5525816 Resolution 21-123, Modification No. 14, Option Year 4 of Contract No. DCKT-2010-E-0112 with WM Recycle America, LLC Approval and Payment Authorization Emergency Declaration Resolution of 2015

A RESOLUTION

                                                        

21-123

 

IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

 

June 2, 2015         

 

                                                                                                                                             

To declare the existence of an emergency with respect to the need to approve Option Year 4 of Contract No. DCKT-2010-E-0112 with WM Recycle America, LLC to continue to provide the District with recycling services and to authorize payment for the services received and to be received under the contract.

 

 

RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this resolution may be cited as the “Modification No. 14, Option Year 4 of Contract No. DCKT-2010-E-0112 with WM Recycle America, LLC Approval and Payment Authorization Emergency Declaration Resolution of 2015”.

 

Sec. 2. (a) There exists an immediate need to approve Option Year 4 of Contract No. DCKT-2010-E-0112 (“Contract”) with WM Recycle America, LLC to continue to provide the District with recycling services and to authorize payment for the services received and to be received under this contract.

 (b) On May 3, 2010, the District Office of Contracting and Procurement (“OCP”), on behalf of the District Department of Public Works (“DPW”), entered into a requirements contract with WM Recycle America, LLC (“Contractor”) to transport, process, and market recyclables collected through the District’s residential recycling collection program and DPW’s collection facilities located at the Fort Totten and Benning Road Transfer Stations.  The initial term of the Contract was from the date of award, for a period of one year, with 4 one-year option periods.  Payments under the contract are based on the monthly net purchase price per ton of the recyclables.  If the monthly net purchase price is positive, the Contractor must pay the District the amount equal to the difference between the Monthly Price Index, which is based on the first published market values for the materials in the recyclable stream for the month in which the recyclables are purchased from the District, and the purchase price bid by the Contractor.  If the monthly net purchase price is negative, then the District must pay an amount equal to the difference to the Contractor.   During the base year, May 3, 2010, through May 2, 2011, the Contractor paid the District a total of $130,591 for the recyclables collected.

(c) By Modification No. 4, dated May 2, 2011, the District exercised Option Year 1 for the period from May 3, 2011, through May 2, 2012, for an estimated quantity of 25,000 tons of recyclables, at a purchase price per ton of $87.50 (without the monthly price adjustment). The Contractor paid the District a total of $389,783 for the recyclables collected during Option Year 1.

(d) By Modification No. 5, dated April 25, 2012, the District exercised Option Year 2 for the period from May 3, 2012, through May 2, 2013, for an estimated quantity of 25,000 tons of recyclables, at a purchase price of $90 per ton (without monthly price adjustment). The District paid the Contractor a total of $438,903 for the recyclables collected during Option Year 2.

(e) By Modification No. 7, dated May 1, 2013, the District exercised Option Year 3 for the period from May 3, 2013, through May 2, 2014, for an estimated quantity of 25,000 tons of recyclables, at a purchase price per ton of $92.75 (without monthly price adjustment). The District paid the Contractor a total of $760,948 for recyclables collected during Option Year 3.

(f) By Modification No. 10, the District exercised Option Year 4, for the period from May 3, 2014, through May 2, 2015, for an estimated quantity of 25,000 tons of recyclables at a purchase price per ton of $95.50 (without monthly price adjustment).During Option Year 4, the estimated quantity of recyclables processed by the Contractor has increased from 25,000 tons to 33,000 tons.  In addition, the market value of the goods has decreased resulting in an increase in the estimated annual amount of the contract. As of February 2015, DPW has issued payments to the contractor totaling $855,114.25.  OCP anticipates that the estimated contract amount for Option Year 4 will increase to $1.2 million.

(g) Council approval is required pursuant to section 451 of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 803; D.C. Official Code § 1-204.51), because the expenditures under the Contract are in an amount in excess of over $1 million during a 12-month period.

(h) Approval is necessary to allow the continuation of these vital services.  Without this approval, WM Recycle America, LLC cannot be paid for services provided in excess of $1 million.

 

Sec. 3.  The Council of the District of Columbia determines that the circumstances enumerated in section 2 constitute emergency circumstances making it necessary that the Modification No.14, Option Year 4 of Contract No. DCKT-2010-E-0112 with WM Recycle America, LLC Approval and Payment Authorization Emergency Act of 2015 be adopted after a single reading.

 

Sec. 4.  This resolution shall take effect immediately.