CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Option Year One to Sole Source Procurement 21-094, Leaf Disposal Services, to BioAg for an amount not to exceed $100,000 (Item 1 of 2)
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DEPARTMENT: Department of Public Works
SUBMITTED BY: Richard Dublinski, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The other related item on the City Council agenda is:
• 23-0440 - Adopt the resolution authorizing the City Manager to enter into an agreement to lease two parcels of City property to Drendel Farms for leaf disposal
The Department of Public Works (DPW) manages the City’s annual Bulk Curbside Leaf Collection Program and provides two leaf collection options:
1. a free bagged leaf program from the end of October through mid-December
2. a six-week bulk curbside leaf collection which provides residents with three opportunities to rake leaves to the curb for pickup and disposal by DPW
The Bulk Curbside Leaf Collection Program is intended to augment, not replace, the bagged program and enhance leaf removal options for the community. It begins six weeks prior to Thanksgiving and ends after the third and final pickup is complete, or when winter weather prevents DPW from picking up leaves.
DPW annually collects between 45,000 and 55,000 cubic yards of leaves during the six- week program depending on weather and early leaf drop. The collected leaves must be disposed of in an environmentally appropriate way compliant with Illinois EPA regulations.
DPW currently uses the following two disposal methods for leaves:
1. Leaf Disposal on Local Farm Fields
Historically, a portion of the leaves picked up by City crews has been hauled to designated local farm land where a contracted third party spreads, treats and tills the leaves into the farm fields. However, the availability of local farm fields has become scarcer over the years. On April 7, 2021, the City Council approved the award of Contract 21-094, Leaf Disposal Services, to BioAg, Inc. for a two-year contract term and authorized the City Manager to enter into a two-year lease agreement for the disposal of leaves on three City-owned parcels.
The term of the agreement is May 1, 2021 through April 30, 2023 with three additional option years available.
2. Leaf Disposal Outside of the Area
On May 3, 2022, the City Council approved the award of Contract 22-126, Leaf Disposal, to Creekside Compost, LLC and Steve Piper and Sons for an amount not to exceed $565,000 and for a two-year term.
The purpose of this contract is to provide services including, but not limited to, the disposal of up to 45,000 cubic yards of leaves collected from the City’s curbside leaf collection program. Under this contract, DPW crews delivers collected leaves to designated City owned properties and contractors take them to their property for composting.
The initial term of the contract is from date of award through December 31, 2023, with three one-year optional renewals.
DISCUSSION:
Weather conditions play a significant role in completing fall leaf pickup collection operations. Wet conditions limit the ability of contractors to spread leaves on farm land and snow impedes collection. Additionally, there is always a concern regarding the availability of farm land due to development.
In order to have greater flexibility in the City’s leaf collection and disposal operations, and to ensure all leaves collected are properly disposed of (per the EPA) by Thanksgiving, DPW recommends:
1. The City Council approve the first option year for Sole Source Contract 21-094 for the disposal of leaves on local farm fields. This will supplement the existing contract for leaf disposal outside of the area (Contract 22-126)
BioAg performed well during the initial term of the contract. In 2022, BioAg disposed of approximately 20,000 cubic yards of leaves for the City at a cost of $5.00 a yard for the first 10,000 cubic yards and $4.50 per yard for the next 10,000 cubic yards.
Based upon the vendor’s performance, DPW recommends extending the contract for the first option year. BioAg has agreed to maintain rates and terms provided for under the current contract.
The term of the first option year is May 1, 2023 through April 30, 2024 with two additional option years available. The agreed upon unit cost will range from $4 - $5 depending on the volume that they receive from the City: $5.00 per cubic yard for the first 10,000 cubic yards, $4.50 for the next 10,000 cubic yards, and $4.00 for anything over 20,000 cubic yards.
2. The City Council authorize the City Manager to enter into a new lease agreement for properties on Plainfield/Naperville Road and the southwest corner of 91st Street and Wolf’s Crossing Road for a nominal fee, contingent on the City being allowed to deposit its leaves on the parcels for disposal (File #23-0440)
Specifically, the City has identified the following two parcels of vacant City owned agricultural property upon which leaves may be spread for disposal.
o 3816 Plainfield/Naperville Road (15.9 acres)
o The southwest corner of 91st Street and Wolf’s Crossing Road (17.5 acres)
These parcels are a strategic piece of DPW’s leaf disposal operations because of their convenient locations. The existing lease agreement with Drendel Farms expires on April 30, 2023. The existing agreement included the parcel on the southwest corner of Route 59 and 103rd Street. This parcel has been removed from the new lease agreement.
Drendel Farms has been leasing the land since 2011 and has met all the terms of the existing lease, including accepting leaves from the bulk curbside leaf collection program and maintaining the site.
The term of the lease is May 1, 2023 through April 30, 2026.
FISCAL IMPACT:
CIP #: N/A
Leaf disposal services are budgeted to the refuse and recycling service account below. A total of $343,750 has been budgeted for the disposal of 45,000 cubic yards of leaves in 2023. The requested award of $100,000 is within the budgeted amount for this expense.
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Account Number |
Fund Description |
Total Budget Amount |
|
31251100-531311 |
General Fund |
$393,750 |