City of Gonzales
CITY MANAGER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: March 6, 2023
FROM: Trevin Barber, City Manager
THROUGH: Trevin W. Barber, City Manager
SUBJECT: Consideration to Release a Request for Proposals by the Cities of Gonzales, Soledad, Greenfield, and King City to Select a Contractor to Collect Solid Waste, Recyclables, and Organic Waste Within the Boundaries of Each City as a Single Franchise Collection Zone
RECOMMENDATION
It is recommended the City Council approve the release of the Request for Proposals (RFP) with the intent to select and award contract(s) to one franchise waste hauler for the Cities of Gonzales, Soledad, Greenfield, and King City, regardless of the final contracting structure (singular or joint agreements).
However, the cities reserve the right to award contracts to different haulers at their discretion. The cities may also choose to extend the current contract.
BACKGROUND
The Cities of Gonzales, Soledad, and Greenfield, have a joint Revised and Restated Franchise Agreement (Agreement) with Tri-Cities Disposal and Recycling, Inc., (TCD) for the subject services that is due to expire on June 30, 2025. The City of King has a franchise agreement with Waste Management for the same services that is also due to expire on the same date. This contract term alignment allows all south county Cities to jointly solicit competitive bids and evaluate service proposals and select the proposal that best serve the Cities’ needs. A competitive bid process for waste collection services for the City was last conducted in 1997 when the current contract with Monterey City Disposal Service (dba Tri-Cities Disposal and Recycling, Inc.), was approved. It is common, and recommended, for cities to solicit competitive bids for these services about every 16 to 20 years.
AGENDA
ITEM
6 REVIEW AND ANALYSIS
The alignment of both contracts’ term end, of both Tri-Cities Disposal and Recycling, the franchise hauler for Cities of Gonzales, Soledad, and Greenfield, and Waste Management, the franchise hauler for City of King, provides all four Cities a unique opportunity to partner and conduct a competitive bid process for a new contract for waste, recycling, and organic waste collection contract through a RFP process. A goal of the joint RFP is to attract competitive bids due to the increased economies of scale. The RFP intends to select a contractor to provide uniform collection services for all four cities with some customizable options for each of the cities, such as waste transfer options, billing structure, and other additional services.
This Request for Proposals (RFP) will be issued and administered by the Salinas Valley Solid Waste Authority (Authority) on behalf of by the Cities of Gonzales, Soledad, Greenfield, and King (Cities) to select a qualified contractor to provide collect garbage, recyclables, and organic waste within the boundaries of each City as a single franchise collection zone, and also provide, or contract for, processing and marketing services for recyclables.
The RFP document proposes to continue the current collection services provided under the current Franchise Agreement to include cart-based services for residential and small business, and bin or debris box-based services for business and multi-family facilities. However, the Cities are updating the scope of services to assure compliance with most recent State mandates such as AB 1826, AB 341 and SB 1383.
Residential cart services will continue to receive unlimited recycling and organic waste collection, along with a new curbside household battery collection and free bulky waste collection services. Commercial bin services will include providing recycling collection capacity at a minimum weekly volume and collection frequency equivalent to each customer’s weekly garbage capacity, with provision to increase recycling capacity above this minimum level for a small surcharge. Commercial cart services will include up to one (1) cubic yard of recyclables collection at no additional cart, with the same surcharge provision for any additional capacity. All commercial customers are also required to subscribe to an adequate level of organics collection per AB 1826 and SB 1383 unless specifically exempted from this service by the Cities. These services will be required of all residents and businesses within each Cities’ franchise zone.
The Cities intend to enter into a ten-year agreement for services with extension options, to be negotiated with selected vendor, but not to exceed 20 years in total term. The selected contractor will be required to provide services from July 1, 2025, through June 30, 2035.
The RFP timeline is as follows:
Formal issuance of RFP to proposers ...........................................................................March 8, 2023 Receive letters of intent (mandatory)/initial written questions....................................March 29, 2023 Pre-proposal conference (mandatory)........................................................................... April 12, 2023 Deadline for final Written Questions................................................................................ May 3, 2023 Cities/Authority issues written response to questions..................................................... May 12, 2023 Proposal submission deadline ........................................................................................June 21, 2023 Interviews & Shortlisting (if required).............................................................................. August 2023 Public presentations by selected proposers.................................................................September 2023 Cities receive recommended contractor selection/authorize negotiations . September - October 2023 Franchise Agreement(s) negotiations completed..............................................January – March 2024 Final Franchise Agreement(s) to cities for Approval .............................................March - June 2024 Estimated full implementation of services:
Incumbent(s) ........................................................................................................................1-2 months New Contractor(s) .......................................................... 8-12 months, and no later than July 1, 2025 Explain Recommendation and How it Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: Release of this RFP demonstrates collaboration with the neighboring cities to secure waste collection services to that include new environmental regulations for cleaner and safer communities.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community.
Explain: The solicitation of competitive proposals will allow the City to evaluate waste and recyclables collection services that are in the best interest of the community.
City services will be delivered in a cost-effective, respectful, and friendly manner to insure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner.
Explain: The solicitation of competitive proposals will allow the City to also evaluate the proposers’ costs and determine best options for community residents and businesses.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No NIA
• Housing X Yes No NIA
• Recreation X Yes No NIA
• Environment X Yes No NIA
• Education X Yes No NIA
Explain: Waste and Recyclables Collection Services are part of the critical infrastructure needed for the community.
ALTERNATIVES
Alternative 1 - The City Council could ask for more details before approving the release of the RFP.
Direction could be to approve in concept and allow the City Manager to modify the exact wording prior to release.
Alternative 2 - The City Council could determine this matter is not in the best interest of Gonzales and decline to approve the release of the RFP. The Franchise would continue in effect as previously approved.
BUDGET IMPACT
The new Franchise Agreement includes a provision for reimbursement of costs for franchise procurement and negotiations. The awarded contractor will reimburse the cost of franchise procurement and negotiations for all the involved parties a collective amount not-to-exceed $125,000. Each party, including the City of Gonzales, will track its costs and submit for reimbursement upon completion of negotiations. This one-time reimbursement is due to the City no later than August 31, 2025.
CONCLUSION
It is recommended the City Council approve the release of the Request for Proposals (RFP) with the intent to select and award contract(s) to one franchise waste hauler for the Cities of Gonzales, Soledad, Greenfield, and King City, regardless of the final contracting structure (singular or joint agreements).
However, the cities reserve the right to award contracts to different haulers at their discretion. The cities may also choose to extend the current contract.
Attachments:
1. RFP