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HomeMy WebLinkAbout9.F.1. Garbage/Recycling RFP Preferred Hauler Designation-Res. No. 7306 General Business 9• F. 1• SHAKOPEE TO: Mayor and City Council FROM: Mark McNeill, City Administrator DATE: 05/21/2013 SUBJECT: Garbage /Recycling RFP Preferred Hauler Designation - Res. No. 7306 (A) Action Sought Council should give direction to Staff to negotiate a contract with Allied Waste Services as the preferred vendor for residential refuse /recycling, and yard waste services, and also designate a second and third backup vendor for negotiating purposes. Background The City of Shakopee has been served by Dick's Sanitation for its residential refuse, recycling, and yard waste collection services since 2001. The contract with Dick's has been renewed twice, and is set to expire May 31, 2014. Rather than renew the existing contract, which would have included a single sort recycling system, in 2012 the City Council directed that proposals be sought for a new contract, The City hired Foth Infrastructure and Environment, LLC (which partnered with Schaefer Consulting), to provide assistance in preparing the RFP. The RFP was prepared, and was reviewed at three separate meetings of the City's Environmental Advisory Commission (EAC). This document updated the contract terms, provided for enhanced recycling technologies, and helped to assure that the City would have the most competitive pricing possible for customers. On December 4th, a status report including the proposed RFP was provided to the City Council. On February 5th, the City Council reviewed and approved the RFP for release. On March 27, 2013, six proposals were received. They were: Allied Waste Services Buckingham Companies Dick's Sanitation Elite Waste Disposal Red River Service Corporation Waste Management The proposals were given a comprehensive review by a proposal review committee, which was made up of four City employees, and one representative from Scott County Environmental Health. Assistance with technical evaluation of the proposals was provided by the Consultants. The Committee reviewed the RFPs on the following criteria: • Price schedules (estimated total cost over the five year base contract.) • Experience and capacity (demonstrated capability, including the company's financial condition.) • References • Thoroughness and responsiveness to the RFP (demonstrated understanding of the City's needs, goals, objectives, and service specifications and quality standards) • Overall environmental benefits (specific operations proposed, and overall company approach and philosophy to environmental protection and natural resource conservation). No single criterion determined the best proposal - -it was a combination of all of the above. All proposals were reviewed and compared with other proposals for the review committee to develop a ranking of the proposers. It is the City Council's sole authority to decide which proposal is in the best interests of the eligible residents of the City. As part of the process, on May 7th, the City Council determined that the City should own the approximately 22,000 refuse and recycling carts. By doing this, the City will be able to amortize the cost of the carts over 10 years, and will own the carts as an asset at the end of that time. This will provide greater flexibility in future garbage /recycling contract renewals, and, in general, will provide a cost savings to residents over the course of the contract. Recommendation The Committee concluded that the City Council should direct staff to negotiate a final contract with Allied Waste Services as the preferred proposer. If negotiations are not successful with Allied, then City staff should then be authorized to negotiate with Elite Waste Disposal. Then, if negotiations are also not successful with Elite, staff should then be authorized to negotiate with the third - ranked proposer, Dick's Sanitation, Inc. The Committee also recommends that the other three proposers (Buckingham, Red River and Waste Management) should be released from further consideration, and their proposal bond should be returned. It is anticipated that a recommended contract will come back to the Council for consideration at the June 18th meeting. In July, City Staff will have recommendations regarding the City's bidding process for the garbage /recycling carts. Budget Impact While prices were only one component considered of the overall proposal, Allied had the lowest overall cost of the six proposals. Information in the proposals, including the overall costs, will be available to the public after the final contract is negotiated. Relationship To Visioning This supports Goal A, "Keep Shakopee a safe and healthy community where residents can pursue active and quality lifestyles." Requested Action If the Council concurs, it should, by motion, adopt the following Resolution No. 7306: A Resolution Directing Shakopee City Staff to Enter into Negotiations with Allied Waste Services for a Contract for Residential Refuse, Recycling, and Yard Waste Services for a Period of Five Years Attachments: Garbage RFP Resolution RESOLUTION NO. 7306 A RESOLUTION DIRECTING STAFF TO ENTER INTO NEGOTIATIONS WITH ALLIED WASTE SERVICES FOR A CONTRACT FOR RESIDENTIAL REFUSE, RECYCLING, AND YARD WASTE SERVICES FOR A PERIOD OF FIVE YEARS. Whereas, the City of Shakopee desires to enter into a contract for residential refuse, recycling, and yard waste removal services for those properties in Shakopee which are served by the City's organized contract; and, Whereas, the City issued a Request for Proposals for said services, and on March 27, 2013, received responses from six prospective haulers; and, Whereas, a review committee thoroughly analyzed the said six proposals and, after careful consideration, has recommended to the City Council that negotiations for a final contract be entered into with a preferred hauler; NOW, THEREFORE, BE IT RESOLVED that Staff is hereby authorized to enter into negotiations for a five year contract with Allied Waste Services, which shall then be returned to the City Council for approval. BE IT FURTHER RESOLVED that if said negotiations with Allied Waste Services prove to be unsuccessful, that staff shall be authorized to negotiate with Elite Waste Disposal; should said negotiations be unsuccessful with Elite Waste Disposal, that staff be authorized to negotiate with Dick's Sanitation, Inc. BE IT FURTHER RESOLVED that the bid proposal bonds of the other proposers -- Buckingham Companies, Red River Service Corporation, and Waste Management - -be returned to them. Dated this day of , 2013. Mayor of the City of Shakopee ATTEST: City Clerk