Summary The City of Alachua (City) and Waste Pro of Florida, Inc. (Waste Pro) first entered into a contract for the collection and disposal of residential solid waste, yard waste and recycling on January 1, 2009. The contract was first amended to reduce rates and extend the term on November 17, 2011 and amended a second time on May 5, 2014 to revise the Holiday collection schedule so it would be better coordinated with the schedule of the Alachua County Waste Transfer Station.
City Staff now presents this Third Contract Amendment including Second Contract Extension to accomplish the following:
1. Reduce collection and disposal rates. New rates set forth in the Amendment yield a net saving to the City of a minimum of $723,478.29 over the agreed contract extension from the scheduled contract termination date to the end of the new term set as September 30, 2022. (See attached Summary and Schedules).
a. The rate reduction becomes effective October 1, 2016 and is, in
effect, retroactive from the higher existing rate through December 31,
2016 under the schedule now in effect.
b. The schedules reflect the maximum allowable annual rate increase of 1.5% beginning no sooner that October 1, 2018 and only then if approved at the discretion of the City Commission. Savings greater than $723,478.29 will be experienced if the capped rate increases do not occur. Note the scheduled savings take in account the reduction of franchise fees due to the corresponding amounts paid to Waste Pro.
c. Any adjustment for fuel cost increase has been removed from the contract and can not be a part of a proposed rate increase.
2. Put in place a Uniform rate paid by the City
a. The current contract calls for two collection rates to be paid by the city to Waste Pro.
b. The negotiated reduced uniform rate will facilitate the City billing process.
3. Put in place a uniform Cart System for both regular and recyclable collection.
a. Waste Pro to absorb the full cost of purchase, assembly, delivery and providing an inventory and customer assignment of two containers ( 96 regular and 64 gal recyclables) per customer.
4. Extend the contract term.
a. To maintain the continuity of a critical and fundamental service to the community with a contractor that has met its obligations for more than seven years and has implemented updated systems to provide even better service.
b. Provide an adequate contract term for Waste Pro to capitalize the extensive cost of implementing and maintaining the uniform cart system. |