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SR-04-28-2015-3AID City Council City of Saida Moaieam City Council Regular Meeting: April 28, 2015 Agenda Item: 3 -A To: Mayor and City Council From: Susan Cline, Interim Director of Public Works Subject: Purchase of 300 - Gallon Refuse /Recycling Containers Recommended Action Staff recommends that the City Council: 1. Award Request for Proposal #11 to Snyder Industries, Inc., a Nebraska -based company, for the purchase and delivery of 300 - gallon refuse /recycling containers. 2. Authorize the Purchasing Services Manager to issue a purchase order with Snyder Industries, Inc. for the purchase and delivery of 300 - gallon refuse /recycling containers in the amount not to exceed $25,000 for the remainder of FY 2014 -15, with two additional one -year renewal options with a 5% increase in price each year. Purchases for additional years are estimated at $80,000 for FY 2015 -16, $85,000 for FY 2016 -17, and $60,000 for FY 2017 -18 (through April 2018), for a total not to exceed $250,000 over a three -year period, with future year funding contingent upon Council budget approval. Executive Summary In November 2014, the City solicited proposals for the purchase of 300 - gallon refuse /recycling containers. After reviewing the two proposals received, staff recommends Snyder Industries, Inc. to provide refuse /recycling containers for a total not to exceed amount of $250,000 over a three -year period. Discussion The City container replacement program provides for the ongoing replacement of containers used for the storage of solid waste, organics, and recycling material until collection by the Resource Recovery & Recycling Division. The life expectancy of these containers ranges from 8 to 10 years depending on the commodity and container type (metal versus plastic). More than 33,800 collection containers of all sizes are used 1 of 3 throughout the City. There are currently three types of container options available for use within the city: the 68 and 95 gallon carts, typically used by the residential customers; 300 gallon containers and 1 yard bin mostly used by the multi - family customers; and the 2, 3, & 4 yard bins used by both the multi - family and commercial customers. The 300 - gallon container, which is approximately equivalent to 1 1/2 yard bin, serves as the transitional container between a cart and bin. The request for proposal was issued in order to evaluate other new container options. The 300 - gallon containers are used for refuse and recycling collection and are on an eight year systematic replacement cycle with priority replacement given to the containers that have been damaged. The purchase of these containers would enable the City to replace approximately 360 containers annually or 10% of the 3,698 existing 300 - gallon containers currently in use. Approximately $25,000 would be required for purchases of refuse /recycling containers through the end of FY 2014 -15. Purchases for additional years are estimated at: $80,000 for FY 2015 -16; $85,000 for FY 2016 -17; and $60,000 for FY 2017 -18 (through April 2018), for a total award amount not to exceed $250,000 over a three -year period. Vendor Selection In November 2014, the City published Notices Inviting Proposals to provide 300 - gallon refuse /recycling containers as required by Resource Recovery & Recycling in accordance with City specifications. The proposal was posted on the City's on -line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. A total of 293 vendors were notified and 18 vendors downloaded the proposal. Two proposals were received December 1, 2014 per Attachment A. Proposals were evaluated based on the following selection criteria: experience, cost, sample testing, and accordance with City specifications. RRR staff comprised of both drivers and supervisors tested the samples 2 of 3 and unanimously selected the container provided by Snyder Industries Inc. Staff recommends Snyder Industries, Inc. as the best qualified bidder to provide 300 - gallon refuse /recycling containers. The City has been working with Snyder Industries, Inc. since June 2012 and has been satisfied with both the product and the delivery time frames. As per Attachment A, Snyder Industries' price is competitive with the other provider of refuse /recycling containers. Financial Impacts and Budget Actions The purchase order to be awarded to Snyder Industries, Inc. is for an amount not to exceed $25,000 for the remainder of FY 2014 -15. Funds are available in the FY 2014- 15 Capital Improvement Program budget in account C270227.589000. Budget authority for subsequent years will be requested in each budget cycle for Council approval. Future funding is contingent upon Council approval. Prepared By: Annette Morales, Principal Public Works Analyst Approved Forwarded to Council Susan Cline, Interim Director of MINN Attachments: A. A - Price Quote Summary (PDF) Elaine M Polachek, Interim City MMWOOrt5 3of3 \ ( \ a �0 : 0 _ \ { f ) u t2 Li 01 01