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HomeMy WebLinkAboutRECYCLING & WASTE COMMITTEE - 08/09/2021 - Solid Waste RFP Results-Groot ContractRECYCLING COMMITTEE MEETING MINUTES Chernick Conference Room August 9, 2021 10:00 AM Present: Trustee Feichter, Chairman Trustee Prochno Trustee Czarnik Staff: Raymond Rummel, Village Manager Matthew Roan, Deputy Village Manager Maggie Jablonski, Assistant Village Manager/ Director of Communications Brian Southey, Superintendent of Administration Scott Santille, Foreman Karleen Gernady, Administrative Intern Paola Garcia, Undergraduate Administrative Intern Chairman Feichter called the meeting to order at 10:00 a.m. Solid Waste RFP Results The Committee met for the purpose of reviewing the results from the Solid Waste Request for Proposals (RFP). Trustee Feichter invited staff to provide an overview of the RFP. M. Jablonski stated that based upon the proposals received, Village staff recommends moving forward with the 8-year contract with Groot that includes both waste and recycling carts for all single family customers. Groot provided the most competitive pricing in their proposal, and following additional negotiations with staff, lowered their overall contract costs by over $300,000. M. Jablonski noted that the overall annual contract cost in the first four years of Groot's final 8-year proposal are lower than the current annual contract cost with Waste Management, and that the Groot proposal provide a number of additional benefits. M. Jablonski provided an overview of the Groot's proposal. The recommended 8-year proposal from Groot provides carts to all single family homes for refuse and recycling as part of the contract, and also offers a 10% discount rate for seniors 65 and older. M. Jablonski noted that seniors who pay their bills through an association, rather than directly to Waste Management would not be eligible for the discount. Trustee Czarnik asked if there would be different size options for recycling carts for residents to choose. R. Rummel stated that residents would have the option to select a 35, 65, or 95 gallon cart size for both waste and recycling carts. Chairman Feichter asked about the transition process, M. Jablonski stated that staff would work with Groot on the transition, but that new carts would likely be delivered the week before service begins, and Waste Management would collect their carts from the curb after the last day of service from residents. Trustee Prochno asked if residents would be able to rent additional carts at an extra cost. M. Jablonski explained that residents would have the option to rent additional carts at a monthly cost, but Groot estimated that less than 1 % of customers use this option, because residents can also place any waste that doesn't fit into their cart in their own 30-gallon cans or bags at the curb at no cost. Trustee Czarnik asked if residents would have the option to switch the size of their waste and recycling bins. M. Jablonski explained that during the first month of the contract, residents have the option to switch the size of their carts. Trustee Czarnik stated that residents should have up to 60 days to exchange their carts for different sizes. R. Rummel noted that this would be included in the contract. M. Jablonski explained the rate changes for single family homes that would occur during the first year of the contract. Some residents will see a decrease in their costs, whereas residents who don't currently rent a current waste cart will see a small monthly increase. M. Jablonski noted that seniors will see a decrease of costs, regardless of their current service due to the senior discount. Chairman Feichter inquired about the transition process of switching waste and recycling vendors and how the change would be communicated to residents. M. Jablonski explained that once the contract is approved by the Village Board, the communication on the transition process will begin as soon as possible. Trustee Prochno asked about the verification process for the senior discount. B. Southey stated that Groot would handle the verification process to determine eligible seniors ages 65 and up. Chairman Feichter asked about the payment frequency and if autopay would be included in payment options. M. Jablonski noted that she believed that payments would be processed quarterly, as they are now, but can clarify if residents can pay monthly and set up an autopay account. M. Jablonski explained the new rates for the multifamily properties. The existing rates are different for each property based on an outdated analysis, whereas Groot has proposed one rate for all multi -family, and one rate for designated senior multi -family. In order to transition properties into these new rates, some multi -family properties will see annual increases in the first few years of the contract. Chairman Feichter noted that he saw the letter went out to churches advising that they will no longer be included in the Village's waste contract. M. Jablonski stated that she expects churches will be able to secure better pricing on their own to meet their needs, and noted that Alexian Brothers has also been notified they will no longer be included in the Village's contract. M. Jablonski explained that the Groot proposal includes a free curbside electronic recycling option for single family properties which would allow residents to call ahead to recycle two electronic items under 50 pounds each the week. Trustee Prochno asked if this program existed under the old contract with Waste Management. M. Jablonski said this was not part of the old contract and residents have to use the SWANCC program to recycle electronics. M. Jablonski noted that the sticker rate for yard waste would remain the same as it is now ($3.00) for the entire 8-year contract. M. Jablonski also explained that the free small branch pickup program will continue and there will be an annual cart subscription option for yard waste and food scraps. Trustee Czarnik asked for clarification on the rental cart option for yard waste and food scraps. M. Jablonski explained that if residents would like to subscribe to the service, they must pay the full amount for the entire yard waste season, and can fill the cart up each week. Residents can continue to use yard waste stickers rather than subscribing to the seasonal option. Trustee Czarnik asked if the Village had negotiated with any other firms after receiving the proposal. M. Jablonski stated that Village staff chose to negotiate with Groot not just based on the pricing, but also based on service experience and reputation for customer service. M. Jablonski also noted that the only proposal which came close to Groot in pricing was RTS, which has only begun servicing smaller residential communities in the past two years, and only for communities significantly smaller than Elk Grove Village. Additionally, the RTS service model involve contracting out operations to a third party, and this additional administrative layer could present challenges. R. Rummel noted that although Waste Management may no longer be our hauler for waste and recycling, Groot expressed interest in hiring on former Waste Management drivers since they are familiar with the Village and the routes. Chairman Feichter asked if the proposed Groot pickup day would be the same as the current schedule with Waste Management. M. Jablonski stated that Groot would follow the same schedule as Waste Management for single family pickup. Trustee Czarnik asked if the Village's textile program, Simple Recycling, would be affected by the change of haulers. M. Jablonski explained that the change of providers would not hinder the Simple Recycling program. Chairman Feichter asked if there was any big changes that were going to occur with switching waste haulers. M. Jablonski explained that there are always difficulties and questions during a big transition, but that the Village reached out to Streamwood, who recently switched to Groot, and received positive feedback. She noted that residents will have to create a new billing account through Groot as part of the process. M. Jablonski pointed out that Groot has location advantages with being located in Elk Grove Village so their response time to issues will be quick. R. Rummel stated that he spoke with the Village Manger of Palatine, who recently renewed their contract with Groot, and said they said Groot provided excellent customer service. Chairman Feichter asked about the process of collecting bulk items and white goods. M. Jablonski explained that white goods are collected with a fee, and must be scheduled by phone, which is the same as with the existing Waste Management service. Bulk item collection is included free of charge as long as items are under 50 pounds, but residents are required to schedule bulk pickup in advance. This is also a requirement of Waste Management's bulk item program, though drivers typically will try to collect what they can even if no pickup has been scheduled. Chairman Feichter suggested that staff work to publicize the transition to residents soon. M. Jablonski agreed and noted that this is one of the reasons staff is requesting approval of the contract on the August 17 meeting, to give sufficient time for the necessary equipment to be ordered, and communications to go out. Once the contract is approved by the Village Board, staff will begin communicating the change of service. The consensus of the Recycling Committee was to recommend approval of the 8-year proposal from Groot. M. Jablonski noted that Mayor Johnson had requested that the Recycling Committee's recommendation go the Committee of the Whole for consideration on August 17. The meeting adjourned at 10:30 a.m. C: Mayor & Board of Trustees Village Manager Deputy Village Manager Assistant Village Manager Village Clerk Village Attorney Department Heads Groot Residential Solid Waste Proposal - 8-Years with Recycling & Waste Carts In response to our RFP, the Village received proposals from five (5) solid waste firms on July 15. Staff reviewed proposals with an emphasis on service expectations as well as the overall costs for the term of the contract. Groot, which is headquartered in the Village of Elk Grove, submitted the most competitive pricing. Contract 6-Year Optional Waste Carts Contract ComparisonTotal Cost Mandatory Waste Carts 8-Year Contract Optional Waste Carts Mandatory Waste Carts Groot (Negotiated Rate) - - - $ 20,036,975 Groot (Original Proposal) $ 14,729,997 $ 15,318,860 $ 19,566,678 $ 20,350,147 Recycle Track Systems (RTS) $ 15,708,043 $ 15,115,808 $ 21,367,368 $ 20,561,740 Flood Brothers $ 16,427,200 $ 16,028,825 $ 22,425,961 $ 21,896,875 Waste Management $ 22,070,753 $ 21,275,269 $ 30,347,145 $ 29,059,577 Green For Life (GFL) n/a $ 24,417,194 n/a n/a Below is a summary of the benefits of the recommended 8-Year, Mandatory Cart Proposal from Groot: Waste and Recycling Carts Included for All Single Family Properties — The Village currently provides recycling carts to all single family homes at no additional cost. This proposal would include waste carts for all single family homes as well. Providing both waste and recycling carts is common practice throughout the Chicagoland area, and has the benefit of improving community appearance and reducing risks of attracting rodents when waste is placed out in plastic bags with no cart. Three options for cart sizes would be available for residents to choose from for both waste and recycling, including a 30 gallon, 60 gallon, and 90 gallon size. Residents would be able to rent additional carts for a fee of $4 per month, if needed. Residents could also choose to place waste that does not fit into their cart at the curb in their own containers or bags for no additional cost. 2. Single Family Senior Discounts —This proposal includes a 10% senior discount for single family households who pay their bills individually. Under this proposal, the monthly rate for all seniors (65+) in single family households would decrease. Census estimates show that 30% of single family households in the Village are occupied by seniors. 3. Curbside Electronics Regy ling — This proposal also includes free curbside electronic recycling program for single family properties for up to 2 items under 50 pounds per week 4. Yard Waste Sticker Rate Freeze — This proposal maintains the existing $3 sticker cost for bagged yard waste for the entire length of the 8-year contract. The free small branch pickup program will continue to be offered. 5. Yard Waste/Food Scrap Subscription Option - Residents can rent a combined yard waste/food scrap cart for the season of April — December —the subscription cost for a seasonal yard waste/food scrap cart for the first year of the contract would be $175. 6. Long Term Favorable Pricing_— In addition to providing the overall lowest cost, Groot's negotiated proposal offers lower costs on a per -year average than even the 6-year proposals from other firms, securing favorable pricing on a long-term basis for residents. Groot (Negotiated Rate) Cost Waste - ComparisonAnnual MandatoryMandatory Carts Waste $ Carts 2,504,622 Groot (Original Proposal) $ 2,553,143 $ 2,543,768 Recycle Track Systems (RTS) $ 2,519,301 $ 2,570,218 Flood Brothers $ 2,671,471 $ 2,737,109 Waste Management $ 3,545,878 $ 3,632,447 Green For Life (GFL) $ 4,069,532 N/A 7. Overall Cost Reduction — In the first year, Groot's negotiated 8-year Mandatory Cart proposal would reduce overall residential waste costs by over $110,000 in comparison to the current contract with Waste Management. The annual proposal contract costs would remain below the Village's current annual overall residential waste cost for the first four years of the contract. 8. Rate Freezes Every Other Year — Cost increases are limited to every other year for all single family properties and most multi -family properties. 9. Customer Service —Groot has a proactive customer service approach, and ensures the customer service representatives at their call center are trained to resolve complaints and questions and treat customers with respect. Groot's company policy is to make every effort to return for calls for a missed collection the same day. With their fleet stationed nearby, they are well suited to respond promptly to any issues or concerns. Single Family Detached Rates - Residents who currently rent a waste cart from Waste Management would see a monthly rate reduction of $1.66 in the first year. Approximately 4,000 single family homes currently rent waste carts. Residents who do not currently rent a waste cart will be provided a new cart at a small additional monthly cost of $0.59 for single family detached homes. The proposal provides for rate increases every two years (in 2023, 2025, and 2027), and each of these increases are under 3%. 10. Single Family Attached (Townhome) Rates - Residents who currently rent a waste cart from Waste Management would see a monthly rate reduction of $1.25. Approximately 4,000 single family homes currently rent waste carts. Residents who do not currently rent a waste cart will be provided a new cart at a small additional monthly cost of $1 for single family attached (townhomes). The proposal provides for rate increases every two years (in 2023, 2025, and 2027), and each of these increases are under 3.5%. 11. Multi -Family Rates - The multi- family rates in the Village's current waste contract vary widely based on a AA 0 RESIDENT WITHOUT Current WM Waste Cart • SENIOR WITHOUT Current WM Waste Cart $0.59 -$1.52 RESIDENT WITH Current WM Waste Cart SENIOR WITH Current WM Waste Cart -$1.66 -$3.77 RE5IDENTWITHOUT Current WM Waste Cart $1.00 SENIOR WITHOUT ' Current WM Waste Cart RESIDENTWITH ' Current WM Waste Cart SENIOR WITH Current WM Waste Cart -$0.70 -$1.25 -$2.95 Burton Grove $1.00 Perrie Grove $1.00 Meadow Grove $1.00 Hamilton Court/Sir Willow $1.00 Eagles on Tonne $1.00 Twelve Oaks Condos $1.00 Willow Woods $1.00 Village on the lake $1.00 Washington Square $1.00 Cypress $1.00 Terrace Condos Park Orleans $1.00 $1.00 Park Chardonnay $0.37 Chardonnay by the lake 2 -$0.31 Carroll Square -$0.31 Chardonnay by the lake 1 -$0.31 Park Place -$1.62 Boardwalk Condo -$1.96 Boardwalk Condo -$1.96 Village Grove . Brentwood Baptist Manor ManorCare $0.35 $0.14 $2.73 dated analysis of waste totals from these properties. The proposal from Groot would move 3 all non -senior multi -family units to the same rate, with gradual increases to allow residents and properties who currently have lower rates to plan for the price changes. The maximum per unit monthly increase for a non -senior multi -family property in the first year of the contract is $1 (see chart on page 4), while some properties will see rate decreases. The multi -family properties currently paying below the market rate for services will see annual increases in the first few years of the contract. 12. Multi -Family Senior Property - The Village negotiated a senior rate for three multifamily properties which are designated as senior -only housing, including Village Grove, Brentwood Baptist Manor, and Manor Care. While there will be a slight increase to these rates in the first year, the per -unit rates are over $4 per month lower than the rates being charged to other multi -family properties. 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