Exhibit “D”

T O W NSH IP O F L O W E R M E R I O N
Department of Public Works

M E M ORANDU M

T O: Douglas S. Cleland, Township Manager

F R O M: Donald K. Cannon, Director of Public Works

SU BJ E C T Recycling Bids

D A T E: November 13, 2009

As a result of technical deficiencies, the Board of Commissioners rejected bids received for
Recycling Services Commingle Materials, Mixed Paper and Corrugated Cardboard and approved
the readvertisement of this item. On Thursday, November 12, 2009, the Township received four
acceptable bids for these services, which has resulted in two low bidders.

Staff structured the service contract to include dual stream collection options, including adding
OCC (“old corrugated cardboard”) paper and additional plastics (numbers 3 through 7) to the
products currently recycled by the Township, as well as the option of processing all recycled
materials together (single stream). Based on evaluation of the bids received, staff recommends
awarding two separate dual stream contracts (paper and comingled materials), which will
eliminate converting the current recycling collection system to single stream.

Price Comparison of Dual Stream and Single Stream Recycling*

Dual Stream Recycling In 2009 2009 Revenue

Tons Current Market Rate (Expense)
Paper/Corrugated Cardboard 4,300 $ 25.00 $ 107,500

Commingle 2,400 $ (54.00) 129,600

Total 6,700 $ 237,100

Dual Stream Recycling In 2010 Bid Amount Revenue

Tons Current Market Rate (Expense)
Paper/Corrugated Cardboard 4,300 $ 75.00 $ 322,500

Commingle 2,400 $ (33.00) 79,200

Total 6,700 $ 401,700

Single Stream Recycling In 2010 Bid Amount Revenue

Tons Current Market Rate (Expense)
Paper/Corrugated Cardboard 4,300 $ (30.00) $ 129,000

Commingle 2,400 $ (30.00) 72,000

Total 6,700 $ 201,000

* Assumes inclusion of OCC (+100 tons) and additional plastics (+100 tons) for comparison purposes only.
 Exhibit “D”

As demonstrated in the price comparison chart, a dual stream recycling collection process in
2010 will net approximately $243,300 of revenue (Solid Waste Fund), based on current market
prices and estimated tonnage of 4,300 tons of paper/corrugated cardboard and 2,400 tons of
comingled material (including plastics numbered 3 through 7). In comparison, if the single
stream option was selected, the Township would incur an expense of approximately $201,000
and bottom line decrease of $444,300 ($201,000 + $243,300). In addition, under single stream
processing, the Township’s current recycling rate (27%) for these materials would have to nearly 
triple (to over 70%) to match the positive financial impact provided by new pricing for dual
stream processing. This does not include other recycled materials such as leaves, tires, metal, etc.

Though our study notes that switching to the single stream recycling process generally increases
the rate of recycling, the reported increases are normally in the range of +5% to +10%. Current
market conditions and costs to implement a single stream process at this time are clearly not
favorable, though staff will continue to seek methods to increase recycling in the Township. It is
also important to note that, as an annual contract, should drastic changes occur in the recycling
markets, the Township will have the option to re-bid each fall and can take advantage of any
changes that may be beneficial.

Therefore, staff is recommending that the Township continue with dual stream recycling in 2010,
with the addition of corrugated cardboard and plastics (numbered 3 through 7). This will be
accomplished by awarding contracts to the two lowest bidders as outlined in the Finance
Committee agenda bid tabulation (Exhibit D).
 Exhibit “D”
PAPER

OPT I ON 1 Commingled as C ur rently Collected (Est. Annual Tons 2,300)

Commodity Value $120.59 $120.59 N/B $120.59

Fixed Price $166.60 $160.28
Total (Per ton) ($46.01) ($39.69)
Total Bid $105,823.00 $91,287.00 N/B N/B

OPT I ON 2 Commingled + Plastics #3 thru #7 (Est. Annual Tons 2,400)

Commodity Value $120.59 $120.59 N/B $120.59

Fixed Price $166.60 $160.28 $153.59
Total (Per ton) ($46.01) ($39.69) ($33.00)
Total Bid $110,424.00 $95,256.00 N/B $79,200.00

OPT I ON 3 M ixed Paper as C ur rently Collected (Est. Annual Tons 4,200)

Commodity Value N/B N/B N/B $40.00

Fixed Price $24.01
Total (Per Ton) $64.01
Total Bid - Revenue $268,842.00
OPT I ON 4 M ixed Paper + O C C (Est. Annual Tons 4,300)

Commodity Value N/B N/B $40.00 $40.00

Fixed Price $35.09 $24.01
Total Bid (Per Ton) $75.09 $64.01
Total Bid - Revenue $322,887.00 $275,243.00
OPT I ON 5 Single Stream Incl. A ll Items in O ptions 1 and 3 (Est. Annual Tons 6,500)

Commodity Value $71.42 $71.42 N/B N/B

Fixed Price $101.47 $120.13
Total (Per ton) ($30.05) ($48.71)
Total Bid $195,325.00 $316,615.00
OPT I ON 6 Single Stream Incl. A ll Items in O ptions 1 and 4 (Est. Annual Tons 6,600)

Commodity Value $71.42 $71.42 N/B N/B

Fixed Price $101.47 $120.13
Total (Per ton) ($30.05) ($48.71)
Total Bid $198,330.00 $321,486.00
OPTION 7 Single Stream Incl. A ll Items in O ptions 2 and 3 (Est. Annual Tons 6,600)

Commodity Value $71.42 $71.42 N/B N/B

Fixed Price $101.47 $120.13
Total (Per ton) ($30.05) ($48.71)
Total Bid $198,330.00 $321,486.00
OPT I ON 8 Single Stream Incl. A ll Items in O ptions 2 and 4 (Est. Annual Tons 6,700)

Commodity Value $71.42 $71.42 N/B N/B

Fixed Price $101.47 $120.13
Total (Per ton) ($30.05) ($48.71)
Total Bid $201,335.00 $326,357.00