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HomeMy WebLinkAbout6/1/2011 - STAFF REPORTS - 5C O_QALl6 S ti 'aM„eo 4t#,,O City Council Staff Report Date: June 1, 2011 NEW BUSINESS Subject: AUTHORIZATION TO NEGOTIATE NEW AGREEMENT WITH PALM SPRINGS DISPOSAL SERVICES (PSDS) PROVIDING FOR ONCE WEEKLY SERVICE. From: David H. Ready, City Manager Initiated by: Public Works and Engineering Department SUMMARY The City entered into an agreement with PSDS on July 1, 2003 to provide solid waste collection services. That agreement provides twice weekly pick up and expires June 30, 2016. Approval of this item will authorize staff to enter negotiations with PSDS on a new agreement which will modify the existing terms to, among other things, change collection to once weekly. RECOMMENDATION: 1) Authorize staff to enter into negotiations with PSDS on a new Agreement which will modify some existing terms of the current Agreement to, among other things, change collection to once weekly. STAFF ANALYSIS: The current term of Agreement No. 4727 with PSDS expires June 30, 2016 after a term of 13 years. The City Charter limits the term of any franchise agreement to 15 years which means the Agreement could be extended to no later than June 30, 2018. PSDS has prepared and submitted a proposal for once weekly service. City Staff, utilizing our solid waste consultant MSW Consultants, reviewed the proposal and presented findings to City Staff as well as PSDS. PSDS has concurred in the general conclusions included in the findings. The main conclusions were a) a new 11 year contract term b) change to once weekly residential service resulting in an average 11.4% decrease in customer rates c) fully automated collection using new CNG vehicles d) Green Waste services on a subscription basis. ITEM NO. City Council Staff Report June 1, 2011 - Page 2 Authorization to negotiate new agreement with PSDS providing once weekly service As part of the performance review of PSDS services by the City's Consultant, staff conducted a customer satisfaction survey. One thousand residential customers and 50% of the commercial customers were surveyed, yielding a margin of error of 3-6%. The overwhelming majority of customers rated PSDS's overall performance as either Good or Excellent. The survey results did show a few minor areas where improvement is needed and those areas are proposed to be addressed in the new agreement. Staff proposes to negotiate all terms of a new agreement and bring it back to Council for their consideration this coming Fall. Authorization as recommended above would need to also include approval of the MSW amendment also on this agenda. FISCAL IMPACT: Authorizing staff to negotiate a new agreement, in itself, has no fiscal impact. SUBMITTED: Recommended by: Approved by: &— c�"� c') David J. Barakian Thomas J. Wilso City Engineer& Assistant City Hager Director of Public Works Approved by: David H. Ready City Manager Attachment: PSDS proposed program rate comparison CURRENT PROGRAM w • w PROPOSED w . ■ • , PROGRAM Twice-Weekly Collection Once-Weekly Collection Estimated FY'12 Estimated FY'12 Subscription Services(1)(2) Monthly Rate Subscription Services(4)(5) Monthly Rate(3) Curbside Economy Curbside Economy (Trash: 1,32-g.can),Recycle:1,68-g. $ 17.92 (Trash: 1,68-9.cart),Rec: 1,68-g. $ 16.25 cart) cart) Family Value Curbside PLUS (Trash:4,32-g.cans), Recycle: 1,68- $ 21'21 (Trash: 1,96-gal cans),Recycle: 1,68- $ 19.54 g.cart) gal Cart) Standard Walk-In(7) Walk-in $ 20.93 (Trash: 1,68-gal cart, 1X),Recycle: 1, dl4ur'1� 68- )gal cart (Trash:2,32-g.cans),Recycle: 1,68- $ 23.40 Manual Walk-In(7)(8) p� g.cart @ curb) (Trash:4,32-gal.cans,Recycle:2,32- $ 20.93 ° x gal.cans) Estate Estate $ 59.66 $ 53.70 (Unlimited trash&recycle,walk-in) (Unlimited trash&recycle,walk-in) t o Curbside Economy Curbside Economy (Trash: 1,32-gal can,2X),Recycle: 1, $ 17.74 (Trash: 1,68-gal cart),Recycle: 1,68- $ 16-09 68-gal cart) gal cart) Family Value Curbside PLUS (Trash:4,32-gal cans,2X),Recycle: 1, $ 21.03 (Trash: 1,96-gal cans),Recycle: 1,68- $ 19.39 68-gal cart) gal Cart) Walk-In (6) Standard Walk-ln(7) (Trash:2,32-gal cans,2X),Recycle: 1, $ 23.21 (Trash: 1,68-gal cart),Recycle: 1,68- $ 20.77 68-gal cart @ curb) gal cart) PSDS Once-Weekly Revenue Analysis Update 1/20/2011(bk) t +; 4 s" ry ERkEa N S Ia Each additional refuse can $ 5.29 Each additional refuse cart $ 5.85 1st additional recycling cart $ 4.97 1st additional recycling cart Free 2nd additional recycling cart $ 4.97 2nd additional recycling cart $ 2,19 Green waste collection incl. Green waste collection $ 3.16 I�M M 3 x Ri 9 "" 1 k y Each additional refuse can $ 11.71 Each additional refuse cart $ 8.44 Walk-in recycling collection $ 4.99 Walk-in recycling collection Free 1st additional recycling cart $ 4.97 1st additional recycling cart Free r� I yyd ' 2nd additional recycling y g cart $ 4.97 2nd additional recycling cart $ 4.78 Green waste collection Incl. Green waste collection $ 5.19 Notes: (1)Trash services are twice-weekly, recycling services are once-weekly;walk-in recycling is an added cost. (2)All trash cans provided by customer; all recycle carts provided by PSDS. (3) (4)All services are once-weekly. (5)All trash &recycle carts provided by PSDS. (6)$28.18 with optional walk-in recycling added. (7)All Walk-In customers will receive walk-in recycling collection at no added cost. (8)Customer to provide 32-gal. max cans for trash &recycle collection. PSDS Once-Weekly Revenue Analysis Update 1/20/2011(bk)