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CONTRACT K-1617-45: A CONTRACT BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND STERICYCLE ENVIRONMENTAL SOLUTIONS, INC., D/B/A CHEMICAL RECLAMATION SERVICES, L.L.C., IN THE AMOUNT OF $78,000 TO CONDUCT THE ANNUAL HOUSEHOLD HAZARDOUS WASTE EVENT ON NOVEMBER 5, 2016 AND PERFORMANCE BOND B-1617-14.
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BACKGROUND: The City of Norman has been conducting an annual household hazardous waste collection event since 1999. The City Council appropriated $86,000 in the Fiscal Year Ending (FYE) 2017 budget to provide citizens of Norman an environmentally sound method for disposal of household-generated hazardous waste (HHW).
DISCUSSION: Request for Proposal (RFP) 1415-24 was sent to seven (7) firms on July 29, 2014. Three (3) firms submitted technical and cost proposals on August 18, 2014 in accordance with the RFP. The Review Committee, consisting of three (3) staff members, evaluated the firms based on their technical proposal and selected PSC Environmental Services, LLC dba Stericycle Environmental Solutions, as the most qualified proposal.
On September 9, 2014 the Norman Utilities Authority executed Contract K-1415-24 with PSC Environmental Services dba Stericycle Environmental Solutions. Two collection events were successfully completed on November 1, 2014 and on September 12, 2015. On average, close to 1,600 households dispose of waste material at the event. Approximately 28,000 pounds of chemicals, 12,800 pounds of used motor oil, 1700 pounds of antifreeze, 14,700 pounds of latex paint, and 36,600 pounds of oil-based paint were brought to the event. In addition, approximately 28,000 pounds of electronics (computers, TVs, etc.), 370 tires, 220 automotive batteries, and numerous old appliances (refrigerators, washers, dryers, etc.) were collected. The Norman Police Department was present to assist with the collection and destruction of pharmaceuticals brought in by citizens. All of this waste was safely removed and provided the citizens of Norman an environmentally sound method for disposal of household-generated hazardous waste. Dependent upon successful completion of these events, the language of RFP-1415-24 allowed the NUA to consider the selected contractor for a two-year option if both parties were agreeable. Staff found the services of Stericycle to be worthy of continued use based on the performance of the contractor. Based on the success of the last two events, staff recommends approval of Contract K-1617-45 with Stericycle Environmental Solutions, Inc. (dba Chemical Reclamation Services, LLC). Request for Proposal 1415-24 requires the contractor to provide a performance bond to ensure that all collected waste material is properly recycled or disposed of in a safe and environmentally sound method.
The FYE 17 budget appropriated funds for the event in Other Business Services (account 032-5543-432.41-99). Based on increased costs to treat and properly dispose of the collected material, Stericycle has submitted a new Cost Proposal. This amounts to an approximate 4% increase over the previous proposal. The HHW Collection Event will be conducted on November 5, 2016 in the southwestern portion of the Lloyd Noble Center parking lot. This maximum amount should be adequate based on the volume of HHW collected during the previous events. Adequate funds are available to fund this contract. Although staff does not anticipate going over $78,000, in the event of greater participation than previous years, a follow-up change order will be necessary to cover the increased amount.
In addition, funds will be encumbered for miscellaneous costs such as site rental, public notice, event signage, and drinks, lunch and tee shirts for an estimated 90-100 volunteers.
RECOMMENDATION: Staff recommends approval of Contract K-1617-45 in the maximum amount of $78,000 with Stericycle Environmental Solutions, Inc. (dba Chemical Reclamation Services, LLC) and the Chair be authorized to sign Performance Bond B-1617-14 in the amount of $78,000 upon approval of the City Attorney.