SR-072308-1Cc7r
~;~Yo, City Council Report
Santa hlonica°
City Council Meeting: July 23, 2008
Agenda Item:. ~ °G
To: Mayor and City Council
From: Lee E. Swain, Director of Public Works
Subject: Award- of Bid for Refuse Bins
Recommended Action
Staff recommends that City Council award Bid #2941 to U. S. Transportation to provide
waste and recycling bins in an amount not to exceed $1,000,000.
Executive Summary
The purchase of waste and recycling bins is necessary to support existing commercial
and new commercial customers. New commercial customers were acquired as a result
of Council's award of Citywide commercial collection services on November 27, 2007.
U. S. Transportation is recommended following a formal bid process. The bid award is
for aone-year period beginning July 24, 2008 with four. additional one-year renewal
options at the same price, terms and conditions, subject to annual budget approval.
The total estimated expenditure for the five-year term is $3,000,000.
Discussion
Commercial Collection Implementation
On November 27, 2007, Council directed the City Manager to develop an
implementation plan for the Solid Waste Management Division to be the sole provider of
solid waste commercial services, assuming the services of approximately 20 private
haulers serving an estimated 1,400 new commercial customers. On February 26, 2008,
City Council approved the emergency purchase of approximately 800 refuse bins from
Consolidated Fabricators in an amount not to exceed $500,000. This emergency
purchase allowed for the transition of services to begin until the completion of the formal
bid process.
1
From February 27 to July 11, 2008, 977 (46%) waste and recycling bins were
distributed to new commercial customers. It is estimated that approximately 1,162 bins
(54%) will be delivered to complete the transition of services by December 31, 2008: It
is anticipated that existing commercial customer demand coupled with the transition of
new commercial services will deplete the existing 128 bins (50 new bins; 24 refurbished
bins; and 54 bins awaiting inspection for refurbishment) by July 31, 2008.
Approximately 1,900 new bins are required in fulfilling the refuse and recycling needs of
existing and new commercial customers.
Vendor Selection
In June 2008, the City published Notices Inviting Bids to furnish and deliver waste bins
in accordance with City specifications. Bid forms were sent to .eight vendors and
notices were advertised in accordance with City Charter and Municipal Code provisions.
Four bids were received and publicly opened on July 8, 2008 per Attachment A.
Bids were evaluated based on competitive pricing, completeness of bid response,
delivery time, and additional available options. Based on these criteria, U. S.
Transportation i s recommended as the best bidder. The U. S. Transportation (1)
alternative bid is preferred as the delivery of bins will be unstacked and easier to handle
and distribute.
Financial Impacts & Budget Actions
Fiscal Year 08/09 budget authority in the amount of $1,000,000 is available in the
following accounts:
$300,000 in account 0270227.589000, "Refuse Container Purchases"
• $700,000 in account 0270589.589000, "Containers-Commercial Collections"
Budget. authority for subsequent years will be included in each annual proposed City
budget.
2
Prepared by:
Celeste Peele, Solid Waste Operations Manager
roved:
~~
Forwarded to Council:
Lee E. Swain P mont Ewe
Director of Public Works Manager
Attachments: Attachment A -Pricing
3
ATTACHMENT A Page 1 of 2
BID #2941
TITLE: FURNISH AND DELIVER REFUSE BINS AS REQUIRED BY SOLID WASTE MANAGEMENT DIVISION.
Vendor Consolidated
Fabricators Rocky Mountain
Welding;& Fab.
US Transportation (1)
US Transportation (2)
Year1
Description Est. Ann.
Q
Each cost
Extended cost Each
cost
Extended cost
Each cost
Extended cost Each
cost
Extended cost
2-cubic yard refuse bins 400 $ 567.88 $ 227,152.00 $ 572.00 $ 228,800.00 $ 531.15 $ 212,460.00 $ 528.23 $ 211,292.00
3-cubic yard refuse bins 1,500 $ 546.22 . $ 819,330.00 $ 631.00 $ 946,500.00 $ 519.20 $ 778,800.00 $ 515.47 $ 773,205.00
Total $ 1,046,482.00 $ 1,175,300.00 $ 991,260.00 $ 984,497.00
Sales Tax (8.25%) $ 86,334.77 $ 96,962.25 $ 81,778.95 $ 81,221.00
Grand Total $ 1,132,816.77 $ 1,272,262.25 $ 1,073,038.95 $ 1,065,718.00
Shipping cost per bin In price $ 38.00 $ 26.80 $ 13.09
Delivery within 90 days 30 days Start: 20 days
Finish: 75 da s Start: 20 days
Finish: 75 da s
Warranty 1 yr parts & labor under
normal commercial usa e One year 1 year parts and labor 1 year parts and labor
Notes 42 containers per load
Year 2
Description Est. Ann.
Qt . Each cost
- Extended cost Each
cost Extended cost Each cost Extended cost Each
cost Extended cost
2-cubic yard refuse bins 300 $ 624.67 $ 187,401.00 - $ - $ $ -
3-cubic yard refuse bins 1,200 $ 600.84 $ 721,008.00 $ - $ - $ -
Total 908,409.00 - - -
Sales Tax (8.25%) $ 74,943.74 $ - $ - $ -
Grand Total $ 983,352.74 $ - $ - $ -
Shippingcost per bin In price
Delivery within 90 days
Warranty 1 yr parts & labor under
normal commercial usage
Renewal options for year two 5-10% increase from Year
One prices 11-15% increase from Year
One prices Same price, #erms and
conditions as Year One Same price,terms and
conditions as Year One
Year 3
Description Est. Ann.
Qt . Each cost Extended cost Each
cost Extended cost -Each cost Extended cost Each
cost Extended cost
2-cubic yard refuse bins 300 $ 687.14 $ 206,142.00 $ - $ - $ -.
3-cubic yard refuse bins ~ 1,000 $ 660.92 $ 660,920.00 $ ~ - $ - $, -
Total 867,062.00 - - -
Sales Tax (8.25%) $ 71,532.62 $ - - $ - $ -
Grand Total $ 938;594.62 $ - $ - $ -
Shipping cost per bin In price
Delivery within 90 days
Warranty 1 yr parts & labor under
normal commercial usage
Renewat options for year three 5-10% increase from Year
Two prices 11-15% increase from Year
Two prices Same price, terms and
conditions as Year Two Same.price, terms and
conditions as Year Two
ATTACHMENT A Page 2 of 2
BID #2941
TITLE: FURNISH AND DELIVER REFUSE BINS AS REQUIRED BY SOLID WASTE MANAGEMENT DIVISION.
Vendor Consolidated
Fabricators Rocky Mountain
Welding & Fab.
US Transportation (1)
US Transportation (2)
Year 4
Description Est. Ann.
Qt . Each cost Extended cost .Each
cost Extended cost Each cost Extended cost Each
cost Extended cost
2-cubic yard refuse bins 300 $ 755.85 $ 226,755.00 $ - $ - $ -
3-cubic yard refuse bins 1,000 $ 727.01 $ 727,010.00 $ - $ - $ _
Total 953,765.00 - - _
Sales Tax (8.25%) $ 78,685.61 $ - $ - $
Grand Total $ 1,032,450.61 $ - $ - $ -
Shipping cost per bin In price
Delivery within 90 days
warranty 1 yr parts & labor under
normal commercial usage
Renewal options for year four 5-10% increase from Year
Three prices 11-15%increase from Year
Three prices Same price, terms and
conditions as Year Three Same price, terms and
conditions as Year Three
Year 5
Description Est. Ann.
Q Each cost Extended cost Each
cost Extended cost Each cost Extended cost Each
cost - Extended cost
2-cubic yard refuse bins 300 $ 831.44 $ 249,432.00 $ - $ - $ _
3-cubic yard refuse bins 1,000 $ 799.71 $ 799,710.00 $ - $ - $ _
Total - 1,049,142.00 - - -
Sales Tax (8.25%) $ 86,554.22 $ - $ - $ -
Grand Total $ 1,135,696.22 $ - $ - $ _
Shipping cost per bin In price
Deliverywithln 90 days
Warranty 1 yr parts & labor under
normal commercial usage
Renewal options for year fve 5-10% increase from Year
Four prices 11-15% increase from Year
Four prices Same price, terms and
conditions as Year Four Same price, terms and
conditions as Year Four
Replacement Parts
Descri tion Each cost Each cost Each cost Eachcost
Gussets $ 0.50 $ 3.40 $ 0.19 $ 0.19
Leach bars, cold roll with two washers -
assembled
$ 52.50
$ 39.40
$ 34.25
$ 34.25
Lid Rods with holes drilled for cotter
pins $ 5.00 -$ 7.10 $ 3.59 $ 3.59
Heav dut wheels with axle 6" X 2"
y y Caster $ 7.87
wheel/axle $ 6.00
$ 9.80
$ 3.05
$ 3.05
Nut/bolt and bushing $ - 1.25 N/A $ 0.21 $ 0.21
Two piece ultra two/three yard plastic
lids $ 23.82 $ 25.00 er lid 21.00
p $
per lid $ 21.00
Casterplates $ ~ 8.00 $ 11.93 $ 1.75 $ 1.75
Year two increase from year one prices 10% 10-15% 2% 2%
Year three increase from year two prices 10% 10-15% _ 2% 2%
Year four increase from year three
prices 10% 10-15% 2% 2%
Year five increase from year four prices 10% 10-15% 2% 2%
Notes Plus freight