EXISTING POLICY

Solid Waste Sub-Element, Policy 3.2D.2 – Reduce the amount of refuse being disposed, generate recycling revenues, and minimize truck travel to the disposal site through use of the Sunnyvale Materials Recovery and Transfer (SMaRT) Station.

DISCUSSION

In preparation for the expiration of the current agreement on December 31, 2007, staff has prepared the Request for Proposals for the Operation of the Sunnyvale Materials Recovery and Transfer Station (RFP).  City Staff has worked with the staffs of the other SMaRT Cities to gain their perspectives on the content of the RFP and the new contract and has, to the extent possible, incorporated that input into the RFP.

A study session was held on March 21, 2006 to provide the City Council with an update on the RFP, outline key contract provisions and receive input from the Council on the RFP content and process.

Key provisions of the RFP, shown as Attachment A, are summarized below.

• Seven-year agreement
• Contractor has 3 sources of revenue

1. fixed annual payment for handling amounts of municipal solid waste and yard trimmings under anticipated tonnage ceiling, with a payment per ton if amounts go above ceiling (CPI adjusted)

2. diversion-based share of material sales revenues

–  minimum diversion 17.5%

–  25% diversion earns 75% of revenues

3.  per cubic yard charge for public haul wastes (CPI adjusted)

• Employee wages are required to be, at minimum, those shown in a determination of prevailing wages issued by the Department of Industrial Relations on February 28, 2006.  Contract language defines & quantifies the risk to a contractor if prevailing wages increase during the contract term
• Includes Communications Guidelines for Proposers and Council during the procurement process

The RFP is in draft form at this time, and is subject to minor changes between now and the date it is issued as contract language is finalized and the document is compiled.

The proposed schedule for this procurement is shown below.  Dates shown are approximate and subject to change based on a number of factors.  However, the staff has built into the schedule sufficient extra time that a minor delay in any one step of the process should not hinder the implementation of the new contract by January 1, 2008.

Staff anticipates that various addenda to the RFP will be issued prior to the proposals due date.  The addenda will provide proposers with updated information on the materials recovery equipment replacement project currently being designed, address questions posed by proposers and provide other process or content updates that may become necessary.

FISCAL IMPACT

There is no fiscal impact for approval to distribute the Request for Proposals for Operation of the Sunnyvale Materials Recovery and Transfer Station.  The use of a competitive process to award the next contract will either reduce the cost of SMaRT Station operation or, at a minimum, provide the City and its partners, Mountain View and Palo Alto, with a market-based price for operation of the SMaRT Station in compliance with the service standards in the contract.

Conclusion

The current agreement for the operation of the SMaRT Station expires on December 31, 2007.   A Request for Proposals process will allow the City to use a competitive process to receive and evaluate proposals, prepare analysis for Council award and execute a contract to begin services on January 1, 2008.

PUBLIC CONTACT

This report was included in the publication and posting of the Council agenda on the City’s official bulletin board and the City’s web page.  This report is also available at the Sunnyvale Public Library and the City Clerk’s Office.

ALTERNATIVES

1. Approve the Request for Proposals for the Operation of the Sunnyvale Materials Recovery and Transfer Station and direct staff to distribute the Request for Proposals to potential proposers

2. Direct staff to make changes to the RFP

3. Other action as determined by Council 

RECOMMENDATION

Staff recommends Alternative 1, that the Council approve the Request for Proposals for the Operation of the Sunnyvale Materials Recovery and Transfer Station and direct staff to distribute the Request for Proposals to potential proposers.  

Reviewed by:

Marvin Rose, Director, Public Works

Prepared by: Mark Bowers, Solid Waste Program Manager

Approved by:

Amy Chan

City Manager

Attachment

A. Request for Proposals for the Operation of the Sunnyvale Materials Recovery and Transfer Station, June 1, 2006. (.pdf)