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HomeMy WebLinkAbout2009-09-30 Special MinutesMINUTES OF THE SEPTEMBER 30, 2009, SPECIAL MEETING OF THE BOARD OF TRUSTEES RICHARD T. FLICKINGER MUNICIPAL CENTER — TRUSTEES' CONFERENCE ROOM 6101 CAPULINA AVENUE MORTON GROVE, ILLINOIS 60053 Pursuant to proper notice in accordance with the Open Meetings Act, the special meeting was called to order at 7:00 pm by Mayor Daniel J. Staackmann who led the assemblage in the pledge of allegiance. Clerk Kalogerakos called the roll. In attendance were: Elected Officials: President Daniel Staackmann, Trustees Dan DiMaria, Larry Gomberg, William Great, Sheldon Marcus, John Thill, and Maria Toth, and Village Clerk Tony Kalogerakos Village Staff: Village Administrator Joseph F. Wade, Corporation Counsel Teresa Hoffman Liston, Fire Chief Tom Friel, and Public Works Director Andy DeMonte Also Present: Solid Waste Agency of Northern Cook County Director Brooke Beal, numerous residents and members of the press Mayor Staackmann stated the purpose of this evening's meeting was to provide an overview of the Village's Solid Waste Program. He noted the Village of Morton Grove operates on facts and not conjecture, and the Village's current garbage contract was subject to competitive bidding and subsequently given an extension for logical reasons. The Village has one of the best garbage contracts around which results in a cleaner Village, better rodent control, and increased recycling. The last contract extension, the Village negotiated and saved taxpayers hundreds of thousands of dollars. Mayor Staackmann noted the Village is going out to bid for a new solid waste contract. No one company is guaranteed to win this contract and all bidding will be in accordance with law. The Village's main goal is to have a fair distribution of cost and retain the service level the Village currently enjoys including leaf pick -up, recycling, and weekly garbage pick -up. Mr. Wade then provided an overview of the Village's current solid waste services. He noted under its current contract, the Village and its solid waste provider currently pick -up 1,500 tons of leaves each year which is important to the aesthetics of the community. Mr. Wade then introduced Brooke Beal, the Director of the Solid Waste Agency of Northern Cook County ( SWANCC). He explained SWANCC is a national leader of intergovernmental agencies for solid waste collection and management. SWANCC was formed over 20 years old at a time when Villages were facing possible shortages of landfills and transfer stations. Mr. Beal stated the purpose of SWANCC is to help and assist communities like Morton Grove acquire the best solid waste services at the best possible price. Mr. Beal then reviewed the terms of the Village's current contract which he said were quite favorable. They included weekly unlimited pick -up, at no extra charge, the use of toters, free bulk item pick -up, white goods pick -up at a cost of $25, and weekly sticker program, and a fall leaf pick- up built into the base price. Mr. Beal noted the Village's current hauler bills the residents and the Village on a quarterly basis. Currently, the fee for residents is $10.40 per month for a single family home with the Village paying $2.45. The multi - family unit charge is $7.10 per month. The current disposal fee is $5.00 per month which is also paid by the municipality. This amount is reduced by the Village's recycling income at the rate of approximately $.60 per month per household for a total net cost for disposal of $4.40 per household per month. The Village's current contract expires in April 2010. The Village's current cost for solid waste pick -up is $724,000. Mr. Beal stated he is currently working with staff to develop a Request for Proposal (RFP) for the 2010 contract. As part of this process, the Village will look at keeping its current level of service unchanged. It will analyze its leaf pick -up option and look to reduce disposal costs. Mr. Beal stated the timeline included in the RFP is to have it distributed in October 2009 with responses due in November 2009, and staff recommendations to be completed by December 2009. Mr. Beal then provided an overview of a Commercial Solid Waste Franchise. Under the current system, individual businesses can contract with any licensed waste firm. Prices are negotiable and most businesses pay fuel and other surcharges which amount to 10% to 15% of the contract. Service issues between the businesses and the solid waste providers are handled independent of the Village. The results of this system are that haulers are not uniformly charged for services, often times pick -ups are missed and containers are overflowing, recycling services are either not offered or are too costly and the haulers often have hidden extra fees for recycling and fueling. Under a franchise system, the costs will be known without any hidden extras. A recycling program will be established and encouraged. The Village's contract will provide for liquidated damages for violations of ordinances, missed pick -ups, and strike protection. The franchise agreement will guarantee no business will see an increased cost from the transition for a fixed period of time. Another benefit of a franchise system is there will be less trucks on the road resulting in reduced wear and tear on the streets. Mr. Beal stated currently eight S WANCC communities out of 23 have commercial franchises. Within the Chicago Metropolitan Area, 20 communities currently have commercial franchises. Of neighboring communities that have instituted commercial franchises, the Village of Highland Park reported 82% of its businesses have realized reduced costs. Niles reports 88% of their businesses have realized reduced costs, Hoffman Estates 89 %, Mt. Prospect 95 %, and Evanston 95% for a total average of businesses reporting reduced costs of 90 %. Mr. Beal stated there are arguments against franchises. One is that it eliminates competition, however, Mr. Beal stated franchises are selected through a very competitive bidding process and in fact competition can be intensified. Another argument is that businesses are not uniform and often require specialized services. Mr. Beal stated the franchise agreement will provide options for different types and sizes of businesses with a flexibility for recycling. Another argument is a franchises stops innovation. However, Mr. Beal stated residential franchises have been in existence for over 50 years and there have been substantial innovations including single stream recycling, automation, and the use of toters. Mayor Staackmann then asked if special provisions can be made for large industries and businesses with nationwide contracts. Mr. Beal stated the agreement can be customized to take that into consideration. Mayor Staackmaim also asked if businesses could share dumpsters resulting in a lower fee. Mr. Beal stated that is certainly possible. Trustee Toth asked for more information about basic recycling. Mr. Beal stated the franchise agreement could be tailored to the needs and wishes of the Village. Some communities provide all recycling free. Some communities provide basic recycling free with a $10 fee for other recycling. Mayor Staackmatm then asked Mr. Wade to review the Village's next steps and processes. Mr. Wade stated staff will draft an RFP to cover all current services. The elected officials and staff will work with the Ad Hoc Committee to insure all concerns are taken into account. There will be full transparency in the review of all bids that come back and the Village will work to obtain the best possible price. Mr. Wade stated optimally the Village was looking for a seamless transition for its next contract. Mayor Staackmann then asked for comments from the audience A representative from a private firm asked if roll -off containers would be part of the commercial franchise agreement. Mr. Wade stated that was subject to review and possibly could be considered. The business owner stated small businesses that offer roll -off services can not compete for franchise agreement. He also advised ten small roll -off container companies have filed a lawsuit in federal court that remains pending. He stated while they cannot compete on price, the smaller companies give quicker and better services. Trustee Great asked if the Village could survey some of the local businesses and Mr. Wade stated he planned to do so as part of the process. One resident asked if Groot had already been selected by SWANCC. Mr. Beal stated Groot only manages SWANCC's transfer station. Mr. Beal works for the municipalities and SWANCC and not for Groot or any hauler. SWANCC is a non- taxing governmental entity. It provides solid waste and recycling programs. Last year it turned back a profit to its members, especially for recycling. A representative of the Construction Material Recycling Programs for Illinois asked the Board to exclude construction recycling materials from its franchise agreement. She stated this is a specialized product and a franchise agreement would have a negative impact on recycling of construction materials. Construction material recycling differs from regular commercial solid waste. Another owner of an independent hauler asked the Board to consider that small companies had families to feed. There being no further business, Trustee Di Maria moved to adjoum to Special Meeting. The motion was seconded by Trustee toth and approved unanimously pursuant to a voice vote at 7:50 pm. f f Minutes by: Tony S. Kalogerakos Special meeting minutes.09 -30 -09