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Trash and Recycling Bid Recommendation Follow-up Information
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Summary and Background Information:
RESOLUTION 2019-109 (Amended At time Of Approval) - “APPROVING THE SELECTION OF REPUBLIC SERVICES, INC. TO PROVIDE THE CURBSIDE GARBAGE AND RECYCLING PROGRAM AND AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A CONTRACT” was passed by City Council on 7 October 2019 (see Attachment #1). Council also requested staff obtain a bid from Republic Services, Inc. for weekly recycling. In response to this request, staff has prepared the following presentation - “Trash and Recycling Bid Recommendation Follow-up Information” (see Attachment #2).
The current curbside refuse collection contract expires at the end of 2019. On 8 July, staff presented information to City Council on the current program and requested input on program elements for the 2019 Curbside Refuse Collection RFP (see Attachment #3). Public Works published/advertised the RFP on 7 August, with bids due 3 September (see Attachment #4). On 23 September, staff presented City Council the RFP bid results, as well as, responses to supplemental questions/comments submitted by one of the respondents (see Attachments #5 & #6). Staff also constructed/produced a RFP Response Worksheet compiling/comparing each respondent’s submission(s) (see Attachment #7). On 7 October, staff presented with its recommendation to City Council based on RFP bid results (to include the aforementioned Attachments). Council requested staff obtain bid for weekly recycling from recommended vendor.
Staff Responsible (Department Head): Joe Wilson, Director of Public Works
Staff Member Presenting: Mike Brown, Deputy Director of Operations
Financial Impact: TBD
Funding Source: TBD
Staff Recommendation:
Select Republic Services' Base Bid for a 5 year contract. Staff recommends City Council NOT select Bid Alternate #1 (weekly recycling pickup) for the following reasons:
• There is no evidence to indicate that weekly recycling pickup would reduce contamination rates (non-recyclables mixed in with recyclables) or increase diversion rates (amount of overall refuse diverted to a recycling center for actual recycling).
- Historic annual diversion rates for Commerce City are approximately 15%. Once the contamination rate is applied, the actual annual historic diversion rates are approximately 11% of all refuse collected.
- In 2018, the cost per ton to collect and process recycling was over 3 times the cost per ton to collect and process garbage. In general, the industry cost of processing recycling rose significantly in 2019 and is likely to continue with similar increases in 2020 and beyond.
• The $3.80 per unit/per month cost for weekly recycling pickup would be applied to all residential units currently in the refuse collection program. This would add approximately $785,460 to the cost of the program for 2020 (based on an average of 17,225 units in service for 2020). This cost would also increase annually as the City expands and adds additional units or homes.
• Heavy or diligent recyclers who would benefit the most from weekly recycling may obtain an additional 96-gallon recycling tote from Republic Services for $1.75 per month. (The current proposal allows residents to choose two (2), 96-gallon trash totes or one (1), 96-gallon trash tote and one (1), 96-gallon recycle tote at no cost).