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Agenda 05/11/2021 Item #16C 2 (Amendment #7 to a Landfill Operating Agreement)05/11/2021 EXECUTIVE SUMMARY Recommendation to extend and execute the proposed Seventh Amendment to the Landfill Operating Agreement renewing the Disposal Capacity Agreement with Okeechobee Landfill, Inc., a Florida Corporation (a subsidiary of Waste Management Inc., of Florida) as is, for a term of one year ending July 1, 2022, with (2) one year renewal options providing the transfer and disposal of biosolids, and to reserve airspace for storm generated debris from a natural disaster. OBJECTIVE: To secure final disposal for storm debris and the transfer and disposal of biosolids for a one-year period, including (2) successive one-year renewal options. CONSIDERATIONS: The Second Amendment to the Landfill Operating Agreement (LOA) was Board approved on June 12th, 2001 and included provisions for additional lined landfill disposal capacity at the Okeechobee Landfill. It also included a Disposal Capacity Agreement (DCA) that provided the County the right to deliver a capped amount of solid waste and storm debris disposal, and an uncapped amount of special waste disposal, including biosolids, for a term of 10 years ending July 1, 2011. The Sixth Amendment to the LOA, was Board approved June 14th, 2011, thereby amending the DCA and extending the County’s right to deliver solid waste to the Okeechobee Landfill until the County has delivered the maximum tonnage (“Capped Amount”) of 930,000 tons and further extend the term for which storm debris and biosolids could be disposed of through the DCA for an additional 10 years ending July 1, 2021. The DCA preserves Collier County Landfill airspace by allowing hurricane generated debris to be diverted and provides an alternate disposal option for odor conducive materials such as biosolids. In 2017, approximately 14,467 tons of construction and demolition material, generated from Hurricane Irma, was disposed of at Okeechobee Landfill at a disposal cost of approximately $390,000. Additionally, each year approximately 30,000 tons of biosolids are disposed of through the DCA at an annual cost of approximately $2,300,000. The cost per ton is adjusted annually with the consumer price index (CPI) in accordance with the contract. Given County growth projections, a termed contract with established rates is necessary to ensure biosolids are properly disposed and diverted from the County owned landfill. Additionally, once the Golden Gate plant expansion is completed, it is estimated this plant will generate an additional 100 tons of biosolids per month. The Okeechobee Landfill is operated by Waste Management of Florida, Inc., the same vendor that operates the Collier County Landfill. Collier County’s landfill holds a valued reputation of compliance and is utilized as a training landfill for solid waste operators and industry professionals. Twenty years ago, this was not the case, and the Collier landfill was known for an incredible odor that plagued southern Collier County. This issue eventually subsided by instituting proper control protocols and contract provisions, including the DCA, that allow for diversion of odor producing materials, such as biosolids. FISCAL IMPACT: Funding is budgeted in the Water-Sewer District Operating Fund (408) for disposal of biosolids. Each fiscal year the transportation and disposal of biosolids are budgeted at approximately $2,400,000 per year. Values do not reflect costs potentially incurred because of a natural disaster and are dependent on CPI. GROWTH MANAGEMENT IMPACT: This amendment complies with the County’s Growth Management Plan and is aligned with the Board approved 2006 Integrated Solid Waste Management Strategy that supports the guiding principle for landfill airspace preservation and diversion to save the County’s landfill airspace for growth. 16.C.2 Packet Pg. 502 05/11/2021 LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality, and requires majority vote for approval. -JAK RECOMMENDATION: To approve the Seventh Amendment to the Landfill Operating Agreement extending the Disposal Capacity Agreement one year through July 1, 2022, including the option for (2) successive one-year renewal periods. Prepared by: Kari Ann Hodgson, P.E., Director, Solid & Hazardous Waste Management Division. ATTACHMENT(S) 1. CCLF DCA Extension - WM Initial Executed Document (PDF) 2. LOA Amendment 6 (PDF) 3. DCA (PDF) 16.C.2 Packet Pg. 503 05/11/2021 COLLIER COUNTY Board of County Commissioners Item Number: 16.C.2 Doc ID: 15573 Item Summary: Recommendation to extend and execute the proposed Seventh Amendment to the Landfill Operating Agreement renewing the Disposal Capacity Agreement with Okeechobee Landfill, Inc., a Florida Corporation (a subsidiary of Waste Management Inc., of Florida) as is, for a term of one year ending July 1, 2022, with (2) one year renewal options providing the transfer and disposal of biosolids, and to reserve airspace for storm generated debris from a natural disaster. Meeting Date: 05/11/2021 Prepared by: Title: – Solid and Hazardous Waste Name: Bart Zautcke 04/09/2021 4:50 PM Submitted by: Title: – Solid and Hazardous Waste Name: Kari Hodgson 04/09/2021 4:50 PM Approved By: Review: Water Steve Messner Additional Reviewer Completed 04/12/2021 10:19 AM Wastewater Steve Messner Additional Reviewer Completed 04/12/2021 10:19 AM Public Utilities Operations Support Joseph Bellone Additional Reviewer Completed 04/12/2021 1:37 PM Solid and Hazardous Waste Kari Hodgson Additional Reviewer Completed 04/15/2021 10:56 AM Public Utilities Operations Support Jennifer Morse Additional Reviewer Completed 04/16/2021 2:53 PM Public Utilities Department Drew Cody Level 1 Division Reviewer Completed 04/16/2021 4:31 PM Public Utilities Department Joseph Bellone Level 2 Division Administrator Review Completed 04/17/2021 9:06 AM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 04/19/2021 1:25 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 04/19/2021 1:46 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 04/20/2021 9:16 AM Budget and Management Office Ed Finn Additional Reviewer Completed 04/21/2021 9:06 AM County Manager's Office Mark Isackson Level 4 County Manager Review Completed 05/04/2021 9:09 AM Board of County Commissioners Geoffrey Willig Meeting Pending 05/11/2021 9:00 AM 16.C.2 Packet Pg. 504 16.C.2.aPacket Pg. 505Attachment: CCLF DCA Extension - WM Initial Executed Document (15573 : LOA Amendment 7 - Disposal Capacity Agreement Extension) 16.C.2.aPacket Pg. 506Attachment: CCLF DCA Extension - WM Initial Executed Document (15573 : LOA Amendment 7 - Disposal Capacity Agreement Extension) 16.C.2.bPacket Pg. 507Attachment: LOA Amendment 6 (15573 : LOA Amendment 7 - Disposal Capacity Agreement Extension) 16.C.2.bPacket Pg. 508Attachment: LOA Amendment 6 (15573 : LOA Amendment 7 - Disposal Capacity Agreement Extension) 16.C.2.bPacket Pg. 509Attachment: LOA Amendment 6 (15573 : LOA Amendment 7 - Disposal Capacity Agreement Extension) 16.C.2.bPacket Pg. 510Attachment: LOA Amendment 6 (15573 : LOA Amendment 7 - Disposal Capacity Agreement Extension) 16.C.2.c Packet Pg. 511 Attachment: DCA (15573 : LOA Amendment 7 - Disposal Capacity Agreement Extension) 16.C.2.c Packet Pg. 512 Attachment: DCA (15573 : LOA Amendment 7 - Disposal Capacity Agreement Extension) 16.C.2.c Packet Pg. 513 Attachment: DCA (15573 : LOA Amendment 7 - Disposal Capacity Agreement Extension) 16.C.2.c Packet Pg. 514 Attachment: DCA (15573 : LOA Amendment 7 - Disposal Capacity Agreement Extension) 16.C.2.c Packet Pg. 515 Attachment: DCA (15573 : LOA Amendment 7 - Disposal Capacity Agreement Extension) 16.C.2.c Packet Pg. 516 Attachment: DCA (15573 : LOA Amendment 7 - Disposal Capacity Agreement Extension) 16.C.2.c Packet Pg. 517 Attachment: DCA (15573 : LOA Amendment 7 - Disposal Capacity Agreement Extension) 16.C.2.c Packet Pg. 518 Attachment: DCA (15573 : LOA Amendment 7 - Disposal Capacity Agreement Extension) 16.C.2.c Packet Pg. 519 Attachment: DCA (15573 : LOA Amendment 7 - Disposal Capacity Agreement Extension) 16.C.2.c Packet Pg. 520 Attachment: DCA (15573 : LOA Amendment 7 - Disposal Capacity Agreement Extension) 16.C.2.c Packet Pg. 521 Attachment: DCA (15573 : LOA Amendment 7 - Disposal Capacity Agreement Extension)