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SR-6-F (61) Urrlrzr cf #7 tile; errs (oJ: 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 -1. (Pl= 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 -2- 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 -3- 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 -4- Prepared by CraIg Perkins, Environmental & Public Works Mgt, Joseph Delaney, Solid Waste Operations Manager Kim A Braun, Matenals Recovery Supenntendent -5-