TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DIRECTOR OF PUBLIC WORKS

DATE: DECEMBER 19, 2006

SUBJECT: STATUS OF SOLIDWASTE PROCUREMENT CONSULTANT,
R3 CONSULTING GROUP, INC.

Staff Coordinator: Lauren Ramezani, Sr. Administrative Analyst

RECOMMENDATION

1. Increase the authorization for professional services provided by R3 Consulting Group, Inc. related to the preparation of a Request for Proposals for residential and commercial solid waste and recycling contract, evaluation and negotiations with proposers in the amount not to exceed $25,000.

2. Approve Resolution No. 2006- __, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, AMENDING RESOLUTION 2006-41, THE BUDGET APPROPRIATION FOR FY06-07, TO INCREASE THE BUDGET IN THE WASTE REDUCTION FUND

BACKGROUND

The City’s current exclusive residential solidwaste and recycling contracts with Waste Management (WM) and Universal Waste Systems, Inc. (UWS) expire on June 30, 2007. On November 7, 2006, the City Council issued individual one-year extension option to the two haulers and the Council directed staff to bring back options to be included in a new RFP. Now the new expiration date for both contracts is June 30, 2008.

On May 16, 2006, City Council authorized R3 Consulting Group, Inc. (R3) to prepare a Request for Proposals (RFP) for residential and commercial solid waste and recycling services and to assist the City in the evaluation process. The cost was based on time and material, and was estimated to be between $80,000 - $100,000. An agreement for the amount not to exceed $100,000 was prepared. By end of October 2006, R3 reached the originally budgeted amount of $100,000.

DISCUSSION

Since the proposals by WM and UWS was neither accepted nor rejected, and more follow-up work had to be performed, R3 continued providing services in November and December of 2006. Currently there are no funds remaining for R3’s work.
Additionally, staff has been directed to return to City Council in January 2007 to update the Council on the Trash Subcommittee’s meeting with WM, and on prospective bidders input on a future RFP. Staff recommends R3 also attend the Council meeting in January and discuss findings with Council. It is estimated that the amount not to exceed $25,000 is needed for the work completed in November, and December of 2006 (but not paid yet), and for upcoming work in January 2007.

The work performed included the following:

- Preparing issue papers on collection methods, frequency of collection, collection carts, road impact fees, etc.;
- Meeting with the Trash subcommittee;
- Preparing the RFP documents (base data, current services, requested services and options, instructions to proposers, submittal requirements, cost forms, etc,
- Preparing the draft franchise agreements;
- Producing the RFP package for distribution and posting to the City’s web site;
- Preparing a mailing list for prospective haulers;
- Preparing a pre-release notice to prospective haulers;
- Contacting prospective haulers on their interest in the RFP;
- Coordinating the pre-bid meeting, sign-in sheets, handouts, and supporting documentation; and the site walk/visits;
- Receiving and responding to questions/comments on the released RFP;
- Issuing several RFP addenda;
- Scheduling interviews, issuing questions to the haulers, setting the agenda, meeting logistics, etc.;
- Preparing follow-up questions/responses as a result of the interviews;
- Preparing a technical and financial analysis of the proposals;
- Presenting materials for the CC and/or Trash Subcommittee, etc.; and
- Preparing staff reports, CC memos, City Attorney memos, issue papers, etc.
- Preparing a rate model and fiscal impact to the City of the new franchise agreements and rates (CRV value, collector fees, etc.);
- Incorporating comments from WM, program changes, and producing the final franchise agreements for review by the City attorney;
- Presenting materials at community meetings, preparing supporting documentation, presentations, etc.;
The following are services performed (but not paid) in November and December 2006:
 Conducting multiple negotiations sessions, and preparing supporting documentation;
 Presenting materials and making presentations at two CC and Trash Subcommittee meetings;
 Preparing staff reports, memos to CC and City Attorney, issue papers: and
 Contacting prospective bidders on ways to improve a future RFP

Additionally, if a new RFP is to be issued in 2007, additional funding is needed, although the basic RFP package previously issued could be used as a starting point. The consultant fee will depend on the complexity of the new RFP, community workshops, meetings and presentations with CC and/or Trash Subcommittee. The scope of the services, if any, could be discussed in early 2007, when staff will present a follow-up staff report to the City Council.

The attached Resolution is needed to increase the City’s Waste Reduction Fund to pay for the professional services.

FISCAL IMPACT

It is estimated that the amount not to exceed $25,000 is needed for the work completed in November, and December of 2006 (but not paid yet), and anticipated work in January 2007. The City’s Waste Reduction Fund will pay for these charges. The Waste Reduction fund FY 06-07 projected year ending balance is $215,000.

As for the future, the cost of a new procurement process is approximately $50,000- $80,000, assuming materials already produced can be updated, and policy decisions are made by the City Council prior to release of a new RFP. The City’s consultant suggests that in any future RFP process that the hauler(s) that is awarded the franchise agreement(s) be required to reimburse the City for the cost of the procurement/ consultant.

Respectfully Submitted:

Jim Bell, Director of Public Works

Reviewed by:

Les Evans, City Manager

Attachment: Resolution
RESOLUTION NO. 2006 - ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, AMENDING RESOLUTION 2006-41, THE BUDGET APPROPRIATION
FOR FY06-07, TO INCREASE THE BUDGET IN THE WASTE REDUCTION FUND

WHEREAS, Section 3.32 of the Rancho Palos Verdes Municipal Code provides that all expenditures in excess of budgeted allocations must be by supplemental appropriation of the City Council: and

WHEREAS, on June 6, 2006, the City Council of the City of Rancho Palos Verdes adopted Resolution 2006-41, approving a spending plan and authorizing a budget appropriation for FY06-07: and

WHEREAS, the City Council desired to consider various options for a future RFP and meet with the Trash Subcommittee and get input from prospective bidders; and

WHEREAS, the City Council desires that the FY06-07 budget be increased for the Solid Waste Procurement Consultant to provide additional services.

BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES:

The following adjustments be made to the FY06-07 budget:

Increase the Waste Reduction fund budget as follows:
Waste Reduction #213-3013-431-32-00 Professional/Technical $25,000

PASSED, APPROVED, AND ADOPTED THE 19th DAY OF DECEMBER 2006.

___________________________
MAYOR

ATTEST:
______________________
CITY CLERK

State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )

I, CAROLYNN PETRU, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2006- was duly and regularly passed and adopted by the said City Council at regular meeting thereof held on December 19, 2006.

_____________________________
CITY CLERK