Public Works Department
AUTHORIZATION TO INCREASE CONTRACT NO. 31537 WITH AMERICAN RECLAMATION, INC. BY $1,673,568 AND ADD TWO ADDITIONAL ONE-YEAR
OPTIONS TO PROVIDE MATERIAL RECOVERY PROCESSING
City Council
February 26, 2024
Item #12
Public Works Department
Recommendations
2 1. Find that the recommended actions are exempt from the California Environmental Quality Act (CEQA);
2. Authorize the City Manager to increase contract amount with American Reclamation, Inc. by $141,024 for the second one-year option from March 4, 2024 to March 4, 2025;
3. Authorize the City Manager to add two additional one-year options from March 4, 2025 to March 4, 2027 in an amount of $766,272 for each of the one-year options
Public Works Department
Timeline & Background
3 • August 19th, 2019 - City Council awards 3-year contract to American Reclamation Inc (ARI) for material recovery processing of curbside recyclables
• November 1st, 2019 - ARI suffers catastrophic fire
• November 2019 – September 2021 (ARI processing paused 18-months) • September 1st, 2021 - ARI resumes sorting operation
• September 14th, 2022 - ARI increased price from $42.24 to $89.88 per ton due to increased processing costs
• January 23rd, 2023 - City Council authorized contract increase on two additional one-year options from $325,248 to $625,248
• January 31st, 2024 – Staff was notified that ARI will increase price from $89.88 to $98.24 per ton due to increased processing costs effective 3/1/24
• February 26th, 2024 - Staff requests annual contract increase from $625,248 to $766,272 and two additional one-year contract extensions until March 2027 to monitor trends and closure of Scholl Canyon Landfill
Public Works Department
Summary of Proposed Changes
4 Contract No.31537 Contract
Term
Authorized
Contract
Amount
Proposed
Contract
Increase
Price per
Ton
Original 3 Year Contract
First Contract Extension Option
Second Contract Extension Option
(Approved by Council 8/19/19)
3/4/20 - 3/4/23 $975,774
$325,248
$325,248
$0 $42.24
First Contract Amendment:
-First Year Extension Option
-Second Year Extension Option
(Contract increases approved by Council
1/23/23)
3/4/23 - 3/4/24
3/4/24 – 3/4/25
$625,248
$625,248
$0
$0
$89.88
$89.88
Second Year Extension Option
(Recommend Council approve contract
increase)
3/4/24 – 3/4/25 $625,248 $141,024 $98.24 (as of
March 2024)
Proposed Two Additional One-Year Options
(Recommend Council approve extension
options & contract increase)
3/4/25 - 3/4/27 $0 $1,532,544
($766,272 per
year)
$98.24
Total $1,673,568
Public Works Department
Fiscal Impact
• Total cost of recommendations is $1,673,568
• Funding from existing Refuse Collection Fund (Fund 406); no impact to General Fund
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