SR-021208-1CCity Council Meeting: February 12, 2008
Agenda Item: I ~~
To: Mayor and City Council
From: Craig Perkins, Director -Environmental and Public Works Management
Subject: Purchase of Refuse and Recycling Bins and Containers for Commercial
Collection Services
Recommended Action
Staff recommends that the City Council:
approve the purchase of refuse and recycling bins from Consolidated Fabricators
in the amount not to exceed $500,000;
2. amend the Award of Bid #2916 dated April 10, 2007, in an amount not to exceed
$510,000 to Roto/Rotonics Industries; and
3. approve the budget changes as outlined in the Budget/Financial Impact section.
Executive Summary
On November 27, 2007, City Council directed staff to proceed with developing an
implementation plan for Commercial Collection Services Citywide with the Solid Waste
Management Division (SWMD) as the sole provider. Commercial customers have
begun contacting SWMD for waste and recycling services and, consequently, current
inventories of bins and containers have been exhausted. Therefore, in order to
continue implementation of the Citywide commercial collection program, an emergency
purchase of containers and bins is necessary. This emergency purchase is only for the
number of containers and bins required until the completion of a formal bid purchase
process which has already begun and should be completed within the next 120 days.
Consolidated Fabricators and Roto/Rotonics Industries, the current providers of bins
and containers to the City, have indicated the ability to meet the City's emergency need.
Funds for this emergency purchase are available within existing Solid Waste fund
appropriation authority.
Discussion
On January 22, 2007, the City released a Request for Proposal (RFP) for Citywide
commercial collection services. The City's Solid Waste Management Division was one
of seven companies that responded to the RFP. The RFP Evaluation Committee
ranked the Solid Waste Management Division as the best responder. An Information
Item regarding the Commercial Collection Services Implementation Plan will be
circulated to update City Council the week of February 4, 2008.
As a result of Council action on November 27, 2007, directing the City Manager to
proceed with the City's Solid Waste Management Division providing Citywide
commercial collection as the sole provider, many current commercial collection service
providers have already begun shifting their accounts to the City. The City had not
anticipated the large number of existing service providers desiring to shift accounts
immediately or the number of Commercial customers desiring to shift service when their
current service contract ends which has exhausted the existing supplies of containers
and bins. Staff has already begun the formal bid process to purchase additional bins
and containers; however, the formal process will take approximately 120 days and the
actual delivery of containers and bins will follow soon thereafter. Therefore, an
emergency purchase is necessary to continue implementing the Citywide commercial
collection services program.
On July 1, 2005, Consolidated Fabricators was awarded the bid for waste and recycling
bins fora 3-year period ending June 30, 2008. On January 17, 2008, the Purchasing
Agent issued an emergency purchase order to Consolidated Fabricators in a total
amount of $98,617.92 for purchase of an additional 160 bins for commercial collection
customers. This initial purchase was not sufficient to respond to the actual demand
currently being experienced, Until the completion of the formal bid process, it is
estimated that approximately 800 additional bins will need to be purchased, for an
amount not to exceed $500,000.
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On April 10, 2007, City Council awarded Bid #2916 to Roto/Rotonic Industries for refuse
containers used in the automated collection program. The bid award was for athree-
year period ending May 6, 2010, for an estimated amount of $390,000. It has been
determined that the purchase of 1,700 additional 68, 95 and 300 gallon automated
containers is necessary. The increased container purchases require an amendment to
the existing Roto/Rotonics contract of an amount not to exceed $510,000, thus bringing
the total contract amount to $900,000.
Financial Impacts & Budget Actions
The following budget actions are required:
1. Approve the purchase of approximately 800 2 and 3-cubic yard waste and
recycling bins from Consolidated Fabricators in an amount up to $500,000
from account 0270589.589000 for new commercial customers.
2. Amend the award of Bid #2916 to Roto/Rotonics Industries by $210,000 in
account number 0270227.589000 "Refuse Container Purchases;" and by
$300,000 in account number 0270589.589000 "Containers-Commercial
Collections". The new total amount for the term of the bid will be $900,000.
3. Acknowledge the issuance of an emergency purchase order dated January
17, 2008, in the total amount of $98,617.62 issued to Consolidated
Fabricators. Section 2.24.120 of the Santa Monica Municipal Code allows the
waiver of a competitive bid process when it is necessary to protect health,
welfare and safety.
Prepared by: Celeste Peele, Solid Waste Operations Manager
Approved:
Forwarded to Council:
1~i
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Craig Perkins `/P. l~ayfiont Ewell
Director -Environmental & Public Ci anager
Works Management Department
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