transmittal 1 department of public works bureau of

Transmittal 1

DEPARTMENT OF PUBLIC WORKS

BUREAU OF SANITATION BUREAU OF CONTRACT ADMINISTRATION JOINT BOARD REPORT NO. 1 February 9, 2015

CD: ALL

AUTHORITY TO AWARD AND EXECUTE A PERSONAL SERVICES CONTRACT WITH B.J. USED TIRE AND RUBBER RECYCLING, INC. FOR COLLECTION, TRANSPORTATION, AND PROCESSING OF USED/VVASTE TIRES FOR BENEFICIAL REUSE

RECOMMENDATIONS

1. Find TTSI logistics to be a non-responsive proposer for failing to pass the requirements of the Business Inclusion Program (BIP).

2. Approve and forward this report with transmittals to the Mayor and the City Council with the request that the Board of Public Works (Board) be authorized to execute a personal services contract with B.J. Used Tire and Rubber Recycling, Inc. (B.J.Tire) to collect, transport, and process used/waste tires for beneficial reuse and/or disposal pursuant to California Public Resources Code (PRC), § 42861 (a) and § 42951 (b). The term of the proposed agreement shall be five (5) years from the date of execution with one (1) option to renew for an additional five (5) years.

3. Upon approval by the Mayor and City Council, authorize the President or two members of the Board to execute the contract.

4. Upon execution, return the contract to Los Angeles Sanitation (LASAN) for further processing. For pick up, contact Quonita Anderson of the Board Report Section at 213-485-4246.

TRANSMITTALS

1. Copy of the proposed personal services contract between the City of Los Angeles (City) and B.J. Used Tire and Rubber Recycling, Inc. for the collection, transportation, and processing of used/waste tires for beneficial reuse and/or disposal.

2. Copy of the adopted LASAN and Bureau of Contract Administration Joint Board Report No.1, dated July 3, 2013, authorizing LASAN to distribute a Request for Proposals (RFP) and to negotiate a contract for the collection, transportation and processing of used/waste tires for beneficial reuse and/or disposal.

3. Copy of the letter sent by LASAN, Central Contracts Unit (CCU) to TISI Logistics, dated December 5, 2013, regarding the SIP evaluation of TTSI Logistics.

BUREAU OF SANITATION BUREAU OF CONTRACT ADMINISTRATION JOINT BOARD REPORT NO.1 February 9, 2015

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DISCUSSION

Project Background: Since the passage of the California Tire Recycling Act of 1989 and its subsequent amendments, California has dramatically increased the number of waste tires diverted from landfills for beneficial end uses. CalRecycle is mandated to regulate and manage used/waste tires within the state. To further strengthen waste tire management, Senate Bill (SB) 876 was passed in 2000 to augment the Tire Recycling Act of 1989.

Based on CalRecycle's waste tire generation factor of 1.2 tires per person per year, the City of Los Angeles (City) generates about 4.8 million tires per year and approximately 72. 7% of these used/waste tires are diverted to beneficial end uses. However, this means that approximately 1.3 million tires are being abandoned and need to be collected for beneficial use to assist in achieving the City's zero waste goals.

Based on funding availability, LASAN provides several waste· tire recycling programs that provide an environmentally preferable option for the City to recycle used/waste tires. LASAN's Solid Resources Support Services Division (SRSSD), Solid Resources South Collection Division (SRSCD) and Solid Resources Valley Collection Division (SRVCD) jointly manage the following programs:

• LASAN Residential Used/Waste Tire Cleanup - This program includes the collection of abandoned used/waste tires within the residential areas. LASAN crews conduct tire cleanup sweeps on a regular basis citywide. This program is partially funded by a grant from CalRecycle through their Local Government Waste Tire Cleanup Program.

• LASAN Residential Used/Waste Tire Amnesty Events - This program involves date specific amnesty events for the residents to drop-off their used/waste tires at convenient locations free of charge. LASAN holds a minimum of six (6) amnesty events per year to collect used/waste tires, where City residents may bring up to nine (9) tires per trip to each event in accordance with the California Public Resources Code §42954. It is estimated that up to 3,600 used/waste tires are collected annually from this program. These amnesty events are partially funded by a grant from CalRecycle through their Local Government Waste Tire Amnesty Events Grant Program.

• LASAN Residential Used/Waste Tire Drop-off - This program provides recycling for residents allowing them to drop-off up to four (4) passenger tires at any of LASAN's district yards during the calendar year. Each of LASAN's district yards have a Tire Program Identification Number (TPID) issued by CalRecycle.

LASAN's Waste Tire Recycling program currently incorporates related programs which include tire collection. These programs include, but are not limited to the following:


• South Los Angeles Alley Cleanup Program - This program focuses on the most blighted alleys in South Los Angeles spanning Council Districts (CDs) 8,9, 10 and 15. LASAN receives a grant from CalRecycle's Illegal Dumping Program to target specific alley cleanup programs.

• Keep It Clean Campaign Program - LASAN began a pilot program on August 7, 2013, "Keep It Clean," in CD-1 to immediately address the overwhelming amount of abandoned waste, including but not limited to, used/waste tires, found in alleys, streets, and vacant lots located within CD-1 neighborhoods. CD-1 has provided funding for the waste collection and the additional dedicated staffing through LASAN's contractual relationship with Los Angeles Conservation Corps (LACC).

• Clean Streets Program - LASAN proposes that the "Keep It Clean Campaign" model in CD-1 be implemented on a citywide basis, which will include the collection of used/waste tires by a three team strike force as proposed in the FY2014-15 budget.

The used/waste tires collected from the above programs are transported and stored at one of LASAN's six (6) district yards located throughout the City prior to contractor's collection, transportation, and tire processing for beneficial reuse and/or disposal. Approximately 650 tons of waste tires are collected annually citywide from these programs and of this amount, LASAN estimates 50%, or 26,000 tires, are collected from the City's residential right-of-ways.

Scope of Services: The selected proposer will be required to perform the following as stated in the contract: {Transmittal No.1)

A. Collection of Used/Waste Tires The contractor shall be responsible for collecting approximately 26,000 used/waste tires per year from LASAN's six (6) district yards or other City locations approved by LASAN, contingent upon sufficient funding.

Used/Waste tires in this contract may include, but are not limited to, the following: 1. Passenger tires 2. Light truck tires 3. Truck tires 4. Passenger tires with rim 5. Light truck tires with rim 6. Truck tires with rim 7. Off-The-Road (OTR) tires (various sizes)

The contractor shall collect used/waste tires from LASAN's six (6) district yards on an as-needed basis. The contractor shall also collect from other City department locations upon approval by LASAN.


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Upon request by the City, the contractor shall provide roll-off boxes to the LASAN's district yards or other City departmental locations for the storage and collection of used/waste tires. Contractor assumes full title of the used/waste tires upon collection from a City facility.

8. Transport of used/waste tires The contractor shall be responsible for transporting used/waste tires collected· from the district yards and other City locations to a certified waste tire processing facility for recycling and beneficial reuse pursuant to the California Public Resources Code (PRC), Sections 42861 (a)(e) and 42951 (b).

No minimum commitment level of used/waste tires shall be applied to this contract, and the City makes no assurances regarding the type of used/waste tires collected from the City. The collection and transport of used/waste tires for processing and beneficial reuse shall be in accordance with applicable laws, rules, regulations, and permit conditions of federal, state, and local agencies.

The used/waste tires must be transported to a CalRecycle approved waste tire processing facility that recycles the used/waste tires for beneficial reuse in local markets, including but not limited to providing feedstock for rubberized slurry seal for paving of City streets by the Bureau of Street Services (BSS). Used/waste tires that are collected can be recycled or processed in the production of new rubber products such as artificial turf, ground cover for playgrounds, surface material for running tracks and athletic fields, or can be re-used as re-treaded tires for resale in accordance with the California Public Resources Code § 42411

The City of Los Angeles uses the information generated by the waste tire manifest system to ensure that all waste tires generated and transported within the City have been accounted for and delivered to CalRecycle permitted waste tire processing facilities. Discrepancies will be actively enforced and the City may request an audit to investigate the discrepancy as described in Public Resources Code (PRC) Section 42962.

RFP Selection and Evaluation Process: On July 3, 2013, the Board authorized LASAN to distribute a RFP and negotiate a contract with the top ranked proposer for the collection, transportation and processing of used/waste tires for beneficial reuse (Transmittal No. 2).

In response to the RFP, LASAN received three (3) proposals on August 29, 2013. One (1) of the proposers, TTSI Logistics, was deemed non-responsive for failing to pass the BIP requirements, as per Mayor's Executive Directive No. 14. Correspondence was sent from Central Contracts Units (CCU) to TTSI Logistics on December 5, 2013 to explain its nonresponsiveness; however the CCU received no response (Transmittal No. 3) .. The remaining two (2) responsive proposals from B.J. Used Tire and Rubber Recycling Inc. and Magallanes Tire Recycling were evaluated by a committee comprised of LASAN staff based on the criteria outlined in the RFP. The evaluation criteria are shown in Table 1.


Based on the evaluation criteria, B.J. Used Tire and Rubber Recycling Inc. ranked number one (1 ), and Magallanes Tire Recycling ranked number two (2)(see Table 2):

Table 1 - Evaluation Criteria

Evaluation Criteria Maximum Percentage

Prior Experience 15 Proposal

20 Responsiveness Technical/Safety

25 Requirements Financial

15 Reauirements Proposed Service Fee

25 and Revenue Sharino

Local Business Preference Program (Select Only One)

Local Business 8 Enterprises(LBE) Subcontractors are

5 LBEs TOTAL 108

Table 2 - Evaluation Results

Rank Proposer Score

1 B.J. Used Tire and 71 Rubber Recycling Inc.

2 Magallanes Tire 41

Recvclino

Therefore, LASAN is proposing that B.J. Used Tire and Rubber Recycling, Inc. be selected as the contractor for the collection, transportation, and processing of used/waste tires for beneficial reuse due to their experience and low service fee.


Proposed Term of Contract and Estimated Value of the Contract: The term of the proposed contract shall be five (5) years from the date of execution with one (1) option to renew for an additional five (5) years. The estimated value of the contract over ten (10) years (including the renewal option) is $4,000,000 for collection, transportation, and processing of used/waste tires for beneficial reuse.

Contractor Schedule of Services and Costs: The following is the contractor's pricing for the collection, recycling/disposal of used/waste tires;

Schedule 1A- Price by weight of Used/waste tires delivered to the contractor's facility :

Used/waste tires Cost per ton* Equivalent Weight** (with or without rim)

Passenger tire (PT) 100 PT= 1 ton (20lbs/tire)

Light truck tire (LT) $ 50.00 75 LT = 1 ton (26. ?lbs/tire)

Truck tire (TT) 20 TT= 1 ton (100 lbs/tire)

OTR/Tractor/Forklift $ 110.00

* Used/waste tires shall be in a roll-off box ready for weighing.

-

**Equivalent Weight as per General Tire Industry Standard, Rubber Manufacturers Association (RMA)

Schedule 18 - Price per used/waste tire delivered to the tct'tTt con ra ors ac1 HY:

Used/waste tires Cost per tire***

Without rim

Passenger tire $1.00

Light truck tire $1.50

Truck tire $3.00

OTR/Tractor/Forklift $30.00

***Includes cost of handling,processing/recyc/ingldisposal only.

With rim

$4.75

$ 5.75

$ 6.75

$45.00


Schedule 2 - Contractor's collection, transportation and processing cost of used/waste tires from · LASAN's district yards or other City locations:

Used/waste tires Cost per tire****

Without rim With rim

Passenger tire $1.50 ' $5.00

Light truck tire $ 2.00 $6.00

Truck tire $4.00 · $ 7.00

OTR/Tractor/Forklift $ 40.00 $45.00

****Includes cost of collection, hauling and processing.

Schedule 3 - Use of containers supplied by the contractor:

Container Type Capacity Rate***** ($/month)

Roll-off box 60. cubic yard $ 250.00

***"'*All inclusive if

contractor's labor is not required to be deployed. Rate does not include the cost per tire identified in Schedule 2.

Notification of Intent to Contract: The required Notification of Intent to Contract was filed with the Office of the City Administrative Officer (CAO) Clearinghouse on August 23, 2011 and re-submitted on February 12, 2013.

Charter Section 1022: The CAO determined on December 18, 2012, that there is insufficient existing City staff to perform the work proposed to be contracted and additional staff cannot be employed and trained in a timely manner to meet LASAN's needs.


Business Inclusion Program: Per Mayor's Executive Directive No. 14, this contract is subject to the Business Inclusion Program (BIP) requirements. The City established anticipated participation levels for this contract of 4% MBE, 2% WBE, 1% SBE, 0% EBE, and 0% DVBE. 8.J. Used Tire and Rubber Recycling, Inc. pledged the following participation levels: 0% MBE, 0% WBE, 0% OBE, 0% SBE, 0% EBE, and 0% DVBE.

Other City Requirements: B.J. Used Tire and Rubber Recycling, Inc. shall comply with all City requirements including the following:

• City Business Tax Registration Certificate • City of Los Angeles Non-Discrimination - Equal Employment Opportunity - Affirmative

Action Program • Insurance • Equal Benefits Ordinance • Living Wage Ordinance and Service Contractor Worker Retention Ordinance • Slavery Disclosure Ordinance • Los Angeles Residence Information Form • Non-Collusion Affidavit • Municipal Lobbying Ordinance/ Bidder Certification CEC Form 50 • City of Los Angeles Contract History Form • First Source Hiring Ordinance • Contract Bidder Campaign Contribution and Fundraising Restrictions/Bidder

Certification CEC Form 55 • Child Support Obligation Policy • Americans with Disabilities Act • Iran Contracting Act of 2010

Local Business Preference Program: The Local Business Preference Program (LBPP) which was established by Ordinance No. 181910 did not have any bearing on the evaluations as neither proposer was certified local businesses. Therefore, no additional points were awarded to either proposer.

Contractor Responsibility Ordinance: All contractors participating in this program are subject to compliance with the requirements specified in the City of Los Angeles' Contractor Responsibility Ordinance No. 173677, (Article 14, Chapter 1, Division 10, LA.AC.). Failure to comply with all requirements specified in the Ordinance will render the contract subject to termination pursuant to the conditions expressed therein.


Contract Administration: The responsibility for the administration of this contract will be with the Solid Resources Support Services Division, LASAN.

Contractor Performance Evaluation: In accordance with Article 13, Chapter 1, Division 10 of the City of Los Angeles Administrative Code, the appropriate City personnel responsible for the quality control of this personal services contract shall submit Contractor Performance Evaluation Reports to the Bureau of Contract Administration upon completion of this contract.

Headquarters and Workforce Information: The headquarters of B.J. Used Tire and Rubber Recycling, Inc. is located at 1170 Hastings Ranch Drive, Pasadena, California 91107. The contractor has a staff of twelve (12) employees, of which none reside in the City of Los Angeles.

City Attorney Review: The City Attorney's Office reviewed the attached contract and approved it as to form.

Status of Financing: The estimated value of the contract over ten (10) years (including the renewal option) is $4,000,000 for collection, transportation, and processing of used/waste tires for beneficial reuse. LASAN set aside $900,000 in Fund 508, Department 50, Account 50HX82 to front-fund the program cost. Future funding will be obtained through the normal budgetary process. At the discretion of the Director of the LASAN or appointed designee, the funding source may be changed to other accounts in Fund 508, Fund 50D, Fund 509, or any established Solid Waste Resources Revenue Bond funds.

The contract shall include a Financial Liability Clause, which states, "The City's liability under this contract shall only be to the extent of the present City appropriation to fund the contract. However, if the City shall appropriate funds for any succeeding years, the City's liability shall be extended to the extent of such appropriation, subject to the terms and conditions of the contract.~

Bureau of Sanitation Board Reoort No. February $ 2015

COMPLIANCE REVIEW PERFORMED AND APPROVED BY:

~~ HANNAH CHOI, Program Manager Office of Contract Compliance Bureau of Contract Administration

APPROVED AS TO FUNDS:

Director

DateZ ?Otf

Prepared by: Ronalda D. Milo, SRSSD (213) 485-3568

OHN L. REAMER, Jr., Director Bureau of Contract Administration

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