Okaloosa County BOCC — October 16, 2012 — Okaloosa County WM Proposal 91012[1] — reading text

WASTE MANAGEMENT 108 Hill Avenue. Fort Walton Beach, FL 32548 (850) 301-2816 dfarmer@wm.com September 10, 2012 Mr. John Hofstad Public Works Director Okaloosa County Public Works 1759 South Ferdon Blvd. Crestview, FL 32536 Dear John: Since our last meeting, my financial team has modeled and analyzed the 1x1x1 residential curbside program. We have diligently reviewed various operating scenarios given the pricing we discussed during our last meeting. We would like to propose the following: • $9.70/month/home • WM will provide the 96 gallon carts • 5 year extension on both Collection and Transfer Station agreements • Bad Debt is capped at $95K per year With the above proposal, Okaloosa County will recognize a substantial savings because of the reduced cost per home, additional revenue from recycled commodities, and decreases in solid waste disposal cost. WM has genuinely taken this opportunity to extend our working relationship with Okaloosa County. We have deployed many resources to model and analyze both financial and operational scenarios. Ultimately, we recognize that WM will incur a capital expense of $1.5M, we have anticipated improved operational efficiencies, we expect decreases in disposal volumes, and increases in the transportation/handling of our recycled commodities. We believe this current proposal is a significant option for the County’s consideration. Let me know if you have any questions. Sincerely, Domenica Farmer Domenica Farmer District Manager Waste Management