SCHOOL BOARD OF BREVARD COUNTY, FLORIDA BOARD AGENDA ITEM March 27, 2018

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1 PURCHASING SOLICITATION SCHOOL BOARD OF BREVARD COUNTY, FLORIDA BOARD AGENDA ITEM March 27, 2018 RFP-18-P-028-HD, Recycling of Paper, Plastic and Other Miscellaneous Recyclable Materials, Reject All Proposals (ITB) Invitation To Bid (ITN) Invitation To Negotiate (PB) Piggyback (RFP) Request For Proposal (RFQ) Request For Qualifications (SC) State Contract (SS) Sole Source REQUESTOR: Office of Facilities Services Legal Review: Yes No VENDOR NAME AMOUNT AWARDED REQUIRED PRODUCTS/SERVICES Waste Management of FL. N/A Recycling Services District Wide Contract Renewal Recurring Contract New Contract New Contract Amount Previous Contract Amount Variance N/A N/A N/A PRICE INCREASE / DECREASE EXPLANATION: N/A DISCUSSION: RFP #18-P-028-HD was opened on 11/8/2017, 827 vendors were solicited. There were 10 plan holders and one (1) proposal was received. On 12/14/2017, the selection committee reviewed all proposals and recommended award to the sole respondent, Waste Management of Florida (WMF) upon completion of a mutually agreeable contract negotiation. The Purchasing Department and the Office of Facilities Services met with WMF on 1/18/2018 to negotiate. On 1/24/2018, the attached Negotiated Modification letter Exhibit A was sent to WMF as requested. WMF rejected items 1, 2, 3 and 4 in part or entirety of Exhibit A leading the Office of Facilities Services and Office of Purchasing and Warehouse Services to recommend rejection of all proposals for recycling services and issue a new RFP with a revised scope of work. CONTRACT TERM: N/A RECOMMENDATION: It is the recommendation of Dane Theodore, Assistant Superintendent of Facilities Services, and Bruce Lindsay, Manager of Energy and Resource Conservation to reject all proposals, revise scope of work and resolicit RFP. AUTHORITY FOR ACTION: Florida Administrative Code 6A OFFICE OF PURCHASING SERVICES 2700 JUDGE FRAN JAMIESON WAY VIERA, FL

2 School Board of Brevard County Office of Purchasing & Warehouse Services 2700 Judge Fran Jamieson Way Viera, FL Desmond K. Blackburn, Ph.D., Superintendent Original January 24, 2018 Exhibit A Karen Bryant, Major Account Manager Waste Management Inc. of Florida 7382 Talona Drive West Melbourne, Florida RE: NEGOTIATED MODIFICATION, WASTE MANAGEMENT INC. OF FLORIDA RFP #18-P-028-HD Recycling of Paper, Plastic and Other Miscellaneous Recyclable Materials District Wide Dear Ms. Bryant, Thank you and your team for meeting with us on January 18, 2018 to begin negotiating a new recycling contract for The School Board of Brevard County, FL. We sincerely appreciate the efforts you have put forth in such a complex and comprehensive proposal. Your dedication and expertise to your field is truly commendable. Brevard Public Schools understands and respects the considerable time and resources Waste Management Inc. of Florida has spent making an offer on the RFP to provide recycling services to our district. At the same time, there are some fundamental concerns which were discussed and outlined during our recent meeting that are preventing The Brevard Public Schools Office of Facilities Services from recommending a contract award to Waste Management Inc. of Florida. As Mr. Theodore, Assistant Superintendent of Facilities Services, explained during our meeting, the fifty percent increase that Waste Management is proposing was unexpected considering WM originally offered a 5% increase. The rate increase along with the procedure changes Waste Management is imposing, requiring an extensive reeducation effort to avoid additional fees and contamination penalties, will be a difficult if not impossible proposal to offer our school board for approval. Brevard Public Schools realizes that the recycling markets have dramatically changed and we value our partnership with Waste Management. We desire an agreement that advances the recycling goals of both Brevard Public Schools and Waste Management adding continued value to our partnership. In response to Mr. Nizamoff s request, Brevard Public Schools has prepared the below modifications for your approval. 1. BPS proposes a 5% rate increase for recycling services for the first year with subsequent 5% increases in years two and three of the new contract. Rate increases may be negotiated for any contract extension after the initial three (3) year contract term. 2. The new restrictions will require a significant re-education effort. BPS proposes WM waives all contamination fees and penalties during the first year of the new contract. WM may begin accessing contamination charges in year two and continue through the life of the initial contract. WM will provide, in writing, a fee schedule detailing how; when these fees will be imposed. (1 st time vs 2 nd time, etc.) These fees and penalties may be negotiated for any contract extension. 3. BPS proposes WM assist BPS in the re-education efforts by hosting workshops, suppling training videos, written materials and recycling signs/posters on an as needed basis. Any workshops will be scheduled at a minimum of one month in advance for the life of the initial contract. Ed Parker, CPPO, CPPB Director - Office of Purchasing & Warehouse Services Phone: (321) Ext. 645 FAX: (321) Warehouse: (321) Ext FAX: (321)

3 School Board of Brevard County Office of Purchasing & Warehouse Services 2700 Judge Fran Jamieson Way Viera, FL Desmond K. Blackburn, Ph.D., Superintendent 4. BPS requests WM coordinate with the accounting department to set up e-payables for electronic payment via our district p-card program. 5. BPS will provide WM thirty (30) days advance notice when scheduling service suspensions and/or service reductions for school closures during summer, winter and spring or other breaks. Again, we thank you and trust that you understand our position and accept this modification. Our intention is to complete this process prior to the expiration of the two-month extension of the current contract. BPS invites further discussion if needed. It is our hope to continue our recycling partnership. Please contact Heidi Dotson at , ext. 107 or by at if you should have any questions. Thank you for your past services, and we look forward to working with you in the future. Sincerely, Heidi Dotson, Buyer Office of Purchasing and Warehouse Services Waste Management Inc., of Florida approves the Negotiated Modification, RFP #18-P-028-HD Recycling of Paper, Plastic and Other Miscellaneous Recyclable Materials District Wide. The remaining terms and conditions of the Bid remain in full force and effect except for the changes detailed in this modification, which is incorporated by this letter into the Waste Management Inc., of Florida proposal document RFP #18-P-028-HD Recycling of Paper, Plastic and Other Miscellaneous Recyclable Materials District Wide. Signature Printed Name and Title Date Ed Parker, CPPO, CPPB Director - Office of Purchasing & Warehouse Services Phone: (321) Ext. 645 FAX: (321) Warehouse: (321) Ext FAX: (321)

4 Waste Management Inc. of Florida (813) Cell kbryant12@wm.com - February 13, 2018 School District of Brevard County Heidi Dotson, Purchasing Services Dotson.heidi@brevardschools.org RE: NEGOTIATION QUESTIONS RFP #18-P-028-HD Recycling of Paper, Plastic and Other Miscellaneous Recyclable Materials District-Wide Dear Ms. Dotson, Waste Management Inc. of Florida s response to your Negotiation Questions from your letter dated January 24, 2018 is listed below for your review. 1. BPS proposes a 5% rate increase for recycling services for the first year with subsequent 5% increases in years two and three of the new contract. Rate increases may be negotiated for any contract extension after the initial three (3) year contract term. WM Response: Waste Management Inc. of Florida s rates submitted for RFP #18-P-028-HD consider our expenditures associated with our recycling collection, recycling processing and the specialized nature of our business (such as: maintaining/replacing our fleet, containers, etc.). The current recycling services contract was awarded in January 2013; there have been no price increases. The rates submitted for RFP #18-P-028-HD are necessary to help Waste Management Inc. of Florida ensure a solid financial foundation to provide the School District of Brevard County with the services they need and expect. On the following page, The Sampling of Brevard Schools - Proposed Recycle Costs Verses Trash Costs compares the Recycle Current Costs / Recycle Proposed Costs verses the Cost for Disposing of Recycling as Trash. This cost analysis shows the Savings/Cost Avoidance to Recycle Annually for a small sampling of your schools. The estimated amount for all schools/facilities will be much higher. Even though the recycling rates submitted for RFP #18-P-028-HD will increase compared to the rates in 2013; recycling provides the School District of Brevard County with cost avoidance while educating students on the importance of being responsible for their waste stream. 1

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6 2. The new restrictions will require a significant re-education effort. BPS proposes WM waives all contamination fees and penalties during the first year of the new contract. WM may begin accessing contamination charges in year two and continue through the life of the initial contract. WM will provide, in writing, a fee schedule detailing how; when these fees will be imposed. (1st time vs 2nd time, etc.) These fees and penalties may be negotiated for any contract extension. WM Response: Waste Management Inc. of Florida appreciates your cooperation to re-educate students and staff to recycle correctly without plastic bags. We will provide a longer transition grace period from upon Contract Award date to September 30, 2018 to allow more time for reeducation efforts. Contaminated load charges will begin effective October 1, 2018 through the life of the initial contract. Waste Management Inc. of Florida agrees that these fees and penalties may be re-negotiated for any contract extension. The recycling contamination process will be as follows: 1. The driver arrives at the school to service the school recycling container (dumpster, cart, roll-off or compactor). 2. If the school recycling container is found to be contaminated, the driver will take a photo prior to servicing the recycling. The materials that caused the contamination such as plastic trash bags, foam trays, or other unacceptable items will be viewable in the photo. BPS will only be charged for recycling contamination that is collected at their school / facility. 3. The contamination fee will be charged to the specific school / facility that was contaminated. The penalties are assessed on a per load basis. The contaminated load fees are necessary to help offset the costs to dispose of the contaminated recycling as trash. When contamination of 10% or greater per container occurs, the following fee schedule will apply: 1 st offense no charge. Driver notifies Dispatch of the contamination. Dispatch calls/ s the contact person on the school/facility recycling account to notify them about the contamination. 2nd offense no charge. Driver notifies Dispatch of the contamination. Dispatch calls/ s the contact person on the school/facility recycling account to notify them about the contamination. 3 rd offense and future offenses a contaminated load charge of $10 per recycling cart, $50 per recycling dumpster, and $175 per recycling compactor will be charged to the individual school/facility recycling account. Roll-off containers that are contaminated will be brought to a trash disposal facility for processing and Brevard Schools will be billed for the trash disposal on their tax bill. Driver notifies Dispatch of the contamination. Dispatch calls/ s the contact person on the school/facility recycling account to notify them about the contamination. If a school continues to have consistent contamination, BPS may want to consider not recycling at that school location until employees can be trained further. BPS may also choose to recycle fewer items to limit confusion. For example, some schools may want to recycle only paper and cardboard. 3

7 Please note the following Recyclables Specifications for Brevard Public Schools The following lists outline the allowable and non-recyclable materials that Waste Management Inc., of Florida. will accept in the recycling program. The allowable recyclable materials list is subject to change as market conditions change. No bagged recycling is allowed; it must be placed loosely into the container. Many of our customers use plastic bags to hold recycling internally. Then, they open the bag and place the recyclables loosely into the recycling dumpster, cart, roll-off or compactor. Then, place the plastic bag in the trash. Unfortunately, plastic bags cause the gears at our recycling facility to jam, therefore they cannot be recycled. Single stream recyclable materials include but are not limited to: Steel, tin, and aluminum cans empty Plastic bottles and containers #1 - #7 empty, free from food debris Office paper, brown paper bags, newspaper, magazines, and junk mail Paper cardboard (cereal box, etc.), and dairy and juice containers empty Flattened cardboard and paperboard Single stream non-recyclable materials include but are not limited to: Food waste / liquids of any kind Plastic bags of any kind Foam containers of any kind Glass of any kind Lightbulbs, batteries, or hazardous waste Unnumbered plastics Aluminum foil or foil trays Paper towels or napkins Phone books and textbooks Aerosol cans 3. BPS proposes WM assist BPS in the re-education efforts by hosting workshops, suppling training videos, written materials and recycling signs/posters on an as needed basis. Any workshops will be scheduled at a minimum of one month in advance for the life of the initial contract. WM Response: Waste Management Inc. of Florida will provide a Recycling Manual pdf within one week of Contract Award that describes the new recycling program and highlights why plastic bags are not allowed. 4

8 The manual will provide recycling options for staff such as: 1. Choose to use plastic bag internally to hold recycled materials. When full, open plastic bag and empty recycling contents loosely into the WM recycling dumpster, cart, roll-off or compactor. Then, throw away the empty plastic bag as trash. 2. Choose to use no plastic bag at all. 3. Choose to use a combined approach of both 1. and 2. - whichever approach is best for your school. BPS is encouraged to share the Recycling Manual pdf with all schools. During site visits with Administrators, Waste Management Inc. of Florida will also covey that plastic bags may be used internally but may not be placed in the Waste Management recycling container. Waste Management Inc. of Florida agrees to host a train-the-trainer recycling workshop annually to help with education efforts. BPS is encouraged to designate one or two Recycling Liaisons from each school to attend the train-the-trainer recycling workshop. Recycling Liaisons will then convey the recycling workshop information and materials to their school s students and staff. The Recycling Manual will contain links to training videos and recycling signs/posters in a pdf format that school/facility staff may print themselves. Waste Management will provide 500 color copies of the 8.5x11 Single Stream Recycling poster at the start of the contract for BPS to distribute as they choose. 4. BPS requests WM coordinate with the accounting department to set up e-payables for electronic payment via our district p-card program. WM Response: I have ed BPS Joanne Clark and Heidi Dotson regarding the e-payables for program for electronic payment processing. Waste Management Inc. of Florida may participate in the program if we are able to. 5. BPS will provide WM thirty (30) days advance-notice when scheduling service suspensions and/or service reductions for school closures during summer, winter and spring or other breaks. WM Response: Thank you for providing service schedules in advance. Waste Management Inc. of Florida looks forward to continuing our partnership with the School District of Brevard County. We fully understand all recycling contract requirements, have extensive experience providing service to your schools and facilities, and will continue to provide clear communication and timely response for all your service needs. If you have any additional questions, please let me know. Sincerely, 5