HomeMy WebLinkAbout10.C.1. Award of Contract for Garbage.Recycling Bin PurchaseSHAKOPIT
TO:
FROM:
DATE:
SUBJECT:
A+Vachmen+ G
General Business 10. C. 1.
Mayor and City Council
Mark McNeill, City Administrator
01/21/2014
Award of Contract for Garbage/Recycling Bin Purchase (F)
Action Sought
For Council to award the purchase of garbage /recycling bins to Cascade Engineering, Inc.
Background
In 2013 the City Council directed that proposals be taken for a garbage hauler to provide garbage
collection and recycling services to the City's organized garbage collection customers. This
includes all single - family, duplex, and triplex residents and townhouse residents within the
sewered area of Shakopee.
Six proposals were taken, and Allied (Republic) Services was awarded a five -year contract, which
will begin June 1, 2014.
As part of that award, staff s recommendation to Council was that the City purchase and own the
carts. The rationale for that is that it would provide a savings for the residents, and allow the City
to have control of this asset. Without this, the successful hauler would have to amortize the cost
of bins in the initial five year contract. After that time, the hauler would own the carts. With the
City having ownership, amortization could take place over a longer period of time, and, at the end
of that time, the City would own the carts as an asset. It should be noted that cart life is a
minimum of 10 years, and 15 years or more is not uncommon.
As a result, Council directed that quotes be taken for approximately 23,000 wheeled garbage and
recycling containers. Recycling under the new hauler will be under a "single -sort" garbage
system. As compared to the current collection in 18 gallon bins, it is anticipated that there will be
greater recycling participation, fewer problems with wind -blown recycled materials, and every
other week pick -up (which leads to less wear and tear on City streets).
With assistance from the City's environmental consultant Foth Engineering, specifications were
sent to three different cooperative purchasing organizations. These groups meet the competitive
bid requirements. Five responses were received from nationally- recognized suppliers. The
consultant and Administrative Intern Zach Stock performed an analysis, considering such issues
as price, references, wall thickness, and resin weight. The final three of those relate to durability.
After careful consideration, the consultant and staff recommend purchasing from Cascade
Engineering ,Inc, for the reasons outlined in the attached memorandum from Foth Engineering.
The "roll -out" of the new containers will be done by a contractor working for Allied, and will take
place the last week of May, 2014. Specifics on the collection of old carts and distribution of new
ones will be available as time grows nearer.
Discussion:
One of the concerns which has been raised is the difference between contractor owned carts and
City owned carts, whether there will be more wear and tear on them due to contractor "abuse ".
We have been assured by Allied that their automated collection arms on the trucks are adjusted so
that the carts are placed gently. If an arm goes out of adjustment, it will be noticeable and Allied
will need to fix the problem. The carts to have a 10 year warranty, but breakages (especially
wheels and lids) are not uncommon. Allied is under contract to service these types of broken cart
issues. Other issues (squirrels or rodents chewing through lids) are not covered under warranty.
Because of the every other week pick up schedule, and anticipating that there will be a greater
amount of recycling, the standard recycling cart will be a 90- gallon container. Because of smaller
garages, townhouses will have a 60- gallon recycling standard container.
Note that yard waste will be continued to be handled through containers supplied by the hauler.
Allied will contact the seasonal yard waste customers about delivery of Allied - supplied bins
around June 1 st. Dick's customers were notified in November when their carts were removed that
those yard waste carts would not be replaced in the spring. Instead, for the approximately six
weeks of spring clean up, yard waste will be picked up by Dick's from containers that the
customer supplies or in compostable paper bags.
Recommendation
I recommend that the contract for garbage carts be awarded to Cascade Engineering, Inc..
Budget Impact
The recommended quote from Cascade Engineering, Inc is $975,100, which includes delivery.
Allied has agreed to do assembly.
The funding for this will come as a loan from the Sanitary Sewer Fund, amortized over 10 years
at 4% interest. This loan will be repaid through a "cart rental fee" listed on residents' bills. Also
included will be a charge for replacement parts. This means that the listed cart rental fee to be
charged per customer will be $0.55 per cart ($1.10 per month per customer for the two carts).
The rates charged under the current contract, and the new monthly fees are attached for
comparison. It shows that single family residential fees will be reduced under the new system;
conversely, townhome fees will be increased. This is a result of the policy decision that the City
Council made to equalize rates, so that there would be no "subsidization" of townhouse customers
by single family customers, as had taken place under the current contract.
Relationship To Visioning
This is a "housekeeping item" (F)
Requested Action
If Council concurs, it should, by motion, authorize a contract for the purchase of approximately
23,280 garbage and recycling carts to Cascade Engineering Inc, at a cost of $975,100.
Attachments: Collection Rates
Memo from Foth Eng.
Current Monthly Rates:
Weekly Collection
Residential (1 to 4 plex)
Townhome
Refuse
Recycling
Total
Refuse
Recycling
Total
30 Gallon
$8.65
$3.71
$12.37
$6.71
$3.12
$9.83
60 Gallon
$10.76
$4.64
$15.40
$6.71
$3.12
$9.83
90 Gallon
$12.45
$5.20
$17.65
$7.75
$3.20
$10.95
Note: The rates do not include the 9.75 percent state Solid Waste Management Tax.
Proposed Rates with Allied Waste Services (for June 2014 -May 2015):
Weekly Collection
(unless noted)
Residential (1
to 4 plex) & Townhomes
Refuse
Recycling
Total
Cart
Rental
Fee
Total
30 Gallon (every -other week)
$5.81
$3.24
$9.05
1.10
10.15
30 Gallon
$7.30
$3.24
$10.54
1.10
11.64
60 Gallon
$9.43
$3.24
$12.67
1.10
13.77
90 Gallon
$11.55
1 $3.24 1
$14.79
1.10
15.89'
Note: The rates do not include the 9.75 percent state Solid Waste Management Tax.
Foth Infrastructure & Environment, LLC
Eagle Point II • 8550 Hudson Blvd. North, Suite 105
Lake Elmo, MN 55042
(651) 288 -8550 • Fax: (651) 288 -8551
www.foth.com
January 14, 2014
TO: Mark McNeill, City Administrator (Shakopee)
CC: Zach Stock (Shakopee)
FR: Dan Krivit (Foth)
Memorandum
RE: City of Shakopee's Purchase of Solid Waste and Recycling Carts:
Summary Results of Request for Price Quotes and Recommendations
Executive Summary
The City of Shakopee released a request for price quotes (RFPQ) for residential solid waste and
recycling roll -out carts on November 25, 2013. The City used this RFPQ, including the
Shakopee Cart Specifications, for purposes of receiving competitive price quotes from various
cart manufacturers. Five cart manufacturing companies responded with very competitive
pricing. The City staff team and Foth carefully reviewed the responses, prices, references and
other information to thoroughly evaluate the responses and determine the most suitable cart
manufacturer and cart model for Shakopee's needs and budget. The City staff / consultant team
recommends that City Council authorize a purchase of carts from Cascade Engineering, Inc.
based on the RFPQ, quote submitted by Cascade, and the calculated total capital cost estimate of
$975,100.
Background
On July 2, 2013, the City Council authorized the execution of a collection services Contract
between the City of Shakopee ( "City ") and Republic Services /Allied Waste Services
( "Contractor "). The collection Contract is for city -wide residential solid waste, recycling, and
yard waste collection. The City is changing its recycling program to a single- stream recycling
system using roll -out recycling carts with this new Contract beginning on June 1, 2014.
The new collection Contract requires that the City purchase and own the new recycling and solid
waste carts. The Contractor is responsible for purchasing its own yard waste carts. The Contract
requires the Contractor to be fully responsible for assembly, distribution, maintenance, warranty
The information contained in this memorandum is considered privileged and confidential
and is intended only for the use of recipients and Foth.
X:\MS\I02012 \125052 -00 \10300 Draft Reports \Carts\M - Foth memo report 1- 14- 14.docx
Memorandum
claims, and other inventory management of the City's carts. The Contractor will arrange
for solid waste and recycling cart distribution and roll -out to all eligible City residents.
The Contractor is also responsible for proper cart care during collection operations as
supervised and monitored by City staff as per Contract standards.
On November 6 and November 18, City Council authorized City staff to release the
RFPQ. The RFPQ process referenced existing contracts through three separate
cooperative purchasing organizations: the Houston - Galveston Area Council
(HGACBuy); the National Intergovernmental Purchasing Alliance (National IPA); and
the National Joint Powers Alliance (NJPA). This approach allowed the City to leverage
its buying power through the three cooperative purchasing organizations serving
municipalities throughout the United States.
Discussion of Results
The following five companies submitted competitive price quotes in response to the
City's RFPQ:
♦ Cascade Engineering, Inc.
♦ Otto Environmental Systems, LLC
♦ Rehrig Pacific Company
♦ Schaefer Systems International, Inc. (SSI)
♦ Toter, LLC.
City staff and Foth calculated total capital costs of all responses based on the unit price
quotes and estimated number of carts (approximately 23,280). Total capital costs
include:
♦ Cart purchase in three sizes (35- gallon, 65- gallon, and 95- gallon).
♦ Cart counts as estimated by the City based on current trash cart counts under the
existing collection contract.
♦ Transportation / delivery of the carts from the manufacturer to Shakopee.
♦ Labeling of the carts as per the City's specifications.
The City also requested optional discounts for early payment or early ordering. All of
these factors were included to calculate the lowest capital cost estimate by manufacturer.
The total capital costs ranged from a low of $975,100 to a high of $1,198,653.
The City staff / consultant team also evaluated the quality of the carts proposed by each
manufacturer. Durability was analyzed based on the net resin weight and wall thickness
of each cart model. References of other municipal customers were also contacted for
each company to assess cart field performance in cold climates, warranty service and
i
Memorandum
other customer service issues. Reference sales literature was also reviewed as a
secondary source.
Cascade was determined by the City staff / consultant team to have the most suitable
carts and services based on Shakopee's needs. The Cascade capital cost was the lowest.
Cascade municipal customer references were contacted and provided strong
recommendations for this cart manufacturer. In addition, the City's current collection
contractor, Dick's Sanitation, uses Cascade carts and has provided a very positive
recommendation on both cart field performance and customer service. One of the
features mentioned by Dick's staff is the footprint of the Cascade cart is smaller than
other cart models. This allows some customers to more easily fit the cart in small
garages.
City staff have discussed with City Council the approach of financing this cart purchase
by borrowing from another City capital fund. The estimated capital cost for the cart
purchase, $975,100, would then be repaid through the City- imposed "cart fee" on the
residents trash bills. These cart fees would be collected by our Contractor and
reimbursed directly to the City. The amount of the "cart fee" for two carts (trash and
single- stream recycling) is currently estimated at $1.10 per household per month.
Recommendations
The City staff / consultant team recommends that City Council authorize a purchase of
carts from Cascade Engineering, Inc. This recommendation is based on the RFPQ cart
specifications packet, Cascade's price quote in response, and the calculated total capital
cost estimate of $975,100.
Refuse and Recycling Services Transition Plan
Dick's Sanitation - -City of Shakopee
Data Preparation:
A+}ach mend CJ
1. Dick's shall provide to the City an electronic Excel "report" of the current trash, recycling and
yard waste service levels. This report shall be provided twice:
a. By November 4, 2013
b. By January 10, 2014 (with any updates)
This report shall provide sufficient data for the City to document, by address, the trash cart size
and yard waste customers (by cart or bag) similar to past reports.
Seasonal Yard Waste Collection Services:
2. Seasonal yard waste collection service with carts shall end after the November 2013
collections. Dick's shall remove the Dick's yard waste carts after the Fall 2013 yard waste
season is over. Customers shall be notified via a cart tag, and through an auto -dial message.
3. Dick's yard waste collection in the Spring of 2014 (approximately early April, 2014 through May
31, 2014) shall be on a "pay- per -bag" subscription service only (i.e., no carts) at the rate of
$1.45 per bag. As per the current City / Dick's program guidelines, yard waste must be placed
in compostable paper bags or in the resident's own 30 gallon container marked "Yard Waste."
Trash Cart Removal:
4. Dick's will provide "free" removal of Dick's trash carts on the same day immediately after the
last trash collection on the week of May 26, 2014. (For example, Dick's trash carts will be
collected at no charge to the customer on Tuesday May 27, 2014, immediately after trash is
collected that same day.) This "free" cart removal service will occur as soon as possible, on the
same day, after the trash is collected. The Dick's cart removal vehicle should follow the Dick's
trash collection compactor truck as soon as possible to avoid residents pulling their Dick's carts
back to their house /garage.
5. Residents planning on going on vacation during the week of "free" cart removal service
(Tuesday May 27 through Saturday May 31, 2014) may leave their trash cart at the curb before
they leave on vacation.
6. If residents miss this "free" cart removal service on their specified trash collection / cart pick -up
days during the week of May 26, 2014, there will be two options:
a. Call Dick's and arrange for a "special" removal of their trash cart by Dick's at a date /time
mutually agreed by the resident and Dick's. Dick's may charge up to $35 per "special"
cart removal service.
Page 1 of 4
b. Residents may self -haul their carts to the City Public Works Department (PWD) facility
during the period from June 2nd -7th for "free ". The City will have a designated area for
residents to drop -off their carts during normal business hours, which shall be from 7 AM
to 3 PM. The facility will also be staffed on Saturday, June 7th, from 8 AM until noon.
Residents shall ask for a receipt from City PWD staff in the office.
7. Dick's will be responsible for the removal of all trash carts from the City's Public Works facility
no later than Monday June 23, 2014.
8. Trash and yard waste carts not recovered by Dick's may be subject to up to an $80 replacement
fee.
Recycling Bin Removal:
9. Residents desiring to keep their recycling bin for other purposes will be allowed to do so. The
last week of May, 2014 (the final week for Dick's services), recyclables shall be placed in a
paper bag rather than in the recycling bin. After June 1, no recyclables will be picked up from
bins.
10. Residents not wanting to keep their bins may leave them curbside, for pick up by Dick's.
11. As an alternative to keeping and reusing their recycling bins, bins not picked up by Dick's may
be brought by residents to the City Public Works facility. A low (i.e., 10 — cubic yard) roll -off
box will be stationed there to provide a container for the recycling bins; that roll -off shall be
picked up by Dick's on June 16th. Residents may also come to the same location and take any
additional recycling bins they want for reuse.
12. From amongst the returned bins, Dick's shall provide 200 bins (from those hot - stamped as
"Shakopee ") for the City's use.
Bulky Items:
13. Starting January 1, 2014, Dick's will require pre - payment on all bulky item and other extra,
problem waste collection services. The rates charged in 2014 shall remain unchanged from the
rates charged in 2013.
Dumpsters and Carts at City Buildings and Facilities:
14. Dick's will remove the dumpsters the week of May 19 — 23, 2014. The City shall
schedule the start of the new Contractor's (Republic's) dumpster service to start the
last week of May, 2014. Dick's will provide to the City the schedule for this pickup in
January, 2014.
1S. Dick's will remove all trash and recycling carts that are owned by Dick's from City
buildings and other facilities the same week of May 19 — 23, 2014. The City shall
schedule the start of the new Contractor's (Allied /Republic's) trash carts and
recyclables carts recycling service to start the last week of May, 2014.
Recycling Revenue Sharing Check:
Page 2 of 4
16. Dick's shall provide the required recycling revenue sharing check by November 21,
2013.
17. Dick's shall provide the required tonnage and recyclables market value reports by
November 21, 2013.
Alley check to compensate for permanently switched alley pick -ups:
18. Dick's shall provide the annual "alley credit" to the City as a line item on the invoice to
the City for the 2014 Spring Clean -Up service. This "alley credit" is a contracted
payment from Dick's to the City to compensate for some households making a
permanent switch from alley -side to curbside collection service.
2014 Assessments for Bad Debt / Uncollected Fees:
19. Dick's shall provide a list of all unpaid bills which exist at the close of business on May
31, 2014, to the City by June 30, 2014.
20. The City shall notify holders of delinquent accounts that, in accordance with State law,
payments shall be made by July 31, 2014. Payments will continue to be collected by
Dick's.
21. A Public hearing shall be held on the first regular meeting of the City Council in August,
2014, for the purpose of hearing customer concerns, and then certifying all remaining
unpaid accounts for collection with property taxes payable 2015.
22. The City shall issue a check for the full certified amount owed to Dick's, to Dick's in
January, 2015.
Return of Escrow:
23. The City shall return the escrow check to Dick's, with the Contract including the
required amount of interest, upon satisfactory conclusion of the Contract term
immediately after all contract obligations are met.
Updated Route Maps:
24. Dick's will work with City staff to confirm the details of current route maps, including
the blocks of Old Shakopee which have seasonal alley -side collection service, and day -
certain schedules and zones for collection.
Page 3 of 4
Public Education About this Transition:
25. Dick's and the City shall cooperate to jointly publicize the instructions about this transition
plan, including the details about the "free" cart removal service. Dick's will clearly explain all
the details of this transition via:
a. Letter to each customer stuffed with the last Dick's billing statement in December 2013
and again with the last billing statement in April 2014.
b. Dick's web site.
c. Post card type of notice about the "free" trash cart collection attached to each trash
cart during the weeks of May 12, 2014 and /or May 19, 2014.
d. Dick's shall supply the City with drafts of these notices two weeks prior to printing or
public release for City review, editing and written approval.
26. The City shall publicize all the details of the transition, including the "free" cart collection
service, via:
e. City's web site.
f. City's cable TV channel.
g. News release to Shakopee Valley News and other local media outlets.
h. The City shall supply Dick's with drafts of these notices two weeks prior to printing or
public release for Dick's review, editing and written approval.
27. Replacement City garbage and recycling carts shall be delivered within 2 business days of the
removal of Dick's Sanitation carts.
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Dick's - City Contract Addendum 10- 17- 13.docx
Page 4 of 4
KEY
Blue; City
April 2014
Green: Republic
Black: Dicks
Red: ALL
Cart Master Calendar
Sun
Mon Tue
Wed
Thu
Fri
Sat
I
2
3
4
5
Certificates of
Website Infor-
E -News Story:
Final design of
Insurance
oration
FAQ webpage
SPUC flyer
Due
G.I L)
(Single Sort &
(1.13A & F, 1.16
GAC slide for
Transition)
A,C, F)
Dicks spring yard
waste pick -up
Seasonal collection
for Parks begins
6
7 8
9
10
II
12
GAC Slide:
Transition/
webpage
13
14 15
16
17
18
19
Dicks provides Mailer from
annual "alley cred- Republic
it" as line item on
the invoice to
Spring Clean up
20
21 22
23
24
25
26
Clean— Up Day
27 28 29 30
SPUC Flyers Mailer to Printer information for
Delivered Rich @ CC Shakopee Public
News
D
Q
m
May 2014
Cart Master Calendar
Sun Mon Tue Wed Thu Fri Sat
1 2 3
Full page collection Color map of col -
map published in lection sectors to
newspaper & posted
be copied and dis-
on w(2 e e b ssii tes tributed to public
(2.4 F)
4 5 6 7 8 9 10
Info Video and Submission of Republic Public Education
PSA's on transi- $2,500 Escrow Mailer Sent Out Info Arrives to
tion & single (1.20 A) Press Release on Residents
sort GAC slide on SSR Transition
(Till June 30th)
II 12 13 14 15 16 17
Carts start arriving City E -News Story: Assessment list
from Cascade to PW Postcards Sent Transition /SSR pulled by Dicks
Building
Facebook Post of carts Free Cart
Delivered Return cards
18 19 20 21 22 23 24
Cart Roll -out Park & City
Begins... Buildings cart
delivery begins
Free Cart Return (Coordinated with
cards on cart Dicks)
25 26 Memorial Day 27 28 29 30 31
Waste and Rec Free Cart ...End of Cart -
In the Spotlight: brochures attached Return Roll Out
Cart Deliver (2.1 1 C, D,) Begin Yard Waste
Press release Delivery Dicks rovides
n missed
Dicks Begins Hangtags attached p
removing carts o (5.4 A) delinquent
removal accounts to city
June 2014
Cart Master Calendar
Sun
Mon
Tue
Wed
Thu
Fri
Sat
I
2
3
4
5
6
7
All recyclables
SERVICE
now placed in
BEGINS!
Yard Waste Cart
Free PW
Dicks
Final return day
City Carts!
Annual Calendar /
Delivery Continues
return all week.
Assessment List
8 -12am
Public Education
In the Spotlight:
7-3pm
to City
Facebook post
with photo of
Plan
(2.1 L, M, 4.4 A, 5.4
What is SSR?
Republic collecting
A)
(All week)
Blue Week Recycling
8
9
10
11
12
13
14
Grey Week Recycling
15
16
17
18
19
20
21
Business
Blue Week Recycling
meeting to
Certify /Declare
Ass.
22
23
24
25
26
27
28
Grey Week Recycling
29
30
Blue Week Recycling
July 2014
Cart Master Calendar
Sun
Mon Tue
Wed
Thu
Fri
Sat
2
3
4
5
Monthly Report
Independence Day
(Tonnage)
(4.2 D)
Blue Week Recycling
6
7 8
9
10
11
12
Monthly Cart
Monthly Cart
Grey Week Recycling !
Inventory Report
Service Requests
(Appendix D: 3 A)
and Resolutions
( Appendix D 1: B,
F, G, 2:D,E,3:C)
13
14 15
16
17
18
19
Blue Week Recycling
i
20
21 ,22
i
':23
24
25
i26
Grey Week Recycling
27
28 29
30
31
Dicks accounts
Blue Week Recycling
subject to
assessment