The Public Work's Department released their latest recommendation
regarding the city's recycling processing services on Friday. The
Transportation and Public Works Committee will be discussing this issue
and making a decision tomorrow--Tuesday, February 17th. 
 
You can access the latest public works recommendation at: 

http://www.ci.minneapolis.mn.us/council/2004-meetings/20040227/tpw200402
17agenda.asp#TopOfPage

 

February 16, 2004

 

Dear Mayor Rybak:

 

We are writing in reply to the Public Works Department's third
recommendation to negotiate with Waste Management Inc (WMI) Recycle
America Alliance (RAA) for the city's recycling processing services. We
are once again unsure why staff continues to recommend WMI when it
appears that BFI now has the best proposal.

 

Once you eliminate the "fixed-rate" proposals, all three "floating rate"
proposals offer similar revenues (within 5%) to the city. As these
proposals are tied to indexes and float with the markets, they will
remain similar in future years. This time BFI's proposal offers the
highest return and the highest floor price protection for your
materials. Eureka Recycling's proposal is second. WMI's market rate
proposal still offers the lowest revenue to the city and the least
amount of floor price protection. 

 

Although the staff's evaluation indicates that RAA/WMI's fixed-rate
proposals would have returned the most revenue to the city of
Minneapolis over the last five years, you must look ahead to the market
conditions that are expected in 2004 and beyond to accurately evaluate
this proposal. All three proposers provided market predictions,
supported by experts, that expect the value of recyclables to rise,
especially for newspaper and cardboard. When applying these predictions,
it is our estimate that WMI's fixed-rate proposal would return
approximately $750,000 less than the other proposals over the next three
years. 

 

Eureka Recycling is proud to have offered the city of Minneapolis its
best proposal throughout this process, as well as full documentation
that we have met all the requirements of the RFP (including bonding
consistent with the amount required). We still believe that Eureka
Recycling is the best partner for Minneapolis; however, we are not
writing this letter to convince you of that. We are writing this letter
because we feel that you deserve a complete and fair analysis of the
"best and final" proposals that were submitted for this contract. 

 

We wish you much success with your decision.

 

Susan Hubbard                        

CEO

 

Tim Brownell

COO

 

Eureka Recycling

2828 Kennedy Street

Minneapolis, MN  55413

 

 

CC:     Minneapolis City Council

            Mayor RT Rybak

Klara Fabry, Public Works Director

Susan Young, Recycling and Solid Waste Director

 
 
Posted by Dianna Kennedy
Longfellow
 
 
 
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