SR-091107-1Ic7_
,tYa, City Council Report
Santa Monica
City Council Meeting: September 11, 2007
Agenda Item: 1 I
To: Mayor and City Council
From: Gordon R. Anderson, Assistant City Manager
Subject: Modification to Agreement 8524 (CCS) with Gershman, Brickner and
Bratton, Inc. for Operations, Financial and Rate Review of Solid Waste
Services.
Recommended Action
Staff recommends 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 $75,000, for a total agreement amount
of $503,000.
Executive Summary
GBB has been engaged with the City since October 2005 for amulti-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,
developed the RFPs, prepared summaries of responses, cost analysis of responses,
assisted in the review of the responses and participated in two rounds of proposer
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interviews. The process has been extended several months, requiring five additional
months of GBB's involvement. The first extension was at the request of proposers and
additional extensions were at the request of the evaluation committee as additional
analysis was sought and as the evaluation committee interviewed all proposers.
Staff is proposing an additional modification to this agreement to facilitate additional
involvement of GBB through the Council study session currently scheduled for October
23, 2007. With this modification, the multi-year total for GBB's agreement will not
exceed $503,000.
Discussion
Background
At its October 25, 2005 meeting, City Council authorized atwo-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
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several recommendations to improve efficiencies within the solid waste operations. The
presentation report can be found online at:
http://santa-monica.orq/cityclerk/council/agendas/2006/20060314/s2006031403-A. pdf.
On April 25, 2006, Council 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.
On September 12, 2006, Council authorized a modification to GBB's contract in an
amount of $240,000 for additional services; including $100,000 fora GBB staff member
to work with Solid Waste staff to develop efficiency improvements, to maximize the
transfer of municipal solid waste and to maximize the efficiency of truck routing. This
scope of work was managed separately through the Solid Waste Management Division,
but included within this contract in order to provide a complete portrayal of GBB's
involvement with the City. Therefore,. with this modification, GBB's agreement amount
related to the study of solid waste cost, rates, operational revievu and RFP development
and review is $403,000 over a two year period.
Project 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
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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.
GBB is currently engaged in review of the Request for Proposals (RFP) responses to
test alternative service delivery methods of commercial and transfer operations. The
complexity of the RFPs, four options under four scenarios for transfer and disposal
services and six commercial collection options, has required extensive analysis to
develop comparison models for the evaluation committee. Additionally, after
interviewing the shortlisted proposers on July 31 and August 1, it was decided that the
second-tier group should be interviewed on August 29 in order to ensure that all
potential options are thoroughly investigated. Additionally, GBB and staff from the City
Manager's Office and Finance Departments not involved in the ranking of proposers will
be completing extensive reviews of all firms and proposers, not the short-listed firms
originally anticipated.
GBB's proposed additional scope includes funds in the amount of $15,000 for optional
work related to providing detailed financial analysis and participating in tours of
proposer facilities. It also includes $20,000 in contingency funds to be able to respond
to any additional analysis requested that is currently not anticipated.
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Budget/Financial Impact
Funds in the amount of $75,000 are available in account 01202.555060 for additional
services related to the development and analysis of the RFPs. With this modification,
the total agreement with not exceed $503,000 for all work performed since contract
inception in 2005.
Prepared by:
Donald P Patterson, Assistant to the City Manager, Management Services
Forwarded to Council:
. Anderson
City Manager
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G~y'I~ ont Ewel
anager
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Reference
Amendments to
Contract Nos. 8652
(CCS) and 8722
(CCS).