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CONTRACT NO. K-1415-36: A CONTRACT BY AND BETWEEN THE NORMAN MUNICIPAL AUTHORITY AND BATLINER PAPER STOCK COMPANY FOR PROCESSING CORRUGATED CARDBOARD AND OTHER PAPER PRODUCTS FROM THE CITY OF NORMAN RECYCLING CENTERS.
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BACKGROUND: The Norman Municipal Authority (NMA) currently operates three (3) multipurpose recycling centers and numerous other corrugated cardboard recycling containers at major retailers in the City of Norman. The recycling centers are voluntary citizen drop-off points and the NMA provides all equipment and manpower necessary to operate the recycling centers.
Plastics, aluminum, steel cans, glass, cardboard, mixed paper and newspaper are collected at the recycling centers. The NMA transports these materials to an independent recycling center for processing and marketing. The quantity of all recycled products collected during FYE13 and FYE14 was 2,790 tons and 1,975 tons, respectively. The large decrease in collected recyclables is likely due to the recent change to larger polycarts and the collection of cardboard in our curbside recycling program. The approximate revenue collected during FYE13 and FYE14 was $226,800 and $189,200, respectively. The existing recycling commodity contracts expired June 30, 2014 and are temporarily continuing on a month to month basis.
DISCUSSION: The NMA issued RFP-1415-14 requesting proposals from contractors interested in processing and marketing of recycled products from Norman Recycling Centers. The selected contractor must be capable of accurately weighing recycled materials, maintaining records, and reporting the weight of each recycled commodity separately. The processing facility must be operated in compliance with all applicable State and Federal regulations.
The NMA received proposals from three contractors on August 19, 2014. Staff has evaluated the proposals based on compliance with the RFP; proposed recycling commodity prices; and travel distance to the proposed facility. Based on these criteria, staff recommends acceptance of the proposal from Batliner Paper Stock Company of Oklahoma City as submitting the best proposal. Use of this contractor maximizes our recycling revenues while minimizing delivery and travel times.
It is estimated that revenues will increase somewhat in FYE15 based on higher unit prices for aluminum and plastics. As noted in Contract K-1415-36 for recycling of metals, plastics, and glass, the unit rate of payment is set for the first year of the contract and market driven in future years. As noted in Contract K-1415-35 for recycling of cardboard and other paper products, the unit rate of payment is established monthly in the Official Board Market Magazine (OBM); the revenues for paper products will vary dependent upon the market rate.
As defined in the RFP, these contracts can be renewed for four (4) successive 12-month terms if mutually agreed to by the Contractor and the NMA.
RECOMMENDATION: Staff recommends approval of Contract No. K-1415-36 with Batliner Paper Stock Company for paper products recycling.