1. Organized CollectionCITY OF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 a FAX (612) 937 -5739
TO: Mayor and City Council
FROM: Bob Generous, Planner II
DATE: June 1, 1994
SUBJ: Chanhassen Organized Collection Study
Phase H Status - Interim Recommendations
BACKGROUND
Activities in the Phase H Chanhassen Organized Collection Study have followed the Work
Plan/Scope of Services approved by the City .Councii. ; A draft contract for service has been
prepared, which incorporates the Organized,Collection Study objectives, as well as many of
the directives of the Study Committee and City Council.
The Study Committee met three times to review the proposed contract. The Committee has
reached consensus on the basic concepts of the contract. committee meetings served as a
point of discussion and debate with the haulers for the basic elements of the contract. Several
of the haulers also submitted written comments to the project consultant for consideration.
There are many details in the contract in which no consensus was reached.
The Study Committee has embraced the conceptual elements of the contract and
acknowledged that details of a contract are subject to > a negotiation process with the haulers.
The Study Committee has recommended the City Council accept the draft contract for review
and authorize negotiation of:;a contract for service with existing haulers.
It is important to note that while the haulers have generally agreed on the basic elements of
the contract, there are several items of concerk and ` no consensus on many of the details of
the contract. Concerns have been expressed a40' the award of new accounts on a
performance basis. The haulers believe this element is entirely subjective and will be difficult
for the city to administer. There has been concern about the city's right to extend the option
for a two year contract term. Concern has been expressed about establishing the hauler
account verification as of January 1, 1994, rather than a future date. Haulers have also
questioned the city's need for reporting requirements.
MEMORANDUM
Chanhassen Organized Collection Study
Phase II Status - Interim Recommendations
June 1, 1994
Page 2
Members of the Recycling Committee who have attended the Organized Collection Study
Committee meetings have expressed a desire to get back to working on recycling issues.
They have suggested that if the city still needs to keep the Organized Collection Study
Committee that the City Council appoint only those individuals who are interested in
continuing on the committee rather than the entire Recycling Committee.
It is also fair to point out that the haulers have expressed concern/frustration over the low
attendance of committee members during the contract review process. The haulers questioned
whether the proposed contract is truly representative of or a reflection of the committee. Four
of the haulers Aagard West, Admiral, Chaska and Woodlake have attended the contract
review meetings. They have expressed interest in the consortium approach to collection in
lieu of a competitive bid process.
The haulers also expressed concern that the City Council has not responded to the haulers'
alternative collection method, presented to the city last fall. The alternative was prepared in
response to the Council's challenge to the haulers to offer an alternative to organized
collection. The haulers alternative is enclosed with this packet. It may be appropriate for the
City Council to make a response or take official action on the haulers' alternative.
RECOMMENDATIONS
The project consultant and staff feel that the committee has completed its role in the contract
review process. The Council has a few options on how to proceed from this point.
It is recommended that the City Council review the basic elements of the contract for
consistency with the Organized Collection Study Objectives and Council directives. If the
Council concurs with conceptual elements as a framework for the contract, then authorization
to negotiate a contract with existing haulers would be appropriate. It is recommended that the
negotiating team for the city include staff, the city attorney, and the project consultant. A
negotiated contract would be presented to the Study Committee and City Council for future
review.
A second approach would be if a negotiated contract with existing haulers is not found to be
acceptable to the City Council, then a contract for competitive bid may be prepared and the
city may prepare a request for proposal.
Finally, it is recommended that City Council respond to the alternative collection method
proposal prepared by the haulers. Specifically, Council should provide feedback about the
sufficiency of the proposal as regards the concerns and issues contained in the Organized
Collection Study Report in addition to other concerns the Council may have.
Chanhassen Organized Collection Study
Phase II Status - Interim Recommendations ,
June 1, 1994
Page 3
ATTACHMENTS:
1. Contract Outline
2. Haulers' Alternative Proposal
3. Draft Solid Waste Collection Contract
4. Review of "Draft Report Comparative Economic Analysis of MSW and Recycling
Collection in the Twin Cities Metropolitan Area"
c: Organized Collection Study Committee
Chanhassen Collection Contract Outline
IA Consortium form of organized collection
- Existing haulers form a corporation - "the
contractor
IC Four primary collection components:
- Solid Waste
- Recyclables
- Yardwaste
- Bulk items
IE 3 year term ; 2 year renewal option
IF Contractor will establish initial districts, based upon
proportion of total accounts, subject to city approval
IF Annual adjustments for growth:
- Minimum 50% prorata distribution of new households
- Maximum 50% performance based distribution of new
households
II Solid wast
hauler
- 32
- 32
- 64
- 96
e: voles
gallon
gallon
gallon
gallon
ne based collection - day certain /one
bi- weekly
weekly
weekly
weekly
IIG Optional solid waste services
- Door step collection
- Wheeled carts
- Solid waste overage fee
- Curbside yardwaste (except seasonal collection)
- Appliances
- Bulk items
III Recyclable Collection - same day /one hauler
- Newsprint
- Corrugated cardboard
- Mixed paper, mail
- Magazines
- Glass containers
- Metal containers
- Plastic containers
IV Yardwaste Collection - same day /one hauler
- Spring curbside - 2 weeks
- Fall curbside - 2 weeks
- Winter curbside - 1 week
- Balance of curbside is an optional (fee) service
V Bulk Item Collection - not day certain
- Optional (fee) service; haulers bill but may
subcontract
- Household goods
- Construction debris
- Appliances
VI Performance Standards
- Missed stop
- Contractor billing
- Vacation credit
- Personnel requirements
- Equipment requirements
- Performance bond
- Insurance
- Performance evaluation criteria /review process
- Termination
CHANHAS Etl
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Npv4mber 24, 1993
Tp the Mayor and the City Council for the
4ty of Chanhassen
FPur of the six residential garbage haulers have met twice at
CXty Hall, to discuss oUr current relationship with th
a e G
r sidenta, We feel that this relat�tQnship hay with h
versarial tones and this is not our intent. All of the
4 nt to work with the City in addressing their concerns on
8te collection issues.
T have identified possible poi hta of discussio a d ag sone� of the City's aoncOrns and we have included that
W w�4uld also be open to discussing other options as they
w 6 � ld hope that this would be a r6tuxn to a health
C cp�rativt� relationship between the City and Your solid wash
s rve providers.
Asgard We
Admixal Waste
Chaska'fanitation
Woodlake Sanitation
FPOM CITY OF CHANHASSEFa
11.2.199.', 12:35
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Hauler's Proposal to the City of Chanhassen
OVR�VI[ W
In "an 'effort to find workable solutions for the City of Chanhassen, its
residents, land the current licensed haulers, two hauler work sessions have
t been h ldiat city hall with oversight provided 'by city staff. These meetings
were gitteAded by four of the .six residential haulers: Woodlake, Chaska
Sanita oni Admiral Waste, and Aagard West. We have all agreed to the
follow g !proposed actions.
11,ENT7 HIGH RISK ROADS
Di ect your public works department to provide all licensed haulers with
a list f s�ecifie streets that are at high risk for damage once a year. All
haule will use only small collection vehicles (5 ton - per axle) on these few
Streets t�1 prtir,o „ne« !
YARV WIA M C1LLECTION
Si ce'the colldction of yard waste requires a third truck b all the
haule , recommend that the city look at option's to d Y
P dea with this. Some
sugges ions brought out at our work sessions include: A paper bag system
manda ed 1by the city, increased accessibility to the city's compost site, a
spring Ian fall collection sponsored by the city and all the haulers, city
imposed 1 mits on when yard waste co be collected, and increased city
efforts iat �ducation and compost bin distribution.
DIST IClTS
Al the haulers to provide a districting plan for approval that would
ensure'no had service more than one day in the week.
SPRIrI POAD P OS T INGS
Li it `residential collections during spring road postings to small {5 ton
per ax e) , iollection vehicles on residential streets, Such a plan would requ r e
the ci to provide several safe areas where haulers could transfer waste irjto
larger of t ction vehicles. We would work with the city to implement this
provis on , quickly as possible.
Tom �ol
i
Gary Lano
Nancy Lee
Chris Boatwright
Woo4ake Sanitation
.
Chaska Son
anitati
Patrick plood
Admiral Waste
A r
aga d West
D�aC�
CHANHASSEN SOLID WASTE COLLECTION CONTRACT
THIS CONTRACT made and entered into this day of ' 1994,
by and between the City of Chanhassen, a Minnesota municipal corporation, herein referred to as
"City", and , a Minnesota corporation, herein referred to as "the
Contractor ".
L General - Collection Service
A. Organization The Contractor is composed of shareholders who are independent
companies engaged in the business of solid waste collection. The initial
organization shall consist of the following shareholders:
• Aagard west, Inc.
• Admiral Waste Management, Inc.
• Chaska Sanitation, Inc.
• Quality Waste Control, Inc.
• Waste Management- Savage
• Wood Lake Sanitary Service, Inc.
B. Independent Contractor The contractor is declared to be an independent
contractor, and nothing in this Contract shall be constructed to create the
relationship of employer and employee between the City and the Contractor or its
agents, or make the Contractor, its agents, or employees, subject to City
employment requirements or benefits.
C. General Description The Contractor shall perform waste management services
from residential dwellings consisting of four units or less, in the City of
Chanhassen, according to the terms and conditions of this contract. Waste
management services include five basic collection categories:
1.
Solid Waste Collection.
2.
Recyclables Collection.
3.
Yard Waste Collection.
4.
Bulk Item Collection.
-5
SpeeialGelleedem.
D. Legal Compliance.
1. Governing Law. This Contract is governed in all respects by the laws of
the State of Minnesota, and all obligations are enforceable in accordance
therewith; and the Contractor, where required by the City or other
government agencies, must obtain all licenses or permits to transact a solid
waste collection business in the City of Chanhassen.
2. Health Regulations and Ordinances. The Contractor shall acquaint itself
with all pertinent City Ordinances and shall comply with all health
regulations and Ordinances of the City of Chanhassen, the counties of
Carver and Hennepin, and the State of Minnesota in effect at this time or
hereafter adopted.
RSC 4/27/94 Contract
3. Contractor's Examination.
a. The Contractor shall make its own examination, investigation, and
research regarding the proper method of doing the work, and all
conditions affecting the work to be done and the labor, equipment
and materials needed thereon, and the quantity of work to be
performed
b. The Contractor agrees that it has satisfied itself by its own
investigation and research regarding all such conditions, and that
its conclusion to enter into the proposed contract is based upon
such investigation and research
C. The Contractor shall make no claim against the City because of
any of the estimates, statements, or interpretations made by any
official, officer, or agent of the City that may prove to be in any
respect erroneous.
d. The Contractor so assumes the risk of all conditions, foreseen and
unforeseen and agrees to complete the work without additional
compensation under whatever circumstances which may develop
other than as herein provided.
4. Obli ation. The Contractor shall supply all labor, material, and equipment
necessary for carrying out this Contract.
E. Term. The term of this Contract shall be three (3) years and shall be in full force
and effect for the period beginning ,1994 and ending
, 1997.
1. Extension. The City may, at its option, extend this contract for an
additional two (2) year term.
F. Districts.
1. Establishment. The City Contractor will establish districts for the
Contractor to operate within. Contract shareholders will operate
exclusively within the districts for residential collection service. Initial
districts shall be based upon the representative share of residential
collection accounts by each shareholder as of January 1, 1994. District
boundaries and collection days are identified on Attachment
2. Adjustment. Shareholders' districts will be reviewed annually and may be
adjusted by the Contractor to reflect household growth. Adjustments to
Shareholders' districts, due to new household accounts, shall be based
upon the following criteria:
a. At least fifty (50) percent of the annual household growth will be
apportioned pro rata to each Shareholder, provided the terms and
conditions of this contract have been met by each Shareholder.
RSC 4/27/94 Contract
b. The City may award a maximum of fifty (50) percent of the annual
household growth to Shareholders on the basis of performance.
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C.
a. Vehicle driver safety.
b. Vehicle inspection /safes equipment.
c. Weight restriction adherence.
d. Reporting accuracy and timeliness.
2. Errant or unintentional contract violations-(Those violations
in which the Shareholder unknowingly or accidentally
violated the provisions of this Contract).
a. Vehicle driver safety.
b. Vehicle inppection /safety equipment.
c. Missed collection stops.
if Vehicle weight restriction adherence.
e. RevortinLy accuracy and timeliness.
f. Litter containment.
d. The award of accounts is not automatic; rather, it is intended to
serve as an incentive for exemplary service and contract
conformance. The award of accounts shall be made by the City
Council and based upon the review of information assembled by
City staff.
G. Day - Certain Collection. Day - Certain Collection is a City - approved plan for
weekly Collection Services by an established day - certain schedule. This schedule
requires that a district must be collected on the same day of each week and is
based on a five (5) day, :Monday through Friday, working week.
H. Collection Days. The Contractor shall provide Day - Certain Collection for solid
waste, recyclables and yard waste according to the district boundaries and
collection days identified on Attachment
1. Adjustment. The Contractor may request a change in the pickup schedule
by requesting such change in writing to the City and affected residents at
RSC 4/27/94 Contract
The criteria to award or withhold new household accounts to
Shareholders shall be based upon the performance evaluation
criteria contained in Section VI.P. of this Contract. The ranking or
1. Blatant or intentional contract violations.(!bose violations
in which the Shareholder knowingly and purposefully
violated provisions of this Contract)
least sixty (60) days from the proposed date the requested change is to
take affect. A change bp.effected only upon written authorization
from the City. The City is under no obligation to approve any
adjustments.
2. Notification. The Contractor shall bear all costs involved in notifying .
residents of approved schedule changes.
3. Exceptions. The y Exceptions to "Day - Certain" plan include Bulk Item
collection and shall be during those weeks in which legal holidays occur
or in the event of a weather emergency, "Act of God," construction delay,
er other uncontrollable interruption of service.
I. Holidays. The Contractor will observe all legal holidays on which their offices
and operations will be closed. The legal holidays are:
1.
New Year's Day (January 1)
2.
Memorial Day
3.
Independence Day (July 4)
4.
Labor Day
5.
Thanksgiving Day
6.
Christmas Day (December 25)
When holidays fall on a weekday, the collection for each day of that week after
the holiday shall be made on (1) day later.
L Hours of Service. The Contractor shall perform all Collection Services between
the hours of 7:00 a.m. and 5:00 p.m., except when an emergency exists, at which
time the Contractor shall notify the City of such emergency and request an
extension of time to complete collection. The Contractor may perform collection
services on Saturday when a holiday falls on a weekday.
K. Location. Residents shall have, as required by City ordinance, their collection
receptacles located at the boulevard adjoining the curb at or before 7:00 a.m. on
the designed day of collection.
1. Exception. Door Step Service will be provided by the Contractor at the
direction of the City for disabled customers, or those customers who have
elected to utilize door step service as an option.
L. - Receptacles Required. All customers will be required to keep solid waste in
watertight, nen ilamm receptacles with tight fitffiig lids, designed for solid
waste storage Recyclable materials shall be placed in recycling bins approved by
the City. Leaves, grass and garden waste, shall be placed in bags approved by the
City. Trimmings, brush, and branches shall be tied in bundles.
1. Exceptions.
a. Bulk items are not required to be placed in receptacles.
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RSC 4/27/94 Contract
H. Solid Waste Collection Service
A. Description. Solid Waste Collection Service shall include the collection and
transportation oh
1. Garbage. Garbage is organic waste, including discarded material resulting
from the handling, processing, storage, preparation, serving, and
consumption of food.
2. Refuse. Refuse is putrescible and non - putrescible solid waste from
residences, including garbage and rubbish, and specifically excluding
compost, recyclables and toxic and hazardous waste. Refuse further
excludes industrial, commercial, agricultural, and construction garbage or
rubbish and wastes.
3. Rubbish. Rubbish is inorganic solid waste, including ashes, consisting of
both combustible and noncombustible waste, such as wood, bedding,
crockery, and other non - reusable waste. Rubbish also includes non-
recyclable types of glass, paper products, metals, plastics and mixed
materials.
B. Exclusions. Solid Waste Collection Service shall not include the collection of:
1. Toxic and Hazardous Wastes.
2. Problem materials such as batteries, tires, construction material, motor
oils, and paint in liquid form.
3. Bulk items and Appliances.
4. Yard waste, limbs, brush, and other items.
5. Recyclables.
6. Animal waste.
7. Solid waste materials resulting from industrial, commercial and
agricultural operations, and from community activities.
8. Earthen fill, boulders, rock, and other materials normally handled in
construction operations, solids or dissolved material in domestic sewage or
other significant pollutants in waste water effluent, dissolved materials in
irrigation return flows, or other common water pollutants.
C . Title. Title to all solid waste collected shall remain vested in the Contractor until
delivered to a disposal facility.
D. Volume Based Service. "Volume- based" solid waste collection means the
maximum limit of solid waste a dwelling unit is permitted to dispose under the
basic collection structure, selected by each household. With exception to bi-
weekly service, all volume levels receive weekly collection service. The fee
structure for basic service levels is identified in Attachment
5
RSC 4/27/94 Contract
4
1. 32 gallon bi- weekly service (l , can)
2. 32 -gallon service (1 can)
3. 64 -gallon service (2 cans)
4. 96 -gallon service (3 cans)
E. Service Level Overage. It is anticipated and customary for occasional volume
service level overages to occur. Such overages may be balanced by regular
underfilling of containers, uncredited vacations, etc. The City desires to create an
equitable system of volume based service to encourage waste abatement, allow
flexibility and establish appropriate fee structures. Shareholders will exercise
discretion and tolerance for occasional overages by customers ersll-
er overages in excess of the
maximum service level volume allewed eaeh menth which are billed to the
customer shall be according to the rate schedule included on Attachment
F. Rate Structure. The schedule of rates is included on Attachment
G. Optional Service Levels. The Contractor will provide the following additional
optional collection services, when requested by the customer. The fees for
optional services are included on Attachment
1. Door Step Collection
2. Wheeled carts (60-64 gallon, 90 -96 gallon).
3. Solid Waste Overage.
4. Curbside Yard waste Collection.
5. Appliance Collection.
6. Bulk Item Collection.
H. Disposal. All solid waste collected in the City must- may not be disposed of in
violation of preperly-at a Minnesota Pollution Control Agency pemaitted an
.. te management faeiH"- les.
I. Reporting, Shareholders shall notify the City in writing on a form provided or
approved by Carver County by the fifteenth of the month, the monthly or
quarterly reporting internal required by Carver County, of the tonnages of solid
waste collected in the previous period and the disposal location(s), by weight.
Truck weights and gate receipts must be kept on file and available to the City on
request. Melly Rreports shall also indicate the total number of accounts,
service level breakdown, optional services, customer complaints, complaints
resolved and the number of new accounts in the district.
III. Recyclable Collection Service
A. Description. Recyclable Collection Service shall include the curbside collection
of recyclables from residential dwelling units in the City of Chanhassen.
6
RSC 4/27/94 Contract
B. Location. Residential Dwelling Units shall have their recyclables in containers,
approved by the City, located at the boulevard adjoining the curb on or before
7:00 a.m. on the designated day of solid waste collection. Exception to boulevard
placement includes customers with door step solid waste collection.
C.
the recyclable materials become property and
D. Recycling Container. The Contractor shall furnish and deliver recycling
containers to eaeh-new residential households in the City
Qapter 16 ef the en-C l Fade - The recycling container shall be
Title. All recyclable materials placed for collection shall be owned by and be the
responsibility of the occuDarits of the residential vronerties until thev are hmdled
customers for replacement containers, according to the schedule of fees included
on Attachment .(Changes Pending)
E. Source Separation. Recyclable materials shall be prepared by residents as
follows:
1. Newsprint and Supplements. Placed separately in paper bags.
F-
2. Corrugated Cardboard. Flattened, placed in paper bags or tied in bundles,
not exceed 3' X 3'.
3. Mixed RapgrLAtnk Mail/hes. Placed together in paper bags.
4.
4. Magazines. Placed separately in paper bags.
5. Glass Food and Beverage containers. Caps removed, rinsed comingled
colored glass containers (no flat glass or ceramics) placed in paper bags.
6. Metal Food and Beverage Containers. Rinsed, and placed in paper bags.
7. Plastic Food and Beverage Containers with a Neck. Caps removed,
rinsed, flattened and placed in paper bags.
GF. Materials Disposition. The Contractor shall deliver all such recyclables to a
processing site or market. The Contractor shall not landfill, incinerate, or
otherwise dispose of the recyclable materials.
HG. Reporting_ Shareholders shall notify the City in writing, on a form provided or
appro� ved b_y Carver Countv. the fifteenth of eaeh the month after the monthly
or quarterly reporting interval required by Carver County of the tonnages of each
material recycled during the previous m period in conjunction with the
curbside recycling program. Truck weight tickets and market receipts must be on
7
RSC 4/27/94 Contract
responsibility of the Contractor.
permanent file and available to the City on request from the Contractor. Weekly
participation rates in the cu rbside recyclin , program must be included in the
mentMy reports. The proceeds from the sale of the recycling materials collected
in conjunction with the Recycling Collection Service belong to the Contractor.
Iv. Yardwaste Collection Service
A. Definition. Yardwaste means leaves, grass clippings, garden waste, sed
prunings, and branches less than feur-(4) two (2) inches in diameter. Yardwaste
also includes Christmas trees but does not include wired wreaths or other
materials containing metal, ornaments, etc.
B. Description. The Contractor shall provide for curbside collection of yard waste
from residential properties.
1. Spring and Fall Curbside. Contract service shall include curbside
yardwaste collection during the b last two (2) full weeks of Mai A�iil
and during the last two (2) full weeks of October each year.
2. Winter Curbside. Contract service shall include a holiday curbside
yardwaste collection during the second full week of January each year.
Items permitted in the collection include Christmas trees, boughs, wreaths,
and other plant materials, provided no metal, plastic, glass or other non-
biodegradable materials are attached or included.
3. Optional Curbside. Optional service shall include curbside collection of
yardwaste from April 1 to November 30. The contractor shall provide the
optional service at the request of residents and for a fee as outlined in
Attachment of this contract.
C. Placement. Yard waste shall be placed at the boulevard and prepared by residents
as follows:
L Bagged Yardwaste. Leaves, grass, and garden waste must be contained in
bags that are securely closed.
2. Bundled Yardwaste. Bundles of branches and limbs (4-2 -inch maximum
cross - section per limb) up to 18 inches in diameter, four feet (4D long must
be tied securely with twine or string, not wire.
D. Disposal. The Contractor shall not dispose of ell yard waste at an appreved -
Carver Ee in violation of Minnesota Pollution Control Agency eempest
site rules The Contractor shall advise the City in writing of the places of yard
waste disposal and any changes in the places of yard waste disposal.
E. Reporting. Shareholders shall notify the City in writing on a form provided or
approved by the Carver Count by the fifteenth of the eaeh -month after the
monthly or quarterly report ing interval required by Carver Count of the
tonnages of yard waste composted and the number of collections during the
previous newh period in conjunction with the City yard waste collection
program. Truck weight tickets must be on permanent file and available to the
City on request from the Contractor.
RSC 4/27/94 Contract
V. Bulk Item Collection Service
A. Description. Requests for pick-up of additional items shall be made to the
Shareholders. hauler. Shareholders may subcontract the collection of bulk items,
but may not allow third party billings to residents. Charges for pickup of
additional items and for additional service shall be billed by the hauler to the
resident owner at the prices stated in Attachment
B. Household Goods. Household goods are carpeting and padding, mattresses,
chairs, couches, tables, televisions, electronic equipment, and other similar items.
C. ' Construction Debris. Debris includes stone, sod, earth, concrete and building
materials resulting from remodeling of the residence on the property at which
these materials have been placed
D. White Goods. White goods are major appliances including washers and dryers,
dishwashers, hot water heaters, garbage disposals, trash compactors, conventional
ovens, ranges and stoves, air conditioners, refrigerators, freezers, and other
similar items.
E. Special Containers. Shareholders may furnish residents with dumpsters for
construction debris home sale clean up and other single purpose occasions
BF. Disposal. The Contractor shall not dispose deliver -ell bulk items to approved
Garvery-er violation of Minnesota Pollution Control Agency rules
. The Contractors shall advise the City in
writing of the places of bulk item disposal or processing and any changes in the
places of disposal or processing.
FG. Reporting. Shareholders shall notify the City in writing on a form provided or
approved by Carver County, by the fifteenth ofthe eaeh -month after the monhtly
or quarterly reporting interval required by Carver County of the tonnages and
general description of all bulk items coll ected during the previous month,
including the tonnages of major appliances collected and recycled during the
previous month. Truck weight tickets, market receipts and subcontractor receipts
must be on permanent file and available to the City on,request from the
Contractor.
iI: 'Special Collections
rte..
B.
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RSC 4/27/94 Contract
pm eessed-. k '
VIM. Performance Standards
A. Issuance of Notice. The Contractor shall issue city approved notices to all
homeowners and users of the service whenever solid waste, recyclable, yard
waste and/or bulk item removal is not effected.
1. The notice shall be signed by the employee and given to the user if the
user is present at the residence. If the user is not present, the notice shall
indicate steps taken to notify the user.
2. Said notice shall indicate the reason for the failure to collect the solid
waste, recyclable materials, yard waste material and/or bulk item.
3. Duplicate copies shall be made and fl mailed to the City within
one by 4;30 e the day following its issuance.
B. . Failure to Collect.
In the event that the Contractor shall fail by its own error to make a solid
waste, recyclable, yard waste and /or bulk item major appliance collection
at any particular residence, as required by the contract, the Contractor
shall do so within 24 hours after notification from the City or resident of
the address where such collection was not made.
2. If the Contractor fails by its own error to make a solid waste recyclable,
yard waste, land/or bulk item, collection at any particular residence on
Friday (excluding holiday weeks) and is notified of such a failure by the
City or resident prior to 12 Noon, the Contractor is required to service
such residence before 7:00 p.m. of the same day.
3:
C. Exceptions. For purposes of this Contract, the Contractor shall not be deemed to
be in Default where its inability to perform is the result of conditions beyond the
control of the Contractor, including, but not limited to civil disorder, acts of God,
inclement weather severe enough that trucks cannot make collections, changes in
applicable statutes, regulations, and ordinances; provided, however, that the
Contractor shall exhaust every reasonable remedy to.correct the conditions
resulting in its nonperformance.
D. Payment Method. The Hauler Contractor shall bill and collect monies due from
residents for services rendered, according to the fees outlined in Attachment
E. Vacation Credits. The Contractor shall allow pror credits on customer
F. Dwelling Vacancy There shall be no service collection required or payment due
from vacant dwellings
10
RSC 4/27194 Contract
G. Personnel Requirements.
1. The Contractor shall be required to maintain an office equipped with
telephones and staffed with sufficient personnel to handle complaints,
orders for special service, and/or to receive instructions. The office shall
be staffed from at least 8:00 a.m. to 5:00 p.m., Monday through Friday
(except holidays)_
The Contractor shall maintain a written log of all complaints, the date
thereof and the action taken pursuant thereto or the reason for no action.
A record of all complaints and action taken thereon shall be kept by the
Contractor and reported monthly to the City.
2. There shall be no limitation on the size of the Contractor's collection crew
so long as they are sufficient to fulfill the requirements of the
specifications and contract.
3. Each collection crew shall adhere to all applicable ordinances of the City
and all of those rules, regulations, and conditions for refuse collection as
established by the City.
4. Driver.
a. The driver must have a valid Minnesota Driver's License with all
the necessary endorsements.
b. The driver must adhere to all traffic laws.
5. Driver /Collector.
a. The driver and collector(s) shall at all times have a courteous
attitude toward the general public.
b. The driver and collector(s) shall be of sound character, competent
and sober throughout the entire work day.
e.
d. The driver and collector(s) shall make a concerted effort to have at
all times a presentable appearance.
e. The refuse collector(s) on each crew shall be physically able to
perform their duties and be at least eighteen (18) years old. The
age requirement may be waived for family members of the
corporate owners.
f. The collector(s) shall perform their work in a neat and a quiet
manner and clean up all materials spilled in collection. m}der- my-
e�ane
g. All containers shall be replaced in their proper locations and covers
placed securely back on containers.
11
RSC 4/27/94 Contract
h. Damage to containers or o"r,property shall be avoided.
Containers may not be confiscated no matter how worn or useless
it may be unless requested to do so by the owner. If the container
fails to meet the specifications set by ordinance, it shall be tagged
and the City shall be notified
j. Consumption of any beverages containing alcohol or illegal drugs
is forbidden during or before work hours of any collection day.
k. Before the start of each collection day, personnel shall check to see
that the collection vehicle is equipped with at least one broom and
shovel for use in cleaning up refuse spilled during collection or
hauling.
6. Supervision.
a. A full-time supervisor of collections shall be employed by the
Contractor and shall be the representative of the Contractor under
this Contract. The supervisor shall be on the job during normal
hours of collection operations and shall maintain proper schedules
for collection. The supervisor shall have supervisory duties which
shall include servicing complaints.
b. All services to be performed for the City by the Contractor
Pursuant to the terms of this Contract shall be supervised by such
employee, agent, or officer of the City as the City shall designate.
The designated inspector may have access to all of the Contractor's
Chanhassen records and equipment at reasonable times.
C. Contractor's employees shall report to the City any violations of
the regulations under this contract and the City's solid waste
regulations that they observe during the performance of their work.
H. Non - Discrimination. The provisions of Minn. Stat. Section 181.59 which relates
to civil rights and discrimination shall be considered a part of this contract as if
fully set forth. This Contract may be canceled or terminated by the City, and all
money due or to become due hereunder may be forfeited for the violation of the
terms and conditions of this paragraph.
I. Safe . The Contractor shall provide and maintain all sanitary and safety
accommodations for the use and protection of its employees as may be necessary
to provide for their health and welfare and comply with federal, state, and local
codes and regulations, as well as those of other bodies and tribunals having
jurisdiction.
I Public Construction Project.
1. The City reserves the right to improve any street or alley which may
prevent the Contractor from traveling its accustomed route or routes for
collection. The ` e tr aet - s __ " fhe eit p '- - P -s%A - `- I- H
selufiens. No additional compensation will be made for this interference.
12
RSC 4/27/94 Contract
2. The Contractor shall be obligated to protect all public and private utilities
whether occupying street or public or private property. If such utilities are
damaged by reason of the Contractor's operations, under the contract, it
shall repair or replace same_
K. Equipment.
1. Vehicle Protection. All trucks or motor vehicles used by the Contractor
shall be water -tight so as not to allow the leakage of liquids or refuse
while hauling the same and shall be covered to prevent the scattering of its
contents upon the public streets or private properties in the City. Should
any refuse be dropped or spilled under any circumstance in collecting or
transporting, it shall be immediately cleaned up. A broom and a shovel
shall be carried on each vehicle at all times for this purpose.
2. Cleaning. All vehicles shall be kept in a clean and sanitary condition
3. Painting. The packer body shall be painted and numbered, and shall have
the Contractor's name and telephone number painted in letters of
contrasting color. at l 6, :.. (P) ,,ig ea eaeh side ,.f th
vebiele and the number painted en the rear
4. Maintenance. The trucks shall be maintained in good working order.
They shall be equipped to meet all Federal, State, and Municipal
regulations concerning vehicles used on public roads and maintained to
meet these standards.
5. Vehicle Inspection. All vehicles used in the performance of this contract
shall be made available for inspection b -w +4 �I the City of Chanhassen a�
6. Description of Vehicles. The Contractor shall furnish the City with a
written description of all vehicles and equipment to be used within the
City of Chanhassen and in the performance of this contract and shall
advise the City in writing
of any change therein within one (1) week of the time of making such
change.
7. Sg&ty Equipment. Each collection vehicle shall have a flashing light
warning system, fire extinguisher (CO2 type), first aid kit, twe- safety vests
(high visibility), and proper backup alarms and other devices required b�
law.
L. Performance Bond. Before the Contract shall be valid and binding against the
City, the Contractor shall enter into a performance bond with the City of
13
RSC 4/27/94 Contract
Chanhassen for the use of said City and also for the use of anyone who may
perform or cause to be performed any work -or labor, or furnish or cause to be
furnished any skill, labor, equipment or material in the execution of such contract
which bond shall be signed by the Contractor with a surety company as surety and
shall be in the amount
br :.. u. full feree a �c t 100 f the term e f the tr a and terms prescribed in
Chapter 16 of the Chanhassen City Code
The conditions of which bond shall be that the Contractor shall fully and
faithfully perform all conditions of the contract and these specifications; shall pay
anyone who may perform or cause to be performed any work or labor, or furnish
or cause to be furnished any skill, labor, equipment, or material in the execution
of such contract;. —
fe .
M. Liability Insurance. The Contractor shall, at all times during the term of this
contract, procure and maintain at the Contractor's expense general public liability
insurance. This insurance shall cover claims for bodily injuries, wrongful death,
and property damage occurring as a result of the Contractor's performance of its
duties under this contract. Such insurance shall afford protection to a limit of not
less than Five Hundred Thousand Dollars ($500,000.00) in respect to injuries or
death to a single person, to a limit of not less than One Million Dollars
($1,000,000.00) in respect to any one accident or occurrence, and to a limit of not
less than One Hundred Thousand Dollars ($100,000.00) in respect to property
damage. The City shall be named an additional insured on all such policies of
insurance. Memorandum copies of all such insurance policies shall be delivered
to the City before the commencement date of the term hereof of this contract. All
renewal policies, together with proof of payment of the premiums thereon, shall
be delivered to the City at least thirty (30) days before the expiration date of the
policy then in force together with.a Certificate Of Insurance.
N. Worker's Compensation Insurance. The Contractor shall at all times keep fully
insured, at its own expense, all person's employed by it in connection with the
performance of this Contract as required by the laws of the State of Minnesota
relating to Worker's Compensation Insurance and shall hold the City free and
harmless from all liability from any cause that may arise by reason of injuries to
any employee of the Contractor who may be injured while performing work or
labor necessary to carry out the provisions of the Contract. The Contractor shall
supply to the City memorandum policies upon request of the City.
accounts.
P. Performance Evaluation Criteria
1. Contract Violations - blatant or intentional
2. Contract Violations - en-ant or unintentional
3. Reporting completeness and accuracy
4. Reporting timelines
5. Complaints (verified and unverified)
6. Complaint resolution
7. Vehicle and personnel appearance
Shareholders may
14
RSC 4/27/94 Contract
q,
8.
Vehicle weight restriction adherence
9.
Vehicle inspection comyliance
810.
Personnel disposition
911.
Collection schedule adherence
-1012.
Litter control /container handling
X13.
Safety record
4-214.
Shareholder participation in management
1311
Shareholder cooperation in management
4416.
Shareholder innovations /recommendations for success
14.
City Performance Fevaluation Review PPprocess
The City may utilize a Process to evaluate shareholder performance
including but not limited to the following.
al. Review of reports /complaints
b2. City personnel field observations (aesthetics, appearance,
equipment, litter, safety)
e3. Resident satisfaction surveys, unsolicited comments
d4. Quarterly evaluations to shareholders /City Council
e5. Annual summar evaluations to shareholders /City Council
Q-.R. Termination.
1. If the City determines that tie Ee aeter any one of the Shareholders is in
breach of the agreement, a written notice will be sent to the C-eatraeter
Shareholders allowing 30 days to comply. Failure by the Gent aeter
Shareholders to comply with the agreement by the end of the 30 day
period shall terminate the contract.
2. Upon failure of the Contractor to fulfill any of the provisions of the
contract, the City shall be authorized to hire personnel and equipment, or
City employees and equipment, as deemed necessary to do the work and
the cost of such expenses may be charged to the Contractor, or collected
by recourse against the Contractor's bond or financial. guarantee.
Rte_ Severability. All parts and provisions of this Contract are severable. If any part or
provision of this Contract shall be held invalid, the remainder of this Contract
shall remain in effect.
SST. Disputes. Any disputes or controversies arising out of the interpretation of the
provisions of this Contract shall be submitted to arbitration in accordance with the
provisions of this Contract.
T-.U. Arbitration. In the event of any disagreement when a solution has not been
reached within thirty (30) days subsequent to a formal written request for binding
...r r-- -.r s ---- ....- . t .......,. ,,.............., . ..
arbitration by either party, the dispute or controversy shall be submitted to
arbitration in accordance with the provisions of Chapter 572 of the Minnesota
15
RSC 4127/94 Contract
Statutes. The venue of such arbitration shall be in Carver County, and three
arbitrators shall be appointed- by any Carver, County District Court Judge agreed -
upex by the parties selected by the City.
U. TerminoloQv. The term Contractor and Shareholder shall mean the same and are
used interchangeably, unless otherwise noted.
V--W. Subletting or Assignment of Contract No assignment or subletting of this
contract, all or in part, will be permitted without authorization of the City, exce t
as specifically provided herein. The Contractor alone will be held responsible for
full and faithful performance of the contract. The addition or deletion of any
Shareholder shall be deemed an assignment by Contractor and subject to the
approval conditions for assignments as found in hereof.
1. The Contractor will not make or create, or suffer to be made or created,
any total or partial sale, assignment, lease, or transfer in any other part of
this agreement or any part thereof or any interest therein, without the prior
written approval of the City, which approval will not be unreasonably
withheld. The City shall be entitled to inquire, as to conditions to any
such approval that:
a. Any proposed transferee shall have the qualifications and financial
responsibility, as reasonably determined by the City, necessary and
adequate to fulfill the obligation undertaken in this agreement by
the Contractor;
b. The transfer does not create an anti-trust situation in the local solid
waste hauling industry that is contrary to the public interest of the
residents of Chanhassen;
C. Any proposed transferee shall submit in writing satisfactory to the
City expressly assumes all of the obligations of service under this
agreement and agrees to be subject to all the conditions of same;
d. There shall be submitted to the City for review all documents
involved in affecting such transfer, and if proposed transferee shall
submit to the City for review all bonds, insurance policies and any
and all other documents required by this agreement, and if
approved by the City, its approval shall be indicated to the
proposed transferee in writing.
16
RSC 4/27/94 Contract
LIX. Notice. Except as otherwise herein provided, all notices required to be served by
either party on the other shall be in writing and forwarded by certified mail to the
principal office of the party to which notice is given, as follows:
To the City of Chanhassen:
City of Chanhassen
690 Coulter Drive
P.O. Box 147
Chanhassen, Minnesota
To Contractor:
All notices shall be effective when received.
17
RSC 4/27/94 Contract
IN WITNESS WHEREOF, the City of Chanhassen and
have executed this agreement the day and year first written above.
CONTRACTOR
L
President
CERTIFICATES OF ACKNOWLEDGMENT
STATE OF MINNESOTA
COUNTY OF
On this day of ' 19 before me personally
appeared to be known, who, being duly sworn, did say he is
the president of and acknowledged that he executed
the same as his free act and deed on behalf of said corporation.
STATE OF MINNESOTA
COUNTY OF CARVER
CITY OF CHANHASSEN
By
Mayor
By
City Clerk/Manager
Notary Public
On this day of , 19 before me personally
appeared to be known, who, being duly sworn, did say they are Donald J. Chmiel, Mayor and
Don Ashworth, City Clerk/Manager of the City of Chanhassen did say they are and
acknowledged that they executed the same as their free act and deed on behalf of said municipal
corporation.
Notary Public
18
RSC 4/27/94 Contract
CITY OF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
TO: Mayor
FROM: Bob Generous, Planner 11
DATE: May 26, 1994
SUBJ: Review of Draft Report: "Comparative Economic Analysis of MSW and
Recycling in the Twin Cities Metropolitan Area"
BACKGROUND
The Metropolitan Council has contracted with Gershman, Brickner & Bratton, Inc..(GBB) to
prepare "Comparative Economic Analysis of MSW and Recycling in the Twin Cities
Metropolitan Area" (report) to provide a comparative economic analysis of municipal solid
waste (MSW) and recyclables collection in the region and to develop recommendations for
one or more model programs to increase collection efficiency. Additionally, this report was
to provide base line information on existing MSW and recyclables collection systems and
charges within the metro area.
Minnesota Statutes, Section 115A941 requires cities and towns with populations of 5,000 or
more to ensure that every household and business has solid waste collection service. This
legislation affects approximately 92 percent of the 2.3 million residents in the metro area and
includes the City of Chanhassen. Approximately 1.2 tons of MSW are generated per capita
per year in the region. Residential MSW and recyclables are estimated to account for
approximately 45 percent of the total waste in the region: Commercial wastes account for the
remaining 55 percent of the regional wastes. However, the primary scope of the report was
residential solid waste collection: z
EXISTING CONDITIONS
3
Collection systems in the metro area consist of municipal (approximately 12 percent of the
population) and private service (approximately 88 percent of the population). 58 percent of
the population is served by an open collection system. Forty-two percent of the population is
served by an organized collection system. Minnesota Statutes, section 115A.94 defines
organized collection as "a system for collecting solid waste in which a specified collector, or
MEMORANDUM
Comparative Economic Analysis of MSW ...
May 26, 1994
Page 2
member of an organization of collectors, is authorized to collect from a defined geographical
area or areas some or all of the wastes that is released by generators for collection." The
most common type of organized collection system in the metro area is the single hauler,
single zone. Competitive procurement is less common than a negotiated process in
selecting haulers.
Collection costs, including equipment, labor, fuel, insurance, maintenance, legal, accounting,
taxes, surcharge, license, and other management and administrative fees, account for
approximately 52 percent of the total solid waste system costs in 1991. The report later states
that actual collection costs make up between 44 and 61 percent of the fees charged to
customers and that tipping fees and surcharges account for between 43 and 52 percent of
customer fees.
FEES
The factors effecting collection costs can be broken down into the following six categories:
operating efficiency, level of service, institutional structure (i.e., open versus organized
systems), administrative complexity, transportation distances, and tipping fees. The waste
hauler has control over three of these factors: operating efficiencies, levels of service, and
transportation (unless institutional structures dominate this component). Municipalities have
control over administrative complexity, e.g. fee structure (volume versus weight based or
variable fees), billing responsibilities, and districting. Tipping fees, surcharges and taxes are
generally beyond either the hauler's or municipality's control.
Fees charged to residential customers varied widely throughout the region based on the base
level of service and the type of collection system (open or organized). Below is a summary
of the range of fees within the region.
ORGANIZED SYSTEM
SERVICE
LEVEL
LOW
HIGH
AVERAGE
30 gallon
9.77
16.12
12.12
60 gallon
12.02
16.56
14.78
90 gallon
9.25
19.10
15.69
unlimited
15.80
20.73
19.14
Comparative Economic Analysis of MSW . .
May 26, 1994
Page 3
OPEN
SERVICE
LEVEL
LOW
HIGH
AVERAGE
30 gallon
11.74
16.26
13.72
60 gallon
13.00
19.22
16.08
90 gallon
15.50
23.73
18.25
unlimited
18.60
23.20
20.01
By comparing the two tables, it is apparent that organized collection systems result in lower
customer charges on average at all service levels than an open collection system. This
appears to contradict the arguments of proponents of open systems that the open system free
market forces and natural competition serves to provide lower costs and higher quality
services.
A shortcoming in the report's analysis of the organized collection costs is that all types of
organized collection systems are included and no differentiation has been made between
charges under single -zone, single- hauler systems, multiple -zone, multiple - hauler systems, or
consortium systems. Below, I have attempted to compare types of organized collection fees
within Ramsey County where this differentiation was attempted. The single - hauler long
standing relationship was the only negotiated system used. Unfortunately, there is not
sufficient information to provide a determination or prepare a cost - effectiveness review of a
negotiated consortium system of organized collection.
ORGANIZED COLLECTION AND OPEN SYSTEMS FEES IN RAMSEY COUNTY
RAMSEY
RAMSEY
RAMSEY
RAMSEY
LOS
NEGOTIATED
(long standing)
ORGANIZED
COMP. BID
ORGANIZED
AVERAGE
OPEN
32 gallon
14.05
9.46
11.78
13.3
64 gallon
16.86
11.84
12.89
16.01
96 gallon
18.96
13.71
14.84
18.62
unlimited
20.53
17.46
19.36
19.50
Comparative Economic Analysis of MSW ...
May 26, 1994
Page 4
As can be seen in this table, the organized competitive bid system and the organized average
produce lower customer charges than an open system. However, at least in this instance, a
negotiated fee structure as part of a long standing relationship with an individual hauler
leads to customer charges that are higher than fees in both competitive bid and open
systems. Based on this, a community should be wary of establishing a monopoly type system
of organized collection in their jurisdiction. Additionally, it should be noted that the
competitive bid system produced customer charges, at least in Ramsey County, that are lower
than the regional average for organized collection. This appears to verify an intuitive
assumption that for the lowest customer costs, a competitive bid system is the appropriate
organized collection system to use. "Even if costs are adjusted to account for differences
in services offered (e.g., recycling, yard waste collection, bulky waste pick -up, or special
clean -up services included in the rate) and differences in administrative responsibility
(e.g., does the hauler or the municipality bear the cost/responsibility for billing), the
communities with competitive bid selection processes experience significantly lower per
household costs" (page V -6).
Variable -rate Structures
Variable -rate fees are established on either a volume (32, 64, or 96 gallon) or weight based
system. Due to the ease in administration and minimal recording requirements by collection
clews, the volume based system is the preferred rate structure. However, this type of rate
structure does not seem to be very effective at waste reduction or to provide a correct
measure of collection costs since haulers are generally charged by weight for tipping fees.
Volume based fees encourage volume reduction in waste generators, not necessarily waste
reduction. The differentiation in fees between different volumes does not seem to be
effective in waste reduction. The pricing structure is not significant enough to broadly affect
the waste disposal behaviors of individuals.
The report offers two suggestions for making variable -rate structures effective in altering
waste disposal behavior. The first alternative would subsidize the smallest level of waste
-collection service (e.g., 32 gallon or at a regional average waste generation level) by charging
an artificially high price for the higher levels. The second alternative would charge customers
based on the actual weight of the wastes being discarded. This second alternative would
require extensive modification to the waste collection methods employed by waste haulers and
would likely entail higher costs due to capital costs, crew recording requirements, and
administrative costs.
SOLID WASTE MANAGEMENT COORDINATING BOARD
The Solid Waste Management Coordinating Board has investigated solid waste hauler
licensing requirements in the region. Their investigation shows that there is often duplication
of effort and costs for haulers which drive up consumer costs. The Board also found that
Comparative Economic Analysis of MSW . .
May 26, 1994
Page 5
licensing forms vary from county to county; licensing year time frames vary from county to
county, licensing fees are widely different among counties, licensing insurance requirements
vary from county to county, and licensing administration would need to be altered if a
regionwide coordinated license system were implemented. The Regulatory Committee of the
Board has concluded that counties should consider creating a uniform application form,
licensing year, and administrative process as well as developing a joint powers agreement that
would create one license good throughout the region as a means to create a more efficient
waste collection system.
POLICY ISSUES
Institutional Structure
Based on the issues raised in the draft report, the primary issue which a city must decide as
part of their management of municipal solid waste is whether to use an open collection
system or an organized collection system
Benefits of an open system are:
- Generator choice
- Small haulers can remain competitive and offer limited service area or niche services
- Competition may drive costs down
- Administrative costs for municipalities are minimized, and
- Tradition is not disrupted.
Benefits of an organized collection system are:
- Increased control over the level of service
- Greater control over customer charges
- Increased collection efficiencies
- Ability to influence waste destination and control liability for safe disposal
- Improved neighborhood aesthetics, including the potential for controlling illegal
dumping and decreasing traffic, noise, air pollution, energy consumption, and litter;
and
Comparative Economic Analysis of MSW ...
May 26, 1994
Page 6
- Decreased wear and tear on roads and alleys from heavy collection vehicles.
If left as an open system, then the city could through licensing or ordinance provisions
address some of the issues enumerated in the City of Chanhassen Organized Collection Study:
create zones for day of the week pick -up, provide greater enforcement and therefore potential
costs for overweight vehicles, and encourage and assist neighborhood associations and groups
to contact haulers directly to bid collection in their areas.
If the city decides to organize collection, then it must determine what type of organized
system to use. Alternatives are competitive bid or negotiated systems with either individual
contractors, multiple contractors, or a consortium; single or multiple districts; and contract or
franchise collection systems. The direction currently preferred by the-City of Chanhassen
Organized Collection Study Committee is to implement organized collection through a
negotiated contract with a consortium of the six existing waste haulers in Chanhassen rather
than through a competitive bid process.
There are risks associated with a competitive bid system. Depending on which haulers are
eligible to bid, the community may get a hauler with little knowledge of the community
causing consumer problems as the hauler gains this knowledge. There are administrative
costs that will assumed by the community including developing procurement documents,
review for compatibility with state and local guidelines, legal counsel, pre -bid conferences,
bid evaluation and selection, and contract monitoring. The study estimates that these costs
range from $0.50 to $1.30 per household per year.
If a consortium is used, the local government may wish to establish guidelines to be followed
by the consortium, e.g., limit the number of routes any individual hauler may, develop
uniform level of service standards and costs, or prepare performance standards. But it is
recommended that the consortium use their logistical expertise to develop the routes. This is
the phase that the City of Chanhassen is at with the study committee forwarding to City
Council guidelines for an organized collection system incorporating a consortium of existing
haulers.
STUDY RECOMMENDED MODEL
The draft report recommends that the use of organized collection be promoted throughout the
region due to cost advantages, collection efficiencies, and quality and cost- effectiveness.
Organized collection offers these benefits vis -a -vis an open system:
- Increased local control over the types and quality of collection services
- Provides a mechanism for enforcing mandatory collection and variable -rate pricing
Comparative Economic Analysis of MSW . .
May 26, 1994
Page 7
- Provides a more equitable and consistent system of fees
- Reduces the number of vehicles servicing a community and their accompanying
impacts; and
- Offers a potential strategy for accomplishing designation.
The following approaches are offered as means for implementing organized collection within
the metropolitan area.
Region -wide Organized Collection
In this option, the entire metropolitan area would be organized with multiple contract or
franchise districts. This approach would entail a major alteration in the institutional structure
of solid waste collection in the area and would require a strong implementing agency or
organization that could contract in the behalf of the communities, monitor and enforce
contracts, and maintain the confidence of the member jurisdictions. Such a system would
develop waste collection districts based on a computer model being developed by the
Metropolitan Council establishing waste sheds within the region. Alternately, counties could
establish policies or ordinances within their boundaries requiring organized collection.
Regional Procurement of Collection Services
In this approach, a regional entity would contract on behalf of local governments and provide
staff and resources to conduct procurement, monitor contract performance, and enforce
contract terms. However, under this alternative, the local government could opt out of the
regional program if they could provide a collection program that complied with state statutes
and local ordinances and policies.
Encouragement of Increased Organized Collection
The Metropolitan Council would provide local governments with technical assistance and staff
resources to institute organized collection within their jurisdictions as well as assistance and
education for haulers in organized collection procedures, e.g., preparing bids and requests for
proposals.
Consumer Awareness Campaign
Provide consumers with additional information so that they could make reasonable choices
with full and complete information. One example would be to require bills to be standardized
separating out the various components of collection costs. Haulers could be made to publish
their rates for various service levels so that consumers could more easily compare prices.
Comparative Economic Analysis of MSW ...
May 26, 1994
Page 8
CONCLUSION
Solid waste collection is a very complex and important issue that must be addressed by-local
governments. Its regulation falls under a jurisdiction's responsibility to protect the health,
safety and welfare of its citizens, property owners and businesses and to abate and control
public nuisances. Depending on the desires of a community, solid waste collection can be
handled through either an open or an organized system. Based on the information in the draft
report, the most efficient and cost - effective means for collection is through an organized
system. Further, it appears that a competitive bid process will provide the greatest cost
savings for the individual consumer.
c: Don Ashworth, City Manager