Submitted By
John P. Wielebnicki, Director of Public Works
Reviewed By
LKS
Agenda Item Title
Title
A Resolution Approving an Agreement for Municipal Solid Waste, Recycling and Landscape Waste Collection with Waste Management of Illinois, Inc. for a Five Year Period and Authorizing its Execution
End
Overview
Overview
The Village is responsible for collection of municipal solid waste, recycling and landscape waste for single family through five unit residential buildings. This agreement allows Waste Management to provide these services for a period of January 1, 2017 through March 31, 2022.
Body
Staff Recommendation
Approve the Resolution.
Fiscal Impact
Funds are allocated for these services in the Environmental Services fund, an Enterprise Fund, in the General Contractuals line item, account no. 5055-43760-101-530660. This agreement is for collection services only. Disposal costs are included in another agreement.
Background
The current contract for refuse, recycling and yardwaste collection services with Waste Management will expire on December 31, 2016. The Village has several options available, including: Conduct a competitive Request for Proposal (RFP) process; or extend the current contract with Waste Management; or enter into discussions with Waster Management in order to negotiate terms of a new agreement. Staff has reviewed the current contract with Waste Management with the Environment and Energy Commission (EEC) along with the community goals for solid waste reduction and the EEC supports the Village enter into discussions with Waste Management in order to negotiate terms of a new agreement. Staff concurs with this option.
At the March 14, 2016 Village Board Special Meeting, staff was directed to discuss with Waste Management possible options for a successor agreement. Staff has met with Waste Management on several occasion’s to discuss their proposal.
Below is a brief summary of the proposed services by Waste management:
• NEW - Implement the “At Your Door” service. This program provides residents with unlimited front door service to remove hazardous waste and electronic items which are the largest growing part of the waste stream. The cost for this service is included in the monthly refuse rate (valued at $1.25). Oak Park would be the first municipality in Cook County to offer a full program to their residents. This program would replace the Village’s electronic recycling events saving contractor and employee overtime costs provide the most convenient program for residents. Waste Management is the only company in this region that provides this service. See the attached brochure.
• NEW - Waste Management will introduce its “Recycle Often. Recycle Right.” recycling education program and work with the Village to communicate the message to its residents. The “Recycle Often. Recycle Right.” recycling rules will help residents rethink recycling to make a sustainable impact. See the attached brochure.
• NEW - Waste Management will provide its Waste Watch program to the Village of Oak Park at no additional charge. Their trucks are on our streets every day. As our community partner, they will assist the police and fire departments by acting as extra eyes and ears on the street.
• NEW - Waste Management is willing to pilot “shared” refuse carts for organics participants, similar to the current option to share organics carts. This initiative will allow residents who significantly reduce waste to save money.
• NEW - Waste Management has requested that the annual rate adjustment be at CPI but not less than 2.5% in a given year and no more than 4.5% in order to keep up with their annually increasing labor contract costs. Current contract language is at CPI but between 0.0% and 4.0%.
• NEW - In year two of the agreement, Waste Management will provide competitive pricing to be used for multi-unit residential buildings with greater than six units.
• Maintain current high level of collection services for refuse, recycling, yard waste, organics and fall leaves and the cart maintenance program.
• Continue support for Village sponsored events and the growing number of requests for zero waste event services.
• Continue to provide the Village’s annual Refuse and Recycling Guide brochure and four Fall Leaf ads.
The following is the rate schedule for the services Waste Management will provide the Village of Oak Park.
|
Service |
Rate |
|
*Refuse & Recycle Service (single family up to five units) and At Your Door Program (does not include disposal cost) |
$14.04 per month |
|
Refuse Sticker |
$1.39 per sticker |
|
Yard Waste Sticker |
$2.50 per sticker |
|
Subscription Organics Service |
$14.42 per month |
|
Annual Leaf Service |
$202,225.00 per year |
|
Bulk Item (1 per week) |
2 refuse stickers per bulk item |
|
Special Pickup (large quantities of refuse, more than one bulk item at the curb or alley; pre-scheduled) |
$17.00 per cy for collection $5.00 per cy for disposal |
|
Special Pickup (large quantities of landscape waste at the curb or alley; pre-scheduled) |
$20.00 per cy |
|
Back Door Service (refuse and recycle only) |
$15.50 per month (In addition to monthly service rate) |
|
Emergency Requests for Public Service |
$125.00 per hour |
|
Street Sweeper Hauling |
$190.00 per haul |
|
Institutional Locations |
See specific rate sheet in the agreement for pricing |
* This rate is reflective of an increase in the monthly refuse and recycle service charge from $147,040 to $154,239 resulting in the monthly collection rate of $12.79 (a 4.9% increase from the current overall monthly charge to the Village) and the monthly At Your Door Program cost per home of $1.25. This rate is also reflective of current home counts (12,055).
Waste Management currently invoices the Village $147,040 monthly to service 12,055 carts. The new rates result in an increase of 4.9% for a monthly charge to the Village of $154,239. The additional At Your Door Service results in an additional $1.25 per month per cart resulting in an additional 10.2% increase to the month charger per cart. This equates to a new monthly cost to the Village of $169,252 for 12,055 carts.
As part of the Village Boards FY 2017 Budget review staff will present the proposed 2017 Village waste collection rates which in addition to the above include disposal, administrative, Leaf pickup and alley improvement costs.
Staff believes that the Waste Management proposal was presented in good faith and is a reasonable request. Additionally, the “At Your Door” program would provide the highest level of service in terms of convenience since few other options for these materials are available. This comprehensive program allows residents to dispose of the materials in an environmentally responsible manner.
In view of the fact that Waste Management is the only company that offers the “At Your Door” program and that their performance has been exceptional and highly rated in the last resident survey, staff recommends that agreement with Waste Management for a successor five year agreement be approved.
Alternatives
The Board can delay action to gain additional information.
Previous Board Action
The Village Board met on March 14, 2016 at a Special Meeting to discuss this issue as noted above.
Citizen Advisory Commission Action
The EEC supports this recommendation.
Anticipated Future Actions/Commitments
This agreement will be in effect until March 31, 2022.
Intergovernmental Cooperation Opportunities
There are several Oak Park public agencies that take advantage of the Waste Management agreement via their collection of solid waste, recycling and Yardwaste/organics. In addition, several churches take advantage of this program.
Performance Management (MAP) Alignment
This work is in alignment with the Governance Priority established for the Department of Public Works for Maintenance and Service Programs.