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HomeMy WebLinkAbout12-10-07 Item 7C Recycling Contract ~ ~HlLLS Request for Council Action Prepared By: Dept.: Council Mtg. Date: Final Action Needed By: ~~r;:,~uL~~;:&Lntnn== 12-10.Q7 Agenda Item: 7.C Budgeted Amount: Actual Amount: Funding Source: 'SCORE Grant and Residential_~ecycJing Fee. (li1Qilil:91~~FtIJiljjTRe:g!1!!~t~="'ffT~ilifffT~I.,.,__..,.,___......."'...".".,..,."..,..,."..,.,...,.............._..............,.".,.".".'.'n__.'..,..,....,'....'....._....._...........,..,.,."..,..'.__n_.'.' :Motion to Approve a Proposal Dated November 14, 2007, and Authorize Staff to Negotiate and Contract with Eureka Recycling or Walters: i Recycling for Residential Curbside Recycling Services from March 1, 2008, to February 28, 2011. [~~ff%fi~MD1Filsrt!~~~_[~2amili~gz~Sjuill0_n:m.m.0_L_______.._____.................."_"_"_____________________..__............."....,.....'-"_"_____n_________n_______...._........."...."..........._"__"__________________n_____m......"."....,'..._"-'n______n________________........."...".,..'...._n_____n_______n'n........".,...."........_nn_____________ jApprove a Proposal Dated November 14, 2007, and Authorize Staff to Negotiate and Contract with Eureka Recycling or Walters Recycling fori i Residential Curbside Recycling Services from March 1,2008, to February 28, 2011. ~ji]Jali)g:bocuh]eaia;{alfif j X i Memo/Letter: December 10, 2007, Memo to the City Council i Resolution No.: iOrdinance No,: iEngineering Recommendation: iAttorney Recommendation: !Other: 7C-1 7C.2 ..." """ "u uuu "J7c;-3 RFP for Residential Recycling Services Walters Recycling Proposal Cover Page _ _ _ _~,~.~~,~~....R~_~_~~~_in~_Q...~,~9.,p.c:?_~,_~L~~y!!:t,,~.~9.~...__ iRijj]'6~j~mli:jjjplr!f1ll~1Ij)~1!f;~~illi!lli!lli!J_.,......................"."."."."...............................,."...,.."..,.."'.".,....__.....,..."..,..,..,..,.".".,.......................,.".".,.."."...".......................,.,..,.,..,..,."..,......... ' In addition to the yearly SCORE grant, the residential recycling fee covers the full cost of the residential recycling program. None, ~ ~~HILLS MEMORANDUM DATE: December 10, 2007 CC Agenda Item 7.C TO: Mayor & City Council FROM: James Lehnhoff, if City Planner & ~Ycling Coordinator SUBJECT: Residential Curbside Recycling Program Proposals Action Request Motion to Approve a Proposal Dated November 14, 2007, and Authorize Staff to Negotiate and Contract with Eureka Recycling or Walters Recycling for Residential Curbside Recycling Services from March 1,2008, to February 28,2011. Backl!round In October, the City issued a request for proposals to provide residential curbside recycling services. The City's current three year contract with Waste Management expires on February 28, 2008, The contract was originally with EZ Recycling; however, they were purchased by Waste Management in 2005. The City provides recycling services to 2,560 households and is charged $2.05 per household by Waste Management (Arden Manor, Hunter's Park Condo's, and Parkshore Apartments do not participate in the City's recycling program). For the last three years, the City has collected $26.25 per participating household per year to pay for the cost of the weekly collection curbside recycling program. Although the current contract with Waste Management does expire until the end of February 2008, the selected contractor will need time to adjust routes and equipment to fit the needs of Arden Hills. The City issued an RFP to solicit proposals for recycling services and received proposals from four recycling service providers: Walters Recycling, Allied Waste, Waste Management, and Eureka Recycling. In sum, the RFP issues by the City included the following (Attachment 7C-l): . A request for a three year contract; . The contractor is responsible for cleaning up all spills; . The contractor can submit a proposal for single stream and/or two stream services; . If the recycling contractor proposes switching to single stream recycling, then they must provide the new bins. Two-stream recycling would continue to use the existing bins, . The contractor can offer revenue sharing with the City; and, \\Metro-inet.us\ardenhil/sIPlanning\Recycling\2007\12J007 - Residential Recycling Proposal Selection. doc Page 10f5 . The contractor must provide recycling services to City Hall at no additional charge. The RFP was largely prepared by RW Beck with information provided by the City. The RFP was modeled after RFPs from other cities. Proposal Review Price Comparison by Hauler per Household and Yearly Cost Recycling Contractor Price Comparison Proposed Monthly per Household Yearly to the City Service Base Price Est. Revenue Est. Cost with Yearly Base Price Est. Cost with Sharing Revenue Sharing Revenue Share Walters* Single.stream $2,84 $0.34 $2.50 $87,245 $76,800 Allied Waste Sinnle-stream $3.93 $0.00 $3.93 $120,730 -- Eureka Recycling* Dual-stream $2.95 $0.70 $2.25 $90,624 $69,120 Waste Management 1 u Single-stream $2.56 $0.00 $2.56 $78,643 -- Waste Management 2** Dual-stream $2.73 $0.00 $2.73 $83,866 -- *Actual price depends on revenue sharing but is capped at the base price. **First year price. WM included a yearly price increase and a fuel surcharge. Check below for more information Single-Stream Recycling vs, Two-Stream Recycling The City currently uses two stream recycling (sometimes referred to as dual stream or two-sort recycling). The two-stream recycling requires residents to separate mixed paper (newspaper, cardboard, office paper, mail, phone books, etc) from mixed rigids (cans, glass, and plastic). Single-stream recycling, also called single-sort recycling, allows residents to place all recyclable materials into one container without any sorting. The single-stream container is similar to a rolling garbage can with a lid, Two-stream recycling includes collection every week while single stream recycling is usually collected every other week. Waste Management Pricing Structure If the Waste Management (WM) single-stream option is chosen, they have requested a five year contract instead of the three year contract requested in the City's RFP. However, if the two- stream option is chosen, they have agreed to a three year contract required in the RFP. WM has also included a yearly price increase and a fuel surcharge with both of their collection options. The other proposals did not include a yearly price increase or a fuel surcharge, The yearly price increase is tied to the consumer price index. For the purpose of comparison, Staff used an estimated 2.4% yearly price increase to compare the price to other proposals. The yearly price increase is subject to change depending on market conditions: \\Metro-inet.uslardenhillslPlanninglRecycling\2007\121007 - Residential Recycling Proposal Selection. doc Page 2 of5 Estimated Waste Management Price Change by Year per HH* 1 2 3 4 5 Single Stream $2,56 $2,62 $2,68 $2,75 $2,81 Two Stream $2,73 $2,80 $2,86 na na *Assumes a 2.4% price increase per year The WM proposal also includes a fuel surcharge that changes depending on the cost of diesel fuel. If diesel fuel cost goes above $3.00 per gallon, the charge per household per month would increase accordingly: WM Diesel Fuel Price Per Gallon Diesel Fuel Cost per Gallon Fuel Surcharge <$3,00 0% $3,00 to $3,24 2% $3,25 to $3.49 4% $3,50 to $3,75 5% For every $0,25 per gallon The Fuel Surcharge w ill increase above $3,75 increase by 1 % Revenue Sharing Walters Recycling and Eureka Recycling included revenue sharing in their proposal, which means that the City would be entitled to a portion of the revenue that Walters or Eureka receives for selling processed recycling materials above and beyond their base costs. The revenue sharing per household is estimated because prices can fluctuate depending on market demand for a particular type of material, though both haulers indicated that their revenue estimates were conservative, The revenue sharing can increase if either hauler receives more revenue than they estimate; however, the base price per household would not increase regardless of the market. The City of RoseviIle currently participates in a revenue sharing agreement with Eureka Recycling, Staff contacted the RoseviIle Recycling Coordinator, and he stated that they have collected more revenue since starting the program than originally anticipated. The demand for recyclable materials has been increasing, which is a positive sign for revenue sharing. Recycling Containers If a single-stream hauler is chosen, they would provide new closable bins with wheels of various sizes to residents and would be responsible for maintenance of the bins, If a two-stream hauler is chosen, residents would continue to use the existing green bins provided by the City. Residents can obtain additional bins at City Hall for $5.85, which covers the cost of the bin, \\Metro-inet.uslardenhillslPlanninglRecycling\2007\J 21007 - Residential Recycling Proposal Selection.doc Page 3 of5 Recommendation Although single-stream recycling has been growing in popularity, the Eureka Recycling program appears to provide the best value for the services provided. Eureka is a non-profit recycling company focused on recycling as many materials as possible. The Eureka Recycling proposal would continue the same weekly two-stream collection service that residents are accustomed to and would include revenue sharing. While the base price is higher than some of the other proposals, the estimated revenue sharing would likely offset the increased cost and more. Eureka would recycling all of the materials residents currently recycle and would add clothing/textiles, milk boxes, juice boxes, and poplbeer boxes. Finally, Eureka Recycling came highly recommended from the City ofRosevilIe where revenue sharing has been higher than expected, As noted earlier, residents would continue to use their existing recycling bins, though additional bins are available for purchase at City Hall. Although Staff does feel that Eureka Recycling provides the most cost-effective and recycling- friendly proposal, Staff also recognizes that there is a growing demand and desire from residents for single-stream recycling. Single-stream recycling may reduce the number of trucks on the streets since there is every other week collection instead of every week collection. Additionally, single stream recycling would include new rolling, closable bins, Ifthe Council prefers to choose a single stream option, Staff recommends the Walters Recycling proposal. Their proposal also includes revenue sharing, which makes them competitive with other proposals. The Walters references were very complimentary, and they noted their quick service and good customer service. The revenue sharing from Walters is less than Eureka's proposal because two- stream recycling tends to produce recyclable material that is cleaner and higher valued by end users. While single-stream recycling has led to a definite increase in the amount of materials collected for recycling, it has also led to an increase in contamination recyclable materials and unusable recyclable materials. According to a Minnesota Pollution Control Agenda Study, waste material in single-stream recycling can range from two to seventeen percent but, with proper education, waste material in the recycling stream can be reduced (htto://www.pca.state.mn.us/oeallc/commingled.cfm). Both Eureka and Walters have agreed to provide a service to disabled residents to help them move their carts to the curb at no additional cost. Staffis not recommending Allied Waste's proposal due to the significantly higher cost than the other proposals without any increase in service or quality. Staff is not recommending either of Waste Management's proposals due to the decreasing customer service the City has received in the last year and due to the more unpredictable cost structure in their proposal. While Waste Management may be providing lower initial costs, their proposal does not include a cap on costs and, for single-stream service, requires a longer contract term. \ lMetro-inet.uslardenhillslPlanninglRecycling\2007\121 007 - Residential Recycling Proposal Selection. doc Page 4 of5 Option 1: Motion to Authorize Staffto Negotiate and Contract with Eureka Recycling based on their November 14, 2007, for Residential Curbside Recycling Services from March 1, 200S, to February 2S, 201 L Option 2: Motion to Authorize Staffto Negotiate and Contract with Walters Recycling based on their November 14, 2007, for Residential Curbside Recycling Services from March 1, 200S, to February 2S, 2011. Since the RFP lists the full proposal requirements, the full submittals to the City's RFP were not included with this memo, The submittals are available at City Hall for review. Once a contractor is selected, Staff will negotiate with the contractor to ensure that the requirements in the RFP are included in the contract. The actual contract will be brought back to the Council for approval on an upcoming consent calendar. Agenda item 7.D is contingent upon the selection of a recycling contractor. Attachments 7C- I RFP for Residential Recycling Services 7C-2 Walters Recycling Proposal Cover Page 7C-3 Eureka Recycling Proposal Cover Page City Staff would like to extend a thank you to Mary Chamberlain at R,W, Beck for preparing most of the RFP, providing input on the submitted proposals, and providing significant assistance in developing the City's recycling ordinance. Ms. Chamberlain's services were paid for by Ramsey County Public Health, \ lMetro-inet.uslardenhillsIPlanning\Recycling\2007\121 007 - Residential Recycling Proposal Selection,doc Page 5 of5 Attachment 7C-l December 10,2007, City Council Meeting RFP for Residential Recycling Services City of Arden Hills, Minnesota Request for Proposals (RFP) for Residential Recycling Services September24,2007 City of Arden Hills 1245 West Highway 96 Arden Hills, MN 55112 City of Arden Hills Table of Contents 1. INTRODUCTION ......................................................................................................1 2. BACKGROUND ........................................................................................................1 3. DEFINITIONS ........................................................................................................... 2 3,1 Aluminum Cans ,.......,..""..,.."""".", "'" ""'" ,..",..",....... ,.. ,..",..,..,..",."", ..""....., 2 3.2 Contractor,.....,.""""..".."""""..."..""""",.."".",..", ,..."...."",'..,.",.."...."",..,.,.... 2 3.3 Curbside..,...."...."..,.",.",.."""..,.."".."....."""".."",..""". ,.,."".."..",..,,'. ,..""""" 2 3.4 Curbside Recycling Bins..........."........"...........,......,....,..,......,.....,........,............."2 35 Curbside Recycling Service ....,.............................,........,............,...,........,......,....2 3.6 Fiber ",.,."..",.."",..".. .." '..,..", ..",....", ,....,..",.....".."" ..".., ....,..,.."",....,..." ....", .." 2 3,7 Glass Jars and Bottles ..,.........,...............,........,....,........,........,..,.........,................,2 3.8 Mixed Mail/Junk Mail/Household Paper ".........,....,..,...........",.........................,..2 3,9 Markets, ,.."...",..."",..".."" """""..." """,..",...""'.."..",, .."" '" ",'.'"""",....., ....",.. 3 3,10 Materials Recovery Facility (MRF) ..,..,........................................,................,...3 3,11 Multi-Family Dwellings (MFD) ,......,...."...............,..,...,........,............,...........,..3 3,12 Non-Targeted Materials ,............'.....,......,..........,....,......",......,....,'..........,.....".., 3 3,13 Old Boxboard (OBB)"....,..,.,....."..,..............,....,..........,......,............"....,...........3 3,14 Old Corrugated Cardboard (OCC).."........,..,..................,....,..............,...............3 3,15 Old Magazines (OMG) ....,...........................,..........,..............,............,...,...........3 3.16 Old Newspaper (ONP) ......"...................,.........,.........................,...,....................3 3,17 Plastic Bottles........... ...,..... ......, ,.... ,.... ....., .......,........... ....., ,..,....,................. ......,,3 3,18 Process Residuals ........,..., ,...,.. ,..,...........,.................,...... ' ,......,.. ,... '......... ' ,......... 3 3,19 Processing ....,...................,.."..,...,.........,............,.,..,..............".............,............. 4 3.20 Processing Center ...........,...... .............., ........ ...,., .,... ...... ......,......., ....................... 4 3,21 Proposal Scenarios ..,..........,......,.....,.."......,.,...,.....,....,..........,.............,....,...,..... 4 3.21.1 Dual-Stream, Every Week Collection Scenario........,.,.........................,. 4 3.21.2 Single-Stream, Every Other Week Collection Scenario .................,.......4 3.21.3 Single-Stream, Every Week Collection Scenario ......,..,.........,............... 5 3.22 Recyclable Materials or Recyclables ,............,....,.....,...........,..,..,....,.................. 5 3.23 Recycled Content Products ,.............,...........,..........,....................,..........,..,........5 3.24 Steel Cans ..................,.........,...........,....,.....,.................,......................."....,......., 5 3.25 Waste, ,..,...". .".."...." ,..".."".." .."" .." ""..", ,'.."""""",..",,'.. ,.., ,.""",.."..".. .", ",.6 4. GENERAL REQUIREMENTS FOR RESIDENTIAL COLLECTIONS............ 6 4.1 Contractor Service Requirements ,......,..,.........,.......................,...........,...,..,......... 6 4,2 Contractor Licensing Requirements ',..,'.......,...............,..,...."......,....,...,.....,......., 6 4.3 Collection Vehicle Equipment Requirements......................,.....,............,............,6 4.4 Personnel Requirements ",.." ..,,'. ...".." """"..""....", .",..""..."",....".. .."...... """ ,..6 45 Point of Collection...,...................,......,.......................,......,..,......,......... .............., 7 4,6 Recycling Containers .....,....,....................."....'......,..................'..............,............ 7 4,6,1 Dual-Stream Collection ..,.....................,.........................................,.......,.., 7 4,6.2 Single-Stream Collection,......" .."'...""",,,., "",..",'..,." "..."" """.",..,."".." 7 4,7 Collection,...."" ..,.."'.,..."..",, """,.... "",. .,.."", ,..".."" """"""..".., ..""",. ""'" ,.."" 8 4.7.1 Dual-Stream Collection..,...,..,.............,....,..,.......................................,...,.. 8 11 . RFP for Residential Recycling Services 5. 4.7.2 Single-Stream Collection..,........................... ......, .......,....,.. ,....,.... ,..., ,.....,..8 4,7.3 Future Source-Separated Organics Collection ,........,..,..,......,.................... 8 4,8 City Retains Right to SpecifY Resident Preparation Instructions ,.............,.......... 9 4,9 Procedure for Unacceptable Recyclable Materials .......,......,......,.....................'.., 9 4,10 Collection Days ,."", ,... ..".., "" ...."""",.." ..""".., ,.., "..""",..,...,..,.."..".."""""...,9 4.11 Collection Hours .............,............,..........,..........................,..,...,.,........,.....,......., 9 4,12 Cleanup Responsibilities"..". ...". .",.,..". "" .""...." ,."...",....."""..",........".."""" 9 4.13 Missed Collection Policy & Procedures ..,.......................,................................10 4.14 Non-Completion of Collection and Extension of Collection Hours.........,....... 10 4,15 Severe Weather .,...,...,..,..,...,......,.......,................,..,..........,..............................,10 4,16 Holidays ,.,.................,..,..,...,.,.,.............."...,.....,..........,............."....,................10 4.17 Weighing of Loads......................,...."....,....,........,......,..,..,......,....,....,....,.,...,... 10 4,18 Unauthorized Collection..,..........,...,...........................,..............,..........,..........,II 4,19 Utilities,..........., ........... ....., .....,...., ,... ,..... , ,....... ................... ......... ...................... II 4.20 Damage to Property ....................,..,.............,..............,........,...,......,................. II 4.21 Municipal Facilities .........,.............,..................,..........,..,..........,............,.........11 4.22 Reports and Meetings ,............................,..,......,...................................,..........,11 4.22,1 Materials Reports.....,....,......,......,...,............,...,......,......................,....".. II 4.22.2 Monthly Customer Relations Report,...........................,..........,.....,........ 12 4,22.3 Annual Performance Review Meeting .............,............,.......,......,.,.,..... 12 4.23 Publicity, Promotion, and Education ...,..,....,.................................,..................12 MA TERlALS PROCESSING AND MARKETING ............................................13 5.1 Processing Facilities Must Be Specified ......,..............................,.....,.,..,.,.........,13 5.2 Lack of Adequate Market Demand ....,....,...,..........,.........,..................,.,...,.....,.., 13 5.3 Estimating Materials Composition as Collected ....,.....,..,........,.,........................14 5.4 Estimating Process Residuals ...,........,..,.....,..............................................,........ 14 5.5 Performance Monitoring ...,.....................,..............,..~..,......,......,..,..,....,..,......,.., 14 5.6 End Markets ,.................,.........,.."..,.............,....,....",..,..,................."..,...'.........,14 PAYMENT AND DAMAGES ................................................................................15 6,1 Compensation for Services .....,...,................,.....,....,..,.............................,.......,..15 6.2 Revenue Sharing ..............................,..........."..........................,..........,...........,..,15 6.3 Liquidated Damages ...............,....,...............,....,....,.........,......,......,........,...........16 INSURANCE AND OTHER LEGAL REQUIREMENTS ..................................17 7,1 Insurance .........................,....,............,..........,...,..,.......,....".....'......,...,....,.....,..... 17 7 ,2 Worker's Compensation .......,................ ,.... ,...,.....,. .... ....... .....,..................... ..,.... 17 7.3 Employee Working Conditions and Respondent's Safety Procedures........,......, 17 7.4 Equal Opportunity....,....,.................,......,........."...,.....,...,.........,....,....,....,....,....,18 7,5 Compliance with Laws & Regulations .............,..,......,...,.................,......,..........18 7.6 Governing Law ..,...,..."..,............,.........,..,..,.."..........,............,.....,.,......,........,...18 7.7 Waiver ..,...,........,..............................................,....,...,......".................,...,...,..,.... 18 7,8 Termination", "....".." ..",.."" "".., ..",'.""", .'..", .", ,."", .",.,.,.. ....",..""""..",...."" 18 7,9 Severability ,....,........,'...,..........,..........."...,..,.......,.....,..................,............,........19 7,10 Accounting Standards ..,.......,...................,.....,..........,.......,..,.....,.....................,19 7.11 Retention of Records ................,.......,......,.........,..........,......................,............19 7 ,12 Data Practices .....,...., ,...,.........., ..,..,..... ,...., ,...., ,.., ............... ........,....,..........,....', 19 6. 7. 1lI City of Arden Hills 7.13 Inspection of Records and Disclosure,....................,.......,..............,....,............. 19 7,14 Independent Contractor..,...."....,...."...."""" ,..",.., "..".."",'..'"..'.",..."..,..,..."., 19 7 .15 Transfer ofInteresL...................,......,....,..,............ '.... ,..... ,..mm,m' ...., m.......... 20 7,16 Non-Assignability and Bankruptcy....m..m................,m....,m....m..,....,.........,..20 7,17 Indemnification .............., ..............m...'m'm.. ,... ,........,...... ..m,............, ,m..m.... 20 7.18 Performance & Payment Bond ....m..'..........m'......'....,..,..,....,....,..,............,...., 20 7.19 Conflict ofInterest .................,...................."..............'.....'mm..'m....'m..'........ 21 7.20 Entire Contract ..'..,.........,.............................'m'............'......m'............,....,..,.... 21 7.21 Contract Conditions ..............................,..............,............,......,..,......,.............. 21 8. TERM OF CONTRACT .........................................................................................21 9. SUBMITTING PROPOSALS................................................................................. 21 9,1 Notification of Intent m...."m..........'..,..........,........"'..m..'..u......'m..m........m..'.. 21 9.2 Requests for Clarification ..,..u....,..,......,u....uu.......'m....'m..'....m......................21 9.3 Contractors May Team with Other Companies ....,............'........m......'........u.... 22 9.4 How to Submit Proposals................."....,......,..,..,..,.."..,..,u..uu.....u..u..m.......m22 9.5 Proposal Content,.... ,.., ..,......'....,.. ,........'........mu..U..m.... ......, ....., ...........,...., ,.... 23 9,6 Curbside Dual-Stream Every Week Collection Proposal Scenario ......,......,.....,23 9,7 Single-Stream Proposal Scenario,...,..,m,m........m......,................m,m"....,..,......23 9,8 Price Worksheet ....Um.....m....m........'m.............m..'.."......,.....,....,..'..u....u..,u.., 23 9,9 Proposals May Be Rejected in Whole or ParL..................,......m....m..m..m,..m24 9.10 RFP and Proposal to Become Part of Final ContracL.....,m..,m..,..,......,..........24 10. CONTRACTOR SELECTION PROCESS ........................................................... 24 10.1 Contractor Selection Process ..,......,..,....,..,.....u,......"....,..,..'........m.......m......' 24 I 0.2 Evaluation Criteria ..,........,......,...........,.........".....,....u'u,..."......,'u..,................ 25 Attachment A .. Map of Arden Hills Attachment B - Arden Hills Recycling Tonnage Estimates by Material Type for 2006 Attachment C - Price Worksheets IV RFP for Residential Recycling Services 1. INTRODUCTION This request for proposals (RFP) defines the service standards, specifications and proposal requirements of the residential recycling collection program for the City of Arden Hills (City), The City seeks to enter into a recycling contract with a company that has the resources and ability to provide residential recyclable materials collection services for the City. It is the intent of the City to accept and evaluate proposals for residential recycling services including collection, processing, and marketing, The goals of the City are to maximize the fullest recovery possible of recyclable materials from all residents in the City and to achieve the most cost-effective solution, The City encourages Proposers to submit their best proposal possible. The requirements within this RFP may be altered by Proposers if proposals explicitly describe the change, rationale and price implications, For example, the "dual-stream proposal" scenario assumes the City's current dual-stream collection/processing recycling method, Proposers may propose a "single- stream proposal" scenario or they may propose on both scenarios, Each scenario proposed must have a distinct, associated price, 2. BACKGROUND The City's current recycling contract requires single-family households to be serviced on a weekly basis. Households north of Interstate 694 have recyclable materials collected every Wednesday and households south of 1-694 have recyclable materials collected every Tuesday (see Attachment A for a map of Arden Hills), The current population of Arden Hills is estimated to be 9,692 persons, The City has approximately 2,560 single-family housing units included as part of the City's residential recycling program 1bree buildings in the City (one senior living building, one condominium complex, and one apartment building) totaling ] 73 units contract individually with one private hauler for once weekly dual-stream collection of recyclable materials, There is one manufactured home park (Arden Manor) in the City, consisting of 294 housing units, The park owner contracts with one hauler for the collection of recyclable materials from these units, The City currently has a dual-stream recycling program for fiber and rigid containers, Paper products accepted in the City's recycling program include old newspaper (ONP), old magazines (OMG) including catalogs, old corrugated containers (OCe), mixed mail, old box board (OBB), phone books, and pop and beer carriers/cartons, Rigid containers accepted in the program include glass food and beverage containers, plastic bottles with a neck, steel and tin cans, aluminum foil, and aluminum cans. These materials are described in more detail in Section 3, "Definitions ". The City is billed $2,05 per household for residential recycling services by its current contractor. The total quantity of recyclable materials collected from the single-family curbside program in 2006 was 86] tons, The breakdown of 2006 recyclable materials collected in Arden Hills, by material type, can be found in Attachment B. City of Arden Hills 3. DEFINITIONS The area of public right of way between the property line and the curb or edge of the street, but not on the street 3.1 Aluminum Cans Disposable containers fabricated primarily of aluminum, commonly used for soda, beer, juice, water or other beverages. 3.2 Contractor The City's recycling service contractor under the new contract beginning operation on March 1, 200S. 3.3 Curbside 3.4 Curbside Recycling Bins Uniform curbside recycling bins (e,g" IS-gallon, green plastic recycling tubs) in which recyclable materials can be stored and later placed for curbside collection, as specified by the City, Also pertains to bins, boxes, bags or other containers used by residents to separate their recyclable materials, (The current IS-gallon curbside bins were originally distributed free of charge to all households by the City, Residents may now purchase bins for $5.50 each, plus tax.) For single-stream collection proposals, see Section 4.6.2 of this RFP which states that the Contractor shall provide containers for use in single- stream collection programs, 3.5 Curbside Recycling Service The recycling collection service, together with related public education and other customer services, specified within this RFP utilizing curbside recycling pickup, 3.6 Fiber As part of a dual-stream collection program, fiber includes the following paper items: old newspaper (ONP) including inserts; old magazines (OMG) including catalogs; old corrugated containers (OCe); mixed mail; old boxboard (OBB); phone books; and pop and beer carriers/cartons, 3.7 Glass Jars and Bottles Unbroken glass jars, bottles, and containers (lids/caps and pumps remO\ed) that are primarily used for packing and bottling of food and beverages, 3.8 Mixed Mail/Junk MaillHousehold Paper Mail, advertisements, office paper, school papers, envelopes, etc, Shredded paper is acceptable in closed paper bags, no plastic bags, 2 RFP for Residential Recycling Services 3.9 Markets Any person or company that buys (or charges) for recycling of specified materials and may include, but are not limited to: end-markets, intermediate processors, brokers and other recyclable material reclaimers, 3.10 Materials Recovery Facility (MRF) A recycling facility in which recyclable materials are processed, The facility will conform to all applicable rules, regulations and laws of state, local or other jurisdictions, 3.11 Multi-Family Dwellings (MFD) Any building used for residential purposes consisting of five or more residential units is considered multi- family dwellings (MFDs) and are considered commercial property, Garbage and recycling collection services are contracted directly by the building owners, The City's ordinance is scheduled to be amended by the end of 2007 to ensure all residents have access to recycling, including those living in multi- family complexes, 3.12 Non-Targeted Materials Non-recyclable materials that are not included in the City's recycling program, Examples of typical non-targeted items include (but are not limited to); pumps on plastic bottles, ceramic material, frozen pizza boxes, plastic tubs such as butter or whipped topping containers, electronics, etc. 3.13 Old Boxboard (OBB) Boxes including cereal, cake, chip, cracker boxes, etc, Does not include boxboard containers used forrefrigerator or freezer food product storage, 3.14 Old Corrugated Cardboard (OCC) Cardboard material with double wall construction and corrugated separation between walls. Does rot include plastic, wax or other coated cardboard, 3.15 Old Magazines (OMG) Glossy and non-glossy magazines and catalogs, 3.16 Old Newspaper (ONP) Newspapers including inserts, 3.17 Plastic Bottles Plastic bottles with a narrow neck including milk jugs, laundry bottles, ketchup bottles, pop bottles, etc. Wide neck containers such as butter or whipped topping containers, are not included, 3.18 Process Residuals The normal amount of material that cannot be economically recycled due to material characteristics such as size, shape, color, cross-material contamination, etc, and must be disposed as mixed municipal solid waste, Process residuals include subcategories 3 City of Arden Hills including, but not limited to, bulky items, contaminants, sorted tailings, floor sweepings and rejects from specific processing equipment (e.g., materials cleaned from screens, etc), Process residuals does not include clean, separated products that are normally processed and prepared for shipment to markets as commodities but are of relatively low- value because of depressed market demand conditions, 3.19 Processing The sorting, volume reduction, baling, containment or other preparation of recyclable materials delivered to the processing center for transportation or marketing purposes. 3.20 Processing Center A recycling facility in which recyclable materials are processed, The facility will conform to all applicable rules, regulations and laws of state, local or other jurisdictions, 3.21 Proposal Scenarios Thee different recycling collection'processing scenarios are identified by the City for purposes of this RFP, Proposers may submit pricing on multiple scenarios, 3.21.1 Dual-Stream, Every Week Collection Scenario Dual-stream, every week collection scenario, single:family residential units only. This proposal scenario assumes the City's current dual-stream collection and processing system for purposes of this RFP. Dual-stream service includes collection from approximately 2,560 single- family residential units, and processing the residential curbside material within the form of a dual-stream system whereby residents will continue to be instructed to separate recyclable materials into two groups of materials: (I) all fiber products and (2) all rigid containers, Other design and operating details of the current collection, processing and public education systems are assumed within this dual-stream scenario, Note: It is possible that in the future, the City's recycling contract may include MFD buildings and/or the manufactured home park. There are three (3) MFD buitdings totaling 173 units: . Cottage Villas, 64 units; . Hunters Park Condos, 72 units; and . Parkshore Apartments, 37 units, The MFD buildings have central drop-off points for use by all residents, There is also one manufactured home park (Arden Manor) located in the City with 294 units. 3.21.2 Single-Stream, Every Other Week Collection Scenario Single-stream, every other week collection scenario. Proposers of a single-stream collection scenario propose to collect the residential curbside material every other week and process the material within the form of a single-stream system whereby residents will be instructed to commingle all groups of materials, 4 RFP for Residential Recycling Services Note: It is possible that in the future, the City's recycling contract may include MFD buildings and/or the manufactured home park. There are three (3) MFD buildings totaling 173 units: . Cottage Villas, 64 units; . Hunters Park Condos, 72 units; and . Parkshore Apartments, 37 units, The MFD buildings have central drop-off points for use by all residents, There is also one manufactured home park (Arden Manor) located in the City with 294 units, 3.21.3 Single-Stream, Every Week Collection Scenario Single-stream, every week collection scenario. Proposers of a single-stream scenario propose to collect the residential curbside material every week and process the material within the form of a single-stream system whereby residents will be instructed to commingle all groups of materials, Note: It is possible that in the future, the City's recycling contract may include MFD buildings and/or the manufactured home park. There are three (3) MFD buildings totaling 173 units: . Cottage Villas, 64 units; . Hunters Park Condos, 72 units; and . Parkshore Apartments, 37 units, The MFD bnildings have central drop-off points for use by all residents, There is also one manufactured home park (Arden Manor) located in the City with 294 units, 3.22 Recyclable Materials or Recyclables The following recyclable materials as defined herein this RFP: newspapers, magazines, catalogs, corrugated cardboard, mixed mail, boxboard, phone books, pop and beer carriers/cartons, glass food and beverage containers, plastic bottles with a neck, steel and tin cans, aluminum foil, and aluminum cans. The City encourages the Proposers to explore markets for additional types of recyclable material (e,g., milk cartons, juice boxes, pop/beer carriers, textiles, and any additional materials), Materials may be added to this list as part of the proposal or by mutual written agreement between the City and the Contractor. 3.23 Recycled Content Products Products or goods, including roadbed or other aggregate products that are openly marketed and have positive value, Recycled content products do not include use of any commodity as landfill cover. 3.24 Steel cans Containers fabricated primarily of steel or tin used for food or beverages, 5 City of Arden Hills Any delivered recyclable material that is deemed by the processor to be unable to be marketed into recycled-content products. Typical "waste" in this context includes pumps on plastic bottles, ceramic material in glass streams, frozen pizza boxes in paper stream, etc, 3.25 Waste 4. GENERAL REQUIREMENTS FOR RESIDENTIAL COLLECTIONS 4.1 Contractor Service Requirements The Contractor agrees to provide residential recycling services to all single- family households (approximately 2,560). At this time, the three MFD buildings ( 173 units) and the manufactured home park (294 units) are not included, but may be included in the future, 4.2 Contractor Licensing Requirements The City's ordinance is scheduled to be amended by the end of 2007 to require all haulers of recyclable materials obtain a hauling license issued by the City, 4.3 Collection Vehicle Equipment Requirements All collection vehicles used in performance of the contract shall be duly licensed and inspected by the State of Minnesota and shall operate within the weight allowed by Minnesota Statutes, Each collection vehicle shall be equipped with the following: a, Two-way communications device, b, First aid kit. c. An approved 2Al OBC Dry Chemical Fire Extinguisher. d, Warning flashers, e, Warning alarms to indicate movement in reverse, [ Sign on the rear of the vehicle which states "This Vehicle Makes Frequent Stops" or similar language, g, A broom and shovel for cleaning up spills, All of the required equipment must be in proper working order. All vehicles must be maintained in proper working order and be as clean and free from odors as possible, All vehicles must be clearly identified on both sides with Contractor's name and telephone number. 4.4 Personnel Requirements Contractor shall retain sufficient personnel and equipment to fulfill the requirements and specifications of tre services described in this RFP, The Contractor will provide a Route Supervisor to oversee the recycling route drivers servicing the City, The Route Supervisor will be available to address customer complaints each day, The Contractor shall have on duty Monday through Friday from 7 :00 a,m. to 5 :00 p,m, a dispatch customer service representative to receive customer calls and route issues. The Contractor shall provide a 24- hour answering 6 RFP for Residential Recycling Services service line or device to receive customer calls, The Route Supervisor and all collection vehicles must be equipped with 2-way communication devices, Contractor's personnel will be trained both in program operations and in customer service and insure that all personnel maintain a positive attitude with the public and in the work place and shall: a) Conduct themselves at all times in a courteous manner and use no abusive or foul language, b) Perform their duties in accordance with all existing laws and ordinances and future amendments thereto of the Federal, State of Minnesota, and local governing boards. c) Be clean and presentable in appearance, as so far as possible, d) Wear a uniform and employee identification badge or name tag, e) Drive in a safe and considerate manner. f) Manage containers in a careful manner, by picking them up, emptying their contents into the collection vehicle, and placing - not throwing or sliding - the amtainer back in its curbside location so as to avoid spillage and littering or damage to the container. g) Monitor for any spillage and be responsible for cleaning up any litter or breakage, h) Avoid damage to property, i) Not perform their duties or operate vehicles while consuming alcohol or illegally using controlled substances or while under the influence of alcohol and/or such substances, 4.5 Point of Collection All recyclable material collection service from single- family housing units will occur at the curbside (i.e" there are no alley collections ofresidential recyclable materials), 4.6 Recycling Containers 4.6.1 Dual-Stream Collection The City has made recycling containers available for participants in the dual-stream curbside recycling program. Recycling containers shall not be a prerequisite to participate in the recycling program Other container types such as brown paper grocery bags, boxes, and bins are acceptable to the extent that route drivers readily recognize them as containing recyclab Ie materials. 4.6.2 Single-Stream Collection Contractor shall provide containers for use in single-stream collection programs, The Contractor will maintain an inventory of new and replacement containers and will be required to service and repair damaged containers, Contractor shall maintain sufficient cart inventory of various sizes to meet supply and demand needs for the entire term of the contract The standard cart size shall be approximately 60-gallolli, The carts shall be uniform and consistent in color and design and have a recycling symbol and approved instruction label 7 City of Arden Hills attached, so as to be easily identified by the resident/customer and the Contractor driver as the container for recyclable materials collection, Thirty and ninety- gallon carts of similar design shall be provided to residents who request a different level of service. Additional carts will be provided at no extra charge to residents who request them. Each cart will be delivered with a package of recycling information provided by the Contractor and approved by the City explaining what and how to recycle using the single- stream method, The driver is required to record and report to Contractor dispatch the location of any cart that is damaged and that cart shall be repaired or replaced by the Contractor or designated subcontractor within one (I) week of the report of damage, 4.7 Collection 4.7.1 Dual-Stream Collection Items shall be placed in green recycling bins, brown paper bags, or any other container that can reasonably be identified as containing recyclable materials. Containers shall be placed at the curbside, by 7:00 a,m, on the designated collection day, On the designated collection day, Contractor shall empty all acceptable materials from curbside container and any acceptable materials that are placed adjacent to container, and shall replace container at curbside. The City assumes that all residents receiving dual-stream curbside collection service will be collected every week as per the current system, unless an alternate scenario is proposed and awarded. 4.7.2 Single-Stream Collection Recycling carts shall be placed by the residents at curbside on collection day, with the handle toward the house and the lid opening toward street, The Contractor shall collect from each participating household, all acceptable materials that have been prepared according to publicized procedures. The driver is required to place the emptied cart back down in the same curbside location as set by the resident. In no case is the cart to be left in the street. 4.7.3 Future Source-Separated Organics Collection The City may consider adding residential curbside source-separated organics (SSO)l collection to its collection services in the future, The City has the right to negotiate with the selected resident ial recycling Contractor, at a later date, the option of adding SSO collection to tre recycling contract, or the City may choose to procure those services I Source-separated organics may include, but not be limited to, the following types of materials: food waste (e.g., vegetable and fruit trimmings, coffee grounds and filters, eggs and eggshells, meat, ete,), compostable paper products (non-recyclable paper such as paper tissues and napkins, paper towels, and paper plates and cups), and other compostable products. 8 RFP for Residential Recycling Services under a separate contract with a different vendor. The City is not asking that this proposal include SSO collectionpricing, as the details of such a collection component are not known at this time, rather it is mentioned here as a possible change to the current collection system in the future, SSO could be co-collected with recyclable materials or yard waste, or collected separately, 4.8 City Retains Right to Specify Resident Preparation Instructions The Contractor shall agree that it is the City's sole right to clearly specify the resident sorting and setout requirements. At the City's discretion, ~ch information shall be included in the City's newsletter. Sorting and setout requirements shall be listed in any public education pieces distributed by the Contractor as detailed in Section 4,23, 4.9 Procedure for Unacceptable Recyclable Materials If Contractor determines that a resident has set out unacceptable or non-targeted recyclable materials, the driver shall use the following procedures: a) Contractor shall leave the non-targeted materials in the resident's curbside recycling bin or cart and leave an "education tag" indicating acceptable materials and the proper method of preparation, (Note: an example of the Proposer's education tag is to be included with the proposaL) b) The driver shall record the address on forms acceptable to the City, Contractor shall report the address to the City Recycling Coordinator at the end of each month, If this procedure for handling non-targeted materials is not feasible for single-stream collection systems, the Contractor must so specify and explain an altema tive public education system to maintain and improve quality of recyclable materials set out by City residents, 4.10 Collection Days Collection of recyclable materials from households north of 1-694 will take place every Wednesday and households south of 1-694 will take place every Tuesday. See Attachment A for a map of the City, The City requests that these days do not change, however as stated in Section 3.21, Proposal Scenarios, there is an option to propose on single-stream collection every other week. If the City chooses every other week collection, the Contractor shall publish a yearly calendar clearly identifying collection days/weeks, with assistance and approval from the City, 4.11 Collection Hours Contractor shall maintain sufficient equipment and personnel to assure that all collection operations commence no earlier than 7 :00 a,m, and are completed by 6:00 p,m, on the scheduled collection day. 4.12 Cleanup Responsibilities Contractor shall adequately clean up any materials spilled or blown during the course of collection and/or hauling operations, As stated in Sec. 4.3 of this RFP, all collection vehicles shall be equipped with a broom and shovel for use in cleaning up any spills, Any unacceptable materials left behind should be secured within resident's recycling container, if provided, The 9 City of Arden Hills driver shall take all precautions possible to prevent littering of unacceptable recyclable materials. Contractor shall have no responsibility to remove any items that are not recyclable materials, 4.13 Missed Collection Policy & Procedures In the City's public education information, residents will be directed to call the Contractor for missed collections and other service issues. Contractor shall have a duty to pick up missed collections, Contractor agrees to pick up all missed collections on the same day that the Contractor receives notice of a missed collection, provided notice is received by Contractor before I 1 :00 a.m, on a business day. With respect to all notices of a missed collection received after I I :00 a,m, on a business day, Contractor agrees to pick up that missed collection before 6:00 p,m. on the business day immediately following, Contractor shall provide staffing of a telephone-equipped office to receive missed collection complaints between the hours of 7:00 a.m, and 5:00 p.m. on weekdays, except holidays, The Contractor shall have an answering machine or voice mail system activated to receive phone calls after hours, Contractor shall keep a log of all complaints, missed pick ups, and other calls requiring action. The log shall include the type of cal~ the date and time received, the Contractor's response, and the date and time of response, This information shall be provided to the City in a monthly report. 4.14 Non-Completion of Collection and Extension of Collection Hours If Contractor determines that the collection of recyclable materials will not be completed by 6:00 p,m, on the scheduled collection day, Contractor shall notifY the City Recycling Coordinator by 4:00 p,m" and request an extension of the collection hours. Contractor shall inform the City of the areas not completed, the reason for non-completion, and the expected time of completion, 4.15 Severe Weather Recycling collections may be postponed due to severe weather at the sole discretion of the Contractor. Upon postponement, collection will be made on a day agreed upon between the Contractor and the City, 4.16 Holidays Holidays refers to any ofthe following: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day and any other holidays mutually agreed to by the City and Contractor. In no instance will there be more than one holiday during a collection week. When the scheduled collection day falls on a holiday, collection for that day will be collected one day later. If the City chooses every other week collection, the Contractor shall publish a yearly calendar clearly identifYing collection days/weeks, with assistance from the City, 4.17 Weighing of Loads Contractor will keep accrrate records conslstmg of an approved weight slip or electronic equivalent with the date, time, collection route, driver's identification, vehicle number, tare weight, gross weight, net weight, and number of recycling stops for each loaded vehicle, Collection vehicles will be weighed quarterly or semi-annually to obtain a tare weight Paper or 10 RFP for Residential Recycling Services electronic versions of each weight ticket shall be maintained on file by the Contractor for at least three years in the event of an audit by the City. 4.18 Unautho rized Collection Only a licensed recycling hauler under contract with the City or with the property owner shall collect, remove, or dispose of recyclables after they have been set out for collection The City's recycling Contractor's employees may not collect or scavenge through recycling in any manner that interferes with the contracted recycling services, The Contractor shall report to the City any instances of suspected scavenging or unauthorized removal of recyclable materials from any collection containers. 4.19 Utilities The Contractor shall be obligated to protect all public and private utilities whether occupying street or public or private property, If such utilities are damaged by reason of the Contractor's operations, under the executed contract, he/she shall repair or replace same, or failing to do so promptly, the City shall cause repairs or replacement to be made and the cost of doing so shall be deducted from payment to be made to the Contractor. 4.20 Damage to Property The Contractor shall take all necessary precautions to protect public and private property, Except for reasonable wear and tear, the Contractor shall repair or replace any private or public property, including, but not limited to sod, mailboxes, or recycling bins, which are damaged by the Contractor. Such property damage shall be addressed for repair or replacement, at no charge to the property owner, within forty-eight (48) hours with property of the same or equivalent value at the time of the damage. If the Contractor fails to address the repair or replacement damaged property within forty-eight (48) hours, the City may, but shall not be obligated to, repair or replace such damaged property, and the Contractor shall fully reimburse the City for any of its reasonably incurred expenses, The Contractor shall reimburse the City for any such expenses within ten (10) days ofreceipt of the City's invoice. 4.21 Municipal Facilities Contractor will provide free dual-stream recycling cart service (at least every other week) at Arden Hill's City HalL Contractor will provide carts or other mutually agreed upon containers to facilitate that service. 4.22 Reports and Meetings 4.22.1 Materials Reports The Contractor will report, on a monthly and yearly basis, the following information regarding the City of Arden Hill's recyclable materials quantities (in tons): . Gross amounts of materials collected, by recyclable material; . Net amounts of materials marketed, by recyclable material; II City of Arden Hills . Amounts stored, by recyclable material, with any notes as to unusual conditions; . Amounts of process residuals disposed; and . Revenue share credits back to the City (if any). Monthly reports shall be due to the City by the 15th day of each month for material collected by the Contractor during the preceding calendar month. The reports shall be made available in an electronic spread sheet format (e.g., Excel), and may be submitted via email to the City's Recycling Coordinator. Annual reports to the City shall be due by the 15th of January for materials received by the Contractor during the preceding calendar year. The Contractor must state in writing to the City that all recyclable materials collected in Arden Hills the preceding calendar year were indeed recycled and not disposed as garbage, The Contractor will be encouraged to include in its annual report recommendations for continuous improvement in the City's recycling program (e,g., public education, reduction of non-targeted materials, etc.). 4.22.2 Monthly Customer Relations Report Each month the Contractor shall provide the City with the following reports: . A list of all customer complaints, including a description of how each complaint was resolved, . A list of all addresses where education tags were left for residents and why the tags were left, . A list of all missed pick ups reported to the Contractor. The monthly reports shall be sent by mail, fax or e-mail to the City's Recycling Coordinator. 4.22.3 Annual Performance Review Meeting Upon receipt of the Contractors annual report, the City shall schedule an annual meeting with the Contractor and the City's Recycling Coordinator. The objectives of this annual meting will include (but not be limited to): . Review Contractor's annual report, including trends in recovery rate and participation, . Efforts the Contractor has made to expand recyclable markets, . Review Contractor's performance based on feedback from residents to City staff. . Review Contractor's recommendations for improvement in the City's recycling program, including enhanced public education and other opportunities, . Review staff recommendations for improving Contractor's service. . Discuss other opportunities for improvement with the remaining years under the current contract. 4.23 Publicity, Promotion, and Education The City publishes a newsletter approximately once per month that is mailed to all residents, Periodically the newsletter contains recycling information The City's website provides 12 RFP for Residential Recycling Services recycling details such as a list of acceptable and unacceptable materials as well as proper recycling set-out instructions, Proposers are encouraged to specify other public education tools that the Contractor will provide, If the Contractor chooses to distribute its own public education information, the educational materials must first be reviewed by the City Recycling Coordinator. The Contractor shall submit a draft of any public education literature for approval by the City, at least one (I) month before printing and distribution of any such literature. Contractor shall demonstrate commitment to the promotion of responsible waste management through participation in community events, for example, by initiating and providing collection opportunities for recyclable materials at City-sponsored events, As part of this proposa~ Contractor shall describe its experience in providing collection services at community events, The Contractor shall conduct its own promotions and public education to increase participation and improve compliance with City-specified resident preparation instructions. At a minimum, this shall include distribution of resident education tags to be left by curbside collection crews if any non-targeted material is rejected and left at the curb (see Section 4,9). 5. MATERIALS PROCESSING AND MARKETING 5.1 Processing Facilities Must Be Specified It is intended that all recyclable materials collected by the Contractor will go to recycling markets to be manufactured into recycled content products. The Contractor shall assure the City that adequate recyclable material processing capacity will be provided for City material collected, The proposals must clearly specify the location{s) of its recyclable materials processing facility (or subcontractor's facility) where material collected from the City will be delivered and/or processed. The Contractor shall provide written notice to the City at least 60 days in advance of any substantial change in these or subsequent plans for receiving and processing recyclable materials collected from the City. Upon collection, the City's Contractor shall deliver the designated recyclable materials to a recyclable material processing center, an end market for sale or reuse, or to an intermediate collection center for later delivery to a processing center or end market. It is unlawful for any person to transport for disposal or to dispose of designated recyclable materials in a mixed municipal solid waste disposal facility, Contractor shall assure that all recyclable materials collected in the City are not landfilled or incinerated except for process residuals as defined in Section 3,18 of this RFP, The Contractor shall dispose of no more than five percent (5%) of material (by weight) as process residuals as part ofrecyclable materials processing operations, (Should the Proposer wish to offer a different percentage, it must be stated in the proposal with an explanation and rationale for the alternative limit.) No recyclable materials will be landfilled or incinerated by the Contractor without written authorization from the City and the Minnesota Pollution Control Agency, 5.2 Lack of Adequate Market Demand In the event that the market for a particular recyclable material ceases to exist, or becomes economically depressed that it becomes economically unfeasible to continue collection, 13 City of Arden Hills processing and marketing of that particular material, the Contractor shall give written notice to the City. The notice shall include information demonstrating the effort the Contractor has made to find market sources, and the financial information justifYing the conclusion that the market is economically unfeasible, At such conclusion, the City and the Contractor will both agree in writing that it is no longer appropriate to collect such item before collection ceases, Contractor shall pay the costs of all disposal of any item collected that is deemed not recyclable by Contractor and the City due to lack of adequate market demand, The City and Contractor shall specifY a date in the said written agreement to cease collection of the recyclable material in question, Contractor shall at all times be under a duty to minimize recyclable materials ending up in landfill or incineration, If such disposal becomes necessary, Contractor shall dispose of the materials at a facility specified in writing by the City or an alternative agreed upon by the City and the Contractor. 5.3 Estimating Materials Composition as Collected The Contractor shall conduct at least one materials composition analysis of the City's recyclable materials each year to estimate the relative amount by weight of each recyclable commodity by grade or offer a suitable alternative to a composition analysis, The results of this analysis shall include: (1) percent by weight of each recyclable commodity by grade as collected from the City; (2) relative change compared to the previous year's composition; and (3) a description of the methodology used to calculate the composition, including number of samples, dates weighed, and City route( s) used for sampling, The Contractor shall provide the City with a copy of each analysis, 5.4 Estimating Process Residuals The Contractor shall provide the City a written description of the means to estimate process residuals, as defined in Section 3.18, derived from the City's recyclable materials, This written description shall be reviewed and approved in writing by the City, This written description shall be updated by the Contractor immediately after any significant changes to the processing facilities used by the Contractor. 5.5 Performance Monitoring The City will monitor the performance of the Contractor against goals and performance standards required within this RFP and in the contract Substandard performance as determined by the City will constitute non-compliance. If action to correct such substandard performance is not taken by the Contractor within 60 days after being notified by the City, the City may initiate the contract termination procedures, 5.6 End Markets Upon request of the City at any time during the contract, the Contractor shall provide end market information, As part of the annual report (detailed in Section 4.22.1), the Contractor must state in writing to the City that all recyclable materials collected in Arden Hills are indeed recycled and not disposed as garbage, 14 RFP for Residential Recycling Services 6. PAYMENT AND DAMAGES 6.1 Compensation for Services The City agrees to pay the Contractor for recycling collection services provided to the City as described in the Contractor's proposal, and made part of an executed contract, based on the number of household units certified by the City, By November 1st of each year the City will review the number of certified units and notifY Contractor of any changes. Contractor shall submit itemized bills for recycling collection services provided to the City on a monthly basis. Bills submitted shall be paid in tre same manner as other claims made to the City, The Contractor shall submit the monthly documentation and reports as detailed in Section 4.22 with the monthly bilL Payment to the Contractor will not be released unless the required paperwork is included in the monthly bill or submitted separately according to the deadlines as specified in Section 4.22, 6.2 Revenue Sharing All qualified proposals shall state explicitly if the Contractor elects to participate in revenue sharing with the City, If the City awards the contract to a Contractor that elected to propose revenue sharing, and if the final contract negotiated includes revenue sharing, the Contractor shall, on a monthly basis, rebate an amount to the City based on a mutually agreed upon formula. The primary revenue sharing scenario for purposes of this RFP consists of the following formula: 1, A per ton payment of all paper grades collected from the City based on the published index less the proposed paper processing cost per ton. The published index used shall be the Official Board Markets (OBM) "Yellow Sheet" (first issue of the month), Chicago region for Old Newspapers (ONP) # 8, high-side ofrange. Proposers must state on the price worksheet (Attachment C) what percent of this index will be used for the "gross revenue", In addition, Proposers shall provide a proposed paper processing cost per ton, 2. A per ton payment of aluminum collected from the City based on the published index less the proposed aluminum processing cost per ton. The published index used shall be the American Metal Market (AMM), Aluminum (first issue of the month), high-side nonferrous scrap prices: scrap metals, domestic aluminum producers, buying prices for processed used aluminum cans in carload lots, fo,b, shipping point, used beverage can scrap, Proposers must state on the price worksheet (Attachment C) what percent of this index will be used for the "gross revenue", In addition, Proposers shall provide a proposed aluminum processing cost per ton If a revenue sharing component is offered (i.e., greater than zero percent) for either paper or aluminum, each month the Contractor shall provide, together with the monthly rebate to the City, adequate documentation of the corresponding monthly estimate of tons of all paper grades and tons of aluminum collected from the City even in the case where the City were to receive no rebate for the month, The City understands that net revenues may equal zero at times due to poor markets, however, the City shall not pay any costs above and beyond processing costs. 15 City of Arden Hills The Contractor shall provide copies of the referenced OBM market index and AMM market index with each monthly statement. The Proposers shall provide a detailed explanation of how the tonnage estimates will be calculated, Each proposal scenario must contain a percent revenue share offer for both paper and aluminum as described immediately above (see Attachment C), Proposers may offer from zero (0) percent to one hundred (100) percent revenue share. The City or the Contractor may propose other revenue sharing commodities and corresponding proposed pricing formulae, at any time during the duration of the contract. The parties shall enter into negotiations in good faith and any new revenue sharing agreement shall be reduced to writing in the form of an amendment to the contract. 6.3 Liquidated Damages The Contractor shall agree, in addition to any other remedies available to the City, that the City may withhold payment from the Contractor in the amounts specified below as liquidated damages for failure of the Contractor to fulfill its obligations, The following acts or omissions shall be considered a breach of the contract: a) Failure to respond to legitimate service complaints within 24 hours in a reasonable and professioml manner - $50 per incident. b) Failure to collect properly notified missed collections (as per Section 4. 13 of this RFP)- $250 per incident. c) Failure to provide monthly and annual reports (as per Section 4.22 ofthis RFP) - $100 per incident. d) Failure to complete the collections within the specified timeframes (as per Sections 4,11 and 4,14 of this RFP) - $100 per incident. e) Failure to clean up from spills during collection operations (as per Section 4.12 of this RFP) - $250 per incident plus any costs incurred by the City, 1) Failure to report on changes in location ofrecyclable materials processing operations (as per Section 5,1 of this RFP) - $250 per incident. g) Exceeding the maximum process reject rate (as per Section 5.1 of this RFP) - $1,000 per exceedence (defined as a percentage of total weight), h) Failure to receive City written approval of changes to the "dual-stream" collection and processing systems prior to implementing any such change (as per Section 9.6 of this RFP) - $5,000. i) Failure to conduct annual composition anatysis or agreed upon alternative (as specified in Section5.3 of this RFP) - $100 per incident. j) Failure to provide written description of the means to estimate relative amount of process residuals derived from the City's recyclable materials (as per Section 5.4 of this RFP) - $100 per incident. The Contractor shall be liable for liquidated damages amount(s) upon determination of the City of Arden Hills that performance has occurred that is not consistent with the provisions of the 16 RFP for Residential Recycling Services contract. The City shall notifY Contractor in writing or electronically of each act or omission discovered by the City, It shall be the duty of the Contractor to take whatever steps or action may be necessary to remedy the cause of the complaint. The City may deduct the full amount of any damages from any payment due to the Contractor. The remedy available to the City under this paragraph shall be in addition to all other remedies which the City may have under law or at equity, Exceptions: For the purposes of this RFP and subsequent contract, the Contractor shall not be deemed to be liable for penalties where its inability to perform recycling collection service is the result of conditions beyond the control of the Contractor, including but not limited to civil disorder, acts of God, inclement weather severe enough that trucks cannot safely take collections, provided however, that the Contractor shall obtain the approval for the delay from the City's Recycling Coordinator or their designee prior to 4:00 p.m. oftre scheduled collection day, 7. INSURANCE AND OTHER LEGAL REQUIREMENTS 7.1 Insurance Insurance secured by the Contractor shall be issued by insurance companies acceptable to the City and admitted in Minnesota, The insurance specified may be in a policy or policies of insurance, primary or excess, Such insurance shall be in force on the date of execution of the contract and shall remain continuously in force for the duration of the contract. The Contractor must obtain the following insurance coverage with these minimum levels of coverage: Worker's Compensation Insurance: Contractor's Public Liability Insurance: Statutory $500,000 each/person $1,000,000 each/occurrence $500,000 each/person $1,000,000 each/occurrence $1,000,000 aggregate Property Damage: Automotive Inmrance: 7.2 Worker's Compensation The Contractor shall provide evidence of Workers Compensation insurance covering all employees of the Contractor and subcontractors engaged in the performance of the contract, in accordance with tre Minnesota Workers Compensation Law. 7.3 Employee Working Conditions and Respondent's Safety Procedures The Contractor will ensure adequate working conditions and safety procedures are in place to comply with all applicable federal, state and local laws and regulations. The City reserves the right to inspect on a random basis all trucks, equipment, facilities, working conditions, training manuals, records of claims for Worker's Compensation or safety violations and standard operating procedures documents, 17 City of Arden Hills 7.4 Equal Opportunity During the performance of the executed contract, the Contractor, in compliance with Executive Order 11246, as amended by Executive Order 11375 and Department of Labor Regulations 41 CFR, Part 60, shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Contractor shall take affirmative action to insure that applicants for employment are qualified, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin, Such prohibition against discrimination shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of payor other forms of compensation and selection for training, including apprenticeship, In the event of noncompliance with the non-discrimination clauses of this contract, this contract may be canceled, terminated, or suspended, in whole or part, in addition to other remedies as provided by law. 7.5 Compliance with Laws & Regulations In providing services hereunder and in the executed contract, the Contractor shall abide by all statutes, ordinances, rules, and regulations pertaining to tre provision of services to be provided hereunder. Any violation shall constitute a material breach of the executed contract 7.6 Governing Law The laws of the State of Minnesota shall govern all interpretations of this contract, and the appropriate venue and jurisdiction for any litigation which may arise hereunder will be in those courts located within the County of Ramsey, State of Minnesota, regardless of the place of business, residence or incorporation of the Contractor. 7.7 Waiver Any waiver by eitrer party of a breach of any provisions of the executed contract shall not affect, in any respect, the validity of the remainder of the executed contract 7.8 Termination The City may cancel the contract if the Contractor fails to fulfill its obligations under the contract in a proper and timely manner, or otherwise violates the terms of the contract if the default has not been cured after 90 days written notice has been provided. The City shall pay Contractor all compensation earned prior to the date of termination minus any damages and costs incurred by the City as a result of the breach, If the contract is canceled or terminated, all fmished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by the Contractor under this agreement shall, at the option of the City, become the property of the City, and the Contractor shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination, 18 RFP for Residential Recycling Services 7.9 Severability The provisions of the executed contract are severable, If any portion hereof and in the executed contract is, for any reason, held by a court of competent jurisdiction, to be contrary to law, such decision shall not affect the remaining provisions of the same contract. 7.10 Accounting Standards The Contractor agrees to maintain the necessary source documentation and enforce sufficient internal controls as dictated by generally accepted accounting practices to properly account for expenses incurred under this contract. 7.11 Retention of Records The Contractor shall retain all records pertinent to expenditures incurred under this contract for a period of three years after the resolution of all audit findings, Records for non-expendable property acquired with funds under this contract shall be retained for three years after [mal disposition of such property. 7.12 Data Practices The Contractor agrees to comply with the Minnesota Government Data Practices Act and all other applicable state and federal laws relating to data privacy or confidentiality. The Contractor must immediately report to the City any requests from third parties for information relating to the contract. The City agrees to promptly respond to inquiries from the Contractor concerning data requests, The Contractor agrees to hold the City, its officers, and employees harmless from any claims resulting from the Contractor's unlawful disclosure or use of data protected under state and federal laws, Only the company names of Contractors submitting proposals will be made public, All proposal documents shall be held as confidential until the City Council awards a new contract and authorizes staff to execute the new contract. 7.13 Inspection of Records and Disclosure All Contractor records with respect to any matters covered by this agreement shall be made available to the City or its duly authorized agents at any time during normal business hours, as often as the City deems necessary to audit, examine and make excerpts or transcripts 0 all relevant data, Any reports, information, data, etc, given to, prepared, or assembled by the Contractor under a future contract shall not be made available by the Contractor to any other person or party without the City's prior written approvaL All finished or unfinished documents, data, studies, surveys, drawings, maps, photographs, and reports prepared by the Contractor shall become the property of the City upon termination of the City's contract with the Contractor. 7.14 Independent Contractor Nothing contained in this agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties, The Contractor shall at all times remain an independent Contractor with respect to the services to be performed under this contract. Any and all employees of Contractor or other persons engaged in the performance of any work or services required by Contractor under this contract shall be 19 City of Arden Hills considered employees or sub-contractors of the Contractor only and not of the City; and any and all claims that might arise, including Worker's Compensation claims under the Worker's Compensation Act of the State of Minnesota or any other state, on behalf of said employees or other persons while so engaged in any of the work or services provided to be rendered herein, shall be the sole obligation and responsibility of Contractor. 7.15 Transfer of Interest The Contractor shall not assign any interest in the contract, and shall not transfer any interest in the contract either by assignment or novation, without the prior written approval of the City, The Contractor shall not subcontract any services under this contract without prior written approval of the City, Failure to obtain such written approval by the City prior to any such assignment or subcontract shall be grounds for immediate contract termination. 7.16 Non-Assignability and Bankruptcy The parties hereby agree that Contractor shall have no right to assign or transfer its rights and obligations under said agreement without written approval from the City, In the event the Contractor, its successors or assigns files for Bankruptcy as provided by federal law, this agreement shall be immediately deemed null and void relieving all parties of their contract rights and obligations. 7.17 Indemnification The Contractor agrees to defend, indemnifY and hold harmless the City, its officers and employees, from any liabilities, claims, damages, costs, judgments, and expenses, including attorney's fees, resulting directly or indirectly from an act or omission of the Contractor, its employees, its agents, or employees of subcontractors, in the performance of the services provided by this contract or by reason of the failure of 1he Contractor to fully perform, in any respect, any of its obligations under this contract If a Contractor is a self- insured agency of the State of Minnesota, the terms and conditions of Minnesota Statute 3,732 et seq, shall apply with respect to liability bonding, insurance and liability limits, The provisions of Minnesota Statutes Chapter 466 shall apply to other political subdivisions of the State of Minnesota, 7.18 Performance & Payment Bond Contractor shall execute and deliver to the City a Performance and Payment Bond with the corporate surety in the sum of $25,000 or equal ("equal" may include a Letter of Credit from a banking institute approved by the City Attorney), The contract shall not become effective until such a bond, in a form acceptable to the City, has been delivered to the City and approved by the City Attorney, The executed contract shall be subject to termination by the City at any time if said bond shall be cancelled or the surety thereon relieved from liability for any reason, The term of such performance bond shall be for the life of the executed contract Extensions or renewals shall require the execution and delivery of a performance bond in the above amount to cover the period of extension or renewal. 20 RFP for Residential Recycling Services 7.19 Conflict of Interest Contractor agrees that no member, officer, or employee of the City shall have any interest, direct or indirect, in the executed contract or the proceeds thereof Violation of this provision shall cause the executed contract to be null and void and the Contractor will forfeit any payments to be made under the executed contract 7.20 Entire Contract The executed contract supersedes all verbal agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof Any alterations, amendments, deletions, or waivers of the provisions of the executed contract shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 7.21 Contract Conditions The City reserves the right to waive minor irregularities in the proposal documents and to reject any or all proposals, The City reserves the right to enter into a contract with a Proposer who does not submit the lowest cost proposaL The Contractor shall be required to execute the City's contract and to fulfill the requirements contained within it The Bond and Certificate ofInsurance shall be provided when the contract is executed, No proposal can be withdrawn before 60 days after the date for submission of proposals, The Contractor shall review and return signed copies of the contract within 30 days of receipt of the contract 8. TERM OF CONTRACT The term of the new recycling contract will be a period of three (3) years from March 1,2008 through February 28, 201 L The City may negotiate contract provisions for up to two, one-year extensions for years 2012 and 2013, at the City's sole discretion, 9. SUBMITTING PROPOSALS 9.1 Notification oflntent Prospective Contractors interested in responding to this RFP shall notifY the City in writing (e- mail acceptable) of their interest Notifications of intent should be sent to: Mr, James Lehnhoff City Recycling Coordinator City of Arden Hills 1245 West Highway 96 Arden Hills, MN 55112 Fax: (651) 634-5137 E-mail: iamesJehnhofflalci.arden-hills.mn.us 21 City of Arden Hills Notifications shall include name, title, address, phone number, and e-mail address, Notification of intent must be made by October 17,2007. 9.2 Requests for Clarification Questions, requests for clarification or requests for information about this RFP or process must be submitted in writing to the City by 4:00 p.m. Central Time, October fl, 2007. All questions and requests for more information and the City's responses will be summarized in writing and forwarded to all other qualified Proposers prior to October 24, 2007. Any other unauthorized contact with other City staff, City Council members, or Commission members will subject the company to disqualification from further consideration. This restriction will be in effect from the date this RFP is finalized and authorized for release by the City Council through the date of final contract award (including authorization for execution) by the City CounciL 9.3 Contractol1l May Team with Other Companies It is recognized that some prospective haulers may wish to subcontract with other companies for processing services, This is allowed as needed, but all such Contractor-subcontractor relationships must be explicitly described in each proposal scenario, The City will contract with only one primary Contractor for the recycling services, Multiple Contractors may team up with other complementary hauling or recycling companies provided there is no collusiou, A company may be listed as a part of more than one team as long as this company submits a written certification that no collusion occurred between competing proposals, 9.4 How to Submit Proposals Proposal shall be submitted to City Hall no later than 4:00 p.m. Central Time, November 14, 2007, to be considered eligible, Proposals shall be submitted iu a sealed envelope with the name of the proposing company on the outside and addressed as follows: Enclosed: Recycling Collection Service Proposal c/o James Lehnhoff City Recycling Coordinator City of Arden Hills 1245 West Highway 96 Arden Hills, MN 55112 Proposals will be treated in accordance with Mn, Statutes 13.591, Subdivision 3 (b), Data Practices Act. Proposers must include five (5) bound printed copies, one (I) unbound printed copy, and one electronic copy of the proposal on a Compact Disk (CD) inside the sealed envelope. The proposal file must be formatted in Microsoft Word or a suitably compa tible alternative. Only the company names of Contractors submitting proposals will be made public, All proposal documents shall be held as confidential until the City Council awards a new contract and authorizes staff to execute the new contract. 22 RFP for Residential Recycling Services 9.5 Proposal Content Qualified proposals must iuclude at least the following elements: . Statement of Contractor qualifications, including at least three references (contact names and phone numbers) of other municipal clients in the Twin Cities (Minneapolis/St. Paul) metropolitauregion receiving similar services, . List of Principal Officers' names, addresses and contact numbers (telephone, e-mail, fax), . List of materials proposed to be collected (if different from Section 3.22) and a discussion and rationale for any proposed changes to the City's standard list of recyclable materials. . Completed price worksheets (see Attachment C), . Statement as to any litigation in the past five years within the State of Minnesota and the current status of that litigation, . Copy of an education tag as described in Section 4,9. . Copy of monthly report forms as described in Section 4.22, . Description of operations at materials processing facility where recyclable materials will be taken including location, hours of operation and capacity. 9.6 Curbside Dual-Stream Every Week Collection Proposal Scenario The City's current dual-stream collection and processing systems comprise the base proposal scenario for purposes of this RFP, If prospective Contractors propose under the dual-stream scenario, they should assume materials would be both collected and processed in a dual-stream mode. Under this dual-stream scenario, residents will be instructed to separate recyclable materials into two groups of materials: (I) all paper fiber products including: old newspaper (ONP), old magazines (OMG) including catalogs, old corrugated containers (OCC), mixed mail, old boxboard (OBB), phone books, pop and beer carriers/cartons; and (2) all rigid containers including: glass food and beverage containers, plastic bottles with a neck, steel and tin cans, aluminum foil and aluminum cans, Under this dual-stream scenario, processing shall also be by the categories as collected: paper separated from containers, It is not acceptable to propose to collect materials in a dual-stream mode and then process them in a single-stream mode. If the City awards a new dual-stream service contract under this scenario, the new Contractor shall not make any changes to either of these dual-stream collection or processing systems without written approval of the City. Other design and operating details of the current collection, processing and public education systems are assumed within this dual-stream scenario, Contractors may propose variations to this scenario, 9.7 Single-Stream Proposal Scenario Prospective Contractors may propose a new single-stream collection (weekly and/or every other week) and processing system as an alternate to the City's current dual-stream system. Proposers should propose under this single-stream scenario to collect and process the residential curbside material within the form of a single-stream system whereby residents will be instructed to commingle all groups of recyclable materials. If prospective Contractors propose under this 23 City of Arden Hills single-stream proposal scenario, they must provide an explicit description of the following collection design details: . Cart size and other specifications if different from Section 4,6.2. . The portion of the monthly cost charged to the City for rental of carts, . Desired residents' material preparation and setout instruction> (e.g" if corrugated cardboard is to be ptaced in the single-stream cart, location of carts, etc.). · Any other collection system design and operational elements the City will need to fully understand the single-stream proposaL 9.8 Price Worksheet Prospective Contractors must complete a price worksheet as part of each proposal they submit (see Attachment C for worksheet). In addition, Proposers may complete an additional alternate price worksheet if their proposed system does not fit into one of the other scenarios. 9.9 Proposals May Be Rejected in Whole or Part The City reserves the right to reject any or all proposals or parts of proposals, to negotiate modifications of proposals submitted, to accept part or all of the proposals on the basis of consideration( s) other than proceeds or cost, and to negotiate specific work elements with a respondent into a project of lesser or greater expense and reimbursement than described in this RFP or the responlent's reply, 9.10 RFP and Proposal to Become Part of Final Contract The contents of this RFP, the successful proposal, and any written clarifications or modifications to the contents thereof submitted by the successful Contractor shall become part of the contractual obligations and be incorporated by reference into the ensuing contract. If any provision of the contract is in conflict with the referenced RFP or proposal, the contract shall take precedent, 10. CONTRACTOR SELECTION PROCESS 10.1 Contractor Selection Process To the best of its ability, the City will use the following process for its decision-making: . City staff will review and analyze the details of the qualified submitted proposals ~ee Section 10.2, "Evaluation Criteria"). The City reserves the right to ask Proposers for additional informatioulclarificatiou to better understand the proposals, City staff will recommend the top two (2) Proposers, in rank order of priority, to the City CounciL . City staff will negotiate with the top ranked Proposer. If negotiations with top-ranked Proposer are not successful, the City may then initiate negotiations with the second ranked Proposer, and so on, . Once a draft contract has been successfully negotiated, City staff will present its recommendations to the City CounciL The City Council may then award the contract and authorize staff to execute it. 24 RFP for Residential Recycling Services . The new recycling contract will commence on March 1,2008. 10.2 Evaluation Criteria The City will objectively evaluate the proposals snbmitted to determine the best value for the City and its residents, A comprehensive set of criteria will be used to quantifY the merits of each proposal package, including (but not limited to): . Strength of qualifications of the Contractor (together with any proposed subcontractor, if any), especially related to the particular needs of the City of Arden Hills, Qualifications will include (but not be limited to) the proven capacities of the Contractor (and any subcontractor) to meet the operational requirements of the City. . Comments from the Contractor's reference clients, . Innovations proposed to increase participation and recyclable material quantities collected. . Innovations proposed to improve public education about recycling to all City residents, . Relative amount of revenue sharing to the City, . The price of the recycling services, . Responsiveness of the Contractor to all other provisions of this RFP, These evaluation criteria are not presented in any special order. No ranking of these criteria within this RFP is intended or implied, 25 Attachment 7C-2 Walters Recycling Proposal Cover Page December 10, 2007, City Council Meeting Big Enough to Get the Job Done...SmaIl Enough to Care ~.... ~~~b;i:~;C~ND<~ '763.780-8486 www.wallersracycllng.com W ALTERS RECYCLING & REFUSE, INC. P.O. Box 67 Circle Pines, MN 55014 RECYCLING COLLECTION SERVICE PROPOSAL C/O James Lehnhoff City Recycling Coordinator City of Arden Hills 1245 West Highway 96 Arden Hills, MN 55112 Due: November 14,2007 - 4:00 p.m. Big Enough to Get the Job Done...SmaII Enough to Care Attached is our proposal for Recycling Collection Removal for the City of Arden Hills, Minnesota. It is our goal to promote and encourage all residents in the City of Arden Hills to recycle as much product as possible. To accomplish this, we are proposing Single-Stream, Every Other Week Collection. In our experience, residents are requesting the larger container which allows them to recycle more items. Therefore, we will deliver 94 gallon recycling carts at no extra cost. We will also offer 68 gallon recycling carts to those residents wanting a smaller cart. The benefits to both the City and residents of single sort recycling serviced on an every other week basis are numerous. City Benefits · No Sorting - Single Sort Increased participation which results in increased in tonnage · Every Other Week Pick-up Less neighborhood traffic . Carts with Lids and Wheels Less likelihood ofrecycled product blowing out of container Resident Benefits . No Sorting - Single Sort Ease of use - Residents may be able to decrease garbage container size and cost due to more product being recycled . Every Other Week Pick-up Safer streets due to decreased traffic · Carts with Lids and Wheels Easier than bins for Residents to carry to the street Contents are covered and not revealed 2 Big Enough to Get the Job Done...SmaII Enough to Care Based on our experience in St. Anthony and Coon Rapids, single sort recycling increased participation from 65% to 95% which resulted in more tonnage collected. Walters Recycling & Refuse is also committed to participation in community and City-sponsored events. Over the last several years, we have provided trash and recycling services to several Church functions (Church of St. Gerard, Lord of Life, and St. Bernards to name a few). We also have participated in Fridley Pioneer Days, New Brighton Stockyard Days, Lino Lakes Truck Day, and Spring Lake Park's Recycling Day. 3 Attachment 7C- 3 Eureka Recycling Proposal Cover Page December 10,2007, City Council Meeting e@i ~~~~G ~~t Our mission is to reduce waste today through innovative resource management and to reach a waste-free tomorrow by demonstrating that waste is preventable, not inevitable, November 14, 2007 Mr. James Lehnhoff City Recycling Coordinator City of Arden Hills 1245 West Highway 96 Arden Hills, MN 55112 Dear Mr. Lehnhoff: Thank you for the opportunity to provide a proposal for comprehensive recycling collection, processing, and education services, For over 20 years, Eureka Recycling has provided model, award-winning curbside and apartment recycling collection and processing services, edncation and advocacy for the city of Saint Paul and more recently, the cities of Maplewood, Roseville and Lauderdale, Eureka Recycling has the experience, capacity, and expertise Arden Hills is looking for. As a nlission-driven nonprofit, Eureka Recycling has consistently stepped up to the environmental challenges of the communities it serves, With a focus on long term benefits and sustainability, our programs are continuously analyzed based on cost, convenience, and environmental impact. Through rigorous evaluation and studies, Eureka Recycling is abie to develop innovative programs that cost-effectively address local needs and are replicable in other conununities, furthering our mission to demonstrate that waste is preventable, not inevitable, We believe we have something else unique to offer you: a partnership with your community to ensure that the recycling program fits the goals and desires of your residents, We have outlined a proposal that we think is the best way for Arden Hills residents to have a cost-effective program that maximizes the environmental benefits of recycling, These are a few highlights: Get more recycling with a dual-stream system Eureka Recycling believes that your current dual-stream collection method is the best way to maximize your recovety goals in a cost-effective manner. We base this belief on our 14-month collection study and the results we've experienced at the curb, detailed in the 2828 Kennedy Street NE \ Minneapolis, MN 55413 \ (651) 222-7678 \ Fax (612) 623-3277 \ www,eurekarecycling,org I":' . "~'1 ..0 @ ~~:";l~:'::';~'i';~;'~;-~-";' ",J3~"'-i'~;FJ "L,i~'" "':;~'" 'c:Jport'_lr>:':' ';fq}ic\'~r_" '.0 our POiiCY tG hire 'NitllOul discrimination based Gn race. Ci8ed. rB;igio;~ s~x_ c~Ji;}l, :'JtiDnal origill, C;~. J>lC~:3\''.'. ra:;i' J: status, JQ~, disilDi!jiv il;aritai status or status with regard to public assistance "f',)'n~~.SD" G:8~l ?ri'lter :)1' ;::lDo,~ OGstc0'lSUm?_1 recyc!ad paper ,hat was processed witr,out tI,e use of ch!ori'ie accompanying fact sheets, Dual~stream recycling clearly maximizes the amount of materials that are truly recycled (not just picked up at the curb), Here's why: . Residual rate: The facility~wide residual rate at Eureka Recycling's dual~stream facility is less than 2%, No other recycler in the metro area comes close to this level of environmental achievement, Recycling experts from around the country are concerned with the negative impacts of single stream recycling on the quality of materials, Single stream technology simply does not adequately address quality concerns at this time. . Glass: A dual~stream program with Eureka Recycling guarantees your glass will be recycled back into glass bottles, Almost all of glass Eureka Recycling processes is recycled back into glass bottles, Other haulers and processors using a single stream method in the metro area use the majority of their glass as aggregate such as use in landfill operations or for sandblasting, . Education: Bins allow for drivers to easily educate recyclers, ensuring that the materials picked up can actually be recycled, Drivers cannot see what's in the bottom of a recycling cart, which results in less opportunity for education and more contaruination. . Contamination: By keeping papers separate from bottles and cans, you protect valuable resources like newspapers and cardboard from being contaminated by beverages and food, Weekly is better than bi-weekly We believe that Arden Hills should keep their weekly two~stream collection method, A weekly program is an innovative way to increase recycling: it allows you to double recycling capacity without lowering the quality of the materials collected, which occurs when materials are collected in a single stream program, Weekly collection gives people more space and the convenience of recycling each week. Recent pilot studies in Edina and St. Anthony show that moving from weekly dual~stream to biweekly single~stream results in a decrease in the amount of materials being collected, Conversely, the cities of Saint Paul and Roseville experienced an increase of 20% in the recycling rate by switching from bi~weekly collection to weekly collection, In these communities, the environmental costs of additional collection and fuel are far outweighed by the environmental benefit of additional recycling, Recycle more stuff Eureka Recycling is always looking to add new matetials, In addition to all the materials you currently recycle, with Eureka Recycling, you can add these materials to the recycling you put at the curb each week: . milk cartons and juice boxes . clothes and linens . pop and beer boxes Page 2 of 4 Award-winning education Eureka Recycling has invested significantly in public education as an essential component of recycling for over twenty years and we are prepared to apply this expertise in Arden Hills to increase participation and recovery rates, Eureka Recycling strongly believes that education is a crucial part of every contract we have and is always included in our bid price, Our year end mailing and tagging system aren't Xeroxed copies, They are colorful, thoughtful designed education tools that motivate residents to recycle more, At minimum, the following is included as part of this proposal (see attached examples): . a direct mailing of a calendar and sorting instructions to every resident annually . our staffed recycling hotline · detailed corrective/educational tags left at the curb for residents Revenue sharing for Arden Hills For the first time, Arden Hills will receive a revenue for the materials your community recycles, In our proposal, Arden Hills shares the revenues that come from selling these recyclables, Revenues for materials have been increasing for several years, For example, the value of recycled paper has increased by 75-80% in the last five years, As the world's resources are being used up, and as the tremendous demand for resources continues from rapid development in Asia, the value for recyclables will continue to rise, The city should share in these revenues, Our revenue share formula is attached and is based on market values and the amount of material recycled in Arden Hills, While there can never be a guarantee on commodity values, in 2007, Arden Hills would have received $21,527,32 back in revenue, That translates to $,70/household/month back in a revenue share, What's the bottom line? The cost for collection combined with revenue share The most cost-effective way for Eureka Recycling to collect recycling in a city is to spread its collection days evenly across five weekdays, This maximizes the use of the additional equipment (trucks) and staff (drivers) needed for collection, Because recycling in Arden Hills is collected only two days a week, the cost for collection services is higher. If collection were five days a week in Arden Hills, our costs to you would be lower because we would be able to use our equipment and staff more efficiently. The cost for weekly collection of two stream recycling with all the above described educational services will be $2,95/household/month, This collection cost is a fixed expense, Arden Hills will receive a revenue share, which will fluctuate with the market. We have conservatively estimated that your net cost for weekly recycling will be $2.25 per household per month (after revenue share and based on 2007 values and quantities recycled). See attached sheet for more detaiL Page 3 of 4 Thank you for giving us the opportunity to present this information to the City of Arden Hills, If you need any more information or would like to further discuss how our proposal can work for you please do not hesitate to Alex Danovitch, Director of Business Development, at (651) 222-7678, We also invite you to come take a tour of our facility in Northeast Minneapolis to learn more about what we do. Sincerely, san Hubbard CEO and Co-president Page 4 of 4