Response to the commissioners are below:

1. Determine the terms and conditions for a severance of the contract with the current service provider, Coastal Waste and Recycling.

On June 1, 2022, the City entered into a seven-year contract with Coastal Waste & Recycling of Florida, Inc. for solid waste and recycling services, after terminating negotiations with the highest ranked respondent and negotiating with Coastal Waste as the second ranked respondent. 

The current Coastal contract provides termination for breach of contract and termination for cause. The contract does not include a clause for termination for convenience.

The seven (7) year contract covers various services, such as residential, multifamily, and commercial collection; special disability pull-out service; city facilities; special collection services; and education and public awareness programs. 

2. Provide the recent insourcing analysis by staff.

The attached June 2021 Insourcing of Solid Waste Collection and Recycling analysis indicates the need for a $15M outlay to insource solid waste and recycling services. This high-level analysis considers staffing, equipment, and other operational costs. 
It is important to note, the following key variables were identified as information not included in the study found, however should be analyzed by a subject matter professional: 

• Reliable Fiscal Impact to residential/commercial rates (full rate study necessary to determine the impact)
• Quantify the annual impact to the current Solid Waste deficit. 
• Fiscal impact of separation negotiations with Coastal Waste and Recycling of Florida
• Real-Time supply chain delays with sourcing equipment (Current sourcing turnaround time is closer to 24-36 months as opposed to 18 months)
• Liabilities & claims specific to the Solid Waste Operation (outlined $3.6M impact may be closer to $1.5M based on historical budgets and actuals). FY24 projection for the city is currently $1.3M
• Space Planning & Infrastructure Constraints (for Operations & Assets)
• A phased detailed insource plan for the city to follow (schedule of activities & risk mitigation plan)
• Fiscal Impact to Asset maintenance & replacement plan

3. Develop a scope of work for an insourcing study should the Commission decide to proceed with an RFP.

The scope of work for a detailed insource study is to outline in great detail the financial and service level impact to the residents and businesses if the city were to insource. 

• Maintenance and Lifecycle Costs of Equipment
• Recruit, Retain and Training of Employees
• Liability Coverage and Claims
• Employee Salaries and Benefits
• Fuel Costs
• Phased Insourcing Plan
• Space Planning & Layout
• Disposal Fees
• Supplies, Materials and Uniform Costs
• Optimized Route Plans for Efficient Routing
• Technology and Billing Infrastructure
• Public Awareness and Education 

The firm will conduct a thorough analysis of these key elements and much more. The analysis will include the most recent data from leading manufacturers, local, state, and federal government agencies (labor, energy, etc.) for feasibility and compliance. 

The estimated cost of the study is $150,000 - $200,000.