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HomeMy WebLinkAboutIR 10611 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10611 � o To the Mayor and Members of the City Council June 22, 2021 A Page 1 of 2 VA SUBJECT: UPDATE ON RESIDENTIAL SOLID WASTE COLLECTION yez3 SERVICE DELIVERY/CONTRACT NEGOTIATIONS Service Delivery Contract The City's current residential collections of weekly garbage, recycling and yard waste, and once a month bulk waste to more than 242,000 service units is currently provided by Waste Management and their MWBE sub contractor Knight Waste Services. As a part of the City's Pay as You Throw(PAYT) Program established in 2003, residents pay a monthly solid waste rate associated with the size of their weekly garbage cart(the more garbage generated the more they pay)-currently $12.50 for 32 gallons, $17.50 for 64 gallons or$22.75 for a 96 gallons. After completing a competitive procurement process, the City awarded the initial City Secretary Contract No. 28358 in 2003 for ten (10) years (April 1, 2003 to March 31, 2013), including three (3) ten (10) year renewal options. The first extension(28358-E1)was executed in 2013 and is set to expire in March 2023,unless the City would advance executing the available second extension. Comprehensive Review/Contract Negotiations Over the past nine (9)months, the City Manager's Office has worked with the Code Enforcement/Solid Waste Division and its consultant, Burns and McDonnell, to complete a comprehensive review of the current residential waste services contract. The review included creating an internal Solid Waste Task Force (SWTF) that included representatives from ransportation& Public Works, Law, Property Management, Planning & Data Analytics, Business Diversity, Economic Development and Finance. In addition to the residential collections contract, the SWTF also reviewed the additional supplemental service agreements for recycling processing, cart purchases &maintenance,mulch-compost processing and Drop- Off Station hauling. Upon completing the review, the SWTF identified potential benefits of advancing a competitive procurement process and several key contractual service standards that should be included in the scope of services, if the City determines it would be in the community's best interest. However, the determination to advance a competitive procurement process will depend on the final results of the current contract renewal discussions with Waste Management. In late April, the City and Waste Management agreed to complete the contract renewal discussion within a strategic method of holding these sessions within a dedicated 60 day period. The initial meeting was held on May 20, 2021 and included sharing the City's strategic goal and guiding principles toward the expected results of the contract renewal. Strategic To provide the best service at the best value for Fort Worth residents, at prices and Goal: service-levels that are competitive with like-sized markets. Continue to keep Fort Worth a clean and attractive City Decrease collection service costs Guiding Preserve life at the landfill and landfill diversion Principles: Improve brush and bulky waste services Maximize contracting opportunities Follow business equity ordinance guidelines Continue to keep Fort Worth a clean and attractive City These meetings should be concluded in July to support the City's next steps. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10611 � o To the Mayor and Members of the City Council June 22, 2021 A Page 2 of 2 VA SUBJECT: UPDATE ON RESIDENTIAL SOLID WASTE COLLECTION yez3 SERVICE DELIVERY/CONTRACT NEGOTIATIONS Staff Recommendations Based on the SWTF's comprehensive review and recommendations, and completing Waste Management's contract renewal discussion, staff anticipates updating City Council in August. In addition, staff expects to recommend either renewing the second extension with Waste Management or advancing the competitive procurement process beginning as early as September. Due to the size and complexity of the residential collection services and supplemental services, the City needs to allow twelve (12) to fourteen (14)months in advance of potentially changing contracted vendors for these services beginning in April 2023. Therefore, the competitive procurement process would need to be expedited and completed between September, 2021 and March 2022 to minimize transition challenges. For questions regarding this information, please contact Valerie Washington, Assistant City Manager at 817-391-6192. David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS