Discussion:
RFP Scoping
In November, the Council directed staff to begin preparing an RFP for refuse and recycling organized collection. A thorough review of the contract, MPCA guidance, and other recent RFP's for similar services was completed. Following this discussion, staff anticipates a draft RFP for Council approval on 1/19/2020, with a responses due on or about 4/19/2020.
Attached to this memo is a scoping document that summarizes key elements of the RFP that will shape the contract for refuse and recycling services. The areas shaded in pink in this document are issues the council has identified as priority in the past, and the areas shaded in yellow indicate staff initiated concerns. For all of these areas, as well as any others the Council deems advisable, staff requests input and guidance to complete the RFP.
The biggest roadblock to engaging in a new contract with a different service provider will be refuse and recycling carts. in 2013 the City Council at the time purchased carts and took out an interfund loan of $1.067 mil to pay for them. The plan has been to repay the interfund loan with revenues from cart fees collected. There is still approximately 427k owed on that interfund loan. It is anticipated to be paid off at the current pace by June of 2024.
In addition, the logistics of transitioning to another provider will be very difficult. At this point, city owned carts are intermingled in the community with Republic owned carts. In order to transition to another provider, all Republic carts would need to be collected, city carts would need to be consolidated and redistributed, and the new provider would have to distribute new carts.
Based on anecdotal evidence and correspondence from the last transition - the interchange of the carts was the driving force behind significant customer dissatisfaction. It seems likely the dissatisfaction from that time period is driving the perception of dissatisfaction with Republic today. Based on available history of customer service complaints - there is no appreciable difference in the number of calls, type of calls or resolution of calls between the former provider and the current.
Additional Recommendation - Open system with strong ordinance
In addition to consideration of this RFP scoping document, staff recommends that the Council further consider an option to "open" the refuse and recycling system. Shakopee has had an organized system since the early 1990's but there may be other options that could serve the community better 30 years later.
Staff does not recommend consideration of a completely open system, but a system where the city is divided in to zones and assigned a "pick up day". The city would then license haulers and require them to perform services in the appropriate zone on the appropriate day of the week. The city would no longer be in the middle of the relationship between service provider and customer, but still able to ensure the health, safety and well-being of the community as well as protect infrastructure and ensure every residence and business has refuse and recycling service. Eden Prairie has a similar system and has generally high marks and community approval of their refuse and recycling systems. You can read a bit more about their system at https://www.edenprairie.org/community/sustainable-eden-prairie/waste/garbage-and-recycling, and the Eden Prairie ordinance is attached to this memo.
There are many issues to be considered if the city chooses to also consider a somewhat more open model, which include:
- The city still owns carts and owes on an interfund loan. How can that be paid back?
- The city currently receives free refuse and recycling service at city facilities and recycling service in parks. How will that be paid for and managed in the future?
- What is the likely impact to the cost of service for customers if the system is opened?
- There is a perception that a large number of people would prefer to choose their own hauler, but is this true? 80% of people in the last community survey reported they were happy with their refuse and recycling services.
- How will we ensure that we have equipment and labor for clean up day and special events?
- How will we ensure that all residences and businesses have the required service?
- How we will ensure that spills and debris as a result of refuse and recycling collection is cleaned up by the responsible party?
- Are residents willing to tolerate multiple service providers on their street?
This is just a sampling of the issues, should the Council be interested in a more detailed analysis of the issue, staff would assemble a small working group to evaluate options along side the RFP process.