82175 CMS Report

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CITY OF OAKLAND ^^,^^ AGENDA REPORT O F F  tCE O F TH E  cin ci  ERf 2009 J UL 2  AM IOJO A T O :  Office of  t he  City Administrator ATTN: Dan Lindheim I- FROM: Public Works Agency DATE: July 14, 2009 R E :  Resolution Authorizing The City Administrator To Enter Into A Four-Year Agreement With The Option For A One-Year Extension For An Amount Not To Exceed Three Hundred Thousand Dollars ($300,000.00) With R3 Consulting Group To Provide Zero Waste System Design Technical Assistance Services SUMMARY A resolution has been prepared authorizing the City Administrator to enter into a professional services agreement (Agreement) with R3 Consulting Group to provide Zero Waste System Design Technical Assistance consulting services. The Agreement is for a four-year period with an option for a one-year extension in an amount not to exceed three hundred thousand dollars ($300,000.00). The technical assistance consulting services will be performed in two phases: Phase I: Modeling and testing Zero Waste system design options to identify a preferred option; and Phase II: Implementing the preferred Zero Waste system design option by assisting staff in developing scopes of work for agreements for collection, processing, transfer, and disposal of discarded products and materials. Adopting the resolution allows staff  t o  obtain consulting services to support development of  a Zero Waste system intended to provide cost-effective and leading-edge waste reduction and recycling services, and move the City toward its sustainability and waste reduction goals. In addition, this work will support sustainable local economic development consistent with the City Council's goal to Develop a Sustainable City through implementation of Oakland's Zero Waste Strategic Plan. The four-year contract term is needed to support staff in designing a new Zero Waste system before the expiration of City's Franchise Agreement for Solid Waste and Yard Waste Collection and Disposal Services with Waste Management of Alameda County, and the Agreement for Residential Recycling Service with Califomia Waste Solutions on December  3 1 2012. Phase I work will be completed by mid-2010. The majority of Phase II work will take place between 2010 and 2011. Item #: Public Works Committee July 14,2009

Transcript of 82175 CMS Report

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C I T Y O F O A K L A N D ^^,̂ ^A G E N D A R E P O R T   O F F   tC E O F T H E  c i n c

2 0 0 9 J U L 2   A M I O J

T O :  Office of  t h e   City AdministratorAT TN : Dan Lindheim I-

FROM : Public Works AgencyDA TE: July 14, 2009

R E :  Resolution Authorizing Th e City Ad m inistrato r To En ter Into A Fou r-Ye arAgreement With The Option For A One-Year Extension For An Amount Not ToExceed Three Hundred Thousand Dollars ($300,000.00) With R3 Consult ingGr ou p T o Provide Z ero W aste System D esign Technical Assis tance Services

SUMMARY

A resolution has been prepared authorizing the City Administrator to enter into a professional

services agreement (Agreem ent) with R3 Consulting Group to provide Zero Waste SystemDesign Tech nical Assistance consulting servic es. The Agreem ent is for a four-year period withan option for a one-year extension in an amount not to exceed three hundred thousand dollars($300,000.00).

The technical assistance consulting services will be performed in two phases:

• Phase I: Mo deling and testing Zero W aste system design options to identify a preferredoption; and

• Phase II: Imp lemen ting the preferred Zero Waste system design option by assisting staffin developing scopes of work for agreements for collection, processing, transfer, and

disposal of discarded pro ducts and m aterials.

Adopting the resolution allows staff   t o   obtain consulting services to support development of  a

Zero Waste system intended to provide cost-effective and leading-edge waste reduction andrecycling se rvices, and move the City towa rd its sustainability and waste reduction g oals. Inaddition, this work will support sustainable local economic development consistent with the CityCo uncil's goal to Develop a Sustainable City through implementation of Oak land's ZeroWaste Strategic Plan.

The four-year contract term is needed to support staff in designing a new Zero Waste systembefore the expiration of C ity's Franchise A greement for Solid Waste and Yard W aste Collection

and Disposal Services with W aste M anagement of Alameda County, and the Agreement forResidential Recycling Service with Califomia Waste Solutions on December   3 1 2012. Phase Iwork will be completed by m id-2010. The majority of Phase II work will take place between2010 and 2011.

Item #:

Public Works CommitteeJuly 14,2009

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Dan Lindheim

PW A: Zero Waste System Consultant Page 2

F I S C A L I M P A C T

The Agreement is for a four-year period with an option for a one-year extension in an amount

not to exceed three hundred thousand dollars ($300,000). Fund ing is available within RecyclingProgram Fund (1710 ), Recycling and Solid W aste Organization (30682), Non-ResidenfialRecycling Project (P 275210), Recycling and Solid W aste Program (SC 17).

B A C K G R O U N D

On December 5, 2006, the Oakland City Council approved R esolution No . 80286 C.M.S.,adopting a Zero Waste S trategic Plan (Plan). The Plan calls for a 90% reduction in annual tonssent to landfills from the current 400,0 00 tons per year to 40,000 tons per year by 2020. A newZero Waste system for Oakland would, over time, reduce the landfilling of discarded productsand materials as the primary management option, and encourage recovery of materials for

reintrodu ction to value-add ed processing into econom ically viable prod ucts. This shift awaytrom landfilling and towards value-added resource recovery would create green collar jobs andprovide a significant contribution to climate protection.

On March 17, 2009, the Oakland City Council approved Resolufion No. 81870 C.M.S., adopfingEvaluative Criteria for assessing the ability of various Zero Waste system design options thatmeet the Mayor and City Council goals and policies identified in the Zero Waste Strategic Planand provide community benefits. Zero Waste system design options will be developed through amodeling and testing process that identifies a preferred option for consideration by the CityCouncil. Following approval of the preferred Zero Waste system option, staff will develop andsolicit service agreements for collection, processing, transfer, and disposal of discarded products

and materials that fit the selected Zero Waste system design. Both phases of this work requirethat extensive technical assistance be provided to staff through consultant services.

Staff solicited proposals for Zero Waste System Design Technical Assistance consulting servicesto model and test system op tions. Although an availability analysis found no certified local firmswould be able to fulfill the scope of services, the 20% Local Business Enterprise/Small LocalBusiness Enterprise (LBE /SLBE) requirement was included in the Request for Proposals. Amailer announcing the Request for Proposal (RFP) for was sent to over 200 firms. Twoproposals from consultant teams were received and evaluated to confirm compliance withpropo sal qualifications and requirem ents. Both consultant teams were interviewed in early June2009 . The interview panel con sisted of senior level staff from the City of Emery ville, City of

San Jose, City and County of San Francisco, and the regional recycling and solid waste agencyStop Waste. Org. At the conclusion of scoring,  a consultant team lead by R3 Consulting Groupwas identified as the top-ranked proposer.

Item #:Public Works Committee

July 14,2009

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Dan LindheimPWA : Zero Waste System Consultant Page 3

KEY ISSUES AND IMPA CTS

The C ity's Franchise Agreement for S olid W aste and Yard W aste Collection and Disposal

Services with W aste Management of Alameda County, and the Agreement for ResidentialRecycling Service with Califomia Waste Solutions expire on December  31,  2010. The processto design, approve, and implement the transition to a new system that meets the goals ofOa klan d's Zero W aste Strategic Plan will take all of the time availab le. As indicated in theCouncil Report of March 17, 2009, a consulting team is being hired to support staff by providingspecialized and technical services in Zero Waste system design.

The consulting team will assist the City in designing a Zero Waste system that is organizedaround the Environmental H ierarchy for 'high est and best use' of products and m aterialsestablished in the Zero Waste Strategic Plan, and that features services that result in highdiversion performanc e in all sectors. The Zero Waste system cou ld contribute significantly to

reducing negative environmental im pacts while sustaining and enhancing econom ic and socialbenefits to Oakland residences and businesses, consistent with established Mayor and CityCouncil goals and policies.

Based on the proposal submitted in response to the RF P, the interview performance of theconsultant team, and the City 's Local Business Enterprise (LBE )/Small Local BusinessEnterprise (SLB E) preferences and credit points program, R3 Consulting Group is recommendedas the most qualified to provide Zero Waste System Design Technical Assistance. R3 hasrelevant municipal government experience locally and regionally, including work completed forthe Cities of Dublin, San Jose, Sacramento, and Los Angeles. StopWaste.Org contracted withR3 to perform its 5-year program and financial audit. The R3 consulting team is experienced in

financial analysis and modeling of rate

 stmctures and funding altematives, includingdevelopment of an analytical modeling tool that is particularly well-suited to Oakland's needs.R3 is also one of the most experienced firms in the state assisting and supporting cities todevelop agreements for collection, processing, transfer, and disposal for recycling, compostingand solid waste and other altematives.

R3 Consu lting G roup has been determined to be compliant with the City's E qual Benefits -Ordinance. In addition, the R3 Consulfing Group team meets the City's certified LBE/SLBEgoals of 10% for LBE participation and 10% for SLBE participation . The Departmen t ofContracting and Purchasing has verified the L BE/SLBE information {Attachment A).

P R O G R A M D E S C R I P T I O N

As outlined in the Council Report on March 17, 2009, staff proposes to develop models ofdifferent Zero Waste system design options, and test these models using the Evaluative Criteriaadopted under City Council Resolufion No . 81870 C.M.S. on March 17, 2009 . Modeling andtesting work will investigate the ability of various system design options to address challengesand opportunities to meet the City's Zero Waste Goal, as well as the availability and costs of

Item #:Public Works Committee

July 14,2009

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Dan LindheimPW A: Zero Waste System Consultant Page 4

potential technologies, services, and service providers. The consulting team recomm ended forauthorization by this resolution would support staff by providing specialized and technicalservices in modeling and testing in Phase I of work on the project. In Phase II, the con sultant

would p rovide technical assistance related to implementation of the preferred Zero W aste systemdesign option, including supporting the work of City staff in developing and soliciting serviceagreements for collection, processing, transfer, and disposal of discarded products and material.

Staff will return to Council in early 2010 with a recommendation for the preferred Zero Wastesystem design that is developed in Phase I of this  project.

S U S T AI N A BL E O P P O R T U N I T I E S

Econom ic: Implementing a Zero W aste system in Oakland will help Oakland businesses andresidents reduce waste and may mitigate exposure to long-term liabilities associated with

landfill I-based sy stems. Exp anding and actively suppo rting use of discarded m aterials driveslocal economic and workforce development w ith 'green collar'job s and value added production.

Environm ental: Implementing a Zero Waste system w ill promote sustainability, conserve naturalresources, reduce air and water pollution, protect habitat, and reduce GHG emissions. Recyclingreduces the demand on virgin material extraction and processing, which are significant sourcesof GHG em issions. Recycling of organic materials into compost reduces GHG emissions in anumber of ways, including reducing the demand on irrigation, reducing demand on p etroleum-based fertilizers, and reducing landfill gas emissions.

Social Equity. Imp lemen ting a Zero Waste system in Oakland w ill help provid e new living-

wage jobs for the com munity, as well as preserve and enhance natural systems that provide basicecological services such as clean water, clean air, and safe food.

DISABILITY AND SENIOR CITIZEN ACCESS

This report and resolution will not have any direct impact on access for persons with disabilitiesor senior citizens.

R E C O M M E N D A T I O N A N D R A T I O N A L E

Staff recommends that the City Council approve the resolution authorizing a professional

services agreement w ith R3 Consulting Group to perform Zero W aste System Design TechnicalAssistance consulting services, based on R 3's system m odeling tool which would be customizedfor Oakland, and their extensive experience assisting and supporting cities to develop agreementsfor collection, processing, transfer, and disposal for recycling, composting, and solid waste andother altematives. R3 Consulting Group and their team partners have the personnel to performthe needed work, and have clearly demonstrated their understanding of and ability to perform the

Item #:Public Works Committee

July 14, 2009

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Dan Lindheim

PW A: Zero Waste System Consultant Page 5

necessary work toward recomm ending a zero waste system before the Franchise Agreement andRecycling Agreements for services expire at the end of 2012.

A C T I O N R E Q U E S T E D O F T H E C I T Y C O U N C I L

Staff recommends that the City Council approve the resolution authorizing the CityAdministrator to enter into a professional services agreement with R3 Consulting Group for afour-year period, with the option for a one-year extension, in an amount not to exceed threehundred thousand do llars ($300,000.00).

Respectfully submitted.

Raul Godinez II,Director, Public W orks Agency

Reviewed by:Brooke A. Levin, Assistant Director

Reviewed by:Susan K attchee, Environmental Services Manager

Prepared by:Mark Gagliardi, Senior Recycling SpecialistEnvironmental Services Division

Attachment A-D ept. of Contracting and P urchasing

APPROVED AND FORWARDED TO THEPUBLIC WORKS-COMMITTEE

Office of the  City Administrator

Item #:Public Works Committee

July 14,2009

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 ttachmdng

MemoD e p a r t m e n t o f Co n t r a c t i n g a n d P u r c h a s i n gSocial Equity Division

CITY f OFO A K L A N D

To: Mark Gagliardi, Senior Recycling Specialist

From: Vivian Inman Contract Compliance OfficerThrough: Deborah Barnes, Director, DC&P

Shelley Darensburg, Sr. Contract Compliance OfficerCo:  Gwen McCormick, Contract Adm inistration SupervisorDate: May 21, 2009Re: H63640 - Zero Waste System Design M odeling, Testing  Procurement Technical Assistance

The Department of Contracting and Purchasing (DCP), Division of Social Equity, reviewed two (2) proposals inresponse to the above referenced project. Below is the outcome of the, compliance evaluation for the minimum20% Local and Small Local Business Enterprise (L/SLBE) participation requirement, and a preliminary reviewfor compliance with the Equal Benefits Ordinance (EBO).

Below are the results of our findings:

Responsive •

Company Name

CafRccovery

R3 Consulting

OriginalBid

Amount

NA

NA

Proposed Pardcipadon

Si

>-5 fQ

(2

20%

20%

0%

10%

ms

20%

10%

1u

NA

NA

Earned Creditsand Discounts

•8 o ,

•sif2 S.

NA

NA

o

8 -aK  . 5tS '3U  OH

OH

2points2points

NA

NA

U S

CQ

0points0points

6> -o •oay

Y

Co mi nen ts: Both fi rms met and/or exceeded the minim um 20% L SLBE

 participation requirement.Both firms are EBO compliant.

Non-Responsive (cont'd)

Company Name

NA

OriginalBid

Amount

NA

Proposed Pardcipadon

• m

2

NA

s

NA NA

DO

1

NA

. Earned Credits and Discounts

T3 -a

a   a.

E2  =•NA

l i

NA

T 3

NA NA

o

NA

Co m m ent s: There were no non-responsive f irms.

Should you have any questions you may contact Vivian Inman at (510) 238-6261.

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< #

• -^ ^X ^ . f V . ^ ^ Approved as to Form and Legal

0̂ ^̂ . ^^ O A K L A N D C ITY C O U N C IL

RE S O LUT IO N NO .  C.M.S.

RESOLUTION AUTHORIZING THE CITY ADMINISTRATOR TO ENTERINTO A FOUR-YEAR AGRE EMEN T W ITH THE O PTION FO R A ONE-YEAR EXTENSION FOR AN AMOUNT NOT TO EXCEED THREEHUNDRED THOUSAND DOLLARS ($300,000.00) WITH R3 CONSULTINGGROUP TO PROVIDE ZERO WASTE SYSTEM DESIGN TECHNICALASSISTANCE SERVICES

WHEREAS, the City of Oakland's Franchise Agreement for Solid Waste and Yard WasteCollection and Disposal Services with Waste Management of Alameda County, and the

Agreement for Residential Recycling Service with Califomia Waste Solutions expire onDecember  31, 2012; and

WHEREAS, in 2006 through Resolution #79774 C.M.S., the City Council adopted a ZeroWaste Goal by year 2020 and directed the Public Works Agency staff to prepa re a Zero W asteStrategic Plan for the City of Oakland; and

WHEREAS, in 2006 through Resolution #80286 C.M.S. the City Council adopted a Zero WasteStrategic Plan that included Strategy 2, Develop and Adopt New Rules and Incentives to ReduceWaste Disposal, which states: Development and adoption of a new waste management systemdesign in preparation for Oakland's next collection and disposal contract is key to the goal of

reducing waste; and

WHEREAS, in 2009 through Resolution #81870 C.M.S. the City Council adopted EvaluativeCriteria for assessing Zero Waste system models to replace the expiring franchise and recyclingagreements, which allow for development of a new system with clear policy objectives includingbroader community benefits beyond waste reduction and diversion; and

W H ER EA S, the City needs a consultant team to provide technical assistance in support of themodeling and testing of system design options, to formulate recommendations for a preferredZero Waste system for Council approval; and

W HE R EA S, the City needs a consultant team to provide technical assistance to supportdevelopment and solicitation of service contracts to fulfill the Council-approved Zero Waste

system; and

WHEREAS, through the City's Request for Proposal and interview process, R3 ConsuUing

Group was rated as the top-ranked firm able to provide the consulting services required; and

W H ER EA S, the City Council finds that the services provided pursuant to the agreementauthorized hereunder are of a professional, scientific or technical nature an d are temporary innature; and

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W HE RE A S, the City Council finds that this agreement shall not resuk in the loss ofemployment or salary by any person having permanent status in the competitive service; now,therefore be it

RE SO LV ED : That the City Administrator is hereby authorized to enter into a professionalservices agreement with R3 Consulting G roup to provide Zero Waste S ystem Design Technical

Assistance consulting services under the direction of the

 City's Public Works AgencyEnvironmental Services Division; and be it

FU R TH ER R ES O LV ED : That the total amount of the agreement shall be for a not-to-exceedamount of three hundred thousand dollars ($300,000) for a four-year period through December31 , 2013 with the opfion for a one-year extension; and be it

FU RT H ER R ES OL VE D: That this agreement with R3 Consulting Group will be funded byRecycling Program Fund (1710), Recycling and Solid Waste Organization (306 82), Non-Residenfial Recycling Project (P 27521 0), Recycling and Solid Waste P rogram (SC I7) ; and be h

FU RT H ER RE SO LV ED : That the City Administrator or his/her designee is hereby authorizedand empowered to approve any subsequent am endments to or extensions of said agreement w iththe exception of those related to an increase in total compensation o r the allocation of additionalfiinds, provided that such amendments or extensions shall be reviewed by the City Attorney and

filed with the City Clerk's Office; and be it

FU RT HE R R ES OL VE D: That a copy of the agreement will be on file in the City Clerk'sOffice and will be approved by the Office of the City Attorney.

IN COU NCIL, OAKLAND , CALIFOR NIA , 2009

PASSED BY THE FOLLOWING VOTE:

AYES - BROOKS, DE LA FUENTE, KAPLAN, KERNIGHAN, NADEL. QUAN, REID, and PRESIDENT BRUNNER

NOES -

ABSENT -

ABSTENTION -

ATTEST:LaTonda Simmons

City Clerk and Clerk of the Councilof th City o f Oakland, Califomia