HomeMy WebLinkAboutItem 17 - Commercial Recycling ServicesITEM ! ,._.! 7 _=
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGERA/
MEETING DATE: JULY 18, 2000
SUBJECT: REQUEST FOR PROPOSAL FOR COMMERCIAL RECYCLING
SERVICES
RECOMMENDATION:
City Council to consider rejection of the proposal for Commercial Recycling by IESI.
FUNDING SOURCE:
N/A
BACKGROUND:
Staff found that there were several commercial solid waste companies providing solid
waste services within Grapevine without a franchise agreement with the City. The City
Code of Ordinances requires that a company must be granted a franchise to provide this
service in the City. When questioned, these companies indicated that they were
providing recycling services only and were exempt from the franchise requirement.
Upon further investigation by City staff, it was discovered that while there was some
recycling being undertaken by those non -franchise companies, the majority of the non-
franchised companies were actually providing solid waste disposal.
Staff requested a legal opinion from the City Attorney regarding the franchise
requirement and 100% pure commercial recycling. The attorney concluded that the
City's ordinance and franchise requirement did apply to both solid waste and recycling
loads. The current franchise granted to Trinity Waste Systems encompasses all aspects
of solid waste disposal, including recycling. However, it was recommended by the City
Attorney that to ensure a fair playing field with respect to recycling services, and to
ensure that the City explored any potential advantages to having a second authorized
recycling hauler, we should initiate a "request for proposal" process for 100%
commercial recycling services.
Request for proposals were submitted to seven solid waste services providers on May
9th. A pre -proposal meeting was held on May 31, 2000. Proposals were accepted on
June 16th, 2000.
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IESI submitted the only proposal. They proposed a franchise fee of 7% of gross billing,
a billing calculation method different than the one outlined in the proposal and took
exception to the verification of the recycled material as specified in the proposal. Trinity
Waste systems currently pays a franchise fee of 12% of gross billing.
Based on the proposal, we have concluded that there would be no financial benefit to
the City to grant a franchise to IESI. Staff recommends rejection of the proposal of IESI
for commercial recycling services.
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