SUBJECT/RECOMMENDATION:
Title
Authorize an increase on purchase orders to WM Recycle America, LLC (WM/RA) and Waste Connections of Florida, Inc., for the processing of municipal single stream recycling commodity at the contractors’ Materials Recovery Facilities in a cumulative not to exceed amount of $400,000, bringing the total amount to $800,000 pursuant to Clearwater Code of Ordinances, Section 2.563(1)(d), non-competitive purchase (Impractical), and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
At the January 30, 2023 council work session, staff presented a Recycling Program Update in response to the findings that collected material from the city’s single stream recycling program were not being disposed of as a recyclable commodity. In January 2023, Purchase Order #901756 was issued to WM/RA for the processing of single stream material at a rate of $150.00 per ton. In February 2023, Purchase Order #901785 was issued to Waste Connections of Florida, Inc. for the processing of single stream material at a rate of $125.00 per ton.
At the February 16, 2023 council meeting, an additional $300,000 was approved for allocation between the two vendors for processing expenses during February, March and April. To date, the City has spent approximately $240,319 for the processing of single stream recycling material during February and March.
Staff is requesting permission to allocate this additional $400,000 between the two vendors to achieve the lowest cost for the rate payers for the single stream material that is collected from both Clearwater residents and the city’s municipal partners. Additionally, staff is seeking authorization to allocate additional funding between two vendors should unforeseen circumstances arise that would prevent one vendor from processing the city’s single stream material.
As of March 6, 2023, the City has transported approximately 1,002.81 tons of single stream material to WM/RA, for a total cost of $150,421.50 during calendar year 2023. As of March 31, 2023, the City has transported approximately 719.18 tons of single stream material to Waste Connections, for a total cost of $84,683.75 during calendar year 2023. Staff transitioned delivery of municipal single stream material to Waste Connections as of March 7, 2023, to achieve greater cost efficiency.
The anticipated term of this additional proposal is for a period of three months, through the end of July 2023. On April 25, 2023, an evaluation committee composed of Staff from the Solid Waste Department, Public Utilities Department, and the Office of Management & Budget reviewed proposals submitted under Invitation to Negotiate #29-23, Single Stream Recycling Processing, and authorized negotiations to commence with two respondents.
Staff anticipates that negotiations with both vendors will last up to 60 days with the intent to produce a long-term recycling processing contract for consideration by the City Council. This agenda item is needed to have sufficient funds for the processing of recycling until a new contract can be brought back to City Council.
APPROPRIATION CODE AND AMOUNT:
A mid-year budget amendment will increase contractual services in recycling cost centers by a total of $400,000 to account for this contract increase. Sufficient revenues are budgeted in the Solid Waste and Recycling Fund to offset this expenditure increase.
USE OF RESERVE FUNDS:
N/A