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Date
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July 14, 2008
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Agenda
Item No. 73 Roll
Call No. 08-
Communication No. 08-413 Submitted by: Richard
A. Clark, City Manager |
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AGENDA
HEADING:
Approve
Single-Stream Recyclables Processing Contract with Mid-America Recycling.
SYNOPSIS:
Based on the
Council’s selection of Mid-America Recycling as the processing contractor at
the June 9, 2008 Council meeting, staff has prepared for Council’s
consideration a Single-Stream Recyclables Processing Contract with Mid-America
Recycling. Mid-America Recycling has
served as the City’s recycling processor for six years resulting in
Upon Council
approval, staff would also issue bids for five automated collection vehicles,
purchase 40,000 96-gallon wheeled containers, and proceed to implement a citywide
single-stream recycling program by December 2008.
FISCAL
IMPACT:
Amount: $487,000 estimated annual
revenue from sale of recyclables
$3,025,000 initial
investment to implement program
Funding Source: Funding is
available within the current Solid Waste Budget, Curbside Recycling, EN151,
PWK100119, page 298, utilizing the City’s master lease program for acquisition,
not to exceed $3,025,000.
Conversion to single-stream recycling will require the purchase of an
estimated 40,000 96-gallon wheeled containers at an approximate cost of
$2,000,000 and five automated collection vehicles at an estimated cost of
$1,025,000. A staff reduction of six
personnel by attrition, along with reduced fuel expenses and reduced landfill
fees, would reduce program expenses, yielding a payback period of less than
five years.
ADDITIONAL
INFORMATION:
In December 2002, the City entered into an agreement with Mid-America
Recycling, and for the first time, received revenues for the recycled
materials. Since 2002, recycling
participation rates have leveled off, and quantities of recyclables have
remained constant at approximately 6,500 tons per year.
To reduce collection costs and increase quantities, the Public Works
Department proposes automated collection of single-stream recyclables using
wheeled carts and side-load vehicles. If
approved, residents would be asked to place all recyclables in a wheeled cart
for collection. Wheeled carts would be
provided to all residents who opt for this service at no additional charge. Estimating
the number of residents who will choose to participate in single stream
recycling has been a challenge for providers nationally; however, staff’s
review of others’ experience has lead to the best-case estimate of some 60%
participation and the acquisition of 40,000 containers. Additional
acquisitions, should participation exceed others’ experiences, would be
financed by lease-purchase of containers with the estimated avoided cost of
recyclables and sale of these materials offsetting the cost of the containers
and their debt service.
The Public Works Department recommends converting the City’s manual
recyclables collection program to single-stream and automated collection. Their research shows that other communities
converting to automated collection increased the quantities of recyclables
collected and reduced overall program costs.
Restructuring of the recyclables collection program appears to be in the
best interest of the City.
Some of the key provisions of the contract with Mid-America Recycling
(MAR) are as follows:
- The
initial term of this Contract is for a period of seven (7) years with up
to two (2) additional five-year renewal periods.
- MAR must
maintain a Materials Recycling Facility or Materials Receiving Facility
and office within the City of
- The
receiving hours must accommodate the City’s collection schedules,
including holidays and overtime.
- MAR must
pay the City on a monthly basis based on pricing contained in their
proposal. Pricing is based on the
“metro” alternative (higher than “city only”), estimated at $487,730 per
year.
- In the
event MAR contracts with another entity in the State of
- MAR will
be responsible for the processing of all recyclable materials listed in
the RFP. The City reserves the
right to add additional types of recyclable materials or to delete
materials.
- In the
event of MAR’s breach of this Contract, defined as 1) Failure to make timely monthly payments
to the City or 2) Failure to adequately receive and process the City’s
recyclable materials, the City may recover liquidated damages up to
$1,500,000, which will be secured by an irrevocable letter of credit.
- MAR may
not assign the contract to any party without the written permission of the
City Council.
- The City Council
will have the right to assign the contract in its sole discretion upon
written notice to MAR. This means
the contract can be assigned to Metro Waste Authority or any other entity.
- MAR will
assist the City in its public education and community information program.
PREVIOUS
COUNCIL ACTION(S):
Date: June 9, 2008
Roll Call
Number: 08-1056
Action: Acceptance of report from Hearing Officer
on appeal of Evaluation and Selection Committee recommendation for RFP for
single-stream recyclables processing, rejecting all proposals, and directing
City Manager to examine and recommend a new competitive process. (Council Communication No. 08-346) Moved by Hensley to: 1) Find that the evaluation and selection
committee was not biased and to affirm the findings and report of the Deputy
City Manager regarding the Recycling Inc. appeal. Motion Carried 6-1. Absent:
Mahaffey; 2) Reject all proposals
received in response to the RFP, per Section 2-758 of the Municipal Code, and
Section 16 of the Standard Provisions and Requirements for the RFP. Motion
Carried 6-1. Absent: Mahaffey;
3) Waive the use of the RFP
proposal process, pursuant to Section 2-710(b), for good cause shown, namely
the time and delay involved, and instead to direct the City Manager and Public
Works Director to negotiate a contract with Mid-America Recycling, and to bring
it back to City Council for review and approval. Motion Carried 4-2-1. Nays:
Coleman and Vlassis. Absent:
Mahaffey.
Date: February 25, 2008
Roll Call
Number: 08-317
Action: Issuance of RFP for
single-stream recyclables processing. (Council Communication
No. 08-081) Moved by Hensley to adopt; refer to the City
Manager to schedule a Council workshop to discuss solid waste and
recycling. Motion Carried 7-0.
Date: December 3, 2007
Roll Call
Number: 07-2308
Action: Amendment to Recyclables Processing
Services Contract with Mid-America Recycling, Inc. for adjustment of
prices. (Council Communication No. 07-714) Moved by Vlassis to adopt. Motion Carried 7-0.
Date: December 4, 2006
Roll Call
Number: 06-2387
Action: Amendment to Recyclables Processing
Services Contract with Mid-America Recycling, Inc. for new per ton recyclable
material prices payable to the City. (Council Communication No. 06-765) Moved by Coleman to adopt; refer to the City
Manager to look for ways the City can promote recycling. Motion Carried
6-0.
BOARD/COMMISSION
ACTION(S): NONE
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS: NONE
For more information on this and other agenda items,
please call the City Clerk’s Office at 515-283-4209 or visit the Clerk’s Office
on the second floor of City Hall,