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1,563 <br />SWDD Item <br />Indian River County, Florida <br />Solid Waste Disposal District <br />Board Memorandum <br />Date: June 24, 2022 <br />To: Jason E. Brown, County Administrator <br />From: Sean C. Lieske, Director of Utility Services <br />Prepared By: Himanshu H. Mehta, PE, Managing Director, Solid Waste Disposal District <br />Subject: Approval of 2023 CPI Adjustment Request by Republic Services <br />Descriptions and Conditions: <br />On November 16, 2010, the Solid Waste Disposal District (SWDD) Board authorized the Solid Waste <br />Operations and Maintenance (O&M) Agreement (Agreement) with Republic Services of Florida, LP <br />(Republic). The agreement is for the operation and maintenance of the County's Class 1 landfill, as well as <br />non -Class 1 landfill services. The contract began January 1, 2011, with an initial term of seven (7) years <br />with an option for one (1) renewal term of seven (7) years. On February 21, 2017, the SWDD Board <br />approved the Ninth Amendment and extension to the contract agreement with Republic, extending the <br />agreement for another seven (7) years beginning on January 1, 2018, and expiring on December 31, 2024. <br />Section 4 of this renewal agreement includes an annual escalation provision allowing 100% change in the <br />Consumer Price Index (CPI) with the maximum rate adjustment set to 3.0%. <br />On August 17, 2021, the SWDD Board approved a CPI increase of 1.64% for Calendar Year (CY) 2022 to be <br />effective January 1, 2022. Specifically, the Class I Landfill MSW rate would increase from $13.96 per ton <br />to $14.19 per ton. The annual fee for the Non -Class I Landfill Services would increase from a total of <br />$3,216,027.65 per year to $3,268,770.50 per year. In addition to the CPI increase, the SWDD Board <br />approved Amendment No. 16 on February 1, 2022, which increased the non -Class 1 landfill services for <br />the O&M of landfill gas wells from $3,268,770.50 per year to $3,308,422.50 for CY 2022. <br />On June 13, 2022, Republic submitted a request for a 3.00% adjustment to be effective January 1, 2023. <br />This agenda item is requesting SWDD Board approval for the 2023 CPI adjustment request by Republic. <br />Analysis: <br />Staff has reviewed, verified, and recommends the approval of the request by Republic of the 3.00% CPI <br />increase for the Class 1 landfill rate and the Non -Class 1 landfill rate. In summary, here are the changes: <br />Services <br />CY 2022 Rate <br />CY 2023 Rate <br />Change from Prior Year <br />% Change <br />Class 1 Landfill <br />$14.19 per ton <br />$14.62 per ton <br />$0.43 per ton <br />3.00% <br />Non -Class 1 Landfill <br />$3,308,422.50 per year <br />$3,407,675.18 per year <br />$99,252.68 <br />3.00% <br />175 <br />SWDD Agenda - Approval of 2023 CPI Adjustment Request by Republic Services Page 1 of 2 <br />