Title
Compost Facility Operations and Products Marketing Contract RFP 25-SW-015 - Request for Award (Ordinance S-51459) - District 7
Description
Request to authorize the City Manager, or his designee, to enter into a contract with WeCare Denali, LLC to provide operation of the 27th Avenue Compost Facility and marketing of the finished compost for the Public Works Department. Further request to authorize the City Controller to disburse all funds related to this item. The total value of the contract will not exceed $28,600,000.
Summary
The Contractor's obligation will be to operate the City's 27th Avenue Compost Facility. This includes processing the organics to meet composting market specifications and creating economic value by marketing, selling, and transporting the finished compost regionally. The facility can process up to 55,000 tons of organics per year that includes the yard trimmings delivered to the City's transfer stations from Phoenix residents and landscapers. The facility also processes food scraps delivered from other city departments, WeCare Denali, and City-sponsored mega zero waste events, including the Super Bowl and Men's College Basketball Final Four. Over the term of the agreement, the contractor will invest $8,000,000 in equipment upgrades and will partner with the city on other site upgrades as needed. The Contractor will also maintain the compost facility, including all mobile and stationary equipment, provide staffing, materials, supplies, and equipment required for composting operations and to maintain compliance with environmental regulations.
Procurement Information
A Request for Proposal was processed in accordance with City of Phoenix Administrative Regulation 3.10. One vendor submitted proposals deemed responsive and responsible. An evaluation committee consisting of representatives from the Public Works Department, Fire Department and City of Mesa evaluated the offer based on the criteria established in the RFP.
After reaching consensus, the evaluation committee recommends award to the following vendor: WeCare Denali, LLC.
Contract Term
The contract will begin on or about March 1, 2025 for an initial seven-year term with three one-year options to extend.
Financial Impact
The estimated operating cost over the 10-year contract is approximately $28,600,000 based on a forecasted processing rate, which includes consumer price index adjustments. The estimated operating cost also includes funding for potential cost-sharing projects for facility upgrades over the term of the contract.
Funding is available in the Public Works Department's budget.
Location
27th Avenue Compost Facility
3060 S 27th Avenue
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Works Department.