Title
Expiration of the 2009 Municipal Trash and Recyclables Collection Agreement
Body
Summary and Background Information:
The current 2009 Municipal Trash and Recyclables Collection Agreement was competitively bid in 2008 and awarded to Waste Management of Colorado, Inc. in November of 2008. The term of the contract provided for annual renewal(s) for a total of five (5) years beginning January 1, 2009 and ending December 31, 2013. There is a provision in the contract that allows either party to extend the agreement for one-year terms, for up to an additional five (5) years by mutual consent in writing at least (60) days prior to the expiration of the current term.
The current program has value to residents and the City Because of the high volume of units served (approximately 13,890 residential units), our pricing is very good and the quality of service has been high over the term of the agreement. The 2013 contract cost per unit is $11.67 per unit, per month. Contract costs are projected to be $1,994,129 for 2013 and $2,096,058 for 2014.
Service under the current contract includes:
• Free unlimited weekly curbside service to qualifying residential units (excludes apartments, mobile homes, and hotels)
• Residents supply their own bags and/or containers
• Free large item pick-up on a weekly basis (requires 24-hour advance notice)
• Curbside recycling every two weeks
• Contractor supplies two (2) 18-gallon recycling totes as part of the agreement
• Trash and recycling services for all City facilities
There are four basic options as the City moves forward:
1. Extend the current contract with Waste Management:
a. This would require minimal staff time
b. The City has experienced minimal problems with the current contractor
c. No impact to residents
2. Go out to competitive bid for similar service:
a. This would require significant staff time to prepare
b. Needs to occur soon to ensure duties under the contract can be performed effectively and allow potential contractors to acquire the resources needed to fulfill the contract
c. Residents may experience temporary impacts if a new contractor is selected
3. Competitive bid for Pay-As-You-Throw service:
a. This option will require the greatest amount of staff time and administrative costs
b. Billing and/or bag distribution will be needed
c. Residents will pay for excess trash, additional billing and monitoring is required
d. Free large item pickup will be affected
e. Residents are encouraged to recycle
f. Greatest impact on contractors
4. Discontinue the service and license trash haulers:
a. Would require staff time for licensing of potential contractors
b. Contractors would set their prices and bill customers directly
c. Provides greatest amount of monetary and administrative savings for the City
d. Greatest negative impact on residents
e. Ordinances may need to be passed to limit or control the days each area could receive service to avoid the potential of trash trucks in neighborhoods every day of the week, and the long-term negative impacts this would have on City streets
f. Significant public relations work would need to occur in order to inform the public, special districts, and HOA's
Staff Responsible (Department Head): Daren A. Sterling, P.E. Interim Director of Public Works
Staff Member Presenting: Sam Hoover, Street and Traffic Operations Manager
Financial Impact: $2,096,058 (2014 estimated)
Funding Source: General Fund
Staff Recommendation: Staff recommends extending the current agreement.