ISSUE:

Approval of Amendment No. 11 of the Service Agreement for Solid Waste Collection, Recycling Program, Yard Debris Pick-up, and Bulk White-Goods Pick-up with Operations Management International, Inc (Jacobs/OMI) for Fiscal Year 2022-2023.

On July 11, 2022, Amendment No. 10 was approved by the NSCUDD Board setting the total monthly fee for FY 2022-23.  This amendment reflected a 4% increase, as proposed by Jacobs, which was less than the percentage increase of 4.36% if the default increase was used in the required formula outlined in the agreement.  To address current employee retention issues for licensed Commercial Drivers, Jacobs is proposing an additional fee increase of $250,000 for salary increases and bonus incentives to attract and retain CDL drivers.

Jacobs employees twenty-six CDL drivers to meet the solid waste collection needs of The Villages.  Current industry demand for CDL drivers has Jacobs experiencing staff retention issues.  Jacobs current hiring CDL wage of $18.50 per hour is below competitors and the average Florida wage.  The average hiring wage in our area is $20.38 per hour.  This disparity has resulted in the loss of seven drivers over the past three months and five unfilled positions.  To compensate drivers competitively and to improve the quality of service for residents, Jacobs has proposed to increase CDL driver wages by an average of 7% with monthly incentive bonuses for performance and to encourage retention.

Funds were not included in the Fiscal Year 2022-23 Budget to accommodate this increase, however, a budget resolution for the additional $250,000 appropriation will be included on the October 2022 agenda to amend the Fiscal Year 2022-23 Budget.

Approval of Amendment No. 11 to the Agreement with Operations Management International Inc. (Jacobs/OMI) for Solid Waste Collection, Recycling Program, Yard Debris Pick-up, and Bulk White-Goods Pick-up services for Fiscal Year 2022-23 for an additional fee increase of $250,000 and authorize the Chairman or Vice Chairman to execute the Amendment.

Motion to approve Amendment No. 11 to the Agreement with Operations Management International Inc. (Jacobs/OMI) for Solid Waste Collection, Recycling Program, Yard Debris Pick-up, and Bulk White-Goods Pick-up services for Fiscal Year 2022-23 for an additional fee increase of $250,000 and authorize the Chairman or Vice Chairman to execute the Amendment.