Agenda 05/28/2019 Item #11A (Solid Waste Franchise Agreements)05/28/2019
EXECUTIVE SUMMARY
Recommendation to exercise the second and final renewal option of the Franchise Agreements for
Solid Waste, Recyclable Materials, and Yard Trash Collection Services with Waste Management
Inc. of Florida, and Waste Connections of Florida, Inc., for an additional term of seven years,
ending on September 30, 2027.
OBJECTIVE: To secure continued collection and hauling services with Waste Management Inc. of
Florida (WMIF), and Waste Connections of Florida, Inc (WCOF), formerly known as Progressive Waste
Solutions of FL, Inc, for solid waste, recyclable materials, and yard trash in Service Districts I and II,
respectively.
CONSIDERATIONS: The current Franchise Agreements with WMIF and WCOF were approved by the
Board of County Commissioners (Board) on February 8, 2005, as Agenda Item 10.A. Section 2.2 of the
existing Agreements established the initial eight-year term, effective October 1, 2005, and ending on
September 30, 2013 at 11:59 PM. The Renewal Option in Section 2.3 allows the County to renew for two
additional terms of seven years each. The first seven years term renewal was approved by the Board on
May 24, 2011, as Agenda Item 10.B., effective October 1, 2013 through September 30, 2020. The
contractor must give written notice to the County Manager at least two years before the expiration of the
current term (on or before September 30, 2011) if the contractor is not willing to renew the Agreement.
Accordingly, both contractors (WMIF & WCOF) have agreed to renew the Agreements, with no changes
to the terms, per the signed renewal agreements attached.
An independent Solid Waste Collection Agreement Benchmarking/Best Value Analysis was conducted
by Jacobs Engineering, Inc. (reference Exhibit II) to provide highlights of current market conditions and
offer professional recommendations to competitively procure or renew existing solid waste collection
agreements. The consultant provided the following bottom line: “…Based on the current level, quality
of services provided and market conditions, renewal remains the best value option for the County.”
(reference attached Exhibit I).
Staff concurs with the Consultant’s assessment. Moreover, the Franchisees actively support the
Integrated Solid Waste Management Strategy with capital infras tructure and program investment aligned
with the Guiding Principles to sustain environmental and growth management, airspace preservation,
operational excellence, and best service value (reference attached Exhibit III). This support is
demonstrated through initiatives including, but not limited to:
• Strong public/private community partnerships that support public health and safety through safe
and compliant disposal of waste.
• Guaranteed recyclable disposable during a volatile global market industry.
• Introduction of (52) compressed natural gas (CNG) collection fleet vehicles.
• Construction of a $2M CNG fueling station, decreasing impacts of fleet emissions to air quality in
the County.
• Specified liquid damages for service-related issues (FY18 unresolved incidents: 0.014%).
• Installation of innovative (9) solar panel powered compactors technology at Main Campus.
• Utilization of automated collection fleet to service approximately 613,000 collections weekly.
• Active contributor under a declared emergency and hurricane debris recovery mission.
FISCAL IMPACT: The FY19 budgeted collections contract operating expense in District I is
$13,205,400, and $760,500 in District II. These expenses are funded through an annual assessment on the
non-ad valorem section of the tax bill in the Mandatory Trash Collection Fund 473. Franchise
11.A
Packet Pg. 58
05/28/2019
Agreements protect the County’s fiscally sound enterprise fund with specific language, limiting the
annual adjustment to no more than 5% and CPI adjustment value shall not exceed 70% CPI. Moreover,
the Agreement contains a NO fuel adjustment clause. Payments for solid waste collection services over
the seven-year renewal term will approximate to a total of $110 million, depending on CPI.
LEGAL CONSIDERATIONS: This item is approved for form and legality and requires a majority vote
for Board action. - JAB
GROWTH MANAGEMENT IMPACT: Continuity of service complies with the Solid Waste Sub-
Element of the Growth Management Plan.
RECOMMENDATION: To approve the second and final renewal of the “Franchise Agreements for
Solid Waste, Recyclable Materials, and Yard Trash Collection Services” with 1) Waste Management Inc.
of Florida, and 2) Waste Connections of Florida, Inc., for an additional seven -year term, ending at 11:59
PM on September 30, 2027, and authorize the Chairman to sign the renewal agreements.
Prepared By: G. George Yilmaz, PhD, PE, Department Head, Public Utilities Department
Kari Hodgson, PE, Director, Solid and Hazardous Waste Management Division
ATTACHMENT(S)
1. Exhibit I - Summary of Consultant's Report and Recommendation r-1 (PDF)
2. Exhibit II - Consultant's Benchmarking and Best Value Memo r-1 (PDF)
3. Exhibit III - Staff Facts & Findings r-1 (PDF)
4. WMIF 2nd Renewal - CAO and Vendor signed (PDF)
5. WCOF 2nd Renewal - CAO and Vendor signed (PDF)
6. BCC Presentation_FA 2nd Renewal (PDF)
11.A
Packet Pg. 59
05/28/2019
COLLIER COUNTY
Board of County Commissioners
Item Number: 11.A
Doc ID: 8895
Item Summary: Recommendation to exercise the second and final renewal option of the
Franchise Agreements for Solid Waste, Recyclable Materials, and Yard Trash Collection Services with
Waste Management Inc. of Florida, and Waste Connections of Florida, Inc., for an additional term of
seven years, ending on September 30, 2027. (Kari Hodgson, Solid and Hazardous Waste Management
Division Director)
Meeting Date: 05/28/2019
Prepared by:
Title: – Solid and Hazardous Waste
Name: Kari Hodgson
05/08/2019 10:36 AM
Submitted by:
Title: – Solid and Hazardous Waste
Name: Kari Hodgson
05/08/2019 10:36 AM
Approved By:
Review:
Public Utilities Operations Support Joseph Bellone Additional Reviewer Completed 05/08/2019 10:39 AM
Solid and Hazardous Waste Kari Hodgson Additional Reviewer Completed 05/10/2019 4:14 PM
Public Utilities Department Sarah Hamilton Level 1 Division Reviewer Completed 05/10/2019 5:24 PM
Public Utilities Department Dan Rodriguez Additional Reviewer Completed 05/13/2019 1:20 PM
Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 05/10/2019 11:51 AM
County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 05/14/2019 10:56 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 05/15/2019 1:22 PM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 05/15/2019 4:54 PM
Budget and Management Office Ed Finn Additional Reviewer Completed 05/17/2019 1:41 PM
County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 05/19/2019 8:13 AM
Board of County Commissioners MaryJo Brock Meeting Pending 05/28/2019 9:00 AM
11.A
Packet Pg. 60
11.A.1
Packet Pg. 61 Attachment: Exhibit I - Summary of Consultant's Report and Recommendation r-1 (8895 : Renewal of Franchise Agreements for Solid Waste,
11.A.2
Packet Pg. 62 Attachment: Exhibit II - Consultant's Benchmarking and Best Value Memo r-1 (8895 : Renewal of Franchise Agreements for Solid Waste,
11.A.2
Packet Pg. 63 Attachment: Exhibit II - Consultant's Benchmarking and Best Value Memo r-1 (8895 : Renewal of Franchise Agreements for Solid Waste,
11.A.2
Packet Pg. 64 Attachment: Exhibit II - Consultant's Benchmarking and Best Value Memo r-1 (8895 : Renewal of Franchise Agreements for Solid Waste,
11.A.2
Packet Pg. 65 Attachment: Exhibit II - Consultant's Benchmarking and Best Value Memo r-1 (8895 : Renewal of Franchise Agreements for Solid Waste,
11.A.2
Packet Pg. 66 Attachment: Exhibit II - Consultant's Benchmarking and Best Value Memo r-1 (8895 : Renewal of Franchise Agreements for Solid Waste,
11.A.2
Packet Pg. 67 Attachment: Exhibit II - Consultant's Benchmarking and Best Value Memo r-1 (8895 : Renewal of Franchise Agreements for Solid Waste,
11.A.2
Packet Pg. 68 Attachment: Exhibit II - Consultant's Benchmarking and Best Value Memo r-1 (8895 : Renewal of Franchise Agreements for Solid Waste,
11.A.2
Packet Pg. 69 Attachment: Exhibit II - Consultant's Benchmarking and Best Value Memo r-1 (8895 : Renewal of Franchise Agreements for Solid Waste,
11.A.2
Packet Pg. 70 Attachment: Exhibit II - Consultant's Benchmarking and Best Value Memo r-1 (8895 : Renewal of Franchise Agreements for Solid Waste,
11.A.2
Packet Pg. 71 Attachment: Exhibit II - Consultant's Benchmarking and Best Value Memo r-1 (8895 : Renewal of Franchise Agreements for Solid Waste,
11.A.3
Packet Pg. 72 Attachment: Exhibit III - Staff Facts & Findings r-1 (8895 : Renewal of Franchise Agreements for Solid Waste, Recycling and Trash Collection
11.A.3
Packet Pg. 73 Attachment: Exhibit III - Staff Facts & Findings r-1 (8895 : Renewal of Franchise Agreements for Solid Waste, Recycling and Trash Collection
SECOND RENEWAL OF FRANCHISE AGREEMENT FOR
SOLID WASTE, RECYCLABLE MATERIALS, AND YARD TRASH
COLLECTION SERVICES
THIS SECOND RENEWAL is entered into this day of 2019, by and
between Collier County, a political subdivision of the State of Florida, through its Board of County
Commissioners, hereinafter referred to as "County," and Waste Management Inc. of Florida, hereinafter
referred to as "Contractor," collectively stated as the "Parties."
RECITALS:
WHEREAS, on February 8, 2005, the County entered into a Franchise Agreement for Solid Waste,
Recyclable Materials, and Yard Trash Collection Services with Waste Management Inc. of Florida
(hereinafter referred to as the "Agreement"); and
WHEREAS, Section 2.2 of the Agreement provided that the initial term olthe Agreement was to
expire September 30,2013; and
WHEREAS, Section 2.3 of the Agreement provides that "This Agreement may be renewed by the
County for two (2) additional terms of seven (7) years each, unless the Contractor gives written notice
to the Manager that the Contractor is not wilting to renew this Agreement and such notice is delivered
at least two (2) years before the expiration of the then current term ofthis Agreement; and
WHEREAS, on May 24, 201 I the Parties renewed the Agreement for the first additional term of
seven (7) years; and
WHEREAS, both parties are satisfied with the arrangement they currently enjoy under the
Agreement, as extended; and
WHEREAS, the County has performed due diligence and market research necessary to make a
determination that it would be in the best interest of the County to renew the Agreement for the second
term, and Contractor wishes to continue the business arrangement as set forth in the Agreement, so that
both parties wish to extend the Agreement.
NOW, THEREFORE, in consideration of the foregoing Recitals, and other good and valuable
consideration, the receipt and sufficiency of which is hereby mutually acknowledged, the Parties agree
as follows:
l. The foregoing Recitals are true and correct and are incorporated by reference herein.
2. In keeping with Section 2.3 of the Agreement, Collier County hereby exercises its right to
renew the Agreement for an additional term of seven (7) years, and Contractor hereby waives its right
to not renew the second extension. Accordingly, the Agreement is hereby extended.
@I l9-wsT-00097/1468563/l ]Page I
11.A.4
Packet Pg. 74 Attachment: WMIF 2nd Renewal - CAO and Vendor signed (8895 : Renewal of Franchise Agreements for Solid Waste, Recycling and Trash
3. Excepting the second renewal transaction set forth herein, all terms and conditions of the
Agreement remain in full force and effect. This Renewal merges any prior written and oral
understanding and agreements, if any, between the parties with respect to the matters set forth herein.
4. This renewal shall be recorded by the County, at the expense ofthe County, in the Official
Records of Collier County, Florida, within sixty (60) days of approval by the Board of County
Commissioners.
lN WITNESS WHEREOF, the Parties have executed this Second Renewal of Franchise
Agreement for Solid Waste, Recyclable Materials, and Yard Trash Collection Services on the date and
year first above written.
Attest
Crystal K. Kinzel, Clerk
By:By:
, Deputy Clerk WILLIAM L. MCDANIEL, JR., CHAIRMAN
WASTE MANAGEMENT INC. OF FLORIDA
a Florida corporation
WITNESSES
By:
Print Name:SignatureAa
I
Print
Approv
O M, IGPLAN s€C. Printed/Typed
PnesioexT
and leg
Jeffrey A kow, County Attorney
Printed/Typed Title
(corporate seal)a
@
ame;
ll 9-wsr-00097/1468563/l l Page 2
BOARD OF COTINTY COMMISSIONERS
OF COLLIER COL]NTY, FLORIDA
11.A.4
Packet Pg. 75 Attachment: WMIF 2nd Renewal - CAO and Vendor signed (8895 : Renewal of Franchise Agreements for Solid Waste, Recycling and Trash
11.A.5Packet Pg. 76Attachment: WCOF 2nd Renewal - CAO and Vendor signed (8895 : Renewal of Franchise Agreements for Solid Waste, Recycling and Trash
11.A.5Packet Pg. 77Attachment: WCOF 2nd Renewal - CAO and Vendor signed (8895 : Renewal of Franchise Agreements for Solid Waste, Recycling and Trash
11.A.5
Packet Pg. 78 Attachment: WCOF 2nd Renewal - CAO and Vendor signed (8895 : Renewal of Franchise Agreements for Solid Waste, Recycling and Trash
Objective is to exercise the final renewal option of the
current Franchise Agreements with Waste
Management Inc. of Florida, and Waste Connections of
Florida, Inc.
May 28, 2019
Agenda Item 11_
11.A.6
Packet Pg. 79 Attachment: BCC Presentation_FA 2nd Renewal (8895 : Renewal of Franchise Agreements for Solid
Consultants Benchmarking and Best Value Summary Report
“Based on our review of the agreements with WMIF and WCOF and assessment of comparable
counties, we conclude that renewing the agreements represents a best value decision.”
-JACOBS
* Collection Service Variations
Collier Hi llsborough Martin Miami -Dade Broward Sarasota Charlotte Polk Palm Be ach Lake Le e
$210 $230 $309 $464 $472 $159 $172 $189 $214 $220 $221
Carts X X X X X X X X X X X
Un limited X
1x /week X X X X X X
2x /week X X X X X
Carts X X X X X X X X
Bi ns X X X
1x /week X X X X X X X X X X X
Vegetative 1x /week X X X X X X X X X
Bul k 1x /week or On-Cal l X X X X X*X X X X X
White Goods 1x /week or On-Cal l X X
El ectronics 1x /week X X X
Ti re s 1x /week X*X*
Batte ries 1x /week X*
Recy cl e
Garbage
AVERAG E ANNUAL HOUSEHOLD COST
11.A.6
Packet Pg. 80 Attachment: BCC Presentation_FA 2nd Renewal (8895 : Renewal of Franchise Agreements for Solid
$210 $230
$309
$464 $472
$0
$100
$200
$300
$400
$500
COLLIER HILLSBOROUGH MARTIN MIAMI-DADE BROWARD
LEVEL OF SERVICE
To deliver best value, high quality, sustainable solid waste
management services that meet our customers’ expectations
11.A.6
Packet Pg. 81 Attachment: BCC Presentation_FA 2nd Renewal (8895 : Renewal of Franchise Agreements for Solid
STAFF FACTS AND FINDINGS
u Environmental & Growth Management
–Strong public/private community partnerships
–Introduction of 52 compressed natural gas (CNG) collection fleet vehicles
–Construction of $2 million CNG fueling station
–Active contributor for declared emergency recovery mission
–Contribute to various local charitable and non-profit organizations
u Airspace Preservation
–Guaranteed recyclable disposal during a volatile global market industry
–9 solar panel powered container technology at the Main Campus
INTEGRATED SOLID WASTE MANAGEMENT STRATEGY
GUIDING PRINCIPLES
11.A.6
Packet Pg. 82 Attachment: BCC Presentation_FA 2nd Renewal (8895 : Renewal of Franchise Agreements for Solid
STAFF FACTS AND FINDINGS
u Operational Excellence
-Required participation in County’s solid waste education & outreach programs
-Contribution of $55,000 to the County for education outreach
u Best Value Service
–Only 3 non collection holidays
–613,000 automated weekly collections
–Liquidated Damages to ensure quality service
u FY18 Unresolved Incidents: 0.014%
INTEGRATED SOLID WASTE MANAGEMENT STRATEGY
GUIDING PRINCIPLES
11.A.6
Packet Pg. 83 Attachment: BCC Presentation_FA 2nd Renewal (8895 : Renewal of Franchise Agreements for Solid
BUDGET & COST CONTAINMENT CONSIDERATION
u CPI ADJUSTMENT VALUE SHALL NOT EXCEED 70% CPI
–A SAVINGS OF ~$4M OVER THE CONTRACT TERM
u ANNUAL RATE ADJUSTMENT LIMITED TO 5%
u NO FUEL ESCALATION CLAUSE
u GUARANTEED DISPOSAL OF RECYCLABLES
OVER THE
7 YEAR CONTRACT TERM
11.A.6
Packet Pg. 84 Attachment: BCC Presentation_FA 2nd Renewal (8895 : Renewal of Franchise Agreements for Solid
Recommendation
To approve the second and final renewal of the “Franchise
Agreements for Solid Waste, Recyclable Materials, and Yard
Trash Collection Services” with 1) Waste Management Inc. of
Florida, and 2) Waste Connections of Florida, Inc., for an
additional seven-year term, ending at 11:59 PM on September 30,
2027, and authorize the Chairman to sign the renewal agreements.
11.A.6
Packet Pg. 85 Attachment: BCC Presentation_FA 2nd Renewal (8895 : Renewal of Franchise Agreements for Solid
Questions
11.A.6
Packet Pg. 86 Attachment: BCC Presentation_FA 2nd Renewal (8895 : Renewal of Franchise Agreements for Solid