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Last modified
1/16/2008 8:45:56 AM
Creation date
1/16/2008 8:41:46 AM
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General
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Curbside Recycling from Eureka
General - Type
Agenda Item
Date
1/14/2008
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<br />RFP for Residential Recycling Services <br /> <br />6. PAYMENT AND DAMAGES <br /> <br />6.1 Compensation for SelVices <br /> <br />The City agrees to pay the Contractor for recycling collection services provided to the City as <br />described in the Contractor's proposal, and made part of an executed contract, based on the <br />number of household units certified by the City. By November 1st of each year the City will <br />review the number of certified units and notify Contractor of any changes. <br /> <br />Contractor shall submit itemized bills for recycling collection services provided to the City on a <br />monthly basis. Bills submitted shall be paid in the same manner as other claims made to the <br />City. <br /> <br />The Contractor shall submit the monthly documentation and reports as detailed in Section 4.22 <br />with the monthly bill. Payment to the Contractor will not be released unless the required <br />paperwork is included in the monthly bill or submitted separately according to the deadlines as <br />specified in Section 4.22. <br /> <br />6.2 Revenue Sharing <br /> <br />All qualified proposals shall state explicitly if the Contractor elects to participate in revenue <br />sharing with the City. If the City awards the contract to a Contractor that elected to propose <br />revenue sharing, and if the final contract negotiated includes revenue sharing, the Contractor <br />shall, on a monthly basis, rebate an amount to the City based on a mutually agreed upon formula. <br /> <br />The primary revenue sharing scenario for purposes of this RFP consists of the following formula: <br /> <br />1. A per ton payment of all paper grades collected from the City based on the published index <br />less the proposed paper processing cost per ton. The published index used shall be the <br />Official Board Markets (OBM) "Yellow Sheet" (first issue of the month), Chicago region for <br />Old Newspapers (ONP) # 8, high-side of range. Proposers must state on the price worksheet <br />(Attachment C) what percent of this index will be used for the "gross revenue". In addition, <br />Proposers shall provide a proposed paper processing cost per ton. <br /> <br />2. A per ton payment of aluminum collected from the City based on the published index less the <br />proposed aluminum processing cost per ton. The published index used shall be the American <br />Metal Market (AMM), Aluminum (first issue of the month), high-side nonferrous scrap <br />prices: scrap metals, domestic aluminum producers, buying prices for processed used <br />aluminum cans in carload lots, f.o.b. shipping point, used beverage can scrap. Proposers <br />must state on the price worksheet (Attachment C) what percent of this index will be used for <br />the "gross revenue". In addition, Proposers shall provide a proposed aluminum processing <br />cost per ton <br /> <br />If a revenue sharing component is offered (i.e., greater than zero percent) for either paper or <br />aluminum, each month the Contractor shall provide, together with the monthly rebate to the City, <br />adequate documentation of the corresponding monthly estimate of tons of all paper grades and <br />tons of aluminum collected from the City even in the case where the City were to receive no <br />rebate for the month. The City understands that net revenues may equal zero at times due to <br />poor markets, however, the City shall not pay any costs above and beyond processing costs. <br /> <br />15 <br />
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