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HomeMy WebLinkAbout8A City Facility Refuse Report Updated 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: DECEMBER 2, 2019 AGENDA #: 8A PREPARED BY: JAKE THEISEN, MAINTENANCE SUPERINTENDENT PRESENTED BY: JAKE THEISEN AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE CITY’S STANDARDIZED CONTRACT FOR CITY FACILITY REFUSE AND RECYCLING PICKUP AND DISPOSAL GOAL AREA AND OBJECTIVE: Public Safety 1. Ensure a safe and quality-built environment. DISCUSSION: Introduction The purpose of the agenda item is to seek City Council authorization to enter into the City’s Standardized Contract with Buckingham Companies for 1 year for refuse and recycling pick up and disposal at City Hall, Fire Station #1, Fire Station #2, Police Station, Library, Maintenance Center, The Ponds Athletic Complex and Ryan Athletic Complex. History The City’s Refuse and Recycling Contract with Buckingham Companies will expire on December 31, 2019. Historically the City has contracted for refuse and recycling services for City Hall, the fire stations, Police Station, Library and the Maintenance Center. In addition, service is provided to the two largest athletic complexes, The Ponds and Ryan. Current Circumstances In accordance with the City Purchasing Policy, City Staff solicited written quotes for refuse and recycling pick up and disposal for the period January 1, 2020 to December 31, 2022 from five service providers. The City received two quotes that are tabulated below: Company 2020 2021 2022 Total Contract Waste Management $20,992.36 $21,621.40 $22,269.54 $64,883.30 Buckingham Companies $24,332.34 $25,062.52 $27,070.12 $76,465.98 Conclusion The City Council reviewed the quotes at the November 18, 2019 City Council meeting and received comments from Buckingham Companies as a local business in Prior Lake. From this review and additional information provided, Council Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com directed staff to again review the quotes and the operational circumstances of 2019 and associated impacts of the road construction completed in 2019; and to review property taxes paid in 2019 by Buckingham Companies. The City’s purchasing policy for written quotes is as follows: • Obtain at least two written quotes. If two written quotes cannot be obtained, document the reason and any efforts to solicit additional quotes. • Generally, the lowest quote should be selected. If not, the reasons for selecting an alternative quote should be documented. The purchasing policy also states, “Whenever possible, and consistent with State law and this Policy, the City shall endeavor to purchase from local businesses.” There were several issues with Buckingham Companies’ services in the 2019 year, however, it is believed that some of these issues were related to the 2019 road construction. In consideration for the impact of the 2019 road construction season to the operational conditions, because of a prior excellent serv ice history and because of the City’s “buy local” goal, it is proposed to award a one-year contract to Buckingham Companies effective January 1, 2020 to December 31, 2020. Following the completion of this one-year contract, written quotes will be requested for a three- year contract for 2021 through 2023. Lastly, in reviewing Scott County records for the tax year 2019, Buckingham Companies paid local (City of Prior Lake) taxes in the amount of $3,473.05 and fiscal disparity taxes in the amount of $7,185.20. As the City of Prior Lake is a recipient of fiscal disparity payments, the effective 2019 local tax paid by Buckingham Companies was $10,658.25 ISSUES: The frequency pick up is based upon our seasonal experience. While volumes can be great during the “outdoor months” they are comparatively minor in the winter. The bids reflect this fact. The recycling and refuse collection contemplated as part of this contract does not include community events such as MusicFest. In that case, the Rotary pays for such costs. FINANCIAL IMPACT: The budgeted amount for refuse is $29,870 in 2020 compared to $24,332.34 quoted. This does not include hazardous waste costs and tire recycling which are budgeted in the central garage. ALTERNATIVES: 1. Approve a resolution authorizing the execution of the City’s Standardized Contract with Buckingham Companies for a one-year term, January 1, 2020 to December 31, 2020 at a cost of $24.332.34. 2. Provide staff with additional direction. RECOMMENDED MOTION: Alternative #1 VOTE Briggs Thompson Burkart Braid Erickson Aye ☐ ☐ ☐ ☐ ☐ 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 19- 135 A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE CITY’S STANDARDIZED CONTRACT FOR REFUSE AND RECYCLING PICK UP AND DISPOSAL Motion By: Second By: WHEREAS, Refuse and recycling pick up and disposal is a necessary service for all city facilities with the current service contract expiring on December 31, 2019; and WHEREAS, The City solicited written quotes from 5 companies for a 3-year contract and 2 written quotes were received; and WHEREAS, Buckingham Companies submitted a higher written quote, but the City Council directed staff to reconsider the quotes per the “Buy Local” provision in the City’s Purchasing Policy; and WHEREAS, Staff reviewed the quotes and determined that while there were several issues with Buckingham Companies’ services in 2019, it is believed that some of these issues were related to the 2019 road construction; and WHEREAS, In consideration for the impact of the 2019 road construction season to the operational conditions, because of a prior excellent service history and because of the City’s “buy local” goal the City has determined to award Buckingham Companies a 1-year contract. 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 a 1-year refuse contract to Buckingham Companies. 3. The Mayor and City Manager are authorized to execute the City’s Standardized Contract with Buckingham Companies for refuse and recycling pick up and disposal services for the rates submitted for the period of one-year, January 1, 2020 to December 31, 2020. 4. The funding source will be the respective refuse disposal accounts for each facility. Passed and adopted by the Prior Lake City Council this 2nd day of December 2019. Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Jason Wedel, City Manager