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WARD: Citywide
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Approval to renew Advanced Disposal Commercial Sanitation Contract (early renewal) from March 1, 2015 - February 28, 2020.
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ISSUE: Original contract was signed March 1, 2010 with an auto renewal clause for 5 year extensions by mutual agreement. Pricing was held steady for the first 2 years of the contract with 2-3% increases in years 3,4,& 5. In consideration of renewing a few month early for an additional five years per the terms, Advanced Disposal offered to hold the first 2 years pricing with no increases until year three (3), meaning we would have the same pricing March 2014 - February 28, 2017. For this early renewal the city will achieve a cost avoidance savings of $58,000.00 each year for 2 years.
BACKGROUND: Following a thorough RFP process, the City awarded Commercial Sanitation services contract to Advanced Disposal, LLC, starting March 1, 2010. The contract Term is for an initial five year term with options to renew for two additional five year terms if both parties agree. Pricing was held firm the first two years and increased 2-3% in years three through five. In March 2014, the City entered into its fifth year of the agreement and was approached by Advanced Disposal about renewing somewhat early for the next five year term. In turn, Advanced Disposal offered to hold prices firm for the first two years of the new five year term so that prices starting March 1, 2014 would remain the same until March 1, 2017. Years 3, 4 and five would experience a 2-3% increase and all price schedules are included in the Extension Agreement. The firm pricing will result in an cost avoidance savings of $58K+ annually. All other contract terms remain the same. Advanced Disposal has been an excellent service provider. Staff conducts quarterly meetings with the Advanced staff and this had resulted in a good, solid working relationship. Advanced also supports several City events as a sponsor i...
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