M&C Review


COUNCIL ACTION:  Approved on 3/20/2018 

DATE: 3/20/2018 REFERENCE NO.: P-12174 LOG NAME: 13P18-0149 SINGLE STREAM RECYCLABLES SB CODE
CODE: P TYPE: NON-CONSENT PUBLIC HEARING: NO
SUBJECT:  

Authorize Execution of an Agreement with Allied Waste Services of Fort Worth LLC d/b/a Republic Services of Fort Worth, for Single Stream Recyclables for an Initial Five-Year Term with Two Additional Five Year Renewal Options for the Code Compliance Department (ALL COUNCIL DISTRICTS)


RECOMMENDATION:

It is recommended that the City Council authorize a contract for Single Stream Recyclable Services with Allied Waste Services of Fort Worth, LLC d/b/a Republic Service of Fort Worth, to begin April 1, 2018, and expire March 31, 2023, with two additional five year renewal options for an estimated annual cost of $4,345,488.00.

 
DISCUSSION:

Although Solid Waste services are exempt for the usual procurement requirement of Chapter 252 of the Local Government Code, the Code Compliance Department requested assistance from the Purchasing Department to procure a new contract for the processing of  Single Stream Recyclables for the City of Fort Worth.  The Purchasing Department issued a Request for Proposal (RFP) for the processing of Single Stream Recyclables on October 4, 2017 and opened on November 9, 2017.  The RFP was advertised in the Fort Worth Star-Telegram on October 4th, 11th, 18th and 25th, 2017 and on November 1st and 8th, 2017. Eighteen vendors were sent the solicitation and the city received three responses.   In order to correct an error, the  Purchasing Division issued a second Request for Proposals for the processing of Single Stream Recyclables. The second RFP was advertised in the Fort Worth Star-Telegram on February 2nd, 7th and 14th,  2018. The solicitation was sent to the three vendors who responded to the first RFP and the same three vendors responded to the second.

The proposals  were reviewed by an evaluation committee consisting of Staff from Code Compliance, Planning and Development, the City Attorney's Office and the consultant hired to facilitate this process, Burns & McDonnell (CSO Contract No. 45833, as amended).  The committee collectively concluded that Allied Waste Services of Fort Worth, LLC, presented the best value to the City, therefore, Staff and the consultant recommend awarding the contract for the processing of Single Stream Recyclables to Allied Waste Services of Fort Worth, LLC, provided mutual terms and conditions are negotiated and agreed to by the parties.

The proposed terms of the contract are as follows:

  • Start date  April 1, 2018, expiration March 31, 2023, with two additional five year renewal options.
  • Processing fees of $84.00 per ton, with the estimated annual cost of $4,345,488.00 based on 51,732 annual recycling tons reported in the RFPs.
  • The City will receive (80 percent) of the revenues realized from the sale of the recyclables.
  • The processing fees owed will be offset by rebated revenues realized from the sale of the recyclables. However, due to the uncertainty of recyclable materials commodity market values caused by changes in export demand, foreign regulations, recovered material grade specifications, and other factors, the total projected revenue stream from the sale of the recyclables is estimated to range from a minimum of $3,611,845.00 to a maximum of $5,197,533.00 annually with an average revenue stream of $4,404,689.00 annually based on utilizing the past five year historical low, average and high weighted market recyclable commodity values.
  • The City will provide a Disposal Allowance per ton of residue and contamination disposed at its Southeast Landfill.
  • The City will pay a Disposal and Transportation fee of $10 per ton of residue and contamination in addition to the processing fee.
  • Republic will pay City a $2.00 per ton of recyclables received for a public education on recycling.

It is anticipated that the contract revenues will exceed fees and provide the City with an estimated positive cash flow on this contract of approximately $481,417.00 under high recyclable materials market commodity conditions. Under low and average recyclable materials market commodity conditions, it is anticipated the contract revenues will not exceed the fees and will generate an estimated net cost to the City of approximately $933,862.00 (low recyclable market)  or $152,859.00 (average recyclable market), respectfully.In comparing the second best proposal and utilizing the average recyclable materials market commodity conditions, that proposal would increase the annual cost from $152,859.00 to $843,208.00 or an additional $690,349.00 over Republic's proposal. Additional financial evaluation has been provided by Burns & McDonnell within the attached memorandum.

PRICE ANALYSIS - Code Compliance Department staff has reviewed the proposals and determined the firm to have the financial and bonding capacity to provide the services and the prices to be fair and reasonable for the industry.

M/WBE OFFICE - Allied Waste Services of Fort Worth, LLC d/b/a Republic Services of Fort Worth is in compliance with the City's Business Diversity Ordinance by documenting good faith effort. The City's M/WBE goal on this project is 15 percent.


AGREEMENT TERM - Upon City Council approval, the Agreements shall commence on April 1, 2018 shall expire on March 31, 2023.

RENEWAL OPTIONS - This Agreement may be renewed for two additional five-year term by mutual Agreement of the parties.  This action does not require specific City Council approval provided that the City Council has appropriated sufficient funds to satisfy the City's obligations during the renewal term.

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that funds are available within the current operating budget, as appropriated, of the Solid Waste Fund. Prior to an expense being incurred, the Code Compliance Department has the responsibility to validate the availability of funds.




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Submitted for City Manager's Office by:
Fernando Costa (6122)
Originating Department Head:
Aaron Bovos (8517)
Additional Information Contact:
Cynthia B. Garcia (8525)
Sheila Baker (8356)

 
 
ATTACHMENTS
  Form 1295 Certificate RFP 18 0149 MRF .pdf