SR-05-12-2015-3BCity nil Report
City Council Regular Meeting: May 12, 2015
Agenda Item:315
To: Mayor and City Council
From: Susan Cline, Interim Director of Public Works
Subject: Contract Services Agreement with Stericycle Environmental Solutions to
Provide General and Hazardous Waste Disposal
Recommended Action
Staff recommends that the City Council:
1. Award Request for Proposals (RFP) #24 to Stericycle Environmental Solutions, a
Texas -based company, to provide a household hazardous waste (HHW) door -to-
door curbside collection program, hazardous waste management, transportation
and disposal services of HHW for various City locations, staffing for the HHW
Center, sewer diversion and wet well cleaning and waste disposal.
2. Authorize the City Manager to negotiate and execute a contractual services
agreement with Stericycle Environmental Solutions in an amount not to exceed
$285,000 (includes 14% contingency) for services required by the Resource
Recycling, and Recovery Division for one year, with two additional one -year
renewal options in the amount of $285,000 each year, with an increase based on
the Waste Collection and Remediation Services Producer Price Index (PPI) or
Consumer Price Index (CPI) whichever is greater up to a 5% increase for a total
amount not to exceed $855,000 over a three -year period, with funding contingent
upon Council budget approval.
3. Authorize the City Manager to negotiate and execute a contractual services
agreement with Stericycle Environmental Solutions in an amount not to exceed
$110,000 (includes 10% contingency) for services required by the Water
Resources Division for one year, with two additional one -year renewal options in
the amount of $110,000 each year, with an increase based on the Waste
Collection and Remediation Services PPI or CPI whichever is greater up to a 5%
increase, for a total amount not to exceed $330,000 over a three -year period,
with funding contingent upon Council budget approval.
4. Authorize the Director of Public Works to issue any necessary modifications to
complete additional services within budget authority.
Executive Summary
The City closed the Household Hazardous Waste (HHW) Drop -Off Center to residents
in September 2013 after implementing a residential curbside HHW collection program.
The HHW Center remains operational on a fee - for - service basis to City in -house
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operations and small quantity business generators. 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.
Additionally, the City's Wastewater Division requires hazardous waste disposal
management, transportation, pumping, cleaning and waste disposal services when
maintenance is performed on sewer diversion treatment units, wet well and oil -water
treatment interceptors.
In March 2015, the City published a Request for Proposals (RFP) for household
hazardous waste services. After reviewing the six proposals received, staff
recommends Stericycle Environmental to provide these services for the Resource
Recycling and Recovery Division in an amount not to exceed $285,000 for one year and
for the City's Wastewater Division in an amount not to exceed $110,000 for one year.
Background
The City generates hazardous waste on a continuous basis from residents, in -house
City operations, and emergency response. 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. The City,
beginning in January 2011, transitioned from a residential drop -off program at the
Household Hazardous Waste Center to a door -to -door curbside collection program
which was fully implemented and available to all single family and multi - family residents
by September 2013.
On November 23, 2010 (attachment A), 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 ending June 30, 2015.
Curbside, Inc. was subsequently purchased by Waste Management, and the name of
the firm was changed to WM Curbside, Inc. This contract will expire on June 30, 2015.
On June 12, 2012 (attachment B), following a competitive process, Council authorized a
contract with Rho -Chem LLC a wholly owned subsidiary of PSC Environmental Services
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LLC, to provide hazardous waste transportation, management and recycling /disposal
services from July 1, 2012 through June 30, 2015 in the amount of $200,000 per fiscal
year. This contract included hazardous waste disposal services for the City's
Wastewater Division which includes maintenance of sewer treatment diversion units,
wet well, oil -water treatment interceptor cleaning and waste disposal. This contract will
expire on June 30, 2015.
Discussion
The Household Hazardous Waste Door -to -Door Curbside Collection Program was
implemented as a pilot program in January 2011 and is currently available to all single
family and multi - family residences. Typical types of hazardous waste collected from
residents include paints, adhesives, batteries, aerosols, fluorescent lamps, electronics,
used oil, and pesticides. The contractor collects the materials at the residences and
then transports these materials to approved hazardous materials certified facility for
further processing, transportation, recycling and disposal.
In FY 2013 -14, 1,932 residences participated in the curbside collection program.
Surveys received from many of these residents advised that the program was easy,
convenient and the most favorable benefit of the program was eliminating the need to
drive to a drop -off location. The least favorable recurring comment from the residents
included the length of time from the initial call for the collection service to the actual
scheduled collection date.
Staff worked with the contractor to reduce this wait time from four weeks on the average
to two weeks from the initial call to the actual scheduled collection date. The Request
for Proposals issued in March 2015 for the door -to -door hazardous waste collection
services reduced the length of time from initial contact to actual collection day from
fourteen days to five business days. Staff will continue outreach efforts to the
residential communities to increase participation in the curbside program.
The HHW Center is currently open for in -house city operations, emergency response
and small quantity business generators. The HHW center is staffed with one full -time
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Hazardous Materials Technician and two part -time contracted staff. Contracted staff is
certified hazardous waste technicians that are trained in specialized packaging of
hazardous waste and licensed to transport hazardous waste materials to the processing
facility. Also, contracted staff provides the required hazardous waste materials
management for loading the materials onto equipment and transporting hazardous
materials to the certified processing facility.
The City's Wastewater Division also requires disposal of it hazardous waste from its
sewer diversion treatment units, wet well, and oil -water treatment interceptors located at
the City Yards, Santa Monica Urban Runoff Recycling Facility (SMURRF), and three
other locations in the City. Currently, PSC Environmental Services, LLC is the
contractor providing these specialized services for hazardous material disposal.
Contractor /Consultant Selection
On March 3, 2015, the City issued a Request for Proposals (RFP) for a household
hazardous waste door -to -door curbside collection program, hazardous waste
management, transportation and disposal services of HHW for various City locations,
staffing for the HHW Center, and sewer diversion treatment units, wet well, oil -water
treatment interceptor cleaning and waste disposal. The RFP was posted on the City's
online bidding website and notices were advertised in the Santa Monica Daily Press in
accordance with the City Charter and Municipal Code provisions. A total of 525 vendors
were notified and 16 vendors downloaded the RFP. Six proposals were received from
Clean Harbors Environmental Services, Environmental Logistics, Express
Environmental Corporation, Ocean Blue Environmental Services, OC Vacuum, and
Stericycle Environmental Solutions, per attachment C.
Proposals were evaluated on the following criteria: Experience (10 %), References (5 %),
Meeting Service Time Requirements (15 %), Staffing (20 %), Cost (30 %), and Meeting
HHW Certifications and Guidelines (20 %).
Stericycle Environmental Solutions was the best qualified bidder, meeting the service
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time, experience, staffing, cost, and certification requirements. Based on these criteria,
Stericycle Environmental Solutions, the lowest bidder for all services requested is
recommended as the best qualified and lowest bidder to provide hazardous waste
disposal in the amount of $285,000 for the Resource Recovery & Recycling Division for
one year and $110,000 for the Wastewater Division for one year.
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Financial Impacts & Budget Actions
The contract to be awarded to Stericycle Environmental Solutions for the Resource
Recovery & Recycling Division is for an amount not to exceed $285,000, with two
renewal options for a three -year contract total not to exceed $855,000. Funds are
included in the FY 2015 -17 Proposed Biennial Budget in the Public Works Department.
The contract will be charged to account 274412.555130 (Resource Recovery &
Recycling).
The contract to be awarded to Stericycle Environmental Solutions for the Wastewater
Division is for an amount not to exceed $110,000, with two renewal options for a three -
year contract total not to exceed $330,000. Funds are included in the FY 2015 -17
Proposed Biennial Budget in the Public Works Department. The contract will be charged
to account 31661.566630 (Wastewater).
Future year funding is contingent on Council budget approval.
Prepared By: Thomas Poon, Senior Administrative Analyst
Approved Forwarded to Council
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Susan Cline, Interim Director of PLIUM'OA5
Attachments:
A. November 23, 2010 Staff Report
B. June 12, 2012 Staff Report
C. RFP Results for HHW (XLSX)
Elaine M Polachek, Interim City M8Wq@d5
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Reference:
Agreement Nos.
10054 (CCS)
E19
10055 (CCS)