hrra rfp for single stream processing

7/28/2019 Hrra Rfp for Single Stream Processing

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Request for Proposals

For Single Stream Recycling Processing

Housatonic Resources Recovery Authority

HRRA

Housatonic Resources Recovery Authority (HRRA) is a regional, government, waste

management and recycling authority, established pursuant to the provisions of Chapter 103b ofthe Connecticut General Statutes, serving eleven municipalities in western Connecticut with apopulation of more than 225,000 people. Those municipalities, which are members of HRRA,are Bethel, Bridgewater, Brookfield, Danbury, Kent, New Fairfield, New Milford, Newtown,Redding, Ridgefield and Sherman. The Towns of Redding and Ridgefield are HRRA membersfor solid waste services only, but not for recycling.

Program recyclables generated within the HRRA region are currently processed at RecyclingTechnologies, Inc. (RTI). RTI is a state-permitted Intermediate Processing Center (IPC), SolidWaste Permit to Operate No. SW0340199, located at 307 White Street in Danbury (White StreetFacility), permitted to process up to 52,000 tons per year of residential and commercial sourceseparated comingled waste for recycling, including newspaper, cardboard, magazines, officepaper, glass, cans, aluminum and plastic. RTI accepts source separated residential, municipaland small commercial recyclables generated within HRRA member communities as well as fromother Connecticut and New York communities.

The Request for Proposals

HRRA seeks proposals from vendors who will accept recyclable materials transported from theWhite Street Facility (which would act solely as a transfer facility) to the vendorspermitted IPCor materials recovery facility (MRF) and the processing and sale of the recyclable materials in amanner compatible with the facts and desires of HRRA as set forth herein.

The Existing Contract

HRRA owns the recycling processing equipment located at RTIs White Street Facility andcontracts with RTI to operate and maintain the White Street Facility, to accept recyclables fromthe HRRA program collected by haulers at curbside, or delivered directly by small commercialgenerators or collected at local municipal transfer stations and hauled to RTI, or dropped off byresidents at the City of Danbury/AWD Mom & Pop Recycling Center. Under the existing


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contract, RTI sorts/processes the recyclables, bales the commodities, markets and sells therecycled commodities and in some cases transports the commodities to the buyer. TheHRRA/RTI contract terminates in February 2013. The Regional Recycling Center ServiceAgreement by and between RTI and HRRA dated as of March 13, 1991 and amended byAmendment No. 1 and Amendment No. 2, dated as of October 21, 1994 (collectively the

Recycling Service Agreement) is available for review on the HRRA website athttp://hrra.org/municipal_handbooks/Bethel%20Handbook/Contracts%20and%20Ordinances/HRRA%20RTI%20Contract.pdf

Flow Control and RTI Ownership

Because RTI was privately owned, recyclables are not flow controlled to the facility except forthose recyclables under municipal control, i.e. from municipal transfer stations, municipalbuildings, playing fields and other municipal facilities, including public schools. RTI iscurrently owned by the United States Government, seized as a result of the successful criminalprosecution of the owners of RTI and its affiliated companies. The United States Marshals

Office is in the process of attempting to sell all the seized assets, including RTI, but it is unclearhow long the sale process will take. The City of Danbury is one of the parties interested inpurchasing the transfer station operations located at 307 White Street, in Danbury, a location atwhich not only RTI and the White Street Facility but also Advanced Recycling Corporation, asingle item (fiber) recycling facility, are permitted to operate. If the City or another public entityeventually becomes the owner of RTI and the White Street Facility, HRRA membermunicipalities could use flow control, to the extent legally permissible, to direct all programrecyclables generated within the HRRA region to RTI at the White Street Facility.

Program Recyclables

The equipment at RTI is capable of processing only dual stream recycling. The programrecyclables included in the HRRA/RTI contract are newspapers & inserts, magazines & catalogs,corrugated cardboard (all these bundled and tied separately or placed in brown paper bags) and#1 and #2 plastics, glass food and beverage containers, clean foil and metal food and beveragecontainers (all co-mingled in a blue or clear bag) and office paper collected separately. Theseare the only items now accepted for recycling at the RTI White Street Facility.

Current Tonnage

Over the past six years the tonnage of program recyclables tipped at RTI has ranged between11,000 and 12,000 tons per year. Based on DEP reports from other IPCs and MRFs inConnecticut, as well as reports made to some HRRA member municipalities from haulers usingMRFs in New York State, we estimate that another 8,000 tons per year of program recyclablesare diverted from the HRRA region and from RTI.

We estimate that ARCs commercial fiber recycling operation also located at 307 White Street,takes in approximately 12,000 tons per year generated within HRRA member municipalities.We do not anticipate the tonnage coming into ARC being diverted to RTI. Responders to thisRFP should not rely on ARC tonnage for the purpose of proforma calculations.
http://hrra.org/municipal_handbooks/Bethel%20Handbook/Contracts%20and%20Ordinances/HRRA%20RTI%20Contract.pdfhttp://hrra.org/municipal_handbooks/Bethel%20Handbook/Contracts%20and%20Ordinances/HRRA%20RTI%20Contract.pdfhttp://hrra.org/municipal_handbooks/Bethel%20Handbook/Contracts%20and%20Ordinances/HRRA%20RTI%20Contract.pdfhttp://hrra.org/municipal_handbooks/Bethel%20Handbook/Contracts%20and%20Ordinances/HRRA%20RTI%20Contract.pdfhttp://hrra.org/municipal_handbooks/Bethel%20Handbook/Contracts%20and%20Ordinances/HRRA%20RTI%20Contract.pdf


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We currently estimate that tonnage coming into RTI would increase by as much as 25% over theexisting tonnage if additional items were added to the program recyclables as outlined below andsingle stream recycling services were available to the regions residents and haulers, but thatestimate cannot be relied upon by proposers as a representation by HRRA

Current Financial Terms

The financial terms of the RTI/HRRA Agreement are complex, and proposers should refer to theRecycling Service Agreement for the precise financial terms. In a nutshell, however, from thechart below, RTI receives the sliding scale tip fee in the chart below for each ton tipped at RTIsWhite Street Facility. For example, in FY 09-10, RTI is receiving $49.68 per ton for each ton ofprogram recyclables tipped at the White Street Facility. The hauler pays $39/ton and HRRAsubsidizes the difference to reach the sliding scale tip fee by taking less revenue sharing per tonthan the Authority is entitled to receive pursuant to the Recycling Service Agreement. Inaddition RTI receives all the revenue from the sale of recycled commodities up to $38/ton, plus

half of all revenues from commodity sales over the $38/ton base.

RECYCLINGFY

00/01FY

01/02FY

02/03FY

03/04FY

04/05FY

05/06FY

06/07FY

07/08FY

08/09FY

09/10FY

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Sliding Scale tip fee $36.68 $ 37.58 $38.16 $42.70 $39.96 $41.05 $46.08 $47.16 $44.88 $49.68 $50.27

Less HRRA Subsidy -2.24 -17.38 -0.49 -6.07 -5.25 -16.00 -18.94 -16.50 -29.07 -39.24 -9.41HRRA RevenueSharing 4.07 18.31 0.84 1.88 3.80 13.46 11.37 8.34 23.19 28.56 -1.86

RTI Hauler Tip Fee $38.51 $38.51 $38.51 $38.51 $38.51 $38.51 $38.51 $39.00 $39.00 $39.00 $39.00

HRRA receives monthly $1 for each ton of program recyclables tipped at the White StreetFacility from non-HRRA municipalities in NY and CT, and $7 per ton for tonnage tipped from

Redding and Ridgefield (since those two municipalities are not a part of the HRRA recyclingregion). In addition HRRA receives the dollar amount each month in the HRRA RevenueSharing line in the chart above for each ton of program recyclables tipped from HRRAmunicipalities. For example, in the current fiscal year HRRA is receiving $28.56 per ton for theapproximately 8,000 tons of program recyclables that will be tipped at the White Street Facilityin FY 09/10.

This financial arrangement is problematic for HRRA since the fiscal year revenue sharing isbased on a formula that includes the number of tons delivered the previous calendar year, andhalf the revenue from commodity sales RTI received the previous calendar year above a setrevenue base. Thus, when the commodity markets are good, HRRA will not receive the revenue

sharing bounty from the good market for up to 18 months, and when commodity markets fall,HRRA does not feel the revenue sharing reduction for up 18 months.

Below for reference are the total revenue sharing and royalties that HRRA has been paid over thepast seven calendar years and the total revenue from commodity sales as reported by RTI forthose same years.


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Calendar Year

AmountPaid toHRRA

RTI TotalCommodity

SaleRevenue

2003 Total $73,891.80 $561,865

2004 Total $30,251.08 $790,212

2005 Total $75,232.46 $846,792

2006 Total $98,205.69 $754,396

2007 Total $83,980.80 $1,006,359

2008 Total $124,285.74 $1,010,929

2009 Total $216,959.96 $471,026

Changes Desired for Regional Recycling System

1. HRRA seeks to expand the program recyclables collected at curbside and at localmunicipal transfer stations to include at least plastics #3-#7, all fiber, i.e. junk mail, home

office paper, wrapping paper, fiber packaging, chip board, box board, greeting cards,aseptic packaging such as juice boxes, milk cartons, etc. and even perhaps textiles.

2. HRRA wants to offer the HRRA regions residents, as well as our solid waste haulers, theoption for single stream recycling processing as well as the current dual stream.

3. While we eventually prefer to phase out collecting curbside recycling in blue or clearbags, whether single stream or dual stream, HRRA wants to provide a reasonable andmutually agreeable period of time for our permitted haulers to make equipment changesand to offer their customers recycling collection container options rather than bags.

4. Because HRRAs recycling processing equipment is almost twenty years old and isexpensive to maintain and repair, the HRRA seeks assistance with removing theequipment and recycling it for whatever scrap metal price it might bring.

5. HRRA seeks a more consistent revenue stream from the regional recycling program.However, the Authority believes that there is value in having at least some financialincentive for increasing recycling rates in the region. Any revenue stream from such anincentive, however, must bear a closer temporal connection to the current market pricefor recycling commodities than the current system.

6. HRRA seeks a regional recycling system that is so cost effective and easy for haulers touse, and so convenient and easy to understand for consumers, that there will be asignificant financial incentive, thereby making flow control unnecessary regardless ofthe ownership of the White Street Facility, for recycling tonnage now leaving the regionto return to RTI, for Ridgefield and Redding to become part of the HRRA recyclingregion and for additional communities in Connecticut and New York to use RTI.

7. HRRA seeks to amend the existing Recycling Service Agreement with RTI, at leastthrough the end of its current term of February 13, 2013, to accomplish the abovechanges, including that RTI would no longer process and market the recyclables tipped atthe White Street Facility but rather would simply act as a recycling transfer facility.


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What Proposers are Requested to Provide

Vendors interested in providing transport from RTI, processing HRRA program recyclables at apermitted IPC or MRF capable of processing single stream and dual stream recycling, and finalmarketing and sales of the recycled commodities, given the expected tonnage described above,

are requested to provide a written proposal outlining how they can assist HRRA in meeting thechanges we seek in our regional recycling program. The proposal should include an estimate ofthe vendors charge for each ton of recyclables delivered to the vendors facility for processingand marketing, if the charge is different for dual stream from single stream deliveries, and if thecharge is different for co-mingle received in blue/clear recycling bags. The proposal shouldinclude an estimate of the tip fee required to cover the cost of weighing, billing, transferring,transporting, processing, marketing, and paying HRRA a revenue sharing and/or program fee foreach recycling ton delivered to RTI. The proposal should also include an estimated effectivedate for acceptance of material from RTI.

Proposals should include standard contracting informational items such as information on the

owners, background of the company, years of experience in the recycling business, the type andamounts of insurance maintained by the company on which RTI, HRRA and all HRRA membermunicipalities shall be listed as additional insureds, location of the IPC/MRF and its distancefrom 307 White Street in Danbury, any recycling public education programs available from thevendor for use within the region, compliance with standard Connecticut and Federal contractingrequirements, references from other recycling regions or municipalities in Connecticut or NewYork that the proposer currently serves, etc.

In addition, the proposal must disclose whether the company and any owner or shareholder of thecompany or any management employees of the company have been convicted of any crime, bothmisdemeanors and felonies, and whether the company and/or any individual within the companyhas been cited for a violation of any environmental laws or regulations of the United States orany State. Such disclosures should provide some detail about the violation, date, crime and theeventual resolution. Failure to disclose such information will be grounds for HRRA toimmediately terminate consideration of vendors proposal. Prior to entering into a contract withany vendor an in depth criminal background check will be conducted.

Caveats

The HRRA reserves the right to reject any and all proposals without cause. A successfulproposal will be based not only on the written proposal presented but also on an interview andnegotiation of a written agreement between the proposer, HRRA and RTI. HRRA reserves theright to interview and negotiate with more than one proposer in order to choose the proposal andthe vendor that best serves the public interest and is consistent with the State Solid WasteManagement Plan. Although this RFP is issued by HRRA, proposers should note that RTI,which is currently owned by the United States of America, will be a necessary party to anyagreement with the vendor ultimately chosen by HRRA, if any. Although RTI has reviewed thisRFP, HRRA cannot represent to any proposer that RTI will agree to any particular terms orconditions with respect to any transfer fee for RTI proposed by the proposer or the operationalterms and conditions applicable to the transfer function at the White Street Facility.


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Proposal Submission and Due Date

Companies wishing to respond to this RFP must attend a mandatory pre-bid meeting to be heldon Wednesday, May 12, 2010, 10:00 a.m. at Danbury City Hall, 155 Deer Hill Avenue,

Danbury, CT, third floor , Room 3C near the City Council Chambers. The meeting willconclude with a site visit to RTI. Companies should advise HRRA of their anticipatedattendance and the number of person attending by e-mail [email protected] later thanTuesday, May 11, 2010 at Noon.

Final proposals will be due no later than 4:00 p.m. EDT on Tuesday, June 1, 2010, only by e-mail [email protected] the form of a single .pdf file. Any questions or requests foradditional information must be submitted by e-mail [email protected] and responses willbe provided to all respondents who attend the pre-bid meeting. PLEASE, NO PHONE CALLSABOUT THE RFP.
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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Proposal Term SheetCompany Information

Company Name:

Owner(s):

Shareholders and their percentages of ownership:

Physical Address:

Mailing Address:

Website:

Contact Person(s) for this RFP:Address:Telephone:Fax:Mobile:E-mail:

Companys years of experience in the recycling business:

Will any subcontractor be involved?

If so, who is that subcontractor and what would the subcontractor do?

Is recycling the sole business of the company or is the company involved in other aspects of thesolid waste system, e.g. collection, MSW transfer station operation, VRF operation, etc.? Pleaselist all:

Total Number of Employees:

Number of Employees in Management Positions:

Does the company have any public recycling education programs for use within the HRRAregion? If so, please describe briefly below and/or append samples to the Response:


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Facility Information

Location of recycling processing facility:

Distance from RTI:

DEP permit number and/or DEC recyclables handling and recovery facility registration numberand expiration date:

Facility tonnage capacity limitation, if any:

Facility tonnage capacity available:

Is the facility able to process both dual stream and single stream recycling?

References

List municipalities, solid waste regions and other governmental agencies for which the Companycurrently provides recycling processing and marketing services with a contact person and phonenumber for each (to a maximum of ten):


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State and Federal Contracting Information

Is the Company certified as a Small Business Enterprise and/or a Woman or MinorityOwned Business? Y or N

Does the Company have an Affirmative Action Plan? Y or N Does the Company have a Sexual Harassment Prevention Plan? Y or N

Has the Company been cited for three or more willful violations of any occupationalhealth and safety law and/or regulation? Y or N

Does the Company have a Non-Discrimination Policy? Y or N Does the Company have a Drug-Free Workplace Policy? Y or N Has the Company ever been or is it presently debarred from participation in government

contracting? Y or N

Does the Company have a paid Lobbyist working on its behalf in any State or with theFederal government? Y or N

Does the Company have an Environmentally Preferable Purchasing Policy? Y or N

Disclosure of Criminal, Regulatory and/or Contractual ViolationsFailure to Disclose Anyof the Requested Information Will Result in the Companys Proposal Receiving No Further

ConsiderationIs the Company currently in violation or claimed to be in violation of any municipal orgovernmental contract or agreement with respect to recycling? If so, please provide a briefexplanation.

Has the Company, any owner, any shareholder or any management employee been convicted ofany crime, either misdemeanors or felonies, either federal or state? If so, please provide a briefdescription of the violation, date, the charge, the sentence and/or eventual resolution.


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Has the Company, any owner, any shareholder or any management employee been cited forviolation of any environmental laws or regulation of the United States or any State? If so, pleaseprovide a brief description of the violation, date, charge, and eventual resolution.

Insurance

Please append a sample of the Certificate of Insurance the Company would provide, in the eventits proposal is accepted, that would name HRRA, all HRRA member municipalities, and RTI asadditional insureds.

Estimated or Proposed Charges and Payments

Estimated per ton charge to transport program recyclables from RTI to Company'sfacility:

Estimated per ton charge to process and market recyclables delivered to Companysfacility:

o For dual stream recyclables:o For co-mingle in blue/clear bags:o For single steam recyclables:

Estimated per ton revenue share or program fee payment to HRRA:

Estimated all in tip fee necessary to cover tipping, weighing, billing, transferring,transporting, processing, marketing and HRRA payment:

Any other charges or costs for Company to process and market recyclables generatedwith HRRA member municipalities:

Any other payments or incentives proposed:

Commencement DateEstimated date Company can accept recyclables from RTI:


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Program Recyclables

List (or append a list of) all items Companys facility accepts for recycling:

Brief Background on the Company


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Proposal Outline

Provide a brief description of how your Company would propose to assist HRRA to meet itsgoals for a changed regional recycling system:

hrra rfp for single stream processing

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