SR 07-26-2016 3B
City Council
Report
City Council Meeting: July 26, 2016
Agenda Item: 3.B
To: Mayor and City Council
From: Susan Cline, Director, Public Works, Resource Recovery & Recycling
Subject: Award Bid for Refuse Bin Repair
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4244 to Weldworx, Inc., a California-based company, for refuse bin
repair (welding services);
2. Authorize the City Manager to negotiate and execute an agreement with
Weldworx, Inc., in an amount not to exceed $60,000 for one year, with 4-
additional 1-year renewal option(s), on the same terms and conditions for a total
amount not to exceed $300,000 over a 5-year period, with future year funding
contingent on Council budget approval.
Executive Summary
The City contracts out refuse bin repair for the metal and plastic bins used by the
Resource Recovery & Recycling Division collection program. The one-stop repair
service includes welding, painting, lid assembly, parts replacement, etc. In May 2016,
the City solicited bids for such services. After reviewing the one bid received, staff
recommends Weldworx, Inc. to provide refuse bin repair for a total not to exceed
amount of $300,000 over the five-year period. This recommended action is consistent
with Council-approved Policy for hiring contracted staff for non-professional services
due to specialized/technical expertise, workforce flexibility.
Background
The City container replacement program provides for the ongoing replacement of the
more than 4,000 bins used throughout the City on a daily basis. The lifespan of these
containers ranges from 5 to 8 years depending on the composition of the bin (metal or
plastic) and the material disposed (refuse, organics or recycling)
.
In an effort to address rising costs for new containers and to utilize existing containers
as long as possible, staff procured the services of an outside welder/fabricator to repair
the existing bins and prolong replacement in 2003. Minor repairs such as replacing the
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wheel assembly, lids or locking bars can extend the life of a bin by approximately 3 5
years.
In FY 2011-12 staff began tracking the purchases of containers by material and size.
These records show that the annual purchase of metal bins decrease from 155 to 80
and plastic bins from 285 to 237 in a 4 year period, resulting in an annual savings of
approximately $96,800.
On December 10, 2013 Council awarded Bid #4104 to Weldworx, Inc. for refuse bin
repair services (Attachment B). Since 2003, over 6,000 bins have been repaired
extending their useful life.
Discussion
The City requires welding services to repair refuse and recycling bins to extend the life
of the container. In the majority of the cases, the bins are still usable as they near the
end of their life expectancy.
Repair services include replacing the wheel assembly, lids or locking bar; repairing the
pull handles, fork channels, and leach bars; and straightening and aligning the side
panels. The contractor is required to have his or her own tools and equipment and be
able to travel to businesses in the city to weld a chain and lock to the metal bins at
locations where locks are constantly being lost or misplaced.
Method of Service
On January 13, 2015, Council adopted a Policy for Hiring Contracted or As-needed
Staff for Non-professional Services (Attachment C). This policy includes criteria under
which contracting for a public service is appropriate. Staff has reviewed the service
needs, and recommends continuing to provide refuse bin repair services through a
contractor due to the following criteria:
Specialized/Technical Expertise: Service requires technical or specialized
expertise that City staff could not or does not provide, and is outside of core
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services mission of the department.
Workforce Flexibility: Service is seasonal, unpredictable, or on-call basis. The
use of contract services provides the City with an opportunity to redefine or
adjust service levels as necessary to address demand.
Vendor Selection
In May 2016, the City published a Notice Inviting Bids to provide refuse bin repair
services in accordance with City specifications. The bid 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. Sixteen vendors
downloaded the bid. One bid was received and publicly opened on May 20, 2016, per
Attachment A. The bid was evaluated based on the criteria in SMMC 2.24.072,
including price, previous experience, capacity and skill, quality of service, and
compliance with City specifications and scope of work. Procurement conducted
additional outreach to vendors who downloaded the bid to see why they did not submit
a bid; there were no responses.
Staff conducted additional outreach and looked at pay rates for welders in the Los
Angeles area to ensure that pricing proposed by Weldworx is competitive in the current
marketplace.
since 2010 and the services provided are excellent Based on these criteria, Weldworx,
.
Inc. is recommended as the best bidder.
Alternatives
If the City were to provide refuse bin repair using in-house staff, staff estimates a cost
difference of $31,387 including $20,000 one-time for equipment and $71,387 ongoing
for staffing and safety equipment. To bring the service in-house a 0.5 FTE Welder
Fabricator position would be needed along with start-up equipment such as light and
heavy gauge welding machine, metal sheet forming equipment, air compressor, grinder,
various cutting tools, and flame cutting torches. Based on the demand for skilled
construction personal in the region the City would be hard pressed to find an individual
able and willing to meet specifications for a part time position. In addition, by
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contracting out these services the City ensures that they only pay for completed units
ensuring maximum productivity.
Financial Impacts and Budget Actions
The contract to be awarded to Weldworx, Inc. is for an amount not to exceed $300,000.
Funds of $60,000 are included in the FY 2016-17 Budget in the Public Works
Department. The contract will be charged to account 27441.544260. Future year
funding is contingent on Council budget approval.
Prepared By:
Annette Morales, Principal Public Works Analyst
Approved Forwarded to Council
Attachments:
A. Bid #4244 Summary
B. December 10, 2013 Staff Report
C. January 13, 2015 Staff Report
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