98-162 Resolution No. 98-162
RESOLUTION
AUTHORIZING EXECUTION OF A SOLID WASTE COLLECTION SERVICES
CONTRACT AMENDMENT #9 WITH WASTE MANAGEMENT-WEST
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that pursuant to Elgin Municipal Code Section
5. 02 . 020B( 6 ) the City Council hereby finds that an exception to
the requirements of the procurement ordinance is necessary and
in the best interests of the city; and
BE IT FURTHER RESOLVED that Joyce A. Parker, City Manager,
and Dolonna Mecum, City Clerk, be and are hereby authorized and
directed to execute a Solid Waste Collection Services Contract
Amendment #9 on behalf of the City of Elgin with Waste
Management-West for the collection and disposal of garbage and
refuse under the curbside recycling collection program, a copy
of which is attached hereto and made a part hereof by
reference.
s/ Kevin Kelly
Kevin Kelly, Mayor
Presented: July 8, 1998
Adopted: July 8, 1998
Vote: Yeas 5 Nays 2
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
I . . %
Solid Waste Collection Services
Contract Amendment #9
City of Elgin
Collection and Disposal of Garbage and Refuse
Curbside Recycling Collection Program
This contract amendment (hereinafter referred to as "Ninth
Amendment" ) agreement is made and entered into this ;0-0;1I- day of
3 v\ 1998 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
` December 31, 1998 ; 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 NINTH AMENDMENT
conflict with the terms of the CONTRACT, in which case the
provisions of this NINTH AMENDMENT shall control .
2 ) This amendment involves a three-year and three-month
agreement (January 1, 1999 thru March 31, 2002) with two
two-year options (April, 2002 thru March, 2004 and April, 2004
thru March, 2006) .
3) The term of the contract shall be extended from
December 31 , 1998 until March 31, 2002 , thereby ending after
the winter season. During the first three years and three
months of the contract extension, as well as for the last nine
months of 1998, the prices will be established as follows :
1998 (Apr-Dec) : Garbage = $7 . 83/Stop/Mo .
Recycling = $2 . 30/Stop/Mo .
Yardwaste = $0 . 52/Stop/Mo . (annualized rate)
Price reductions established herein during 1998 will be retroac-
tive to 4-01-98 . Those cost savings will be realized by the
City on a prorated basis during the last several months of 1998 .
1999 (Jan-Dec) : Garbage = Same as above
Recycling = Same as above
Yardwaste = Same as above
2000 (Jan-Dec) : Previous year figures adjusted by CPI figure
from August, 1999 .
2001 (Jan-Dec) : Previous year figures adjusted by CPI figure
from August, 2000 .
2002 (Jan-Mar) : Previous year figures adjusted by CPI figure
from August, 2001 .
4) Rate adjustments during the first three-year and
three-month contract extension shall be based upon the Bureau
of Labor Statistics Consumer Price Index for the Chicagoland
area (CPI-U) . The CPI-U rate increase shall not exceed 5% in
any given year.
5) The CPI adjustment will effect the following unit
prices :
1 . Curbside garbage
2 . Curbside recycling
3 . Curbside yardwaste
4 . Multi-family rates at 75% of the curbside rate for
garbage and recycling only. Yardwaste collections are
not included with multi-family units .
6) The following existing prices shall remain unchanged
during the 3-year and 3-month contract extension as follows :
Item Price
A. Grass Stickers $ 1 . 00 each
B. Appliances $25 . 00 each
C. Tires : Tire only $15 . 00 each
Each additional $ 5 . 00 each (per location)
Tire w/rim $20 . 00 each
Each additional $10 . 00 each (per location)
Tractor/Truck Tire $40 . 00 each
Each additional $10 . 00 each (per location)
D. Dumpsters (garbage) $ 4 . 25/C.Y.
E . Dumpsters (yardwaste) $ 4 . 25/C.Y.
F. Trash Cans $19 . 50 each/month
G. Recycling Bins $ 6 . 50 each
7 ) WMW shall distribute one new 18-gallon recycling bin
to each customer by 9-01-98 at no cost to the City.
8) WMW shall provide free 96 gallon covered carts to
replace approximately 225 existing 55 gallon drums in all the
City parks (approximately 49 sites) at no cost to the City.
Collection dates will vary with the dynamics of the season, but
will start with Monday, Thursday and Saturdays . The service
will be provided on a year round basis with the understanding
that service levels may be reduced during the winter months .
The number and/or size of garbage and yardwaste dumpsters at
existing Parks facilities may be eliminated or reduced and will
be collected at no cost to the City.
9 ) WMW will pay the City $25, 000 per year to help fund a
household hazardous waste collection event for Elgin residents .
10) WMW will purchase and utilize a new fleet of high
productivity side loader collection vehicles by 10-01-98 at no
additional cost to the City.
11) WMW will provide a recycling and waste minimization
educational program for the community, again at no cost to the
City.
12) The overall city-wide yard debris (yardwaste) collec-
tion program, including daily curbside service during city-wide
leaf collections (October & November) , shall be reviewed and
negotiated by both parties prior to the fall of each contract
year. During leaf collection operations , WMW agrees to contin-
ue to provide a tub grinder and maintenance to facilitate the
processing of leaf bags at no cost to the City.
13) For the previously implemented office paper recycling
program, WMW may expand the number of items to be collected in
all City offices , conduct a refresher course and instruct new
employees at additional City buildings as to proper recycling
procedures at no charge to the City as may be required by the
City.
14 ) For the previously implemented multi-family garbage
and recycling collection programs, WMW shall continue to add
additional pick-ups in new private developments per the exist-
ing contract through the term of this contract.
15) WMW will absorb the 12 remaining multi-family complex-
es which are presently being serviced by other haulers at 75%
of the contract rate for garbage and recycling, beginning on
1-01-99 .
16) The number of Stops will be re-calculated every six
months . The method to determine the number of stops assigned
to each building shall continue per previous agreement.
17 ) The curbside recycling program shall be expanded by
10-01-98 by adding the following items to the list of
recyclables to be collected:
A. #3, 4 , 5 & 7 Plastics
B. Household batteries
C. #6 (PS) Plastic is already included in the City
program. However, packaging "peanuts" in this catego-
ry are not included in the curbside program.
18) Dumpsters at the following locations will be serviced
by WMW without cost to the City:
A) City Hall
B) New Police Building
C) Public Works
D) Park Sites
19) WMW agrees to amend and provide copies of the City's
Solid Waste Booklet as changes are made to update the program
details .
20 ) 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 March, 2002 .
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
By:
v a
ity Manager
Attest: Attest: "� tivGt
City Clerk I
Waste Management-West A Waste Management Company
780 North Kirk Road
Batavia, IL 60510-1475
Tel: 800/414-5325
Fax: 630/879-9353
July 1, 1998
Ms. Joyce Parker
City Manager
The City of Elgin
150 Dexter Court
Elgin, Illinois 60120-6100
Re: Contract Clarification
Dear Ms. Parker:
Waste Management would like to clarify our position regarding increases in the year
2000 and 2001 of our proposal. Our proposal indicated that we would limit increases to
the Consumer Price Index - Urban Indices with a 5% cap per year. This practice is in
common use in our industry and has yielded annual increases of 2-3% for the past few
years.
A concern was expressed at the Committee meeting of June 24, 1998 that the CPI-U
might not accurately reflect the conditions in our industry and could negatively effect the
City of Elgin. Therefore, we are willing to document and substantiate the factors that
impact our collection operations. Typically, these are labor, fuel, equipment and tipping
fees. If our costs are lower than the CPI-U, we will limit our increases to those numbers
that we can substantiate. If our costs are greater than the CPI-U, we will limit our
increases to the published consumer index with the 5% cap still in place.
Waste Management offers these assurances because continuing our relationship with the
City of Elgin is of paramount importance to all of our employees and their families that
live and work in your community. We feel that our proposal is unique in the Chicago
marketplace and ensures a superior program for the residents of Elgin.
Thank you for your consideration in this matter.
Sincerely,
Al Bilthouse
Director of Operations
Pct—O-let �
A Division of Waste Management of Illinois. Inc
FilcycleAmenca
a WMI Service ��
`0 OF et.c.
`ey� City of Elgin Agenda Item No.
June 15, 1998
TO: Mayor and Members of the City Council
FROM: Joyce A. Parker, City Manager
SUBJECT: Solid Waste Contract
Waste Management West (WMW) Contract Extension
PURPOSE
The purpose of this memorandum is to provide the Mayor and
members of the City Council with information to consider
extending the present solid waste disposal contract with WMW.
BACKGROUND
Our current contract with WMW was initially executed on
February 14 , 1990 and expires on 12-31-98 . Staff was in the
process of preparing specifications to re-bid that contract in
July of this year. Based on figures from surrounding communi-
ties, we would expect to see lower prices as a result of the
bidding process . WMW has, however, submitted a proposal to
extend their current contract in lieu of rebidding.
The proposal submitted by WMW on 3-13-98 outlined price
reductions during 1998, the last year of their contract .
Their 101, reduction for garbage, recycled materials and
yardwaste would be firm thru 1999 as part of the proposed
contract extension. WMW is proposing a 3-year extension with
two 2-year negotiated extensions .
Reductions of the current contract costs will result in cost
savings to the City of $260, 285 in 1998 (April-December) and
$349, 885 in 1999 as outlined on our attachment . Also, other
services proposed by WMW represent a value to the City, or
incentives worth $493, 255 in 1998, and $345, 000 in 1999, again
as outlined on the attachment .
Under this proposal, the price for grass stickers in Elgin
would remain $1 . 00 each through 2001 . We compare this to
yardwaste stickers in Naperville which now cost $1 . 35 each,
for all brush and grass clippings . Elgin charges for only
grass clippings . The WMW proposal also includes the distribu-
tion of over 20, 000 new 18 gallon recycling bins to each
customer so everyone will have at least two bins .
Free collection from City Parks via 96 gallon covered carts to
replace existing 55 gallon drums is also included in the
proposal and would result in a much cleaner environment in the
Parks . The Parks Department currently utilizes two grounds
maintenance personnel to collect refuse in the parks .
Solid Waste Contract Extension Proposal
June 15, 1998
Page 2
WMW will participate in a yearly Household Hazardous Waste
(HHW) program ($25, 000/year) and will purchase a new fleet of
side loader trucks to improve collection efficiency and reduce
litter blown out of the trucks . WMW will provide further
education programs in the school system and will continue to
assist with our leaf collection program.
WMW was a co-founder of the Elgin Proud and Beautiful volun-
teer group in 1987 along with the City and Chamber of Com-
merce . During that time frame WMW representatives have served
as directors while providing thousands of dollars worth of
free disposal during our City-wide Clean-ups .
The possibility of a contractor change in January ' 99, with
key Public Works personnel retiring, causes us to be concerned
over the status of our solid waste program. Coordinating a
new solid waste contractor with personnel who have no experi-
ence in the matter and remobilizing in the middle of the snow
season could negatively impact service to the community.
Recent solid waste bids in Naperville and Aurora resulted in
changes in haulers for each community as follows . Naperville
lost WMW to the low bidder BFI, while Aurora lost BFI to the
low bidder WMW. The program in Aurora is volume-based where
garbage is paid by the homeowner via a sticker charge for each
bag or can. Due to the vast difference in contracts we did
not attempt to compare Aurora ' s volume-based program to our
unlimited volume program.
Naperville and Glendale Heights have similar programs and were
included in our price comparison (see attached sheet) . Each
program has new prices which are higher than the proposed rate
offered to the City of Elgin by WMW. Each program, however,
is slightly different as to costs for yardwaste, appliances,
dumpsters, trash cans, leaves, multi-family units and tires .
While the population of Naperville is greater than Elgin
(119, 000 vs 85, 000) , the volume of garbage alone collected is
less ( ' 96 : 65, 096 C.Y. in Naperville vs 72 , 915 C.Y. in Elgin) .
Therefore, the price in Naperville for garbage collection
($6 . 13) is less than the proposed price in Elgin ($7 . 83)
because less volume is hauled in Naperville per stop.
While the unit price for garbage pick-up is lower in
Naperville ($6 . 13 vs $7 . 83) , the cost per cubic yard for
removal is greater, $36 . 73/C.Y. in Naperville vs $25 . 98/C.Y.
in Elgin.
Another contractor performs curbside recycling in Naperville
for $3 . 80/Stop. Elgin' s proposed contract for recycling is
$2 . 30/Stop. Naperville residents must pay $1 . 35 for each
bag/bundle of yardwaste, including grass clippings . The City
of Elgin pays 52c/Stop for unlimited quantities of yardwaste
and residents pay $1 . 00 for each bag of grass clippings .
Solid Waste Contract Extension Proposal
June 15, 1998
Page 3
WMW has proposed an immediate savings program starting in 1998
along with incentives discussed above . These savings and
incentives in 1998 will be lost if the WMW proposal is not
accepted. Their proposal was made in March. WMW will honor
the proposal to the end of the year retroactive to April . The
price adjustments for 1998 would remain the same for 1999 .
All other prices such as dumpsters, tires, trash cans, appli-
ances, etc . would stay the same through 2001 .
The 3-year extension proposed by WMW covers 1999, 2000 and
2001 . Any increases after 1999 will be limited to the "Con-
sumer Price Index for the Chicago region" (CPI) , as are many
other solid waste contracts in the Chicago metro region.
While WMW is suggesting a 3-year extension, staff recommends
that the extension be valid until March 31, 2002 instead of
December 31, 2001 . This will prevent future disruptions
during the snow season when the City rebids the contract .
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
The following waste haulers have previously shown interest in
the City' s solid waste program and have been notified of the
City' s recommendation to extend WMW' s contract :
BFI, Flood Brothers, Area Disposal, Alliance, Superior
and Speedway. Letter from BFI to Mayor Kelly attached.
FINANCIAL IMPACT
The 1998 Budget includes $3 , 369, 550 for refuse disposal . The
savings to the City as offered by WMW is $260, 285, or 7 . 7% of
the total budget in 1998 . The 1999 savings total $349, 885 or
10 . 4% of the current contract value . Additional incentives
(tasks not currently included in the contract) in 1998 and
1999, have values of $493 , 255 and $345, 000 respectively.
Any increases in the solid waste contact for 2000 and 2001,
will be limited to the Consumer Price Index for Urban Consum-
ers - Chicago, or 5%, whichever is less .
LEGAL IMPACT
Approval of this proposal, under the terms of the City' s
procurement ordinance, requires a 2/3 majority vote .
Solid Waste Contract Extension Proposal
June 15, 1998
Page 4
ALTERNATIVES
1) Accept WMW proposal and prepare an amendment for a
contract extension.
Advantages :
- Savings and incentives realized in 1998 totaling
$753 , 540 .
- Avoid confusion of possibly switching waste haulers with
key personnel retiring.
- Better service than current contract .
Disadvantages :
Does not allow for receiving competitive proposals .
2) Bid a new contract .
Advantages :
- Test the market place and encourage competition.
Disadvantages :
- Possible to get a new hauler, with mobilization confu-
sion, possible new routes, different pick-up times, etc.
- Will not realize the $753 , 540 incentive and savings
package offered by WMW in 1998 .
RECOMMENDATION
It is recommended that the City Council accept the proposed
contract extension with WMW and authorize staff to execute the
necessary contract amendment .
Respectfully submitted,
•yc A. Parker
ity Manager
GWM/DL :mg
Attachments
6-12-98
WMW PROPOSAL/3-13-98
' 98 Savings ' 99 Savings
April-December January-December
1 . 20, 163 Stops/Month 1 . 20, 363 Stops/Month
x$1 . 18/Stop Savings x$1 . 18/Stop Savings
9 Months 12 Months
$214 , 130 $288, 340
2 . Multi-family Units : 2 . Multi-family Units :
$ 14 , 355 $ 19 , 140
3 . City Hall/EPD/PW Dumpsters 3 . City Hall/EPD/PW Dumpsters
$ 8, 810 $ 11, 750
4 . Parks Dumpster Collection: 4 . Parks Dumpster Collection:
$ 22, 990 $ 30, 655
$260,285 $349 , 885
Incentives - ' 98 Value Incentives - ' 99 Value
1 . Grass Stickers Stay @ $1 1 . Same
since 3-16-92
2 . Recycling Bins : $131,060 Single Fam2 . N/A ( 1-time deliv. in ' 98)
$ 12, 195 Multi ' s $0
$ 10, 000 Deliv.
3 . Citywide Parks Collection 3 . Same
( Including approx. 225 96 gal .
containers . )
$300, 000 $300, 000
4 . Parks garbage truck purchase 4 . Same
budgeted in 1998 is not needed.
No Estimate No Estimate
5 . Labor, used to collect parks 5 . Same
refuse, can be redirected.
No Estimate No Estimate
6 . Household Hazardous Waste 6 . Same
$ 25,000 $ 25,000
(To be credited to City if no HHW event occurs)
7 . New side load trucks . . . 7 . Same
less litter $ No Estimate $ No Estimate
8 . Educational Programs 8 . Same
in Schools $ 15, 000 (WMW Est. ) $ 20,000 (WMW Est. )
9 . WMW agrees to provide assis- 9 . Same
tance with the leaf collection
program at rates to be negot-
iated.
$ No Estimate $ No Estimate
10 . Tire pickup costs, never 10 . Same
increased since 1994, will
remain at $15/tire ($5 for
each additional) through
2001 .
11 . Appliance pickup costs, set 11 . Same
on 11-06-92, will remain at
$25/appliance through 2001 .
12 . Dumpster pickup costs, never 12 . Same
increased since 1990, will
remain at $4 . 25/cubic yard
through 2001 .
13 . Recycling will be expanded 13 . Same
to accept all plastic mate-
rial and household batteries .
14 . Trash can cost ($19 .50/mo. ) 14 . Same
and bin cost ( $6 .50 ea. ) to
remain unchanged from orig-
inal contract.
$493,255 $345,000
MDM0189 .A/TEXT071/MEMOTOMG.R