City likely to extend Waste Pro contract


The City Council, at its Jan. 10 workshop, agreed to negotiate a new contract for another five years with Waste Pro. FILE PHOTO
The City Council, at its Jan. 10 workshop, agreed to negotiate a new contract for another five years with Waste Pro. FILE PHOTO
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In all, residents could save as much as $1.65 per month in waste-collection services, if Waste Pro’s contract is selected.

After originally planning not to take the waste-hauling contract out to bid in August 2011, the Palm Coast City Council changed its mind. After the bid process, however, things have settled right back where they started: Council members appear set to renew its contract with Waste Pro, the current hauler. But, if a new deal is reached, residents will see a decrease in their monthly bill by about $1.65.

The City Council, at its Jan. 10 workshop, agreed to negotiate a new contract for another five years with Waste Pro.

A final decision wasn’t made at Tuesday’s meeting, but the City Council was presented with the four respondents to the city’s request for bids.

Residents are now paying $20.32 per month for trash collection. As a result of the process, Waste Pro came in with a new bid of $18.47.

In August, the City Council directed city staff to renegotiate its contract with Waste Pro without going out to bid. Residents spoke out, though. They wanted the City Council to make sure there was competition.

At the Aug. 16 meeting, City Manager Jim Landon said going out to bid was what people expected of the government. But he suggested it could give the city a bad name because taking the low bid could “hurt the service and, for five years, you have people upset because you took the low bid.”

But those fears are now moot because the lowest bid was submitted by Waste Pro, which the city is generally pleased with.

Council members also discussed adjustments to the contract. For example, the city could require Waste Pro to use trucks powered by compressed natural gas. If the City Council agrees to implement such vehicles, the monthly charge would decrease by 70 cents.

Dianne Torino, risk and contract administration manager for the city, said Waste Pro would use new trucks if the city decides to require CNG vehicles. If the city goes that route, a compressed natural gas facility would be required, and that would raise the monthly price by 55 cents, totaling a net reduction of 15 cents. There are no CNG facilities located in Flagler County.

The new contract includes a proposal for doorstep hazardous waste pickup. That could cost residents 30 cents per month for the entire city, or an individual resident $60 on a one-time basis. Also, the city would implement single-stream recycling rather than the current system that has residents sort recyclables. A recycling rewards program will be put into place, as well.

City Council members have agreed to include all three items, which raises the baseline price of $18.47, up to $18.67. In all, the monthly cost to residents could be $18.67, or a $1.65 reduction from the current $20.32 per month.

City Councilman Bill McGuire confirmed Tuesday that although Waste Pro came in $2 cheaper than the other three bidders, the lower cost won’t translate to lower service.

Torino also said there is a 5% fuel surcharge buffer based on the price of gasoline the date the contract is signed. If gas prices increase outside that buffer, then residents’ monthly bills will be increased. Conversely, if the price of gas falls below that buffer, residents would see a reduction in the monthly cost.

Public input will be heard at the Jan. 17 regular meeting. The contract agreement could be finalized Jan. 31.

 

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