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Item 6AAGENDA ITEM # 6A MARCH I0, 2008 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Transfer of Solid Waste Contract due to Acquisition of Waste Services of Florida, Inc. Operations by Advanced Disposal Services SUBMITTED BY: Rick Carper, Public Works Director DATE: March 3, 2008 BACKGROUND: The City was advised in February that Advanced Disposal Services Jacksonville, LLC. (ADS} would be acquiring the Jacksonville assets of Waste Services of Florida, Inc., (VNSI). This acquisition must be approved by the City of Atlantic Beach in order that the current contract for solid waste services with WSI is properly transferred to ADS. ADS operates in the Jacksonville market as Advanced Disposal. The City Attorney recommends that the City's approval of the transfer of contract responsibility be done by Resolution. We have received a letter dated March 3, 2008, from Mary Middleton O'Brien, the Chief Marketing Officer of Advanced Disposal that provides assurance that the same level of service we have come to expect from WSI will be maintained by Advanced. BUDGET: No effect. There is a requirement in our contract with WSI fora $25,000 payment to the City in the event of a transfer of ownership. This payment has been received. RECOMMENDATION: Adopt Resolution 08-04 to approve the assignment of the solid waste contract to Advanced Disposal. ATTACHMENTS: 1. Letter dated March 3, 200$ from Mary Middleton O'Brien to Jim Hanson 2. Solid Waste Contract Excerpt Covering Transfer of Ownership 3. Company Profile Literature from Advanced Disposal. REVIEWED BY CITY AGENDA ITEM # 6A MARCH 10, 2008 RESOLUTION N0.08-04 A RESOLUTION OF THE CITY OF ATLANTIC BEACH, FLORIDA, APPROVING THE ASSIGNMENT OF THE CURRENT CONTRACT WITH WASTE SERVICES OF FLORIDA, INC. TO ADVANCED DISPOSAL WHEREAS, the City of Atlantic Beach and Waste Services Of Florida, Inc. (WSI) are parties to an agreement dated June 1,2007, for residential and commercial collection and disposal of solid waste, recycling, and yard trash; and Vi~IIEREAS, Advanced Disposal has acquired the Northern Florida operations of WSI; and WHEREAS, Advanced Disposal has agreed to maintain or exceed the level of service provided by WSI. NOW, THEREFORE, BE IT RESOLVED, the Atlantic Beach City Commission does hereby assign the contract with WSI to Advanced Disposal who will assume responsibility for all obligations of the current contract. PASSED AND ADOPTED by the City Commission of the City of Atlantic Beach this 10th day of March, 2008. JOHN S. MESERVE Mayor ATTEST: DONNA L. BUSSEY, CMC City Clerk Approved as to form and correctness: ALAN C. JENSEN, ESQUIRE City Attorney AGENDA ITEM # 6A MARCH 10, 2008 SECTION 19 ASSIGNMENT AND CHANGE OF CONTROL A. Assignment, Changes in Ownership and Subletting of Contract (1) Neither this Contract, nor any portion thereof,. shall be assigned except with the prior written consent of the City Commission, which may be withheld for any reason. No such consent will be construed as making the City a party of or to such transfer or assignment, or subjecting the City to liability of any kind to any subcontractor. Assignment, changes of ownership or subletting of contract shall be a direct or indirect, by gift, assignment, voluntary sale, merger, consolidation or otherwise, of twenty five percent (25~) or more at one time of the ownership or controlling interest of Contractor, or fifty percent (500) cumulatively over the term of the Agreement of such interest to a corporation, partnership, trust, or association, or person or group of persons acting in concert or a change in control. Transfer shall include any transfer or assignment to a person controlling, controlled by, or under the same common control as the Contractor at the effective date of this agreement. Moreover, transfer shall not mean a public offering issuance which either changes the Contractor status from a privately held corporation to that of a publicly held corporation or which is intended to provide additional capitalization for the Contractor, provided the public offering does not result in a change in Contractor's management personnel. Within the term of this contract and any subsequent renewals if an assignment or transfer of this contract is granted by the City, the Contractor will pay the City an assignment/transfer fee for the first assignment/ transfer in the amount of twenty five thousand dollars ($25,000.00) for a second and all subsequent assignment/ transfers the Contractor will pay the City fifty thousand dollars ($50,000.00) upon such consent for said assignment or transfer. (2) The foregoing notwithstanding, in the event of any strike, lockout, labor trouble or dispute involving the Contractor under this Contract shall continue, the City agrees to fully cooperate with the Contractor in AGENDA ITEM # 6A MARCH 10, 2008 any temporary assignment necessary to continue to by this Contract. Under no transfer fee as state but in no event will the exceed ninety (90) days. or subcontract as may be provide the services required this provision there will be ~ in sub-paragraph (1) above, transfer under this provision (3) Any transfer of more than twenty-five percent 25~ of the ownership of the Contractor shall be deemed to be a transfer of this Contract. (4) No assignment or subcontract shall, under any circumstances, relieve the Contractor of the liabilities and obligations under this Contract, and despite any such assignment, the City shall deal through the Contractor. Subcontractors shall be dealt with as employees and representatives of the Contractor and, as such will be subject to the same requirements as to character and competence as are other employees of the Contractor. 03/03/2006 16:27 FAX 9046360699 ADVANCED DISPOSAL SVCS Advanced Disposal March 3, 2008 Mr. Jim Hanson City Manager City of Atlantic Beach 800 Seminole Road Atlantic Beach, FL 32233 Dear Mr. Hanson, AGENDA ITEM # 6A MARCH 10, 2008 On behalf of Advanced Disposal Services Jacksonville, >rLC (Advanced Disposal), I would like to re-introduce myself and my company. We fast met during the City's Request for Proposal process in November 2006. Waste Services of Florida, Inc. was awarded the residential snd commercial collection franchise at that time. However, Waste Services, Inc, has recently agreed to sell its Jacksonville solid waste collection assets as well as additional assets to Advanced Disposal. The purchase agre~neni includes the City of Atlantic Reach's residential and commercial solid waste and recycling collection franchise. The sale is scheduled to close the first week of March, 2008. Advanced Disposal respectfully requests that the City of Atlantic Beach's City Council vote to assign the contract from Waste Services of rlorida, lnc. to Advanced Disposal Services Jacksonville, LLC at its next regulazty scheduled Council meeting. Advanced Disposal is a full service solid waste and recycling services company with collection, transfer and disposal operations in Florida, Georgia, Mississippi and Alabama. The company is founded on the belief that easterner service is paramount and that it is every .employee's job to ensure that our customers are cared for with unfailing responsiveness and reliability. Advanced Disposal is dedicated to preserving the environment and ensuring that all our operations are conducted in a manner that follows all local, state and federal laws in regards io environmental protection. Advanced Disposal hlas the operational expertise, management strengths, financial capabilities and commitment to quality chat few publicly traded or independent companies can rival. Our management team of waste professionals and access to financial capital places us in a unique position among other independent waste companies that do not have the same level of experience and financial stability. Tomorrow, you will receive ten company profile packages that will give you a greater understanding of our company, our people, and how we can benefit the residential and commercial constituents of Atlantic Beach. The Packages will include a company overview, management resumes, a reference listing of all the cities 8c counties that we serve, a prospectus of the company and our company brochure. I firmly believe that you will be impressed by our ability to perform and the local references that we will provide. If you have any questions, please do not hesitate to contact me at (904} 6I 6-5322. Advanced Disposal looks forward to serv~ini a City of Atlantic Beach and providing you with quality solid waste collection services. ~G~ ~, O'Bri Officer CC: Dave Lavender, Area president 791513aymeadows Way • Suite 300 • lacks~nville, FL. 32256 Icl {904) 737-7~30Q fax (904) 636-U6~)q