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WS Item 4 Audio♦ � SOUTHLAKE Good evening Mayor and members of the Council. I am here tonight with representatives from Duncan Disposal (introduce those in attendance) to provide you some service level options for the upcoming renewal of our contract. Overview • Contract History • Performance Review • Renewal Service Level Options • City Council Direction L Tonight, I'll briefly review the history of the contract, provide you information on how Duncan has performed against the contract performance measures and present you some options for consideration. At the end of the presentation, we will be asking you to provide staff direction on what service level you would like to see in the contract. 2 Contract History • Original Contract Approved (March 22, 2007) • Citizen Survey • Citizen Survey 2007 2008 2009 2010 2011 Contract Renewed • Citizen Survey (June 25, 2008) • Contract term ends; September 30, 2013 • Requires Council review of performance priorto renewal 1 2012 2013 The original contract was approved in the spring of 2007 and included a term of 18 months. That contract was renewed for a five -year term in June of 2008, with an expiration date of September 30, 2013. The contract states that "near the end of the five year period, the City Council will undertake a review of the performance of the Contractor based on the performance and quality measures outlined in Section Eleven of the contract" which we will be doing this evening. 3 Current Contract Provisions • Twice weekly garbage collection • Once weekly recycling collection • 3 bulk collections annually • Unlimited bundled brush collection • Grass clippings and yard waste • Annual CPI adjustments Current contract provisions include: [on screen] III Performance Measures Category Performance Contract Measure Performance Customer Failure to contact No more than six Complaints customers by end of times per year Two instances total next business day Customer Resolution of Complaints complaint within 36 90% 99.8% hours Failure to collect within 12 business No more than 10 Waste Collection hours after times in a twelve Seven instances receiving month period total notification Failure to pick up No more than three Spillage scattered refuse or times in a twelve Zero spillage month period Collection within Timeliness of 1000 ft of No more than three Collection residences before occasions during One 7AM or after 71 initial term This slide shows those performance measures mentioned earlier. Measures include responsiveness to customer complaints, collection of waste following a missed pickup, spillage and timeliness of collection. As you can see, Duncan as not only met but well exceeded these measures. Performance Measure - Citizen Satisfaction Survey How would you rate the services provided by the City's trash and recycling contractor in the past 12 months? Contract % Responding Excellent, Very Good or Good requirement 100% 90% - 80% 70% 60% 50% 40% - 30% 207. 10% 0% 2011 2009 2007 The service contract with Duncan Disposal also includes a performance measure related to resident service satisfaction, stating that an 85% satisfaction level must be reached on the citizen survey. This slide provides a view of Duncan's service performance since 2007 and shows ratings of Duncan Disposal's performance during that time are comparable and exceed the 85% contract requirement. 0 Performance Measure - Citizen Satisfaction Survey How would you rate the services provided by the City's trash and recycling contractor in the past 12 months? % Responding Excellent, Very Good or Good 100% — 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Bulk solid waste collection Curbside leaf recycling collection Additionally, in 2011, residents were also asked to rate their experience with the bulk solid waste and curbside leaf recycling services. This figure shows that just over nine out of ten respondents indicated those services were excellent, very good, or good. * * * * * * * * * * * * * * * * * * * * * * ** Bulk: Excellent Excellent 50% Very Good 26% Good 17% Fair 4% Poor 2% Leaf: Excellent 45% Very Good 29% Good 18% Fair 5% Poor 3% 7 Renewal Considerations • Curbside Leaf Recycling Program continuation • Interest from residents for larger, rolling recycling carts and automation • Some interest in automated garbage collection This slide outlines some points of consideration as we move into discussing renewal of the contract. First, since its inaugural collection in 2008, the Curbside Leaf Recycling Program has diverted almost 800 tons of leaves from the landfill. As a way to quickly introduce the program and to be able to gauge its success, the City chose to fund these initial years of the program through the City's recycling fund. In order to continue this successful program, we need to now consider alternate funding sources one of which is through the contract with Duncan. Additionally, we received quite a few comments in the most recent Citizen Survey and continue to get calls and emails from residents interested in larger, rolling recycling carts. We have also received requests for a fully- automated program that would include both recycling and garbage collection. During initial discussions with Duncan, we asked them to provide us with proposals that would address these considerations and I'll walk through some of the options that they have provided through the next few slides. 2x per week garbage collection X X 1x per week curbside recycling X X Bagged grass collection X X Option 1. Curbside Leaf Recycling X Enhanced Household Hazardous Waste X Collection Event current Weekly bulk collection X (3 annual) X Bundled brush services (2 cubic yards/home/collection) X (unlimited) X 1x per week automated recycling collection 1x per week automated garbage collection Monthly rate (prior to tax): $11.87 $12.22 Increase to current: $ 0.35 This slide shows you the first option, which is essentially an enhancement of the current services. This option provides for the continuance of the curbside leaf collection and also adds a Household Hazardous Waste Collection Event. Additionally, bulk collection has been expanded to weekly collection as opposed to only the three annual collections provided currently. Option 1 does make a slight change to the collection of bundled brush. Currently, residents can place and unlimited amount of bundled brush at the curb and it will all be collected on the next collection day without additional charges. This and all options following propose that residents may still place an unlimited amount for collection; however, only 2 cubic yards will be collected per home per collection, meaning that depending on the amount placed, it may take more than one collection day for the brush to be removed. Residents will have an option to arrange for removal more quickly at an additional charge. Option 1 proposes an increase of 35 cents, brining the total rate prior to tax to $12.22. 1 do want to point out that according to the terms of the current contract, a 3% increase to residential rates, the equivalent of 35 cents, should have been effective October 1St of last year. However, in consideration of this renewal, Duncan agreed to forgo that increase and instead offered the enhancements you see on the screen for the same amount. 9 2x per week garbage collection X X 1x per week curbside recycling X Bagged grass collection X X Option 2: Curbside Leaf Recycling X Enhanced + Household Hazardous Waste X Collection Event Automated Weekly bulk collection X (3 annual) X Bundled brush Recycling (2 cubic yards/home/collection) X (unlimited) X 1x per week automated X recycling collection` 1x per week automated garbage collection Monthly rate (prior to tax): $11.$7 $13,15 Increase to current: $128 *allows addition of curbside commercial as well Option 2 is shown on this slide and includes all of the enhancements previously discussed; however, this option converts the current curbside, bin recycling service to large, rolling cart automated recycling collection. Duncan will convert all residents to carts for recycling and will utilize new, automated collection vehicles powered by compressed natural gas. There is an associated capital investment for these new vehicles which is about $582,000. Additionally, a $404,000 investment will be need for the purchase of the recycling carts. Given this additional investment, this option results in a monthly rate of $13.15, an increase of $1.28 per month of which 93 cents can be attributed to covering the additional costs associated with those capital investments. I also want to point out that should automated residential recycling collection be implemented, that would also allow the addition of curbside commercial recycling collection to the current dumpster recycling collection now offered to commercial sites. ******** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** In case you are asked: Additional recycling carts: $ .50 cents / month 10 Option 3 includes everything discussed in Options 1 and 2, but adds automated garbage collection. With this option, garbage collection would occur once per week and residents would be required to dispose of all garbage in their cart with no more placement of any bagged solid waste at the curb. Residents will have the option of paying monthly for additional carts, should their disposal needs require more cart space. This option also maintains the current service level with the collection of bagged grass as well with the caveat that all bags will have to be in a cart in order for collection to occur. As with Option 2, there is a significant capital investment that will be required. Duncan will purchase three new automated side load collection vehicles for trash collection ad two new automated side load collection vehicles for recycling collection, all powered by compressed natural gas. The total investment for these vehicles is approximately $1,455,000 in addition to a $970,000 investment for carts. Option 3 is offered for a monthly rate of $13.10, an increase of $1.23 per month. **************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** If you are asked: Additional trash carts: $4 /month Additional recycling carts: $ . 50 cents / month 11 Option 3: 2x per week garbage collection X 1x per week curbside recycling X Enhanced + Bagged grass collection X X Automated Curbside Leaf Recycling Household Hazardous Waste X Garbage and X Collection Event Recycling Weekly bulk collection Bundled brush X (3 annual) X with Bagged (2 cubic yards/home/collection) X (unlimited) X Grass 1x per week automated X recycling collection` collection 1 x per week automated X garbage collection Monthly rate (prior to tax): $11.$7 $13,14 Increase to current: $1.23 *allows addition of curbside commercial as well Option 3 includes everything discussed in Options 1 and 2, but adds automated garbage collection. With this option, garbage collection would occur once per week and residents would be required to dispose of all garbage in their cart with no more placement of any bagged solid waste at the curb. Residents will have the option of paying monthly for additional carts, should their disposal needs require more cart space. This option also maintains the current service level with the collection of bagged grass as well with the caveat that all bags will have to be in a cart in order for collection to occur. As with Option 2, there is a significant capital investment that will be required. Duncan will purchase three new automated side load collection vehicles for trash collection ad two new automated side load collection vehicles for recycling collection, all powered by compressed natural gas. The total investment for these vehicles is approximately $1,455,000 in addition to a $970,000 investment for carts. Option 3 is offered for a monthly rate of $13.10, an increase of $1.23 per month. **************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** If you are asked: Additional trash carts: $4 /month Additional recycling carts: $ . 50 cents / month 11 2x per week garbage collection 1x per week curbside recycling Bagged grass collection Curbside Leaf Recycling Household Hazardous Waste Collection Event X X X X X X (3 annual) X X (unlimited) X X X Option 4: Enhanced + Automated Garbage 1 Recycling Weekly bulk collection Bundled brush (2 cubic yards/home/collection) 1x per week automated recycling collection` 1x per week automated garbage collection Monthly rate (prior to tax): Increase to current: $11.87 $12.80 $ 0.93 *allows addition of curbside commercial as well Option 4 is the final option I'll be showing you tonight and mirrors that of option three with one exception. The collection of bagged grass is removed. Duncan estimates that about 20% of the waste collected during the spring and summer months is yard waste which includes grass clippings, shrub and tree trimmings and typically, grass clippings comprise about 30% of that volume which equates to about 600 tons of grass clippings collected in Southlake each year. By removing that from the waste stream, much needed landfill space is saved. Additionally, collection and disposal costs are also avoided which is why the rate for Option 4 shows only a 93 cent monthly increase bringing the total monthly rate to $12.80. 12 2x per week garbage collection X X X 1x per week curbside recycling X X Bagged grass collection X X X X Curbside Leaf Recycling X X X X Household Hazardous waste X X X X Collection Event Weekly bulk collection X (3 annual) X X X X Bundled brush X (unlimited) X X X X (2 cubic yards/home/collection) 1x per week automated X X X recycling collection* 1x per week automated X X garbage collection Monthly rate (prior to tax): $11.87 $12.22 $13.15 $13.10 $12.80 Increase to current: $ 0.35 $1.28 $1.23 $ 0 'allows addition of curbside commerciM as well This slide shows the current service structure as well as a comparison of all options for your consideration this evening. In order for staff to prepare the contract for renewal, we are requesting direction from Council on your preferred service level option. 13 CITY 01 SOUTHLAKE 14