ATTACHMENT A SUMMARY COMPARISON OF PROPOSALS FOR CCCSWA COLLECTION, PROCESSING, TRANSFER, AND DISPOSAL SERVICES

Transcription

1 ATTACHMENT A SUMMARY COMPARISON OF PROPOSALS FOR CCCSWA COLLECTION, PROCESSING, TRANSFER, AND DISPOSAL SERVICES A.1 Collection A.2 Recyclables Processing A.3 Green Waste/Food Scraps Processing A.4 Commercial Food Waste Processing A.5 Transfer Station A.6 Landfill

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3 Attachment A.1: Collection Proposal Comparison Using Board Criteria MD-R Cost Costs Higher overall revenue requirement than Republic (3.1% to 6.2% depending on the scenario) Lower transfer, residential composting, commercial organics transfer and processing, and disposal costs (25 to 50% lower than Republic) Higher profit rate (17% compared to Republic at 13%) Financing $46 million bank financing (50/50 Garaventa/Recology) $43 million financed internally Diversion Plans Republic Lower overall revenue requirement than MD-R (3.1% to 6.2% depending on the scenario) Higher transfer, residential and commercial organics processing, and disposal costs than MD-R Lower profit rate than MD-R (13% compared to MD-R at 17%) Higher profit than current (11% current vs. 13% proposed) Includes Contra Costa County surcharge ($1.1 million/yr) Base Proposal 53.1% estimated diversion rate in Base Proposal 52.6% estimated diversion rate in Base Proposal High Diversion 71.9% estimated diversion rate in High Diversion Proposal $45.3 million/year Phase 1: 60%; Phase 2: 70% $39.9 million/year High Diversion Strategy Service Offerings and Quality Collection Expand single-stream materials; reduce residue Expand residential organics to food-soiled paper, pizza boxes, cartons Expand commercial organics collection to include more accounts and more material types such as food-soiled paper Process dry drop box and dry commercial loads Process multi-family solid waste at Recology s Oakland organics facility to remove organics, then process at EBMUD Develop anaerobic digestion facility at Mt. Diablo MRF for commercial/ multi-family organics (alternative to or expansion of EBMUD program) Residential three-pass system in Base Proposal with split-body for solid waste/recyclables as cost-saving alternative proposal Rural service and on-property service includes bag-based program for recyclables and organic materials New CNG vehicles for all collection trucks Reduced road impact with split-body trucks in areas where these truck types are not currently used; fewer routes from re-routing Phase 1 (60% diversion) Wet/dry multi-family routing, process all material at Newby Island MRF Dry routes of commercial materials, processed at Newby Island MRF Phase 2 (70% diversion): Process all multi-family and commercial materials at Newby Island Front-loaders with Curroto-can for 75% of residential service; remainder side-loaders and smaller trucks as well as rear-loaders for reuse collection Rural service includes bag-based program for recyclables; organics collection is not offered in rural area New CNG vehicles for all collection vehicles, except vehicles for holiday tree collection, which will run on diesel Reduced road impact through fewer routes from re-routing 1/30/2014 CCCSWA Collection Proposal Summary Attachment A.1, Page 1

4 Facilities Public Education and Outreach Customer Service Transition Service Enhancements Company Qualifications Company Attachment A.1: Collection Proposal Comparison Using Board Criteria (cont.) MD-R Recology organics processing (1) Future commercial food waste pre-processing facility in Oakland (Recology East Bay Organics) in permitting phase; (2) Fully-permitted Jepson Prairie compost operation in Vacaville for CCCSWA green waste/food scraps Fully-permitted Recology Hay Road disposal facility Mt. Diablo corporation yard Adding 85 new collection vehicles; need permit for CNG fueling station Mt. Diablo TS/MRF permit needed for residential organics transfer, commercial food waste grinding, and possibly new commercial processing line Recology experience and expertise in San Francisco and SBWMA, which focus on high diversion Local call center 5 dedicated CSRs Access to interpreters in 175 languages Transition to new collection company will involve new vehicles, new containers, new public education and outreach Transition of billing and customer service functions See Attachment B.1 See Attachment B.1 Private joint venture formed specifically for CCCSWA by Garaventa Enterprises and Recology Mt. Diablo privately held; Recology ESOP Garaventa Enterprises Contra Costa and Solano County operations; Recology West Coast, primarily SF Bay Area operations Garaventa provides yard, transfer, MRF, collection, customer service, and billing; Recology provides organics processing, implementation support, and high diversion experience Republic Fully-permitted organics processing, transfer and disposal facilities Corporation yard in Pacheco - Has permit for CNG fueling station, need to secure land to expand for 40 additional vehicles Martinez TS Fully-permitted commercial food waste grinding operation Subcontractors, Cascadia and For Sustainability Too, to help with outreach materials and train recycling coordinators, assist with rerouting and, in the high diversion alternative, providing commercial customer technical assistance Local call center 8 CSRs allocated among group of 20 total Customer web portal for read only access to account Transition of the Waste Management collection services to Republic and changes to existing Republic collection services will involve new vehicles, new containers, new public education and outreach; No transition of billing and customer service National public corporation with many operations and facilities in SF Bay Area CCCSWA service provider for 20 years Republic has recent experience with large franchise transitions (San Jose, Fresno) 1/30/2014 CCCSWA Collection Proposal Summary Attachment A.1, Page 2

5 Attachment A.1: Collection Proposal Comparison Using Board Criteria (cont.) MD-R Republic Recology has recent experience with large franchise transition (SBWMA); Mt. Diablo does not CCCSWA will double Mt. Diablo s collection operations Acceptance of RFP and Contract Terms RFP No exceptions taken Did not provide stand-alone pricing with the exception of high prices for transfer and disposal services Except for recyclables processing, will not consider mix and match with others proposals, which may have resulted in Franchise Agreement Environmental Impacts No significant exceptions that would be determinant in choice of contractor See Attachment E for environmental impact information prepared by ESA significant savings to the CCCSWA rate payers No significant exceptions that would be determinant in choice of contractor See Attachment E for environmental impact information prepared by ESA 1/30/2014 CCCSWA Collection Proposal Summary Attachment A.1, Page 3

6 Attachment A.2: Recyclable Processing Proposal Summary using Board Criteria CWS Mt. Diablo Pacific Rim (PRR) Two CWS MRFs in Oakland (17.1 miles) Mt. Diablo MRF in Pittsburg (18.9 miles) Pacific Rim MRF in Benicia (14.7 miles) Cost Revenue Proposal (All offers based on tons delivered) Comparison to other Proposers based on Revenue and Transport Analysis $51/ton guaranteed revenue payment per ton delivered (blended rate over 10 years with $67/ton offered for Yrs 1 and 2; $47/ton thereafter) Fixed per ton payment over term No revenue sharing above fixed guaranteed revenue payment $17.50/ton to provide hauling services from Martinez TS to CWS processing facilities in Oakland CWS s proposed $51/ton payment was more favorable than the other proposers in some scenarios; however, when transportation costs (direct haul or transfer haul) were factored in, CWS s proposal was not favorable compared to Mt. Diablo. CWS s option showed net recycling revenues a bit lower than PRR s fixed revenue guarantee. However, when considering PRR s revenue sharing and other financial offers, PRR s anticipated revenues would be greater than CWS. $55/ton guaranteed revenue payment per ton delivered (bundled deal) $30/ton guaranteed revenue payment per ton delivered (stand alone deal if not selected for collection services) Option for 50/50 revenue share when revenues per delivered ton exceed $200; however, CCCSWA payment to contractor when revenues below $170 threshold Fixed per ton payment over term When considering Republic as the collector, the Mt. Diablo recyclables proposal was the less favorable that PRR and CWS (at only $30 per ton) When considering MD R as the collector, the Mt. Diablo recyclables proposal is the option anticipated to generate the most recycling revenues (adjusted for transportation costs) when recycling markets are down (e.g., below $143/ton delivered). When recycling markets were up (e.g., above $143/ton, PRR s recyclables proposal is the option anticipated to generate more revenues (adjusted for transportation costs). Willing to provide guaranteed revenue payment or structure a revenue share arrangement. Provide four offers: $47/ton guaranteed payment per ton delivered $32.50/ton guaranteed payment plus 60% of revenues above $105/ton delivered $35.00/ton guaranteed payment plus 58% of revenues above $109/ton delivered $37.50/ton guaranteed payment plus 55% of revenues above $113/ton delivered Fixed per ton payment over term Anchor tenant payment to CCCSWA for recycling revenues from other facility users (PRR est. value: $1.2 million over 10 years) Depreciation cost savings after first 5 years (PRR est. value: $1 million over last 5 years) When considering Republic as the collector, the PRR recyclables proposal is the option that is anticipated to generate the most revenues (adjusted for transportation costs). When considering MD R as the collector, the PRR proposal is the option that is anticipated to generate the most revenues when recycling markets are up because of the PRR revenue sharing arrangement. In down markets, Mt. Diablo s revenue structure was more favorable than PRR s because of its $55/ton fixed revenue payment (which is higher than both PRR and CWS s fixed revenue payments). 1/30/2014 CCCSWA Recyclables Processing Proposal Summary Attachment A.2, Page 1

7 Attachment A.2: Recyclable Processing Proposal Summary using Board Criteria (cont.) CWS Mt. Diablo Pacific Rim (PRR) Two CWS MRFs in Oakland (17.1 miles) Mt. Diablo MRF in Pittsburg (18.9 miles) Pacific Rim MRF in Benicia (14.7 miles) Discounts for Extended Term Financial Considerations Diversion Plans Expand Materials to be Processed Service Offerings and Quality Offer higher net payment ($0.50/ton more for 15 yrs; $1.00/ton more for 20 yrs) None Years 10 to 20: Equity share approx. $15/ton (PRR est. value: $6.3 million over 10 years) Liquidation share at end of term providing CCCSWA 50% of net liquidation value of equipment (PRR est. value: $0.8 million lump sum payment) None None With a 10 year extension will turn over controlling interest in the facility If PRR is not selected as the recyclables processor, economics of curbside reuse and clean up contract negatively impacted Quality Incentive Payment and curbside bonus money factored into revenue share Full financial transparency (open books) Plastic #6 containers, plastic bags, rigid plastics, small scrap metal items, clean film, aluminum foil, small appliances, hard cover books at no additional cost Plastic containers #6, plastic bags, rigid plastics, and small scrap metal items at no additional cost Plastic containers #6, plastic bags, rigid plastics, and small scrap metal items at no additional cost Plastic bag collection from 22 retail sites (where PRR collects batteries) (added cost) Accept textiles, e waste, and other emerging metals if economically feasible Processing Single stream recyclables processing Single stream recyclables processing Single stream recyclables processing Permits No permit modifications are needed for No permit modifications are needed for Plan to apply for Solid Waste Facilities Permit recyclables processing recyclables processing 1/30/2014 CCCSWA Recyclables Processing Proposal Summary Attachment A.2, Page 2

8 Attachment A.2: Recyclable Processing Proposal Summary using Board Criteria (cont.) CWS Mt. Diablo Pacific Rim (PRR) Two CWS MRFs in Oakland (17.1 miles) Mt. Diablo MRF in Pittsburg (18.9 miles) Pacific Rim MRF in Benicia (14.7 miles) Enhancements Company Qualifications Company Propose transportation of recyclables from Martinez TS to CWS facilities Privately held company On going management team includes CWS personnel None Privately held local company (a Garaventa company) Solar panels on building with revenue share School and library book and high value e waste collection through 22 retail locations and recycling fundraisers: no charge Styrofoam collection through reuse program and from 22 retail locations: no charge Document destruction/recycling: fee TBD Mobile art and school supply distribution 3x/yr: cost of supplies Provide feasibility report on possible reuse store in Service Area: revenue share Facilitate E Bay sales for reusables: share 1/3 of profits with CCCSWA Assist with Republic s auto call service to provide reminders and info. to customers Collection/drop off services to thrift shops Privately held company CCCSWA service provider for the past 15 years Acceptance of RFP and Contract Terms RFP No exceptions taken No exceptions taken Did not provide audited financial statements; Franchise Agreement Environmental Impacts Less than 5 modifications to Agreement No significant exceptions that would be determinant in choice of contractor See Attachment E for environmental impact information prepared by ESA Approximately 33 modifications to Agreement No significant exceptions that would be determinant in choice of contractor See Attachment E for environmental impact information prepared by ESA willing to disclose tax returns if selected Approximately 25 modifications to Agreement No significant exceptions that would be determinant in choice of contractor See Attachment E for environmental impact information prepared by ESA 1/30/2014 CCCSWA Recyclables Processing Proposal Summary Attachment A.2, Page 3

9 Cost Costs Costs Compared to Proposer Discounts for Extended Term Financial Offers Attachment A.3: Green Waste/Home Food Scraps Processing Proposal Summary using Board Criteria Mt. Diablo-Recology (MD-R) Recology Jepson Prairie Composting, Vacaville (45.7 miles) $28.71/ton bundled rate for Jepson Prairie ($23.83/ton + profit) $28.48/ton transfer at Pittsburg TS, transport to Jepson Prairie $57.19/ton total $32.43/ton stand-alone rate for Jepson Prairie ($26.92/ton + profit) 11% bundled discount rate as shown above considered as part of package with MD-R, but no mix and match with Republic because Republic not interested Lower per-ton rate than Republic s West County option (Republic 240% higher compost facility rate; Republic 127% higher combined transfer, transportation, and compost facility rate) Republic West Contra Costa Sanitary Landfill Composting ( West County ), Richmond (28.0 miles) $68.97/ton bundled rate for West County ($60/ton + profit) $3.75/ton transfer at Martinez TS, transport to West County $72.72/ton total Propose only a bundled rate Not interested in mixing and matching options; therefore, not considered as an option for MD-R 240% higher compost facility rate than Jepson Prairie 127% higher combined transfer, transportation and compost facility rate than MD-R Diversion Plans Base Proposal Propose composting 100% of all green waste/food scraps Propose composting 100% of all green waste/food scraps High Diversion Service Offerings and Quality Processing Permits Mixed food waste and green waste: covered aerated-static pile composting system Green waste: windrow composting Jepson Prairie compost: No permit modifications are needed Mt. Diablo transfer: Need approval to transfer residential organics Front-end system for removal of contaminants from compost and shredding of materials Windrow composting West County compost and Martinez TS: No permit modifications are needed 1/30/2014 CCCSWA Green Waste/Food Scraps Processing Proposal Summary Attachment A.3, Page 1

10 Attachment A.3: Green Waste/Home Food Scraps Processing Proposal Summary using Board Criteria (cont.) Company Qualifications Company Mt. Diablo-Recology (MD-R) Recology Jepson Prairie Composting, Vacaville (45.7 miles) If MD-R is awarded only green waste/food scraps processing services, only Recology will be involved in contract See Attachment A.1, Collection Services Summary Table, for additional information Acceptance of RFP and Contract Terms Republic West Contra Costa Sanitary Landfill Composting ( West County ), Richmond (28.0 miles) See Attachment A.1, Collection Services Summary Table, for additional information See Attachment A.1, Collection Services Summary Table See Attachment E, Environmental Impact Information by ESA 1/30/2014 CCCSWA Green Waste/Food Scraps Processing Proposal Summary Attachment A.3, Page 2

11 Cost Costs Costs Compared to Proposer Discounts for Extended Term Financial Offers Diversion Plans Attachment A.4: Commercial Food Waste Proposal Summary using Board Criteria Mt. Diablo-Recology (MD-R) Pre-processing: Recology East Bay Organics ( REBO ) Oakland (16.9 miles) Processing: EBMUD, Oakland (16.9 miles) $90.36/ton bundled rate for REBO/EBMUD ($75 for + profit) $93.98/ton stand-alone rate for REBO/EBMUD ($78 + profit) Rate at REBO gate; direct haul assumed by MD-R 4% bundled discount rate as shown above considered as part of package with MD-R, but no mix and match with Republic because Republic not interested Lower per-ton rate than Republic option (Republic is 39% more than MD-R) 50/50 share in value of renewable energy credits sold that are attributable to digestion of CCCSWA s food waste Republic Pre-processing: Contra Costa Transfer Station ( Martinez TS ), Martinez (12.5 miles) Processing: EBMUD, Oakland (16.9 miles) $125.51/ton bundled rate for Martinez TS grinding/ebmud ($75 grinding/haul + profit + estimated EBMUD rate) Propose only a bundled rate Not interested in mixing and matching options; therefore, Republic s option not considered as an option for MD-R 39% higher per-ton rate than MD-R option Base Proposal Same as current Same as current High Diversion Process additional organic material types such as food-soiled paper Process all multi-family solid waste at REBO to extract organics; organics delivered to EBMUD; remainder landfilled Service Offerings and Quality Processing Pre-processing at REBO involves us of DODA technology for contaminant removal, sizing and screening, pulping and pulverizing materials and then feeding materials directly to EBMUD Pre-processing involves grinding commercial food waste at the Martinez TS with the system that is currently used to grind the CCCSWA food waste Permits Permits needed, including the Solid Waste Facilities Permit No permit modifications are needed has not been constructed Technology is new Recology reports REBO to be operational in /30/2014 CCCSWA Commercial Food Waste Processing Proposal Summary Attachment A.4, Page 1

12 Attachment A.4: Commercial Food Waste Proposal Summary using Board Criteria (cont.) Mt. Diablo-Recology (MD-R) Pre-processing: Recology East Bay Organics ( REBO ) Oakland (16.9 miles) Processing: EBMUD, Oakland (16.9 miles) Company Qualifications Acceptance of RFP and Contract Terms Republic Pre-processing: Contra Costa Transfer Station ( Martinez TS ), Martinez (12.5 miles) Processing: EBMUD, Oakland (16.9 miles) See Attachment A.1, Collection Services Summary Table See Attachment A.1, Collection Services Summary Table See Attachment E, Environmental Impact Information by ESA 1/30/2014 CCCSWA Commercial Food Waste Processing Proposal Summary Attachment A.4, Page 2

13 Cost Costs Stand- Alone for TS Cost Bundled for TS and LF Costs Compared to Proposers Discounts for Extended Term Financial Offers Attachment A.5: Transfer Station Proposal Summary using Board Criteria Contra Costa Waste Services (CCWS) Republic Waste Management Recycling Center and Transfer Station and Mt. Diablo Recycling Center (Pittsburg TS) Pittsburg (18.9 miles) $9.74/ton for solid waste, recyclables and residential organic materials $30.47/ton for grinding and transfer of commercial food waste Propose one rate applicable for stand-alone or bundled services $55.73/ton for transfer and disposal at Hay Road LF $18.74/ton for transfer and haul to Hay Road LF or to Potrero Hills LF Lowest cost option Transfer station rate is significantly less than the other proposals (65 to 85% less) Combined transfer and disposal rate is 12% less than Republic and 50% less than WM Contra Costa Transfer Station (Martinez TS), Martinez (12.5 miles) $61.40/ton for solid waste (stand-alone) $48/ton for recyclable materials (standalone) Not interested in mixing and matching options $63.50/ton for transfer and disposal at Keller LF when bundled with collection and processing $93.80/ton for transfer and landfill (Keller LF) if not bundled with collection and processing Combined transfer and disposal rate is 12% higher than MD-R and 44% less than WM Stand-alone transfer station rate is significantly higher than other proposals Since Republic not interested in mixing and matching, this is the only option for Republic Proposed 12.5 to 15% increased rate for 20- year term depending on material type Diversion Plans Service Offerings and Quality Processing Same transfer method as current Propose transfer of solid waste, recyclables, and residential and commercial organics May need to expand facility to handle growth Same transfer method as current Propose transfer of solid waste and residential organics Davis Street Transfer Station San Leandro (24.6 miles) $30.75/ton for solid waste $29.19/ton for residential organics $27.62/ton for recyclables $110.00/ton for transfer and disposal at Redwood LF Transfer rate significantly higher than MD-R Bundled transfer and disposal rate significantly higher than Republic and MD-R Not applicable for transfer station services Same transfer method as current Propose transfer of solid waste, recyclables, and organics 1/30/20141/21/2014 CCCSWA Transfer Station Proposal Summary Attachment A.5, Page 1

14 Permits Attachment A.5: Transfer Station Proposal Summary using Board Criteria (cont.) Contra Costa Waste Services (CCWS) Republic Waste Management Recycling Center and Transfer Station and Mt. Diablo Recycling Center (Pittsburg TS) Pittsburg (18.9 miles) Permit approval needed to transfer residential organic transfer and commercial food waste grinding and transfer Contra Costa Transfer Station (Martinez TS), Martinez (12.5 miles) No permit modifications needed Davis Street Transfer Station San Leandro (24.6 miles) No permit modifications needed All transfer vehicles powered by natural gas produced at Altamont Landfill in Alameda County Company Qualifications Company CCWS is privately-held company (A Garaventa company) Garaventa Enterprises has Contra Costa County and Solano County operations National public corporation with many operations and facilities in SF Bay Area CCCSWA service provider for 20 years Acceptance of RFP and Contract Terms RFP No exceptions taken Not willing to consider mix and match with others proposals, which may have resulted in Agreement No significant exceptions No significant exceptions that would be determinant in choice of contractor significant savings to the CCCSWA rate payers No exceptions taken National public corporation with many operations and facilities in the SF Bay Area CCCSWA services provider for 20 years No exceptions taken Numerous exceptions taken No significant exceptions that would be determinant in choice of contractor See Attachment E, Environmental Impact Information by ESA 1/30/20141/21/2014 CCCSWA Transfer Station Proposal Summary Attachment A.5, Page 2

15 Cost Costs Attachment A.6: Landfill Proposal Summary using Board Criteria Potrero Hills LF Recology Republic Waste Management Potrero Hills LF Suisun (37.1 miles) $21.14/ton landfill only Lowest landfill rate Propose stand-alone rate (no discount for bundling) Recology Hay Road LF Vacaville (45.7 miles) $27.25/ton landfill only Second lowest landfill rate Propose stand-alone rate (no discount for bundling) Keller Canyon LF Pittsburg (14.3 miles) $69.43/ton landfill only $93.80/ton bundled transfer and landfill rate $63.50/ton bundled transfer and landfill rate if bundled with collection and processing services Stand-alone landfill rate significantly higher than other proposals Not interested in mixing and matching options Discounts for Extended Term Financial Diversion Plans Service Offerings and Quality Class III Some cells constructed prior to 1993 Subtitle D requirements HDPE liner system is thicker than required for Class III Capacity 24 years remaining for Phase I; more with Phase II development Class II Some cells constructed prior to 1993 Subtitle D requirements although Recology reports all CCCSWA materials to be placed in Subtitle D cells Class II Subtitle D liner system throughout Redwood Landfill Novato (48.0 miles) $55.00/ton landfill only $110.00/ton bundled transfer and disposal (Davis Street TS/Redwood LF) Stand-alone landfill rate is significantly higher than the lowest cost landfill rate Bundled transfer and landfill rate higher than other options Not applicable for disposal services Class III Pre-subtitle D; therefore, no engineered liner other than one small cell lined as Class II 60 years remaining 65 years remaining 20+ years remaining if court does not overturn expansion permit; otherwise only 4 years 1/30/2014 CCCSWA Landfill Proposal Summary Attachment A.6, Page 1

16 Permits Company Qualifications Company Attachment A.6: Landfill Proposal Summary using Board Criteria (cont.) Potrero Hills LF Recology Republic Waste Management Potrero Hills LF Suisun (37.1 miles) In 2012, secured approval for Phase II expansion. Phase II date not planned. Plan to develop landfill-gas-toenergy plant National public corporation with operations and facilities in SF Bay Area Acceptance of RFP and Contract Terms Recology Hay Road LF Vacaville (45.7 miles) Seeking to increase average permitted tonnage from 1,200 to 2,400 TPD although may not be needed for CCCSWA Operational landfill-gas-toenergy plant Employee-owned company with operations on the West Coast Keller Canyon LF Pittsburg (14.3 miles) No permits needed Operational landfill-gas-to-energy plant National public corporation with many operations and facilities in SF Bay Area Redwood Landfill Novato (48.0 miles) Landfill expansion permit being challenged Plan to develop landfill-gasto-energy plant National public corporation with many operations and facilities in SF Bay Area RFP No exceptions taken No exceptions taken No exceptions taken No exceptions taken Contract Proposed approximately 5 Proposed approximately 20 No exceptions taken Proposed approximately 50 modifications to the Agreement No significant exceptions that would be determinant in choice of contractor modifications to the Agreement No significant exceptions that would be determinant in choice of contractor modifications No significant exceptions that would be determinant in choice of contractor See Attachment E, Environmental Impact Information by ESA 1/30/2014 CCCSWA Landfill Proposal Summary Attachment A.6, Page 2