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CC - CONSENT ITEM: (1) Approval of a Purchase Order with Hedstrom Environmental to Purchase Refuse, Recycling, and Organics Plastic Containers, in an Amount Not-to-Exceed $230,000 Annually for FY 2022/2023, FY 2023/2024, and FY 2024/2025; and (2) Authorization to the Purchasing Officer to Approve Additional Purchase Orders for FY 2025/2026 and FY 2026/2027 in an Amount Not-to-Exceed $230,000 Annually.
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Meeting Date: July 11, 2022
Contact Person/Dept: Sean Singletary/Public Works - EPO
Phone Number: 310-253-6457
Fiscal Impact: Yes [X] No [ ] General Fund: Yes [ ] No [X]
Attachments: Yes [ ] No [X]
Commission Action Required: Yes [ ] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (07/07/2022)
Department Approval: Yanni Demitri, Public Works Director/City Engineer (06/23/2022)
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RECOMMENDATION
Staff recommends the City Council (1) approve a purchase order with Hedstrom Environmental to purchase refuse, recycling, and organic plastic containers, in an aggregate amount not-to-exceed $230,000 annually for FY 2022/2023, FY 2023/2024, and FY 2024/2025; and (2) authorize the Purchasing Officer to approve additional purchase orders for FY 2025/2026 and FY 2026/2027 in an amount not-to-exceed $230,000 annually.
BACKGROUND
Senate Bill (SB) 1383 (Lara, Chapter 395, Statutes of 2016, Short-Lived Pollutants: Methane Emissions Reductions) was signed by Governor Jerry Brown on September 19, 2016, to reduce organic materials in landfills, which is the 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.
The Environmental Programs & Operations Division (EPO) of the Public Works Department provides and services approximately 2,500 refuse, recycling, and organics containers throughout the city for multifamily and commercial customers, in addition to 20,500 refuse, recycling and organics carts that are typically used for smaller generators such as single-family residences, small businesses and small multi-family properties under four units.
Culver City is required to provide organic waste collection to all residents and businesses by December 23, 2023. The City already currently provides organic waste collection services for single-family residential and some commercial properties. This funding will be used to purchase additional containers needed to meet this requirement for remaining businesses and multi-family customers, as well as to replace existing equipment that has exceeded its useable life and has become unrepairable.
With this action, the City will purchase approximately 180 (one hundred and eighty) 2-cubic yard and 3-cubic yard plastic containers at approximately $1,150 per container. Plastic containers are ideal for handling commercial and organics waste. The containers are lightweight which makes the container easier to maneuver, and use of these containers has resulted in fewer injuries and workers’ compensation claims, as well as reduced maintenance costs.
Hedstrom Environmental is the only manufacturer that provides pockets molded into the container. Other manufacturers of plastic containers have channel sleeves which are bolted into the container. The benefit of the single-mold containers is that they lack bolts/plugs or screws that can cause leakage, rust, or tears to the body of the container, resulting in less wear and tear, no leakage impacting the ground around the container, and channel sleeves that are less likely to be torn off the container over time.
Hedstrom is the only company providing single mold plastic two-, three- and four-yard refuse, recycling and organics containers. Per Culver City Municipal Code Section 3.07.055.C, these services are exempt from formal competitive bid requirements as Hedstrom is the sole source for procurement of this product. The Public Works Department has determined, in writing, after conducting a good faith review that there is only one source for the requested equipment, goods, supply, or service. Hedstrom Environmental has provided written documentation confirming it is the only company that can provide this specific product. Therefore, this purchase qualifies as sole source.
FISCAL ANALYSIS
The Adopted Budget for Fiscal Year 2022/2023 has sufficient funding in the Refuse Disposal - Department Special Equipment account (20260400.732120) for the container purchase. Future years’ funding will be contingent upon budget approval.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Approve a purchase order with Hedstrom Environmental to purchase refuse, recycling and organics containers in an amount not-to-exceed $230,000 annually for FY 2022-2023, FY 2023-2024, and FY 2024-2025; and
2. Authorize the Purchasing Officer to approve additional purchase orders for FY 2025- 2026 and FY 2026-2027 in an amount not-to-exceed $230,000 annually; and
3. Authorize the Purchasing Officer to issue the purchase orders on behalf of the City.