Title
Consider a memorandum/resolution authorizing the purchase of a recycling baler for the Killeen Recycling Center in an amount not to exceed $323,275.
Summary
DATE: January 17, 2023
TO: Kent Cagle, City Manager
FROM: Jeffery Reynolds, Executive Director of Public Works
SUBJECT: Solid Waste Recycling Baler Purchase
BACKGROUND AND FINDINGS:
The Killeen Recycling Center (KRC) was established in 1996 with grant funds received from the State of Texas. The KRC is a public recycling center that accepts more types of material than any other site within a 60-mile radius. The KRC collects and processes a variety of materials such as paper, metals, glass, and plastic products, as well as some automotive and electronic materials. The goal of the KRC is to recycle as much material as possible to keep it out of the waste stream and grow recycling efforts throughout the city.
The KRC expanded the recycling program throughout the city by means of recycling trailers in July of 2019. Since that time, the KRC has seen an approximate 33% increase of recyclable materials annually. In addition to the recycling trailers, the KRC has built a pilot program of 58 commercial cardboard customers that are serviced weekly.
Currently, the KRC utilizes an antiquated vertical baler that is only able to bale cardboard and takes up to 90 minutes for one bale, making it impossible to bale all cardboard collected. Due to the inabilities of the current baler, the KRC receives reduced rates for the sale of these materials and in some cases, pays to dispose of materials. The preferred method of many material buyers is to receive baled materials as it allows for more material to be transported per load and easier handling. At the increased number of recyclable materials collected, it has become imperative to procure a multi-material baling system at the recycling facility. The ability to bale all recyclable materials will increase material processing times, eliminate the need to pay for disposal of some materials, and increase revenue from material sales.
On September 13, 2022, the FY23 CIP plan was approved by council and included the CIP for the recycling baler. Purchase for a recycling baler is available through Sourcewell cooperative, utilizing Box Gang Manufacturing contract number 040621-BXG. Box Gang Manufacturing is a dealer for Marathon Equipment which has manufactured on-site waste compaction and recycling systems for over 50 years. Marathon Equipment provides premier, innovative solutions that process, transport, and transform the solid waste stream into sustainable resources that benefit communities.
THE ALTERNATIVES CONSIDERED:
1. Do not authorize the purchase of a recycling baler from Box Gang Manufacturing.
2. Authorize purchase of recycling baler from Box Gang Manufacturing in an amount not to exceed $323,275.
Which alternative is recommended? Why?
Alternative two (2) is recommended to allow the Killeen Recycling Center to baler a variety of materials; ensuring full market value for the sale of the materials and allowing for continued growth of the City’s recycling programs.
CONFORMITY TO CITY POLICY:
Purchase for the recycling baler will be completed through a purchasing cooperative. Purchases made through a cooperative contract are exempt from the competitive bidding process as stated in Texas Local Government Code (TLGC) section 271.102, subchapter F; a local government that purchases goods or services under this subchapter satisfies any state law requiring the local government to seek competitive bids for the purchase of the goods or services.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
The expenditure in FY 2023 is in an amount not to exceed $323,275.
Is this a one-time or recurring expenditure?
One-time
Is this expenditure budgeted?
Yes, funds are available in the Solid Waste CIP Fund account 388-8934-493.61-35.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
Yes
RECOMMENDATION:
Staff recommends the City Council authorize the purchase of a multi-material baler system from Box Gang Manufacturing and authorize the City Manager or designee to execute a letter of agreement in an amount not to exceed $323,275.
DEPARTMENTAL CLEARANCES:
Public Works
Finance
City Attorney
ATTACHED SUPPORTING DOCUMENTS:
Agreement
Certificate of Interested Parties
Digital Agreement