Interoffice Memorandum
DATE: October 15, 2026
TO: Mayor Jerry L. Demings and County Commissioners
FROM: Carrie Mathes, FNIGP, CFCM, NIGP-CPP, CPPO, C.P.M., Manager II, Procurement Division
CONTACT: David Gregory, Manager, Solid Waste Division
PHONE: 407-254-9622
SUBJECT: Approval of Amendment No. 17, Contract Y3-1021, Transfer, Processing, and Marketing of Recyclables
ACTION REQUESTED:
title
Approval of Amendment No. 17, Contract Y3-1021, Transfer, Processing, and Marketing of Recyclables, with Waste Management, Inc. of Florida in the not-to-exceed amount of $7,000,000, annually, for a three-year extension.
Further request Board authorization for the Procurement Division to extend the contract for two additional one-year periods in the not-to-exceed amount of $7,000,000, annually. ([Utilities Department Solid Waste Division] Procurement Division)
body
PROCUREMENT:
This amendment extends the period of services from January 1, 2027 to December 31, 2029, modifies the Processing Fee paid to Waste Management, Inc. of Florida (WM) from $183.69 to $180 per ton, less an offset for the average value of recyclable materials, adds provisions regarding the close-out of the existing landfill materials recycling facility (old Materials Recycling Facility (MRF)) upon termination of the contract, defines the Consumer Price Index for future price adjustments, and increases the not-to-exceed amount from $6,000,000 to $7,000,000, annually. This amendment provides for two additional one-year extensions, through December 31, 2031, if all options are exercised.
FUNDING:
Funding is available in account 1006-038-1210-3197.
APPROVALS:
The Solid Waste Division concurs with this recommendation.
REMARKS:
The current expiration date for Y3-1021 is December 31, 2026, with no remaining options to renew or extend. Under this contract, WM provides recycling services processing approximately 60,000 tons of recyclables materials collected annually from approximately 240,000 County Solid Waste MSBU customers.
The County has issued Request for Proposals Y26-1014-KK, Recovered Materials Processing Services, to solicit proposals from companies to provide recycling services and replace services currently provided under Contract Y3-1021. While the resulting contract is expected to be executed within the 2026/27 fiscal year, services are anticipated to commence January 1, 2030, due to the need to develop and construct a new MRF. This extension and further options to extend will ensure services continue uninterrupted through the solicitation process and in case of unanticipated delays in the construction. Early termination provisions are included in this contract amendment, to be exercised during the initial term or any extension if the new MRF is completed ahead of schedule.
The Solid Waste Division and its consultants investigated alternative processing options for the County’s 60,000 annual tons of recyclables and were unable to identify any reasonable alternative to WM capable of managing the quantity of recyclables generated by County customers.
The processing fee that the County pays WM for recycling processing includes operations and maintenance of the old MRF as a transfer station (including staffing, equipment, and building maintenance), transportation of County recyclables to WM MRFs in Cocoa and Tampa, and processing of recyclables at the MRFs.
The Solid Waste Division negotiated a reduction in the processing fee to $180 per ton less an offset for the average value of recyclable materials for two years. Compared to the anticipated Consumer Price Index (CPI) price increase under the current contract, annual savings of approximately $550,000 are anticipated with this contract amendment.
Negotiated price savings estimate
Rate 2026 $183.69 per ton
Capped CPI Increase of 3 percent 1.03
Projected Rate 2027 with no change $189.20 per ton
Reduced rate negotiated $180.00 per ton
Savings per year $9.20 per ton
Tons/year 60,000
First year’s savings estimate $552,000.00
Three-year savings estimate* $1,656,000.00
*Calculation based on first year savings times three years
On April 22, 2003, the Board authorized award of Y3-1021 for a seven-year period of service, an estimated annual revenue of $3,000,000, a lump sum of $3,500,000 for modifications to existing facilities, and authorization to extend for an additional seven-year service period.
The previous contract amendments are as follows:
Amendment No. 1: The contract included a provision for modifying the existing MRF from a dual stream to a single stream facility. This amendment shifted the responsibility for this modification from the County to the operator and increased the cost of the modification project from $3.5 million to $3.881 million and provided the County a host fee of $7.50 a ton on incoming tonnage from other entities collected by WM and processed at the MRF. Approved by the Board on June 29, 2004.
Amendment No. 2: Exercised the option to extend the contract for a period of seven years effective July 1, 2010; replaced Article III: Unloading Materials Sections 3.6 and 3.9; amended Article IV: Recordkeeping, Bookkeeping, Reporting, Auditing, and Inspection of Records Sections 4.1 and 4.2 and; amended Article IX: Designated Representative. Included in the amendment was a revised Schedule 3, Host Fee Obligation and Revised Schedule 8, Guaranteed Solid Waste Tonnage Amount. Approved by the Board on November 17, 2009.
Amendment No. 3: Extended the existing contract for a six-month period from July 1, 2017 to December 31, 2017, with a not-to-exceed amount of $250,000 and allowed the contractor to charge a $42 per ton processing fee and to continue paying the County a $7.50 host fee. Further authorized one additional six-month extension. Approved by the Board on May 30, 2017.
Amendment No. 4: Extended the existing contract for a six-month period from January 1, 2018 to June 30, 2018. Processed under Procurement Division’s authority.
Amendment No. 5: Extended the contract for one-year period of July 1, 2018 through June 30, 2019, not to exceed $2,000,000 per year, with further authorization for an additional one-year extension. Increased processing fee to $47.50 per ton and WM to continue paying the County a $7.50 host fee. Approved by the Board on April 24, 2018.
Amendment No. 6: Increased estimated annual contract amount by $550,000, per year for the January 1, 2018 to June 30, 2018 extension period. Processed under Procurement Division’s authority.
Amendment No. 7: Extended the contract for one-year period of July 1, 2019 through June 30, 2020, not to exceed $2,000,000 per year. Increased processing fee to 49.26 per ton, per CPI described in contract. Processed under Procurement Division’s authority.
Amendment No. 8: Extended the contract for a six-month period from July 1, 2020 through December 31, 2020, not to exceed $1,000,000, and increased processing fee to $50.48 per ton. Approved by the Board on June 2, 2020.
Amendment No. 9: Extended the contract for one two-year period from January 1, 2021 through December 31, 2022, with two one-year renewals and a 90 day termination after first 2-year term by mutual agreement, not to exceed $6,000,000 annually. The processing fee increased to $114 per ton, less an offset for the average value of recyclable materials. The acceptable level of contamination allowed for processing was increased from 15 percent to 30 percent, which is expected to increase the number of loads of recyclables accepted for processing. Provisions were added to the contract to address the limitation, assessment, and management of contaminated recyclable material as required by changes to Florida Statutes effective in 2020. Approved by the Board on December 15, 2020.
Amendment No. 10: Increased the processing fee to $117.44, per the CPI 3% increase provision. Processed under Procurement Division’s authority.
Amendment No. 11: Extended the contract for the term of January 1, 2023 to December 31, 2023, added language allowing three additional 1-year extensions. Increased the processing fee to $170 per ton, per the CPI provision in Amendment 9. Approved by the Board on December 13, 2022.
Amendment No. 12: Renewed the contract for the term of January 1, 2024 to December 31, 2024 and increased the processing fee to $175.10 per ton, per the CPI 3% increase provision in Amendment 9, paragraph f. Processed under Procurement Division’s authority.
Amendment No. 13: Added a credit of $5.00 per ton to be applied and shown as a separate entry on the monthly invoice from the company to the County for each ton of material delivered to the County MRF by County haulers during the period of processing facility outage at the Company's Cocoa MRF. The Cocoa MRF outage was anticipated to occur from May 10, 2024 to August 18, 2024. Processed under Procurement Division’s authority.
Amendment No. 14: Issued a correction to Amendment 13. Processed under Procurement Division’s authority.
Amendment No. 15: Renewed the contract for the term of January 1, 2025 through December 31, 2025 and increased the processing fee to $178.85 per ton, per the CPI 2.14% increase provision in Amendment 9, paragraph f. Processed under Procurement Division’s authority.
Amendment No. 16: Renewed the contract for the term of January 1, 2026 through December 31, 2026 and increased the processing fee to $183.69. per ton, per the CPI 2.14% increase provision in Amendment 9, paragraph f. Processed under Procurement Division’s authority.