SR-08-13-2013-3RCity Council Meeting: August 13, 2013
Agenda Item: 3_.(-
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Contract Modification for Waste Collection Route Optimization and Field
Monitoring System to include Route Optimization of Street Sweeping
Services
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Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a second modification to
Contract No. 9194 (CCS) in the amount of $91,250 with WM Logistics, LLC, a
Delaware -based company, to provide street sweeping routing software,
dispatching and programming services. This would result in an amended contract
with a new total amount not to exceed $459,495.
2. Authorize the City Manager to negotiate and execute a second modification to
Contract No. 9194a (CCS) in the amount of $10,500 with WM Logistics, LLC, a
Delaware -based company, for annual software maintenance and support. This
would result in an amended contract with a new total amount not to exceed
$30,200.
Executive Summary
In April 2010, Council approved a contract with the Institute of Information Technology
(IIT) to provide route optimization software, programming services and mobile field
terminals for waste collection routing for an amount not to exceed $368,245 with an
annual software maintenance cost of $19,700. In December 2011, ]IT sold their
software and contract with the City to WM Logistics, LLC as recorded under a transfer
and first modification to Contract No. 9194 (CCS). Staff recommends a second
modification to Contract No. 9194 (CCS) in the amount of $91,250 for street sweeping
routing software, dispatching and programming services, for a total amount of $459,495
and a second modification to Contract No. 9194a (CCS) in the amount of $10,500 for
annual software maintenance and support, for a total amount of $30,200 in order to
incorporate routing optimization of the street sweeping operations.
Background
In November 2008, the Resource Recovery & Recycling (RRR) Division completed the
transition of all commercial customers from private service to City waste collection
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service. The routing of the new commercial collection customers was phased in as
service was rolled out. There was no software program for waste collection in use at
the time this was implemented and tracked manually. After an audit was conducted in
September 2009, it was determined that route overlapping and inefficiencies existed
within the waste collection operations. RRR staff determined that it needed assistance
from a professional software routing program to rebalance the city -wide collection
services.
On April 13, 2010 Council approved IIT to provide route optimization software and
programming services for waste collection routing. This new program would enable the
development of equitable routes, improve service efficiencies, provide on -board maps
and travel directions, and minimize the number of customer day changes.
In December 2011, IIT sold their software and contract with the City to WM Logistics,
LLC. Several of the IF team members were also transferred to the new company in
order to provide a seamless transition. A transfer and first modification for Contract No.
9194 was processed
Discussion
The City contracted with IIT to provide a software route optimization program and field
monitoring system for waste collection services. The first phase of the project was to
realign the residential (automated - side loader) routes. On June 4, 2012, RRR
introduced route changes to 675 residences. The number of waste collection routes
was reduced from seven to six on Monday and Thursday and from seven to five on all
other days of the week as part of optimization and rebalancing efforts. The second
phase of the project was to adjust the commercial (front loader) routes. Data gathering
has been completed and the software has helped in optimizing the routes. The new
proposed commercial routes are currently being tested and will soon be implemented.
As the waste collection routing optimization project nears completion, staff has
determined that a need exists to better coordinate the street sweeping routes with the
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new waste collection routes. The original proposal submitted by IIT (now WM Logistics,
LLC) included a component for optimizing the street sweeping routes. However, it was
removed from the final contract due to funding limitations at that time. This contract
modification would enable WM Logistics, LLC to initially program the current street
sweeping time schedules data into the routing software to determine overlap and
inefficiencies. The routing software would then be customized to include programming
for coordination of the street sweeping schedule the day after waste collection services
and coordinate street sweeping at time sensitive locations such as nearby schools,
medical facilities and farmers' market.
The dispatching phase would allow the street sweepers to directly communicate with
the RRR dispatchers through the on -board vehicle tablets and would include messages
concerning activity on the street sweeping route.
Vendor Selection
In November 2009, the City issued a Request for Proposal (RFP) for a comprehensive
solid waste operational system (route optimization and mobile field services). Three
service providers (Institute of Information Technology, Precision Task Group and
Greshman, Brickner & Bratton) responded. Proposals were evaluated on price,
expertise in providing similar services to solid waste clients, and understanding of the
scope of work. After reviewing the proposals, staff from Public Works, Information
Systems and Finance along with an independent solid waste operational consultant
selected Institute of Information Technology as the best bidder. IIT (now WM Logistics,
LLC) has previously worked with both private and public sector solid waste clients
including Waste Management and the Cities of El Paso, Texas, and Shreveport,
Louisiana.
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Financial Impacts & Budget Actions
The second modification to Contract No. 9194 to be awarded to WM Logistics, LLC is
$91,250 for an amended contract total not to exceed $459,495. Funds are available in
the FY 2013 -15 budgets in division 27441; the contract modification would be charged
to account 27441.555010.
The second modification to Contract No. 9194a to be awarded to WM Logistics, LLC is
$10,500 for an amended contract total not to exceed $30,200. Funds are available in
the FY 2013 -15 budgets in division 27441; the contract modification would be charged
to account 27441.533120.
Prepared by: Kim Braun, Resource Recovery & Recycling Manager
Approved:
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Forwarded to Council:
Rod Gould
City Manager
Reference:
Contract No. 9194 (CCS)