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Approve four amendments to extend service agreements through March 31, 2025 to allow time to negotiate respective new contracts with Mount Diablo Resource Recovery, Recology Vacaville Solano, Recology Vallejo, and Republic Services for the collection, transportation, and management of solid waste, recyclables and organics; and Delegate authority to the County Administrator to execute the four amendments and any subsequent amendments, with County Counsel concurrence
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of General Services recommends that the Board of Supervisors approve four amendments to extend service agreements through March 31, 2025 to allow time to negotiate respective new contracts with Mount Diablo Resource Recovery (Attachment A), Recology Vacaville Solano (formerly Vacaville Sanitary Service - Attachment B), Recology Vallejo (Attachment C), and Republic Services (formerly Solano Garbage - Attachment D) for the collection, transportation, and management of solid waste, recyclables and organics; and Delegate authority to the County Administrator to execute the four amendments and any subsequent amendments, with County Counsel concurrence.
SUMMARY/DISCUSSION:
Background
In February 2005, the Board of Supervisors approved three service agreements for solid waste, recyclable, and organics collection services in the unincorporated areas of the County: two with Recology Vacaville Solano and one with Solano Garbage Service. A fourth agreement with Mount Diablo Resource Recovery was signed in March 2015 for service to Rio Vista. The agreements extended terms effective January 1, 2015, until December 31, 2024. The agreements were a result of the County's plan to implement new and improved solid waste diversion programs and mandatory collection services to comply with the requirements of the Integrated Waste Management Act of 1989 (AB939).
These Contractors continue to provide solid waste, recyclables, and organics services to the unincorporated areas adjacent to the cities of Benicia, Dixon, Fairfield, Rio Vista, Suisun City, Vacaville, and Vallejo. Industry competition in a smaller materials management market like Solano County benefits unincorporated ratepayers by avoiding higher-than-usual costs associated with collection challenges in rural areas that lack the housing density and population growth of adjacent cities.
It is to the County’s advantage to negotiate a new standardized contract with the current Contractors that will 1) provide programs and services that meet the needs of the unincorporated community, 2) support the County’s compliance with State-related mandates, 3) strive to achieve service and program continuity across city/county boundaries, 4) be flexible to change, and 5) be offered at a fair price.
The Contractors’ service agreements have remained largely the same with up to three amendments having been issued over the years. The last significant contract changes were in 2014 to align service requirements with changes to solid waste laws and extend the current term expiration date to December 31, 2024.
Rates
Parties agreed to continue services under the terms of the current agreement and not increase rates during the extension period. Newly negotiated rates will be brought forward to the Board for consideration with the new agreements.
The Department of General Services plans to host community meetings within each of the Contractors’ service areas to review proposals for new agreements prior to bringing them forward to the Board for consideration. Additionally, the Contractors have already agreed to no new rate increases during the negotiation period.
FINANCIAL IMPACT:
Appropriations for the amendments are included in the Department’s FY2024/25 Adopted Budget with technical assistance provided by the Department of Resource Management and County Counsel. The County will continue to receive an administrative fee of 5% of gross receipts from the Contractors that will generate approximately $62,500 during the extension term.
The costs associated with preparing this agenda item are also nominal and absorbed by the department’s FY2024/25 Working Budget.
ALTERNATIVES:
1. The Board of Supervisors could choose to not authorize execution of the amendments. This option is not recommended because the County would be without services for the collection, transportation, and management of solid waste, recyclables, and organics until such time as new agreements are executed.
2. The Board could elect to modify terms and conditions of the amendments, which would require acceptance and approval by the Contractors.
3. The Board could elect to not delegate contractual signing authority to the County Administrator. This action is not recommended because it would increase complexity of the contract administration.
OTHER AGENCY INVOLVEMENT:
The Department of General Services and the Department of Resource Management worked collaboratively to establish the amendments. County Counsel provided legal guidance and review of the amendments as to form.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION