===== PDF PAGE 43 ===== [Extraction: OCR (rendered-page OCR)] CITY OF WEST CHICAGO FINANCE COMMITTEE AGENDA ITEM SUMMARY ITEM TITLE: AGENDA ITEM NUMBER: s. 6. Resolution No. 19-R-0038 - Residential Solid Waste Collection Contract with Groot Industries FILE NUMBER: COMMITTEE AGENDA DATE: 8/22/19 COUNCIL AGENDA DATE: 10/7/19 STAFF REVIEW: SIGNATURE APPROVED BY CITY ADMINISTRATOR: SIGNATURE. ITEM SUMMARY: Please see the attached memorandum. STAFF RECOMMENDATION: Staff recommends that the City continue using Groot Industries as its residential solid waste collection contractor. COMMITTEE RECOMMENDATION: The Finance Committee unanimously recommends approval of a five-year contract renewal with Groot Industries. ===== PDF PAGE 44 ===== [Extraction: OCR (rendered-page OCR)] RESOLUTION NO. 19-R-0038 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE A CERTAIN CONTRACT WITH GROOT INDUSTRIES INC. — RESIDENTIAL SOLID WASTE, RECYCLING AND YARD WASTE COLLECTION BE IT RESOLVED by the City Council of the City of West Chicago, in regular session assembled, that the Mayor is hereby authorized to execute a certain contract with Groot Industries, Inc. for residential solid waste, recycling and yard waste collection, a copy of which is attached hereto and incorporated herein in substantially the same form as Exhibit “A”. APPROVED this 7" day of October, 2019. AYES: NAYS: ABSTAIN: ABSENT: Mayor Ruben Pineda ATTEST: City Clerk Nancy M. Smith ===== PDF PAGE 45 ===== [Extraction: OCR (rendered-page OCR)] FIRST AMENDMENT TO EXCLUSIVE AGREEMENT FOR COLLECTION AND DISPOSAL OF RESIDENTIAL MUNICIPAL WASTE, LANDSCAPE WASTE AND RECYCLABLE MATERIALS THIS AMENDMENT TO EXCLUSIVE AGREEMENT FOR COLLECTION AND DISPOSAL OF RESIDENTIAL MUNICIPAL WASTE, LANDSCAPE WASTE AND RECYCLABLE MATERIALS (the “First Amendment”) is made as of this day of 2019, by and between the City of West Chicago (the “City”), and Groot Industries, Inc., an Illinois corporation (the "Contractor"). PREAMBLES: A. On December 21, 2011, the City and the Contractor entered into an Exclusive Agreement for Collection and Disposal of Residential Municipal Waste, Landscape Waste and Recyclable Materials (the "Original Agreement"). NOW, THEREFORE, it is mutually understood and agreed by and between the City and the Contractor as follows: 1. TERM. Upon execution of this First Amendment, Section I of the AGREEMENT is hereby deleted and replaced with the following provision: This Contract shall commence on July 12, 2012, and shall end on December 31, 2024. If the City so requests, the parties may negotiate and enter into contract extensions. Negotiations for the contract extension should begin at least six (6) months before the expiration date of the most recent contract or extension period. 2. SPECIAL EVENT. Upon execution of this First Amendment, the following provision shall be included as Section 3.6 of the Agreement: “3.6 SEASONAL PUMPKIN COMPOSTING The Contractor shall provide the City a twenty (20) cubic yard roll off container for the collection of seasonal pumpkins. The Contractor shall provide said container at a City owned property as designated by the City for the first two (2) full weeks in November each year within this contract term. The Contractor shall provide this service at no additional cost to the City.” ===== PDF PAGE 46 ===== [Extraction: OCR (rendered-page OCR)] 3 EXCLUSIVE CONTRACT. Upon execution of this First Amendment, Section 4.1 shall be deleted in its entirety and replaced with the following provision: 4. “This document represents an exclusive Contract between the Contractor and the City for a period commencing on January 1, 2020 and ending at midnight on December 31, 2024 for curbside and/or alley collection of refuse, yard waste, and recyclable materials. The Contract shall include all present and future single- family and two-family, attached and detached residences, approximately 5,700 units. This Contract provides for continuing a modified volume based refuse program and for a per sticker cost for collection of yard waste and for refuse stickers used for additional waste placed outside the cart provided. The Contract shall not include commercial, retail or office, business, industrial, and governmental jurisdictions other than those facilities specifically listed in this Contract in Exhibit “A”.” UNIVERSAL STICKERS. Upon execution of this First Amendment, Section 4.9 shall be deleted in its entirety and replaced with the following provision: “Universal stickers shall be used both for the disposal of garbage that does not fit within the cart provided by the Contractor as well as for the disposal of yard waste placed within an appropriate yard waste container. The Contractor shall be responsible for printing, distributing and selling universal stickers, which should be designated to be of a “one-time use” variety. The Contractor shall arrange for area retailers to aid in the sale of stickers and shall make every effort to secure arrangements with at least six (6) retail establishments so as to achieve reasonable Citywide coverage and a readily available supply of stickers; a list of the retailers used shall be provided bi-annually to the City on or before January 1‘ and July 1“ of each year, and any modifications to this list shall be provided immediately upon a change. The City shall also agree to act as a retailer in the sale of universal stickers. Retailers may add no more than five cents ($0.05) to the cost of the sticker to recover their administrative costs associated with selling them. Retailers that are found adding more than five cents ($0.05) may be issued a citation and prohibited in the future from acting as an agent to provide these stickers. The Contractor shall provide universal stickers to local retailers and shall not charge retailers for storage, handling, mail, or in person delivery of such stickers. The Contractor shall also offer stickers for sale to West Chicago residents through mail order with a ten (10) sticker minimum order required by phone, and shall include handling and mailing costs in the total cost of the stickers. No other markup for mail orders shall be permitted. West Chicago residents may request the mail order of stickers by phone. The Contractor may sell stickers directly to residents by mail on either a prepaid or billable basis, at its discretion. Billing and collection of charges for residential mail orders shall be the sole responsibility of the Contractor. ===== PDF PAGE 47 ===== [Extraction: OCR (rendered-page OCR)] The universal sticker prices are as follows: 1/1/2020 | 1/1/2021 | 1/1/2022 | 1/1/2023 | 1/1/2024 $2.30 $2.59 The Contractor shall honor the use of old universal stickers for an unlimited time after a new sticker price has been constituted, at no additional charge.” Sy SEASONAL LEAF COLLECTION. Upon execution of this First Amendment, the following sentence shall be added to the end of Section 4.11: “Contractor shall annually provide to the City an accounting of the volume of leaves collected during the one week spring and five week free fall leaf collection program. 6. MISSED PICK-UP AND COMPLAINT HANDLING. Upon execution of this First Amendment, the hours of operation contained in Section 4.14 shall be changed to 8:00 A.M. to 4:30 P.M. he CHARGES FOR SERVICE. Upon execution of this First Amendment, Section 5.3 shall be deleted in its entirety and replaced with the following provision: “The Contractor shall invoice each resident on a quarterly basis, at the following monthly rates: Contract Year Beginning: | «SY anrz.020 | 17172021 | 1/1/2022 | 1/1/2023 | 1/1/2024 [36-gallon cart-seniorrate | sa.00| $927] $0.65] so.4| $10.13, 35-gallon cart regular rate [96-galloncartrate [| staas] si9s2] s2010] 20.71] 921.33) To be eligible for the senior rate, the head of household must show a copy of a driver’s license or State identification card that shows that he/she is 65 years of age or older, as well as a copy of the property tax bill to ensure that he/she is a resident of West Chicago. The City will look at these documents, together with utility bills and any other paperwork requested to determine if a property owner is eligible for the senior rate. A resident who is otherwise eligible for this program and owns multiple properties within West Chicago will only be granted a senior rate on her/his principal place of residence.” ===== PDF PAGE 48 ===== [Extraction: OCR (rendered-page OCR)] 8. INSURANCE. Upon execution of this First Amendment, the following Insurance Requirements in Section 4.19 shall be amended as follows: a. Section 4.19(C) shall be deleted in its entirety. b. Section 4.19(D)(3) — The phrase “by certified mail, return receipt requested” shall be deleted. c. Section 4.19(F), last sentence, shall be deleted in its entirety. 9. MONTHLY REPORT. Upon execution of this First Amendment, the following two types of information shall be added to the existing list: e Number of stickers sold; and e Number of customers utilizing what size cart: 35-gallon senior, 35-gallon regular, 35-gallon townhome, 95-gallon senior, 95-gallon regular and 95 gallon townhome. 10. HOLIDAY LIGHT RECYCLING. Upon execution of this First Amendment, the following provision shall be added as Section 6.10: “6.10 HOLIDAY LIGHT RECYCLING The Contractor shall provide a special collection for holiday lights for a two (2) week period in early January, the exact dates to be mutually determined by the Contractor and the City. The Contractor shall supply a container centrally located and available to City Residents only. There will be no cost to the Residents or City for this service.” 11. PROGRAM DESIGN. Upon execution of this First Amendment, Section 7.1 shall be deleted in its entirety and replaced with the following provision: “7.1 PROGRAM DESIGN The yard waste collection service shall be offered annually from April 1 through November 30 during the term of the Contract. The City reserves the right to extend the length of the Yard Waste Collection season, at its discretion, for a period of up to two (2) weeks after the November ending date and shall notify the Contractor of such change by November 15 of each calendar year. The Contractor shall agree to provide a minimum of once per week yard waste collection service, including pickup of hard and soft landscape waste, through the ===== PDF PAGE 49 ===== [Extraction: OCR (rendered-page OCR)] use of a universal sticker. This service shall be provided on the same day as the refuse pickup. The universal stickers shall be used for yard waste collection, and the prices for said stickers are detailed in Section 4.9. As an option for yard waste collection in lieu of purchasing universal stickers, residents can choose to participate in a calendar year yard waste subscription service. Residents shall be billed upon request in the first year of the program and in February of each year thereafter. The rate charged to customers may neither be prorated nor refunded at any time in the season. The annual cost of this service shall be $200 and will include a 95-gallon cart designated for “Yard Waste” collection only at no additional charge. This annual cost will be increased by 3% on January 1, 2021 and each January thereafter within the term of this agreement. These cans will be marked for “Yard Waste Only”. Residents participating under the subscription service with cart will be permitted to mix organic food waste in with their yard waste within the designated cart only. The initial list of acceptable organic food waste include fruits, vegetables, breads, grains, pasta, cereal, dairy (no liquids), eggshells, coffee grounds and tea leaves which shall be subject to change at the sole discretion of the Contractor. This yard waste subscription is invoiced annually during the first quarter and new customers must pay in full and the amount is never prorated to reflect when they sign up.” 12, EXHIBIT A CITY AND GOVERNMENT LOCATION AND COLLECTION FREQUENCY. Upon execution of this First Amendment, the following five facilities will be added to Exhibit A: Location Size Frequency 830 W. Hawthorne Lane 30 yard dumpster Not to exceed 16 pulls per year 201 W. National Street 22 yard containers Monday and Friday 250 W. National Street 22 yard containers Monday and Friday 250 W. National Street 110 yard dumpster Thursday (5/1-7/30) 1690 Joliet Street 2 50 gallon cans Friday The Agreement is hereby ratified and confirmed by the City and the Contractor as amended herein. This First Amendment may be executed in multiple counterparts, each of which shall be deemed to be an original. ===== PDF PAGE 50 ===== [Extraction: OCR (rendered-page OCR)] IN WITNESS WHEREOF, the Parties have entered into this First Amendment the date and year first above written. Attest: GROOT INDUSTRIES, INC. By: By: Title: Title: Date of signing: , 2019 Attest: CITY OF WEST CHICAGO By: By: Title: City Clerk Title: Mayor Date of signing: , 2019 ===== PDF PAGE 51 ===== [Extraction: OCR (rendered-page OCR)] CITY OF WEST CHICAGO CITY COUNCIL MEMORANDUM TO: Honorable Mayor and Members of Council FROM: Michael Guttman, City Administrator SUBJ: Solid Waste Contract 2020-2024 DATE: August 7, 2019 At its May meeting, the Finance Committee directed staff to request proposals from West Chicago solid waste hauling companies to serve as the City’s residential waste hauling contractor once West Chicago’s current contract expires on December 31, 2019. It was very important to the Committee that the City support its corporate customers. The Committee also noted that it was comfortable with the services and benefits contained in the current contract, and wanted those to continue in any successor contract, wanting also to hopefully achieve cost reductions for our residents. Finally, the City’s Environmental Commission is interested in some added services. Both Groot Industries and Lakeshore Recycling Systems submitted responses to the RFP on July 18". The economic analysis of both proposals is attached, and it clearly shows that it is in the best interests of the City to remain with Groot Industries for the following primary reasons: e Groot has reduced the cost of stickers by almost 15%, with the cost of stickers in 2024 being below what customers are paying now. e Rates for all three categories of toter users are lower in year one than now, with 3% annual increases (LRS proposed a four percent annual upward adjustment). e Five Park District facilities are now included in the contract for free hauling, which saves it money annually. e Maintaining a local office will remain a contract provision. Groot also offered to incorporate several of the Environmental Commission’s recommendations into the Contract including collecting e-waste at the curb (up to six items for $30), pumpkin recycling once a year and holiday light recycling once a year. Groot would allow food waste to be recycled with yard waste, but only for those customers who have a subscription service that costs $200.00 per season. Groot representatives were uncomfortable allowing food waste to be mixed with yard waste in paper bags because the material would be wetter, resulting in breaking bags on collection day, plus its experience with foot waste recycling is that less than five percent of customers participate. Finally, Groot did not offer a proposal for using RFID Technology where carts would have chips installed and customers would pay on a per pick up basis. That said, looking at the bottom of the attached spreadsheet, if LRS’s proposed per pick-up were applied and then compared to Groot’s ===== PDF PAGE 52 ===== [Extraction: OCR (rendered-page OCR)] proposed rates, the only customers, excluding seniors, who would save money are those who on average have only one pick-up per month. I will review the spreadsheet in more detail at the meeting. In the meantime, please let me know if you have any questions. ===== PDF PAGE 53 ===== [Extraction: OCR (rendered-page OCR)] Sticker 35-gallon Senior 35-gallon Regular 95-gallon Sticker 35-gallon Senior 35-gallon Regular 95-gallon Groot Sticker 35-gallon Senior 35-gallon Regular 95-gallon LRS Sticker 35-gallon Senior 35-gallon Regular 95-gallon LRS RFID Technology 35-gallon Senior per pick up 35-gallon Regular per pick up 95-gallon per pick up Monthly Base Rate Monthly if Paper Invoices Current Groot Difference _ Savings/Year 2021 2022 2023 2024 $2.70 $2.30 -14.81% $2.37 $2.44 $2.51 $2.59 $9.68 $9.00 -7.02% $8.16 $9.27 $9.55 $9.83 $10.13 $16.77 $13.33 -20.51% $41.28 $13.73 $14.14 $14.57 $15.00 $29.70 $18.95 -36.20% $129.00 $19.52 $20.10 $20.71 $21.33 Current LRS Difference Savings _ 2021 2022 2023 2024 $2.70 $2.75 1.85% $ 286 $ 297 $ 3.09 $ 3.22 $9.68 $9.68 0.00% $0.00 $ 10.07 $ 1047 $ 1089 $ 11.32 $16.77 $16.69 -0.48% $0.96 $ 17.36 $ 1805 $ 1877 $ 19.52 $29.70 $29.65 -0.17% $0.60 $ 3084 $ 32.07 $ 3335 $ 34.69 2019 2020 2021 2022 2023 2024 61,460 $165,942 $141,358 $145,599 $149,967 $154,466 $159,100 622 $72,252 $67,176 $69,191 $71,267 $73,405 $75,607 3,809 $766,523 $609,288 $627,566 $646,393 $665,785 $685,759 Value of Contract Over Five Years 1,304 $464,746 $296,530 $305,425 $314,588 $324,026 _ $333,747 $1,469,462 $1,114,351 $1,147,782 $1,182,215 $1,217,682 $1,254,212 $5,916,242 2019 2020 2021 2022 2023 2024 61,460 $165,942 $169,015 $175,776 $182,807 $190,119 $197,724 622 $72,252 $72,252 $75,142 $78,147 $81,273 $84,524 3,809 $766,523 $762,867 $793,381 $825,116 $858,121 $892,446 1,304 $464,746 $463,963 $482,522 $501,823 $521,896 $542,771 $1,469,462 $1,468,096 $1,526,820 $1,587,893 $1,651,409 $1,717,465 $7,951,683 $353,745 $379,038 $405,678 $433,727 $463,253 2020 $2,035,441 Every Week = 2x/Month LRS Reg Groot Reg 1x/Month $4.13 $274.76 $159.12 $116.16 $108.00 $109.56 ($1.56) $5.50 $346.00 $192.00 $200.28 $159.96 $126.00 $33.96 $8.00 $476.00 $252.00 $355.80 $227.40 $156.00 $71.40 $5.00 $3.00