sr-011910-1kTo: Mayor and City Council
From: Dean Kubani, Director, Office of Sustainability and the Environment
Subject: Recommendation to Authorize the City Manager to modify existing
contract #9061 with General Environmental. Management. (GEM), to
Provide Hazardous Waste Transportation, Management and
Recycling/Disposal Services
Recommended Action
Staff recommends the City Council authorize the City Manager to modify the existing
contract # 9061 with GEM for hazardous waste transportation, management and
recycling/disposal to increase the contract amount by $76,000 until June 30, 2010,
making the total contract amount $326,000.
Executive Summary
The City requires ongoing hazardous waste transportation, management, recycling and
disposal services to manage waste generated by City operations, emergency response,
and the City's Household Hazardous Waste Collection Center. In addition to waste
transportation, management, and disposal, the City has relied on GEM to provide daily
staffing at the center because the City has been unable to fill a vacant hazardous
materials technician position located at the HHW Center. Because of this additional
expense the City will exhaust its contract with GEM by March 2010. Additional funding
in the amount of .$76,000 is necessary to operate the facility through June 30, 2010.
Salary savings from the vacant position are available to increase the contract with GEM
through June 30, 2010. The hours of service to the public will be adjusted to reduce the
cost of operating the facility with minimal impact to residents.
Background
The City of Santa Monica has operated a HHW Center for more than 20 years. In
calendar year 2008 the HHW Center served nearly 4400 residents and processed
approximately 180,000 pounds of hazardous waste. The HHW Center is currently
1
managed by the Office of Sustainability and the Environment (OSE). Two hazardous
materials technicians are required to legally accept and process hazardous waste from
the public. The facility is currently open to the public four days a week from 7:00 am
until 1:00 pm Wednesday through Friday and from 7:00 am to 3:00 pm on Saturday. On
April 28. 2008 Council authorized the City Manager to negotiate and execute a contract
with GEM for hazardous waste transportation, management and recycling/disposal
services from July 1, 2009 through June 30, 2011 with a renewal option through June
30, 2012 in the amount of $250,000 per fiscal year.
Staffing Challenges
OSE currently has one full-time hazardous material technician on staff and one vacant
position. The second staff member necessary to operate the facility is provided by GEM
under the contract. Finding a qualified person to fill the vacant hazardous materials
technician at the current salary level has been a challenge for the past two years. In
December of 2007 the facility experienced a vacancy which OSE was unable to fill for
more than a year. In January 2009 the City filled the vacancy for the hazardous
materials technician but was forced to release the employee in June 2009 during the
probationary period.
Depletion of Contract
In FY 2008/2009 the annual budget for GEM was $197,000. The budget in FY
2009/2010 was increased to $250,000 to account for the additional cost of labor from
the previous year. At that time the hazardous materials technician position was filled
and the staff did not anticipate having to pay for additional labor. Beginning in June
2009 once again the City utilized GEM to provide staffing at the HHW Center after the
hazardous materials technician was released. The vacancy increased the cost of
2
operating the facility and depleted the contract with GEM at a much faster rate than was
anticipated when the contract was made. Under the current conditions the City will
exhaust its budget authority for contract with GEM by March 2010.
Discussion
Based on an evaluation of the current operations at the HHW Center OSE staff
recommends that the City adjust the hours of operation and keep one (1) technician on
site while outsourcing one (1) hazardous materials technician position to GEM for the
remainder of FY 2009/2010. The salary savings of the vacant position is sufficient for
contracted staffing supplied through the GEM contract. Reducing the facility hours by
one hour per day Wednesday through Friday and by three hours on Saturday would
eliminate the need to pay overtime for contracted staff and would result in an annual
savings of $26,887. Staff anticipates that operating the HHW Center from 9 am to 2 pm
Wednesday through Saturday will continue to provide a high level of service to the
community with a minimal impact to residents.
The monthly cost of operating the facility under the proposed hours while permanently
outsourcing the vacant hazardous materials technician position is approximately
$21,400. There is currently $78,486 remaining in the GEM contract through June 30,
2010. Increasing the contract amount by $76,000 of salary savings will allow the City to
operate the facility through the end of June 2010. In July 2010 additional funding in the
amount of $250,000 will again be available for the GEM contract.
3
Financial Impacts & Budget Actions
Salary Savings in the amount of $76,000 is available in account 01226.555130 FY09-10
adopted OSE Budget to pay for the additional cost resulting from the modification to
GEM contract.
Prepared by: James Conway, Senior Environmental Analyst
Approved: Forwarded to Council:
Dean Kubani ~~f'~/Carp'ont Ewell
Director, Office of Sustainability and the it anager
Environment
4