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Award of Contract and Franchise Agreement With Coastal Waste & Recycling, Inc., for Curbside Residential Solid Waste and Recycling Collection Services (Contract No. 24-RFP00582/TPR; Amount: $104,870,552.64)
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BRIEF OVERVIEW
The Procurement Department issued Request for Pre-Qualification (RFPQ) No. 23-PQ00289/IR on August 2, 2023, at the request of the Hernando County Utilities Department to select the most qualified entities to provide Residential Solid Waste Collection Services. The Procurement Department reviewed eight (8) submissions to determine responsiveness and responsibleness.
The Procurement Selection Committee (PSC) met on November 13, 2023, to evaluate the proposals and qualify firms. The committee included Laura Borgesi, Traffic Engineer - Department of Public Works; Scott Harper, Services Manager - Solid Waste Department; Jeff Howley, Facilities Supervisor - Solid Waste Department; Ron Patel, Engineering Division Manager - Utilities Department; and, Liana Teague, Public Outreach and Compliance - Solid Waste Department. The PSC consensus scoring evaluation resulted in the following qualified firms to proceed to the next phase of the Solicitation Process:
Firm (Listed in Alphabetical Order)
• Coastal Waste & Recycling, Inc.
• FCC Environmental Services Florida, LLC
• Republic Services of Florida, Limited Partnership
• Waste Connections of Florida, Inc.
• Waste Management Inc., of Florida
• Waste Pro of Florida, Inc.
The Procurement Department issued Request for Proposals (RFP) No. 24-RFP00582/TPR on July 1, 2024, to the six (6) pre-qualified firms. On February 17, 2025, the County received five (5) proposals and one (1) letter of no bid. The Procurement Department reviewed and evaluated submissions to determine if submissions were responsive and responsible. The Procurement Selection Committee (PSC), comprised of the same members as the Pre-Qualification solicitation, met on March 4, 2025, to evaluate the proposals. The PSC consensus scoring evaluation resulted in the following scores:
Firm: (Listed in Descending Order of Score) Total Score (Max Score 100)
Asterisk (*) denotes recommended awardee
Coastal Waste & Recycling, Inc. 73.2*
Republic Services of Florida Limited Partnership 72.3
Waste Pro of Florida, Inc. 70.9
FCC Environmental Services Florida, LLC 69.6
Waste Management, Inc., of Florida 64.2
The committee did not request oral presentations and a Notice of Intent to Negotiate and Award the Contract, naming Coastal Waste & Recycling, Inc., as the highest scored Proposer, dated March 4, 2025, was posted to the OpenGov website and posted to the Hernando County Administration electronic public bulletin board on March 6, 2025.
On March 6, 2025, the County received a written Notice of Protest and Bid Protest Bond from Republic Services of Florida, Limited Partnership. On March 14, 2025, timely Formal Written Protest Petition from Republic Services of Florida, Limited Partnership was received, to which Chief Procurement Officer provided Investigative Summary and Decision on March 20, 2025.
On March 28, 2025, the County received written Opposition to Chief Procurement Officer’s Investigative Summary and Decision and Request for Formal Proceeding from Republic Services of Florida, Limited Partnership. On April 22, 2025, the protest hearing commenced. The protest was dismissed by Republic Services on April 23, 2025.
On April 8, 2025, the Board authorized the Chief Procurement Officer to proceed with negotiations with the highest scored Proposer. Staff successfully completed contract negotiations on April 29, 2025.
The award is for a seven (7) year contract with one (1), seven (7) year renewal option. The Solid Waste Department anticipates 45,138 dwelling units in the Universal Service Area and 29,645 dwelling units in the Subscription Service Area. There are two (2) billing methods utilized. Universal Service Area customers pay for the collection service as a non-ad valorem assessment on their annual tax bills and the County collects the payments, then distributes to the Franchisee monthly. Subscription Service Area customers voluntarily sign up for service and the Franchisee bills and receives payment directly from the customer. The agreement incorporates Coastal Waste & Recycling, Inc.’s complimentary collection of Parks and Recreation Department refuse containers.
The Chief Procurement Officer has reviewed this requirement for conformance to Procurement Ordinance and Purchasing Policies and Procedures.
FINANCIAL IMPACT
The Franchisee either bills Customers directly or collects Customer fees through non-ad valorem tax assessment into revenue account: Fund 7034 Account 3252001.
The total estimated amount for year one is $14,981,507.52 ($8,948,157.12 for Universal and $6,033,350.40 for Subscription) and for years one through seven aggregate the amount would be: $104,870,552.64.
LEGAL NOTE
In accordance with Part II, Chapter 2, Article V of the Hernando County Code of Ordinances.
recommendation
RECOMMENDATION
It is recommended that the Board approve and authorize the Chairman’s signature on the attached franchise agreement to Coastal Waste & Recycling, Inc., for Curbside Residential Solid Waste and Recycling Collection Services, (Contract No. 24-RFP00582/TPR) in the estimated seven-year contract amount of $104,870,552.64.
It is further recommended the Board authorize the Chief Procurement Office to renew the contract with the same terms and conditions.