Agenda 09/23/2008 Item #10JItem # 10J
September 23, 2008
Page 1 of 4
EXECUTIVE SUMMARY
Recommendation to: (a) allow Immokalee Disposal to present information to the Board of
County Commissioners (Board) on September 23, 2008, at the Board's regular meeting,
concerning Immokalee Disposal's petition for an extraordinary increase in the rates
charged by Immokalee Disposal for the collection of solid waste due to the increase in fuel
cost; (b) authorize staff to determine whether Immokalee Disposal's petition has any merit;
(c) instruct staff to prepare written recommendations concerning Immokalee Disposal's
petition; and, (d) instruct staff to present its recommendations to the Board for review and
approval at a future public meeting.
OBJECTIVE: (a) To provide an opportunity for Immokalee Disposal to explain why it believes
the County should increase the rates paid to Immokalee Disposal for solid waste collection
services; (b) to authorize staff to request additional information from Immokalee Disposal and
take all necessary steps to determine whether Immokalee Disposal's petition should be granted
(in whole or in part) or denied; and, (c) ensure that any potential rate increase will be reviewed
and approved by the Board before the rate increase takes effect.
CONSIDERATIONS: Immokalee Disposal collects solid waste from residential and
commercial customers in the northeastern portion of unincorporated Collier County, pursuant to
a Franchise Agreement (dated February 8, 2005) between Immokalee Disposal Company, Inc.
and Collier County. Immokalee Disposal is paid for its collection services in accordance with
the rates approved in the Franchise Agreement. These rates are increased each year, based on
increases in the Consumer Price Index (CPI).
On July 10, 2008, Immokalee Disposal asked the County to approve an extraordinary increase in
Immokalee Disposal's rates (i.e., a rate increase that is in addition to the increase based on the
CPI) because there has been a significant increase in Immokalee Disposal's fuel prices.
Immokalee Disposal claims that it paid $2.21 per gallon for fuel when Immokalee Disposal
commenced work under the Franchise Agreement in 2005, but the cost of fuel increased to $4.00
per gallon by August 2008. Immokalee Disposal now wishes to petition the Board for an
extraordinary adjustment to the rates authorized under the Franchise Agreement.
Section 27.4 of the Franchise Agreement allows the Contractor to petition the Board for a rate
adjustment on the basis of "extraordinary or unusual changes in the cost of operations that could
not reasonably be foreseen by a prudent operator ... the Contractor's petition shall include an
audited statement of Contractor's historical and current expenses, confirming an extraordinary
increase in Contractor's costs due to factors beyond Contractor's control, which have occurred
through no fault or negligence of the Contractor." The Franchise Agreement also provides that,
"in its sole discretion, the Board shall approve or deny the request within sixty (60) days after the
[County] receives all of the information needed to evaluate the Contractor's proposal."
Immokalee Disposal has asked for an opportunity to advise the Board about the reasons why it
believes it is entitled to an extraordinary rate increase.
Item # 10J
September 23, 2008
Page 2 of 4
Staff believes the Board should not approve any rate increase until the staff has been given a
reasonable opportunity to evaluate Immokalee Disposal's petition. Staff requests the Board's
authorization to work with Immokalee Disposal and take whatever other steps are necessary to
determine whether Immokalee Disposal should receive any additional compensation under the
Franchise Agreement. After staff has completed its analysis of Immokalee Disposal's petition,
staff will submit its recommendations to the Board for its consideration at a future public
meeting. The Board will determine whether, and the extent to which, Immokalee Disposal's
petition should be granted.
FISCAL IMPACT: There is no fiscal impact at this time because staff is not recommending
any additional payments to Immokalee Disposal at this time.
LEGAL CONSIDERATIONS: This item is legally sufficient for Board action. - JAB
GROWTH MANAGEMENT IMMPACT: There is no impact on the County's Growth
Management Plan.
RECOMMENDATION: (a) Allow Immokalee Disposal to present information to the Board of
County Commissioners (Board) on September 23, 2008, concerning Immokalee Disposal's
petition for an extraordinary increase in the rates charged by Immokalee Disposal for the
collection of solid waste; (b) authorize staff to determine whether Immokalee Disposal's petition
has any merit; (c) instruct staff to prepare written recommendations concerning Immokalee
Disposal's petition; and, (d) instruct staff to present its recommendations to the Board for review
and approval at a future public meeting.
Prepared By: Daniel R. Rodriguez, M.B.A., CFM, Director of Solid Waste Management
Department
Item # 10J
September 23, 2008
Page 3 of 4
To provide an opportunity for Immokalee Disposal to explain why it believes the County should
increase the rates paid to Immokalee Disposal for solid waste collection services; (b) to authorize
staff to request additional information from Immokalee Disposal and take all necessary steps to
determine whether Immokalee Disposal & #8217;s petition should be granted (in whole or in part) or
denied; and, (c) ensure that any potential rate increase will be reviewed and approved by the Board
before the rate increase takes effect. (Jim Delony, Public Utilities Administrator)
Prepared By:
Department
Date
Solid Waste
9/8/2008 4:11:45 PM
Approved By:
Department
Approval
Date
PU Operations
Approved
9/9/2008 3:43 PM
Approved By:
-- Department
Approval
Date
County Attorney
Approved
9/9/2008 4:54 PM
Approved By:
Department
Approval
Date
Purchasing
Approved
9/10/2008 12:39 PM
Approved By:
Department
Approval
Date
Public Utilities
Approved
9/10/2008 1:05 PM
Approved By:
Department
Approval
Date
Office of
Management
Approved
9/11/20085:21 PM
and Budget
Approved By:
Department Approval Date
County Approved
Manager's Office
9/11/2008 5:37 PM
Item # 10J
September 23, 2008
Page 4 of 4
ATTACHMENTS:
Name: Description: Type:
❑ Immokalee Disposal Extraordinary Rate Increase Immokalee Disposal's Petition for Extraordinary Rate
0 09 9 08 -doc Increase Executive Summary