Title
RFP No. 2017-020 - Annual Contract for Recyclables Processing & Marketing.
(Authorize the City Manager to finalize and execute a contract with FCC Spain.)
Body
Bid notices were broadcast through the BidSync electronic bidding system, posted on the City’s website and an Advertisement for Bid was published in the Daily Commercial Record newspaper. A total of three responses were received, two bids and one no bid from Waste Management. Using the scoring matrix in the RFP, staff evaluated both bidding companies and has determined that the proposal from FCC Spain to be the most advantageous to the City. FCC Spain had an average score of 94 and Community Waste Disposal, the City’s current processor, had an average score of 56. Under the Revenue Sharing Agreement proposed by FCC Spain, the City will receive a rebate of 60 percent of the net revenue share for recycled materials. The proposed contract with FCC Spain includes a $79.65 per ton processing fee with a “zero floor”. A “zero floor” means that if the processing fees exceed the revenue generated from the sale of the recycled materials, FCC Spain will assume responsibility for the deficit, not the City.
FCC Spain meets all of the specifications and is the best overall value to the City. The term of the contract is for one year with four additional one-year renewal options.
Financial Implications
If declines in the commodities market occur, FCC Spain will be responsible for any potential deficit, and the City will never experience a fee for the processing of its recycled materials. The FCC Spain recycling facility is only 15 miles from the City resulting in significant transportation cost savings through reduced overtime, drive time, and wear and tear on City equipment.
Recommended/Desired Action
Staff recommends award to FCC Spain.
Attachment(s)
Best Value Matrix
Drafter
Kathy Fonville/Kimberly Evans-Baker
Head of Department
Tim S James, PE