REPORT TO THE CITY COUNCIL
FROM: BROCK D. BUCHE, PE, PLS, Director
Department of Public Utilities
BY: AHMAD ALKHAYYAT, PE, MBA, Assistant Director
Department of Public Utilities - Solid Waste Management Division
SUBJECT
Title
Award of a Requirements Contract to Toter, LLC, for five years, with two one-year optional extensions, in an amount of $951,500 per year for the purchase of up to 15,000 refuse, recycling, and green waste/organics containers using a cooperative purchase agreement (Citywide).
Body
RECOMMENDATION
Staff recommends City Council award a Requirements Contract to Toter, LLC, for five years, with two one-year optional extensions, in an amount of $951,500 per year using a cooperative purchase agreement for the purchase and delivery of up to 15,000 refuse, recycling, and green waste/organic containers.
EXECUTIVE SUMMARY
The Department of Public Utilities, Solid Waste Management Division (SWMD) seeks to purchase up to 15,000 refuse, recycling, and green waste/organic containers (containers) necessary to support new growth and replacement to residential customers. Staff recommends the containers continue to be purchased via a cooperative purchase agreement based on a prior competitive bid contract from Sourcewell, a State of Minnesota local government agency and service cooperative that offers cooperative procurement solutions to government entities to allow the best value purchase price to its customers.
Award of this contract through a cooperative purchase agreement between Sourcewell and supplier, Toter, LLC, (Supplier) will allow for cost effective purchase and the timely delivery of containers for the continued operation of collection of municipal solid waste, recycling, and green waste/organics waste materials to ensure the health and safety of the community.
BACKGROUND
The SWMD is responsible for the collection of municipal solid waste, recyclables, green waste/organic waste, and operation clean-up for 119,000 residential customers. The SWMD also has oversight of litter collection, and FresGo customer responses for 103 square miles within the Fresno city limits. These collection activities produce approximately 4,921 tons of material each week.
The City of Fresno (City) requires residential containers for all City residents to use for their disposal/removal of municipal solid waste, recycling, and green waste/organics waste. The residential customers have three 96-gallon containers as a basic level of service. A residential customer will have one container for trash (gray), one for recyclables (blue), and one for green waste/organic waste (green). An optional 64-gallon container is offered for trash only (gray). Currently, there are over 365,971 containers in use within the City. On average, SWMD purchases approximately 14,000 containers annually. Of this amount, approximately 39 percent is to support growth and 61 percent for container replacements and to establish an inventory stock for field repairs. Thus, the acquisition of containers on a continual basis is necessary to keep up with the growth of the City and for the replacement of stolen or damaged containers for residential customers.
In the past, the SWMD has purchased containers by using other municipality’s contracts providing the City the best value of containers for its customers. City of Tucson, National IPA, and the supplier successfully negotiated a contract and Tucson executed the agreement with a contract effective October 31, 2017, with the option to renew for (4) additional one-year periods through January 31, 2023. The City of Tucson’s agreement 171717 is set to expire on January 31, 2023.
The Purchasing Division reached out to Toter to determine if there were any other piggyback options available for execution of a new agreement and were presented with Sourcewell Cooperative Purchase Agreement Contract 041521-TOT. This agreement would be valid through May 28, 2025. However, the award of this contract can be extended up to five years with two one-year extension, to purchase up to 15,000 containers per year for the City.
The SWMD recommends City Council award a citywide Requirements Contract to Toter, LLC, in an amount not to exceed $951,500 for the purchase and delivery of up to 15,000 containers via a cooperative purchase agreement based on a prior competitive bid contract with Sourcewell. This amount includes sales tax and freight charges. Award of this contract through a cooperative purchase agreement will allow for cost effective purchase and the timely delivery of containers for the continued operation of collection of municipal solid waste, recycling, and green waste/organic waste materials to ensure the health and safety of the community. The Purchasing Division has approved this contract and recommends Council to approve.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this contract does not qualify as a "project" as defined by CEQA.
LOCAL PREFERENCE
Local preference is not applicable. The City is using a cooperative purchase agreement for this purchase.
FISCAL IMPACT
No general funds will be used to purchase this item. The funding to cover the container costs will be funded through the Solid Waste Enterprise Fund in Fiscal Year 2024, not to exceed $951,500.
Attachments:
Attachment 1 - Cooperative Purchase Agreement Toter LLC
Attachment 2 - RFP and Addendum Plastic Refuse 041521
Attachment 3 - Sourcewell Contract with Toter LLC
Attachment 4 - Proof of Publication Plastic Refuse 041521