HomeMy WebLinkAboutStaff Report 189-06City of Palo Alto
City Manager’s Report
TO:
FROM:
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE:APRIL 17, 2006 CMR:189:06
SUBJECT:TIMELINE FOR NEW REFUSE AND RECYCLING COLLECTION
CONTRACT
This is an informational report and no Council action is required.
BACKGROUND
In August 1999, Council approved a new agreement for Palo Alto Sanitation Company/Waste
Management (PASCO) to provide refuse and recycling services within the City of Palo Alto
starting September 1, 1999 for a term of up to ten years.
The agreement required City staff to conduct four reviews of the collector’s performance to
determine whether the collector complied with the standards for performance set forth in the
agreement. Each review evaluated the collector’s performance during the preceding twenty-four
months and the target cost range. PASCO performance reviews were conducted ~ 2000, 2001,
2003, and 2005. Each review determined that PASCO had met the standards for performance set
forth in the agreement. PASCO was within the target cost range in the most recent review. The
2005 review resulted in the agreement automatically continuing in effect until June 30, 2009.
DISCUSSION
In anticipation of the current refuse and recycling service agreement expiring in 2009, the Public
Works Director created a team to oversee the project to solicit proposals for a new agreement.
The team includes staff from the Administrative Services and Public Works Departments with
staff from the City Attorney’s office and the City Auditor as advisors. The team created a
timeline (Attachment A) listing major milestones. June 2008 is the estimated date for awarding a
new contract. Staff is planning to bring the new contract to Council for award one year prior to
the 2009 termination date of the current agreement to allow for a transition period between the
possible change of contractors.
Staff anticipates returning to Council in the fall of 2006 to request approval for consultant and
legal services to assist City staff in preparing for the solicitation of proposals and provide
technical support during the solicitation process and negotiations for the new contract. Staff
expects the solicitation process for a new contract to begin in June 2007.
There are three projects occurring simultaneously that will influence the new collection services.
These include the Zero Waste project, the Sunnyvale Materials Recovery and Transfer (SMART)
Station operator agreement and the City Auditor’s review of the current agreement with PASCO.
The timelines for these projects are also included in Attachment A.
CMR:189:06 Page 1 of 3
Zero Waste Project
In October 2005, Council adopted a Zero Waste resolution, approved the Zero Waste Strategic
Plan and directed staff to prepare a Zero Waste Operational Plan. Staff obtained consultant
services to conduct and prepare a waste generation study and a Zero Waste Operational Plan.
Staff plans to remm to Council in the summer of 2006 with the Zero Waste Operational Plan.
The service and program recommendations from the Zero Waste Operational Plan will direct
staff on the new services to be included in the solicitation for the new collection contract.
SMART Station Operator Project
The SMART Station is currently operated by GreenTearrdZanker of Sunnyvale. This agreement
will expire on January 1, 2008. The City of Sunnyvale is in the process of obtaining solicitations
for a new agreement. The operating agreement will be between the City of Sunnyvale and the
selected contractor for a seven-year period. At the City of Sunnyvale option, the term of the
agreement may be extended for one or more periods of three months, up to a maximum of one
year. The operational objective of the SMART Station is to maximize the cost-effective
diversion of solid waste generated by the residents and businesses of the participating agencies,
including the cities of Palo Alto, Sunnyvale and Mountain View. The new SMART Station
operation agreement will commence on January 1, 2008 and will influence what happens to the
solid waste collected in Palo Alto. The new SMART Station operator and the future selected
service provider may be of the same or different company and will have to work together.
Auditor’s Review of Current Collection Contract
Another project that will affect the new collection agreemem and furore services is the City
Auditor’s review of the current agreement with PASCO. The City Auditor’s office anticipates
completing its review by December 2006.
RESOURCE IMPACT
Funding in the amount of $225,000 for consultant and legal assistance to formulate and process
the solicitation of proposals will be requested in the 2006-07 Refuse Fund proposed budget. This
funding is needed to continue the consultant work from the start of negotiations with service
providers through the final agreement phase.
ENVIRONMENTAL IMPACT
This report is not a project under the California Environmental Quality Act (CEQA) and an
environmental review is not necessary.
ATTACHMENTS
Attachment A: Project Timelines
PREPARED BY:
Executive Assistant
CMR: 189:06 Page 2 of 3
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
GLENN S. ROBERTS
Director of Public Works
Assistant City Manager
CMR:189:06 Page 3 of 3
ATTACHMENT A
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