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ITEM 21 |
City Council Memorandum Public Works & Utilities Memo No. UA22-086
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Date: |
February 24, 2022 |
To: |
Mayor and Council |
Thru: |
Joshua H. Wright, City Manager Andy Bass, Deputy City Manager John Knudson, Public Works and Utilities Director |
From: |
Tabitha Sauer, Solid Waste Manager |
Subject: |
Agreement No. SW1-926-4307, with River Recycling, LLC, for Processing and Marketing of Recyclable Materials |
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Proposed Motion: |
Move City Council approve Agreement No. SW1-926-4307, with River Recycling, LLC, for processing and marketing of recyclable materials, in an amount not to exceed or total $7,600,000, for the period beginning upon Agreement execution through September 30, 2027, with the option of one additional three-year extension. |
Background/Discussion: |
Solid Waste Services receives approximately 20,000 tons of recyclable material from residents' curbside blue containers every year. Over the past several years, pricing and processing of recyclable material has been inconsistent and has increased in cost significantly. Chandler's current contract to process recycling material with United Fibers, located at 390 East Ray Road, expires February 28, 2022, with the option to extend if both parties agree. The City issued a Request for Proposal to solicit for future recycling processing options. Proposals were received from United Fibers, LLC; River Recycling, LLC (Republic Services); and Waste Management of Arizona, Inc. Republic Services submitted the lowest projected cost, with a capped annual adjustment of 3% based on the Consumer Price Index, the highest revenue share, and a five-year term with extensions until September 2030, which coincides with the end of the City's existing collection and disposal contract with Waste Management. Republic Services' proposal is based on an expansion at the Germann Road Transfer Station, which is not expected to receive material until October 2022. Interim options were explored to process recyclables during the time between the expiration of the current United Fibers contract and the completion of Republic Services' Germann Road Transfer Station expansion. A related agreement with United Fibers, LLC, for the processing and marketing of curbside collected recyclable materials in the interim, is also scheduled for this City Council meeting. |
Evaluation: |
On April 13, 2021, City staff issued Request for Proposal No. SW1-926-4307, for the processing and marketing of recyclable materials. Notification was sent to all registered vendors. Three proposals were received from the following offerors:
- River Recycling, LLC (Republic Services)
- United Fibers, LLC
- Waste Management of Arizona, Inc.
The Evaluation Committee evaluated the proposals and recommends award to River Recycling, LLC, who submitted the most advantageous offer to the City in accordance with the evaluation criteria. |
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Fiscal Impact |
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