Item T06 BOARD OF COUNTY COMIVIISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: October 16,2013 Division: Cognty Administrator
Bulk Item: No X Department: County Administrator
Staff Contact/Phone#: Rhonda Haag,453-8774
AGENDA ITEM WORDING: Discussion and direction on the solid waste program and related
contracts.
ITEM BACKGROUND: Staff has researched and finalized negotiations for solid waste program and
contracts, and will present these options to the BOCC for discussion.
PREVIOUS RELEVANT BOCC ACTION:
CONTRACT/AGREEMENT CHANGES: Not applicable
STAFF RECOMMENDATIONS:
TOTAL COST: INDIRECT COST: BUDGETED: Yes No_
DIFFERENTIAL OF LOCAL PREFERENCE: N/A
COST TO COUNTY: SOURCE OF FUNDS:
REVENUE PRODUCING: Yes _ No X AMOUNT PER MONTH Year
APPROVED BY: County Atty OMB/Purchasing Risk Management
DOCUMENTATION: Included Not Required
ISPOSITION: AGENDA ITEM# CAD#
Vitia Fernandez
From: Shillinger-Bob <Shillin er-Bob@MonroeCounty-FIL Gov>
Sent: Wednesday, October 16, 2013 4:56 PM
To: Amy eavilin;Vitia Fernandez
Subject: : Solid WasteInformation
Attachments: Solid Waste Vendor CTs and Rate Assessments Increases Needed - Final (2)olsz;
Consultants recommendations for cost savin s,pdf
Bob Shillinger
County Attorney
Monroe County Attorney°s Office
'I I°I°I 12th Street, Suite 406
Key Nest, P'IL 33040
(305)292-3470
(305)292-3516(facsmilie)
u,.
LAW
Please note that Florida has a very broad public records law, Most emails to and from this address are public records, If
you do not wish for your email address to become a public record, please choose another form of communication.
From: Haag-Rhonda
Sent: Tuesday, October 1 ,
To: CC ; C CC I I CC ICounty Administrator
Cc: Wilson-Kevin; ado ® evin; Washington-Rosa; ilia er- ; Li -C risie
Subject: Solid Waste Information
Commissioners, for the solid waste presentationtomorrow, ill be reviewing current offers from each of
the solid vendors r i in various tin for your consideration. We are at a crossroads in the
negotiations pr s, and policyguidance is requested r to help select the direction we may want to
take for possibly the next 10 years in our solid waste program.
As a reminder, r 3 goalsi i n roc s r : 1 increase in customer rates; } maintain levels
f service; and 3) increase recycling .
To sit in your decision making process, attached pleasefind a spreadsheet that oulin s the costs
requested increases r 10 years, and the effect on the current rate assessment. To summarize the
contents, the r es ' total $16.5 Million over 10 years, and the rate assessment per household
wouldincrease from current r $404 annually to $489. The vendors r ive CPI's in 3 of
the 10 years, andr to cap the maximumCPI at 2.5%. However, as can be seen, even small
1
6
increases in annual CPI's have a large effect over time when they are compounded annually. I will be
presenting various options that can help offset the $16.5 million cost of the requested CPI's, including the
option not to accept them. Other options for moving forward will also be presented. This is where your
guidance is requested.
Also attached is a letter from our solid waste consultant, Mr. Redman, regarding his recommendations for cost
savings.
Thank you and I look forward to our discussion tomorrow.
Rhonda Haag
Sustainability Program Manager
Monroe County
Government and Cultural Center
102050 Overseas Highway,Ste.246
Key Largo,FL 33037
Bus: (305)453-8774
Cell: (305) 395-9928
Haag-Rhonda ramonroecounty-_fl.gov
www.monroecount -gS.g ou
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August 23,2013
Memo to: Rhonda
Monroeo ty
From: Bill Redman
Redmano ti Group,Inc,
Subject: Monroe County Solid Waste component cost
As per our conversation this date, below please find the various components as it relates
to Monroe County's County' cost compared to other municipalities within the southern portionof
e state of Florida.
Collection Cost:
Basedon the current cost of collection o (and f must emphasize this is collection only
which does not include the cost of disposal of the waste,processing of the recycla les,
haul out of the waste and recyclables and operation of the transfer stations which accept
e waste for preparation to be hauledout for final disposal)we have concluded cost
to the County from the waste collection companies is 9.18%higher than fourteen(1 )
lie municipalities surveyed.
f weinclude the disposal cost within those same fourteen( )municipalities surveyed
then the cost comparison is; Monroe County is 65.57%higher than lie municipalities
surveyed.
o ty's Disposal an Haul out rate:
In our review the Monroe Countys cost a the waste out for disposal had not been
renegotiated during the entire term of the agreement. o e disposal rate had
continued to decrease over the last several years at the Broward Countywaste toenergy
plant which is s sister company owned aste Management. The cost has decreased
from er ton to the current rate of$42.00 per ton and the transportation rate has
decreased as well t 36.00 per ton. Monroe County has beenstill is paying$84.52
per ton for this service and should e paying no more than$78.00 per ton which woulde
an annual cost savings of$1,000,000.00 based on historical tonnage reports.
Waste Management has stated cost of operating the transfer stations is the reason for
no savings to the County. That does not make a very good argument since they have
been operating those same transfer stations in the past with higher transportation and
disposalcost® The cost has been decreasing so profits are increasing i o t the County
Atlantic Avenue Smyrna ,FL 32169- n93 9 9
getting any advantage of those profits whatsoever to pass along the savings to the tax
payers.
Regcling haul out and processing:
The county pays Waste Management a transportation and processing fee of$73.92 per
ton for all of the recyclables collected in the County. These recyclables are hauled at a
rate of$36.00 per ton for transportation to Rueters in Broward County which is a
company owned by Waste Management. The county has been paying this fee for many
years and just recently Waste Management had offered a rebate fee of$30.00 per ton,
which based on my conversation with you,they have now rescinded that offer and offer
nothing. The recyclable commodities market is continuously up and down in pricing so
making it a volatile market. Even with the volatility it should not be the County's
problem. A real rebate should be in place since the collection rate is higher than that of
other like municipalities. Waste Management and other collection companies are being
paid a rate that would equal the collection of all waste, yard waste and recyclables,
transportation of those components as well as disposal.
Conclusion:
It has been our opinion and continues to be our opinion, the County has a significant
ability to negotiate a momentous arrangement with Waste Management and the other
waste collection companies servicing the various are of the County and the savings to
the County and its residents and businesses would be in the multimillion dollar range
annually.
If the County does not achieve this goal now for a long to contract(s) the opportunity
will pass by. If for any reason the County does not or cannot achieve this then they have
the option to go the market place either through bidding or request for proposals and ask
the marketplace for cost proposals from equally qualified competitors. The county has
nothing to lose and everything to gain.
7017 S.Atlantic Avenue•New Smyrna Beach,FL 32169•Office-386-A27-9339•Fax 386-427-4549
wwwjcgussonline.com
getting any advantage of those profits whatsoever to pass along the savings to the tax
payers.
Regcling haul out and processing:
The county pays Waste Management a transportation and processing fee of$73.92 per
ton for all of the recyclables collected in the County. These recyclables are hauled at a
rate of$36.00 per ton for transportation to Rueters in Broward County which is a
company owned by Waste Management. The county has been paying this fee for many
years and just recently Waste Management had offered a rebate fee of$30.00 per ton,
which based on my conversation with you,they have now rescinded that offer and offer
nothing. The recyclable commodities market is continuously up and down in pricing so
making it a volatile market. Even with the volatility it should not be the County's
problem. A real rebate should be in place since the collection rate is higher than that of
other like municipalities. Waste Management and other collection companies are being
paid a rate that would equal the collection of all waste, yard waste and recyclables,
transportation of those components as well as disposal.
Conclusion:
It has been our opinion and continues to be our opinion, the County has a significant
ability to negotiate a momentous arrangement with Waste Management and the other
waste collection companies servicing the various are of the County and the savings to
the County and its residents and businesses would be in the multimillion dollar range
annually.
If the County does not achieve this goal now for a long to contract(s) the opportunity
will pass by. If for any reason the County does not or cannot achieve this then they have
the option to go the market place either through bidding or request for proposals and ask
the marketplace for cost proposals from equally qualified competitors. The county has
nothing to lose and everything to gain.
7017 S.Atlantic Avenue•New Smyrna Beach,FL 32169•Office-386-A27-9339•Fax 386-427-4549
wwwjcgussonline.com