Broken Arrow Municipal Authority
Meeting of: 06-04-2018
Title:
title
Approval of and authorization to execute an Extension of Agreement with WasteZero for the purchase and distribution of refuse bags
End
Background:
On January 21, 2014, the City Council approved a one year agreement with WasteZero to supply and distribute City refuse bags to residential refuse customers. The voucher program from WasteZero was put in place to help alleviate several logistical bag distribution issues while also increasing resident convenience. The program has an infrastructure that includes warehousing, inventory tracking and management, retail order processing and fulfillment, retail store delivery, accounting, and reporting, all managed by the program provider, WasteZero.
The current agreement, renewable for four additional one year terms, was awarded to WasteZero. The agreement provides vouchers for draw string bags to refuse customers in April and October with bags being available at multiple retail outlets for the duration of the period. The program has proven to be successful as it is popular with residents, has improved convenience and has removed distribution tasks from the workforce allowing them to remain focused on their core functions.
It is time now to consider renewing the agreement for another year. WasteZero is proposing a price increase for the coming year due to a rise in the raw material cost and additional distribution costs to help reduce stock outages. The total bag cost will increase from $0.1180265/bag to $0.1237265/bag, an increase of $0.0057/bag. The price includes all supplies, voucher management services, and all inventory, retail store distribution, communications (program website and toll-free customer service line), and other support services. The cost cap in the agreement will also rise to $552,375 due to an increase in account growth (# of households). This cap protects us in the event redemptions exceed estimates.
This year, WasteZero ...
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