DATE: June 20, 2017
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: Approve the selection through a Request for Proposal process of Stericycle Environmental Solutions to Operate the Household Hazardous Waste Facility and Related Programs for Fresno County and approve the subsequent Agreement with Stericycle Environmental Solutions to provide these services
RECOMMENDED ACTION(S):
TITLE
1. Approve and authorize the Chairman to execute an agreement with Stericycle Environmental Solutions, Inc. for overseeing the operation of the Household Hazardous Waste Facility and related programs effective August 1, 2017, not to exceed five consecutive years, which includes a three-year base contract and two optional one-year extensions, total not to exceed $4,654,500.
2. Authorize the Director of Public Works and Planning or his designee to execute the two optional one-year extensions and approve the use of funds designated for Additional Services and Contingencies.
REPORT
This Agreement will allow the continued operations of the Household Hazardous Waste (HHW) Facility located at the American Avenue Disposal Site for residents of Fresno County. This will include the Consultant’s continued implementation of a variety of Local Network Programs that significantly increase public access to HHW management options. In 2009, all sixteen jurisdictions demonstrated their commitment to this project by approving a cumulative $1.75 per ton increase in the County Solid Waste Management Surcharge Fee in order to provide the required funding.
ALTERNATIVE ACTION(S):
Your Board may deny the recommended actions and direct staff to re-issue the Request For Proposals (RFP) with an alternative scope of work. This would also necessitate an extension of the current agreement in order to comply with State regulations.
FISCAL IMPACT:
There is no Net County Cost associated with the recommended actions. Operation of the HHW Facility and associated Local Network Programs is anticipated to be fully funded by accumulated and current surcharge revenues on each ton of landfilled solid waste generated in Fresno County. The work associated with this agenda item is budgeted in the Public Works and Planning - Resources, Org 9015, FY 2016-17 Adopted Budget and funded by the County’s Solid Waste Management Program surcharge fees. Sufficient appropriations will be requested in subsequent budgets.
DISCUSSION:
The proposed Agreement represents the continuation of a more than 20-year process to comply with Integrated Waste Management Act of 1989 (AB 939) requirements to provide local access to recycling and HHW management services/programs to the residents of Fresno County.
On October 4, 2016, the Internal Services Department - Purchasing Division staff posted RFP #17-024 on the County’s website. In addition, the Purchasing Division staff sent the RFP to eleven (11) interested HHW contractors/consultants. Several companies attended the pre-proposal conference and three companies submitted proposals, including Clean Harbors Environmental Services, Stericycle Environmental Solutions and Atlas Environmental Solutions.
On December 8, 2016, a review committee consisting of Resources Division staff as well as AB 939 MOU Committee (MOU Committee) delegates representing the cities of Clovis, Sanger and Selma, met with staff from the Purchasing Division to review and assess the proposals against selection criteria established in the RFP.
On January 10, 2017, based upon the recommendations of the review committee, the Purchasing Division issued a Tentative Award Notice, pending Board approval, to Stericycle Environmental Solutions, Inc., the most responsive, responsible bidder whose proposal had been determined to be the most advantageous to the County. Subsequently County staff has prepared and negotiated an agreement (Agreement) and recommends approval of the Agreement with Stericycle Environmental Solutions (Consultant) to staff/oversee the day-to-day operations of the HHW Facility and Local Network programs for up to 3 years with an option for two additional one-year extensions.
The maximum total compensation to be paid to the Consultant under the Agreement for three years shall not exceed $2,291,600. In addition, the maximum total compensation to be paid to the Consultant under the Agreement for possible years 4 and 5 shall not exceed $1,086,400 and $1,276,500, respectively. The total potential maximum amount of compensation shall not exceed $4,654,500.
The Agreement authorizes the Consultant to operate the HHW Facility for three years, with two optional extensions, each for an additional one-year period. This Agreement will expire five years from the initial operation date of August 1, 2017, on July 31, 2022.
This Agreement does not include: 1) the cost of any HHW Facility/Program-related services, equipment, and supplies provided by County Departments and/or employees, 2) costs associated with any required land use and/or landfill permit revision processes, 3) leasehold improvements, 4) the acquisition, installation and ongoing maintenance of the HHW Facility’s Major equipment, 5) any fees paid directly by the County to other agencies or vendors, nor 6) cost associated with closure/post-closure (other than the updating of the Closure/Post-Closure plan/documents).
By moving forward with this Agreement, the residents of Fresno County will continue to have access to a cost-effective, regional, permanent HHW Facility approximately 48 Saturdays per year (and possibly additional as applicable). In addition, this will help the growing Local Network of collection sites, now located in every jurisdiction within the County as well as the unincorporated County continue to provide convenient, local collection of such items as paint, sharps, batteries and fluorescent lamps. Based upon need and available funding, some additional, small temporary/mobile events may be scheduled to address items not accepted at Local Network locations.
The AB 939 MOU Committee has actively participated in the consultant selection process.
REFERENCE MATERIAL:
AI # 46 December 16, 2014
AI # 43 June 19, 2012
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - HHW Operations Agreement
CAO ANALYST:
John Hays