CCP 10-10-2006 - Laserfiche WebLink

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. . . II~ .~~ the city that works [Of' you Re ort Number: A enda Section: Re ort Date Council Meeting Date I ' October 4, 2006 October 10, 2006 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: CONSIDER A WASTE REMOVAL AND RECYCLING CONTRACT FOR ALL CITY FACILITIES. DEPARTMENT HEAD'S APPROVAL: C:rM.'It/ CITY MANAGER'S APPROVAL: No comments to su lement this re Recommendation: Authorize staff to enter into a service agreement for waste removal and recycling services for all City facilities with ACE Solid Waste, Inc. Legislative History: The City has multiple service agreements with Allied Waste for several City facilities dating as far back as 1990. On August 15,2006 the City provided a Notice of Termination letter to Allied Waste in accordance with the terms of the service agreements for the five locations that they service - City Hall, Public Safety Center, Family Service Center, Public Works Garage, and the Park Maintenance Garage. The golf course which is currently serviced by Ace Solid Waste does not have a contract. The golf course service will tenninate at the completion of this season. Financial Impact: The City currently pays approximately $28,000 per year for waste and recycling services at six locations. On September 25, 2006 the City received three proposals for a new waste removal and recycling services. The proposals from Allied Waste and Ace Solid Waste were nearly the same, so a three-year quote was requested from both companies. Allied Waste will hold their quotes fixed for one year with a maximum increase of three percent in year two and year three. Ace Solid Waste will hold their quote fixed for all three years. Allied Waste Ace Solid Waste Waste Management Month $1,142.45 $1,154.67 $1,339.99 Year 2 $14,120.64 $13,856.04 N/A Total $42,374.40 $41,568.12 N/A Year 3 $14,544.36 $13,856.04 N/A Year 1 $13,709.40 $13,856.04 $16,079.88 The low three year total assumes that fuel and county landfill charges will remain constant over a three year period. These variables could fluctuate over the life of the contract as market conditions dictate. Explanation: The low price based on a three year agreement is Ace Solid Waste. A new agreement will save the City nearly $14,000 per year. After three years, the agreement will automatically renew for another one-year term unless the City requests a new set of proposals for service. Enclosures: Proposals Notice of Termination Letter dated August 15,2006.