HomeMy WebLinkAboutItem #25 - Discussion Item• •
GAY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO , The Honorable Mayor &
DATE :
Members of the City Commission
SUBJECT:
FROM: nez
City Mana
REFERENCES:
ENCLOSURES:
24
SEF'FILE:
Presentation
I have included for discussion a presentation of the Bedminster proposed
project
l will make a recommendation upon receiving your feedback.
GAG/JC/gds
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9/25/2001 t :12 13M
Bedminster Project
Preliminary )Elements to Amended Agreement
• Waste -to -energy facility financed and owned by the City and operated by
Bedminster.
o 200,000 tons MSW, producing 12-15 megawatts annually
• Facility to be sited either (i) on Virginia Key or (ii) on another City -owned
property to be selected by the City
• Bedminster to act as project manager and constniction manager.
• Bedminster to act as facility manager — 20 year terns, with option to renew.
• Time line
o Amended Agreement to be signed by 1/1/2002
o Permitting by 9/1/2002
o Constriction commencing by 10/1/2002
o Facility startup on 10/1/2004
• Waste stream guarantee - City to provide all MSW picked tip by city -owned
trucks; no put or pay; Bedminster to make up for shortfall below 200,000
tons/year.
• City not required to sort MSW; Facility responsible for MSW after delivered by
City. No separate recycling program required.
• 'ripping fee to be guaranteed 5% less than the blended county rate
• Construction management fee —
• Facility management fee •-- equal to 5% tipping fee reduction, to be paid out of
operating profits. In the event that there are no profits in a given year, the fee will
be deferred to the following year.
• Performance incentive -- In the event that Bedminster exceeds 75% of budgeted
profit for a given year, Bedminster will be eligible for a performance incentive
payment. Botween 75% and 100% of budgeted profit, Bedminster will be paid
1/3 of the amount in excess of 75%. 1n the event that profits exceed 100% of
budgeted profit, Bedminster will be paid 50% of the amount in excess of 100%.
Submitted Into tho public
on with
DICS-) USS" E0 regard an coon -a- 4
(tern ...�--
"-4&0 a. J Walter Foeman
CIty Clerk
9/25/2001 1: 12 PM
• City has right to review and approve budget on annual basis.
• City has right to enter Facility at reasonable times
• City to be reimbursed for tolls.
• City liable for any losses.
• Bedminster will provide full. insurance for Facility.
• Bedminster responsible for nuisance control (to meet specifications)
• Facility to set aside 3% of annual gross for reserve fund for maintenance and
upkeep.
• Going forward fee -- beginning with the commencement of operation of the
facility, Bedminster will be paid an amount over a period of 2.0 years for certain
expenses. The payments shall be made quarterly at prime plus 1% out of the
City's share of operating profit. in the event that there are no profits allocable to
the City in a given quarter, the payment will be deferred to the following quarter.
• Performance Guarantee -- each manufacturer of equipment will guarantee the
performance of their equipment to a specified standard and Bedminster will use
its hest efforts to secure a performance guarantee for the completed system,
• Lawsuit to be dismissed with prejudice upon signing of the Amended Agreement.
• Non -compete — Bedminster not to construct any similar processing plant south of
the north Palm Beach County line extending across the state of Florida.
Bedminster will not divert any waste stream outside this area.
• In the event of litigation, City chooses counsel, litigation costs split 50/50
between City and Bedminster.
• Agreement to be assigned to Bedminster's parent, Phoenix Waste Management
Corp. In the event of default, City to be assigned Agreement.
Submitted Into the public
reoord In connection with
item �ff! _ on A'A&
t^loItor Foeman
DISCO SSEQ