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Home My WebLink AboutM-96-0782i l A Comparison of the Total Costs of Solid Waste Services In 4� The City of Miami, Florida E Report f October 23, 1996 Governmental Consulting Services t 4' Post Office Box 3911 ':. Tallahassee, FL 32315 Phone: 9041562-0492 r FAX: 9041562-7789 ; E- Mail: JVGMAN[a)aol.com .. Specialists in Cost of Service Provision, user Fees, Full Cost Accounting and Long Term Comparative Cost Analysis 96- 782 I Governntefttad Consulting Services i Post Office Box 3911 Tallahassee, T,h 32315 �? Phone (904) 562-0492 FAX (904) 562-7789 E-Mail: JVGAfAN@aol.com - F October 23, 1996 Mr. Roger Tuttle Compost America r 350 So. Main Street Doylestown PA 18901 i Dear Mr. Tuttle, RE: Effects of Process on SW Operating Costs - City of Miami 1 Over the previous week I have been meeting with members of the City staff, your engineers (MSA), and other persons knowledgeable of the operations which Compost America has proposed to the City of Miami. As you will be able to see in the following pages, my time has been well spent and I believe that the benefits to the City will be substantial s Savings to the City over the costs of their current operating methods are projected to range from $2.9 million (year 1 of the projection) to approximately $10.5 million (in year 30). Total savings over the 30 year contract life is estimated at approximately $187.6 million These projections have been made j 1 by applying generally accepted accounting principles to data supplied by City staff. The application of inflation factors was made to all costs equally using a ti CPI of 3.0%. Where the application of this factor was limited or governed by the terms of an agreement (such as your company's service agreement or the City's Interlocal Agreement), the terms of that limitation were strictly adhered to. Please review the following material and share with all interested parties. As I questions arise, I will make myself available to answer them. j Sincerely, j J onasek I President l 96-- 782 �i y� The process which is being examined for effects on the City's operations, MSW Co -Composting, is not an inexpensive method of handling wastes. However, it allows managers to take advantage of certain operating efficiencies. Advantages: 1. Co - collection of materials. That is, separate trucks are NOT required for garbage, yardwastes, and recyclables. This means fewer types of equipment need to operated and maintained. Parts inventories have fewer items and maintenance technicians can become more familiar with a single type. 2. The result of composting is a soil supplement which is considered by the State of Florida to be a recycled product. The expensive and labor intensive process of collecting source separated materials at curbside is not required. j t 3. Because most of the City's waste will be composted, it's recycling rate will rise dramatically from its current level (about 4%). A main purpose of this exercise is to see how the above factors can be applied to the City's collection operations and what the cost reductions (if any) will be. r The City's GSA - Solid Waste expenditures for the 1995/96 fiscal year -� are the basis for the projections. To identify the operational savings, it is critical that the operating costs be examined without any conflicting operations being involved which would result in showing false savings. The General presentation of the GSA - Solid Waste budget is a combined administration and operating budget. Administration will be required, irrespective of operating changes "l which can be effected. Our main interest is in how the process will affect the collection operations of the City. ; i y' To allow more accurate projections, The GSA - Solid Waste Budget has been functionalized and the costs of Administration separated from consideration. This break - out of the costs of Administration can be seen on the following page. F F t I 96- 782 GSA - Solid Waste City of Miami 1996 Expenditures j Solid Waste Expenditures 1 l city of Miami Source: 95-96 Printout Dept. Alloy j Total Admln 9�ns_ Zei� 11 100 Salaries & Wages - Fixed 001 Salaries -Class. Perm FT 6,362,860 258,436 6,104,424 6,362,850 002 Full Disability Salaries 61,500 - 51,500 51,500 003 2/3 Disability Salaries 7,500 7,500 7,500 010 Salaries -Unclassified 260,744 260,744 260,744 013 Salaries -Temporary 15,392 15,392 15,392 035 Medical Hold 1,000 1,000 1,000 ' 050 Salaries-OT 1 Regular 359,460 2,000 357,460 359,460 i + 053 Holiday Pay 192,113 - 192,113 192,113 I ) 055 Salaries -Shift Differential 15,768 15,768 15,768 066 Working Out of Classit. _26.000 26,000 26,000 -, Total Sals, & Wages -Fixed 7,292,337 521,180 6,771,157 7,292,337 200 Fringe Benefits -Fixed I I 075 Clothing -City Purchase 60,000 60,000 60,000 084 24 Hr City Vehicle 100 Soo Security Contrib 99 559,019 22,705 99 536,314 99 559,019 ; 110 Retirement Contrib 600,243 24,380 575,663 600,243 130 Group Insur Contrib 858,183 34,856 823,327 858,1 B3 150 Worker's Comp 958,165 38,917 919,248 958,165 165 Fringe Benefits -Other 200 _8 _ 192 200 J Total Fringe Benefits -Fixed 3,035,909 120,866 2,915,043 3,035,909 1 300 Operating Expenses -Fixed 310 Court Costs & Fees 150 150 - 150 t + 531 Dade County Scale Fees 6,240,000 - 6,240,000 6,240,000 f 533 Postage 3,200 3,200 - 3,200 540 Util Svcs -Electricity 31,000 31,000 31,000 550 Util Svcs -Gas 500 500 500 ; 560 Util Svcs -Water 6,000 6,000 6,000 610 Rent of Equip -Outside 6,000 6,000 - 6,000 640 Insur-Property 292,153 - 292,153 292,153 773 ISF Chgs-Print Shop 9,500 6,500 1,000 9,500 774 ISF Chgs-Commun Mnt 15,000 15,000 15,000 778 ISF Chgs-Fleet Mgt 1.942.530 35,000 1,907,530 1-942,530 I ._.1 Total Oper Exp-Fixed 8,546,033 105,350 8,440,683 8,546,033 400 Operating Expense -Variable t i _ 340 Oth Contr Svcs -Outside 21,910 21,910 21,910 510 Commun Svcs/Tel-Outside 5,000 5,000 - 5,000 s -' 532 Road Tolls 550 - 550 550 1 670 Repair/Maint•Oulside 2,462 2,462 - 2,462 679 Outside Legal & Inv Svc 106 106 - 106 700 Office Splys 7,264 4,000 3,264 7,264 ' 701 Repairs -Equip Splys 422 - 422 422 IIIE 705 Housekeeping/San Splys 18,113 4,000 14,113 18,113 J 708 Plumbing Splys 1,900 1.900 1,900 719 Safety Splys 10,973 - 10,973 10,973 720 Expend Tools/Shop Splys 16,095 - 16,095 16,095 i ( 722 Misc Splys 15,000 500 14,500 15,000 / 760 Books/Pubs/Memb 1,355 1,355 - 1.365 768 Blanket PO -Rep & Mnt Outs 3,000 - 3,000 3,000 795 interdept Chgs-Pollce ID 150 150 150 l Total Oper Exp-Varlable 104,300 41,383 62,917 104,300 j 600 Grants In Aid 930 Aid to Pvt Organiz. 42,631 42,631 - 42,631 j 985 Depreciation 478,790 47,879 430,911 478,790 j 990 Other Non-Oper (3,500,0001 �) Total Grants In Aid (2,978,579) 90,510 430,911 11 521,421 f { GRAND TOTAL: 16,000,000 879,269 18,620,711 19,500,000 i t ..J QQ 7 1 7 1 The costs of program supervision are still contained in the Operations Budget. To present a clear picture of the cost of operations, certain adjustments were made to the Operations Budget. There is a $3.5 Million credit (reducing costs) shown under the account titled 600-990 Other Rion - Operating. While the exact nature of this credit has not been fully documented, a non - operating value can be adjusted - out of the analysis without affecting the outcome of the study. Since it is not presented as a revenue for a solid waste service, it likely affects both the current operation and any revised operation identically. While that credit may serve to reduce operating costs, it provides no operating efficiency to the process which is being used as the baseline for this study. The remaining operating costs have been further functionalized into each service's individual cost of operations. The Services Provided by City Solid Waste: • Garbage Collection • Trash Collection • Recycling • Mulching • Street Cleaning The individual service operating costs can be seen on the following page. All operating elements contain the costs of program supervision. 96" 782 P Mw Operations Cost by Fu"LPI n City of Miami Solid Waste Operating Budgets City of Miami Source: 95.96 Printouts Total Solid Waste Trash Street MSW Total Operations Collection Recvcllna Mulchtno Sweepino Collection Allocated 100 Salaries & Wages - Fixed 001 Salaries -Class. Perm FT 6,104,424 2,084,09S 753,401 126,899 555,470 2,584,479 6,104,424 002 Full Disability Salaries 51,500 18,362 4,278 1,268 2,535 25,037 51,500 003 2/3 Disability Salaries 7,500 2,677 623 185 369 3,646 7,500 010 Salaries-Unclassiliod - - - - 013 Salaries -Temporary 15,392 5,236 1,219 361 1,444 7,132 15.392 035 Medical Hold 1,000 357 83 25 49 486 1,000 050 Salaries-OT 1 Regular 357,460 121,599 28,303 8,386 33,545 165,627 357,460 053 Holiday Pay 192,113 65,352 15,211 4.507 18,028 89,014 192,113 055 Salaries -Shift Differential 15,768 5,364 1,248 370 1,480 7,306 15,768 066 Working Out of Classif. 26,000 8.645 2.059 610 2,440 12.047 26.000 Total Sals. & Wages -Fixed 6,771,157 2,311,907 806,S06 142,610 615,361 2,894,774 6,771,157 200 Fringe Benefits -Fixed 075 Clothing -City Purchase 60,000 20,721 4,823 1,429 5,716 27,310 60,000 084 24 Hr City Vehicle 99 99 99 100 Soc Security Contrib 536,314 183,116 63,880 11,295 48,740 229,282 536,314 110 Retirement Contrib 575.863 199,365 69,548 4,257 53,065 249,628 575,863 130 Group Insur Contrib 823,327 285,092 66,358 19,662 78,646 373,569 823,327 150 Worker's Comp 919,248 318,307 74,089 21,952 87,809 417,092 919,248 185 Fringe Benefits -Other 192 69 24 2 18 7 192 Total Fringe Benefits -Fixed 2,915,043 1,006,671 276,722 58,597 273,995 1,297,059 2,915,043 300 Operating Expenses -Fixed 310 Court Costs & Fees - - - - - - 531 Dade County Scale Fees 6,240,000 6,240,000 6,240,000 533 Postage - - - 540 Util Svcs -Electricity 550 Util Svcs -Gas 560 Util Svcs -Water 610 Rent of Equip -Outside - - 640 Insur-Property 292,153 168,280 23,372 7,012 28,047 65,442 292,153 773 ISF Chgs-Print Shop 1,000 576 80 24 96 224 1,000 774 ISF Chgs-Commun Mnt - - 778 ISF Chgs-Fleet Mgt 1,907,530 734,472 116,583 52.462 174,874 629,138 1,907,530 Total Oper Exp-Fired 8,440,683 903,329 140,035 59,498 203,017 7,134,804 8,440,683 400 Operating Expense-Varlable 340 Oth Contr Svcs -Outside - - - - - - 510 Commun Svcslrel-Outside _ . 532 Road Tolls 550 550 550 670 Repair/Maint-Outside 679 Outside Legal & Inv Svc - 700 Office Splys 3,264 - 3,264 3,264 701 Repalrs-Equip Splys 422 243 34 10 41 95 422 705 Housekeeping/San Splys 14,113 - 14,113 14,113 708 Plumbing Splys _ 719 Safety Splys 10,973 3,595 1,387 252 1,009 4,730 10,973 720 Expend Tools/Shop Splys 16,095 9,271 1,288 386 1,545 3,605 16,095 722 Misc Splys 14,500 4,750 1,833 333 1,333 6,250 14,500 760 Books/Publ/Memb - - - - 768 Blanket PO -Rep & Mnt Outs 3,000 1,728 240 72 288 672 3,000 795 Interdept Chgs-Police ID Total Oper Exp-Variable 62,917 19,686 4,782 1,054 4,216 33,279 62,917 600 Grants In Aid 930 Aid to Pvt Organiz. - - 985 Depreciation 430,911 248,205 34,473 10,342 41,367 96,524 430,911 990 Other Non-Oper Total Grants In Aid 430,911 248,205 34,473 10,342 41,367 96,524 430,911 GRANDTOTAL: 18,620.711 4,489,697 1,264,518 272,100 1,137,956 11,456,440 18,620,711 9s- 782 -; Adjustments The City's operations could be significantly altered by employing co - composting. As noted earlier, since they will not be taken to a class 1 landfill, yardwastes and recyclables could be collected by a single vehicle. This operating efficiency will allow a reduction in force and a reduction in total equipment requirements. However, the City will still have to account for the operational realities of heavy and bulky items. For this reason, a significant cost allowance, based on current Trash Collection Program costs, has been kept in the projections. The volume of wastes which will can be collected by any single truck is llimited. In respect to that logistical factor, the projections allow for a cost increase in this aspect as well. i Overall, it is estimated that approximately 45 required FTE's can be , eliminated by employing the co - composting process. I Commensurate operating cost reductions result as well The following pages contain the results of the cost projection model Much of the effect of the reduction in force could be accommodated through attrition and through retirement policies. I �, 96- 782 Contract Year. 1 2 3 4 5 6 7 8 9 10 Current Scenario Zo41 2004 z0as 2007 244$ (Operations Only) Salaries & Wages 6,771,157 6,994,605 7,225,427 7463,866 7,710,174 7,964,610 8,227,442 8,498,947 8,779,413 9,069,133 9,368,415 9,677,572 9,996,932 Fringe Benefits 2,915,043 3,011,239 3,110,610 3,213,260 3,319,298 3,428,834 3,541,986 3,658,871 3,779,614 3,904,341 4,033,185 4,166,280 4,303,767 Oper. Exp/Fixed 2,200,683 2,273,306 2,348,325 2,425,819 2,505,871 2,588,565 2,673,988 2,762,229 2,853,383 2,947,545 3,044,814 3,145,292 3,249,087 Tipping Fees 6,240,000 7,600,000 7,828,000 8,086,324 8,353,173 8,628,827 8,913,579 9,207,727 9,511,582 9,825,464 10,149,704 10,484,645 10,830,638 Oper. ExpNar 62,917 64,993 67,138 69,354 71,642 74,006 76,449 78,971 81,578 84,270 87,050 89,923 92,891 Depreciation 430.911 445,131 459,820 474-994 490,669 506,861 523,588 540,866 558,715 577-152 596,196 615,873 636,197 18,620,711 20,389,274 21,039,320 21,733,618 22,450,827 23,191,704 23,957,030 24,747,612 25,564,284 26,407,905 27,279,366 28,179,585 29,109,511 Avg Cost/Ton: $ 126.97 $ 115.26 $ 118.58 $ 122.12 $ 125.78 $ 129.54 $ 133.41 $ 137.40 $ 141.51 $ 145.75 $ 150.11 $ 154.59 $ 159.22 Compost America 1 Z 1 1999 2QO-2 2001 2002 2A01 2004 Mok M 2M Mo (Operations Only) Salaries & Wages 6,771,157 6,994,605 7,225,427 5,335,494 5,495,559 5,660,425 5,830,236 6,005,145 6,185,300 6,370,859 6,561,984 6,758,844 6,961,609 Fringe Benefits 2,915.043 3,011,239 3,110,610 2,378,077 2,449,419 2,522,902 2,598,589 2,676,546 2,756,843 2,839,548 2,924,734 3,012,476 3,102,851 Oper. Exp/Fixed 2,200,683 2,273,306 2,348,325 1,718,811 1,770.376 1,823,487 1,878.192 1,934,537 1,992,574 2.052,351 2,113,921 2.177,339 2,242,659 Tipping Fees 6,240,000 7,600,000 7,828,000 1,293,338 974,548 1.028,924 1,085,763 1,145,166 1,207,239 1,272,091 1,339,837 1,410,594 1,484,485 Compost Svc Fees 7,800,000 8,034,000 8,275,020 8,523,271 8,778,969 9,042,338 9,313,608 9,593,016 9,880,807 10,177,231 Oper. ExpNar 62,917 64,993 67,138 58,116 59.859 61,655 63,505 65,410 67,372 69,393 71,475 73,619 75,828 Depreciation 431911 445,131 459,820 250,584 258,101 265,844 273,820 282,034 290,495 299,210 308,186 317,432 326,955 18.620,711 20,389,274 21,039.320 18,834,420 19,041,662 19,638,257 20,253,376 20,887,808 21,542,160 22,217,060 22,913,155 23,631,111 24,371,617 Avg Costlron: $ 126.97 $ 11526 $ 118.58 $ 105.83 $ 106.68 $ 109.69 $ 112.79 $ 115.97 $ 119.25 $ 122.62 $ 126.08 $ 129.64 $ 133.30 Annual Savings: 2,899,198 3,408,965 3,553,447 3,703,655 3,859,805 4,022,124 4,190,845 4,366,211 4,548,474 4,737,894 Comparison of Current Operations With Compost America Contract Year. 11 12 13 14 15 16 17 18 19 20 21 22 23 Current Scenario 2M 2M 2M 2012 2013 2014 2015 2016 2017 2018 2019 2M (Operations Only) , Salaries & Wages 10,326,831 10,667,616 11,019,648 11,383,296 11,758,945 12,146,990 12,547,841 12,961,919 13,389,663 13,831,522 14,287,962 14,759,464 15,246,527 Fringe Benefits 4,445.791 4,592,502 4,744,055 4,900,609 5,062,329 5,229,386 5,401 ,956 5,580,220 5,764,367 5,954,591 6,151,093 6,354,079 6,563,764 Oper. Exp/Fixed 3,356.307 3,467,065 3,581,478 3,699,667 3,821,756 3,947,874 4,078,154 4,212,733 4,351,753 4,495,361 4,643,708 4,796,950 4,955,250 Tipping Fees 11,188,049 11.557,254 11,938,644 12,332,619 12,739,596 13,160,002 13,594,282 14,042,894 14,506,309 14,985,017 15,479,523 15,990,347 16,518,029 Oper. ExpNar 95,956 99,123 102,394 105,773 109,263 112,869 116,593 120,441 124,416 128,521 132,762 137,144 141,669 Depredation 657,191 678,879 701.282 224,424 748,330 773-025 798,535 824.886 852,107 880.227 909,274 939.280 970,277 30,070,125 31,062,439 32,087,500 33,146,387 34,240,218 35,370,145 36,537,360 37,743,093 38,988,615 40,275,239 41,604,322 42,977,265 44,395,515 Avg Costlron: $ 163.98 $ 168.89 $ 173.94 $ 179.14 $ 184.50 $ 190.02 $ 195.70 $ 201.55 $ 207.58 $ 213.79 $ 220.19 $ 226.77 $ 23.3.55 Compost America 2009 2Q1Q ZQli 2012 Zip 2014 2015 2016 2017 2M 2M 2020 T�431 (Operations Only) Salaries & Wages 7,170,458 7,385,571 7,607,138 7,835,353 8,070,413 8,312,526 8,561,901 8,818,758 9,083,321 9,355,821 9,636,495 9,925,590 10,223,358 Fringe Benefits 3,195,936 3,291,814 3,390,569 3,492,286 3,597,054 3,704,966 3,816,115 3,930,599 4,048,516 4,169,972 4,295,071 4,423,923 4,556,641 Oper. Exp/Fixed 2,309,939 2,379,237 2,450,614 2,524,133 2,599.857 2,677,852 2,758.188 2,840,933 2,926,161 3,013,946 3,104.365 3,197,496 3,293.420 Tipping Fees 1,561,637 1,642,183 1,726,261 1,814,013 1,905,587 2,001,139 2,100,626 2,204,817 2,313,283 2,426,403 2,544,364 2,667,358 2,795,586 Compost Svc Fees 10,482,548 10,797,024 11,120,935 11,454,563 11,798,200 12,152,146 12,515,710 12,892,212 13,278,978 13,677,347 14,087,668 14,510,298 14,945,607 Oper. ExpNar 78,103 80,446 82,859 85,345 87905 90,542 93,259 96,056 98,938 101,906 104,963 108,112 111,356 Depredation 336,764 346,866 357,272 367,991 379,030 390,401 402,113 414,177 426,602 439,400 452,582 466,160 480,144 f 25,135,384 25,923,142 26,735,649 27,573,682 28,438,047 29,329,572 30,249,113 31,197,552 32,175,800 33,184,796 34,225,508 35,298,937 36,406,112 Avg CostlTon: $ 137.07 $ 140.94 $ 144.93 $ 149.02 $ 153.23 $ 157.57 $ 162.02 $ 166.60 $ 171.31 $ 176.15 $ 181.13 $ 186.26 $ 191.52 Annual Savings: 4,934,741 5,139,297 5,351,851 5,572,705 5,802,171 6,040,573 6,288,247 6,545,541 6,812,815 7,090,444 7,378,814 7,678,328 7,989,403 Comparison of Current Operations With Compost America Contract Year. 24 25 26 27 28 29 30 Current Scenario 2M 2025 2 M2 0227 2028, (Operations Only) Salaries & Wages 15,749,662 16,269,401 16,806,291 17,360,899 17,933,809 18,525,624 19,136,970 Fringe Benefits 6,780,368 7,004,120 7,235,256 7,474,019 7,720,662 7,975,444 8,238,634 Oper. Exp/Fixed 5,118,773 5,287,692 5,462,186 5,642,438 5,828,639 6,020,984 6,219,676 Tipping Fees 17,063,123 17,626,207 18,207,871 18,808,731 19,429,419 20,070,590 20,732,920 Oper. ExpNar 146,344 151,174 156,163 161,316 166,639 172,138 177,819 Depreciaton 1,002,295 1.035.372 1,069,529 1,104,834 _ 1,141,293 1 178.956 1,217,861 45,860,567 47,373,965 48.937,306 50,552,237 52,220,461 53,943,736 55,723,880 Avg Cost/Ton: $ 240.54 $ 247.73 $ 255.14 $ 262.78 $ 270.63 $ 278.73 $ 287.07 Compost America Z= 2M 222k 2026 2027 2028 (Operations Only) Salaries & Wages 10,530,059 10,845,960 11,171,339 11,506,479 11,851,674 12,207,224 12,573.441 Fringe Benefits 4,693,340 4,834,140 4,979,165 5,128,540 5,282,396 5,440,868 5,604,094 Oper. Exp/Fixed 3,392,223 3,493,990 3,598,809 3,706,774 3,817,977 3,932,516 4,050,492 Tipping Fees 2,929,256 3,068,584 3,213,794 3,365,120 3,522,802 3,687,092 3,858,250 Compost Svc Fees 15,393,975 15,855,794 16,331,468 16,821,412 17,326,054 17,845,836 18,381,211 Oper. ExpNar 114,696 118,137 121,681 125,332 129,092 132,965 136,953 Depreciation 494,549 509,385 524,667 540,407 556.619 573,317 590,517 37,548,098 38,725,991 39,940,924 41,194,063 42,486,614 43,819,818 45,194,958 Avg Cost/Ton: $ 196.94 $ 202.51 $ 208.24 $ 214.13 $ 220.19 $ 226.42 $ 232.83 Annual Savings: 8,312,469 8.647,974 8,996,382 9,358,174 9,733,847 10,123,918 10,528,922 f C7.� _ 61 October 23, 1996 Honorable Mayor Carollo City of Miami 3500 Pan American Drive Miami, FL 33131 C ) 1 t Honorable Mayor Carollo: • Please accept this letter as a formal request to withdraw Item # 6 from the October 24th, 1996 agenda. trol, we have been unable to arrange a meeting with you Due to circumstances beyond our con and/or the Interim Manager to present our report. Again, we believe a postponement on this issue will allow your administration additional time to more adequately examine the report that demonstrates the savings the City of Miami will realize over the term of its agreement with Bedminster. Additionally, we respectfully request appointments with you and the Manager to discuss the above in more detail. Our presentation to the full Commission, if requested, can then be rescheduled for November 14th, 1996. r Sincerely, Arsenio Milian, P.E., President Milian, Swain ;& Associates, Inc. Agent for Bedminster/Compost America Facility ! i 7 i t '414M! X:''. i ai ^• �!. x.\S i i;a is - W'.( �S S f i�� Vy+1` $, q .e. t �] ■ems■ ems, (,,(A.i/rMil�F '}+{ .777 hi`IJ�/:� .41.e::..?k� FY yt •r .M,'Y . ..4MK, r :•)r.l l.n\ r Zri: A., Z.: `. .................. October; 7, 1906 C'� > Hi noza�le Mayor Carollo City of Miami 3500 Pare American Drive' �l fcoyn Miami, E 33131 = .73c, z o Honorable Mayor Carollo htsum to the discussions in our meeting tl~.is afternoon, we are respectfully requesting to Withdraw Item #20 under Personal Appearances of the October 10, 1996 agenda. Wo. believe a postponement on this issue will allow your staff and ours additional time to more fully explore all the areas of saving the City of Miami will realize over the term of its agrecment with Bedminster. Wp &, tiler request to be rescheduled for the next regular meeting of the City Commission, we believe to be on October 24, 1996. +� S1z�cerelY, e t 8:1 :21 Nd 8-1�0 Yr.a Nelson E. W'idell Executive Vice President $edminst conversion Cor n Ro uttle PreVen Compost America Holding Company, Inc. 96- 782 Ei MERRETT R. STIERHEIM CITY MANAGER October 25, 1996 BEDMINSTER SEACOR SERVICES MIAMI CORPORATION 12 Executive Campus 535 Route 38, Suite 580 Cherry Hill, New Jersey 08002 ATTN: Nelson E. Widell Executive Vice -President Dear Mr. Widell: vrf �Ifialui F � CO•, Ft �� e P.O. BOX 330708 MIAMI, FLORIDA 33233-0708 (305) 250-5400 FAX (305) 285-1835 n -+ m r Cn i ryi x to Please be advised that this notice is being provided to you pursuant to Section 14.06 of the Restated Compost Recycling Agreement between the City of Miami ("City") and `s Bedminster Seacor Services Miami Corporation (Bedminster") dated November 30, 1995 ("The Agreement"), The City hereby notifies you that Bedminster's failure to pay the One Million Dollars ($1,000,000.00) required to be paid to the City pursuant to Section 9.07 of the Agreement constitutes a default pursuant to the terms of the Agreement. The. City further notifies you that, in the event said $1,000,000.00 payment is not received on or before November 30, 1996, the City shall terminate the Agreement immediately as contemplated by Section 9.07 without further notice to Bedminster or further obligation by the City. ` S' cerely j i Merrett R. Stierheim City Manager cc: Honorable Mayor and Members of the City Commission Ron Williams, Assistant City Manager A. Quinn Jones, III, City Attorney j J Walter Foeman, City Clerk