SR-503-001 (4)~~+ . .
~ ~;ty o, City Council Report
Santa Monica
City Council Meeting: September 12, 2006
Agenda Item: ~ -H
To: Mayor and City Council
From: Craig Perkins, Director, Environmental & Public Works Management
Steve Stark, Chief Financial Officer
Subject: Second Modification to Agreement 8524 (CCS) with Gershman, Brickner
and Bratton, Inc. for Operations, Financial and Rate Review of Solid
Waste Services.
Recommended Action
It is recommended that the City Council authorize the City Manager to negotiate and
execute a Second Modification to Agreement 8524 (CCS) with Gershman, Brickner and
Bratton, Inc. (GBB) in the amount not to exceed $240,000.
Executive Summary
GBB has been engaged with the City since October 2005 for a multi-phased review of
solid waste operations, including operations and financial analysis, identification of
potential efficiency and the development of Request for Proposals (RFPs) for alternative
service delivery options. The scope of their involvement has benefited from additional
analysis, conference calls, and in-person meetings and field visits. To date, GBB has
delivered a detailed financial analysis, recommended efficiency improvements, and has
begun work on the development of the RFPs through the original agreement. A First
Modification to the Agreement was executed to begin work on Phase I I.
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Staff is proposing a Second Modification to this agreement to facilitate additional
involvement of GBB through the RFP development and potential resulting negotiations.
The second modification will also utilize GBB's services to assist staff in implementing
various best management practices and efficiency recommendations from their Phase I
analysis.
Discussion
Background
At its October 25, 2005 meeting, City Council authorized a two-phased professional
services agreement with GBB. Phase I included conducting an operations and financial
analysis to assist the City in determining base line revenue and expenditure data.
Phase II of the engagement provides for the development of Request for Proposals to
test the market for alternative service delivery methods.
On March 14, 2006, City Council held a Study Session reviewing the report from GBB
on the strategic review of the solid waste management system. GBB presented a
current system description, benchmarking survey, a detailed financial review,
operational alternatives, and rate options. At the Study Session, GBB also presented
several recommendations to improve efficiencies within the solid waste operations. The
presentation report can be found online at:
http://santa-monica.org/cityclerk/council/aqendas/2006/20060314/s2006031403-A.pdf.
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On April 25, 2006, Councii was presented with a report which provided a detail of
commercial services, a review of potential operational efficiencies and rate proposals for
Fiscal Year 2006-07. At that time, Council authorized Phase II, which resulted in the
First Modification to the Agreement.
Proiect Status
To date, GBB has completed Phase I of their engagement, which included the
development of a comprehensive report on the operational and financial review which
was presented to Council at the March 14 Study Session. The study session resulted in
GBB presenting a variety of recommendations to improve operational efficiencies and a
detailed financial analysis. At that time, GBB recommended implementation a plan to
build an operating reserve. Phase I involved additional analysis, conference calls and
in-person meetings than originally anticipated in the 2005 proposal. Phase I and the
start of Phase II has resulted in expenditures of $122,862.89 through June 30.
GBB is currently engaged in the development of Request for Proposals (RFP) to test
alternative service delivery methods of commercial and transfer operations. The original
GBB proposal anticipated less involvement in the contractor selection and negotiations
process than currently envisioned. Staff recommends that Council authorize additional
funds in an amount not to exceed $140,000 to continue the high level of engagement
that GBB has had with staff and to facilitate additional in-person meetings and field
visits.
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Efficiencv Improvements
In addition, Phase I of GBB's engagement resulted in the development of recommended
efficiency improvements for the solid waste operations. Staff proposes to engage GBB
to assistance the Solid Waste Management Division in developing and implementing
new and consistent policies, operational standards and procedures, perFormance
measures, and reporting standards for the collection and the material recovery (transfer
station) groups. Cost for these services is not to exceed $100,000.
Budqet/Financial I mpact
Funds in the amount of $140,000 are available in account 01202.555060 for additional
services related to the development and analysis of the RFPs. Funds in the amount of
$100,000 are available in account C270717.589000. With this modification, the total
agreement with not exceed $428,000.
Prepared by:
Donald P Patterson, Acting Assistant to the City Manager, Management Services
roved:
Steve Stark '
Chief Financial Officer
Forwarded to Council:
~mont Ewell
Manager
Craig Perki s '
Director, vironmental & Public Works
Management
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