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Council Agenda Item <br />______________________________________________________________________ <br />MEETING DATE: <br /> July 23, 2008 <br />AGENDA ITEM TITLE: <br /> Single Stream Recycling Vendor Contract <br />AGENDA SECTION: <br /> Consent <br />CAN THIS ITEM BE RESCHEDULED?: <br />Yes <br />BACKGROUND REVIEW: <br />University City requested competitive bids for the sale of residential <br />and commercial mixed recycling materials collected by University City and delivered to the <br />contractor for a 12 month-period to begin on or around 8/1/08, extendable for 2 additional years. <br />Bidders could provide their bid on either a market unit price or a guaranteed 12-month fixed unit <br />price. The bid results for the recycling revenue unit pricing are as follows: <br />COMPANY FIXED 12-MONTH ANNUAL ROUNDPRICING DISTANCE TOTALESTIMATED <br />UNIT MARKET RATE TONSTRIPPOINTS POINTS POINTSANNUAL <br />PRICE PER TON (ESTIMATED) DISTANCE REVENUE <br />870 30 100 <br />1. Smurfit No Bid <br />$33.21 2,500 $83,025 <br /> Stone <br />$25.00 2,500 $62,500 <br />2. Resource $9.25-$30.55 30 64 872 <br />Management Avg. = $18.20 <br />3. QRS $21.06-$37.04 34 37 845 <br />$19.16 2,500 $47,900 <br />Recycling Avg. = $27.78 <br />RECOMMENDATION: <br />It is our recommendation to accept the responsive bid submitted by <br />Smurfit Stone. Smurfit Stone offered a 12-month fixed unit price of $33.21 per ton and a volume <br />incentive of $5.00 per ton premium on volumes above 300 tons in a given month. The round trip <br />travel distance is approximately 8 miles. It is the best value because the fixed price bid is the <br />highest and offers the city protection against a market downsizing, and travel distance is the <br />shortest which will save on related vehicle fueling and maintenance costs. <br />1. Smurfit Stone travel distance is 8 miles round trip. Fixed unit price, plus $5/ton for volumes over <br />300 tons in any month. <br />2. Resource Management travel distance is 30 miles round trip. Market monthly pricing ranges from <br />$9.25 to $30.55 per ton, averaging $18.20/ton a month based on a 12-month period of activity. <br />3. QRS Recycling travel distance is 34 miles round trip. Market monthly pricing ranges from $21.06 <br />to $37.04 per ton averaging $27.78/ton a month based on a 12-month period of activity. Fixed unit <br />price, plus $10 a truckload which averages $1.66 per ton (based on 6 tons/load) and $1/ton over 300 <br />tons after 2 consecutive months. <br /> <br />