Item 10 Staff Report Approval of Distribution of Request for Proposals for Curbside RecyclingCouncil Agenda
Date: 3/20/89n /
Item No.
TOWN OF LOS GATOS
Council Agenda Report
DATE: MARCH 7, 1989
TO: MAYOR AND TOWN COUNCIL
FROM: DEBORAH SWARTFAGER, TOWN MANAGE
SUBJECT: APPROVAL OF DISTRIBUTION OF REQUEST FOR PROPOSALS FOR
CURBSIDE RECYCLING
RECOMMENDATION:
That Council approve distribution of the attached request for
proposals for a curbside recycling program to be implemented in the
four city West Valley region.
PREPARED BY: REGINA A. FALKNER,
Community Services
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Reviewed by: Attorney
TOWN COUNCIL ACTION DIRECTED TO: ,
ACTION OF COUNCIL: A20 %-u`eQ( ;.Luvt-d1L/L, CaO4(4421
COMMENTS:
Report to Mayor and Town Council
Approval of Distribution of Request for
Proposals for Curbside Recycling
March 7, 1989
Page Two
BACKGROUND:
The attached report from the Rate Review Committee (consisting of
Staff representatives from the Town, Saratoga, Campbell and Monte
Sereno) provides the following:
Summary of the request for proposal
Background to the request including discussions of
o The Proposal Submitted by Green Valley Disposal
Company
o The County Solid Waste Management Plan
o Guadalupe Expansion
o State Legislation
o Jurisdictions Served by Green Valley - Status of
Curbside Recycling.
CONCLUSION:
The attached request for proposal describes a curbside recycling
service tailored to meet the needs of the West Valley communities.
It encompasses all the characteristics requested by the City
Managers of the involved jurisdictions. If approved by each of the
City Councils in March, it would be released on April 3, and the
bid opening would occur on May 15. In June, the Rate Review
Committee would prepare recommendations for a contract award which
would be presented to each of the City Councils. It is anticipated
that the program would then be implemented before the end of the
1989 calendar year.
FISCAL IMPACT:
Costs for similar programs in the State range from $1.00 to $1.50
per household. Costs for the program will be borne by the rate
payers.
Attachments:
Report on Curbside Recycling Request for Proposals
cc:
Regular Distribution
Rate Review Committee (Council Report Only)
Green Valley Disposal
Nancy Cardinet
To:
From:
lc
14081 867 3438
February 27, 1989 COUNCIL NIEtitBERS:
Karen Anoerson
Harry Peacock, City Manager, City of Sarato a ''ar`ha Crevenger
Kevin Duggan, City Manager, City of Campbell Donaroroererson
Deborah Swartfager, Town Manager, Town of Losr`8'dtefWzman
Rosemary Pierce, Chief Administrative Officer, City
of Monte Sereno
13777 FRUIT\'.\LE AVENUE • S. \R. \TOGA. C.\LIFOR.NI. \ 93070
Four -City Rate Review Committee
Subject: Curbside Recycling Request for Proposals (RFP)
The members of the Rate Review Committee are pleased to present
our final draft of the RFP for the selection of a contractor to
operate a curbside recycling service.
RECOMMENDATION
The Committee recommends that the attached document be forwarded
to your City Council for review and approval at the second
meeting of the Council during the month of March. This will
allow the RFP to be released on schedule (April 3, 1989) if it is
approved at the policy level. The bid opening is scheduled for
May 15, 1989.
SUMMARY QE RFP
The following outline summarizes the contents of the RFP:
1. Program will serve four jurisdictions.
2. Program Parameters:
A. Recyclables collected once per week (same day as refuse
collection).
B. All single family homes and residential complexes of
four or less units having "can" service will be served.
C. Materials to be collected: newspaper, glass, P.E.T.
plastic (soft drink bottles), aluminum and tin cans.
(Contractors may pick up other items or cities may add
items after program is initiated).
D. Contractors are asked to describe their ability to
expand initial program to include collection of waste
oil and provision of service to multi -family households
and businesses.
Curbside Recycling Request for Proposals (RFP)
E. Collection storage and set -out containers to be
provided.
F. Public Awareness Campaign is to begin well before
actual collection. Responsibility of Contractor with
assistance of cities.
G. Contract term would be five years.
3. Contractors to propose total price - first year (includes
all operations costs in excess of those costs covered by
sale of recyclable materials).
I
4. An not toation exceedp7%ce perbased on the year for years two would
twothrough
allowed,
five.
5. Billing alternatives - the RFP asks contractors to provide
price for
billenfirst
te year
a of the program, assuming three
different
A. Cities billed for total net cost.
B. Each household billed by Contractor directly quarterly.
C. Each household billed by Contractor directly annually.
er
00
so
6 Contractors
process wouldde notrice needpto be
0rrepeated iflas
the
tCity
proposal
decides not to participate.
y actual
7 Possible expenditures"contract
substantiallytriggered
exceedbrevenues or
projected
exp
8. Contractors to provide:
A. Detailed description of services.
B. Lists of markets for recyclables.
C. Details of their assumptions used to develop
projections.
D. Implementation schedule.
E. Five-year
andprojection
required tooperating
meet netcosts,
program
cost,
revenues
F. Variety of background/financial/reference information,
proposal bond.
9 Reporting Requirements - responsibility of Contractor.
Page 2
Curbside Recycling Request for Proposals (RFP) Page 3
BACKGROUND
In September, 1987, the Saratoga City Council held a study
session to review issues related to curbside recycling and
discuss the possibility of providing such a program. Information
presented at the meeting and detailed in a Saratoga staff report
can be summarized as follows:
o Of all City -sponsored recycling options, curbside recycling
offers the greatest yield in terms of materials recovered
from the waste stream and is typically more expensive to
operate than other types of recycling.
o Curbside recycling is labor intensive and, therefore,
operating expenses generally exceed operating revenues (sale
of materials).
o Economic feasibility of curbside recycling
attractive when avoided disposal costs are
especially as disposal costs per ton increase.
o Certain benefits associated with recycling are
measure: avoided landfill costs, resource
energy savings.
o Curbside recycling programs vary from city to city in terms
of materials collected. Most collect at least newspaper,
glass and aluminum cans.
o Two very important variables affect the cost effectiveness
of a curbside recycling program: participation rates and
market prices for recyclables.
o Participation rates are the key to a curbside
Collection costs are fixed. Therefore, the more
collected, the more revenue to offset costs.
o Market prices for materials can vary significantly and
extremely difficult to predict.
o Using a recently implemented curbside recycling program as
an example, the City of San Jose estimates a 40%
participation rate and a per household per month cost of
about $1.00 Approximately 9% to 12% of the the residential
waste stream is estimated to be diverted from the landfill
at this point.
becomes more
factored in,
difficult to
conservation,
program.
material
are
Green Valley Disposal, Company's proposal
The Green Valley Disposal Company studied curbside recycling,
reviewed programs in other cities, and sampled potential
recyclables contained in the waste stream. As a result of its
study, Green Valley submitted a curbside recycling proposal to
the four cities. The Company proposed to serve residential
customers (single family, duplexes, triplexes, condominiums and
Curbside Recycling Request for Proposals (RFP) Page 4
townhouse dwellings with can service). Newspaper, glass, aluminum
and tin cans, plastic bottles, cardboard, used motor oil and
automobile batteries would be collected. Pick-up would be weekly
on normal refuse collection days, and burlap sacks would be
provided as containers. Green Valley estimated four collection
vehicles would be needed for the operation, and staffing would
consist of four drivers, a processing facility operator and
supervisor. Total annual expense was estimated at $435,000 and
total revenues at $210,000, leaving a net cost of $225,000 or
$.65 per household per month.
The consulting firm of Arthur Young was retained to conduct a
performance audit of Green Valley. At no additional cost, the
firm reviewed the Green Valley curbside recycling proposal as
well. Arthur Young saw the integration of recycling with current
garbage collection and billing systems as an advantage. A
potential disadvantage cited was Green Valley Disposal's lack of
experience in operating a recycling program. The number of
materials proposed to be collected was viewed as excessive, and
the need for an analysis of integrating requirements of the
Recycling and Litter Recovery Act with the proposed program was
noted. Arthur Young also recommended there be some consideration
of other containers. The commodity prices used and waste
composition figures were found to be reasonable and, in general,
Green Valley's costs were found to be reasonable for a base line
scenario. However, the firm noted the need for a municipal in -
kind budget for things such as public awareness, education,
promotion, etc.
To summarize, Arthur Young recommended that the cities and town
clearly define their recycling objectives and program and develop
an RFP for a curbside recycling program. In this way, the cities
would be driving the process rather than reacting to a proposal.
County Solid Waste Management man
One of the key issues identified by the Solid Waste Committee of
IGC is the need to reduce the waste stream and recycle.
According to the Solid Waste Plan 1987 Annual Report, capacity
analysis conducted in 1987 indicates that Santa Clara County
communities may face disposal capacity shortages in the future.
To have twenty years of disposal capacity for each city,
expansion of some existing landfills, recycling and protection of
remaining capacity will be necessary.
A recent amendment to the County Solid Waste Management Plan
requires annual reporting by each city as to its plans for
reducing waste flows and pursuing recycling.
Guadalupe Landfill ,Expansion
Guadalupe Landfill has plans for expansion and estimates the
current landfill's life at about nine more years. The additional
property in which the landfill would expand is in San Jose's
sphere of influence. As a condition of approval of any
Curbside Recycling Request for Proposals (RFP)
Page 5
expansion, San Jose indicates it will annex the landfill. At
that point, two things could happen. First, the San Jose
Business Tax may be added to the cost of disposing refuse.
Secondly, San Jose currently requires that at least 25% of refuse
must be diverted from the waste stream before it gets to the
landfill.
State Legislation
In 1987, Assembly Bill 1462 was adopted. The legislation
requires counties to include a 20% recycling goal in solid waste
management plans. The recent amendment to the Santa Clara County
plan discussed above resulted from this legislation.
Two bills were introduced during 1988 that would have required
cities and counties to prepare and implement recycling plans for
their jurisdiction (Assembly Bill 3298 and Senate Bill 2113).
Both bills would have required that cities designate a recycling
coordinator, prepare waste characterization studies, designate
materials to be recycled, methods of recycling and levels of
recycling to be achieved, as well as an implementation schedule
(AB 3298 would require 25% of refuse to be recycled within five
years, while under SB 2113 a 20% recycling goals would have to be
addressed).
Assembly Bill 3298 was passed before the close of the legislative
session but was vetoed by the Governor. SB 2113 was not passed
out of the Senate.
It is safe to assume that similar measures will be introduced at
the State level in the future as California continues to grapple
with diminishing landfill space and an expanding population.
Assembly Bill 80, introduced at the beginning of the 1989-90
session, is very similar to AB 3298 of last session.
Jurisdictions Served ty Green Valley . Status at Curbside
Recycling
The Monte Sereno City Council indicated its support of curbside
recycling and the Green Valley proposal on March 1, 1988. The
Saratoga City Council and the Los Gatos Town Council have
expressed interest in pursuing a curbside recycling program with
the other cities served by Green Valley. The Campbell City
Council has not taken a position on the issue but reviewed
curbside recycling and a proposed joint -cities approach at a
February, 1989, study session.
Additionally, during the summer of 1988 information was obtained
regarding other potential recycling operators. Two operators
responded to an informal request for information. BFI provided
information about the firm's experience in other communities and
indicated monthly costs range from $.90 to $1.50 per household.
Waste Management also provided some general information about
recycling programs and indicated an interest in responding to a
formal RFP if one is developed.
Curbside Recycling Request for Proposals (RFP) Page 6
Subsequently, the Green Valley Rate Review Committee was asked by
the four City Managers to prepare a draft RFP for curbside
recycling operators. This action lead to the development of the
attached draft document.
CONCLUSION
The attached RFP describes a curbside recycling service tailored
to meet the needs of the West Valley communities. It encompasses
all the characteristics requested by the City Managers of the
involved jurisdictions. If approved by each of the City Councils
in March, it would be released on April 3, and the bid opening
would occur on May 15. In June, the Rate Review Committee would
prepare recommendations for a contract award which would be
presented to each of the City Councils. It is anticipated that
the program would then be implemented before the end of the 1989
calendar year.
SUBMITTED BY:
Todd Argow, City of Saratoga
Barbara Lee, City of Campbell
Regina Falkner, Town of Los Gatos
Rosemary Pierce, City of Monte Sereno
TWA:jm
Attachment
REQUEST FOR PROPOSAL
CURBSIDE RECYCLING PROGRAM
PAGE NO.
INTRODUCTION
I. INTENT OF PROPOSAL 1
II. BASIS OF PROPOSAL 1
III. RECEIPT AND OPENING OF PROPOSALS 1
IV. SELECTION PROCESS AND METHOD OF AWARD 2
V. PREPARATION AND EVALUATION 2
VI. NAME, ADDRESS AND LEGAL STATUS OF CONTRACTOR 3
VII. TOTAL COST 4
VIII.BILLINGS 5
IX. PRE -PROPOSAL CONFERENCE AND REQUEST FOR
ADDENDUM 5
SPECIAL PROVISIONS
I. PURPOSE AND INTRODUCTION 6
II. QUALIFICATIONS OF CONTRACTOR 7
III. DISQUALIFICATION OF CONTRACTORS 9
IV. PROPOSAL BOND 9
V. INSURANCE 10
VI. SCOPE OF RESPONSIBILITIES 11
VII. REPORTING REQUIREMENTS 16
VIII.PROJECTED COSTS AND REVENUES 18
IX. IMPLEMENTATION SCHEDULE 19
X. PERFORMANCE BOND 19
XI. LIQUIDATED DAMAGES FOR FAILURE TO ENTER INTO
THE CONTRACT 20
XII. AUDIT 21
XIII.PROPOSAL FORMS AND INFORMATION 21
ATTACHMENTS
Proposal Form A Required Information 22
B Recycling Program Implementation 27
C Projected Operating Schedule
and Main Budget 28
D Projected Revenues for Total
Recycling Project 34
E Proposed Prices for Recycling
Program Operation 35
F Proposal Bond 38
A:\Rfps\GrnVals.rfp
FINAL DRAFT
(TWA: 2/13/89)
Authorized by:
Campbell City Council
Los Gatos Town Council
Monte Sereno City Council
Saratoga City Council
(3/21/89)
(3/20/89)
(3/21/89)
(3/15/89)
Distributed: April 3, 1989
REQUEST EQR PROPOSAL
CURBSIDE RECYCLING SERVICE
Cities of Saratoga, Monte
I. INTENT QE PROPOSAL
The Cities of
Sereno, Campbell, and Town of Los Gatos
Saratoga, Monte Sereno, Campbell,
and
Town of Los Gatos, hereinafter referred to as CITIES, are
soliciting written proposals from qualified private
contractors to perform curbside collection of recyclable
materials.
II. BASIS QE PROPOSAL EELECTIOK
Proposals are solicited on the basis of the
Specifications attached hereto, titled "Special Provisions,
Specifications for Curbside Recycling Collection."
Proposals will be evaluated on the basis of ability to
perform the work, qualifications of the Contractor, as well
as for least cost. The costs, as written out in words on
the bid form, shall govern. Use of proposal forms supplied
by the CITIES is required.
III. RECEIPT AHD OPENING QE PROPOSALS
Twenty-five (25) complete copies of each proposal must
be submitted to the Community Services Director for the City
of Saratoga on or before 12:00 noon, (May 15, 1989). The
envelope containing the proposals shall be sealed and
plainly marked "PROPOSAL FOR CURBSIDE RECYCLING SERVICE,
CITIES OF SARATOGA, MONTE SERENO, CAMPBELL, AND TOWN OF LOS
GATOS, CALIFORNIA" and shall bear the name and address of
the Contractor. If forsorded by mail, the sealed envelope
containing the proposal shall be enclosed in another
envelope addressed as specified. Proposals will be publicly
opened and read at 12:00 noon in the Senior Lounge portion
of the Saratoga Community Center, 19655 Allendale Avenue,
Saratoga, California, on May 15, 1989.
IV. SELECTION PROCESS AND METHOD AWARD
Immediately following the deadline for receipt of
proposals as stated above, all proposals submitted will be
analyzed and reviewed by a special review panel. The most
qualified candidates will be invited for detailed oral
interviews before the special review panel. This review
panel will make their recommendation for award of the
contract to City Councils of the involved CITIES.
The CITIES reserve the right not to accept any
proposal, or to reject any or all proposals, and to waive
defects or irregularities in any proposal, at their
discretion or to award a contract for fewer than four
jurisdictions. The CITIES are not following a formal bid
process and reserve the right to negotiate a contract based
on all factors involved in the written proposal without
further discussion or interviews. However, it is the intent
of the CITIES to award the contract to the lowest priced and
qualified proposer.
V. PREPARATION AND EVALUATION QF PROPOSAL
Pr a aratioa. All proposals must be prepared in ink or
typewritten and signed by the Contractor. If a price figure
already entered by the Contractor on the proposal form is to
be altered, it shall be crossed out in ink and the new price
figure shall be entered Above or below it, and initialed cy
the Contractor in ink.
Eval-uatioa. Proposals received will be evaluated on the
basis of 1) experience with related programs; 2) ability to
perform to the satisfaction of the CITIES; 3) completeness
of proposal; 4) technical feasibility of proposed collection
and processing; 5) commitment to program promotion; 6) least
net cost; and 7) ability to expand initial program to serve
multi -family dwellings, commercial accounts, and collect
waste oil if so requested by CITIES.
Any proposal may be withdrawn prior to the scheduled
time for the opening of proposals. Any proposal received
after the time and date scheduled shall not be considered.
VI. NAME. ADDRESS AND IMAy ZTATUS Qg CONTRACTOR
The proposal shall be properly signed in ink, with the
address of the Contractor given. The legal status of the
Contractor, whether individual, partnership or corporation,
shall also be stated.
A corporation shall execute the proposal by its duly
authorized officers in accordance with its corporate bylaws
and shall list the state in which it is incorporated. A
partnership shall give full names and addresses of all
partners.
Partnerships and individuals shall be required to
identify the names of all persons having an equity interest
in the proposal. The place of residence of each partner or
individual, or the office address in case of a firm or
company, including state, zip code and telephone number
shall be given after each signature.
If the Contractor is a joint venture consisting of
a combination of any of the above entities, each joint
venture shall execute the proposal. Anyone signing a
proposal as an agent of another or others shall submit legal
evidence of their authority to do so with the proposal.
VII. TOTAL COST
The proposal form attached requires the Contractor to
provide prices for the alternatives listed below, assuming
CITIES would be billed (Form E-1), households would be
billled directly annually (Form E-2), and households would
be billed directly quarterly (Form E-3).
A. Total FiAe, Price. Price includes full first year
costs for labor, overhead and other related operations
costs in excess of those costs which are projected to
be covered by revenues from the sale of recyclables
collected in the program.
B. Escalation Clause. An annual escalation of price will
be allowed annually based on the Consumer Price Index
for Urban Wage Earners and Clerical Workers (all items)
for the San Francisco -Oakland -San Jose Metropolitan
area (not to exceed 7%/year or 30% over the term of the
contract), through the full five-year term of the
contract, as measured between December to December of
each year to to take effect July of each year.
C. Participation gi Less Than Four Cities. Should less
than four jurisdictions contract to participate in the
curbside recycling program, list the cost per 1000
households, assuming a minimum of 16,000 households (to
a maximum of approximately 26,700 households).
VIII. BILLINGS
The CITIES reserve the right to choose one of the
following billing alternatives:
A. Billings submitted monthly to the CITIES and based on
one -twelfth of the annual cost of a fixed price.
B. Billings submitted by the Contractor directly to each
household annually, based on the annual fixed price
divided by total households.
C Billings submitted by the Contractor directly to each
household quarterly, based on one-fourth of the annual
fixed price divided by total households.
IX. RRE-PROPOSAL CONFERENCE AND REQUEST ZQ$ ADDENDUM
The CITIES will hold a pre -proposal conference on
Tuesday, April 18, 1989 at 1:00 p.m. in the Campbell City
Council Chambers, 70 North First Street, Campbell,
California, to review this Request for Proposal and answer
any questions raised. Firms unable to attend this meeting
may request a copy of the question and answer summary from
this meeting by writing to the Community Services Director
for the City of Saratoga.
SPECIAL PROVISIONS
Specifications for Curbside Recycling Collection
Cities of Saratoga, Monte Sereno, Campbell, and Town of Los Gatos
(CITIES)
I. pURPOSE AND INTRODUCTION
The recycling program will involve implementation of a
weekly curbside collection service within the jurisdictions
of each of the involved municipalities (see map in Addendum
A) for recyclable materials to be processed and marketed
from the processing center.
By April 1, 1989, all of the involved City Councils had
approved the implementation of a cost effective weekly
curbside recycling program, and authorized the release of
this RFP.
Actual curbside collection of recyclables is scheduled
to begin on or about December, 1989. This long lead time is
designed to allow the contractor sufficient time to order
and modify collection vehicles and processing equipment;
obtain any permits or licenses that may be required; and to
coordinate collection with public awareness activities which
will begin well before the start of actual collection (e.g.
3 months).
The location of the areas to be served is shown on the
map in Addendum A. The area is comprised of a total of
approximately 26,700 homes; specifically, 8,600 homes in
Saratoga, 1,300 homes in Monte Sereno, 8,300 homes in Los
Gatos and 8,500 homes in Campbell.
The CITIES are now seeking the services of a qualified
firm or firms to collect, process and broker materials
recovered from the curbside program. The Contractor will
provide a program for public awareness activities to promote
public participation. The CITIES will assist in this
program and cooperate .fully with the Contractor in its
efforts.
The term of the contract shall be for five (5) years,
provided the City Councils approve funding for each annual
term of the contract.
The CITIES intend to include a provision in the
contract which would allow for renegotiation after three
years should actual revenues exceed projected revenues by
15% or actual expenditures exceed projected expenditures by
15%.
Additional details of the program are described in
Section VI of this report "Scope of Responsibilities."
II. 9UALIFICATIONS Q$ CONTRACTOR
The CITIES shall require submission with the Proposal
of certified supporting data regarding the qualifications of
the Contractor in order to determine whether s/he is a
qualified, responsible Contractor. The Contractor will be
required to furnish the following information.
A.
Satisfactory evidence that the Contractor
possesses not less than three (3) years actual
operating experience as a going concern in secondary
materials management or solid waste management. In
addition, identify the degree of expertise individuals
who would be assigned the responsibility of managing
this project have in the areas of recycling and solid
waste management, and provide evidence that the
E.
contractor has the financial resources to fulfill their
obligations if awarded this contract.
B. Satisfactory evidence that both the Contractor and
the Principals have, experience as a going concern in
municipal services or private business operations of
comparable size to that contemplated by this proposal.
Details shall include length of other contracts, name and
size of municipality, nature of service provided, and the
name of the contact person at the municipality in question.
C. Evidence that the Contractor and its principals
are in good standing in the State of California, and in
the case of a corporation organized under the laws of
any other State, evidence that the Contractor is
licensed to do business in the State of California or a
sworn statement that it will take all necessary action
to become so licensed if its Proposal is accepted.
D. A detailed inventory of the Contractor's equipment
available for use on the Contract. This inventory
should include a detailed listing of the Contractor's
equipment and all accessories by type, by model, year
of manufacture, and anticipated remaining useful life,
as of the date of the inventory. All new equipment to
be acquired to accomplish this contract must be
available within six months of signing of the contract.
Delivery guarantees by manufacturers shall be attached
to the bid document.
A copy of the latest available financial
statements of the Contractor or its parent corporation
(if individual subsidiary or division, financial
statements are not prepared and generally available);
in addition, the latest audited financial statement.
All financial statements and audit reports will be kept
strictly confidential by the CITIES.
F. The names and resumes of the principal officers,
partners, and/or officials. The name(s) and resumes(s)
of the individual(s) who will be considered in
responsible charge of the CITIES' contract.
G. Such additional information as will satisfy the
CITIES that the Contractor is adequately prepared to
fulfill the Contract.
III. DISQUALIFICATION QF CONTRACTORa
Although not intended to be an exhaustive list of
causes for disqualification, any one or more of the
following causes, among others, may be considered
sufficient for disqualification of a Contractor and the
rejection of their Proposal:
A. Evidence of collusion among Contractors.
B. Lack of competency as revealed by either financial
statements, experience or equipment statements as
submitted or other sources or documents.
C. Lack of responsibility, as shown by past work,
judged from the standpoint of workmanship as submitted.
D. Default on any previous performance contracts
within the past 10 years.
IV. PROPOSAL BOND
Each Proposal must be accompanied by a proposal bond
executed by a surety company licensed to do business in the
State of California, or a certified check of the Contractor
payable to the City of Saratoga in an amount not less than
ten thousand dollars ($10,000. The Contractor must complete
the proposal bond sheet attached. This will serve as a
guarantee on the part of the Contractor that s/he will, if
called upon to do so accept and enter into a contract to
perform the work covered by the Proposal and at the rates
stated therein and to furnish a corporate surety for its
faithful and entire fulfillment. Checks and bonds will be
returned promptly after the CITIES and the selected
Contractor have executed the Contract, or, if no
Contractor's Proposal has been selected within ninety (90)
days after the date of the opening of Proposal, upon demand
of the Contractor at any time thereafter; so long as s/he
has not been notified of the acceptance of his/her Proposal.
Each Proposal must be accompanied by a certificate of
insurance evidencing the coverages set forth in the
following section.
V. INSURANC$
The Contractor shall keep continually in force during
the term of this agreement:
1. Worker', Compensation Insurance: All employees of
Contractor must be included under such policy to meet
all requirements of Labor Code of the State of
California.
2. Bid Form Comprehensive General Liabilitv: Bodily
injury and property $1,000,000 combined single limit,
plus an additional umbrella policy of $2,000,000.
3. Business Automobile Liability Insurance: Bodily injury
and property damage $1,000,000 combined, single limit;
10
physical damage insurance comprehensive and collision;
uninsured motorist; code 1 (any auto) coverage.
4. Subrogation Waiver: Contractor agrees that in the
event of loss due to any of the perils for which it has
agreed to provide insurance, that Contractor shall look
solely to its insurance for recovery.
All insurance obtained by the Contractor shall name
each of the CITIES, their officers, agents and employees as
an insured. Ninety (90) days notice shall be given prior to
the cancellation, modification or reduction of the limits of
the policy of the insured.
VI. SCOPE Q. RESPONSIBILITIES
The contractor will provide the following services:
1. Collect and remove all separated recyclables once
each week (regardless of weather condition) from all
single-family homes and all residential complexes of
four (4) or less units in each of the CITIES.
Collection will take place on the same day as refuse
collection for each household. Recyclable materials to
be collected will include, but not be limited to,
newspaper, glass, P.E.T. plastic, and metal (aluminum
and tin) cans as well as others that may be agreed to
at a later date, proposed by the Contractor or the
CITIES.
2. Transport the recovered recyclable materials to a
central processing site and retain responsibility for
the brokering of these materials to their respective
markets.
3. Furnish, at its own cost, all of the labor and
11
associated costs required to perform these operations
of the curbside collection and drop-off center, if
applicable.
4. Provide at items own cost, collection storage and
set -out containers of a bin -like nature (as opposed to
bags) of the Contractor's choice to all households.
5. The term of the contract will begin on the date of
final approval by the last of the involved City
Councils to take action. Within 30 days of the
beginning of the contract, the Contractor shall have
ordered all necessary equipment and vehicles required
for the project. The actual collection of materials
shall begin within six (6) months following the signing
of the contract, unless otherwise approved in writing
by the Saratoga Community Services Director.
The Contractor will also be responsible for fuel,
oil and maintenance of all equipment. The Contractor
will maintain as an operating overhead cost, a
depreciation fund for all vehicles and processing
equipment, and be responsible for equipment replacement
when necessary.
The CITIES will be responsible for monitoring the
Contractor to ensure specified services are being
performed.
The projected monthly tonnage from the curbside
program (once fully operational), and assuming a 50
percent participation level (from approximately 26,000
households) is:
12
Material Tons cer Month
Newspaper 255 TPM
Glass 68 TPM
Aluminum 5 TPM
Tin 3 TPM
P.E.T 1 TPli
Total: 336 TPM
The CITIES make no guarantees that these tonnages will
be the actual amounts. Revenues from the sale of recyclables
will go to the Contractor to cover labor costs and
operations expenses of the program.
Public Awarenes, Camvaical. Well before actual
collection, a public awareness campaign will be
conducted by the Contractor with the assistance of the
CITIES and interested parties to promote the recycling
programs. Thereafter promotions will be on an on -going
basis, the cost of which may approximate ten (10)
percent (for example) of contract costs per year,
excluding start-up costs from budget. Contractors may
deviate from this example by allocating more or less to
the public awareness budget (if less is allocated, the
proposal should demonstrate how the same levels of
performance will be achieved).
Required Inf ormatiorl. At a minimum, each firm
should include the following information in its
proposal. The information should be provided on the
forms attached to the "Special Provisions" section of
the RFP.
1. A list of key personnel who will be involved in
13
the operation and management of this project. include
functions and resumes of each person listed and an
organizational chart. (Form A)
2. A description.of similar workexperience by your
firm and/or the individuals who will be operating this
program, and the names and phone numbers of contact
persons (i.e. references). (Form A)
3. Proposed subcontractors, if appropriate. (Form A)
4. A detailed description of services to be provided
which demonstrates understanding of the scope of
services necessary. This description should include
the scope of recyclable materials to be collected (at a
minimum to include newspaper, glass and mixed cans and
P.E.T. plastic), labor and equipment requirements
necessary to completely operate the curbside recycling
program, processing equipment necessary and type and
number of collection containers that will be furnished
to households. (Form A)
5. Additional services which may be required, but
which are not included in the RFP. (Form A)
6. A list of markets or market commitments which the
contractor presently has agreements for selling
materials collected in the four -City program. (Form A)
7. A description of assumptions used to develop cost
and revenue projections required in items 10 and 11
below (i.e. participation rates, number of households
per month, tonnages, pounds set out per household and
market prices for each of the commodities collected,
and an average for all commodities collected) (Form A).
14
8. Commentary concerning the feasibility of the
contractor eventually expanding the recycling program
to provide recycling services to multi -family households
and businesses (commercial accounts). (Form A)
9. A description of the financial and operational
impacts which would occur if used motor oil was added
as a collectible commodity to the recycling program,
including an estimate of the apparoximate monthly cost
increase per household served. (Form A)
10. A schedule for implementing curbside recycling
program. (Form B)
11. The Contractor shall also include a sample five-
year contractual agreement with their proposal for the
Cities' review.
12. A projection of operation and maintenance costs for
the first year by month, and succeeding four years by
year to implement curbside recycling. There are three
alternative billing procedures that are to be addressed
in this proposal. Under the first alternative, the
Contractor would bill the CITIES monthly for the total
cost (net) for the recycling program. Under the second
alternative, the Contractor would bill households
directly for program costs annually. Under the third
billing alternative, the Contractor would bill
households directly, quarterly. The Contractor is
required to provide projected operating and maintenance
costs assuming billing alternative one on Form C
(CITIES BILLED). Billing alternative two (households
billed directly by Contractor annually) should be
15
assumed when completing Form C (HOUSEHOLDS BILLED
ANNUALLY) and alternative three (households billed
directly by Contractor, quarterly) should be assumed
when completing From C (HOUSEHOLDS BILLED QUARTERLY).
13. A five-year projection of revenues to be received
from the sale of recyclable materials from the curbside
program and including payments required from the
CITIES or from all households. (Form D)
14. Proposed net annual cost for Contractor to operate
the curbside recycling program. Proposal Form E-1
shall be used to provide the proposed net cost to
CITIES for Contractor to operate the curbside recycling
program, assuming CITIES are billed monthly for the net
cost. Proposal Forms E-2 and E-3 shall be used to
provide net cost for Contractor to operate the
recycling program, assuming each household is billed
directly by Contractor for the costs, annually (Form E-
2) or quarterly (Form E-3).
VII. REPORTING RETIREMENTS
The recycling Contractor will be required to keep
records and submit reports to comply with the CITIES'
reporting requirements. These reports will serve as a means
to apprise City staff of the status of recycling activities
and expenditures. The Contractor will also be required to
provide weight receipts for all materials brokered by the
Contractor for materials collected in the CITIES' program.
Reporting requirements include:
1. Monthly Proiect Reports
For the first year, the recycling Contractor shall
16
submit monthly project reports broken down by
jurisdiction,for the length of the Contract period
commencing upon final approval of the Contract. These
reports shall be due within ten working days from the
end of the period being reported.
At a minimum, the reports shall include:
a. Summaries of tonnages of all materials
recovered, by material.
b. Summaries of tonnages of all materials sold,
by material.
c. Market prices (reflecting the prices actually
paid for materials sold).
d. Resident participation rates in terms of
weekly and monthly set -out counts with a
description of the methods used to determine these
rates.
e. Description of progress in meeting the
implementation schedule, including any problems
encountered and how they were resolved.
2. Quarterly Proiect Status Reports
The recycling Contractor shall provide quarterly
project status reports broken down by jurisdiction.
These reports will be due within fifteen days of the
close of the quarter being reported.
At a minimum, the reports shall include:
a. Summary of all program costs and revenues,
tonnages recovered by material, participation
rates (overall and by jurisdiction) and details of
expenditure by line item of CITIES' funds;
17
b. Progress in meeting the implementation
schedule;
c. Detailed data to allow analysis of collection
and processing 1efficiencies;
d. Discussion of problems and noteworthy
experience in program operation.
3. Annual Reports
The Contractor shall provide year-end annual
reports broken down by jurisdiction for each year the
project is in operation. These reports will be due
within 30 days of the end of the reporting year.
At a minimum, the report shall include:
a. A collated summary of the detailed cost and
revenue information contained in the quarterly
reports, and a summary of the participation rates
and recovered materials tonnages.
b. A discussion of public awareness activities
and their impact on participation and recovered
volumes.
c. A discussion of highlights and problems and
measures taken to resolve problems and increase
efficiency and household participation.
d. Revised implementation schedule and budget
for the succeeding years of operation and
recommendations regarting any additional materials
to add to the curbside recycling program together
with any other operational changes the Contractor
may wish to propose.
VIII. PROJECTED COSTS AND, REVENUES
18
The Contractor shall provide a projected operation and
maintenance costs budget for the five-year recycling
project. In addition, the Contractor shall provide
projected revenues from the sale of recyclables and the
lkpayments required under each of the three billing
alternatives.
The costs and revenue budgets should detail the costs
on a monthly basis for the first year of operation and on a
annual basis for the remaining four years. The Proposal
Forms "C" and "D" should be used to provide this
information. Additionally, as the CITIES may require the
Contractor to either bill CITIES monthly, bill households
directly annually or bill households directly quarterly,
there are three separate operating and maintenance budgets
to be completed. Form C (CITIES BILLED MONTHLY), Form C
(HOUSEHOLDS BILLED ANNUALLY) and Form C (HOUSEHOLDS BILLED
QUARTERLY). Form D provides space to list alternative
payments required depending on the billing alternative
selected.
IX. .IMPLEMENTATION SCHEDULE
Using Form "B", include an implementation schedule for
the curbside program and, if applicable, identify all
necessary start-up activities, significant project
milestones and completion dates.
The projected start-up date for the CITIES curbside
program is (date).
X. PERFORMANCE BOND
The Proposal shall be accompanied by a letter from
a corporate surety satisfactory to the CITIES stating that a
19
Performance Bond will be furnished by it to the person
submitting the Proposal in the event s/he is the successful
Contractor. Such letter is to be signed by an authorized
representative of the surety together with a certified and
effectively dated copy of his/her power of attorney attached
thereto.
The successful Contractor will be required to
furnish a performance bond as surety for the faithful
performance of their Contract at least ten (10) days prior
to the execution of the Contract. Said performance bond
shall equal twenty-five (25) percent of the proposal amount.
Premium for the bonds described above shall be paid by
the Contractor. A certification from the surety showing
that the bond premiums are paid in full shall accompany the
bond.
The surety on the bond shall be a duly authorized
corporate surety authorized to do business in the State of
California.
XI. LIQUIDATED DAMAGES EQ$ FAILURE IQ ENTER INTO THE CONTRACT
The Contract shall be deemed as having been awarded
when formal notice of award shall have been mailed by the
CITIES' representative to the Contractor by certified mail,
return receipt requested.
The Contractor to whom the Contract shall have
been awarded will be required to execute three (3) copies of
the Contract and to furnish insurance certificates, all as
required. In case of his/her refusal or failure to do so
within twenty (20) days after his/her receipt of formal
notice of award, Contractor will be considered to have
20
abandoned all his/her rights and interests in the award, and
Contractor's proposal bond may be declared forfeited to the
CITIES as liquidated damages and the award may then be made
to the next best qualified Contractor, or the work
readvertised for Proposals as the CITIES may elect.
XII. AUDIT
The successful Contractor will be required to furnish
an annual audited financial report to the CITIES not later
than ninety (90) days following the close of the
Contractor's fiscal year.
XIII. PROPOSAL FORMS AND INFORMATION
Complete the information asked for in Forms "A" -
"E"
Additional pages may be added. Proposals should be brief,
well -formulated and to the point
Questions should be directed to Todd W. Argow,
Community Services Director for the City of Saratoga, (408)
867-3438.
21
REOUIRED INFORMATION
1. Contractor Team
PROPOSAL FORM "A"
List key members of the project team. Include resumes
and a description of what the functions of each individual
would be (additional information may be attached to this
form).
22
2. Related Experience
List or describe similar work experience performed by
the contractor and provide references (include telephone
numbers).
3. Subcontractors
List all subcontractors with which you intend to
contract. Include the functions that will be assigned to
any subcontractors. The CITIES reserve the right to approve
all subcontractors working under the contractor.
23
4. Program Design
Provide a description of the recycling services you
intend to provide. This description should include:
personnel you will require to operate the curbside
recycling service (include salary and fringe
benefit information on all positions listed)
scope of materials that will be collected from
curbside
hours of operation for the curbside collection
service
- - equipment you will provide for
processing, and shipping of materials
collection,
- - collection and set out containers you will furnish
to each household
24
5. Proposed Recycling Proaram Organizational Chart
(see attached sample format Addendum "B")
6. Marketing Curbside
List markets you currently have agreements with to
demonstrate your ability to broker recyclable materials.
25
7. List assumptions used to develop expenditure and revenue
projections for this proposal.
8. What is the feasibility of expanding your program to serve
multi -family households and commercial accounts?
9. How would the addition of waste oil (motor oil) collection
affect overall program costs?
26
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PROPOSED PRICES FOR
RECYCLING PROGRAM OPERATION
(ASSUMING CITIES ARE BILLED MONTHLY)
PROPOSAL FORM E-1
The undersigned hereby agrees to perform curbside collection and processing
center operation, and handling and marketing of recyclable materials for the
Cities in accordance with the Request for Proposal dated
OPTION TOTAL FIVE YEAR COSTS
1. Lump sum cost.
2. Participation of less than
(Written numbers)
(Figures)
four jurisdictions. Should (Written numbers)
less than four jurisdictions
contract to participate in $
the curbside recycling pro- (Figures)
gram, list the cost per 1,000
households, assuming a mini-
mum of 16,000 households, but
less than 26,000 households
would be served.
NAME OF FIRM:
ADDRESS:
PHONE:
AUTHORIZED REPRESENTATIVE:
TITLE:
SIGNATURE:
DATE:
35
PROPOSED PRICES FOR
RECYCLING PROGRAM OPERATION
(ASSUMING HOUSEHOLDS ARE BILLED DIRECTLY, ANNUALLY)
PROPOSAL FORK E-2
The undersigned hereby agrees to perform curbside collection and processing
center operation, and handling and marketing of recyclable materials for the
Cities in accordance with the Request for Proposal dated
OPTION TOTAL FIVE YEAR COSTS
1. Lump sum cost.
2. Participation of leas than
(Written numbers)
(Figures)
four jurisdictions. Should (Written numbers)
less than four jurisdictions
contract to participate in $
the curbside recycling pro- (Figures)
gram, list the cost per 1,000
households, assuming a mini-
mum of 16,000 households, but
less than 26,000 households
would be served.
NAME OF FIRM:
ADDRESS:
PHONE:
AUTHORIZED REPRESENTATIVE:
TITLE:
SIGNATURE:
DATE:
36
PROPOSED PRICES FOR PROPOSAL FORK E-3
RECYCLING P,ROGRAK OPERATION
(ASSUMING HOUSEHOLDS ARE SIT,T•Rf DIRECTLY, QUARTERLY)
The undersigned hereby agrees to perform curbside collection and processing
center operation, and handling and marketing of recyclable materials for the
Cities in accordance with the Request for Proposal dated
OPTION TOTAL FIVE YEAR COSTS
1. Lump sum cost.
2. Participation of less than
(Written numbers)
(Figures)
four jurisdictions. Should (Written numbers)
less than four jurisdictions
contract to participate in $
the curbside recycling pro- (Figures)
gram, list the cost per 1,000
households, assuming a mini-
mum of 16,000 households, but
less than 26,000 households
would be served.
NAME OF FIRM:
ADDRESS:
PHONE:
AUTHORIZED REPRESENTATIVE:
TITLE:
SIGNATURE:
DATE:
37
PROPOSAL FORM "F "
PROPOSAL BOND
A certified check, properly made payable to the City of
Saratoga for ten thousand dollars ($10,000) is attached hereto.
or
•
A bond in favor of the City of Saratoga for
dollars ($ ),
which amount is not less than ten percent (10%) of the total
amount of this bid, is attached hereto.
The undersigned further agrees that in case of default in
executing the required contract, with necessary bonds, within
fifteen (15) working days, after having received notice that the
contract is ready for signature, the proceeds of the check or
bond accompanying his/her bid shall become the property of the
Cities of Saratoga, Monte Sereno, Campbell, and Town of Los
Gatos.
Licensed in accordance with an act providing for the
registration of Contractors, License No.
Signature of Bidder
(If an individual, so state. If a firm or co -partnership,
state the firm name and give the names of all individual co-
partners composing the firm. If a corporation, state legal name
of corporation, also names of president, secretary, treasurer,
and manager thereof.)
Business Address
Dated:
38