HomeMy WebLinkAboutStaff Report 387-08City of Palo Alto
City Manager’s Report
19
TO:HONORABLE CITY COUNCIL
FROM:
DATE:
REPORT TYPE:
CITY MANAGER
OCTOBER 6, 2008
CONSENT
DEPARTMENT: PUBLIC WORKS
CMR:387:08
SUBJECT:APPROVAL OF ADDITIONAL FUNDS IN THE AMOUNT OF
$100,000 FOR BLANKET ORDER NO. 4609000100 WITH
SKYLONDA EQUIPMENT FOR GREEN MATERIAL COMPOST
GRINDING SERVICES AT THE CITY’S COMPOSTING FACILITY
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or his designee to
increase funds for Blanket Order No. 4609000100 with Skylonda Equipment (Skylonda) for an
additional compensation amount of $100,000 for additional green material grinding services for
a total amount not to exceed $185,000 for Fiscal Year 2008/2009.
BACKGROUND
The City of Palo Alto owns and operates a composting facility on the landfill located at 2380
Embarcadero Road. The composting facility has been in operation since March 1977 and
currently processes approximately 21,000 tons of green material annually. Green material
includes grass clippings, leaves, shrubs, and tree branches that are delivered to the composting
facility by City crews, the Palo Alto Sanitation Company (PASCO), gardeners, tree contractors
and residents.
In 2007, in response to the continuing large amounts of incoming green material being received
and the City’s grinder undergoing major repairs, the City solicited bids for grinding services
under Request for Quotations (RFQ) #124988. Skylonda was awarded as the lowest of the three
bidders. A blanket purchase order (P.O.) No. 4608000337 was funded for $85,000 for services
rendered during the first year. A second blanket P.O. No. 4609000100 was. issued in July 2008
for Skylonda to provide grinding services for the second year and was funded for $85,000.
DISCUSSION
The City is required by permit to process (grind) the incoming green material and move the
ground material to composting windrows within 21 days of receipt of the green material. To
meet this requirement, the City has utilized additional contractor grinding services to supplement
in-house grinding due to higher quantities of green material received at the Palo Alto
Composting Facility the last couple of years and during maintenance periods for the City-owned
grinder.
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Most of the second year’s funds in P.O. #460900010 ($85,000) have already been depleted
because the City’s grinder was down for repair for two weeks in July. As a result of a
composting fire that the facility experienced in July 2008, the Fire Department requested that the
City grind all of the green material due to the risk of smoldering material buried within the green
material pile. To expedite the processing of the green material, the City utilized additional
services from Skylonda’s grinder to help with grinding the green material. -
Staff requests adding funds to the existing P.O. with Skylonda for the following reasons:
Skylonda was the lowest bidder in response, to the RFQ in 2007. Skylonda’s charge rate
is: $300.00 per hour, The next closest bidder was $410 per hour. The RFQ was expected
to select a contractor to be used for a three year period.
Skylonda currently is performing work at the compost facility. They are familiar with the
operations and daily demands of the compost facility.
Additional time and money would be required to go out to bid and to bring a new
contractor on board. The existing budget is nearly depleted and time is of the essence.
Staff estimates that $100,000 will be needed for the remainder of fiscal year (FY)
2008/09 for green materials grinding services.
RESOURCE IMPACT
Funding for this contract is available in the FY 2008-09 Refuse Enterprise Fund.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) review for this grinding activity was
performed prior to the issuance of the last solid waste facility permit. A Mitigated Negative
Declaration titled, "Issuance - Revised Solid Waste Facility Permit for Palo Alto Landfill" dated
March 8, 2006 is on file with the Public Works Department.
PREPARED BY:
DEPARTMENT HEAD:
CHUCK MUIR
Environmental Specialist
Director of Public Works
CITY MANAGER APPROVAL:
Ci~)danager /J
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