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Amendment and Agreement with Great Western Reclamation <br /> December 7, 1992 <br /> Page 6 <br /> 2 . City bin service provided free of charge. <br /> Presently city operations generate refuse at City parks <br /> and other City facilities which is paid for by the City. <br /> This agreement provides that all bins utilized by the <br /> City be collected, recycled and disposed of free of <br /> charge. This is estimated to reduce City expenditures <br /> (primarily in the City's general fund) by $138 000.. per <br /> year. <br /> • <br /> 3 . City roll-off service provided at a discount. <br /> The agreement reflects a reduction in the City' s cost for <br /> roll-off service. The City will be responsible for gate <br /> fees only. Collection and recycling costs will be borne <br /> by Great Western. This is estimated to reduce City <br /> expenditures by $50, 000 per year. <br /> Roll-off boxes for neighborhood cleanups will be provided <br /> by Great Western at a 30 percent discount. <br /> One of the alternatives considered by staff was to competitively <br /> bid the agreement. Competitive bidding is not recommended at this <br /> time for the following reasons: <br /> 1. The city is presently receiving quality service. <br /> 2 . The bidding period specified in the present agreement of <br /> six months is too short. The requirements of <br /> implementing an extensive recycling program utilizing a <br /> MRF and arranging a composting program complicates the <br /> bidding process. In addition, more time is needed for a <br /> company to secure enough equipment to begin operating an <br /> account this size. Other cities that have gone to <br /> competitive bid have required 12 to 18 months to complete <br /> the process. This new agreement will provide the City 12 <br /> months at the end of its term in which to bid the <br /> contract, if desired. <br /> 3 . The City needs to keep residential and commercial <br /> collection combined to effectively place responsibility <br /> for compliance with AB 939 with one refuse contractor. <br /> 4 . A large firm is required to handle an account of this <br /> size. There are only two or three companies in the area <br /> that may have the capacity to meet the requirements of <br /> this contract. <br /> 12D 146 <br />