Agenda Item Wording:
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Authorization to allow the City Manager to award contract for processing of City collected recyclables (RFP 20-21-46) to Pena's Disposal in the amount not to exceed $540,000 annually for up to three years for a total not to exceed cost of $1,620,000.
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Deadline for Action: N/A
Submitting Department: Public Works
Contact Name and Phone Number:
Jason Serpa, Public Works Manager, jason.serpa@visalia.city, 713-4533
Nick Mascia, Public Works Director, nick.mascia@visalia.city, 713-4323
Department Recommendation:
Staff recommends authorizing the City Manager to award a contract for processing City collected recyclables (RFP 20-21-46) to Pena's Disposal in the amount not to exceed of $540,000 annually and a not to exceed $1.62 million if all three potential years of the contract are utilized. Although the City is expected to receive a recycling rebate based on the current recycling market, the contract amount is based on most current historical payments to Pena's Disposal. The proposed contract is 3 years, with 2 one (1) year renewals.
Background Discussion:
The City's current contract with Pena's Disposal expires September 30, 2021. A Request For Proposal (RFP 20-21-46) was issued to receive proposals for a new contract.
On August 4 two proposals were received from:
* Pena's Disposal, Inc.
* Mid Valley Disposal
Pricing Model:
The RFP requested one pricing model that focused on a simple per ton pricing for processing the City's recyclables. Because the RFP also required the contractor to pay for the City's recyclables based on the market rate (recyclingmarkets.net), this made the comparative selection a lot easier without the dilution of recycling pricing that may exist in the secondary market. The amount paid to the city for all recyclables will be identified on every invoice and verifiable by the standard pricing published regionally. This is different from the City's current contract that does not separate the recyclab...
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