SR 08-28-2018 3G
City Council
Report
City Council Meeting: August 28, 2018
Agenda Item: 3.G
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Resource Recovery & Recycling
Subject: Award Bid to Rotational Molding, Inc. for the Purchase of 300-Gallon Solid
Waste and Recycling Containers
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4342 to Rotational Molding, Inc., a California-based company, for the
purchase of 300-gallon solid waste and recycling containers; and
2. Authorize the Purchasing Services Manager to issue a purchase order with
Rotational Molding, Inc. for the purchase of 300-gallon solid waste and recycling
containers in the amount not to exceed $1,356,000 for ten years, with the same
price for the first three years and an increase based on the consumer price index
for the next seven years, with future year funding contingent on Council budget
approval.
Summary
The 300-gallon solid waste and recycling containers are primarily used by residents who
live in multi-family units and have limited space for waste container placement. Staff
recommends Rotational Molding, Inc. to provide these refuse and recycling containers
for a ten-year term not to exceed $1,356,000, with the same price for the first three
years and an increase based on the consumer price index for the next seven years. A
longer-term agreement is advantageous for this purchase because it locks in the most
favorable pricing and provides uniformity in size, appearance, and service functionality
of City-issued waste containers throughout Santa Monica. The City has the flexibility to
stop purchasing from this vendor and rebidding at any time if necessary.
Discussion
The City provides containers to its solid waste customers for the disposal of solid waste,
green waste, and recycling materials by the Resource Recovery & Recycling Division.
Currently, three types of containers are provided to customers. The smallest containers
are the 68-gallon and 95-gallon carts used by most residential single-family homes. The
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middle option is the 300-gallon containers. They are round and have a relatively small
footprint, which make them optimal for use in street alleys where space constraints exist
or by smaller multi-family units that do not require larger containers. The biggest option
is the 2- to 4-yard bins. They are rectangular, usually placed in a dedicated waste
disposal area, and used by larger multi-family and commercial customers. All
containers, regardless of size, require periodic replacement due to normal wear and
tear, damage, and customer requests for additional containers.
Vendor Selection
Bid Data
Bid Posting Date Bid Posted
On
Bid Advertised In
(City Charter &
Municipal Code)
# of
Vendors
Downloaded
# of
Submittals
Received
Date Publicly
Opened
5/2/2018
City's
Online
Bidding
Site
Santa Monica
Daily Press 19 3 5/16/2018
Submittals Received Vendor Selection Recommendation
Avanti $285/unit Municipal Code SMMC 2.24.072
Rotational $223.66-
$227.91/unit
Evaluation Criteria
Price, previous experience, ability to
deliver, quality of product, and
compliance with City specifications Snyder $214.45/unit
Best Bidder Rotational Molding, Inc.
Best Bidder Justification
Rotational Molding, Inc. is not the lowest bidder but offers the convenience of being a
local vendor based in Gardena, CA, (Avanti is based in San Diego, CA and Snyder is
based in Lincoln, NE) with the resulting benefits of shorter lead times, free delivery, and
no minimum order requirement. The per unit cost indicated above by Snyder Industries,
Inc. required a 200-unit minimum order threshold. If an order is less than 200 units, a
$2,950 freight charge would apply, which would push the per unit cost to an amount
higher than Rotational’s. Additionally, Snyder’s lead times are 4-6 weeks, while
Rotational’s lead times are 3-4 weeks. By purchasing from Rotational, the City will save
time and money over the life of the purchase order.
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On June 14, 2018, City staff posted a pending award notification on the City’s online
bidding site, putting all vendors on notice that staff’s recommendation to Council would
be to award Bid #4342 to Rotational Molding, Inc. On June 19, 2018, the City’s Director
of Finance received a timely protest from Snyder Industries, Inc.
The protest questioned the selected vendor’s pricing, as they were not the lowest
bidder, and quality of their products. On June 21, 2018, after reviewing the submitted
protest documents and speaking with staff who had conducted the bid and selection
process, the protest was denied based on lack of evidence (Attachment B). Staff
recommends that Bid #4342 be awarded to Rotational Molding, Inc.
Financial Impacts and Budget Actions
Staff seeks authority to award a purchase order with Rotational Molding, Inc. for the
purchase of 300-gallon refuse, green waste, and recycling containers. To secure the
most favorable pricing, staff recommends accepting Rotational’s proposal of a locked
rate for the first three years and CPI increase for Year 4 through Year 10.
Purchase Order Request
FY 2018-19
Request Amount
FY 2018-19 Budget
CIP Account #
Total Purchase Order Amount
$126,000 C5404540.689000 $1,356,000
Future year funding is contingent on Council budget approval.
Prepared By: Yvonne Yeung, Principal Administrative Analyst
Approved
Forwarded to Council
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Attachments:
A. Rotational Molding, Inc. Oaks Initiative Disclosure Form
B. City's Response Letter to Protest Appeal from Snyder Industries, Inc.