Title
MOTION TO APPROVE THE DEPARTMENT RECOMMENDATIONS FOR THE FOLLOWING ITEMS LISTED ON THE CONTRACTS DATABASE REPORT:
(A) BCR Environmental Corporation - WWTP Biosolids Processing and Centrifuge System - Renewal
(B) East Coast Mulch Corp. - Supply Mulch - Renewal
Summary Explanation and Background
SUMMARY EXPLANATION AND BACKGROUND:
1. Pursuant to Section 35.29(F) "City Commission notification" of the City's Code of Ordinances, "The City Manager, or his or her designee, shall notify the Commission, in writing, at least three months in advance of the expiration, renewal, automatic renewal or extension date, and shall provide a copy of the contract or agreement and a vendor performance report card for the contract or agreement to the City Commission."
2. On May 17, 2017, Commission approved the motion to place all contracts from the Contract Database Reports on consent agendas as they come up for contractual term renewal so that City Commission affirms directions to administration whether to renew or to go out to bid.
3. The Agreements shown below are listed on the Contracts Database Reports for renewal.
(A) BCR Environmental Corporation - WWTP Biosolids Processing and Centrifuge System - Renewal
1. On August 5, 2015, the City Commission approved a Service Agreement with BCR Environmental to provide design-build services for construction of Phase Two of the improvements to the biosolids management system, which was completed in 2017.
2. BCR provides services for the new system, the fees for which include Base Service Fees, Hauling and Disposition Service Fees, Chemical Supply and Delivery Plan Fees, Supplemental Technical Service Fees, Repair and Maintenance Plan Fees, and Operational Improvement Fees. In accordance with the terms of the Agreement, the Hauling and Disposition Service Fees, the Supplemental Technical Service Fees, and the Repair and Maintenance Plan Fees are subject to annual adjustments based on changes to the Consumer Price Index (CPI).
3. In accordance with the terms of the Service Agreement, the effective date of the agreement was December 1, 2016. The Agreement was for five (5) years, naturally expiring on November 30, 2021, and included provisions for three (3) additional, five (5) year renewals, along with the above-mentioned annual adjustments based on changes to the CPI.
4. On September 17, 2018, the City Commission approved the First Amendment to the Service Agreement that increased the purchase order for chemicals associated with the operation of Phase Two, and increased the Service Fees based on changes to the CPI.
5. On September 13, 2021, the City Commission approved the Second Amendment to the Service Agreement to renew the term of the Original Agreement, as amended, for the first five (5) year renewal period, which will naturally expire on November 30, 2026. The Second Amendment also revised the Service Agreement fees in accordance with changes to the CPI.
6. On December 20, 2022, the parties executed the Third Amendment to the Service Agreement to revise the service rates effective January 1, 2023, based on increases to the CPI and the Energy Information Administration Index (EIA).
7. In 2023, Utilities Department Staff decided to re-evaluate the effectiveness and feasibility of operating the sludge management system to produce Class AA sludge, and of the associated BCR Service Agreement. Based on the findings of a report performed by a professional consultant, Staff concluded that it would be in the best interest of the City to discontinue operation of the system and amend the BCR agreement services to simply produce and dispose of Class B sludge.
8. On December 9, 2024, the parties executed the Fourth Amendment to the Service Agreement to amend the Phase II services and service rates accordingly.
9. Recent changes to Section 403.0855, Florida Statutes pertaining to biosolids management provide new requirements effective July 1, 2028.
10. The Utilities Department continues to evaluate available alternatives for processing its settled and dewatered wastewater biosolids for the interim period between present time and the effective date of the new rule.
11. The Utilities Department recommends that the City Commission approve the Fifth Amendment to renew the term of the Agreement for a one (1) year and seven (7) month period, commencing on December 1, 2026, and expiring on June 30, 2028, as allowed by the Agreement.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Estimated Renewal Cost: $608,000 ($2,000 per month in service fees and an estimated $30,000 per month for hauling and disposition services, inclusive of the fifteen percent (15%) markup on actual costs incurred by BCR, calculated per wet ton of Compliant End Product Material.)
b) Amount budgeted for this item in Account No:
471-535-6022-534990-0000-000-0000- (Other Svc) $24,000
471-535-6022-534450-0000-000-0000- (Other Svc - Sludge Removal) $204,000
c) Source of funding for difference, if not fully budgeted: A Budget adjustment for the difference will be requested from Account 471-535-6022-546150-0000-000-0000- (R&M Land & Bldg), if needed.
d) 2-year projection of the operational cost of the project :
FY 2027 FY2028
Revenues $ 0.00 $ 0.00
Expenditures $320,000.00 $288,000.00
Net Cost $320,000.00 $288,000.00
e) Detail of additional staff requirements: Not Applicable.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable
(B) East Coast Mulch Corp. - Supply Mulch - Renewal
1. On August 20, 2025, the City Commission approved the use of pricing established by the Southeast Florida Government Purchasing Cooperative Group (Co-Op) Contract # E-28-23, for its second renewal term which will expire on September 25th, 2026.
2. The Public Services and the Recreation and Cultural Arts Departments purchase mulch on an as-needed basis for use throughout the City from East Coast Mulch.
3. The original Co-Op agreement had a one (1) year term and allows for four (4) additional one (1) year renewal terms. The 2026-27 term is the third renewal term of the Co-Op agreement.
4. On October 13, 2026, the City of Pompano Beach’s City Commission approved an extension of their agreement with East Coast Mulch Corp for an additional one (1) year term.
5. The Public Services and Recreation and Cultural Arts Departments recommend that the City Commission approve renewed use of the Southeast Florida Governmental Purchasing Cooperative Group (Co-Op) contract # E-28-23 in an annual amount not to exceed $400,000, pursuant to Section 35.18(C)(6) of the City’s Code of Ordinances for the period from September 26, 2026, to September 25, 2027, as allowed by the Agreement.
FINANCIAL IMPACT DETAIL:
a) Renewal Cost: Amount not to exceed $400,000 on an as-needed basis, annually.
b) Amount budgeted for this item in Account No: Funds are currently available in account # 001-539-6004-546161-0000-000-0000- (R&M Landscaping) and object code 546150 (R&M -Land, Bldg. and Improvements) of various departments.
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 1 year projection of the operational cost of the project:
FY 2027
Revenues $ 0.00
Expenditures $400,000.00
Net Cost $400,000.00
e) Detail of additional staff requirements: Not Applicable
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable