Explanation
The Public Service Department, Refuse Collection Division, has contracted with Rumpke Waste Collection & Recycling since September 1994 to provide weekly yard waste collection services to Columbus residents. The current contract for yard waste collection with Rumpke of Ohio, Incorporated commenced March 1, 2001, for a five-year period contingent upon annual funding approval from Council. Rumpke was the sole bidder out of three vendors for yard waste collection when the most recent proposals were submitted to the Refuse Collection Division in August 2000. The Refuse Collection Division has modified and increased the Rumpke yard waste collection contract each of the last two years (2002 and 2003). This ordinance authorizes the Public Service Director to modify and increase the existing yard waste collection contract with Rumpke of for the period January 1, 2004, through December 31, 2004 in the amount of $2,643,448.80.
The current yard waste collection charge is $0.61 per month per household and is in effect until February 29, 2004. Effective March 1, 2004, Rumpke will increase the rate charged to $.71 per month per household. This increase constitutes a 16 percent increase over the existing rate, but approximates to a yearly 4.1 percent over the last four years of the contract including 2004. This rate will be in effect until February 28, 2005. It is estimated that the increase in the per household charge will cost the Refuse Collection Division an additional $318,016 for yard waste collection in 2004. In addition, effective March 1, 2005 through February 28, 2006, Rumpke has requested an additional increase in the per household charge by another $.15 for a total of $.86 per month per household. The increase for 2005 through February 2006 is estimated to cost the Refuse Collection Division an additional $645,000 for yard waste collection. Even with these increases, the Public Service Department maintains that the yard waste collection service is still economical for the City.
In order to minimize the yard waste collection fee increases, the Public Service Department agreed to Rumpke's request to have the yard waste collection day occur simultaneously with the subscription recycling collection day. Therefore, residents will be notified that regular refuse will continue to be collected according to the Refuse Collection Division's color coded rotating collection schedule while yard waste and subscription recycling will be collected on a separate day to be designated by Rumpke.
Rumpke's contract compliance number is 31-1617611, expiring February 14, 2005.
Fiscal Impact: The Refuse Collection Division has a total of $2,736,334 budgeted in the General Fund for yard waste collection in 2004. In 2003, $1,989,480 was expended for yard waste collection (only funded for ten months); $2,163,864 was expended in 2002 and $2,030,801 expended in 2001.
Emergency action is requested to establish funding for this contract in a timely manner to avoid service interruptions to residents. Consideration of this ordinance as a thirty-day measure is impractical given the timing of passage of the General Fund budget and the projected exhaustion of existing contract funding.
Title
To authorize the Public Service Director to modify and increase a contract for the Refuse Collection Division with Rumpke of Ohio, Incorporated, for yard waste collection services, to authorize the expenditure of $2,643,448.80 from the General Fund; and to declare an emergency. ($2,643,448.80)
Body
WHEREAS, there is a need for the Public Service Department, Refuse Collection Division, to continue to provide yard waste collection to residents; and
WHEREAS, Rumpke of Ohio, Inc., was the only bidder for the yard waste portion of the proposed contract when proposals were received in August 2000, and
WHEREAS, the existing contract for yard waste collection with Rumpke of Ohio, Inc., was authorized by Ordinance No. 365-01 and commenced March 1, 2001, and
WHEREAS, with approval of Council, this agreement can be extended for on year periods, beginning March 1, 2001 through February 28, 2006, and
WHEREAS, the terms of the contract modification and increase were negotiated by the parties to their mutual satisfaction and with an eye toward minimizing costs to the City; and
WHEREAS, this is the first price increase in the yard waste collection contract since the original agreement in March 2001, and
WHEREAS, it is in the City's best interest to modify and extend the current yard waste collection contract with Rumpke of Ohio, Inc, and
WHEREAS, an emergency exists in the usual daily operation of the Refuse Collection Division, Public Service Department, in that it is immediately necessary to modify and increase this contract in a timely manner to avoid service interruptions to residents, 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 modify and increase the existing contract with Rumpke of Ohio, Incorporated, for yard waste collection service for the Refuse Collection Division for the period January 1, 2004, through December 31, 2004, inclusive.
SECTION 2. That the sum of $2,643,448.80, or so much thereof as may be necessary for this purpose, be and hereby is authorized to be expended from the General Fund, Fund 010, Department No. 59-02, Refuse Collection Division, Object Level One Code 03 and Object Level Three Code 3336 as follows:
OCA Code/ Amount
591198/ $881,149.60
591727/ $881,149.60
591941/ $881,149.60
Total $2,643,448.80
SECTION 3. 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.