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(April 9, 2019)

Mayor Jean Stothert has asked the Omaha City Council to approve a contract that will change and modernize Omaha’s solid waste collection system and will not require a tax increase to pay for the higher annual cost.

“This contract will impact every Omaha taxpayer for the next 10-20 years,” said Mayor Stothert.  “I have made a recommendation that provides solid waste, yard waste and recycling services at a price we can afford.”

The Mayor asked the Council to approve a contract with FCC Environmental for a two-cart system, one cart for weekly co-mingled yard waste and solid waste and a second for biweekly recycling.  96-gallon carts will be distributed to all homes, with an option to downsize to a 48-gallon cart after a trial period.

“We can implement this contract without a tax increase,” said Mayor Stothert.  

The FCC bid is the lowest and best value for the taxpayers. FCC is a worldwide company and has the required experience and resources to deliver the required services.  Communities including Houston, Dallas, and Palm Beach County, Florida contract with FCC for waste collection services.

 

SUMMARY OF COSTS:

The 2019 budgeted cost for solid waste collection is $14,900,000. The current contract was approved in 2006 and expires December 31, 2020. There is no option for renewal.

 

FCC BID BREAKDOWN:

2-CART CO-MINGLED WEEKLY TRASH AND YARD WASTE COLLECTION & BIWEEKLY RECYCLING

$22,691,046 annually

$7.7 million increase (52%) over current cost

Over the 10-year contract the total cost will be $226,910,460, which includes the cost of carts and the spring and fall cleanups

 

3-CART CO-MINGLED TRASH AND YARD WASTE COLLECTION & BIWEEKLY RECYCLING

$25,714,820

$10.8 million increase (72%) over current cost

The 10-year cost of a 3-cart co-mingled system is $257,148,196

 

3-CART SYSTEM SEPARATE COLLECTION OF YARD WASTE, SOLID WASTE AND RECYCLING $28,647,320

$13.7 million increase (92%)

The 10-year cost of a 3-cart separate collection is $286,473,196

 

The evaluation of the other bids shows the following:

West Central Sanitation submitted the lowest bid. The company does not have experience with a contract of this size.  The bid review committee expressed low confidence in West Central Sanitation’s ability to be successful with this contract.

Waste Connection of Nebraska and Waste Management submitted bids substantially higher than FCC Environmental.

"The cost of this new contract will be substantial but it will not be necessary to cut other services to pay for the contract we are recommending," said Mayor Stothert. 

The Mayor’s recommendation follows three years of study, public outreach, telephone surveys, equipment demonstrations, City Council input, a pilot program to test automated collection, and a competitive Request for Bids.  

Bid documents required all interested companies to bid on a collection system that uses automatic trucks and covered carts to collect garbage, recyclables, and yard waste.  Bidders provided costs for six options including a 3-cart system, 2-cart system, separate yard waste collection, yard waste and solid waste co-mingled, weekly and bi-weekly recycling collection.

The Request for Bids was released in October, four bids were received in January. The bids have been reviewed by the Public Works General Services Division, Law and Human Rights and Relations Departments, SCS Engineers and the working group named to complete the evaluation.  

A 2016 telephone survey conducted for the City of Omaha by SCS Engineers shows this option will meet the needs of the majority of residents.

A variety of free and low-cost additional services will be offered for yard waste collection that exceeds the basic service.

Citizens can request and pay for additional carts from FCC Environmental for $1.75 per week

($45.50 for biweekly recycling and $91.00 for weekly solid waste for the entire year).  FCC will also offer a sticker program for curbside collection of yard waste bags for $1.98 per bag.

Citizens can take yard waste directly to the Oma-Gro facility for no charge, yard waste will be accepted at no charge during the spring and fall cleanups.

In addition to the capabilities of FCC Environmental and their cost-effective bid, FCC will also have a fleet of CNG trucks ready on the first day of service.

"It's different, it's change. Change is not easy, we understand that. It will take time to get used to a new system," said Mayor Stothert.

The recommended contract is expected to be on the City Council agenda for first reading on April 16.  A public hearing will be held on April 23, a vote is possible April 30.

PREVIOUS STORIES ABOUT THE COLLECTION CONTRACT SELECTION:

https://mayors-office.cityofomaha.org/city-news/376-xxx

https://mayors-office.cityofomaha.org/city-news/362-city-seeks-bids-for-next-solid-waste-collection-contract

https://mayors-office.cityofomaha.org/city-news/256-mayor-announces-pilot-program-to-test-alternate-trash-collection

https://www.cityofomaha.org/latest-news/379-study-measures-economic-environmental-aspects-of-yard-waste-collection-and-disposal

 

 

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