be calculated based on fixed per customer rate multiplied by the pro-rated number of City active residential solid waste customers. "Actual Service" will be linked to the status of utility service at the residence; with or plus the number of residential solid waste customers on "vacation status" billed at the 25% vacancy rate.

The rates shall be adjusted annually on each anniversary date beginning October 1st to reflect an increase based on based on the Consumer Price Index for all Urban Consumers (Water, Sewer and Trash collection Services)  or two and one-half percent (2.5%), whichever is greater, but not to exceed three percent (3%)without further need for Commission action. In addition, should the price of diesel fuel increase or decrease by an extraordinary rate of ten percent (10%) of the base rate of $2.75 per gallon, the Contractor or the City may petition and shall be granted a pass through cost increase or decrease based on monthly gallons used and difference in price to be calculated and allocated per customer per month. Should the fuel cost not exceed the ten percent (10%) threshold, the rate would be adjusted via the CPI. Should the fuel cost have to be adjusted upward, that portion will be removed from the CPI calculation. Should the fuel cost fall below $2.75 per gallon, the CPI calculation will be lowered for the fuel cost portion. Example: If a fuel cost adjustment is required and fuel cost represents ten percent (10%) of the Contractor's operating budget then the CPI will be reduced ten percent (10%) before the fuel cost adjustment is added or if the fuel cost falls below $2.75 per gallon the CPI-will be reduced the ten percent (10%).

The same formula will apply to the Commercial customers. The fuel cost will be calculated and allocated per cubic yard.

(Ord. No. 2018-02, § 1, 02-20-2018)

§ 2-4. Franchise Fee.
Effective on Tuesday, February 20, 2018

In return for the grant of franchise of provision of solid waste collection and disposal services within the city limits, the Contractor shall pay a franchise fee equal to twelve and one-half (12 1/2) percent of commercial and roll-off invoices. Due to the fact that roll off container service is exclusive, the Contractor agrees to negotiate in good faith with residents to provide competitive rates for such service.

(Ord. No. 2018-02, § 1, 02-20-2018)

§ 2-5. Supervision of Contractor Performance.
Effective on Tuesday, February 20, 2018

The City Manager or his designee shall supervise the Contractor's performance of this agreement, and the Contractor shall be so notified in writing by the City Manager or his/her designee. If at any time during the life of the agreement, performance satisfactory to the City Manager shall not have been made, the Contractor, upon notification by the City Manager, shall increase the force, tools and equipment as needed to properly perform this work under this agreement. The failure of the City Manager to give such notification shall not relieve the Contractor of his obligation to perform the work at the time and the manner specified by this agreement.

(Ord. No. 2018-02, § 1, 02-20-2018)

§ 2-6. Disagreements Between Contractor and City.
Effective on Tuesday, February 20, 2018

To prevent misunderstanding and litigation, the City Manager or his designee shall decide any and all questions which may arise concerning the quality and acceptability of the work and services performed, the sufficiency of performance, the interpretation of the agreement provisions, and the acceptable fulfillment of the agreement on the part of the Contractor.

The City Manager will determine whether or not the amount, quantity, character and quality of the work performed is satisfactory, which determination shall be final, conclusive and binding upon both the City and the Contractor. The City Manager shall make such explanation as may be necessary to complete, explain or make definite the provisions of this contract.

In the event the Contractor does not agree with the City Manager, the Contractor may appeal to the City Commission within thirty (30) days of the City Manager's decision.

It is recognized that disagreements may arise between the City and the Contractor with regard to the collection of certain items due to interpretation of the specific language in the contract.

In the event a disagreement arises and refuse needs to be collected and disposed of, the City Manager or his designee may notify the Contractor of the location of refuse which has not been collected due to disagreement between the City and the Contractor, and it shall be the duty of the Contractor to remove all such refuse within three (3) days of the notice. Should the Contractor fail to remove the refuse, the City will remove the refuse and the cost incurred by the City shall be deducted from the next scheduled payment to the Contractor for services rendered. Notwithstanding the foregoing, this section does not apply to Excluded Waste.

(Ord. No. 2018-02, § 1, 02-20-2018)