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sr-061212-3sID City of City Council Report Santa Monica City Council Meeting: June 12, 2012 Agenda Item: 133 To: Mayor and City Council From: Dean Kubani, Director, Office of Sustainability and the Environment Subject: Contract with PSC Environmental Services LLC, to Provide Hazardous Waste Transportation, Management, and Recycling /Disposal Services Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a contract with PSC Environmental Services, LLC, a Texas -based company headquartered in Houston, for hazardous waste transportation, management and recycling /disposal services from July 1, 2012 through June 30, 2013 with two renewal options through June 30, 2015 in the amount of $200,000 per fiscal year. 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. Following completion of a competitive bidding process, staff is recommending that the City Council authorize the City Manager to negotiate and execute a contract with PSC Environmental Services, LLC to provide services through June 30, 2013, with two renewal options through June 30, 2015 in the amount of $200,000 for each fiscal year. PSC Environmental Services, LLC is the City's current contractor with a contract expiration date of June 30, 2012. Background The City of Santa Monica generates hazardous waste on a continuous basis from emergency response, in -house activities, and the Household and Small Business Hazardous Waste Collection Center. Hazardous waste generation, storage, transportation and disposal/recycling activities are regulated by state and federal law. Hazardous waste must be transported by state and federally certified haulers and recycled or disposed of at state or federally certified and permitted facilities. 1 The Household Hazardous Waste (HHW) Center is managed by the Office of Sustainability and the Environment (OSE), is staffed by one full time hazardous materials technician, and is currently open to the public once a week on Saturdays. Typical types of hazardous waste collected from residents include paints, adhesives, batteries, aerosols, fluorescent lamps, electronics, used oil, and pesticides. In August 2011 the City launched a pilot hazardous waste home collection program through WM Curbside Inc. Beginning July 1, 2012 the City will reduce the hours of operation at the HHW center to one Saturday per month while continuing to offer unlimited home collection service through WM Curbside Inc. OSE will continue to operate the HHW Center on a limited basis due to strong demand expressed by residents. This will reduce costs to the City while maintaining convenient and safe HHW disposal options for Santa Monica residents. Current HHW Contracts On April 28_2008, following a competitive process, Council authorized a contract with General Environmental Management (GEM) in an amount not to exceed $250,000 to provide hazardous waste transportation, management and recycling /disposal services at the HHW Center. GEM was subsequently purchased by PSC Environmental Services, LLC. This contract is set to expire June 30, 2012. On November 23, 2010 following a competitive process, Council authorized a contract with Curbside, Inc. to provide hazardous waste home collection services in an amount not to exceed $250,000 per fiscal year through June 30, 2015. Curbside, Inc. was subsequently purchased by Waste Management, and the name of the firm was changed to WM Curbside, Inc. 2 Discussion The current contract with PSC set to expire June 30, 2012 does not include the cost of disposing waste generated by the City's Wastewater Division. The Wastewater Division currently contracts for that service separately. The new contract with PSC would combine the services for both the HHW Center and the Wastewater Division. Payment for these services would be budgeted separately by each division. Vendor Selection In February 2012, the City published Notices Inviting Bids to provide Hazardous Waste Management as required by OSE in accordance with City specifications. The bid was posted on the City's on -line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. Four bids were received and publicly opened on March 6, 2012 per Attachment A. Bids were evaluated based on price and compliance with City specifications, meeting minimum qualifications and positive history with the vendor. A committee made up of staff from OSE, Wastewater, and Finance was established to review the bids. The committee recommends PSC Environmental Services LLC as the Best Bidder based on the following criteria: their overall pricing and quality of service for transporting, disposing, and managing waste along with providing staff is competitive with the other bidders; pricing and staff for the disposal of wastewater is lower; and their staff is well trained and familiar with the operation of permanent HHW facilities. PSC Environmental Services LLC acts as an independent waste broker assisting the City in finding the most cost effective and environmentally preferable waste management alternatives and providing staffing on an as- needed basis. As the incumbent contractor, PSC Environmental Services LLC has demonstrated consistent and reliable environmental services, and proper management and transportation of hazardous 3 waste utilizing well qualified and professional staff. Based upon these criteria, the committee unanimously determined that PSC Environmental Services LLC is best qualified to deliver the professional and time sensitive services required by the City. In recognition of the City's ongoing requirement for this service, staff requests that the initial contract period extend through June 30, 2013, with two one -year renewal options allowed at the City's discretion. Financial Impacts & Budget Actions The contract to be awarded to PSC Environmental Services, LLC is not to exceed $200,000, per fiscal year. Funds in the amount of $200,000 for the first year of the contract are included in the Proposed FY 2012 -13 Budget at accounts 01226.555130 ($100,000) and 31661.566630 ($100,000). Budget authority for subsequent years will be requested in each budget cycle for Council approval. Future funding is contingent upon Council approval. Prepared by: James Velez- Conway, Senior Environmental Analyst Approved: Forwarded to Council: Dean Kubani Rod Gould Director, Office of Sustainability and the City Manager Environment Attachments: Attachment A — Pricing BID 3078 ATTACHMENTA BID DESCRIPTION: PROVIDE HAZARDOUS WASTE MANAGEMENT, TRANSPORTATION AND DISPOSALSERVICES FOR VARIOUS CITY LOCATIONS INCLUDING STAFFING THE HOUSEHOLD HAZARDOUS WASTE CENTERAS REQUIRED BY THE OFFICE OF $USTAR BID CLOSING DATE: 2- 281 CLEAN HARBORS ENVIRONMENTAL SERVICES ENVIRONMENTALLOGISTICS HTS ENVIRONMENTAL SERVICES PSC ENVIRONMENTAL SERVICES NORWELL, MA BLOOMINGTON,CA SANTA FE SPRINGS, CA INGLEWOOD, CA DESCRIPTION AVERAGE COST NOTIFICATION REQUIRED AVERAGE COST NOTIFICATION REQUIRED AVERAGE COST NOTIFICATION REQUIRED AVERAGE COST NOTIFICATION REQUIRED ITEMS TO BE PICKED UP &DISPOSED $ 151.56 N/A $ 139.58 N/A $ 248.46 N/A $ 201.45 N/A SUPPLIES $ 43.98 N/A $ 33.24 N/A COST +15% N/A $ 42.64 N/A VEHICLES $ 65.60 30AYS $ 63.40 1 -2 DAYS $ 91.00 1DAY $ 68.80 2HOURS BINS $ 8.00 2 DAYS $ 8.00 1 DAY $ 14.00 1 DAY $ 9.50 2 HOURS MINIMUM CALL OUT CHARGE $ 210.DO NO MINIMUM 4HOUR MINIMUM $ 150.00 PERSONNEL &STAFFING POSITON FIRM'S STAFF TIRE HOURLY RATE OT RATE FIRM'S STAFF TITLE HOURLY RATE OT RATE I FIRM'S STAFF TIRE I HOURLY RATE OT RATE FIRM'S STAFF TITLE HOURLY RATE OT RATE LEAD HAZ -MAT TECHNICIAN CHEMIST $ 42.00 $ 63.00 LEADTECHNICAN $ 42.00 $ 63.00 PROJECT MANAGER $ 70.00 $ 90.00 LEADTECHNICIAN $ 45.00 $ 67.50 HAZ- MATTECHNICIAN FIELDTECHNICIAN 8 58.001 57.00 1 TECHNICIAN $ 38.00 $ 57.00 1 N/A $ 50.00 $ 70.00 TECHNICIAN $ 38.00 $ 57.00 SEWER DIVERSION /OIL -WATER INTERCEPTOR PRICE PER GALLON OR HOUR TO REMOVE /DISPOSE WASTEWATER NO BID 0.65 $0.49 PER GALLON .SSPERGAUON ADDITIONALVEHICLECHARGES NOBID 0.65 $95 PER HOUR $72 PER HOUR ADDITIONALCHARGES $250 PER WASHOUT SEWER DIVERSION [OIL WATER INTERCEPTORAT CITYYARDS CITY YARD CDS UNIT N0 BID .65 PER GALLON SEE BID .85 PER GALLON RRR OIL -WATER INTERCEPTOR NO BID .65PERGALLON SEE BID .85PERGALLON REST MAINTENANCE OII- WATERINTERCEPTOR NOBID .ESPERGALLON SEE BID $72PERHOUR OTHER CHARGES $3500 FIAT FEE FOR CONFINED SPACE Reference Contract No. 9601 (CCS).