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1996-22n • RESOLUTION NO. 96- 22 AN ORDINANCE AUTHORIZING THE EXECUTION OF AMENDMENTS TO THE RESIDENTIAL SCAVENGER SERVICE CONTRACT BETWEEN THE VILLAGE OF BUFFALO GROVE AND WASTE MANAGEMENT- NORTHWEST, A DIVISION OF WASTE MANAGEMENT OF ILLINOIS, INC. WHEREAS, the Village of Buffalo Grove has determined that it is in the best interests of the Village to contract with Waste Management- Northwest, a division of Waste Management of Illinois, Inc. to continue to provide exclusive residential scavenger services within the Village of Buffalo Grove; and WHEREAS, the President and Board of Trustees authorized the current residential scavenger service contract with Waste Management- Northwest (Buffalo Grove /Wheeling Disposal) on February 21, 1995; and WHEREAS, that contract is now presented for amendment as of May 1, 1996 in order to accommodate changes in Contractor Duties, Compensation and Term of Contract. NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS, that: SECTION 1. The Village President and Village Clerk be and they are hereby authorized to execute amendments dated March 18, 1996 to the current residential scavenger service originally dated February 21, 1995, between the Village of Buffalo Grove and Waste Management- Northwest, a division of Waste Management of Illinois, Inc. Copy of said amendments are attached and made a part hereof. SECTION 2. This Resolution shall be in full force and effect from and after its passage and approval in the manner provided by law as of May 1, 1996. AYES: 5 - Marienthal Reid Rubin Braiman Hendricks NAYES: 0 - None ABSENT: 1 - Glover PASSED: March 18 ,1996. APPROVED: March 18 ,1996. lage P ident UVOOD &CIF 7"x, ala VillaW Clerk o • RESIDENTIAL SCAVENGER SERVICE CONTRACT AMENDMENTS BETWEEN THE VILLAGE OF BUFFALO GROVE AND WASTE MANAGEMENT - NORTHWEST A DIVISION OF WASTE MANAGEMENT OF ILLINOIS, INC. These contract amendments are made and entered into the 18th day of March, 1996 by and between Waste Management- Northwest, a division of Waste Management of Illinois, Inc., hereinafter referred to as the "Contractor" and the Village of Buffalo Grove, an Illinois municipal corporation, hereinafter referred to as the "Village" and hereby amend the Residential Scavenger Service Contract dated as of February 21, 1995. ARTICLE I CONTRACTOR'S DUTIES 1.1 Materials Collected. The materials to be collected as part of the regular scheduled pickups shall include the following: A. All kitchen wastes, including cans, bottles, plastic containers, household food, accumulations of animal food and vegetable matter that is attendant to the preparation, use, cooking and serving of food. B. General household garbage and refuse, including cold ashes, broken down empty cartons, boxes, wrapping materials, newspapers and magazines, cloth materials, discarded toys and clothing and other similar materials. C. Recyclable materials includes, but is not limited to, aluminum, tin, steel and bi -metal cans, clear, green and brown glass bottles and jars, plastic containers and material approved for recycling disposal, newspapers and magazines, and any and all other materials within the service parameters of any Village- sponsored recycling program that the Village and Contractor agree to recycle in the future. D. Yard materials, including, but not limited to, bagged grass clippings and leaves, weeds, Christmas trees, brush and brush clippings, and branch and branch clippings when securely bound in bundles not exceeding four (4) feet in length and not exceeding seventy (70) pounds in weight each hereinafter referred to as compostables. E. Discarded furniture, fixtures, household appliances, and other large and bulky items as hereinafter defined in Section 1.2,, Paragraph C. F. Materials to be collected will not include certain unacceptable waste trees, earth, sod, rocks and boulders, concrete and construction debris. Additionally, hazardous, non - hazardous special, friable asbestos, potentially infectious medical, lead -acid batteries, liquid, and industrial type wastes shall not be collected from dwelling units served under this Contract. 1.2 Method of Collection. The method of collection and disposal of items covered by this Contract shall be as followss A. The Regular Semi - Weekly Service: The Contractor will furnish a regular semi - weekly scheduled collection service for each single- family dwelling unit in the Village in the following manner 1. Beginning April 1, 1996, materials mentioned in Section 1.1, Paragraphs A,B, and E will be picked up together on the same pickup day, that day being the scheduled day for the collection of such materials. Those materials mentioned in Section 1.1, Paragraphs C and D will be picked up together on a different pickup day. 1 2. Beginning April 1, 1996 through December 15, 1996, materials mentioned in Section 1.1, Paragraph D will be collected. The Village reserves the right to direct the Contractor to collect such materials beyond December 15, 1996 should seasonal conditions warrant. 3. Beginning April 1, 1996, materials mentioned in Section 1.1, Paragraphs A & B will be picked up together on the same pickup day, but with such service on a twice - per -week basis, those days being the scheduled days for the collection of such materials. This service will be for those residents in dwelling units served on a voluntary subscription basis. Materials mentioned in Section 1.1, Paragraphs C & D will be picked up together on a different pickup day. Materials mentioned in Section 1.1, Paragraph E will be picked up on a different pickup day. For each attached single - family, duplex and townhouse dwelling units in the Village with curb side service, collection service will be twice - weekly for all garbage and refuse with recyclable material collected once weekly. B. Disposal Ouantities: There shall be no more than ten (10) bags or containers per pickup which the resident can use to dispose of items to be collected and no more than two (2) recycling containers per residence to dispose of the designated recycling materials and the Contractor shall collect from all ten (10) bags or containers which are placed for collection. Bags or containers shall not exceed seventy (70) pounds in weight each. In addition, no more than ten (10) bags or bundles of compostables for collection on the second pickup of the week for the items to be collected, and Contractor shall collect from all ten (10) bags or containers which are placed for collection. Bags or containers shall not exceed seventy (70) pounds in weight each. However, the bag or bundle limitation shall be suspended for the months of October, November and December. For those residents served on a voluntary subscription basis, there shall be no more than ten (10) bags or containers for the regular semi- weekly pickup which the resident can use to dispose of the items to be collected and no more than two (2) recycling containers per residence to dispose of the designated recycling materials and no more than ten (10) bags or bundles of compostables for collection on the second pickup of the week for the items to be collected, and Contractor shall collect from all ten (10) bags or containers which are placed for collection. Bags or containers shall not exceed seventy (70) pounds in weight each. However, the bag or bundle limitation shall be suspended for the months of October, November and December. As to compostables, the Contractor shall not be required to collect containers that exceed the weight limit, that contain items other than compostables, or that are not accepted at the compost site(s) used by the Contractor. ARTICLE II 2.0 Compensation. The Contractor shall charge for any and all services hereinabove stated for the regular semi - weekly collection and transportation of general household garbage and refuse and compostable materials, the maximum sum of $6.85 /month per single- family, duplex, attached single - family and townhouse dwelling unit and the maximum sum of $4.75 /month per multi - family dwelling unit. The rate shall be effective on May 1, 1996 and will be effective through April 30, 1997. Contractor shall adjust his rates effective at the beginning of each Contract year, that year beginning each May 1st during the term of this Contract. In addition to the above collection and disposal rates for regular semi- weekly service, either an additional $5.00 /month per single - family, duplex, attached single - family and townhouse dwelling unit or an additional $4/00 /month per multi - family dwelling unit will be charged to those dwelling units receiving service for the costs of service detailed in Section 2.5 of this Contract. o • In addition to the above basic rates for regular semi - weekly collection and disposal of general household garbage and refuse and compostable materials, the Contractor shall charge an additional $4.25 /month to all classes of residential dwellings served under this Contract choosing the voluntary subscription service. In addition to the above basic rates for regular semi - weekly collection and disposal of general household garbage and refuse and compostable materials, the Contractor shall charge an additional $2.50 /month to all classes of residential dwellings served under this Contract (other than multi - family residential) for the costs of the Village -wide recycling service program, which includes the purchase and replacement of disposal bins along with the procurement of one additional bin per residential dwelling unit. All net revenue earned from the sale of recyclables shall be retained by the Contractor. A detailed accounting of the recycling program, including rates and proceeds from the sale of recycled materials, along with expenses incurred for the processing of recyclables, shall be rendered to the Village monthly. The goal of this Contract is to expand the recycling program. In order to reach this goal during the course of this Contract, the Village retains the right to negotiate with the Contractor, at least on an annual basis, the types of products collected in the recycling program. The Village also reserves the right to identify and choose reasonable alternative competitive markets for the processing of recycled materials. If at some point an end market is created for compostable materials, the Village will reserve the right to participate in the revenue generated from such marketing of this material. Contractor shall adjust their rates for both the regular semi - weekly collection and voluntary subscription service collection programs effective at the beginning of each Contract year, that year beginning each May lst during the term of this Contract. Fee adjustments will be subject to terms and conditions mutually agreeable to both parties should this Contract be extended beyond the term noted in Article V. 2.5 Refuse Disposal Surcharge. The Village may, at its option and under the terms and conditions of a Project Use Agreement between the Village and the Solid Waste Agency of Northern Cook County ( "SWANCC "), request that the Contractor further adjust the compensation charges as stated in this Contract in Section 2.0 for the disposal, at the Wheeling Township Transfer Station operated by or under contract to SWANCC, of garbage, refuse, and other acceptable Agency waste as defined in the Project Use Agreement and Agency Rules and Regulations, for the purpose of recovering certain identified Village costs and charges due SWANCC. The additional charges for any surcharge that may be necessary shall not be included in the base rate for refuse service when determining annual adjustments to compensation under the provisions of Section 2.1 of this Contract. A separate annual surcharge will be required under the terms and conditions of the Project Use Agreement and will be added as a component of the overall charge to each dwelling unit served under this Contract. Although the intent of the additional compensation to be collected by this Section is for disposal at the Wheeling Township Transfer Station, the Village reserves the right to retain such surcharge should SWANCC's balefill project fail to be completed and funding to retire the Village's financial contractual commitments become necessary. The Village will provide to Contractor prior to the beginning of each Contract year a statement which shall set forth the estimated amount of the Village's obligation to SWANCC for that Contract year. This obligation shall be charged at a rate per month per dwelling unit served under this Contract based on the following formula: 1. Single - Family Residential Units (x)+ Multi- Family Residential Units (.80x) = Estimated Refuse Tonnage Delivered per SWANCC. 2. Calculated value of x = Estimated Tonnage Delivered - Single - Family Calculated value of .80x = Estimated Tonnage Delivered -Multi Family n 3. SWANCC Surcharge per Ton time: Family Total Surcharge SWANCC surcharge per Ton times Family Total Surcharge 4. Surcharge /12= Monthly Surcharge 5. Surcharge due SWANCC net of any the Village. • value of x(Step 2 value) = Single- value of .80x(Step 2 value) = Multi- (Weighted) alternative rate subsidy applied by The Contractor shall remit to the Village on a monthly basis the Surcharge collected from all dwellings served under this Contract as billed as determined by the above formula, plus or minus any billing adjustments. With each remittance, a detailed reconcilement shall be provided the Village supporting such remittance. Each monthly payment shall be due at the Village Hall, Attention: Director of Finance, on the last business day of each month prior to the month billed by the Contractor. (i.e. payment for customers billed for February service shall be due by the last business day of January). The Village will reserve the right to request interim adjustments to the Surcharge due as part of its obligation to SWANCC because of any required upward or downward adjustment to the Village's obligations to SWANCC. The Village and Contractor agree to cooperate in establishing the appropriate surcharge, in billing, collecting, remitting any and all fees collected and due the Village, and in communicating any necessary adjustments to the Surcharge. The Village shall diligently pursue the collection of the Surcharge from all customers served under this Contract in cooperation with the Contractor. ARTICLE V TERM OF CONTRACT 5.0 Term of Contract. The initial term of this Contract shall commence on May 1, 1995 and end on April 30, 1999, unless said Contract is terminated at an earlier date by the Village for reasons of non - performance or inability of Contractor to perform under the direction of the SWANCC Project Use Agreement, Municipal Waste System Ordinance, transfer station rules and regulations issued by the Agency or violation of the terms of this Contract by the Contractor. The Village shall have the option to extend or renew this Contract for two (2) additional one -year (1) extensions upon notifying the Contractor in writing of its intention to do so no later than ninety (90) days prior to April 30, 1999 and April 30, 2000. The Contractor shall not bill for refuse services beyond the termination date of this Contract or any extension thereof. Any and all reasonable cooperation will exist between the Village and Contractor to permit a stable transition of any service changes under this Contract. 4 0 ATTEST: ATTEST: ATTEST: 1 ava Vill Clerk w WASTE MANAGEMENT- NORTHWEST, A DIVISION OF WASTE MANAGEMENT OF ILLINOIS, INC. k --- - 'a' WASTE MANAGEMENT OF ILLINOIS, INC. ITS VILLA019' � BUFF Village RLSAdeht 0 VILLAGE OF BUFFALO GROVE PROPOSED MAY 1, 1996 REFUSE CONTRACT RENEWAL OPTIONS CURRENT RATE STRUCTURE - EFFECTIVE AS OF MAY 1, 1995: SINGLE - FAMILY & ATTACHED SINGLE - FAMILY RESIDENTIAL 7.55 MULTI - FAMILY DWELLING UNITS 4.75 RECYCLING COLLECTION 2.50 OPTIONAL SUBSCRIPTION SERVICE 4.25 SWANCC SURCHARGE 3.75 ANTICIPATED SWANCC SURCHARGE AS OF MAY 1, 1996 BASED ON CURRENT AGENCY BUDGET: TIPPING FEES PER TON 46.00 DEBT SERVICE 20.95 TOTAL PROJECTED RATE PER TON 66.95 PROPOSED VILLAGE SURCHARGE FOR SWANCC EFFECTIVE MAY 1, 1996: SINGLE AND ATTACHED SINGLE - FAMILY UNITS: IF DISTRIBUTED EQUALLY BASED ON SYSTEM WIDE AVERAGE PER TON ANTICIPATED TO BE DELIVERED: 4,518 AVERAGE= 1.08044/TONS /ANNUALLY ANNUALIZED REFUSE TONNAGE BASED ON MAY- CURRENT CUSTOMER BASE = 13,471 TOTAL ESTIMATED REFUSE DELIVERIES (TONS): 14,554.61 FEES DUE SWANCC @$66.95/TON: 974,430.95 FY 1996 -1997 RATE WITHOUT PROPOSED SUBSIDY: 6.03 FY 1996 -1997 RATE WITH $200,000 CORPORATE FUND SUBSIDY: 4.79 PROPOSED RATE STRUCTURE - EFFECTIVE AS OF MAY 1, 1996: SINGLE - FAMILY & ATTACHED SINGLE - FAMILY RESIDENTIAL MULTI - FAMILY DWELLING UNITS RECYCLING COLLECTION OPTIONAL SUBSCRIPTION SERVICE SWANCC SURCHARGE: PER UNIT AVERAGE: WEIGHTED- SINGLE AND ATTACHED SINGLE - FAMILY: MULTI - FAMILY: YARD WASTE -PER BAG STICKER YARD WASTE COLLECTED UNDER ABOVE RATES, VILLAGE RETAINS DIFFERENCE BETWEEN FEE AND COST OF STICKER IF DISTRIBUTED BASED ON ANTICIPATED REFUSE GENERATION -MULTI FAMILY ASSUMED TO GENERATE 80 % OF SINGLE- FAMILY DISTRIBUTION FORMULA BASED ON 12/31 UNIT COUNTS AND DISPOSAL: SINGLE AND ATTACHED SINGLE - FAMILY UNITS: 9,283 MULTI - FAMILY ATTACHED UNITS: 4,518 ANNUALIZED REFUSE TONNAGE BASED ON MAY- 14,456.01 DECEMBER, 1995 DELIVERIES: DISTRIBUTION FORMULA BASED ON ASSUMPTION: 9,283(X) +4,518(.80X)= 14,456.01 9,283X + 3,614.40X= 14,456.01 12,897.40X = 14,456.01 X= 1.120846 THEREFORE, SINGLE AND ATTACHED SINGLE EQUA 1.120846 TONS MULTI - FAMILY = 80% OF SINGLE - FAMILY 0.896677 TONS PROOF: 9, 283(1. 120846) +4,518(.896677) = 14,456.01 10,404.81+4,051.20= 14, 456.01 14,456.01= 14,456.01 IF SWANCC SURCHARGE IS DISTRIBUTED BASED ON GENERATION: SINGLE - FAMILY AND ATTACHED SINGLE - FAMILY: 66.95/TON * 1.120846 TONS = 75.04 MONTHLY CHARGE: 6.25 MULTI - FAMILY: 66.95 /TON *.896677 TONS = 60.03 MONTHLY CHARGE: 5.00 SURCHARGE NET OF SUBSIDY DISTRIBUTED BASED ON WASTE GENERATION: SINGLE - FAMILY AND ATTACHED SINGLE - FAMILY: 4.96 ( 10404.81 *66.95)- (200,000 *.7198)/(9283 *12) MULTI - FAMILY: 3.97 ( 4051.20 *66.95)- (200,000 *.2802)/(4518 *12) PROOF: ESTIMATED FY 1996 -1997 SWANCC SURCHARGE: 967,829.87 (9, 283 *12'4.96) +(4,518 *12 *3.97)= 767,761.68 +200000= 967,761.68 6.85 4.75 2.50 4.25 4.80 5.00 4.00 0.50 VILLAGE OF BUFFALO GROVE PROPOSED FY 1996 -1997 REFUSE RATE ADJUSTMENT EFFECTIVE AS OF MAY 1, 1996 WITH SWANCC FEE SURCHARGE SERVICE COMPONENT RATE CURRENT PROPOSED CHANGE CHANGE 05/01/94 FEES FEES ($) ( %) BASIC SERVICE: SINGLE - FAMILY /DUPLEX/ATTACHED 12.18 7.55 6.85 (0.70) - 9.27% FAMILY & TOWNHOUSE UNITS MULTI - FAMILY UNITS 0.00 4.25 4.25 0.00 0.00% COMPOST] N G/YARDWASTE SURCHARGE 0.08 0.00 0.00 0.00 0.00% RECYCLING 2.50 2.50 2.50 0.00 0.00% SENIOR CITIZEN /HANDICAPPED 9.63 9.63 9.63 0.00 0.00% WTTS ANTICIPATED TIPPING FEES - SINGLE 0.00 3.75 5.00 1.25 33.33% WTTS ANTICIPATED TIPPING FEES -MULTI 0.00 3.75 4.00 0.25 6.67% AVERAGE SINGLE- FAMILY RESIDENTIAL 14.76 13.80 14.35 0.55 3.99% UNIT WITHOUT SUBSCRIPTION AVERAGE SINGLE - FAMILY RESIDENTIAL 19.01 18.05 18.60 0.55 3.05% UNIT WITH SUBSCRIPTION AVERAGE MULTI - FAMILY RESIDENTIAL - - -- 8.00 8.25 0.25 3.13% Waste Management - Northwest 1021 E. Green Street P.O. Box 278 Franklin Park, IL 60131 8001964 -8988 • Fax: 708!787 -2690 January 8, 1996 Mr. Bill Balling, Village Manager Village of Buffalo Grove Fifty Raupp Boulevard Buffalo Grove, IL 60089 Dear Bill, RE: ANNUAL REFUSE RATE REVIEW A Waste Management Company After thorough review of all the rates in the current agreement between the Village of Buffalo Grove and Waste Management - Northwest, I would like to request increases to our current rates on three services. The requested service increases are listed below with their justification. Villace of Buffalo Grove Single Family 6 Attached Single Family Rate $ 7.55 x 2.5% = $.19 Recycling Rate $ 2.50 x 2.5% = $.06 Multi- Family Dwelling Unit $ 4.75 x.2.5% = $.12 Optional Subscription Services $ 4.25 - no increase requested White Goods $30.00 - no increase requested This requested increase is based on a 2.5% increase in the Chicago CPI from September, 1994, to September, 1995. Waste Management - Northwest has seen its cost increase beyond the 2.5 level due to increases in labor and truck parts in the last year amounting to approximately 4 %. As an alternative to this raise, I would like to offer some options available to the Village of Buffalo Grove below. Option #1 Should the Village of Buffalo Grove wish to extend the current agreement for one additional year allowed in the current agreement, Waste Management- Northwest would bypass any cost increase in calendar year 1996. Option #2 If the twice a week residential single family refuse pickup was eliminated in the winter months, the village would see no increase in any rates in 1996 plus would receive a $.45 reduction in the single family rate to be used as the village wishes. By eliminating this service in the winter months, Waste Management- Northwest would extend the yard waste pickup service through the second full week of December each year to provide better service in mild falls. a division of Waste Management of Illinois, Inc., Mr. B. Balling January 8, 1996 Page 2 . Option #3 Includes the one year contract extension in option #1 and the change of'service in option #2. This combination would freeze hauling rates in 1996 for the multi family units and reduce the single family units by $.70 per month effective May 1, 1996. Option #4 If the Village of Buffalo Grove wishes to implement a yardwaste sticker.program in 1996 it is free to do so. The village would purchase and distribute stickers to residents at whatever rate they determined equitable and collect 100% of all proceeds from this program to be used as the village wishes. Waste Management - Northwest would continue to collect and compost yardwaste for the village as it is stated in our agreement. A sticker price of $.50 could generate up to $50,000 for the Village of Buffalo Grove. Bill, I appreciate the opportunity Waste Management- Northwest has to service the Village of Buffalo Grove and its residents. Please call me at your convenience if you should have any questions. Sincerely, o h n M. B er Division President WASTE MANAGEMENT- NORTHWEST JMB /ecn z O O J N z w ♦v 3 42 F-0 • a Os :OT 9661 -90-dUW • a u .Q = •-x o, � is a � t% � �D .� x c r tn ++ x qt at Ea sa a a Ea RI & 7c n d � 3 ad t IS. © fi � h Y � v U c� o v ci tra c► ra ti •c � v v � n 44 -all oe OZ a o a 4 4 tic 1a 7. 14 v Cb v Q pQ� c t v aMi c`°v A• fl' O v1 � to a: ts ba zz M C V 189 e d '� •y i y ti U K d h d y G3� o o c`�� ° a e � o• o c r`3`� o � e a � ° � v«� Uct 2..a A i. O r LID E e -e o c o v IQ fi znna 17VU -n nxh J4nu FF-F- liumm LOZ696ZROLX% £b:TT 96/90/£0 20 °a %SG LOE69GESO TS:OT 966T- 90-daw a � � o V.• � � � � �0 Cw X � C4 b0 4k ' � •'Z Ot .se M es -4 -� 4 w v ., a —a v a �•, 4 Ik C f]. A fa. C C cr e nn L" at is .` y N N m d •y b 0p AF •[• 4 M N �!• +Mtl C`• n �+ C' • ti .R. fV •f 4 N N v ,3 4 a tv o o ri CA ? � U a Eao O •- h id A Ri d t� y Ri CO coq a. v� c � yw c as "^ S �•, •�y d d � ~ � V Cl Q: y F•w � � o L � ° R a Al 0. y m� ° C C6 � fi e w o n LT. V .y H r -0 fy O ..' q Y I m 4 eq fi Z7 ao •ro`s d L fi N alit m � � a' .t, d� ��� C." o c`3 rfy " ry ° vMiG P� Vol. vI°� t; r: - m w m `° fi c o aCi v m '� a m _v r a w m 'Z ewi N v , c�i v ti o o o w a w o Gn a u . ¢t ,o E w to 00 eo Do �° , ho u o 1. eon o b L9 q�i v 0 Qy y N A3 ts a COMM TIVH -A AND AAag FFf ONAN LOZ696ZSOLS% WTI 96/90/£0 inv iv.aa rsn r va znau Waste Management - Northwest 1021 E. Green Street 0.0. box 278 Franklin Park, IL 60131 800/964 -8988 • Fax: 748/787 -2690 Dear Buffalo Grove Resident: WAJ 1' MNAGE ME;NT N . W jr 1996 BUFFALO GROYE YARD WASTE PROGRAM 10002 A Waste Management Company Yard waste pick up service begins April Ist, and will extend through December IS, 1996. At that time we will go back to once a week pickup for regular garbage. On your recycle day we will continue to pick up recv hU and begin picking up rd waste. The other pick up day will be for household garbage. The practice of switching to twice a week pick up service affff the yardwaste season will be discontinued in 1996. All residents will receive once a week refuse service all year unless they SUBSCRIBE to twice a week service at $4 -25 per month. L Extra residential refuse pick up service from April I. (.Optional service cost for the second pick up is $4.25 per month. 2. Residents enrolled at the end of 199S will be automatically enrolled in 1996. Residents enrolled in 1995 not wishing this service in 1996 please call our office 1- 800.964 -8988 to discontinue this program. 3. Residents wishing to enroll in this program for the first time please call our office. II. Yard waste Program: I. Branches and brush bundled not to exceed 4 ft in length and 2 ft in diameter and tied with string or cloth. 2. Bagged in 30 gallon Kraft bags, which can be purchased at most hardware or grocery stores_ NO PLASTICS BAGS WILL BE ACCEPTED. 3. Loose in your regular 32 gallon can, marked with a large Red "X". 4. Place yard waste and recycling on the opposite side of the driveway for easy identification by your driver. PLEASE NOTE: THERE WILL BE NO YARD WASTE PICK UP WHAT $O EVER BETWEEN DECEMBER 15,1996 AND APRIL I, 1997. Ill. 1996 Holiday Schedule: Service for refuse, recycling and yard waste (in season) will be one day later on the following holidays: Memorial Day Independence Day (Monday and Tuesday will not be affected) Labor Day Christmas Day (Monday and Tuesday will not be affected) New Years Day (1997) Service on Thursday and Friday will be one day later after the Thanksgiving Holiday. Waste- Management - Northwest- toll free number 1.800- 964 -8988 (Monday through Friday) a division of Waste Management of Illinois, Inc. MAR -07 -1996 15 42 708 787 2690 97% P.02 ITEM XII. (E) TO: William R. Balling FROM: William H. Brimm DATE: March 11, 1996 SUBJECT: Refuse Service Contract Renewal Attached, please find a Resolution for review and consideration by the President and Board of Trustees that authorizes the Village President and Clerk to execute amendments to the current residential scavenger service contract between the Village and Waste Management Northwest to be effective as of May 1, 1996. These amendments update certain sections of the current service contract relative to Contractor Duties, Compensation and Term of Contract. The changes proposed address the following: Contractor Duties: The changes within Article I provide for the proposed changes in the frequency of collection for detached single - family homes served. Currently, this class of dwelling received refuse collection once - per -week from April 1 through November 30 with twice - weekly service from December 1 through March 31. A second pickup can be subscribed for on a voluntary basis during the April- November period. The contract amendment changes the frequency of collection to once - per -week for the entire year with subscription service year around. For this change, a reduction of $.45 /month has been extended against the current rate structure for single - family homes. It should be noted that approximately 3,400 or 36.6% of the single- family homes in the Village served opt for the second pick -up. A recent survey of SWANCC members notes that nineteen of the twenty -three members currently have once - weekly service. In addition to the revised frequency of collection, a minor change has been added to the contract that permits the extension of the yard waste collection period until mid - December. For the past several years, the collections have been impacted by mild late -fall weather conflicting with the November 30 cut -off. This change should enhance this program at the end of the season and meet what has been a residential concern the last few years. Compensation: As noted, the base service charge will decline by $.45 /month for the change in service frequency that is opted for by a majority of single - family customers. In addition, the base rate for multi - family residential customers will not increase, remaining at the current $4.25 /month. Further, Waste Management has requested consideration by the Village of an additional year on the contract, or through April 20, 1999. The original two roll -over option years would remain with an ultimate term of contract that could run through April 30, 2001. This extension combined with the service parameter changes affords an additional $.25 /month reduction in the single- family rates; combined, the reduction is equal to $.70 /month or 9.27 %. While the collection, transport and transfer costs due Waste Management decline, overall the rates will increase by $.25 /month for multi - family and $.55 /month for single - family /duplex /townhouse dwelling customers. This net change is necessitated by the FY 1996 -1997 Village obligations to SWANCC which are based on an anticipated tipping fee at the Wheeling Township Transfer Station of $66.95/ton, the components of which are $46.00 /ton for tipping, transport and landfill along with $20.95 /ton for debt service. The Village's estimated obligation prior to the application of a Corporate Fund operating transfer in FY 1996 -1997 is $974,430. An initial rate of $4.79 /month per dwelling unit would be necessary compared to the current $3.75. 0 1 W The SWANCC monthly obligation is proposed to be spread Village -wide based on a formula that weighs the diversion through the transfer station whereby multi- family refuse is equal to 80% of what is generated by single - family. These values are derived from information obtained from SWANCC and are assumed proper based on usage patterns within such dwellings that are generally based on demographics factors. A formula has been developed as is detailed on the attached spreadsheet entitled "Village of Buffalo Grove Proposed May 1, 1996 Refuse Contract Renewal Options ". By weighing the SWANCC estimated commitment, a net rate, rounded, of $5.00 /month would be due from single - family dwelling units with $4.00 /month due from multi - family. The increase from this component of the billing is $1.25 /month for single - family and $.25 /month for multi - family. This weighing addresses a major concern raised by individuals representing multi- family residents in the Village after the 1995 inclusion of multi - family dwelling unit customers into the exlcusive service contract. The proposed rate structure for the contract year beginning May 1, 1996 is detailed on a second spreadsheet that provides rates compared to both the May 1, 1994 and 1995 contract periods. Despite the changes that have impacted the collection of refuse since May 1, 1994, the rates affecting a majority of customers served is still below the 1994 -1995 fees structure. The only changes that affect cost overall is the fee that would become due based on a voluntary selection of a second refuse pickup under the subscription program. Term of Contract: In order to take advantage of a savings offered by .Waste Management, it is proposed that the current contract be extended through April 30, 1999 with two, one -year annual extensions at the option of the Village, which could extend the contract through April 30, 2001 if authorized. Other questions have been raised based on the Waste Management proposal. One question dealt with what the rate proposal would have been if the twice - weekly service is maintained for the December 1 -March 31 period. Without consideration of the one -year extension, the contractor would have initially requested a $.19 /month increase in the basic rate for single - family collection with $.12 /month requested from multi - family dwelling units. With the one -year extension, the initial rates would have been frozen. This is shown as Option #1 in John Boyer's January 8, 1996 letter regarding the annual refuse rate review. A second question was on frequency of collection in SWANCC communities. That information was provided by Ann Tennes. Although dated October 10, 1995, her opinion was that the results were still valid based on the contact periods so noted. Lastly, the frequency of subscribers to the second pickup was requested and that was noted above. One final point relative to this renewal. It was originally proposed that yardwaste be collected in Buffalo Grove under a yardwaste per bag program with proceeds retained by the Village with collection and disposal reamining part of the base monthly rate. Funds were to be used to offset anticipated future increases in the Village's obligation to SWANCC. The rate was to be initially set at $.50 /tag. In that regard, please note from the survey the costs within those SWANCC members that have such a program. The range in fees runs from $.70 to $3.49 /tag. It has been estimated that if Buffalo Grove desired to have a program that was self- supporting, that the price per tag would need to equal approximately $2.76. However, this revenue stream would revert to Waste Management with the end result being some reduction in the basis collection rate but not equal to the price of the tag. Other documents in addition to the spreadsheets are attached to support the proposed contract amendments and are as follows: January 8, 1996 "Annual Refuse Rate Review" memo from John Boyer s • regarding the proposed options and rate charges for the contract year. October 10, 1995 SWANCC "Municipal Collection Rate" survey. - A draft of the public notice that will be delivered to all residents upon the approval of the contact amendments, should they be accepted as proposed. These amendments address changes that are proposed that moderate service parameters in a minimal way returning either credit or frozen rate and fee structures through April 30, 1997. These changes offset the Village's increasing obligations to the Solid Waste Agency of Northern Cook County so that the net changes to the majority of customers are minimal, equaling 3.05% for multi - family and 3.99% for single - family. Again, the May 1, 1996 fee structure for single - family is $.41 /month below May 1, 1994 approved rates for the same level of service, exclusive of optional services despite the major fiscal commitments by the Village to the Agency. Vv Ll (�Li I William H. Brimm