Submitted By: Tiffany Stewart
presenter
Presentation By: Darren Park
end
Department: Public Works
STAFF RECOMMENDATION (Motion Ready):
title
Approve the sixth amendment to the agreement with Waste Pro of Florida, Inc. for single-stream curbside recycling for an additional contract expenditure of $98,782
end
OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place, Operational Excellence
PROOF OF PUBLICATION:
N/A
body
BACKGROUND:
The Public Works Sanitation Division has provided single-stream curbside recycling services for residential and multi-family complexes within the city limits since April 2012.
On December 15, 2017, the City issued its 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 $332.00 per ton. On May 15, 2018, 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 (1) optional, (5) five-year renewal period with an annual Consumer Price Index for All Urban Consumers (CPI-U) adjustment of not more than three percent (3%) 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 $362.87 per ton was approved by the City Council on December 6, 2022.
FINDINGS AND CONCLUSIONS:
For the Fifth Amendment, in addition to a 5% CPI-U rate increase, the parties negotiated modifications which included a guaranteed 3,800 tons annually, an increase of the contamination rate to 25%, and a CPI-U-justified rate increase of no more than 5% for the renewal term commencing October 1, 2023 through September 30, 2028.
Due to continued economic pressures on processing, labor, recycling, and disposal expenses, Waste Pro is requesting a CPI-U rate increase to $406.79 per ton, a 3.8 percent ($14.89) increase, effective October 1, 2024, through September 30, 2025.
The Fiscal Year 2024-25 budgeted amount for recycling is $1,600,000. The projected expenditure with the 3.8 percent increase is $1,698,782. The increased rate of $406.79 multiplied by 3,800 tons (contract minimum), plus $42,200 (contamination), minus the previous rate of $391.90 and multiplied by 3,800 tons (contract minimum) results in an increase of $98,782. With the CPI-U increase, the projected expense results in a budget shortfall of $98,782 for Fiscal Year 2024-2025.
Staff recommends approval of the Sixth Amendment to the Agreement effective October 1, 2024, through September 30, 2028.
FISCAL IMPACT:
$98,782 will be transferred from the Sanitation Reserve for Contingencies to fund the increase for Fiscal Year 2024-25 in 453-023-326-534-53-34010. An accompanying budget resolution is provided on the consent portion of this agenda.
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:
• Adopt with Changes
• Table
• Deny