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Request from the Department of Public Works Business Manager to execute a five-year contract for yard waste management services with Blue Ribbon Organics in the amount of $191,525
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Submitted by:
Kristen Kilsdonk
Department:
Department of Public Works
A. Issue
The City is currently under contract with Blue Ribbon Organics to provide material processing and compost services for residential yard waste, leaves and forestry material. The contract expires at the end of 2023, so a new contract is needed at this time.
B. Background/Options
Due to the expiration of the current material management contract and in preparation for the 2024 budget, a request for proposals (RFP) was issued asking for qualified contractors to submit proposals for material management for five years. Blue Ribbon Organics was the sole contractor to provide a proposal. The proposal provided by Blue Ribbon Organics is for a fee of $191,525 for the first year which encompasses all costs for processing residential yard waste materials collected and brought to the Drop Off Center, leaves, forestry pruning and removals, and street sweeping and catch basin screening. Blue Ribbon Organics is a local company and has provided quality service, communication, and responsiveness to City needs for the last five years. The new contract proposal has increased 15-19% over the current contract, however the newly proposed fees have been brought in line with current increased fuel and equipment costs. Based on the quality offered with the bid, delivery terms, and service reputation of the bidder, we are recommending that the City enter into a five-year contract with Blue Ribbon Organics for $191,525. The contract would be effective January 1, 2024, if approved. We are seeking approval of the contract now in order to guarantee the cost and have the contract prepared and in place for the new term.
C. Strategic Plan (Area of Focus)
Quality of Life
D. Fiscal Impact
Actual costs will vary dependent upon the quantity of materials that are processed. Utilizing our assumptions and historical averages we anticipate the new contract cost will result in an increase of $80,405 over the current contract and budget cost. This increase will be accounted for in the annual budget approval process through cost savings elsewhere in departments’ budgets.
E. Recommendation
Authorize the execution of a five-year contract with two one-year renewal options with Blue Ribbon Organics to provide material processing and compost services for residential yard waste, leaves and forestry material beginning January 1, 2024 for $191,525.