Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Authorizing The Appropriate City Officials To Execute A Third Amendment Renewing The Agreement For Recyclables Processing Services With Waste Connections Of Florida, Inc. In An Estimated Amount Of $1,900,000.00 Over A Five-Year Period.
Strategic Plan Focus
Infrastructure & Facilities
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
The Department of Public Works, Environmental Services Division desires to execute a third renewal of the current agreement with Waste Connections of Florida, Inc. which expired July 3, 2023.
On May 7, 2014, the City Commission passed and adopted Resolution No. R-2014-111, approving the attached Blanket Purchase Agreement to Progressive Waste Solutions of FL, Inc., f/k/a Waste Services of Florida, Inc. and now d/b/a Waste Connections of Florida (“Waste Connections”) to provide recyclables processing services, in accordance with Bid F-4365-13-IS, for an initial five-year term for an estimated annual expenditure of $380,000.00, with the option to renew for two additional five-year periods.
On June 6, 2018, the City Commission passed and adopted Resolution No. R-2018-193, which authorized the execution of a First Amendment with Waste Connections to allow for an interim contract term and revise the compensation to allow the City to evaluate its Solid Waste and Recyclables Processing Services. Once the evaluation was completed, the City Commission passed and adopted Resolution R-2019-165 on June 19, 2019, which authorized the execution of a second Amendment with Waste Connections to set the term and revise the compensation. This current contract expired on July 3, 2023, which had a renewal option for an additional five-year period.
The contract renewal was delayed due to a recycling contamination study that was completed by Waste Connections to determine the contamination rate for the City, in order to begin price negotiations.
The Department of Public Works, Environmental Services Division would like to execute the third renewal period which will increase the recyclables processing fees from $61.81 per ton to $181.00 per ton. The renewal contract will expire on July 3, 2028. At no cost to the City, Waste Connections conducted a composition study from April 3, 2023, through April 8, 2023, which involved sample piles being taken containing recycling material, then separating the materials to study the contamination levels. The study resulted in a contamination rate of 81.5%, but after the first full contract year, at the City’s expense, the City shall conduct a third-party composition study of the Program Recyclables and if contamination is determined to be 25% or less, the City and Contractor shall negotiate a possible adjustment to the processing fee and a possible revenue share percentage of the Average Market Value of the Program Recyclables.
The Director of The Department of Public Works recommends that the City Commission approve and authorize the execution of the Third Amendment to the agreement with Waste Connections for recyclables processing services in an estimated amount of $1,900,000.00 over a five-year period.
Fiscal Impact:
Funding for the renewal agreement is available in the FY 2024 Operating Budget in account number 445.520102.53400.534980.000000.000.000 and will be budgeted in subsequent fiscal years’ operating budgets subject to approval and adoption by the City Commission.
Recommended for inclusion on the agenda by:
Joseph S. Kroll, Director, Department of Public Works
Gus Zambrano, Assistant City Manager for Sustainable Development