title
CC - CONSENT ITEM - Approval of an Amendment to the Existing Agreement with RCS Trucking for Transport Services and On-Call Roll-Off Collection Services to Extend the Term to August 31, 2025 and Increase the Rates per Load Up to 15 Percent Each Year.
body
Meeting Date: August 14, 2023
Contact Person/Dept: James Pledger/Public Works
Phone Number: (310) 253-6423
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Attachments: []
Public Notification: (E-Mail) Meetings and Agendas - City Council (08/09/2023);
Department Approval: Yanni Demitri, Director of Public Works, City Engineer (07/31/2023)
____________________________________________________________________________
RECOMMENDATION
Staff recommends the City Council approve of an amendment to the existing professional service agreement with RCS Trucking for transport services and on-call roll-off collection services to extend the term to August 31, 2025 and increase the rates per load up to 15 percent each year.
BACKGROUND/DISCUSSION
Culver City's Public Works Department, Environmental Programs and Operations Division (EPO), operates an in-house waste management collection service for residents and businesses. EPO employs approximately 50 staff members who collect waste, recyclables, organics, bulky items, and construction demolition debris on a daily basis. Additionally, EPO operates a 500-ton-per-day transfer station.
The Culver City Transfer Station operates under a Solid Waste Facility Permit regulated by the County of Los Angeles Public Health Department Solid Waste Management Division (LEA). The LEA oversees the Transfer Station's management of inbound volumes to ensure compliance with daily tonnage limits. Requirements include daily documented inspection of inbound loads to identify and remove any unacceptable items in the waste stream, an operational radiation monitoring system to detect radioactive materials before entering the site, and effective dust and odor control measures.
To comply with LEA requirements and the State's recycling mandate, SB1383, materials collected from the City's residents and businesses are brought to the Culver City Transfer Station and segregated into four piles of material: solid waste, mixed recycling, organic waste, and construction and demolition debris. In addition to the volume collected from Culver City, the Transfer Station currently accepts mixed recycling from the City of Santa Monica and is currently in negotiations to accept mixed recycling from the City of Los Angeles subject to City Council approval. The City receives reimbursement for transportation costs associated with the City of Santa Monica agreement which is recognized in the Refuse Fund. It is anticipated that the proposed arrangement with City of Los Angeles would have a similar provision, providing the City reimbursement for transportation costs. The EPO Division has contracted with Waste Management Inc. to dispose of the City's solid waste and process the City's construction and demolition waste. Additionally, Athens Services is contracted to process the City's mixed recycling and organic waste. The City relies on third-party haulers to transport these materials to the various disposal and processing facilities.
In 2018, the City issued a request for proposal (RFP) for transportation services for the City’s waste and recycling materials. CR&R Inc. was awarded the contract. In 2021, in response to disputes in the agreement, the City Council terminated the agreement with CR&R and approved an agreement with RCS Trucking. RCS Trucking was the second lowest bidder in the 2018 RFP process. The contract is set to expire on August 31, 2023 (the same term as the previous agreement with CR&R)
In anticipation of the contract term end date, the City released an RFP for solid waste, recyclables, organics and demolition waste transport services and on-call roll service in April 2023. The RFP required proposers to complete a schedule of compensation chart based on mileage, with increments of 30 miles (0-30, 30-60, 60-90, and greater than 91 miles), including any price increases for each fiscal year. Two firms attended the City’s mandatory pre-bid meeting; however, only one firm submitted a proposal by the submission deadline. The City’s existing vendor, RCS Trucking, submitted their proposal shortly after the deadline.
Staff evaluated the proposal received and identified the following concerns:
• The base rates for the proposed service were significantly higher than the City’s cost estimate and exceed the City’s budget for these services.
• The response included additional fees that were not part of the bid specifications.
• The payment terms were inconsistent with City payment practices.
Due to these concerns, staff does not recommend moving forward with the proposal.
After carefully reviewing the initial proposal received, staff reviewed the late submission by RCS Trucking. RCS Trucking is proposing to increase their fees per load by 15 percent in Year 1 and up to another 15 percent in Year 2. The proposed fees from RCS Trucking are significantly less than the fees included in the other proposal that the City received. In addition, the proposed fees from RCS Trucking align with the City’s cost estimates and are within the Adopted Budget for Fiscal Year 2023-2024 for these services.
Staff has been satisfied by RCS Trucking’s performance under the current contract and finds their fees to be reasonable and within budget. Staff is recommending extending the existing agreement with RCS Trucking for two years until August 31, 2025 at the rates proposed.
During this time, staff will further evaluate current market conditions including fuel costs and recent and proposed changes in State labor and environmental law impacting these services to better understand transportation costs. In addition, on July 10, 2023, City Council approved a professional services agreement with SCS Engineers to conduct a refuse rate study. As part of the study, the consultant will examine the market forces impacting refuse costs including trucking and transportation to help develop a pricing model. Staff will report the study results back to Council once it is completed.
FISCAL ANALYSIS
Funding for this agreement is included in the Adopted Budget for Fiscal Year 2023-2024 in Account No. 20260410.615100 (Public Works Transfer Station - Refuse Disposal Services Trash) and is estimated to be approximately $2,200,000 for the fiscal year. The actual cost varies based on the volume of refuse collected and the number of loads required. The cost for services in Fiscal Year 2024-2025 is estimated to be $2,640.000 and will be included in the proposed budget for that fiscal year.
The current refuse rate study will evaluate all the costs of providing refuse service and develop a pricing model to cover those costs. The City is reimbursed by the City of Santa Monica for trucking costs associated with the volume of mixed recycling it contributes. Similarly, the City of Los Angeles for would reimburse the City for trucking costs if an agreement is reached for service.
ATTACHMENTS
None.
MOTION
That the City Council:
1. Approve an amendment to the existing agreement with RCS Trucking for transport services and on-call roll-off collection services to extend the term to August 31, 2025 and increase the rates per load up to 15 percent each year; and
2. Authorize the City Attorney to review/prepare the necessary documents; and
3. Authorize the City Manager to execute such documents on behalf of the City.