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F \EPWM\ADMIN\WPDOCS\STAFFRPnRECLMXPR NOV 1 0 19.;;
Council MeetIng. November 10, 1998 Santa Momca, California
TO Mayor and CIty Council
FROM City Staff
SUBJECT RecommendatIon for City CouncIl to Authorize the City Manager to NegotIate
and Execute a Contract for the Collection, Handling, Transport, ProcessIng
and Marketing of Recyclable Mixed Paper Matenals for the CIty of Santa
MonIca
Introduction
This report recommends that City CouncIl authorize the City Manager to negotiate and
execute a contract wIth Amencan Waste Industnes to provide collection, handling,
transport, processmg and marketIng services for mIxed paper matenals at designated
locations within the CIty of Santa MOnica
Backaround
The City of Santa MonIca actIvely partIcIpates In planning, ImplementIng and promotmg
recycling activIties The Santa Monica Recycling program began In 1981 and was
designed to serve the CIty's unIque housmg confIguration through a combinatIon of
curbside and alley recyclrng collect/on for Single famIly homes and drop-off zones located
In alleys for the C,ty's multi-family dwellings Materials collected through the mixed paper
recycling program Include newspapers, corrugated cardboard, brown paper bags,
magazines, junk mall and other mixed paper matenals Currently, there are 350 mixed
paper recycling drop-off zones throughout the City of Santa MOnica which are serviced by
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NOV 1 0 19.:..;
Amencan Waste Industnes
DISCUSSIon
In August 1998, the City's Solid Waste Management DIVIsion Issued a Request for
Proposal (RFP) to more than fifty (50) private solid waste and recyclIng haulers and paper
processors throughout Southern California to provide recycling services for the collection,
handling, transport, processing and marketing of mixed paper matenals at 350 drop-off
locations throughout the CIty
The RFP required the Contractor to provide all equipment and labor services for
. placement of 350 containers In designated locations within the City
. maintenance and dally collectIons of these containers
. transportation of matenals to the Santa Monica Transfer Station for weight
tickets only
. transportation of matenals to the processing facility
. marketing of the mixed paper matenals
The RFP outlined monetary penalties for non-performance, failure to obtain weIght tickets
at the Santa MOnica transfer station and failure to mamtam drop-off location sites m a
clean and orderly fashion Also outlined In the RFP IS a Service Fee_Schedule to be paid
to the Contractor and a Market Fee Schedule to be paId to the City of Santa Monica for
each ton of mixed paper matenals collected for thiS recycling program
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F our proposals were receIVed for these services as follows
r -:--........"............PP- -.-... ~ -~. -... -. - - -.. ... I... ..--.... ...~ ..-.-.. --.... .- ...... .~---.---.
-. ..- 5 . F .. I
i.. '.' .;.';" ._..... .. . _. or"'. ~ ._...IIl: ervlco. u~s ..-..:-.ftII.r.... ~.. ~ -1/00. .' .......J..o_...
Year One Year Two Year Three
American Waste $ 126.000 00 $ 126,000 00 $ 126,00000
Klistoff Disposal $ 206,10540 $ 206,105 40 $ 206,10540
Allan Company $ 294,03700 $ 294,037 00 $ 294,03700
Quality Paper $ 479,00000 $ 499,000 00 $ 514,000 00
r _.,/1. .....".... ~"............ - ............... ....... .......-..v-... .. -..... ~..... ,p... .. - .. .-... ..... .........
L. . ;....i....:... . . EslillliJ!ud Market RQlVIWUO '. _ '. . _" . ..
Floor Price Year One Year Two Year Three
American Waste $1025 $ 30,750 00 $ 30,75000 $ 30,75000
Klistoff Disposal $1000 $ 30,000 00 $ 30,000 00 $ 30,00000
Allan Company $200 $ 6,000 00 $ 6,00000 $ 6,000 00
Quality Paper $21 00 $ 63,000 00 $ 63,000 00 $ 63,00000
.... ......................... .. . . .. .. ...~.. ......... .. . . . . -....... .. .....-....... . - . . . . ~
Nl.d Sc.ml'll::c CO:iIS .
. . .
Year One Year Two Year Three
American Waste $ 95,25000 $ 95,25000 $ 95,250 00
Klistoff Disposal $ 176,10540 $ 176,10540 $ 176,10540
Allan Company $ 288,03700 $ 326,390 00 $ 370,496 00
Quality Paper $ 416,00000 $ 436,00000 $ 451,00000
If It IS determined that the value of the mIxed paper for the Los Angeles market IS
greater than the floor pnce as stated In the proposal, then the contractor must remit
payment for the greater amount per ton to the City of Santa MOnica for that specific
month Mixed paper values are determIned by paper market prices as listed In the
"Fibre Market News", an industry publicatIon The most cost effective proposal was
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from American Waste Industries which proposed the lowest service fees and has the
lowest net service cost American Waste Industries has provided very satisfactory
service to the CIty for the past four years, and all other references reported satisfactory
services
BudaetlFlnanclallmoact
The term of the agreement IS for three years beglnmng January 1, 1999 and extending
through December 31,2001 SuffICIent budget authonty IS In theDlvlslon of SolId
Waste Management In account number 27-500-442-00000-5507-00000
The current Solid Waste Management DIVISion revenue budget for thiS servIce IS In
revenue acunt number 27-500-443-00000-0158-10000 Approval of the agreement wll [
result In at least $2,563 of additional revenue The revenue budget at thiS account
should therefore be Increased by $2,563
Recommendation
It IS recommended that the City CounCil authOrize the City Manager to negotiate and
execute a contract With American Waste Industries to provide services of collection,
handling, transport, processing and marketing of mixed paper materials for the City of
Santa Monica for three calendar years beglnmng January 1, 1999 through December
31, 2001 for a total amount not to exceed $378,000 And approve the revenue budget
Increase as set forth above
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Prepared by CraIg Perkins, Environmental & Public Works Mgt,
Joseph Delaney, Solid Waste Operations Manager
Kim A Braun, Matenals Recovery Supenntendent
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