A. MOTION TO ACCEPT County Administrator's recommendation not to renew the June 26, 2012, Agreement Between Sun-Bergeron Solid Waste Disposal Services JV ("Sun-Bergeron") and Broward County for Solid Waste Disposal Services (the "Sun-Bergeron Agreement"); and
(Withdrawn at the request of the Mayor.) (This item will be brought back for consideration at a later date.) (See Yellow-Sheeted Additional Material, dated February 6, 2018, submitted at the request of County Administration.)
B. MOTION TO DIRECT County Administrator to send Participating Communities to the Interlocal Agreement between the County and Participating Communities for Solid Waste Disposal Support Services dated September 1, 2012 (the "ILA") a proposed first amendment to the ILA in substantially the same form as attached, to authorize the Office of the County Attorney to make non-substantive changes to the same, and to authorize the County Administrator to execute the first amendment on behalf of the County with each willing Participating Community. (Mayor Furr)
(Withdrawn at the request of the Mayor.) (This item will be brought back for consideration at a later date.) (See Yellow-Sheeted Additional Material, dated February 6, 2018, submitted at the request of County Administration.)
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In June 2012, the County entered into two solid waste disposal services agreements: (a) the Sun-Bergeron Agreement (Exhibit 1) and (b) an agreement between Wheelabrator Environmental Services, Inc. ("Wheelabrator") and the County to provide for the disposal of solid waste generated in Broward County (the "Wheelbrator Agreement") (Exhibit 2) (collectively, the "Solid Waste Disposal Agreements"). The Solid Waste Disposal Agreements require Wheelabrator and Sun-Bergeron to accept waste from Participating Communities (municipalities within Broward County that have entered into interlocal agreements with the County). In August 2012, the County approved a form Interlocal Agreement through which Participating Communities could receive services from Wheelabrator and/or Sun-Bergeron. (See Exhibit 3, example of ILA between the County and the City of Oakland Park). Under the ILA, a Participating Community selected the contractor to handle each type of waste stream, and if choosing Wheelabrator also selected one of three pricing options. The Solid Waste Disposal Agreements both had initial terms of five years ending on July 2, 2018. Under the Wheelabrator Agreement, the County had the unilateral right to renew for an additional five year term through July 2, 2023, with two additional contract renewals requiring mutual agreement. The Sun-Bergeron Agreement, on the other hand, requires mutual consent to renew beyond the initial term. Sixteen municipalities executed the ILA. The ILA's term runs concurrently with the term of the Solid Waste Disposal Agreements.
In May 2015, Wheelabrator and the County amended the Wheelabrator Agreement in a "Global Amendment" that, among other things, modified the County’s future right to renew (Exhibit 4). Instead of the second renewal term requiring mutual consent, the Global Amendment grants the County a second unilateral right to renew (starting in July 2023) (the "Second Renewal Term") provided two conditions are met. First, during the first renewal term that commences July 3, 2018, a minimum of 425,000 tons of contracted processable waste must be delivered each year to Wheelabrator pursuant to written contractual commitments in effect for the entire first renewal term (July 3, 2018 to July 2, 2023). Second, there must be binding written commitments for the entire Second Renewal Term from governmental entities within the County whose residents and businesses have annually generated at least 500,000 tons of waste that such entities will deliver all of their contracted processable waste to a specified Wheelabrator facility.
At the Board's April 25, 2017, meeting, the County authorized the County Administrator to extend the Wheelabrator Agreement through July 2, 2023.
Sun-Bergeron is a joint venture between Sun Recycling, LLC ("Sun") and Bergeron Environmental and Recycling, LLC ("Bergeron"). In September 2015, Sun advised the County Administrator that Waste Management Inc. of Florida was in the process of acquiring certain assets of Sun, many of which would impact the Sun-Bergeron Agreement. The asset acquisition subsequently occurred. Since that time, Sun and Bergeron have been embroiled in pending litigation. County staff has attempted to negotiate proposed terms that would enable the County to consider renewing the Sun-Bergeron Agreement. For a variety of reasons, including but not limited to the ongoing litigation, County staff has significant concerns about the continuing viability of Sun-Bergeron to provide these services. Because municipalities throughout the County are attempting to determine their solid waste disposal plans going forward, the County Administrator has recommended that County staff no longer attempt to negotiate a renewal with Sun-Bergeron, and allow the Sun-Bergeron Agreement to expire on July 2, 2018. Part A of this item would formally accept the County Administrator’s recommendation not to renew the Sun-Bergeron Agreement. Importantly, if any municipality believes that Sun-Bergeron remains a viable option, that municipality would have the option to directly contract with Sun-Bergeron.
Part B of this item allows municipalities to formally renew the ILA should they wish to select Wheelabrator as their service provider for the renewal term starting in July 2018. Part B would also direct the County Administrator to send the municipalities a proposed first amendment to the ILA in substantially the form as attached (the "Proposed First Amendment") (Exhibit 5).
The Proposed First Amendment allows each Participating Community to choose Wheelabrator for disposal of specific waste streams (residential and commercial waste, yard waste, bulk waste, and/or construction and demolition debris) and, to the extent a Participating Community selects Wheelabrator to dispose of its residential and commercial waste, the pricing option for that waste. Under the Proposed First Amendment, each Participating Community commits to disposing of its Residential and Commercial Waste (a/k/a contracted processable waste) with Wheelabrator for the entire first renewal term (July 3, 2018 through July 2, 2023). In addition, the Proposed First Amendment includes a process that, provided enough solid waste tonnage were committed, would enable the County to efficiently exercise its option to renew for the Second Renewal Term (July 3, 2023 through July 2, 2028).
The item also proposes allowing the Office of the County Attorney to make non-substantive changes to the Proposed First Amendment, and authorizes the County Administrator to execute the amendments as same may be modified.
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