36-09 ResolutionCITY OF DUBLIN..
Office of the City Manager
5200 Emerald Parkway • Dublin, OH 43017-1090
Phone: 614-410-4400 • Fax: 614-410-4490
To: Members of Dublin City Council
From: Terry Foegler, City Manager -~/~
Date: July 30, 2009
Initiated Sy: Ron Burns, Director of Streets & Utilities
Summary
Re: Resolution 36-09 Bid - 2010-2014 Solid Waste Contract
Memo
The current solid waste contract with Rumpke expires on December 31, 2009. As a result, the
Solid Waste Consortium initiated bid processes during 2009. Attorneys from Eastman & Smith,
Ltd. provide legal representation to the consortium. Legal fees are paid for by the Solid Waste
Authority of Central Ohio (SWACO). Consortium members include: Dublin, Bexley, Gahanna,
Reynoldsburg, Westerville, Blendon Township, Mifflin Township, Plain Township, Washington
Township and New Albany.
In an attempt to more clearly understand the costs associated with yard waste and recycling, solid
waste services were bid in two different ways. First, separate bids were solicited for yard waste
processing and recycling processing. Secondly, a bid was solicited for collection services
including dumping fees associated with trash.
The bid processes were designed to attract competition, as well as provide payback in the form
of incentives for yard waste and recyclable materials. The process was successful in attracting
multiple bidders for all but collection services. Bidders offered incentives, but the incentives
were insignificant in comparison to total contract costs for each consortium community.
Incentives offered were also offset by increases in tipping fees. Although several collection
contractors (including Republic and Waste Management) attended the solid waste collection pre-
bid meeting, Rumpke was the only bidder for this service. Both Republic and Waste
Management submitted no-bid letters.
Bid Results
Rumpke has proposed an alternative bid that includes utilizing the existing, current contract
specifications (including trash, recycling, yard waste and collections) with a fuel adjustment
clause added. The proposal staff is recommending includes afive-year contract term (2010 -
2014) with two, one-year renewal options. Under this bid, the cost remains constant for five
years at $15.89/month/household. This price results in a 9 percent increase over the current
consortium contract price of $14.57 per household per month in the first year, with no further
increase for the next four years. Tipping fees for yard waste and recyclable materials will remain
at $0/ton for all five years. Acceptance of this bid requires the consortium communities to reject
all previous bids on yard waste and recycling processing.
Memo re. Ordinance 39-09 - 2010-2014 Five-Year Capital Improvements Prob am
July 30, 2009
Page 2 of 2
Fuel Adjustment Clause
Both the Contractor and the City of Dublin may request a quarterly per residential unit fuel price
adjustment for collection services if diesel fuel prices increase or decrease by $.25/gallon or
more. The base price of diesel fuel as reported by the Energy Information Administration of the
United States Department of Energy (EIA) was $2.17/gallon on May 18, 2009. This price will
serve as the base price of diesel fuel for purposes of calculating fuel adjustments during the
contract period. The chart below shows how changes in diesel fuel prices will affect Dublin's
cost for solid waste removal:
Price/Gallon Increase Per House/MonCh Increase Monthly Increase Anmial Increase
$.25 $.08 51,011 512,138
5.50 5.17 S2,150 525,794
5.75 5.25 53,161 537,932
51.00 5.33 54,172 550,070
On July 20, 2009, the EIA reported diesel fuel prices for this region at $2.47/gallon. This results
in a $.25 increase per the fuel adjustment clause and increases Dublin's solid waste removal
price per house per month by $.08.
Regional Price Comparisons (Non-Consortium Members)
Entity Price PHPM Contract End Date
Worthington $15.33 12-31-09
Whitehall $15.38 12-31-09
Madison Township $16.59 05-31-10
Powell $16.38 12-31-09
Genoa Township $16.88 12-31-09
Service Levels
Acceptance of Rumpke's bid will provide the same services on the same days by the same
contractor to Dublin residents currently receiving solid waste services. Residents will not notice
any difference as the City changes from the expiring 2009 contract to the new 2010 - 2014
contract.
Recommendation
All ten consortium communities agree that Rumpke's five-year alternative bid at $15.89/month
per household is a very competitive price. Rumpke has provided satisfactory service to the City
in the past. Staff recommends Council approval of Resolution 36-09, authorizing the City
Manager to enter into a 2010-2014 solid waste contract with Rumpke of Ohio, Inc. at a rate of
$15.89/mouth per household.
RECORD OF RESOLUTIONS
Oayloo legal B'.aok. Inc.. Form !vo 30045
36-09
Resolution No. Passed , 20
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
ENTER INTO AN AGREEMENT WITH RUMPKE OF OHIO,
INC. TO BE THE SOLE PROVIDER OF SOLID WASTE,
RECYCLABLE MATERIALS AND YARD WASTE
COLLECTION SERVICES FOR WASTE GENERATED BY
RESIDENTIAL UNITS, MUNICIPAL FACILITIES AND
DURING SPECIAL EVENTS
WHEREAS, the City's current contract agreement for solid waste services expires on
December 31, 2009; and
WHEREAS, pursuant to Section 715.43 of the Ohio Revised Code, the City may
establish such collection systems and designate solid waste facilities as may be
necessary or appropriate to provide for the safe and sanitary management of solid
waste, including recyclable materials and yard waste generated within the City; and
WHEREAS, the City has determined that it is in the best interests of the City and its
residents that the City arrange for the collection, transportation and delivery for disposal
or processing of all solid waste, recyclable materials and yard waste generated at
residential units and municipal facilities and during special events located within the City
from a single contractor on an exclusive basis; and
WHEREAS, on February 19, 2009 and February 26, 2009, the City participated in a
joint bid process with several communities located within the jurisdiction of the Solid
Waste Authority of Central Ohio -the 2009 Solid Waste Consortium, comprised of: the
City of Bexley, City of Dublin, City of Gahanna, City of Reynoldsburg, City of
Westerville, Village of New Albany, Blendon Township, Mifflin Township, Plain
Township, and Washington Township. Through advertisement in The Columbus
Dispatch, qualified providers of Collection Services were invited to submit bids to
provide such Collection Services on the terms and conditions contained in a proposed
Collection Agreement, attached hereto as Exhibit A; and
WHEREAS, prior to the official opening of the bids by the 2009 Solid Waste Consortium
and consideration of all bids for Collection Services, the City determined that the
Contractor is qualified to provide the Collection Services to the City; and
WHEREAS, on May 21, 2009, the Contractor submitted an alternate bid to become the
sole provider of Collection Services for the benefit of the City and its residents that is
intended to encourage increased recycling in the City; and
WHEREAS, the alternate bid is based upon using the same recycling service as
presently performed and current recycling containers, rendering exclusive facilities
awards unnecessary; and
WHEREAS, the City has determined that the alternate bid submitted by the Contractor
will encourage increased recycling in the City by securing unlimited delivery and
processing of recyclable materials with no fee for the life of the collection agreement,
among other benefits; and
WHEREAS, it has been determined that Rumpke of Ohio, Inc. has submitted the lowest
and best bid for the project and that said company shall be awarded afive-year contract
with the potential for two, one-year extensions; and
WHEREAS, the bid price for collection services reflects an amount not to exceed
$15.89 per household per month for each of the five years of the contract; and
WHEREAS, the City and the Contractor negotiated and agreed upon terms and
conditions for performance of the collection services in conformance with Exhibit A, the
Collection Services Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Dublin, State
of Ohio, _~of the elected members concurring that:
RECORD OF RESOLUTIONS
Daylon Legal Blank, Inc., Form No, 30045
36-09 Page 2
Resolution No. Parsed , 2U
Section 1. The bids from all facilities to receive and process recyclable materials or
yard waste are hereby rejected; and
Section 2. The City Manager is authorized to enter into an Agreement with Rumpke of
Ohio, Inc. that is substantially in accordance with Exhibit A; and
Section 3. All formal actions of the City Council of the City of Dublin, Ohio concerning
and relating to the adoption of this Resolution were adopted in an open meeting in
compliance with all legal requirements, including Ohio Revised Code §121.22.
Section 4. The term of the contract shall be for a period of five years, from January 1,
2010 to December 31, 2014 with two, optional one-year extensions.
Section 5. This resolution shall take effect and be in force from and after the earliest
date provided by law.
Passed this;,' ~~day of ST , 2009.
Mayor -Presiding Officer
ATTEST:
Clerk of Council