98-224 Resolution No. 98-224
RESOLUTION
AUTHORIZING EXECUTION OF A SOLID WASTE COLLECTION SERVICES
CONTRACT AMENDMENT #10 WITH WASTE MANAGEMENT WEST
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, 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
#10 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: September 9 , 1998
Adopted: Sepetember 9 , 1998
Omnibus Vote: Yeas 6 Nays 0
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
Solid Waste Collection Services
Contract Amendment #10
City of Elgin
Collection and Disposal of Garbage and Refuse
Curbside Recycling Collection Program
This contract amendment (hereinafter referred to as "Tenth
Amendment" ) agreement is made and entered into this 9.3 day of
S, p(_, 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
March 31 , 2002; 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
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 TENTH AMENDMENT
conflict with the terms of the CONTRACT, in which case the
provisions of this TENTH AMENDMENT shall control .
2 ) Price reductions established in Contract Amendment #9
for 1998 will be retroactive to 4-01-98 and shall also include
Multi-family rates (at 75% of Garbage and Recycling prices) .
■•
3) Rate adjustments for 2000, 2001 , and the first 3 months
of 2002 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 3% in any given year. WMW
will document and substantiate the factors that impact collec-
tion operations . Typically, these are labor, fuel, equipment
and tipping fees . If WMW costs are lower than the CPI-U, WMW
will limit increases to those numbers they can substantiate. If
WMW costs are greater than the CPI-U, WMW will limit increases
to the published consumer index with the 3% cap still in place.
4 ) Dumpsters at all City Facilities will be serviced by
WMW without cost to the City, retroactive to 4-01-98 .
5) 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, excluding 1998 and 1999 . During leaf collection opera-
tions, WMW agrees to continue to provide a tub grinder and
maintenance to facilitate the processing of leaf bags at no cost
to the City.
The contract is hereby amended such that bagged leaves
will be picked up at curbside in 1998 and 1999 by WMW at a cost
of $20,586 . 88 ( $3 . 04/Stop x 6, 772 Stops ) from the following
subdivisions :
Century Oaks Country Trails Summerhill/
Century Oaks West Highland Glen Parkwood Farms
Cobbler' s Crossing, N&S Morningside Valley Creek
College Green Parkwood Woodbridge North
College Park Randall Ridge Woodbridge South
Country Brook Riverside Manor Woodland
WMW will also provide a 30% reduction on the curbside
charge in exchange for tipping all yardwaste at the City' s
compost facility (20, 235 Stops-6 ,772 Stops = 13,463 Stops X 87(P
= $11,712 . 81 x 30% = $3,512 . 84 ) . The total curbside charge is
$17 , 073 . 04 ( $20, 586 . 88 - $3,513 . 84 ) in 1998 and 1999 . WMW will
provide a 6 C.Y. dumpster at the compost site for the disposal
of any grass hauled to the facility.
WMW will provide roll-off trucks with a 30 C.Y.
receiving container and a driver at the rate of $72 . 00 per hour
in 1998 and 1999 . WMW agrees to provide trucks w/drivers at the
rate of $72/hour up to a total of $20 , 000 free in 1998 and 1999 .
6 ) The term of this CONTRACT for the Collection and
Disposal of Garbage and Refuse and Curbside Recycling Collection
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: 4%V a' / By:
ity Manager
Attest: //
City Clerk '
MDM0017/TEXT071/ELGINWAY.N2
•
City of Elgin Agenda Item No.
r, M
August 20, 1998
TO: Mayor and Members of the City Council
FROM: Joyce A. Parker, City Manager
SUBJECT: Solid Waste Contract Amendment #10
With Waste Management-West (WMW)
PURPOSE
The purpose of this memorandum is to provide the Mayor and
members of the City Council with information to consider
Contract Amendment #10 with Waste Management-West (WMW) .
BACKGROUND
Attached is a copy of a letter dated July 17, 1998 from WMW
which outlines additional savings to the recently approved
contract extension. WMW added the following features :
`o 1 . Free dumpster and trash container collection at all
City Facilities for the term of the contract, prus
retroactive to April 1, 1998 .
2 . Reduced Leaf Collection costs in 1998 and 1999 .
3 . CPI cap reduction from 5% to 396, thereby limiting
cost increases in 2000, 2001, 2002 (3 months) to the
lessor of 3%, the CPI-U, or WMW' s actual cost
increases .
The attached Contract Amendment #10 includes language for
these additional savings, as well as the reduced cost figures
for leaf collection services this fall . Savings were summa-
rized in our memo dated August 11, 1998 .
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None.
tow
Solid Waste Contract Amendment #10
August 20, 1998
Page 2
FINANCIAL IMPACT
The 1998 Budget includes $3 , 369, 550 for refuse disposal in
Account Number 010-3331-754 . 33-02 . Savings in this specific
account will amount to $305, 185 and is derived from $214 , 130
for 1998 single-family refuse pickup, $14 , 355 for 1998 multi-
family refuse pickup, $31, 800 for 1998 City Hall dumpster
pickup, $22, 200 for all 1998 City dumpster pickup and half of
$45, 400 ($22, 700) for the 1998 leaf program.
LEGAL IMPACT
None.
ALTERNATIVES
Do not accept the additional savings offered by WMW.
RECOMMENDATION
It is recommended that the City Council accept Contract
Amendment #10 with WMW and authorize staff to execute the
necessary document .
Rte- .ectfully submit ed,
s /2-
J.!e ° . Parker
City Manager
GWM:pn
Attachments
rah'
Waste Management-West A Waste Management Company
780 North Kirk Road
Batavia, IL 60510-1475
Tel: 800/414-5325
x 630/879-9353
(
July 17, 1998
Mr. Gary Miller
Public Works Department
The City of Elgin
150 Dexter Court
Elgin, Illinois 60120
Re: Solid Waste Collection Services
Collection Agreement Extension
Dear Gary:
We would like to clarify certain matters of discussion with you regarding our most recent
proposal. The Ninth Amendment to our contract was successfully approved by the Elgin
City Council on July 8, 1998. Subsequent to that action, we had spoken with you
regarding the details of our submission to guarantee the City of Elgin services and pricing
exceeding current market conditions. Waste Management agrees to provide the
following:
1.) The provision of dumpsters and services to all of the municipal facilities on
the attached list. These services will be provided at no cost to the City of Elgin for the
term of the agreement and retroactive to April 1, 1998.
2.) Dumpsters for yardwaste and the services indicated on the attached list will be
provided at no cost to the City of Elgin for the term of the agreement and retroactive to
April 1, 1998.
3.) Waste Management agrees to provide collection services for 58 of the City
trash containers indicated on the attached list. This service will be provided at no cost to
the City of Elgin for the term of the agreement.
4.) Fall leaf collection services will be provided. Waste Management agrees to
include up to $20,000 of services per season at a base rate of$72 per hour for a driver and
truck during 1998 and 1999.
r
A Division of Waste Management of Illinois, Inc. �i
IQ's a a WMI Service
Prm(ed on Pecyc'ed Paper
A Waste Management Company
5.) Curbside leaf collection for the 6,722 homes in specified areas will be
provided for at a rate of$3.04 per month during the leaf collection season,plus the 30%
reduction.
6.) There will be an expansion of the list of recyclables to include plastic
container resins#3, #4, #5 and#7. This does not include containers in which motor oils,
pesticides or chemicals have been stored, styrofoam packing "peanuts" or plastic
furniture and toys, etc. Additionally, residents will be able to place small household
batteries in a clear plastic bag next to their recycling bin. The expanded list of
recyclables service will be provided at no cost to the City of Elgin.
7.) A second recycling bin to promote waste minimization efforts will be
delivered to each household at no cost to the City of Elgin. The rectangular 18 gallon
bins will be delivered to Waste Management by 8/15/98 and distributed to the community
by 9/1/98.
8.) A new brochure will be designed to incorporate holiday schedules, the
expanded recycling program and an educational component. Elgin Staff will be involved
in the process and have approval over the final design. Literature in Spanish will also be
available. Additionally, our Customer Service Center has added bilingual capabilities.
9.) Incentive rebates for April, May, June and July 1998 will be paid in five
monthly payments from August-December, 1998. Starting August 1, 1998, we will
initiate the new single family and multi-family rates and free dumpsters, thereby
eliminating rebates during that period.
10.) Cost increases in 2000, 2001 and three months of 2002 will be limited to the
lessor of the Consumer Price Index-Urban Indices or Waste Management's actual costs
and not exceed 3%per annum.
11.) Waste Management will present $25,000 to the City of Elgin for the purpose
of supporting HHW collection in 1998 and each year thereafter during the term of the
agreement. This money will be deducted each year from the October payment.
inQ A Waste Management Company
12.) A comprehensive educational program for primary,junior high and high
school students will be initiated in 1998. The program will stress waste minimization,
recycling and environmental awareness. The City of Elgin will approve all materials and
lesson plans and a customized version could be offered to Elgin employees.
13.) Immediately on 7/15/98, Waste Management has ordered a new fleet of state-
of-the-art refuse side loaders to be delivered as soon as possible by the manufacturer and
the distributor.
Waste Management believes that these clarifications accurately depict our proposal in
detail. We feel that the City of Elgin has been presented with the best possible contract
terms for the community. A great deal of the credit for this outstanding agreement must
go to the tireless efforts of the Elgin Staff. They have always conducted themselves in a
professional manner and they are a pleasure to do business with.
Sincerely,
Vike 111,,
r
I
Al Bilthouse
Director of Operations