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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.