HomeMy Public PortalAbout1999-74 Authorizing a five (5) year contract with BFI Waste Systems of North America, IncRESOLUTION NO. 99-74
A RESOLUTION OF THE VILLAGE OF KEY BISCAYNE,
FLORIDA; AUTHORIZING THE VILLAGE MANAGER TO
NEGOTIATE A FIVE (5) YEAR CONTRACT WITH BFI
WASTE SYSTEMS OF NORTH AMERICA, INC.;
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, Village Council adopted Resolution 99-28 on April 20, 1999, directing the Village
Manager to advertise for solid waste proposals; and
WHEREAS, two (2) proposals were received and opened on July 22, 1999; and
WHEREAS, BFI Waste Systems of North America, Inc. offered the significantly lower monthly
unit rate of $17.12, as compared to Waste Management, Inc., to maintain the current Solid Waste
Collection services; and
WHEREAS, due to this monthly increase for Solid Waste Collection, the annual homeowner fee
will be raised from the 1999 rate of $199 to $220, estimated to remain frozen at the same rate for the next
five (5) years based on the attached financial protection.
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF KEY
BISCAYNE, FLORIDA AS FOLLOWS:
Section 1. The Village Manager is hereby authorized to negotiate a five (5) year contract with
BFI Waste Systems of North America, Inc. in accordance with the terms and conditions of the
memorandum dated August 17, 1999 prepared by the Village Manager and attached hereto.
Section 2. This resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this 9th day of Septemi99
CONCHITA H. ALVAREZ, CMC, VILL
APPR
F) RM AND LEGAL SUFFICIENCY
EI ` , ' ILLAGE ATTORNEY
Village Council
Jot I. Rasco, Mayor
Gregory C. Han. Vice Mayor
Scott Bass
Martha Fdez-Leon Broucek
Alan H. Fein
Mortimer Fried
Robert Oldakowski
VILLAGE OF KEY BISCAYNE
Office of the Village Manager
August 17, 1999
Village Manager
C. Samuel Kissinger MEMORANDUM
TO: The Honorable Mayor and Members of the Village Council
FROM: C. Samuel Kissinger
Village Manager
RE: Proposed Solid Waste Agreement (2000-20004)
BFI Waste Systems of North America (BFI)
I. INTRODUCTION
The current fee for Solid Waste Collection, Transportation, and Disposal is $199.00
annually. It has remained at the same rate for the past five (5) years under the terms of
the Village agreement for such services with BFI. This Agreement ends December 31,
1999. Prior to the BFI Agreement, Miami -Dade County provided these services at an
annual charge of $399.00. The County has subsequently reduced its charges in 1996 to
$350.00. Since 1995, the Village has saved the homeowner over $800.
II. REQUEST FOR PROPOSALS
Resolution 99-28, adopted April 20, 1999 directed the Village Manager to issue a
Request For Proposals (RFP) for a new five (5) year Agreement. A Public Notice was
placed in the Miami Review five (5) times, beginning on June 30, 1999. Pursuant to the
RFP, a mandatory "Pre -Proposal Conference" was held on July 8, 1999 with two (2)
prospective contractors attending. Both prospective contractors submitted Proposals on
the due date, July 22, 1999 and these were opened on that day.
III. PROPOSALS
Both prospective contractors, BFI Waste Systems of North America (BFI) and Waste
continued on page two
85 West McIntyre Street • Key Biscayne, Florida 33149 • (305) 365-5511 • Fax (305) 365-8936
MISSION STATEMENT: -To PKOVIt)! A SAI 1.. QUA( ITV COMMUNI !Y 1 NVIKONMI N E FOR. ALL ISLANDERS l IIROUCI1 KI•SPONSIIII E GOVERNMENT"
page two
Management Systems (WMS), are comparable in terms of qualification and experienced
for the required services. With respect to price, however, the proposals differ notably, as
shown below, in response to the "Bulk Waste Collection" options specified in the RFP:
Contractor
BFI
Option 1
Once/ Month
Option 2
Twice/ Month
Option 3
Once/ Week
(Mos/Unit) (Mos/Unit) (Mos/Unit)
$18.69
$17.12*
$20.19
$18.62*
$22.91
$21.34*
WMS $33.75 $33.75 $33.75
BFI's rate under the current Agreement (before FY 2000 COLA) is: $14.14
* BFI has agreed to reduce its fee by $1.57, from $18.69 to $17.36, in consideration for
the elimination of the $2,000 per Month Rental fee required in the RFP for the land used
for the bulk waste roll -off container on West McIntyre Street.
IV. OPTIONS
Based on the attached letter from BFI, dated August 11, 1999, the following were
evaluated. I do not recommend any of these options:
A. Bulk Waste Collected Four (4) Times per Year: $1.66/Mos. Reduction
B. Bulk Waste Collected Twice (2) per Year: $1.81/Mos. Reduction
C. A longer -term contract would not provide additional savings
I have spoken to a Contractor who did not submit a proposal. His evaluation to me
indicated that he could not consider offering the Village a lower price than the BFI
proposal.
V. RECOMMENDATION
I recommend that a five (5) year contract (2000-2004) be awarded to BFI. I further
recommend that the annual fee be increased from $199.00 to $220.00 per year
($18.33/monthly). This amount is estimated to be sufficient to cover:
• The Village's BFI Agreement obligations, i.e. $205.44/yr./unit; and
continued on page three
page three
• A contingency of about 7.5% or approximately $15.42/yr./unit for administrative
expenses, uncollectable accounts, and special clean up expenses created by
emergencies.
VI. REVENUE AND EXPENDITURE PROJECTION
The financial position of the Solid Waste Fund as impacted by the BFI proposal is
described by the financial projections below.
These projections include the following assumptions:
A. Income: 1250 customers .@ $220.00 fixed for five (5) years or $275,000.00;
B. Cost of Living Adjustments (COLA) based on the same rate of escalation as for
years 1996-1999;
C. COLA applied to contractual obligations, per the recommended BFI Proposal and
the contingency as well;
D. Deficit covered by appropriation from $90,000 Solid Waste Fund balance as of
September 30, 1998.
The attached cash flow analysis indicates that the current balance in the Solid Waste
Fund should be sufficient to allow the current level of Solid Waste Services to be
maintained on a fixed fee basis for homeowners for the entire proposed five (5) years,
during which the Agreement with BFI would be in effect.
The validity of the analysis, of course, relies on the assumption that inflationary influence
on COLA will remain as benign in the next five (5) years as in recent years.
At the end of the proposed agreement period, the Solid Waste fee for 2005 may be a
minimum of about $240.00 including all Cost,Of-Living Adjustments, contingencies, and
administrative charges.
Please see Exhibit One on the next page.
End
EXHIBIT ONE
REFUSE COLLECTION AND RECYCLING AND DISPOSAL FUND
FINANCIAL PROJECTIONS
(2000-2004)
YEAR
2000
2001
2002
2003
2004
TOTAL
Starting
Fund Bal.
$90,000
$83,000
$72,000
$56,000
$36,000
$90,000
Revenue
275,000
275,000
275,000
275,000
275,000
1,375,000
Contract
Expenses
-257,000
-259,792
-263,789
-266,787
-270,784
-1,318,152
Admin.
Expenses
-25,000
-26,000
-27,000
-28,000
-29,000
-135,000
Total
Expenses
-282,000
-285,792
-290,789
-294,787
-299,784
-1,453,152
COLA Fee
N/A*
-208
-211
-213
-216
N/A
EOY Net
Inc./loss
-7,000
-11,000
-16,000
-20,000
-25,000
-79,000
EOY Bal.
$83,000
$72,000
$56,000
$36,000
$11,000
$11,000
*EOY 1999' to EOY 2000' escalation is factored in proposal price
08/17/99 13:43 TEL 3056332973
BFI MIAMI
1J02
•
August 11, 1999 •
Mr. Samuel Kissinger
Village Manager
Village of Key Biscayne
85 West McIntyre Street
Key Biscayne, FL 33149
Dear Mr. Kissinger:
Regarding our meeting of July 28, 1999, please be advised that if the Village
were to go to quarterly (4 times per year) bulk waste collection, the cost
would be $1.66 per household per month. If the Village were to go to semi
annually (2 times per year) bulk waste collection, the cost would be $1.81
per household per month. The total amount of material will not change, the
cost to collect changes slightly. The more material that must be collected at
one time, increases the number of trips to disposal sites and the time to load
the trucks.
Regarding the possible discontinuation of the $2000,00 monthly rent for the
mini trash station: If we no longer had to pay this rent, the $2000 divided
by 1,316 (the most recent number of single family homes) would result in at
$1.52 per household per month savings.
Regarding the possible savings for a longer contract, after much
consideration we do not feel comfortable trying to predict the state of the
industry or vehicles or disposal costs past the term of this contract, therefore
we are unable to provide any savings due to an initially longer contract.
Thank you for the opportunity to discuss alternative collection methods.
Should you have any questions, please do not hesitate to call me at 305-
638-3800 extension 201.
Sincerely,
°;43rN* ‘ d l'
James Sage
General Manager
3K40 N.W. 37th Ct. - Miami, Florida 33142
Phone 3Q5 -63K -3R00 • Fax 305-634-4272
www.bfi.com
FIRST AMENDMENT TO AGREEMENT FOR
RESIDENTIAL SOLID WASTE COLLECTION AND RECYCLING SERVICES
BETWEEN THE VILLAGE OF KEY BISCAYNE, FLORIDA, AND
BFI WASTE SYSTEMS OF NORTH AMERICAN, INC.
This First Amendment to Agreement for Residential Solid Waste Collection and
Recycling Services is made and entered into as of this 27th day of October, 1999, by and
between BFI Waste Systems of North America, Inc., a Delaware corporation ("BFI"), and the
Village of Key Biscayne, Florida, a Florida municipal corporation (the "Village").
WHEREAS, on December 30, 1994, the Village and BFI entered into an Agreement
whereby BFI has provided residential solid waste collection and recycling services to the
Village (the "Agreement"); and
WHEREAS, the Village and BFI desire to amend the Agreement so that BFI can
continue more effectively to provide solid waste collection and disposal services to the Village.
NOW THEREFORE, in consideration of the mutual covenants set forth in this First
Amendment, the parties agree as follows:
1. Amendment to Section 6.1.2. The parties hereby amend Section 6.1.2 as
follows:
6.1.2 Emergency Collection Vehicles. Listed below are the Collection
Vehicles which may be necessary for storm or disaster cleanup in the Village and the charges
per hour for each Collection Vehicle. The Collection Vehicles shall be supplied on as "as
needed" basis. The following charges do not include disposal costs which shall be paid by the
Village upon presentation of documentation to the Village Manager by BFI.
6.1.2.1 Boom Truck - International chassis with an Iowa Mold Tooling
(IMT) 64235 crane and a one yard clam bucket or equivalent. With driver/operator $125 per
hour
6.1.2.2. Rear Loader TruckL- Mack chassis truck with a 31_yard Leach
2RII Packmaster body or equivalent. With driver plus 2 helpers $250 per hour
6.1.2.3. Roll Off Truck - Mack chassis with a 30 yard open top Roll
Off container or equivalentWith driver/operator $125 per hour.
6.1.2.4. Clark Loader, CAT Loader or equivalent - vehicle with front
bucket and grapple to scoop up material. With driver/operator $ 95 per hour.
6.1.2.5. Bobcat, Skid Loader - vehicle with front grapple arm
capable of loading a dump truck or roll off truck. With driver/operator $ 85 per hour.
6.1.2.6 Tandem Dump Truck - open top truck capable of carrying
debris. With driver/operator $ 70 per hour.
6.1.2.7 Flagmen - individuals to control traffic flow around
collection area. $28 per hour per person.
6.1.2.8 Inspectors - Individuals to observe crew operations for
Village and verify loads and activities. $28 per hour per person.
6.1.2.9 Supervisor - Individual to manage crew(s), provide
paperwork, and verify loads and activities for contractor. $50 per hour per person.
6.1.2.10 The Village Manager is authorized to negotiate with BFI
for any additional vehicles and services not listed above.
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2. No further modifications. All other terms and conditions of the existing
Agreement not in conflict or superseded by this First Amendment shall remain in full and
effect as is set forth herein.
IN WITNESS WHEREOF, the parties hereto have accepted, made and executed this
First Amendment upon the terms and conditions above stated on the date above written.
BFI:
BFI WASTE SYSTEMS
OF NORTH AMERICA, INC.
3840 Northwest 37th Court
Miami, Florida 33142
B, . 'J' Sag
itle: General M ager
Approved as to legal
form and sufficiency:
Village Attorney
VILLAGE:
VILLAGE OF KEY BISCAYNE,
FLORIDA
85 West McIntyre Street
Key Biscayne, Florida 33149
a, lo
By: C. Samuel Kissinger
Title: Village Manager
ATTEST:
H. Alvarez, CMC
Clerk
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