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SR 04-23-2019 3J City Council Report City Council Meeting: April 23, 2019 Agenda Item: 3.J 1 of 6 To: Mayor and City Council From: Susan Cline, Director, Public Works, Resource Recovery & Recycling Subject: Award Bids for Purchase of Solid Waste and Recycling Containers Recommended Action Staff recommends that the City Council: 1. Award Bid #4370 to Consolidated Fabricators Corporation, a North Carolina- based company, for the purchase of 2- and 3-yard metal solid waste, recycling, and green waste/organics containers for the Public Works Department; 2. Authorize the Procurement Manager to issue a purchase order with Consolidated Fabricators Corporation for the purchase of 2- and 3-yard metal solid waste, recycling, and green waste/organics containers in the amount not to exceed $309,000 for six years with future year funding contingent on Council budget approval. 3. Award Bid #4371 to Ball, Bounce, and Sport, an Ohio-based company, for the purchase of 2-yard plastic green waste/organics containers for the Public Works Department; 4. Authorize the Procurement Manager to issue a purchase order with Ball, Bounce, and Sport for the purchase of 2-yard green waste/organics containers in the amount not to exceed $395,000 for 10 years to extend on the same terms and conditions for years one through five and a 3% increase each year on pricing for years six through10, with future year funding contingent on Council budget approval. 5. Award Bid #4371 to Rehrig Pacific Company, a California-based company, for the purchase of 2-, 3-, and 4-yard plastic solid waste and recycling containers for the Public Works Department; 6. Authorize the Procurement Manager to issue a purchase order with Rehrig Pacific Company for the purchase of 2-, 3-, and 4-yard plastic solid waste and recycling containers in the amount not to exceed $3,381,000 for 10 years with future year funding contingent on Council budget approval. 7. Award Bid #4372 to Rehrig Pacific Company, a California-based company, for the purchase of 35-gallon plastic recycling and green waste/organics containers, 65-gallon and 95-gallon solid waste, recycling, and green waste/organics containers for the Public Works Department; 8. Authorize the Purchasing Services Manager to issue a purchase order with Rehrig Pacific Company for the purchase of 35-gallon plastic recycling and green waste/organics containers, 65-gallon and 95-gallon solid waste, recycling, and green waste/organics containers in the amount not to exceed $2,156,000 for 10 years with future year funding contingent on Council budget approval. 2 of 6 Summary The City provides solid waste, green waste/organics, and recycling containers to residents and commercial customers in various sizes and materials depending on customer needs and the availability of space for waste container placement. Staff recommends the following bid awards: • Consolidated Fabricators Corporation to provide 2- and 3-yard metal solid waste and recycling containers for a six-year term not to exceed $309,000; • Ball, Bounce, and Sport to provide 2-yard plastic green waste/organics containers for a 10-year term not to exceed $395,000; • Rehrig Pacific Company to provide 2- to 4-yard plastic solid waste and recycling containers for a 10-year term not to exceed $3,381,000; and • Rehrig Pacific Company to provide 35-gallon, 65-gallon, and 95-gallon plastic recycling and green waste/organics for a 10-year term not to exceed $2,156,000. Longer-term agreements are advantageous for these container purchases, because they lock in the most favorable pricing. They also allow the City to provide containers that are uniform in size and appearance and include design features that are compatible with the City’s waste trucks. Discussion The Resource Recovery and Recycling Division provides containers to solid waste customers for the disposal of solid waste, green waste/organics, and recycling materials; the containers are funded by the solid waste service rates paid by residential and commercial customers. Currently, three types of containers are provided to customers. The smallest containers are the 65-gallon and 95-gallon carts used by most residential single-family homes. A larger option is the 300-gallon container that is round and has a relatively small footprint, which makes it optimal for use in street alleys where space constraints exist or for use by smaller multi-family units that do not require larger bins. The largest option is the 2- to 4-yard bins that are rectangular, usually placed in a dedicated waste disposal area, and used by larger multi-family and commercial customers. The large bins can be made of plastic or metal; metal bins are issued for 3 of 6 locations with tight spaces due to their slimmer profile. All containers, regardless of size or composition, require periodic replacement due to normal wear and tear, damage, and customer requests for additional containers. Additionally, the City also stocks a limited number of 35-gallon carts for use at special events. Many container manufacturers only produce containers of certain sizes and materials. Therefore, staff issued three separate bids in hopes of receiving multiple bids and selecting the best vendor for each commodity. Consolidated Fabricators Corporation would provide 2- and 3-yard metal solid waste and recycling containers for a total not to exceed $309,000; Ball, Bounce, and Sport would provide 2-yard plastic green waste/organics containers for a total amount not to exceed $395,000; Rehrig Pacific Company would provide 2- to 4-yard plastic solid waste and recycling containers for a total amount not to exceed $3,381,000; and Rehrig Pacific Company would provide 35-gallon, 65-gallon, and 95-gallon plastic recycling and green waste/organics for a total not to exceed $2,156,000. Vendor Selection Bid Data for 2- and 3-yard Metal Bins (Bid #4370) Bid Posting Date Bid Posted On Bid Advertised In (City Charter & Municipal Code) # of Vendors Downloaded # of Submittals Received Date Publicly Opened 11/20/2018 City's Online Bidding Site Santa Monica Daily Press 13 2 12/17/2018 Submittals Received Selection Criteria Item Consolidated Optimisation Municipal Code SMMC 2.24.072 2-yard metal $614.00/unit $625.00/unit Evaluation Criteria Price, previous experience, ability to deliver, quality of product, and compliance with City specifications 3-yard metal $693.00/unit $625.00/unit Best Bidder Consolidated Fabricators Corporation Best Bidder Justification Staff recommends awarding the contract for providing metal 2- and 3-yard metal bins to Consolidated Fabricators Corporation. Even though Consolidated’s per unit price for 3- 4 of 6 yard metal bins is higher, the City has used more 2-yard bins historically and in this regard, Consolidated is the lowest bidder. Additionally, Consolidated Fabricators was the only bidder that provided a complete and qualified bid packet that met the City's bid specification requirements. The City has ordered bins and bin parts from Consolidated since 1999 and Consolidated has been a reliable vendor. Finally, Consolidated Fabricators Corp. is in Van Nuys, CA, which will allow for a shorter lag time between orders. Consolidated Fabricators agreed to a five-year initial term and only offered a one-year renewal term. Thus, the purchase order will have a total term of six years. Bid Data for 2-, 3-, and 4-yard Plastic Bins (Bid #4371) Bid Posting Date Bid Posted On Bid Advertised In (City Charter & Municipal Code) # of Vendors Downloaded # of Submittals Received Date Publicly Opened 11/28/2018 City's Online Bidding Site Santa Monica Daily Press 20 3 12/13/2018 Submittals Received Selection Criteria Item Ball, Bounce Consolidated Rehrig Municipal Code SMMC 2.24.072 2-yard plastic $560.00/ unit $774.00/unit $563.00/ unit Evaluation Criteria Price, previous experience, ability to deliver, quality of product, and compliance with City specifications 3-yard plastic $630.00/ unit $914.00/unit $634.00/ unit 4-yard plastic $714.00/ unit NO BID $749.00/ unit Best Bidder Ball, Bounce, and Sport for 2- yard plastic green waste bins and Rehrig Pacific Company for 2-, 3, and 4-yard plastic solid waste and recycling bins only Best Bidder Justification Staff recommends awarding a contract to Ball, Bounce, and Sport to provide 2-yard green waste/organics plastic bins and a contract to Rehrig Pacific Company to provide 2-, 3-, and 4-yard plastic solid waste and recycling bins. Ball, Bounce, and Sport Inc. was the only bidder to offer an additional option of both side and bottom pockets on containers. These features are ideal for optimal service because the bins become very heavy when filled with green waste/organics and having both pockets will enable Resource Recovery and Recycling vehicles to lift the bins for service without causing structural damage to the containers. For 2-, 3- and 4-yard plastic solid waste and recycling bins, Rehrig Pacific 5 of 6 proved to be the best choice. Though Rehrig is not the lowest bidder, they are based in Los Angeles, CA, which will allow for dedicated customer service. They can provide all container types with the shortest lead time which will in turn allow the City to provide residents and businesses containers at a faster rate. The City has been ordering containers and replacement parts from Rehrig since 2000, and Rehrig has proven to be a reputable vendor. Rehrig is a current vendor for plastic bins and carts. Lastly, Rehrig proved to be the most responsive bidder with regards to requests for further information. Bid Data for 35-, 65-, 95-Gallon Carts (Bid #4372) Bid Posting Date Bid Posted On Bid Advertised In (City Charter & Municipal Code) # of Vendors Downloaded # of Submittals Received Date Publicly Opened 11/20/2018 City's Online Bidding Site Santa Monica Daily Press 29 4 12/17/2018 Submittals Received Selection Criteria Item Otto Rehrig Schaefer Toter Municipal Code SMMC 2.24.072 35- gallon plastic $35.95/ unit $33.00/ unit $38.00/ unit $34.50/ unit Evaluation Criteria Price, previous experience, ability to deliver, quality of product, and compliance with City specifications 65- gallon plastic $40.11/ unit $41.69/ unit $46.00/ unit $38.75/ unit Best Bidder Rehrig Pacific Company for 35- gallon recycle and green waste plastic carts and 65-, 95-gallon plastic solid waste, recycling green waste carts 95- gallon plastic $44.25/ unit $45.62/ unit $48.75/ unit $45.50/ unit Best Bidder Justification Staff recommends Rehrig Pacific Company to provide 35-, 65-, and 95-gallon plastic carts Though Rehrig Pacific is not the lowest bidder, they are based in Los Angeles, CA, which will allow for dedicated customer service. They can provide all requested container types with the shortest lead time, which will in turn allow the City to provide residents and businesses containers at a faster rate. The City has ordered containers and replacement parts from Rehrig since 2000, and Rehrig has proven to be a reputable vendor. They are a current vendor for plastic bins and carts. 6 of 6 Financial Impacts and Budget Actions Staff seeks authority to award purchase orders with Consolidated Fabricators Corporation for the purchase of 2- and 3-yard metal solid waste, recycling, and green waste/organics containers; Ball, Bounce, and Sport for the purchase of 2-yard green waste/organics containers; and Rehrig Pacific Company for the purchase of 2-, 3-, and 4-yard and 35-, 65-, and 95-gallon plastic solid waste and recycling containers. Purchase Order Requests Vendors FY 2018-19 Budget Request Amount CIP Account # Total Purchase Order Amount Consolidated Fabricators $48,000 C5404540.689000 $309,000 Ball, Bounce, and Sport $38,000 C5404540.689000 $395,000 Rehrig Pacific $298,000 C5404540.689000 $3,381,000 $133,000 C5404540.689000 $2,156,000 Total: $517,000 $6,241,000 Future year funding is contingent on Council budget approval. Prepared By: Patty Manalo, Administrative Analst Approved Forwarded to Council Attachments: A. Consolidated Fabricators Oaks Initiative - Bid 4370 B. Ball Bounce and Sport Oaks Initiative Disclosure Form - Bid 4371 C. Rehrig Oaks Initiative Disclosure Form - Bid 4371 D. Rehrig Oaks Initiative Disclosure Form - Bid 4372 Rehrig Pacific Company Rehrig Pacific Company 3/21/2019