1997-150 * 1 0
RESOLUTION NO. 97 -. 15_
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, 1997 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 April 6, 1997 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 22 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,
1997.
AYES: 6 - Marienthal. Reid, Rubin, Braiman, Hendricks, Glover
NAYES: 0 - None
ABSENT: 0 - None
PASSED: April 7 ,1997.
APPROVED: April 7 ,1997.
ATTEST:
VillaW Clerk
4
illage President
•
•
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 6th day of April,
1997 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.
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 $7.06 /month per single - family, duplex, attached single - family and townhouse
dwelling unit and the maximum sum of $4.89 /month per multi - family dwelling unit.
The rate shall be effective on May 1, 1997 and will be effective through April
30, 1998. 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 $6.20 /month per single - family, duplex,
attached single - family and townhouse dwelling unit or an additional $5.00 /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.
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 1st 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 Dispgsal Surcharge, The Village may, at its option and under the
1
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 t9 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
3. SWANCC Surcharge per Ton times value of x(Step 2 value) = Single
Family Total Surcharge
SWANCC surcharge per Ton times value of .80x(Step 2 value) Multi -
Family Total Surcharge
4. Surcharge /12= Monthly Surcharge (Weighted)
S. Surcharge due SWANCC net of any alternative rate subsidy applied by
the Village.
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.
2'
•
ATTEST:
ATTEST:
Vi ge Clerk
•
WASTE MANAGEMENT- NORTHWEST,
A DIVISION OF WASTE MANAGEMENT OF
ILLINOIS, INC.
• - Ow
�` - woo i
F_ T M � 0 TZ-7! n --f M
VILLAGE OF BUFFALO GROVE
PROPOSED FY 1997 -1998 REFUSE RATE ADJUSTMENT
EFFECTIVE AS OF MAY 1, 1997
WITH SWANCC FEE SURCHARGE
SERVICE COMPONENT
RATE
RATE
PROPOSED
CHANGE
CHANGE
05/01/95
05101/96
FEES
($)
( %)
BASIC SERVICE:
SINGLE - FAMILY /DUPLEX/ATTACHED
7.55
6.85
7.06
0.21
3.07%
FAMILY & TOWNHOUSE UNITS
MULTI - FAMILY UNITS
4.75
4.75
4.89
0.14
2.95%
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
3.75
5.00
6.20
1.20
24.00%
WTTS ANTICIPATED TIPPING FEES -MULTI
3.75
4.00
5.00
1.00
25.00%
AVERAGE SINGLE- FAMILY RESIDENTIAL
13.80
14.35
15.76
1.41
9.83%
UNIT WITHOUT SUBSCRIPTION
AVERAGE SINGLE - FAMILY RESIDENTIAL
18.05
18.60
20.01
1.41
7.58%
UNIT WITH SUBSCRIPTION
AVERAGE MULTI - FAMILY RESIDENTIAL
-
8.75
9.89
1.14
13.03%
SUBSCRIPTION SERVICE/MONTH
4.25
4.25
4.25
0.00
0.00%
•
VILLAGE OF BUFFALO GROVE
SOLID WASTE AGENCY OF NORTHERN COOK COUNTY -RATE PROJECTIONS
CURRENT RATE STRUCTURE - EFFECTIVE AS OF MAY 1,1996:
SWANCC SURCHARGE: SINGLE FAMILY: 5.00
MULTI FAMILY: 4.00
ANTICIPATED SWANCC SURCHARGE AS OF 5101/97 BASED ON CURRENT
AGENCY BUDGET (FORECAST):
TIPPING FEES PER TON 43.75
DEBT SERVICE 28.00
TOTAL PROJECTED RATE PER TON 71.75
PROPOSED VILLAGE SURCHARGE FOR SWANCC EFFECTIVE MAY 1,1999:
IF DISTRIBUTED EQUALLY BASED ON SYSTEM WIDE AVERAGE PER TON
ANTICIPATED TO BE DELIVERED:
ANNUAL AVERAGE (TONS)= 1.15772
CURRENT CUSTOMER BASE= 13,505
TOTAL ESTIMATED REFUSE DELIVERIES (TONS):
FEES DUE SWANCC @ PROJECTED RATE PER TON:
FY 1997 -1998 RATE WITHOUT PROPOSED SUBSIDY:
FY 1997 -1998 RATE WITH $150,000 CORPORATE FUND SUBSIDY
•
PROPOSED RATE STRUCTURE - EFFECTIVE AS OF MAY 1,1997:
SWANCC SURCHARGE:
PER UNIT AVERAGE: 6.00
WEIGHTED - SINGLE AND ATTACHED SINGLE - FAMILY: 6.21
MULTI - FAMILY: 4.97
15,635.00
1,121,811.25
6.92
6.00
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: 11,207
MULTI - FAMILY ATTACHED UNITS: 2,298
ANNUALIZED REFUSE TONNAGE BASED AGENCY 15,635.00
PRO -FORMA WITH WASTE STREAM DECLINING 2 %NEAR:
DISTRIBUTION FORMULA BASED ON ASSUMPTION:
11,207() +2,298(.80X) =15,635
11,207X+ 1,838.40X= 15,635
13,045.40X = 15,635
X= 1.19850675
THEREFORE, SINGLE AND ATTACHED SINGLE EQUAL: 1.198507 TONS
MULTI- FAMILY = 80% OF SINGLE - FAMILY 0.958805 TONS
PROOF:
11, 207( 1.198507) +2,298(.958805) =15,635
13,431.67 + 2,203.33 = 15,635.00
15,635.00 = 15,635.00
IF SWANCC SURCHARGE IS DISTRIBUTED BASED ON GENERATION:
SINGLE - FAMILY AND ATTACHED SINGLE - FAMILY:
PROJECTED RATElTON X DISPOSAL VOLUME: 85.99
MONTHLY CHARGE: 7.17
MULTI - FAMILY:
PROJECTED RATE/TON X DISPOSAL VOLUME: 68.79
MONTHLY CHARGE: 5.73
ANNUAL
SURCHARGE NET OF SUBSIDY DISTRIBUTED ON WASTE GENERATION:
VOLUME
PERCENT
FEES DUE
SUBSIDY
UNITS
SINGLE - FAMILY AND ATTACHED SINGLE - FAMILY:
6.21
13,431.67
85.91%
963,722
128,861.51
134,484
MULTI - FAMILY:
4.97
2,203.33
14.09%
158,089
21,138.49
27,576
15,635.00
100.00%
1,121,811
150,000.00
162,060
PROOF:
ESTIMATED FY 1997 -1998 SWANCC SURCHARGE:
1,121,811.25
(11, 207'12`6.21) +(2,298'12'4.97) =971,811.25+150000=
1,121,811.25
CUSTOMER RATE: MONTHLY
ANNUAL
RATE UNITS SURCHARGE
SURCHARGE
SINGLE FAMILY 6.20 11,207 69,483.40
833,800.80
MULTI - FAMILY 5.00 2,298 11,490.00
137,880.00
80,973.40
971,680.80
Waste Management - Northwest
1021 E. Green Street
P.O. Box 278
Franklin Park, IL 60131
800/964 -8988 • Fax: 708/787 -2690
January 17, 1997
Mr. Bill Balling, Village Manager
Village of Buffalo Grove
50 Raupp Boulevard
Buffalo Grove, Illinois 60089
SUBJECT: Annual Rate Review
Dear Bill:
•
rQ
NV
A Waste Management Company
The new year is upon us and with it brings the annual rate review that our contract with the
Village provides. After reviewing our costs and the increases that we have incurred over
the past year, we are respectfully requesting an increase in the amount of 3% on the
following rates:
RATE TYPE CURRENT INCREASE NEW
Single Family & Attached Single Family 6.85 .21 7.06 3166" _
Recycling 2.50 .08 2,W
Multi- Family Dwelling Unit 4.75 .14 4.89
Optional Subscription Service 4.25 No increase requested
White. Goods 30.00 No increase requested
The rate changes we are requesting are based on a 3.5% increase in the Chicago "all items"
CPI index from November 1995 to November 1996 (see attached). We feel that this index
accurately depicts the increases we have experienced.
As you can see, we are not requesting the full 3.5% as stated in the CPI index. Although
we have experienced large increases in such areas as fuel, insurance and labor, we feel that
our cost cutting efforts in other areas have allowed us to keep any rate change requests to a
minimum.
As always, we appreciate the opportunity to serve the Village of Buffalo Grove and look
forward to a continuing long term relationship. If you have any questions please feel free to
call.
Sincerely,
Tom / s
Tom Mazzenga CJ ol
Division President -
a division of Waste Management of Illinois, Inc. `0
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