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HomeMy WebLinkAboutMay 11, 2009 wk sessionCITY OF COLUMBIA HEIGHTS Ala~~or Gary l,. Pelersnn Cuuncilmembcrs Nnbcr[ A. {Villinn,.r 590 401h Avenue NE, Columbia Heights, MN 55421-3878 (763)706-3600 TDD (763) 706-3692 Brucr n4nvrnck, ~an„rreru Uirlnn Visit arrr website a1: wwrv.ci.coh~mbia-heiekts.»vr.rss Hn[ce A"elrenhc,~ City Nlanagcr {Yr,l,cr l1. l~elr.rr ADMINISTRATION NOTICE OF CITY CO UNCIL MEETING to be held in the CITY OF COLUMBIA HEIGHTS as follows: Meeting of: COLUMBIA HEIGHTS CITY COUNCIL Date of Meeting: MONDAY, MAY 11, 2009 Time of Meeting: 6:00 P.M. Location of Meeting: CONFERENCE ROOM 1 Purpose of Meeting: CLOSED EXECUTIVE SESSION 1. Property Acquisition discussion - 675 37th Avenue Meeting of: COLUMBIA HEIGHTS CITY COUNCIL Date of Meeting: MONDAY, MAY 11, 2009 Time of Meeting: FOLLOWING EXECUTIVE SESSION Location of Meeting: CONFERENCE ROOM 1 P'.::'t^,o3e of NlePting; WORK SE.SSi(11V Review RFP -Refuse and Recycling The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the City Clerk at 763-706-3611 to make arrangements. (TDD/706-3692 for deaf or hearing impaired only) CITY COUNCIL LETTER Meeting of: 5/11/09 AGENDA SECTION': WORK SESSION ORIGINATING DEPARTMENT: PUBLIC WORKS CITY MANAGER ITEM: PURCHASE AGREEMENT FOR THE PROPERTY BY: K. Hansen ACQUISITION OF 675 37T" AVENUE, OWNED BY DATE: 5/6/09 IIILL"TOP TRAILER SALES BY: DATE: Background: The property located at 675 37`x' Avenue is owned by Hilltop Trailer Sales. It is open, vacant land with no improved or permanent buildings on the site. In 2006, the property ceased being used for trailer storage. The owners of Hilltop Trailer Sales approached Public Works in 2005 and again in 2007 to determine an interest in the potential acquisition of the property. Staff discussed acquiring this property under a contract for deed type purchase with the council on January 5`~', 2009, and was directed to negotiate further on the teens of the purchase. Analysis/Conclusions: ([~.-1C'/~Glt(>C-:~L) ,\'1:1:1 Rl~ 171~:It) The attached map shows the size of the rectangular property at 78,000 square feet or 1.8 acres with existing topography. The entire parcel is enclosed with a chain link fence with access on to Madison Place. The parcel surface is a combination of gravel and turf. Public Works proposed uses for the parcel identifying the following municipal needs and as shown on the attached layout: • Storm water ponding to meet NPDES Phase II requirements for Industrial -Municipal operations -requirements to be met in 1-3 years. • Covered storage for mixed salt/sand storage (now stored in the open) -enough for one season's use. City currently uses 700 ton per year average, salt. • Materials storage such as for water main breaks excavations, asphalt, concrete, wood chips and other Public Works excavations (currently being stored on other City owned land -City Parks and fornerly NEI). • Materials /Excavations storage for the annual water main cleaning and lining project and other construction projects. • Snow storage for snow removal operations. • Reserve Future Use (land lease or other) The neccl for this storage spacc ~~~ill intensify once the NPDES industrial permit requirements Lc_~in to he implemented as ~~~c ~~~ill lose storage spacc: to storm ~~~ater facilities. The owners of Hilltop Trailer sales approached the City prior to selling the parcel to other users. The property is now half leased by a tr-trcking company for short and long term storage of tractor-hailers and for short-term storage of automobiles. A cursory appraisal (estimate of value) was prepared by Watson Appraisal that estimates the value at $558,750. The value is in the range that the owners indicated they were looking at obtaining for the property at $600,000. Staff (City Attorley and with the owners and the rs at COUNCIL ACTION: CITY COUNCIL LETTER Meeting of: 5/ 1 1 /09 AGENDA SECTION: WORK SESSION ORIGINATING DEPARTMENT: PUBLIC WORKS CITY MANAGER ITEM: PURCHASE AGREEMENT FOR THE PROPERTY BY: K. Hansen ACQUISITION OF 675 37~~~ AVENUE, OWNED BY DATE: 5/6109 IIILLTOP TRAILER SALES BY: DATE: Continued -Page 2 $580,000, firm from the owners. The owners were not interested in a cash sale so the agreement reflects a down pa}nnent of $99,000 and the balance to paid over time. The term would be fifteen years with an initial interest rate of 6.5%. The interest rate would reset in 5 year increments tied to the prime rate with floors and caps. Staff has established $100,000 in the 2009 Central Garage fund for the down payment. The annual cost (beginning in 2010) would from the January terms would have been $51,175, annually for the contract term. The primacy funding source for the acquisition is the revenue from the recently completed Verizon cell tower at the Municipal Service Center, estimated at $21,000 per year, with a 3% annual adjustment. NEGOTIATED CHANGES (following Jan 5°i CC meeting): Staff has discussed /met on several occasions with the owners and negotiated the interest rate down from 6.5% to 5.5%. Staff revisited but the owners are firth on the purchase price of $580,000. An alternative form of purchase using bonding is now recommended as the forth of property transaction -reference attached letter from Bond Counsel Steve Bubul. This does have an additional advantage of further lowering the interest rate due to tax-exempt status and fitrther lowers the City's annual payment (now for debt service) from $51,000 to $46,996, annually. Funding: In addition to the Public Works cell tower revenue, a revenue source would be to lease 50% of the land area for the next 5-10 years for storage type use, or how the property is currently being used. Staff estimates that this type of lease could generate $21,600 to 27,000, annually ($1,800 to 2,250 monthly). The remaining payment of $7,500 is recommended by staff to be funded out of the Water Tower Antennae revenue, currently generating $28,285 annually. Bonds would be sold via ordinance and would require a 4/5 vote. The ordinance would need to be approved first, followed by the 30-day petition period, and then the purchase agreement could be approved with the Seller. Our le~~al c~~uncil has ~~~~inionc~l that a contlict of interest does exist and that C'~:uilcil Member \1~illiant; cann~~t ~~utc -but a~~~~ri~~~al still rc~~uires four ~~utes. In the event that a hon~l sale is hilt a~~pro~~ed.auth~~rire~l h~ the c<~uneil, it is lil:cly that the land ~~~~~ulcl be s~~ld to unulhcr ~~rivatc party. possihll~ unr r~t~the ~~~istin~~ tcn;ints. Recommended Motion: Move to authorize the Mayor and City Manager enter into a purchase acquisition agreement for the acquisition of 675 37`x' Avenue, owned by Hilltop Trailer Sales. Attachment: Draft Property Transaction (Bubul Letter) Site map (3) KH:kh COUNCIL ACTION: Offices in 470 U.S. Bank Plaza - , 200 Sourh Sixth Street 1\~linneapolts 1\~tinneapolis, T\dN 55402 ~" (612) 337-9300 telephone Saint Paul (G12) 337-9310 fax S[. CIOUC{ http://tvww.l.ennedy-graven.com C H A R T E R E D t\ffirma[ive Action, Equal Opportunit}' Emplo}'er STEPHEN J. BUBUL Attorney at Law Direct Dial (612) 337-9228 Email: sbubul~kennedy-graven.com March 6, 2009 Thomas Zappia Zappia &LeVaiu-~ Ltd. 941 Hillwind Road NE Suite 301 Minneapolis, MN 55432 Re: JRPmpertiesColumbia Heights Transaction Sale of 675 37t1' Avenue NE (the "Property") Dear Tom: As we discussed briefly on the phone last week, the City of Columbia Heights has no legal authority to acquire the above-identified Property from your client JR Properties ("Seller") under a contract for deed that extends longer than five years. I serve as the City's bond counsel, and have recommended an alternative structure that will, I believe, meet your client's goals. The proposal calls for the City to replace the contract for deed with general obligation motes (the "GO Notes"), which the City may issue under its City Charter subject to certain conditions. The GO Note is a "bond" or "obligation" under Minnesota law, to which the City pledges its full faith and credit. While it is more conunon for bonds to be issued to investors, and the proceeds used to acquire property, in this case the bond would be issued directly to the Seller, in consideration of receiving title to the Property. Under this scenario (described in Section 72 and Chapter 5 of the City Charter), the City Council (by four-fifths vote) must adopt an ordinance authorizing issuance of the GO Notes to the Seller. The ordinance is published, and if a petition is filed with the City Clerk within 30 days after the date of publication, signed by registered voters equal to ten percent of the vote at the last regular municipal election or 700 signatures, whichever is greater, the GO Notes may not be issued unless app>~oved by the voters. Assuming no petition is filed by the end of the thirty-day period, the sale of the GO Notes must occur within 60 days thereafter. - Our proposal is that, if your client agrees in principal to these terms, the Council would adopt the ordinance, wait for the 30-day petition period to expire, then promptly approve the purchase agreement with the Seller (which would effectively constitute "sale" of the GO Notes). 348164v1 SJB CL162-4~ City of Columbia Heights March 6, 2009 Page 2 of 3 Because the Property will be used by the City in part for its governmental purposes and in part for sale or lease to private parties, the City may issue the GO Notes in part as atax-exempt obligation and in part as a taxable obligation. The tax exempt obligation would caJ7-y a lower interest rate, reflecting the fact that interest on that obligation is excludable from Seller's gross income for federal and State income tax purposes. The exact allocation between the taxable and tax-exempt notes would depend on the exact areas used, but for purposes of discussion, the City believes the split would be close to 50-50. The overall purchase terms are summarized as follows: 1. Purchase Price: $580,000. 2. Earnest Money: $1,000, payable when purchase agreement is signed (after expiration of the 30-day petition period described above). 3. Delivered by City at closing (which is anticipated to be May 31, 2010) in exchange for wai7anty deed: Cash in the amount of $99,000. Two GO Notes: in the aggregate principal amount of $480,000, each payable over 15 years, as follows: Taxable Note A: Principal amount of $240,000, with interest at the initial rate of 5.5%, adjusted on each five-year amliversary based on the then-applicable rate for 5-year U.S. Treasury Notes plus one percent, provided that in no event will the adjusted rate exceed 7.5% or be less than 3.5%. Tax-Exempt Note B: Principal amount of $240,000, with interest at the initial rate of 3.75%, adjusted on each five-year amliversary based on the then- applicable rate of 5-year US Treasury Notes less .25%; provided that in no event will the adjusted rate exceed 5.75% or be less than 1.75°~0. Each Note is subject to prepayment on any date, with a premium equal 20% of the outstanding principal balance during the first ten years, and a premium equal to 10% of the outstanding principal balance thereafter. Sample payments schedules prepared by the City's financial advisor are enclosed, showing the aggregate payments, and the schedule for each of the separate notes, assuming the interest rate remains at the initial rate. We think this scenario is beneficial to both parties. The Seller receives a payment stream that is more secure than a contract for deed; the GO Notes are backed by the City's fiill faith and credit, which means the City is legally obligated to levy a tax against all taxable property in the City if necessary to make debt service payments. The Seller does not face the risk of a cancelled 348164v1 SJB CL162-45 City of Columbia Heights March 6, 2009 Page 3 of 3 contract and the need to re-market the Property at some fithu-e date. The City is able to reduce its cost by issuing one of the GO Notes on atax-exempt basis. While the Seller receives lower interest payments on that note, the effect is financially neutral to Seller because of the tax- exempt treatment of that interest. (We would also be prepared to provide the Seller a legal opinion as to the tax-exempt status of the Tax-Exempt Note B, as is customary in tax-exempt bond transactions.) Please let us know if these terms are generally acceptable to your client. If so, staff will recommend that the City proceed with the ordinance to issue the GO Notes, followed by a schedule to approve a purchase agreement embodying these terms as soon as possible after expiration of the 30-day petition period. These actions are of course subject to approval by the City Council. (The tet7ns for the interim lease of the Property by the city remain as described in prior correspondence on this transaction.) If you have questions about these tetnls, feel free to contact me. Very truly yours, Steph J. Bubul SJB cc: Kevin Hanson Angela Samec Mark Ruff, Ehlers & Associates 348164v1 SJB CL162-45 ~s~ ~''~r Public Works Dept. T. .~ ...# +~r- ~'~ ~ ~ *a~ •~'! ti~~ A~ ~ -~-, ^ ~ i _..~.,, ~ -~ ~ ~ ~~ ,, .~.~`~ _ ~ . ~,,, ~., ~ ~ _~ ~~ ~ ~ ~. ~~ '~ ~ -, f ~ ~ ~~ ~~ ~ T ~ ~~~ ~'' Existing Cold Storage ., :;~%;~%' :;~s. ..... _....,_ r ~. '" Y . ~.__ ~ ~ ~..~ ~ ~ ~~~ i` ~~ Covered Parking , for Industrial - ~ + Machinery . ' ..~ ~,~~ .~~ :~~.Y ~, .i•a~ti *' .fin ~;~, .,:., * r~ . HI .;...~^ ~.w. ti '"'~ `- Public Works Dept. r J J r 1 • i .~~ y . _ . .,,r ~~ ~~ l~~ Covered Parking for Industrial Machinery ~,,.. ,. ~ ~. ~- '~ " .~1. ~'. Additional SaIt/Sand Storage ~ ~ ~' - ~ Storm Resistant Cover for Materials Storage -ter ~~ ~ -•-~ = '7 w..,., .. ,~, t ~. ^ ~ ~,e '..~~ ~~ ~ ~ ~ ~ ~! ~~_~~ ~ ~ ~ ~.. `. "~ . Existing Cold Storage Existing Storage .- ~. Temporary Material Storage t _ , _ Hilltop Lot Water main break/ I ~ `- ~ (77,000 sq ft) Partial snow storage) ~- _ , ~ .;;~ ~„~ .~ .r ~'` , .. . ~.~...~ 1 " Public Works Concept Layout W~E Exhibit 3: Layout 2 City of Columbia Heights s ': ~~ ~~. :.~ .•~' ,VE N E 0 50 100 Feet CITY COUNCIL LETTER Meeting of: 5/11/09 AGENDA SECTION: WORK SESSION ORIGINATING DEPARTMENT: CITY MANAGER PUBLIC WORKS ITEM: Refuse and Recycling RFP - Draft vl BY: K. Hans BY: DATE: 5/7/09 DATE: Background: Below is a summary of our refuse services for residential properties through our cuiTent contractor: SERVICE LEVEL ADDITIONAL SERVICES 90 GAL Weekly collection w/extra bags, 1 Appliance, large items, furniture, yardwaste, weekly 2 sort recycling 60 GAL Weekly collection, 1 appliance, yardwaste, weekly 2 sort recycling 30 GAL Weekly collection, 1 appliance, yardwaste, weekly 2 sort recycling Dumpster (all) Weekly or more, 1 Appliance/rental unit, large items, furniture, weekly or more 2 sort recycling At the April 13'i' Council Work Session, staff reviewed the current service levels of our Refuse/Recycling contract with the council with anticipated rate changes from our current contractor, Allied Waste. Staff was directed to prepare an RFP to obtain proposals from the market. The 2009 prices the City pays are $14.71 /month for the average 90 gal service. This includes $2.11 for recycling and $1.68 for yardwaste. The remaining $10.92 includes service of the container and collection of extra bags, appliances, large items, and furniture. Apartments and other multi-dwelling (4 or more rental units) dumpsters pay various rates according to size and collections/week, with the most used being a 1 yard dumpster with 1/week collection at $12.55/month (which includes appliances, large items, furniture) and $1.67/stop for recycling. Analysis/Conclusions: Attached is an RFP that requests services matching our cuit•ent service levels. Staff believes it would be of value to obtain alternate bid prices that eliminates some certain additional services to reduce the expected increase in a new contract. Below are the proposals and reasons for the change. 1. Alternate I :Remove Multi-dwelling (4 or more rental units) from contracted City service: a. There are only 3 level of services for over 5,800 non multi-dwelling properties, but have over 19 different service levels for around 150 dumpster serviced properties. The city does not have a FTE employee dedicated to refuse/recycling and it is difficult to adjust for the various refuse issues these properties need. These properties could have more tailored service if they were allowed to acquire their own services. b. In addition, they do not provide much for recycling and the full load of refuse coming fiom those properties will most likely be figured into any future contract price. c. Most of the nuisance complaints concerning trash emanate fiom these type properties and the city will lose some revenue that is diverted to the CSO for enforcement, although this could be recovered with license fees and violation tickets. COUNCIL ACTION: CITY COUNCIL LETTER Meeting of: 5/11/09 AGENDA SECTION: WORK SESSION I ORIGINATING DEPARTMENT: I CITY MANAGER PUBLIC WORKS ITEM; Refuse and Recycling RFP - Draft vl BY: K. Hansen BY: DATE: 5/7/09 DATE: ~. A~tel-nat(: ~: 1ZC1110Ve f~4)~)hallC(:, ~al'ge It('lnti, tlll~llitlll'e, rUbl)1S~1, ally C\tl"a bags tr(lln 1hC 1'CgU~ttl" ~)il$l.' Sel'~`]CC C~large: a. Regular households do not use these services enough to warrant any future increased rate associated with collection and disposal of these services. In effect, most households are paying for the few to use this service. b. This should not be part of a future contract so the contractor does not figure the cost of collection and disposal of these additional items into the regular charges. c. Those properties that need to dispose of the item can haul to a collection site themselves or find a service provider for collection. It could be part of a service any future contractor may want to provide outside of the contract, but should not "lock" in residents and property owners into a City contract for this service. d. We may want to provide a larger container or allow a limited amount of extra bags and nebbish in a future contract. Staff is also slightly concerned about changing to a new contractor when a future contract is awarded. The costs to change out all the containers and ensuring a smooth transition for utility billing and residents would seriously tax the limited number of FTE hours dedicated to refuse and recycling. In addition, with the current economic environment we are concerned about change and the viability of a collector to stay in this business without disnlption. Recommended Motion: Review /Discussion of the Request for Proposals (RFP) for Refiise and Recycling Contract Se>vices Attachment: RPP - draft ~ 1 KH:kh COUNCIL ACTION: REQUEST FOR REFUSE AND RECYCLING SERVICES COLUMBIA HEIGHTS, MINNESOTA GENERAL REQUIREMENTS Interested firms shall submit their proposal no later than 3:30 P.M. on June 26'x', 2009 to the Director of Public Works, 637 38th Ave. N.E., Columbia Heights, MN 55421. In submitting a proposal to provide the required services, the following is required in order to expedite the review process by the representatives of the City. 1 The length of the proposal should not exceed three (10) pages, excluding figures, resumes of persom~el, fine experience, qualifications, site plans, etc. 2 If requested elsewhere in this RFP, provide separate schedules and fees for separate sections of work. 3 Ten (10) copies of the proposal should be addressed to the Director of Public Works/City Engineer, 637 38th Ave. N.E., Columbia Heights, Minnesota, 55421, to be received by 3:30 P.M. June 26~~', 2009. 4 If the firm is proposing to use subconsultants, the subconsultant should be identified along with how the work will be divided. 5 The City of Columbia Heights reserves the right to reject any proposal that does not comply with the requirements of this RFP. 6 The City Council will consider the proposals at their regularly scheduled meeting on July 13~' or July 27`'', 2009. II. SUBMITTAL REQUIREMENTS The Respondent is responsible for notifying the City as soon as possible, once a response to this RFP is submitted to the City, if circumstances cause the Respondent to be unable to perform the required services. A Respondent may reply to this RFP if they expect to be able to perform the required services by the expected start date of the contract (January 1, 2010). The Respondent must include a schedule indicating when required capabilities will be attained and confine by subsequent submittal when service requirements are achially obtained. III. Background The City of Columbia Heights (hereinafter referred to as the City) wishes to continue organized residential collection services within the City. Any qualified entity (hereinafter referred to as Contractor) who may wish to enter into a contrach~al agreement to provide comprehensive municipal solid waste collection services shall provide proof of qualifications to perforn the services defined to include at a minimum: garbage, refuse, yard waste, and recyclable collection, transport, and disposal (processing) for all single, duplex, triplex, and four-unit, six-unit, and eight-unit dwellings within the City limits. Currently apartments and manufactured housing (mobile homes) parks are not included in the contract. The City of Columbia Heights is an established community of approximately 18,600 residents with an area of 3.5 square miles. Residential areas comprise approximately 85% of the City. Presently the City has a contract with a single waste hauler for the collection, transportation, and disposal of garbage, refuse, and recycling for all single family through eight-unit dwellings. Service is currently provided to 5,800 households on a weekly basis. Over the next five years the City expects to add 50-100 households per year. The City Council wishes to maintain the highest level of service consistent with the service received in the past several years. The information provided in Appendix A reflects current contract language that will be the basis for the new agreement. The City's organized collection goals include the following: • Maintain the current high level of citizen satisfaction. • Maximize efficiency in solid waste and recycling collection. • Maintain (at least) the same level of comprehensive residential collection service. • Maintain the current collection schedule. • Provide for reliable collection services at competitive and predictable costs. • Provide community education and outreach efforts to increase recycling and waste reduction rates and promote a healthy environment. The Quote Form (Appendix B) provided indicates the services currently being delivered under the existing contract. Feel free to elaborate on how you would propose to deliver the services if you deem that additional infoi-~nation would be helpful. Also feel free to detail additional services and costs if you believe they may be an option a City such as Columbia Heights would benef t from. ATTACHED APPENDICES: APPENDIX A: Contract Specifications APPENDIX B: Collection Districts APPENDIX C: Quote Foi7ns APPENDIX D: Proof of Qualifications APPENDIX E: Reference Submission Foi7n APPENDIX F: Tonnage History APPENDIX A REFUSE AND RECYCLING REQUEST FOR PROPOSAL (llR:~FT) INTRODUCTION. The City of Columbia Heights is seeking proposals from qualified firms interested in providing refuse and recycling collection and disposal services to City government facilities and residential properties. The City of Columbia Heights is an equal opportunity employer and follows Minnesota Statues 181.59 and all applicable laws concerning discrimination. II. DEFINITION OF TERMS. a. City shall mean the City of Columbia Heights, Minnesota. b. Contractor shall mean any person, or the agent or employee thereof, with whom the City of Columbia Heights may contract to collect and dispose of garbage, combustible and non-combustible rubbish, recyclable materials and yard waste. c. Residence shall mean all single-family dwellings, double bungalows/duplexes, apartments, town homes, condominiums and other living quarters. A residence equals one stop. d. Multi-dwelling properties mean any residential property with snore than four separate living quarters including apartments. e. Garbage shall mean organic waste resulting from the preparation of food and decayed and spoiled food from any source. £ Rubbish shall mean all inorganic (non-hazardous) refuse matter that accumulates in the ordinary operation of a household including but not limited to stone, sod, earth, concrete, and building materials resulting from remodeling of the residence on the property at which these materials have been placed, along with carpeting, carpet padding, mattresses, chairs, couches, tables, and other such items of furniture. g. Recyclable Materials shall mean newsprint, glass bottles and jars, aluminum, steel and tin cans, cardboard, plastic beverage bottles, mix paper, phone books and magazines and any other materials as required by the City. h. Yard waste shall mean garden waste, leaves, lawn cuttings, weeds, and prunings. i. Brush shall mean branches, trees and shrubs of less than four (4) inches in diameter. j. Electronics shall mean televisions, stereos, VCR's, DVD players, computers, computer monitors, and any other device as defined by the State of Miru~esota. k. White Goods shall mean household appliances including but not limited to clothes washers and dryers, dishwashers, water heaters, garbage disposals, trash compactors, conventional and microwave ovens, ranges and stoves, air conditioners, dehumidifiers, refrigerators, and freezers. 1. Refuse shall mean garbage, rubbish, Yard waste, Blush, Electronics, and White Goods, and recyclable materials if discarded in the non-recycling container by the residence. in. Full service means collection of large household items, furniture, extra garbage, and rubbish that does not fit into the provided container (although still limited to tlu-ee garbage truck hopper loads) as part of the regular service charge. n. Limited Service means additional fee based service for the collection of large household items, furniture, extra garbage, and rubbish that does not fit into the provided container and is not part of the regular service charge. o. Livin quarter means single family home and each separate rental unit of a multi- dwelling property. III. SCOPE OF SERVICES. a. City Refuse and Recycling Background information. 1. The City of Columbia Heights is an established community with over 18,600 residents comprised of over 5800 residential households services, and over 120 multi-dwelling properties. The City of Columbia Heights chooses a single contractor for all refuse and recycling services that all residential property are required to utilize and is billed through the City Finance Utility Billing Department. 2. Current City of Columbia Heights ordinances require collection on the alley line for residences with alleys that are platted and open to traffic, and those properties without alleys collection at the curb in the boulevard adjacent to the street. Recycling, Yardwaste, Brush, Christmas Trees, electronics, and white goods are collected at the curb regardless of alley access. Mutli-Dwelling properties are required to use a dumpster service located at the rear of said property. b. Residence Refuse Collection and Disposal. 1. Provide weekly garbage and rubbish collection for all residences. The City prefers to maintain the same neighborhood collection schedule as cur-ently provided (See Appendix B). 2. Provide multiple levels of service and containers such as "limited service" 30 gal, 60 gal, and 90 gal "full service" options for collection on Non-multiple dwelling residences. In addition, provide a service level option and discount for seniors who are over 65 and are low income qualified (as determined by the City for utility billing purposes). See appendix B for summary of current service sizes. In addition, provide walk up service to retrieve and return containers from the storage location for the elderly and disabled. 3. Provide Multiple Dwelling properties an appropriate sized dumpster and a minimum of once per week collection (See appendix B) for summary of current dumpster sizes ~u~.~~ and number of collections/week. '~'~ ~'~`'~ ^rr~"'^""° Dumpster serviced properties may not have extra garbage or rubbish outside of the provided container, except for large household items such as white goods, filrliture items, carpet, mattresses, and other items from minor remodeling that are too large to fit into the dumpster (must call contractor in advance of collection). 4. Provide garbage/rubbish containers (Wheeled carts with attached lids) and dumpsters (meet federal standards with fly-tight lids), and maintain in good repair. Replace at no additional cost to the City or residences. 5. Provide Christmas tree collection (cut in less than 6' sections) for all residences during the month of January on scheduled neighborhood collection days. 6. Provide limited (one item per living quarter per year) white goods collection on one day of the week for all residences in the City, cur•ently Thursday. Additional white goods collection will not be part of the regular service charge and will be a fee based service. The contractor tracks the limits for each property. 7. Provide electronics collection (Cathode Ray Tubes and any other electrical bamled by law from garbage containers per MN Statute 115A.9565) on a fee-based service, not part of the regular service charge for all residences in the City. 8. Provide unlimited yardwaste and brush collection for all Non-multiple dwelling residences during peak months, currently April through November on scheduled neighborhood collection days. c. Rec}_cling_collection services. 1. Provide weekly multi-sort recycling collection for all residences on the same day as refuse collection for garbage and rubbish. Provide residence point collection for newsprint, glass bottles and jars, aluminum, steel and tin cans, cardboard, plastic beverage bottles, mix paper, phone books and magazines. 2. Provide a clearly marked recycling container for all residences, maintain in good repair, and replace at no additional cost to the City or residences. 3. Follow Anoka County and State of Minnesota requirements for the handling and disposition of recycling materials. 4. Provide Recycling collection and containers for the City of Columbia Heights Recycling Center for the same items collected at residence locations plus tires. Collection service will be "on call" usually once per month. 5. Provide a rebate or revenue share of recycling materials collected at the City recycling center. Provide information on amount and value of materials collected at the City recycling center. d. Non-Residential service: Provide garbage, rubbish, and recycling service (not resulting from construction activities) to City facilities (including special events, such as the amnial Jamboree) and to other entities as agreed to by Council resolution. See appendix B for summary of City and other facility requirements. e. Customer Service operations: 1. Provide a customer service mailing address, local or toll-free phone number, email address, and website. 2. Initially inform all residences of preparation requirements for collection of refuse/recycling material and provide a brochure or flyer for new resident packets from the City. 3. Provide means for residences to directly notify contractor if collection was missed. 4. Immediately inform residences concerning non-collection of refuse/recycling, due to improper procedures of refuse/recycling preparation or over the service level. 5. Provide means for residences to directly notify contractor of extra refuse above the service level, white goods, and electronics ready for collection. 6. Inform residences of procedures and cost quote for collection of refuse above limited service, extra white goods, and electronics. Residences must authorize the contractor to provide the additional service and contractor will bill residence directly. 7. Provide means for residences to directly notify contractor of service complaints. 8. Foitivard inquires concerning refuse service level starts/stops/changes, City utility bills, and nuisance complaints to the City. f. Other requirements. 1. Terns of contract shall be for 5 years with an extension of 3 years following positive survey results fi-om residents, City staff, and Council approval. City of COLUMBIA HEIGHTS REFUSE AND RECYCLING ELECTION DAYS LEGEND Refuse and Recycling Collection Days Monday Tuesday Wednesday Thursday Friday ~'~;`~ City Lnnits Water Features ~ Right-of--Way City of Hilltop l Minneapolis Water Works ~~,_ I ~.~ . Map Dafe: Juty 17, 2006 1:14,000 D 650 1,300 2,60D Feet Map Sources-Columbia Heights: ~ Public Works I ~ Engineering GIS ~ i City Manager Walter R. Fehst City Engineer Kevin R. Hansen cl rr ur fRIUIPY FRIDAY a nn r i or I I ult.l. nh I WEDNESDAY I I, ~,~ ~ ~~,,I ..~~.... ,~ -. oa r MONDAY nlm~nl~~rol.ls tw~a rruwolti<s) ~~Li"~ / ~ f~11~111~~~11~~ 7~L! iT~~i`J]~i19T~~u11~]~r~~%~~ y~l ~ ~,I, ~~~~ i~~i~f~~~riT///%lf ~~,~ 9 t ~_ L I Q1gislglsdagledltingtReruseCollactbnDisVicGs_0706_i ixl7,mxd 2. Hours of collection will be between 6 am and 6 pm Monday-Friday and no collection on holidays with collection deferred one day. Collection is authorized on Saturdays for holiday's that fall on a Friday. 3. Provide a dedicated manager available for immediate contact by City staff. 4. Provide information for city newsletter on refuse/recycling and major issues noted during collection. 5. Provide monthly reports for itemized refuse and recycling collection amounts. 6. Provide other reports as required by City, County, State, and Federal agencies. 7. The City is the only authorized entity that can change residences service levels and will notify the contractor of starts, stops, and changes. 8. Dispose of refuse following Anoka County and State of Mimnesota requirements. 9. The contractor shall provide all equipment, labor, and materials necessary to complete collection, transport, disposal, and processing of all refuse and recycling materials collected. IV. INSTRUCTIONS TO PROPOSERS. a. Complete a proposal with statement of service to describe your firm's operation. b. Complete the Quotation sheet for charges of service by level of service and container/dumpster size. c. Proposals must be in writing, submitted to Public Works, and received by 3:30 pm, June 26`x', 2009. d. After an initial evaluation of proposals by the City Manager and City staff, City officials may request an interview and presentation of proposal from applicant finalists. V. CONTENT OF PROPOSAL. Letter of intent. 1. Propose an offer to provide Refuse/Recycling services signed by owner or authorized representative. Identify availability and timetable the fine can accomplish for transition to full service operations no later than January 1, 2010. 2. Describe ability to provide insurance for refuse/recycling operations and that can indemnify the City against claims related to contracted operations. 3. Describe adherence to Minnesota State and Federal statues that prohibit discriininationbased on race, creed, color, etc. in the performance of public contracts. 4. Outline the contents of the proposal. b. Company background. 1. Describe the firm's profile and history. 2. Describe the firm's ability to perform the level of services requested. 3. Describe the firm's experience to perform the request level of service and 3 client references of similar sized operations. Statement of the services provided. 1. Describe how your firnz will conduct operations for collection and disposal of refuse and recycling. 2. Transition plan to conduct fiill service operations. 3. Highlight any modifications from requested Scope of Services. 4. Attach proposed charge quotation sheets (see appendix C). d. Fees and method of payment. 1. List any taxes, licenses, additional fees, exceptions, and surcharges that maybe charged beyond the quotation sheets. Must describe if additional charges will be monthly, quarterly, or annually applied. List the charges or a range of expected charges. If no additional fees, exceptions, or surcharges annotate as such. 2. Describe method of payment and procedure, i.e. monthly invoice that annotates number of services by each level, current service charge, and total. VI. PROPOSAL EVALUATIONS. a. Primary consideration. The total monthly cost to the City. This will be figured using the summary sheet numbers for each service level. The service level quotation sheets multiplied by the number of services as annotated on the summary sheets. In additional any additional charges outside of the quotation sheets. b. Other considerations. 1. Qualifications and verification of ability to perform the level of service requested. 2. Positive client reference reviews. VII. OTHER INFORMATION. a. All questions and correspondence should be directed to Jesse Davies, 637 38`h Ave, Columbia Heights, MN 55421. Phone: 763.706.3706 b. In order to ensure a fair review and selection process, fines submitting proposals are prohibited from contacting any City council members or city staff (other than the RFP contact and the Public Works Director) regarding these proposals. c. The City will not reimburse any expenses incurred by respondents including, but not limited to expenses associated with the preparation and submission of proposal and attendance at staff meetings. d. The City reserves the right to reject any and all proposals and to request additional information from any and all respondents. e. Schedule for proposals and contract completion. 1. May 29il', 2009: RFP advertisement. 2. June 10`'', 2009: Pre-submittal meeting @ 2:00 pm. 3. June 26`x', 2009: Proposals due prior to 3:30 pm. 4. June 29 -July 6°i: Staff proposals review, reference checks, validation of fire. 5. July 13`x', 2009: Council review of proposals. 6. July 13`h or July 27`'' :Council consideration of contract or establish interviews followed by contract consideration. 7. FALL 2009 TRANSITION PERIOD: Prepared to conduct operations. Please annotate your monthly charges at each service level as stated below. Non-Multiple Dwelling Residences Service Level 2010 2011 2012 2013 2014 Full Service Highest Level (~90 gal) Limited Service Mid-Level (~60 gal) Limited Service Lowest level (~30 gal) Limited Service Senior Rate (~30 gal) Recycling Charge Yard waste Charge Multiple Dwelling Residences Service Level 2010 2011 2012 2013 2014 1 Yard once/week Charge for each additional collection/week 1.5 Yard once/week Charge for each additional collection/week 2 Yard once/week Charge for each additional collection/week 3 Yard once/week Charge for each additional collection/week 4 Yard once/week Charge for each additional collection/week 6 Yard once/week Charge for each additional collection/week 2 Yard (compacted) once/week Charge for each additional collection/week Recycling Charge/unit ALTERNATE BIDS: Alternate Bid 1: Remove Multi-dwelling (4 or more rental units) ti-om contracted City service: Non-Multiple Dwelling Residences Service Level 2010 2011 2012 2013 2014 Full Service Highest Level (~90 gal) Limited Service Mid-Level (~60 gal) Limited Service Lowest level (~30 gal) Limited Service Senior Rate (~30 gal) Recycling Charge Yard waste Charge Alternate Bid 2: Remove Ahpliance, large items, fimliture, rubbish, and extra bags fi•oi~~ the regular base service charge: Non-Multiple Dwelling Residences Service Level 2010 ZO11 2012 2013 2014 Full Service Highest Level (~90 gal) Limited Service Mid-Level (~60 gal) Limited Service Lowest level (~30 gal) Limited Service Senior Rate (~30 gal) Recycling Charge Yard waste Charge TOTAL NUMBER OF SERVICES (SUBJECT TO CHANGE) RESIDENTIAL ACCOUNTS: 5030 90 UNLIMITED 365 60 Gallon LIMITED 123 32 GallonLimited 313 Senior Citizen Rate 5831 TOTAL MULTIPLE DWELLING ACCOUNTS: 55 (1) - 1 yard with 1 pick up per week 7 (1) - 1 yard with 2 pick up per week times 2 (1) - 1 yard with 3 pick up per week times 3 (2) - 1 yard with 1 pick up per week times 1 (2) - 1 yard with 2 pick up per week times 4 (1) - 1 1/2 yard with 1 pick up per week times 0 (2) - 1 1/2 yard with 1 pick up per week times 5 (1) - 2 yard with 1 pick up per week times 0 (1) - 2 yard with 2 pick up per week times 1 (1) - 2 yard with 3 pick up per week times 3 (2) - 2 yard with 1 pick up per week times 2 (2) - 2 yard with 2 pick up per week times 2 (1) - 3 yard with 1 pick up per week times 2 (1) 1 & (1) 2 yd with 2 pick up per week times 21 (1) - 4 yard with 1 pick up per week times 8 (1) - 4 yard with 2 pick up per week times 2 (1) - 4 yard with 3 pick up per week times 1 (2) - 4 yard with 3 pick up per week times 2 (1) - 6 yard with 1 pick up per week times OTHER FACILITIES: COMPACTED GARBAGE: Crestview Lutheran Home/The Boulevard (less $10 for own vat) (1) - 2 yd w/6 pu/week NON-COMPACTED GARBAGE: Heights Manor/3850 Stinson Blvd (less $10 for own vat) (1) - 2 yd w/2 pu/wk Royce Place (less $10 for own vat) (1) - 2 yd w/2 pu/wk Columbia Village (1) - 2 yd w/2 pu/wk CITY FACILITIES: ---------------- ---------------- Library/820 40 Avenue NE JP Murzyn Hall/530 Mill Street NE Top Valu Liquor/4340 Central Avenue NE TOP VALU LIQUOR 11/2241 37TH AVE NE Univ. Ave. Liquor/5225 Univ. Ave. NE City Hall/590 40 Avenue NE Huset Park (May -September) Municipal Serv. Ctr./637 38th Ave. NE Parkview Villa/965 40th Avenue NE (1) - 1 yd w/2 pu/week (2) - 4 yd w/4 pu/week (1) - 2 yd w/1 pu/week (1) - 1 yd w/1 pu/week (1) - 5 yd w/1 pu/week (1) - 4 yd w/3 pu/week (1) - 4 yd w/5 pu/week (1) - 20 yd w/1 pu/week (3) - 2 yd w/3 pu/week CITY OF COLUMBIA HEIGHTS TO: Kevin Hansen, Director of Public Works FROM: Kyle Morell, Public Works Administrative Assistant DATE: January 29, 2009 SUBJECT: Multi-Unit Recycling In our meeting with Allied Waste on January 22 we discussed ways to save money on our refuse and recycling contract. One of the options that was discussed was limiting the service to multi-unit dwellings. Currently the City of Columbia Heights offers refuse and recycling service to all residential units in the city. Our contract does not differentiate between single-family residential units and multi-unit residential units. It states that the contractor is required to complete collection of refuse and recycling from residential dwellings in the City. It goes on to define a Residence as "all single-family dwellings, double bungalows/duplexes, apartments townhomes, condominiums and other living quarters." This requires Allied Waste to pick up refuse and recycling from every residentially zoned property in the city. Armually the City enters into an agreement with Anoka County for SCORE funds. Tlus is money the County gives to Cities to help them meet their yearly recycling goals. The first component of the program is that each city develops a municipal recycling program that would give each household (including multi-uiut households) in the municipality the opportunity to recycle. The county defines "multi-unit households" as households within apartment complexes, condominiums, townhomes, mobile homes and senior living complexes. The county makes no mention of a size requirement for multi-unit households. In an effort to see how other communities in the area handle recycling at multi-unit dwellings I looked at the recycling contracts of some near by Cities. The following table the residential units that each city provides recycling service to. Ci Residential Unit Re uirements Blaine Single family, duplex, 4, 6, & 8 plexes, and townhomes Coon Rapids Open recycling, any apartment or duplex that has a rental license is considered a commercial property Fridley Residential Dwellings 1-4 Units, Multi-Unit Dwellings 5-12 units Minnetonka Single fanuly, townhomes, residential unit in a building up to 8 unts Ramsey Single family, duplex, townhomes (excludes apartments) Roseville Single fanuly 1-4 units (includes townhomes), Multi-fanuly 5 units or more As you can see there is prescient to restrict multi-unit recycling if we choose to do so. According to Utility Billing the City cuiYently have 156 Multi-Unit dwellings most of which have fewer than 10 units. Many of the apartment complexes in the City do not have room for recycling containers and only utilize the City's refuse service. They are not a significant contributor to the City's recycling toimage, 1.5% of all curbside pickup (20.57 tons out of a curbside total of 1288.53 tons in 2008).