25-Deliberate and act on proposed options regarding a limited landfill disposable agreement with Waste Management

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CITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Originating Department: Presented By: Agenda Item No.: 09/10/10 Council Date: City Manager Kevin Carruth 25. 09/13/10 RECOMMENDED MOTION: Move to direct staff to prepare an amendment to the Waste Management landfill agreement extending the term by six-months. POLICY ISSUE(S): Agreement BACKGROUND: The City's existing agreement with Waste Management for landfill services expires September 30, 2010, and the renewal term is for another three-years. Because the request for proposal (RFP) process for landfill services and residential collection services will go beyond that date, the City needs to extend the current agreement but for a period less than three years. Waste Management has offered the following three renewal options: 1. Month-by-Month Extension-Increase of 10% over current rates with the stipulation that the 10% will be refunded to the City if Waste Management wins either a new disposal contract and/or collection contract with the City. 2. Six-Month Extension-Increase of 3% over current rates with the stipulation that the 3% will be refunded to the City if Waste Management wins either a new disposal contract and/or collection contract with the City. 3. One-Year Extension-Rates will remain at current level. Assuming an RFP is issued in September, it will not be due back until October, and it may until the end of November or beginning of December before Council evaluates the proposals and makes a selection. Typically there is only one meeting in December so a landfill agreement may not be executed until January, four months after the expiration of the original term on the existing agreement. Staff recommends the six-month extension because (1) the RFP process will take around four months of the six month period; (2) if the Waste Management landfill is selected through the RFP process, there is no issue with term of the extension; (3) if Sanitation Solutions is selected through the RFP process, their landfill is not yet open so six months may not be long enough; and (4) there is no reason a new landfill agreement should take anything close to a year, regardless of the vendor. With direction from Council on the term of the extension, an agreement will be prepared for approval at the September 27 meeting. BOARD/COMMISSION RECOMMENDATION: EXHIBITS: Waste Management landfill service contract ACTION: BUDGET INFO: N/A ❑ Financial Report ® Minute Order Expense $ ❑ Department Report ❑ Resolution Budgeted Amt. $ ❑ Presentation ❑ Ordinance YTD Actual $ ❑ Public Hearing ❑ Other Acct. Name Acct. Number FISCAL NOTES: REVIEWED AND APPROVED BY: ® Administration ® City Clerk ❑ Community Development ❑ EMS/IT ❑ Finance ❑ Fire ❑ Municipal Court ® Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities City of Paris Revised 2/04/08 179