R-1400 - 09/23/2014 - REFUSE - Resolutions Supporting Documents ITEM 10.B.1.
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AGENDA ITEM
Regular Board of Trustees Meeting
of
September 23, 2014
SUBJECT: Refuse Collection Contract
FROM: Michael F. Hullihan P.E., Director of Public Works
Rania Serences, Purchasing Specialist
BUDGET SOURCE/BUDGET IMPACT: Approximately $700,000 in fees is collected from
residents annually for these services.
RECOMMENDED MOTION: I move that the Board approve the attached contract with
Allied Waste Services of North America LLC for Refuse Collection Services.
Background/History: In 2009 the Village entered into a contract with Allied Waste Services
for residential waste services. The contract will expire at the end of 2014. The contract contains
a clause which allows renewal for up to three years. Judging from the number of
inquiries/complaints, residents are satisfied with the level of service provided. Per guidance
from the Board, Staff solicited input from Homeowners Association(HOA) Presidents regarding
satisfaction with Allied Services. The HOA Presidents overwhelmingly responded that:
• Mondays are the preferred pickup day for refuse
• Republic provides very good services
• Minor changes in pricing are of secondary importance to the quality of service
Staff, assisted by Trustee Wolin, negotiated with representatives from Allied Waste Services on
the length and pricing for a new contract. The attached pricing structure resulted. Some of the
significant aspects of the pricing are:
Price Increases: For Once per week, curbside pickup there is no price increase for the
first year and 3.5% annual increases thereafter. This equates to less than a 2.5% average annual
a"1----------- .
price increase over the term of the contract. 94% of households in the Village receive this type
of service. The table below summarizes charges for standard service.
Enhanced service options (twice weekly curbside, once weekly back door,) have a larger annual
increase reflecting higher costs for these services. Trustee Wolin has included these figures in an
updated power point presentation.
Recommendation: That the Board direct Staff and the Village Attorney to finalize a contract
with Allied Waste formalizing the attached price proposal.
Attachment
Rate Increases
Additional
Expenditure
Year 1 Year 2 Year 3 Year 4 Year 5 for 2.5%
2.5% increase $21.44 $21.98 $22.53 $23.09 $23.67
Allied Offer $20.92 $21.65 $22.41 $23.19 $24.01
Difference $0.52 $0.33 $0.12 -$0.10 -$0.34 $0.53
RESOLUTION 2014-SW-AG-R-1400
A RESOLUTION WAIVING BIDDING AND APPROVING AN AGREEMENT BY AND BETWEEN THE
VILLAGE AND ALLIED WASTE SERVICES OF NORTH AMERICA, LLC
FOR THE COLLECTION AND DISPOSAL OF
SINGLE FAMILY RESIDENTIAL WASTE
WHEREAS, Section 11-19-1 of the Illinois Municipal Code, 65 ILCS 5/11-19-1, authorizes the
Village to contract with waste haulers to collect and dispose of residential garbage and refuse; and
WHEREAS, in 2010, the Village entered into an agreement with Allied Waste Services of North
America, LLC d/b/a/ Allied Waste Services of Melrose Park//Republic Services of Melrose Park
("Republic"), for Republic to collect and dispose of refuse, yard waste, and recyclable materials
("Refuse Service"); and
WHEREAS, Republic has satisfactory provided Refuse Service to the Village; and
WHEREAS, the Village desires to enter into a new five year agreement with Republic for
Republic to continue to provide Refuse Service to single-family homes in the Village, which agreement is
attached hereto as Exhibit A and incorporated herein; and
WHEREAS, the President and Board of Trustees, being fully advised in the premises, have
determined that it is in the best interests of the Village and its residents to so waive competitive bidding
and to approve the Agreement for Republic to provide Refuse Service;
NOW THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows:
Section 1: Recitals. The foregoing recitals are hereby incorporated into, and made a part
of, this Resolution as the findings of the President and Board of Trustees of the Village of Oak Brook.
Section 2: Waiver of Competitive Bidding Requirements. The advertising and bidding
requirements for the procurement of Refuse Service are hereby waived in accordance with Section 1-7-4
of the Village Code.
Section 3: Approval of Agreement. The President and Board of Trustees hereby approve
the Agreement by and between the Village and Republic in substantially the same form attached to this
Resolution as Exhibit A.
Section 4: Execution of Required Documentation. The Village President and Village Clerk
shall be, and hereby are, authorized to execute the Agreement after receipt of the final Agreement fully
executed by Republic.
Section 5: Effective Date. This Resolution shall be in full force and effect from and after its
passage by two-thirds of the Trustees and its approval in the manner provided by law.
[SIGNATURE PAGE FOLLOWS]
Resolution 2014-SW-AG-R-1400
Approving the Agreement with Republic
For Refuse Collection
Page 2 of 3
APPROVED THIS 23rd day of September, 2014.
Gopal G. Lalmalani
Village President
PASSED THIS 23rd day of September, 2014.
Ayes:
Nays:
Absent:
ATTEST:
Charlotte K. Pruss
Village Clerk
#32523714_v1
Resolution 2014-SW-AG-R-1400
Approving the Agreement with Republic
For Refuse Collection
Page 3 of 3
EXHIBIT A
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�, f1't',,j� ,:a Village of Oak Broo
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, �� ` HOA Presidents have unanimously requested renewal with Republic if a fair contract
a�� 4 can be achieved.
µs,,, F Republic's cost structure for Oak Brook is in the lower tier of prices in DuPage
' County.
3. El Republic has provided high levels of service. Complaints are not frequent and are
i'SP' � usually resolved quickly without the involvement of village staff.
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�`, Service will continue to be performed for all residents on Monday which is the
x1"� preferred day. Thursday will continue to be the second day of service.
cc. Current service offerings will remain in place.
I "' Residents can choose from four service offerings including twice a week and
i�r Gig
back door service.
r, All options include unlimited refuse service including bulk items and large
appliances- no additional expense for extra items. No stickers need to be
purchased.
zi There will be no transition period. Drivers are familiar with the routes and which
customers get specific service offerings.
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: � Other Considerations
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• Republic Services has the. resources to provide timely
�' �'oi. 40 service in case of natural disasters. Timely natural
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disaster response affects the public's perception of
government bodies.
stimo
r, • Republic Services owns its own landfills and transfer
Not stations. It is a large, financially stable company. While
the risk of environmental liability on Oak Brook's part is
low, if there were an occurrence, the total cost could be
large. ,s,:,
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• Republic Services has provided waste collection services '���o ..,•'•
for the village for about 30 years. 2
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Proposed 5-Year Service Contract Costs
"+ x
%of Current YEAR Increase YEAR YEAR Increase YEAR Increase YEAR Increase
� OPTION Increase
tea/ Households Rate 1 % 2 3 % 4 % 5 % Average
nx r? 1 X Week
l+ s 3 94% Curb $20.92 $20.92 0.00% $21.65 3.50% $22.41 3.50% $23.19 3.50% $24.01 3.50% 2.80%
2X Week
5a" ' 2% Curb $35.10 $38.87 10.75% $40.23 3.50% $41.64 3.50% $43.10 3.50% $44.61 3.50% 4.95%
' ' 1X Week
3% Backdoor $35.32 $39.12 10.75% !! $40.49 3.50% $41.90 3.50% $43.37 3.50% $44.89 3.50% 4.95%
2X Week
.
.1„ - E 1% Backdoor $52.65 $58.31 10.75% $60.35 3.50% $62.46 3.50% $64.65 3.50% $66.91 3.50% 4'.95%
YARD
STICKERS
(Each) $3.05 $3.05 0.00% $3.15 3.28% $3.25 3.17% $3.40 4.62% $3.50 2.94% 2.80%
•Toter Rentals: No increase over the five year period
•96 Gallon yard waste container will increase an average of 3%over the five year period
•Pricing was also obtained for 1, 2,3 and 4 year contracts and will be discussed
3
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imVittligli t; li Republic DuPage Customers
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ousing Rate Municipal Invoice or Renewal
Municipality Hty Rate Service Type
p‘,. ..0.41-A.3,, Units/Sa.Mi. Effective Resident Billed Term Years
+� Addison 1250 $22.38 Unlimited 4/1/2014 Invoice 10
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k s 3$-:A Bensenville 1175 $22.58 Unlimited 10/1/2013 Invoice 5
k � a+ °,$1 ; Bloomingdale 925 $22.29 Unlimited 3/1/2014 Resident Billed 8
VI:,� f '3< xi Burr Ridge - $32.00 Unlimited 8/1/2013 Resident Billed -
a# a"i.'x` Clarendon Hills 1700 $20.60 Unlimited 7/1/2014 Resident Billed 5
r Downers Grove 1375 $24.92 Cart Contents* 4/1/2014 Resident Billed 5
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Fi." Elmhurst 1575 $21.53 Cart Contents* 4/1/2014 Invoice 5
0 ..p Glendale Heights 1300 $20.95 Unlimited 5/1/2014 Resident Billed 7
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W V ,thtA Hinsdale 1350 $31.54 Cart Contents* 5/1/2014 Resident Billed 3
Itasca 675 $23.51 Unlimited 7/1/2014 Invoice 5
Lisle 1400 $28.25 Cart Contents* 6/1/2014 Resident Billed 4
Oak Brook 400 $20.92 Unlimited 1/1/2014 Resident Billed 5
Willowbrook 1725 $20.51 Cart Contents* 1/1/2014 Resident Billed 4
Wood Dale 1125 $25.03 Unlimited 5/1/2014 Invoice 7
4
* 95-gallon refuse cart
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-h 0,0 Glen Ellyn
A t4��� FL 65 gallon toter $19.57
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t,, ' : 95 gallon toter $21 .67
F e ' E $2.45 for each sticker for extra bags
imetwo
oor s LaGrange
� ,,x ��, Each 35 gallon container must have a $4.60 sticker
Monthly fee for a 95 gallon trash toter with a 65 gallon recycling toter is $25.50
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Ig� i LaGrange Park
x '�x> Base fee of $5.10
4
i.4 .>> Individual stickers for 33 gallon contaners -- $2.90
17 65 gallon toter— $11 .65
95 gallon toter -- $13.65
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� �� Westchester
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$23.47 per month unlimited
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� � Western Springs
° o ,- . c 33 gallon containers with a $3.45 sticker
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`ie l Westmont
..,`L� 11f 41, Flat fee of $26.42 for 2 — 33 gallon containers
h 13to rt E $1.66 per sticker for additional trash
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,��_ rrq Wheaton trash
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0 4 � l 3.55 for sticker for 33 gallon container
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x1 � h 7 $30.10 per month for 95 gallon cart
Woodridge
Eil $3.67 sticker per 33 gallon container
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x Oak Brook 2009 Competitive Bids
Pifer tal One time per week service
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W. 2teg £,, Year 2009 2010 2011 2012 2013 2014
, fa Republic $17.55 $17.55 $18.34 $19.16 $20.02 $20.92
5,� 5.1
1 Roy Strom $17.55 $17.31 $18.69 $20.18 $21.79 $23.53
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i Waste Management $17.55 $18.43 $19.16 $19.93 $20.73 $21.56
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.....■■. Dispose All Has since been sold to Waste Management
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Kotooll Comparison of 1X Per Week Versus Other Service Offerings
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Ratio of Optional Service to lx per Week
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e � Curbside
tiovospn
o..,A0,-totkut 2X per week curbside 1X per week backdoor 2X per week backdoor
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�,�� �P 2015 proposed cost $38.87 $39.12 $52.65
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Ratio to 1X per week 1.85 1.86 2.51
RtaiVON£`I N Number of customers 57 85 9
Vati,z Notes:
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*It takes four times as long to service a back door customer as curbside
*Very few customers means long drives between customers
8
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3a Cost of lx per week service
}`ATM 1 to 5 Year Contracts
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2015 2016 2017 2018 2019
R $
°���; �� z 21.86
$21.86 $22.85
MICISANN
:f4 _ $21.65 $22.41 $23.19
$21.65 $22.41 $23.19 $24.01
$20.92 $21.65 $22.41 $23.19 $24.01
9
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Item 9
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ANOMOP
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Other Pricing Considerations
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Fuel Price Increase Clause
5
�To
s� Ats is Asa J
volgog • Price increases may be negotiated between
Republic and Oak Brook if the average price of
ti fuel exceeds $4 75 per gallon during the period
July to September 2015.
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o Substantiation for increases must be provided
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g� `{ � o Increases are not automatic and must be
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mutually agreed to
• Base fuel price level for 2015 is $4.75 per gallon.
Annual 31/% increase in subsequent years.
• Current fuel price is $3.503.
• Similar clause in contract — never implemented
Approximately six accounts with special needs 10
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NOWSPI
A• Refuse Haulin Contract
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K ;` 4 Recommendation
Implement a five year renewal agreement with Republic
•Consistent with HOA Presidents recommendation
•Locks in fair pricing for an extended time period
aas f .fir"' i
' •No resident transition or disruption
•Continues high quality service
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omparison of Westchester to Oak Brook
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454301M701
AtIgg,i," E Previously indicated Westchester
pricing of $23 .47 per month
manoi
n Current pricing as of 7/1 /14
$24.78 per month/$22.34 per month for seniors
Easpot.
Price increase of 3 . 0/5 0 on 7/1 /16
„,„,,,,,,,,,,,„ ,L ■i.:,-,:,I.,:
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,,,AvawIn Price increase of 4.0%0 on 7/1 /17
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5 year extension ends on 6/30/18
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Comparison,..1,,,,, N„,
of Westchester to Oak Brook
m
'` ' 7/1/2014 7/1/2015 7/1/2016
x �t, Westchester Regular Price $24.78 $25.65 $26.68
ri Westchester Senior Price $22.34 $23. 12 $24.04
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Wei hted Price (70/30) $24.05 $24.90 $25.
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' Westchester to Oak Brook
, , Comparison o
1/15 to 6/15 7/15 to 12/15 1/16 to 6/16 7/16 to 12/16 1/17 to 6/17
Westchester $24.05 $24.90 $24.90 $25.89 $25.89
i. » Oak Brook $20.92 $20.92 $21.65 $21.65 $22.41
Difference $3.13 $3.98 $3.25 $4.21 $3.48
z =z # A % more than OB 15% 19% 15% 19% 16%0
$ more than OB $93 900 $119,400 $97,500 $126,300 $104,400
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x *Assumes 5,000 homes serviced in Westchester
(7,015 households)
14
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Refuse haulin contract
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Westchester Oak Brook
Refuse and recycling Village offices
Refuse and recycling for Butler center
;ty Refuse and recycling Fire Station 2 Refuse and recycling for Fire Station 2
tilegizAtic Collection of 25 96 gallon containers
z` from the commercial district Refuse and recycling for Library
t t ,§ 20 40 yard rolloff boxes per year
Refuse service for Golf Club
P
25 20 yard rolloff boxes per year Refuse service for B&T
! ' i
�, �,� Westchester Fest (2 days) Taste of Oak Brook
-60 restrooms -Rolloff containers
-10 handicapped restrooms -Disposable containers
-60 portable sinks -$7500 contribution
-50 96 gallon recycling containers
-18 2 yard refuse containers
-3 6 yard refuse containers
,, 10 restrooms for little league
3 day 16 inch softball tournament
-1 8 yard refuse container
-6 restrooms
-2 portable sinks
$10,000 for leaf bags
$1,000 to sponsor Westchester Fest
$10,000 to sponsor recycling center
4 solar powered compactors
15