Title
Resolution to Approve Dumpster Refurbishing Program - ITB 4018 ($129,720.00)
Memorandum
Attached for your review are the results and recommendations for Invitation to Bid (ITB) 4018 to refurbish dumpsters.
As part of the City's commercial refuse franchise, all non-residential refuse dumpster accounts that are currently being serviced by the City will be transferred over to the City's franchise provider Waste Management. This includes businesses that are currently paying a subsidized fee of $39.00 per month per dumpster, as well as nonprofit locations that are receiving the service at no charge. A total of 290 accounts will be transferred as part of this change.
As part of the current service, locations serviced by the City own their dumpsters. Under the new franchise, all of these locations will be receiving Waste Management dumpsters as part of the franchise fee. The transferred accounts will have dumpsters that will be owned and maintained by Waste Management for the duration of the franchise, and will also have City identification placed on them.
To assist customers with the disposition of their current dumpsters, the City will evaluate the condition of individual dumpsters to determine whether they can be refurbished to use in the expanded commercial recycling program, and what that refurbishment cost would be. For those dumpsters that can be refurbished, this cost will be compared with the market value of a refurbished dumpster. The City will make a purchase offer to individual customers based on this differential. Those that accept the offer will have their dumpster removed at the same time their new City-franchise dumpster is delivered. Those that make other arrangements for their dumpsters will be responsible for removing that dumpster when the franchise dumpster is delivered.
Dumpsters that cannot be refurbished will be removed by the contractor and recycled for scrap steel. The City will not charge the customer for this service.
City staff have conducted a preliminary evaluation of existing dumpsters and developed an estimate on the scope of repairs that are needed. It is estimated that 200 of the 290 dumpsters could be refurbished as part of this program. This information was used to develop the scope of work as outlined in ITB 4018.
The 200 dumpsters will be used as part of the expanded commercial recycling program. These dumpsters will be delivered by the selected contractor over the next two years to locations that request a cardboard recycling dumpster. City Field Operations staff will continue to service this program.
The selected contractor for the dumpster refurbishing will inspect all of the targeted dumpsters and provide the City a firm quote on the cost of refurbishing each dumpster, based on the list of quoted service options from ITB 4018. The City will use this information in its discussions with each individual customer.
City staff is recommending Contract Welding for these services. As shown in Attachment A, they are the low bid for this work at $129,720.00. They have provided a substantial amount of dumpster work for the City in the past. In addition to the repair costs, the quoted services below include the pickup of the dumpsters from their existing sites, as well as delivery of the dumpsters to their new location as part of the recycling program. Also included is a 25% contingency for the project, to allow for fact that the estimate was based on a sampling of inspections by the City.
Staff
Prepared by: Tom McMurtrie, Systems Planning Unit
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, the new City commercial refuse dumpster franchise program will provide and maintain dumpsters for all customers;
Whereas, All non-residential locations that are currently serviced by City Field Operations will be transferred over to the franchise program;
Whereas, Current City dumpster accounts own their dumpsters;
Whereas, The City will be needing dumpsters for the expanded commercial recycling program;
Whereas, Based on the results of ITB 4018, it will be cost-effective for the City to refurbish approximately 200 of the 290 dumpsters from locations that will be transferred to the franchise;
Whereas, Contract Welding is the low bid for ITB 4018, totaling $129,720.00;
Whereas, Contract Welding received HR approval on January 20, 2009; and
Whereas, Funds for this project are available in the Fiscal Year 2010 Solid Waste Operations and Maintenance Budget if so approved by Council;
RESOLVED, That City Council approves issuing a Service Purchase Order with Contract Welding in an amount not exceed $129,700.00 for dumpster refurbishing;
RESOLVED, That funds be made available for the life of this project, without regards to fiscal year; and
RESOLVED, That the City Council authorizes the City Administrator to take any necessary administrative actions to implement this resolution.