Exh 6AAGENDA ITEM #6A
JANUARY 12, 2004
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Acquisition of BFI by CERI
SUBMITTED BY: Robert S. Kosoy, P.E., Director of Public Works
DATE: January 5, 2004
BACKGROUND: We were advised in late November, 2003, that Capital Environmental
Resources, Inc. (CERI) has acquired the assets in northern and central Florida of Allied Waste
Industries, Inc., doing business as BFI. This acquisition needs to be approved by the City of
Atlantic Beach in order that the current contract with BFI be properly transferred to CERI. CERI
will operate in the Jacksonville market as Waste Services, Inc.
The information obtained from CERI was reviewed by the City Attorney. BFI's attorney, Paul
Krulisky, of the firm Finnemore/Craig in Phoenix Arizona, will be contacting Alan Jensen to
resolve any of his concerns. Alan recommends that the City's approval be done by Resolution.
We have received a letter dated January 2, 2004, from Kirk Muter, the Regional Vice President of
Waste Services Florida, Inc. that provides assurance that the same level of service we have come
to expect from BFI will be maintained by CERI. Also, he discusses the ability of the company to
provide manpower and equipment resources should the First Coast area experience a tropical
storm, hurricane or other natural disaster. We have also received literature from CERI on their
firm.
BUDGET: No effect.
RECOMMENDATION: Adopt Resolution to approve the assignment of BFI's contract to
CERI.
ATTACHMENTS: 1. Letter dated January 2, 2004 from Kirk Muter to Bob Kosoy.
2. Memo from Alan Jensen dated December 28, 2003 on file with City
Clerk.
3. Literature from CERI on file with City Clerk.
REVIEWED BY CITY MANAGER:
AGENDA ITEM #6A
JANUARY 12, 2004
RESOLUTION NO. 04-O1
A RESOLUTION OF THE CITY OF ATLANTIC BEACH,
FLORIDA, APPROVING THE ASSIGNMENT OF THE
CURRENT CONTRACT WITH BFI TO CAPITAL
ENVIRONMENTAL RESOURCES, INC. (CERI)
WHEREAS, the City of Atlantic Beach and Browning-Ferris Industries of Florida, Inc.,
(BFI) are parties to an agreement dated February 1, 2001, for residential and commercial
collection and disposal of solid waste, recycling, and yard trash; and
WHEREAS, Capital Environmental Resources, Inc. (CERI) has acquired the Northern
and Central Florida operations of BFI and will operate in the Jacksonville area as Waste
Services, Inc..; and
WHEREAS, CERI has agreed. to maintain or exceed the level of service provided by BFI.
NOW, THEREFORE, BE IT RESOLVED, the Atlantic Beach City Commission does
hereby assign the contract with BFI to CERI 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
day of , 2004.
JOHN S. MESERVE
Mayor
Approved as to form and correctness:
ALAN C. JENSEN, ESQUIRE
City Attorney
ATTEST:
MAUREEN KING, CMC
City Clerk
AGENDA ITEM #6A
JANUARY 12, 2004
0,~
14:i 1 West Cypress Creek Road
Suite 300
1?ort Lauderdale, FL 33309
Phone: 954-489-2781
Fax: 954-489-2782
January 2, 2004
City of Atlantic Beach
Robert Kosoy, P.E.
1200 Sandpiper Lane
Atlantic Beach, Florida 32233-4318
f `;
~~
~-
`~ r
\\ '
~\ ff.
'`.i`
In November of 2003, Capital Environmental Resources, Inc. entered into an
agreement with Allied Waste Industries, Inc. to acquire the assets of Allied's
Northern and Central Florida operations. As part of the transition of assets, the
companies need to attain consent for assignment of certain municipal contracts,
including the City of Atlantic Beach Waste Services Contract. CERI will operate in
the Jacksonville market as Waste Services of Florida, Inc.
As we know, BFI Waste Systems has provided a high level of service for your
community for a number of years. We recognize the need for Waste Services of
Florida, Inc. to provide the same level of service you have come to expect. We are
fully prepared to commit every resource available to maintain or exceed the level of
service you have experienced in the past.
In particular, we have gone to great lengths to retain the employees that have been
providing your services, including a commitment to maintain their current positions,
benefits, and compensation plans. Our company has plans to commit capital resources
to maintain or improve the physical facilities and equipment utilized to service the
Jacksonville Market customers.
Most importantly, Waste Services of Florida, Inc. will have the ability to provide
additional resources in the event of a natural disaster, such as a hurricane or other
storm event. We can accomplish this goal through the network of resources that will
be at our disposal throughout the state. In particular, we will have over 1,300
employees and 700 vehicles available for deployment in very short order, should the
First Coast area experience such natural disasters.
You can feel confident Waste Services of Florida, Inc. will commit every effort and
resource to continue the services you have come to expect in the past. We look
forward to the future! A future of community partnership with the City of Atlantic
Beach in the New Year, as wel'_ as many years to come. We appreciate the
opportunity to request the assignment of the waste services contract to Waste Services
of Florida, Inc. and will make our staff available to answer questions or provide
information the city may need to feel confident in our abilities.
Sincerely,
Kirk Muter
Regional Vice President