Submitted By
John P. Wielebnicki, Director of Public Works
Reviewed By
LKS
Agenda Item Title
Title
A Resolution Authorizing Continued Support of and Participation in the West Cook County Solid Waste Agency’s Regional Disposal Project
End
Overview
Overview
This item will allow for continued participation in the West Cook County Solid Waste Agency’s Regional Disposal Project. The Regional Disposal Project serves as means for the Village to dispose of refuse collected by the Village’s waste hauler.
Body
Staff Recommendation
Approve the Resolution.
Fiscal Impact
The Environmental Services Fund provides for the collection and disposal of refuse, recycling, yard waste and organics. The collection service is paid to the Village’s contract hauler, Waste Management. The disposal fees (tipping fees) are paid to the West Cook County Solid Waste Agency who manages the contract with the transfer station and landfill.
In FY 2018 in account no. 5055-43760-101-530660, General Contractuals, $564,142.00 is budgeted for disposal.
Background
The Regional Disposal Project (RDP) is an intergovernmental cooperative project created and administered by the West Cook county Solid Waste Agency (WCCSWA) to provide participating municipalities with a cost effect, long term contract for solid waste disposal.
In September 1995, Oak Park was one of the first fifteen communities to participate in the RDP by entering into a Project Use Agreement with WCCSWA. By combining solid waste tonnages from area communities the WCCSWA issued a RFP and developed a contract for transfer and disposal of solid waste at a reduced rate than would otherwise be realized by individual municipalities. Services under the negotiated rate began in 1997. By participating in the RDP, the Village realized an immediate savings of nearly 11% on tipping fees.
The Village has had a positive experience participating in the RDP.
The current contract with the WCCSWA and the transfer station/landfill operator expires on December 31, 2018. As a result of this contract expiring, the Agency began a process of negotiating with the current landfill operator and subsequently issuing a RFP. Proposals were received in December 2017 and the proposers were interviewed. The Agency is recommending to move forward with Groot as the new transfer station/landfill operator at a significant savings of approximately 15% over the current rate.
The current rate the Village pays for tipping fees is $50.12 per ton plus and administrative fee of $1.49 per ton for the Agency to administer the contract for a total cost of $51.61 per ton. The new rate would be $43.99, which includes the Agency administrative fee. This rate is similar to a rate the Village was paying ten years ago.
The Agency has provided a memorandum outlining the details of the renewal of Project Use Agreements.
The Agency is requesting that the Village renew their commitment to participate in the RDP by approving the attached resolution. The Original Project Use Agreement is also included as an attachment.
Some of the benefits of this program include:
1) Collection services can be provided by any qualified contractor. This means the Villages hauler, Waste Management, will be required to take the refuse to the transfer station as directed by the Village. The new transfer station is only 1.6 miles away from the current one. The Village and Waste Management will negotiate any impacts to the change in location.
2) There is guaranteed capacity at the landfill which is located in Rockford, IL.
3) The Village has a long term contract for disposal. The new initial term is for ten years, 2019-2028 with two additional five-year extensions at the Agency’s discretion under the same contract terms.
4) There is comprehensive indemnification and insurance from environmental liability with the project.
5) Disposal fees are limited to CPI escalation at a minimum of 1.5% to a maximum of 4.0%. There is no escalation to the State of Illinois surcharge, no separate fuel adjustment as in the current contract and no separate labor adjustment as in the current contract.
Also attached is the copy of a powerpoint presentation that was prepared by the Agency.
Alternatives
The Board can delay action to gain additional information.
Previous Board Action
The Village Board renewed their commitment to participate in this project in 2007 for contract years 2009 to 2018.
Citizen Advisory Commission Action
N/A.
Anticipated Future Actions/Commitments
It is expected that this will continue to be an opportunity for cost effect disposal of the Village’s solid waste so participation in this project continues to be recommended by staff.
Intergovernmental Cooperation Opportunities
By the nature of this project, this is an excellent example of Intergovernmental cooperation.
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.