TITLE
Recommendation to adopt Specifications No. RFP PW 15-091 and award a contract to USA Waste of California, dba Waste Management, of Long Beach, CA, for recyclable collection services, in an annual amount not to exceed $3,500,000, plus an annual Consumer Price Index adjustment; and authorize City Manager, or designee, to execute all documents necessary to enter into the agreement for the term of July 1, 2016 to June 30, 2026 (ten years), including any necessary amendments thereto regarding the term and/or scope of services. (Citywide)
DISCUSSION
On March 22, 2016, the City Council reviewed and discussed agenda item number 14 regarding the award of a contract to Waste Management for recyclable collection services (staff report attached). The City Council voted unanimously to [1] conduct a review within 30 to 60 days that does not trigger a contract extension; [2] request the City Attorney to select the vendor who conducts the review; [3] for the City Attorney to oversee the review process and report back to the City Council when completed; and [4] based on that review, the City Council will decide whether to award the contract as recommended, or direct the City Manager to rebid the contract.
The review has concluded and the City Attorney is providing his findings to the City Council. Staff supports its initial recommendation and requests City Council approval to award the contract to Waste Management.
This matter was reviewed by Deputy City Attorney Amy R. Webber on June 2, 2016 and by Revenue Management Officer Julissa Jose-Murray on June 3, 2016.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. RFP PW15-091 and award a contract concurrently is requested on June 14, 2016, to ensure the contract is in place exped itiously.
FISCAL IMPACT
In the first year of the contract term, the total contract amount will not exceed $3,500,000. The base contract amount represents a cost savings of $394,000 compared to actual contract expenditures for recycling collection services paid in FY 2015. Each year thereafter, the contract amount can increase, subject to an annual adjustment based on the Consumer Price Index (CPI), for the Los-Angeles-Riverside-Orange County Metropolitan Area. The CPI fluctuates from year to year but will be capped in the contract at 4 percent annually.
Sufficient funding to support the contract award is budgeted 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 as Waste Management employs over 100 Long Beach residents.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
CRAIG A. BECK
DIRECTOR OF PUBLIC WORKS
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER