TO: Honorable Mayor & Members of the North Port Commission
FROM: Peter D. Lear, CPA, CGMA, City Manager
TITLE: Single Source procurement with Resource Recovery Systems LLC, for recyclable materials processing for the City of North Port Solid Waste District at a cost not to exceed $960,000.
Recommended Action
Approve the Single Source procurement with Resource Recovery Systems LLC, for recyclable materials processing for the City of North Port Solid Waste District at a cost not to exceed $960,000.
Background Information
Resource Recovery Systems currently provides transfer, processing, and marketing services of recyclable materials under the utilization of Sarasota County Contract No. 2013-495, which expires on September 30, 2018. Resource Recovery Systems has the only dual-stream recycling processing facility in Sarasota County and is currently the only local vendor able to process dual-stream recyclables.
As the current vendor, Resource Recovery Systems already operates the City’s recyclables transfer station in Venice and has necessary staffing levels already in place.
If the single source is approved, there will be no delay or change in service levels as the City pursues other alternatives.
The City of North Port mandates residential and commercial recycling in a dual‐stream recycling program.
The City’s Solid Waste District utilizes automated totes to collect recyclable materials on a rotating basis collecting paper and cardboard one week and commingle (plastics, glass and cans) the next week. This collection process has ensured the material is extremely clean, with very little contamination making it more valuable.
In March 2018, the Sarasota County Solid Waste Division staff initiated the following discussions:
Ø Long-Term Recommendation for the Collection and Disposal Method for Garbage. Sarasota County utilizes the services of a vendor for the collection and disposal of their garbage. Their vendor’s contract for the collection and disposal was due to expire in September 2018. Subsequent to months of discussions with the Solid Waste Division staff, County Administration and the Sarasota County Board of County Commissioners, the decision was to retain manual garbage collection within the unincorporated areas of Sarasota County.
Ø Long-Term Recommendation for the Collection and Processing of Recyclables. Sarasota County utilizes the services of a vendor for the collection of their recyclables. Their vendor’s contract for the collection and processing of the recyclables was due to expired in September 2018. The Solid Waste Division staff critiqued retaining dual stream recycling collection or changing to single stream recycling. Subsequent to months of discussions with the Solid Waste Division staff, County Administration and the Sarasota County Board of County Commissioners, the decision was to automate the recycling and change from dual stream collection to single stream collection. Single stream collection is defined as the collection of program recyclables in a single recycling container.
Sarasota County Solid Waste Division staff originally anticipated preparing and advertising a Request for Proposal (RFP) for a processor for recyclables relatively quickly. However, several months later, the RFP for recyclables was prepared and advertised on August 23, 2018, in anticipation of awarding a contract to a processor for recyclables by December 31, 2018.
During their regular meeting on September 11, 2018, the Sarasota County Board of County Commissioners voted to approve single stream recycling for the unincorporated areas some time in 2019. In addition, they approved a contract for a minimum of three months with a possible maximum of one year, including the option to terminate the contract after sixty days with Resource Recovery Systems, LLC for the processing of recyclables for fiscal year 2019.
Resource Recovery Systems, LLC, is a dual stream recycling processor that has provided their services to Sarasota County for many years. Resource Recovery Systems, LLC, expressed their interest to Sarasota County for a long-term contract for the processing of their recyclables. However, since the Sarasota County Board of County Commissioners only wanted a contract for a minimum of three months and a maximum of one year, including the option to terminate the contract after sixty days, Resource Recovery Systems, LLC increased their costs for processing services nearly 200 percent, $177 per ton. This results in a $3.4 million dollar increase for Sarasota County to process their recyclables.
The new Recycling Program in the City of North Port has brought an increase in our collected materials without an increase in our contamination rate. This produces an excellent material which can be reused.
Subsequent to Solid Waste staff’s discussions with Resource Recovery Systems, LLC, they have agreed to continue to accept our excellent recyclables. The processing cost for the recyclables will be $177 per ton. Please note the City has maintained agreements with Resource Recovery Systems, LLC to provide residential recyclable materials processing services since 2013. As a short-term solution, the Solid Waste Division staff is proposing to a Single Source with Resource Recovery Systems, LLC for a minimum of three months with a possible maximum of one year including the option to terminate the contract after sixty days. Resource Recovery Systems is the only local recovery system for dual stream recycling within Sarasota County.
With respect to a long-term solution for the collection and processing of recyclables, the Solid Waste Division staff is currently working on the following tasks:
Ø Establish a Recycling Center at 5455 Pan American Boulevard (see attached aerial).
Ø Process Request for Bid for Transport Services.
Ø Request for Bid for Recyclable Materials Processing and Marketing Services.
Ø Formal Quotes for Recycling Center Storage Building.
Final plans for the Recycling Center Storage Building will be presented to the City Commission for their review and approval.
The City Attorney has reviewed and approved the contract as to form and content.
Strategic Plan
Financially Responsible City Providing Quality Municipal Services
Financial Impact
Funding in the amount of $960,000 is included in the fiscal year Solid Waste District budget account number 120-3032-534-34.50. There may need to be a budget amendment in the future if tipping fees go above what is budgeted
Procurement
Single Source Procurements are permitted per Section 2-407 of the City Procurement Code
Attachments:
1. Agreement No. 2019-27
2. Sole Source Exemption Form
3. Sarasota County Contract
4. Pan American Property Aerial
5. PowerPoint Presentation
6. Florida Division of Corporations
Prepared by: Frank Lama, Solid Waste Division Manager
Department Director: Juliana B. Bellia