Consideration and Approval of Contract:  Professional Services Agreement with Friedman Recycling Company for compaction, transportation, and the processing of recyclable materials.  
 

1. Approve the Professional Services Agreement with Friedman Recycling Company for compaction, transportation, processing, and the processing of recyclable materials; and
2. Authorize the City Manager to execute the necessary documents.

Staff solicited a Request for Proposals for Recycling Processing and Transportation Services in early 2024. Four proposals were received, and one subsequently withdrew. A selection committee reviewed the three remaining proposals and selected the proposal from Friedman Recycling Company as the best opportunity for the City. Considerations in this selection included qualifications, industry-specific experience, past performance, the presented approach, and price. 

The City is currently under contract with Friedman Recycling Company to provide processing and transportation services, and this Professional Service Agreement (Agreement) essentially continues this relationship. Through the proposal effort and contract negotiations, staff identified areas for improvements in services and efficiency and have built those into this Agreement. Under this Agreement, Friedman will provide two horizontal compactors for maximizing the transfer weights of recycling materials, haul the recycling materials from Flagstaff to their materials recovery facility in Phoenix, and process the recycling materials. The term of the Agreement is 2 years with three, 12-month extensions. Based on an estimated total of 500 tons of commingled recyclables per month, it is estimated that the Friedman Agreement will cost the City approximately $70,000 per month, or $140 per ton, post-collection. City staff support the operations and logistics of recycling material management on-site and during the compaction process.

This Agreement allows the City to consider further evaluation of installing a baler process to more efficiently compact and transport recyclables, providing the potential to achieve possible future savings and efficiencies. 

Project Name: Transfer Station Contractuals/Commodities
Cost: Approximately $70,000 per month
Account Number Budgeted: 211-06-168-0649-0-4240 (Equipment Rental), 211-06-168-0649-0-4269 (Transporting Services), 211-06-168-0649-0-4221 (Processing)
FY2024-25 Budgeted Amount: $982,500
Grant Funded: No
Funding Source: Solid Waste Enterprise Fund

On June 20, 2023, Council approved a Professional Services Agreement with Friedman Recycling Company for equipment, transportation, processing and recovery of recyclable materials. This previous agreement was for a term of six months with two, three-month extensions.

1. Approve the Agreement with Friedman Recycling Company for compaction, transportation, and the processing of recyclable materials; or
2. Reject the Agreement and re-solicit quotes for alternative considerations; or
3. Revise the terms and conditions, and return to the vendor for further discussions; or
4. Discontinue the recycling program and establish collection services of the community solid waste total volumes as required.

Friedman will maximize hauling efficiencies to limit the City's carbon and energy footprint to the largest degree practical while ensuring continuity in the City's recycling needs and movement of commingled recyclables to the Phoenix metropolitan area. Friedman has worked with the City for the last year providing similar services and the City and Friedman have used this Agreement to further improve these services. Through this agreement, the City will be able to recycle the following materials. 

1. Mixed Paper (#54)
2. Clean Cardboard/Old Corrugated Containers (OCC #11)
3. Plastic #1 PET threaded bottles, jars, and jugs
4. Plastic #2 HDPE Natural threaded bottles, jars, and jugs
5. Plastic #2 HDPE Color threaded bottles, jars, and jugs
6. Plastic #5 Polypropylene tubs and containers
7. Steel/Tin Cans and Containers
8. Aluminum Cans and Containers
9. Mixed Rigid/Bulk Plastics

It is noted that the City also recycles glass through a separate Agreement with a different contractor. The glass program is an opt-in subscription service offered to city residents in addition to community drop off locations. 

The City Procurement and Solid Watse Sections conducted Request for Proposals competitive solicitation for Material Recycling Facility Services and received proposals for two disciplines, from the following contractors: Joe Dirt Hauling, Waste Management of Arizona, and Friedman Recycling. Friedman Recycling was deemed the highest scoring, responsible, responsive proposer in each discipline. The scoring for these disciplines is as follows:

Transportation & Compaction
- Joe Dirt Hauling - 564
- Friedman Recycling - 779

Processing & Recovery
- Waste Management of Arizona -  656
- Friedman Recycling - 731

The Solid Waste and Procurement Section request approval from Council to move forward with Friedman for contract award.

• High Performance Governance
  • Serve the public by providing high quality customer service
  • Encourage public trust through transparency, accessibility and use of the City’s public participation policy
• Safe & Healthy Community
  • Foster a safe, secure, and healthy community
  • Develop alternative diversion programs
• Inclusive & Engaged Community  
  • Foster community pride and civic engagement    
• Sustainable, Innovative Infrastructure
  • Utilize existing long-range plan(s) that identify the community's future infrastructure needs and all associated costs.
  • Deliver outstanding services to residents through a healthy, well maintained infrastructure system.
• Environmental Stewardship
  • Promote, protect, & enhance a healthy, sustainable environment & its natural resources.

Policy LU.16.1. Encourage the continued intensification, expansion, and protection of existing industrial, warehousing, and distribution uses from encroachment where appropriate.
Policy PF.1.4. Build, sustain, and leverage partnerships with local and regional stakeholders for collective investment, efficient action, and shared responsibility in the building of local resiliency.
Policy PF.1.7. Develop strategies and take meaningful steps toward extending the life of the landfill.
Policy PF.2.3. Provide accessible public facilities and services in strategic locations.
 

• Carbon Neutrality Plan
  • Goal ES-4 – Actively seek to recognize past harms, repair trust, and build deeper relationships with community members.
  • Goal MM-3 – Divert more waste from the landfill.
  • Goal PF.2 – Provide sustainable and equitable public facilities, service, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics.