ACTION REQUESTED:
Title
Communication from the City Manager with a Request for a POLICY SESSION to Discuss WASTE COLLECTION SERVICES.
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BACKGROUND: The City of Peoria held initial public meetings in July of 2016 seeking feedback on current solid waste services and input for the future of solid waste services provided in the City. In late 2016, Foth Infrastructure & Environment, LLC (Foth), was engaged to assist the City through evaluating current services, seeking public input and preparing for a potential request for proposals.
Extensive public outreach was conducted with Simantel Group Inc., who utilized online survey, social media platforms, field distribution of hard copies, promotion at public events and a public meeting. The survey response had the one of the highest participant total of a public outreach campaign. All City of Peoria zip codes were represented and a broad spectrum of age groups and households. Results of the public input were presented to City Council on May 9, 2017, following recent City Council elections. Select slides are included in the presentation and will be discussed further, if needed, during the policy session. Following the presentation to Council, City staff were requested to investigate expanded recycling per public feedback, cost effective and industry best management practices, and public versus private operations.
The City of Peoria released a request for proposals (RFP) on August 11, 2017 and subsequently issued six (6) RFP Addenda. The RFP designation issued by the City was RFP #29-17. Four Respondents submitted proposals by the amended deadline of Thursday, November 9, 2017:
• Advanced Disposal Services (“Advanced”)
• City of Peoria, Public Works Department (“PWD”)
• PDC Services, Inc. (“PDC”)
• Waste Management (“WM”)
The RFP specified a “Base” level of solid waste collection services including, but not limited to:
1. Residential Waste Collection
2. Residential Recyclable Materials Collection
3. Residential Landscape Waste Collection
4. Stacked Condominiums
5. City Buildings
6. Peoria Public Schools (PPS)
7. Various Peoria County Facilities
Submitting a Base proposal was a required element of the RFP process to allow for similar price comparisons between Respondents. However, Respondents were encouraged to submit Alternate Proposals outside of the base specifications. Three (3) of the four (4) Respondents submitted Alternate Proposals as part of their original packets. Later, through the interview process, the Respondents provided additional information and clarification.
Because Respondents developed Alternate Proposals without RFP guided specifications, the Alternate Proposals cannot be directly compared between Respondents. However, Alternate Proposals can be compared to the same Respondent’s Base Proposal. This system of Base and Alternate Proposals was intended to encourage both competitive and creative submittals. Again, a qualitative summary of service elements proposed by each Respondent can be found as in the attached memo.
To evaluate the proposals, the RFP provided a brief evaluation criteria guide, which included the qualitative scoring criteria. Additionally, the proposals were reviewed by a separate Selection Committee composed of various individuals to review the proposals in as submitted. Following submittal, the Committee interviewed all Respondents and asked each various questions based on those interviews. As previously provided to City Council, the Selection Committee was composed of Patrick Urich, Patrick Nichting, Jim Scroggins, Dave Meyers (Peoria Public Schools), and Scott Sorrel (Peoria County). The Selection Committee reviewed all proposals for services proposed in Base and Alternate options.
Through the review of alternate proposals and interviews with all the firms, the Committee began to negotiate in earnest with the City of Peoria Public Works Department and Peoria Disposal Company. Waste Management and Advanced Disposal Services proposals were too costly for the City to consider. PDC’s alternative deviated from universal recycling but provides free recycling toters upon request. The cost of this service would be $11.23 per household per month. The City’s final alternative proposal provides universal recycling and would cost households $8.90 per month. The Committee discussed a potential hybrid approach between the City and PDC where yard waste and recycling would be provided by the City and trash disposal would be handled by PDC. This service would cost a household $11.09 per month. PDC has provided certain incentives to complete this process by March 27, 2018: an early payment of $450,000 due upon the opening of landfill #3; foregoing the existing contract escalator ($96,000); and eliminating the last 2 years of toter payments ($590,000) if they are selected to provide trash disposal services to the City.
At the policy session, staff will run through the cost proposals and request direction from Council to finalize a recommendation to be acted upon at the March 27, 2018 Council meeting.
FINANCIAL IMPACT: City and Foth staff recommend that a hybrid approach be implemented with the new contract. Garbage collection services would be provided by PDC, and yard waste and recycling services would be provided by the City of Peoria. At $11.09 per household per month, coupled with the other costs of the waste collection program, funds would be available from current plan fee increases to support the operations.
Staff will walk through the attached cost estimates of the proposals for Council at the Policy Session.
NEIGHBORHOOD CONCERNS: Residents have repeatedly stated that they are satisfied with their current trash services but are interested in more frequent recycling.
IMPACT IF APPROVED: A hybrid model where PDC would continue to provide trash collection services while the City collected recycling and yard waste would provide some advantages to the City. During cold weather months, staff assigned to yard waste collections could provide snow removal services. The City could provide a legitimate check on PDC to determine if their pricing is competitive. The disadvantage of the hybrid approach is service coordination. PDC and the City would have to coordinate on routes to ensure that trash, recycling and yard waste were all picked up in a coordinated manner. Overall, the cost of a hybrid approach would be higher, but the control provided to the City would outweigh the higher cost.
IMPACT IF DENIED: If the Council does not want to adopt a hybrid model, the option is to select between PDC and the City of Peoria to perform the service.
ALTERNATIVES: Staff will outline the cost differences between the City proposal and the PDC proposal at the Policy Session.
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City
2. Beautiful Peoria
3. Grow Peoria
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Support sustainability.
2. Keep taxes and fees competitive.
3. Have an efficient government.
DEPARTMENT: City Manager's Office