Title
Recycling of Plastics - Requirements Contract - IFB 23-SW-005 (Ordinance S-48565)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with B&L Polymers Processing, Inc. for plastics recycling on an as-needed basis. Further request to authorize the City Treasurer to accept, and for the City Controller to disburse, all funds related to this agreement.
Report
Summary
The contractor will receive and collect, shred and recycle damaged residential containers constructed of various types of plastic that are no longer able to be used and are outside of the warranty period. Approximately 17,000 containers are taken out of service each year. The contractor will also receive and collect mixed plastics that are disposed of at the City's transfer stations, approximately 100-300 tons annually. The mixed plastics are separated and sorted into 40-cubic-yard metal roll-off boxes to be hauled to the contractor's place of business either by the department or contractor.
Procurement Information
Invitation for Bid (IFB) 23-SW-005 was conducted in accordance with Administrative Regulation 3.10. One bid was received on Feb. 23, 2022. The bid was determined to be responsive and responsible to all terms and conditions and specifications. Contract revenue pricing is based on various types of plastic and per pound rate, and hauling rate is per box. The following is a tabulation of the bid received from B&L Polymers Processing, Inc.:
Group 1 - Plastic Container Recycling
Revenue per pound to the City
$0.0525 per pound - MDPE
$0.0825 per pound - HDPE
$0.0125 per pound - XLPE
$0.0725 per pound - LLDPE
Group 2 - Consumer Plastics Recycling
Revenue per pound to the City
Mixed Rigid Plastics - $0.015 per pound
Hauling Fee - 40-cubic-yard roll-off box
27th Ave. Transfer Station - $220.00 per box
North Gateway Transfer Station - $235.00 per box
Contract Term
This contract is to begin on or about June 1, 2022 for one year. Provisions of the agreement include an option to extend up to four additional years, to be taken in one-year increments.
Financial Impact
The aggregate contract value of the revenue generated to the City is approximately $260,000 with an estimated annual revenue of $52,000. The aggregate expenditure over the life of the contract is $100,000, with an estimated annual expenditure of $20,000.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works Department.