124-02 Ordinance AMENDED RECORD OF ORDINANCES
Dayton Legal Blank Co Form No. 30043
Ordinance No ..................................224-02 (Amended) Passed
AN ORDINANCE WAIVING COMPETITIVE BIDDING OR
REFUSE, RECYCLING, AND YARD WASTE COLLECTION
SERVICES AND AUTHORIZING THE CITY MANAGER TO
EXTEND THE EXISTING AGREEMENT WITH MODIFICATIONS
FOR SAID SERVICES FOR A PERIOD OF TWO YEARS
WHEREAS, the City of Dublin has readily demonstrated a desire to be innovative and
proactive in the area of solid waste management, and
WHEREAS, the City of Dublin has received numerous awards in recognition of its
many solid waste management innovations and programs; and
WHEREAS, the City of Dublin desires to continue employing innovative techniques
to achieve higher rates of waste diversion pursuant to State of Ohio, Central Ohio and
its own goals, and
WHEREAS, the City of Dublin agrees to cooperate with the Solid Waste Authority of
Central Ohio and Rumpke in planning and implementing a Pilot Program for certain
households within the City of Dublin to evaluate the potential costs and waste
diversion impact of a modernized collection program of refuse and recyclables, and
WHEREAS, the Pilot Program will be conducted to obtain information needed to
enable the City of Dublin to evaluate the feasibility of providing such a collection
system to all single-family households jointly in the City, and
WHEREAS, the Pilot Program will be considered successful if the monthly cost to
operate the program is less than the costs of a traditional manual collection system,
and
WHEREAS, City Council has determined it is in the best interest of the City of
Dublin to waive competitive bidding pursuant to Revised Charter Section 8.04 (c) and
extend its current contract with Rumpke with certain modifications
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin,
State of Ohio, of the elected members concumng that:
Section 1. City Council has determined it is in the best interest of the City of
Dublin to waive competitive bidding for solid waste collection services for the year
2003 and 2004 pursuant to Dublin Revised Charter Section, 8.04 (c).
Section 2. The City Manager is hereby authorized to extend the existing Rumpke
contract for the period of two years, beginning January 1, 2003 and ending December
31, 2004 with certain modifications being:
A. That Rumpke be paid a total rate of $10.29 per household per month for refuse,
recycling and yard waste collection services as stipulated in the existing
contract. That the $10.29 is inclusive of a Retired Facility Fee to be paid to the
Solid Waste Authority of Central Ohio by Rumpke.
B. That all other services, to include but necessarily limited to, bulk item pickup,
dumpster service and CFC removal and existing rates, except those previously
mentioned in l.a. above, be continued as per the existing contract.
C. That Rumpke participate in the Pilot Program as stipulated in but not limited
by the accompanying staff reports.
RECORD OF ORDINANCES
Dayton Legal Blank Co Form No. 30043
Ordinance No..._._....124-02-(Amended) Passed ..............._.....................................Pag.e.................
Section 3. That the Solid Waste Authority is hereby authorized to implement the
Pilot Program within the City of Dublin in cooperation and partnership with the City
of Dublin and Rumpke.
Section 4 That the City Manager is hereby authorized to execute any necessary
documents with Solid Waste Authority of Central Ohio and Rumpke, Inc. for the
provision of the Pilot Program.
Section 5. That this Ordinance shall take effect and be in force on the earliest date
permitted by law.
Passed this day of ~ , 2002
ay esiding Officer
ATTEST:
Q-
Clerk of Council
I hereby certify that copies of this
Ordinance/~°°....,~'~~~, were posted in the
City of Dublin in accordance with Section
731.25 of the Ohio Revised Code.
~k of Council, Dublin, Ohio
Office of the City Manager
5200 Emerald Parkway, Dublin, Ohio 43017-1006
Phone: 614-410-4400, Fax: 614-410-4490 M e m o
CITY OF DUBLIN
TO: Members of the Dublin City Council
FROM: Jane S. Brautigam, City Manager~a„ „„"s, ~
DATE: October 15, 2002
INITIATED BY: Dana L. McDaniel, Assistant City Manager/Director of Service
RE: Rumpke contract/pilot program
SUMMARY:
Staff has continued to negotiate with the Solid Waste Authority of Central Ohio (SWACO) and
Rumpke regarding the proposed automated collection program and extension of the Rumpke
contract. Negotiations are essentially finished. The following summarizes those items that
needed resolution:
1. Automated Pilot Program: The automated program will involve two 600 household
routes for a total of 1200 residents. Currently, Rumpke services 9700 households per
week with refuse, recycling and yard waste. A dual collection truck will service one
route making one pass (single pass system). Another truck will serve the second route
making one pass for refuse and the other pass for recycling (two pass system). The
following summarizes key points now resolved:
a. Participants: 1,200 residents will participate in the pilot. Rumpke will propose
two 600 household routes to Staff and SWACO. Staff and SWACO will review
and approve the routes.
b. Containers: Residents will be given two 65-gallon containers. These containers
will be different colors and labeled for refuse or recycling. SWACO has agreed
to provide 2,400 containers at a cost of approximately $75,000 for Dublin's use in
the first year, with option to buy at a depreciated rate after the first year.
c. Trucks: The SWACO will provide a dual automated collection vehicle. This
vehicle will serve 600 residents. The City will lease through Rumpke on a
monthly basis, another automated collection vehicle that will serve the other 600
residents. The two trucks will back each other up if mechanical failure is
experienced. The lease rate for the Rumpke vehicle will be $3,500 per month or
$42,000 per year.
d. Rumpke will run the two pass pilot for a full second year using the single pass
truck(s). A second truck will be needed in the second year and will be leased by
the City or by a grant if one can be obtained.
e. Other key points of the Agreement as described in the Staff Memo to Council,
dated September 11, 2002, remain unchanged.
2. Two-year Extension. As stated in the last Staff Memo to Council dated October 2, 2002,
Rumpke desires to extend the existing contract with modifications for the pilot program
for a period of two years, through December 31, 2004.
RECOMMENDATION:
Staff recommends the following:
1. Council adopt Ordinance 124-02 understanding the following budget implications:
a. Cost per household per month (based upon 9,700 households)
b. Total cost for collection increased by $158,304 per year, minimum.
c. Dublin's cost for containers: $0.00 in first year; approximately $69,120.00 in
second year.
d. Dublin's cost for truck lease: $42,000 per year ($3,500 per month)
2. Council adopt Ordinance 124-02 with an amendment to extend the Rumpke contract
through December 31, 2004.
3. Council adopt Ordinance 124-02 with an amendment to authorize the City Manager
to execute any necessary documents/agreements with Rumpke for their participation
in the automated program.
Thank you.
T:\word\DANA\MEMOS\COUNCIL\SWM contract update 101502.doc
Office of the City Manager
5200 Emerald Parkway, Dublin, Ohio 43017-1006
Phone: 614-410-4400, Fax: 614-410-4490 M e m o
CITY OF DUBLIN
TO: Members of the Dublin City Council
FROM: Jane S. Brautigam, City Manager
DATE: October 2, 2002
INITIATED BY: Dana L. McDaniel, Assistant City Manager/Director of Service
RE: Ordinance 124-02, Solid Waste Management Services and Automated Pilot Program
SUMMARY:
Staff has continued to meet and negotiate with the Solid Waste Authority of Central Ohio
(SWACO) and Rumpke regarding the proposed automated collection program, which is
influencing the extension of the Rumpke contract. In order to finalize negotiations with these
parties, staff is recommending that this ordinance be postponed for final consideration on
October 21, 2002.
The following are issues to be resolved:
1. Automated program. Rumpke has expressed a desire to conduct atwo-year automated
collection pilot program. As a result, Staff, Rumpke and SWACO are evaluating the
following changes to the pilot:
a. Two 60-gallon containers (90 if requested by resident) will be provided to
residents in the pilot program (one container for refuse and one container for
recycling). These will be color coded and marked to identify which is refuse and
which is recycling. In the first year of the program, Rumpke will use a "single
source" automated collection vehicle to collect recyclables. In the second year,
Rumpke will use atwo-truck collection concept (one automated for refuse and
one automated for recycling). These two methods will be obvious to the
customer, as the two containers will be used in both methods. Rumpke desires a
full year assessment of each method to better understand the complete cycling of
vehicles/routes as well as seasonal loads and weather impacts. Effectively, three
methods will be assessed, the two automated systems discussed previously and
the manual system.
b. SWACO is requesting the City's participation in the purchase of a number of
containers (quantity and price yet to be determined).
c. Adequate numbers and types of trucks must be available to ensure quality service.
SWACO, Rumpke and Staff are currently assessing the need for an additional
single stream truck to be available as back up. Staff's concern is that only one
vehicle is currently available, and this could skew data if the truck experiences
significant downtime. SWACO, Rumpke and Staff are approaching the vendor for
10-02-02
Dana McDaniel/Service
Ordinance 124-02
Page 2
an additional "loaner" truck at no cost or the ability to lease such a vehicle for one
year. In the interim, "loaners" or leases will be sought for the second year
program. Grant dollars will also be sought for the second year program. SWACO
is negotiating with Grove City for a similar pilot. It is possible that Grove City
and Dublin could share the trucks for their respective pilots.
2. Two-year extension. Rumpke has expressed a willingness to extend the Dublin contract
for a total of two years at the rate previously quoted. The City would save $572,688
compared to the current market rate, assuming that no escalator rate is included.
However, some of that savings could be used for containers and/or truck leases over the
next two years. Staff would estimate this to be approximately $100,000.
RECOMMENDATION:
Staff recommends that City Council table Ordinance 124-02 until its next regularly scheduled
meeting at which time Staff will present more specific information per the summary above.
Thank you.
Office of the City Manager
5200 Emerald Parkway, Dublin, Ohio 43017-1006
Phone: 614-410-4400, Fax: 614-410-4490 M e m o
CITY OF DUBLIN
TO: Members of the Dublin City Council
FROM: Jane S. Brautigam, City Manager ~"a,N„_~,
DATE: September 11, 2002
INITIATED BY: Dana L. McDaniel, Assistant City Manager/Director of Service
RE: Ordinance 124-02
SUMMARY:
The City's contract for the collection of residential refuse, recycling, and yard waste will expire
December 31, 2002. Ordinance 124-02 waives competitive bidding and extends the contract.
RECOMMENDATION
Staff recommends City Council approve City Ordinance 124-02. This Ordinance will:
1. Waive competitive bidding. The Revised Charter of the City of Dublin allows Council
to waive competitive bidding if Council determines that a waiver of the competitive
bidding requirement is in the best interest of the City" (p. 19, § 8.04 (c)). Staff concurs
that extending the Rumpke contract at a lower than market rate and participating in the
proposed Pilot Program is in the best interest of the City of Dublin.
2. Extend Rumpke contract. Authorize the City Manager to extend the existing Rumpke
Contract for one year. Extending the existing Rumpke contract for refuse, recycling
and yard waste collection services at a total rate of $10.29 per household per month
(current rate is $8.93 per household per month). Compared to the current market rate of
$12.75 per household per month, the City of Dublin will save approximately
$286,344.00 in one year.
3. Pilot Automated Collection Program. In partnership with the City of Dublin and the
Solid Waste Authority of Central Ohio (SWACO), Rumpke will conduct a pilot
automated collection program for refuse and recyclables. The Pilot Program will
provide valuable information to the City, Rumpke and SWACO to better understand the
economics and efficiencies of an automated system. Depending on the outcome of this
Pilot Program, the City may redesign its collection program beginning in 2004 to take
advantage of these efficiencies and to better serve residents.
OTHER OPTIONS
Other options to consider include, but are not limited to:
9-11-02
D. McDaniel
Ordinance 124-02
Page 2
1. Bidding refuse, recycling and yard waste collection services as they are currently
provided. Going out to bid in the current market is estimated to cost the City of
Dublin an additional $286,244.00 at a minimum (See background discussion).
2. Attempt to bid refuse, recycling automated collection and yard waste collection in
the current market. The City will not likely receive bids or will receive bids that
will be uneconomical. Currently, there are no residential providers who provide
automated collection in Central Ohio. While automated collection is being done in
other parts of Ohio and around the country, there is no immediate understanding of
the impact of transitioning to this technology in terms of cost and/or customer
response. Capitalizing operations to collect in this manner would not be cost
effective, as other cities are not yet transitioning to this system. Therefore, Staff and
SWACO desire to create an environment in which this system can be tested and
understood.
3. Do nothing. This is not an option as the City's existing contract will expire
effective December 31, 2002 and no further extensions are permissible under the
contract.
BACKGROUND OF EXISTING CONTRACT
In 1997 the City of Dublin entered into a contract with Rumpke to provide refuse, recycling,
yard waste, bulk item, dumpster and CFC collection services. This contract was for afive-year
period and was fixed at the total rate of $8.93 per household per month for curbside collection
of refuse, recycling and yard waste. Rumpke was willing to lock into this fixed rate with no
annual increase in exchange for afive-year contract. Also, due to the timing of the contract, the
City of Dublin was grandfathered by the SWACO and not required to pay the Retired Facility
Fee of $.63 per household per month. This alone has resulted in a savings to the City of
approximately $350,000 over the last five years. Beginning in 1997, the City of Dublin was one
of the lowest rates in Central Ohio and, at the time, even lower than some cities of comparison
around the State. The City of Dublin has been able to maintain this rate while others have
continued to bid in shorter increments of time, predominately using the same provider
(Rumpke) and paying an ever-increasing rate. Staff estimates that the City has saved
approximately $900,000.00 over the last 5 years on refuse, recycling and yard waste collection,
alone.
As of December 31, 2002, the City's contract with Rumpke will expire and no further
extensions are permissible under this contract. Additionally, upon expiration of this contract,
the City of Dublin will be subject to the Retired Facility Fee leveraged by the SWACO.
9-11-02
D. McDaniel
Ordinance 124-02
Page 3
CURRRENT MARKET CONDITIONS
New Albany is the most recent market indicator of the current collection rates. As recently as
two weeks ago, New Albany accepted Rumpke's bid to provide refuse, recycling and yard
waste collection services. Their rate is $12.75 per household per month, a significant increase
over Dublin's current rate. By going out to bid, the City of Dublin would risk receiving bids
that could cost the City as much as $444,648.00 more per year than its current contract and
likely still have Rumpke as its provider.
ASSESSMENT OF CURRENT SERVICE BY RUMPKE
Generally, Rumpke's service has at times been both very good and at times not so good.
Overall, Customer complaints average less than 1 % per week. Staff considers this very
acceptable given that there are over 27,000 calls for service or opportunities to make mistakes
per week. Repetitive misses have been minimized. Certain measures were put into place to
enable the City to step in and correct service issues and to not pay Rumpke for services
provided by City staff. This has not been a routine occurrence. City staff and Rumpke work
very closely to see that customer concerns are addressed. Staff's concerns with Rumpke are
primarily with the impact of holidays on collection schedules, resulting in late pickups; wearing
of uniforms; care and maintenance of Rumpke fleet; and turn over of Rumpke staff. Rumpke
has consistently provided route supervisors who have significantly improved responsiveness
and accountability. While there are areas Rumpke can improve on, Staff has found them to be
responsive. Recently, Staff was informed that Shawn Meadows, District Operations Manager,
has returned to Rumpke and that certain operational changes were being made. Staff is
confident that services can continue to be improved and/or maintained at an acceptable level.
Additionally, Rumpke is conducting similar pilot programs in the Cincinnati area. The results
of these pilot programs are not yet known.
PROPOSED PROJECT/SERVICE
SWACO has been studying automated collection services over the last couple years. They
conducted a pilot program with the City of Columbus and found that certain efficiencies can be
gained. However, SWACO desires to pursue additional pilot programs to better refine their
findings. SWACO has expressed a desire to partner with the City of Dublin and Rumpke to
conduct an automated collection pilot program. The following outlines the program design and
will be incorporated into the final Agreement between the parties:
1. Project Criteria:
a. Must be designed to the best approach as a long-term solution and be
sustainable.
9-11-02
D. McDaniel
Ordinance 124-02
Page 4
b. Some elements of the existing system cannot be changed, i.e. unlimited
refuse, bulk collection, yard waste collection, dumpster collection.
c. The program must ultimately be transferable to all of Dublin.
d. The program must be designed to demonstrate increased diversion of
recyclables and yard waste. The program must minimize the number of
collection vehicles used in the community.
e. The program must be convenient for users and cost-effective for the City.
2. SWACO Responsibilities:
a. Provide overall project management.
b. Design and implement the pilot project by providing technical assistance
from SWACO staff and their consultants.
c. Provide promotional and educational materials and pay for postage and
mailing expenses.
d. Conduct surveys as necessary to evaluate the pilot project.
e. Collaborate with the City of Dublin and Rumpke on the scope of services for
a consultant to perform a time study, capture rate analysis, evaluate and
report on project costs and engage the consultant.
f. Provide adual-collection truck. Use of truck will be per an Agreement
between SWACO and Rumpke.
g. Provide 96 gallon wheeled waste containers as needed and 60 gallon
wheeled recyclable containers for the entire pilot area (still being
negotiated).
h. Record load-specific recyclables and trash collected from the pilot project at
the transfer stations (if applicable).
i. Collaborate with the City of Dublin and Rumpke on the development of a
public education program and engage a communications consultant (still
being negotiated).
3. City of Dublin Responsibilities.
a. Determine geographically contiguous neighborhoods for the pilot program.
b. Continue to pay Rumpke for collection services, i.e. extend existing contract
with rate modifications.
c. Provide assistance and cooperate with the Authority during project
development and implementation.
d. If the program proves to be cost-effective and acceptable to the City of
Dublin, the City agrees to pursue implementation of an automated collection
program.
e. Adopt a Resolution authorizing the SWACO to implement the pilot project.
9-11-02
D. McDaniel
Ordinance 124-02
Page 5
4. Rumpke Responsibilities.
a. Provide automated collection of refuse and source-separated, single-stream
recyclables for 500-1000 households (number of households still being
negotiated).
b. Provide recyclables processing.
c. Continue to provide manual services to households in the pilot program to
include weekly yard waste and bulk item collection per the current contract.
d. Provide the weights of refuse and recyclable stream collected within the
pilot program area with diversions accomplished, and a comparison to the
diversions accomplished utilizing the current collection methodology, as
performed throughout the non-pilot area. Cooperate with SWACO to share
pilot program information that assists with the understanding of efficiencies
gained.
e. Rumpke will agree to extend the existing contract for one year and
participate in the pilot program, as stipulated, in exchange for a total rate
increase from $8.93 per household per month to $9.66 per household per
month (without the Retired Facility Fee) or to $10.29 per household per
month (with the Retired Facility Fee).
CONCLUSION
Staff recommends Council pass Ordinance 124-02. The extension of the existing Rumpke
contract is beneficial to the City's budget. Also, the pilot program will provide the City of
Dublin, SWACO and Rumpke the opportunity to assess new technology and collection
methods that may ultimately lead to improved efficiencies, savings, greater diversion rates and
improved customer service. The extension of the existing contract and pilot program are in
keeping with the innovative spirit of the City of Dublin and its long history of award winning
solid waste management programs.
Thank you for considering this proposed legislation.