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HomeMy WebLinkAbout10A Resolution Accepting Quotes and Authorizing Contract for Refuse Pick Up and Disposal ServicesFRIG\ U x 4646 Dakota Street SE Prior Lake. MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: MARCH 21, 2011 AGENDA M 10A PREPARED BY: AL FRIEDGES, PARKS AND FLEET SUPERVISOR PRESENTED BY: AL FRIEDGES AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ACCEPTING QUOTES AND AU- THORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE CITY'S STANDARDIZED CONTRACT FOR REFUSE PICKUP AND DISPOSAL DISCUSSION: Introduction The purpose of this agenda item is to seek City Council authorization to enter into the City's Standardized Contract with The Buckingham Companies for refuse pickup and disposal at City Hall, Fire Station #1, Fire Station #2, Police Station, Library, Maintenance Center, Sand Point Beach Park, The Ponds Athletic Com- plex and Ryan Athletic Complex. Histo Each year the City seeks bids for refuse pickup and disposal. With the anticipated future increase in fuel and land fill disposal fees, staff solicited quotes for the next three years. In 2010, the City contracted with Waste Management for refuse disposal. For 2011, Waste Management proposed to extend the current contract but with an automatic 3% increase (on government accounts). Waste Management did agree to charge 2010 prices for the period January - March, 2011 until a new contract was in place. In an effort to contain or lower costs, staff proceeded to solicit quotes. Current Circumstances In accordance with City Purchasing Policy, City Staff has solicited quotes for refuse pickup and disposal services for the period April 1, 2011 — December 31, 2013. The following quotes were received: DSI Buckingham Waste Management Park Refuse 2011 9 -month Cost $1,053.00 2012 Annual Cost $1,053.00 2013 Annual Cost $1,095.15 Total (Three Years) $3,201.15 $1,140.75 $1,807.65 $1,181.70 $1,861.80 $ 1,210.20 $1,917.75 $ 3,532.65 $5,587.20 Facilities Refuse DSI Buckingham Waste Management 2011 9 -month Cost $2,539.80 $2,610.00 $3,844.80 2012 Annual Cost $3,386.40 $3,584.40 $5,280.36 2013 Annual Cost $3,521.76 $3,692.04 $5,438.52 Total (Three Years) $9,447.96 $9,886.44 $14,563.68 DSI Buckingham Waste Management Maintenance Center Refuse (Based on 100 Ton of Refuse Per Year) 2011 9 -month Cost $13,338.00 $11,765.00 $14,014.68 2012 Annual Cost $13,338.00 $12,118.00 $14,030.28 2013 Annual Cost $13,871.20 $12,481.72 $14,045.88 Total (Three Years) $40,547.20 $36,364.72 $42,090.84 Grand Total $53,196.31 $49,783.81 $62,241.72 Buckingham provided the City with the lowest three year cost for refuse pickup and disposal. Conclusion Based on the quotes received, City Staff recommends that the City execute a con- tract with Buckingham for the period April 1, 2011 — December 31, 2013. ISSUES: Executing a three -year contract reduces City Staff workload and provides better budgeting information. FINANCIAL The City's total refuse costs in 2009 and 2010 excluding cleanup day costs were IMPACT: $42,137.30. The average annual cost for 2009 and 2010 was approximately $21,000. For the 2011 budget the City budgeted $20,816 for refuse disposal. The proposed Buckingham service cost for nine months in 2011 is $15,515.75. The average annual cost over the three -year contract is approximately $18,000.00. ALTERNATIVES: 1. Approve a resolution accepting quotes and authorizing the execution of the City's Standardized Contract with The Buckingham Companies for refuse pickup and disposal. 2. Table this agenda for a specific reason. 3. Deny this agenda for a specific reason and provide staff with direction RECOMMENDED MOTION: R�i)ewe y: Fra k o es Alternative #1 Manager / PRIO U trl ��NNESO�� 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 11 -xxx A RESOLUTION ACCEPTING QUOTES AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE CITY'S STANDARDIZED CONTRACT FOR REFUSE PICKUP AND DISPOSAL Motion By: Second By: WHEREAS, The City's refuse pickup and disposal contract with Waste Management has expired and a new agreement to provide service for City buildings and facilities is required; and WHEREAS, Staff solicited and receive quotes for refuse pickup and disposal services for the period April 1, 2011 — December 31, 2013; and WHEREAS, A total of three quotes were received for refuse pickup and disposal and are in tabulation form as follows: Park Refuse DSI Buckingham Waste Management 2011 9 -Month Cost $1,053.00 $1,140.75 $1,807.65 2012 Annual Cost $1,053.00 $1,181.70 $1,861.80 2013 Annual Cost $1,095.15 $1,210.20 $1,917.75 Total (Three Years) $3,201.15 $ 3,532.65 $5,587.20 Facilities Refuse 2011 9 -Month Cost $2,539.80 $2,610.00 $3,844.80 2012 Annual Cost $3,386.40 $3,584.40 $5,280.36 2013 Annual Cost $3,521.76 $3,692.04 $5,438.52 Total (Three Years) $9,447.96 $9,886.44 $14,563.68 Maintenance Center Refuse (Based on 100 Ton of Refuse Per Year) 2011 9 -Month Cost $13,338.00 $11,765.00 $14,014.68 2012 Annual Cost $13,338.00 $12,118.00 $14,030.28 2013 Annual Cost $13,871.20 $12,481.72 $14,045.88 Total (Three Years) $40,547.20 $36,364.72 $42,090.84 Grand Total $53,196.31 $49,783.81 $62,241.72 WHEREAS, The quote from Buckingham Companies is the lowest cost option. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The City Council awards the contract to provide refuse pickup and disposal services to The Buckingham Companies. 3. The Mayor and City Manager are authorized to execute the City's Standardized Contract with The Buckingham Companies for refuse pickup and disposal services in the amount of $49,783.81 for the period April 1, 2011 — December 31, 2013. 4. The funding source will be the respective Refuse Disposal accounts for each facility. PASSED AND ADOPTED THIS 21St DAY OF MARCH, 2011. YES NO M ser M ser Erickson Erickson Hedberg Hedber Keeney Keene Soukup Souku Frank Boyles, City Manager 2