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ITEM 9.b. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 2/17/2026 Meeting Type: Town Council Regular Meeting Submitting Department: Public Works Prepared by: Justin Weldy, Public Works Director Staff Contact Information: Phone: 480-816-5133 Email: jweldy@fountainhillsaz.gov Request to Town Council Regular Meeting (Agenda Language) CONSIDERATION AND POSSIBLE ACTION: Regarding the Solid Waste Agreement No.2026- 044 with Universal Waste Systems, Inc. Staff Summary (background) SOLID WASTE SERVICES AGREEMENT – CONTRACT NO. 2026-044 Background The current contract for solid waste services will reach its term limit on January 14, 2027, with no additional renewal options. To ensure continuity of solid waste and recycling services, the Town issued Request for Proposals (RFP No. 2025-008) for Solid Waste Services to serve residents within the corporate limits of the Town of Fountain Hills. The RFP sought proposals from qualified vendors to provide the following services: • Residential curbside solid waste collection and disposal • Bulk waste collection and disposal • Residential recycling services • Green waste services • Town facility solid waste services • Town facility recycling services • Special event solid waste and recycling services Proposal Review and Selection Two proposals were received: • Allied Waste Services dba Republic Services (current in-Town provider) – Total average score: 87.8 / 100 • Universal Waste Systems, Inc. (UWS) – Total average score: 88.8 / 100 A five-member evaluation panel reviewed and scored proposals in accordance with the Town’s procurement requirements. The panel included representatives from the Public Works Department and Town Administration with experience in contract oversight, utility operations, and service delivery. Following initial scoring, the panel conducted a detailed review of each proposer’s: • Qualifications and municipal experience • Service approach and route design • Staffing capacity • Equipment resources • Customer service plan • Financial stability • Ability to meet the Town’s operational and community needs Based on the evaluation results, Universal Waste Systems, Inc. was selected as the recommended service provider. Rate Structure and Financial Impact This recommended contract provides an immediate cost savings for residents. Current combined monthly rate (Republic Services): $20.14 per month Proposed combined monthly rate (Republic Services): $26.42 per month • Solid Waste:$15.71 • Recycling: $10.71 Proposed combined monthly rate (Universal Waste Systems): $19.98 per month • Solid Waste: $13.25 • Recycling: $6.73 The initial $19.98 combined monthly rate is fixed for the first two years of the contract.The competing proposal from Republic Services is approximately 32% higher than the recommended contract, and includes an annual 3.5% increase. Rate Adjustments All rates are fixed through January 15, 2029. No increases are permitted during this period. After January 15, 2029, annual rate adjustments may be requested based on CPI-U and documented disposal fee changes but are capped at five percent (5%) per year. Company Experience and Capacity Universal Waste Systems currently provides municipal solid waste services in parts of California, New Mexico, and Arizona including: • Arizona City – approximately 5,300 homes • City of Maywood – approximately 2,695 homes • City of South Gate – approximately 14,650 homes • City of Deming – approximately 5,679 homes This demonstrated municipal portfolio reflects the company’s operational capacity to manage residential programs comparable to or larger than Fountain Hills. Universal Waste Systems has confirmed that sufficient collection vehicles and equipment are reserved specifically for Fountain Hills service. The contractor will: • Provide cart delivery, maintenance, and replacement • Maintain reserve carts within Town limits for rapid deployment • Stage all necessary equipment prior to service commencement Contract Summary The proposed Solid Waste Services Agreement includes: • Residential solid waste, recycling, green waste, and bulk waste collection • Four (4) scheduled bulk waste collection events annually • Christmas tree collection and disposal services (seasonal program) • Town facility solid waste and recycling services • Full support of all Town special events with dumpsters and collection containers • Customer service, billing, reporting, and delinquent account procedures The agreement term would begin January 15, 2027, and continue through January 15, 2032, with the option for up to three additional one-year renewals. Service Levels and Customer Support Common Council questions often relate to service responsiveness and community support. The proposed agreement establishes: • Complaint response and resolution time of 24 to 48 hours • Defined missed pickup procedures • Dedicated customer service support • Community outreach and education • Support for Town-sponsored household hazardous waste and electronic recycling events In addition to weekly collection services, the contractor will provide: • Four bulk waste collection opportunities annually • Seasonal Christmas tree disposal options • Dumpster and recycling container support for all Town special events These service enhancements are included within the proposed rate structure. Green Waste Rates • Green Waste Collection Service: $7.50 per unit/month • Green Waste Processing and Marketing Rate: $3.98 per unit/month Additional Services • Additional Solid Waste Cart: $7.00 per unit/month • Cart Change Fee: $25.00 per cart • Non-Collection Day Service: $25.00 per unit/month • Bulk Waste Collection: $5.00 per 6 cubic yards • Bulk Waste Disposal: $3.98 per 6 cubic yards The contractor will bill customers in accordance with the rate structure established in the agreement. Transition Plan Universal Waste Systems will coordinate closely with the Town and the current provider to ensure no service interruption. Container exchanges will begin approximately 30 days prior to the contract start date, with all equipment staged in advance to ensure seamless implementation. Conclusion Award of Contract No. 2026-044 will allow the Town to continue managing its solid waste and recycling program while securing competitive pricing, expanded service support, defined customer service standards, and operational reliability. Universal Waste Systems, Inc. is prepared to provide comprehensive solid waste and recycling services beginning January 15, 2027, ensuring uninterrupted service and long-term program stability for Fountain Hills residents. Related Ordinance, Policy or Guiding Principle Public Works Mission Statement Risk Analysis Approval of Contract No. 2026-044 will ensure continuity of essential solid waste and recycling services; however, as with any long-term service agreement, there are potential risks that must be considered. Key risks include: • Service Transition Risk: A change in service provider may create temporary disruptions during the startup period, including container exchanges and route adjustments. This risk is mitigated through the contractor’s required transition plan and coordination with the Town and the current provider to ensure uninterrupted service. • Operational Performance Risk: Inadequate staffing, equipment failures, or missed collections could impact service reliability and customer satisfaction. The agreement includes performance standards, customer service response requirements, and Town oversight to ensure compliance. • Cost Escalation Risk: While rates remain fixed through January 15, 2029, future adjustments may occur. The agreement limits annual rate increases to a maximum of five percent (5%) and requires supporting documentation for any requested adjustments, providing long-term cost control. • Contractor Dependence Risk: Solid waste collection is an essential public service, and contractor non-performance could create public health and safety concerns. This risk is reduced through the competitive procurement process, evaluation of contractor qualifications, and the Town’s ability to enforce contract remedies if necessary. Overall, staff finds that the benefits of maintaining reliable solid waste and recycling services outweigh the identified risks, and the agreement provides appropriate safeguards to protect the Town and its residents. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of Contract No. 2026-044 with Universal Waste Systems, Inc. to ensure uninterrupted solid waste, recycling, green waste, and bulk waste collection services for Fountain Hills residents, Town facilities, and special events. Approval of this agreement will provide long-term service continuity beginning January 15, 2027, establish rate stability through January 15, 2029, and ensure the Town maintains effective oversight and management of its solid waste and recycling program. Suggested Motion MOVE TO approve Contract No. 2026-044, Solid Waste Services Agreement, with Universal Waste Systems, Inc., for town-wide solid waste, recycling, bulk waste, green waste, and Town facility collection services FISCAL IMPACT Fiscal Impact: N/A Budget Reference: N/A Funding Source: N/A ATTACHMENTS 1. 2026-044_UWS_Vendor Signed