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SR-503-001-02-01 (9)___ - ~~ . . _~ ~,~y 6f City Council Report Santa Monica City Council Meeting: March 13, 2007 Agenda Item: -~- ~ To: Mayar and City Council From: Craig Perkins, Director - Environmental and Public Works Management Subject: Professional Services Agreement with HDR Engineering; Inc., to Assist Sofid Waste Management Division Staff in Respanding to the City's Request for Proposals for Commercial Collection and Recycling and Transfer/Disposal Services. Recommended Action S#aff recammends that the City Gouncil authorize the City Manager to negotiate and execu#e a professional services agreement with HDR Engineering, Inc., {NDR) in an ama~nt not to exceed $145,000 to assist Solid Waste Management Divisian staff in responding to the City's request for proposals for commercial collection and recycling and transferldisposal services. Executive Summary In arder to respond ta the commercial collections and recycling & transfer facility Request for Prapasals ~RFPs) that were issued by the City in late January, it is necessary to engage the services of an outside consultant wifih specific expertise in bath solid waste collections and recycling/transfer facility design and operation. The firm of NDR Engineering, Ine., has been judged to be the best bidder amor~g the three 1 firms that were salicited fior the required scope af services. In order to begin the work necessary to meet the deadlines of the RFPs, a purchase order for professional services in the amount of $55,Q00 has already been issued ta HDR under the City IUlanager's administrative authority. The recommended Council action will authorize new contract authority with HDR in the amount of $145,000. The total cost of the HDR scope af work for the project will therefare not exceed $200,000. Discussion Backgraund At its Octotaer 25, 2005 meeting, Ci#y Council authorized a two-phased professional services agreement with Gershman, Brickner and Bratton (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 far the development and issuance of RFPs to test the market far alternative service delivery methads, updates the financial analysis of the Solid Waste operations, and assists Salid Waste staff in identifying and implementirrg operational and efficiency improvements. In order to assist in responding to the commercial collections and recycling &#ransfer services RFPs, Solid Waste Managemer~t staff had initially engaged the services of GBB employees who have not been involved in the RFP solicitation process. A stafF report was distributed for the February 27, 2007, Council meeting recommending the award of a contrac# ta GBB in the amount o# $110,000 for these new services. The staff report was pulfed from the Gouncil agenda to allow staff additianal time to assess the 2 viable alternatives to utilizing GBB far this new scope of work in order to avoid any possible percep#ions of canflicts of interest in the procurement pracess. Although staff is canfident that GBB stafF would be able to provide the required assistance and avoid any potential conflict of interest, it is deemed prudent at this time to avoid any passible perception of canflict in the very important RFP review and evaluation work that remains to be performed by GBB. Staff therefore recommends engaging the serviees of a cansultant, HDR, that has not been involved in the RFP process up to #his point. GBB will continue to manage the RFP procurement process but will not be invalved in the preparation of the City's own response to the RFPs. Propased Scope af Wc~rk with HDR The proposed scope of woek by HDR provides major assistance to Solid Waste staff in the preparatian of respanses to both RFPs. The specific tasks include farmatian of new collection routes and associated costs of vehicles, labor, fuel, maintenance, collection cor~tainers, recycling containers, transpart and processing and custamer S~IVIC2 activities relaied to the Commercial Collection RFP; and projection of cos#s associated with construction, opera#ion, maintenance, stafFing, vehieles, equipment, facilities and customer service relatec# to the Refuse and Recycling Transfer Facility RFP. It is critically important that the City's responses ta the RFPs are complete and accurate. In order to ensure that the scope of work is successfully completed, HDR will work closely with Solid Waste staff in order to respond to all elements af the RFPs. Staff is confident in HDR's abili#y to provide the level of expertise required to meet the timelines for both RFPs. 3 BudqetlFinancial Impaet Fur~ds in the amount of $145,OOC} are available in account C270717.589000 for services related fio responding to the City's commercial collection and recycCing & transfer services RFPs. Prepared by: Celeste Peele, Solid Waste C-perations Manager Approved: Forwarded to Council: R. Craig Perki~s `--~'P. a ont E~n Director - Environmental and PubEic anager Works Management Department 4 e erence on rac o.