Shakopee has a long history of contracting with waste haulers to provide trash collection to city residents dating back to at least 1968. The city has employed an organized collection system for residential refuse collection since 1993. (The authority for a city to engage in organized collection is codified in MN Statutes 115a.94.)

Under an organized system, city staff is responsible for resolving and troubleshooting certain customer service and billing issues. As the holder of the contract, we have the responsibility to ensure customer service is at appropriate levels and issues are resolved. The city is also responsible for collection on severely delinquent bills by assessing delinquent bills to property tax statements if not paid prior to council action.

Overall, the city has been well-served by organized collection which ensures that all residential properties have refuse and recycling services, decreasing the likelihood of garbage stockpiling in or around residential properties. Organized collection also decreases truck traffic on city streets which reduces wear and tear on our city streets and decreases truck noise in neighborhoods.

Since Jun 1, 2014 the city’s contracted refuse and recycling hauler has been Republic Services. Republic Services was chosen following a competitive request for proposals process that took place in 2013. The original contract allowed for two extensions for up to two years each with the mutual agreement of the parties. In early 2019, the city provided an extension to the contract until December 31, 2021. In November of 2020, the council directed staff to open up the process and prepare a Request for Proposals (RFP) for the contract.

During a January 5, 2021 workshop council was presented a scoping document to ensure staff was tracking concerns and council wishes for the new contract.  (Scoping document attached. The pink shaded areas of the document are council identified issues and yellow shaded are staff concerns.)  It was used as a basis for review of the proposals that the city ultimately received. During the discussion, staff was directed to proceed with bringing an RFP to Council for review.

An RFP was issued by city council on February 2, 2021 with direction for staff to review the proposals, work on contract language and ultimately bring a contract to City Council in May.

We received four qualified responses to the RFP. They included Waste Management (national corporation with local base and customer service center in Burnsville), West Central Sanitation (based in Willmar), Dick’s Sanitation (based in Lakeville), and our current provider Republic Services (national corporation with local base in Eden Prairie w/ customer service centers in Phoenix, AZ Indianapolis, IN and Charlotte, NC).

Based upon review of the proposals and the ability of each organization to comply with city requirements, two companies were interviewed:  West Central Sanitation and Dick’s Sanitation. After the interviews, Dick’s Sanitation was the unanimous recommendation for the contract.

General Terms of the Contract

·         The agreement is slated to be for a term of 5 years with one 5 year extension and up to two 2 year extensions.

·         DSI will purchase all of the current city carts at $7,500 per month for the first 60 months of the contract.

·         DSI collects, transports and disposes of refuse and recycling at no charge to city facilities.

·         DSI will provide containers, transportation and disposal for refuse and recycling for city events including Rhythm on the Rails.

·         DSI is responsible for notifying customers in changes to their services due to weight limit restrictions.

·         The city and DSI will share 50% revenue on recyclables.

·         Yard waste may be by either subscription or by the bag on call. DSI will supply carts for the yard waste at no cost.

·         DSI will not stop service for non-payment but will certify uncollectible accounts over $25 which the city will pay and then assess.

·         There is an extended vacation policy for up to six times a year.

·         Valet service is provided for an extra fee for seniors and those with decreased mobility.

·         There will be a pilot organic waste program.

·         DSI will develop a Shakopee specific webpage for customer information and use.

·         DSI will collocate their customer service center with their operations center.

·         DSI will provide recycling in all city parks at no charge to the city.