Title
Refuse Hauling Contract
Waste Management Contract Renewal 2013-2023
History
On January 28, 2013, the village received two proposals for refuse hauling services, from Waste Management and Allied/Republic Services. A committee comprised of village staff, residents, and the Public Works & Engineering Committee Chair conducted a qualitative review of each proposal and referred Waste Management's proposal as most thorough and responsive to RFP requirements. In addition, a financial pricing review was conducted with Allied/Republic Services lower in pricing.
On April 15, 2013, the Board authorized staff to begin negotiating with Waste Management, Inc. of Houston, Texas, for a ten-year contract for refuse, yard waste, and recycling services. The Board requested the new contract include a two-cart program and weekly recycling. With the two-cart program, residents will be issued two carts: one for refuse and the other for recycling. These carts must be placed at the curbside by residents. The system allows for increased automation, consistency, and efficiency. Because there is greater efficiency in the process, routes would be realigned and there would need to be some pick-up day and time changes. Yard waste will still be collected in separate yard debris containers supplied by the residents during seasonal periods.
Currently, the village hosts a spring and fall clean-up event, which includes 30-yard dumpsters being placed at the village’s Public Works facility for residents to drop off trash. The new contract will incorporate an annual bulk trash clean-up week to replace the existing spring and fall clean-up events. The bulk trash clean-up week will allow each resident to place bulk quantities of trash on their parkway for pick up once per year on their normal service day.
The village’s RFP indicated that the Village is interested in working with a contractor that currently is in the process of utilizing alternative fuel trucks (e.g. Liquefied Natural Gas, Compressed Natural Gas (CNG), etc.) for solid waste collection. Moving towards alternative fuel would be of mutual benefit to both the village and the contractor, since using alternative fuel saves the waste hauling contractor money by lowering fuel costs. Waste Management has indicated that by the end of a ten-year agreement, the fleet servicing the village will be 100% CNG.
Staff has met with Waste Management on two separate occasions and has come to a tentative agreement on pricing:
Waste Management - Proposed Pricing
Year 1 Year 10
5/2/13 Revised Proposal $18.58 $23.20
1/18/13 Original Proposal $19.20 $23.97
The entire pricing proposal is attached. The current rate for refuse hauling services is $19.40 per month. In addition to receiving a monthly rate in the first and second year that is lower than the current rate, residents would experience minimal disruption in their service by not having to change service providers. Waste Management received high marks from respondents of our community-wide survey and was recommended by the review committee.
On May 20, 2013, this item was reviewed and approved by the Public Works and Engineering Committee and referred to the Board for approval.
Financial Impact
The village will receive a $25,000.00 per year payment from Waste Management to be used to support village programs and events. There will be no other impact on the General Fund as residents will pay for the refuse hauling services via their water bill.
Recommended Action/Motion
I move to approve to enter into agreement with Waste Management, Inc. of Houston, Texas, for a ten-year contract for refuse, yard waste, and recycling services.