Daly City City Council November 17, 2014 HF&H Consultants, LLC - - PowerPoint PPT Presentation
Solid Waste RFP Process and Evaluation Daly City City Council November 17, 2014 HF&H Consultants, LLC November 17, 2014 Overview 1. Collection proposals 2. Post-Collection proposals and combined 3. Collection and diversion services 4.
November 17, 2014
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See Report pages 5-7 and Figures 2 and 4 for added detail. Managing Tomorrow’s Resources Today 2
HF&H Consultants, LLC November 17, 2014
Post collection proposals: transfer (2), processing (7), and disposal proposals (3). Selected based on price and, where price was not significant, contracting arrangements.
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See Report pages 5, 8, and Figures 3 and 7 for added detail.
Collection Contractor Post-Collection Services Allied Waste Services
Recology, Inc.
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Allied Waste Services Recology Single Family*
(including food scraps) collection
(including food scraps) collection
no charge Multi-Family**
complexes (under 50 units) and condominiums with centralized collection
(over 50 units)
complexes (under 50 units) and condominiums with centralized collection
use for landscaping
Commercial
and expanded to targeted organics-generating businesses
expanded to targeted organics-generating businesses Other
collection
*Includes multi-family properties with individual, per-unit service. **Includes larger apartments and other multi-family complexes with centralized collecti
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Allied Waste Services Recology Start-Up
Advertising and Print Materials
Delivery of Special Containers
Advertising and Print Materials
Kick-Off Event
Ongoing
Scheduled Customer Correspondence
As-Needed Customer Correspondence
Sector-Specific Visual Aids and Educational Materials
Online Presence
Scheduled Customer Correspondence
As-Needed Customer Correspondence
Sector-Specific Visual Aids and Educational Materials
Online Presence
Other
Community Engagement
School Programs
Community Engagement
School Programs
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Allied Waste Services Recology Daly City Residential
Commercial
341 education and enforcement with multi-family and commercial customers.
ensure recycling containers are onsite and being utilized.
to increase recycling and reduce and prevent waste.
participation in food scraps recycling.
and encourage implementation of food scraps recycling. General
businesses to calculate diversion rate, associated greenhouse gas reductions and cost savings. Residential
along with new outreach material to increase recycling.
material. Commercial
waste/organic accounts with compactors. General
increased levels of service will lead to additional recyclables capture.
mattresses, Curbside Motor Oil, Bulky Goods, Oil Filters, Environmental Day Material, Cooking Oil, CFL Light Bulbs, Cell Phones, Reusable Items-SVPD Trailers for large MFD‘s.
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Issue Allied Recology Start Date February 1, 2016 February 1, 2016 Base Term 10 years 15 years Extensions 3 years at City discretion 3 years at City discretion Vehicles CNG Diesel, phasing to CNG Performance Standards/Penalties Quality of service for collection and customer service Quality of service for collection and customer service Diversion Guarantees 44% of collected material. Dates for reaching diversion goal, with penalties: 2017 - 30% 2018 - 33% 2019 - 36% 2020 - 40% 2021 - 43% 49% of collected material. Dates for reaching diversion goal, with penalties: 2017 - 33% 2020 - 42% 2023 - 45% 2025 - 48% Labor Requirements Compliant Compliant Cost Controls Defined “allowable costs”. Protection against significant cost increases due to Contractor’s faulty assumptions. Defined “allowable costs”. Protection against significant cost increases due to faulty assumptions.
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On an annualized net present value basis, Recology averages $500,00 /year less than Allied.
Allied Recology Current 1 Total Collection Cost
11,594,268 $ 10,287,936 $ N/A
2 Post Collection Cost
2,591,884 $ 3,322,549 $ N/A
3 Total Contractor Compensation
14,186,152 $ 13,610,485 $ N/A
4 Preliminary Revised City Fees
N/A
5 Mussel Rock LF Fee
400,000 $ 400,000 $ N/A
6 Mussel Rock Transfer Decommissioning Fee
N/A
7 Accounting Clerk
94,320 $ 94,320 $ N/A
8 Franchise Fee (13.5%)
2,291,172 $ 2,201,328 $ N/A
9 Total Fees
2,785,492 $ 2,695,648 $ N/A
10 Total Revenue Requirement, 2014 $
16,971,644 $ 16,306,133 $ 16,694,278 $
11 *Total Revenue Requirement, 2015 $
16,971,644 $ 16,306,133 $ 17,339,197 $
12 Variance ($2015) Proposals to Revenues at Current Rates
N/A
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Company Rate Period 1 (Years 1 and 2)* Rate Period 2 (Years 3 and 4) Rate Period 3 (Years 5 and 6) Allied No Reserve With Reserve 4% or 6% Review of allowable costs, and up to 10% adjustment for the two years, plus changes in City fees or changes in law. 6.0% CPI Recology No Reserve With Reserve 0% or 6% 6.5% (CPI plus 0,5% for CNG phase- in) Review of allowable costs, and up to 10% adjustment for the two years, plus 2.2% for CNG phase-in, and changes in City fees or changes in law. * Assumes CPI equals 3 percent. Rate Period 1 adjustments also reflect actual labor increase per labor agreements and any change in depreciation from proposed, to the extent they exceed CPI.
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– Wishes to receive diversion programs designed to achieve higher diversion levels – Wishes to draw on successful performance in a comparable urban environment (i.e., San Francisco) – Pay less – Change contractors and disposal sites
– Is satisfied with Allied’s past performance (supplemented by an added Municipal Services Manager contract management and contract compliance) – Wishes to avoid changing contractors and disposal sites – Is willing to accept lower levels of diversion – Is willing to accept higher costs
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Mussel Rock Transfer to Ox Mussel Rock Transfer to Ox (2015 Escalation) Allied's Own Rate Allied's 3rd Party Rate Transfer Blueline n/a n/a n/a $12.39 $12.39 Transport Blueline n/a n/a n/a $14.22 $39.94 Transfer Subtotal n/a n/a $0.00 $26.61 $52.33 Contractor Rate $37.53 $39.11 $33.77 $68.67 $13.62 Fees - County $9.83 $9.83 $9.83 $9.83 $6.48 Fees - State $1.40 $1.40 $1.40 $1.40 $1.40 Fees-Subtotal $11.23 $11.23 $11.23 $11.23 $7.88 Disposal Subtotal $48.76 $50.34 $45.00 $79.90 $21.50 TOTAL COST (per ton) $48.76 $50.34 $45.00 $106.51 $73.83 Ox Mountain Current Rates Ox Mountain Proposed Potrero Hills
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Current 32 gallon rate Cumulative Rate Impact Average Impact Allied 25.58 $
25.04 $ 6.0% 26.55 $ 6.0% 28.14 $ 6.0% 29.83 $ 14.2% 2.4% Recology 25.58 $
24.05 $ 6.0% 25.49 $ 6.5% 27.14 $ 8.2% 29.37 $ 12.9% 2.2% Reduction Based on Proposal Price Rate Period 1 Rate Period 2 Rate Period 3
Company and Term Annualized Net Present Value Cost
Allied 10 Years + 3 Year Extension $14,546,000 Recology 15 Years + 3 Year Extension $14,033,000
Net Annual Savings $513,000