HomeMy WebLinkAboutRes2019-017 Sponsored by: Bridges
CITY OF SEWARD, ALASKA
RESOLUTION 2019-017
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO AWARD A
THREE-YEAR FRANCHISE AGREEMENT EXTENSION TO ALASKA
WASTE — KENAI PENINSULA LLC FOR THE COLLECTION AND
DISPOSAL OF GARBAGE, RUBBISH AND WASTE
WHEREAS, following the solicitation of request for proposals and the subsequent
approval by the voters of Seward at the October 2, 2012 regular City Election, a franchise
agreement was awarded to Alaska Waste — Kenai Peninsula LLC (Alaska Waste) for the
collection and disposal of garbage, rubbish and waste in Seward; and
WHEREAS,the agreement is due to expire on December 31, 2019; and
WHEREAS,the agreement has the option to extend for up to three years; and
WHEREAS, Alaska Waste has established a positive reputation in Seward for reliable,
clean and efficient waste management services; and
WHEREAS, Alaska Waste has promoted and enhanced recycling efforts and bear-
awareness programs and services; and
WHEREAS, Alaska Waste provides dependable, economic and efficient services to
Seward's business, industrial, residential and public districts of the City and surrounding areas;
and
WHEREAS, Seward City Code requires that all residents living inside the City limits
pay for refuse service as a means to ensure that waste is properly disposed in the landfill; and
WHEREAS, Alaska Waste provides this service and bills customers directly as required
in their franchise agreement, paying the City 3%of gross revenues; and
WHEREAS,the franchise fee has generated an average revenue of$23,226 per year; and
WHEREAS, Alaska Waste has exercised the provisions contained Section 4 Terms of
Agreement, and hereby requests an extension for three additional years under the same terms and
conditions as the current contract; and
WHEREAS, if the agreement is not extended, a request for proposal will need to be
issued and, per City Charter Chapter 13, an affirmative vote of the majority of electors would
need to occur at the regular election on October 1, 2019.
CITY OF SEWARD, ALASKA
RESOLUTION 2019-017
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA that:
Section 1. The city manager is hereby authorized to award a three-year franchise
agreement extension with Alaska Waste — Kenai Peninsula LLC for the collection and disposal
of garbage, rubbish and waste, expiring December 31, 2022.
Section 2. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this
25th day of February, 2019.
THE CITY OF SEWARD, ALASKA
•
416
David Squires, May
AYES: Towsley, Seese, Osenga, McClure, Squires
NOES: Lane
ABSENT: Horn
ABSTAIN: None
ATTEST:
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Brenda J. Ba lou/ MC
City Clerk
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FISCAL NOTE: Based on estimated Consumer Price Index (CPI) increases, the City expects to
realize increased revenues from this franchise agreement of $300 per year.
Approved by Finance: ,!£&4:;;h.:)��
ATTORNEY REVIEW: Yes No X --------
RECOMMENDATION: Approve Resolution 2019-017 authorizing the City Manager to award
a three-year franchise agreement extension with Alaska Waste - Kenai Peninsula LLC for the
collection and disposal of garbage, rubbish and waste expiring December 31, 2022.
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Sponsored by: Hunt
Wm CITY OF SEWARD, ALASKA
RESOLUTION 2012 -068
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROVING A FRANCHISE FOR THE COLLECTION AND
DISPOSAL OF GARBAGE AND REFUSE WITH ALASKA WASTE - KENAI
PENINSULA, LLC, SUBJECT TO APPROVAL BY THE VOTERS OF
SEWARD AT THE OCTOBER 2, 2012 REGULAR CITY ELECTION
WHEREAS, the Seward City Charter ( "Charter ") and Code of Ordinances ( "Code ")
provides for the sanitary, economic, and efficient collection and disposal of garbage, rubbish, and
waste material in the City and its service area, and permits, pursuant to such Charter and Code and
voter approval, the use of a contractor to provide such services; and
WHEREAS, the City of Seward ( "City ") currently contracts with Waste Connections of
Alaska, Inc. dba Alaska Waste — Kenai Peninsula LLC, for the collection and disposal of garbage
and refuse, with said contract set to expire December 31, 2012; and
WHEREAS, the City solicited a request for proposals to provide solid waste collection
services, and received three responsive and responsible proposals, and based on the scoring of those
proposals, the administration recommends approval of a contract with Alaska Waste — Kenai
ift Peninsula, LLC, subject to voter approval at an election to be held on October 2, 2012, and subject to
successful negotiations between the City and the proposer; and
WHEREAS, the administration recommends entering into a seven -year contract with an
option to extend for up to three additional years, subject to approval by the City Council; and
WHEREAS, this franchise agreement provides for automatic annual adjustments in the Rate
Schedule based on 140% of the CPI', with such automatic increases not subject to further approval,
and with all other changes to rates and conditions of service subject to City Council review and
approval; and
WHEREAS, the agreement provides for new services such as a bulky -item curbside pickup service
for appliances and furniture, and through a levelized rate schedule, encourages the use of bear -
resistant containers and bear - resistant dumpster lids to reduce bear /human/garbage encounters, and
includes a franchise fee to be paid to the City, equal to 3% of the gross revenues collected by the
contractor; and
1 Consumer Price Index (CPI) means the consumer price index (CPI -U), all items, 1982 - 1984 =100 for urban wage
earners and clerical workers, Anchorage, Alaska area, as published by the U.S. Department of Labor, Bureau of
Labor Statistics (initial release). The 2014 Rate Schedule will be adjusted utilizing the CPI data from the calendartroy
year 2012.
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CITY OF SEWARD, ALASKA
RESOLUTION 2012 -068 apoil
WHEREAS, approval of a seven -year franchise, with an option to extend for an additional
term of up to three years, provides sufficient incentive for the contractor to make improvements to
the local fleet of available equipment, trucks, and container inventories, and to address issues such as
the availability of bear - resistant garbage cans and bear - resistant dumpster lids, and to consider future
options for the community to encourage and facilitate recycling efforts; and
WHEREAS, granting of a franchise for a public utility requires the affirmative vote of a
majority of electors voting on a proposition to approve such a franchise, and
WHEREAS, the Seward City Council finds that it is in the public interest to provide for
quality, local garbage and refuse collection and disposal services, and therefore opts to place this
proposition before the voters of Seward at the regular election of October 2, 2012.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. A franchise agreement between the City of Seward and Alaska Waste — Kenai
Peninsula LLC, for the collection and disposal of garbage and refuse, a copy of which is attached
hereto and incorporated herein by reference, is hereby approved subject to voter approval, in
accordance with Section 4 below.
Section 2. The city manager is authorized to finalize and execute such additional
documents as necessary to finalize the franchise agreement and to agree to revisions to the
documents so long as the essential terms and conditions of the franchise agreement are not
substantially changed.
Section 3. The city manager is authorized to include collection of a franchise fee in the
amount of 3% of gross revenues collected from the franchisee, and that amount is considered
adequate compensation for the maintenance and use of City streets and alleys in the conduct of this
contract. The City Council will also retain rate approval as provided in the City Charter and Code.
Section 4. At the regular municipal election to be held on October 2, 2012, the City shall
submit to the qualified voters of the City the question of approval of the franchisee agreement noted
above. An affirmative vote of a majority of the qualified electors voting on the proposition shall be
required for approval of the franchise agreement.
d
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CITY OF SEWARD, ALASKA
RESOLUTION 2012 -068
ir...
Section 5. The proposition shall be substantially in the following form:
Proposition No. 2
FRANCHISE AGREEMENT FOR THE COLLECTION AND
DISPOSAL OF GARBAGE AND REFUSE
Do you approve a seven -year franchise agreement with Alaska Waste — Kenai
Peninsula, LLC for the collection and disposal of garbage and refuse? The
franchise agreement contains an option to extend for up to an additional three
years. The agreement allows for costs to be adjusted annually based on 140%
of the Consumer Price Index. The agreement provides an opportunity for
periodic rate reviews with all other consumer rates to be set by resolution of the
City Council.
Yes No
A "Yes" vote approves a seven -year franchise agreement with Alaska Waste —
Kenai Peninsula, LLC for the collection and disposal of garbage and refuse,
him with options to extend the agreement for up to three additional years.
A "No" vote does not approve a seven -year franchise agreement with Alaska
Waste — Kenai Peninsula, LLC for the collection and disposal of garbage and
refuse, with options to extend the agreement for up to three additional years.
Section 6. This resolution shall take effect immediately upon adoption. The franchise
agreement shall not be effective until it has been approved by a majority of the electors voting on a
proposition to approve the same. The franchise agreement shall go into effect January 1, 2013 or as
soon thereafter as practicable.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13
day of August, 2012.
THE CITY OF SEWARD, ALASKA
David Seawa ayo
il...
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CITY OF SEWARD, ALASKA
RESOLUTION 2012 -068
AYES:Valdatta, Bardarson, Keil, Shafer, Casagranda, Terry, Seaward
NOES:None
ABSENT: None
ABSTAIN: None
ATTEST:
C &
ohanna Kinney, CMC
jeity Clerk
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Council Agenda Statement
r sett,Meeting Date:August 13, 2012
Through:James Hunt, City Manager
41 :AS• P
From:Kristin Erchinger, Finance Director
Agenda Item:Approving Franchise Agreement for Solid Waste Collection Services with
Alaska Waste - Kenai Peninsula, LLC
BACKGROUND & JUSTIFICATION:
The City of Seward, through its Charter and its Code of Ordinances, provides for the collection
and disposal of garbage and rubbish. To that end, the City previously applied for, and was
granted, a Certificate of Public Convenience and Necessity by the Regulatory Commission of
Alaska, for its refuse utility (Certificate U- 99 -22).
Since at least the early 1970s, the City has utilized a private contractor to provide refuse services
in Seward. The City Code requires that a franchise for a public utility be approved by a majority
of voters in a regular City election.
Over the past 38 years, the City has issued Requests for Proposals for solid waste collection four
times, as follows: 1974, one respondent; 1980, one respondent; 1983, two respondents; 1987,
one respondent. In 1987, the City contracted with Seward Service (Herman Leirer), and the
business was subsequently assigned five times, as follows: in 1989 to Jason Enterprises; in
1998 to USA Waste of Alaska; in 1999 to Peninsula Sanitation, a division of Waste
Management, Inc.; in 2005 to Alaska Pacific Environmental Services Anchorage, LLC dba
Alaska Waste - Kenai Peninsula LLC; and in 2012 to Waste Connections of Alaska, Inc.
The most recent franchise agreement was approved by the voters on October 5, 2010 for a period
of two years, with a request by the City Council to solicit Requests for Proposal at the end of the
term. The current contract for refuse services expires December 31, 2012.
The City solicited a Request for Proposals for solid waste collection services and received three
responses. All three proposals were considered responsive and responsible. The following
criteria and associated weightings were used to score the proposals: Proposed rates = 30 %;
Firm's technical qualifications (fleet, container inventory, etc.) = 20 %; Firm's experience = 15 %;
Bear Awareness = 10 %; Litigation History = 10 %; Contract exceptions = 10 %; and Customer
service and billing = 5 %. The proposals received the following overall scores:
Alaska Waste - Kenai Peninsula, LLC Score = 88.52
Alaska Pacific Environmental Services I, LLC Score = 71.78
Mid State Truck and Trailer, LLC Score = 70.50
Based on the scoring of criteria, the administration recommends approving a franchise for the
collection and disposal of garbage and refuse with Alaska Waste - Kenai Peninsula, LLC
Alaska Waste "), subject to approval by the voters of Seward at the October 2, 2012 regular
City election, and subject to successful contract negotiations.
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A few highlights from the successful proposal: The RFP allowed for a new fee to be
implemented, based on standard waste management industry practice. That fee would have been
a fuel adjustment factor to be added to the bill each month based as a percentage of the services
charges on the bill (excluding taxes and surcharges), with an option to escalate each year based
on a percentage of the Producer Price Index for No. 2 Diesel Fuel. Alaska Waste opted not to
propose adding a new fuel adjustment factor, but to instead include all cost escalations as a
percentage of the annual Consumer Price Index ( "CPI "). Their proposal includes the following:1) initial rates are increased from the current Rate Schedule by approximately 25% for regularcansand7% for bear - resistant cans, effective January 1, 2013; 2) the Rate Schedule has been
amended to add a monthly charge for renting a dumpster from the Contractor (rent has been
charged previously, but that item was omitted from the schedule); 3) annual increases to the Rate
Schedule will be equal to 140% of the Consumer Price Index over the life of the contract; 4) a
new "bulky item pickup" service will be implemented at a minimum cost of $42.18 per item
small appliances, furniture, etc.); 5) incentivizes the use of bear - resistant garbage cans by
charging the same $2.00 per month charge for a leased bear - resistant can or a regular can; 6)
adds lockable dumpster lids; 7) continues the current practice of the contractor bearing
responsibility for billing customers and providing direct customer service; 8) the contractor
agrees to make available bear- resistant garbage cans and bear - resistant dumpster lids for sale or
lease, to anyone interested in obtaining one; and 9) provides for a seven -year term with options
to extend for an additional term of up to three years at the discretion of the City Council.
Alaska Waste's base price for monthly service will be $26.91 (up from the current $21.53), and
this represents the median quoted rate (quotes ranged from $20.88 to $41.75) of the three
proposals.
Waste Connections of Alaska, Inc. (dba Alaska Waste — Kenai Peninsula, LLC) became the
City's current refuse franchisee, upon completion of a buyout of the City's previous contractor,
and upon the City Council's approval of consent to a change in ownership, approved by
Resolution in February, 2012. Since that time, the contractor has provided safe and reliable
service to the residents of Seward, and the City has received very few calls regarding service.
The contractor has been responsive to City staff and we have developed a positive working
relationship. The administration recommends approval of this franchise agreement, for final
approval by the voters of Seward at the October election.
CONSISTENCY CHECKLIST:Yes No N/A
1 Comprehensive Plan: Page 11- Community Appearance, Page 13 -City XGovernment, Page 26- Public Facilities.
2. Strategic Plan: Page 4- Nautural, Promote a Safe Community -Page 18 X
3. Other (list):X
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ATTORNEY REVIEW: YES lL No�
FISCAL NOTE:
Approval of this contract will result in an increase in a residential customer's monthly standard
charge of $5.38, representing an approximate increase of 25% (from $21.53 to $26.91 per
month). The City will collect a 3% franchise fee based on gross revenues collected, estimated at
approximately $20,000 per year. The franchise fee is intended to compensate the City for
maintenance and use of its roads and alleys, per Seward City Charter § 13.5(7). The agreement
allows further annual rate reviews, whereby the Seward City Council is required to approve
refuse rates charged by the contractor.
RECOMMENDATION: Council approve Resolution 2012 -068, approving a franchise for the collection and disposal of
garbage and refuse with Alaska Waste -Kenai Peninsula, LLC, subject to approval of the
voters at the October 2, 2012 regular city election, and to successful contract negotiations.
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FINAL CERTIFICATE OF RESULTS FOR THE
CITY OF SEWARD REGULAR MUNICIPAL ELECTION
HELD OCTOBER 2 2012
lofty
The City Canvass Board has completed their review of all absentee and
questioned ballots of the City of Seward Regular Municipal Election held
October 2 2012 Their totals are
Note Total Counted plus Total Rejected Total Voted j
Report of Absentee and Questioned Ballots
Absentee ballots voted 32
Questioned ballots voted 6
Special Needs ballots voted 0
Total Voted 38
Rejected
Not registered registered too late 1
or registered out of City 0
Form not completed properly 0
Signed witnessed after election day 0
Total Rejected 1
4040 Counted
Absentee 32
Questioned 6
Special Needs 0
Total Counted 38
The Election Day results after canvassing are as follows
Three Twoyear Council Seats
Election Day Votes After Canvass Votes Total Votes
Jean Bardarson 231 25 256
Marianna Keil 210 23 233
Ristine Casagranda 181 19 200
Kenneth Blatchford 175 17 192
Tim McDonald 89 11 100
Write Ins 5 2 7
2325
Final Certificate of Results
Regular Municipal Election
Tuesday October 2 2012
Page 2
Proposition 1
ESTABLISHING AND ADOPTING A FINANCIAL DISCLOSURE FORM AND
GUIDELINES FOR THE CITY OF SEWARD AND EXEMPTING MUNICIPAL
OFFICIALS FROM THE REQUIREMENT OF STATE FINANCIAL DISCLOSURE
LAWS Shall the City of Seward establish and adopt its own financial disclosure form
and provisions for the Mayor City Council Planning and Zoning Commission and the
City Manager by requiring substantially the same information as the Alaska Public
Offices Commission required prior to 2007 and be exempt from Alaska Statute 3950
the Alaska Public Officials Financial Disclosure Law
Election Day Votes After Canvass Votes Total Votes
YES 204 21 225
NO 120 14 134
Proposition 2
FRANCHISE AGREEMENT FOR THE COLLECTION AND
DISPOSAL OF GARBAGE AND REFUSE Do you approve a seven year franchise
agreement with Alaska Waste Kenai Peninsula LLC for the collection and disposal of
garbage and refuse The franchise agreement contains an option to extend for up to an
additional three years The agreement allows for costs to be adjusted annually based on
140 of the Consumer Price Index The agreement provides an opportunity for periodic i
rate reviews with all other consumer rates to be set by resolution of the City Council
Election Day Votes After Canvass Votes Total Votes
YES 219 27 246
NO 107 7 114
A total of 338 people voted at this election plus 38 counted absentee votes 376 Total
Upon completion of the canvass it is our opinion that the attached summary of election
returns compiled above accurately reflect the final totals for the Regular City Election
held October 2 2012
Dated this 4th day of October 2012
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