Fw Solid Waste RFP Documents-- Possible Important OmissionMs. Vath:
Thanks for forwarding me the "FINAL" Solid Waste RFP. Having it in four
parts with 3 Addenda is a flawed format and inconsiderate to the bidders
and any reader. There should be one document. Ideally, it should be
blacklined with deletions and changes from the original draft. With Mr.
Dee and Mr. Pfeffer being attorneys, one would would think that they
would be quite aware of that document preparation and revision practice
and would have done so.
Now for the important question. Back in July, I recommended that the
process fix the Commercial collection rate at $4.00 per cubic yard (City
Commercial customers are currently paying $5.37 and SWA customers about
$3.35). Mr. Redman convinced the Commission that fixing the rate (like
the SWA did) was unnecessary because the RFP would allow the City to
split the contract and award it to two different haulers (one for
Residential and the other for Commercial). This would discourage a
bidder from low balling Residential and jacking up Commercial so as to
keep the rate quotes fair for each customer group. This feature
certainly lessened my concern.
I have scanned the RFP and read sections 1.11 to 1.14. I cannot locate
anywhere the City's right to split the contract for Residential and
Commercial service as Mr. Redman espoused in July. Have I just
overlooked this important aspect in the RFP? If so, please direct me to
where it is stated. If it was dropped, please have someone explain why
and how the decision was communicated to the Commission.
This is very important because the low bidder's all-in Commercial rate
is $895,701(20.4%) higher than another bidder's. Splitting the contract
would result in an enormous savings to Commercial customers! That was
the intent back in July. If the lowest overall bid is accepted as one
contract for both customer groups, Residential customers will see a
24.0% Reduction in Residential rates but only a 9.1% reduction in
Commercial. If the contract is split, the Commercial rate would fall
24.1%-- almost identical to Residential.
Thank you for your anticipated prompt response for the item in blue
above.
P.S. -- for those copied herein, the "premium" now being paid by Delray
trash customers for trash service is -- $4K per day, $125K per month, or
$1.5M annually. I hope this fact reinforces the urgency to get the
process completed as quickly as possible.
Thanks to Commissioner Frankel's decisive vote not to bid the contract
in August 2012 and an anticipated start date of 6/1/15, WM will receive
a $2.5M "premium" from Delray trash customers since 10/01/13! Even WM's
anemic current bid proposal is 5.4% lower than rates it currently
charges the City.
----- Forwarded Message -----
From: "Vath, Holly" <vath@mydelraybeach.com>
To: "'kjmacnamee@yahoo.com'" <kjmacnamee@yahoo.com>
Sent: Friday, December 12, 2014 1:56 PM
Subject: Solid Waste RFP Documents
Attached are the published RFP documents for Bid 2014-38.
Holly Vath
561-243-7123