WM 01 Initial AgtCONTRACT SUMMARY
1
NAME OF CITY OKEECHOBEE
CONTRACT WITH W/M COMPANY: W/M OF FLORIDA, INC. D /B /A L.P. SANITATION
W/M DIVISION PROVIDING SERVICE: L.P. SANITIATION
CONTRACT DATES:
COST ADJUSTMENTS
FRANCHISE FEE:
PERFORMANCE BOND:
INSURANCE COVERAGE:
LIABILITY:
PROPERTY:
UMBRELLA:
START AND STOP TIMES:
RESIDENTIAL:
COMMERCIAL:
START:
EXPIRE:
TYPE OF SERVICE:
EXCLUSIVE RESIDENTIAL YES
EXCLUSIVE COMMERCIAL YES
7/7/87
7/7/97
RENEWAL OPTIONS: AUTOMATIC 5 YR. BY WRITTEN NOTICE
RECEIVED BY 1/7/92.
ANNUAL REVIEW BETWEEN MAY 1 JUNE 30
10% OF REVENUE PAYABLE MONTHLY
$500,000
500,000
500,000
500,000
5,000,000
6:30 A.M. 7:00 P.M.
6:30 A.M. 7:00 P.M.
FREE SERVICE: TO ALL CITY FACILITIES
FRANCHISE AGREEMENT
THIS AGREEMENT entered into this 7th day of July, 1987, by and between:
CITY OF OKEECHOBEE, FLORIDA a Florida municipal corporation, hereinafter referred
to as "CITY" and, L.P. SANITATION, INC., a wholly -owned subsidiary of Waste Manage-
ment, Inc., of Florida, a division of Waste Management, Inc., of Florida, a Florida
Corporation, hereinafter referred to as "CONTRACTOR."
1. Franchise:
For a period of five (5) years City hereby grants to CONTRACTOR the ex-
clusive franchise and the concomitant obligation to provide solid waste collection
services within municipal boundaries, subject to the conditions set forth in this
Agreement.
CONTRACTORshall have vested title to all waste materials collected pur-
suant to this franchise agreement, generated within the corporate limits of the
CITY.
CONTRACTOR agrees to commence servicing newly- annexed areas within twenty
four (24) hours after official written notification by the CITY, acting through the
City Clerk's office.
CONTRACTOR shall perform the obligations of collecting all waste materials
covered by this franchise agreement through any recognized subsidiary or division
of the CONTRACTOR. All such subsidiaries or divisions shall be registered with the
office of the City Clerk.
2. Term of Franchise:
Subject to the termination rights of the CITY, this franchise shall remain
in full force and effect for a period of five (5) years, commencing on the 7th day of
July, 1987; provided furthermore, this franchise may thereafter be renewed for a con
secutive five (5) year period upon the same terms, conditions, and limitations imposed
hereby. CONTRACTOR shall give notice to the CITY of an intent to extend this fran-
chise agreement at the end of its original term, which notice shall be delivered to
the CITY by Certified Mail, Return Receipt Requested, not later than one hundred and
7 eighty (180) days prior to termination. For purposes of such notification, the
CITY's address shall be: City Clerk, City of Okeechobee, 55 Southeast Third Avenue,
Okeechobee, Florida 33474.
3. Service Garbage and Trash:
a) Residential:
Garbage accumulated by single family residences shall be
collected one (1) time each week as scheduled by the CON-
TRACTOR. Trash and other debris accumulated by single
family residences shall be collected one (1) time each week
as scheduled by the CONTRACTOR. The CONTRACTOR shall col-
lect the garbage, debris, yard and other trash at the street
line between the confines of the side lot lines of each single
family residence.
b) Commercial:
CONTRACTOR shall pick up garbage and trash on a schedule to
be agreed upon between CONTRACTOR and individual commercial
customers; however, in no event less frequently than once
per calendar week for trash and once per calendar week for
garbage. Failure of CONTRACTOR and customer to agree upon
a pickup schedule shall result in the matter being referred
to the CITY for resolution, which resolution shall be final.
c) City:
Municipal garbage and /or trash shall be collected by CONTRAC-
TOR at no expense to the CITY.
4. Hours of Collection:
a) Residential:
Collections shall normally be made in residential areas no
earlier than 6:30 A.M. and no later than 7:00 P.M., with
no service on Sunday, except in time of emergency or to main-
tain schedules due to holidays; provided, however, that if
the CONTRACTOR has an equipment breakdown, it shall be re-
lieved from commencing collection at 6:30 A.M. for the route
being served by such equipment experiencing operating diffi-
culties; provided further that such route shall be fully col-
lected by the CONTRACTOR with substitute equipment that day.
b) Commercial:
Collections shall be made between the hours of 6:30 A.M. and
7:00 P.M.
5. Spillage and Litter:
CONTRACTOR shall not litter the premises and shall make every effort to
completely empty all receptacles in the process of making collections or in haul-
ing the solid waste materials once collected. In the event of spillage by the
CONTRACTOR, or in the event of accidental spillage or animal spillage prior to
collection by the CONTRACTOR, the CONTRACTOR shall promptly clean up all such
litter from such spillage. CONTRACTOR shall maintain equipment in such a manner
as to prevent the spilling of leachate. Should accidental spillage occur, CON
TRACTOR shall clean up same.
6. Collection Equipment:
The CONTRACTOR shall have on hand at all times, in good working order,
such equipment as shall permit the CONTRACTOR, adequately and efficiently, to
perform all of the duties required to be performed under this contract. Equip-
ment shall be purchased from nationally known and recognized manufacturers of
garbage collection and disposal equipment. Garbage collection equipment shall
be of the enclosed loadpacker type, and all equipment shall be kept in good re-
pair, appearance and in a sanitary clean condition at all times. The CONTRAC-
TOR shall have available to it, at all times, reserve equipment which can be put
into service and operation within two (2) hours of any breakdown. Such reserve
equipment shall substantially correspond, in size and capability, to the equip-
ment used by the CONTRACTOR to perform its duties hereunder.
7. Contractor Office Hours:
The CONTRACTOR's office shall remain open Monday through Friday from
8:00 A.M. to 4:30 P.M. for the purpose of handling complaints; and for that
purpose there shall be maintained adequate telephones and a responsible person
in charge during such normal business hours. Said office shall not be so
staffed during legal holidays. For valid complaints not corrected within
twenty -four (24) hours after notification to CONTRACTOR by CITY, CONTRACTOR
shall be assessed a five dollar ($5.00) per twenty -four (24) hour period pen-
alty until said complaint is corrected.
8. Billing and Collection:
CONTRACTOR shall assume responsibility for billing and collection of
charges directly from each commercial customer. CITY shall assume responsibility
for billing and collection of charges directly from each residential customer.
9. Franchise Fee:
The CONTRACTOR shall pay to the City of Okeechobee a franchise fee of
10% for all revenues collected before sales tax from commercial customers. Pay
nent of franchise fee is to be paid in full and monthly. The CITY shall pay to
the CONTRACTOR 90% of all revenues collected from residential customers in full
and monthly.
served
exempt
10. Payment Required Whether or Not Service is Used:
Only accounts that give written notice to the city that their premises
will be vacated for a period of
from fees for the billing cycle
Provided, however, such written notice
complaint was received, and the
When a complaint is received on
a weekend, it shall be serviced
more than one full billing cycle will be
during which the
must be received
premises are vacant.
in the office of the City
Clerk on or before ten days prior to the billing cycle, during which the premises
will be vacant. Premises occupied during any portion of a billing cycle
shall be responsible for fees for the entire billing cycle.
11. Complaints:
All complaints shall be resolved within twenty -four (24) hours. The
CONTRACTOR shall prepare a form or maintain a register, approved by the CITY,
in his Okeechobee County office, of all complaints and the disposition of each.
Such records shall be available for CITY inspection at all times during regu-
lar business hours. The form shall indicate the day and the hour on which the
day and the hour on which it was resolved.
the day preceding a holiday or the beginning of
on the next working day.
12. Notification of Customers:
The CONTRACTOR shall notify all customers concerning complaint procedures,
rates, regulations, and day(s) of collection, all consistent with this agreement
and upon prior approval of the CITY as to form.
13. Routes and Schedules:
The CONTRACTOR shall periodically provide the office of the Public Works
Director with schedules of residential collection routes and keep such information
current at all times. In the event of change in routes or schedules that will
alter the day of pick up, the CONTRACTOR shall notify each customer affected by
either (a) direct mail, (b) door hangers, which the city expressly approves for
such purpose, or (c) an advertisement prominently displayed in a newspaper of
city -wide distribution at least once, not less than one week prior to the
change. All such changes in routes or schedules will also be immediately com-
municated to the office of the Director of Public Works when determined by
the CONTRACTOR.
14. Contractor's Personnel:
a) The CONTRACTOR shall assign a qualified person or persons
to be in charge of his operations in the CITY and shall
give the name or names to the CITY; information regarding
experience shall also be furnished.
b) The CITY has the right to require that the CONTRACTOR's
collection employees wear a clean uniform or shirt bearing
the company's name.
c) Each employee shall, at all times, carry a valid Florida
driver's license for the type of vehicle he is driving.
d) No person shall be denied employment, by the CONTRACTOR,
for reasons of race, creed, sex or religion.
15. Termination:
This franchise may be cancelled or renegotiated by either party
for just cause, by sixty (60) days written notice of intent to cancel being given
by either party by certified mail and either party shall have sixty (60) days,
after receipt of said notice, to correct any complaint.
16. Right to Require Performance:
The failure of the CITY, at any time, to require performance by the
CONTRACTOR of any provision hereof shall in no way affect the right of the CITY
thereafter to enforce same; or shall waiver by the CITY of any breach of any
provision hereof be taken or held to be a waiver of any succeeding breach of
such provision or as a waiver of any provision itself.
17. Severability:
If any provision of the contract shall be declared illegal, void or
unenforceable, the other provisions shall not be affected but shall remain in
full force and effect.
18. Permits and Licenses:
The CONTRACTOR shall obtain, at his own expense, all permits and licenses
required by law or ordinance and maintain same in full force and effect.
19. Performance Bond:
The CONTRACTOR shall furnish to the CITY a performance bond, in form
approved by the City Attorney, for the faithful performance of this contract and
all of its obligations arising hereunder in the amount of Five Hundred Thousand
($500,000.00) Dollars. Said bond shall be executed by a surety company approved
by the City Council and licensed to do business in the State of Florida.
20. Workmen's Compensation Insurance:
The CONTRACTOR shall provide and maintain during the life of the
contract, Workmen's Compensation Insurance, in accordance with the laws of
the State of Florida, for all employees. A certificate shall be filed with the
CITY by the insurance carrier showing such insurance to be in force at all times.
21. Insurance:
The CONTRACTOR shall provide and maintain in force the following insur-
ance coverages with an insurance carrier licensed to do business in the State of
Florida and rated in Best Guide A, Class XV. All policies shall name the CITY as
additional insured and shall contain a clause that the insurer will not cancel or
decrease the insurance coverage without first giving the CITY thirty (30) days
notice, in writing:
1) Comprehensive automobile liability insurance with:
Bodily injury liability limits of $500,000 each person.
Bodily injury liability limits of $500,000 each occurrence.
Property damage liability limits of $500,000 each occurrence.
2) Comprehensive general liability insurance including operations,
personal injury, completed operations and products liability
with:
Bodily injury liability limits of $500,000 each occurrence.
Property damage liability limits of $500,000 each occurrence.
3) Umbrella liability insurance excess to the coverages required
above with:
Combined bodily injury and property damage liability limits of
$5,000,000 per occurrence.
22. Hold Harmless Agreement:
The CONTRACTOR will defend, indemnify, save harmless and exempt the
CITY, its officers, agents, servants, and employees from and against any and all
suits, actions, legal proceedings, claims, demands, damages, costs, expenses and
attorney's fees resulting from injury to persons or damage to property arising out
of work done in the performance of this contract.
23. Assignment and Sub letting:
No assignment of the contract or any right occurring under this contract
shall be made, in whole or in part, by the CONTRACTOR without the express written
consent of the City Council. In the event of any assignment, the assignee shall
assume the liability of the CONTRACTOR.
24. Books and Records:
The CONTRACTOR shall keep records of wastes collected and charges there-
fore, and the CITY shall have the right to review those records which pertain to
the payments due it hereunder.
25. Point of Contact:
All dealings, contacts, notices, etc., between the CONTRACTOR and the
CITY shall be directed by the CONTRACTOR to the Director of Public Works, City
of Okeechobee, Florida, and by the CITY to the Manager of L.P. Sanitation, Inc.,
a wholly -owned subsidiary of Waste Management, Inc., of Florida.
26. Notice:
A letter addressed and sent by Certified Mail, Return Receipt Requested,
to either party at its business address shall be sufficient notice whenever required
for any purpose in the contract.
27. Resource Energy and Conversion:
In the event that Waste Management, Inc., of Florida or any subsidiary
corporation or enterprise thereof located in Okeechobee County, Florida, shall
establish and operate an Energy Resource and Development Administration facility
or such other facility established for the purpose of reclamation of saleable
products or conversion of garbage and trash into energy sources, and should Waste
Management, Inc., of Florida, because of such operations, experience a savings
relative to the cost of the disposal of trash, garbage, and other refuse authorized
to be collected and disposed of by Waste Management, Inc., of Florida, in accordance
with the terms hereof, Waste Management, Inc., of Florida shall be obligated to
reduce the rates being charged pursuant to this franchise agreement.
28. Disposal Fees:
Fees charged for use of the legally empowered facilities to accept solid
wastes are subject to change, and any increase thereof shall increase all rates
proportionately; provided that the least disposal fee charged in an approved
Okeechobee County facility shall be used. Provided further that, if the CONTRACTOR
elects to utilize a disposal facility outside of the county charging a fee less
than that charged by legally empowered facilities within Okeechobee County, then
such smaller disposal fee for such outside -of- county facility which CONTRACTOR
elects to use shall be the disposal fee to be charged the CITY in any increase in
costs attributable to increased disposal fees during the term of this franchise
agreement or any renewal or extention thereof.
29. Annual Review:
It is also agreed between the parties that the cost of garbage and trash
removal charged pursuant to this agreement shall be reviewed annually between May 1
and June 30 of each year. CONTRACTOR may request, pursuant to said review, for an
increase of fee charged due to an increase in the cost of service, and, if the CITY
and the CONTRACTOR cannot agree upon such an increase, then this franchise agreement
will terminate on the 31st day of July following.
30. Modification:
This contract constitutes the entire contract and understanding between
the parties hereto, and it shall not be considered modified, altered, changed, or
amended in any respect unless in writing and signed by the parties thereto.
ATTEST:
THIS FRANCHISE AGREEMENT executed this day of V L y 1987.
ATTES
e 5,O
At
Bonnie S. Thomas, City Clerk
WASTE MANAGEMENT, INC., OF FLORIDA
d /b /a L.P. Sanitation, -c.
4,
BY:
CITY OF OKEECHOBEE, FLORIDA
Oakland R. Chapman, 'ayor
POWER OF ATTORNEY
Know all Men by these Presents. That the FEDERAL INSURANCE COMPANY, 15 Mountain View Road, Warren, New Jersey, a New Jersey Co.
Lion, has constituted arid appointed, and does hereby constitute and appoint Robert E. Duncan, Margaret Magee, Stephen G.
Stonehouse, Patricia Thurmond and Christopher E. Painter of Chicago, Illinois
each its true and lawful Attorney -in -Fact to execute under such designation in its name and to affix its corporate seal to and deliver for and on Its beha
surety thereon or otherwise, bonds or obligations given or executed in the course Of its business, and any instruments amending or altering the same. and
sents to the modification or alteration of any instruments referred to in said bonds or obligations.
In Witness Whereof, the said FEDERAL INSURANCE COMPANY has. pursuant to its By -Laws, caused these presents to be signed by its Assistant Vice- President and Assistant Secretary anc
corporate seal to be hereto affixed this 2nd day of June 19 87
Corporate Seal
STATE OF NEW JERSEY
County of Somerset
STATE OF NEW JERSEY
County of Somerset
Fnrm 1 rrun WFA 7 -N71 (:C1NSP NT
SS,
SS.
ARTICLE XVIII.
Militant 1Roe- PresldeM
On this 2nd day of June 19 87 before me personalty came Richard D. O'Connor to me known and by me known to be Assistant Secretary of the FEDER/
SURANCE COMPANY, the corporation described in and which executed the foregoing Power of Attorney, and the said Richard D. O'Connor being by me duly sworn. did depose and say that he is Assistant Sec' 1
of the FEDERAL INSURANCE COMPANY and knows the corporate seal thereof; that the seal affixed to the foregoing Power of Attorney is such corporate seal and was thereto affixed by authority of the e.
of said Company, and that he signed said Power of Attorney rs Assistant Secretary of said Company by lice authority; and that he is acquainted with George McClellan and knows him to be the Assistant Vice-Prot
of said Company, and that the signature of said George n lellan subscribed to said Power of Attorney is in the genuine hand.wiling of said George McClellan and was thereto subscribed by aut orn, n
By-Laws and in deponent's presence
Acknowledged and Sworn to before me
on the date above written
ALICE LEONARD
CERTIFICATION NOTARY PUBUC OF NEW JERSEY
My Commission Expires Juna 28. 1988
1. the undersigned, Assistant Secretary of the FEDERAL INSURANCE COMPANY. do hereby certify that the following is a true excerpt from the By-laws of the said Company as adopted by its Board of Dire
on March 11, 1953 and most recently amended March 11. 1983 and that this By -Law is in full force and effect.
Section 2 AS bonds, undertakings, contracts and other instruments other than as above for and on behalf of the Company which it is authorized by law or its charter to execute, may
and shall be e xecuted in the name and on behalf of the Company either by the Chairman or the Vice Chairman or the President or a Vice President, jointly with the Secretary or an Assistant
Secretary. under their 't.spective designations, except that any one or more officers or attorneys -in -fact designated in any resolution of the Board of Directors or the Executive Committee
or in any power of attorney executed as p rovided for in Section 3 below, may execute any such bond, undertaking or other obligation as provided in such resolution or power of attorne.
Section 3 All powers of attorney for and on behalf of the Company may and shall be executed in the rune and on behalf of the Company. either by the Chairman or the Vice Chairman or the President
or a Vice- President or an f 3s1stant Vice President, jointly with the Secretary or an Assistant Secretary. under their reapectivedesignations. The signature of such officers may be engraved. punted
or lithographed."
I further certify that said FEDERAL INSURANCE COMPANY is duly licensed to transact fidelity and surety business in each of the States of the United States of America, District of Columbia. Puerto Rico. and saes
Provinces of Canada with the exception of Prince Edward Island; and is also duly licensed to become sole surety on bonds, undertakings, etc., permitted or required by law.
I. the undersigned Assistant Secretary of FEDERAL INSURANCE COMPANY. do hereby certify that the foregoing Power of Attorney is in full force and effect.
Given under my hand and the seal of said Company at Warren. N.J. this
10th day of July
Notary Public
19
U
CHUBS
ACCEPTED
CHUBB GROUP of Insurance Companies
15 Mountain View Road, Warren, NJ 07060
RIDER to be attached to and form a part of
Bond No. 8112 -90 -04 wherein
FEDERAL INSURANCE COMPANY
is named as Surety, on behalf of
Lake Placid Sanitation, Inc.
as Principal, in favor of
City of Okeechobee
in the sum of 75,000.00
dated 1/2/87 effective 2/1/87
Signed, sealed and dated this 10th day of
By
(Obligee)
Form 15 -02 -72 (Ed. 8 -75) (Formerly 12451)
By:
By:
1st
FEDERAL INSURANCE COMPANY
day of
IT IS HEREBY UNDERSTOOD AND AGREED that effective the
the penalty of this bond is in creased
from Seventy five thousand and no /100
to Five hundred thousand and no /100
as to losses occurring after the 1st day of July 1987.
July 1987
Provided, however, that the liability of the Principal and Surety hereon shall not be cumulative or in any event
exceed the larger amount referred to herein.
The attached bond shall be subject to all its agreements, limitations and conditions except as herein express-
ly modified.
July
LAKE PLACID SANITATION, IQC.
Federa]. Insurance
$75,000.00
($500,000.00
Herbert A. Getz, Assistant Secretary
19 87
Company:
Patricia Thurmond, Attorney —in —Fact
PRODUCER
COP lin'
Pam Heintz 312) 621-4718
INSURED
Lake Placid Sanitation, Inc. LETTEF
P.O. Box 1205
719 Hwy 98 North
Okeechobee, FL 33472 TWv
g.COVERAGES 4,t6
THIS IS TO CERTIFY THAT POLICIES OF INSLFRAN.I.E LISTED BELOW HAVE BEEN iDS0E0 TO THE ME-LIRE:0 NAMED ABOVE FOR THE POLICY PERIOD INDICATED.
4,4
NOTWITHSTANDING ANY REQUIREMENT. EM OR CONDITION OF ANY CONTRACT OR OThER DOCENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY
BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED SY THE POLICIES DESCRIBED HEREIN IS ELIBJECT TO ALL THE TERMS, EXCLUSIONS, AND CONDI-
TIONS OF SUCH POLICIES.
CO
LTR
X
TYPE OF INSURANCE
GENERAL LIABILITY
A X COMPREHENSIVE FORM
X PREMISESIOPERATIONS
--UNDERGROUND
EXPLOSION CULI APSE HAZAR',
X PRODUCTSICOME'L ET ED OPERATi0!:
CONTRACTLIA
INDEPENDENT, TTRACTORS
BROAD FORM PROPERTY DAMS
PERSUNAL INJURY
AUTOMOBILE LIABILITY
A X 1 ANY AUTO 3ZM 445335-04
I- T I C ALL OWNED IJ PRIV PAS:3
x ALL ONNE5 ALITC‘j. (rp
X HAW AUTOS
X NON-OWNED AUTOS
GARAGE LIABILITY
CERTIFICATE OF INSURANCE
THIS CERTIFICATE IS ISSUE LT AS A MATTER OF INFORMATION ONLY AND CONFERS
NO RlGPT5 UPON'IMT C 4tE MOLDER THIS CERTIFICATE DOES NOT AMEND,
EXTEND OR ALTER 1' FIBTATIT AFFORDED BY THE POLICIES BELOW.
EXCESS LIABILITY
UMBRELLA FORM
WORKERS COMPENSATION
4ND
A
EmPLOYEA: L.14. JL
r
OTHER
ALL OPERATIONS AND THE EQUIPMENT OF THE INSURED
CITY OF OKEECHOBEE
55 SE 3rd Ave.
Okeechobee, FL 33474
Attn: John Drago
taitY.
POLIC%. EXPi RAT ION
POUi:v DATE (mm.onNY)
3YM 445335-04 1/1/87
ThDG COVERAGE
American Motorists Insurance Co.
LIABILITY LIMITS IN T
EACH
OCCURRENCE
DATE (mmleorrin
1/1/88
BODILY
INJURY
&Jai
INJURY
1/1/87 1/1/88
ACC,LTAT
61& PD
COMBINED
ISSUE DATE (MM/DD/YY
07/15/87
PROPERTY
DAMAGE
k3 h PD
OOMBINED
5,000, 5,000,
PERSONAL INJURY
PROPERI
DAMAGE
BI PD
COMBINED $5,000,
HOUSANDS
AGGREGA1
5,000,
OTHER THAN UMBRELLA FORM
SYATUTORY 1
n j$ 1 ,000E,c,
3CM 445335-04 1/1/87 1/1/88 1$ 5,00051AsE K:
_LS 1,000: ;6E
c otta 416AI*,
or lT PC BE CANCL:', LED BEC 1
COMPANs W I L L END!'
0 t•t0 iCE TO THE CERTIFICATE HOLDER NAMI..0 TO Tr
LILEIT 'Au NO :CE f•.:i•IALL IMPOSE NO OBLIGATION OP Li!,e,L..1
go:V,'N OP REPRIESENTATIVES