Collection Service Agreement for Residential and Commercial Garbage, Recyclable Material and Organic Waste: Best And Final Offer (BAFO) Results
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1 Collection Service Agreement for Residential and Commercial Garbage, Recyclable Material and Organic Waste: Best And Final Offer (BAFO) Results PRESENTATION TO: Town of Windsor Town Council June 13, 2017
2 BAFOs Received BAFOs were received from three of the five proposers: GreenWaste Recovery, Inc. (GW) Sonoma County Resource Recovery, LLC. (SCRR) Windsor Refuse and Recycling, LLC. (WR&R) Two proposers are no longer being considered: C&S declined to submit a BAFO USA retracted their BAFO submittal SLIDE 2
3 Sonoma County Resource Recovery, LLC. (SCRR) No changes due to BAFO Company has never operated as SCRR (conglomerate of 3 entities in Bay Area) Requires SFD split cart recycling collection: fiber and containers in separate compartments Offered to operate split truck collection 2 stops/house Fully committed to meeting diversion requirements and provided sound approach Well-developed education and outreach plan Will process recyclables at their San Rafael MRF Requires local direct transfer operations purchase and construction of a new transfer facility SLIDE 3
4 GreenWaste Recovery, Inc. (GW) Changes due to BAFO Previously held Petaluma contract; operates in Bay Area Will operate split truck collection 2 stops/house Fully committed to meeting diversion requirements and included sound approach Proposed to exceed Town s diversion requirements Well-developed education and outreach plan Will process recyclables at their San Jose MRF Requires local direct transfer operations purchase and construction of transfer and limited processing in Petaluma SLIDE 4
5 Windsor Refuse and Recycling, LLC. (WR&R) Changes due to BAFO Announced sale to Recology after proposal was submitted; creates many unknown technical elements Joint venture: The Ratto Group and Industrial Carting Currently provides services, which makes for less needed transition activities Use of a third-party contractor for design of education and outreach plan Proposes to use Recology processing facility in Vallejo for source-separated recyclables Industrial Carting to transfer recyclables Proposes to use renovated facility at 3417 Standish Avenue assuming facility receives permits Proposes to process dry commercial mixed waste at the new MRF at the Central Landfill SLIDE 5
6 BAFO Comparisons BAFO Request GW SCRR WR&R 1. Brief summary of proposed services No change No change No change 2. Updated Rates Changed see attached Changed see attached Changed see attached 3. Basis for estimated annual revenue Small Increase Small Decrease Small Decrease Change 4. Processing facilities 5. Non-processing facilities No change No change MRF: Recology Vallejo MRF Republic Dry Commercial Mixed Waste MRF at Central Landfill No change No change No change SLIDE 6
7 BAFO Comparison BAFO Request GW SCRR WR&R 6. Changes in ownership, organization, staff or subcontractors No change No change No change Change Change 7. Brief contingency plan Direct haul recyclable materials GW s MRF in San Jose. In discussions with local entities to secure transfer capacity Direct haul recyclable materials to Marin Recycling Center in San Rafael Did not include contingency for nonprocessing facilities No change 8. Brief updated operations plan 9. Brief updated sustainability plan Did not include contingency for nonprocessing facilities No change No change No change No change No change No change SLIDE 7
8 BAFO Comparison BAFO Request GW SCRR WR&R 10. Will you meet diversion requirements and all associated penalties in 6/7 CSA? 11. Can your company begin service 10/1/17? 12. Will you agree to add CEQA indemnification language to CSA? 13. Will your company sign the CSA as is in 6/7 agenda? Yes Yes Yes Yes Yes New carts can be delivered in Sept 4 to 6 month for new trucks Yes No No, but willing to discuss Yes Yes Yes (excluding CEQA indemnification) Yes SLIDE 8
9 Issues Related to Using Revenue as Selection Factor Service Recipient Rates were evenly weighted with all evaluation criteria Subscription data may not be accurate Revenue estimates are a snapshot and do not consider: Account migration Free Multifamily / Commercial recycling may provide disincentive to customers to migrate to lower garbage service Implementation of Multifamily / Commercial organics service SLIDE 9
10 Overall RFP Conclusions All customers will have rate increases The 3 remaining proposers committed to an October 1, 2017 start date The Town is not procuring any facilities It is the responsibility of the Proposers to figure out what is needed to operate efficiently Both SCRR and WR&R would: Need to immediately submit the required exhibits and workplans in order to complete the CSA Require clarification of rate elements SLIDE 10
11 Proposal/BAFO Conclusion SCRR Ranked highest during evaluation process Unclear permitting requirements for proposed facilities for local operations and direct transfer facility Provided clear contingency plan Can operate daily operations out of its San Rafael location Highest overall rates/revenue estimates Included customer accounts for MFD and Commercial recycling and organics services which increases SCRR s revenue estimates SLIDE 11
12 Proposal/BAFO Conclusions GW Ranked 2 nd highest during evaluation process Unclear permitting of proposed local operations, transfer and limited processing facility Did not provide contingency on how daily operations will be run if their Petaluma facility is not operational by October 1, nd overall lowest rates/revenue requirements May have underestimated multifamily and commercial revenue SLIDE 12
13 Proposal/BAFO Conclusions WR&R Ranked lowest during evaluation process Unclear who the Town is contracting with Potential purchase by Recology Recology did not submit a proposal Subject to $1,000,000 assignment Recology s June 6, 2017 letter raises issues related to assignment on mutually acceptable contract terms Lowest overall rates/revenue requirements Did not include customer counts for multifamily and commercial recycling or dry mixed waste processing to support their diversion estimates May have underestimated commercial revenue Agreed to include CEQA indemnification language in CSA SLIDE 13
14 Council Action Provide direction to staff on award of contract; Adopt a resolution awarding a Collection Service Agreement ( CSA ); and Authorize the Town Manager to execute and implement the CSA; and Approve maximum service rates, effective October 1, SLIDE 14
15 Extra Slides SLIDE 15
16 Rate Comparison - Single-Family Dwelling Rate TABLE 1 SFD SERVICE RECIPIENT RATE COMPARISON Proposed Rates Garbage Container Size # of Current Customers Current Monthly Rates BAFO GW WR&R SCRR 20 gal 860 $11.11 $19.00 $14.86 $ gal 3,706 $17.20 $23.00 $23.00 $ gal 2,749 $29.31 $36.00 $39.19 $ gal 442 $47.52 $49.00 $55.38 $59.00 SLIDE 16
17 Rate Comparison - Multi-Family Dwelling - Garbage Garbage Container Size TABLE 2 MFD GARBAGE SERVICE RECIPIENT RATE COMPARISON # of Current Current Proposed Rates Customers (all Monthly GW WR&R SCRR frequencies) Rates 32 gal 9 $17.20 $40.82 $40.07 $ gal 7 $29.30 $61.98 $59.80 $ gal 1 $47.52 $84.84 $84.38 $ CY 0 N/A $ $ N/A 1.5 CY 0 $ $ $ $ CY 8 $ $ $ $ CY 16 $ $ $ $ CY 28 $ $ $ $ CY 2 $ $ $ $ CY Per Pull N/A N/A $ $ $ CY Per Pull N/A $ $ $ $ CY Per Pull N/A $ $ $ $ CY Per Pull N/A $ $ $ $ Compactor N/A $ $ $ $ SLIDE 17
18 Rate Comparison - Multi-Family Dwelling - Recycling TABLE 3 MFD RECYCLING SERVICE RECIPIENT RATE COMPARISON Garbage Container Size # of Current Customers (all frequencies) Current Monthly Rates GW Source Separated GW Dry Mixed Waste Processing Proposed Rates WR&R Source Separated WR&R Dry Mixed Waste Processing 32 gal 0 $0.00 $6.70 $40.82 $0.00 $35.48 N/A 64 gal 0 $0.00 $9.53 $61.98 $0.00 $50.62 N/A 96 gal 6 $0.00 $12.66 $84.84 $0.00 $70.62 $ CY SCRR 0 $0.00 $33.28 $ $0.00 $ N/A 1.5 CY 0 $0.00 $43.11 $ $0.00 $ $ CY 0 $0.00 $51.56 $ $0.00 $ $ CY 4 $0.00 $68.17 $ $0.00 $ $ CY 10 $0.00 $69.50 $ $0.00 $ $ CY 8 $0.00 $83.00 $ $0.00 $ $ CY N/A $0.00 $ $ $0.00 $ $ CY N/A $0.00 $ $ $0.00 $ $ CY N/A $0.00 $ $ $0.00 $ $ CY N/A $0.00 $ $ $0.00 $ $ Compactor N/A $0.00 $ $ $0.00 $ $ SLIDE 18
19 Rate Comparison - Multi-Family Dwelling - Mixed Organics TABLE 4 MFD ORGANICS SERVICE RECIPIENT RATE COMPARISON Garbage Container Size # of Current Customers (all frequencies) Current Monthly Rates Proposed Rates GW WR&R SCRR 32 gal 0 $12.90 $40.82 $32.40 N/A 64 gal 0 $21.98 $61.98 $44.47 $ gal 5 $35.64 $84.84 $61.39 N/A 1 CY 0 $0.00 $ $ N/A 1.5 CY 0 $ $ $ $ CY 0 $ $ $ $ CY 0 $ $ $ $ CY 0 $ $ $ $ CY 0 $ $ N/A N/A 10 CY N/A N/A $ $ $ CY N/A N/A $ $ $ CY N/A N/A $ $ $ CY N/A N/A $ $ $ Compactor N/A N/A $ $ $ SLIDE 19
20 Rate Comparison - Commercial - Garbage TABLE 5 COMMERCIAL GARBAGE SERVICE RECIPIENT RATE COMPARISON Garbage Container Size # of Current Customers (all frequencies) Current Monthly Rates Proposed Rates GW WR&R SCRR 32 gal 11 $32.05 $40.82 $40.07 $ gal 10 $39.17 $61.98 $59.80 $ gal 37 $43.74 $84.84 $84.38 $ CY N/A N/A $ $ N/A 1.5 CY 24 $ $ $ $ CY 34 $ $ $ $ CY 47 $ $ $ $ CY 57 $ $ $ $ CY 12 $ $ $ $ CY N/A $ $ $ $ CY N/A $ $ $ $ CY N/A $ $ $ $ CY N/A $ $ $ $ Compactor N/A $ $ $ $ SLIDE 20
21 Rate Comparison - Commercial - Recycling Garbage Container Size TABLE 6 COMMERCIAL RECYCLING SERVICE RECIPIENT RATE COMPARISON Proposed Rates Current GW WR&R Monthl GW Source Dry Mixed Source y Rates Separated Waste Separated # of Current Customers (all frequencies) WR&R Dry Mixed Waste Processing Processing 32 gal 0 $0.00 $6.70 $40.82 $0.00 $35.48 N/A 64 gal 0 $0.00 $9.53 $61.98 $0.00 $50.62 N/A 96 gal 46 $0.00 $12.66 $84.84 $0.00 $70.62 $ CY SCRR 2 N/A $33.28 $ $0.00 $ N/A 1.5 CY 7 $0.00 $43.11 $ $0.00 $ $ CY 31 $0.00 $51.56 $ $0.00 $ $ CY 45 $0.00 $68.17 $ $0.00 $ $ CY 69 $0.00 $69.50 $ $0.00 $ $ CY 8 $0.00 $83.00 $ $0.00 $ $ CY N/A N/A $ $ $0.00 $ $ CY N/A N/A $ $ $0.00 $ $ CY N/A N/A $ $ $0.00 $ $ CY N/A N/A $ $ $0.00 $ $ Compactor N/A N/A $ $ $0.00 $ $ SLIDE 21
22 Rate Comparison - Commercial Mixed Organics Garbage Container Size TABLE 7 COMMERCIAL ORGANICS SERVICE RECIPIENT RATE COMPARISON # of Current Customers (all frequencies) Current Monthly Rates Proposed Rates GW WR&R SCRR 32 gal 0 $24.04 $40.82 $32.40 N/A 64 gal 4 $29.38 $61.98 $44.47 $ gal 16 $32.81 $84.84 $61.39 N/A 1 CY 0 N/A $ $ N/A 1.5 CY 0 $ $ $ $ CY 1 $ $ $ $ CY 0 $ $ $ $ CY 0 $ $ $ $ CY Bin Total Rate N/A N/A $ N/A N/A 10 CY N/A N/A $ $ $ CY N/A N/A $ $ $ CY N/A N/A $ $ $ CY N/A N/A $ $ $ Compactor N/A N/A $ $ $ SLIDE 22
23 Rate Comparison - Commercial Source Separated Food Waste Garbage Container Size # of Current Customers (all frequencies) TABLE 8 COMMERCIAL SOURCE SEPARATED FOOD WASTE Current Monthly Rates Proposed Rates GW WR&R SCRR 32 gal 0 $24.04 $24.68 $36.58 N/A 64 gal 4 $29.38 $39.09 $52.82 N/A 96 gal 16 $32.81 $54.16 $73.91 N/A 1 CY N/A 0 N/A $ $ CY N/A 0 $ $ $ CY N/A 1 $ $ $ CY N/A 0 $ $ $ CY N/A 0 $ $ $ CY Bin Total Rate N/A N/A $ N/A N/A 10 CY N/A N/A $ N/A N/A 20 CY N/A N/A $ N/A N/A 30 CY N/A N/A $ N/A N/A 40 CY N/A N/A $ N/A N/A Compactor N/A N/A $ N/A N/A SLIDE 23
24 SCRR Waste Flow SLIDE 24
25 WR&R Waste Flow Client Project Title SLIDE 25
26 GW Waste Flow Client Project Title SLIDE 26
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