75-04 OrdinanceRECORD OF ORDINANCES
Davton Legal Blank, Inc. Form No. 30043
Ordinance No.
75-04
AN ORDINANCE ACCEPTING THE LOWEST AND BEST BID FOR
SOLID WASTE COLLECTION SERVICES WITH RUMPKE OF OHIO,
INC. AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A
CONTRACT FOR PROCUREMENT OF SAID SERVICES.
Passed
20
WHEREAS, the City's current contract agreement for solid waste services expires December
31, 2004; and
WHEREAS, bids have been advertised and received through an intergovernmental process and
a collaborative effort of the City of Bexley, City of Dublin, City of Gahanna, City of Hilliard,
City of Westerville, Village of New Albany, Mifflin Township, Plain Township, and
Washington Township, and said bids have been duly reviewed by City staff and attorneys from
Eastman & Smith, Ltd.; and
WHEREAS, the bid process utilized an innovative "unbundling" of disposal and collection
solid waste services to achieve the most competitive and best service-oriented price; and
WHEREAS, Dublin City Council has determined that the bid submitted by Rumpke of Ohio,
Inc. is the lowest and best bid for the project, and that said company shall be awarded athree-
year contract with the possibility of extending an additional two years;
WHEREAS, the price for such services reflects an amount not to exceed of $12.37 per
household per month for year one, $12.47 per household per month for year two, and $12.57 per
household per month for year three; and
WHEREAS, the collection and disposal of refuse and recycling from municipal facilities will
be included in the prices specified above, along with the collection and disposal of refuse and
recycling from seven special events in addition to minor construction projects of City facilities;
and
WHEREAS, "pass-through" language is included in the contract to incorporate savings from
increased diversion from the landfill due to recycling and reductions in facility tipping fees;
NOW, TIC- EREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of
Ohio, ~ of the elected members concurring that:
Section 1. That the bid submitted by Rumpke of Ohio, Inc. as specified above for solid waste
disposal and collection services in the City of Dublin is hereby accepted.
Section 2. That the City Manager is hereby authorized to enter into a contract for the services
as listed above and as specified within the bid proposal and the City's bid documents on file in
the Department of Service.
Section 3. That the term of the contract shall be for a period of three years with the possible
extension of an additional two years, thereby extending from January 1, 2005 to December 31,
2007 unless amended or terminated under the terms of the contract.
Section 4. This Ordinance shall take effect and be in force on the earliest date permitted by
law.
P ssed this ~ ~~ day of ~6 (1 ~C.l'h ~Jt~~ , 2004
~-~~iM
~~
Mayor -Presiding Office
ATTEST:
~ C~
Clerk of Council
I hereby certify that copies of this
Ordinance/Resolution were posted in the
City of Dublin in accordance with Section
731.25 of the Ohio Revised Code.
DEgluty Clerk of Council, Dublin, Ohio
CITY OF DUBLIN
Office of the City Manager
5200 Emerald Parkway, Dublin, Ohio 43017-1006
Phone: 614-410-4400, Fax: 614-410-4490
Memo
TO: Members of the Dublin City Council
FROM: Jane S. Brautigam, City Manage~~~s . (}j pvvv/
DATE: October 26, 2004 /
INITIATED BY: Beth Y. Lozier, Maintenance Supervisor/Division of Streets and Utilities
THROUGH: Jane S. Brautigam, City Manager/Acting Director of Service
RE: New Solid Waste Services Contract beginning 2005
Background
Earlier this year, the City of Dublin formed a regional working group to study the solid waste
services contracts coming up for bid in several jurisdictions and led the way in crafting a joint
bidding process to achieve substantial savings through volume based bidding. The enclosed
Council memo, dated May 28, 2004, outlines the complete background of the joint bid process
for solid waste services.
Summary
City of Dublin staff, after providing a leadership role in the joint bid process is pleased to report
that this cooperative effort was extremely successful. The Joint Bid Team received several
competitive bids and after a review of the bids, staff is recommending that the contract for solid
waste services be awarded to Rumpke of Ohio, Inc. pursuant to Ordinance 75-04.
Discussion
Bid packages were sent to seven bidders requesting bids for over 40,000 households per month.
The Joint Bid Team opened bids for the collection of refuse, recyclables, yard waste and bulky
items from residential units and for the collection of refuse and recyclables from municipal
facilities on September 29, 2004.
There were three bids received for collection, which included the earlier bid price for disposal.
In evaluating the bids, the Joint Bid Team "unbundled" disposal from collection services to gain
an understanding of costs associated with the various types of service and levels of service.
Unbundling the costs required the bidders to provide a clear and open price on the destination of
solid waste collected and all associated costs of disposal. Additionally, the Joint Bid Team's
initial assumption held true that unbundled bids would be more competitive.
The following communities have either formally accepted or are in the process of accepting the
bid proposals from Rumpke:
• City of Bexley
• City of Dublin
• City of Gahanna
• City of Hilliard
2
• City of Westerville
• Village of New Albany
• Mifflin Township
• Plain Township
• Washington Township
If accepted by each community, the total of the individual contracts will amount to over $31
million dollars for solid waste services for five years and will represent an extremely competitive
price for the City of Dublin.
Local Waste Services
No Bid
Rumpke Waste of Ohio (See Table 1.0)
1st year - $12.37 per household per month
2nd year - $12.47 per household per month
3rd year - $12.57 per household per month
Waste Management of Ohio
1st year - $16.43 per household per month
2nd year - $16.92 per household per month
3rd year - $17.43 per household per month
4th year - $17.95 per household per month
5th year - $18.49 per household per month
Republic Waste Services
1st year - $18.07 per household per month
2nd year - $18.62 per household per month
3rd year - $19.17 per household per month
4th year - $19.75 per household per month
5th year - $20.34 per household per month
The bid amounts for the Joint Bid Team's bid are all "not-to-exceed" prices. The company that
is awarded the contract from the Joint Bid Team will be required to use the bid numbers for
disposal services with each of the various communities. For the length of contract, the price for
disposal will not increase above these numbers unless there are additional government
regulations that affect the cost of disposal. Any increase due to new regulations would have to
be approved by the members of the group. Similarly, if there were a decrease in the tonnage of
waste going to the landfill, then each community would realize a "pass-through" savings.
Possible "pass-through" savings are likely in the near future:
• An 8.5 cent decrease per household per month due to the Solid Waste Authority's
proposed rates versus "not-to-exceed" bid rates
• A $1.37 decrease per household for every senior citizen
• An approximate 53 cent savings per household for automated collection (increased
recycling results in a decrease in tipping fees on lower tonnages of refuse}
In the past, the City of Dublin has not seen this type of savings for the above-mentioned items.
The potential savings could equate to $100,000 per year for five years.
Recommendations
City of Dublin staffrecommends that the solid waste services contract be awarded to Rumpke of
Ohio, and that the Council adopt Ordinance 75-04 on second reading.
T:lOFF1C~~1W%DpC.'SUSB COUNCB.20DM1~Solid WasteCoantilS~a~topa[10260A~v1iNmesevisioo6.da
Table 1.0
Year 1 Year 2 Year 3 Year 4 Year 5
m ke
R WM Rum ke WM Rum ke WM Rum ke WM Rum ke WM
40,0001 r
2 r u
11.98
12.22
12.37 NB
NB
NB
12.42
12.47
NB
NB
12.57
NB
r 12.50 NB 12.60 NB 12.70 NB 12.80 NB
5 r 12.67 16.43 12.77 16.92 12.87 17.43 12.97 17.95 13.07 18.49
6 r NB 16.43 NB 16.92 NB 17.43 NB 17.95 NB 18.49
7 r
30,0001 r
2 r
3 r NB
12.23
12.31
12.46 16.43
NB
NB
NB NB
12.51
12.56 16.92
NB
NB NB
12.66 17.43
NB NB 17.95 NB 18.49
r 12.60 NB 12.70 NB 12.80 NB 12.90 NB
5 r 12.74 17.27 12.84 17.79 12.94 18.32 13.04 18.87 13.14 19.44
6 r NB 17.27 NB 17.79 NB 18.32 NB 18.87 NB 19.44
7 r
17,5001
r
3 r NB
12.73
12.63
12.81 17.27
NB
NB
NB NB
12.83
12.91 17.79
NB
NB NB
13.01 18.32
NB NB 18.87 NB 19.44
r 12.89 NB 12.99 NB 13.09 NB 13.19 NB
5 12.98 18.60 13.08 19.16 13.18 19.73 13.28 20.32 13.38 20.93
6 r NB 18.60 NB 19.16 NB 19.73 NB 20.32 NB 20.93
7 r
7,500 1 r
r
3 r NB
13.26
12.98
13.37 18.60
NB
NB
NB NB
13.18
13.47 19.16
NB
NB NB
13.57 19.73
NB NB 20.32 NB 20.93
r 13.36 NB 13.46 NB 13.56 NB 13.66 NB
5 r 13.48 21.96 13.58 22.62 13.68 23.30 13.78 24.00 13.88 24.72
6 NB 21.96 NB 22.62 NB 23.30 NB 24.00 NB 24.72
7 r
2,500 1 r
2 r
3 NB
13.29
13.03
13.46 21.96
NB
NB
NB NB
13.23
13.56 22.62
NB
NB NB
13.66 23.30
NB NB 24.00 NB 24.72
r 13.40 NB 13.50 NB 13.60 NB 13.70 NB
5 13.52 27.42 13.62 28.24 13.72 29.09 13.82 29.96 13.92 30.86
6 r NB 27.42 NB 28.24 NB 29.09 NB 29.96 NB 30.86
7 r NB 27.42 NB 28.24 NB 29.09 NB 29.96 NB 30.86
T:`AFFICE~WP~DOCSUSB COUNCll. 2004~Solid WasteCam~ilSfa®teport102604withlm~evis~ons.da
Office of the City Manager
5200 Emerald Parkway, Dublin, Ohio 43017-1006
Phone: 614-410-4400, Fax: 614-410-4490
~r~rv ~r+ nrtrrr rx
TO:
FROM:
DATE:
INITIATED BY:
THROUGH:
RE:
Background
Memo
Members of the Dublin City Council
Jane S. Brautigam, City Manager
May 28, 2004
Beth Y. Lozier, Maintenance SupervisorlDivision of Streets and Utilities
Dana McDaniel, Deputy City Manager/Director of Service
Joint Bidding Process Overview for Solid Waste Management Services
City of Dublin staff is providing a leadership role to facilitate acooperative/joint bid process for
solid waste management services, which includes a number of municipalities and townships. The
participating communities hope to slow or reduce the rising cost of solid waste management
services through this cooperative/joint or volume-based purchase of these services.
The following communities have agreed to participate in a cooperative invitation to bid ("Joint
Bid Invitation") for the collection and disposal of solid waste and the collection and processing
of recyclable materials and yard waste generated at residential units within their communities
("Services"): Dublin, Gahanna, Hilliard, New Albany, Plain Township, Washington Township,
and Westerville ("Joint Bid Team"). Several other communities within Franklin County may
participate in the Joint Bid Invitation offering bidders an opportunity to provide the services to
approximately 50,000 households.
Two Joint Bid Invitations will be advertised resulting in two (2) separate and distinct bid
submissions:
(1) Designated Facility Bids will be accepted late June or early July, 2004 for the: (a) disposal
or transfer for disposal of solid waste; (b) processing of recyclable materials; and (c) composting
of yard waste collected from within participating communities ("Facility Designations"); Bids
will be accepted for anot-to-exceed price per ton per year for each of the Facility Designations,
for terms ranging from one to seven years based on number of households to be served.
(2) Collection Service Bids will be accepted by late September, 2004 for the collection,
transportation and delivery of the appropriate materials to the Designated Facilities ("Collection
Services"). Bidders for the Collection Service Bids must submit the cost of the Collection
Services for anot-to-exceed price per household for the terms and number of households to be
served. Bids will be accepted for two alternate methods of collection: the traditional manual
method of collection (separate passes for the collection of solid waste, recyclables and yard
2
waste) and automated collection (similar to that being piloted in Dublin). Bidders may submit
bids for one or both alternates.
Two specifications (disposal and collection) are being sought in order to "unbundled" these costs
which have been traditionally "bundled". "Unbundling" these costs will require bidders to be
clear and open on the destination of solid waste collected and all associated costs of disposal.
Likewise, collection costs, in and of themselves, will be significantly "unbundled" to gain an
understanding of costs associated with the various types and levels of service. By doing this, a
more thorough understanding of costs associated with collection can be gained. Additionally, it
is feasible that collection bids will be more competitive.
Bid specifications are being developed with the input of all communities involved. The idea is to
formulate specifications for disposal and collection services, which address the needs of all
communities collectively. It appears to date that the participating communities are reaching
consensus regarding both disposal and collection needs. By doing so, specifications can be
formulated for each service that meets the common need of all participating communities while
making it reasonable for potential bidders to provide a bid.
Each community will evaluate bids submitted. Each community can then accept or reject bids
based on its required standard of service and individual needs. Bidders are advised that any or all
of the participating communities may select the volume-based bid; or, may select the individual
community bid; or, may elect not to select any bid and abandon participation in the Joint Bidding
Process. Since a joint bid for these services, of this scale and involving this many potential
communities has not been done in this region before, ongoing pre-bid conferences are being
conducted with potential bidders to insure the design of the bid specifications are
comprehensible and feasible.
Recommendation
Council is not required to take any action at this time. Staff felt it necessary to advise Council of
the process it has chosen to bid the City's solid waste management services. As Council may
recall, the City's current solid waste management Agreement is continuing with Rumpke under
an extension. Staff will bring to Council its recommendations and any necessary legislation
accepting the lowest and best bids for disposal and collection services and enter into any
necessary Agreements. This cooperative/joint bid process is similar to other cooperative
purchasing processes the City of Dublin has participated in and is permitted by state law, the
Revised Charter of the City of Dublin Articles II, 2.04 and VIII, 8.04(b) and the Dublin, Ohio
Code of Ordinances, §37.04(D) Cooperative Purchasing Programs.
Please address any questions to Dana McDaniel at 410-4751. Thank you.
C:\Docum®IS ~d Settmgs`caplma\Lacal Sedmgs\Temp\jointbid.U7