HomeMy WebLinkAbout1993-02-22 93-162 ORDERUI
Date wY22-93"
Yloam No. 93-162
Item/Subject: MER: Tcmefet Approptiat£on. fox Purebase of Hri¢
Responsible DepartmentFueness,
Commentary:
As tle Cotonou ucii 1 Fe cail, = on4ina1 approved join brnri pcopoaai fwc the
Public vxs]® Department included $43,000 far: a Gslez.._nt y, Hie State
withdcea aPpcwal of this purchase aver the City's objectiau. A settlamsent
tetceen the City and Strata xeatocsl time fnMing to be ueoci on Tile reaeirdat
of the Public votI® project.
Staff conditioners to support time reset for Hsis sswiprent in oNaz to berate an
effative aM efficient recycling progrmn. Tta attached circlet woalcl
the transfer of Funds wt tla Capital find to p,¢cbase He baler. TNs
it® aFnaars £ox referral to committees at which tiers staff will tcsr a t e
researa for this recmv®tletion.
Department x[vd
Managers Commands:WLAk
0 pa l a nA o- w•ne �t7� ��Qt.✓a�� (m
- Ciey Mamgn
Punctured Information:
budget Approval:
Fiwn[e Die[
Legal Approval
ay Spas vv
Introduced For
C Passage
,_First Reading Page—of—
93-162
Assigned to Co,me0or Sax 1, Febmary 22, 1993
i CITY OF BANGOR
(TITLE.) (OrbU....... ...ar tec.4n=[�.£onPuccnase..ot.>3aier ......
aveae alt co.awi Of City of Da .-
ORDS n,
TEAT $43,000 i harry trmufexxetl £or tha £ollw Capital
PmJe a t £or the pssebase o£ a lel¢ at U rC lir Facility:
5260(5312) �9i Carolition Ital>ris Facility $32,000
(5327) OmnUi OeD Facility 11,000
1
93-162
O N DER
IN CITY COUNCIL
Title,
February 22, 1993
Referred to Appropriate
Transfer PC°rchase of
Rx.e..n
Committee.
I/
ea lex
T CITY Lead
.....4 %S.Sq"
"."'.......
IN CITY COUNCIL
March 10, 1993 Aup ed to
Nation to Table With Instruction
for staff t0 put this out t0 Up
failed to pass by the following
yes and n0 votes. Councilors - Councilman
voting yes: Bragg. Cohen and Stone.
Councilors voting no : Blanchette, Frankel. --
Saucy and Sullivan.Councilors absent ._
Saxl and Shubert. Order Passed by the
following yea and no votes. Councilors
voting yea: Blanchette, Bragg. Frankel. -
Soucy and Sullivan. Councilors voting n
Cohen and Stone. Councilors absent: Sexy _
and Shubert.
!CUITYIT4 4 .
CLERK
CITY OF BANGOR, MAINE
Engineering Department
M¢Mo February 25, 1993
To: City Council, City Manager
From: James D. Ring, City Engineer
Subject: Public Works Department Request to Purchase
a Recyking Baler
As you know, the Public War" Department has requested authorisation
to purchase a baler to process newspaper and other recyclables generated
by the City's recycling programa This memorandum is to provide relevant
background information and justification for the request.
For the past year the Public Works Department has been palletizing
newspaper at the City's recycling center on Maine Avenue. The collection
truck drives into the recycliag center and unloads in a designated area.
Crews then go through the load and r contaminants which reduce
paper value . The paper is then manuallystacked anwooden pallets
and bound to the pallet with steel strapping. It isnecessary ary to
straighten and stack the newspaper neatly and tightly to produce dense
loads for shipment. The stacking and strapping procedure is extremely
labor intensive, requiring 4 to 6 persons to keep up with our
rent
volume. The City's cost has been held down through extensive use of
"workfare" labor (usually 2 to 4 people). The City currently receives
$18.00 per ton for palletized newspaper after payment of brokerage and
transportation charges.
Although one mill has been accepting palletized newspaper, other
mills require baled products. Bowater's new de -inking facility in
nlllinocket has also seated that only baled newspaper and magazines
will baaccepted. In order to obtain the best prices for recyclable
paper products, Bangor needs to market baled material. Furthermore,
It will be extremely difficult to process more materal by palletization
in the existing facility with the present workforce (including workfare
labor).
The Public Works Department has done a considerable amount of
research to determine equipment, labor, and building requirements Co
establish and operate a baling program for recyclables. Several
recycling facilities were
s
visited and n operatorsacted
to Obtain information.Given the size of the City's recycling program
and future needs, cast projections based on actual operating experience
of existing facilities indicate that owning and operating our
own
baler compares fayorabl With contracting for baling services. An
added benefit is the ability to maintain direct control over baling
coats, present and future.
-1-
Based on this research, it is recommended that the City
Purchase a horizontal bale[ capable of producing high density
export" grade bales. Estimated cost of this unit is around
$45,000. The baler would be installed In one and of the City's
existing recycling building, and, together with necessary storage
space, would occupy approximately 4000 s.f. of floora The
recycling truck would continue to unload in the building, and
contaminants removed by hand. A skidsteer loader would be
utilized to feed the baler and m completed bales. It is
estimated that the baler would be used to process about 1000 tone
of material annually, including 600 tons of newspaper.
As elated above, the Public Warks Department has projected
costs to own and operate a bale[, based on research of similar
existing facilities. Attached is a summary ofs
costs associated
s
with baling 600 t of newspaper per year, which would produce
an rage of 11.54o one ton. bales weekly. This operation would
require one operator and one laborer, who would dedicate 12 hours
each per week to the baling operation. The remainder of their time
would be devoted to other aspects of the recycling program. Cycle
time for the baler is about 30 minutes per bale.
We have also received two letters from Sawyer's
regarding
proposals for providing baling services to the City. Copies of
these letters Acco@pany., the attached coat aummary for comparison.
It should be noted that, although the City iscurrently receiving
$18.00/con for its newspaper $14.00/ton is reflected in the cast
summary. This is the ate that Sawyer s received, and is used for
er
equity of comparison.
-2-
4be
(1)
,NEWSPAPER BALING COST COMPARISON
City of Bangor vs. SaWer`n
Coat Item 1) City 2) Sawyer's 3) Sameer's
Processing:
Basic wages - EEOI 6 Laborer
@ 12 hra/mk ($9.28 6 $].l])
x 12 x 52 $10,265 Letter from Sawyer's dated Letter from Sawyer's dated Jan. 29,
M
Jan. 22, 1993 proposes to
1993 proposed to pick up the City's
Retirement
accept newsprint from Bangor
newsprint at public Works in City -
(4742 6 4023) x 12
at a cost of $25.00/Ton
owned rolloff containers b transport
40
2,629
to Sawyers, pre-process and bale for
a cost of $45.00/TOT
Medical insurance
2 x 1468) x 12
40
881
Worker's compensation
(2345 6 1652) x 12
40
1,199
Unemployment insurance
(2 x 140) x 12
40
84
Skidateer loader
6 hra. x 52 x $15.00
4,680
Electrical costs
11.54 T. x 0.5 hrs. x
30 kw x $0.12/kwh x 52
11080
Tie wires
600 x 4 x $0.45
1,080
Subtotal
$21,898
$0
$0
Average processing cost
per ton based on
600 tans/yeat
436.50
$25.00
$45.00
M
(2)
NEWSPAPER BALING COST COMPARISON
City of Bangor vs. Sawyer's
Depreciation Costs
Baler - 90% over 10 years
$45,000 x 90%
1D x 1000 T $4.05/T
Building - 100% over 40 yrs.
4000 s.f. x $27.00
40 x 1000 T $2.70/T
Depreciation Subtotal $675/7
Delivery:
Costs aaociated with transporting
matetialto Sawyer's for baling
If recycling truck hauls directly
to Sawyer's instead of City
recycling center - Average of
1 extra hour of labor d truck
11 c ve/load ($13.73 S
$20.00 n 1.5) $22.49/T
Cost to provide extra rolloff
container for pickup by Sawyers
$5000
10 yrs x 600 T
$0.83/x•
Revenues:
Net proceeds from sale of baled
newsprint ($14.00/T) $0 $0 t
NET COST / TON $29.25/T $47.49/T $45.83/T p..
ye,
9A8YYGR SAWYER ENVIRONMENTAL 9m EMERSON MILLROADIHAMPDEN. MAINE aw44
IRIFF IBL: IWLI a MAM r FAX Nml MQx42W
January 22, 1993
Mr. Jim Ring
City Engineer
City Hall
Bangor, Maine 04401
Dear Jim,
I -wanted to wait until wehada chance to process a few
magazines before I followed up on our recent meeting.
Yesterday, we baled two tons of magazines from Ralph Foss
and have a better idea of what's up.
First of all, I want to thank you for taking the time to meet
with me regarding any opportunity the City and Sawyer might
have to collaborate on Bangor's recycling efforts. As you
will recall, i offered to process Bangor's newsprint for $25
per ton and offered to transport ONE, from your facility to
mine if we could work out a system meeting both our needs.
I indicated that this agreement would remain in place until
such time as the City found out about a State grant for a
baler which would give you maxisaun flexibility as to just how
you would handle your paper needs. We discussed the fact
that our costs were 'dependent on. the amount of further
processing we would need to apply to your paper and could
lower our costs if all we needed to do was run your paper
through our machine. By comparison, I -understand that AWB
has offered member towns a fee per hour for the use of their
facility which would take into account pre-processing needs
of the incoming paper. I would like to make it clear that we
would also be willing to negotiate a baling price as
published in a. publication such as "Fibre Market Waws" which
would float up or dawn with regionalmarketconditions.
In any a ent,we'd be pleased to meet the City's preferred
method of price determination until the law suit is settled:
Fixedprice per ton, fixed price per hour, or floating price
as determined by a third party. _
As a result of our success at baling ONG this week, we'd be
pleased to work with the city to encourage the collection and.
processing of residential magazines. As soon
as Judy Perkins
gets up to speed, we intend to actively pursue commercial and
business sources
of ONG and would bevery excited about
working withthe City as well. Just let us know your
desires.
4f'
JJanuug
a y 22, 1993 -
page two
Finally, if the City were to receive a grant from the State,
we would like to discuss the potential of the City buying our
baler. I continue to feel that we needto upgrade our unit,
we've only been offered $50,000, in trade, for our baler,
which I believe is the second largest in the State. This
way, you could buy a larger machine than originally planned
and I could strike better bargain with the manufacturer if
I were to pay cash for a. now unit without trade-in.
In summary, I feel we offer the City the opportunity of
negotiating a fair price for its OMP from now until the State
grant issue
s resolved and are flexible on just how the
price isto be determined. we offer to negotiate a price to
buy our baler under terms which would provide both of us a
bigger bang for the buck.
I'm very anxious to try to mend fences with the City and to
enter into discussions which should benefit all parties -
concerned. I look 'forward to your response.
Enthusiastically,
. Tun Sawyer, Jr.
President
SAWYER ENVIRONMENTAL MEMEAS N MILLROAD 1HAMPOEN. MMNENkU L15.
wNIFF TEL: W) 02-CHO. rnx: Ilan &B -42V
January 29, 1993
Mr. Jim Ring
City Engineer.
City Hall
Bangor, Maine 04401
Dear Jim:
I'm pleased to propose the following options for Sawyer to
process (bale) Bangor's paper recyclables. As always, we're
open to discuss various
s permutations which the City. would
like to have in place to make your efforts more effective.
As we discussed, we -spend quite a bit 0f .effort maintaining
a fairly high level of quality control in order to keep our
end users happy. As a result, two of our options take into
consideration whether or not the City is able to pre-process
materials to remove contaminants so that we don't have to.
Therefore, we are prepared to run through our baler any paper
product you generate (ONP, ONG, Direct Hail, SCL, etc) for
$25 per ton. I believe this compares favorably with ASS'S
price of $140 per hour, or Old Town's fee on a per capita
basis. Obviously, the City would be responsible for any
contamination leading to rejected loads.
As an alternative-, we would accept your paper Products right
off the collection truck and pre-process ourselves for 845
per ton for OUP; 050 per ton for OMG; $O per ton for Sorted
Office Paper. These prices would include our picking up your
roll off containers at Public Werke, trucking to Hampden,
weighing, off loading, and returning .the empty container to
Public Works. The City would be responsible for keeping the
various containers homogeneous as to product type; is, keep
the OHG separated from the ONP, etc. We would negotiate a
0ntract period for these prices, but would assume a minimum
6 month.initial period, or until Bowater opens up.
As an alternative, I've enclosed aent copy of Fibre
Market News. If you turn to page 4,e you'll find paper prices
for various grades of paper, by region, paid by processors
like ussimilar to a floating tate loan tied to the Boston
Prime, we'd offer to charge/pay prices as quoted in the Fibre
Market News on a monthly basis for the Boston market. This
way, like Prime, the City would enjoy a floating rate tied
into current market conditions. -
® Atima„nmrew
4h:
- Mr. Jim Ring
January.29,, 1993 -
-Page,TwO.
For instance, we currently receive $14 per ton',for. our baled
- ORP. Our prices reflect that price. We anticipate that
Bowater will
pay up to $25 Per tan
for ONP when they open. A
- floating
fee based -or marketconditions
in this region will
factor in Boweter's.latest prices.
.Under separate cover, I'll Send you the appropriate
literature for. ur present paper baler. I've enclosed a
brochure showing the highlights ofourunit which'I ve
marked. -
�i lock forward to discussing with the city these.proposals.
-I'm confident that we can ;reach an agreement .which fits both "
our needs;: We can .tail or any agreement as to terms and time.
.line to meet your requirements.
Please give me a ring it I can explain, further, this letter
- r to set 'up a vonvenient time to flesh out,a potential
contract/agreement.- -
enthusiast lly,
..
'W, Jr.
'President - -
-
-.
.
-. enc.