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Title:
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Approval of an Amendment to an the Existing Professional Services Agreement with Bestway Recycling, Inc. to Purchase Recycling Material from the City Public Works Environmental Programs and Operations Division for an Additional One Year Period.
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City of Culver City, California
Agenda Item Report
Meeting Date: 12/12/11 Item Number: C-6
CITY COUNCIL AGENDA ITEM: Approval of an Amendment to the Existing
Professional Services Agreement with Bestway Recycling, Inc. to Purchase
Recycling Material from the City for an Additional One Year Period.
Contact Person/Dept.:
Damian Skinner/Public Works
Phone Number:
(310) 253-6421
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 (12/08/11); Sustainability and
Environmental Issues (12/08/11)
Department Approval:
Charles D. Herbertson (12/01/11)
City Attorney Approval:
Carol Schwab (by H. Baker) (12/07/11)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (12/08/11)
City Manager Approval:
John M. Nachbar (12/08/11)
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:
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 a two or three cubic yard bin and
homeowners are provided a large 96-gallon blue recycling container to deposit their
recyclable material.
DISCUSSION:
Bestway has been an ideal 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:
City of Culver City, California
Agenda Item Report
• There is nominal vehicle expense and fuel cost to haul recyclable material to
Bestway because of its close proximity to the Transfer Station.
• Since the City’s 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 recyclable 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 recyclable
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.
During the term of the amended agreement, staff negotiated with Bestway to
increase the commingled recyclable material rate from $37 per ton to $40 per ton.
Loose corrugated cardboard will remain at 70% Official Board Markets rate (OBM)
and baled corrugated cardboard will be sold to Bestway at $150 per ton.
FISCAL ANALYSIS:
On average, the City collects and recycles 4,350 tons of mixed recyclable material
and 1,107 tons of corrugated cardboard annually. Approval of the proposed
amendment with Bestway will generate approximately $340,050 in revenue and
avoid approximately $246,984 in disposal costs over the one-year term of the
agreement.
ATTACHMENTS:
None
MOTION:
That the City Council:
1. Approve an amendment to the existing professional services agreement with
Bestway Recycling, Inc. to purchase recyclable material, from December 12, 2011 until
December 31, 2012 for a price of $40 per ton for commingled recyclable material, 70% City of Culver City, California
Agenda Item Report
Official Board Markets rate (OBM) for loose corrugated cardboard, and $150 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.