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Home My WebLink About5. OLD BUSINESS 07/15/2008 Mount Prospect Public Works Department INTEROFFICE MEMORANDUM At the May 13 Committee of the Whole the Village Board concurred with staff's recommendation to award a commercial solid waste contract to Allied Waste Services. Attached is a copy of the resolution authorizing the Mayor to enter into an agreement with Allied Waste Services for exclusive commercial solid waste services. In addition is a copy of the ordinance amending Chapter 19 of the Village Code to allow for an exclusive franchise agreement for commercial solid waste services. TO: VILLAGE MANAGER MICHAEL E. JANONIS FROM: ADMINISTRATIVE SUPERINTENDENT DATE: MAY 29, 2008 SUBJECT: RESOLUTION APPROVING CONTRACT FOR COMMERCIAL WASTE SERVICES AND CODE AMENDMENT TO CHAPTER 19 The amendments to Chapter 19 establish that all nonresidential waste (commercial waste) is only to be collected by the Village's exclusive nonresidential waste hauler. The changes also establish that the exclusive hauler is responsible for billing all commercial properties, but does allow for the Village to assist in bill collection by placing liens or shutting off water to a property. All other details concerning commercial waste collection are defined in the Commercial Solid Waste contract and summarized in the attached copy of my May 7, 2008 memo. Please include the resolution and code amendment on the June 3, 2008 Village Board agenda. Z. ",.'7 .,...,~/ "",.,.,./ ......-.. "....~ "F ,.." / __.....9_....'.~........ /' " /-.gf!'...... /~"'- / "':"-7- ........,* /I .'/ ~- /,/' Jason H. Leib .ro' ,/ / ,,'" ';? . ,/ B--~ Mount Prospect Public Works Department INTEROFFICE MEMORANDUM TO: VILLAGE MANAGER MICHAEL E. JANONIS FROM: ADMINISTRATIVE SUPERINTENDENT DATE: MAY 7,2008 SUBJECT: COMMERCIAL SOLID WASTE PROPOSAL RECOMMENDATION Backaround At a previous Committee of the Whole meeting Village staff presented the details of the Village's proposed commercial solid waste bid specifications. At that time staff received permission to negotiate directly with ARC Disposal (ARC), the Village's current exclusive residential waste hauler, for a commercial solid waste contract. After several months of negotiations the Village and ARC were unsuccessful in reaching an agreement for commercial solid waste services. The decision was made to mail out a request for proposal (RFP) to local waste haulers for these services. On March 25, 2008 specifications were mailed to eight local solid waste haulers with the RFP being due by April 17, 2008. Proposal The Village received seven proposals from: Allied Waste, ARC Disposal, Flood Brothers, Groot Recycling & Waste Services, Lakeshore Waste Services, Veolia and Waste Management. Village staff with the assistance of Brooke Beal, the Executive Director of the Solid Waste Agency of Northern Cook County (SWANCC), reviewed all of the proposals. After reviewing all of the numbers in great detail and the other incentives offered by the haulers Village staff, with the endorsement of Brooke Beal, finds the proposal of Allied Waste to be in the best interest of the Village. Discussion The current status of negotiations prevents the public discussion of the specific numbers in Allied's proposal, but it is possible to discuss the basics of the proposal. The numbers that Allied submitted are fair and are significantly lower than the best proposals recently received by the City of Evanston and the Village of Niles for commercial solid waste services. In addition Allied has agreed to a flat annual increase, which will protect the Village from rising fuel costs and any potential labor cost increase Page 2 of 3 Commercial Solid Waste Proposal Recommendation May 7, 2008 when new union contracts are negotiated. Another item that makes Allied's proposal interesting and significantly different than the other proposals is the inclusion of free recycling for all businesses. Allied has agreed to include once a week collection for any size container (95 gallon cart to a ten cubic yard dumpster) for all commercial properties at no cost. Potentially this represents a significant cost savings for businesses that actively recycle. A business that recycles should be able to reduce their waste collection by one dumpster size. For example a business receiving service three times a week for a six cubic yard dumpster would be able to reduce collection to a four cubic yard dumpster three times a week or a six cubic yard dumpster twice a week. Once a commercial solid waste contract is awarded all commercial properties will be contacted and informed of the schedule for the change out of the property's dumpster(s). The Village currently has two plans for the switching of dumpsters. The first of the two ideas is to replace the dumpsters by geographic location. This would require the town to be broken into geographic regions with each region being scheduled a specific date for replacement. The second idea is to switch containers based on the existing waste hauler. Each existing waste hauler would be assigned a specific date for replacement. In terms of both scenarios a decision has not been made as to whether the dumpsters would be collected by the hauler owning the dumpsters or if the Village's exclusive hauler would collect the dumpsters. If the Village's exclusive waste hauler is assigned the task of collecting the dumpsters the dumpsters would be delivered to a centralized location at which point the owners of the dumpsters would then collect the dumpsters. Once a property's dumpsters are changed the Village's exclusive hauler would be responsible for service and billing. The bid specifications require that the exclusive hauler be responsible for directly billing all commercial properties for service. Properties would be billed for collection of commercial waste for the previous quarter. The Village would set the rates charged by the waste hauler. Rates would include the contractor's rate for refuse and recycling services, which includes all tip fees, and any administration fee established by the Village. Commercial properties would be phased into the billing and service schedule as dumpsters are switched. The bid specifications require that all commercial properties begin receiving service under the contract within one (1) year of the commencement of the commercial solid waste agreement. This does not prevent the exclusive hauler from changing out dumpsters on a more aggressive schedule. The only properties that would be exempt from the commercial solid waste contract would be properties that are part of a national contract for the collection of commercial waste. Past experiences of SWANCC communities implementing exclusive commercial waste collection contracts suggest that the current rates paid by national contracts will be lower than the rates offered by the Village's exclusive contract. Page 3 of 3 Commercial Solid Waste Proposal Recommendation May 7, 2008 In a majority of cases the rates outlined in the exclusive commercial waste agreement will be lower than the rate properties are currently paying. However, in a few cases the rate properties are currently paying will be less than the rates outlined on the Village's exclusive agreement. The grandfather clause as currently written in the bid specifications would allow properties with lower rates to continue paying the lower rate for a full year. Beginning in the second year of the contract grandfathered properties would see set percentage increases that would bring the properties inline with contract rates by the beginning of year four (4) of the contract. Recommendation As previously stated staff and Brooke Beal are recommending the approval of Allied Waste's proposal for commercial solid waste services. If the Village Board agrees staff will draft a new ordinance establishing exclusive commercial solid waste permit and contract for Allied Waste for formal approval at the June 3, 2008 Village Board meeting. Jason H. Leib Cc: Glen R. Andler, Director of Public Works Sean P. Dorsey, Deputy Director of Public Works ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 19 AND APPENDIX A, DIVISION II OF THE MOUNT PROSPECT VILLAGE CODE BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: Section 1: Section 19.202, "Regulations with Respect to Customers of Solid Waste Collection Services", of Article 2, Solid Waste Collection, of Chapter 19, Health Regulations, of the Mount Prospect Village Code is amended by deleting Subsection B in its entirety and replacing it with the following: B. Nonresidential Consumers: All solid waste collection for nonresidential property within the corporate limits of the village shall be made, in every instance, by the exclusive solid waste nonresidential contractor servicing the village as set forth in a current nonresidential consumer (commercial) solid waste contract ("exclusive nonresidential franchisee"), except to the extent that any such contract exempts nonresidential consumers receiving such service under a nation-wide solid waste collection contract. 2. Every nonresidential consumer within the corporate limits of the village shall be billed by the exclusive nonresidential franchisee for, and shall be required to use the services of, the exclusive nonresidential franchisee. 3. Collection and disposal of solid waste shall be accomplished in a prompt and sanitary manner through the use of approved receptacles furnished by the licensed solid waste contractor. The village manager may promulgate such additional rules as may be advisable for such collection and disposal, and to provide a transition period for users to begin service with any new, exclusive nonresidential franchisee. 4. Such nonresidential solid waste collection shall be performed at least once each seven (7) days unless interrupted by a legal holiday. 5. The fees and method of payment for the collection and disposal of solid waste are set forth below: a. Amount of Payment: All nonresidential solid waste collection charges shall be due and payable to the exclusive nonresidential franchisee in the amounts set forth in appendix A, division II of this code. b. Payment Process: iManage:213727 _1 (1) The exclusive nonresidential franchisee shall perform on a quarterly basis, or an alternative schedule approved by the Village, the billing and collection of all rates and charges on behalf of the Village. (2) The exclusive nonresidential franchisee shall account separately for all amounts received and remit an administrative fee to the Village in the amount set forth in appendix A, division II of this code. (3) Late charges shall be assessed as set forth in appendix A, division II of this code, and retained by the exclusive nonresidential franchisee. (4) If payment is made sixty (60) days or more after the due date, the property owner, tenant, occupant or manager will be required to remit a deposit equal to two (2) months of the service, in addition to the balance due and all late charges. (5) For purpose of this section, the person to whom the last general tax bill on the property was sent shall be presumed to be responsible for the bill. The exclusive nonresidential franchisee may send statements to, and enforce collections from, property users other than the property owner. g. Lien Against the Property: A lien may be placed against the property for nonpayment as provided in Subsection A.12.c of this Section. h. Other Remedies for Nonpayment: The additional remedies set forth in Subsection A.12.c of this Section may be utilized for nonpayment. Section 2: Section 19.203: "Regulations With Respect To Providers Of Solid Waste Collection Services", of Article 2, Solid Waste Collection, of Chapter 19, Health Regulations, of the Mount Prospect Village Code is amended by deleting Sub-subsection A2 in its entirety and replacing it with the following: 2. Solid Waste Collection For Other Than Residential Service; Exclusive Franchise License: There shall be issued in the village no more than one solid waste contractor license for the collection of solid waste for any and all nonresidential consumers located within the corporate limits of the village, except that such a license may be issued to solid waste collectors having nation-wide contracts for such services. The exclusive nonresidential franchisee shall furnish all labor, materials and equipment for the removal of solid waste in regular weekly collections, as set forth in the current nonresidential consumer solid waste contract. The annual fee to be paid by the exclusive residential franchisee shall be as set forth in appendix A, iManage:213727 _1 division " of this code or as otherwise provided in the exclusive franchise contract. Section 3: Appendix A, Division II of the Mount Prospect Village Code shall be amended by inserting the following alphabetically in Section 19.202, Regulations With Respect To Providers Of Solid Waste Collection Services", to be and read as follows: B. 5 a. Waste collection charges with administrative fee: As determined by the village manager. b.2. Administrative fee: As determined by the village manager. b.3. Late charge of 20% of bill if not paid by due date. Section 4: This Ordinance shall be in full force and affect from and after its passage, approval and publication in pamphlet form in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this day of ,2008. Irvana K. Wilks Mayor ATTEST: M. Lisa Angell Village Clerk H:\CLKO\WIN\ORDINANCE\MP Ord Commercial Solid Wastejune200B.DOC iManage:213727 _1 RESOLUTION NO. A RESOLUTION AUTHORIZING THE EXECUTION OF AN EXCLUSIVE CONTRACT FOR COMMERCIAL SOLID WASTE SERVICES IN THE VILLAGE OF MOUNT PROSPECT WHEREAS, the Mayor and Board of Trustees of the Village of Mount Prospect have determined that it is in the best interests of the Village of Mount Prospect to enter into an agreement with Allied Waste Industries, Inc., for solid waste services to all nonresidential (commercial) consumers within the corporate boundaries of the Village according to the terms of the Agreement attached to and made a part of this Resolution as Exhibit A; NOW, THEREFORE, BE IT ORDAINED BY THE MA VOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS, ACTING IN THE EXERCISE OF ITS HOME RULE POWERS: SECTION ONE: That the Board of Trustees of the Village of Mount Prospect does hereby authorize and direct the Mayor to execute and the Village Clerk to attest the signature on the Agreement between Allied Waste Industries, Inc., and the Village of Mount Prospect for nonresidential (commercial) solid waste services, a copy of which Agreement is attached hereto and hereby made a part thereof as Exhibit "A". SECTION TWO: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this _ day of ,2008. Irvana K. Wilks, Mayor M. Lisa Angell, Village Clerk H:\CLKO\WIN\Resolution auth agrmt commercial solid waste contractjune200B.DOC iManage:214145_1