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CC - CONSENT ITEM: (1) Approval of a Change Order to the Existing Purchase Order with Toter LLC in an Additional Amount of $55,000 to Purchase approximately 745 32-,64- and 96-Gallon Refuse, Recycling, and Organics Carts at approximately $72 Per Cart, Resulting in an Aggregate Amount Not-To-Exceed $175,000 for FY 2021/2022; and (2) Approval of a Purchase Order with Toter LLC for the Purchase of approximately 2,600 32-,64- and 96-Gallon Refuse, Recycling, and Organics Carts at approximately $72 Per Cart for FY 2022/2023 and 2023/2024 in the Amount of $175,000 Annually; and (3) Authorization to the Public Works Director to Approve Two Additional One-Year Terms in an Amount Not-to-Exceed $175,000 for FY 2024/2025, and $175,000 for FY 2025/2026.
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Meeting Date: March 14, 2022
Contact Person/Dept: James Pledger/Public Works EPO
Phone Number: (310) 253-6423
Fiscal Impact: Yes [x] No [] General Fund: Yes [] No [x]
Attachments: []
Commission Action Required: Yes [] No [x] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (3/09/2022)
Department Approval: Yanni Demitri, Director of Public Works, City Engineer (03/01/2022)
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RECOMMENDATION
Staff recommends the City Council (1) approve a change order to the existing purchase order with Toter LLC in an additional amount of $55,000 to purchase approximately 745 32-,64- and 96-gallon refuse, recycling and organic carts at approximately $72 per cart, resulting in an aggregate amount not-to-exceed $175,000 for FY 2021/2022; and (2) approve a purchase order with Toter LLC for the purchase of approximately 2,600 32-,64- and 96-gallon carts for FY 2022/2023 and FY 2023/2024 in the amount of $175,000 annually; and (3) authorize the Public Works Director to approve two additional one-year terms in an amount not-to-exceed $175,000 for FY 2024/2025 and $175,000 for FY 2025/2026.
BACKGROUND/DISCUSSION
The Environmental Programs & Operations Division (EPO) of the Public Works Department provides and services approximately 20,500 refuse, recycling and organics automated carts throughout the city for single family residences, multi-family properties with four units or less and small businesses. Carts are collected weekly with automated side loader vehicles.
Senate Bill (SB) 1383 (Lara, Chapter 395, Statutes of 2016, Short-Lived Pollutants: Methane Emissions Reductions) was signed by then-Governor Jerry Brown, on September 19, 2016, to reduce organics in landfills, a source of methane emissions. According to the Department of Resources Recovery and Recycling (CalRecycle), organic waste accounts for more than a third of the materials in California’s waste stream. A landfill is an anaerobic environment (without oxygen). When organic materials decompose in an anaerobic environment, methane gas is produced. In 2019, methane gas accounted for 10 percent of all U.S greenhouse gas emissions from human activities (US EPA).
SB 1383 sets aggressive organic waste reduction targets to combat methane created by landfilled organics. Related regulations place requirements on multiple entities (including on municipalities, residential households, commercial businesses and business owners, commercial edible food generators, haulers, food recovery organizations, and food recovery services) to support the achievement of statewide organic waste disposal reduction targets set by state legislation.
Municipalities are required to provide organic waste collection to all residences and businesses. The City of Culver City already has organic waste collection services for residential and some commercial properties. This funding will be used to purchase additional equipment needed to meet this requirement for those locations with space constraints which preclude the use of commercial-sized containers and to replace old worn carts being used by residences.
This procurement is exempt from formal bidding procedures per Culver City Municipal Code (CCMC) Section 3.07.055.G. where competitive bid procedures have already been utilized by the City, another public agency or a joint power agency and the goods or supplies are supplied to the City at the same or better price. Because these automated carts, as supplied by Toter LLC, have previously undergone competitive bid procedures with the National Intergovernmental Purchase Alliance (IPA), a national purchasing cooperative, and Toter LLC will supply the same goods or supplies at the same or better rate, this procurement meets the formal bidding exemption provided by CCMC Section 3.07.055.G.
FISCAL ANALYSIS
The FY 2021/2022 purchase order for Toter LLC has a $120,000 appropriation as approved by City Council on September 23, 2019. An additional $55,000 is needed to purchase carts for residences and businesses with space constraints that cannot accommodate a commercial-size container for organic waste service. FY 2021/2022 has sufficient funding in the Refuse Disposal - Department Special Equipment account (20260400.732120) for the cart purchase. Future years funding will be contingent upon budget approval.
ATTACHMENTS
None.
MOTION
That the City Council:
1. Approve a change order for the existing purchase order with Toter LLC in an additional amount of $55,000 to purchase approximately 745 32-,64-, and 96-gallon carts at approximately $72 per cart, resulting in an aggregate amount not-to-exceed $175,000 for FY 2021/2022; and
2. Approve a purchase order with Toter LLC for FY 2022/2023 and 2023/2024 in the amount of $175,000 for each fiscal year; and
3. Authorize the Public Works Director to approve two additional one-year terms in an amount not to exceed $175,000 for FY 2024/2025, and $175,000 for FY 2025/2026.
4. Authorize the Purchasing Officer to issue such change order and purchase orders on behalf of the City.