1999-050
RESOLUTION NO. 99- 5
A RESOLUTION 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, 1999 in
order to accommodate changes in 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 1, 1999 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,
1999.
AYES: 6 - Marienthal. Reid, Rubin, Braiman, Hendricks, Glover
NAYES: 0 - None
ABSENT: 0 - None
PASSED:- January 18 ,1999.
APPROVED: January 18 11999.
Village President
ATTEST:
XL
0_444�
Vill e Clerk
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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 1st day of March,
1999 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 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 $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, 1999 and will be effective through April
30, 2000. Contractor shall adjust his rates effective at the beginning of each
Contract year, that year beginning each May lst 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.
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, 2000, 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, 2000
and April 30, 2001. 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.
4z
ATTEST:
I
WASTE MANAGEMENT- NORTHWEST,
A DIVISION OF WASTE MANAGEMENT OF
ILLINOIS, INC.
WIN
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VILLAGE OF BUFFALO GROVE
SOLID WASTE AGENCY OF NORTHERN COOK COUNTY -RATE PROJECTIONS
CURRENT RATE STRUCTURE - EFFECTIVE AS OF MAY 1,1998:
SWANCC SURCHARGE: SINGLE FAMILY: 6.20
MULTI FAMILY: 5.00
ANTICIPATED SWANCC SURCHARGE AS OF 5/01/99 BASED ON CURRENT
AGENCY BUDGET (FORECAST):
TIPPING FEES PER TON 44.00
DEBT SERVICE 26.07
TOTAL PROJECTED RATE PER TON 70.07
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)= 1.04272
CURRENT CUSTOMER BASE= 15,146
TOTAL ESTIMATED REFUSE DELIVERIES (TONS):
FEES DUE SWANCC @ PROJECTED RATE PER TON:
FY 1999 -2000 RATE WITHOUT PROPOSED SUBSIDY:
FY 1999 -2000 RATE WITH $75,000 CORPORATE FUND SUBSIDY
is
PROPOSED RATE STRUCTURE - EFFECTIVE AS OF MAY 1,1999:
SWANCC SURCHARGE:
PER UNIT AVERAGE:
WEIGHTED - SINGLE AND ATTACHED SINGLE - FAMILY:
MULTI - FAMILY:
15,793.00
1,106,615.51
6.09
5.68
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:
11,694
MULTI - FAMILY ATTACHED UNITS:
3,452
ANNUALIZED REFUSE TONNAGE BASED AGENCY
15,793.00
PRO -FORMA WITH WASTE STREAM DECLINING 2 %/YEAR:
DISTRIBUTION FORMULA BASED ON ASSUMPTION:
11,694(X) +3,452(.80X)= 15,793
11,694X + 2,761.60X= 15,793
14,455.60X= 15,793
X= 1.09251778
THEREFORE, SINGLE AND ATTACHED SINGLE EQUAL:
1.092518
TONS
MULTI - FAMILY = 80% OF SINGLE - FAMILY
0.874014
TONS
PROOF:
11,694(1.092518) +3,452(.874014) = 15,793
12,775.90 + 3,017.10 = 15,793.00
15,793.00 = 15,793.00
IF SWANCC SURCHARGE IS DISTRIBUTED BASED ON GENERATION:
SINGLE - FAMILY AND ATTACHED SINGLE- FAMILY:
PROJECTED RATE/TON X DISPOSAL VOLUME: 76.55
MONTHLY CHARGE: 6.38
MULTI - FAMILY:
PROJECTED RATE/TON X DISPOSAL VOLUME: 61.24
MONTHLY CHARGE: 5.10
ANNUAL
SURCHARGE NET OF SUBSIDY DISTRIBUTED ON WASTE GENERATION:
VOLUME PERCENT FEES DUE SUBSIDY UNITS
SINGLE - FAMILY AND ATTACHED SINGLE - FAMILY:
5.95
12,775.90 80.90% 895,208 60,671.99 140,328
MULTI - FAMILY:
4.76
3,017.10 19.10% 211,408 14,328.01 41,424
15,793.00 100.00% 1,106,616 75,000.00 181,752
PROOF:
ESTIMATED FY 1999 -2000 SWANCC SURCHARGE:
1,106,615.51
(11, 694'12.5.947) +(3;452`12.4.758) = 1,031,616 +75000=
1,106,615.51
CUSTOMER RATE: MONTHLY
ANNUAL
RATE UNITS SURCHARGE
SURCHARGE
SINGLE FAMILY 6.20 11,694 72,502.80
870,033.60
MULTI - FAMILY 5.00 3,452 17,260.00
207,120.00
89,762.80
1,077,153.60
5.68
5.95
4.76