93-86 Resolution No. 93-86
RESOLUTION
AUTHORIZING EXECUTION OF CONTRACT AMENDMENT #3 FOR
SOLID WASTE COLLECTION SERVICES WITH WASTE MANAGEMENT - WEST
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Larry L. Rice, City Manager, be and is hereby
authorized and directed to execute Contract Amendment #3 on
behalf of the City of Elgin with Waste Management - West for
solid waste collection services, a copy of which is attached
hereto and made a part hereof by reference.
s/ George VanDeVoorde
George VanDeVoorde, Mayor
Presented: March 24, 1993
Adopted: March 24, 1993
Omnibus Vote: Yeas 6 Nays 0
Recorded:
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
Solid Waste Collection Services
Contract Amendment #3
City of Elgin
Collection and Disposal of Garbage and Refuse
Curbside Recycling Collection Program
This contract amendment (hereinafter referred to as "Third
Amendment" ) agreement is made and entered into this "/57- day of
/f,(Wq , 1993 by and between the City of Elgin, Illinois, a
municipal corporation, (hereinafter referred to as "City" ) and
Waste Management-West, a Division of Waste Management of Illi-
nois, Inc. , a Delaware Corporation formerly known as Elgin
Wayne Disposal (hereinafter referred to as "WMW" ) .
WITNESSETH, THAT WHEREAS, the CITY and WMW have previously
entered into a Solid Waste Collection Services Contract dated
the 14th day of February, 1990 for Collection and Disposal of
Garbage and Refuse and Curbside Recycling Collection Program,
(hereinafter referred to as the "CONTRACT" ) .
WHEREAS, the terms of said CONTRACT currently extend until
March 31, 1993; and
WHEREAS, the present terms of the CONTRACT do not accurate-
ly reflect changed economic conditions and current municipal
refuse needs of the CITY; and
WHEREAS, the CITY has determined that it is in the best
interests of the City to amend the contract with WMW to provide
municipal refuse collection on a more cost effective basis to
the residents of Elgin; and
WHEREAS, the amendment to the CONTRACT will also reflect
the impact of the CITY' s recycling program on municipal refuse
collection; and
WHEREAS, the CITY desires to extend the CONTRACT with WMW
to procure future municipal refuse collection for the residents
of Elgin at a determined rate;
NOW THEREFORE, in consideration of the mutual promises and
covenants contained herein, the sufficiency and receipt of
which are hereby acknowledged, the CITY and WMW agree that:
1) The CONTRACT shall remain in full force and effect
except to the extent that provisions of the THIRD AMENDMENT
conflict with the terms of the CONTRACT, in which case the
provisions of this THIRD AMENDMENT shall control .
2) The term of the CONTRACT shall be extended from March
31, 1993 until December 31, 1998 .
3) For the garbage collection service described in the
CONTRACT, the following charge will be made on a per stop per
month basis :
$7 . 75/stop/month April 1, 1993 - December 31, 1994
$7 . 98/stop/month January 1, 1995 - December 31, 1995
$8 . 20/stop/month January 1, 1996 - December 31, 1996
$8 .45/stop/month January 1, 1997 - December 31, 1997
$8 . 70/stop/month January 1, 1998 - December 31, 1998
4) For the curbside recycling collection service, the
following charge will be made on a per stop per month basis :
$2 .45/stop/month April 1, 1993 - December 31, 1995
$2 . 50/stop/month January 1, 1996 - December 31, 1997
$2 . 55/stop/month January 1, 1998 - December 31, 1998
5) The curbside recycling program shall be expanded on
April 5, 1993 by adding the following items to the list of
recyclables to be collected:
Corrugated Cardboard
Chipboard Boxes
Magazines
Telephone Books
Catalogs
Aluminum Trays/Foil Products
Kraft Paper Bags
6 ) As secure markets for other types of recyclable materi-
als (such as, but not limited to, #4 plastic, #6 plastic, high
grade paper) become available, WMW will add those items to the
curbside program at no additional cost to the City. WMW shall
provide the City with a statement every 6 months (beginning on
January 1, 1994 ) relative to the market availability of other
recyclable items for consideration by the City.
7 ) For the curbside yard debris (yardwaste) collection
service (excluding grass clippings) , the following charge (no
increase) will be made on a per stop per month basis :
$0 . 79/stop/month April 1, 1993 - November 30, 1994
(Collections performed April thru November each year. )
8) For the curbside grass clipping collection service,
the following charge (no increase) will apply to the homeown-
er/resident on a per sticker basis as set forth in Amendment
#1, approved by City Council action on March 25, 1992 :
$1 . 00 each sticker April 1, 1993 - November 30, 1994
(Collections performed April thru November each year. )
d
9) The overall city-wide yard debris (yardwaste) collec-
tion program, including daily curbside service, grass stickers
and city-wide leaf collection (October & November) shall be
reviewed and negotiated by both parties prior to February 1,
1995 .
10) WMW shall perform two "pilot" leaf removal programs as
outlined in the WMW letter dated January 19, 1993 and as
approved by the City in two neighborhoods in 1993 and 1994 at
no charge to the City to serve as a basis for a comprehensive
leaf pickup program in 1995 which is to be negotiated with the
City.
11) Collection of white goods shall continue by WMW as set
forth in Amendment #2, approved by City Council action on Octo-
ber 28, 1992, through July 1, 1994 . Prior to May 1, 1994,
white goods and tire disposal shall be reviewed and negotiated
with the City pending requirements of new legislation.
12) Unit prices for service on dumpsters, trash cans and
recycling bins supplied to the City shall be frozen at current
prices (as listed below) thru December 31, 1998:
Dumpsters $ 4 . 25/C.Y.
Trash Cans $19 .50 Each/month
Recycling Bins $ 6 . 50 Each
13) For the previously implemented office paper recycling
program, WMW shall expand the number of items to be collected
in all City offices, conduct a refresher course and instruct
new employees as to proper recycling procedures at no charge to
the City by September 1, 1993 .
14) For the previously implemented multi-family recycling
program, WMW shall continue to implement additional programs in
private developments per the existing contract through 1998 .
15) The number of Stops will be re-calculated every six
months, with the next adjustment to be made on July 1, 1993,
and every six months thereafter. The method to determine the
number of stops assigned to each building shall continue per
previous agreement.
16) WMW will respond to any future request from the City
for a proposal for solid waste volume-based billing.
17 ) The term of this CONTRACT for the Collection and
Disposal of Garbage and Refuse and Curbside Recycling Collec-
tion Program shall remain in full force and effect through the
31st day of December, 1998 .
Therefore, the City and WMW mutually agree to modify the CON-
TRACT as outlined herein.
In witness whereof, the parties hereto have caused this AMEND-
MENT to be executed as of the day and year hereinabove set
forth.
OWNER CONTRACTOR
CITY OF ELGIN WASTE MANAGEMENT - WEST
Adir
By: By: �- -
ity meager Z t v
Attest: �� Attest: . ��
City Clerk INNIOININNOft
'DFNCIAt S l"
NNNETTE f. UCKER
MDM0007/TEXT071/ELGINWAY.N2 BobD4 State of ID no;s
�qi/a Ma►. 10. 1994
. .
•
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A ge n da Item No.
o :
f
February 19, 1993
MEMORANDUM
TO: Mayor and Members of the City Council
FROM: City Manager
SUBJECT: Solid Waste Hauling Services
Waste Management - West
Proposed Expanded Service Contract Extension
PURPOSE: This memorandum will provide information whereby the
Council may consider an expanded contract extension to the
existing solid waste contract with Waste Management - West
(WMW) .
BACKGROUND: When the City originally requested bids in Octo-
ber, 1989 for garbage and recycling services, the intent was to
secure a hauler who would provide specific unit prices for
three years. Thereafter, negotiated prices for a fourth and
fifth year were to be considered.
At your meeting on January 27th, Council approved a fourth
and fifth year to the existing contract. That WMW proposal
included a three percent increase per year on only the garbage
and refuse section of the contract. Present prices for recy-
cling, lawn debris (yardwaste) , dumpsters, trash cans and extra
recycling bins would remain the same for two years. WMW also
agreed to add corrugated cardboard to the recycling program
with no increase in the unit cost.
The collection of White Goods containing refrigerant gas
would continue as previously agreed, but would be reviewed
prior to the ban of all white goods (and tires) in July, 1994 .
WMW also agreed to conduct pilot programs for leaf collection
in specific neighborhoods in 1993 and 1994 .
Staff was directed to further explore a multi-year con-
tract expansion which was proposed by WMW. The WMW plan in-
cludes garbage collections which would continue with an annual
increase of 3% in '93 and each year thereafter beginning in ' 95
per the attached letter dated February 18th. Recycling materi-
als would be expanded with no increase for three years per the
attached summary sheet. Thereafter, a 2% increase would go
into effect on the fourth year ( 1996) and again during the
sixth year ( 1998) .
MAYOR AND MEMBERS OF THE CITY COUNCIL
February 19, 1993
Page 2
Lawn debris (yardwastes) would continue at the present
rates through 1994 . Leaf collection would be reviewed prior to
1995 and a contract amendment entered into based upon actual
and expected costs at that time.
FINANCIAL IMPACT: The City would be guaranteed an overall
price increase of 12 .9% for 5.67 years on the solid waste
contract. The recycling program would be greatly expanded with
only a modest increase over the next six years (see attached
sheet) . Other specific unit prices would be frozen at the
current rates during the next 5.67 years. However, even though
the City is protected by the guaranteed rates, staff is not
comfortable with such a large negotiated portion of the con-
tract regarding lawn debris and leaves as proposed.
RECOMMENDATION: Based upon our discussions and negotiations
with WMW, staff recommends not proceeding with the multi-year
extension to the contract through 1998 . We will benefit by
means of an experimental pilot program for leaf collection in
'93 and '94 which will reduce our future operating costs .
However, staff was desirous of developing a definite plan for
City-wide leaf pick-up by WMW in 1995. We do not wish to enter
into a contract with so much to be negotiated.
\\Z7Th
Larry Rios ity Manager
LLR:GWM:mg
Attachments
MDM0130/TEXT071/MEMOTOCN.0
r
Waste Management-West
780 N. Kirk Road
Batavia, IL 60510-1475 A Waste Management Company
08/879-9190••742-8492
5/356-0000
rAX: 708/879-9353
February 18, 1993
Mr. Jim Kristiansen
Director of Public Works
City of Elgin
150 Dexter Court
Elgin, IL 60120
RE: Revised proposal for expanded service
Dear Jim:
Thank you for the time spent reviewing our proposed 5 year plan for the management of solid
waste from the City of Elgin. I have carefully reviewed the concerns you mentioned. I have
included a revised spread sheet to more accurately reflect the cost breakdown within the service
parameters we discussed.
I am willing to freeze the $.79 per unit price for yardwaste for the duration of the contract.
This guarantees that the City's cost for yardwaste disposal will not increase during this 5.67 year
time period.
We have agreed to a pilot leaf collection program in two sectors of the city for 1993 and 1994.
This pilot program will take some burden from the City on leaf collection cost as well as give
us an opportunity to learn how to efficiently provide this service. I am not able to guarantee a
total leaf program for 1995, as I have no history to base this proposal on. I do, however, agree
to review this portion of the proposal again following our 1993 test program results.
We are also including a draft of an update on the additional recyclable items included in this
expanded program. The addition of these items along with our commitment to add more items
as secure markets are confirmed, insure compliance with the State and County solid waste
reduction goals.
Under this expanded program, Elgin will be recycling glass bottles (clear, brown and green),
newspaper, aluminum cans, tin tans, bimetal cans, aluminum foil, aluminum trays, H.D.P.E.
plastic bottles, PET plastic bottles, cardboard, cereal boxes, kraft paper bags, magazines and
phone books. These 16 items account for the vast majority of recyclable volume being
generated in the home.
nyallet eiN
r
Recycle America)
® a WMI Seme ���
a Division of Waste Management of Illinois, Inc.
Printed on recycled paper
1QII A Waste Management Company
It is our commitment to provide the highest level of service to the residents of Elgin and to
support the city efforts in educating and informing the residents on issues relating to solid waste.
We can be available to review this updated proposal at your earliest convenience. Please contact
either Cathy George or myself to set a time to review the proposal.
Sincerely,
/."-4,----*--- --ry:.: s
Frank McCoy
Division President and General Manager
WASTE MANAGEMENT-WEST
r
r
1
CITY OF ELGIN
Expanded Service With Guaranteed Pricing
Proposed by WASTE MANAGEMENT-WEST
Service Date: Monthly Cost Per Stop: Cost Per Municipal
(Projected for REFUSE RECYCLE YW Excluding GRASS LEAF Stop/Mo. Bldgs&
5.67 years) COST COST Grass Clippings CLIPPINGS DISPOSAL To City Litter Baskets NET EFFECT
1992- $1.00 per No
1993 Rate: $7.52 $2.45 $0.79 sticker $0.00 $9.97 Increase
1993 April $7.75 $2.45 $0.79 I. None $10.99 No increase of 2.3% ....
May $7.75 $2.45 $0.79 $1.00 per None $10.99 Increase $.23/stop per month,
June $7.75 $2.45 $0.79 sticker None $10.99 " • including expanded
July $7.75 $2.45 $0.79 None $10.99 recycling program.
August $7.75 $2.45 $0.79 " None $10.99 "
September $7.75 $2.45 $0.79 None $10.99 "
October $7.75 $2.45 $0.79 " (Pilot $10.99 "
November $7.75 $2.45 $0.79 " Leaf $10.99 "
December $7.75 $2.45_ $0.00 Program) $10.20 "
1994 Jan.-Mar. $7.75 $2.45 $0.00 $1.00 per $10.20 No No increase to City
April-Nov. $7.75 $2.45 $0.79 sticker (Pilot $10.99 Increase
December $7.75 $2.45 $0.00 Program) $10.20 "
1995 Jan.-Mar. $7.98 $2.45 $0.00 To Be To Be $10.43 No increase of 3%....
April-Nov. $7.98 $2.45 $0.79 Reviewed Reviewed $11.22 Increase $.23/stop per month
December . $7.98 $2.45 $0.00 $10.43 for refuse onl .
1996 aMar. $8.20 $2.50 $0.00 To Be To Be $10.70 No increase of 2.58%....
April-Nov. $8.20 $2.50 $0.79 Reviewed Reviewed $11.49 Increase $.22 for refuse,
December $8.20 $2.50 $0.00 $10.70 $.05 for recycling
1997 Jan.-Mar. $8.45 $2.50 $0.00 To Be $10.95 No increase of 2.3%....
April-Nov. $8.45 $2.50 $0.79 To Be Reviewed $11.74 Increase $.25 for refuse
December $8.45 $2.50 $0.00 Reviewed $10.95 NO increase to recycle
1998 Jan.-Mar. $8.70 $2.55 $0.00 To Be To Be $11.25 No increase of 2.74%....
April-Nov. $8.70 $2.55 $0.79 Reviewed Reviewed $12.04 Increase $.25 for refuse,
December $8.70, $2.55 $0.00 $11.25 ii $.05 for recycling
increase of only
12,9%over 5.67 years
or...$1.28 per stoplrno,<
Proposed Items
In Expanded Recycling Plan :
CURRENTLY ACCEPTED PROPOSED NEW ITEMS
*Newspaper including all inserts *Corrugated Cardboard
*Aluminum Cans —Boxes cut down to fit in truck
*Tin/Steel Cans *Magazines
*Bi—metal Cans *Telephone Books
*Clear Glass *Chipboard Boxes
*Green Glass —Cereal boxes, Shoe Boxes, Paperboard, etc.
*Brown Glass *Catalogs
*HDPE (#2) Plastics *Kraft Grocery Bags
—Milk and Water Jugs *Aluminum Foil and Foil Products
—Colored Laundry Bottles
*PET (#1) Plastics
—1,2,& 3 Liter Size
NOTE:
Additional items will be added to the Recycling Program as secure markets
develop for these materials.
•
e Management-West
• N. Kirk Road I/C�
-atavia, IL 60510-1475 / A Waste Management Company
708/879-9190 • 742-8492
815 815/356 56-000000
FAX: 708/879-9353 ‘ZI
January 19, 1993
Mr. Jim Kristiansen
Mr. Gary Miller
Department of Public Works
CITY OF ELGIN
150 Dexter Court
Elgin, IL 60120
RE: Addendum to Proposal dated December 30, 1992
Dear Jim and Gary:
Our proposal dated December 30, 1992 requested the consideration by the Council of two
alternative amendments to our solid waste and recycling contract. The intent of this letter is to
clarify and expound on some of the points in our proposal.
SUMMARY OF THE PROPOSALS
ALTERNATIVE #1: (A two year proposal through 1995)
A) Increase of 3% per year for residential refuse portion of contract only. Overall increase
of only $.46 in two (2) years time.
B) NO INCREASE in yardwaste price for two (2) years.
C) NO INCREASE in recycling price for two (2) years.
D) Addition of corrugated cardboard boxes in the curbside recycling collection in Elgin.
The projected cost to Waste Management-West of this addition would be:
Estimated hauling/processing cost: $7,755.00/month
Estimated Revenue Received from Sale of Cardboard: -$3.878.00/month
Estimated Cost to Add Cardboard: $3,877.00/month
or $46,524.00/year
As you can see, this translates to a cost of$.20 per stop per month in Elgin that will NOT be
passed on to the resident.
Wald /1111111
Recycle America)
a WMI Service r1
a Division of Waste Management of Illinois, Inc.
Printed on recycled paper
A Waste Management Company
ALTERNATIVE #2: (A long-range proposal through 1998)
A) Overall increase of 15.7% in 5.7 years (April 1993 through December 1998) for
residential refuse portion of contract only.
B) NO INCREASE in yardwaste price for two (2) years.
C) NO INCREASE in recycling costs for the first three (3) years.
D) Overall increase of only 4% in five (5) years for recycling program, or an average
increase of .8% per year.
E) Upgraded material processing capabilities and the addition of up to six (6) recyclable
products.
F) NO INCREASE in the cost of other services, including pickup from City facilities, office
paper recycling, recycling bins, etc.
LEAF COLLECTION
An option to both alternatives listed above would be the implementation of a "Pilot Program"
for leaf collection in conjunction with the City program that takes place in October/November.
The goal of this program would be two-fold. The program would be conducted at the same time
as the City-wide leaf collection to assist in accelerating the rate at which leaves are collected.
It would also help ease the burden of cost placed on the City crews and equipment by
streamlining the collection process somewhat. Our goal is to test new and innovative equipment
being designed just for this purpose. The neighborhoods within the City of Elgin are diverse
enough to be the perfect testing ground for a wide range of experience in leaf collection.
The "pilot" leaf programs would be broken down into two groups. The costs associated with
these "pilot" programs would be as follows:
ZONE #1:
A designated area on the east side of Elgin encompassing Parkwood, Country Trails, Summerhill
and Parkwood Farms subdivisions, and others. This area was chosen because of the lighter
volume of leaves, newer homes, smaller trees and wider streets. Leaves would be collected in
bags only, on the same collection day as the refuse pickup. Bags would be provided by the City
of Elgin and the cost subsidized by Waste Management-West. Collected yard waste would then
be transported to a Waste Management-West compost facility for disposal.
Estimated Cost to Waste Management-West:
A) 5,000 biodegradable kraft bags
at approximately $.25 per bag: $1,250.00
B) Disposal of Leaves
(3) weeks designated with one pickup per week. (15-18 truckloads, total)
Disposal Cost per truckload is $237.00
Estimated 16 loads @$237.00/load: $3,792.00
C) Labor/Collection Cost
60 hours @$60.00 per hour: $3.600.00
TOTAL COST (ZONE #1) $8,642.00
ilipr
A Waste Management Company
ZONE #2:
A designated area on the West side of Elgin. Boundaries to be:
East of McLean Blvd., West of Route 31.
North of Highland and South of Wing Street.
This area was designated to be representative of an older, more established neighborhood with
mature trees, heavier volume of leaves, and less maneuverability due to parked cars on the
street. Leaves would be collected in this area in bulk during a specified three (3) week period.
Residents would continue to rake their leaves to the curbline as they have in the past. Collected
leaves would then be transported to the City's compost facility for disposal in bulk.
Estimated Cost to Waste Management-West:
LABOR A) First Collection Week-Heavy Volume
15 Employees @8 hours per day: 120 hours
B) Follow-up Collection-Lighter Volume
6 Employees @8 hours per day (2 days): 96 hours
216 hours
C) Street Sweeping of the area after clean up to clean
Curbline: 16 hours
16 hours sweeping @$87.00 per hour: $1,392.00
216 labor hours of collection @$60.00 per hour: $12.960.00
TOTAL ESTIMATED COST: $14,352.00
DISPOSAL D) No Cost for Disposal if disposed at City compost facility.
TOTAL ESTIMATED COST FOR PILOT LEAF COLLECTION PROGRAM:
ZONE #1: $ 8,b42.00
ZONE #2: $14352.00
$22,994.00
Once again, we appreciate the opportunity to review this proposal with you. If you have any
questions regarding the enclosed information, please feel free to contact me at (708)879-9190.
Sincerely,
;-/— o.-_ -DrIC U,.
Frank McCoy
Cathy George
WASTE MANAGEMENT-WEST