Title
Waste Management Contract Renewal 2010-2013
History
The Board of Trustees approved entering into a five (5) year contract with Waste Management of Illinois for the collection and removal of garbage, refuse, yard waste and recycling throughout the Village beginning November 1, 2002. Article Six (6) of the Agreement includes language which allows for a three (3) year extension to be negotiated after the initial term of the Agreement. On July 16, 2007 the Board approved a three (3) year extension of the contract (November 1, 2007 - October 31, 2010) with the option to negotiate an additional three (3) year extension beginning November 1, 2010.
While negotiating with Waste Management to extend the contract thru October 31, 2013, staff requested incorporation of the following terms into the contract.
• Waste Management has agreed that no cost increase will be passed on to the residents during the first year of the contract. Thru October 31, 2011, the rate will remain at $18.55/unit/month. Year two and three of the contract include 2.5% increases per year.
• The Village will reconcile on a quarterly basis the preceding three (3) month billing period of statements provided by Waste management with Village records. In the event of any discrepancy in said reconciliation between Waste Management and the Village, an adjustment will be applied to the next billing period.
• The Village will provide Waste Management with a list of uncollectable accounts and apply a credit against the monthly invoice for those units that were uncollectable.
• Waste Management will provide a monthly payment of Five Thousand and No/100 ($5,000.00) Dollars to the Village as a customer loyalty rebate.
• Damaged toters will be replaced free of charge.
• Trash containers will be provided free of charge to multi-family residences.
• Main Street Triangle Streets will be included in the Street Sweeping service.
Waste Management has provided continued exemplary service for the entire time that they have been under contract with the Village of Orland Park. Therefore, it is recommended that Waste Management of Illinois be awarded a three (3) year extension to its existing contract starting on November 1, 2010 through October 31, 2013.
On September 7, 2010, this item was reviewed and approved by the Public Works and Engineering Committee and referred to the Board for approval.
On October 4, 2010, this item was reviewed and moved to be continued until the October 18, 2010 Board meeting for approval.
I move to approve the extension of the Waste Management of Illinois contract for a three-year period beginning November 1, 2010 through October 31, 2013.
And
Approve Authorizing the Village Manager to execute the contract.
Trustee Dodge Amended the motion to read a:
Please see in minutes the following line item to see the votes for this amendment.
AMENDED MOTION ADDED:
Under Section 2, after "Customer Loyalty Rebate”, added:
Whereas both parties agree that adoption of industry best practices is a desirable outcome, and that further value is added when the public is informed of emerging technologies in waste hauling and recycling, Waste Management agrees to provide two reports per calendar year to the Village, set at a time and venue established by the Village. One presentation shall provide reporting data and information on statistics and trends in waste collection and recycling specific to the village of Orland Park, including benchmarking and comparable data with similarly-sized communities. The other presentation shall provide a structural review of emerging technologies in all aspects of waste avoidance, collection, hauling, and recycling.
Financial Impact
The charge for Waste Management’s services appears on resident’s bi-monthly water bills. The amount collected by the Village is then paid to Waste Management. Recycling revenues and the customer loyalty rebate are revenues to the Village, recorded in the Village’s Water & Sewer Fund.
Recommended Action/Motion
I move to approve the extension of the Waste Management of Illinois contract for a three-year period beginning November 1, 2010 through October 31, 2013.
And
Approve Authorizing the Village Manager to execute the contract.