8G - Options for City Sanitation ContractAGENDA ITEM:
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
Options for City Sanitation Contract
AGENDA ITE M H ll G
MAR Cil 10,20 14
SUBMITTED BY: Rick Carper, P.E., Public Works Director ;t<,.
DATE: February 7, 2014
STRAGTEGIC PLAN LINK: None
BACKGROUND: The City's Sanitation Contract with Advanced Disposal (ADS) expires on
May 3 1, 2014. Because of ongoing discussions with CO J regarding possible solutions to
the tipping fee issue, ADS, at AB's request and as reported to the Commission in
November, agreed to a three month extension of the contract. After three months , the
extension becomes month by month, with a minimum 90 day notice of intent to modify
that agreement (attachment 1 ). There are three primary options for the City's Sanitation
Pickup and Haul Contract for the Commission to consider. This staff report does not
address any aspect of prior tipping fees .
1. Extend the current contract with Advanced Disposal (ADS) (attachment 1 ): The
current contract specifically allows extensions (see attachment 4) as agreed to by the
City and the Hauler.
Pro : Rate offered by ADS in attachment 2, (currently $15.7911 residence per
month); w ill now include the lan dfill tipping fee, resulting in an effective residential rate of
approxima te ly $11.33 I residence per month (based on 2013 actual tonnage hau led to
Trail Ridge Landfill);
As part of the extension proposal, ADS offers to implement sing le stream,
toter recycling at no additional cost;
Known. exceptional level of service , including full time superviso r in town
whenever an ADS truck is performing residentia l pickup of any kind ;
Con : Proposal does not commit co ntractor to buying all new vehicles as would
be required if the contract is rebid .
2. Rebid the contract:
Pro: Open competition; allows modification of current standards for collection if
desired (no significant changes other than switch to toters for recycling proposed
at thi s time);
Con: As evaluated by Redman Consulting Group (attachment 3), would
probably not result in better pricing than proposed in the ADS extension offer;
Bid preparation costs estimated to be $8,000 to $10 ,000 for consultant
services (bid document preparation , evaluation of bids and negotiations with
selected hau ler), plus significant staff time requi red for al l phases including
transition efforts if a new hauler selected .
3. Accept the COJ offer to provide Pickup and Haul services: (would result in shift to
Southland I Republic Services and fully automated collection of trash).
AGEN n A ITEM II IlO
MAR Cil 10,2014
Pro: Fixes rate at the Jacksonville Residential Rate of $12.65/ residence
per month which includes tipping fee (actual payment to hauler is -$10 .59);
For additional cost (-$1 .15/ residence per month), Republic Services
would provide a fu ll time, in town Supervisor.
Con : AB loses control of directly resolving problems with garbage collection ; all
problems are reported by calling the COJ Care line (630-ClTY);
No protection against rate increases (City would pay same rate per
residence as CO J residents, limited by Ordinance to max of $18.00/month);
AB would still have to rebid Commercial (dumpster) pickup contract,
probably resulting in higher rate because of separation from residential contract. This
may result in two separate haulers performing sanitation duties in AB;
Some areas of AB are not suited for automated collection because of
trees along the residential roadways , With automated collection , either residents would
need to change toter placement to an area where there would be no overhead issues or
the City would need to spend time and money to trim trees and continue to keep them
trimmed therefore adding additional pressure on the budget and manpower.
Fully Automated method has driver only in collection vehicle, trash I
garbage must be in toter to be collected, material on the ground would not be picked up.
Hauler would not be responsible for repairs or replacement of City owned
toters resulting in additional work load on City Forces;
Recycling collection will become biweekly, with 96 gallon toters . Hauler
stated that recycling toters provided would be repositioned from existing customers
swapped under COJ proposal, not new toters and will belong to COJ, not AB .
Note: Staff anticipates shift to toter pickup for single stream recycling for all three
options, (65 gallon toter with weekly pickup if ADS , 96 gallon toter with biweekly pickup if
Republic, if rebid , AB can specify required option). Single stream recycling with toters has
been shown to provide a significant increase in recycling rate, reducing the amount of
trash taken to the landfill, while a lso reducing amount of wind borne litter originating from
open recycling bins .
BUDGET: Sanitation services are budgeted in account 420-4201 ·534·3401 (Pickup
and Haul Contract), with original budget of $1,250,000. Balance after four months of
service is approximately $833,000.
RECOMMENDATION: Staff recommends exercising the option for extension contained in the
current contract with Advanced Disposal Contract for seven years and authorizing the
City Manager to negotiate the extension for the City.
ATTACHMENTS: 1. Existing Month to Month Extension with ADS
2 . ADS Proposal Regarding Extension of Existing Solid Waste Contract.
3. Redman Consulting Group Evaluation of the ADS Proposal
4 . Excerpt from Existing Contract regarding Extensions
REVIEWED BY CITY MANAGER: -,.,.. J ~ af!,...y
Advanced Disposal
November 4, 2013
Mr. Rick Carper
Public Works Director
City of Atlantic Beach
1200 Sandpiper Ln.
Atlantic Beach, FL 32233
AGENDA ITEM# SG
MARCH 10, 2014
RE: Agreement Between the City of Atlantic Beach and Advanced Disposal Services Jacksonville,
LLC for Solid Waste, Yard Waste and Recycling Collection and Disposal Services
Dear Mr. Carper,
On May 31, 2007 Advanced Disposal Services entered into the above referenced Agreement for a seven
(7) year term until May 31, 2014.
As discussed, Advanced Disposal would agree to extend the agreement for an additional three (3) month
period. After such time the agreement would then extend for one (1) month on a month to month
basis. Any modification to the extension agreement must be made ninety (90) days prior to the date to
be modified.
This letter is to agree to the terms listed above upon council approval.
Sincerely,
Chris Hagan
Municipal Marketing and Governmental Affairs
Cc: Jim Hanson
7580 Philips Highway • Jacksonville, FL 32256
tel (907) 731-3440 • fax (904) 731-7094 • www.AdvancedDisposal.com
Printed on reclfcled paper. Please recycle. ~::,
Advanced Dlc;posal
January 22, 20 14
Rick Carp er
Public Works Director
City of Atlantic Beach
1200 Sandpiper Ln
Atlantic Beach, FL 32233
Mr. Carper,
AG ENDA ITI~M II 80
MAR Cil !tl, 20 14
Per our conversation on January I 6, Advanced Disposal would like to continue our relationship
with the City of Atlantic Beach and renew our existin g agreement.
It has been stated several times by city staff and city officials that Advanced Disposal provides
exception a l serv ice. This service provides for an on site s upervisor during the hours of operation,
95 gallon carts with city logo, c urbside recycling, curbside yard waste and commercial pickup
for the businesses within the c ity limits.
If the City of Atlantic Beach were to extend the existing agreement at its current rate, Advanced
Dis posal would then agree to provide all ofthe services li sted a bove as weJI as placing an
additional 65 gallon recycling cart for all residences within the city limits. Advanced Disposal
will also agree to pay aJl djsposal fees re lated to the residenti a l col1 ection in the City.
The current contract between Advanced Disposal and The City of Atlantic Beach expires May
31, 2014. As discusse~ we would like to extend the cwTent contract for an additional 7 years.
We look forward to providing the quality service you have come to expect and continue our
mutually beneficial relations hip. Thanks again for your time and please do not hesitate to call
my cell at (904) 2 19-9842 if I can be of any assistance.
Sincerely,
Chris Hagan
Municipal Marketing and Governmental Affairs
90 Fort Wade Road, Suite 200 Ponte Vedra, FL 32081 Tel (904) 737·7900 rax(904)636·0699
AdvancedOisposal.com
Consulting, In'
February 3, 2014
Mr. Rick Carper
Director of Public Works
1200 Sandpiper Lane
Atlantic Beach, Florida 32233
Subject: Solid waste collection rate review and comparison
Dear Mr. Carper:
AGENDA ITEM# 8G
MARCH 10, 2014
As per your request our company has reviewed the various rates and the types of services
provided for in the various municipalities as set forth in the City of Jacksonville (COJ)
auditor general's report you supplied us. What we found was the rates within that report
reflected the rates which those various municipalities charged each residential unit as
opposed to what those municipalities actually paid the contractors for providing those
services.
What we found was a very wide range of charges to the actual customer versus what
those municipalities actually paid for those services. Also, we found a wide range of
additional costs in the form of disposal cost where some of the municipalities included
the disposal cost and others charged the resident a separate line item as an additional cost
for disposal. One example used by the COJ auditor was Palm Beach County where the
cost for collection of the various categories of waste was $12.60 per month per resident
plus the County billed on the tax rolls an additional cost for disposal in the amount of
$174.00 annually or equal to $14.50 per month per residential unit. See attached spread
sheet.
As we investigated further we found the average cost, for the municipalities showing a
combination of collection and disposal, to be $21.32 per residential unit monthly. The
municipalities which did not show the disposal cost was $12.99 per residential unit
monthly. Once we calculated the various disposal costs throughout those areas we found
the average disposal cost to be $6.23 per residential unit monthly making the average
monthly cost in the amount of $19.22 per residential unit monthly.
After reviewing the local area pricing and services we found the disposal cost, based on
actual tonnage reports and the disposal cost at COJ, to equal $4.46 per residential unit
monthly. Adding this amount to the average of the area pricing of$12.99 per residential
7{)11 S. Atl~ntie Ave:nue • New Smyrna Beach, fL ~216\l • Offl~e: 300-427:-9$$9 • Fax: 38&427:4549
•· y,· •. • ·•• · ····. ~itg~ti~on\· · · · .·· ·· ·· ··· ··· · ·····
AGENDA ITEM# 8G
MARCH 10, 2014
unit monthly without disposal cost for a total average cost of $17.45 per residential unit
monthly. We have taken this a step further by calculating what the effect may have on
the current cost pricing for Jacksonville Beach and Neptune Beach if their service was
reduced from 2 x per week waste collection, 1 x per week yard waste and 1 x per week
recycling to 1 x per week waste collection, 1 x per week yard waste collection and 1 x per
week recycling. We assume that change in service may have as much as a 20% cost
reduction then making all things equal by adding in the disposal cost. The City of
Jacksonville Beach's cost with a disposal component would be $16.25 and the City of
Neptune Beach would be $16.12. The average ofyour two sister Cities with a reduction
in service levels including a disposal cost would be approximately $16.19 per residential
unit monthly. See attached spread sheet.
Conclusion:
The letter of offer from your current waste collection company, Advanced Disposal as
per their letter dated January 17, 2014, for a rate of $15.79 per residential unit monthly
including disposal is 2.5% lower than the estimated rate of your sister Cities if they
choose to allow a reduction in service. Your actual cost for collection would be $11.33
without disposal which is 28% lower than your present rate. Based on the comparison of
various municipalities and the quality of service being delivered from your current waste
collection company it would be our opinion the City of Atlantic Beach would not receive
better pricing by going through the competitive bid or request for proposal process.
The key is for you and the City to decide if you are pleased with the level of service you
are receiving for your residents and businesses and if the price is a fair price. Our
conclusion; the pricing is a very fair price. You may want to seek a moratorium on any
Consumer Price Index (CPI) increases for a minimum of 2 years on a 7 year renewal.
The CPI forgiveness should not be an accrued amount, it should be a true forgiveness and
as a result starting the CPI increase at the beginning of the third year.
If you have any questions please do not hesitate to call on me. We would be available at
any time to meet with you and the City Manager or City Attorney if they would like to
discuss this issue further.
Sincerely,
William S. Redman
Senior Vice President
CONTRACT AND FRANCHISE AGREEMENT FOR
SOLID WASTE, YARD WASTE AND RECYCLING
COLLECTION AND DISPOSAL SERVICES
(Excerpt)
SECTION 6 -CONTRACTOR'S RELATION TO THE CITY
I. EXTENSION OF CONTRACT
AGENDA ITEM# SG
MARCH 10,2014
The initial term of this contact may be extended for
additional seven (7) terms, under the existing terms and
conditions or as modified through additional negotiations, if
either party notifies the other in writing, not less than 180
days prior to the expiration of the initial term or subsequent
term, of the party's desire to renew the contract. This contract
may be extended by mutual consent of the parties. Any extensions
or modification of the initial contract shall be ratified by the
Atlantic Beach City Commission.