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1 MEMORANDUM TO: FROM: SUBJECT: James Antonen, City Manager Shann Finwall, AICP, Environmental Planner Trash Collection System Analysis – Adopt “Findings of Facts” about the City’s Trash Collection System Analysis and Implementation Schedule for Maplewood Trash Plan December 6, 2011 for the December 12 City Council Meeting
INTRODUCTION Since the City Council’s adoption of a Resolution of Intent to Organize Trash Collection on March 28, 2011, the City has conducted an extensive trash collection system analysis. The purpose of the analysis was to determine how the City could best meet its stated goals for trash collection including: 1) cost savings to residents; 2) increased trash collection services; 3) reduced environmental impacts; 4) increased safety; 5) increased efficiency; and 6) better aesthetics during trash pickup days. The City’s trash collection system analysis followed the requirements specified in the state organized collection statute (Minnesota Statutes, Section 115A.94) including the adoption of a Resolution of Intent to Organize, 90-day planning period, and 90-day negotiation period. Subdivision 4(e) of the statute states that once the analysis is complete the city must make specific findings that describe in detail the procedures used to plan and to attempt implementation of organized collection through an arrangement with collectors who expressed interest. Additionally, a city must evaluate the proposed organized collection method to standards outlined in the subdivision. DISCUSSION 1. Findings of Fact Minnesota Statutes, Section 115A.94, Subdivision 4(e), states: “(e) The city or town shall make specific findings that: (1) describe in detail the procedures it used to plan and to attempt implementation of organized collection through an arrangement with collectors who expressed interest; and (2) evaluate the proposed organized collection method in light of at least the following standards: a. achieving the stated organized collection goals of the city or town; b. minimizing displacement of collectors; c. ensuring participation of all interested parties in the decision-making process; and d. maximizing efficiency in solid waste collection.” No one standard is determinative in the City’s final plan and other local considerations may be relevant.
Procedures 1) Maplewood’s Previous Attempts to Organize Trash Collection Maplewood has attempted to organize its trash collection system twice in the last 25 years. In early 1987 the City Council created a Solid Waste and Recycling Committee to study the issue. The Committee recommended that a policy be adopted to contract with a consortium of trash haulers for complete and comprehensive organized collection. While the City Council authorized staff to draft an ordinance and held public hearings, in 1988 the attempt to organize was dropped by the City Council due to lack of interest by citizens. In early 1995, the City Council adopted a Resolution of Intent to Organize Trash Collection per the statute. The City then held meetings with trash haulers. Later, the trash haulers submitted a counter proposal to institute certain open hauling restrictions such as voluntary truck traffic limits through routing changes. The issue was dropped by the City Council in August 1995 based on hauler and resident opposition. Based on the counter proposals received from haulers during the City’s 1995 organized collection efforts, the City amended its solid waste management ordinance and licensing requirements. The ordinance was adopted by the City Council on June 6, 1997, and included restrictions intended to help the City meet the trash collection goals at the time including implementing a day-certain trash pickup schedule and requiring licensed trash haulers to submit their rates to the City yearly. 2) Maplewood’s Current Attempt to Organize Trash Collection Beginning in 2008 interest was again expressed by residents and the Environmental and Natural Resources Commission to analyze the City’s trash collection system. In April 2010, City staff formed a Sustainable Operations Work Group to examine City operations and their environmental impacts. One of six areas brainstormed by this group was an initiative to review the City’s current solid waste management program (trash system). Two special City Council workshops were held on May 3 and August 9, 2010, to review the issue. A third special meeting and public hearing was held on October 4, 2010, in order to take testimony from all interested parties on the City’s proposal to study the trash system. Since that time City staff has maintained a special web page (Trash Collection System Analysis – www.ci.maplewood.mn.us/trash) to keep interested parties informed of this project, schedule of meetings and results.
On February 28, 2011, the City Council authorized a formal strategic planning process for the trash collection system analysis. a) Statutory Planning Process Minnesota Statutes 115A.94, Subdivision 4(c) requires the City to follow a minimum 90 day period following the resolution of intent to supervise the development of plans or proposals for organized collection. March 28, 2011: The City Council adopted a Resolution of Intent to Organize Trash Collection. The adoption of the resolution was required by Minnesota Statutes, Section 115A.94, Subdivision 4 to begin the planning process for organized trash collection. The following goals were established for the City’s trash collection system analysis: 1. Economic: a. To lower trash collection service costs for residents. b. To reduce impacts on roads leading to City savings on road repairs and reconstruction. Service: a. To provide improved quantity, quality, accountability and management of service. b. To provide improved standardization of collection methods and technology. c. To ensure service options for residents such as: i. Small service levels (e.g., trash cart size smaller than 30-gallons) ii. Rebates for extended vacations iii. Special collection options (e.g., “walk up” or “garage-side pickup”) iv. Large/bulky items pick up v. Special events pickups (e.g., spring and fall clean up events) Environmental: a. To better manage overall solid waste management and increase recycling. b. To improve management and control in order to designate that residential trash from the City be delivered to the best environmental location such as a local resource recovery facility. c. To reduce the amount of fuel consumed for trash collection operations. d. To reduce the amount of greenhouse gases (e.g., carbon dioxide) and other pollutants, including dust, emitted into the atmosphere.
Safety: a. To improve the safety of streets by reducing trash truck traffic and improving accountability. Efficiency: a. To maximize the efficiency in trash collection. Planning Process: a. To efficiently manage a planning process to achieve the above stated goals. b. To encourage participation of all interested parties in the planning process. Aesthetics: a. To reduce trash truck traffic and its associated noise and dust. b. To provide more consistent and neater looking streets during collection days. Hauler Impacts: a. To minimize displacement of trash haulers.
April 25, 2011: The City Council approved a scope of work and budget for the trash collection system analysis. The scope included the formation of a Trash Hauling Working Group to analyze trash collection systems and update the City Council. The budget included authorization to contract with Foth Infrastructure and Environment, solid waste management consultants, on the City’s trash collection system analysis. May 2011: City staff held one-on-one meetings (nine meetings) with all licensed, residential trash haulers in the City of Maplewood. The purpose of the meetings was to learn about the current residential trash hauling system and take input from the trash haulers regarding the current trash collection system. June 2011: Mayor Rossbach met with Willie Tennis (owner of Tennis Sanitation, LLC, and George Walters (owner of Walters Recycling and Refuse) to receive feedback on the City’s trash collection system analysis. Messers. Tennis and Walters inquired why the City was considering organized trash collection and what they would have to do to convince the City not to organize. The Mayor asked Messers. Tennis and Walters to help the City with a trash plan that would benefit the City and the trash haulers. Messrs. Tennis and Walters indicated that they did not want to help because they did not want Maplewood to organize trash collection. May to June 2011: The Trash Hauling Working Group met during six public meetings to analyze trash collection systems. The Working Group was appointed by the City Council as a working group to discuss alternatives that would meet the City Council’s goals and objectives for new or improved residential trash 4
collection services. The meetings were attended by the City’s solid waste management consultant, Dan Krivit of Foth Infrastructure and Environment. Systems reviewed by the Working Group included improvements to the City’s subscription (open) system and a contractual (organized) system. The analysis of a contractual system involved the creation of a request for proposal (RFP) for residential trash collection. The Working Group met approximately every two weeks over the two-month period. At each of the six meetings, time was allocated for trash haulers in attendance to provide comments and suggestions. The meeting agendas were added to the City’s trash collection system analysis webpage (www.ci.maplewood.mn.us/trash) prior to the meetings and videotapes of the meetings and presentations and handouts were posted after each meeting. July 11, 2011: The City Council authorized the release of an RFP for residential trash collection. The RFP detailed evaluation criteria for ranking proposals which were based on the City’s stated trash collection goals. The RFP specified that all proposals were due by August 19, 2011.
Statutory Negotiation Period
Minnesota Statutes 115A.94, Subdivision 4(d) requires the city to follow a minimum 90 day negotiation period following the planning period to discuss possible organized collection arrangements with all licensed collectors operating in the city who have expressed interest. August 19, 2011: The City received six responses to the RFP from the following companies (listed in alphabetical order): 1. 2. 3. 4. 5. 6. Allied Waste Services Dick's Sanitation, Inc. Highland Sanitation and Recycling Tennis Sanitation, LLC Walters Recycling and Refuse, Inc. Waste Management, Inc.
The August 19, 2011, RFP submittal deadline represented the beginning of the City’s required 90 day negotiation period per Minnesota Statutes, Section 115A.94, Subdivision 4. August 29, 2011: The Trash Hauling Working Group gave a report to the City Council during a workshop on possible improvements that could be made to the City’s open trash collection system to meet the City’s trash collection goals. During the workshop the City Council encouraged trash haulers to submit 5
alternative proposals for review. Willie Tennis (owner of Tennis Sanitation, LLC) stepped forward and briefly discussed a plan where the City would limit the number of trash hauling licenses. The City Council directed Mr. Tennis to speak to City staff about the proposal and they would bring it forward to a regular City Council meeting. September 13, 2011: The Trash Hauling Working Group met to review and rank the proposals based on the evaluation criteria specified in the RFP. Allied Waste Services (hereafter “Allied”) was chosen as the top ranked proposer. September 15, 2011: City staff met with Willie and Greg Tennis (owners of Tennis Sanitation, LLC). Messrs. Tennis described an alternative trash collection proposal where the City would limit the number of licensed residential trash haulers to three. The three companies ranked the highest in the RFP process would obtain the licenses from the City and purchase the existing routes from all other licensed trash haulers. October 10, 2011: The City Council authorized staff to negotiate a draft contract with Allied for City-Wide Residential Trash Collection (hereinafter “Contract”). October 24, 2011: Representatives of the Minnesota Chapter of the National Solid Wastes Management Association submitted a report to the City Council during a workshop on possible improvements that could be made to the City’s open trash collection system to meet the City’s trash collection goals. The report included a recommendation to limit the number of licenses and promote trash hauling rate transparency. November 14, 2011: The City Council reviewed three trash collection system analysis agenda items including: Draft Allied Contract; Notification of End of 90-Day Negotiation Period on November 21, 2011 (per State Statute); and Tennis Sanitation’s Report on Limiting Licenses in the City to Three. c) Decision to Organize Trash Collection November 28, 2011: The City Council authorized the final negotiations and execution of the Allied Contract. The term of the Contract is from date of execution through December 31, 2017. Actual collection service operations will be a period from October 1, 2012 through December 31, 2017 for a total of five years and three months. The City may consider up to two, one-year extensions for years 2018 and 2019, if mutually agreed to by the City and the Contractor.
Evaluation 1) Achieving the Stated Organized Collection Goals of the City: The City of Maplewood’s trash collection system goals were identified by the City Council in March 2011, are described in detail in Section 1.a.2.a. (Statutory Planning Process) above and summarized below: a) b) c) d) e) f) g) h) Economic Service Environmental Safety Efficiency Planning Process Aesthetics Hauler Impacts
The City objectively evaluated the proposals submitted to the City’s RFP to determine the most responsive proposal and the best value for the City and its residents. A comprehensive set of criteria were used to quantify the merits of each proposal package. The evaluation criteria and relative point values for each are shown below: CRITERIA a) b) c) d) Proposed Prices Qualifications Service Environmental Benefits and Street Impacts WEIGHT 32 points 10 points 20 points 19 points
e) f) g)
Safety Aesthetics Proposal content and overall responsiveness
8 points 5 points 6 points
Allied’s proposal was chosen as the top ranked proposal based on the criteria described above. The proposal best achieved the City’s stated goals including lower prices to residents; several service options for residents; environmental benefits including community control over decisions related to waste management; reduced truck traffic which means less noise, pollution, and impacts to City streets; and improved efficiency and aesthetics. 2) Minimizing Displacement of Collectors: a) RFP Process: The RFP was designed to minimize displacement of trash collectors by ensuring all collectors could submit a proposal regardless of a company’s size. This was accomplished in a number of ways as follows: 7
The RFP called for the City purchasing and owning the trash carts. This eliminated the financial hardship which may have been experienced by smaller trash collection companies for the purchase of carts for an entire city. The RFP allowed for several proposal scenarios to ensure all trash collectors could feasibly submit a proposal as follows: a. Citywide Option – Proposal to provide trash collection services for the entire City. Districts Option – Proposal to provide trash collection services for any or all districts only. Citywide Plus Districts Option – Proposal to provide trash collection services under both the Citywide and the Districts Option. Teaming Option – Proposal submitted with a maximum of three other companies.
Existing Open System Improvements: The City reviewed its existing open system of trash hauling to determine if improvements could be made which would meet the City Council’s stated goals. A summary of improvements reviewed included increased enforcement, increased licensing fees to cover increased enforcement, and limiting the number of licenses. Alternative Improvements: The City reviewed two alternative improvement options suggested by the Minnesota Chapter of the National Solid Wastes Management Association and Tennis Sanitation, LLC. A summary of alternative improvements include increased rate transparency and limiting the number of licenses to three, with the three top ranked companies in the RFP process awarded the licenses and buying out routes from the remaining haulers.
Ensuring Participation of All Interested Parties in the DecisionMaking Process: An important part of the City’s trash collection system analysis was ensuring all interested parties were able to participate in the decision making process. This was accomplished by holding several public hearings at the City Council, public Trash Hauling Working Group meetings where all licensed trash haulers were invited, and setting up a trash collection system webpage where updates were posted and feedback was taken from residents.
Maximizing Efficiency in Solid Waste Collection: The authorized Allied Contract will maximize the City’s efficiency in solid waste collection as follows: a) b) c) d) e) f) g) Automated Collection Standardized Carts Radio Frequency Identification System Organic Waste Collection Program Pay-as-You-Throw Plans Pricing Reduced Road Impacts
Implementation Schedule a. Education: The City must educate, promote, and engage its citizens on the new Maplewood Trash Plan. This will be accomplished through articles in the City News, information on our website, and promotional and educational materials and demonstrations at City events and facilities. Proposed timeline – December 2011 through December 2012 Ordinance and Licensing Requirements: The City must amend its Solid Waste Management Ordinance and Licensing Requirements to reflect the new organized trash collection system. Proposed timeline – March 2012 Trash Cart Survey: The City must survey all single family residents to determine the correct size cart required by each family. Proposed timeline – February 2012 Cart Purchase: The City must complete a procurement process for the purchase of carts. Proposed timeline – June 2012 Roll Out: The City must work with its existing licensed haulers and Allied Waste Services to ensure all existing carts are picked up and the City’s new carts are distributed. Proposed timeline – September/October 2012
RECOMMENDATION 1. Adopt the attached resolution (Attachment 1). The resolution adopts Findings of Fact about the City’s Trash Collection System Analysis per Minnesota Statutes, Section 115A.94, Subdivision 4(e). Review and offer comment and feedback on the proposed Maplewood Trash Plan Implementation Schedule outlined above.
Attachment 1. Resolution of Findings of Fact for Maplewood’s Organized Trash Collection Plan
RESOLUTION NO. ________ CITY OF MAPLEWOOD COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION OF FINDINGS OF FACT FOR MAPLEWOOD’S ORGANIZED TRASH COLLECTION PLAN
WHEREAS, Maplewood has an open trash collection system with nine residential trash haulers licensed in the city in 2011. WHEREAS, Minnesota Statute, Section 115A.94, Subdivision 4(a) requires a city adopt a resolution of intent to organize trash collection before implementing an ordinance, franchise, license, contract or other means of organizing collection. WHEREAS, Minnesota Statute, Section 115A.94, Subdivision 4(b) requires a city to hold a public hearing prior to adopting the resolution of intent to organize trash collection. WHEREAS, on March 28, 2011, the Maplewood City Council held a public hearing to take testimony from interested persons, including persons licensed to operate solid waste collection services in the city, prior to the adoption of a resolution of intent to organize trash collection. WHEREAS, on March 28, 2011, after the required public hearing specified above, the City Council adopted a resolution of intent to organize trash collection for the following reasons: 1. To begin a planning process. 2. To initiate additional public participation. 3. To evaluate all trash collection system options, including evaluating the city’s current open trash collection system for potential improvements. WHEREAS, on March 28, 2011, after adoption of the resolution of intent to organize as specified above, the City Council specified the following goals for the city’s trash collection system evaluation process as follows: a) b) c) d) e) f) g) h) Economic Service Environmental Safety Efficiency Planning Process Aesthetics Hauler Impacts
WHERAS, Minnesota Statutes 115A.94, Subdivision 4(c) requires the city to follow a minimum 90 day planning period following the resolution of intent to supervise the development of plans or proposals for organized collection.
WHEREAS, the city’s 90 day planning period per Minnesota Statutes 115A.94, Subdivision 4(c) began on March 29, 2011. WHEREAS, as part of the trash collection system analysis planning process, the City Council authorized the release of a Request for Proposal for residential trash collection on July 11, 2011. WHEREAS, the City’s deadline for submittal of proposals to the RFP was August 19, 2011, at which time the City received six responses to the RFP from the following companies (listed in alphabetical order): 1. 2. 3. 4. 5. 6. Allied Waste Services Dick's Sanitation, Inc. Highland Sanitation and Recycling Tennis Sanitation, LLC Walters Recycling and Refuse, Inc. Waste Management, Inc.
WHERAS, Minnesota Statutes 115A.94, Subdivision 4(d) requires the city to follow a minimum 90 day negotiation period following the planning period to discuss possible organized collection arrangements with all licensed collectors operating in the city who have expressed interest. WHEREAS, the city’s 90 day negotiation period as required by Minnesota Statutes 115A.94, Subdivision 4(d) began on August 19, 2011. WHEREAS, on September 13, 2011, the Trash Hauling Working Group met to review and rank the proposals based on the evaluation criteria specified in the RFP. Allied Waste Services was chosen as the top ranked proposer. WHEREAS, on October 10, 2011, the City Council authorized staff to negotiate a draft contract with Allied Waste Services for City-Wide Residential Trash Collection (hereinafter “Contract”). WHEREAS, on November 28, 2011, the City Council authorized final negotiations and execution of the Contract between the City of Maplewood and Allied Waste Services. WHEREAS, Minnesota Statutes, Section 115A.94, Subdivision 4(e), requires that the city make specific findings that describe in detail the procedures it used to plan and to attempt implementation of organized collection through an arrangement with collectors who expressed interest; and evaluate the proposed organized collection method based on standards including: achieving the stated organized collection goals of the city; minimizing displacement of collectors; ensuring participation of all interested parties in the decision-making process; and maximizing efficiency in solid waste collection. WHEREAS, the City Council adopts the staff report dated December 6, 2011, and titled “Trash Collection System Analysis – Adopt Findings of Facts about the City’s Trash Collection System” in its entirety regarding the detailed process undertaken in the trash collection system analysis.
WHEREAS, the City Council makes the following findings of fact regarding the City’s organized trash collection system: The single-hauler Contract with Allied Waste Services will achieve the city’s stated organized collection goals and provide the following benefits to the City: Increased efficiency enabling a lower cost per household Decreased impacts from truck traffic Decreased fuel consumption Ability to standardize service (e.g., automated collection with standard carts) Makes public education simpler Ability to provide access to special service needs at known, controlled costs Improved control over residents actually using garbage service Ability to set specifications on the size and quality of trucks used Ability to competitively bid service on a regular basis helping promote lower costs Builds on the strengths of both the government and private sectors through a contract Positive, working partnership approach can provide very high quality services Volume-based pricing (i.e., “Pay As You Throw”) to achieve waste abatement goals
NOW THEREFORE BE IT RESOLVED, the City Council adopts the above-mentioned findings of fact and the detailed process as outlined in the December 6, 2011, staff report and hereby authorizes staff to draft a solid waste management ordinance based on the Allied Waste Services Contract and engage in organized city-wide residential trash collection with Allied Waste Services for that service.
Adopted this _______ day of December, 2011.
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