Item Coversheet



Staff:
Agenda:
Tim Gramling - Public Works Director
12/1/2014

AGENDA REPORT
Cape Girardeau City Council

14-271



SUBJECT
Agreement for Solid Waste Services with Republic Services (dba CWI of Missouri)

EXECUTIVE SUMMARY

This is an Agreement with Republic Services for Solid Waste Services that includes hauling solid waste from the City's Transfer Station.and disposing of it in their state approved landfill at Dexter, MO. The current agreement with IESI expires December 15, 2014 and this proposed agreement with Republic would begin December 15, 2014.

BACKGROUND/DISCUSSION
A request for proposals for Solid Waste Services was advertised on August 6, 2014 and proposals were received on October 6, 2014.  Republic Services was chosen from the fours proposals submitted.  This agreement is a result of the negotiations between the City and Republic Services based on their submitted proposal.  The agreement establishes the hauling and transportation rates as well as the conditions for providing those services for the City.  The agreement also sets out the terms of a future arrangement that will allow the City to pursue the construction of a new City owned Solid Waste Multi-Use Facility that will be funded through additional revenues produced as a result of this agreement with Republic.  Negotiations continue for the construction of a new facility. If a favorable arrangement is reached an agreement for the construction of the new facility will be brought to Council at that time for approval.  If a favorable arrangement is not reached an alternative agreement for the solid waste services provided by the agreement being approved at this time may be brought to Council at a later date.

FINANCIAL IMPACT
The hauling transportation and hauling rates for the next five years are established in this agreement.  The rate for the first year of the agreement beginning on December 15, 2014, is less than the current rate being paid by the City.  Therefore there will be a savings for the remainder of the current 2014-2015 budget year for transportation and hauling solid waste from the City's existing Transfer Station. In addition, a future goal of this agreement is for revenue to be generated to cover the bond payments for the construction of a new facility without having to raise the Solid Waste users fees.  The level of investment the City will need to provide toward a portion of the construction of this City owned and operated facility is still being determined.

STAFF RECOMMENDATION
It is recommended the City Council approve a resolution authorizing the City Manger to execute the agreement and all agreement documents as attached.

ATTACHMENTS:
Name:Description:
CWI_Solid_Waste_Service_2014.docCWI - Solid Waste Resolution
Solid_Waste_Servcies_Agreement_11_24_2014.pdfSolid Waste Services Agreement