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Title:
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Approval of an Amendment to an Existing Professional Services Agreement with Bestway Recycling, Inc. to Purchase Recycling Material from the Public Works Refuse and Recycling Division for an Additional One Year Period.
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City of Culver City, California
Agenda Item Report
Meeting Date: 09/27/10 Item Number: C-4
CITY COUNCIL AGENDA ITEM: Approval of an Amendment to an Existing
Professional Services Agreement with Bestway Recycling, Inc. to Purchase
Recycling Material from the Public Works Refuse and Recycling Division for an
Additional One Year Period.
Contact Person/Dept.: Catherine Vargas Phone Number: 310.253.6411
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: []
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: Meetings and Agendas – City Council (09/23/10); Sustainability and
Environmental Issues (09/23/10)
Department Approval:
Charles D. Herbertson(09/17/10)
City Attorney Approval:
Carol Schwab (by H. Baker) (09/20/10)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (09/22/10)
City Manager Approval:
John M. Nachbar (09/22/10)
RECOMMENDATION:
Staff recommends that the City Council approve an amendment to the existing
professional services agreement with Bestway Recycling, Inc. to purchase aluminum,
paper, glass, corrugated cardboard, and plastics (recyclable material) generated by the
City’s recycling programs for an additional one year period.
BACKGROUND:
The Public Works Environmental Programs and Operations Division (EPO) operates
an exclusive franchise to collect solid waste and recycling material within the City of
Culver City. EPO also plans and implements waste diversion programs that divert
recyclable material from the landfill.
As part of the City’s waste diversion programs, EPO operates a commercial and a
residential curbside mixed recyclables collection program. The mixed recyclables
program allows Culver City businesses and residents to combine all of their
recyclable material into one container rather than separating them into several
containers. Commercial businesses are provided two or three cubic yard containers
and homeowners are provided a large 96-gallon blue recycling container to deposit
their recycling material.
City of Culver City, California
Agenda Item Report
DISCUSSION:
Bestway has been an optimal partner for EPO’s collection operations. The Bestway
material recovery facility is located two blocks east of the City’s Transfer Station. As
a result of the close proximity, EPO is able to optimize its recycling collection
operations due to the following:
• There is little vehicle expense and fuel cost to hauling recyclable material to
Bestway because of the close proximity to the Transfer Station.
• Because collection vehicles can haul directly to the Bestway facility no
material is stored on the Transfer Station tipping floor, eliminating the need to
separate and store material.
• Bestway will accept a commingled stream of recycling material from the City.
Pursuant to Culver City Municipal Code Section 3.07.085.A, a contract for personal or
professional services is not required to be formally bid, provided that the contract is
based upon competitive quotations whenever practical.
EPO surveyed the local recycling market for a recycler that will purchase mixed recycle
material at competitive rates, provide the high level of service that is provided by
Bestway, and is located in close proximity to the Transfer Station. Staff found that there
are very few companies that are located within a reasonable distance from the Transfer
Station that provide a comparable level of service to Bestway.
For the new agreement, staff negotiated with Bestway to increase the commingled
recyclable material rate from $23 per ton to $37 per ton. Loose corrugated
cardboard will remain at 70% Official Board Markets rate (OBM) and baled
corrugated cardboard will be sold to Bestway at $145 per ton. These rates are in
line with the rates the City of Los Angeles receives for the same material.
FISCAL ANALYSIS:
On average, EPO collects and recycles 4,336 tons of mixed recyclable material and
1,107 tons of corrugated cardboard annually. Entering into an agreement with
Bestway will generate approximately $320,947 in revenue and avoid approximately
$185,062 in disposal costs over the one-year term of the agreement.
ATTACHMENTS:
None
City of Culver City, California
Agenda Item Report
MOTION:
That the City Council:
1. Approve an amendment to the existing professional services agreement with
Bestway Recycling, Inc. to purchase recyclable material, from September 1,
2010 until August 31, 2011 for a price of $37 per ton for commingled
recyclable material, 70% Official Board Markets rate (OBM) for loose
corrugated cardboard, and $145 per ton for baled corrugated cardboard; and,
2. Authorize the City Attorney to review/prepare the necessary documents; and,
3. Authorize the City Manager to execute such documents on behalf of the City.