OFFICE OF THE CITY COUNCIL

CHERYL L. BROWN 117 WEST DUVAL STREET, SUITE 425

DIRECTOR 4^TH FLOOR, CITY HALL

OFFICE (904) 630-1452 JACKSONVILLE, FLORIDA 32202

FAX (904) 630-2906

E-MAIL: CLBROWN@coj.net

JOINT RULES/TEU/FINANCE COMMITTEE MEETING

ON ORDINANCES 2013-39, 2013-41 and 2013-14

MEETING MINUTES

February 25, 2013

3:00 p.m.

Location: City Council Chamber, 1^st floor, City Hall – St. James Building; 117 West Duval Street

In attendance:

Rules Committee: Council Members Clay Yarborough (Chair), Ray Holt (arr. 3:07), Lori Boyer, John Crescimbeni, Jim Love and Robin Lumb

TEU Committee: Council Members Greg Anderson (Chair), Jim Love, Reggie Brown, Ray Holt (arr. 3:07), Robin Lumb and Matt Schellenberg

Finance Committee: Council Members John Crescimbeni (Chair), Greg Anderson, Lori Boyer, Bill Gulliford (arr. 3:05), Johnny Gaffney (arr. 3:05), Stephen Joost (arr. 3:13) and Clay Yarborough

Also: Council Member Richard Clark; Peggy Sidman and Gayle Petrie – General Counsel’s office; Jeff Clements – City Council Research Division, Carol Owens – Legislative Services Division; Kirk Sherman, Janice Billy, Kyle Billy and Robert Campbell – Council Auditor’s Office; Jim Robinson and Jeff Foster – Public Works Department; Steve Patterson – Florida Times-Union

Meeting Convened: 3:00 p.m.

Chairman Crescimbeni convened the meeting and gave an overview of the history of recent waste hauler contract extensions to Republic Services and Advanced Disposal, and of his proposed substitute to Ordinance 2013-39. The substitute approves a 10-year contract extension with Waste Pro of Florida, Inc. to continue providing waste hauling service to its service area with a variety of changes to the terms of service. The changes largely mirror the recently-approved contract with Republic Services, including requirements that the company provide standard collection carts to every household (one for garbage, one for recyclables) and that the carts be emptied by automated pickup equipment. Unlike the Republic contract, the proposed new Waste Pro agreement requires the company to transition its vehicle fleet to compressed natural gas (CNG) and to construct a CNG fueling facility. The contract provides that the cost of CNG fuel shall never exceed the cost of City-provided diesel fuel. Mr. Crescimbeni stated that the new contract would provide a considerable cost savings to the City with the combination of less expensive CNG fuel and a much greater recycling rate, which is generates revenue for the City and reduces landfill costs.

The committee discussed the economics of recycling which, due to its separate collection and processing requirements, is still more expensive than landfilling, but which is mandated by the state. Single stream recycling through the new Materials Recycling Facility (MRF) is more efficient and cost-effective than the current curbside blue bin recycling system. The City is paid $41.06 for each ton of recyclables delivered to the MRF, and avoids the $12.46/ton tipping fee at the landfill.

In response to question from Council Member Boyer, Mr. Crescimbeni indicated that Waste Pro would continue to participate in the ongoing rate review process. Council Members Joost and Clark expressed a preference for competitive bidding for the service area rather than a Council-mandated 10 year renewal with a rate review process. In response to a question about what would happen if Waste Pro defaulted on the new contract by failing to procure new trucks or household carts or to start automated service within the 7 month window provided, Gayle Petrie of the General Counsel’s Office said that the City Council would be the entity to decide how the default was remedied. He stated that Waste Pro was amenable to a suggestion made earlier to refine the definition of “recycling” in the contract to specify that it means single stream recycling.

Motion (Gulliford): amend the agreement attached to the proposed Crescimbeni substitute on page 2 to require the collection trucks to have compactor capability, on page 24 to change a reference from “cost saving of fuel increase” to “decrease”, and to make a correction throughout the document to change the term “recycling” to “single stream recycling” wherever appropriate – approved by all committees.

Motion (Gulliford): amend the bill to reference a new attachment consisting of a written agreement by Waste Pro that if, at some future date, the City of Jacksonville and the City of Neptune Beach agree that the City of Jacksonville shall take over responsibility for solid waste collection within Neptune Beach, Waste Pro will allow Neptune Beach to terminate its current collection contract with the company without penalty.

The committees engaged in considerable discussion with the General Counsel’s office about the ability of the City of Jacksonville to impose conditions on a contract to which it is not a party. General Counsel Cindy Laquidara stated that as consideration for agreeing to extend Waste Pro’s contract for an addition 10 years, the City can request Waste Pro to voluntarily take a particular action with regard to its Neptune Beach contract. Council Member Gulliford withdrew his motion and announced that he would meet with representatives of the General Counsel’s Office and Council Auditor’s Office before the City Council meeting to craft a floor amendment to accomplish his intent.

The Crescimbeni substitute as amended was approved unanimously by all committees (Finance: 7-0, Rules: 5-0; TEU: 5-0).

Meeting adjourned: 4:17 p.m.

Minutes: Jeff Clements, Council Research Division

2.27.13 Posted: 10:30 p.m.

Tape: Rules/TEU/Finance Joint Committee on 2013-39, -41 and -14 2.2513

Legislative Services Division