Title
Consider and take action on an ordinance: 1) granting a franchise to AmeriWaste League City, Inc., a subsidiary of AmeriWaste, Inc. (“AmeriWaste”) for the exclusive right, privilege and franchise to provide solid waste collection in League City, Texas and 2) authorizing a five (5) year agreement with AmeriWaste for solid waste collection in League City (Assistant City Manager)
Background:
The City’s contract for solid waste and recycling services expires on January 31, 2018. An RFP was released on July 11, 2017 and due by 2:00 p.m. on August 8, 2017. The City received proposals from 5 providers: AmeriWaste, FCC Environmental, Frontier Waste Solutions, Republic Services, Waste Management.
Selection Process:
A committee was formed to assist in the bid evaluations. This committee included the City Manager, the Assistant City Manager and the Purchasing Manager. The committee independently scored the proposals based on the following criteria:
• Qualifications and Experience - 30 points
• Project Methodology - 30 points
• Service Yard and Facilities - 30 points
• Transition Plan - 10 points
• Customer Service and Public Education - 20 points
• Rates and Fees - 80 points
To help ensure a fair and objective decision-making process, the prices for residential and commercial rates were scored objectively, and independently, for each vendor by the Assistant City Manager/Director of Finance. Based on the combination of all of these scores the two most qualified vendors were selected and interviewed; those being Republic Services and AmeriWaste. City staff is recommending that the Council select AmeriWaste to provide the City with residential, light commercial, and commercial/industrial waste services
Residential and Light Commercial Waste Services:
AmeriWaste League City will provide residential solid waste and recycling services with residential rear load 25-yard vehicles crewed by a driver and helper(s). It will be a “take all” service. Residential services will be provided six (6) days a week with collection routes on Monday/Thursday, Tuesday/Friday and Wednesday/Saturday. Recycling services will be provided once a week on one of the designated solid waste pickup route days, via 48 gallon wheeled carts with tops. Commercial dumpster and cart services will be provided Monday through Saturday based on customer request. Roll-off and compactor services will be provided Monday through Friday by Hill Sand, Inc. (dba Hill Waste Services) working in partnership with AmeriWaste League City.
The Monthly residential rates will increase from $13.00 to $16.05. The new rate includes the addition of a household hazardous waste program, and a larger recycling cart. These rates do not include the customary $0.30 per household administrative and billing fee to the City. The Monthly light commercial base rates will increase from $20.40 (for weekly collection) to $22.50. AmeriWaste will have exclusive rights to service all residential and light commercial accounts within the geographic boundaries of the City and will bill all commercial accounts directly. The City will continue to receive a 7 percent franchise fee from all commercial accounts and will receive $10,000 a month for recycling proceeds, which is an increase from the previous $5,000 per month the City currently receives for recycling proceeds. Following the first year of the agreement, the City will adjust the base rate for all customers equal to 75% of the Consumer Price Index (CPI) from the previous calendar year.
Commercial/Industrial Waste Services:
AmeriWaste will provide a commercial waste service with a pick-up schedule to be determined by its customers. Commercial Dumpster fees will increase on average twenty-five percent (25%) from current franchise pricing. Roll-off Container haul rates will stay the same per haul with Roll-off container rental rates decreasing approximately twelve percent (12%) below current franchise rates. AmeriWaste will have exclusive rights to service all commercial accounts within the geographic boundaries of the City and will bill the commercial accounts directly. The City will receive a 7 percent franchise fee collected from all commercial accounts. AmeriWaste will also service all City accounts and provide the City with up to thirty-five (35) Roll-offs with a capacity of up to forty (40) cubic yards during each calendar year at no additional charge.
Household Hazardous Waste Collection Services:
AmeriWaste shall provide one (1) household hazardous waste collection event per year at a location specified by the City whereby AmeriWaste shall accept Household Hazardous Waste from residents and employees of the City. CONTRACTOR shall organize and implement all details of the event. This collection event shall occur on a weekend. In addition, AmeriWaste shall provide a call-in pick-up service for household appliances (for those containing Freon, appliance must have a certification that all Freon has been removed) and household electronics.
Implementation Process:
Ameriwaste will need approximately three (3) months to complete the assembly and delivery function for all waste receptacles to its new customers in the City. Upon award of this contract, Republic Services will continue to service all City customers during this transition period. Ameriwaste will work with Republic Waste to ensure a reasonable and effective transition plan. AmeriWaste anticipates that it will begin its solid waste collection services on April 1, 2018. To ensure a smooth transition period; direct mail, brochures, flyers and League City media outlets such as Channel 16 will be utilized.
CONTRACT ORIGINATION: The contract has been approved by the City Attorney’s office
Attachments:
1. Data Sheet
2. Proposed Ordinance
3. Exhibit A - Agreement for Solid Waste Services with AmeriWaste
4. Old Solid Waste/Recycling Rates
FUNDING
{x} Requires a future budget amendment to increase Refuse Collection Fee revenue Account 0100-43450 $1,136,000 and increase Solid Waste Contract Services - Refuse expense Account 3500000-53590 $1,136,000. Contract expenses will be charged to Solid Waste Contract Services - Refuse expense Account 3500000-53590.