2626 Courtland Street Duluth, MN 55806-1894 phone 218.722.3336 fax 218.727.7471 www.wlssd.com Western Lake Superior Sanitary District INVITATION FOR BIDS RECYCLING SERVICES FOR THE MATERIALS RECOVERY CENTER WLSSD BID #1363 Sealed bids for Recycling Services at the Materials Recovery Center (MRC) will be received by the Western Lake Superior Sanitary District (WLSSD) until the BID CLOSING time of 10 am, August 31 st, 2017 whereupon the bids will be publicly opened and read aloud. Bids received after the bid closing time will be returned unopened. Each bid must be in a sealed envelope and clearly marked: Recycling Services for the MRC-WLSSD Bid #1363 and addressed to: Betsy Woller, Buyer Western Lake Superior Sanitary District 2626 Courtland Street Duluth, MN 55806 Copies of this bid may be obtained by either calling 218-740-4794 or through the District s website at www.wlssd.com. Questions pertaining to the content of this bid should be directed to Heidi Ringhofer, SWS Director 218-740-4817, or e-mail heidi.ringhofer@wlssd.com. WLSSD reserves the right to reject any or all bids and to select the bid deemed to be in the best interest of the organization. No bidder may withdraw their bid within 60 days of the closing date. 1.0 BACKGROUND INFORMATION Recyclable materials (see below) are dropped off by local residents at the Materials Recovery Center (MRC). Mixed fiber and mixed rigids are collected in 6-yard containers and corrugated cardboard is accepted in an open top 30-yard roll-off container. A contracted waste hauler then collects and transports this material. Recyclable materials collected consist of the following: Mixed paper, including: Junk mail, newspaper, computer & office paper, pasteboard, magazines, catalogs and other related materials. Rigid materials including: Steel cans, aluminum beverage containers, glass bottles and jars (clear, brown, blue and green) and plastics 1 through 7. Corrugated cardboard Bid #1363 1
2.0 SCOPE OF SERVICES The WLSSD seeks to contract with a local hauler to provide containers, collection and transportation of recyclable material at the MRC. It is the goal of the WLSSD to recycle 100% of all products collected. The contract will include a Revenue Sharing agreement with the selected hauler for credit to be rebated on materials collected that the hauler sells for profit; the terms of which are outlined in Section 2.2. The hauler must provide the required containers used to collect recyclable materials together in a mixed stream fashion. The mixed stream process will consist of three sorts: Fibers -including mixed paper and newspaper Rigid materials -including glass, aluminum, tin and plastics (#1-#7) Corrugated Cardboard Any recycling containers provided by the contractor must have ergonomically designed hard covers, except where noted, and tie downs or a mechanism to keep open while being used. Extra containers may be required in order to have empty ones readily available when full ones are waiting to be emptied or hauled away. 2.1 Proposed Materials Recovery Center (4587 Ridgeview Rd, Duluth) Container set up: Material Mixed Fibers- ( mixed paper and newspaper) Mixed Rigid materials- (glass, aluminum, tin and plastics) Corrugated Cardboard Container Requirements 6 Ea. 6 yard containers with cantilever covers 6 Ea. 6 yard containers with cantilever covers 2-30 yard roll off open top container 2.2 Revenue Sharing In addition to the agreed upon contracted, monthly price of services, the selected hauler will, on a monthly basis, rebate an amount to the WLSSD on all materials collected and then sold by the hauler for profit. The rebate will be a credit off of the hauler s monthly invoice to the WLSSD. The agreed upon, contracted, monthly price for services will not be changed at any time because of any credit or lack of credit. APPENDIX A provides all Bidders with historical data on the total weight and containers emptied in 2016, allowing Bidders to estimate potential rebates to the WLSSD. Bidders will complete both Bid Form-part B, and Bid Form-part C in order to calculate the potential values of the Revenue Sharing Agreement. Bidders will indicate the market index used to calculate potential revenues. Bid #1363 2
The WLSSD fully understands that net revenues may equal zero at times due to poor markets. However, the WLSSD will not at, any time, be invoiced for costs above and beyond the agreed upon, contractual, monthly processing/hauling costs or other costs as listed in the submittal bid. Thus, regardless of a rebate or not, the agreed upon cost for services to WLSSD will not change. Each individual waste stream (mixed fibers, mixed rigids, and corrugated cardboard) shall be evaluated for rebates individually. When hauler is calculating the rebate for each individual waste stream, if that particular waste stream had a negative amount, it cannot be used to offset the revenue of another waste stream. Lastly, a rebate for an individual waste stream can only be applied if there is positive revenue, not if there is a negative balance for that individual waste stream. Recyclable materials collected by the hauler must not be contaminated or damaged in a manner which will render these products unmarketable. The hauler must take all reasonable precautions to minimize breakage or damage of materials. Materials collected shall not be deposited in the solid waste stream. In certain instances and by request of the hauler, the WLSSD may waive this requirement by means of written authorization. The WLSSD or hauler may propose other revenue sharing commodities and corresponding proposed pricing formula, at any time during the duration of the contract. The parties shall enter into negotiations in good faith and any new revenue sharing agreement shall be reduced to writing in the form of an amendment to the contract. 3.0 GENERAL TERMS AND CONDITIONS 3.1 Deviations and Alternatives Bidders are expected to adhere to the stated specifications and General Terms and Conditions. Any deviations or alternatives should be clearly stated. 3.2 Frequency of Collection Collections will be requested by WLSSD on an on-call basis only or as arranged between the hauler and WLSSD. Response time must be within 24 hours of calling during regular business days. If rolloffs are utilized, empty roll-off containers will be dropped when full ones are picked up to allow for continuous recycling service during operating hours. Pick-ups will be requested by authorized representatives only. Authorized District employees may request additional pickups outside of normal business hours. Names of authorized representatives will be provided to the hauler. 3.3 Service Hours of Collection All scheduled work is to be performed between the hours of 7:00 am to 4:00 pm, Monday through Friday and should not interfere with facility operating hours. 3.4 Annual Estimated Quantities Bid #1363 3
The 2016 amounts of recyclable materials was 270 tons (88.5 tons of mixed fiber in 6 yard containers, 40.5 tons of rigid material in 6 yard containers, and 141 tons of corrugated cardboard in 30 yard containers). The Container pick up numbers for the 6-yard container and roll-off system are in APPENDIX A. These amounts, while based on accurate historical evidence should not be construed as exact and may fluctuate either upward or downward. The WLSSD will not guarantee any specific quantity or weight during the term of subsequent agreement. 3.5 Safe Work Practices Safety is of paramount importance. The hauler shall be responsible for the safety of its employees and safe conduct of all work performed and shall take all necessary precautions for that purpose. The hauler shall be solely responsible for any violation of safety, health or DOT standards committed by its employees and shall immediately remedy any condition giving rise to such violations and shall defend and hold the Western Lake Superior Sanitary harmless from any penalty, fine or liability in connection thereof. The hauler and its employees shall comply with the WLSSD personal protective equipment (PPE) policy while operating on District facilities. Basic PPE consists of hardhat, steel toed shoes, safety glasses and reflective, Class 2 ANSI vest. 3.6 Certificate of Insurance The selected hauler shall not commence any work under this Agreement until a Certificate of Insurance is provided to the WLSSD showing evidence of coverage and payment of current premium. The WLSSD must be notified thirty (30) days prior to any change in coverage or cancellation of policy. 3.7 Reporting The hauler will be required to provide the WLSSD with a monthly Recycling Report in an Excel spreadsheet, itemizing volume and weight of all materials collected during the month. This report should be sent out the same time as the monthly billing statement to swreports@wlssd.com. 3.8 Billing Billing statements will be on a monthly basis and only for services actually rendered. These statements must indicate location, dates, number of containers collected and weight of recyclable material at each site; at the rates specified in the Agreement. Any unscheduled stops approved by the WLSSD and made by the hauler must also be indicated. Payments will be made to the hauler within 30 days following receipt of invoice. Revenue Sharing rebates shall be reflected as credits on the WLSSD invoices. A Revenue Sharing Worksheet showing the WLSSD Percent Share (credit) per material category will accompany all Invoices. Invoices should be emailed to apinvoices@wlssd.com. Once notified by the WLSSD, the hauler will have 14 days to rectify any billing discrepancies. 3.9 Term of Agreement It is the intent of WLSSD to enter into a three (3) year Agreement with the selected hauler, commencing on November 1, 2017. This Agreement may be extended by the WLSSD for two optional one (1) year terms with written notice by the WLSSD 60 days prior to expiration of initial Bid #1363 4
term. During the term of this agreement, should the Contractor fail to perform these services as described in the Agreement, the District may terminate such Agreement with thirty (30) day written notice. 3.10 Bid/Performance Bonds All bids must be accompanied by a certified check, cashier s check or bid bond in the amount of $5000.00 and made payable to the Western Lake Superior Sanitary District which will be returned upon an agreement being signed. Upon award the chosen hauler will furnish a performance bond in an amount at least equal to the and agreed upon estimated Contract Price for the duration of the Agreement Terms as security for the faithful performance and payment of all of the hauler s obligations under the contracted agreement. This bond shall remain in effect until the completion of the first year of service, upon which it will returned. 3.11 CPI Price Adjustment The price for collection and hauling will remain firm for the first year of the Agreement. For the remaining two years, the price for this service will be adjusted accordingly by the Consumer Price Index (CPI) for the Upper Midwest as determined by the Federal Reserve Bank of Minneapolis, or 3% whichever is lower. CPI does not apply to the processing costs. Bid #1363 5
ALL Forms and Worksheets must be completed/submitted by the Bidder 4.0 BID FORM-Part A The undersigned has read and understands the nature of the services requested and accepts the Specifications and Terms and Conditions stated herein. Submit Bid Forms A & B (spreadsheet) to the WLSSD on or before, 10 am, August 31 st, 2017. Name of Company Street Address City State Zip Code Email Address Phone fax Authorized Representative Title Signature Date Materials Recovery Center (See Section 2.0 for details) Material Container Size & Quantity Price for Each Container Per Pick-up* Mixed Fibers- ( mixed paper and newspaper) 6 Ea. 6 yard container with cantilever cover Mixed Rigid materials- (glass, aluminum, tin and plastics) 6 Ea. 6 yard container with cantilever cover Corrugated Cardboard 2-30 yard roll off container *Price to include hauler provided container, collection and transportation of product. Bid #1363 6
APPENDIX A Listed below are total weights of materials collected from the WLSSD Materials Recovery Center (MRC) in 2016. Month Mixed Fiber 6 Yard Container Pick Ups 2016 MRC (per ton) Rigid Materials 6 Yard Container Pick Ups Corrugated Cardboard 30 Yard Container Pick-Ups Total Tons Jan 6.81 10 3.13 10 9.85 5 19.78 Feb 6.81 9 3.13 9 9.85 3 19.78 Mar 10.58 13 4.04 13 7.46 5 22.08 Apr 8.36 13 3.73 13 10.57 7 22.66 May 8.87 18 3.84 13 16.87 9 29.57 Jun 11.68 20 6.08 17 18.43 10 36.19 Jul 3.84 13 3.53 15 12.70 7 20.07 Aug 7.13 15 1.94 15 15.01 8 24.08 Sep 8.29 16 3.08 16 12.97 6 24.34 Oct 6.64 11 2.54 13 11.14 7 20.32 Nov 4.74 10 2.72 16 8.12 5 15.58 Dec 4.74 14 2.72 10 8.12 5 15.58 Total 88.46 162 40.47 160 141.08 77 270.01 Bid #1363 7
BID FORM PART B All forms/spreadsheet spaces must be completed/filled. MRC Revenue Sharing Worksheet Based on 2016 Historical Data Material Steam Mixed Fiber Index (s) Used: Month Tons-2016 January 6.81 February 6.81 March 10.58 April 8.36 May 8.87 June 11.68 July 3.84 August 7.13 September 8.29 October 6.64 November 4.74 December 4.74 Total 88.46 Index Value/Ton Processing Cost/Ton Percent Share WLSSD Share Material Steam Rigid Material Index (s) Used: Month Tons-2016 January 3.13 February 3.13 March 4.04 April 3.73 May 3.84 June 6.08 July 3.53 August 1.94 September 3.08 October 2.54 November 2.72 December 2.72 Total 40.47 Index Value/Ton Processing Cost/Ton Percent Share WLSSD Share Bid #1363 8
BID FORM PART B (Continued) All forms/spreadsheet spaces must be completed/filled. MRC Revenue Sharing Worksheet Based on 2016 Historical Data Material Steam Corrugated Cardboard Index (s) Used: Month Tons-2016 January 9.85 February 9.85 March 7.46 April 10.57 May 16.87 June 18.43 July 12.70 August 15.01 September 12.97 October 11.14 November 8.12 December 8.12 Total 141.08 Index Value/Ton Processing Cost/Ton Percent Share WLSSD Share BID FORM PART C Bidders must fill in columns showing proposed information and rates Material Rebate Y/N Market/Index Proposed Tons* Processing Cost/Ton Percent Share Mixed Fiber N/A Mixed Rigids N/A Corrugated Cardboard N/A Total Share *No number needed as this will vary per month N/A Bid #1363 9