Explanation
The Public Service Department, Refuse Collection Division, has provided Columbus residents with weekly collection of yard waste through a contract since 1996. This separate collection is necessary to segregate yard waste that can be composted and recycled from the regular waste stream; this serves to extend the life of the landfill operated by the Solid Waste Authority of Central Ohio (SWACO) and increases weekly refuse container capacity for residents. Landfill diversion requirements are established by Ohio Revised Code. Street-side yard waste collection service is presently provided to 223,125 single to four-unit residences.
An optional curbside recycling collection service is available to residents on a subscription basis. Residents currently pay $5.00 per month directly to the contractor and no City funds are directly expended for this purpose. The City has (in effect) licensed the contractor to provide this service and negotiates the terms and conditions on behalf of individual residents. Some 9,943 residences currently take advantage of this service. This contract generates a public good for all Columbus citizens, namely, it increases waste stream diversion and reduces refuse tonnage going to the landfill.
These existing contracts expire February 28, 2006. The Refuse Collection Division solicited Requests for Proposals (RFPs) that were due December 6, 2005. The RFP instructed prospective bidders to address seven collection options and/or combinations of options. The City received proposals from Rumpke of Ohio, Incorporated, and Local Waste Services, Limited. Only Rumpke bid on yard waste collection. Both firms bid on curbside recycling collection.
Local Waste Services' proposal for curbside recycling price is $5.00 per month per customer, consistent with the amount curbside recycling customers currently pay. However, Local Waste Services is proposing collection only every other week using a wheeled 65-gallon container. Having the recyclables collected every other week will likely create some level of confusion for customers and the number of curbside recyclers may decrease because not all customers have room for a 65-gallon container. Also, Local Waste Services proposed a ninety-day transition period and service during this time could be interrupted.
Due to anticipated customer dissatisfaction that will possibly result in fewer curbside recyclers if a new curbside recycling program was introduced, the Public Service Department recommends that both contracts be awarded to Rumpke of Ohio, Incorporated, at an annual estimated cost of $3,855,600.00. Due to funding limitations the contract is to be in effect for 11 months and may be renewed for four (4) additional one-year periods by agreement between the contractor and the City contingent on funding availability. Escalator provisions addressing cost inflation and the growth of our customer base are provided within this agreement.
Fiscal Impact: The existing contract for yard waste collection with Rumpke was authorized by Ordinance 0365-2001E passed February 26, 2001. It commenced March 1, 2001 for a five-year period contingent upon annual funding approval from City Council. This contract was modified and increased in each subsequent year (the 2003 authorization was for only ten months and changed the funding cycle to January-December). Spending authorization for 2004 and 2005 was $2,643,448.00 and $3,242,300.00, respectively. The Refuse Collection Division's 2006 General Fund operating budget contains $3,925,906.00 for this purpose. Ordinance 0140-2006 passed February 6, 2006 authorized $351,654.88 of this amount and extended the contract through February. The 2006 funding will allow the Division to fund a March-January contract cycle; this will avoid potential payment disruptions in the event the operating budget is adopted later than normal.
Rumpke of Ohio, Incorporated's contract compliance number is 31-1617611; this expires April 18, 2008.
Emergency action is requested to provide uninterrupted service to residents. Earlier submission of legislation was not possible pending the final determination and adoption of the 2006 operating budget.
Title
To authorize the Public Service Director to enter into contracts with Rumpke of Ohio, Incorporated, for yard waste collection and curbside recycling collection service, respectively, for the Refuse Collection Division; to authorize the expenditure of $3,574,251.00 or so much thereof as may be needed from the General Fund and to declare an emergency. ($3,574,251.00)
Body
WHEREAS, the Refuse Collection Division has provided Columbus residents with weekly collection of yard waste through a contract with Rumpke of Ohio, Incorporated, for many years; and
WHEREAS, the City has licensed this contractor to provide an optional curbside recycling collection service to residents on a subscription basis; and
WHEREAS, in the interest of providing for replacement contracts, the Refuse Collection Division solicited Requests for Proposals (RFPs) that were due on December 6, 2005; and
WHEREAS, after evaluating all available options the Public Service Department recommends that contracts be awarded to Rumpke of Ohio, Incorporated, at an annual estimated cost of $3,855,600.00; and
WHEREAS, an emergency exists in the usual daily operation of the Public Service Department, Refuse Collection Division, in that it is immediately necessary to enter into new contracts for these purposes, thereby preserving the public health, peace, property, safety and welfare, now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Public Service Director be and hereby is authorized to enter into a contract with Rumpke of Ohio, Incorporated, for yard waste collection service for the period March 1, 2006 through January 31, 2007, inclusive, at a cost of $3,574,251.00 or so much thereof as may be needed.
SECTION 2. That the Public Service Director be and hereby is authorized to enter into a contract with Rumpke of Ohio, Incorporated, for curbside recycling collection subscription service for a five (5) year period, March 1, 2006 through February 28, 2011, inclusive.
SECTION 3. That for paying the cost of said yard waste collection contract, the sum of $3,574,251.00 be and hereby is authorized to be expended from Fund 010, the General Fund, Department No. 59-02, Refuse Collection Division, Object level One Code 03, Object Level Three Code 3336 and OCA Codes 591198 ($1,191,417.00), 591727 ($1,191,417.00) and 591941 ($1,191,417.00).
SECTION 4. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.