Subject:
Title
Direction, Re: Solid Waste & Recycling Collection Services Contract
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Fiscal Impact:
Fiscal impact of the requested action will depend on the option selected by the Board. Both options are expected to include approximately $85,000 in public notice mailing costs.
• Option 1: Renewal of the current contract is estimated to cost approximately $3.362M additional annually in year one (FY27-28) of the three-year period.
• Option 2: Fiscal impact will depend on proposals received and the negotiated fee with the awarded contractor.
• Option 3: Undetermined.
Dept/Office:
Solid Waste Management Department
Requested Action:
Recommendation
It is requested that the Board of County Commissioners provide staff direction and approve one of the following options:
1. Option 1: (a) Approve legislative intent to consider a three-year extension of the current Solid Waste Collection Contract, (b) authorize advertising a Public Hearing and notification to property owners of a potential increase to the Non-Ad Valorem Solid Waste Collection Assessment. (c) A Public Hearing will be scheduled at a future regular meeting to consider approval of the contract extension and associated assessment increases.
2. Option 2: (a) Authorize Purchasing Services to advertise a Request for Proposal to competitively select a solid waste collection provider, (b) authorize the County Manager to establish a Selection and Negotiation Committee, (c) bring back a negotiated contract for the Board’s consideration.
3. Option 3: Any other action as determined by the Board.
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Summary Explanation and Background:
On June 1, 2020, the Board of County Commissioners executed a contract with Waste Management, Inc. for the collection of garbage, yard waste, and recyclables in unincorporated Brevard County. The current contract term runs October 1, 2020, through September 30, 2027, with a provision allowing a three-year extension through September 30, 2030.
Option 1: Contract Extension
Waste Management has expressed interest in exercising the three-year extension provision found in Section 2 of the current contract.
The existing contract limits annual rate increases to 3%; however, increases in the Consumer Price Index for Garbage and Trash have exceeded this limit in recent years (see table below). As a result, Waste Management has requested: a 12% increase in FY27-28, and an increase to the annual limit of 6% for FY28-29 and FY29-30.
Any increase in rates paid to Waste Management under this provision will necessitate a corresponding increase in the Non-Ad Valorem Solid Waste Collection Assessment for each of those fiscal years.
Option 2: Competitive Solicitation
This option would authorize Purchasing Services to competitively solicit a Request for Proposals and authorize the County Manager to establish a Selection and Negotiation Committee. After reviewing proposals, the Selection and Negotiation Committee will return to the Board with the top-ranked proposer that has demonstrated its qualifications, experience, and approach to perform the collection services for the County.
Recent procurements in Central Florida have resulted in initial rate increases ranging from approximately 42% to 82% in cases where prior contracts included little or no escalation provisions. Jurisdictions with higher annual escalation limits have experienced lower initial increases, in some cases as low as 7% when a new collection contract was executed.
For reference, the current Brevard County contract experienced a 39% increase in rates over the previous contract in the first fiscal year. The County’s prior contract did not include an annual rate adjustment provision.
A comparison of current solid waste and recycling collection fees in surrounding jurisdictions is attached for reference.
Attachments
Solid Waste & Recycling Collection Services Contract
Comparison of Current Solid Waste and Recycling Collection Fees
Clerk to the Board Instructions: