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TITLE: |
Consideration and Approval: Professional Services Agreement with Friedman Recycling Company for equipment, transportation, processing, and the recovery of recyclable materials. |
STAFF RECOMMENDED ACTION: |
- Approve the Professional Services Agreement with Friedman Recycling Company for equipment, transportation, processing, and the recovery of recyclable materials; and
- Authorize the City Manager to execute the necessary documents.
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Executive Summary: |
On May 4, 2023, the City assumed the City of Flagstaff Materials Recovery Facility (MRF) operation at 1800 Butler formally operated by Norton Environmental. In the short term, a hauling contract was executed with Joe Dirt Excavating, Inc. to take the City's recycling materials for processing to the Phoenix area. Concurrently, staff worked to identify other interim options for recycling with an emphasis on finding a more efficient and cost-effective option for consideration. Staff considered proposals from several hauling and processing companies and is recommending Friedman Recycling Company (Friedman) for material compaction and container equipment, transportation, and recycling processing.
Under the Professional Services Agreement (Agreement), Friedman will provide a horizontal compactor for maximizing the transfer weights of recycling materials, to haul the recycling materials from Flagstaff to their materials recovery facility in Phoenix, and to process the recycling materials. The term of the Agreement is 6-months with two, 3-month extensions. Based on an estimated total of 550 tons of commingled recyclables per month, it is estimated that the Friedman Agreement will cost the City approximately $65,000 per month, or $118 per ton, post-collection.
The Friedman Agreement includes the following general materials, services, and provisions:
- A compactor and containers for loading recycling materials into 40 cubic yard receiver boxes (rental fee of $199 per container per month).
- Transportation of two, 40-yard receiver boxes per haul (i.e., doubles) to the Friedman MRF, equating to approximately 16 to 20 nets tons per haul ($1,075 per haul).
- Processing and recovery of commingled recyclables with a base processing fee of $85 per ton followed by the application of a revenue sharing calculation that is based on the monthly Average Market Value (AMV) of the City's recyclables.
- The AMV is calculated by the City's composition of recyclable commodities (per current and future composition audits) and the current market price of each individual commodity as per published price indices for recyclable commodities. For example, the AMV for the month of April was $26.54, resulting in a net processing fee of $56.14 per ton of commingled recyclables (i.e., $85 minus $26.54).
- The contract does include a minimum tonnage guarantee. City recycling materials volumes have shown an approximate average of 500 tons per month of commingled recyclables, excluding glass.
There will be no modification to the recycling materials that the City currently accepts, including:
- Loose Mixed Paper
- Loose Clean Cardboard
- Loose Plastic #1 PET bottles
- Loose Plastic #2 HDPE Natural bottles
- Loose Plastic #2 HDPE Color bottles
- Loose Tin Beverage Containers
- Loose Aluminum Beverage Containers
- Mixed Rigid Plastics
Overall, the Friedman Agreement is the most efficient and cost-effective interim approach to manage the City's recyclables at this time. The City will be developing a formal solicitation to procure a longer-term solution over the next few months to maintain and enhance the City's recycling needs. |
Financial Impact: |
The Friedman Agreement is estimated to be less expensive than other proposals considered. It is anticipated that the existing budget proposed for FY23-24 will be solvent for the duration of the Agreement.
Material services will be billed accordingly to the following charge codes:
211-06-168-0649-0-4240 (Rents-Equipment)
211-06-168-0649-0-4269 (Transporting Services)
211-06-168-0649-0-4221 (Utilities-Recycling Processing Fee)
FY 2023-24, the Solid Waste Fund has $750,000 budgeted for the operation of the transfer station, transportation cost of the recyclables and the recycling processing cost net of any revenue offsets. The Solid Waste Fund will be adjusting its budget for FY 2023-24 to absorb any additional cost over $750,000 budget. |
Policy Impact: |
This Agreement allows the City to maintain recycle services and to ensure that materials are recycled to their fullest extent possible. These services are a critical part of both public interest, environmental stewardship, natural resource conservation, preservation of the Cinder Lake Landfill, and directly support the City's Rethink Waste and Carbon Neutrality Plans. |
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan: |
Priority Based Budget Key Community Priorities and Objectives
- High Performance Governance
- Serve the public by providing high quality customer service Encourage public trust through transparency, accessibility and use of the City’s public participation policy
- Safe & Healthy Community
- Foster a safe, secure, and healthy community
- Develop alternative diversion programs
- Inclusive & Engaged Community
- Foster community pride and civic engagement
- Sustainable, Innovative Infrastructure
- Utilize existing long-range plan(s) that identify the community's future infrastructure needs and all associated costs.
- Deliver outstanding services to residents through a healthy, well maintained infrastructure system.
- Livable Community
- Provide amenities and activities that support a healthy lifestyle
- Environmental Stewardship
- Promote, protect, & enhance a healthy, sustainable environment & its natural resources.
Implement, maintain and further the Climate Action and Adaptation Plan (CAAP)
- Carbon Neutrality Plan
- Goal CR-2 – Strengthen existing community systems to create resilience to both short-term shocks and long-term change.
- Goal ES-4 – Actively seek to recognize past harms, repair trust, and build deeper relationships with community members.
- Goal MM-3 – Divert more waste from the landfill.
- Goal PF.2 – Provide sustainable and equitable public facilities, service, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics.
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Has There Been Previous Council Decision on This: |
Yes. On May 4, 2023, the City entered into an Emergency Services Contract with Joe Dirt Excavating, Inc. to haul recycling materials which was ratified by the City Council on May 23, 2023. On May 23, 2023, the City Council approved an Intergovernmental Agreement with the City of Phoenix for the Phoenix to accept the City of Flagstaff's recycling materials at their facilities.
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Options and Alternatives: |
- Approve the Agreement with Friedman Recycling Company for equipment, transportation, processing, and the recovery of recyclable materials; or
- Reject the Agreement and re-solicit quotes for alternative considerations; or
- Revise the terms and conditions, and return to the vendor further discussions.
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Background and History: |
Friedman will maximize hauling efficiencies to limit the City's carbon and energy footprint to the largest degree practical while ensuring continuity in the City's recycling needs and movement of commingled recyclables to the Phoenix metropolitan area. The only other option available to the City would be to deliver the commingled recyclables to the Cinder Lake Landfill for disposal.
For this Agreement, the Purchasing Director considered the need and urgency of the service and found that the service Friedman will be providing qualifies as a sole source in that no other company can provide all services required. The City will be developing a formal solicitation over the next few months to identify more cost effective and efficient means and methods to maintain and enhance the City's recycling transportation and processing needs. |
Expanded Options and Alternatives: |
City staff continue to engage with interested parties and is planning a community event in the coming months that will help to inform long-term solutions to the City's recycling transportation and processing needs. Enhanced community education, outreach programs and initiatives are being developed in collaboration between the City's Sustainability Division and Solid Waste Section. |
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