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EQEC 01/17/2012 - 31313MINUTES Environmental Quality and Energy Commission ����F Tuesday, January �7, zo�z �t����t Call to Order Chairperson Velin called the meeting to order at 7:00 p.m. Members Present Members Absent Others Present: Courtney Ehlers, Todd Olin, Rich Svanda, and Jack Velin Paul Westby, Jonathan Bonkoski and Tina Nelson Rachel Harris, Environmental Planner Tom Chovan, Allied Waste Services Mike Berkopec, Ace Solid Waste Randy Triplett, Ace Solid Waste Pam Reynolds, resident APPROVAL OF NOVENIBER 8, 2011, ENVIRONNIENTAL QUALITY & ENERGY COMMISSION MINUTES: MOTION by Mr. Svanda, seconded by Mr. Westby, to approve the November 8, 2011, Environmental Quality & Energy Commission minutes. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON VEL1N DECLARED THE MOTION CARRIED UNANIMOUSLY. New Business Curbside Recycling Proposals Rachel Harris explained the process that the City completed to solicit proposals for curbside recycling services. Two proposals were received. One from Allied Waste Services, and one from Ace Solid Waste. Staff had requested proposals on both two-sort and single sort services. Only Ace had submitted a proposal to continue the two-sort recycling system, but the cost proposed could not be accommodated in the City's budget. Ms. Harris explained that the City used a point ranking system to rate the various features the City desired in its contracted recycling services. Besides looking at the initial cost of the service, the City staff analyzed what the net contract costs would be at the end of the seven year term proposed by each service provider. When staff looked at the long term costs of each proposal, it became evident that it was very difficult to predict which proposal would be less cost due to the unknown of future curbside revenues, making it impossible for the City to determine which proposal would best serve the City' economic situation of not being able to adjust utility billing fees to match current economic conditions. In addition, it was difficult for the City to qualify for the total level of grant funds it was allotted each year by the County under a contract that offered revenue sharing. Therefore, staff asked each proposer to resubmit their proposal taking the revenue sharing option out of the proposal. This delay is why the EQE Commission's meeting MINUTES Environmental Quality and Energy Commission ����F Tuesday, January �7, zo�z �t����t was delayed one week beyond the regular meeting date. Upon re-submittal of the proposals, Allied Waste's proposal was the only one that satisfied the City's cost criteria. Allied proposed a seven-year, every-other-week, single-sort service for a starting monthly per household rate of $2.35 and increasing each year to a rate of $2.61 in the final year of the contract. Chair Velin invited the contractors present to explain their proposals. Mike Berkopec, Ace Solid Waste, asked if the City had a reserve. Ms. Harris explained the City is not allow to carry over funds from one year to the ne�t, according to County funding policy. Mr. Berkopec commented that he was shocked when he received the request from staff to resubmit his proposal that staff did not see the value in his company taking over the recycling day drop off events. Tom Chovan, Allied Waste, commented that his company submitted two proposals, being respectful of the City's Charter restrictions, offering a 68-gallon, single sort cart included in the price. Commissioner Olin commented that the Commission had discussed the cart size and materials collected at the previous meeting. He wanted to confirm the type of plastics that are being added. Tom Chovan said Allied was proposing to add #3-7 type plastic containers to the #1-2 type bottles collected now. Commissioner Svanda confirmed that Ace's proposal also includes #3-7 plastics that includes plastic tubs and lids. Commissioner Olin confirmed that plastic bags from retailers were also on the list to be included. Commissioner Ehlers asked if Ace would consider a two-sort collection system with two bins. It was confirmed that this option was not affordable for the City. Chair Velin asked which company currently held the contract. It was confirmed that Allied has held the City curbside recycling contract for the past 13 years. Commissioner Svanda commented that the Allied driver in his neighborhood is more like a runner than a driver. Commissioner Olin commented that the difference between the two proposals appeared to be mostly in the revenue that could be collected in the original revenue sharing option. With that removed, it appears that both companies offer the same service — single sort collection with carts MINUTES Environmental Quality and Energy Commission Tuesday, January �7, zo�z and additional plastics recycling. Considering the similarities, it makes sense to stay clear of the risk of revenue sharing. Commissioner Svanda summarized that Allied's proposal is the only proposal that meets the City's budget criteria. Ms. Harris confirmed that it was staff's recommendation to accept Allied Waste's proposal. Chair Velin asked if anyone had any additional comments about staff's review. Pam Reynolds asked if staff had considered adding organics to the program. It was explained that neither company was prepared to offer an organics recycling service at this time. MOTION by Commissioner Olin, seconded by Commissioner Svanda, to recommend that the City Council approve the curbside recycling proposal from Allied Waste Services. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON VEL1N DECLARED THE MOTION CARRIED UNANIMOUSLY. Old Business Local Road Research Board Study Update Ms. Harris said the LRRB garbage transportation study is expected to be available for review at the Commission's ne�t meeting. Ne�t Meetin�s/Announcements Ms. Harris announced that she has resigned her position with the City of Fridley to seek a new job elsewhere. Her last day with the City will be January 20, so this will be her last meeting as the Commission's staff liaison. MOTION by Commissioner Olin, seconded by Chair Velin, to express appreciation for Ms. Harris' service to the City. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON VEL1N DECLARED THE MOTION CARRIED UNANIMOUSLY, BUT DID NOT WANT TO ACCEPT RACHEL' S RESIGNATION. The Commission's ne�t meeting is scheduled for Tuesday, March 13, 2012, 7 p.m., Conference Room A (Main Level). ADJOURNMENT MINUTES Environmental Quality and Energy Commission Tuesday, January �7, zo�z MOTION by Commissioner Olin, seconded by Commissioner Svanda, to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON VEL1N DECLARED THE MOTION CARRIED AND THE JAN URARY 17, 2012, ENVIRONIVIENTAL QUALITY & ENERGY COMMISSION MEETING ADJOURNED AT 8:15 P.M. Respectfully submitted, Julie Jones Planning Manager