Title
MOTION TO INCREASE THE ESTIMATED ANNUAL AMOUNT FOR THE HOUSEHOLD HAZARDOUS WASTE COLLECTION AND DISPOSAL SERVICES AGREEMENT WITH CLEAN HARBORS ENVIRONMENTAL SERVICES, INC. TO $140,000, PURSUANT TO SECTION 35.28(B) OF THE CITY'S CODE OF ORDINANCES.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinance is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.18 of the City's Code of Ordinances is titled "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS."
- Section 35.18(C) states that "Only the following situations are exempt from the competitive bid and competitive proposal requirements of this section:"
- Section 35.18(C)(6) of the City’s Code of Ordinances, “Cooperative purchasing plans are exempt from this section.”
- Section 35.21 of the City's Code of Ordinances is titled "AWARD OF CONTRACT."
- Section 35.21(A) of the City's Code of Ordinances is titled "City Commission approval."
- Section 35.21(A)(1) states, "An initial purchase of, or contract for, commodities or services, in excess of $25,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed."
- Section 35.15 defines CHANGE ORDER. "Changes, due to unanticipated conditions or developments, made to an executory contract, which do not substantially alter the character of the work contracted for, and which do not vary so substantially from the original specifications as to constitute a new undertaking. The changes must reasonably and conscientiously be viewed as being in fulfillment of the original scope of the contract rather than as departing therefrom. Further, the changes, when viewed against the background of the work described in the contract and the language used in the specifications, must clearly be directed either to the achievement of a more satisfactory result or the elimination of work not necessary to the satisfactory completion of the contract."
- Section 35.28 of the City's Code of Ordinances is titled "CHANGE ORDERS."
- Section 35.28(B) states that "Notwithstanding the provisions of (A) above, the City Manager is not authorized to approve a change order without authorization of the City Commission where the initial purchase required the City Commission's approval and where the sum of all change orders issued under the contract exceeds 5% of the original contract amount or $25,000."
SUMMARY EXPLANATION AND BACKGROUND:
1. On May 6, 2018, the City of Coconut Creek, as lead agency for the Southeast Florida Governmental Cooperative Purchasing Group (Co-Op), issued RFP No. 06-06-18-11 to contract a qualified and experienced firm to provide household hazardous waste collection and disposal services.
2. On September 13, 2018, the City of Coconut Creek awarded the contract to Clean Harbors Environmental Services, Inc. as a result of the recommendations of their Selection Committee.
3. The initial term of the Co-Op agreement was from October 24, 2018, through October 23, 2020, with the option to renew for two (2) two-year renewal periods. As a result, the agreement has been renewed and is currently in its final renewal period which is set to expire on October 23, 2024.
4. On February 2, 2022, the City Commission approved administration's recommendation to utilize the pricing established from the Southeast Florida Governmental Cooperative Purchasing Group (Co-Op) agreement via the City of Coconut Creek, as lead agency, RFP No. 06-06-18-11 with Clean Harbors Environmental Services, Inc. for household hazardous waste collection and disposal services at an estimated annual cost of $140,000, pursuant to section 35.18(C)(6) of the City’s Code of Ordinances and entered into an agreement with Clean Harbors Environmental Services, Inc. for an eight (8) month period through October 23, 2022.
5. The Public Services Department originally estimated the annual cost to be $140,000 based on discussions with Clean Harbors Environmental Services, Inc., estimating approximately $35,000 for each quarterly Drop-Off event, utilizing the pricing established by the City of Coconut Creek contract RFP No. 06-06-18-11. The actual cost for the events are based on the actual usage.
6. On September 22, 2022, the City of Coconut Creek renewed their agreement with Clean Harbors Environmental Services, Inc. for a one-year period and increased their prices by 12%. As a result, on October 19, 2022, the City Commission approved administration’s request to renew the agreement for an additional one-year period through October 23, 2023, at an estimated annual cost of $140,000.
7. On October 9, 2023, the City of Coconut Creek renewed their agreement with Clean Harbors Environmental Services, Inc. for the final one-year period extending the term up to October 23rd, 2024, and increased the rates by 5% for said renewal period. As a result, on November 1, 2023, the City Commission approved administration’s request to renew the agreement for an additional one-year period through October 23, 2024, however despite the increase in unit costs, the agenda item reduced the estimated annual cost of $140,000 to an annual amount not to exceed $105,000 to coincide with that fiscal year’s budgeted amount.
8. The Agreement does not provide for any further renewal terms and the Southeast Florida Governmental Cooperative Purchasing Group is currently working on establishing a new contract, however they may implement a short term extension in the mean time while establishing the new agreement. The City’s Administration will review and present a recommendation to the City Commission at a later date to establish a new contract.
9. The estimated annual amount is based on estimated usage billed at the rates identified in Exhibit "A-2" of the contract, however, the amount invoiced by the end of the Fiscal Year is based on actual usage.
10. Due to an increase in resident participation and the amount of hazardous household waste being disposed, the annual expenditure exceeded the established not to exceed amount of $105,000 by more than 5%. As a result, the change order would exceed the City manager’s approval threshold and thereby requires commission approval.
11. The Public Services Department is requesting the City Commission to increase the estimated annual amount for the Household Hazardous Waste Collection and Disposal Services Agreement with Clean Harbors Environmental Services, Inc., to $140,000, pursuant to Section 35.28(B) of the City's Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: Estimated annual amount of $140,000, which may fluctuate up or down based on actual usage. The Department expects a total of $127,497.76 in expenses for Fiscal Year 2023-2024.
b) Amount budgeted for this item is in Account No: Funds will be available in account # 472-534-6050-543002-0000-000-0000 (Household Hazardous Waste) after PO 20240442 is reduced by $25,025 & BA transfer is done from 472-534-6050-543001-0000-000-0000.
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 5-year projection of the operational cost of the project: Not Applicable.
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.