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  Consent-Community Services   # 38.       
Board of Supervisors   
Meeting Date: 07/23/2019  
Brief Title:    Operating Agreement for Construction and Demolition Recycling Facility at the Landfill
From: Taro Echiburu, Director, Department of Community Services
Staff Contact: Jeff Kieffer, Senior Civil Engineer, Department of Community Services, x8855
Supervisorial District Impact:

Subject
Approve fourth amendment to Agreement No. 16-112 with B&D Geerts Construction, Inc. for operation of the construction and demolition recycling facility at the landfill. (No general fund impact) (Echiburu/Kieffer)
Recommended Action
  1. Approve fourth amendment to Agreement No. 16-112 with B&D Geerts Construction, Inc. for operation of the construction and demolition recycling facility at the landfill; and
     
  2. Authorize the Chair of the Board to sign the agreement.
Strategic Plan Goal(s)
Operational Excellence
Sustainable Environment
Reason for Recommended Action/Background
On July 12, 2016, the Board approved an agreement with B&D Geerts Construction for operation of the construction and demolition (C&D) facility at the landfill. Operations under this agreement began on July 22, 2016. Mixed construction and demolition waste (wood, lumber, metal, sheetrock, plastic, etc.) is received at the facility for recycling to help landfill customers meet the recycling mandates that are often part of a construction building permit. Typical operations at the C&D facility involve ground sorting a portion of the C&D waste by B&D Geerts staff to remove recyclable commodities and sending a portion of the unsorted material to an off-site sorting facility where the material is further processed for recycling.  Over the term of the agreement, three amendments have been approved by the Board establishing rates and adjusting rates for the off-site sorting.  The rates for on-site activities, including labor and equipment have remained unchanged since the beginning of the agreement.
 
The original term of the agreement expires on July 31, 2019.  The original agreement includes provisions for extending the term of the agreement for two additional one year terms.  However, operating costs, including equipment and labor have increased since 2016 and the contractor is requesting an increase in their compensation to cover these costs.  The attached amendment incorporates a 10 percent increase over the 2016 rates, which is essentially an inflationary increase from 2016 rates.
Collaborations (including Board advisory groups and external partner agencies)
County Counsel has approved the amendment as to form.
Competitive Bid Process
Request for Proposals (RFP) Service Requested: A RFP for operation of the C&D facility was issued on May 11, 2016 with proposals due on Jue 3, 2016.  Two proposals were received.

Evaluation Criteria Included in RFP
  • Overall responsiveness and compliance with RFP requirements  (5 points)
  • Financial Stability (10 points)
  • Staff Experience (including jurisdictional references) (15 points)
  • Past performance and compliance history (15 points)
  • Project Management Experience (25 points)
  • Cost Proposal (20 points)
  • Exceptions to agreement (5 points)
Proposals Received
 
Proposer Price
B&D Geerts Construction Actual, not to exceed $85.99 per ton
Zanker Road Resource Recovery $75 per ton

Fiscal Impact
Fiscal impact (see budgetary detail below)
Fiscal Impact (Expenditure)
Total cost of recommended action:    $   1,800,000
Amount budgeted for expenditure:    $   1,800,000
Additional expenditure authority needed:    $  
One-time commitment     Yes
Source of Funds for this Expenditure
$1,800,000
Explanation (Expenditure and/or Revenue)
Further explanation as needed:
The total amount budgeted for fiscal year 2019-2020 for the C&D operations contract is $1,800,000 but is dependent on the amount of C&D material received at the landfill.  This amendment represents a 10 percent increase in labor and equipment rates.  This increase will be offset though planned changes at the facility to streamline operations and eliminate marginal quality C&D loads from processing as well as the recent master fee changes approved by the board.
Attachments
Att. A. Fourth Amendment


    

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