02-70 Resolution No . 02-70
RESOLUTION
AUTHORIZING EXECUTION OF AMENDMENT NO. 11 TO A SOLID WASTE
COLLECTION SERVICES CONTRACT WITH WASTE MANAGEMENT-WEST
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Olufemi Folarin, Interim City Manager, and Dolonna
Mecum, City Clerk, be and are hereby authorized and directed to
execute Amendment No. 11 to a Solid Waste Collection Services
Contract on behalf of the City of Elgin with Waste Management-
West for residential solid waste services through June 30, 2002 ,
a copy of which is attached hereto and made a part hereof by
reference .
s/ Ed Schock
Ed Schock, Mayor
Presented: February 27, 2002
Adopted: February 27, 2002
Omnibus Vote : Yeas : 7 Nays : 0
Attest :
s/ Dolonna Mecum _
Dolonna Mecum, City Clerk
Solid Waste Collection Services
Contract Amendment No . 11
City of Elgin
Collection and Disposal of Garbage and Refuse
Curbside Recycling Collection Program
This contract amendment (hereafter the "Eleventh Amendment" )
agreement is made and entered into this )?ht day of
6- m fir 2002 by and between the City of Elgin,
an Illinoi municipal corporation (hereafter "City" ) and Waste
Management West, a Division of Waste Management of Illinois,
Inc . , a Delaware corporation formerly known as "Elgin Wayne
Disposal" (hereafter "WMW" ) .
WHEREAS, the City and WMW previously entered into a Solid
Waste Collection Services Contract dated the 14th day of
February, 1990 entitled "City of Elgin Collection and Disposal
of Garbage and Refuse and Curbside Recycling Collection
Program, " (hereafter "the Contract" ) ; and
WHEREAS, the terms of the Contract currently extend until
31 March 2002 ; and
WHEREAS, the present terms of the Contract do not
accurately reflect changed economic conditions and the City' s
current municipal refuse needs; and
WHEREAS, the City has determined that it is in the best
interests of the City to amend the Contract to provide municipal
refuse collection on a more cost-effective basis to Elgin
residents; and
WHEREAS, the City and WMW have determined that it is in the
best interests of the respective parties to extend the Contract
until 30 June 2002 to enable the City to develop a request for
proposal (RFP) reflecting the City' s current municipal refuse
needs .
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 Eleventh Amendment
conflict with the terms of the Contract, in which case the
provisions of the Eleventh Amendment shall control .
2 . The term of the Contract for the Collection and
Disposal of Garbage and Refuse and Curbside Recycling Collection
Program shall remain in full force and effect through the 30th
day of June 2002 .
Therefore, the City and WMW mutually agree to modify the
Contract as outlined herein.
In witness , whereof, the parties to this Contract have caused
this Eleventh Amendment to be executed as of the day and year
set forth above .
OWNER CONTRACTOR
CITY OF ELGIN WASTE MANAGEMENT-WEST
By: 11
Cit Manaeer,
Attest : Attest :
n 7
It arl I r 4/1
City Clerk
.�-.c� OF F(C N
d`y� D 1 Agenda Item No.
City of Elgin
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L ',ui
flit. 11,
February 8 , 2 002 G tail I� L1
I 1 Dili 1
no 1 e
TO: Mayor and Members of the City Council N . 111 In V I
I
FINANCIALLY STABLE CITY GOVERNMENT
EFFICIENT SERVICES,
FROM: Olufemi Folarin, Acting City Manager AND QUALITY INFRASTRUCTURE
SUBJECT: Solid Waste Contract Extension with
Waste Management, Inc .
PURPOSE
The purpose of this memorandum is to provide the Mayor and members
of the City Council with information to consider a three month
contract extension with Waste Management, Inc . to provide
residential solid waste services through June 30, 2002 .
BACKGROUND
The City' s solid waste contract with Waste Management expires March
eim 31, 2002 . The current contract term runs from January 1, 1999 to
March 31, 2002 and includes two, two-year renewal options that
could potentially extend our agreement through March 2006 .
Services included in this contract agreement include the weekly
collection of garbage, recycling, yard waste, bulky items and
appliances from residential households with five or less units, as
well as solid waste collection from City owned buildings and parks .
Staff entered into contract negotiations with Waste Management in
October 2001 . The result of these negotiations, combined with
information obtained by staff about solid waste collection programs
and related costs in neighboring communities, has led staff to
believe that it would be in the City' s best interest to solicit
competitive proposals for solid waste service. While Waste
Management' s service has generally been good, this contract has not
been competitively bid since the City privatized refuse collection
services in 1990 .
In order to ensure that there is sufficient time to conduct a
thorough selection process, award a new contract, and have the
successful vendor implement service in a seamless fashion, a three
(3) month extension of the current contract agreement through June
30, 2002 is recommended. Waste Management has agreed to this
extension request under the terms and conditions of our current
contract .
F Solid Waste Contract Extension with Waste Management, Inc .
February 8, 2002
Page 2
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None.
FINANCIAL IMPACT
Under the terms of our current agreement with Waste Management, a
1 . 2% rate increase took effect on January 1, 2002 , bringing the
rate per single-family "stop" to $11 . 65/month during yard waste
collection season (April - November) , and $10 . 82/month for the
remainder of the year. The rate for a curbside multi-family "stop"
is $8 . 10/month, which is 75% of the single-family rate.
In 2002, $3 . 26 million has been budgeted for refuse services in the
General Fund, Public Works Department, account number 010-3331-
754 . 33-02 . It is estimated that $855, 000 is needed for the three
month contract extension.
LEGAL IMPACT
None.
ALTERNATIVES
City Council could choose to not approve the contract extension.
However, this option is not recommended since it would not allow
adequate time for a new contract to be awarded plus provide the
successful vendor time to prepare for initiation of service .
RECOMMENDATION
It is recommended that the City Council approve a three month
contract extension with Waste Management, Inc. , in an amount not to
exceed $855, 000, to provide residential solid waste collection
services through June 30, 2002 .
Respectfully submitted,
%NO \ .rte••.
- Oluf emi Fo'.. ' II
Actin. City Manager
TSP
Attachment