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SR-09-08-2015-3N 205-008/503-001-03 City Council Report City Council Regular Meeting: September 8, 2015 Agenda Item: 3.N 1 of 3 To: Mayor and City Council From: Martin Pastucha, Director, Public Works, Resource Recovery & Recycling Subject: Purchase of 95/68 Gallon Refuse, Organics and Recycling Containers Recommended Action Staff recommends that the City Council: 1. Award Request for Proposal #32 to Rehrig Pacific Company, a California-based company, for the purchase and delivery of approximately 2,600 95/68 gallon refuse, organics, and recycling containers per year; 2. Authorize the Purchasing Services Manager to issue a purchase order with Rehrig Pacific Company for the purchase and delivery of approximately 2,600 95/68 gallon refuse, organics, and recycling containers in an amount not to exceed $150,000 for one year, with two additional one-year renewal options to extend for a total not to exceed $545,000 over three years, with future year funding contingent on Council budget approval. Executive Summary In April 2015, the City published a Request for Proposals (RFP) for the purchase of approximately 2,600 95/68 gallon refuse, organics, and recycling containers per year. After reviewing the four proposals and field testing the samples received, staff recommends Rehrig Pacific Company to provide refuse, organics, and recycling containers for a total not to exceed amount of $545,000 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. More than 26,000 95/68 gallon containers are used throughout the City. The majority of the 95/68 gallon refuse, organics, and recycling containers are used by residential customers and are on a 10-year replacement cycle. Purchase of these 2 of 3 containers would enable staff to replace approximately 2,600 containers annually or 7,800 over the three-year period. Approximately $150,000 would be required for purchases of the refuse, organics and recycling containers through the end of FY 2015-16. Purchases for additional years are estimated at: $175,000 for FY 2016-17; $185,000 for FY 2017-18; and $35,000 for FY 2018-19 (through August 2018), for a total award amount not to exceed $545,000 over a three-year period. The future year costs include projected increases in polyethylene resin, the main raw material used in manufacturing of the plastic containers. Vendor Selection In April 2015, the City published Notices Inviting Proposals to provide and deliver 95/68 gallon refuse, organics and recycling containers as required by Resource Recovery & Recycling Division 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 311 vendors were notified and 22 vendors downloaded the proposal. Four proposals were received and publicly opened on April 29, 2015 per Attachment A. Proposals were evaluated based on the criteria in SMMC 2.24.072, including price, previous experience, ability to deliver, quality of product, and compliance with City specifications. Rehrig Pacific Company is not the lowest bidder, but offered driver assisted container offloading at no extra charge, a shorter delivery time frame and was selected by the drivers as the preferred container during the performance testing. The testing included review of the composition of container material, the lid design and stability of the container after service. Based on these criteria, Rehrig Pacific Company is recommended as the best bidder to provide 95/68 gallon refuse, organics and recycling containers in accordance with the City specification. Financial Impacts and Budget Actions The purchase order to be awarded to Rehrig Pacific Company is for an amount not to exceed $545,000 over a three-year period (through August 2018). Funds in the amount of $150,000 for the first year are available in the FY 2015-16 Capital Improvement 3 of 3 Program budget in account C270227.589000. Future year funding is contingent on Council budget approval. Prepared By: Annette Morales, Principal Public Works Analyst Approved Forwarded to Council Attachments: A. Bid Pricing RFP #32 - 95/68 Gallon Refuse, Organics and Recycling Containers RFP for 95/68 Gallon Containers----NAMES OF BIDDERS- was form submitted X= Yes NAME OF FORM Business License Proposal (including cost proposal) RFP Addenda Non-Discrimination Policy Acknowledgement Non-Collusion Affidavit (this does not need to be notarized) Oaks Initiative Disclosure Form State of Arizona Disclosure Form References provided Number of copies provided--(4 copies requested) For 95 gallon For 68 gallon For 95 gallon For 68 gallon For 95 gallon For 68 gallon For 95 gallon For 68 gallon Option A Table (95 gal) & Option B Table (68 gal) X X X X X X X X Loading and Unloading (Cycle Test) - automated X X X X X X X Loading and Unloading (Cycle Test)- semi-automated X X X X X X Volumetric Loading Capacity X X X X X X X Durability During Pulling (Curb Test)X X X for 10" wheels for 12" wheels X X X Force to Tip X X X X X X X Slope Stability X X X X X X X Center of Balance Position X X X X X X X Lid Test X X X X X X X Wind Tunnel for 10" wheels for 12" wheels X X X X X X Number of days for delivery 30 days 30 days 3-4 weeks (21-28 days) 3-4 weeks (21-28 days)30-45 days 30-45 days 30-45 days 30-45 days Can driver assist with delivery Yes*Yes* delivered 3rd party. If requested liftgate or driver assitance can be requested delivered 3rd party. If requested liftgate or driver assitance can be requested Otto third party contracts its freight handlers and therefore does not have the ability to offer truck driver assistance for offloading equipment Otto third party contracts its freight handlers and therefore does not have the ability to offer truck driver assistance for offloading equipment Toter will arrange "Driver Assist" for truck driver to move carts to trailer door for City to unload Toter will arrange "Driver Assist" for truck driver to move carts to trailer door for City to unload Number of containers/delivery 486 648 549 670 456 720 250-624 250-864 Type of container molding (injection, etc)injection molded injection molded injection molded injection ??? Not listed in table injection molded injection molded Container is advanced Rotational Molded and lid is injection molded Container is advanced Rotational Molded and lid is injection molded REHRIG SCHAEFER SYSTEMS OTTO TOTER X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X 5 1 4 4 Renewal Options and Pricing For 95 gallon For 68 gallon For 95 gallon For 68 gallon For 95 gallon For 68 gallon For 95 gallon For 68 gallon unit price 45.74*41.08*$46.88 $43.47 $43.23 $36.74 $46.00 $41.30 freight cost/truck load included included included included $600.00 $600.00 $890.00 $890.00 Able to deliver containers on a recurring monthly basis Yes Yes Yes Yes Yes Yes Yes Yes Able to provide sample container if requested Yes Yes Yes Yes Yes Yes Yes Yes SAMPLE PROVIDED SAMPLE PROVIDED SAMPLE PROVIDED SAMPLE PROVIDED Renewal Option Price increase- Year 2 NO CAP subject to resin price escalator based off of Chem Data index subject to resin price escalator based off of Chem Data index per lb increase of resin as posted in CDI per lb increase of resin as posted in CDI reviewed at the time of renewal on data from Plastic News reviewed at the time of renewal on data from Plastic News 5% max increase or decrease 5% max increase or decrease Renewal Option Price increase- Year 3 NO CAP subject to resin price escalator based off of Chem Data index subject to resin price escalator based off of Chem Data index per lb increase of resin as posted in CDI per lb increase of resin as posted in CDI reviewed at the time of renewal on data from Plastic News reviewed at the time of renewal on data from Plastic News 5% max increase or decrease 5% max increase or decrease Warranty 10 yr 10 yr 10 yr 10 yr 10 yr 10 yr 10 yr non-prorated 10 yr non-prorated Notes: * per email this includes the Extra Delievry Charge for driver to assist with the containers . Schaefer- Oaks #2-- No names listed- N/A Otto- Oaks #2 --- No names listed- N/A REHRIG SCHAEFER SYSTEMS OTTO TOTER