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HomeMy WebLinkAbout2020-06-16; City Council; ; Authorization to Issue a Request for Proposals Regarding Recycling, Organics and Solid Waste Collection and Organic Materials Processing Services and Authorization to NegCA Review _RMC__ Meeting Date: June 16, 2020 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: James Wood, Environmental Manager james.wood@carlsbadca.gov, 760-602-7584 Subject: Authorization to Issue a Request for Proposals Regarding Recycling, Organics and Solid Waste Collection and Organic Materials Processing Services and Authorization to Negotiate Amendments to the June 1, 2002 Agreement for Transfer Station and Disposal Services. Recommended Action Approve a resolution authorizing staff to issue a request for proposals for the city’s franchise agreement for recycling, organics and solid waste collection and organic materials processing service and to begin negotiations for additional services and a five-year extension of the city’s current contract for the transfer and disposal of solid waste at the Palomar Transfer Station. Executive Summary Staff presented an informational report on the city’s franchise agreement for solid waste collection services and recycling processing to the City Council on June 9, 2020. This item follows up on that presentation by requesting that the council adopt a resolution authorizing staff to solicit proposals from qualified companies to assume the city’s solid waste franchise agreement. The recommended resolution would also authorize staff to begin negotiations with Republic Services, the company that currently handles the transfer and disposal of trash generated in the city, for additional services and a five-year extension of the term of the city’s contract with Republic Services. Discussion Collection and processing service agreement The City of Carlsbad’s solid waste management franchise agreement for the collection and recycling processing with Waste Management expires on June 30, 2022. The city needs a new long-term agreement for waste collection and recycling to continue providing this service to residents and businesses and to adhere to recent changes in state law. HF&H Consultants, a company that assists local governments with waste management and recycling programs, has advised staff on various franchise agreement issues. Staff and HF&H have concluded that the city and its residents are most likely to obtain the best value in terms of the cost and quality of trash service through a competitive request-for-proposal process. June 16, 2020 Item #4 Page 1 of 6 Transfer and disposal service agreement The transfer and disposal of trash generated in the city is currently provided by Republic Services. Staff and HF&H consultants believe the city’s best interests are served by extending the service agreement with Republic for almost five years beyond its current expiration date, June 30, 2022. These additional five years would overlap with the city’s lease with San Diego County for the Palomar Transfer Station, which runs until May 31, 2027. This five-year extension would also give staff more time to plan for longer-term uses of the transfer station. With the council’s approval, staff will also negotiate with Republic for additional services to be provided during the five years of the extended contract. These services could include adding an organics and food waste pre-processing solution. Staff and HF&H consultants do not recommend undertaking a request-for-proposal process for the transfer and disposal service agreement because the City of Carlsbad, as the host city, already receives a preferential rate on the disposal of solid waste at the Palomar Transfer Station. The staff report on this topic presented to the council on June 9, 2020, provides additional information on these agreements. 1 Process integrity policy As the June 9 staff report noted, staff and HF&H consultants recommend that the city follow the common best practice used during the competitive request-for-proposal process for such waste management agreements. Staff has established a process integrity policy that governs the communications between companies offering proposals and the city to protect the city by limiting communication between the companies making the proposals and the authorized negotiations team. The City of Carlsbad Code of Conduct for Procurement Process is attached as Attachment A to the resolution. Next Steps Collection and processing service agreement With the approval of the City Council, staff and HF&H will prepare and issue a request for proposal and franchise agreement for collection and processing services. The proposal process would include the following steps and milestones:  Mid-June 2020: Issue request for proposal  May-September 2020: Conduct community and stakeholder outreach  Mid-September 2020: Receive proposals  Mid-September-November 2020: Evaluate proposals  November-December 2020: Negotiate franchise with finalist(s) 1 This staff report is available at https://cityadmin.carlsbadca.gov/civicax/filebank/blobdload.aspx?BlobID=44950, page 5. June 16, 2020 Item #4 Page 2 of 6  Late January-early February 2021: Present recommended contractor and proposal for City Council approval of agreement  February-December 2021: Preparation for implementation of approved contract  January-June 2022: Implementation of services to residential and commercial accounts Transfer and disposal service agreement With the council’s approval, staff and HF&H will also enter into negotiations with Republic on a service agreement extension for the transfer and disposal of the city’s waste. The expected timeline for those negotiations would be:  August 2020 to May 2021: Negotiations with Republic  July 2021: Presentation of agreement for City Council consideration and approval  January 2022: Potential early start of services  July 2022: Start of extended term Fiscal Analysis There are no fiscal impacts associated with this report. Environmental Evaluation (CEQA) This action does not constitute a “project” within the meaning of the California Environmental Quality Act under Public Resources Code section 21065 in that it has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and therefore does not require environmental review. Public Notification and Outreach Public notice of this item was posted in accordance with the Ralph M. Brown Act and it was available for public viewing and review at least 72 hours prior to scheduled meeting date. Exhibit 1. City Council resolution, including Attachment A: City of Carlsbad Code of Conduct for Procurement Process June 16, 2020 Item #4 Page 3 of 6 RESOLUTION NO. 2020-111 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING STAFF TO ISSUE A REQUEST FOR PROPOSALS REGARDING RECYCLING, ORGANICS AND SOLID WASTE COLLECTION AND ORGANIC MATERIALS PROCESSING SERVICES AND AUTHORIZATION TO NEGOTIATE A FIVE-YEAR EXTENSION OF AND OTHER AMENDMENTS TO THE JUNE 1, 2002 AGREEMENT FOR TRANSFER STATION AND DISPOSAL SERVICES. Exhibit 1 WHEREAS, the city has a franchise service agreement for recycling, organics and solid waste collection and organic materials processing services that expires on June 30, 2022; and WHEREAS, the city has a service agreement for the transfer and processing of solid waste generated in the City of Carlsbad and delivered to the Palomar Transfer Station that expires on June 30, 2022;and WHEREAS, new state laws and regulations regarding recycling, organics and solid waste have been adopted that require the establishment of additional programs to ensure compliance with such new laws; and WHEREAS, on March 12, 2019, the city received a letter of concern from CalRecycle in which CalRecycle maintained the city had neither demonstrated active planning nor provided organics recycling, including food waste collection services, to regulated businesses; and WHEREAS, on June 9, 2020, city staff presented the city council with an informational item explaining the benefits for soliciting proposals for the city's franchise agreement for recycling, organics and solid waste collection and organic materials processing services; and WHEREAS, on June 9, 2020, city staff presented the benefits of initiating negotiations with Republic Services for a five-year extension of, and other contract amendments relative to the transfer and processing of solid waste generated in the City of Carlsbad and delivered to the Palomar Transfer Station; and WHEREAS, best practices involving the solicitation of proposals for recycling, organics and solid waste services include the implementation of a Code of Conduct for Procurement Process Policy that protects the city by limiting communication between the companies making the proposals and authorized individuals on the negotiations team. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: June 16, 2020 Item #4 Page 4 of 6 Exhibit 1 1. That the above recitals are true and correct and are incorporated herein by reference as findings set forth in full. 2. The city council authorizes staff to issue a request for proposals for recycling, organics and solid waste collection and organic materials processing services. 3. The city council authorizes staff to initiate negotiations with Republic Services for a five-year extension of, and other amendments to, the June 1, 2002 Agreement for Transfer Station and Disposal Services for transfer and processing of solid waste generated in the City of Carlsbad and delivered to the Palomar Transfer Station. 4. The city council adopts the Code of Conduct for Procurement Process Policy, attached to this Resolution as Attachment A, as the policy that shall govern communication between the companies submitting proposals in response to the request for proposals described in this Resolution and the authorized individuals on the city's negotiations team. ' 5. If any section, subsection, sentence, clause, or phrase of this resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the resolution. The City Council hereby declares that it would have passed this resolution and each section, .. subsection, sentence, clause, and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional. Attachment A: City of Carlsbad Code of Conduct for Procurement Process PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 16th day of June 2020, by the following vote, to wit: AYES: NAYS: ABSENT: Hall, Blackburn, Bhat-Patel, Schumacher. None. None. MA TT HALL, Mayor (SEAL) June 16, 2020 Item #4 Page 5 of 6 Attachment A CITY OF CARLSBAD CODE OF CONDUCT FOR PROCUREMENT PROCESS POTENTIAL CONFLICT OF INTEREST. Each City of Carlsbad Council Member shall inform the City Manager and each Elected Official of the City of Carlsbad ("Elected Official") shall inform staff on the city’s negotiations team of any potential conflicts of interest regarding potential proposers for recycling, organics and solid waste collection and organic materials processing services for the city ("Potential Proposers"). Information regarding potential conflicts shall be provided within 10 days of the Council Member or Elected Official learning of the potential conflict. CONTRIBUTIONS. No City Council Member or Elected Official shall accept any contributions by Potential Proposers from the date of adoption of this code, June 16, 2020, until the procurement is finalized and a new contract is executed. Each City Council Member and Elected Official shall disclose all past contributions from Potential Proposers to the City Manager. PROHIBITED CONTACTS. No City Council Member or Elected Official shall have non-public meetings or conversations with Potential Proposers from the date of adoption of this code, June 16, 2020, until the procurement is finalized and a new contract is executed regarding the Procurement Process or any matters involving the Potential Proposers. However, this section shall not prohibit City Council Members and Elected Officials from meeting with Potential Proposers for purely social reasons. All City Council Members and Elected Officials shall refer any questions regarding the Procurement Process to the City Manager. City Council Members and Elected Officials shall disclose to the City Manager any non-public meetings or conversations with Potential Proposers regarding the Procurement Process which occurred prior to the adoption of this code, June 16, 2020. A “non-public” meeting is any meeting that has not been called and held in accordance with the Brown Act. June 16, 2020 Item #4 Page 6 of 6 Tammy Cloud-McMinn From: Sent: To: Subject: Dear Ms. Engleson, gober2c@aol.com Tuesday, June 16, 2020 12:51 PM City Clerk City Council Agenda Item #4 -Public Request for Resolution Amendment Prior to Adoption All Receive -Agenda Item# .:J.._ For the Information of the: . C\:; COUNciL ,,- Date (£_/_}l(2_ CA VCC _ CM ..... -ACM ./'l)CM (3) .::::_ -- Would you please forward this email directly to each Carlsbad City Council Member right away for their consideration at today's city council meeting? Thank you very much for your assistance. Office of the City Clerk City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Re: City Council Agenda Item #4. AUTHORIZATION TO ISSUE A RFP REGARDING RECYCLING, ORGANICS AND SOLID WASTE COLLECTION AND ORGANIC MATERIALS PROCESSING SERVICES AND AUTHORIZATION TO NEGOTIATE AMENDMENTS TO THE JUNE 1, 2002 AGREEMENT FOR TRANSFER STATION DISPOSAL SERVICES -Adoption of a resolution authorizing staff to issue a Request for Proposals regarding recycling, organics and solid waste collection and organic materials processing services and authorization to negotiate a five-year extension of and other amendments to the June 1, 2002 agreement for transfer station and disposal services. (Staff contact: James Wood , Public Works) To the City Clerk of the City of Carlsbad and the Honorable Carlsbad City Council Members: We would like to respectfully request that the City Council please amend the resolution referenced above in agenda Item #4, prior to adoption of the resolution , to please direct ALL city staff that will be involved with the negotiations and other related matters to please ensure any proposed extension and amendments to the agreement, or any new agreements, include specific provisions in any such agreements that provide for the following information to be submitted to the city at least annually, and made available for easy public access and review. 1) Audited Detailed Stand-Alone Carlsbad Recycling Program Financial Information (e.g. Income Statement, Statement of Cash Flows, Balance Sheet, Supporting Notes, etc.) for the last complete fiscal year (the detailed financial 1 information referenced above is basic financial information for all of Carlsbad's Recycling Program activities separately stated from (and not commingled with) the financial information of the City's Trash Program), and 2) Audited Detailed Stand-Alone Carlsbad Trash Program Financial Information (e.g. Income Statement, Statement of Cash Flows, Balance Sheet, Supporting Notes, etc.) for the last complete fiscal year (the detailed financial information referenced above is basic financial information for all of Carlsbad's Trash Program activities that is stated separately from (and not commingled with) the financial information of the City's Recycling Program). We previously requested similar information from the city (to review and analyze proposed trash and recycling rate increases in the past), and we were denied, and advised the vendor refused to provide the information requested unbelievably representing the information did not exist. Thank you for your consideration and assistance. Sincerely, Giovanni and Anne Bertussi Carlsbad, CA CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe. 2