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Home My WebLink About1993.07.06_OPWA AgendaPUBLIC NOTICE OF THE MEETING OF THE OWASSO PUBLIC WORKS AUTHORITY TYPE OF MEETING: Regular DATE: July 6, 1993 TMIE: 7:00 p.m. PLACE: Council Chambers, Owasso Community Center Notice and Agenda filed in the office of the City Clerk and posted on the City Hall bulletin board at 4:00 p.m. on Thursday, July 1, 1993. Marcia Boutwell, City Cler AGENDA 1. Call to Order 2. Flag Salute 3. Roll Call 4. Request Approval of the Minutes of June 15, 1993 Regular Meeting Attachment #4 Owasso Public Works Authority July 6, 1993 Page 2 5. Request Approval of Claims Attachment #5 6. Consideration and Appropriate Action Relating to Resolution #93 -03, a Resolution Establishing Rates for the Collection and Disposal of Refuse from Commercial Establishments. Mr Ray Attachment #6 Staff will recommend Council approval of Resolution #93 -03. 7. Consideration and Appropriate Action Relating to OPWA Resolution #93 -04, a Resolution Requesting Trustee Approval of an Annual Performance Audit of Operations of the Owasso Wastewater Treatment Plant. Mr Ray Attachment #7 Staff has prepared the required performance audit in compliance with EPA regulations and will recommend Trustee adoption of OPWA Resolution #93 -04. 8. Report from OPWA Manager Owasso Public Works Authority July 6, 1993 Page 3 9. Report from OPWA Attorney 10. Unfinished Business 11. New Business 12. Adjournment OWASSO PUBLIC WORKS AUTHORITY MINUTES OF REGULAR MEETING Tuesday, June 15, 1993 The Owasso Public Works Authority met in regular session on Tuesday, June 15, 1993 in the Council Chambers at the Owasso Community Center per the Notice of Public Meeting and Agenda posted on the City Hall bulletin board at 4:00 p.m. on Friday, June 11, 1993. ITEM 1: CALL TO ORDER Chairman Randolph called the meeting to order at 8:05 p.m. ITEM 2: FLAG SALUTE The flag salute was held during the City Council meeting preceding this meeting. ITEM 3: ROLL CALL I' I `Zam Bob Randolph, Chairman John Phillips, Vice Chairman Mary Lou Barnhouse, Trustee Charles Burris, Trustee STAFF Rodney J Ray, City Manager Ronald D Cates, Authority Attorney Marcia Boutwell, Authority Secretary A quorum was declared present. ABSENT Unfilled Position ITEM 4: REQUEST APPROVAL OF THE MINUTES OF JUNE E 1993 REGULAR MEETING AND JUNE 8. 1993 SPECIAL MEETING. John Phillips moved to approve the minutes as written, by reference hereto; seconded by Charles Burris. AYE: Phillips, Burris, Barnhouse, Randolph NAY: None Motion carried 4 -0. ITEM 5: REQUEST APPROVAL OF THE CLAIMS John Phillips moved, seconded by Mary Lou Barnhouse, to approve the following claims as submitted: (1) OPWA Fund $32,602.64; (2) OPWA Capital Improvement Fund $31,159.40; and (3) Payroll $18,427.59. y" Owasso Public Works Authority June 15, 1993 AYE: Phillips, Barnhouse, Burris, Randolph NAY: None Motion carried 4 -0. ITEM 6: CONSIDERATION AND APPROPRIATE ACTION RELATING TO ' RESOLUTION #93 -02 A RESOLUTION ADOPTING A FY 1993 -94 OPWA BUDGET. ' A public hearing on the proposed budget was conducted on June 8, 1993. A notice of the public hearing and a summary of the document were published in the Owasso Reporter on May 22, 1993. Charles Burris moved, seconded by John Phillips, to approve Resolution #93 -02, adopting ' a FY 1993 -94 OPWA budget. AYE: Burris, Phillips, Barnhouse, Randolph ' NAY: None Motion carried 4 -0. ITEM 7: CONSIDERATION AND APPROPRIATE ACTION RELATING TO THE AWARD OF A CONTRACT FOR THE COLLECTION AND DISPOSAL OF SOLID WASTE GENERATED BY COMMERCIAL OPERATIONS WITHIN THE CITY OF OWASSO. Bids were opened on February 16, 1993 for commercial refuse collection service, after having been advertised as required by law. Two bids were received: one from Browning - Ferris Industries Waste Systems and one from Waste management of Tulsa, Inc. Bids were requested for fifteen categories of pick up. In reviewing the bid information, the only apparent differences ' were the costs of services. BFI was more consistent with their billing structure and had lower costs of service for ten of the fifteen major collection categories. Charles Burris moved, seconded by John Phillips, to award a contract to BFI Waste Systems Inc for a period of one ' year for the collection and disposal of solid waste generated by commercial operations. AYE: Burris, Phillips, Barnhouse, Randolph NAY: None Motion carried 4 -0. ITEM 8: REPORT FROM OPWA MANAGER No report. ITEM 9: REPORT FROM OPWA ATTORNEY No report. 2 i Owasso Public Works Authority ITEM 8: UNFMSHED BUSINESS None ITEM 9: NEW BUSINESS None ITEM 10: ADJOURNMENT John Phillips moved, seconded by Charles Burris to adjourn. AYE: Phillips, Burris, Barnhouse, Randolph NAY: None Motion carried 4 -0 and the meeting was adjourned at 8:10 p.m. Marcia Boutwell, Secretary 3 Bob Randolph, Chairperson June 15, 1993 CITY OF OWASSO OWASSO PUBLIC WORKS AUTHORITY 7/01/93 13:02:23 A/P CLAIMS REPORT APAPVR PAGE: PO # VENDOR DESCRIPTION AMOUNT ---- - - - - -- ------------------- - - - - -- ------------------- - - - - -- ------- - - - - -- * NO DEPARTMENT MASTER FOUND * ------------------------ - - - - -- 931883 CITY - AMBULANCE FUND 932533 TROY & TERRI DORREL DEPARTMENT TOTAL = = = =) OPWA ADMINISTRATION ------------------------ - - - - -- AMBULANCE SUBSCRIPTIONS REFUND 932283 CELLULAR, ONE -TULSA 6/93 USE 932529 OML MUNICIPAL ASSURANCE DEDUCTIBLE 932560 MARIE CAPEHAPT INSURANCE CLAIM 932609 TREASURER, PETTY CASH REIMB PETTY CASH DEPARTMENT TOTAL = = = =) WATER ------------------------ - - - - -- 932461 LOYD LEACH 93246 ROBERT M BUCKLES 932463 BOBBY TAYLOR 932525 OK STATE DEPT OF HEALTH 939-534 EMTEC, INC. 932535 MCCAW COMMUNICATIONS 932537 KIMBALL ACE HARDWARE 932543 BRAD SPARKMAN 932544 OSCAR MCLAUPIN 932545 JON GREENE 932546 ROBERT M BUCKLES 932552 OFFICE DEPOT CARD PLAN 432554 WATER FPODUCTS INC 932573 CINTAS COPP. 932589 KEVIN BAUGESS 932625 CHANDLER MATERIALS 932635 RAINBOW CONCRETE CO 932648 CINTAS COPP. 932650 ANCHOR STONE CO 932660 KIMBALL ACE HARDWARE DEPARTMENT TOTAL = = = =) WA'' TEWATEP ------------------------ - - - - -- METER, READER METER READER METER READER LICENSE RENEWALS SERVICES PAGER RENTAL SUPPLIES METER READER METER READER METER READER METER READER SUPPLIES SUPPLIES UNIFORM CLEANING /RENTAL SERVICES SUPPLIES CONCRETE UNIFORM CLEAN /RENTAL LIMESTONE SCREENINGS SUPPLIES 7,092.32 36.90 7,129.22 59.45 266.00 68.00 10.73 404.18 55.35 170.19 353.10 510.00 20.00 22.45 86.10 30.60 211.05 119.25 216.00 134.99 905.02 120.25 100.00 709.50 86.00 24.05 105.18 L•] Fl i CITY OF OWASSO OWASSO PUBLIC WORKS AUTHORITY 7/01/93 13:02:23 A/P CLAIMS REPORT APAPVR PAGE: 10 PO # VENDOR DESCRIPTION AMOUNT ---- - - - - -- ------------------- - - - - -- ------------------- - - - - -- ------- - - - - -- 932144 ULTRA TECH ULTRAVIOLET LAMPS 932402 ELECTRIC SPECIALTIES CO. CONTROL PANEL 932420 SMITH & LOVELESS PARTS 932520 STOVER BIOMETRIC LABRATOR TESTING 932523 WATER PRODUCTS INC SUPPLIES 932524 HACH CHEMICAL SUPPLIES 932525 OK STATE DEPT OF HEALTH LICENSE RENEWALS 932535 MCCAW COMMUNICATIONS PAGER RENTAL 932536 MET -LAB TESTING SERVICES MERCURY ANALYSIS 932537 KIMBALL ACE HARDWARE SUPPLIES 932571 DALE & LEE SERVICE REPAIR 9 0-2572 WASTE MANAGEMENT OF OKLA SLUDGE DISPOSAL 932573 CINTAS COPP. UNIFORM CLEANING /RENTAL 932573 STOVER BIOMETRIC LABRATOR TESTING 932590 TAYLOE PAPER CO SUPPLIES 932605 WASTE MANAGEMENT OF OKLA SLUDGE DISPOSAL 932648 CINTAS COPP. UNIFORM CLEAN /RENTAL 932652 HACH CHEMICAL SUPPLIES 932653 CHANDLER MATERIALS SUPPLIES 932654 ADVANCED CHEMICAL CHLORINE 932658 WOPLEYS GREENHOUSE SOD /HILLSIDE 932659 SMITH & LOVELESS PARTS 932660 KIMBALL ACE HARDWARE SUPPLIES DEPARTMENT TOTAL =___, P.EFU'SE COLLECTIONS ------------------------ - - - - -- 932449 CINTAS CORP. 932482 KIMBALL ACE HARDWARE 932629 SUBURBAN OFFICE SUPPLY DEPARTMENT TOTAL RECYCLE CENTER ------------------------ - - - - -- 93244'? CINTAS CORP. 932482 KIMBALL ACE HARDWARE DEPARTMENT TOTAL =___? FUND TOTAL =___? UNIFORM RENT /CLEANING SUPPLIES SUPPLIES UNIFORM PENT /CLEANING SUPPLIES 3,860.64 1,133.00 2,935.00 800.00 175.32 97.85 150.00 44.90 80.00 70.51 113.19 240.00 338.75 800.00 40.16 160.00 76.85 304.40 36.30 406.22 225.00 48.00 172.92 12,309.01 154.05 28.25 148.68 330.98 35.50 2.44 37.94 24,209.29 OWASSO PUBLIC WORKS AUTHORITY PAYROLL PAYMENT REPORT PAY PERIOD ENDING DATE 06/12/93 DEPARTMENT AMOUNT ;•.; .......... �""" �` "}3?x},°.•,�.'i��.'�•.::•r.. }: �:::..>... `r�}•.•.`•..�.�.•.},.•,4y';0�': <fi�u :. `�•' s. ::• r. }n. :. •: .. :•:.ti Y:r;; ;.. );C4 \ > ••? S<.:? j4...': ti> .4:Oi:iL {:Y:i•Si,`vi ? ?: } } ? <•.:; ?:•i}�ii: '�}t• :•}:M \4:i}}} ?�h}'•,?n�'vn kiv: v ?��i`' .rri xr }xwx:x.•x+x:yriwx:wr:::aC�3pgi ' YR+ y: 4} 3Vr. rF:y:: �Cw:. :i:Yrlfn{•xri4i }S::+wiWYi}} %•ix+ Water 3,693.93 .. v,4..v$.x:,i "�vC •tii•. ? ?.: '.:?}• r4; hn.? i.? ui:} C•. i' riS:? n:'{ vi:{:::S: isi::, v,.Y:ii?::Y } }}};; }}: ?,.. ?n;q' {: • "l ,.PivY,.;v.N:•}:.}..... ?:.v..:: n:.^.v.i. il,.; ....C.,{•. nniip:.:.}�+,. �..'CL7,',.,,.,,{C• }�i� }'.,•}„+.;. }:: r�.�}.•v,•.. ?::'i,:fi?i$r ?. {�',.v,: �1•.�{ .... :#..... i. is4' i•: v:•}::??:: hiv;.}: xp}}}}:?.}:::: r.::. xv:+: nv' iw::.? v.•<;•} i:}}^;{.}};:: G:::: 4y}:;} :{•::' } ?i? ?. } } } } }:i•:{j ?ri: ? {:i !:: }Tiii ^. .. �!►.i<�: :. :: ��) GC9E000OOri �>]OYRC}%+�5)SJ�v'+w %:iC "v+riiL!>i)i4Skt}w:K��J4.4ri }i•' v :4$iJ•ii:iifwL�Wix.�•:nv:.vrvr: x:.vn• :LAh:4w+LG<+4i:•'::�tiW Refuse :. 3,518.65 ``j��``11[[ i:::: ii?,::: �Y.`•: ii ?`y::.:i:::ij:•.,:;::i::.r•:Y �rr:. : V��:' 4: 44�R�: Y: i:::::{ n:.:v/•.v: r.•:•: wJ: vvvx :mwrx.JYxMGD.V'nviM•l.Jn4%'Y JfA:•] V.•}: vi.' v? J}} �iti .::Jii.C?v�'•.i4::winvilCiviv.0 �: 0`�iiro}i+'i'r}'i0'.w:i<Li'::4x: x:. rn. n. :?:.} w;::;. x:} r...,.;: c:}}:?.•:: xl.•} ry;••».;.;;:, tc�m' n"• �• �Y•'•+: r.•}: a�nv c; r,. o•`.•`.» C' x' •`�„'•^:c.?'}}::;::Jc"'x'rrrm:' ^. �sx,.;S} >}.•.^:^.c ^n»:cx:• }.... ..»:•: ra2}r,.'•.ma�}}»:c:;}. :.:....:......... <:f:: %: {;;: 33331;:;: :::£`•i::::;.y:;::53�:•r:�:�:•. '�: .. r.:.. v. n:.::•}:. w: Yk•: S' xwv .w:J.x'.Y::i.Qil: ?j}'i'.v:! -is ivies::' i:::: :U4k'i:: }?:i' {L�4kikri ::iii2i':: �:::::: APPROVED: 07/06/93 Chairman Trustee Trustee C� MEMoxnrmuM Fl� TO: THE CHAIRPERSON AND TRUSTEES ' OWASSO PUBLIC WORKS AUTHORITY FROM: RODNEY J RAY ' CITY MANAGER SUBJECT: REQUEST TO APPROVE COMMERCIAL REFUSE RATES 1 DATE: June 30, 1993 'BACKGROUND: The City of Owasso has leased to the Owasso Public Works Authority all assets of the water, wastewater and refuse systems. In conjunction with that lease (6/12/73), the Trust is empowered with the authority to establish rates for customers of its systems, provided however that the City Council must approve such rates when established. The OPWA began "contracting out" its commercial refuse service in 1986. At that time a competitive bidding process was conducted to determine which vendor would be selected to provide the desired services. Waste Management, Inc was the successful bidder and pursuant to that process, they were awarded a contract that provided for an annual renegotiation of fees and extension of the contract. The commercial refuse contract with Waste Management, Inc was extended six times (July 1, 1987 thru July 1, 1992) for a total contract period of seven years. During that seven years, the City received cost increases for the service in five of the contract extensions. Each time the cost to the City was increased, a corresponding rate increase was passed on to our customers. During the early part of this year, the City solicited bids for commercial refuse service based on specifications developed by the staff. On June 15, 1993, the Council awarded a contract to BFI, Inc as the lowest and best bidder. Staff review of the successful bid indicates that the ' charges to the City for the service specified will be reduced by 22.6% under the new contract. While there has been some debate regarding what the response should be to the reduced charges, ' I determined that a proper course of action would be to propose a rate reduction for our customers. The FY 1993 -94 budget proposal included assumptions relating to a rate reduction for commercial refuse customers. That proposal was made even though the OPWA "bottom ' line" has not met projections over the past eighteen months and even though we now have the additional burden of debt service on a recently acquired water /wastewater loan. Such payments 1 1 r-I 1 1 n Memorandum Commercial Refuse Rates June 30, 1993 Page 2 are requiring a more than expected contribution from the operating fund due to lower than projected water sales. After deliberations relating to the wisdom of the refuse rate reduction in light of the less than expected overall OPWA performance, it was decided that a partial reduction in customer rates would be recommended, with the OPWA retaining the remaining portion of the savings to be placed in reserve for use as a funding source for equipment replacement. The decision to seek such a rate reduction was made over some strong arguments against such a recommendation from some Trustees, business owners and staff, all of whom are concerned about our ability to meet program goals and the inevitability of those rates going back up in the next three years. However, it was my decision to seek the reduction and have a public discussion of the issue. Therefore, the staff has developed a rate schedule for commercial refuse customers that returns 68.87% of the savings to the customer, retains 31.13% of the savings for the reserves of the OPWA and retains the same level of gross profit for the OPWA in terms of dollars (so as to avoid a reduction in revenue to the OPWA). The rate plan proposed returns $27,396 to the customers of the system and retains $12,384 for the reserve. Based on the proposed rate schedule, the total rate reduction to customers is 11.42 %. Due to a reduction in the estimated gross receipts (from $217,596 to $190,200), it is not prudent from a business point of view to offer a full 22.6% reduction unless the Council is prepared to reduce services to cover the corresponding loss of revenue. By offering a full 22.6% reduction, the City would actually lose $9,396 compared to last year's revenue from the commercial refuse. The loss of $9,396 would go directly to the bottom line of the OPWA, thus increasing our concern for the fund's performance. As an example of what the retained savings will mean to the OPWA Fund, please note that the portion of the savings retained by the OPWA under the proposed rate schedule ($12,384) would fund a new residential refuse truck every 8.5 years, or fund 4% of the debt service each year. Additionally, the retained earnings will provide a hedge against future rate increases. Historically, new contracts are often "low - balled" in order to "buy" the business with a long term strategy of gaining rate increases in the renegotiation of annual extensions. While the staff position is to not allow such strategies, it is difficult to maintain a "no rate increase" negotiating position in the light of documented cost increases submitted by the contractor. PROPOSED RATE STRUCTURE: Based on the cost of service from BFI, the staff has developed a rate schedule that accomplishes the return of 68.87% of the cost savings to Owasso businesses. However, it should be noted that our rate schedule has, for several years, placed the majority of the burden on the biggest user and in some cases did not even cover the cost of service to the smaller user (in 1987 it cost the OPWA $5.00 more to provide service to a two -yard, once per week customer than it I Memorandum Commercial Refuse Rates June 30, 1993 Page 3 collected from that customer). Such a practice is discriminatory, arbitrary, and counter to the City's philosophy of "user pays ". The rate schedule herein proposed includes at least a 5% rate reduction for every customer and ranges up to a 19.65 % reduction for some customers who had ' previously paid an inordinant share of the cost and provided most of the system's profit for the past seven years. For the past six years, the Trustees and staff have made small changes each year in an effort to bring some equity to the rate system we inherited. The proposed new schedule represents a final action to provide fairness in those rates. Under this rate plan, each customer will pay an equal amount of the cost for disposal and collection, based on their use of the service. As noted above, the down side of that philosophy is that the rate reductions will ' not be evenly divided between all users. Conversely, the smaller user has been subsidized for the past seven years, therefore it is only fair that the rates be equalized and the rate structure begin to reflect that equity at this point. Attachment "A" to OPWA Resolution #93 -03 indicates the proposed rate structure as compared to the current rate structure, with the dollar and % of reduction shown for each level of service. RECOMMENDATION: The staff recommends Trustee adoption of OPWA Resolution #93 -03 approving rates established for commercial refuse users and establishing an effective date. ATTACHMENTS: 1. OPWA Resolution #93 -03 2. Memorandum dated June 10, 1993 - re: Contract Award F—j L OWASSO PUBLIC WORKS AUTHORITY OPWA RESOLUTION NO 93 -03 A RESOLUTION OF THE OWASSO PUBLIC WORKS AUTHORITY ADOPTING RATES TO BE CHARGED FOR THE PROVISION OF NECESSARY REFUSE COLLECTION AND DISPOSAL SERVICE TO COMMERCIAL /INDUSTRIAL REFUSE GENERATORS, AND ESTABLISHING AN EFFECTIVE DATE. BE IT RESOLVED BY THE OWASSO PUBLIC WORKS AUTHORITY THAT: SECTION ONE: From and after the effective date as hereinafter set forth, the charges by the Owasso Public Works Authority to its customers for commercial refuse service are as described on Attachment "A ", adopted and incorporated as such by reference herein. SECTION TWO: The rates hereby adopted shall apply for service provided on and after the first day of August, 1993. DATED this 6th day of July, 1993. OWASSO PUBLIC WORKS AUTHORITY by i ATTEST: Marcia Boutwell, Secretary APPROVED AS TO FORM: Ronald D Cates, Authority Attorney Bob Randolph, Chairperson ATTACHMENT "A" to RESOLUTION #93 -08 COMMERCIAL REFUSE COLLECTION & DISPOSAL Rate Schedule Container Size Weekly Pickup Current Rate Rate Effective 8/1/93 Amount Difference Percentage Difference 2 yard 1 36.00 34.00 (2.00) -5.56% 2 67.00 63.00 (4.00) -5.97% 3 92.00 87.00 (5.00) -5.43% 3 yard 1 48.00 45.00 (3.00) -6.25% 2 84.00 79.00 (5.00) -5.95% 3 100.00 95.00 (5.00) -5.00% 4 yard 1 56.00 52.00 (4.00) -7.14% 2 104.00 94.00 (10.00) -9.62% 3 132.00 125.00 (7.00) -5.30% 6 yard 1 72.00 67.00 (5.00) -6.94% 2 136.00 118.00 (18.00) - 13.24% 3 195.00 168.00 (27.00) -13.85% 8 yard 1 98.00 79.00 (19.00) -19.39% 2 173.00 139.00 (34.00) -19.56% 3 236.00 198.00 (38.00) -16.10% b CZ f) ro v e4 4I(SIC1 -,-3 TO: THE HONORABLE CHAIR AND TRUSTEES ' OWASSO PUBLIC WORKS AUTHORITY ' FROM: MIKE KNEBEL ' SUBJECT: AWARD OF COM34ERCIAL REFUSE CONTRACT DATE: June 10, 1993 BACKGROUND: The Trustees, at the December 5, 1992 meeting, authorized staff to develop bid documents for ' the commercial refuse collection service. Staff generated a bid proposal packet which consisted of a Notice To Bidders, Specifications, Statement of Bidders Qualifications, Bid Form, Bid ' Affidavit and Contract. This packet was presented to the Trustees at the January 19, 1993 meeting. The Trustees approved the bid proposal packet and authorized staff to solicit bids for commercial refuse collection. Staff advertised for bids according to the City of Owasso's and state requirements. Along with the advertisement, staff mailed bid packets to the following companies: Waste Management Co. American Waste Control, Inc. P.O. Box 461 1222 W. 37th Pl. Tulsa, OK Tulsa, OK National Waste BFI Waste Systems 6834 N. Peoria Ave. 1616 N. Pittsburgh Tulsa, OK Tulsa, OK Freeman's Waste Management SB Refuse Co. 3508 E. Admiral Pl. 1340 N. 75th E. Ave. Tulsa, OK Tulsa, OK Alan's Containers Collins Trash Service P.O. Box 691970 1928 N. Sheridan Tulsa, OK Tulsa, OK Staff conducted the bid opening on February 16, 1993, at City Hall, and opened two bids: one from Browning - Ferris Industries Waste Systems and the other from Waste Management of Tulsa, Inc. 1 11 1 �1' 1 • ' • BFI Waste Systems has been in the refuse collection business for 24 years and owns and operates the BFI Broken Arrow Landfill located at 51st Street South and 214th East Avenue. The company has honored all contracts and currently has similar commercial collections contracts with the following cities: Shawnee, Cushing, Chandler and the Village. The company also offers a variety of refuse collection and hauling for the Tulsa metropolitan area. Waste Management, Inc. has been engaged in refuse collection for 13 years as an Oklahoma corporation and owns and operates the Quarry Landfill which is located at 4041 North 141st East Avenue. Waste Management currently has a contract with the City of Owasso for commercial refuse collection and has municipal contracts with the cities of Sapulpa and Sperry for exclusive residential and commercial hauling. They provide a variety of collection and hauling services for the Tulsa metropolitan area. Both bidders also supplied other requested information which included but was not limited to a list of references and other vendor qualifications. This information revealed equally competent vendors for this type of service. Although Waste Management of Tulsa, Inc. offered, without solicitation, a superfund indemnification which agrees to indemnify, defend and hold harmless the City of Owasso from liability (including attorneys fee) for removal and remedial actions under the Comprehensive Environmental Response Compensation and Liability Act of 1980 (also known as Superfund) or comparable state law incurred as the result of the disposal under the Service Agreement, it is the staff belief that the City's contract specification requiring $5,000,000 comprehensive liability insurance would guarantee proper disposal of the refuse materials received from the Owasso area. BID LNFORNIATION: Staff used the current commercial refuse cost, Waste Management's bid, and BFI Waste Systems' bid to compile several tables on the following pages to: 1. Compare the current contract monthly per unit cost with the two submitted bids, 2. Show current monthly service usage and actual cost per use, 3. Compare Waste Management's and BFI's bid tabulations for projected monthly service usage and costs. Please note that during the review process, it was determined that additional information should have been required in the original bid proposal. Staff subsequently requested an addendum from Waste Management and BFI Waste Systems for (1) rental and haul fees for roll-off containers in the 20 cubic yard to 60 cubic yard range, (2) cost of additional hauls for the 2, 4, 6 and 8 yard containers, and (3) an agreement pertaining to current commercial refuse compactor leases and new customer lease agreements for compactors. Both companies forwarded satisfactory written responses that are incorporated as part of this memo. 2 I '' 9 TABLE I COMPARISON OF UNIT COSTS FOR CURRENT AND BID CONTRACTS Comments: The table compares the City's monthly container (unit) costs under the current commercial refuse contract and the two bids for next year's contract. It is interesting to note that BFI Waste Systems' bid proposes a lower cost than Waste Management's bid for ten out of the fifteen 1 individual container /weekly pick -up rate categories. BFI's bid also seems to follow a more logical cost progression for volume actually picked up and the number 1 of trips necessary to provide the requested service. (Notice Waste Management's bid for 3 and 4 yard containers picked up two and three times a week.) 3 NUMBER OF CURRENT BFI WASTE WASTE CONTAINER PICK -UPS CONTRACT SYSTEMS MGMT SIZE PER WEEK COST BID BID 1 $32 $27 $29 2 YARD 2 $60 $48 $62 3 $72 $69 $86 1 $42 $31 $33 3 YARD 2 $68 $55 $67 3 $88 $80 $90 1 $48 $35 $41 4 YARD 2 $79 $63 $67 3 $101 $91 $89 1 $65 $45 $50 6 YARD 2 $106 $79 $75 3 $136 $113 $104 1 $84 $53 $60 8 YARD 2 $137 $93 $88 3 $176 $133 $121 Comments: The table compares the City's monthly container (unit) costs under the current commercial refuse contract and the two bids for next year's contract. It is interesting to note that BFI Waste Systems' bid proposes a lower cost than Waste Management's bid for ten out of the fifteen 1 individual container /weekly pick -up rate categories. BFI's bid also seems to follow a more logical cost progression for volume actually picked up and the number 1 of trips necessary to provide the requested service. (Notice Waste Management's bid for 3 and 4 yard containers picked up two and three times a week.) 3 TABLE II CURRENT MONTHLY COMMERCIAL REFUSE COST Comments: This table shows current monthly costs incurred to provide commercial refuse service for the variety of requested refuse containers and pick -up rates. Any shift in the service requested by customers could dramatically change the overall cost of service. (Notice the large proportion of 8 yard containers picked up three times a week and smaller containers picked up only once a week.) 4 NUMBER OF NUMBER OF CURRENT TOTAL CONTAINER PICKUPS CONTAINER CONTRACT MONTHLY SIZE PER WEEK ACCOUNTS UNIT COST COST 1 28 $32 $896 2 2 6 $60 $360 3 5 $77 $385 1 11 $42 $462 3 2 12 $68 $816 3 4 $88 $352 1 14 $48 $672 4 2 5 $79 $395 3 6 $101 $606 1 8 $65 $520 6 2 5 $106 $530 3 6 $136 $816 1 1 $84 $84 8 2 7 $137 $959 3 36 $176 $6,336 TOTALS 154 $14,189 Comments: This table shows current monthly costs incurred to provide commercial refuse service for the variety of requested refuse containers and pick -up rates. Any shift in the service requested by customers could dramatically change the overall cost of service. (Notice the large proportion of 8 yard containers picked up three times a week and smaller containers picked up only once a week.) 4 TABLES III & IV BROWNING- FERRIS & WASTE MANAGEMENT BID TABULATION CONTAINER SIZE 2 3 4 C TOTALS NUMBER OF PICKUPS PER WEEK 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 NUMBER OF CONTAINER ACCOUNTS 28 6 5 11 12 4 14 5 6 8 5 6 1 7 36 154 $27 $48 $69 $31 $55 $80 $35 $63 $91 $45 $79 $113 $53 $93 $133 $756 $288 $345 $341 $660 $320 $490 $315 $546 $360 $395 $678 $53 $651 $4,788 5 NUMBER OF NUMBER OF '' CONTAINER NER PICKUPS S CONTAINER INER SIZE PER WEEK ACCOUNTS EE3ST' . EOS.:> 1 28 $29 $812 2 2 6 $62 $372 3 5 $86 $430 1 11 $33 $363 3 2 12 $67 $804 3 4 $90 $360 1 14 $41 $574 4 2 5 $67 $335 3 6 $89 $534 1 8 $50 $400 6 2 5 $75 $375 3 6 $104 $624 1 1 $60 $60 8 2 7 $88 $616 3 36 $121 $4,356 TOTALS 154 $Il,flla 5 TABLE V PERIODIC EXTRA PICK -UP COST CONTAINER SIZE CURRENT UNIT COST BFI WASTE SYSTEMS BID WASTE MGMT BID 2 $6 $7 $4 3 $8 $8 $6 4 $10 $9 $10 6 $16 $11 $13 8 $20 $13 $16 Comments: This table shows the rates for the previously mentioned fee for extra pick -ups when requested. The "current unit cost" column lists costs that were not established through the previous contract. These were "pass through" cost items charged by Waste Management as needed. BFI and WMC supplied the addendum as requested and it provided the costs shown in the last two columns. TABLE VI ROLL -OFF CONTAINER COST PER HAUL CONTAINER SIZE CURRENT UNIT COST BFI WASTE SYSTEMS BID WASTE MGMT BID 20 yard n/a $125 $120 30 yard $165 $148 $145 IL 42/40 yard n/a $185 $189 Comments: The roll-off containers are used almost exclusively by the Owasso Recycle Center, Owasso Convenience Station, and demolition /construction contractors. BFI Waste Systems will provide roll -off containers for $50.00 per month rental and charge a $40.00 delivery fee and Waste Management quoted a 545.00 per month rental fee for the 42 yard roll -off container. A SUMMARY: The bids from these two firms exemplify the intent of the competitive bidding process. Waste Management of Tulsa, Inc. and BFI Waste Systems have submitted very competitive bids for commercial refuse collection, extra pickup charges and roll-off container costs per haul. Both companies and their representatives were very cooperative during the bid process and are ' actively interested in working with the City of Owasso. In reviewing the bid information, the only apparent differences were the costs of services. As was shown in TABLE I, BFI Waste Systems was more consistent with their billing structure and had lower costs of service for ten of the fifteen major collection categories. Analysis of the total bid, through the use of tabulation TABLES III & IV, shows a projected cost difference between bids of $29.00 per month with BFI Waste Systems as the low bidder. RECONEMMNDATION• Mi Staff recommends that the Trustees award the commercial refuse collection contract to BFI Waste Systems per the submitted bid documents and per Attachment "A" Bid Tabulation. 1 7 EXIT "A" NEW COMMERCIAL REFUSE RATES FOR THE CITY OF OWASSO CONTAINER SIZE NUMBER OF PICK -UPS AMOUNT PER MONTH 2 yard 1 per week $27 2 yard 2 per week $48 2 yard - 3 per week $69 3 yard 1 per week $31 3 yard 2 per week $55 3 yard 3 per week $80 4 yard 1 per week $35 4 yard 2 per week $63 4 yard 3 per week $91 6 yard 1 per week $45 6 yard 2 per week $79 6 yard 3 per week $113 8 yard 1 per week $53 8 yard 2 per week $93 8 yard 3 per week $133 0 EXHIBIT "A" PART TWO EXTRA PICK -UP COST CONTAINER SIZE BFI NEW CONTRACT -2 $7 3 $8 4 $9 6 $11 8 $13 ROLIrOFF CONTAINER COST PER HAUL CONTAINER SIZE BFI NEW CONTRACT 20 yard $125 30 yard $148 42 yard $185 Note: 1) Roll-off containers will be rented for $50.00 per month with a $40.00 per container delivery charge (except for 4 "rent free" thirty yard containers at the Owasso Recycle Center with additional units at $30 per month). 2) The need for compactors will addressed on an "as needed" basis as the use of a compactor requires equipment and set -up specific to a particular job. Q MEMORANDUM TO: CHAIRPERSON AND TRUSTEES OWASSO PUBLIC WORKS AUTHORITY FROM: RODNEY J RAY CITY MANAGER SUBJECT: OPWA RESOLUTION #93 -04 RELATING TO EPA MUNICIPAL WATER POLLUTION PREVENTION AUDIT DATE: July 1, 1993 BACKGROUND: Pursuant to EPA Region 6 regulations, the City of Owasso is required to file with that office, prior to July 31, 1993, audit information relating to the operations of the Owasso Wastewater Treatment Facility. The requirement for information is designed to encourage wastewater facility operators to take a more proactive approach to enhancing water quality, rather than a reactive approach. It is the EPA's policy to promote pollution prevention whenever possible. To accomplish their goal, the EPA has established a Municipal Water Pollution Prevention Program. The program focuses on preventing permit violations, maximizing the useful life of treatment facilities, and ensuring that cities are planning for the future financing needs of the system prior to the occurrence of permit violations. These regulations require that the Owasso Public Works Authority submit by July 31, 1993, all information requested in the performance audit and that the Trustees adopt a resolution relating to the findings of the audit. The staff of the Wastewater Treatment Facility completed the audit during June and have compiled their information in the attached report. AUDIT FINDINGS I COMMENTS: The audit has been reviewed by staff and indicates three areas of concern: 1. Inflow and infiltration problems continue to be noted. Memorandum Resolution #93 -04 July 1, 1993 Page 2 2. The audit revealed the Wastewater Treatment Facility should be upgraded to accommodate growth and to improve effluent discharge. 3. That the City of Owasso should take all reasonable steps to minimize or correct any adverse impact on the environment, if any, from the operations of the facility. RECONEMTENDATION: The staff recommends Council adoption of OPWA Resolution #93 -04. ATTACHMENT: 1. OPWA Resolution #93 -04 ENCLOSURE: 1. Internal audit relating to performance of Wastewater Treatment Facility OWASSO PUBLIC WORKS AUTHORITY IOPWA RESOLUTION NO 93 -04 ' A RESOLUTION OF THE TRUSTEES OF THE OWASSO PUBLIC WORKS AUTHORITY, OWASSO, OKLAHOMA, PERTAINING TO MUNICIPAL WATER POLLUTION PREVENTION ENVIRONMENTAL AUDIT, INFORMING EPA REGION SIX AND THE OKLAHOMA STATE ' HEALTH DEPARTMENT OF ACTIONS TAKEN AS PERTAINING HERETO BE IT RESOLVED by the Trustees of the Owasso Public Works Authority, Owasso, Oklahoma, that: ' SECTION ONE - The Owasso Public Works Authority has reviewed the Municipal Water Pollution Prevention Environmental Audit which is attached hereto and made a part hereof and marked as Exhibit "A ". ' SECTION TWO - The following action is necessary to maintain the permit requirements contained in the NPDES Permit #OK0020303 and have been taken or will be taken, to wit: a. The Owasso Public Works Authority will continue to address all inflow /infiltration problems detected. b. The Owasso Public Works Authority will continue to upgrade the treatment ' facility to address issues of growth and water quality enhancement. C. The Owasso Public Works Authority will take all reasonable steps to minimize or correct any adverse impact on the environment resulting from non - compliance with the permit. PASSED AND APPROVED this 6th day of July, 1993 by the Trustees of the Owasso Public Works Authority in open meeting. ATTEST: Marcia Boutwell, Secretary APPROVED AS TO FORM: Ronald D Cates, Authority Attorney iJ OWASSO PUBLIC WORKS AUTHORITY by Bob Randolph, Chairperson