HomeMy WebLinkAbout11/26/2002 - STAFF REPORTS (21) DATE: November 20, 2002
TO: City Council
FROM: Assistant City Manager-Administration
SUBJECT: Extension of Solid Waste Collection Services Franchise Agreement with
Palm Springs Disposal Services
RECOMMENDATION:
It is recommended that the City Council approve Amendment #6 to the Solid Waste
Collection Services Franchise Agreement with Palm Springs Disposal Services extending
the term of that agreement to June 30, 2003.
SUMMARY:
The City's franchise agreement with Pahn Springs Disposal Services for the collection and
disposal of solid waste expires on December 31, 2002. At the direction of the City Council,
staff has been working with Pahn Springs Disposal Services to prepare a new franchise
agreement. Although significant progress has been made on this docu vent, a number of key
issues, including the contractor's service rates and franchise term, have yet to be resolved.
Staff is recomnendnig that the franchise agreement be extended until June 30, 2003. This _
extension should provide the additional time needed to resolve the outstanding issues, or in
the absence of an agreement with Pahn Springs Disposal Service, this extension will enable
staff to prepare a Request for Proposals for Solid Waste Services and select a new
contractor.
BACKGROUND:
On March 18, 1992, the City entered into an exclusive franchise agreement with Palm
Springs Disposal Services for solid waste collection, disposal, and recycling services.
This agreement was for a ten (10) year tern expiring on September 30, 2002.
On March 20, 2002, the City Council approved Amendment #5 extending the tern of the
franchise agreement with Palm Springs Disposal from September 30, 2002 to December
31, 2002. The purpose of this extension was to facilitate the completion of an audit of the
contractor's rates and charges, as well as to enable staff to negotiate a new franchise
agreement.
The audit findings were presented to the City Council at a Study Session held on July 24,
2002. After reviewing the audit findings, the City Council directed staff to commence
negotiations with Palm Springs Disposal Services for the purpose of preparing a franchise
agreement for the provision of municipal solid waste collection, disposal, and recycling
services within the City's incorporated boundaries.
The City's negotiating team consisting of the City Attorney and Assistant City Manager has
met with representatives from Palm Springs Disposal Services to draft a new franchise
agreement. Although significant progress has been made on this document, a number of key
issues, including the contractor's service rates and the length of the fi-anchise term, have not
been resolved. Staff believes that it is unlikely that a resolution on these issues will be
reached before the current franchise tern expires and is reconunending an extension of time
through June 30, 2003. In addition, staff is recommending that the City Council hold a
study session in December or early January to discuss the unresolved franchise issues and to
provide additional direction to staff. Palm Springs Disposal Services is in fall agreement
with this extension.
Another reason for extending the franchise agreement until the end of June, 2003 is to
facilitate a competitive procurement process to select a new contractor to provide solid
waste services in the event we are unable to reach an agreement with Palm Springs
Disposal Services by December 31, 2002.
1
Tro Butzl A taut City Manager - Administration
'/
APPROVED
City Manager
Attachments:
1. Minute Order
MINUTE ORDER NO.
APPROVING FRANCHISE AMENDMENT #6 TO
PALM SPRINGS DISPOSAL SERVICES AGREEMENT
#3082 EXTENDING THE TERM OF THE AGREEMENT
TO DUNE 30, 2003.
...............
I HEREBY CERTIFY that this Minute Order, approving Franchise Amendment #6 to
Palm Springs Disposal Services Agreement #3082 extending the term of the agreement
to June 30, 2003 was adopted by the City Council of the City of Palm Springs, California,
in a meeting thereof held on the 20th day of November, 2002.
PATRICIA A. SANDERS
City Clerk