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Consent-Community Services # 19.
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| Board of Supervisors |
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| Subject |
| Adopt resolution waiving the competitive bidding process for the solid waste franchised services provided under the USA Waste of California, Inc. (Waste Management) and Recology Davis (Recology) agreements. (No general fund impact) (Echiburu/Juhler) |
| Recommended Action |
| Adopt resolution waiving the competitive bidding process for solid waste franchised services provided under the USA Waste of California, Inc. (Waste Management) and Recology Davis (Recology) agreements. |
| Strategic Plan Goal(s) |
| Sustainable Environment |
| Reason for Recommended Action/Background |
In 2008 Yolo County entered into two exclusive franchise agreements with USA Waste of California, Inc. (Waste Management) and Recology Davis (Recology) which are coming to term on June 30, 2019 and September 6, 2019 respectively. Under new requirements set by CalRecycle as it pertains to recycling mandates set by AB 341 and organics (yard waste and food waste) mandates under AB1826, the newly drafted agreements hold significant changes on the expectations of the haulers to assist with such compliance of these new laws.
The Integrated Waste Management Division (IWMD) is seeking Board approval to waive the requirement to issue a request for proposals (RFP) and to enter into direct negotiations with the existing waste haulers. The reason for this request is that in staff's experience, the RFP process in the waste hauling market has a tendency to result in less advantageous terms for the residents. The purpose of starting a negotiation process at this time is that if rates and services are not negotiated to the satisfaction of the Board, IWMD staff will still have enough time to take the agreements out to a competitive bid through a formal request for proposal process. If the Board approves staff's recommended action, the IWMD would request proposals and pricing back from the Waste Management and Recology in March of 2019 and will finalize legal and departmental review in April of 2019. If satisfactory, IWMD would bring new agreements for Board approval in May of 2019. If not successful, IWMD staff would put the agreements out to bid in May of 2019, extend the Recology contract to match the Waste Management term, and return to the Board in September of 2019 with new franchise agreements.
In making this recommendation to negotiate, the IWMD began attending community meetings back in February of 2018 and made 13 presentations at community meetings in Willowbank, Madison, Esparto, Capay, El Macero, Esparto, Yolo, Knights Landing , Dunnigan, Wild Wings, and Clarksburg through October of 2018 to obtain feedback on satisfaction with current waste haulers, level of services, and to explain the two new regulations listed above that will change the course of solid waste collection in the future. In addition to these community meetings, IWMD staff also conducted surveys by mail to all residents in Clarksburg, Wild Wings, Willowbank and Yolo who addressed specific waste and recycling needs. An example of this is working with Willowbank, who has formed a solid waste subcommittee to specifically address loose pile collection of yard trimmings.
The IWMD has evaluated the level of service provided by the existing franchisees, and has determined that a competitive bidding process will not result in any material improvements in the level of service rates as compared to what could be achieved through direct negotiations. The significant cost of implementing the competitive bidding process would divert resources from other important waste services, and that public, safety, and well-being require proceeding with direct negotiations, which are in the best interests of the County. |
| Collaborations (including Board advisory groups and external partner agencies) |
| The IWMD hired HF&H Consultants, LLC, in January of 2019 to perform an independent review of the draft, amended franchise agreement prior to initiation of a negotiation process. HF&H was selected based upon their past experience preparing the County's current franchise agreements and their expertise performing more than 350 solid waste and recycling service procurements, contract development and negotiations for government agencies in California. The new draft agreement has also been reviewed and approved by County Counsel. |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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Explanation (Expenditure and/or Revenue) |
| Further explanation as needed: |
| Upon successful completion of solid waste franchise negotiations, and upon two-thirds vote of the Board for new solid waste franchise agreements with Waste Management and Recology, the IWMD expects to receive $400,000 annually in franchise fees to administer the oversight of those agreements, repair County roads surrounding the landfill, collect hazardous waste and solid waste illegally dumped along County roadsides, operate the Esparto Convenience Center in Esparto, and conduct education and outreach to Single-Family, Commercial and Multi-Family Premises regarding solid waste franchise programs and state recycling mandates. |
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