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HomeMy WebLinkAboutSpecial 2006-12-11 Item 5D - Agreement - Solid Waste Service Proposal with Allied Waste COUNCIL AGENDA SYNOPSIS 0 J am Z Initials ITEM NO. 10,80 X80 Meeting Date Prepared by 1 Mayor's review I Council review cc: +A %ir i s j 12/11/06 1 FI 3k I 1 5 of ITEM INFORMATION CAS NUMBER: 06-150 IORIGINALAGENDA DATE: DECEMBER 11, 2006 AGENDA ITEM TITLE Solid Waste Contract Proposal CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date 12/11/06 Mtg Date 8/21/06 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P&R Police PW SPONSOR'S The City's solid waste collection and recycling contract with Allied Waste (Sea -Tac SUMMARY Disposal) is scheduled to expire on April 1, 2007. Allied Waste submitted an unsolicited proposal to continue providing service to the City beyond April 1, 2007. The proposal contains several new elements that will significantly improve residential, multi family, and commercial recycling along with customer service while maintaining low rates. The only change involves an increase in costs for the 10 -40 cubic yard "drop box" containers. REVIEWED BY COW Mt CA &P Cmte F&S Cmte ❑Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 12/05/06 RECOMMENDATIONS: SPONSOR /ADMIN. Forward to full Council for discussion and decision. COMMITTEE Unanimous approval for Option 1; forward to 12/11/06 meeting. COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED 0.00 $0.00 $0.00 Fund Source: Comments: MTG. DATE 1 RECORD OF COUNCIL ACTION 12/11/06 1 MTG. DATE I ATTACHMENTS 12/11/06 Information Memo dated November 28, 2006 w /15 attachments Utilities Committee minutes December 5, 2006 Q: \2006 \CAS Solid Waste Contract Proposal 12- 07- 06.doc INFORMATION MEMO To: Mayor Mullet From: Public Works Director Date: November 28, 2006 Subject: Solid Waste Contract Proposal ISSUE Should City approve Allied Waste's Solid Waste and Recycling Contract Proposal? BACKGROUND On February 10, 2006, Allied Waste (Sea -Tac Disposal) submitted an unsolicited proposal to continue providing solid waste and recycling services to the City beyond April 1, 2007, when their current contract expires. On March 27, 2006, Council directed staff to negotiate a contract with Allied Waste. DISCUSSION After several meetings and telephone communications, Allied Waste submitted their best and final offer on November 13, 2006. The following is a summary of services that would be provided under the proposed contract: Conversion of the current recycling system from 32 -gallon containers and glass bin to a fully commingled system utilizing new 96- gallon wheeled carts. NEW Addition of more materials to the recycling stream, including scrap electronics, egg /milk cartons, plastic dairy tubs (yogurt, margarine, etc.), textiles, etc. NEW Annual curbside collection events for bulky wastes /white goods, scrap metal, and yard waste from Single family Residential customers without charge. NEW Semi -annual special clean -up /pick -up events that will include large drop -box containers placed at central locations in the City so residents can dispose of scrap items. NEW Discounted code enforcement clean -ups. In residential areas designated by the City, Allied Waste will support up to ten (10) clean -up events. They will provide drop -box containers and waive delivery and rental fees. City will be responsible for paying the disposal fee charged by the transfer station and part of the hauling cost. NEW Provision for a robust, customer friendly internet site. NEW Develop, design and promote a recycling outreach program for commercial/multi- family customers. NEW Significantly improved customer service. NEW Continued solid waste services to City facilities. IN CURRENT CONTRACT Mayor Mullet Page 2 November 28, 2006 Allied Waste's offer assumes three key points. First, the proposed contract is based on a five- year term with a one -year extension at the City's option. The current contract is a four -year contract with a two -year extension. Second, except for additional services summarized above, the Residential, Multi family, and Commercial garbage, yard waste, and recycling services remain as per the current contract. Finally, except for the 10-40 Cubic Yard Non compacted Container service, the Residential, Multi family, and Commercial rates will be based on current contract rates (see Attachments 1 -11). ANALYSIS In terms of the overall services that will be provided to the City, Allied Waste's offer represents a significant improvement over the current contract. The proposed contract contains provisions that are designed to enhance customer service. Specifically, the proposal contains extensive reporting requirements, standards for handling customer calls /complaints, and provisions for liquidated damages in the event standards are not met. The website will be revamped to provide more information such as collection schedules, contact information, rates, available services, inclement weather service changes and other relevant service information. The website will be redesigned to allow customers to address service and billing issues online. Recycling will be a key element in the proposed contract. Recyling will continue to be embedded in Residential and Multi family rates. As indicated above, more items will be added to the recycling stream. The proposed contract contains a provision that will help promote recycling to residents and businesses. In an effort to boost commercial recycling, Allied Waste has agreed to provide, within one month of contract commencement, a detailed work plan that outlines their commercial recycling promotion efforts. The plan will be reviewed and approved by the City. To help with City clean-up events, Allied Waste agreed to support an annual curbside collection event and semi annual drop box collection events. These events will allow residents to dispose bulky items that are not part of normal collection service and will reduce the cost of dump passes. Under the proposed contract, Allied Waste will provide Residential, Multi family, and Commercial solid waste, yard waste and recycling services at the current rate. The change involves the 10-40 cubic yard, non compacted containers. The per haul fee for these containers will increase approximately 55.5% from $64.30 to $100. This increase will affect primarily commercial customers. As indicated in Attachment 12, Allied Waste's proposed rate increase will cause City of Tukwila's rates to be one of the highest for the 10-40 cubic yard, non compacted container category. In summary, the enhancements offered by Allied Waste represent significant value to the City. When compared to the rates of selected cities that are part of the King County Solid Waste Mayor Mullet Page 3 November 28, 2006 System (see Attachments 13 -15), the City's overall Residential, Multi family, and Commercial rates appear to be within acceptable range. CONCLUSION At this point, negotiation has been completed. Council has two viable options: Option 1 is to approve Allied Waste's proposal. As stated earlier, the 10-40 cubic yard non- compacted container service will increase approximately 55 but the overall proposal contains considerable enhancements and competitive rates. Option 2 is for Council to reject Allied Waste's offer and direct staff to solicit solid waste and recycling services through a competitive process. The advantage to this option is the potential for lower rates and more services. The disadvantage to Option 2 is the risk that rates may increase. This summer, the two major haulers, Allied Waste and Waste Management settled labor disputes with the union. The settlement, coupled with increased fuel costs resulted in higher operational expenses for both companies. If Option 2 is selected, these two major companies more than likely will bid for the services. In order to maintain their competitive edge, we can expect them to factor the significant labor and fuel costs into the proposed rates. RECOMMENDATION Forward to the Utilities Committee and Committee of the Whole for discussion and decision. FI:ad attachments: 1 -11: Residential, Multifamily, Commercial Rates 12: 10-40 Cubic Yard, Non compacted Container Comparison 13 -15: Residential, Multifamily, Commercial Rate Comparison (P.atia\uC 120506 Solid waste Connect Pmpxl) 1i 1 �tW N O j n 0\0 C� t 3 �D i 1 r t N a 93 7 4 t Y` i OI 9y t Sy� p N 1 �t eo GPI 1 1 0t t 4„ N@ p n 0 1 r4 j t 5 r, I r p t 1 c 1 i N ^j 1 j i j i p I I R' N I z l 1\ y 1 �o �j�� 1 '1 '1 c a D I r ^3 1. 1 1 1 r t e o' 1 1 t n; 13 S es a' C�4 t t i s t t 4 ,n I G `t IQ 1 1 4 t 4 G 9' CO N1.P 0) r .e tD N t i 1 y 3 t �i 1 g i N N t'1 N QO m "c 1 v 1 1 9) O c(31 si\{ N 4D 1 t2 N O N r',) ip �j, c; CA tD CD G+'t I I 91 1 S OP 9 co zy\ (s) j.P 1 1 1 p I p j 4 1 t ���jj4fl r j tD t t 1� 1 1 t n o o 01 (SI O 4dj p j W UV W C if -d� i r', t tD C 1 O, to W 1 t t cD i r 0) 75 i i O OI0\ .i t ua, I i rn oat 0 4 fli t I °'t t H 1 _4o N 0) W w 0 40 4 l X01 I 1 -1 �4 Rio X c•` 1 i 1 'O n Sv 1� m 1 mN. 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I CO 50174 >c i I (D- 0;03100 m V A 0 0 0-4 V 0 0 0 (010 1 0 0 0 -4103 010 /D 0 10 A O 0 N NIA N mIAIW (010 I ATTACHMENT 9 COMMERCIAL RATES I i Pounds 1 Per 1 Per Pick -up 1 Per per 1 Pick -up 1 Collection 1 Pick -up Temporary Service 1 Can /Unit 1 Disposal Feel Fee 1 Rate 1 YD 1 1251 5.16 1 6.621$ 11.78 1.5YD 1 187.51 7.73 1 7.711$ 15.44 2YD 1 2501 10.311$ 9.421$ 19.73 3 YD 1 3751 15.47 1 12.59 1 28.06 4 YD j 500 20.63 1 15.68 1 36.31 6 YD 1 750 30.94 1 19.08 1 50.02 8 YD 1 10001 41.25 1 23.83 65.08 10 YD 1 1 100.00 100.00 15 YD 1 100.00 1 100.00 20 YD 1 1 100.00 1 100.00 25 YD 1 1 100.00 1 100.00 30 YD 1 1 100.00 1 100.00 40 YD 1 100.00 1 100.00 1 YD RENT /Day 1 1.10 1.10 1.5 YD RENT /Day 1 1.10 1.10 2 YD RENT /Day 1 1 1.10 1.10 3 YD RENT /Day 1 1 1$ 1.10 1$ 1.10 4 YD RENT /Day 1 1 1$ 1.10 1$ 1.10 6 YD RENT /Day 1 1 1$ 1.66 1$ 1.66 8 YD RENT /Day 1 1 1.92 1 1.92 10 YD RENT /Day 1 1 2.47 2.47 12 YD RENT /Day 1 1 1 2.47 1 2.47 15 YD RENT /Day 1 1 1 2.47 1 2.47 20 YD RENT /Day 1 j 2.47 1 2.47 25 YD RENT /Day 1 1 2.47 1 2.47 30 YD RENT /Day 1 1 1 3.87 1 3.87 40 YD RENT /Day 1 j 1 4.13 4.13 Delivery 1- 8 Yard j I 1 29.18 Delivery 10 40 Yard 1 1 29.89 I i Disposal Fee is passeed on to customer at cost. 1 1 1 i ATTACHMENT 10 COMMERCIAL RATES I I I I 1 1 Pounds 1 1 per 1 Monthly 1 Collection 1 Total Service Level 1 Can /Unit 1 Disposal Feel Fee 1 Rate Bags !Each 1 0.99 1 1.16 1 2.15 Box 'Each 1 0.99 1 1.16 1 2.15 Bulk I Each 1 5.36 1 7.62 1 12.98 Bulk Minimum Fee !Each 1 8.25 1 10.80 1 19.05 Cans ;Each 1 0.99 1.16 1 2.15 Distance 1 Unit I 1 0.26 Drive in ;Flat I 1 1.31 Gate 'Each 1 1 1 1.20 Keys 1 Each 1 1 5.51 L/D 'Each 1 22.02 Lock !Each 1 1 1 16.51 Milage over 10 jEach 1 1 1.72 Overtime I Each 1 1 41.89 Overtime Minimum Fee 'Each 1 1 1 167.55 Overhead Cans 1 Units 1 0.26 Plac 1 Each 1 29.89 Return Trip- Container 'Each 1 10.90 Retum Trip -Drop Box 1 Each 1 1 1 21.96 Return Trip -Can !Each i 1 1 8.09 Roll Charge 1 Each 1 1 1 2.43 Sanitize Yard 1 1.18 Steps 1 Units 1 0.05 Sunken Can 1Each 1 1 1 0.26 Time Charge 1 Each 1 1 79.92 Time Charge Minimum Fee 1 Each 1 39.97 Wash 1 Each j 1 2.05 Wash Minimum Fee 1 Each I 1 12.17 Extra Man 1 Each 1 34.76 Yard 1 Each 1 1 1 13.53 Yard Minimum Fee (Each 1 1 1 19.88 95 Gallon Yardwaste 1 68 1 2.78 1 2.15 1 4.93 Delivery 1- 8 Yard 1 I 1$ 29.18 1$ 29.18 Delivery 10 40 Yard 1 1 1 29.89 1 29.89 ATTACHMENT 11 Bulky Items White Goods Rate Per Service Level Item Pick up by Appointment Non Freon 32.99 Pick up by Appointment w /Freon 43.99 Next Day Pick -Up (includes freon items) 65.98 *As stated in current collection agreement e to \°3 e t a D r 0 Itti 0 1 le C t 0, ec 0 IA TA tA et cso to to 0 n 0) r° 9 V) sr 00 Crs b 41 NO -3 V w N W i to c4 1 d eo 5. 4' a CA tA 7:1 to p a b t r1 O a o 44 to r a a tN 0 W 0 Q N 0 W e0 Cr, N b o ss 1 p N N a W 1 1 W N O ta N G a 14 04 co a a fi 04 so 0' S A N 14 \--j) 7% %cA1 o c), 0 so y w it 1 6y +�1 ,0 41 �!N.�N1N N1' 1 co 91'1cl� I (0, a 1 1 i 1 o t� !'1 t 1 1. 1 1 t I, 1 1! 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N V 001 O.(DINI(O OI 1 I O.(O A V N'N .A O N!N!OIA N,O 1 1 i 1 I 1 1 m ....F.-7 m i 1, A'W Ii W W"W!N I I I .O_(0 •(O N A 01 V W'O!W (l1 N N1+ 1 0:(0 A •00 W.N •NWO1O (O •O 11W 1 1 X I 1 I i 2 j i9 1 I Q. .A.A A AIN;+ O c :NIV O N 10:(D.A N2.0.02 -N•N 1 01 V .(Oi 40' 01! N 0 O W -I" 1 I m XXi 1 O OIN I O ;Ni N A Aiw N O •V1 O'W.N•W •W "N N1O •VIAINI+ I 10!01 O:(0•N'N A ...1:21.10.0:0,A,, I I 1 Utilities Committee December 5, 2006 5:00 p.m. Present: Pam Linder, Chair; Verna Griffin, and Dennis Robertson, Council members. Frank Iriarte, Deputy Director; Bob Giberson, Acting City Engineer; Pat Brodin, Operations M anager; Ryan Larson, Senior Engineer; Gail Labanara, Public Works Analyst; Diane Jenkins, Administrative Assistant to the Council; Chuck Parrish, community member; and Chris Guimond and Nels Johnson, Allied Waste Services. Business Aeenda A. Solid Waste Contract Proposal Mr. Iriarte conveyed that earlier this year Allied Waste, also known as SeaTac Disposal, submitted an unsolicited proposal requesting that the solid waste contract be renewed. This was discussed earlier in the year by council; the council provided direction to move forward with negotiations. In preparation of negotiations, he gathered more detailed 'Information by contacting neighboring cities and compiling research on rates, fee structures, services provided, etc. There were two major goals at the onset of negotiations: 1) address customer service issues and 2) retain similar or improved levels of service at the same rate as the current contract. He summarized the new enhancements: simplified recycling (one 96- gallon wheeled container) with additional items to be recycled; annual curbside collection; semi -annual special clean -up with large drop -box containers at central locations; discounted code enforcement clean -ups; improved website; development and promotion of outreach recycling program for commercialmulti- family; and significant improvement of customer service. Mr. Iriarte pointed out that the only rate increase would be for the 10 -40 cubic yard non compacted containers (traditionally used by contractors or by consumers during remodeling process). He stressed that Allied Waste's website will be modified for customers to access information on rates, option, make changes in level of service, pay bill on -line, etc. Mr. Johnson reported that changes have begun to improve customer service. Mr. Iriarte further pointed out that a detailed work plan will be developed within one month of entering into the contract that will spell out promotion efforts to increase commercial recycling. Allied Waste will provide statistics on the progress they are making. Mr. Robertson asked if the work plan will be approved by council. Mr. Iriarte indicated that it would be approved by council. If it is not acceptable, the work plan would be revised. Ms. Linder confirmed that residents would not see a rate increase. Mr. Iriarte noted that there would be improved customer satisfaction recycling is easier and customer service will be improved. There has been some reorganization at Allied Waste. They have mandated levels of expectations of when calls are returned to consumers. The city will require reports detailing the number of calls they received, identification of the concern, and corrective action to be taken; this has been added to the contract language. Mr. Iriarte shared information on rates assessed in other cities and reviewed when those contracts were negotiated and length of contract. He conveyed that it is difficult to do a straight comparison of rates without doing a comprehensive rate study. Some cities embed commercial rates, provide different level of services, include an administrative fee, etc. Mr. Iriarte indicated that the council has two options: 1) approve the proposal or 2) reject the proposals and seek competitive bids. If the council decides to seek competitive bids, a consultant would need to be utilized to complete a comprehensive review of residents' needs, rates, level of service, and obtain feedback on the possible implementation of a universal garbage pick -up. The Committee asked whether implementation of mandatory garbage pickup would reduce rates. Mr. Nels Johnson responded that more than likely rates would not be impacted. Ms. Linder expressed concern with rates potentially increasing if competitive bids were sought. Cost is a major concern with the residents. She asked if the committee has the authority to recommend option 1. Recommended approval of option 1 and unanimous approval to move to special council meeting on December 11 for discussion then to Regular Council for decision.