HomeMy WebLinkAbout23 CONTRCT SOLID WASTE 05-01-00DATE: MAY 1, 2000
TO:
WILLIAM A. HUSTON, CITY MANAGER
FROM:
SUBJECT:
Inter-Com
PUBLIC WORKS DEPARTMENT
AWARD OF CONTRACT'FOR INTEGRATEDV~ANAGEMENT
SERVICES
lqO. ,23
0
RECOMMENDATION:
It is recommended that the City Council award the Integrated Solid Waste Management
Services contract to Waste Management of Orange County of Santa Ana in the amount
of $4,703,190 and authorize the Mayor and City Clerk to execute the contract documents
on behalf of the City.
FISCAL IMPACT:
Franchise fees (2%) are collected by the hauler from commercial customers only and
then passed on to the City. The fees partially offset City contract administration costs.
The current annual amount collected is approximately $74,000. Due to decreased
commercial rates, collection of these fees will decrease by approximately 31% with the
award of the new contract. Staff estimates that annual fee revenue will amount-to
approximately $51,000. In addition, the selected hauler is required to reimburse the
City's costs for consultant services in the amount of $90,000
BACKGROUND:
Bids for the subject project were opened January 18, 2000. There were eight (8) bids
received and the results are attached as Exhibit A. Federal Disposal, Inc of Santa Ana
was the apparent Iow bidder With a bid of $4,224,300. However, the City Council has
determined that Federal Disposal is not a responSible bidder and is not qualified to
receive the contract award. Waste Management of Orange County is the second lowest
bidder with a bid of $4,703,190.
BID 'SUMMARY
Federal Disposal Services $4,224,300.00
Waste Management of Orange County $4,.703,190.00
N O RCAL $4,714,030.00
Taormina Industries $4,749,858.00
$4,866,725.00
Solag Disposal
NEWCO $5,307,632.88 ·
Ware Disposal $5,562,927.64
EDCO Disposal.Corp. $6,696,508.00
Staff and the City's consultant, Hilton, Farnkopf and Hobson (HFH) analyzed all contract
service requirements to determine Waste Management's ability to provide the full range
of services identified in the franchise agreement. The criteria for the analysis is
provided in Exhibit B. Based on this analysis and on past history, staff and. HFH have
determined that Waste Management is a responsible bidder. The HFH report is
attached as Exhibit C.
Staff and HFH have determined that Waste Management is a responsible bidder for the
following reasons:
o
The bidder has demonstrated
collection, recycling and disposal.
excellent experience
in the
areas of waste
2. 'The bidder has demonstrated that Waste Management is financially stable, has
sufficient.financial capacity and has developed a reasonable business approach
to perform the services required in the proposed agreement.
3. The bidder has complied with City insurance requirements.
.
The bidder has demonstrated the current capabilitY and capacity (personnel,
equipment and facilities) to perform all services identified in the bid document.
Even with new and higher service levels, City residents and businesses will realize
significant rate savings with the new contract. Staff attributes the decreases to the bid
process, the automation of residential collection routes and reduced waste processing
costs.
The new contract will reduce the total annual rate revenue to the hauler by a minimum
of $2,112,000. This represents a 35% reduction in total customer rates. Over the seven
year life of the contract, the savings to Tustin residents, and businesses will be
approximately $15 million. In addition, future rate increases will be strictly limited by the
new contract. Initial rates will be frozen for the first two years of the contract. Increases
after the first two years will be limited to the bid amount plus increases in the producer
price index.
Monthly residential rates will decrease approximately 4%. Rates will immediately be
reduced $.49 a month from the current $12.74 to $12.25.
Overall, commercial rates will decrease by approximately 45%. For the most typical
commercial customer who has a three-yard bin that is collected twice' a week, the rate
will decrease $63.26 per month from $153.26 to $90 per month.
The new contract is for a term of seven years with no options for extensions. The
contract will expire on June 30, 2007. It will be re-bid in the year 2006 and .awarded in
2007.
Ii¢'Ti erl t L)
~'" Public~t/orks Director
Jo~(M'~yers fJ
Ser~'r Management Analyst
Public Works Department
Attachments:
Exhibit A
Exhibit B
Exhibit C
Exhibit D
Bid Comparison
Bid Evaluation Criteria
Consultant Report
Franchise Agreement
DATE: MAY 1, 2000 ............ ~~:
TO:
r ~ '~' ~'
WILLIAM A. HUSTON, Cl~ MANAGER ~ ~ ~ ~.~:
FROM: PUBLIC WORKS DEPARTMENT ~f.~.~;~
SUBJECT: AWARD OF CONTACT FOR INTEGRATED SOLID WASTE MANAGEMENT
SERVICES
RECOMMENDATION.
It is recommended that the City CoUncil 1) award the Integrated Solid Waste Management
Services contract to Federal Disposal Service of Santa Ana in the amount of $4,224,300
with an additional condition to the agreement that Federal. Disposal provide satisfactory
assurances to the City that facilities and equipment will be available for use on or before
October 1, 2000, and; 2) Authorize the Mayor and City Clerk to execute the contract
documents on behalf of the City.
FISCAL IMPACT:
Franchise fees (2%) are collected by the hauler from commercial customers only and
then passed on to the City. The fees partially offset City contract administration costs.
The current annual amount collected is approximately $74,000. Due to decreased
commercial rates, collection of these fees will decrease by approximately 31% with the
award of the new contract. Staff estimates that annual fee revenue will amount to
approximately $50,000. In addition, the selected hauler is required to reimburse the
City's costs for consultant services in the amount of $90,000
BACKGROUND:
Bids for the subject project were opened January 18, 2000. There were eight (8) bids
received and the results are attached as Exhibit A. Federal Disposal, Inc of Santa Ana
was the apparent Iow bidder with a bid of $4,224,300. Waste Management of Orange
COunty is the second lowest bidder with a bid of $4,703,190.
BID SUMMARY
Federal Disposal Services $4,224,300.00
Waste Management of Orange County
NORCAL
$4,703,190.00
$4,714,030.00
Taormina Industries $4,749,858.00
Solag Disposal $4,866,725.00
NEWCO $5,307,632.88
Ware Disposal $5,562,927.64
EDCO Disposal Corp. $6,696,508.00
Staff and the City's consultant, Hilton, Farnkopf and Hobson (HFH) analyzed all contract
service requirements to determine Federal Disposal Service's ability to provide the full
range of services identified in the franchise agreement. As of April 28, 2000, staff was
of the opinion that Federal Disposal was not a responsible bidder because it had not
provided evidence of a fully-permitted operations facility that would allow it to timely
perform the contract. However, today, May 1, 2000, Federal Disposal provided staff
with a site plan approved by the City of Santa Ana for the Palm Street facility that
describes all the required activities. Based on this City of Santa Ana approval, the
analYsis in Exhibit B, and on past history, staff and HFH have determined that Federal
Disposal Service is a responsible bidder. The HFH report is attached as Exhibit C.
Staff and HFH have determined that Federal Disposal Service is a responsible bidder
for the follOwing reasons'
1. The bidder has demonstrated experience in the areas of waste collection,
recycling and disposal.
,
The bidder has demonstrated that Federal Disposal Service is financially stable,
has sufficient financial capacity and has developed a reasonable~ business
approach to perform the services required in the proposed agreement.
3. The bidder has complied with City insurance requirements.
.
The bidder has satisfactorily demonstrated that the capability and capacity
(personnel, equipment and facilities) to perform all services identified in the bid
document will be available by the October 1, 2000 contract start date.
Even with new and higher service levels, City residents and businesses will realize
significant rate savings with the new contract. Staff attributes the decreases to the bid
process, the automation of residential collection routes and reduced waste processing
costs.
The new contract will reduce the total annual rate revenue to the hauler by a minimum
of $2,483,000 This represents a 41% reduction in total customer rates. Over the seven
year life of the contract, the savingS to Tustin residents and businesses will be
approximately $17.4 million. In addition, future rate increases will be strictly limited by
the new contract. Initial rates will be frozen for the first two years of the contract.
Increases after the first two years will be limited to the bid amount plus increases in the
producer price index.
Monthly residential rates will decrease approximately 4%. Rates will immediately be
reduced $.57 a month from the current $12.74 to $12.25.
Overall, commercial rates will decrease by approximately 51%. For the most typical
commercial customer who has a three-yard bin that is collected twice a week, the rate
will decrease $80.91 per month from $153.26 to $72.35 per month.
The new contract is for a term of seven years with no options for extensions. The
contract will expire on September 30, 2007. It will be re-bid in the year 2006 and
awarded in 2007.
Tim D. Serlet
Public Works Director.
~alyst
Public Works Department
Attachments:
Exhibit A
Exhibit B
Exhibit C
Exhibit D
Bid Comparison
Bid Evaluation Criteria
Consultant Report
Franchise Agreement
EXHIBIT A
BID COMPARISON
Z
0
0
E
EXHIBIT B
BID EVALUATION CRITERIA
To determine whether the bid is responsive to the RFB and Franchise Agreement, the bids will be
evaluated based on criteria in "A" below. To determine whether the bidder is responsible, the
bids will be evaluated based on the criteria in "B" below.
A. RESPONSIVENESS
Completeness of the Bid
-~---;"al
, Completion and su~,,,L[ of all bid forms and information required in Section W.
, Extent and nature of exceptions (exceptions to material terms and conditions are non-
responsive; no exceptions to the Franchise Agreement are permit-ted). ·
RESPONSIBILITY
Responsible bidder means a bidder who has demonstrated 'the attributes of trustwortlniness, as
well as quality., fimess, capacity., and experience to satisfactorily perform the work required under
the iiF~ and Franchise Agreement. The City will look at the following:
Bidder's Expe~qence
General Experience - Demons~ated experience providing Similar sen-ices, includLng diversion
Fro§rams, to other jurisdictions. Experience of key personnel.
, Jurisdiction Satisfaction - Satisfaction of bidder references with services received, including
but not limited to, implementation, customer services, billing, payment of fees, and reporting.
· Public Educafior~ - Bidder's public education experience and demons~ated approaches to
acFJeving the AB 939 diversion goals.
Technical Qualifications
Implementation Plan - Reasonableness of implementation schedule and ability to meet
deadlines (i.e., equipment procurement schedules, personnel available, and notice to
customers).
, Operations - Reasonableness of assumptions (e.g., number of routes).
Mate~al Processing and Marketing - Realistic plan and guaranteed Capacity for recyclable
mate.,-ial processing, and yard waste processing.
Fin=,ncing Ability
· Financing - Evidence that financing requirements will be fulfiIled.
· Financial Stability - Comparison of additional revenue from contract to company's current
revenue stream. 'LiquidiD, of bidder based on its ratio of liabilities to assets. Demonstrated
ability of bidder to obtain adequate insurance.
December 7, 1999 Page 18
City of Tustin
C. AWARD
The franchise will be awarded to the lowest responsible bidder as determined by the City. Non-
responsive bids will be disqualified. The lowest bid will be based on the total rate revenue
calculated on Row 22 in Attachment 3 as "Total Projected Annual Billings."
Responsibility will be evaluated as outlined above in B. If the City determines that a bidder is not
responsible, the City shall notify the bidder in writing of the reasons for the determination and
provide the bidder with the right to request a hearing before the City Coundl who's decision shall
be final. The City Coundl may desig-nate a hearing officer or other body to hear the appeal. If a
hearing officer or other body conducts the hearing, the officer or body shall make findings of fact
and recommend a derision to the City, Coundl.
December 7, 1999 Page 19 City of Tustin
EXHIBIT C
CONSULTANT REPORT
H
ILTON FARNKOPF & HOBSON, LLC
Advis~r¥ Serv~ce.~
~-~ Municipal Mana~,cment
·
3990 Westerly Pl;~ce, SuiTe 195
Newport Brach, Califi~rni;~ 92662-2311
Tclcphon'-': 714/251-8628
Fax: 714/251-9741
Fremont
Newport Bt:ac[,
Sacramento
April 25, 2000
Mr. Joseph Meyers
Senior Management Analyst
Public Works Department
City of Tustin
300 Centennial Way
' Tustin, California 92780
Review of Bids for
Integrated Solid Waste Management Services
Dear ~M_r. Meyers:
We have completed our review of the bids submitted to the City of Tustin (City) in
response to the City's Request for Bids (RFB) for Integrated Solid Waste Management
Services. Bids were received from the following eight hauling companies:
· CR&R/Solag Digposal Disposal;
· Edco Disposal Corporation;
· Federal Disposal Service (Federal);
· Newco;
· Norcal;
· Taormina Industries;
· . Ware Disposal Company; and,
· Waste Management (WM).
This report:
· Summarizes the rates proposed by the eight bidders;
· Identifies the lowest responsible bidder;
· Identifies the savings to the City's ratepayers based on the lowest responsible bid;
and,
· Describes the proposals submitted by the apparent low bidder, Federal Disposal,
and the lowest responsible bidder, Waste Management.
rec~,cle~ C~ I~l~er
t'--'-'-'-'-'-'-'-~= HILTON FARNKOPF & HOBSON, LLC
Mr, Joseph Meyers
April 25, 2000
Page2
PROPOSED RATES
Each bidder submitted proposed rates for residential, commercial, and roll-off box
service using Attachment 3 of the RFB. Using a standard number of customers based
on existing service levels contained in the RFB, each bidder calculated (and we verified)
the annual rate revenue that would be generated by the proposed rates. Total annual
rate revenue, from lowest to highest, is summarized in Table 1 below:
Table
· ..' :: : ". .... .~:.:,:~ :~,':~:;.- TOtal. AnnUal Rate % Increase Compared
, .:-:.:~;:. Bidder :i.'~'' .
' ":' ....... . ...."!. :':.i ?' ':":: R~venue' .-':':.:' to Low Bid
·
1. [ Federal Disposal Service $4,224,000 --
11.3%
2. I Waste Management 4,703,000
3. [ NORCAL 4,715,000 11.6%
4. i Ta°rmina Industries 4,750,000 12.5%
5. [ CR&R/SoNg 4,867,000 15.2%
6. I Ware Disposal Company 5,563,000 31.7%
7. t Edco Disposal Corporation 6,696,000 58.5%
8., I NEWCO 6,746,000 59.7%
A detailed breakdown of the proposed rate revenue by line of business for each bidder
is shown in the exhibits contained in Attachment 1. Individual calculations of the rate
revenues for each bidder are contained in Attachment 2.
LOWEST RESPONSIBLE BIDDER
City of Tustin staff and the City Attorney have determined the apparent low bidder,
Federal Disposal, is not responsible. Our complete evaluation of Federal Disposal's
proposal is contained in Attachment 3. A summary of the reasons why Federal
Disposal's proposal is not responsible is provided below:
Federal does not have a viable permitted site to serve as a yard for its collection
vehicles, maintenance yard, and customer service facilities (refer to the City staff
report for details on the site zoning/permitting issues);
· Federal does not any experience providing solid waste collect/on and recycling
services to cities or counties; it does have experience providing solid waste services
HILTON FARNKOPF & HOBSON, LLC
Mr. Joseph Meyers
April 25, 2000
Page 3
to military bases, but the scope and complexity of the services provided and the size
of these military contracts is significantly less than that required to serve the City of
Tustin;
Federal has never transitioned service from another solid waste hauler for an agency
similar in size to the City of Tustin;
Federal has never converted an agency from manual refuse collection to an
automated three-cart system for refuse, recyclables, and yard waste;
Federal has extremely limited experience conducting public education campaigns
and preparing recyc!hng education materials similar to those required in the City of
Tustin;
-o
Federal has not previously performed large-scale residential billing to individual
dwelling units and does not currently have the customer service infrastructure to
support it;
o Federal has limited financial resources, and the Tustin contract would more than
double the size of the company.
Therefore, as shown in the Table 1 on the previous page, Waste Management (WM) was
the lowest responsible bidder. Our complete evaluation of Waste Management's
proposal is contained in Attachment 4.
COMPARISON OF WATE MANAGEMENT'S PROPOSED RATES AND ANNUAL
RATE REVENUE TO CURRENT RATES
We compared the rate revenue proposed by WM, the lowest responsible bidder, to
annual revenue at current rates. WM's proposed total rate revenue would result in
annual savings of approximately $2,112,000 to the CitY's residential and commercial
ratepayers (see page 1-2 of Attachment 1). Over the seven-year term of the ag-reement,
total savings to the ratepayers.wdll be approximately $14.8 million compared to current
rate revenue, as savings of approximately 35%.
The proposed monthly residential'rate for automated refuse, recycling, and yard waste
collection will decrease from the current amount of $12.74 per month to a new rate of
$12.25 per month, a reduction of 3.8%.
.
~t..----~ HILTON FARNKOPF & HOBSON. LLC
Mr. Joseph Meyers
April 25, 2000
Page4
Proposed rates for commercial bin service will decrease significantly. On average, rates
for commercial bin service will decrease by approximately 45%, although the specific
amount of the reduction will depend on the each customer's individual service levels.
Residential and commercial rates will be fixed for the first two years of the agreement.
Thereafter, rates will be adjusted annually based on the landfill disposal gate rate at the
Orange County landfills, and changes in the Producer Price Index using the rate
adjus,'-ment formula contained in the franchise agreement.
We will be available to answer questions about our report at the City Council meeting
when this matter is considered. If you have any questions prior to the meeting, please
call w~e at 949/251-8628.
.~~B.truly yours,
Sen'.'.er Vice President
Attachments:
1) Summary of Proposed Rates and Rate Revenues
2) Detailed Rate Revenue Calculations
3) Evaluation of Federal Disposal's Proposal
4) Evaluation of Waste Management's Proposal
o
<
7:-!
Tustin Rate Revenue Calculations
Federal Disposal
Proposed Rates
Residential, Multi-Family and Commercial Cart/Manual Can Rates
Estimated
Proposed Existing Monthly Annual
Row ' Service Monthly Service Units Billings' · Billings
1 Automated Cart $ 12.17 8,773 $ 106,767.00 $ 1,281,204
2 Manual Can $ 7.34 737 $ 5,410.00 $ 64,920
3 Total Cart/Can Billin.~ $ 1,346,124
Commercial and Multi-Family Bin Rates
4 2 Cubic Yards S 35.53 $ 63.51 $ 91.50 $ 119.48 $ 147.47 $ 175.45
5 3 Cubic Yards $ 39.95 $ 7Z35 $ 104.76 $ 137.16 $ 169.56 $ 201.96
6 I 4 Cubic Yards $ 44.37 $ 81.19 $ 118.01 $ 154.83 $ 191.65 $ 228.48
Commercial and Multi-Family Bin Distribution Matrix - Number of Bins
7 2 Cubic Yards 84 20 9 1 2 116
8 3 Cubic Yards 253 562 340 125 132 62 1,474
9 4 Cubic Yards 30 80 I 97 23 49 46 325
10 Total 367 662 446 148 182 110 1,915
Source: Waste Management, Inc. The City does not assume any responsibility for the accuracy of the reported irrformation
Commercial and Multi-Family Bin Billings
~..:i Container '. :'[ i~!-.::I Total
% '¥('!- Size ' 6 ::?
2 Cubic Yards
3 Cubic Yards
4 Cubic Yards
Total Monthiv Billings
Total Annual Billings
~ 2 3 I 4
2,985 $ 1,270 $ ' 82415 -
10,107 40,661 35,618] 17,145
1,331 6,495 11,447 3,561
14,423 $ 48,426 $ 47,889 $ 20,706
173,076 $ 581,112 $ 574,668]S 248,472
Roll-Off Box Billings
'.R0w..i: ::::':' "'
16 Pull Charge # of Pulls 3,002 $ 87.23 $ 261,864
17 Disposal/Processing Charge # of Tons 13,407 $ 28.00 $ 375,396
18 Total Roll-Off Box. Billinss [ $ 637,260
Summary_ of Pro!ected Annual Billin..~
19 Residential, Multi-Family, Commercial Cart/Manual Can Billings $ 1,346,124
20 Commercial and Multi-Family Bin Service Billings 2,240,964
21 Roll-Off Box Billings 637,260
'~ . .Total Proiected A::a~ual BLllin .~ $ 4,224,348
Z3 Temporary Bin Services - Per Pull, plus S5 per day over 7 days $ 50.00
24 i Locking Bin - Cost per bin per month $ 5.00
25 Bin Cleaning (in excess of one bin cleaning per year) - Each $ 35.00
26 Additional Bulky Waste Pickup (in e.x~ss of 2 per year) - Each $ 20.00
27 Additional Slvecial Pic.k-uu for Automated Cart Customers (in excess of 2 per year) - Each $ 5.00
* These unit estimates will be used for purposes of calculating rate revenue and
determining the proposer's overall cost. It assumes that all single family, duplex, and
triplex units will receive automated cart service.
22,382 ] 12,522 138,435
9,391[ 10,510 42,735
31,920 ~ S 23,383 $ 186,747
383,04015 280,59615 2.2~.964
Failure to complete and submit this form will deem the proposer's bid non-responsive.
2-1
Tustin Rate Revenue Calculations
WMT
Proposed Rates
Residential, Multi-Family and Commercial Cart]Manual Can Rates
Estimated
~o~os.a .: ~i~s Mo.th,y ^n.u~
ROw .i~. "Service Monthly' SerV|CeUnits''~ Billings .. B~llings
· . ' :: :Rate :.. ,, .: . ::.
1 Automated Cart $ 12.25 8,773 $ 107,469.00 S 1,289,628
2 Manual Can $ 12.25 737 $ 9,028.00 $ 108,336
3 Total Cart/Can Billingrs t S 1,397,964
Commercial and Multi-Family Bin Rates
Attachment 2
Commercial and Multi-Family Bin Distribution Matrix - Number of Bins
7 2 Cubic Yards 84 20 9 I ' 1 2 116
8 3 Cubic Yards 253 562 340I 125 132 62 1,474
9 4 Cubic Yards 30 80 97 23 49 46 325
10 Total 367 662 I 446 I 148 182 110 1,915
Source: Waste Management, Inc. The City does not assume any responsibility for the accuracy of the reported information
Commercial and Multi-Family Bin Billings
11 2 Cubic Yards $ 3,360 $ 1,200 ] $ 720 ] $ S 120 $ 280 $ 5,680
12 3 Cubic Yards 14,801 50,580I 39,440I 18,125 25,080 14,260 162,286
13 4 Cubic Yards 1,950 7,360 12,125 3,565 9,555 10,BI0 45,365
14 Total Monthlv Billin.~s $ 20,111 $ 59,140 I S 52,285 ! S 21,690 $ 34,755 $ 25,350 $ 213,331
15 Total Annual 'Billin~s $ 241,332 $ 709,680 i $ 627,420 ! S 260,280 S 417,060 $ 304.,200 $ 2,559,972
Rgll'Off Bgx Billings
:./:'::!:~:i:.!,iii!:::~;::(,?. :' ' :.::: ~'i.~:~7.~: ~i ............... ..;:: ...... :~ ::' ~i::'.: xear: :
16 Pull Charge # of Pulls 3,002 $ 150.00 5 450,300
17 Disposal/Processing Charge # of Tons 13,407 $ 22.00 S 294,954
18 Total Roll-.Off Box Billin.zs I s 745,254
~ummary of Proiected Annual Billin~
19 Residential, Multi-Famil); Commercial Cart/Manual Can Billings i s 1,397,964
20 Commercial and Multi-Family Bin Service Billings 'I .2,559,972
21 Roll-Off Box Billin..~ 745,254
"'~ Total Proiected Annual Billinzs 1 S 4,703,190
Special Services
23 Temporary Bin SerVices - Per Pull, plus $5 per day over 7 days $ 50.00
24 Locking Bin - Cost per bin per month S 5.00
I ~ Bin Cleaning (in excess of one bin cleaning per year) - Each $ 35.00
26 Additional Bulky Waste Pickup (in excess of 2 per year) - Each $ 20.00
27 Additional Special P!c. kuv for Automated Cart Customers (in excess of 2 per year) - Each $ 5.00
* These unit estimates will be used for purposes of calculating rate revenue and
determining the proposer's overall cost. It assumes that all single family, duplex, and
triplex units will receive automated cart service..'
Failur~ to complete and submit this form will deem the proposer's bid non-responsive.
ap,-a 2~, 2000
2-2
Tustin Rate Revenue Calculations
lN'orcal
Proposed Rates
Attachment 2
Residential. Multi-Family and Commercial Cart/Manual Can Rates
Proposed Existing" Monthly Annual
Row ' .):.. Service Monthly Service Units Billings Billings
1 Automated Cart $ 6.74 8,/73 $ 59,130.00 $ 709,560
2 Manual Can $ 11.22 737 $ 8,269.00 S 99,228
3 ~ Total Cart/Can Billin.~ [ S 808,788
Commercial and Multi-Family Bin Rates
4 2Cubic Yards $ 39.87 $ 76.27 $ 111.1215 142.83 $ 176.37 $ 296.20
5 3 Cubic Yards $ 53.30 $ 104.00 $ 148.20[ $ 187.20 $ 224.25 $ 393.90
6 4 Cubic Yards $ 60.67 $ 1172~7 $ 169.00.$ 221.87 $ 268.67 $ '520.00
Commerdal and Multi-Family Bin Distribution Matrix - Number of Bins
7 · 2 Cubic Yards 84 20 9 I ' 1 2 116
8 3 Cubic Yards 253 562 340I 125 132 62 1,474
9 4 Cubic Yards 30 80 97 23 49 46 325
10 Total 367 662 446 ! 148 182 110 1,915
Source: Waste Management, [nc The City does not assume any responsibility for the accuracy of the reported inforrr~ion
(~0mmercial and Multi-Family Bin Billings
!
11 2 Cubic Yards $ 3,349 $ 1,525 $. 1,000 [ 5 ' I $ 176 $ 592 $ 6,642
12 3 Cubic Yards 13,485 58,448 50,388I 23,400[ 29,601 24,422 199,744
13 4 Cubic Yards 1,820 9,430 16,393 5,103 13,165 23,920 69,831
14 Total Monthl.vBillinss $ 18,654 $ 69,403 $ 67,78115 28,50315 42,942 $ 48,934 $ 276,217
[ 15 Total Annual Biilin.~s I $ 223,848 $ 832~,536 $ 813,3~ { 5 342,036 I S 515,304 $ 557,208 $ 3,314,604
Roll-Off Box Billings
. :~::-ii:':i???:! ' ~-:i'::?i:i'ii: ?:::.?.~!::i::':~:iii:~ .... ' .:::¥:iii!: ?.:: :::'~' , ' Billi~:~!ilili!!i!.:
16 Pul1 Charge # of Pulls 3,002 $ 88.00 5 264,176
17 Disposal/Processing Charge # of Tons 13,407 $ 24.35 $ 326,460
18 Total Roll-Off Box Billinffs I $ 590,636
Summary_ of Pro!ected Annual Billin_~
19 Residential, Multi-Family, Commerdal Cart/Manual Can Billings [ $ 808,788
20 Commercial and Multi-Family Bin Service Billings] 3,314,604
21 Roll-Off Box Billings 590,636
22 Tot:al Proiected .4~nual Billings ! $ 4,714,028
Special Services
23 Temporary Bin Services - Per Pull, plus S,5 per day over 7 da.vs S 50.00
24 Locking Bin - Cost per bin per month , S 5.00
25 Bin Cleaning (in excess of one bin cleaning per year) - Each S 35.00
26 Additional Bulky Waste Pickup (in excess of 2 per year) - Each $ 20.00
27 Additional Special Pickup for Automated Cart Customers Cm excess of 2 per vear)- Each' $ 5.00
These unit estimates will be used for purposes of calctrlating rate revenue and
determining'the proposer's overall cos*~ It assumes that all single family, duplex, and
triplex units will receive automated cart, service.
Failure to complete and submit this form will deem the proposer's bid non-responsive.
apr/t 2~, 2000
2-3
Tustin Rate Revenue Calculations
Taormina
Proposed Rates
~tachment 2
l~esidential. Multi-Family and Commercial Cart/Manual Can Rates
-- Estimated
:i:.. ' PrOposed. Existing MOnthly ! Annual
Row .' Service Monthly ' SerVice Units -.~ Billings · Billings
~ i :.... Rate -:! · : ~i::~'i:~ ' :.
1 Automated Cart S 15.36 8,773 $ 134,753.00 $ 1,617,036
2 Manual Can S 15.36 737 $ 11,320.00 $ 135,840
3 [ Total Cart/Can BillingrS t $ 1,752,876
__
Commerdal and Multi-Family Bin Rates
4 { 2 Cubic Yards $ 59.00 $ 79.00 $ 101200 $ 114.00 $ 138.00 $ 180.00
5 I 3 Cubic Yards $ 79.00 $- 89.00 $ 101.00 $ 114.00 $ i38.00 $ 180.00
6 I 4 Cubic Yards $ 84.00 $ 99.00 $ 116.00 $ 134.00 $ 163.00 $ 210.00
Commercial and Multi-Family Bin Distribution Matrix - Number of Bins
7 I 2 Cubic Yards I 84 20 9.~ - 1 2 116
8{ 3 Cubic Yards] 253 562 340 ' 125 132 62 1,474
9 4 Cubic Yards 30 80 97 23 49 46 325
10 I Total 367 662 446 148 182 110 . 1,915
Source: Waste Manag~'mnt, Inc. The City does not assume any responsibility for the accurac3 repc
(~ommercial and Multi-Family Bin Billings
::: ..... ~..,.,.:: Size ..:{ ~ I 2 I 3 t 4 S 6 .....
11I 2 Cubic Yards I$ 4.956 $ 1,580 $ 90915 $ 138 5 360 5 7,943
12 3 Cubic Yards 19,987 50,018 34,340 14,250 18,216 11,160 147,971
13 4 Cub lc Yards 2 520 7,920 11,252 3,082 7,987 9,660 42,421
14 t Total Monthly Billings [ S 27,463 $ 59,518 $ 46,501 ! S 17,332 I $ 26,341 $ 21,180 $ 198.335
15 [ Total Annual Billin,~s I S 329,556 $ 714,216 I $ 558,012 [ S . 207,984 [ $ 316,092 S 22-4,160 $ 2,380,020.
Roll-Off Box Billin_~
16 ]Pull Charge # of Pulls 3,002 $ 76.00 $ 228,152
[DisposalJProcessing Charge # of Tom 13,407 $ 29.00 $ 388,803
17
18 ] Total Roll-Off Box Billin.~s $ 616,955
Summary. of Pro!ected Annual Billings
,,
19 Residential, Multi-Family, Commercial Cart/Manual Can Billings $ 1,752,876
20 Commercial and Multi-Family Bin Ser~4ce Billings 2,380,020
21 Roll-Off Box Billln~ 616,955
",.2 Total Proie~ed Armual Billin .~ $ 4,749,851
Special Services
23 Temporary Bin Services - Per Pull, plus $5 per day over 7 days $ 50.00
24 Locking Bin - Cost per bin per month $ 5.00
25 Bin Cleaning (in excess of one bin cleaning per year) - Each $ 35.00
26 Additional Bulky Waste Pickup (in excess of 2 per year) - Each $ 20.00
27 Additional Svec'5'_a! Pickuv for Automated Cart Customers (in excess of 2 per year) - Each $ 5.00
These unit estimates will be used for purposes of calculating rate revenue and
determining the proposer's overall cost. It assumes that all single family, duplex, and
triplex units will receive automated cart service.
Failure to complete and submit this form will deem the proposer's bid non-responsive.
April 25, 2000
2-4
Tustin Rate Revenue Calculations
CRR/$ola~
Proposed Rates
Residential. Multi-Family and Commercial Cart/Manual Can Rates
'. ·. . · ProPosed Estimated
. Existing Monthly 'Annual
· Row ;': Service ' Monthly ~:~ Service Units Billings Billings
1 .Automated Cart S 15.13 8,773 $ 132,735.00 $ 1,592,820
2 Manual Can $ 15.13 737 $ 11,151.00 $ 133,812
3 Total Cart/Can Billing¢ $ 1,726,632
Commercial and Multi-Family Bin Rates
4 ' 2 Cubic Yards $ 60.17 $ 76.57 5 92.14 $ 107.71[S 119.85 5 135.4~
5 3 Cubic Yards $. 70.17 $ 91.57 $ 107.71 $ 128.28 S 148.85 $ 169.42
6 . 4 Cubic Yards $ 80.17 $ 106.57 $ 132.14 $ 152.28 $ 1/'7.85 S 203.42
__Attachment 2
Commercial and Multi-Family Bin Distribution Matrix - Number of Bins
7 2 Cubic Yards 84 20 9 I 1 2 116
8 3 Cubic Yards 253 562 340 125] 132 62 1,474
9- 4 Cubic Yards 30 80 97 23 49 46 325
10 Total 367 662 446. 148i 182 110 1,915
Source: Waste Management, Inc. The City does not assume any responsibility for the accuracy of the reported information
Commercial and MultS-Family Bin Billings
-. : .. :':;~::??: ,
11 2 Cubic Yards $ 5,054 $ 1,531 $ 829 $ - 15 120 $ 271 $ 7,805
12 3 Cubic Yards 17,753 51,462 36,621 16,035I 19,648 10,504 152,023
13 4 Cubic Yards 2,405 8,526 12,818 3,502 8,715 9,357 45,323
14 Total Monthlv Billings $ 25,212 $ 61"519 $ 50,268 $ 19,53715 28,483 $ 20,132 $ 205,151
!5 Total Annual Billings S 302;544 $ 738,228 $ 603,216 iS 234,444 ! S 341,796 S 241,584 $ 2,461B12
Roll-Off Box Billings
· . .
I
16 Pull Charge # of Pulls 3,002 $ 100.00 $ 300,200
17 DisposalYProcessing Charge # of Tons 13,407 $ 28.20 $ 378,077
18 Total Roll-Off Box Billings $ 678,27~..'.
Summary of Proiected Annual Billin_t~
19 Resident-iai, Multi-Family, Commercial Cart/Manual Can Billings - I $ 1,726,632
20 Commerc/al and Multi-Family Bin Service BillingsI 2,461,812
21 Roll-Off Box Billlne~ 678,277
22 Total Projected Annual Billin ,~ I $ 4,866,721
Special Services
23 Temporary Bin ServiCes - Per Pull, plus $5 per day over 7 days S 50.00
24 Locking Bin - Cost per bin per month S 5.00
25 Bin Cleaning (in excess of one bin cleaning per year) - Each S 35.00
26 Additional Bulky Waste Pickup (in excess of 2 per year) - Each $ 20.00
27 Additional Speeia! Pickuv for Automated Cart Customers (in excess of 2 per year) - Each S 5.00
These unit estimates will be used for purposes of calculating rate revenue and
determining the proposer's overall cost. It assumes that all single family, duplex, and
triplex units will receive automated cart service.
Failure to complete and submit this form will deem the proposer's bid non-r~-ponsive.
A~t '_5. 2000
2-5 -
Tustin Rate Revenue Calculations
W_~are Disposal
Proposed Rates
A!lachment 2
l~esidential. Multi-Family and Commerdal CartfManual Can Rates
Estimated
. .
Proposed Existing : Monthly Annual
Row.. Service MonthlYl~te SerVice Units Billings Billings
· ~.
1 Automated Cart $ 13.11 8,773 $ 115,014.00 $ 1,380,168
2 Manual Can $ 13.11 737 $ 9,662.00 $ 115,944
3 Total Cart/Can Billing. aZ I $ 1,496,112
Commerdal and Multi-Family Bin Rates
4 2 Cubic Yards 5 50.04 $ 85.26 $ 116.6615 147.82 $ 178.71 $ 210.71
5 3 Cubic Yards S 6Zi5 $ 116.30 $ 162.87I 5 212.68 $ 263.30 $ 312.76
6 4 Cubic Yards $ 77.15 $ 136.50 $ 182.87 $ 232.88 $ 284.60 $ 336.76
Commercial and Multi-Family Bin Distribution Matrix - Number of Bins
7 2 Cubic Yards 84 20 9 1 2 116
8 3 Cubic Yards 253 562 340 125 132 62 1,474
9 4 Cubic Yards 30 80 97 23 49 46 325
10 Total 367 662 446 I 148 182 110 1,915
Source: Waste Management, Inc. The City does not assume any responsibility for the accuracy the re~
Commerdal and Multi-Family Bin Billings
11 2 Cubic Yards $ 42035 1,70515 1,0s01 s - $ 1795 4215 7,558
12 3 Cubic Yards 15,/"'24 65,361[ 55,376] 26,585 34,756 19,391 217,193
13 4 Cubic Yards 2,315 10,920 17,738 5,356 13,945 15,491 65,765
14 Total Monthlv BiLlin~gs ] S 22,242 $ 77,986 j $ 74,164 t 5 31,941 S 48,880 $ 35,303 $ 290,516
15 Total Annual Billin~.st S 266.904 S 935,8321 $ 889,968 j $ 383,292 ] S 586,560 $ 423,636 $ 3,486,192
Roll-Off Box Billings
:'ii:::..;.~!:~:~i~!::ii:~ :. ·: ~':.: ~ :... :.':: 7'i:: .'-:: ~:~::!i:i; ...... .. '?:-i:- I ' Billifi~
] 16 'Pull Charge # of Pulls 3,002 $ 95.00 $ 285,190
17 Disposal/Processing Charge # of Tons 13,407 $ 22.00 5 294,954
18 Total Roll-Off Box Billings t { S 580,144
~ummary of Pro!ected Annual Billin~
19 Residential, Multi-Family, Commercial Cart/Manual Can Billings $ 1,496,112
20 Commercial and Multi-Family Bin Service Billings 3,486,192
21 Roll-Off Box Billings 580,144..
, 22 Total Projected .6mrv. ml Billirt~ S 5,562,448
Special Services
23 'Temporary Bin Services - Per Pull, plus 55 per day over 7 days $ 50.00
24 Locking Bin - Cost per bin per month $ 5.00
25 Bin Cleaning (in excess of one bin cleaning per year) - Each $ 35.00
26 Additional Bulky Waste Pickup (in excess of 2 per year) - Each $ 20.00
27 Additional 5v~ial Pickuv for Automated Cart Customers (in excess of 2 per year) - Each $ 5.00
,
* These unit estimates ~q.ll be used for pm'poses of calculating rate revenue and
determining the proposer's overall cost. It assumes that all single family, duplex, and
triplex units will receive automated cart service.
Failure to complete and submit this form will deem the proposer's bid non-responsive.
,a. pr/125, 200O
2-6
l'ustin Rate Revenue Calculations
EDCO
Proposed Rates
Residential, Multi-Family and Commercial Cart/Manual Can Rates
Estimated .
· Proposed . Existing Monthly Annual
Row Service Monthly ~.e Units Billings: Billings
..' ' i Rate:.~i ,. . · "
__
1 Automated Cart $ 14.07 8,773 $ 123,436.00 $ 1,481,232
2 .VlanualCan $ 14.07 737 $ 10,370.00 $ 124,440
3 Total Cart/Can Billin.,es $ 1,605,672
Commercial and Multi-Family Bin Rates
4 2 Cubic Yards S 72.38 $ 123.75 $ 154.69 $ 164.44 $ 174.19 $ 183.94
5 3CubicYar~ $ 96.50 $ I65.00 $ 206.25 $ 219.25 $ 232.25 $ 245.25
6 4 Cubic Yards $ 120.63 $ 206.25 $ 257.81 $ 274.06 $ 290.31 $ 306.56
~_ttachment 2
Commercial and Multi-Fatm'l_v Bin Distribution Matrix - Number of Bins
7 2 Cubic Yards 84 20 9 - 1 2 116
8 3 Cubic Yards 253 562 340 125 132 62 1,474
9 4 Cubic Yards 30 80 97 23 49 46 325
10 Total 367 662 446 148 182 110 1,915
Source: Waste Manage~,ent, I. nc The City does not assume any responsibility for the accuracy of the .reported irfformation
Commercial and Multi-Family Bin Billings
11 2 Cubic Yards $ 6,080 $ 2,475[$ 1,392 $ $ 174 $ 368 $ 10,489
12 3 Cubic Yards 24,415 92,730] 70,125 27,406 30,657 15,206 260,539
13 4 Cubic Yards 3,619 16,500 25,008 6,303 14,225 14,102 79,757
14 Total Monthlv Billin~s $ 34,114 $ 111,705{$ 96,525 $ 33,709 S 45,056 $ 29,676 $ 350,785
15 { Total A_nnual Billin~.s S 409~368 $ 1,340,460 I s 1,158,300 $ 404,508 I s 540,672 $ 356,112 $ 4,209,420
Roii-Off Box Billin~
16 Pull Charge #ofPulls 3,002 $ 127.55 $ 382,905
17 Disposal/Processing Charge # of Tons 13,407 $ 37.18 $ 498,472
18 Total Roll-Off Box Billings $ 881,377
~ummary of Pm!ected ^l'toual Billin~
19 Residential, Multi-Family, Commercial Cart/Manual Can.Billings $ 1,605,672
20 Commercial and Multi-Family Bin Service Billings 4,209,420
21 Roll-Off Box Billings 881,377
22 Total Projected Armua! B~Jlin~s $ 6,696,469
,,
23 Temporaz3, Bin Services - ?er ~ plus S5 per day over 7 days $ 50.00
24 Locking Bin - Cost per bin per month $ 5.00
25 Bin Cleaning (in excess of one bin cleaning per year) - Each $ 35.00
26 .Additional Bulky Waste Pidcup (in excess of 2 per year) - Each $ 20.00
27 Additional Soecial Pic. kuv for Automat~i Cart Customels (in excess of 2 per year) - Each $ 5.00
These unit estimates ~-iil be used for purposes of ca!~lating rate revenue and
determining the proposer's overall cost. It assumes that all single family, duplex, and
triplex u.nits will receive automated cart service.
Failur~ to complet~ and submit this form will deem the proposer's bid non-responsive.
April ~.5, 2000
2-7
Tustin Rate Revenue Calculations
b/ewco
Proposed Rates
Residential. Multi-Family and Commercial Cart/Manual Can Rates
· · Estimated
~', i - Proposed Existing i": Monthly Annual
ROw ' service · Monthly Service Units Billings Billings
:L ,, - -.: · · .. . .Rate : '* . * ' :i:~. '
1 Automated Cart $ 12.61 8,773 $ 110,628.00 $ 1,327,536
2 Manual Can $ 12.61 737 $ 9,294.00 $ 111,528
3 Total Cart/Can Billings I $ 1,439,064
Commercial and Multi-Family Bin Rates
4 [ 2 Cubic Yards $ 63.93 $ 106.28 $ 146.91 $ 196.05 $ 234.46 $ 272.30
5[ 3 Cubic Yards $ 89.34 $ 149.56 $ 208.88 $ 260.09 S 324.11 $ 384.48
6 . 4 Cubic Yards S 107.48 $ 177.01 $ 248.67 $ 315.89 $ 392.09 $ 461.58
CQrnmerdal and Multi-Family Bin Distribution Matrix - Number of Bins
7 [ 2 Cubic Yards 84 20 9 I 1 2 116
8[ 3 Cubic Yards 253 562 340 125] 132 62 1,474
9 4 Cubic Yards 30 80 97 23 49 46 325
10 I Total 367 662 446 148 t 182 110 1,915
~Cource: Waste Management, Inc. The City does not assume any responsibility for the accuracy of the reported information
· (~omro~rgial and Multi-Family Bin Billings
11 I 2 Cubic Yards 5 5,370 5 2,126 5 1,322 5 - 15 234 5 545 5 9,597
12I 3 Cubic Yards 22,603 84,053 71,019 3Z511[ 42,783 23,838 276,807
13 4 Cubic Yards 3,224 14,161 24,121 7,265 19,212 21,233 89,216
14 I Total Monthly Billings i S 31,197 $ 100,340 $ 96,462 $ 39,776 I S 62,229 I S 45,616 $ 375,620
· 15I Total Annual Billings i $ 374,364 $ 1,204,080 I $ 1,157,544 [ $ 477,312 I S 7'46,748 ! S 547,392 I $ 4,507,440
Roll-Off Box Billings
~ .:.~ i:~:.;~; ~i?~i~::~ . :iii ~:?,:ii~?::.:: :?-~il'~. :i!:i?ii!~'!:Billi~:!!?· ~
16 [Pull ~a~e ~ of P~ 3,~2 $ 168.~ $ 505,~7
17 Disposa~Processing ~arge ~ of To~ 13,~7 $ ~.00 $ 294,9~
18 To~ Roll~ff Box Billings $ 8~,191
Summary_ of Pro!ected Annual Billings
19 Residential, Multi-Family, Commerdal Cart/Manual Can Billings $ 1,439,064
20 Commerdal and Multi-Family Bin Service Billings 4,507,440
21 Roll-Off Box Billings 800,191
22 Total Projected Ar~nual Billings $ 6,746;695
Spedal Services
23 Temporary Bin Services - Per Pull, plus $5 per day over 7 days $ 50.00
24 Locking Bin - Cost per bin per month $ 5.00
25 Bin Cleaning (in excess of one bin cleaning per year) - Each S 35.00
26 Additional Bulky Waste Pickup (in excess of 2 per year) - Each $ 20.00
27 .Additional Special Pickup for Automated Cart Customers (in excess of 2 per year) - Each $ 5.00
· These unit estimates will be used for purposes of calculating rate revenue and
determining the proposer's overall cost. It assumes that all single family, duplex, and
triplex units will receive automated cart service.
Failure to complete and submit this form will deem the proposer's bid non-responsive.
April ~, 2000
2-8
ATTACHMENT 3
FEDERAL DISPOSAL SERVICE
The attachment describes Federal Disposal Service and the services it proposed.
Description of Federal Disposal Service and its Experience
Federal Disposal Service is a d.b.a, of Shubin Services, Inc. This company was
incorporated in 1986 and is wholly owned by its President, Donald B. Shubin. Federal
is a small, local waste hauling company with its yard in Santa Aha.
The vast majority of Federal's current operations is construction and demolition waste
hauling. Federal's residential solid waste collection service experience has been
exclusively military facility contracts,'through which Federal has provided three cart
collection service along with commercial, roll-off, and special events solid waste
collection. Currently Federal's only residential waste hauling operations are performed
for the Marine Corp Air Ground Combat Center in Twenty-nine Palms, California.
Providing service at military bases is very different than servicing cities, as the services'
provided, base housing, terrain, geographic conditions and waste generation
characteristics tend to be much more homogeneous than the varying conditions found
throughout a large municipality.
References
We contacted references at:
· Vandenburg Air Force Base, where Federal provided residential and commercial
service (population 12,000);
· The Marine Corps stations at E1 Toro and Tustin (poPulation 10,000 to 15,000),
where Federal provided residential and commercial service; and,
· Twenty-nine Palms Marine Corps Station (population 8,000 to 10,000), where
.Federal provided residential service.
All the above references were satisfied with Federal's performance and stated that they
received few complaints about the service and that Federal was easy to work with.
Summary of Collection Services Proposed bv Federal Disposal Service
Single Family Refuse Collection
Federal has proposed to provide three cart automated service to all single family
dwelling units where it is operationally feasible. Federal has provided three cart
automated cOllection service on a smaller scale at Vandenburg Air Force Base) where
references considered the Company's quality of service excellent.
Federal intends to deliver three automated carts for the collection of refuse, recyclables,
and yard waste to all single family customers. Customers shall have the choice of 96, 65
April 25, 2000
Page 3-1
or 32-gallon refuse carts. The contract also permits customers to obtain additional
refuse carts for $4.00 per month. Federal will provide cart deliveries and exchanges.
within 3 days of the request.
Federal will operate two automated refuse vehicles Monday through Friday.
Where automated collection is not operationally feasible, Federal will collect refuse
manually. Collection days will be Monday' through Friday. Manual collection routes
will be non-dedicated routes.
Single Family Re~cling Collection
Single family automated recycling collection shall be on the same day of the week as
refuse collection. Only areas receiving automated service will receive recycling
collection. Customers will have the option of 96 or 64-gallon recycling carts, and
additional recycling carts are available free of charge to customers who regularly fill
theLr recycling cart.
The recycling collection trucks will be painted to distinguish them from the refuse
collection vehicle, and will also bear a promotional recycling sign. Federal will perform
collection using one truck route Monday through Friday, With a special multi-function
truck also available one or two hours per day for recycling collection.
Sin~ie Familt/ Yard Waste Collection
SLng!e-family automated yard waste Collection shall be on the same day of the week as
refuse and recyc!ables collection. Customers may choose from a 96 or 64-gallon yard
waste cart. The contract requires that free additional yard waste carts be made available
to those customers who reg-ularly fill their yard waste cart. Tied bundles will also be
collected.
The yard waste will be collected using one truck route Monday through Friday. The
yard .waste collection trucks will be painted to promote yard waste recycling.
Multi-Familv and Commercial Regtse Collection
Federal will supply and distribute all new 2, 3, and 4 cubic yard bins for commercial
and multi-family refuse collection. Locking mechanisms on container lids will be
available to customers upon request. Watertight containers with drain plugs will be
distributed to wet food customers.
Small volume commercial and industrial customers and multi-family customers may
request automated three cart service, or continue to receive manual refuse collection
sen-ice. Federal vdll run 4.5 truck routes Monday through Saturday.
Multi-family and commerdal refuse customers whose waste has a high recyclable
content will be placed on the same collection route, and the collected refuse shall be sent
to a Material Recovery Facility ("MRF') to have recyclables separated out prior to
landfilling. Customers with Iow levels of recyclables in their waste stream will have
April 25, 2000
Page 3-2
their waste collected on separate routes. This waste will be sent directly to a landfill. If
necessary to reach the 50% diversion goal, the Company will need to change this
procedure and send all waste collected from bin customers not participating in a
recycling program to a MRF for processing prior to landfilling.
Multi-FamilY and Commercial RecycIables Collection
Federal will develop a commercial recyclable paper collection route, and provide on-
call pick-up for paper drives. Commingled recyclables shall be collected by bin or cart
for no additional charge to the customers. Federal will run 1.5 routes in the City
Monday through Friday. The vehicles used on these routes will be painted to
distinguish them from the refuse collection vehicles.
Roll-off recyclables loads high in recyclable content will be sent to a MRF. Customers
with clean dirt, concrete, asphalt, or redbrick materials will be encouraged to separate
recyclable materials.
Multi-Family and Commercial Yard Waste Collection
Automated yard waste collection, using 96 or 64-gallon carts, shall be available at no
charge to multi-family and commercial customers. Bin collection of yard waste shall be
offered at standard refuse collection charges.
Federal's Operating, Processing, and Disposal Facilities
Over.sting Yard/Q~ces.
In its initial proposal, Federal stated that vehicle staging, maintenance, dispatch, '
customer service, billing, public relations, and franchise administration activities would
take place at Federal's facility located at 1661 East Palm Street in Anaheim. Federal's
President, Don Shubin, and two members of the management team reportedly owned
the facility.
The facility is not configured adequately to accommodate customer service. Federal has
proposed to add signs and pavement paint to assist customers in loCating the office.
During the proposal review process, we became aware that the proposed intensified use
of the Santa Ana facility to accommodate the Tustin operations would require several
discretionary actions which must be reviewed and approved by the Santa Aha Planning
Commission and City Council. According to a letter from the City of Santa'Ana dated
April 6, 2000, these include amending the General Plan from Low Density Residential to
Industrial and the zoning designation from Light Industrial to Heavy Industrial. The
required changes could affect the Company's ability to implement service by the
October 1, 2000 service start date.
Federal has obtained a lease, contingent upon the award of the Tustin agreement, for
properties at 1430 and 1502 North Poinsettia Street, from which it now intends to
service Tustin. Based on a letter from the City of Santa Aha to Federal dated April 5,
April 25, 2000
· Page 3-3
2000, zoning does not appear to be an issue. However, a lot line adjustment is required
and the necessary review process will take approximately 10 weeks. Additionally, a
conditional use permit is required prior to Federal installing an above ground tank as
planned. This could take approximately three months.
Federal's cost worksheet submitted with its initial bid did not take into account leasing
and making improvements on these properties. Based on "best guess" estimates
contained in Federal's response to the City dated April 7, 2000, estimated improvements
to the subject properties would cost approximately $311,000.
'RecycIable Processing Facilities
Commingled recyclables, and high-content recyclable character refuse will be delivered
to either CR Transfer in Stanton, or CVT in Anaheim. Both facilities provided letters
with proposed rates and terms and stated that capacity was available. Subsequent
discussions, with Federal indicated that CR Transfer is the preferred facility.
Yard Waste Processing Facilities
Federal Will deliver yard waste collected in route trucks to the Tierra Verde Industries
green waste processing facility, located in the unincorporated area near.Irvine, for
$22.00 per ton.
DisvosaI Site.
Residential refuse, and refuse collected from commercial/ indus ~-ial customers that
have a functioning source separated recycling service and are of low recyclable
characteristics, will be direct hauled to Orange County's Bowerman Landfill.
Implementation Plan
While Federal provided automated residential collection to military, it has never
implemented new services on the scale required in Tustin. The City should be prepared
for transition problems associated with changing collection days, converting to
automated collection, and transitioning to a new service provider.
Customer Service and Billing
Federal will need to establish customer lists. There is bound to be confusion and
possibly some customers missed initially due to developing such a list from scratch.
However, any new hauler would be faced with this problem and the Company is
already working on a commercial account database.
The Company is looking at billing systems to be used in Tustin. There is no current
system in place to handle required billing. There may be problems to work out with the
new system, once it is established.
April 25, 2000 Page 3-4
Implementation of Automated Collection
In its proposal, Federal stated that it intends to initiate automated cart service Citywide
at the start of the contract term, beginning distribution and servicing of the carts up to
two weeks prior to the October 1, 2000 start date. Collections prior to the franchise
commencement date will be provided free of charge.
Distributing carts and phasing in automated service over a two week per!od, as Federal
has proposed, would be very difficult to coordinate and could lead to more transition
problems than a longer phase in period would. During Federal's interview, it proposed
an alternative implementation strategy that we believe is better than the one in its
proposal.
Federal's alternative proposal would be to phase in automated service over the first 180
days of the contract. No conversions would take place during the first 60 days to allow
the Company more time to focus on commercial services. Approximately 60 days after
service initiation, the first 25% of the City would be converted to automated service,
and each 30 days thereafter another 25% of the City would be converted. Federal will
attach a 300-gallon cart to the flipping arm of their automated collection vehicles in
order to fac. ilitate manual collection prior to conversions. A second crew member will
be added to the vehicles on manual routes. One person will empty the customer's cans
into the 300-gallon cart and the other will drive and flip the contents of the cart into the
body of the truck, using the automated flipping arm, when the cart is full.
Federal's experience in .initiating new automated service consists of adding automated
recycling carts and service to established automated refuse service at Vandenburg Air
Force Base in 1992. Federal did assemble and distribute the new recycling carts itself.
The cart manufacturer shall assemble Tustin's carts.
Bin Service
Federal has proposed to collect Waste Management's bins when it delivers its own
containers. This would ensure that customers are never without bins and this method
would likely require a lower level of coordination between the incoming and outgoing
haulers. Waste Management would have to be willing to work with Federal on this
matter and allow Federal to move its bins, but this would likely save Waste
Management time. Federal's experience has primarily been servicing commercial and
industrial customers and therefore should be capable of.the procedure.
Labor Demand
Federal will have a temporary increase in its need for drivers in Tustin during the
transition. The Company intends to temporarily cease certain operations and shift
drivers from other operations to assist during this period. Due to the type of business
Federal typically conducts, construction and other temporary services, this may be
possible. Federal indicated that even drivers used only during the transition would
have the necessary experience. Federal will likely use the drivers with experience
collecting at the closed military bases.
April 25, 2000 Page 3~5
Public Information, Education, and Recycling Promotion
Servicing TuStin requires ongoing public education, including contact with all
customers by mail, contacting multi-family and commercial customers and HOA's in
person periodically, and presenting programs at City events. Federal has limited
experience in public education. According to references at military bases serviced by
Federal, the base housing office handles most of the notification and service issues with
the individual service recipient. The company has provided samples of flyers used at
Vandenburg, however these were not as high quality as those required for the City of
Tustin.
Federal intends to use an outside advertising agency, TH&M, in order to produce
public education materials, a web site, and a video to meet public education
'requirements. Provided that the City closely guides Federal in these matters, and that
Federal uses a competent outside production company for all materials, the City should
receive the public education materials required. Federal is' establishing a web site,
which may assist in disseminating information to the public.
Presentations and booths at events are areas in which Federal appears to lack significant
experience and has not directly addressed how they will be handled.
Customer Service
Federal has identified a new customer serviCe representative it plans to hire to be in
charge ol handling the City's needs as well as additional office staff. The Company also
is dedicating new phone lines and an 800 number for Tustin customers. However, a far
greater volume of calls and service requests will come in during the transition than
during the remainder of the contract. Federal has identified three current employees it
intends to have assist in customer service during the transition, along with the new
representative mud two new hires. As a small company, Federal does not have staff to
temporarily re-assign from another city's service desk to service Tustin, and may not be
dole to spare these three reassigned employees from their dispatching and other posts.
AB 939 Revorting and Diversion Requirements
Federal had no experience with AB 939 reporting, but is hiring an experienced
consultant to handle AB 939 issues. Federal has the consultant on retainer for onlY 8
hours per month, with an hourly rate for additional hours. In order to meet all
reporting requirements and diversion goals, the Company will require this consultant
to work additional hours. At Federal's interview, the consultant assured the City that
he could work additional hours as needed.
·
Financial Resources and Stability
Federal has provided financing commitment letters from financial institutions and
Volvo, indicating that financing for the required new vehicles and containers will be
available.
April 25, 2000 Page 3-6
Federal has submitted reviewed financial statements for the nine-month period ending
December 31, 1999.
For the 9 months ended December 31, 1999, Federal's annualized revenues were
approximately $4.7 million. This time period includes revenues from both now closed
military bases and a large new construction waste customer. The Tustin contract would
represent an 89% increase in Federal's current annual revenues. Financial institutions
have already determined that Federal's financial condition is satisfactory enough to
confirm financing.
Based on Federal's submitted financial statements, we calculated the following ratios
for the ,nine months ended January 31, 1999 that indicate the Company's current and
longer-term ability to meet financial obligations. All ratios were consistent with
industry averages:
Current assets to current liabilities 1.3
Total liabilities as a perCentage of total assets 70%
Pre-tax profit margin as a percent of revenue 4%
Information Regarding Past and Pending Litigation
Federal stated in its proposal that:
· There are no civil actions with government agencies now pending or which have
occurred in the past 10 years; and,
· There are no criminal legal actions now pending or that have occurred in the past 10
years against any key personnel described in the proposal, Federal, or any affiliated
company.
April 25, 2000 Page 3-7
ATTACHMENT 4
EVALUATION OF WASTE MANAGEMENT'S PROPOSAL
The attachment describes Waste Management and the services it proposed.
Company Description
Waste Management is the largest solid waste company in the nation and has a strong
local presence as well. Waste Management is the current service provider for the City
of Tustin as well as many other cities in Orange County, including Orange, Lrvine, Santa
Aha, Lake Forest, Laguna Beach, La Habra, Rancho Santa Margarita and Mission Viejo.
TheCity of Tustin is serviced from WM's local office located at 1800 South Grand
Avenue, Santa Aha, California 92705.
References
WM's most important reference is the City of TUstin, and the City has expressed
satisfaction with WM's service. WM's most recent service transition experience is in the
city of Orange, where WM purchased Orange Disposal, a small privately-held company
that b~ad the franchise agreement, and then converted the all residential customers from
manual refuse collection to a three cart automated collection system. After initially
experiencing expected transition challenges during the roll-out, the programs are now
in place and appear to be working well.
Summary of Collection Services Proposed by Waste Management
Single Family Refixse Collection
As reqUired by the RFB, WM has proposed to provide three cart automated service to
all single family dwelling traits where it is operationally feasible. WM intends to
deliver three automated carts for the collection of refuse, recyclables, and yard waste to
all single family customers. Customers shall have the choice of 96, 65 or 32-gallon
refuse carts. The contract also permits customers to obtain additional refuse carts for
$4.00 per month, billed semi-annually by WM. Carts may also be exchanged once
during the implementation and once annually thereafter at no charge.
Refuse will be collected two days per week, with approximately 1,100 homes collected
on each route each day. These refuse mutes will collect between 19 and 22 tons per day.
The contract requires that refuse, recydables, and yard waste collection all occur on the
same collection day for individual customers. -
Where automated collection is not operationally feasible, WM will collect refuse
manually.
Single Family Recycling Collection
WM 4411 provide automated refuse collection customers with automated recycling
service. Customers will have the option of 96 or 64-gal!on recycling carts, and
April 25,-2000 Page 4-1
additional recycling carts are available free of charge to customers who regularly fill
their recycling cart.
Single Famih~ Yard Waste Collection
WM will provide automated refuse collection customers with automated yard waste
service. Customers may choose from a 96 or 64-gallon yard waste cart. The contract
requires that free additional yard waste carts be made available to those customers who
regularly fill their yard waste cart. Tied bundles will also be collected.
Multi-FamilY and Commercial Refuse Collection
WM will offer tv'o, three, and four cubic yard bins for commercial and multi-family
refuse collection. WM maintains a large inventory of bins at WM's Santa Aha yard,
where bins will be repaired and cleaned.
Multi-family customers and small volume commercial and industrial customers may
request automated ~three cart Service, or continue to receive manual refuse Collection
service.
For multi-farcJ2y customers with curbside collection where automated service is not
operationally feasible, WM will collect refuse m .anually.
Multi-Family and Commercial Re~clables Collection
WM will provide both bins and carts to multi-family customers for the collection of
recTclables. WM management offers to visit and survey commercial customers and
supply bins and 96-gallon cartS as needed. The contract requires that these services be
offered at no additional cost.
Multi-FamilY and Commercial Yard Waste Collection
Automated yard waste collection, using 96 or 64-gallon carts, shall be offered to all
multi-family and commercial customers at no additional charge. Additionally, yard
waste bins shall be made available to those customers that require them.
Ci~. Facilities Collection
WM offered to provide refuse collection service for City facilities plus a 40-cubic yard
r011-off box for green waste at the City yard for no additional charge, even though the
RFB did not require that such services be provided at no additional charge.
Waste Mana~ement's Operatin~ Processing, and Disposal Facilities
Operatin~ Yard/Q.f-tices
Maintenance will be perfm'med and equipment will be stored at WM's yard located at
1800 S. Grand Ave., Santa Aha. .
·
April 25, 2000 Page 4-2
RecvclabIe Processing Facilities
Recyclables will be delivered to Sunset Environmental, WM's material recovery facility
in Irvine. WM guarantees capacity for all Tustin recyclables delivered at its own facility
through the term of the contract. From Sunset Environmental, recyclables will be
transported to Potential Industries, Inc. in Wilmington. WM's contract with Potential is
effective for five (5) years with three (3) one-year options. WM does not pay Potential a
tipping fee and the contract does not provide for a rate increase.
Yard Waste Processing Facilities
WM will deliver yard waste to the Tierra Verde Industries green waste processing
facility, located in the unincorporated area near Irvine. According to WM's bid, Tierra
Verde has guaranteed Waste Management of Orange County capacity for Tustin yard
waste for the duration of the contract at $22.00 per ton. There is no provision in the
agreement for rate 'increases.
DisvosaI Site
Residential refuse, and refuse collected from commercial/industrial customers that
have a functioning source separated recycling service will be taken to either the Frank
Bowerman landfill or to WM's Sunset Environmental transfer station.
Mixed waste processing will occur at Sunset Environmental. Waste Management will
guarantee a minimum diversion of 15% from the mixed waste processing of waste from
multi-fm-nily, commercial and industrial customer's who do not parkicipate in the
separate recycling program.
Imvlementation Plan
WM indicates a desire for a ~[uly 1, 2000 start date for the Agreement. This time
schedule was based on several tasks beginning in April. Therefore, WM's schedule of
implementation could be delayed if a contract is not approved before May 2000, but.
implementation should still be achievable before the required October 1, 2000 start date.
Customer Service and Billing
WM services several other Orange County cities out of the same office. As staff at this
office has assisted other cities' customers through the implementation of automated
service, the staff is already knowledgeable about service needs. Therefore, WM should
be able to respond to the temporary increase in calls expected from the transition to
automated service with the existing labor pool. WM is already billing commercial and
industrial customers. Residential customers are currently, and will continue to be,
billed by the City.
Imvlementation qf Automated Collection
WM's proposal states that it has changed over 77,000 residential customers throughout
Orange County from manual to automated refuse collection during 1999 alone. WM's
April 25, 2000 Page 4-3
plans to begin delivery of carts no later than October 1, 2000 and to complete the
transition by January 1, 2001.
Bin Service
WM will primarily need to focus on distributing recycling,bins and adjusting service
levels based on its sales visits and service requests, as WM s refuse bins are already in
place.
Public Information, Education, and Recycling Promotion
WM will provide an initial mailer explaining new services, qua2erly and annual
maile.rs to keep customers updated on services, corrective action notices for improper
use ot services, an educational video, and public outreach, as required by the contract.
WM will also distribute a "how-to" brochure along with the automated carts, and a
special mailing to commercial customers explaining late fees and special service charges
and encouraging recycling. WM included samples of public education materials used
in the city of Orange and in the unincorporated areas of Orange County that were of the
quality required for the City of Tustin.
Customer Service
WM's Santa Aha office is open from 8:00 AM to 5:00 PM, Monday through Friday, and
8:00 AM to 12:00 PM on Saturday. WM has forty customer service representatives and
administrative personnel available during the week to service all Orange County
customers. As WM provides automated collection to five other Orange County cities
and surroUnding unincorporated areas, its staff should be experienced handling
customer services issues associated with implementation of automated service.
AB 9S9 Reporting and Diversion Requirements
Waste Management intends to continue to utilize the services of Dr. Eugene Tseng .tO
perform solid waste generation and disposal characterization studies. Dr. Tseng will
conduct armual business audits and educational outreach.
Financial Resources and Stability
WM estimates it ~dll need $3.5 million for new trucks and carts to service the City. WM
intends to fund th~ from either funds generated by WM's cash flow or by borrowing on
credit lines. Several substantial credit lines are listed, and WM's financial statements
indicate more than sufficient cash flow to meet these needs.
WM has provided has provided audited financial statements for the period ended
December 31, 1998. WM's revenues for this period were approximately $12.7 billion.
The Tustin contract would represent less than one-tienth of one percent of WM's annual
revenue.
Based on WM's financial statements, we calculated the following ratios for the year
ended December 31, 1998 that indicate the Company's current and longer-term ability
April 25, 2000 Page 4-4
to meet financial obligations. Although WM has significant financial resources, its
financial strength has decreased as a result of weaker operating results by the parent
company. In August 1999, Standard & Poors (S&P) provided WM with a 'BBB'
corporate credit rating. According to S&P, "An obligation rated 'BBB' exhibits adequate
protection parameters. However, adverse economic conditions or changing
circumstances are more likely to lead to weakened capacity of the obligor to meet its
financial commitment on the obligation."
..
~..::: .:;~...:'.'.: ::~.~ AVerage*
Current assets to current liabilities 0.9 1.0
Total liabilities as a percentage of total assets 80% 68%
__
Pre-tax profit margin as a percent of revenue -5.5% j 6%
* Based on data for 271 refuse companies surveyed by Robert Morris & Associates.
Information Regarding Past and Pending Litigation
WM'noted 17 matters that were active, pending, or closed in the past 10 years that met
the disclosure requirements of the RFB. These are documented in Exhibit 1 of WM's
proposal.
April 25, 2000 Page 4-5
EXHIBIT D
FRANCHISE AGREEMENT