City Council Meeting: September
12, 2006
Agenda Item: 1-H
To: Mayor and City Council
From:
Subject: Second Modification to Agreement 8524
(CCS) with Gershman, Brickner and Bratton, Inc. for Operations, Financial and
Rate Review of Solid Waste Services.
Recommended
Action
It is recommended 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 $240,000.
Executive
Summary
GBB has been engaged
with the City since October 2005 for a multi-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, and has begun work on the development of
the RFPs through the original agreement. A First Modification to the Agreement
was executed to begin work on Phase II.
Staff is proposing a
Second Modification to this agreement to facilitate additional involvement of
GBB through the RFP development and potential resulting negotiations. The
second modification will also utilize GBB’s services to assist staff in
implementing various best management practices and efficiency recommendations
from their Phase I analysis.
Discussion
Background
At its October 25, 2005 meeting, City Council authorized a
two-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 several recommendations to improve efficiencies
within the solid waste operations. The presentation report can be found online
at:
http://www.smgov.net/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.
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 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. Phase I and the start of Phase II has resulted in expenditures of $122,862.89
through June 30.
GBB is currently engaged in the development of Request for
Proposals (RFP) to test alternative service delivery methods of commercial and
transfer operations. The original GBB proposal anticipated less involvement in
the contractor selection and negotiations process than currently envisioned.
Staff recommends that Council authorize additional funds in an amount not to
exceed $140,000 to continue the high level of engagement that GBB has had with
staff and to facilitate additional in-person meetings and field visits.
Efficiency Improvements
In addition, Phase I of GBB’s engagement resulted in the
development of recommended efficiency improvements for the solid waste
operations. Staff proposes to engage GBB to assistance the Solid Waste
Management Division in developing and implementing new and consistent policies,
operational standards and procedures, performance measures, and reporting standards
for the collection and the material recovery (transfer station) groups. Cost
for these services is not to exceed $100,000.
Budget/Financial Impact
Funds in the amount of $140,000 are available in account
01202.555060 for additional services related to the development and analysis of
the RFPs. Funds in the amount of $100,000
are available in account C270717.589000. With this modification, the total agreement
with not exceed $428,000.
Prepared by:
Donald P
Patterson, Acting Assistant to the City Manager, Management Services
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Approved: |
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Forwarded to Council: |
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Chief
Financial Officer |
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P. City Manager |
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Director,
Environmental & Public Works Management |
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