2000-10-09 Regular Meeting and Public Hearing

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e e REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Reqnested: October 12000 Reqnested By: S. GiUett ZJj1 'tit I' Department: Public Works Appropriation Source of Funds: N/A Account Number: N/A Report: Resolution: Ordinance: -XL Amount Budgeted: N/A Exhibits: Ordinance No. Amount Requested: N/A Exhibits: Evaluation Summarv Budgeted Item: YES NO Exhibits: Contract - Commercial Solid Waste SUMMARY & RECOMMENDATION The contract for commercial solid waste collection expires October 31, 2000. The current contract, in effect since November 1, 1990, is with BFI Waste Systems, Inc. Requests for Proposals (RFP's) were sent to five (5) area contractors, with four (4)-retuming proposals. The Public Works and Finance Departments performed an evaluation of the four proposals. Attached is a summary of the evaluation. BFI Waste Systems submitted the top-rated proposal. In addition to being the current contractor, with minimum changeover problems anticipated, the overall cost proposal was also the lowest. The firm's financial condition was also rated as the highest. The proposed contract is attached. There are several major changes, as follows. Effective with the new contract, the City of La Porte will no longer bill customers, nor will the City be responsible for payment to the Contractor. The Contractor will provide direct billing to customers which will eliminate the City's responsibility for non-payment of bills. Additionally, the Contractor will pay 4% of gross revenues to the City, which is included in the cost proposal attached to the Contract as Exhibit A. Estimated payment from the Contractor for the first year is approximately $21,386.55. For those customers that utilize roll-off service, that service has been eliminated from the proposed contract. Customers are free to use the service provider of their choice. Finally, the term of the Contract is five (5) years, with an option for the City to renew for an additional three (3) years. Some elements ofthe Contract are the same as the existing agreement. The Contractor will continue to provide service for city facilities at no charge. This is a total annual savings of $24,338.52. The Contractor will be entitled to an annual cost of living adjustment, based on the Consumer Price Index for all Urban Consumers (CPI-U) all items, U.S. City Average. This increase cannot exceed 5% in anyone year. The Contractor will have the exclusive right to collect containerized, commercial solid waste within the City, with the exception ofroll-offs, as mentioned above. Action Required bv Council: Approve Ordinance No. 2000- authorizing the City Manager to execute a contract with BFI Waste Systems, Inc. for the exclusive right to provide containerized, commercial solid waste collection and disposal. Approved for City Council Al!enda ~~ T ~~'- Robert T. Herrera, City Manager \O-';?).oo Date