Title
Transforming Trash into Resources II: Carpeting and Carpet Foam, Latex Paint, and Urban Wood Diversion (Ordinance S-43500)
Description
Request to authorize the City Manager, or his designee, to enter into separate agreements with GIS Consulting, Green Sheen Paint & Design, Inc., and Edgewood Lumber and Sawmill, LLC, to provide waste diversion services. Further request authorization for the City Controller to disburse all funds associated with this item.
Report
Summary
In February 2013, the Mayor and City Council established a citywide goal to divert 40 percent of solid waste from the landfill by the year 2020. Since 2013, the City's diversion rate has increased from 16 percent to 20 percent. In April 2016, this goal was expanded to achieve Zero Waste by 2050. In order to meet these goals and improve the City's diversion rate, the Public Works Department launched the Reimagine Phoenix initiative. The initiative has a three-pronged approach:
1. Offer new solid waste services;
2. Increase education and community outreach; and,
3. Create public-private partnerships, centered on developing waste diversion strategies and economic development opportunities.
In March 2015, the Public Works Department issued the Transforming Trash into Resources Request for Proposals (RFP), resulting in two contracts to divert mattresses and residential food waste, respectively, from the City's waste stream. To date, Goodwill of Central Arizona has diverted 5,449 mattresses from the City's landfill. During the past year, Recycled City has diverted from the landfill approximately 4,500 pounds of food scraps and other material and turned it into compost for use at a local farm.
Procurement
In October 2016, the Public Works Department issued the Transforming Trash into Resources II Request for Proposals to identify new partners for diversion of carpeting and carpet foam, latex paint, and urban wood. A diverse selection panel, including representatives from the City and community stakeholders, evaluated the proposals based on business plan (450 points), community impact (350 points), and qualifications and experience (200 points). The results are listed below by type of material.
Carpeting and Carpet Foam
An estimated 900 tons of waste carpeting and carpet foam are disposed at the City's landfill each year.
GIS Consulting was the only proposer for this category and the panel unanimously recommends entering into a contract with the company. The contractor will implement a pilot program to repurpose approximately 100 tons of carpeting and carpet foam into blown insulation and concrete brick.
Latex Paint
Each year, the City receives an estimated 11,000 gallons of waste latex paint primarily through the City's Household Hazardous Waste (HHW) events. Currently, the City ships waste latex paint to a recycling facility in California at a cost of $5 per gallon. Two proposals were received for this category:
- 3-R Exchange, LLC: 719 points
- Green Sheen Paint & Design, Inc.: 940 points
The panel unanimously recommends entering into a contract with Green Sheen Paint & Design, Inc. (Green Sheen). Green Sheen will collect usable latex paint from the City's transfer stations and at HHW events to be processed at its Phoenix facility for resale. Green Sheen expects to create 12 to 15 new jobs over the life of the contract.
Urban Wood
The City landfills approximately 130 tons of tree trunks and large stumps annually. Two proposals were received for this category:
- Wineglass Bar Sawmill, LLC: 831 points
- Edgewood Lumber & Sawmill, LLC: 880 points
The panel unanimously recommends entering into a contract with Edgewood Lumber and Sawmill, LLC (Edgewood). Edgewood will transport tree trunks from the City's transfer stations or other designated locations to its Gilbert facility for processing, and will make a portion of the lumber available to high school wood shop classes in Phoenix.
Contract Term
The initial contract term for Green Sheen and Edgewood will be for three years, with two one-year renewal options, beginning on or about June 6, 2017.
The initial contract term for GIS Consulting will be for six months, with four one-year renewal options, beginning on or about June 6, 2017.
Financial Impact
There is no cost associated with the GIS Consulting and Edgewood contracts.
Green Sheen will charge the City $3.50 per gallon processed, with costs not expected to exceed $56,000 per year or $280,000 over the life of the contract. Funds are available in the Public Works Department's budget.
Concurrence
This item was recommended for approval by the Transportation and Infrastructure Subcommittee on April 11, 2017, by a vote of 3-0.
Department
Responsible Department
This item is submitted by Deputy City Managers Karen Peters and Paul Blue, and the Public Works and Community and Economic Development departments.