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CASSELBERRY CITY COMMISSION Minutes of October 13,2008. Regular Meeting Page 100f17 9. PUBLIC HEARINGS A. Second Reading of Ordinance 08-1249 - Franchise Agreement Between Waste Pro of Florida. Inc. and the City ofCasselberrv for Residential Solid Waste Collection Services The City Clerk read Ordinance 08-1249 by title as follows: "AN ORDINANCE OF THE CITY OF CASSELBERRY, FLORIDA, AUTHORIZING THE EXECUTION OF A COOPERATIVE PURCHASE AGREEMENT WITH WASTE PRO OF FLORIDA, INC., FOR RESIDENTIAL SOLID WASTE COLLECTION SERVICES; PROVIDING FOR CONFLICTS, SEVERABILITY, AND EFFECTIVE DATE." Notice of Public Hearing The Notice of Public Hearing relative to Ordinance 08-1249 was published in the Orlando Sentinel on October 2, 2008. Staff Presentation: Mr. Ed Torres, Public Works Director, stated Ordinance 08-1249 provides for a cooperative purchase franchise agreement with Waste Pro of Florida, Inc. (Waste Pro) for solid waste collection services. Currently, the City has a franchise agreement with Republic Services, Inc. for residential solid waste management that will expire on December 31,2008. As stipulated in the current agreement, the City is required to negotiate until an amicable agreement can be reached or, if no such agreement can be reached, the City has the authority to seek alternative proposals. To date, Republic Services has submitted their final proposal, which provides figures that would result in an increase of approximately $10 per month per household over the current rate charged for solid waste services. The Public Works Department determined that the existing Seminole County franchise agreement with Waste Pro closely resembled the services that would benefit the City and found that the prices were more cost effective than the proposal from Republic Services. The City of Casselberry's procurement policies support cooperative purchase agreements. Mr. Tim Dolan, Regional Vice President of Waste Pro, has provided a letter that accepts the City's intention to make a cooperative purchase off their franchise agreement with Seminole County. The terms of the franchise agreement will be in accordance with Seminole County's agreement, with an option to extend the terms up to an additional five years if mutually agreed upon. The contract will become effective January I, 2008 and will end on March 31, 2010. Budget Impact: The City currently pays $13.85 per home per month to Republic Services for solid waste collection and disposal. IF the City opts to accept Republic's final negotiated terms, the rate would increase to $24.24 per home per month. Residents who receive regular and/or special solid waste collection currently pay $16.35 per month and residents who receive side door collection services currently pay $22.69 per month. These amounts include an additional $2.50 per month charge by the City for administration, billing and roadway repair costs. Should the City enter into a franchise agreement with Waste Pro based on the Seminole County agreement, the City would pay $15.54 per home per month. These rates, plus the City's additional charge of$2.50 per home, would total $18.04 per month for regular and special collection services and $28.04 per month for side door collection services. Therefore, the selection of Waste Pro will provide a net savings of approximately $9 per customer per month when compared to the rates offered by Republic Services. Additionally, pursuant to the contract, Waste Pro will be entitled to an adjustment based on the previous year's consumer price index. In lieu of adjusting the rates twice within a three month period, it is