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Item 9D - MemoItem 9D Page 1 M E M O R A N D U M (August 1, 2023) To: Shana K. Yelverton, City Manager From: Lauren LaNeave, Deputy Director of Public Works Subject: Item 9D: Approve contract with Community Waste Disposal, LP., for the provision of commercial and residential solid waste and recycling services. Action Requested: City Council consideration of Item 9D: Approve contract with Community Waste Disposal, LP., for the provision of commercial and residential solid waste and recycling services. Background Information: On March 27, 2023, the City’s current solid waste provider, Republic Services, notified staff that they would not be seeking a contract renewal under the existing contract terms and conditions— specifically eliminating their practice of manual garbage collection services. At the April 4, 2023, City Council meeting staff was directed to seek direct negotiation with Republic and Community Waste Disposal (CWD). Staff received proposals from both companies and during the June 19, 2023, Executive Session, Council authorized staff (7-0) to negotiate the terms of a contract with CWD for trash and recycling services. As the existing contract with Republic Services is set to expire September 30, 2023, the proposed contract with CWD would go into effect on October 1, 2023 with a term of five years, expiring in September 2028. This contract has an option to renew for an additional five year term under the same terms and conditions. Below is an overview of the proposed contract terms: Residential service • Maintains existing service levels of: o Twice per week manual trash collection, o Once weekly recycling collection with automated side- loader carts, o Twice per week bulk collection, up to two cubic yards, o 12 cubic yards of unbundled brush collection. • Adds the following additional services: o Curbside household hazardous waste and electronics recycling, Item 9D Page 2 o Unlimited bundled brush collection, o Free monthly drop-offs at CWD’s transfer station (up to 6 cubic yards per month), o Two additional leaf recycling collection days, o Annual cart cleaning service, o Discounted roll-off rate. Commercial Service • Maintains current service levels for commercial garbage customers, • Transitions front-load commercial recycling to cardboard only, with the option of single stream recycling via 95-gallon cart. Other Contract Terms • Includes a litter crew to pick-up and dispose of litter throughout the City on a monthly basis, up to 200 hours, • Rate increases – Annual increases to the contract are based on the Annual Cost Adjustment Model in Exhibit B of the contract. This matrix is based on CPI less energy, fuel index, and the gate rate at the Arlington Landfill. This adjustment requires City Council approval if exceeding 3%. If exceeding 8%, it will trigger the extraordinary increase clause of the contract. • Performance Bond – Increases performance bond requirement from $250,000 to $750,000. • Increased reporting requirements • Continues performance measures for Council review at renewal, but adds performance penalties for: o Multiple missed collections, o Noise ordinance violations, o Failure to clean hydraulic spills, o Failure to clean material spills, o Failure to complete routes (with certain provisions). Rate Changes This contract proposes for no increase or a slight decrease to most commercial rates. The increase to the residential rate is reflected in the table below: Current Rate (Republic) New Rate (CWD) Variance % Change Residential Rates $18.86 $19.18 $0.50 2.68% Item 9D Page 3 Financial Considerations: An increase in rates will increase the franchise fees received by the City. The City collects ten percent (10%) of the total monthly dollar amount collected for residential and commercial / industrial billing. Strategic Link: This contract links to the City’s Focus Area of Partnerships and Volunteerism, and B2 Collaborate with select partners to implement service solutions. Citizen Input/ Board Review: N/A Legal Review: The proposed contract was reviewed and revised by the City Attorney. Alternatives: 1. Approve proposed agreement as presented 2. Approve proposed agreement with modifications. 3. Deny proposed agreement, and direct staff to continue negotiations with Community Waste Disposal (CWD) with acceptable terms to bring forward at a later date. 4. Deny proposed agreement. Supporting Documents: 1. Proposed Contract with Exhibits Staff Recommendation: Staff recommends approval of Item 9D: Approve contract with Community Waste Disposal, LP., for the provision of commercial and residential solid waste and recycling services. Staff Contact: Lauren LaNeave, Deputy Director of Public Works - Administration