Title
Resolution to Approve Purchase of Compost Carts from Cascade Engineering ($740,250.00) and to Appropriate Funds from the Solid Waste Enterprise Fund ($740,250.00) (8 Votes Required)
Memorandum
City Council approval is requested to purchase up to 15,000 96 gallon carts from Cascade Engineering at a cost of $49.35 per cart, including delivery to individual households, and to appropriate funds from the Solid Waste Enterprise Fund for the purchase of the carts. These carts will be dark brown in color with "COMPOST" stamped on them. These carts are manufactured in Michigan and include 25% recycled content.
Cascade was the lowest bidder in response to Bid Number 3926, which had a due date of February 13, 2008. Cascade Engineering received Human Rights approval on February 13, 2008. Bid prices are shown below:
VENDOR |
PRICE PER CART |
Cascade Engineering |
$49.35 |
Schaeffer |
$53.20 |
Bell Equipment (Toter) |
$55.98 |
The City will sell these carts directly to residents at a cost of $25.00 per cart, delivered to their home. This is equivalent to the cost of a durable 32 gallon can, and significantly less than the $89.00 retail cost of the 96 gallon cart (not delivered). Staff recommends that this be implemented in conjunction with the disallowance of resident-supplied compost cans.
Carts will be sold online through Cityworks, as well as through phone calls to the Customer Service Center. The one-time $25.00 charge will be placed on the resident's utility bill. One cart per household would be available at this pricing with additional carts available at cost. The revenue from these sales will be returned to the Solid Waste Enterprise Fund. If the full 15,000 carts are purchased, the net cost to the Solid Waste Enterprise fund will be $365,250.00 assuming one cart per household. This number is based on surveys taken during the compost pilot which indicated that 56% of residents would be willing to pay for their compost cart.
If the carts were provided to residents without any charge, based on the compost pilot surveys, it is estimated that up to 90% of residents would want a cart, for a total of 24,000 carts. This option would cost the Solid Waste Enterprise fund $1.18 million. Based on the upcoming demands that will be placed on the fund, particularly the costs of environmental cleanup at the closed landfill, staff recommends against this option. Please see Attachment A for details.
It is proposed that orders for the carts will be taken during the months of April and May, 2008. During that period, drivers will place notices on compost cans letting residents know about this offer. In addition, information will be distributed through Waste Watcher and through newspaper ads. Cart deliveries will take place during the month of June.
We are also requesting these funds be made available without regard to fiscal year in order to provide the opportunity to purchase carts throughout the composting season.
The City will also provide a curbside collection program for residents, who would not reuse their compost cans for other purposes, during the week of August 4th through 8th. These cans will be collected at no additional charge, with an effort made to reuse and recycle cans where possible.
Upon adoption of this resolution, staff will return to Council with a request for an ordinance change to Chapter 26 that will allow unpaid compost cart fees to be assessed against the property pursuant to section 1:292 of Chapter 13 of City Code and remove cans from the listing of improved containers for compost service.
Staff
Prepared by: Tom McMurtrie, Systems Planning Unit
Reviewed by: Sue F. McCormick, Public Services Area Administrator
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, The City ordinances permit residents to use approved carts for compost collection;
Whereas, 96 gallon wheeled compost carts will increase convenience for residents;
Whereas, The use of compost carts will help improve neighborhood appearance in a manner similar to use of trash carts;
Whereas, The City's buying power and subsidy will allow the 96 gallon carts to be delivered directly to resident's homes at a cost equivalent to a durable 32 gallon can;
Whereas, The use of compost carts will help improve ergonomics for the solid waste workers, and reduce the likelihood of work-related accidents;
Whereas, Cascade Engineering received Human Rights approval on February 13, 2008; and
Whereas, Funding to purchase the carts is available in the Fund Balance of the Solid Waste Enterprise Fund;
RESOLVED, That $740,250.00 be appropriated from the Fund Balance of the Solid Waste Enterprise Fund to purchase up to 15,000 Cascade 96 gallon carts at a cost of $49.35 per cart;
RESOLVED, That City Council authorizes the issuance of a purchase order in the amount of $740,250.00 to be issued to Cascade Engineering for the purchase of up to 15,000 carts;
RESOLVED, That the City sell the carts directly to residents at a cost of $25.00 per cart for one cart, and that additional carts be available for sale to residents at cost;
RESOLVED, That funds from the sale of the carts be returned to the Solid Waste Enterprise Fund;
RESOLVED, That funds be made available for the life of the project without regard to fiscal year; and
RESOLVED, That City Council authorizes the City Administrator to take necessary administrative actions to implement this resolution.