HomeMy WebLinkAbout[5] BFI/Allied Waste
CITY OF ST. JOS":"H
Council Agenda Item 5
MEETING DATE:
January 17, 2008
AGENDA ITEM:
Jamie Phenow
SUBMITTED BY:
Administration
BOARD/COMMISSION/COMMITTEE RECOMMENDATION: N/ A
PREVIOUS COUNCIL ACTION: Jamie Phenow appeared before the Council at the December 13 City Council
meeting requesting the Council extend their contract three years in exchange for BFI converting the refuse system
to a single sort system. The Contract price would be increased .50 in 2008 and then 3.5% each year through 2011.
BACKGROUND INFORMATION: The City of St. Joseph entered into a contract with Allied Waste Services
beginning January 1, 2006 for 3-years with locked in rate increases each year. Allied Waste Services is requesting
the City to consider Single Sort Recycling for the third year of the contract with a 50 cents/month/resident increase
to cover the costs to offer this option. Further, Allied Waste Services requests to extend the contract through
December 31,2011 with locked in rate increases using the Single Sort Recycling.
As stated at the last meeting, the Council cannot extend the current contract for three years. The Statute limits
City's to three years. Therefore the current contract would be terminated and a new contract would be
established for the years 2008, 2009 and 2010.
The Council has the following options:
1. Leave the contract in place and bid the service in October 2008 as originally planned.
2. Terminate the existing contract and enter into a new three year contract.
3. Terminate the existing contract, by mutual consent of SFI, and bid the service at this time.
As I stated at the last meeting this is an extremely competitive business and at least one of the refuse companies
will be at the meeting on Thursday evening. Staff does acknowledge that SFI does an outstanding job with the
refuse removal.
If the Council allows the contract to be extended, the residential refuse rates will have to be increased by $ 1.00.
While the increase to the City is .50, the City subsidizes the senior rate by 50% and the additional .50 is needed to
cover the increased cost.
BUDGET/FISCAL IMPACT:
ATTACHMENTS:
REQUESTED COUNCIL ACTION: Provide direction to staff as to whether a new contract is negotiated or the
current contract remains in force.