R-888 - 10/26/2004 - AGREEMENT - Resolutions Supporting Documents,ice •
J
AGENDA ITEM
Regular Board of Trustees Meeting
of
October 26, 2004
SUBJECT: Award of Agreement for Municipal Refuse, Recyclables, and Yard Waste
Collection Services.
FROM: Jeffrey P. Moline, Assistant Village Manager,,,
BUDGET SOURCE /BUDGET IMPACT: N/A
RECOMMENDED MOTION: I move to Approve an Agreement with BFI Waste Systems
of North America, Inc., Melrose Park Illinois, and the Village of Oak Brook for Residential
Refuse, Recyclables, and Yard Waste Collection Services from November 1, 2004 through
December 31, 2007, thereby Waiving the Competitive Proposal Provisions of Village Code
1 -7 -4 and continuing Waste Collection Services with the Village's Existing Waste Hauler.
Background /History:
At the Village Board meeting of October 12, 2004, the Board approved a motion to reject all
proposals received for the Oak Brook Municipal Waste Hauler and Recyclables Collection
Service (refuse, recycling, and landscape waste). Further, the Village Board directed staff to
negotiate with the current Oak Brook waste hauler, BFI.
i
As directed, staff met with representatives of BFI on Friday, October 15, 2004. The terms 'discussed
mirrored the terms outlined in the current waste collection program for a term from November 1,
2004 through December 31, 2007. The result of the staff negotiations with BFI include the
following:
Maintain the existing collection day of Monday of each week;
Maintain the optional second day of two day service as Thursday of each week;
Established a set Holiday schedule in which collection day will trail by one day;
Maintain the current optional collection packages:
A. Once - Per -Week Curbside (Standard Collection): Flat rate collection service of Refuse and
Recyclables and "volume- based" Yard Waste;
B. Twice- Per -Week Curbside: Flat rate collection service of Refuse and Recyclables and
Last saved by Administrator J \My Documents\ASSISTANT MANAGER FILES \W0RDD0C \TRASH\2004 Contract\AGENDA 2004 Award
of Agrmt BFI doc
Last printed 10/22/2004 1 42 PM
14
e
"volume- based" Yard Waste;
C. Once - Per -Week Back Door: Flat rate collection service of Refuse and Recyclables and
curbside "volume- based" Yard Waste;
D. Twice- Per -Week Back Door: Flat rate collection service of Refuse and Recyclables and
curbside "volume- based" Yard Waste collection.
The rates for these options were submitted according to two payment options: 1) Customer
Billing; and 2) Municipal Billing and the rates are as follows:
BFI Waste Systems of North America, Inc.
The following are the rates submitted by BFI that, if approved, would be in effect from
November 1, 2004 through December 31, 2007
Rates provided for Customer BillinLy (Status Ouo):
Options
Description
Year 1
Year 1
Year 2
Year 3
Current
November
January 1,
January 1,
January 1,
with BFI
1, 2004 to
2005 to
2006 to
2007 to
December
December
December
December
31, 2004
31, 2005
31, 2006
31, 2007
Customer
Once -Per-
12.51
13.55
14.00
14.50
12.51
Billing
Week
Curbside
Twice -Per-
19.24
21.35
22.30
23.30
19.24
Week
Curbside
i
Once -Per-
19.09
20.00
20.75
21.45
19.09
Week Back
Door
Twice -Per-
28.64
29.90
30.95
32.00
28.64
Week Back
Door
Yard Sticker
1.82
1.96
2.05
2.14
1.82
Rates provided for Billing through the Village of Oak Brook (One Invoice):
Options
Description
Year 1
Year 1
Year 2
Year 3
Current
November
January 1,
January 1,
January 1,
with BFI!
1, 2004 to
2005 to
2006 to
2007 to
December
December
December
December
31, 2004
31, 2005
31, 2006
31, 2007
Municipal
Once -Per-
N/A
12.80
13.25
13.70
N/A I
Billing
Week
Curbside
Twice -Per-
N/A
21.35
22.30
23.30
N/A
Week
Curbside
Once -Per-
N/A
19.90
20.60
21.30
N/A
Last saved by Administrator J \My Documents\ASSISTANT MANAGER FILES \W0RDD0C \TRASH\2004 Contract\AGENDA 2004 Award
of Agrmt BFI doc
Last printed 10/22/2004 1 42 PM
In addition, the Agreement requires the following specific provisions by the contractor for the
life of the agreement:
1 Performance Bond of $125,000 (approximately 3 months of Collections revenue);
2) Non - Assignment Clause with stipulation;
3) Optional Billing Procedures at the Village's discretion;
4) Village Requirements for Insurance Coverage, Indemnification;
5) Damage Provisions for non - performance /strikes;
6) Village of Oak Brook Facilities to receive free standard service;
7) Two free Christmas Tree Collections for Residents;
8) Alternate Quote for Special Services, i.e., Street Cleaning (in the event Public Works
would require back -up) and alternate quote for Leaf Hauling to assist the Village Leaf
Program performed by Public Works; and
9) A required Transition Period/ "Grace" Period for residents to insure a smooth transition
between agreements, including the ability for residents to utilize yard waste stickers
purchased at lower rates and freeze the current rates until December 31, 2004.
In addition, the agreement requires public notification to residents in the form of brochures and
newsletters to keep residents informed of any and all changes in services prior to the changes
occurring. BFI and Staff have targeted November 15, 2004 for the first mailing to go out as the
grace period of the Agreement freezes the current provisions including rates through December
3 1, 2004.
Recommendation:
Based on the long relationship with BFI and the rates as presented, Staff recommends the
Village Board approve the Agreement with BFI Waste Systems of North America, Inc.,
Melrose Park Illinois, and the Village of Oak Brook for Residential Refuse, Recyclables,
and Yard Waste Collection Services from Novemebr 1, 2004 through December 31,E 20079
thereby Waiving the Competitive Proposal Provisions of Village Code 1 -7 -4 and continuing
Waste Collection Services with the Village's Existing Waste Hauler.
Attachments
Exhibit 1 Agreement between the Village of Oak Brook and BFI for Municipal Waste And Recycling Collection Service
Exhibit 2 Waste Hauling Survey
I
Last saved by Administrator J \My Documents\ASSISTANT MANAGER FILES \W0RDD0C \TRASH\2004 Contract\AGENDA 2004 Award
of Agrmt BFI doc
Last onnted 10/22/2004 1 42 PM
Week Back
Door
Twice -Per-
N/A
2915
30.15
31.20
N/A
Week Back
Door
Yard Sticker
N/A
1.96
2.05
2.14
N/A
In addition, the Agreement requires the following specific provisions by the contractor for the
life of the agreement:
1 Performance Bond of $125,000 (approximately 3 months of Collections revenue);
2) Non - Assignment Clause with stipulation;
3) Optional Billing Procedures at the Village's discretion;
4) Village Requirements for Insurance Coverage, Indemnification;
5) Damage Provisions for non - performance /strikes;
6) Village of Oak Brook Facilities to receive free standard service;
7) Two free Christmas Tree Collections for Residents;
8) Alternate Quote for Special Services, i.e., Street Cleaning (in the event Public Works
would require back -up) and alternate quote for Leaf Hauling to assist the Village Leaf
Program performed by Public Works; and
9) A required Transition Period/ "Grace" Period for residents to insure a smooth transition
between agreements, including the ability for residents to utilize yard waste stickers
purchased at lower rates and freeze the current rates until December 31, 2004.
In addition, the agreement requires public notification to residents in the form of brochures and
newsletters to keep residents informed of any and all changes in services prior to the changes
occurring. BFI and Staff have targeted November 15, 2004 for the first mailing to go out as the
grace period of the Agreement freezes the current provisions including rates through December
3 1, 2004.
Recommendation:
Based on the long relationship with BFI and the rates as presented, Staff recommends the
Village Board approve the Agreement with BFI Waste Systems of North America, Inc.,
Melrose Park Illinois, and the Village of Oak Brook for Residential Refuse, Recyclables,
and Yard Waste Collection Services from Novemebr 1, 2004 through December 31,E 20079
thereby Waiving the Competitive Proposal Provisions of Village Code 1 -7 -4 and continuing
Waste Collection Services with the Village's Existing Waste Hauler.
Attachments
Exhibit 1 Agreement between the Village of Oak Brook and BFI for Municipal Waste And Recycling Collection Service
Exhibit 2 Waste Hauling Survey
I
Last saved by Administrator J \My Documents\ASSISTANT MANAGER FILES \W0RDD0C \TRASH\2004 Contract\AGENDA 2004 Award
of Agrmt BFI doc
Last onnted 10/22/2004 1 42 PM
Jeffrev P. Moline r
i r
From:
Richard Vandermolen [Richard Vandermolen @awin.com]
Sent:
Friday, October 22, 2004 3 38 PM
To:
Jeffrey P Moline
Subject:
Oak Brook
i
This memo is to confirm that BFI agrees to the agreement as revised on Friday October 22,
2004.
Richard Vandermolen
Municipal Affairs Manager
BFI- Melrose Park Division
Fax: 708.345.2578
Mobile: 847.284.6884
Phone: 708 345.7050 ext. 2143
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should be the ordinance rather than the garbage collection.
Trustee Caleel responded that it is not that the Board of Trustees does not want to
do it but that there is a $2,000,000 shortfall of where the budget was last year at
this time. If the Board approves a utility tax reduction and then approves the
Village paying for garbage pickup, all of the funding will have spent.
Trustee Zannis remarked that if the Village has a shortfall of $1,000,000 and the
Village will have infusion of $2,250,000 from the sales tax revenue that would
leave $1,250,000 to be on par. Trustee Caleel then responded that the Village does
not meet the six -month requirement and the financial projections indicate it will be
even worse.
Trustee Zannis suggested that the Finance Director would need to build his budget
based on the direction the Board of Trustees presents to him. If the Board states
that it is necessary to fulfill the six -month ordinance commitment, then the budgets
will be built accordingly. If this is not done, then the budgets will be built
accordingly.
Trustee Caleel offered that the Board have everything remain as it is now 'and after
the budget is before the Board, then determine whether the Village could afford
garbage collection and /or decrease the utility tax rate by 1 %. Then the Board
could also determine how to address the Village's financial situation and would
the Village have a six -month cash reserve.
Motion by Trustee Yusuf, seconded by Trustee Korin, for passage of Ordinance
2004- TX -UT -G -763, "An Ordinance Further Amending Ordinance G -470,
Establishing A Utility Tax Within the Village of Oak Brook, Illinois ". ROLL
CALL VOTE:
Ayes: 5 - Trustees Aktipis, Caleel, Craig, Korin and Yusuf.
Nays: 1 - Trustee Zannis
Absent. 0 - None. Motion carried.
C. AWARD OF CONTRACTS
1) AESOLUTION 2004- AG- SW- D -EX1 -R -888 "A RESOLUTION
AUTHORIZING EXECUTION OF AGREEMENT FOR RESIDENTIAL
MUNICIPAL WASTE AND RECYCLING COLLECTION SERVICES"
At the Village Board meeting of October 12, 2004, the Board approved a motion
to reject all proposals received for the Oak Brook Municipal Waste Hauler and
Recyclables Collection Service (refuse, recycling, and landscape waste). Further,
VILLAGE OF OAK BROOK Minutes Page 14 of 21 October 26, 2004
��
r
M.,
8. C. 1)
the Village Board directed staff to negotiate with the current Oak Brook waste
hauler, BFI.
As directed, staff met with representatives of BFI on Friday, October 15, 2004. The
terms discussed mirrored the terms outlined in the current waste collection program
for a term from November 1, 2004 through December 31, 2007. The result of the
staff negotiations with BFI include the following:
Maintain the existing collection day of Monday of each week;
Maintain the optional second day of two day service as Thursday of each week;
Established a set Holiday schedule in which collection day will trail by one day;
Maintain the current optional collection packages:
A. Once - Per -Week Curbside (Standard Collection): Flat rate collection service of
Refuse and Recyclables and "volume- based" Yard Waste;
B. Twice - Per -Week Curbside: Flat rate collection service of Refuse and
Recyclables and "volume- based" Yard Waste;
C. Once - Per -Week Back Door: Flat rate collection service of Refuse and
Recyclables and curbside "volume- based" Yard Waste;
D. Twice -Per -Week Back Door: Flat rate collection service of Refuse and
Recyclables and curbside "volume- based" Yard Waste collection.
The rates for these options were submitted according to two payment options: _ 1)
Customer Billing; and 2) Municipal Billing and the rates are as follows:
BFI Waste Systems of North America, Inc.
The following are the rates submitted by BFI that, if approved, would be in effect
from November 1, 2004 through December 31, 2007
Rates provided for Customer Billing (Status Ouo)-
Options
Description
Year 1
Year 1
Year 2
Year 3
Current
November
January 1,
January 1,
January 1,
with BFI
1, 2004 to
2005 to
2006 to
2007 to
December
December
December
December
31, 2004
31, 2005
31, 2006
31, 2007
Customer
Once -Per-
12.51
13.55
14.00
14.50
12.51
Billing
Week
Curbside
Twice -Per-
1924
21.35
22.30
23 30
19.24
Week
Curbside
Once -Per-
19.09
2000
20.75
21 45
1909
Week Back
VILLAGE OF OAK BROOK Minutes Page 15 of 21 October 26, 2004
G
8C
1)
F
Rates provided for Billinp, thrnuoh the VillacrP of (lair Rrnnlr (nria T„t7r% ;I'vl-
Options
Door
Year 1
Year 1
Year 2
Year 3
Current
Twice -Per-
28.64
2990
30.95
32.00
28.64
Week Back
1, 2004 to
2005 to
2006 to
2007 to
Door
December
December
December
December
Yard Sticker
1.82
1 96
2.05
2.14
1 82
Rates provided for Billinp, thrnuoh the VillacrP of (lair Rrnnlr (nria T„t7r% ;I'vl-
Options
Description
Year 1
Year 1
Year 2
Year 3
Current
November
January 1,
January 1,
January 1,
with BFI
1, 2004 to
2005 to
2006 to
2007 to
December
December
December
December
31, 2004
31, 2005
31, 2006
31, 2007
Municipal
Once -Per-
N/A
12.80
13.25
13.70
N/A
Billing
Week
Curbside
Twice -Per-
N/A
21.35
22.30
23.30
NIA
Week
Curbside
Once -Per-
N/A
1990
20.60
21.30
N/A
Week Back
Door
Twice -Per-
N/A
29.15
30.15
31.20
N/A
Week Back
Door
Yard Sticker
N/A
1.96
2.05__j
2.14
N/A
In addition, the Agreement requires the following specific provisions by the
contractor for the life of the agreement:
1) Performance Bond of $125,000 (approximately 3 months of Collections
revenue);
2) Non - Assignment Clause with stipulation;
3) Optional Billing Procedures at the Village's discretion;
4) Village Requirements for Insurance Coverage, Indemnification;
5) Damage Provisions for non - performance /strikes;
6) Village of Oak Brook Facilities to receive free standard service;
7) Two free Christmas Tree Collections for Residents;
8) Alternate Quote for Special Services, i.e., Street Cleaning (in the event Public
Works would require back -up) and alternate quote for Leaf Hauling to assist the
Village Leaf Program performed by Public Works; and
9) A required Transition Period/ "Grace" Period for residents to insure a smooth
transition between agreements, including the ability for residents to utilize yard
VILLAGE OF OAK BROOK Minutes Page 16 of 21 October 26, 2004
0
8. C. 1)
waste stickers purchased at lower rates and freeze the current rates until December
31, 2004.
In addition, the agreement requires public notification to residents in the form of
brochures and newsletters to keep residents informed of any and all changes in
services prior to the changes occurring. BFI and Staff have targeted November 15,
2004 for the first mailing to go out as the grace period of the Agreement freezes
the current provisions including rates through December 31, 2004.
Trustee Caleel made a motion to continue this until the budget is addressed by the
Board of Trustees as they would know whether it is affordable to bid out in terms
of the Village paying for it or whether residents.
President Quinlan suggested there could be a problem with this as the contract
terminates as of October 31, 2004 Trustee Caleel offered that since BFI has been
with the Village a long time that they may be willing to continue at the present rate
f' until such time as the budget is addressed by the Board of Trustees.
a'
3
Village Manager Boehm explained that according to the agreement the collection
rate would continue as it is through the end of the year. BFI would bill the
residents directly unless the Board decides to do a direct bill to the Village of Oak
Brook.
Trustee Caleel noted that when he looked at the bids in terms of what was being
offered for the Village paying, there should be some consideration that they are
sending one bill rather than 3,000 President Quinlan stated there was a reduction
but Trustee Caleel indicated it was not enough
Manager Boehm stated it would be at the discretion of the provider if they wish to
continue garbage service to the residents in Oak Brook. The Board had asked staff
to come back and negotiate a contract with BFI as they had not discussed this. BFI
did meet and exceed the low proposal that was previously submitted.
Trustee Korin noted that the Board had requested that BFI come back to the table
because of the Board's concern of losing their service of twenty (20) years to the
residents of Oak Brook as they had good approval ratings with their service. She
suggested that, acting in good faith, the Board should decide on this whether the
Village pays for removal of garbage or individual citizens. In each case BFI met
Crown's bid and when they were lower than Crown in certain areas, they kept it
lower. She stated that BFI came to the table and recommended that the Board pass
the motion.
VILLAGE OF OAK BROOK Minutes Page 17 of 21
Leo
October 26, 2004
8 C. 1)
Trustee Caleel withdrew his motion.
Motion by Trustee Aktipis, seconded by Trustee Yusuf, for passage of Resolution
2004- AG- SW- D -EXl -R -888, "A Resolution Authorizing Execution of Agreement
for Residential Municipal Waste and Recycling Collection Services" and thereby
waiving the Competitive Proposal Provisions of Village Code 1-7-4, ROLL
CALL VOTE:
Ayes: 5 - Trustees Aktipis, Craig, Korin, Yusuf and Zannis.
Nays: 0 - None.
Abstain. 1 - Trustee Caleel.
Absent: 0 - None Motion carried.
D. APPOINTMENT OF PERMANENT POLICE CHIEF -- MOTION TO ADOPT A
RESOLUTION
Trustee Aktipis, joined by other trustees, have requested that this matter be placed on
the agenda.
Trustee Aktipis commented that residents appeared before the Board this evening and
they made various comments many of which include substantial amounts of
misinformation and misunderstanding of what the real issues have been between the
Board of Trustees and the Village President. He believes that by perpetuating those
misunderstandings that this would not be a good service to the Board of ;Trustees,
Village President and residents and to themselves. There seems to be some notion that
the name of the family that is central to the legal deliberations came out of the' result of
the Trustees taking some action that exposed them. He indicated that the fact remains
the name became public during court proceedings that were initiated by the Village
President. During legal proceedings there is always a risk of names coming to the
surface but they were not spelled out by any Trustee as he was present in those
proceedings.
Trustee Aktipis stated that the motion is to put a limit on the temporary appointment
that the Village President has presented to the Board several months ago. It should be
clear to all residents that, in spite of claims to the contrary, that there hasn't been any
personal animosity or egos between the Village President and Board of Trustees. The
Village Trustees and the President have had a fairly good working relationship during
the early part of the President's tenure but some serious questions were raised among
the Trustees when an attempt was made to use a temporary appointment as a way of
bypassing the process of a permanent appointment that would require the consent and
participation of the Trustees.
Trustee Akkipis remarked that the Board is in a position today to pass a resolution as
VILLAGE OF OAK BROOK Minutes Page 18 of 21 October 26, 2004
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