Bid Workshop Overview: Solid Waste Authority 2013 Collection Considerations

1. Solid Waste Authority 2013 Collection Bid Board Workshop – September 5, 2012

2. Bid Considerations • The three main factors to consider when developing this bid are: • Level and Quality of Service • Low Rates • SBE Participation

3. Bid Objective • Level and Quality of Service • Maintain Service Level • Enhanced Fines and Penalties • Highly Qualified Haulers • Minimize Service Disruption

4. Bid Objective • Low Rates • Fewer Districts • Lower Overhead & Less Risk • Greater Competition (Fewer Service Areas than Bidders and possibly another bidder) • Less Variability

5. Previous Bid Results

6. Previous Bid Results Rate Increases by Size of Service Area

7. Residential Credit Application • The current franchise agreement requires the SWA to credit the hauler for residential service based on the waste generation study. • While this study has proven to be highly accurate over the years it does not allow for significant changes in waste generation due to unusual economic conditions. • This requirement can result in significant uncertainty for the bidders who will likely protect their interests by increasing their bids. • We intend to discuss this with the potential bidders and propose a modified credit process for the bid.

8. SBE Participation • Impediments to higher participation • Wages and benefits make up a significant percentage • Minority direct hiring does not count toward the goal • Subcontracting is the only way to achieve the goal, but has unintended negative consequences. • Other significant costs don’t lend themselves to SBE participation (fuel, capital equipment, insurance). • The SWA measure is imperfect. • We recommend deducting wages and benefits and other costs where little potential exists prior to calculating the rate for a more realistic picture.

9. Qualification Philosophy • Experience collecting solid waste and recyclables in a comparable manner and for a comparable population size. • Experience must be that of the company and not the individuals – no startups or teams without experience working together. • Individuals may leave. • Significant scale-ups are risky. • We will consider parent and subsidiary company experience.

10. Prequalification Requirements For a Minimum Bid

11. Prequalification Requirements For a Maximum Bid

12. Florida County Comparisons

13. Previous Board Consensus • Reduce number of Service Areas from 11 to 4. • One hauler can receive two of the three larger areas. • Set commercial collection rate at $2.95 per yard. • Set commercial recycling collection rate at $1.70 per yard. • Set commercial recycling collection rate for 95 gallon container at $10.00 for 1x per week. • Hauler allowed to keep recovered materials. We propose to change this and require that material be delivered to the Authority.

14. Previous Board Consensus • Small commercial generators can use up to three garbage cans at a flat rate of $28 per month. • Commercial compactor (VIP) collection rates at $3.68 per yard. • Roll-off compactor pull rate of $185 and permanent open-top at $150. • Eliminate exclusive right to collect commercial veg. • Special service rate for excess residential vegetation of $9 per yard, which is a reduction from the current rate of $65 + $18 or $22 per yd.

15. Previous Board Consensus • Bid the Glades area separately to give smaller, less experienced companies the opportunity to compete. We are currently also considering piggy-backing the South Bay contract. • Remove fuel component from RRI. We are proposing a monthly fuel adjustment based on an index. • Maintain records for term of contract plus one year after end of contract. • Hauler will collect public drop-off containers in their service area at the commercial recovered materials collection rate.

16. Previous Board Consensus • Increased fines: • Taking waste out of the county: • 1st Offense - $500,000 We are proposing to add restitution. • 2nd Offense – loss of franchise • Daily fines increased to $200 from current $100. • No backup equipment fine increased to $25,000 from current $2,500. • Incomplete route fine increased to $2,000 from current $1,000.

17. Direction Needed • Modified qualification requirements for minimum and maximum award • Modified SBE Participation • 15% of Net revenue after deducting Payroll, depreciation and other expenditures where no opportunity for SBE participation is available • Authorize staff to discuss piggybacking with Southern Waste Services for the Glades Area contract. • Require all recovered materials collected under the franchise to be delivered to SWA • Add restitution for lost fees to the fine for first offense of taking waste out of county • Reduce the commercial recycling collection rate for 95 gallon containers from $15 to $10. • Authorize staff to look into a credit modification.