TO: ADAM PIRRIE, CITY MANAGER
FROM: JEREMY SWAN, COMMUNITY SERVICES DIRECTOR
DATE: MAY 13, 2025
Reviewed by:
City Manager: AP
SUBJECT:
Title
AWARD OF CONTRACT TO GRAND CENTRAL RECYCLING AND TRANSFER STATION FOR SOLID WASTE HAULING SERVICES (FUNDING SOURCE: SANITATION FUND)
Body
SUMMARY
The City’s Sanitation Division has a permitted transfer station located at the City Yard. The City utilizes the transfer station to transfer solid waste from City-owned sanitation collection trucks to larger transfer trailers. A private contractor then transports the trailers to the Mid-Valley landfill in Rialto. Due to prior capacity issues, the City has also utilized outside transfer stations to provide extra transfer capacity that could not previously be handled at the City Yard. Recently, the City updated its Solid Waste Facility Permit to allow additional transfer capacity at the City Yard.
In February 2025, the City released two Requests for Proposals (RFPs): one for transferring solid waste materials from the City Yard transfer station and one for transferring solid waste from an outside, privately owned and operated transfer station. The City has reviewed the bids and determined that consolidating all transfer activities at the City Yard is the most efficient and cost-effective option. Staff recommends awarding a contract to Grand Central Recycling and Transfer Station (Grand Central) for transfer hauling services.
RECOMMENDATION
Recommended Action
Staff recommends the City Council:
A. Authorize the City Manager to enter into a three-year contract with two optional one-year extensions with Grand Central Recycling and Transfer Station for transfer hauling services in an amount not to exceed $600,000 annually;
B. Reject all bids for the Transfer Station and Hauling Services Request for Proposals; and
C. Appropriate $74,800 from the Sanitation Fund Balance to cover increased contract costs.
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ALTERNATIVE TO RECOMMENDATION
In addition to the recommendation, there is the following alternative:
• Request additional information from staff.
FINANCIAL REVIEW
Staff estimates that 1,300 trailers of solid waste will be transferred annually to a landfill at a cost of $415.38 per trailer, or an estimated annual cost of approximately $540,000. The 2025-26 Budget currently includes $465,200 for solid waste transferring services. Therefore, staff recommends appropriating $74,800 from the Sanitation Fund Balance to cover the anticipated expenditures.
Although staff anticipates the actual costs to be approximately $540,000 per year, staff recommends setting the annual not-to-exceed contract limit at $600,000. This will provide flexibility during the five-year contract term to accommodate new development, unanticipated waste volume fluctuations, and Consumer Price Index (CPI) cost increases at term renewals. The contract will allow increases based upon the CPI for the Los Angeles-Long Beach-Anaheim area at contract term extensions, not to exceed three percent. The City will be billed based upon the actual number of trailers provided; which is dependent upon the solid waste tonnage generated within the community. Therefore, there is no cost associated with setting a higher not-to-exceed limit.
The staff cost to prepare this report and administer this contract is estimated at $5,900 and is included in the operating budget of the Community Services Department.
ANALYSIS
Background
When the City Yard was constructed in 2005, it was designed to include a transfer station. The transfer station allows City sanitation crews to transfer solid waste from City-owned sanitation collection trucks to larger trailers. A contractor then transports the trailers to the Mid-Valley Landfill in Rialto. The contractor provides the truck, trailers, and personnel to facilitate the transfer services. Each trailer can transport up to 23 tons of solid waste material. It would require four separate trips to the landfill in sanitation collection vehicles if trailers were not utilized. Utilizing trailers improves efficiency, minimizes staff hours, reduces vehicle wear and tear, and is more environmentally sustainable by reducing vehicle trips. In 2024, the City updated its Solid Waste Facility Permit to include additional capacity for transfer activities at the City Yard.
Grand Central Recycling and Transfer Station is the current contractor providing this service. Grand Central has provided consistent, reliable service and has the staff and equipment necessary to provide transfer services at the City Yard.
Selection Process
The City released two RFPs: one for transferring solid waste materials from the City Yard transfer station and one for transferring solid waste from an outside, privately owned and operated transfer station. The proposals received were as follows:
Transferring Solid Waste Materials from the City Yard (CS-25-01)
|
Bidder |
Per Trailer |
Per Mile |
|
Burrtec |
$694.95 |
$38.61 |
|
Grand Central Recycling and Transfer Station |
$415.38 |
$21.86 |
Transfer Station and Hauling Services (CS-25-02)
|
Bidder |
Per Ton |
Per Mile |
|
Burrtec |
$24.36 |
$2.32 |
|
Grand Central Recycling and Transfer Station |
$36.39 |
$21.86 |
Staff evaluated the proposals and determined that the most efficient, cost-effective option is to transfer all solid waste through the City Yard Transfer Station utilizing the unit pricing provided by Grand Central. Therefore, staff recommends awarding a contract to Grand Central Recycling and Transfer Station for the Transferring Solid Waste Materials bid and rejecting all bids for the Transfer Station and Hauling Services RFP. Given the updated City Yard transfer station permit, it is no longer necessary to utilize outside transfer stations, which were bid at a higher price point.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following City Planning Documents: Council Priorities, Sustainable City Plan, Economic Sustainability Plan, General Plan, and the 2024-26 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by: Prepared by:
Jeremy Swan Kristin Mikula
Community Services Director Community Services Manager