TO: Mayor and Commission AGENDA DATE: 9/15/2025
FROM: City Manager AGENDA ITEM: 7 - A
SUBJECT:
Title
Request for approval of Resolution No. 2025-123 awarding an agreement between the City of Deltona and Waste Pro to provide Solid Waste collection services.
Body
LOCATION:
Citywide
COST: Per Exhibit A
SOURCE OF FUNDS:
Annual Assessment of Residential Parcels
ORIGINATING DEPARTMENT:
Finance
POTENTIAL MOTION:
Recommendation
“I move to approve Resolution No. 2025-123”
END
BACKGROUND:
Background
On September 8, 2025, Commission tabled this item so that staff, Waste Pro and RCG, Inc. could review the contract as presented to discuss the penalty category within the contract. Waste Pro initiated a conversation with all parties to review the impact of the penalty category. After careful consideration, there were no service items of concern. When reviewing the applicable penalty category, the penalties amounted to $0.08 increase per residential unit per month to the stated rate to implement on October 1, 2025, of $15.94. Waste Pro has agreed with the City that there will be no increase to the previously stated amount going into the new contract.
Over the past eight months, the City has met with RCG, Inc on several occasions to discuss the contract renewal with Waste Pro
- On January 30, 2025, we had our initial meeting and were informed we should expect a renewal rate for October 1, 2025, of $17.14, not to include tipping ($4.19) or city administrative charges ($1.50) bringing the total monthly fee to $22.83 per month or $273.96 annually.
- On March 6, 2025, they revised their renewal rates for October 1, 2025, to $17.32, not to include tipping ($4.19) or city administrative charges ($1.50) bringing the total monthly fee to $23.01 per month or $276.12 annually.
- May 2025, the City Manager made the decision that staff would negotiate directly with Waste Pro.
On July 23, 2018, the City Commission entered a contract with Waste Pro for the collection and disposal of residential solid waste. The contract was for an initial term of seven years and had provisions for one, seven-year extension. This is for the seven-year extension.
Over the last five years the US economy has experienced significant inflationary pressures. Waste Pro has requested that the City consider an additional increase to help offset the rising costs of fuel, maintenance and other costs of operations. for a ranking list and authorized staff to negotiate a contract for exclusive residential and commercial solid waste services with the top ranked firm, Waste Pro of Florida, Inc. The contract will provide for the collection of residential solid waste, bulk and yard waste, household recycling and the collection of commercial solid waste.
The residential rates have been adjusted to account for increased labor and equipment cost. The rates for the first three years have been adjusted by $1.25 plus a fixed 4% CPI adjustment. For year 1 of the contract, this represents a 13.23% increase over the previous year.
The expected rate for the Solid Waste Annual Assessment beginning October 1, 2025, is slated to be $260.00 to smooth the annual increase over the next three initial years of this contract renewal period. City Staff, based on initial projections, have been able to reduce by just under $16.12 annually the increase to our residential customers. This is just under $600,000 overall reduction in contractual cost that the city’s negotiating team was able to bring forth.
For the subsequent years, CPI and fuel adjustment will be determined by the adjustments as addressed in the contract. Total annual cost paid to Waste Pro will be determined by the single-family residences assessed as part of the Solid Waste Assessment, which is currently 36,419 parcels with 228 additional units being assessed.
The commercial rates will be per Exhibit “A” attached to the agreement. The rates are also based on CPI and fuel as addressed in the contract. Waste Pro handles all billing and collections for commercial customers.
This is part of the Fiscal Year 2025-2026 budget.
End