Title
Discuss and consider action to authorize the City Manager to enter into negotiations with Progressive Waste Solutions (formerly IESI TX Corporation) to allow for a two-year extension to the exclusive franchise agreement for the collection, hauling, recycling and disposal of municipal solid waste and recycling material in the City of Pflugerville which terminates January 31, 2013.
Summary
The contract between the City of Pflugerville and Progressive Waste Solutions (formerly IESI) for residential solid waste collection ends its three year term on January 31, 2013. The current contract contains a provision that an additional two years may be negotiated by mutual agreement with both parties. Either a Notice of Termination or the start of negotiations for a possible contract extension is required by August 1, 2012 (180 days notice).
During the past two and one half years, Progressive Waste Solutions has complied with the terms of the current contract. Section 4 (E) was satisfied by the development of the recycling facility within the city limits of Pflugerville on May 1, 2010 at 16805 Radholme Court. All reporting requirements of the contract have been met. Progressive Waste has provided assistance to all City special events listed in the contract.
The maintenance of the trucks has been to the standard of the contract, and all customer complaints have been resolved, the majority of them during the time allowed.
The staff proposes negotiating for a fixed rate for the next two years. The other pertinent change that staff wishes to propose involves the requirements of Section 5 (A). Ms. Terri Waggoner, the City's Public Information Officer, is recommending establishing a fund in a mutually agreed upon amount that can be used more flexibly, depending upon the situation. For example, instead of always putting quarterly advertisements in the Community Impact, magnets, direct mail, or other public relations material can be used to provide information about solid waste or recycling. Ms. Waggoner would be working with Progressive Waste Solutions to develop these materials.
Deadline for City Council Action
In order to provide timely notice, a decision on the status of the contract must be made by August 1, 2012.
Fiscal Impact
The proposed fiscal impact to the solid waste customer and the City will be negotiated during the process.
Staff Recommendation
Authorize the City Manager to enter into negotiations with Progressive Waste Solutions for a two year extension to the current residential solid waste collection contract.
Drafter
Lauri Gillam
Assistant City Manager