HomeMy WebLinkAbout3/20/2002 - STAFF REPORTS (8) DATE: March 20, 2002
TO: City Council
FROM: Recycling Coordinator VIA Community & Economic Development Director
APPROVAL OF AMENDMENT#5 TO SOLID WASTE COLLECTION SERVICES
FRANCHISE AGREEMENT WITH PALM SPRINGS DISPOSAL SERVICES
EXTENDING SERVICE THROUGH DECEMBER 31, 2002.
RECOMMENDATION:
That the City Council approve Amendment#5 to Solid Waste Collection Services
Franchise Agreement with Palm Springs Disposal Services (PSDS) extending term to
December 31, 2002.
SUMMARY:
This action is being requested to give staff additional time to either re-negotiate the
current Franchise Agreement or prepare an RFP for new solid waste collection services.
PSDS's current Franchise expires September 30, 2002. The City has undertaken an
audit of rates and charges; the audit is due to be complete April 30, 2002. Council
then has to review the audit findings and decide which direction it wishes staff to
pursue. Therefore, the extension is recommended to perform our required due
diligence. Palm Springs Disposal Services has agreed to this extension.
BACKGROUND:
On March 18, 1992, the City entered into a Franchise Agreement with Palm Springs
Disposal Services for solid waste collection services Over the course of the past ten
years, there have been four amendments to the Agreement, ranging from rate changes
to cooperation in beginning a food waste program. This current Agreement expires in
September 2002. For almost four years, PSDS has been discussing with the City
approval of an extension to this Agreement, to accommodate their fleet conversion to
CNG and, perhaps, construct a Materials Recovery Facility. Over the course of this
time, several franchise changes have been discussed, including possible rate
reductions, automated service, conversion of their entire fleet to CNG and the
development of the Facility. No decision had been made by October 2001; therefore,
Council agreed to an audit of the Contractor to begin the process of putting a new
franchise together. Subsequent to the results of this audit, Council will decide whether
to pursue an RFP project for a new contractor or negotiate with PSDS for a new
contract.
This extension will allow staff and Council more time to make that decision and carry
through with the results.
Recycling Coordinator A5opmfeCntr o or nity & Economic
_
Approved
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City Manager
Attachments: [p
Minute Order
Amendment#5
FIFTH AMENDMENT TO AGREEMENT NO. 3082
FOR SOLID WASTE SERVICES
This Fifth Amendment ("Fifth Amendment') To Agreement No. 3082 For Solid Waste
Management Services ("Agreement') is made and entered into as of 2002
("Effective Date"), by and between the CITY OF PALM SPRINGS, a municipal corporation
organized under the laws of the State of California ("City"), and PALM SPRINGS DISPOSAL
SERVICES, a California corporation ("Contractor") .
RECITALS:
A. On or about March 18, 1992, the parties entered into this Agreement for the
provision of solid waste management services by Contractor to residents, businesses and
City facilities in the City of Palm Springs, along with Amendment Nos. 1 and 2 dated June 7,
1993, Amendment No. 3 dated July 1, 1996 and Amendment #4 dated December 5, 1998.
B. This Fifth Amendment is entered into between the parties to extend the term of the
current Franchise three months to be completed on December 31, 2002. This purpose of
this extension is to provide a little more time to work with the results of the current audit being
performed on Contractor for either negotiation of a Franchise extension or preparation of an
RFP for new solid waste services.
C. On December 19, 2001, the City entered into a contract with Hilton Farnkopf&
Hobson to perform a rate and service audit on Contractor. Contractor is requesting a ten-
year extension to their current Franchise, as they will be converting their entire fleet to CNG
requiring a substantial long-term financial commitment. The Contractor services Palm
Springs and Desert Hot Springs solely.
D. City wishes to continue to retain the services of Contractor to provide its residents,
businesses and City facilities with the highest quality of solid waste management services
during any transition period. Therefore, extending current agreement the extra six months
will allow for a smooth transition no matter what the final decision of Council.
IN WITNESS WHEREOF, the parties hereto do hereby set their hands and seals as of
the day and the year first written above.
1
A
Attest: CITY OF PALM SPRINGS
a municipal corporation
City Clerk By:
City Manager
APPROVED AS TO FORM:
City Attorney
PALM SPRINGS DISPOSAL SERVICES,
a California corporation,
By:
NOTARIZATION REQUIRED
Its:
By:
Its:
z
0 17
MINUTE ORDER NO.
APPROVING FRANCHISE AMENDMENT
#5 TO PALM SPRINGS DISPOSAL
SERVICES AGREEMENT #3082
EXTENDING EXPIRATION DATE TO
DECEMBER 31, 2002.
I HEREBY CERTIFY that this Minute Order, approving an extension to the existing
Franchise Agreement#3082 to December 31, 2002, was adopted by the City Council
of the City of Palm Springs, California, in a meeting thereof held on the 20th day of
March, 2002.
PATRICIA A. SANDERS
City Clerk