R2010-169 AUTHORIZING THIRD EXTENSION OF CONTRACT

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DEVELOPMENT SERVICES MEMORANDUM No. 10-81 September 20, 2010 TO: Honorable Mayor 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 with Suburban Disposal to provide residential curbside recycling pickup. The current contract is set to expire September 30, 2010. 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 far collection at the curb, processing of recyclables, and carts. As presented to the Council during the study session on September 7`�', 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 • Residents were concerned with going from $4.61/Mo/household from the current rate of $1.65/Mo/household. � That the 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 would like to consider other options that would address these concerns. Staff needs two (2) to three (3) months to research other avenues to improve the existing recycling program and address citizen concerns on the proposed program. The City's current contract with suburban disposal is set to expire on September 30, 2010. Staff requests to extend the contract for three (3) months. The proposal would extend the contract until December 31, 2010 and would give staff some time to research other options. The terms of the contract will be extended throughout the three(3)months. POTENTIAL OBJECTIONS: None. INPUT FROM OTHER 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 September 30,2010.