R2010-239 AUTHORIZING FOURTH EXTENSION OF CONTRACT - SUBURBAN DISPOSAL AND RECYCLING

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� , , DEVELOPMENT SERVICES MEMORANDUM No. 10-116 December 20, 2010 TO: Honorable Mayar Michael T. McElroy and City Council Members FROM: Ryan P. McCrady, City Manager Greg C. Crowe,Assistant City Manager Vasudha Pinnamaraju,AICP,Environmental Planner SUBJECT: Three(3)month Residential Recycling extension with Suburban Disposal. SUMMARY RECOMMENDATION: Staff recommends approval of the three (3) month recycling extension with Suburban Disposal for the City's residential curbside recycling program. BACKGROUND: The City Council approved a five (5) year contract in 2004 and two six (6) month extensions in 2009 and early 2010 as well as a three (3) month extension in September 2010 with Suburban Disposal to provide residential curbside recycling pickup. During the past year, City staff researched several successful recycling programs throughout the country and identified that curbside single stream recycling program along with a wheel cart will increase the recycling participation rates. Based on this, staff issued three (3) different RFP's for collection at the curb, processing of recyclables, and carts. As presented to the Council during the study session on September 7`h, staff received proposals from nine (9)proposers in response to the published RFP's. Staff recommended Veolia's collective proposal at $4.61/Mo/HH as the lowest bidder for consideration by the Council. During this session, most citizens thought that the proposed single stream recycling is a good idea. However, following concerns were expressed • $4.61/Mo/HH is a huge increase in cost compared to the current rate at$1.65/Mo/HH • Proposed plan was going to distribute 65 gallon blue carts to every household. Citizens were concerned that at the current participation rate of 15%, majority of these carts will be underutilized. They were also concerned that most households may not have space in the garages to store these carts. Based on these comments, staff considered other options that are being presented to the Council for approval along with this extension. Since the current contract is set to expire on December 31,2010,there is not enough time for the proposed changes to take effect on January 1, 2011 even if the Council approves the proposed program. Staff requests to extend the contract with Suburban Recycling for three (3) months. The proposal would extend the contract until March 31, 2011 and would give staff and the new haulers time to start the proposed program efficiently. The terms of the contract will be extended throughout the three(3)months. POTENTIAL OBJECTIONS: None. INPUT FROM OT�IER SOURCES: Corporation Counsel has reviewed the three (3)-month recycling extension agreement letter. STAFF REFERENCES: If Council members have questions they may contact Vasudha Pinnamaraju at 424-2778 or vpinnamaraju@decaturil.gov. BUDGET/TIME IlVIPLICATIONS: The current contract is set to expire December 31,2010.