HomeMy WebLinkAboutF4 Cardboard Bailing Award
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Steven D. Johnson, Superintendent Solid Waste Division
Chris Kukulski, City Manager
SUBJECT: Award Cardboard Recycling Bid
MEETING DATE: September 25, 2006
BACKGROUND: The Division was baling cardboard at a significant annual loss prior to May
2006. On May 17 the Superintendent began to experiment with stopping our baling operation
and using a local recycling firm. The experiment turned out to be financially profitable with a
return averaging $5,988.00 for the three months, June, July and August. The contract is based on
a 50—50 split of the market price. The division expenses decreased an estimated $80,000.00 so
we are approaching breakeven given the continued cost of collection and delivery value. With
the positive results of the experiment the Division chose to put the cardboard operation out to
public bid. Only one bid was received and that was received from Four Corners Recycling, 2641
Jackrabbit Lane Belgrade, MT. The Four Corners bid specifications are the same as were
incorporated in the provisions of the experiment. A copy of the proposal is enclosed. The
contract period is from October 1, 2006 thru September 30, 2008.
RECOMMENDATION: The Commission award the cardboard recycling bid to Four Corners
Recycling and authorize the City Manager to execute a two year contract with Four Corners
Recycling for this service.
FISCAL EFFECTS: The fiscal impacts will be positive. With a projected income in excess
of $50,000.00 annually which will decrease the Division’s expenses and eliminate the net
loss that previously resulted from baling operation.
ALTERNATIVES: As suggested by the City Commission.
Respectfully submitted,
Steven Johnson, Superintendent_________________________________
____________________________
Author Chris A. Kukulski, City Manager
Attachments:
Proposal
Report compiled on September 20, 2004