Commercial Franchise Contract

Following investigation into the possibility of awarding a commercial franchise, the Village issued a request for proposals (RFP) for an exclusive contract with a hauler to provide commercial waste hauling and recycling services for the Village's businesses.  On Monday, April 7th, the Village Board formally approved a contract with Waste Management of Illinois to serve as the Village's exclusive commercial franchise holder. The following are some frequently asked questions about the franchise and the contract with Waste Management to give businesses a better understanding of the program:

1. What is a commercial waste franchise?

A commercial waste franchise is essentially an exclusive contract awarded by the Village to a private waste hauler to provide refuse and recycling services for all commercial accounts in the Village.

2. Who is included in the commercial franchise?

Most businesses in the Village are automatically included. Multi-family properties and institutions have the option of joining but are not required to do so. All single-family households and home-based businesses are not included.

3. What is the term of the franchise?

The term of the franchise is seven years (2015 to 2022) beginning on August 1st, 2015.

4. What are the services offered under the franchise?

Under the franchise, Waste Management will provide garbage and optional recycling and organics (yard waste/food scrap) collection services. Free recycling options are included - one (1) recycling container (up to four cubic yards in size) can be collected up to once a week at no charge as part of your garbage service. Additional recycling options are available for a monthly charge.

5. Why should I recycle?

Recycling reduces the amount of material you throw in your garbage container.  Less garbage may allow you to reduce your container size and/or pick-up frequency.  The result is lower costs overall. For example, a customer receiving twice-weekly service on a 1 cubic yard container could potentially save up to $324 a year by utilizing a free recycling container and moving to once weekly service under the franchise rate system.

6. How do I establish service under the proposed franchise?

Prior to the start of franchise, Waste Management will make contact with each business to determine the most cost-effective combination of container size and pick-up frequency as well as the potential cost savings associated with recycling. Multi-family properties wishing to get more information or participate may contact Village Hall at (847) 599-7500 for further instruction.

7. Can I select my container size and pick-up frequency?

Yes. Each business will be able to work with Waste Management to choose the options that best meet their needs.

8. What are the proposed service rates under the franchise?

A full table of rates for garbage, recycling and organics service can be found at this link.

9. Will I save money?

Based on a survey conducted by the Village and the Solid Waste Agency of Lake County (SWALCO), 90% of Gurnee businesses will realize a significant savings on a number of common services such as weekly collections of a 96 gallon toter (a 70.6% decrease from the average monthly cost paid by Gurnee businesses from $57.91 to $17.00) and two cubic yard containers (a 64.5% decrease from the average monthly cost of $98.71 to $35.00).

10. What if my rates are lower than the franchise rates?

If your rates are lower than the franchise rates at this time, Waste Management has agreed to freeze your contractual rate for the first year of the franchise contract. At the beginning of the second year, your rate will be adjusted to the average of your rate and the franchise rate. In the third year, the franchise rate will apply. Please keep in mind that you may be able to achieve cost-savings by using a smaller container in combination with a free recycling option.

11. Will I still have a contract?

Yes. Each business will enter into a contract with Waste Management under the terms of the Village's franchise. A copy of the franchise agreement can be found at this link for your reference.

12. Who will bill me for service?

Waste Management will be responsible for billing you directly each month. Billing terms will be net 30 days. Customers may contact Waste Management directly at (800) 796-9696  to discuss other billing terms.

13. What if my current contract expires before or after the start of the proposed franchise?

Until the franchise begins, businesses may contract with any hauler for garbage and recycling services. Haulers will be required to terminate any existing contracts without customer penalty at the start of the franchise. Existing Waste Management customers will be automatically transitioned to the franchise on the effective date.

14. Will I receive a new container?

Prior to the start of service, Waste Management will coordinate any applicable deliveries and removals.

15. Who do I call with service problems?

You will call Waste Management at (800) 796-9696 to report any service problems, request an additional pick-up or modify your services.

16. Will this franchise impact the current residential franchise with Waste Management?

No. The residential and commercial franchises are independent of and will have no direct impact on one another.

For additional questions, contact Village Hall at (847) 599-7500.

 

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Commercial Waste Hauling Contract.PDF2.19 MB