Submitted By: Tiffany Stewart
presenter
Presentation By: Darren Park
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Department: Public Works
FORMAL TITLE:
title
Seventh amendment to the agreement with Waste Pro of Florida, Inc. for single-stream curbside recycling with a yearly expenditure of $1,684,065
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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 Consumer Price Index for All Urban Consumers (CPI-U) adjustment of not more than 3 percent per year.
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, for a CPI-U rate increase to $342.04 per ton, was approved by the Assistant City Manager, effective October 1, 2020.
The Third Amendment, for a CPI-U rate increase to $352.30 per ton, was approved by the Assistant City Manager, effective October 1, 2021.
The Fourth Amendment, for a CPI-U rate increase to $362.70 per ton, was approved by the City Council on December 6, 2022.
For the Fifth Amendment, in addition to a five percent CPI-U rate increase, which brought the rate to $391.90 per ton, the parties negotiated modifications which 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. This amendment was approved by City Council 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.
FINDINGS AND CONCLUSIONS:
Due to continued economic pressures on processing, labor, recycling, and disposal expenses, Waste Pro is requesting a CPI-U rate increase to $427.13, a 5 percent ($20.34) increase, effective October 1, 2025.
|
Year |
Bidder Name |
Office Location |
Total Amount |
|
2018 |
Waste Pro of Florida, Inc |
Ocala, FL |
$332.00/ton |
|
2019 |
Waste Pro of Florida, Inc |
Ocala, FL |
$337.98/ton |
|
2020 |
Waste Pro of Florida, Inc |
Ocala, FL |
$342.04/ton |
|
2021 |
Waste Pro of Florida, Inc |
Ocala, FL |
$352.30/ton |
|
2022 |
Waste Pro of Florida, Inc |
Ocala, FL |
$362.70/ton |
|
2023 |
Waste Pro of Florida, Inc |
Ocala, FL |
$391.90/ton |
|
2024 |
Waste Pro of Florida, Inc |
Ocala, FL |
$406.79/ton |
|
2025 |
Waste Pro of Florida, Inc |
Ocala, FL |
$427.13/ton |
The expected expenditure for Fiscal Year 2025-26, with a 5 percent increase, is $1,665,494 ($427.13 x 3,800 tons [contract minimum] plus $42,400 for contamination). The Fiscal Year 2025-26 budgeted amount for recycling is $1,684,065. This amount was budgeted in anticipation of the CPI-U increase as well as residential growth within the city limits.
Staff recommends approval of the Seventh Amendment to the agreement, effective October 1, 2025.
FISCAL IMPACT:
Funds for this contract have been budgeted for Fiscal Year 2025-26 in account 453-023-326-534-53-34010 in the amount of $1,684,065.
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