Broward County Commission Regular Meeting
Director's Name: Trevor M. A. Fisher
Department: Public Works Division: Solid Waste & Recycling
Information
Requested Action
title
MOTION TO APPROVE Third Amendment to the Agreement between Wheelabrator Environmental Systems Inc. (“Wheelabrator”), and Broward County, Florida for Solid Waste Disposal Support Services, dated June 26, 2012, as amended on May 19, 2015, and July 2, 2018 (collectively, the "Agreement"); and authorize the Mayor and Clerk to execute same.
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Why Action is Necessary
Board approval is required to approve the Third Amendment to the Agreement.
What Action Accomplishes
Approves the Third Amendment to the Agreement.
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Previous Action Taken
December 7, 2021 (Item No. 87)
December 14, 2021 (Item No. 63)
Summary Explanation/Background
In June 2012, the County entered into an agreement with Wheelabrator Environmental Systems Inc. (“Wheelabrator”), to provide for the disposal of solid waste generated in Broward County (“Original Agreement”).
In May 2015, Wheelabrator and the County amended the Original Agreement through a Global Amendment. The Global Amendment, among other things, provided the County a unilateral right to renew the Agreement for a five-year term starting on July 3, 2023 (the “Second Renewal Term”), which renewal right was exercised in 2021. The Board action that resulted in the exercise of that right also authorized the County Administrator to negotiate a potential further amendment to the Agreement that would provide, among other things, a longer potential term.
County Administration, in coordination with the County Attorney’s Office, has negotiated a third amendment to the Agreement (“Third Amendment”) that includes the following material terms:
1. Disposal fees. The Third Amendment addresses the fees to be paid for residential waste, commercial waste, yard and bulky waste, and construction and demolition debris, and also addresses the fees to be paid by any municipality that joins/joined the County’s interlocal agreement for solid waste disposal services after 2023. The Third Amendment also includes the payment of $500,000 per year plus $8,000 per week from Wheelabrator which the County is using to reduce payments made by participating communities for yard and bulky waste, and construction and demolition debris.
2. Procedure to renew the Agreement through 2033. Currently, the Agreement will expire on July 2, 2028, unless it is further extended through the mutual consent of Wheelabrator and the County. The Third Amendment renews the Agreement through July 2, 2033, if certain conditions are met by April 2, 2028 (e.g., the parties obtaining commitments for at least 500,000 annual tons of certain waste, etc.). If these conditions are met, Wheelabrator will also be required to pay the County $500,000 per year plus $8,000 per week for the duration of the Agreement. However, if the renewal conditions are not met, the Agreement will expire on July 2, 2028, and the County must make a one-time payment to Wheelabrator of $500,000.
3. Transportation costs and transfer stations. Under the Global Amendment, the County and the municipalities using Wheelabrator’s disposal services were required in 2023 to begin paying for the costs of transporting municipal solid waste to alternate disposal facilities when such municipal solid waste could not be processed at the waste-to-energy plant at Wheelabrator South Broward. The Third Amendment memorializes the parties’ agreement regarding the calculation of an annual transportation rate from specific transfer stations to the Okeechobee Landfill as well as the procedures for using those transfer stations and ensuring an accurate accounting of the transportation costs.
4. Assignment. The Third Amendment authorizes Wheelabrator to assign the Agreement to the same corporate subsidiary that holds the site lease for the waste-to-energy plant (Wheelabrator South Broward, Inc.).
5. Indemnification. The Third Amendment includes the County’s current contractual indemnification provisions and obligations on Wheelabrator as compared to older language used in the Original Agreement.
6. E-Verify. The Third Amendment uses language for the verification of employment eligibility that is different from the County’s standard terms. Instead of allowing the County the option to terminate the Agreement if Wheelabrator violates the obligations imposed by Section 448.095, Fla. Stat., the Third Amendment requires the County to terminate the Agreement if, after a consultation with Wheelabrator, the County has a good faith belief that Wheelabrator knowingly violated Section 448.095, Fla. Stat.
If this item is approved, the Mayor will be authorized to execute the Third Amendment to the Agreement (to be distributed as Exhibit 1), addressing such matters as described above.
The parties are attempting to finalize the Third Amendment. Once ready, or in substantially final form, it will be distributed as additional material. If it is not ready for final approval by the Board on February 25, 2025, we anticipate recommending an alternative motion that would approve the Third Amendment in substantially final form and authorizing the County Administrator to resolve remaining issues and execute the document on behalf of the County on or before March 31, 2025, subject to review and approval for legal sufficiency by the County Attorney’s Office.
Source of Additional Information
Kevin Kelleher, Assistant County Administrator, County Administration, (954) 357-7320
Fiscal Impact
Fiscal Impact/Cost Summary
There is no fiscal impact to Broward County as this is a pass-through waste disposal contract. The Third Amendment provides approximately $916,000 annually ($500,000 per year plus $8,000 per week) from Wheelabrator used to offset waste disposal fees from participating communities.