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Home My WebLink AboutAgenda Report - May 6, 1992 (81)w c CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Award of Contract for Disposal of Hazardous waste MEETING DATE: May 6, 1992 PREPARED BY: City Manager RECOMMENDED ACTION: That the City Council award the contract for disposal of hazardous waste located at the Municipal Service Center (MSC) to USPCI. BACKGROUND INFORMATION: The City received two bid proposals for the analysis, packaging, transportation, and disposal of hazardous waste located at the MSC corporation yard. Although USPCI was the higher bidder at $12,880, City stafi is recommending that Falcon Energy Associates, the low bidder at $7,895, not be selected to complete this job due to exceptions as stated in their bid proposal. Falcon Energy Associates' bid states that they would retain the right to either incinerate or otherwise recycle the waste into an alternative fuels program should they be awarded the contract. The Request for Bids specifically stated that the hazardous waste must be incinerated as the only means of disposal. City staff, realizing that the hazardous waste has accumulated over time, and acknowledging that the materils are actually "unknown substances" at this time, are highly recommending that the City absolve itself of any future liability by totally destructing and disposing of said hazardous waste. USPCI, in its bid, has agreed to dispose of the hazardous waste by incineration. Additionally, USPCI has ,.greed to prov de the City with the Certificate of Disposal within nine montes from the date the materials are transported from the City of Lodi at which time the City wi:l pay the remainder of the bill due to USPCI. Falcon Energy Associatrs took exception to the City's payment procedures of retaining 10`t until completion of the project. Falcon Energy Associates' bid states that all funds are net 30 days from pickup and that they have no control over the treatment, storage, and disposal facility relative to issuance of Certificates. City staff contend that payment for services should not be rendered until completion of the job, thus encouraging the vendor to follow through on the final disposal of the material. APPROVED _ _.__.._-_..._. C• TF/OMASA PETERSON •cvu,w w�M• City MA, 890, J CC , .b. /'k AGENDA TITLE: Award of Contract for Disposal of Hazardous Waste MEETING DATE: May 6, 1992 PAGE TWO As a final note, Falcon Energy Associates' bid of 57.895 does not include the price of sales or use taxes, or similar taxes now imposed by Federal, State or other governmental agencies. USKI`s bid proposal of $12,880 does include the costs for these additional fees as required in the Request for Bids. FUNDING: Contingency Fund Respectfully submitted, v11 Thomas A. Peterson City Manager Prepared by Janet S. Keeter Administrative Assistant to the City Manager TAP:br Attachments CCC0M485/TXTA.G?A 17 APRIL, 1992 ASSOCIATES IN PARTNER5FIlP WITH HE ENVIRONMENT NR. JOE. E. WR1 S PURCHASING�lOFF ICER L611�LIFORNIA 95241-1910 DEAR Pt. HAF4US, WE VERY MUCH APPRECIATE YOUR CONSIDERATION OF FALCON ENERGY REGARDING THE CITY OF LO'D I RID PROPOSAL 9 1336 ENTITLED "DISPOSAL OF KAzARDQUS WASTE". WE ARE UNSURE OF VMICH OF OUR EXCEPTIONS YOUR STAFF FELT DID NOT MEET THE REOUIREMENTS OF YOUR BID RROCESS AS YOU INDICATED CNLY A GENERAL 0&1ECTION IN YOUR LETTER. f WOULD ALSO LIKE TO BRING TO YOUR ATTENTIGAN MAT OUR BID WAS, IN FACT, SUBMITTED `.V1 THE PROPOSAI. FORM PROVIDED BY THE CITY., OUR PROPOSAL 9 13Y, EXCEPIIONS AND ADDED CONCERNS WERE INCORPORATED BY REFERENCE AS WAS STATE9 IN THE BID PACKAGE SUBMITTAL. ACCORDINd TO YOUR BID PACIcAEF , EXCEPTIONS WERE AN ALLOWABLE PART OF T H BID PROCESS. DISPOSAL OF HAZARDOUS WACTE IS A COMPLICATED PROCESS WITH SUBSTANTIAL LIABILITY ATTACHED TMRETO. VIE FIND FREWENTLY THAT HAZARDOUS WASTE BID PACKAGES DO NOT ADDRESS ISSUES THAT ARE LEGALLY A NECESSITY AND REWIRED BY STATUTES, AS AN E)MAPLE, YOUR BID PACKAGE IS OFFERING A FWZARDOUS WASTE STREAM FOR DISPOSAL AND ALL YOUR WASTE STREAMS ARE UNKNOWNS. PROPER AYD LEGAL STEPS PLIST BE TAKEN TO IDENTIFY YOUR MATERIAL PRIOR TO OFFERING IT FOR DISPOSAL. VISE WOULD BE AMENABLE TO A MEETING WHEREIN YOUR SPECIFIC OBJECTIONS COULD BE MADE AND WE COULD POSSIBLY RESOLVE YOUR OBJECTIONS TO THE CITY OF L.OD I S SATISFACTION. AS WE ARE THE LOW BIDDER, IT WOULD SEEM TO BE IN THE BEST INTERESTS OF THE CIT! TO EFFECUATE SUCH M A(;REEMENT OR AN EFFORT TO DO SO. IF THIS IS NOT POSSIBLE PURSUANT TO YOUR BID PROCESS, WE DO INTEND TO APPEAL THIS RECOMMENDATION TO THE L.oD i W I TY ;GUMC I L AT THE MEETING SCHEDULED FOR • AY 5, 19-92. WE ARE FORWARDING A :,OP'Y OF THIS LETTER TO THE CITY CLERK'S OFFICE AS A MEANS OF P Bo„ 1257 ,; ic: , �3 .,:.. �,c., S .•r, .,, Stc,�i�tu Ca gi2�s N M PAGE TWO - t. WRIS -Air- IAIUICATING Olt INTENT TO sD APPEAR, AGAIN, WE DO APPRECIATE YOUR CONSIDERATION AND HOPE WE MAY CONTINUE TO BID ON THE CITY OF LDDI`S WORK 1N THE ENVIRONMENTAL SERVICES AREA. YOURS TRULY,E LUL I r 1�1 CE sPR€S INT AND4kSE SEG I STERED�NV I ROM'ENTA03121 ITTY A r GER j TV �'r'-. .Io S. Cmxmcm. Eso. C1iY COUNCIL JAMES W. PINKERTON. Maw* PHILUP A. PENNINO Mayor Pm TmTm DMO M. HINCHMAN JACK A. sIEGLOCK ;OHN R, I%VmM WM April 16, 1992 Mr. James Hoblitzell Falcon Energy P.O. Box 1257 Stockton. CA 95201 Dear Mr. Hoblitzell: CITY OF LODI CITY HALL, 221 WEST PIE STREET P.Q BOX 3006 LODI, CALIFORNIA 95241-1910 1209) 334-5634 FAX (209) 33MnS e "k. Thank you for submitting your bid proposal P1336 for the removal, transportation and disposal of waste ivrateo at the City's Municipal Service Center. THOMAS A. PETERSO14 CNY Mw"" ALICE M. REIMCHE Chy Cluk BOB MCNATT City Atony After evaluating the bids, staff have determined that your proposal, with the exceptions, does not meet the City's reauirements. Staff i s therefore making the recommendation that the City Council award the bid the second -lowest bidder, USPCI. As the apparent low bidder, You have the right to appeal this recommendation, and may do so at the Citv Council meeting scheduled for 7:30 p.m., Wednesday, May b, 1992, in the Carnegie Forum, 305 West Pine Street, Lodi. Ifyou plan to address the City Council i n support of your'bid please notify the City Clerk's office -at (209) 333-6702 prior t o May 1, 1992. I would also like to emphasize the importance of submitting your bid only on the proposal form rtrovided by the City. Terms and conditions which appear on bidders' ouotation forms and which are in conflict with the Zit,y's bid terms and conditions are considered in the evaluatior process. and may be regarded as exceptions which are unacceptable to the City. Thank you for your bid, and for your interest in doing business with the City of Lodi . 5 cerely, el E. F4arri s Purchasing Officer- City fficerCity of Lod} cc: City Manzger City Attornev City I'Te"k RESOLUTION NO. 92-85 A RESOLUTION OF THE LODI C I TY COUNCIL AWARDING THE CONTRACT FOR THE DISPOSAL OF HAZARDOUS WASTE ,-OCATED AT TIHE MUNICIPAL SERVICE CENTER ===ssm=eaesssm=acscrsm-ca=assx�===,==ca_xrxre=z====exseTc:�s�aasa�za=sr V*EREAS, in answer to notice duly published in accordance with law and toe order of this City Council. sealed bids were received and publicly opened on April 2. 1992 at 11:00 am. for the contract for disposal of hazardous waste located at the Municipal Service Center, described in the specifications therefor approved by the City Council on March 18, 1992; and WHEREAS, said bids have been compared. checked, and tabulated and a report thereof filed with the City Manager as ;ollows: *Falcon Energy Associates S 7,895.00 USPCI 512,880 .00 *Did not meet bid specif icationlbid exceptions. WHEREAS, the City Manager recommends that award of the contract for disposal of hazardous waste, be made to the second lowest bidder USPCI ; NOW, THEREFORE, BE IT RESOLVED by the Lodi City Council that award of contract for the disposal of hazardous waste at the Municipal Service Center be and the same is hereby awarded to USPCI, the second lowest bidder, in the amount of $12,880.00. Dated: May 6. 1992 ��as�===ata=��sWsaas�=xxmxrcexcc�.axamsSczn�aas: c�scxa�tzaxxs�aaFam�xm�y I hereby certify that Resolution No. 92-85 was passed and adopted by the City Council of the City of Lodi in a regular meeting held May 6, 1992 by the following vote: Ayes: Council Members - Noes: Council Members Absent: Council Members Alice M. Re imche City Clerk 9 -81, RES9285iTX7A.01V CITY COUNCIL TAMES W PINKERTON, Mayer PHILLIP A. PENNINO Mayor Pro Tempore DAVID M. HINCHMAN ;ACK A. SIECtOCK JOHN R. (Randy) SNDER April 16, 1992 Mr. 3ames Hoblitzell Falcon Energy P.O. Box 1257 Stockton, CA 95241 Dear Mr. Hob IitZeII, CITY OF LODI CITY HALL, 221 WEST PINE STREET P.O. E10K 3006 LODI. CALIFORNIA 95241-1910 (2091314-5634 FAX 12M 3114"S Thank you for sunmitt,ng your oid orocosai =13'26 for the removbi, transoortation and disoosal of waste locatea at the City's Municipal Service Center. THOMAS A. PETERSON City Mans" ALICE M REIMCHE City Clerk 009 WNATT City Afterwy After evaluating the bids. staff have determined that your orobosai, with the exceptions. noes not meet the City'; reouirements. Staff is therefore maid na the recommenaat i,)n that the C ; ty Counci s award the bid the second -lowest bidder, USPCI. As the aooarent 'ow nave Lne -lgnt to 3uneal this recommendat; - at the C.tv Counc• . meeting scheduled for 7:30 D.M., may 6, 1992, in the Carnegie Forum. 305 West Pine Street. Lodi. ,f you Plan to address the City .'ouncil .n Supppr•_ of your bid Dlease notify tsie Citv Clerks office 3t 12091 333-5702 prior to May 1. 199?. I would also like to enonasize the .mcortance of submitting your aid only on the oraoosal form provided by the Citv. Terms and conditions which appear on )idders' auotat•on 'orms and wn,ch art in conflict with the itv's bio terms and conaitions aro consinered in the evaluation process. 3nd may be ,egaresea as exceotlonS wn.c^ ire unacceDtable to the itv. ihank you for your bid. and tor your -steres' .n W ng ousiness with the City -)f Si cereloi. el Ka+� P•Irchasinq 0f*• C:ty of Lon C..: City Manage,' City Clerk TO: Finance Director FROM: City Clerk CITY OF LODI SPECIAL ALLOCATION REQUES1 DATE: May e, 1992 PROJECT NUMEER: Request is made for funds to accomplish the following project which was not included in the current budget: Description of Project Estimated Cost Contract for disposal of hazardous waste located at the Municipal Service Center awarded to USPCI in the amount of $12,880.00. (See Resolution No. 92-85) Funding - Contingency Fund - S12.88O.O0 (If you need more space, use additional sheet and attach to this form) Date of Approval - May 6, 1992 Amount Approved - Not to exceed $12,880 Counci 1 XXXXX City Manager FUND OR ACCOUNT TO BE CHARGED C Current Budget Contingent Fund b Capital Outlay Reserve 3 Utility Outlay Reserve S __ Hotel/Motel Tax Reserve - S General Fund Operating Reserve Prior Year Reserve General Fund Surplus S Gas Tax Fund S Other (Election) S �n�, ;N fice e�me k jr►ance Director City Clerk Submit this form in duplicate to the Vinance Director. Distributor after approval will be as follows: t) Originatinq Department 2) finance Pepartment RESOLUTION NO. 92-85 _-xSxaxxxrcaxxnxsss:exxxx A RESOLUTION OF THE LODI CITY COUNCIL AWARDING THE CONTRACT FOR THE DISPOSAL OF HAZARDOUS WASTE LOCATED AT THE MUNICIPAL SERVICE CENTER -axxxsasxxxxxxxxzcx=szzzlzS,sLszaE===�-�=ssas:.+lalA3iilLaxlati�liiRrII=s WHEREAS, in answer to notice duly published in accordance with law and the order of this City Council, sealed bids were received and publicly opened on April 2, 1992 at 12:00 a.m. for the contract for disposal of hazardous waste located at the Municipal Service Center, described in the specifications therefor approved by the City Council on March 18, 1992; and WHEREAS, said bids have been compared, checked, and tabulated and a report thereof filed with the City Manager as follows: 'Falcon Energy Associates S 7,995.00 usrlci $12,880.00 *Did not meet bid specification/bid exceptions. WHEREAS, the City Manager recommends that award of the contract for disposal of hazardous waste. be made to the second lowest bidder USKI : NOW, THEREFORE, BE IT RESOLVED by the Lodi City Council that award of contract for the disposal of hazardous waste at the Municipal Service Center be and the same is hereby awarded to USPCI, the second lowest bidder, in the amount of 512,380.00. Dated: May 6, 1992 -_=axxxxs=-x=xxcxaass�xsraaxax:cxsstxxsesrsexY:assassxtmsixsf�s}si�¢�resi: 1 hereby certify that Resolution No. 92-85 was passed and adopted by the City Council of the City of Lodi in a regular meeting held May 6, 1992 by the following vote: Ayes: Count:il Members - 5ieglock, Snider and Pinjerton (Mayor) Noes: Counci 1 Members - Penn i no Absent: Council Members - Hinchman Alice f0. Peimcbe City Clark '32 -81 V ~/�►C CITY OF LODI (7e .?'Gp SPLCIAL ALLOCATION REQUEST TO: Finance Director DATE: May 7, 1992 FROM: City Clerk PROJECT NUMBER: i l . 0_0210.0:11 _&99 Request is made for funds to accomplish the following project which was not included in the current budget: Description of Project _ Estimated Cost Contract for disposal of hazardous waste located at the Municipal Service Center awarded to USPCI in the amount of S12.880.00. (See Resolution No, 92-85) Funding - Contingency Fund - $12,880.00 (If you need more space, use additional sheet and attach to this forrr) Date of Approval - May 6, 1992 Amount Approved - Not to exceed S12.880 Counci 1 XXXXX City Manager FUND OR ACCOUNT TO BE CHARGED Current Budget 5 ______. Prior Year Reserve S _ Contingent Fund $ 12 , 8R0 General Fund Surplus Capital Outlay Reserve S_ Gas Tax , and S_�__�__ Utility Outlay Reserve _A _ 0 ttier (E l eLt ion) Hotel/Motel Tax Reserve-S-- General eserve-SGeneral Fund Operating Reserve I�KonFlyft- Finance Director t -Ti Ce IT7 R�me City Clerk Submit this form in dupliCate to the Finance [}irvt tor_ Distributio after approval will be as follows: I) Originating Dep' 1 Financt° [}eF rtmtnt