Submitted By: TJ Fulmer
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Presentation By: Darren Park
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Department: Public Works
FORMAL TITLE:
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Eighth amendment to the agreement with Waste Pro of Florida, Inc. for single-stream curbside recycling
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place, Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The Public Works Sanitation Division has provided single-stream curbside recycling services for single-family residences within the city limits since April 2012.
On December 15, 2017, the City of Ocala issued Invitation to Bid (ITB) No.: PWD/18-014 for single-stream curbside recycling. Waste Pro of Florida, Inc. (Waste Pro) was the sole bidder at $332 per ton. On May 15, 2018, the City Council approved the award of Contract No.: PWD/18-014 with Waste Pro for a five-year term in the amount of $6,308,000. The agreement included one optional, five-year renewal period, with an annual adjustment to the Consumer Price Index for All Urban Consumers (CPI-U) of not more than 3 percent.
The first amendment to the agreement for a CPI-U rate increase to $337.98 per ton was approved by the Assistant City Manager, effective December 30, 2019.
The second amendment, increasing the CPI-U rate to $342.04 per ton, was approved by the Assistant City Manager, effective October 1, 2020.
The third amendment, increasing the CPI-U rate to $352.30 per ton, was approved by the Assistant City Manager, effective October 1, 2021.
The fourth amendment, increasing the CPI-U rate to $362.70 per ton, was approved by the City Council on December 6, 2022.
For the fifth amendment, in addition to a 5 percent CPI-U rate increase, which brought the rate to $391.90 per ton, the parties negotiated modifications that included an increase of the contamination rate to 25 percent, and an annual CPI-U-justified rate increase of no more than 5 percent for the renewal term through September 30, 2028. The City Council approved this amendment on April 4, 2023.
The sixth amendment to the agreement for a CPI-U rate increase to $406.79 per ton was approved by the City Council on October 15, 2024.
The seventh amendment to the agreement for single-stream curbside recycling, with an annual expenditure of $1,684,065, was approved by the City Council on September 16, 2025. The compensation was increased to $427.13 per ton (a 5 percent increase).
FINDINGS AND CONCLUSIONS:
At the Solid Waste Revenue Sufficiency Study workshop held on January 13, 2026, the City Council directed staff to revise the existing single-stream recycling contract to eliminate curbside recycling collection, establish recycling drop-off locations, and purchase the existing recycling carts from Waste Pro. The change from curbside collection to recycling drop-off locations was projected to result in $1.4 million in annual cost avoidance, helping reduce the rate increase needed to sustain the solid waste fund. On February 3, 2026, the City Council approved the rate increase.
Waste Pro and City staff negotiated a recycling rate of $125 per ton and a purchase price of $18 per cart. We anticipate purchasing 17,602 carts totaling $316,836. The recyclables will be collected by the City of Ocala Sanitation Division and delivered to Waste Pro’s materials recovery facility (MRF) for processing. For comparison, Marion County is paying Waste Pro $137.70 per ton to drop off single-stream recycling at its MRF.
FISCAL IMPACT:
Funds for this contract, already budgeted for Fiscal Year 2025-2026 in account 453-023-326-534-53-34010 for single-stream curbside recycling, will cover the cost of purchasing the recycling carts and processing recyclables by Waste Pro. The result of this change will be a projected cost avoidance of $60,000 this fiscal year.
For Fiscal Year 2026-2027 funds for this contract will be budgeted to account 453-023-326-534-53-34010 in the amount of $100,000. This represents a cost avoidance of approximately $1.5 million compared to continuing the curbside single-stream recycling program.
PROCUREMENT REVIEW:
These services were procured in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
This Amendment will be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny