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HomeMy WebLinkAbout03.e. AUTHORIZE GENERAL MANAGER TO APPROVE CONTRACT EXTENSION FOR HOUSEHOLD HAZARDOUS WASTE TRANSPORTATION AND DISPOSAL SERVICES PROVIDED BY PHILIP SERVICES CORPORATIONCentral Contra Costa Sanitary District ' BOARD OF DIRECTORS '" POSITION PAPER Board Meeting Date: April 15, 2010 No.: 3.e. Consent Calendar Type otAction: AUTHORIZE GENERAL MANAGER TO EXTEND CONTRACT subject: AUTHORIZE GENERAL MANAGER TO APPROVE CONTRACT EXTENSION FOR HOUSEHOLD HAZARDOUS WASTE TRANSPORTATION AND DISPOSAL SERVICES PROVIDED BY PHILIP SERVICES CORPORATION Submitted By: Initiating Dept./Div.: David Wyatt, HHW Supervisor Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: /~. A. Farrell me Kelly, General Manager ISSUE: The current hazardous waste service contract with Philip Services Corporation (PSC) will expire on December 12, 2010. The contract allows the District to extend for an additional year if the Board so chooses. The procurement process for a new contract would need to begin by June 2010, if an extension is not granted. RECOMMENDATION: Authorize the General Manger to extend the Philip Services Corporation (PSC) contract for one year through December 12, 2011. FINANCIAL IMPACTS: The estimated cost of services to be provided for the one-year extension period is $600,000. ALTERNATIVES/CONSIDERATIONS: Initiate the procurement process by June 1, 2010, and establish a new Household Hazardous Waste (HHW) transportation and disposal contract by November 12, 2010 to be effective by December 12, 2010. BACKGROUND: The District's three-year agreement with PSC for HHW services expires on December 12, 2010. The contract includes transportation and disposal of hazardous waste collected at the HHW facility, contract labor, temporary collection events, and cost of materials such as drums. It also contains pricing for emergency response and sewer overflow response. -Staff compared our current contract pricing with PSC to the pricing of two other local HHW programs that use a different contractor, It was found that the District's costs for transportation and disposal were lower than those compared; however, the cost of contract staffing was higher. Based on current operations, the additional cost for labor is offset by the savings from transportation and disposal. The net cost is almost equal to what could be achieved by initiating the procurement process. N:\ENVRSEC\POSition Papers\Wyatt\2010\PSC Contract Ext FINAL 4-15-2010.DOC POSITION PAPER Board Meeting Date: April 15, 2010 Subject. AUTHORIZE GENERAL MANAGER TO APPROVE CONTRACT EXTENSION FOR HOUSEHOLD HAZARDOUS WASTE TRANSPORTATION AND DISPOSAL SERVICES PROVIDED BY PHILIP SERVICES CORPORATION Staff is satisfied with PSC's responsiveness and reliability, and found PSC's rates competitive with other contractors providing HHW services in the Bay Area. Therefore, staff has recommended aone-year extension. The Board Household Hazardous Waste Committee has endorsed aone-year extension of this contract. RECOMMENDED BOARD ACTION: Authorize the General Manager to approve the one-year extension option included in the HHW service agreement with Philip Services Corporation, effective December 12, 2010 through December 12, 2011. N:\ENVRSEC\Position Papers\Wyatt\2010\PSC Contract Exl FINAL 4-15-2070.DOC .