Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Execute An Agreement With Waste Pro Of Florida, Inc. For Solid Waste Collection, Recyclables Collection, Yard Waste/Bulk Waste Collection And Yard Waste/Bulk Waste Disposal For An Estimated Annual Amount Of $11,548,722.04.
Body
Staff Recommends: The Approval of the Attached Resolution.
Explanation:
The Public Works Department, Environmental Services Division requires an agreement with a qualified contractor to provide solid waste collection, recyclables collection, yard waste/bulk waste collection and yard waste/bulk waste disposal for approximately 34,659 residences citywide. The Public Works Department, under a City Commission approved agreement, enlisted the services of a solid waste consultant, Kessler Consulting Inc., to assist the City and the Public Works Department in this process and analysis. The Public Works Department, Environmental Services Division requested the Office of Procurement Services to solicit bids for solid waste collection, recyclables collection, yard waste/bulk waste collection and yard waste/bulk waste disposal to include six collection options with separate pricing for each option as set forth in the bid:
• Option 1A
o one time weekly solid waste collection,
o one time weekly recyclables collection,
o one time weekly yard waste collection,
o one time monthly bulk waste collection,
o yard waste and bulk waste disposal.
• Option 1B
o one time weekly solid waste collection,
o one time weekly recyclables collection,
o one time weekly commingled (combination of yard waste and bulk waste) collection,
o commingled disposal.
• Option 1C
o one time weekly for solid waste collection,
o one time weekly recyclables collection,
o commingled disposal.
• Option 2A
o two times weekly solid waste collection,
o one time weekly recyclables collection,
o one time weekly yard waste collection,
o one time monthly bulk waste collection,
o yard waste and bulk waste disposal.
• Option 2B
o two times weekly solid waste collection,
o one time weekly recyclables collection,
o one time weekly commingled (combination of yard waste and bulk waste) collection,
o commingled disposal.
• Option 2C
o two times weekly solid waste collection,
o one time weekly recyclables collection,
o commingled disposal.
Bid F-4609-19-PB for Residential Solid Waste Collections and Bulk/Yard Waste Processing was advertised on Bidsync, on February 21, 2019, and closed on April 15, 2019, in accordance with the Section 38.42 (A)(1) of the City’s Purchasing Ordinance.
The term of this Solid Waste Collection and Bulk/Yard Waste Processing Agreement is for an initial ten year period, beginning October 1, 2019, expiring September 30, 2029, with the option to renew for one additional three year period subject to vendor acceptance, satisfactory performance of the vendor and determination that the renewal will be in the best interest of the City.
On March 7, 2019, a pre-bid conference was held at the Public Works Facility with several solid waste companies in attendance. Questions were asked and answers were provided to all prospective bidders during this pre-bid conference. Due to the City being approximately 60% alley collection, prospective bidders inquired regarding the ability to provide curbside garbage collection service. It was explained that the City was not interested in eliminating alley collection service at this time. Concerns were expressed about the additional equipment needed to provide this service. Additionally, prospective bidders expressed concerns about providing the City with emergency debris assistance at no additional costs. It was explained that bidders were expected to make their trucks available to resume commingled collections as soon as it was deemed safe.
Bids were opened on April 15, 2019 at 3:00 PM in the Procurement Office and resulted in a bid from Waste Pro of Florida for all collection options and yard waste/bulk waste/ commingled waste processing and a bid from Coastal Waste and Recycling of Broward County, LLC for yard waste/bulk waste/ commingled waste processing and disposal, and two no-bids were submitted by Republic Services of Florida and Waste Management Inc.
The bids were thoroughly reviewed by Procurement Services, Public Works, and Kessler Consulting along with assistance from the City’s Attorney’s Office and both companies, Waste Pro and Coastal Waste & Recycling, were found to be responsive and responsible. The Director of Public Works and the Director of the Office of Procurement Services and Contract Compliance are recommending that the City Commission approve and award the contract to the lowest responsive and responsible bidder for Option 2A, Waste Pro of Florida for an estimated annual amount of $11,548,722.04. Their bid fully meets all requirements of the bid document and specifications.
Waste Pro was provided an opportunity to submit a Best and Final Offer to consider any price reduction. Waste Pro indicated that they have reviewed the bid documents thoroughly and their original bid pricing was very aggressive and does not provide for any additional concessions or reductions in costs.
The solid waste, recycling and commingled collection services provided by Waste Pro have improved over the last year. The complaints regarding their service has declined by 5% over the last year. They have continued to be very responsive to complaints and requests for service. The alley collection service in the City is very difficult and Waste Pro has managed to navigate this terrain with minimal service disruption. Complaints are inherent in this solid waste industry. Waste Pro provides 7,209,072 annual collections in the City of Hollywood and have a less than 1% complaint record. This contract provides for minimal transition as Waste Pro is very familiar with this City and will provide our City with 27 new collection vehicles and some smaller vehicles dedicated to alley service. Under the terms of this Agreement, Waste Pro will make an annual payment of $260,000 to the City, which includes $150,000 for City-wide alley way and road repairs, $100,000 for an existing full-time Sanitation Code Officer and $10,000 toward the funding of a Part-Time Recycling Coordinator. Waste Pro has been a partner to the City in recent disaster events, including hurricanes, and will dedicate two Route Supervisors solely to Hollywood.
There will be additional contractual improvements under the terms of this Agreement. Fines have been restructured and increased, customer service specifications have been outlined and improved with additional contractor staff allocated to the City. Collection trucks will be equipped with GPS trackable reports and will have DriveCam video available upon request. Illegal dumps will be picked up at no additional cost to the City by Waste Pro.
Staff is recommending that the Mayor and the City Commission award this contract under Option 2A. Under this option residents would receive twice weekly garbage collection, once weekly recycling collection, one weekly yard waste collection (with a 4 cubic yard limit) and once monthly bulky waste collection (with a six cubic yard limit). The new rate would be $42.00/month. The current solid waste rate paid by residents is $31.00/month. This is an increase of $11.00/month. This option would rid the City of unsightly bulk waste material placed curbside and in the alley every week and allow for Sanitation Code Officers to efficiently clear areas, leading to a cleaner City.
If the current service level is selected, Option 2B, twice weekly solid waste collection, once weekly recycling collection, once weekly commingled collection (with an eight cubic yard limit). The new rate would be $41.00/month. This would be an increase of $10.00/month.
However, if Option 1B is selected, once weekly solid waste collection, once weekly recycling collection, once weekly commingled collection (with an eight cubic yard limit), the new rate would be $37.00/month. This would be an increase of $6.00/month. This would be the smallest rate increase of all options presented. Residents would be encouraged to increase their recycling efforts to sustain a reduced service frequency of solid waste collection.
The rate increases are significant in all options presented; however, the residents have not experienced a solid waste rate increase since 2008. Actually, in 2011 the rates were lowered by $1.00.
Meanwhile, solid waste program costs have increased over the past eight plus years, costs have increased for solid waste collection, disposal, commingled disposal and recyclables processing. The City has experienced a substantial loss of revenue due to the downturn of the recycling markets and now has to budget for new recycling processing costs. Employee staffing costs, benefit costs, equipment costs, fuel costs, including increases in salaries, pension obligations, liability, insurance costs, etc., have all increased. From 2009 to 2019, there has been a 24% increase in the All Urban Consumers, Consumer Price Index. During this same time span, the City has endured financial urgency. Cost increases, although appropriate, were not implemented as taxpayers in the City had experienced tax increases as a result of financial urgency.
Additionally, the dissolution of the Resource Recovery Board resulted in $2,719,299 that was utilized for beach cleaning and litter removal equipment, alley paving, fuel island improvements, and delaying necessary rate increases.
Therefore, the solid waste rate increases under each of the various options, although significant, are necessary in order to provide the required solid waste services.
Funding for this service will be provided in the FY 2020 budget in the Department of Public Works Environmental Services Administration Account Number 445.520101.53400.531170.000000.000.000- Contractual Services Account and will be budgeted in subsequent fiscal years.
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