City Council
Report
City Council Meeting: October 25, 2022
Agenda Item: 5.N
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Resource Recovery & Recycling
Subject: Award Bid to Arakelian Enterprises, Inc., dba Athens Services, for Construction and Demolition Materials Processing
Recommended Action
Staff recommends that the City Council:
1. Award RFP# 312 to Arakelian Enterprises, Inc., dba Athens Services for construction and demolition material processing and recycling services for the Public Works Department; and
2. Authorize the City Manager to negotiate and execute an agreement with Arakelian Enterprises, Inc., dba Athens Services, in an amount not to exceed $617,000 (including a 15% contingency) for two years, with three additional oneyear renewal options in the amount of $1,020,000 on the same terms and conditions for a total amount not to exceed $1,637,000 over a five-year period, with future year funding contingent on Council budget approval.
Summary
The City’s Capital Improvement Program (CIP) projects generate several thousand tons of construction and demolition (C&D) materials annually. These materials need to be sent to an approved C&D recycling facility for recycling, processing, and proper disposal. Following a competitive Request for Proposals process, staff recommends Arakelian Enterprises, Inc., dba Athens Services as the best contractor to provide C&D material processing and recycling services for the City.
Discussion
The City’s CIP projects, such as street paving and water infrastructure improvements, generate thousands of tons of C&D debris annually. These materials, such as concrete, 2 of 3
wood, metal, and glass need to be processed and recycled in an effort to reduce landfill disposal and work towards the City’s zero waste goals. Pursuant to the Santa Monica Municipal Code (SMMC Section 8.108.150), all public or private residential and commercial C&D projects in the City must recycle a minimum of 70% of the C&D materials generated by sending the materials to an approved C&D recycling facility.
Historically, the City’s CIP projects generated an average of 3,283 tons per year. In March 2022, the City sought proposals from permitted and experienced C&D recycling facilities to assist with the construction generated waste. The actual cost of this contract is dependent upon the amount of C&D materials generated and collected from City CIP projects. The contract budget is estimated based on an analysis of the City’s average historical C&D tonnage plus a 15% contingency.
Vendor Selection
Pre-Qualified Vendors
Arakelian Enterprises, Inc., dba Athens Services
Selection Criteria
Evaluation Criteria The training, credentials and experience of the person or firm; the demonstrated competence, ability, capacity and skill of the person or firm to perform the contract or provide the service promptly, within the time specified, and without delay; the capacity of the person or firm to perform the contract or provide the service promptly, within the time specified, and without delay; the sufficiency of the person’s or firm’s financial and other resources; and the character, integrity, reputation and judgment of the person or firm; the ability of the person or firm to provide such future service as may be needed; and the price which the person or firm proposes to charge, including whether the price is fair, reasonable and competitive. The City shall have absolute discretion in determining the applicability and weight of the criteria listed above.
The City is not required to select the proposal with the lowest price.
Municipal Code SMMC 2.24.190
RFQ Data
Date Posted Posted On Advertise In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
3/30/22 City's Online
Bidding Site
Santa Monica Daily Press 4 5/4/22
Justification to Short-List
Staff recommends Arakelian Enterprises, Inc., dba Athens Services, as the best proposer based on the company’s price, experience, and satisfactory customer service and performance as the City’s current organics material processor. 3 of 3
Athens’ proposal offers the lowest price per ton. Athens will utilize one of its own facilities, Crown Recycling, to accept, receive, process, and recycle C&D materials.
Finally, Crown Recycling had the highest reported recycling rate for C&D materials in Los Angeles County as of 2020, at 89.4%. Based on these criteria, the vendors are recommended as best qualified persons or firms.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Resource Recovery and Recycling Fund to award a contractual services agreement with Arakelian Enterprises, Inc., dba Athens Services for C&D processing and recycling services as follows:
Contract Request
FY 2022-23
Request Amount
Future Years Amount Department Account # Total Contract Amount
$226,500 $1,410,500 54500002.523010 $1,637,000
Future year funding is contingent on Council budget approval.
Prepared By: Ryan Kraemer, Senior Administrative Analyst Approved Forwarded to Council
Attachments:
A. Athens Services Oaks Form