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ITEM: AUTHORIZATION TO RENEW AN EXCLUSIVE FRANCHISE AGREEMENT BETWEEN THE VILLAGE OF WELLINGTON AND WASTE MANAGEMENT, INC. OF FLORIDA, FOR SOLID WASTE AND RECYCLABLE MATERIALS COLLECTION SERVICES
REQUEST: Authorization to renew an Exclusive Franchise Agreement with Waste Management, Inc. of Florida ("Waste Management") for the collection of solid waste and recyclable materials, in the amount of approximately $3,914,832 for Fiscal Year 2021.
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EXPLANATION: On April 14, 2015, the Village Council awarded a franchise agreement to Waste Management for the collection of solid waste and recyclable materials Village-wide. The initial term of the contract was for five (5) years with three one (1) year renewal options. As part of the contract renewal Waste Management is proposing the following revisions:
1. Increase the existing curbside residential pickup rate from $12.56 to $13.46. The proposed increase would offset losses incurred by Waste Management due to excess tonnage and bulky waste generated by Wellington residents throughout the initial term of the contract. Based on 20,698 residential curbside units, the increase amounts to approximately $223,000 annually.
2. Convert the existing Consumer Price Index (CPI) annual price adjustment metric, to the Water Sewer and Trash index (WST). The Solid Waste Authority and most local governments have converted from the CPI to the WST index as it more accurately tracks actual costs of providing waste collection service. Based on the annual index percentage change, the cost to convert indices amounts to an increase of approximately $88,800 annually.
3. Revise financial sponsorship allocations in the amount of $25,000 annually, to a variety of non-profit organizations and programs selected collectively by Waste Management and The Village of Wellington.
4. Add recycling services, to be provided by Waste Management, the day after Thanksgiving and the day after Christmas (for those residents where regular...
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