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ITEM: DIRECTION REGARDING SOLID WASTE ANNUAL CONTRACT
REQUEST: Direction regarding solid waste annual contract with Waste Management Inc. of Florida (WMI)
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EXPLANATION: On January 8, 2008, Council approved a contract with Waste Management, Inc. of Florida (WMI) to provide solid waste and recycling collection services for the Village. The initial term of the contract was for seven years effective October 1, 2008 through September 30, 2015. The contract included a provision for one additional renewal period of seven (7) years, effective through September 30, 2022.
WMI has expressed a desire to renew the existing contract, under mutually agreeable terms. As part of the contract, we must notify WMI of our intent to renew or rebid these services by September 30, 2014.
In an effort to test existing market conditions and in anticipation of any renewal/rebid, we surveyed local Palm Beach County government agencies as summarized below:
Municipality |
Contractor |
(1) Current Residential Unit Rate Per Month |
(2) Current Commercial Rate per CY |
(3)Franchise Fee |
Year Bid |
Year Renewed |
Wellington |
Waste Management |
$12.00 |
$5.96 |
5% |
2008 |
One- Seven Year Renewal Available |
SWA-PBC Service Area #1 (See attached map) |
Waste Pro |
$13.75 |
$3.25 |
3% |
2013 |
None Available |
SWA-PBC Service Area #2 (See attached map) |
Advanced Disposal |
$14.67 |
$3.25 |
3% |
2013 |
None Available |
SWA-PBC Service Area #3 (See attached map) |
Republic Services |
$11.58 |
$3.25 |
3% |
2013 |
None Available |
SWA-PBC Service Area #4 (See attached map) |
Southern Waste System |
$11.91 |
$3.25 |
3% |
2013 |
None Available |
SWA-PBC Service Area #5 (See attached map) |
Southern Waste System |
$17.16 |
$3.25 |
3% |
2013 |
None Available |
Royal Palm Beach |
Republic |
$10.76 |
$6.29 |
6% |
2007 |
2012 |
Riviera Beach |
Waste Management |
$11.38 |
$8.24 |
$100K Per Month |
2011 |
Available in 2016 |
Palm Beach Gardens |
Waste Management |
$8.75 |
$7.15 |
5% |
2005 |
2013 |
Jupiter |
Waste Management |
$11.67 |
$7.62 |
3% |
1998 |
2012 |
Delray Beach |
Waste Management |
$12.72 |
$5.74 |
5% |
2003 |
2013 |
(1) Unit rates are based on single family homes
(2) Rates per Cubic Yard currently paid by businesses in the Village
(2) Franchise fee is a percentage of gross revenue paid by the contractor to the municipality
We are seeking direction on whether to:
1. Renew the existing agreement under mutually agreeable terms, effective through September 30, 2022;
2. Utilize an existing contract (piggyback) listed above; or
3. Rebid the services.
BUDGET AMENDMENT REQUIRED: NO
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: No fiscal impact until a contract is awarded or renewed.
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: Direction regarding solid waste annual contract with Waste Management Inc. of Florida (WMI).