SR-503-001 (2)
Council Meeting: October 25, 2005 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Professional Services Agreement for Operations, Financial, and Rate
Review of Current Solid Waste Services
Introduction
This report recommends that the City Council authorize the City Manager to negotiate and
execute a professional services agreement with Gershman, Brickner & Bratton, Inc. (GBB)
in an amount not to exceed $188,000 for a two-phased engagement related to the City?s
solid waste enterprise. The first phase includes a study of the operations, financial
conditions, and rate structure of the City?s solid waste enterprise. The second phase, if
executed, includes development of a Request for Proposal for selected alternative delivery
methods and updating of financial conditions and rates resulting from implementation of
proposals.
Background
Issues relating to renovation and remediation of the City Yard, including the solid waste
transfer station, and optimization of collections, recycling and disposal operations have
been a recurring topic for study and policy debate for several years. On June 28, 2005,
Council authorized the formation of an Ad Hoc Committee consisting of Council Members
Ken Genser and Herb Katz to participate with staff in the identification and analysis of a
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range of solid waste management options for Council?s consideration in the spring of 2006.
Evaluation of programmatic costs and revenues and development of alternative rate
structures would be one important element of the analysis.
Discussion
On August 24, 2005, the City issued a Request for Proposals (RFP) from two firms qualified
in a Request for Qualifications process to complete a study of the City?s solid waste
operations in two phases. Phase 1 includes:
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Verification of baseline expenditure and revenue data for current services;
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Identification of possible operating efficiencies and service delivery alternatives and
their potential impact on expenditures and revenues; and
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An analysis of the City?s current rate structure to determine sufficiency and equity
among rate payers.
This phase is a not to exceed cost of $61,000.
Following completion of phase 1, if Council elects to proceed with evaluation of an
alternative service delivery model, the Phase 2 elements of the proposal would include
developing an RFP to test the market for selected service delivery models; assisting in
evaluation of RFP responses; and updates to expenditure and revenue projections and the
rate structure. This phase would not exceed $127,000. During Phase 2, the agreement may
be modified to include participation in a broader process treating reconfiguration of the City
Yard.
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Two proposals were received and reviewed by a selection committee of staff from the City
Manager?s Office and Environmental and Public Works Management. Selection factors
considered were technical competence and past performance record, staffing capability,
accomplishments with public sector clients, appropriateness of proposed approach and
methodology, and reasonableness of fee. The selection committee unanimously selected
GBB as the most qualified firm.
GBB has successfully completed similar engagements for the cities of Fort Worth, TX,
Annapolis, MD, Pontiac, MI, Plano TX, and Metropolitan Government of Nashville and
Davidson County, TN. All projects have been verified by City staff and all reference
agencies reported that work was satisfactorily completed and good working relationships
were established with the agency and public.
Budget/Financial Impact
Phase I $ 61,000
Phase II $127,000
Total $188,000
Funds in the amount of $188,000 are available in account 01202.555060, ?Professional
Services.?
Recommendations
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a professional services agreement with Gershman, Brickner & Bratton, Inc. (GBB)
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in an amount not to exceed $188,000, for a two-phased engagement including the study of
the operations, financial conditions, rate structure, and, if implemented, the development of
Request for Proposals related to the City?s solid waste enterprise.
Prepared by: Susan McCarthy, City Manager
Craig Perkins, Director, Environmental and Public Works Management
Celeste Peele, Solid Waste Operations Manager
Donald Patterson, Acting Assistant to the City Manager - Management Services
Reference Contract No. 8524 (CCS).
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