Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Execute The Second Amendment To The Solid Waste Disposal Agreement With Waste Connections Of Florida, Inc. For An Estimated Annual Amount Of $1,867,800.00.
Body
Staff Recommends: Approval of the Attached Resolution
Explanation:
On July 1, 2013, the City and Waste Connections entered into an agreement for Solid Waste Disposal Services, in accordance with Bid F-4365-13-IS, for an initial five year term for an annual estimated annual expenditure of $1,579,600.00, with the option to renew for two additional five year periods.
On June 6, 2018, the City Commission passed and adopted Resolution No. R-2018-192 which approved and authorized the execution of a First Amendment to the Agreement with Waste Connections to allow for an interim contract term and revised the disposal fees paid to Waste Connections in order to allow the City to evaluate its Solid Waste Disposal Services and the Agreement was extended until July 31, 2019.
The solid waste disposal fees in the interim agreement increased from $41.08 per ton to $45.82 per ton during the extension term only. This cost increase of approximately $225,000 was absorbed by the Sanitation Enterprise Fund.
The parties executed the First Amendment to the Agreement on July 16, 2018 and this First Amendment provided that, “in the event that the City determines that it is in the City’s best interest to retain the services of the Vendor beyond the interim term, the City may exercise one or more of the remaining renewal options under the existing Agreement terms and conditions, and the disposal fees, subject to CPI adjustments, will revert back to the rates applicable at the time the renewal decision was made in July of 2018.
On October 17, 2018, a Solid Waste Workshop was conducted with the Mayor and City Commission and the Mayor and City Commission supported Public Works Department, Kessler Consultant Inc. (the City’s solid waste consultant), recommendation to negotiate with Waste Connections for a solid waste disposal agreement, and a recyclables processing services agreement. City staff along with the City’s solid waste consultant and the Procurement Services Department have determined that it is in the best interest to retain Waste Connections for solid waste disposal services. This is the best pricing when compared with other such contracts in Broward County. Additionally, the transfer station is located at 1899 SW 31st Avenue in Pembroke Park, which is in close proximity to our City and Waste Connections has performed satisfactory in the past.
Under the proposed Second Amendment to the Agreement, the solid waste disposal fees shall revert back to $41.08 per ton, and will be subject to a CPI adjustment for July 2018 of 1.9% or $0.78 per ton, and July 2019 of 1.4% or $0.59 per ton for a new solid waste disposal rate of $42.45 per ton effective July 31st, 2019 for an approximate cost of $1,842,720.00 annually. The term will expire on July 2, 2023 and the City will have one, five year renewal option remaining under the Agreement.
Section 38.40(C)(8) provides that when the City Commission declares by a 5/7ths vote that competitive bidding and competitive proposals are not in the best interest of the City, such purchases are exempt from the competitive bidding and competitive proposal requirements.
Funding for this service has been provided in the FY 2019 budget in the Department of Public Works Budget Account Number 445.520101.53400.543610.00000.000.000 - Waste Disposal-Solid Waste Account.
Recommended for inclusion on the agenda by:
Charles W. Lassiter, Public Works, Assistant Director
Sylvia Glazer, Public Works, Director
George R. Keller, Jr., CPPT, Assistant City Manager, Public Safety