Okaloosa County BOCC — November 4, 2012 — WM Letter 12-10-12

WASTE MANAGEMENT 108 Hill Avenue. : Fort Walton Beach, FL 32548 WASTE MANAGEMENT (850) 301-2816 Tamera December 10, 2012 Mr. John Hofstad Public Works Director Okaloosa County Public Works 1759 South Ferdon Blvd. Crestview, FL 32536 Dear John: With your support and with the approval of our Okaloosa County Commissioners, Waste Management is prepared to move forward with one of the first 1x1x1 service levels in the Northwest Florida Area. Our plan is to roll-out this new program beginning in the 4% quarter of 2013 and phasing in the new service level over a period of 9 months in 2013. We have received a few comments from senior citizens regarding the size of the 96 gallon cart, and we have told those citizens that a 35 gallon cart would be available as an alternative. Our brand new Compressed Natural Gas trucks (running Okaloosa County routes in early 2013) can accommodate both the 96 gallon cart and the smaller size recycling container which is more suitable for senior citizens. Our proposal is as follows: e Waste Management will purchase all 96 gallon and 35 gallon recycling containers; approximately $1.5M in cost e Waste Management will provide the County with a rate of $9.45/nhome/month for the 1x1x1 service level; this level of service also includes bulk pickup (on-call basis) Okaloosa County to retain ownership of the recycling carts at the end of our contract Both collection and transfer station agreements with WM to be renewed for an additional term as stated in current franchise agreement; by exercising the extension, both contracts to be extended to March 2021. There is a substantial cost savings (both in disposal diversion and increased recycling rebates) to be recognized by Okaloosa County if this service level moves forward in 2013. Waste Management is excited to be a part of a municipality that is proactively moving toward the 75% State of Florida diversion goal, and WM is proud to service this municipality with our Compressed Natural Gas vehicles with zero emissions in 2013. Let me know if you have any questions. Sincerely, Domenica Farmer District Manager Waste Management