City Council Meeting: February 12, 2008

Agenda Item: 1-C

To:                   Mayor and City Council

From:              Craig Perkins, Director – Environmental and Public Works Management

Subject:          Approval of Interim Purchase of Refuse and Recycling Bins and Containers for the Commercial Collection Services Project

 

 

Recommended Action

 

Staff recommends that the City Council:

 

1.      approve the purchase of refuse and recycling bins from Consolidated Fabricators in the amount not to exceed $500,000;

2.      amend the Award of Bid #2916 dated April 10, 2007 in the amount not to exceed $510,000 to Roto/Rotonics Industries; and

  1. approve the budget changes as outlined in the Budget/Financial Impact section.

Executive Summary

On November 27, 2007, City Council directed staff to proceed with developing an implementation plan for the Solid Waste Management Division (SWMD) to be the sole provider for commercial collection services Citywide. Since then, commercial customers have been contacting SWMD for waste and recycling services, and consequently, current bin and container inventories have been depleted. Bins and containers are also required as part of the initial implementation phase of the Commercial Collection Services Project that SWMD is requesting to purchase bins and containers using existing funds.

 

Discussion

Background

On January 22, 2007, the City released a Request for Proposal (RFP) for Citywide commercial collection services. The City’s Solid Waste Management Division was one of seven companies that responded to the RFP. The RFP Evaluation Committee ranked the Solid Waste Management Division as the best responder.

In an effort to move forward with the bin distribution phase of this project, this report requests City Council approval of an interim purchase of refuse and recycling bins due to the following:

  1. After City Council’s endorsement of the Solid Waste Management Division as the sole provider for commercial collection services Citywide on November 27, 2007, commercial customers began contacting SWMD for service when the contract with their private haulers terminated.  Existing containers and bins have been utilized in meeting the waste and recycling needs of these customers.  Container and bin inventory levels are therefore being depleted and require restocking in order to continue to meet the waste and recycling collection needs of single-family, multi-family, and commercial customers and for the anticipated new commercial customers during the interim.
  2. In June of 2005, an informal bid process was conducted for waste & recycling bins and was awarded to Consolidated Fabricators on July 1, 2005 for one fiscal year with two additional one-year options to renew.  A purchase order was issued on July 1, 2007 for fiscal year 07/08 in the amount of $98,940.50 and these funds have been exhausted.  Additionally, the available renewal options will be exhausted on June 30, 2008.  On January 17, 2008 the Purchasing Agent issued an emergency purchase order to Consolidated Fabricators in a total amount of $98,617.92 to purchase 162 containers in order to accommodate commercial collection customers during the interim and until award of the new formal bid by City Council.  The Purchasing section of the Finance Department is currently preparing a new formal competitive bid for waste and recycling bins that will be completed in late Spring 2008.   It is recommended that the City be granted approval to purchase additional bins on a sole source basis from the current vendor, Consolidated Fabricators, in an amount not to exceed $500,000 in preparation for the beginning phases of bin distribution for the Commercial Collection Services Project.

 

On April 10, 2007, City Council awarded Bid #2916 to Roto/Rotonic Industries, for a three-year period, in order to provide refuse containers used in the automated collection program.  The bid award was for a three-year period beginning May 7, 2007 and ending May 6, 2010 for an estimated amount of $390,000 using account number C270227.589000 “Refuse Container Purchases.”  It has been determined that additional funds will be required during that time period in the amount of $210,000 for the purchase of automated collection program containers.  SWMD requests that Council amend the dollar amount for a new total not to exceed an amount of $600,000.  Budget authority to cover the period ending May 6, 2010 will be included in each annual proposed City budget.

The same type of automated refuse containers will also need to be purchased for the Commercial Collection Services Project using account number C270589.589000 “Containers – Commercial Collections.”  In the interim, current funds will be utilized for these refuse containers.  It is recommended that the City be granted approval to increase the award of Bid #2916 by $300,000 to purchase additional 68, 95 and 300 gallon containers using account number C270589.589000.  There is currently $100,000 available in account number C270589.589000 for use through June 30, 2008.  Budget authority for subsequent years will be included in each annual proposed City budget.

Financial Impacts & Budget Actions

The following budget actions are required:

1.                  Approve the purchase of approximately 800 2 and 3-cubic yard waste and recycling bins from Consolidated Fabricators in an amount up to $500,000 from account C270589.589000 for new commercial customers.

2.                  Amend the award of Bid #2916 to Roto/Rotonics Industries by $210,000 in account number C270227.589000 “Refuse Container Purchases;” and by $300,000 in account number C270589.589000 “Containers-Commercial Collections”. The new total amount for the term of the bid will be $900,000. During FY2007/08 $100,000 is available in account C270227.589000 and budget authority for subsequent years will be included in each annual proposed City budget.

3.                  Acknowledge the issuance of an emergency purchase order dated January 17, 2008 in the total amount of $98,617.62 issued to Consolidated Fabricators.  Section 2.24.120 of the Santa Monica Municipal Code allows the waiver of a competitive bid process when it is necessary to protect health, welfare and safety.

 

Prepared by:  Celeste Peele, Solid Waste Operations Manager

 

 

Approved:

 

Forwarded to Council:

 

 

 

 

 

 

Craig Perkins

Director - Environmental & Public

Works Management Department

 

P. Lamont Ewell

City Manager