TITLE
Recommendation to authorize City Manager to amend Agreement No. 28344 with Waste Management, Inc., to provide residential recycling collection operations on a month-to-month basis at an estimated cost of $350,000 per month, on an interim basis for up to a 12-month period from July 1, 2015 through June 30, 2016 pending completion of a procurement process. (Citywide)
DISCUSSION
Waste Management (WM) currently provides residential recycling collection services to approximately 117,500 City-serviced refuse accounts. On December 16, 2014, the City Council authorized an extension of the current recycling collection contract on a month-to-month basis, not to exceed six months. Concurrently with the extension, City Council directed staff to develop a Request for Proposals (RFP) for recycling collection services. The RFP has been completed and is scheduled to be released on April 24, 2015.
The current contract with WM expires July 1, 2015; therefore, the Public Works Department requests a contract extension on a month-to-month basis for up to 12 months, to complete the procurement process and allow for the potential transition of vendors.
In the event the City selects a new vendor, a pre-transition period of no less than six months after the City Council awards the new contract is necessary, due to the size of the City, the need to acquire collection vehicles, and to hire and train employees. It is anticipated that the new contractor would initiate service on June 1, 2016.
This matter was reviewed by Deputy City Attorney Amy R. Webber on March 31, 2015 and by Budget Management Officer Victoria Bell on April 6, 2015.
TIMING CONSIDERATIONS
City Council action on this matter is requested on April 21, 2015 in order to execute an amendment to the agreement with WM before the end of the current term on July 1, 2015, to ensure that residential recycling collection is not interrupted during the procurement process.
FISCAL IMPACT
The estimated cost for this extension of the recycling contract for the period of July 2015 through June 2016 is $350,000 per month, which is the same amount as the prior year. Sufficient budget is currently appropriated in the Refuse/Recycling Fund (EF 330) in the Public Works Department (PW). Approval of this recommendation will provide continued support to the local economy.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
ARA MALOYAN, P.E.
DIRECTOR OF PUBLIC WORKS
APPROVED:
PATRICK H. WEST
CITY MANAGER