WM 06 Ltr of Understanding/CPIBrion Whitehall
City of Okeechobee
Office of the City Administrator
July 1,2014
TO:
Waste Management
7700 SE Bridge Road
Hobe Sound, FL 33455 ph 772 - 546 -7700
FROM: Brian Whitehall, Administrator
City of Okeechobee
RE: Letter of Understanding
SOLID WASTE FRANCHISE AGREEMENT - Dated July 7, 1987
w/ Waste Management — changing the annual CPI rate calculation month from
May to March
Our records indicate that the underlying contract was amended (2nd Amendment to the
Agreement, 2/7/06) to reflect a CPI index (urban US City average as per Bureau of
Labor Statistics, US Dept of Labor) rate adjustment. The adjustment was to be applied
annually based on the May CPI. That provision apparently was deleted by the 3rd
Amendment to the Agreement (dated 3/18/09) but Waste Management and the City of
Okeechobee have continued to rely on the May CPI data in calculating the rate
adjustments.
Attached hereto, and made a part of this Letter of Understanding, is a recommendation
from Waste Management to change the annual CPI rate calculation month, including
the month at which the annual fuel rate adjustment will be considered, to March (vs. the
current calculation month of May).
This Letter of Understanding will be applicable to rate adjustments beginning in 2015.
AS TO THE CITY OF OKEECHO = " E
Signature
Brian Whitehall, Adminis ator
Date: July 1, 2014
55 S.E. Third Avenue • Okeechobee, Florida 34974 -2932 • (863) 763 -3372 • Fax: (863) 763 -1686
W
WASTE MANAGEMENT
June 26, 2014
Mr Brian Whitehall
City Of Okeechobee
55 SE 3rd Street
Okeechobee, Fl 33974
Dear Mr Whitehall:
WASTE MANAGEMENT
7700 SE Bridge Road
Hobe Sound, FL 33455
(772) 546-7700
On occasion when calculating rate adjustments for our municipalities we
discover that the index's time period chosen in the contract does not provide
adequate time to calculate the new rates based on the time it is published and
the time required by our municipality for publications or board approvals. When
this occurs, we recommend to our municipality that we mutually agree to change
the time period using the same indexes that has previously been approved in the
contract.
Due to the City's requirement, we would like to recommend that we
change the ending time period for both the CPI index and the ending fuel rates
to the month of March from May. This will provide adequate time for these
figures to be published and for us to communicate the rate changes to your
office.
If you agree, please confirm in writing by a letter of understanding or
whether you would require a contract resolution or amendment to make this
change effective with the October 2015 rate change and all future increases.
From everyday collection to environmental protection, Think Green.' Think Waste Management.
Thanking you in advance for your consideration on this change.
Sincere
Stev'n Leitman
Pricing Manager
cc: Jeff Sabin
Ron Kaplan
Geoff Golder
Robin Brock
India Riedel
Lane Gamiotia