Backup — original pdf

Backup

Recycling Processing Contracts ZWAC Presentation July 14, 2021 Services Provided •20-Year Master Agreement with Reset Periods •Receipt of City Collected Recyclables •Process, Sort, Bale, and Market Recyclables Reset • Agreements allow for periodic contract resets • Award Percent – percent of City recyclable material delivered to each vendor (subject to reset) • Evaluation Criteria for determining Award Percent • Vendor’s pricing proposal • Vendor’s performance after First Reset Date, measured in part by percentage of Recyclable Materials that Vendor sold to reputable recycling processors or otherwise diverted from disposal for reuse • Vendor’s “good-will, teamwork, community engagement, and recycling education efforts” • Additional relevant factors Current Terms Balcones • 60% tonnage • Mon/Tue/Wed Routes Texas Disposal Systems • 40% tonnage • Thurs/Fri Routes City must deliver an average of 2,000 tons per month to each vendor Financial Terms •Market (Revenue) Share to City based on Published Market Indices •Processing Fee Paid by the City •Monthly Invoice: Net of Market Share (Revenue) and Processing Fee Financial Information Current Contract Terms Factors Affecting Net Value to the City Processing fees and revenue share Materials composition Ave Mo Tons 2000 2001 - 3000 3001-4000 BRI Process Fee $79.00 $59.00 $55.00 Revenue Share % 51% 45% 40% Ave Mo Tons 2000 2001 - 3000 3001-4000 TDS Process Fee $90.50 $90.50 $90.50 Revenue Share % 77% 77% 77% Financial Information Current Contract Terms Factors Affecting Net Value to the City Processing fees and revenue share Materials composition Data displayed represents average of studies performed April 2016 to November 2020 Material Type ONP #8 (Old Newspaper) OCC (Corrugated Cardboard) Mixed Paper Plastic Bottles - PETE HDPE Natural HDPE Color Mixed Plastics 3-7 Mixed Rigid Plastics UBC (Used Beverage Cans) Tin Cans Scrap Metal Glass Residual - trash Balcones 17.66% 13.75% 14.93% 1.76% 0.64% 0.66% 1.36% 0.61% 1.27% 1.47% 0.73% 26.52% 18.63% TDS 15.09% 15.59% 11.82% 2.69% 0.85% 0.93% 3.88% 0.34% 1.51% 1.52% 0.96% 27.51% 17.33% Tonnage Information • Until the 2nd Reset, minimum 2000-ton award to each vendor Fiscal Year FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Total Tons 58,846 58,689 58,647 59,290 63,431 BRI TDS 35,612 23,234 34,201 24,488 35,097 23,550 35,303 23,987 37,341 26,089 Financial Information Single Stream Recycling Report Timeline–2nd Reset Action per Contract Date Notify Vendors of Reset Period August 1, 2020 Vendors submit documentation to City including Community Engagement Efforts September 30, 2020 Vendors notify City of desire to change volume or add services November 1, 2020 Vendors submit pricing proposals to City March 22, 2021 City to establish Award Percent August 30, 2021 Contract Reset Date September 30, 2021 Goals • Allow both COA and vendor(s) to live through a range of market conditions • Create shared risk and reward • Create strong communication and collaboration • Establish clear expectations Questions